Name and address of agent for service:
John M. Perlowski, Chief Executive Officer, BlackRock New York Municipal Income Trust, 55 East 52
nd
Street, New York,
NY 10055
Item 1 – Report to Stockholders
JULY 31, 2013
|
ANNUAL REPORT
|
|
|
BlackRock California
Municipal Income Trust (BFZ)
BlackRock Florida
Municipal 2020 Term Trust (BFO)
BlackRock Municipal
Income Investment Trust (BBF)
BlackRock Municipal
Target Term Trust (BTT)
BlackRock New
Jersey Municipal Income Trust (BNJ)
BlackRock New York Municipal Income
Trust (BNY)
|
Not FDIC Insured • May Lose Value • No Bank Guarantee
|
Table of
Contents
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Page
|
|
Dear Shareholder
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3
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Annual Report:
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Municipal Market Overview
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4
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The
Benefits and Risks of Leveraging
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5
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Derivative Financial Instruments
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5
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Trust Summaries
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6
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Financial Statements:
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Schedules of Investments
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18
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Statements of Assets and Liabilities
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44
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Statements of Operations
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45
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Statements of Changes in Net Assets
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46
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Statements of Cash Flows
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48
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Financial Highlights
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49
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Notes to Financial Statements
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55
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Report of Independent Registered Public Accounting Firm
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66
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Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements
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67
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Automatic Dividend Reinvestment Plans
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71
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Officers and Trustees
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72
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Additional Information
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75
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2
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ANNUAL REPORT
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JULY 31, 2013
|
One year ago,
risk assets (such as equities) were on the rise as weakening
global economic data spurred increasing optimism that the world’s
largest central banks would intervene to stimulate growth.
This much-anticipated monetary policy easing ultimately came
in September when the European Central Bank (“ECB”)
and the US Federal Reserve announced their plans for increasing
global liquidity. Although financial markets worldwide were
buoyed by these aggressive policy actions, risk assets weakened
later in the fall of 2012. Global trade slowed as many European
countries fell into recession and growth continued to decelerate
in China. In the United States, investors became increasingly
concerned about the “fiscal cliff” of tax increases
and spending cuts that had been scheduled to take effect at
the beginning of 2013. High levels of global market volatility
persisted through year-end due to fears that bipartisan gridlock
would preclude a timely resolution, putting the US economy
at high risk for recession. As 2013 began, the worst of the
fiscal cliff was averted with a last-minute tax deal.
Investors shook
off the nerve-wracking finale to 2012 and the New Year started
with a powerful relief rally. Money that had been pulled to
the sidelines amid year-end tax-rate uncertainty poured back
into the markets in January. Key indicators signaling modest
but broad-based improvements in the world’s major economies
helped propel the rally. Underlying this aura of comfort was
the absence of negative headlines from Europe. Global equities
surged, while rising US Treasury yields pressured high quality
fixed income assets. (Bond prices move in the opposite direction
of yields.)
However, February
brought a slowdown in global economic momentum and the pace
of the rally moderated. In the months that followed, US equities
outperformed international markets, as the US economic recovery
showed greater stability compared to most other regions. Slow,
but positive, growth in the United States was sufficient to
support corporate earnings, while uncomfortably high unemployment
reinforced investors’ expectations that the US Federal
Reserve would keep interest rates low. International markets
experienced higher levels of volatility as political instability
in Italy and a severe banking crisis in Cyprus reminded investors
that the eurozone was still vulnerable to a number of macro
risks, while a poor outlook for European economies also dampened
sentiment. Emerging markets significantly lagged the rest of
the world as growth in these economies (particularly China
and Brazil) fell short of expectations.
After peaking
in late May, financial markets broadly sold off due to concerns
about the US Federal Reserve reducing monetary stimulus. Volatility
picked up considerably as investors abruptly retreated from
risk assets and a sharp and dramatic rise in US Treasury yields
resulted in tumbling prices for higher-quality fixed income
investments. The downswing bottomed out in late June as a more
dovish tone from the US central bank served to quell the volatility
in interest rates, while improving economic data and a positive
outlook for corporate earnings helped the markets regain strength
in July, with major US equity indices regularly hitting new
record highs.
Despite the
swings in the markets in the second quarter, most risk asset
classes generated positive returns for the 6- and 12-month
periods ended July 31, 2013. US equities were particularly
strong. International equities also performed well, although
political and economic uncertainty in Europe resulted in less
impressive gains for the last six months. Emerging markets
suffered the impact of slowing growth and concerns about a
shrinking global money supply. Extreme levels of interest rate
volatility in the final months of the period resulted in poor
performance for fixed income markets, especially US Treasury
bonds and other higher quality sectors such as tax-exempt municipals
and investment grade corporate bonds. The high yield sector
performed relatively better as demand continued to be supported
by investors’ ongoing search for income in the low-rate
environment. Short-term interest rates remained near zero,
keeping yields on money market securities near historical lows.
Market conditions
remain volatile, and investors still face a number of uncertainties
in the current environment. At BlackRock, we believe investors
need to think globally and extend their scope across a broader
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
www.blackrock.com
for
further insight about investing in today’s world.
Rob Kapito
President, BlackRock Advisors, LLC
|
“Despite the swings in the markets in the second quarter, most
risk asset classes generated positive returns for the
6- and 12-month periods ended July 31, 2013
.
”
|
Rob Kapito
President, BlackRock Advisors, LLC
Total Returns as of July 31, 2013
|
|
|
6-month
|
|
12-month
|
|
US
large cap equities (S&P 500
®
Index)
|
|
13.73
|
%
|
|
25.00
|
%
|
|
US
small cap equities (Russell 2000
®
Index)
|
|
16.66
|
|
|
34.76
|
|
|
International equities (MSCI Europe, Australasia, Far East Index)
|
|
4.11
|
|
|
23.48
|
|
|
Emerging market equities (MSCI Emerging Markets Index)
|
|
(9.87
|
)
|
|
1.95
|
|
|
3-month Treasury bill (BofA Merrill Lynch 3-Month US Treasury Bill Index)
|
|
0.05
|
|
|
0.11
|
|
|
US
Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index)
|
|
(3.71
|
)
|
|
(6.50
|
)
|
|
US
investment grade bonds (Barclays US Aggregate Bond Index)
|
|
(1.62
|
)
|
|
(1.91
|
)
|
|
Tax-exempt municipal bonds (S&P Municipal Bond Index)
|
|
(4.11
|
)
|
|
(1.99
|
)
|
|
US
high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index)
|
|
1.97
|
|
|
9.49
|
|
|
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly
in an index.
|
|
|
THIS PAGE NOT PART OF YOUR FUND REPORT
|
3
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Municipal Market Overview
|
|
For the Reporting Period Ended July 31, 2013
Municipal Market Conditions
During the majority of the period, municipal bond supply was met
with strong demand as investors were starved for yield in the low-rate, low-return environment. Investors poured into municipal bond mutual funds,
favoring long-duration and high-yield funds as they tend to provide higher levels of income.
However, municipal bond funds saw robust
outflows in the last three months of the period, leaving net flows essentially flat for the 12-month period as a whole (based on
data from the Investment Company Institute). Market conditions turned less favorable in May when signals from the US Federal Reserve
suggesting a retrenchment of its bond-buying stimulus program led to rising interest rates and waning demand. (Bond prices fall
as rates rise.) High levels of interest rate volatility resulted in a sharp curtailment of tax-exempt issuance in May, June and
July. However, from a historical perspective, total new issuance for the 12 months ended July 31, 2013 remained relatively strong
at $358 billion (down modestly from the $369 billion issued in the prior 12-month period). A significant portion of new supply
during this period (roughly 60%) was attributable to refinancing activity as issuers took advantage of lower interest rates to
reduce their borrowing costs. Total new supply was also supported by recent activity in the taxable market, where taxable-municipal
issuance was up 58% year-over-year.
|
S&P Municipal Bond Index
Total Returns as of July 31, 2013
6 months: (4.11)%
12 months: (1.99)%
|
A Closer Look at Yields
From July 31, 2012 to July 31, 2013, municipal yields increased by
136 basis points (“bps”) from 2.84% to 4.20% on AAA-rated 30-year municipal bonds, while increasing 101 bps from 1.66% to 2.67% on 10-year
bonds and rising another 62 bps from 0.65% to 1.27% on 5-year issues (as measured by Thomson Municipal Market Data). Overall, the municipal yield curve
remained relatively steep over the 12-month period as the spread between 2- and 30-year maturities widened by 122 bps and the spread between 2- and
10-year maturities widened by 87 bps.
During the same time period, US Treasury rates rose by 109 bps on
30-year and 111 bps on 10-year bonds, while moving up 80 bps in 5-years. Accordingly, tax-exempt municipal bonds moderately outperformed Treasuries in
the short and intermediate portion of the yield curve. This outperformance was driven largely by a supply/demand imbalance within the municipal market
while evidence of a recovering domestic economy coupled with the removal of certain political and tax policy uncertainties pushed interest rates
higher. Additionally, as higher US tax rates began to appear imminent late in 2012, municipal bonds benefited from the increased appeal of tax-exempt
investing. The municipal market continues to be an attractive avenue for investors seeking yield in today’s environment of low absolute rates as
the asset class is known for its lower volatility and preservation of principal with an emphasis on income as tax rates rise.
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, 13 consecutive quarters of positive revenue growth coupled with the elimination of more than
750,000 jobs in recent years have put state and local governments in a better financial position. Many local municipalities, however, continue to face
increased health care and pension costs passed down from the state level. BlackRock maintains the view that municipal bond defaults will be minimal and
remain in the periphery, and that the overall market is fundamentally sound. We continue to recognize that careful credit research, appropriate
structure and security selection remain imperative amid uncertainty in this fragile economic environment.
Past
performance is no guarantee of future results. Index performance
is shown for illustrative purposes only. You cannot invest
directly in an index.
|
4
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
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.
To obtain leverage, the Trusts issue Auction Market Preferred
Shares (“AMPS”), 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”).
Preferred Shares pay dividends at prevailing short-term interest rates, and the Trusts invest the proceeds in long-term municipal bonds. In general,
the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term
interest rates, will normally be lower than the income earned by each Trust on its longer-term portfolio investments. To the extent that the total
assets of each Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Trust’s
shareholders will benefit from the incremental net income.
The interest earned on securities purchased with the proceeds from
leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV. However, in
order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest
rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be
lower than if the Trusts had not used leverage.
To illustrate these concepts, assume a Trust’s Common Shares
capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for
investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a
strongly positive slope. In this case, the Trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At
the same time, the securities purchased by the Trust with assets received from Preferred Shares issuance earn income based on long-term interest rates.
In this case, the dividends paid to holders of Preferred Shares (“Preferred Shareholders”) are significantly lower than the income earned on
the Trust’s long-term investments, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the
incremental net income.
If short-term interest rates rise, narrowing the differential
between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing
short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Trust pays higher short-term
interest rates whereas the Trust’s total portfolio earns income based on lower long-term interest rates.
Furthermore, the value of the Trusts’ portfolio investments
generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In
contrast, the redemption value of the Trusts’ Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest
rates can influence the Trusts’ NAVs positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares
discussed above.
The Trusts may also leverage their assets through the use of
tender option bond trusts (“TOBs”), as described in Note 3 of the Notes to Financial Statements. TOB investments generally will provide the
Trusts with economic benefits in periods of declining short-term interest rates, but expose the Trusts to risks during periods of rising short-term
interest rates similar to those associated with Preferred Shares issued by the Trusts, as described above. Additionally, fluctuations in the market
value of municipal bonds deposited into the TOB trust may adversely affect each Trust’s NAV per share.
The use of leverage may enhance opportunities for increased income
to the Trusts and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also
will generally cause greater changes in the Trusts’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the
income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Trusts’ net income will be greater
than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each
Trust’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders
will be reduced. Each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with
regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Trust to incur losses.
The use of leverage may limit each Trust’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in
the case of certain restrictions imposed by rating agencies that rate the Preferred Shares issued by the Trusts. Each Trust will incur expenses in
connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.
Under the Investment Company Act of 1940, as amended (the
“1940 Act”), the Trusts are permitted to issue senior securities in the form of equity securities (e.g., Preferred Shares) up to 50% of their
total managed assets (each Trust’s total assets less the sum by its accrued liabilities). In addition, each Trust voluntarily limits its economic
leverage to 50% of its total managed assets for Trusts with AMPS or 45% for Trusts with VRDP Shares, VMTP Shares or RVMTP Shares. As of July 31, 2013,
the Trusts had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:
|
|
|
|
|
|
Percent of
Economic
Leverage
|
|
BFZ
|
|
|
|
|
42
|
%
|
|
BFO
|
|
|
|
|
19
|
%
|
|
BBF
|
|
|
|
|
42
|
%
|
|
BTT
|
|
|
|
|
43
|
%
|
|
BNJ
|
|
|
|
|
41
|
%
|
|
BNY
|
|
|
|
|
42
|
%
|
|
|
|
|
Derivative Financial Instruments
|
|
The Trusts may invest in various derivative financial instruments,
including financial futures contracts and options, as specified in Note 4 of the Notes to Financial Statements, which may constitute forms of economic
leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical
custody of securities or to hedge market and/or interest rate risks. Derivative financial instruments involve risks, including the imperfect
correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or
illiquidity of the derivative financial instrument. The Trusts’ ability to use a derivative financial instrument successfully depends on the
investment 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 require a Trust to sell or purchase portfolio investments at inopportune
times or for distressed values, may limit the amount of appreciation a Trust can realize on an investment, may result in lower dividends paid to
shareholders or may cause a Trust to hold an investment that it might otherwise sell. The Trusts’ investments in these instruments are discussed
in detail in the Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
5
|
|
|
|
|
Trust Summary
as of July 31, 2013
|
BlackRock California
Municipal Income Trust
|
Trust Overview
BlackRock California Municipal Income Trust’s (BFZ) (the
“Trust”)
investment objective is to provide current income exempt from regular US federal income and California income taxes. The Trust
seeks to achieve its investment objective by investing primarily in municipal obligations exempt from federal income taxes (except that the interest
may be subject to the federal alternative minimum tax) and California income taxes. The Trust invests, under normal market conditions, at least 80% of
its assets in municipal obligations that are investment grade quality. The Trust may invest directly in such securities or synthetically through the
use of derivatives.
No
assurance can be given that the Trust’s investment objective
will be achieved.
Performance
|
•
|
|
For the 12-month period ended July 31, 2013, the Trust returned
(13.17)% based on market price and (5.81)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an
average return of (12.17)% based on market price and (4.63)% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a
premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The
following discussion relates to performance based on NAV.
|
|
•
|
|
The Trust posted a negative return as bond prices broadly declined
in the rising interest rate environment. The Trust’s exposure to bonds with longer maturities, which tend to have higher durations (greater
sensitivity to interest rate movements), particularly hurt performance during the period. Additionally, leverage on the Trust’s assets achieved
through the use of tender option bonds amplified the negative effect of rising rates on the Trust’s holdings. As rates rose rather significantly
in the latter part of the period, pushing bond prices down indiscriminately, California school districts and the utilities sector were especially
exposed to price depreciation. To a degree, this represented an unwinding of the positive performance in these segments when rates fell in prior
periods.
|
|
•
|
|
While the Trust’s cash reserves were generally maintained at
a minimal level, to the extent reserves were held, the cash holdings provided liquidity to the Trust and held their value as interest rates rose during
the period. Additionally, the Trust’s use of derivatives to hedge against interest rate risk helped performance. Specifically, short positions in
US Treasury financial futures enhanced results as rates increased 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 July 31, 2013 ($13.63)
1
|
|
|
|
6.84%
|
|
Tax
Equivalent Yield
2
|
|
|
|
13.94%
|
|
Current Monthly Distribution per Common Share
3
|
|
|
|
$0.0777
|
|
Current Annualized Distribution per Common Share
3
|
|
|
|
$0.9324
|
|
Economic Leverage as of July 31, 2013
4
|
|
|
|
42%
|
|
1
|
|
Yield on closing market price is calculated
by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee
future results.
|
|
2
|
|
Tax equivalent yield assumes the maximum
marginal federal and state tax rate of 50.93%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on
income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
|
|
3
|
|
The distribution rate is not constant and
is subject to change.
|
|
4
|
|
Represents VMTP Shares and TOBs as a percentage
of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits
and Risks of Leveraging on page 5.
|
|
6
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
|
BlackRock California
Municipal Income Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/13
|
|
7/31/12
|
|
Change
|
|
High
|
|
Low
|
|
Market Price
|
|
|
|
$
|
13.63
|
|
|
$
|
16.64
|
|
|
|
(18.09
|
)%
|
|
$
|
17.52
|
|
|
$
|
13.57
|
|
|
Net Asset Value
|
|
|
|
$
|
14.50
|
|
|
$
|
16.32
|
|
|
|
(11.15
|
)%
|
|
$
|
17.04
|
|
|
$
|
14.36
|
|
|
Market
Price and Net Asset Value History For the Past Five Years
|
Overview of the Trust’s Long-Term
Investments
Sector Allocation
|
|
|
|
7/31/13
|
|
7/31/12
|
|
County/City/Special District/School District
|
|
|
|
|
35
|
%
|
|
|
37
|
%
|
|
Utilities
|
|
|
|
|
29
|
|
|
|
29
|
|
|
Health
|
|
|
|
|
11
|
|
|
|
12
|
|
|
Education
|
|
|
|
|
10
|
|
|
|
9
|
|
|
Transportation
|
|
|
|
|
9
|
|
|
|
7
|
|
|
State
|
|
|
|
|
5
|
|
|
|
5
|
|
|
Housing
|
|
|
|
|
1
|
|
|
|
1
|
|
Credit Quality
Allocation
1
|
|
|
|
7/31/13
|
|
7/31/12
|
|
AAA/Aaa
|
|
|
|
|
9
|
%
|
|
|
9
|
%
|
|
AA/Aa
|
|
|
|
|
72
|
|
|
|
71
|
|
|
A
|
|
|
|
|
19
|
|
|
|
19
|
|
|
BBB/Baa
|
|
|
|
|
—
|
|
|
|
1
|
|
|
1
|
|
Using the higher of Standard & Poor’s
(“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.
|
|
Call/Maturity
Schedule
2
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
—
|
|
|
2014
|
|
|
|
|
1
|
%
|
|
2015
|
|
|
|
|
3
|
|
|
2016
|
|
|
|
|
5
|
|
|
2017
|
|
|
|
|
10
|
|
|
2
|
|
Scheduled maturity dates and/or bonds that
are subject to potential calls by issuers over the next five years.
|
|
ANNUAL REPORT
|
JULY 31, 2013
|
7
|
|
|
|
|
Trust Summary
as of July 31, 2013
|
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 12-month period ended July 31, 2013, the Trust returned
1.73% based on market price and 0.12% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an
average return of (14.04)% based on market price and (6.25)% 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.
|
|
•
|
|
Positive performance was derived mainly from the Trust’s
coupon income component and exposure to pre-refunded bonds with terms of less than five years as investors fled longer-term investments in favor of
shorter-duration instruments.
|
|
•
|
|
The Trust’s duration exposure (sensitivity to interest rate
movements) detracted from performance as tax-exempt municipal rates increased significantly during the period. (Bond prices fall when yields rise.) The
Trust’s credit exposure had a negative impact on results as spreads widened during the period (interest rates on lower quality bonds increased
more than on higher quality municipal bonds). Leverage on the Trust’s assets achieved through the use of tender option bonds amplified the
negative effect of rising rates on the Trust’s holdings.
|
|
|
|
The views expressed reflect the opinions of
BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not
intended to be a forecast of future events and are no guarantee of future results.
|
Trust Information
|
Symbol on NYSE
|
|
|
|
BFO
|
|
Initial Offering Date
|
|
|
|
September 30, 2003
|
|
Termination Date (on or about)
|
|
|
|
December 31, 2020
|
|
Yield on Closing Market Price as of July 31, 2013 ($15.12)
1
|
|
|
|
4.44%
|
|
Tax
Equivalent Yield
2
|
|
|
|
7.84%
|
|
Current Monthly Distribution per Common Share
3
|
|
|
|
$0.056
|
|
Current Annualized Distribution per Common Share
3
|
|
|
|
$0.672
|
|
Economic Leverage as of July 31, 2013
4
|
|
|
|
19%
|
|
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 AMPS and TOBs as a percentage
of total managed assets, which is the total assets of the Trust, including any assets attributable to AMPS and TOBs, minus
the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits
and Risks of Leveraging on page 5.
|
|
8
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
|
BlackRock Florida
Municipal 2020 Term Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/13
|
|
7/31/12
|
|
Change
|
|
High
|
|
Low
|
|
Market Price
|
|
|
|
$
|
15.12
|
|
|
$
|
15.60
|
|
|
|
(3.08
|
)%
|
|
$
|
16.34
|
|
|
$
|
15.00
|
|
|
Net Asset Value
|
|
|
|
$
|
15.31
|
|
|
$
|
16.05
|
|
|
|
(4.61
|
)%
|
|
$
|
16.39
|
|
|
$
|
15.20
|
|
|
Market
Price and Net Asset Value
History For the Past Five
Years
|
Overview of the Trust’s Long-Term Investments
Sector Allocation
|
|
|
|
7/31/13
|
|
7/31/12
|
|
County/City/Special District/School District
|
|
|
|
|
30
|
%
|
|
|
40
|
%
|
|
Utilities
|
|
|
|
|
20
|
|
|
|
14
|
|
|
Transportation
|
|
|
|
|
17
|
|
|
|
10
|
|
|
Health
|
|
|
|
|
13
|
|
|
|
13
|
|
|
State
|
|
|
|
|
12
|
|
|
|
15
|
|
|
Corporate
|
|
|
|
|
4
|
|
|
|
4
|
|
|
Education
|
|
|
|
|
2
|
|
|
|
2
|
|
|
Housing
|
|
|
|
|
2
|
|
|
|
2
|
|
Credit Quality
Allocation
1
|
|
|
|
7/31/13
|
|
7/31/12
|
|
AAA/Aaa
|
|
|
|
|
2
|
%
|
|
|
8
|
%
|
|
AA/Aa
|
|
|
|
|
49
|
|
|
|
45
|
|
|
A
|
|
|
|
|
31
|
|
|
|
28
|
|
|
BBB/Baa
|
|
|
|
|
8
|
|
|
|
8
|
|
|
Not Rated
2
|
|
|
|
|
10
|
|
|
|
11
|
|
|
1
|
|
Using the higher of S&P’s or Moody’s
ratings.
|
|
2
|
|
The investment advisor has deemed certain
of these non-rated securities to be of investment grade quality. As of July 31, 2013 and July 31, 2012, the market value
of these securities was $3,035,830, representing 3%, and $7,213,160, representing 5%, respectively, of the Trust’s long-term
investments.
|
|
Call/Maturity
Schedule
3
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
17
|
%
|
|
2014
|
|
|
|
|
9
|
|
|
2015
|
|
|
|
|
—
|
|
|
2016
|
|
|
|
|
—
|
|
|
2017
|
|
|
|
|
13
|
|
|
3
|
|
Scheduled maturity dates and/or bonds that
are subject to potential calls by issuers over the next five years.
|
|
ANNUAL REPORT
|
JULY 31, 2013
|
9
|
|
|
|
|
Trust Summary
as of July 31, 2013
|
BlackRock Municipal
Income Investment Trust
|
Trust Overview
BlackRock Municipal Income Investment Trust’s (BBF) (the
“Trust”)
investment objective is to provide current income exempt from regular federal income tax and Florida intangible personal
property tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except
that the interest may be subject to the federal alternative minimum tax). The Trust invests at least 80% of its assets in municipal bonds that are
investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
Due to the repeal of the Florida intangible personal property tax, the Board approved an amended policy in September 2008 allowing the Trust the
flexibility to invest in municipal obligations regardless of geographical location.
No
assurance can be given that the Trust’s investment objective
will be achieved.
Performance
|
•
|
|
For the 12-month period ended July 31, 2013, the Trust returned
(18.75)% based on market price and (7.56)% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds
(Leveraged) category posted an average return of (14.54)% based on market price and (5.78)% based on NAV. All returns reflect reinvestment of
dividends. The Trust moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and
performance based on NAV. The following discussion relates to performance based on NAV.
|
|
•
|
|
The Trust’s longer duration holdings (those with greater
sensitivity to interest rate movements) hindered results as the yield curve began to steepen in 2013 (rates on longer-dated bonds rose more than rates
on shorter-dated securities). This especially impacted the Trust’s holdings in the water and sewer, utilities, transportation and education
sectors. Leverage on the Trust’s assets achieved through the use of tender option bonds amplified the negative effect of rising rates on the
Trust’s holdings. The Trust’s holdings of Puerto Rico Sales Tax Revenue Bonds had a negative impact on performance as the continued decline
of Puerto Rico’s economy and concerns about credit rating agency downgrades resulted in falling prices across Puerto Rico securities.
|
|
•
|
|
Contributing positively to the Trust’s performance was its
use of derivatives to hedge against interest rate risk. Specifically, short positions in US Treasury financial futures enhanced results as interest
rates increased during the period. Additionally, the Trust’s holdings in pre-refunded bonds with terms of up to five years added to returns as
investors seeking protection amid interest rate volatility moved down the yield curve.
|
|
|
|
The views expressed reflect the opinions of
BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not
intended to be a forecast of future events and are no guarantee of future results.
|
Trust Information
|
Symbol on NYSE
|
|
|
|
BBF
|
|
Initial Offering Date
|
|
|
|
July 27, 2001
|
|
Yield on Closing Market Price as of July 31, 2013 ($12.47)
1
|
|
|
|
6.96%
|
|
Tax
Equivalent Yield
2
|
|
|
|
12.30%
|
|
Current Monthly Distribution per Common Share
3
|
|
|
|
$0.072375
|
|
Current Annualized Distribution per Common Share
3
|
|
|
|
$0.868500
|
|
Economic Leverage as of July 31, 2013
4
|
|
|
|
42%
|
|
1
|
|
Yield on closing market price is calculated
by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee
future results.
|
|
2
|
|
Tax equivalent yield assumes the maximum
marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions
and deductions. Lower taxes will result in lower tax equivalent yields.
|
|
3
|
|
The distribution rate is not constant and
is subject to change.
|
|
4
|
|
Represents VRDP Shares and TOBs as a percentage
of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits
and Risks of Leveraging on page 5.
|
|
10
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
|
BlackRock Municipal
Income Investment Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/13
|
|
7/31/12
|
|
Change
|
|
High
|
|
Low
|
|
Market Price
|
|
|
|
$
|
12.47
|
|
|
$
|
16.25
|
|
|
|
(23.26
|
)%
|
|
$
|
16.75
|
|
|
$
|
12.32
|
|
|
Net Asset Value
|
|
|
|
$
|
13.89
|
|
|
$
|
15.91
|
|
|
|
(12.70
|
)%
|
|
$
|
16.74
|
|
|
$
|
13.77
|
|
|
Market
Price and Net Asset Value History For the Past Five Years
|
|
|
|
Overview of the Trust’s Long-Term Investments
Sector Allocation
|
|
|
|
7/31/13
|
|
7/31/12
|
|
County/City/Special District/School District
|
|
|
|
|
26
|
%
|
|
|
22
|
%
|
|
Utilities
|
|
|
|
|
19
|
|
|
|
15
|
|
|
Health
|
|
|
|
|
16
|
|
|
|
20
|
|
|
Transportation
|
|
|
|
|
14
|
|
|
|
12
|
|
|
State
|
|
|
|
|
11
|
|
|
|
16
|
|
|
Education
|
|
|
|
|
10
|
|
|
|
12
|
|
|
Tobacco
|
|
|
|
|
2
|
|
|
|
1
|
|
|
Corporate
|
|
|
|
|
1
|
|
|
|
1
|
|
|
Housing
|
|
|
|
|
1
|
|
|
|
1
|
|
Credit Quality
Allocation
1
|
|
|
|
7/31/13
|
|
7/31/12
|
|
AAA/Aaa
|
|
|
|
|
10
|
%
|
|
|
17
|
%
|
|
AA/Aa
|
|
|
|
|
57
|
|
|
|
54
|
|
|
A
|
|
|
|
|
28
|
|
|
|
23
|
|
|
BBB/Baa
|
|
|
|
|
4
|
|
|
|
5
|
|
|
Not Rated
|
|
|
|
|
1
|
2
|
|
|
1
|
|
|
1
|
|
Using the higher of S&P’s or Moody’s
ratings.
|
|
2
|
|
The investment advisor has deemed certain
of these non-rated securities to be of investment grade quality. As of July 31, 2013, the market value of these securities
was $240,299, representing less than 1% of the Trust’s long-term investments.
|
|
Call/Maturity
Schedule
3
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
—
|
|
|
2014
|
|
|
|
|
1
|
%
|
|
2015
|
|
|
|
|
—
|
|
|
2016
|
|
|
|
|
1
|
|
|
2017
|
|
|
|
|
1
|
|
|
3
|
|
Scheduled maturity dates and/or bonds that
are subject to potential calls by issuers over the next five years.
|
|
ANNUAL REPORT
|
JULY 31, 2013
|
11
|
|
|
|
|
Trust Summary
as of July 31, 2013
|
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 period beginning with the Trust’s initial trading
date on August 30, 2012 through July 31, 2013, the Trust returned (23.05)% based on market price and (18.00)% based on NAV. For the same period, the
closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of (13.78)% based on market price and
(6.37)% based on NAV. All returns reflect reinvestment of dividends. The Trust ended the period trading at a discount to NAV, which 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’s duration exposure (sensitivity to interest rate
movements) detracted from performance as tax-exempt municipal rates increased significantly during the period. (Bond prices fall when yields rise.)
Exposure to the intermediate part of the yield curve hurt returns as rates increased most in the 15- to 22-year range of the curve. The Trust’s
credit exposure also had a negative impact on results as spreads widened during the period. Leverage on the Trust’s assets achieved through the
use of tender option bonds amplified the negative effect of rising rates on the Trust’s holdings.
|
|
•
|
|
The Trust’s position in an option on US Treasury futures as a
strategy for hedging interest rate risk contributed positively to performance. Additionally, falling bond prices during the period provided the Trust
an opportunity to improve its overall coupon structure and increase book yields.
|
|
|
|
The views expressed reflect the opinions of
BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not
intended to be a forecast of future events and are no guarantee of future results.
|
Trust Information
|
Symbol on NYSE
|
|
|
|
BTT
|
|
Initial Offering Date
|
|
|
|
August 30, 2012
|
|
Termination Date (on or about)
|
|
|
|
December 31, 2030
|
|
Current Distribution Rate on Closing Market Price as of July 31, 2013 ($18.42)
1
|
|
|
|
6.11%
|
|
Tax
Equivalent Rate
2
|
|
|
|
10.80%
|
|
Current Monthly Distribution per Common Share
3
|
|
|
|
$0.09375
|
|
Current Annualized Distribution per Common Share
3
|
|
|
|
$1.12500
|
|
Economic Leverage as of July 31, 2013
4
|
|
|
|
43%
|
|
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 tax 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 tax return of capital or net realized gain at fiscal
year end.
|
|
4
|
|
Represents RVMTP Shares and TOBs as a percentage
of total managed assets, which is the total assets of the Trust, including any assets attributable to RVMTP Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits
and Risks of Leveraging on page 5.
|
|
12
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
|
BlackRock Municipal
Target Term Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/13
|
|
8/30/12
|
|
Change
|
|
High
|
|
Low
|
|
Market Price
|
|
|
|
$
|
18.42
|
|
|
$
|
25.00
|
|
|
|
(26.32
|
)%
|
|
$
|
25.49
|
|
|
$
|
18.30
|
|
|
Net Asset Value
|
|
|
|
$
|
18.75
|
|
|
$
|
23.88
|
1
|
|
|
(21.48
|
)%
|
|
$
|
24.56
|
|
|
$
|
18.48
|
|
|
1
|
|
Net asset value, beginning of period, reflects
a deduction of $1.125 per share sales charge from the initial offering price of $25.00.
|
Market Price and Net Asset Value History Since Inception
|
2
|
|
Commencement of operations.
|
Overview of the Trust’s Long-Term Investments
Sector Allocation
|
|
|
|
7/31/13
|
|
Transportation
|
|
|
|
|
22
|
%
|
|
Health
|
|
|
|
|
17
|
|
|
Education
|
|
|
|
|
13
|
|
|
County/City/Special District/School District
|
|
|
|
|
12
|
|
|
State
|
|
|
|
|
7
|
|
|
Corporate
|
|
|
|
|
9
|
|
|
Utilities
|
|
|
|
|
9
|
|
|
Housing
|
|
|
|
|
9
|
|
|
Tobacco
|
|
|
|
|
2
|
|
Credit Quality
Allocation
3
|
|
|
|
7/31/13
|
|
AAA/Aaa
|
|
|
|
|
3
|
%
|
|
AA/Aa
|
|
|
|
|
32
|
|
|
A
|
|
|
|
|
43
|
|
|
BBB/Baa
|
|
|
|
|
11
|
|
|
BB/Ba
|
|
|
|
|
3
|
|
|
B
|
|
|
|
|
3
|
|
|
Not Rated
4
|
|
|
|
|
5
|
|
|
3
|
|
Using the higher of S&P’s or Moody’s
ratings.
|
|
4
|
|
The investment advisor has deemed certain
of these non-rated securities to be of investment grade quality. As of July 31, 2013, the market value of these securities
was $38,601,602, representing 2% of the Trust’s long-term investments.
|
|
Call/Maturity
Schedule
5
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
2
|
%
|
|
2014
|
|
|
|
|
—
|
|
|
2015
|
|
|
|
|
—
|
|
|
2016
|
|
|
|
|
—
|
|
|
2017
|
|
|
|
|
2
|
|
|
5
|
|
Scheduled maturity dates and/or bonds that
are subject to potential calls by issuers over the next five years.
|
|
ANNUAL REPORT
|
JULY 31, 2013
|
13
|
|
|
|
|
Trust Summary
as of July 31, 2013
|
BlackRock New Jersey
Municipal Income Trust
|
Trust Overview
BlackRock New Jersey Municipal Income Trust’s (BNJ) (the
“Trust”)
investment objective is to provide current income exempt from regular federal income tax and New Jersey gross income tax. The
Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest
may be subject to the federal alternative minimum tax) and New Jersey gross income taxes. The Trust invests at least 80% of its assets in municipal
bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of
derivatives.
No
assurance can be given that the Trust’s investment objective
will be achieved.
Performance
|
•
|
|
For the 12-month period ended July 31, 2013, the Trust returned
(17.95)% based on market price and (5.82)% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an
average return of (16.01)% based on market price and (5.78)% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a
premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The
following discussion relates to performance based on NAV.
|
|
•
|
|
The Trust’s longer duration holdings (those with greater
sensitivity to interest rate movements) hindered results as the yield curve began to steepen in 2013 (rates on longer-dated bonds rose more than rates
on shorter-dated securities). This especially impacted the Trust’s holdings in the water and sewer, utilities, transportation and education
sectors. Leverage on the Trust’s assets achieved through the use of tender option bonds amplified the negative effect of rising rates on
theTrust’s holdings. The Trust’s holdings of Puerto Rico Sales Tax Revenue Bonds had a negative impact on performance as the continued
decline of Puerto Rico’s economy and concerns about credit rating agency downgrades resulted in falling prices across Puerto Rico
securities.
|
|
•
|
|
Contributing positively to the Trust’s performance was its
use of derivatives to hedge against interest rate risk. Specifically, short positions in US Treasury financial futures enhanced results as interest
rates increased during the period. Additionally, the Trust’s holdings in pre-refunded bonds with terms of up to six years added to returns as
investors seeking protection amid interest rate volatility moved down the yield curve.
|
|
|
|
The views expressed reflect the opinions of
BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not
intended to be a forecast of future events and are no guarantee of future results.
|
Trust Information
|
Symbol on NYSE
|
|
|
|
BNJ
|
|
Initial Offering Date
|
|
|
|
July 27, 2001
|
|
Yield on Closing Market Price as of July 31, 2013 ($13.67)
1
|
|
|
|
6.59%
|
|
Tax
Equivalent Yield
2
|
|
|
|
12.79%
|
|
Current Monthly Distribution per Common Share
3
|
|
|
|
$0.0751
|
|
Current Annualized Distribution per Common Share
3
|
|
|
|
$0.9012
|
|
Economic Leverage as of July 31, 2013
4
|
|
|
|
41%
|
|
1
|
|
Yield on closing market price is calculated
by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee
future results.
|
|
2
|
|
Tax equivalent yield assumes the maximum
marginal federal and state tax rate of 48.48%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on
income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
|
|
3
|
|
The distribution rate is not constant and
is subject to change.
|
|
4
|
|
Represents VMTP Shares and TOBs as a percentage
of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits
and Risks of Leveraging on page 5.
|
|
14
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
|
BlackRock New Jersey
Municipal Income Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/13
|
|
7/31/12
|
|
Change
|
|
High
|
|
Low
|
|
Market Price
|
|
|
|
$
|
13.67
|
|
|
$
|
17.67
|
|
|
|
(22.64
|
)%
|
|
$
|
18.60
|
|
|
$
|
13.56
|
|
|
Net Asset Value
|
|
|
|
$
|
14.36
|
|
|
$
|
16.17
|
|
|
|
(11.19
|
)%
|
|
$
|
16.75
|
|
|
$
|
14.22
|
|
|
Market
Price and Net Asset Value
History For the Past Five
Years
|
Overview of the Trust’s Long-Term Investments
Sector Allocation
|
|
|
|
7/31/13
|
|
7/31/12
|
|
State
|
|
|
|
|
26
|
%
|
|
|
35
|
%
|
|
Transportation
|
|
|
|
|
25
|
|
|
|
12
|
|
|
County/City/Special District/School District
|
|
|
|
|
13
|
|
|
|
9
|
|
|
Education
|
|
|
|
|
12
|
|
|
|
11
|
|
|
Health
|
|
|
|
|
11
|
|
|
|
12
|
|
|
Housing
|
|
|
|
|
7
|
|
|
|
10
|
|
|
Corporate
|
|
|
|
|
6
|
|
|
|
6
|
|
|
Utilities
|
|
|
|
|
—
|
|
|
|
5
|
|
Credit Quality
Allocation
1
|
|
|
|
7/31/13
|
|
7/31/12
|
|
AAA/Aaa
|
|
|
|
|
2
|
%
|
|
|
4
|
%
|
|
AA/Aa
|
|
|
|
|
35
|
|
|
|
36
|
|
|
A
|
|
|
|
|
40
|
|
|
|
33
|
|
|
BBB/Baa
|
|
|
|
|
9
|
|
|
|
13
|
|
|
BB/Ba
|
|
|
|
|
5
|
|
|
|
5
|
|
|
B
|
|
|
|
|
3
|
|
|
|
3
|
|
|
Not Rated
2
|
|
|
|
|
6
|
|
|
|
6
|
|
|
1
|
|
Using the higher of S&P’s or Moody’s
ratings.
|
|
2
|
|
The investment advisor has deemed certain
of these non-rated securities to be of investment grade quality. As of July 31, 2013 and July 31, 2012, the market value
of these securities was $8,401,509, representing 5%, and $8,510,074, representing 4%, respectively, of the Trust’s long-term
investments.
|
|
Call/Maturity
Schedule
3
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
11
|
%
|
|
2014
|
|
|
|
|
2
|
|
|
2015
|
|
|
|
|
—
|
|
|
2016
|
|
|
|
|
2
|
|
|
2017
|
|
|
|
|
5
|
|
|
3
|
|
Scheduled maturity dates and/or bonds that
are subject to potential calls by issuers over the next five years.
|
|
ANNUAL REPORT
|
JULY 31, 2013
|
15
|
|
|
|
|
Trust Summary
as of July 31, 2013
|
BlackRock New York
Municipal Income Trust
|
Trust Overview
BlackRock New York Municipal Income Trust’s (BNY) (the
“Trust”)
investment objective is to provide current income exempt from regular federal income tax and New York State and New York City
personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes
(except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. The Trust
invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in
such securities or synthetically through the use of derivatives.
No
assurance can be given that the Trust’s investment objective
will be achieved.
Performance
|
•
|
|
For the 12-month period ended July 31, 2013, the Trust returned
(16.73)% based on market price and (8.18)% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an
average return of (14.17)% based on market price and (6.42)% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a
premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The
following discussion relates to performance based on NAV.
|
|
•
|
|
The Trust’s long duration posture (sensitivity to interest
rate movements) was detrimental to performance as rates increased over the period. (Bond prices fall when yields rise.) The Trust’s holdings were
more concentrated on the long end of the yield curve which hurt returns as the yield curve steepened (rates on longer-dated bonds rose more than rates
on shorter-dated bonds). The Trust’s exposure to Puerto Rico credits hurt performance as the credit quality of the island’s municipal issuers
has deteriorated and the bonds have underperformed. The Trust’s zero-coupon holdings, which have longer durations for their respective maturities,
also negatively impacted performance. Additionally, leverage on the Trust’s assets achieved through the use of tender option bonds amplified the
negative effect of rising rates on the Trust’s holdings.
|
|
•
|
|
Contributing positively to performance was the Trust’s income
generated from coupon payments on its fully invested portfolio of tax-exempt municipal bonds.
|
|
|
|
The views expressed reflect the opinions of
BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not
intended to be a forecast of future events and are no guarantee of future results.
|
Trust Information
|
Symbol on NYSE
|
|
|
|
BNY
|
|
Initial Offering Date
|
|
|
|
July 27, 2001
|
|
Yield on Closing Market Price as of July 31, 2013 ($13.16)
1
|
|
|
|
6.29%
|
|
Tax
Equivalent Yield
2
|
|
|
|
12.75%
|
|
Current Monthly Distribution per Common Share
3
|
|
|
|
$0.069
|
|
Current Annualized Distribution per Common Share
3
|
|
|
|
$0.828
|
|
Economic Leverage as of July 31, 2013
4
|
|
|
|
42%
|
|
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 50.67%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on
income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields.
|
|
3
|
|
The distribution rate is not constant and
is subject to change.
|
|
4
|
|
Represents VMTP Shares and TOBs as a percentage
of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs,
minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits
and Risks of Leveraging on page 5.
|
|
16
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
|
BlackRock New York
Municipal Income Trust
|
Market Price and Net Asset Value Per Share Summary
|
|
|
|
7/31/13
|
|
7/31/12
|
|
Change
|
|
High
|
|
Low
|
|
Market Price
|
|
|
|
$
|
13.16
|
|
|
$
|
16.73
|
|
|
|
(21.34
|
)%
|
|
$
|
17.24
|
|
|
$
|
13.00
|
|
|
Net Asset Value
|
|
|
|
$
|
13.47
|
|
|
$
|
15.53
|
|
|
|
(13.26
|
)%
|
|
$
|
16.16
|
|
|
$
|
13.28
|
|
|
Market
Price and Net Asset Value
History For the Past Five
Years
|
|
|
|
Overview of the Trust’s Long-Term Investments
Sector Allocation
|
|
|
|
7/31/13
|
|
7/31/12
|
|
County/City/Special District/School District
|
|
|
|
|
23
|
%
|
|
|
23
|
%
|
|
Education
|
|
|
|
|
16
|
|
|
|
14
|
|
|
Transportation
|
|
|
|
|
14
|
|
|
|
19
|
|
|
Utilities
|
|
|
|
|
11
|
|
|
|
12
|
|
|
Health
|
|
|
|
|
10
|
|
|
|
8
|
|
|
Corporate
|
|
|
|
|
10
|
|
|
|
9
|
|
|
State
|
|
|
|
|
9
|
|
|
|
6
|
|
|
Housing
|
|
|
|
|
7
|
|
|
|
8
|
|
|
Tobacco
|
|
|
|
|
—
|
|
|
|
1
|
|
Credit Quality
Allocation
1
|
|
|
|
7/31/13
|
|
7/31/12
|
|
AAA/Aaa
|
|
|
|
|
13
|
%
|
|
|
11
|
%
|
|
AA/Aa
|
|
|
|
|
34
|
|
|
|
36
|
|
|
A
|
|
|
|
|
35
|
|
|
|
32
|
|
|
BBB/Baa
|
|
|
|
|
8
|
|
|
|
13
|
|
|
BB/Ba
|
|
|
|
|
3
|
|
|
|
1
|
|
|
Not Rated
|
|
|
|
|
7
|
2
|
|
|
7
|
|
|
1
|
|
Using the higher of S&P’s or Moody’s
ratings.
|
|
2
|
|
The investment advisor has deemed certain
of these non-rated securities to be of investment grade quality. As of July 31, 2013, the market value of these securities
was $2,500,000 representing 1%, of the Trust’s long-term investments.
|
|
Call/Maturity
Schedule
3
|
|
Calendar Year Ended December 31,
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
13
|
%
|
|
2014
|
|
|
|
|
—
|
|
|
2015
|
|
|
|
|
6
|
|
|
2016
|
|
|
|
|
4
|
|
|
2017
|
|
|
|
|
12
|
|
|
3
|
|
Scheduled maturity dates and/or bonds that
are subject to potential calls by issuers over the next five years.
|
|
ANNUAL REPORT
|
JULY 31, 2013
|
17
|
|
|
|
|
Schedule of Investments
July 31, 2013
|
BlackRock
California Municipal Income Trust (BFZ)
(Percentages shown
are based on Net Assets)
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
California — 98.2%
|
|
Corporate — 0.8%
|
|
|
|
|
|
|
|
|
|
|
|
City of Chula Vista California, Refunding RB, San Diego Gas & Electric:
|
|
|
|
|
|
|
|
|
|
|
|
Series A, 5.88%, 2/15/34
|
|
|
|
$
|
680
|
|
|
$
|
754,895
|
|
|
Series D, 5.88%, 1/01/34
|
|
|
|
|
2,500
|
|
|
|
2,774,350
|
|
|
|
|
|
|
|
|
|
|
|
3,529,245
|
|
|
County/City/Special District/School District — 37.3%
|
|
|
|
|
|
|
|
|
|
|
|
Butte-Glenn Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/30
|
|
|
|
|
8,425
|
|
|
|
9,272,387
|
|
|
Cerritos Community College District, GO, Election of 2004, Series C, 5.25%, 8/01/31
|
|
|
|
|
3,000
|
|
|
|
3,244,620
|
|
|
Chabot-Las Positas Community College District, GO, Refunding, Alameda and Contra Costa Counties, California, 5.00%, 8/01/32
|
|
|
|
|
3,000
|
|
|
|
3,071,160
|
|
|
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
|
|
|
|
|
|
|
|
|
|
|
|
6.13%, 5/01/31
|
|
|
|
|
500
|
|
|
|
555,390
|
|
|
6.50%, 5/01/36
|
|
|
|
|
1,210
|
|
|
|
1,365,921
|
|
|
6.50%, 5/01/42
|
|
|
|
|
2,225
|
|
|
|
2,507,063
|
|
|
County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35
|
|
|
|
|
2,000
|
|
|
|
2,251,020
|
|
|
Evergreen Elementary School District, GO, Election of 2006, Series B (AGC), 5.13%, 8/01/33
|
|
|
|
|
2,500
|
|
|
|
2,620,175
|
|
|
Grossmont Healthcare District, GO, Election of 2006, Series B:
|
|
|
|
|
|
|
|
|
|
|
|
6.00%, 7/15/34
|
|
|
|
|
2,235
|
|
|
|
2,520,745
|
|
|
6.13%, 7/15/40
|
|
|
|
|
2,000
|
|
|
|
2,249,780
|
|
|
Long Beach Unified School District California, GO, Refunding, Election of 2008, Series A, 5.75%, 8/01/33
|
|
|
|
|
4,135
|
|
|
|
4,677,801
|
|
|
Los
Alamitos Unified School District California, GO, School Facilities Improvement District No. 1, 5.50%, 8/01/33
|
|
|
|
|
5,760
|
|
|
|
6,394,406
|
|
|
Los
Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/30
|
|
|
|
|
4,975
|
|
|
|
5,508,469
|
|
|
Modesto Irrigation District, COP, Capital Improvments, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.75%, 10/01/29
|
|
|
|
|
3,000
|
|
|
|
3,270,000
|
|
|
5.75%, 10/01/34
|
|
|
|
|
180
|
|
|
|
194,022
|
|
|
Mount Diablo Unified School District, GO, Refunding, Election of 2002, Series C, 5.00%, 8/01/29
|
|
|
|
|
5,000
|
|
|
|
5,253,000
|
|
|
Oak
Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33
|
|
|
|
|
6,000
|
|
|
|
6,659,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
California (continued)
|
|
County/City/Special District/School District (concluded)
|
|
Orange County Water District, COP, Refunding, 5.25%, 8/15/34
|
|
|
|
$
|
2,000
|
|
|
$
|
2,140,380
|
|
|
Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39
|
|
|
|
|
2,000
|
|
|
|
2,129,480
|
|
|
Pittsburg Unified School District, GO, Election of 2006, Series B (AGM), 5.50%, 8/01/34
|
|
|
|
|
2,000
|
|
|
|
2,156,280
|
|
|
Sacramento Area Flood Control Agency, Special Assessment Bonds, Consolidated Capital Assessment District, 5.25%, 10/01/32
|
|
|
|
|
3,035
|
|
|
|
3,256,130
|
|
|
San
Diego Community College District California, GO:
|
|
|
|
|
|
|
|
|
|
|
|
Election of 2002, 5.25%, 8/01/33
|
|
|
|
|
1,500
|
|
|
|
1,659,945
|
|
|
Election of 2002 (AGM), 5.00%, 8/01/32
|
|
|
|
|
9,000
|
|
|
|
9,690,480
|
|
|
Election of 2006, 5.00%, 8/01/43
|
|
|
|
|
2,145
|
|
|
|
2,227,111
|
|
|
San
Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36
|
|
|
|
|
5,500
|
|
|
|
5,932,245
|
|
|
San
Jose Financing Authority, Refunding LRB, Civic Center Project, Series A, 5.00%, 6/01/39
|
|
|
|
|
9,340
|
|
|
|
9,360,922
|
|
|
San
Leandro Unified School District California, GO, Election 2010, Series A, 5.75%, 8/01/41
|
|
|
|
|
3,060
|
|
|
|
3,306,085
|
|
|
Santa Ana Unified School District, GO, Election of 2008, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.50%, 8/01/30
|
|
|
|
|
6,455
|
|
|
|
7,108,052
|
|
|
5.13%, 8/01/33
|
|
|
|
|
10,000
|
|
|
|
10,349,600
|
|
|
Santa Clara County Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36
|
|
|
|
|
20,000
|
|
|
|
21,180,000
|
|
|
Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38
|
|
|
|
|
2,250
|
|
|
|
2,493,045
|
|
|
Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 8/01/33
|
|
|
|
|
4,000
|
|
|
|
4,533,920
|
|
|
Tustin Unified School District, GO, Election of 2008, Series B, 5.25%, 8/01/31
|
|
|
|
|
3,445
|
|
|
|
3,705,614
|
|
|
West Contra Costa Unified School District, GO, Election of 2010, Series A (AGM), 5.25%, 8/01/32
|
|
|
|
|
4,835
|
|
|
|
5,204,732
|
|
|
Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), 6.25%,
11/01/39
|
|
|
|
|
7,750
|
|
|
|
8,500,975
|
|
|
William S. Hart Union High School District, GO, CAB, Refunding, Series B (AGM) (a):
|
|
|
|
|
|
|
|
|
|
|
|
5.82%, 8/01/34
|
|
|
|
|
11,150
|
|
|
|
3,342,436
|
|
|
5.84%, 8/01/35
|
|
|
|
|
9,625
|
|
|
|
2,712,710
|
|
|
|
|
|
|
|
|
|
|
|
172,605,501
|
|
Portfolio Abbreviations
To simplify the listings of portfolio
holdings in the Schedules of
Investments, the names and
descriptions of many of the
securities have been abbreviated
according to the following list:
|
|
ACA
|
American Capital Access Corp.
|
HDA
|
Housing Development Authority
|
|
|
AGC
|
Assured Guarantee Corp.
|
HFA
|
Housing Finance Agency
|
|
|
AGM
|
Assured Guaranty Municipal Corp.
|
HRB
|
Housing Revenue Bonds
|
|
|
AMBAC
|
American Municipal Bond Assurance Corp.
|
IDA
|
Industrial Development Authority
|
|
|
AMT
|
Alternative Minimum Tax (subject to)
|
IDB
|
Industrial Development Board
|
|
|
ARB
|
Airport Revenue Bonds
|
IDRB
|
Industrial Development Revenue Bonds
|
|
|
BARB
|
Building Aid Revenue Bonds
|
ISD
|
Independent School District
|
|
|
BHAC
|
Berkshire Hathaway Assurance Corp.
|
LRB
|
Lease Revenue Bonds
|
|
|
CAB
|
Capital Appreciation Bonds
|
M/F
|
Multi-Family
|
|
|
CIFG
|
CDC
IXIS Financial Guaranty
|
MRB
|
Mortgage Revenue Bonds
|
|
|
COP
|
Certificates of Participation
|
NPFGC
|
National Public Finance Guarantee Corp.
|
|
|
EDA
|
Economic Development Authority
|
PILOT
|
Payment in Lieu of Taxes
|
|
|
EDC
|
Economic Development Corp.
|
Radian
|
Radian Guaranty, Inc.
|
|
|
ERB
|
Education Revenue Bonds
|
RB
|
Revenue Bonds
|
|
|
FHA
|
Federal Housing Administration
|
S/F
|
Single-Family
|
|
|
GARB
|
General Airport Revenue Bonds
|
SONYMA
|
State of New York Mortgage Agency
|
|
|
|
GO
|
General Obligation Bonds
|
Syncora
|
Syncora Guarantee
|
See Notes to Financial Statements.
|
18
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
California Municipal Income Trust (BFZ)
(Percentages shown
are based on Net Assets)
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
California (continued)
|
|
Education — 2.5%
|
|
|
|
|
|
|
|
|
|
|
|
Alum Rock Union Elementary School District, GO, Election of 2012, Series A, 6.00%, 8/01/39
|
|
|
|
$
|
1,300
|
|
|
$
|
1,456,754
|
|
|
California Educational Facilities Authority, Refunding RB, San Francisco University, 6.13%, 10/01/36
|
|
|
|
|
6,280
|
|
|
|
7,008,041
|
|
|
California Municipal Finance Authority, RB, Emerson College, 5.75%, 1/01/33
|
|
|
|
|
2,500
|
|
|
|
2,696,850
|
|
|
University of California, RB, Series O, 5.38%, 5/15/34
|
|
|
|
|
490
|
|
|
|
532,179
|
|
|
|
|
|
|
|
|
|
|
|
11,693,824
|
|
|
Health — 18.8%
|
|
|
|
|
|
|
|
|
|
|
|
ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare:
|
|
|
|
|
|
|
|
|
|
|
|
6.38%, 8/01/34
|
|
|
|
|
3,080
|
|
|
|
3,214,011
|
|
|
6.25%, 8/01/39
|
|
|
|
|
3,775
|
|
|
|
4,164,882
|
|
|
Series A, 6.00%, 8/01/30
|
|
|
|
|
2,275
|
|
|
|
2,518,243
|
|
|
California Health Facilities Financing Authority, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Adventist Health System West, Series A, 5.75%, 9/01/39
|
|
|
|
|
6,695
|
|
|
|
6,937,493
|
|
|
Catholic Healthcare West, Series J, 5.63%, 7/01/32
|
|
|
|
|
9,750
|
|
|
|
9,902,295
|
|
|
Children’s Hospital, Series A, 5.25%, 11/01/41
|
|
|
|
|
9,165
|
|
|
|
9,212,933
|
|
|
Sutter Health, Series A, 5.25%, 11/15/46
|
|
|
|
|
8,195
|
|
|
|
8,137,717
|
|
|
Sutter Health, Series B, 6.00%, 8/15/42
|
|
|
|
|
6,015
|
|
|
|
6,751,356
|
|
|
California Health Facilities Financing Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Catholic Healthcare West, Series A, 6.00%, 7/01/29
|
|
|
|
|
1,000
|
|
|
|
1,131,250
|
|
|
Catholic Healthcare West, Series A, 6.00%, 7/01/34
|
|
|
|
|
4,470
|
|
|
|
5,063,705
|
|
|
Catholic Healthcare West, Series A, 6.00%, 7/01/39
|
|
|
|
|
3,050
|
|
|
|
3,455,101
|
|
|
Providence Health, 6.50%, 10/01/38
|
|
|
|
|
4,090
|
|
|
|
4,686,404
|
|
|
California Statewide Communities Development Authority, RB, Kaiser Permanente:
|
|
|
|
|
|
|
|
|
|
|
|
Series A, 5.00%, 4/01/42
|
|
|
|
|
8,000
|
|
|
|
7,903,360
|
|
|
Series B, 5.25%, 3/01/45
|
|
|
|
|
2,000
|
|
|
|
2,000,380
|
|
|
California Statewide Communities Development Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Catholic Healthcare West, Series B, 5.50%, 7/01/30
|
|
|
|
|
2,940
|
|
|
|
3,189,253
|
|
|
Catholic Healthcare West, Series E, 5.50%, 7/01/31
|
|
|
|
|
4,965
|
|
|
|
5,262,354
|
|
|
Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41
|
|
|
|
|
3,500
|
|
|
|
3,457,930
|
|
|
|
|
|
|
|
|
|
|
|
86,988,667
|
|
|
State — 8.5%
|
|
|
|
|
|
|
|
|
|
|
|
California State Public Works Board, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34
|
|
|
|
|
9,000
|
|
|
|
10,416,510
|
|
|
Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34
|
|
|
|
|
5,025
|
|
|
|
5,846,688
|
|
|
State of California, GO, Various Purpose:
|
|
|
|
|
|
|
|
|
|
|
|
6.00%, 3/01/33
|
|
|
|
|
4,080
|
|
|
|
4,654,383
|
|
|
6.50%, 4/01/33
|
|
|
|
|
3,500
|
|
|
|
4,096,050
|
|
|
6.00%, 4/01/38
|
|
|
|
|
12,685
|
|
|
|
14,190,963
|
|
|
|
|
|
|
|
|
|
|
|
39,204,594
|
|
|
Transportation — 13.6%
|
|
|
|
|
|
|
|
|
|
|
|
Bay
Area Toll Authority, RB, San Francisco Bay Area Toll Bridge, 0.96%, 4/01/45 (b)
|
|
|
|
|
7,000
|
|
|
|
6,941,970
|
|
|
City of Los Angeles Department of Airports, RB, Los Angeles International Airports, Series B, 5.00%, 5/15/31
|
|
|
|
|
4,000
|
|
|
|
4,163,080
|
|
|
City of Los Angeles Department of Airports, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Los Angeles International Airport, Sub-Series C, 5.25%, 5/15/38
|
|
|
|
|
1,660
|
|
|
|
1,713,668
|
|
|
Series A, 5.00%, 5/15/34
|
|
|
|
|
6,075
|
|
|
|
6,290,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
$
|
2,325
|
|
|
$
|
2,420,441
|
|
|
6.25%, 3/01/34
|
|
|
|
|
2,650
|
|
|
|
2,900,531
|
|
|
County of Orange California, ARB, Series B, 5.75%, 7/01/34
|
|
|
|
|
8,000
|
|
|
|
8,785,360
|
|
|
County of Sacramento California, ARB:
|
|
|
|
|
|
|
|
|
|
|
|
PFC/Grant, Sub-Series D, 6.00%, 7/01/35
|
|
|
|
|
3,000
|
|
|
|
3,352,500
|
|
|
Senior Series B, 5.75%, 7/01/39
|
|
|
|
|
1,850
|
|
|
|
2,051,021
|
|
|
Los
Angeles Harbor Department, RB, Series B, 5.25%, 8/01/34
|
|
|
|
|
5,530
|
|
|
|
5,964,050
|
|
|
San
Francisco City & County Airports Commission, RB, Series E, 6.00%, 5/01/39
|
|
|
|
|
6,750
|
|
|
|
7,679,407
|
|
|
San
Francisco City & County Airports Commission, Refunding RB, Second Series A, AMT, 5.25%, 5/01/33
|
|
|
|
|
1,440
|
|
|
|
1,478,578
|
|
|
San
Joaquin County Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
6.00%, 3/01/36
|
|
|
|
|
2,880
|
|
|
|
3,219,523
|
|
|
5.50%, 3/01/41
|
|
|
|
|
5,265
|
|
|
|
5,666,403
|
|
|
|
|
|
|
|
|
|
|
|
62,626,648
|
|
|
Utilities — 16.7%
|
|
|
|
|
|
|
|
|
|
|
|
Anaheim Public Financing Authority, RB, Electric System Distribution Facilities, Series A, 5.38%, 10/01/36
|
|
|
|
|
7,690
|
|
|
|
8,292,435
|
|
|
California Infrastructure & Economic Development Bank, RB, California Independent System Operator, Series A, 6.25%, 2/01/39
|
|
|
|
|
5,500
|
|
|
|
5,804,535
|
|
|
Calleguas-Las Virgenes Public Financing Authority California, RB, Calleguas Municipal Water District Project, Series A (NPFGC), 5.13%,
7/01/32
|
|
|
|
|
4,000
|
|
|
|
4,145,080
|
|
|
City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series D, 5.88%, 1/01/34
|
|
|
|
|
6,530
|
|
|
|
7,246,602
|
|
|
City of Los Angeles California Wastewater System, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Series A, 5.00%, 6/01/39
|
|
|
|
|
2,000
|
|
|
|
2,029,000
|
|
|
Sub-Series A, 5.00%, 6/01/32
|
|
|
|
|
4,000
|
|
|
|
4,158,800
|
|
|
Sub-Series A, 5.00%, 6/01/34
|
|
|
|
|
4,715
|
|
|
|
4,965,508
|
|
|
City of Petaluma California Wastewater, Refunding RB, 6.00%, 5/01/36
|
|
|
|
|
5,625
|
|
|
|
6,300,281
|
|
|
City of Sacramento California, RB, Water, 5.00%, 9/01/42
|
|
|
|
|
3,000
|
|
|
|
3,059,430
|
|
|
Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41
|
|
|
|
|
2,425
|
|
|
|
2,724,973
|
|
|
Los
Angeles Department of Water & Power, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Power System, Sub-Series A-1, 5.25%, 7/01/38
|
|
|
|
|
9,000
|
|
|
|
9,383,760
|
|
|
Series A, 5.38%, 7/01/34
|
|
|
|
|
3,075
|
|
|
|
3,375,366
|
|
|
Los
Angeles Department of Water & Power, Refunding RB, Series A, 5.25%, 7/01/39
|
|
|
|
|
4,000
|
|
|
|
4,228,560
|
|
|
San
Diego Public Facilities Financing Authority, Refunding RB, Senior Series A, 5.25%, 5/15/34
|
|
|
|
|
11,020
|
|
|
|
11,651,997
|
|
|
|
|
|
|
|
|
|
|
|
77,366,327
|
|
|
Total Municipal Bonds in California
|
|
|
|
|
|
|
|
|
454,014,806
|
|
|
|
|
Multi-State — 1.8%
|
|
Housing — 1.8%
|
|
|
|
|
|
|
|
|
|
|
|
Centerline Equity Issuer Trust (c)(d):
|
|
|
|
|
|
|
|
|
|
|
|
7.20%, 11/15/14
|
|
|
|
|
3,500
|
|
|
|
3,739,610
|
|
|
6.00%, 5/15/15
|
|
|
|
|
1,500
|
|
|
|
1,612,350
|
|
|
5.75%, 5/15/15
|
|
|
|
|
500
|
|
|
|
535,525
|
|
|
6.00%, 5/15/19
|
|
|
|
|
1,000
|
|
|
|
1,152,040
|
|
|
6.30%, 5/15/19
|
|
|
|
|
1,000
|
|
|
|
1,166,070
|
|
|
Total Municipal Bonds in Multi-State
|
|
|
|
|
|
|
|
|
8,205,595
|
|
|
Total Municipal Bonds — 100.0%
|
|
|
|
|
|
|
|
|
462,220,401
|
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
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 (e)
|
|
|
|
Par
(000)
|
|
Value
|
|
California — 69.2%
|
|
County/City/Special District/School District — 22.0%
|
|
|
|
|
|
|
|
|
|
|
|
El
Dorado Union High School District, GO, Election of 2008, 5.00%, 8/01/35
|
|
|
|
$
|
5,020
|
|
|
$
|
5,145,048
|
|
|
Los
Angeles Community College District California, GO:
|
|
|
|
|
|
|
|
|
|
|
|
Election of 2001, Series A (AGM), 5.00%, 8/01/32
|
|
|
|
|
8,000
|
|
|
|
8,330,160
|
|
|
Election of 2003, Series F-1, 5.00%, 8/01/33
|
|
|
|
|
5,000
|
|
|
|
5,186,500
|
|
|
Election of 2008, Series C, 5.25%, 8/01/39 (f)
|
|
|
|
|
12,900
|
|
|
|
13,677,677
|
|
|
Los
Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33
|
|
|
|
|
20,131
|
|
|
|
23,306,038
|
|
|
Los
Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34
|
|
|
|
|
5,000
|
|
|
|
5,089,800
|
|
|
Mount San Antonio Community College District California, GO, Election of 2001, Series C (AGM), 5.00%, 9/01/16 (g)
|
|
|
|
|
10,770
|
|
|
|
12,179,901
|
|
|
San
Bernardino Community College District California, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31
|
|
|
|
|
2,000
|
|
|
|
2,067,420
|
|
|
San
Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33
|
|
|
|
|
10,484
|
|
|
|
11,602,297
|
|
|
San
Jose Unified School District Santa Clara County California, GO, Election of 2002, Series D, 5.00%, 8/01/32
|
|
|
|
|
14,625
|
|
|
|
15,266,156
|
|
|
|
|
|
|
|
|
|
|
|
101,850,997
|
|
|
Education — 14.0%
|
|
|
|
|
|
|
|
|
|
|
|
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (f)
|
|
|
|
|
10,395
|
|
|
|
11,103,315
|
|
|
Grossmont Union High School District, GO, Election of 2004, 5.00%, 8/01/33
|
|
|
|
|
13,095
|
|
|
|
13,509,414
|
|
|
San
Mateo County Community College District, GO, Election of 2005, Series B, 5.00%, 9/01/31
|
|
|
|
|
8,630
|
|
|
|
9,061,241
|
|
|
University of California, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Limited Project, Series D (AGM), 5.00%, 5/15/41
|
|
|
|
|
2,600
|
|
|
|
2,623,244
|
|
|
Series O, 5.75%, 5/15/34
|
|
|
|
|
12,300
|
|
|
|
13,918,516
|
|
|
University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37
|
|
|
|
|
13,841
|
|
|
|
14,306,969
|
|
|
|
|
|
|
|
|
|
|
|
64,522,699
|
|
|
Transportation — 1.1%
|
|
|
|
|
|
|
|
|
|
|
|
City of Los Angeles California Department of Airports, Refunding RB, Los Angeles International Airport,
Senior Series A, 5.00%, 5/15/40
|
|
|
|
|
4,999
|
|
|
|
5,073,535
|
|
|
Utilities — 32.1%
|
|
|
|
|
|
|
|
|
|
|
|
California State Department of Water Resources, Refunding RB, Central Valley Project, Series AE, 5.00%, 12/01/29
|
|
|
|
|
7,000
|
|
|
|
7,596,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to
Tender
Option Bond Trusts (e)
|
|
|
|
Par
(000)
|
|
Value
|
|
California (concluded)
|
|
Utilities (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
City of Los Angeles California Wastewater System, Refunding RB, Series A, 5.00%, 6/01/34
|
|
|
|
$
|
7,500
|
|
|
$
|
7,898,475
|
|
|
City of Napa California Water System, RB, (AMBAC), 5.00%, 5/01/35
|
|
|
|
|
3,000
|
|
|
|
3,072,870
|
|
|
East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), 5.00%, 6/01/35
|
|
|
|
|
3,000
|
|
|
|
3,096,900
|
|
|
Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33
|
|
|
|
|
18,002
|
|
|
|
18,436,747
|
|
|
Los
Angeles Department of Water & Power, RB, Power System:
|
|
|
|
|
|
|
|
|
|
|
|
Sub-Series A-1 (AMBAC), 5.00%, 7/01/37
|
|
|
|
|
15,998
|
|
|
|
16,541,864
|
|
|
Sub-Series A-2 (AGM), 5.00%, 7/01/35
|
|
|
|
|
2,000
|
|
|
|
2,092,680
|
|
|
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37
|
|
|
|
|
11,180
|
|
|
|
11,674,715
|
|
|
Orange County Sanitation District, COP, Series B (AGM), 5.00%, 2/01/37
|
|
|
|
|
14,700
|
|
|
|
15,195,831
|
|
|
Orange County Water District, COP, Refunding, 5.00%, 8/15/39
|
|
|
|
|
10,480
|
|
|
|
10,868,913
|
|
|
San
Diego County Water Authority, COP, Refunding, Series 2008-A (AGM), 5.00%, 5/01/33
|
|
|
|
|
14,290
|
|
|
|
14,836,735
|
|
|
San
Diego Public Facilities Financing Authority, Refunding RB, Senior Series A, 5.25%, 5/15/39
|
|
|
|
|
12,457
|
|
|
|
13,147,742
|
|
|
San
Francisco City & County Public Utilities Commission, RB, Water System Improvment Project, Sub-Series A, 5.00%, 11/01/37
|
|
|
|
|
12,698
|
|
|
|
13,130,841
|
|
|
San
Francisco City & County Public Utilities Commission, Refunding RB, Senior Series A, 5.00%, 11/01/35
|
|
|
|
|
10,625
|
|
|
|
10,957,665
|
|
|
|
|
|
|
|
|
|
|
|
148,548,098
|
|
|
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 69.2%
|
|
|
|
|
|
|
|
|
319,995,329
|
|
|
Total Long-Term Investments
(Cost — $751,587,981) — 169.2%
|
|
|
|
|
|
|
|
|
782,215,730
|
|
|
|
|
Short-Term Securities
|
|
|
|
|
Shares
|
|
|
|
|
|
|
BIF California Municipal Money Fund, 0.00% (h)(i)
|
|
|
|
|
1,269,184
|
|
|
|
1,269,184
|
|
|
Total Short-Term Securities
(Cost — $1,269,184) — 0.3%
|
|
|
|
|
|
|
|
|
1,269,184
|
|
|
Total Investments (Cost — $752,857,165) — 169.5%
|
|
|
|
|
|
|
|
|
783,484,914
|
|
|
Other Assets Less Liabilities — 1.9%
|
|
|
|
|
|
|
|
|
8,823,143
|
|
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (34.3%)
|
|
|
|
|
|
|
|
|
(158,734,636
|
)
|
|
VMTP Shares, at Liquidation Value — (37.1%)
|
|
|
|
|
|
|
|
|
(171,300,000
|
)
|
|
Net Assets Applicable to Common Shares — 100.0%
|
|
|
|
|
|
|
|
$
|
462,273,421
|
|
Notes to Schedule of Investments
|
(a)
|
|
|
|
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
|
|
(b)
|
|
|
|
Variable rate security. Rate shown is as of report date.
|
|
(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)
|
|
|
|
Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by
various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated
maturity.
|
|
(e)
|
|
|
|
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as
collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to
TOBs.
|
|
(f)
|
|
|
|
All
or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a
shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a
shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016
to August 1, 2018 is $14,008,480.
|
|
(g)
|
|
|
|
US
government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated,
typically at a premium to par.
|
See Notes to Financial Statements.
|
20
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments (concluded)
|
BlackRock
California Municipal Income Trust (BFZ)
|
|
(h)
|
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2013, for purposes of Section 2(a)(3) of the 1940
Act, were as follows:
|
Affiliate
|
|
|
|
Shares Held at
July 31, 2012
|
|
Net
Activity
|
|
Shares Held at
July 31, 2013
|
|
Income
|
|
BIF California Municipal Money Fund
|
|
|
|
7,953,278
|
|
(6,684,094)
|
|
1,269,184
|
|
$17
|
|
(i)
|
|
|
|
Represents the current yield as of report date.
|
|
|
|
|
|
For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications
used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. These definitions may not apply
for purposes of this report, which may combine such sector sub-classifications for reporting ease.
|
|
•
|
|
|
|
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation
techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
|
|
|
•
|
|
|
|
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the
ability to access
|
|
|
•
|
|
|
|
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets
that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are
observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
|
|
|
•
|
|
|
|
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are
not available (including the Trust’s own assumptions used in determining the fair value of investments)
|
|
|
|
|
|
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1
measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair
value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value
hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is
significant to the fair value measurement in its entirety.
|
|
|
|
|
|
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. The categorization of a value determined for investments is based on the pricing transparency of the investment
and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy
regarding valuation of investments, please refer to Note 2 of the Notes to Financial Statements.
|
|
|
|
|
|
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of July 31,
2013:
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments
1
|
|
|
|
|
—
|
|
|
$
|
782,215,730
|
|
|
|
—
|
|
|
$
|
782,215,730
|
|
|
Short-Term Securities
|
|
|
|
$
|
1,269,184
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,269,184
|
|
|
Total
|
|
|
|
$
|
1,269,184
|
|
|
$
|
782,215,730
|
|
|
|
—
|
|
|
$
|
783,484,914
|
|
|
|
1
|
See above Schedule of Investments for values in each sector.
|
|
|
|
|
|
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes.
As of July 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdraft
|
|
|
|
|
—
|
|
|
$
|
(4,413
|
)
|
|
|
—
|
|
|
$
|
(4,413
|
)
|
|
TOB trust certificates
|
|
|
|
|
—
|
|
|
|
(158,655,348
|
)
|
|
|
—
|
|
|
|
(158,655,348
|
)
|
|
VMTP Shares
|
|
|
|
|
—
|
|
|
|
(171,300,000
|
)
|
|
|
—
|
|
|
|
(171,300,000
|
)
|
|
Total
|
|
|
|
|
—
|
|
|
$
|
(329,959,761
|
)
|
|
|
—
|
|
|
$
|
(329,959,761
|
)
|
|
|
|
|
|
There were no transfers between levels during the year ended July 31, 2013.
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
21
|
|
|
|
|
Schedule of Investments
July 31, 2013
|
BlackRock
Florida Municipal 2020 Term Trust (BFO)
(Percentages shown
are based on Net Assets)
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Florida — 117.9%
|
|
Corporate — 4.1%
|
|
|
|
|
|
|
|
|
|
|
|
Hillsborough County IDA, Refunding RB, Tampa Electric Co. Project, Series A, 5.65%, 5/15/18
|
|
|
|
$
|
1,000
|
|
|
$
|
1,157,260
|
|
|
Palm Beach County Solid Waste Authority, Refunding RB, 5.00%, 10/01/20
|
|
|
|
|
2,000
|
|
|
|
2,340,420
|
|
|
|
|
|
|
|
|
|
|
|
3,497,680
|
|
|
County/City/Special District/School District — 35.7%
|
|
|
|
|
|
|
|
|
|
|
|
Broward County School Board Florida, COP Series A:
|
|
|
|
|
|
|
|
|
|
|
|
Refunding, 5.00%, 7/01/20
|
|
|
|
|
2,000
|
|
|
|
2,284,380
|
|
|
(AGM), 5.25%, 7/01/22
|
|
|
|
|
2,500
|
|
|
|
2,827,800
|
|
|
City of Jacksonville Florida, Refunding RB, Better Jacksonville Sales Tax, 5.00%, 10/01/20
|
|
|
|
|
4,000
|
|
|
|
4,649,400
|
|
|
County of Hillsborough Florida, RB, (AMBAC), 5.00%, 11/01/20
|
|
|
|
|
5,545
|
|
|
|
6,252,043
|
|
|
Florida State Board of Education, GO, Refunding, Capital Outlay, Series B, 5.00%, 6/01/20
|
|
|
|
|
485
|
|
|
|
567,605
|
|
|
Miami-Dade County Educational Facilities Authority Florida, RB, University of Miami, Series A (AMBAC), 5.00%, 4/01/14 (a)
|
|
|
|
|
1,000
|
|
|
|
1,031,690
|
|
|
Miami-Dade County School Board, COP, Refunding, Series B (AGC), 5.25%, 5/01/21
|
|
|
|
|
4,000
|
|
|
|
4,525,960
|
|
|
Northern Palm Beach County Improvement District, Special Assessment Bonds, Refunding, Water Control & Improvement District No. 43, Series B
(ACA), 4.50%, 8/01/22
|
|
|
|
|
1,000
|
|
|
|
965,520
|
|
|
Sterling Hill Community Development District, Special Assessment Bonds, Refunding, Series A, 6.10%, 5/01/23
|
|
|
|
|
3,260
|
|
|
|
2,745,931
|
|
|
Stevens Plantation Florida Imports Project Dependant Special District, RB, 6.38%, 5/01/13 (b)(c)
|
|
|
|
|
2,425
|
|
|
|
1,806,770
|
|
|
Village Center Community Development District, RB, Sub-Series B, 6.35%, 1/01/18
|
|
|
|
|
2,000
|
|
|
|
2,004,140
|
|
|
Watergrass Community Development District, Special Assessment Bonds, Series B, 5.13%, 11/01/14
|
|
|
|
|
900
|
|
|
|
754,668
|
|
|
|
|
|
|
|
|
|
|
|
30,415,907
|
|
|
Education — 3.0%
|
|
|
|
|
|
|
|
|
|
|
|
Florida State Board of Governors, Refunding RB, University of Central Florida, Series A, 5.00%, 7/01/18
|
|
|
|
|
500
|
|
|
|
572,190
|
|
|
Florida State Higher Educational Facilities Financial Authority, Refunding RB, University of Tampa Project, Series A, 5.00%,
4/01/20
|
|
|
|
|
1,000
|
|
|
|
1,109,160
|
|
|
Orange County Educational Facilities Authority, RB, Rollins College Project (AMBAC), 5.25%, 12/01/22
|
|
|
|
|
725
|
|
|
|
826,848
|
|
|
|
|
|
|
|
|
|
|
|
2,508,198
|
|
|
Health — 15.5%
|
|
|
|
|
|
|
|
|
|
|
|
Highlands County Health Facilities Authority, Refunding RB, Hospital, Adventist Health, Series I, 5.00%, 11/15/20
|
|
|
|
|
2,155
|
|
|
|
2,427,069
|
|
|
Hillsborough County IDA, RB, H. Lee Moffitt Cancer Center Project, Series A, 5.25%, 7/01/22
|
|
|
|
|
1,500
|
|
|
|
1,605,765
|
|
|
Marion County Hospital District Florida, Refunding RB, Health System, Munroe Regional, 5.00%, 10/01/22
|
|
|
|
|
1,500
|
|
|
|
1,673,820
|
|
|
Orange County Health Facilities Authority, Refunding RB, Mayflower Retirement Center:
|
|
|
|
|
|
|
|
|
|
|
|
3.00%, 6/01/15
|
|
|
|
|
200
|
|
|
|
202,940
|
|
|
3.00%, 6/01/16
|
|
|
|
|
140
|
|
|
|
142,009
|
|
|
3.00%, 6/01/17
|
|
|
|
|
190
|
|
|
|
191,237
|
|
|
3.25%, 6/01/18
|
|
|
|
|
195
|
|
|
|
196,700
|
|
|
3.50%, 6/01/19
|
|
|
|
|
200
|
|
|
|
200,632
|
|
|
Palm Beach County Health Facilities Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Acts Retirement-Life Communities, Inc., 5.00%, 11/15/22
|
|
|
|
|
4,735
|
|
|
|
5,107,739
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Florida (continued)
|
|
Health (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
Palm Beach County Health Facilities Authority, Refunding RB (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
Bethesda Healthcare System Project, Series A (AGM), 5.00%, 7/01/20
|
|
|
|
$
|
1,285
|
|
|
$
|
1,468,588
|
|
|
|
|
|
|
|
|
|
|
|
13,216,499
|
|
|
Housing — 1.4%
|
|
|
|
|
|
|
|
|
|
|
|
Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 2, AMT (Ginnie Mae), 4.70%, 7/01/22
|
|
|
|
|
660
|
|
|
|
690,664
|
|
|
Jacksonville Housing Finance Authority, Refunding RB, Series A-1, AMT (Ginnie Mae), 5.63%, 10/01/39
|
|
|
|
|
200
|
|
|
|
211,252
|
|
|
Manatee County Housing Finance Authority, RB, Series A, AMT (Fannie Mae), 5.90%, 9/01/40
|
|
|
|
|
275
|
|
|
|
283,896
|
|
|
|
|
|
|
|
|
|
|
|
1,185,812
|
|
|
State — 14.5%
|
|
|
|
|
|
|
|
|
|
|
|
Florida Municipal Loan Council, RB, Series D (AGM):
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 10/01/19
|
|
|
|
|
1,050
|
|
|
|
1,207,857
|
|
|
4.00%, 10/01/20
|
|
|
|
|
1,105
|
|
|
|
1,189,035
|
|
|
4.00%, 10/01/21
|
|
|
|
|
500
|
|
|
|
529,450
|
|
|
Florida Municipal Loan Council, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
CAB, Series A (NPFGC), 3.92%, 4/01/20 (d)
|
|
|
|
|
4,000
|
|
|
|
3,088,920
|
|
|
Series B-2 (AGM), 4.00%, 10/01/17
|
|
|
|
|
305
|
|
|
|
335,488
|
|
|
Series B-2 (AGM), 4.00%, 10/01/18
|
|
|
|
|
605
|
|
|
|
667,781
|
|
|
Series B-2 (AGM), 4.00%, 10/01/20
|
|
|
|
|
655
|
|
|
|
702,062
|
|
|
Florida State Board of Education, GO, Refunding, Capital Outlay, Series B, 5.00%, 6/01/20
|
|
|
|
|
1,000
|
|
|
|
1,182,340
|
|
|
Florida State Department of Environmental Protection, Refunding RB, Series A, 5.00%, 7/01/20
|
|
|
|
|
3,000
|
|
|
|
3,477,780
|
|
|
|
|
|
|
|
|
|
|
|
12,380,713
|
|
|
Transportation — 20.5%
|
|
|
|
|
|
|
|
|
|
|
|
Broward County Florida Airport System Revenue, Refunding RB, Series P-1, AMT, 5.00%, 10/01/20
|
|
|
|
|
2,500
|
|
|
|
2,830,500
|
|
|
Broward County Florida Fuel System Revenue, RB, Lauderdale Fuel Facilities, Series A (AGM), AMT, 5.00%, 4/01/20
|
|
|
|
|
160
|
|
|
|
178,152
|
|
|
Broward County Florida Port Facilities Revenue, Refunding RB, Series B, AMT, 5.00%, 9/01/20
|
|
|
|
|
2,500
|
|
|
|
2,791,475
|
|
|
County of Lee Florida Transportation Facilities, Refunding RB, Series B (AMBAC):
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 10/01/20
|
|
|
|
|
2,250
|
|
|
|
2,347,650
|
|
|
5.00%, 10/01/22
|
|
|
|
|
3,000
|
|
|
|
3,120,570
|
|
|
County of Miami-Dade Florida Transit System Sales Surtax Revenue, Refunding RB, 5.00%, 7/01/20
|
|
|
|
|
550
|
|
|
|
634,948
|
|
|
Greater Orlando Aviation Authority, Refunding RB, Series C, 5.00%, 10/01/20
|
|
|
|
|
1,130
|
|
|
|
1,322,337
|
|
|
Jacksonville Florida Port Authority, Refunding RB, AMT, 4.00%, 11/01/20
|
|
|
|
|
865
|
|
|
|
901,615
|
|
|
Miami-Dade County Expressway Authority, Refunding RB, Series A, 5.00%, 7/01/20
|
|
|
|
|
1,500
|
|
|
|
1,730,655
|
|
|
Miami-Dade County Florida Aviation, Refunding RB, Series A, AMT, 5.00%, 10/01/20
|
|
|
|
|
1,375
|
|
|
|
1,547,081
|
|
|
|
|
|
|
|
|
|
|
|
17,404,983
|
|
|
Utilities — 23.2%
|
|
|
|
|
|
|
|
|
|
|
|
City of Deltona Florida, RB, (NPFGC), 5.00%, 10/01/23
|
|
|
|
|
1,095
|
|
|
|
1,103,059
|
|
|
City of Marco Island Florida Utility System, RB, (NPFGC):
|
|
|
|
|
|
|
|
|
|
|
|
5.25%, 10/01/13 (a)
|
|
|
|
|
1,000
|
|
|
|
1,008,360
|
|
|
5.00%, 10/01/22
|
|
|
|
|
2,000
|
|
|
|
2,015,240
|
|
|
5.00%, 10/01/23
|
|
|
|
|
1,375
|
|
|
|
1,384,653
|
|
|
City of North Miami Beach Water Revenue, RB, 5.00%, 8/01/20
|
|
|
|
|
1,200
|
|
|
|
1,374,420
|
|
|
Florida Governmental Utility Authority, RB, Golden Gate Utility System (AGM), 5.00%, 7/01/19
|
|
|
|
|
510
|
|
|
|
579,426
|
|
|
Florida Governmental Utility Authority, Refunding RB, Lehigh Utility (AGM), 5.00%, 10/01/20
|
|
|
|
|
635
|
|
|
|
719,271
|
|
See Notes to Financial Statements.
|
22
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
Florida Municipal 2020 Term Trust (BFO)
(Percentages shown
are based on Net Assets)
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Florida (concluded)
|
|
Utilities (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
Miami-Dade County Florida Water & Sewer System Revenue, Refunding RB, Series B (AGM), 5.25%, 10/01/19
|
|
|
|
$
|
4,000
|
|
|
$
|
4,716,880
|
|
|
Tohopekaliga Water Authority, RB, Series B (AGM):
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 10/01/22
|
|
|
|
|
1,975
|
|
|
|
1,989,970
|
|
|
5.00%, 10/01/23
|
|
|
|
|
1,180
|
|
|
|
1,188,909
|
|
|
Tohopekaliga Water Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/21
|
|
|
|
|
3,630
|
|
|
|
3,658,278
|
|
|
|
|
|
|
|
|
|
|
|
19,738,466
|
|
|
Total Municipal Bonds in Florida
|
|
|
|
|
|
|
|
|
100,348,258
|
|
|
|
|
Guam — 0.4%
|
|
Utilities — 0.4%
|
|
|
|
|
|
|
|
|
|
|
|
Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/20
|
|
|
|
|
310
|
|
|
|
349,807
|
|
|
Total Municipal Bonds — 118.3%
|
|
|
|
|
|
|
|
|
100,698,065
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to
Tender Option Bond Trusts — 0.5% (e)
|
|
|
|
Par
(000)
|
|
Value
|
|
Florida — 0.5%
|
|
Housing — 0.5%
|
|
|
|
|
|
|
|
|
|
|
|
Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%,
9/01/40
|
|
|
|
$
|
420
|
|
|
$
|
439,396
|
|
|
Total Long-Term Investments
(Cost — $98,786,968) — 118.8%
|
|
|
|
|
|
|
|
|
101,137,461
|
|
|
|
|
Short-Term Securities
|
|
|
|
|
Shares
|
|
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.03% (f)(g)
|
|
|
|
|
2,293,772
|
|
|
|
2,293,772
|
|
|
Total Short-Term Securities
(Cost — $2,293,772) — 2.7%
|
|
|
|
|
|
|
|
|
2,293,772
|
|
|
Total Investments (Cost — $101,080,740) — 121.5%
|
|
|
|
|
|
|
|
|
103,431,233
|
|
|
Other Assets Less Liabilities — 1.2%
|
|
|
|
|
|
|
|
|
1,087,728
|
|
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (0.3%)
|
|
|
|
|
|
|
|
|
(280,239
|
)
|
|
AMPS, at Redemption Value — (22.4%)
|
|
|
|
|
|
|
|
|
(19,100,000
|
)
|
|
Net Assets Applicable to Common Shares — 100.0%
|
|
|
|
|
|
|
|
$
|
85,138,722
|
|
Notes to Schedule of Investments
|
(a)
|
|
|
|
US
government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated,
typically at a premium to par.
|
|
(b)
|
|
|
|
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
|
|
(c)
|
|
|
|
Non-income producing security.
|
|
(d)
|
|
|
|
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
|
|
(e)
|
|
|
|
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as
collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to
TOBs.
|
|
(f)
|
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2013, for purposes of Section 2(a)(3) of the 1940
Act, were as follows:
|
Affiliate
|
|
|
|
Shares Held at
July 31, 2012
|
|
Net
Activity
|
|
Shares Held at
July 31, 2013
|
|
Income
|
|
BIF Florida Municipal Money Fund
|
|
|
|
781,042
|
|
(781,042)
|
|
—
|
|
$1,391
|
|
FFI Institutional Tax-Exempt Fund
|
|
|
|
—
|
|
2,293,772
|
|
2,293,772
|
|
$ 496
|
|
(g)
|
|
|
|
Represents the current yield as of report date.
|
|
|
|
|
|
For
Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more
widely recognized market indexes or rating group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this
report, which may combine such sector sub-classifications for reporting ease.
|
|
•
|
|
|
|
Fair
Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized
into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
|
|
|
•
|
|
|
|
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to
access
|
|
|
•
|
|
|
|
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active,
quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or
other market-corroborated inputs)
|
|
|
•
|
|
|
|
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available
(including the Trust’s own assumptions used in determining the fair value of investments)
|
|
|
|
|
|
The
hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for
instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases,
for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value
measurement in its entirety.
|
|
|
|
|
|
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. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not
necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation
of investments, please refer to Note 2 of the Notes to Financial Statements.
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
23
|
|
|
|
|
Schedule of Investments (concluded)
|
BlackRock
Florida Municipal 2020 Term Trust (BFO)
|
|
|
|
|
|
The
following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of July 31, 2013:
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments
1
|
|
|
|
|
—
|
|
|
$
|
101,137,461
|
|
|
|
—
|
|
|
$
|
101,137,461
|
|
|
Short-Term Securities
|
|
|
|
$
|
2,293,772
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2,293,772
|
|
|
Total
|
|
|
|
$
|
2,293,772
|
|
|
$
|
101,137,461
|
|
|
|
—
|
|
|
$
|
103,431,233
|
|
|
|
1
|
See above Schedule of Investments for values in each sector.
|
|
|
|
|
|
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July
31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdraft
|
|
|
|
|
—
|
|
|
$
|
(2,371
|
)
|
|
|
—
|
|
|
$
|
(2,371
|
)
|
|
TOB trust certificates
|
|
|
|
|
—
|
|
|
|
(280,000
|
)
|
|
|
—
|
|
|
|
(280,000
|
)
|
|
Total
|
|
|
|
|
—
|
|
|
$
|
(282,371
|
)
|
|
|
—
|
|
|
$
|
(282,371
|
)
|
|
|
|
|
|
There were no transfers between levels during the year ended July 31, 2013.
|
See Notes to Financial Statements.
|
24
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments
July 31, 2013
|
BlackRock
Municipal Income Investment Trust (BBF)
(Percentages shown
are based on Net Assets)
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Alabama — 2.9%
|
|
Alabama Incentives Financing Authority, RB, Series A, 5.00%, 9/01/42
|
|
|
|
$
|
2,150
|
|
|
$
|
2,159,266
|
|
|
Birmingham Water Works Board, RB, Series B, 5.00%, 1/01/38
|
|
|
|
|
270
|
|
|
|
272,209
|
|
|
Selma IDB, RB, International Paper Co. Project, Series A, 5.38%, 12/01/35
|
|
|
|
|
275
|
|
|
|
275,253
|
|
|
|
|
|
|
|
|
|
|
|
2,706,728
|
|
|
Alaska — 0.3%
|
|
|
|
|
|
|
|
|
|
|
|
Northern Tobacco Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%,
6/01/46
|
|
|
|
|
330
|
|
|
|
240,299
|
|
|
California — 9.7%
|
|
|
|
|
|
|
|
|
|
|
|
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38
|
|
|
|
|
1,315
|
|
|
|
1,398,831
|
|
|
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39
|
|
|
|
|
890
|
|
|
|
1,008,210
|
|
|
Grossmont Union High School District, GO, Election of 2008, Series B, 4.75%, 8/01/45
|
|
|
|
|
850
|
|
|
|
841,713
|
|
|
Los
Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38
|
|
|
|
|
1,750
|
|
|
|
1,824,620
|
|
|
Sacramento Municipal Utility District, RB, Series A, 5.00%, 8/15/37
|
|
|
|
|
745
|
|
|
|
760,913
|
|
|
San
Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36
|
|
|
|
|
1,600
|
|
|
|
1,725,744
|
|
|
State of California, GO, Various Purpose, 6.00%, 3/01/33
|
|
|
|
|
1,275
|
|
|
|
1,454,494
|
|
|
|
|
|
|
|
|
|
|
|
9,014,525
|
|
|
Colorado — 4.7%
|
|
|
|
|
|
|
|
|
|
|
|
City & County of Denver CO, ARB, Sub-Series B, 5.25%, 11/15/32
|
|
|
|
|
1,000
|
|
|
|
1,031,210
|
|
|
Colorado Health Facilities Authority, Refunding RB, Catholic Healthcare, Series A, 5.50%, 7/01/34
|
|
|
|
|
1,095
|
|
|
|
1,180,322
|
|
|
Regional Transportation District, RB, Fastracks Project, Series A, 5.00%, 11/01/37
|
|
|
|
|
2,090
|
|
|
|
2,168,208
|
|
|
|
|
|
|
|
|
|
|
|
4,379,740
|
|
|
Florida — 3.9%
|
|
|
|
|
|
|
|
|
|
|
|
County of Miami-Dade Florida, Refunding RB, Water & Sewer System, Series B, 5.25%, 10/01/29 (a)
|
|
|
|
|
1,400
|
|
|
|
1,491,882
|
|
|
County of Osceola Florida School Board, COP, Refunding, Series A, 5.00%, 6/01/28
|
|
|
|
|
340
|
|
|
|
352,274
|
|
|
JEA
Florida Electric System, Refunding RB, Sub-Series C, 5.00%, 10/01/37
|
|
|
|
|
1,000
|
|
|
|
1,019,830
|
|
|
Watergrass Community Development District, Special Assessment Bonds, Series B, 5.13%, 11/01/14
|
|
|
|
|
895
|
|
|
|
750,475
|
|
|
|
|
|
|
|
|
|
|
|
3,614,461
|
|
|
Georgia — 2.0%
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%,
1/01/23
|
|
|
|
|
1,565
|
|
|
|
1,840,205
|
|
|
Illinois — 15.7%
|
|
|
|
|
|
|
|
|
|
|
|
Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39
|
|
|
|
|
1,000
|
|
|
|
1,031,600
|
|
|
Chicago Illinois Transit Authority, RB, Sales Tax Receipts Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
5.25%, 12/01/31
|
|
|
|
|
1,060
|
|
|
|
1,099,750
|
|
|
5.25%, 12/01/36
|
|
|
|
|
310
|
|
|
|
317,328
|
|
|
City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien, Series C, 6.50%, 1/01/41
|
|
|
|
|
2,955
|
|
|
|
3,478,833
|
|
|
City of Chicago Illinois, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Sales Tax, Series A, 5.25%, 1/01/38
|
|
|
|
|
385
|
|
|
|
401,193
|
|
|
Second Lien, Water Project, 5.00%, 11/01/42
|
|
|
|
|
750
|
|
|
|
738,608
|
|
|
Illinois Finance Authority, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Carle Foundation, Series A, 6.00%, 8/15/41
|
|
|
|
|
1,000
|
|
|
|
1,084,780
|
|
|
Rush University Medical Center Obligation Group, Series B, 7.25%, 11/01/30
|
|
|
|
|
1,600
|
|
|
|
1,890,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Illinois (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
Illinois Finance Authority, Refunding RB (concluded) :
|
|
|
|
|
|
|
|
|
|
|
|
North Western Memorial Healthcare, 5.00%, 8/15/37
|
|
|
|
$
|
225
|
|
|
$
|
228,924
|
|
|
Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39
|
|
|
|
|
1,900
|
|
|
|
2,127,164
|
|
|
Railsplitter Tobacco Settlement Authority, RB:
|
|
|
|
|
|
|
|
|
|
|
|
5.50%, 6/01/23
|
|
|
|
|
690
|
|
|
|
767,032
|
|
|
6.00%, 6/01/28
|
|
|
|
|
195
|
|
|
|
212,772
|
|
|
State of Illinois, GO:
|
|
|
|
|
|
|
|
|
|
|
|
5.50%, 7/01/33
|
|
|
|
|
1,000
|
|
|
|
1,012,910
|
|
|
5.50%, 7/01/38
|
|
|
|
|
210
|
|
|
|
211,745
|
|
|
|
|
|
|
|
|
|
|
|
14,602,895
|
|
|
Indiana — 2.7%
|
|
|
|
|
|
|
|
|
|
|
|
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39
|
|
|
|
|
2,210
|
|
|
|
2,482,714
|
|
|
Kansas — 1.8%
|
|
|
|
|
|
|
|
|
|
|
|
Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series
C, 5.50%, 11/15/29
|
|
|
|
|
1,600
|
|
|
|
1,718,384
|
|
|
Kentucky — 1.4%
|
|
|
|
|
|
|
|
|
|
|
|
Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40
|
|
|
|
|
660
|
|
|
|
698,234
|
|
|
Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34
|
|
|
|
|
500
|
|
|
|
569,600
|
|
|
|
|
|
|
|
|
|
|
|
1,267,834
|
|
|
Louisiana — 2.5%
|
|
|
|
|
|
|
|
|
|
|
|
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%,
11/01/35
|
|
|
|
|
715
|
|
|
|
754,575
|
|
|
Terrebonne Levee & Conservation District, RB, Sales Tax, 5.00%, 7/01/38
|
|
|
|
|
370
|
|
|
|
365,827
|
|
|
Tobacco Settlement Financing Corp., Refunding RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.50%, 5/15/28
|
|
|
|
|
560
|
|
|
|
592,239
|
|
|
5.50%, 5/15/29
|
|
|
|
|
600
|
|
|
|
629,922
|
|
|
|
|
|
|
|
|
|
|
|
2,342,563
|
|
|
Maine — 1.6%
|
|
|
|
|
|
|
|
|
|
|
|
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%,
7/01/32
|
|
|
|
|
1,270
|
|
|
|
1,516,659
|
|
|
Massachusetts — 1.7%
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts Health & Educational Facilities Authority, RB, Tufts University, 5.38%, 8/15/38
|
|
|
|
|
1,000
|
|
|
|
1,104,820
|
|
|
Massachusetts School Building Authority, RB, Senior Series A, 5.00%, 5/15/43
|
|
|
|
|
480
|
|
|
|
498,802
|
|
|
|
|
|
|
|
|
|
|
|
1,603,622
|
|
|
Michigan — 3.5%
|
|
|
|
|
|
|
|
|
|
|
|
Lansing Board of Water & Light Utilities System, RB, Series A, 5.50%, 7/01/41
|
|
|
|
|
915
|
|
|
|
976,589
|
|
|
Michigan State Building Authority, Refunding RB, Series I, 6.00%, 10/15/38
|
|
|
|
|
1,000
|
|
|
|
1,127,120
|
|
|
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39
|
|
|
|
|
995
|
|
|
|
1,201,283
|
|
|
|
|
|
|
|
|
|
|
|
3,304,992
|
|
|
Mississippi — 3.5%
|
|
|
|
|
|
|
|
|
|
|
|
Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40
|
|
|
|
|
590
|
|
|
|
687,196
|
|
|
Mississippi Development Bank, Refunding RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
Jackson Mississippi Water & Sewer System (AGM), 5.00%, 9/01/30
|
|
|
|
|
1,495
|
|
|
|
1,560,376
|
|
|
Jackson Public School District Project, 5.00%, 4/01/28
|
|
|
|
|
500
|
|
|
|
511,125
|
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
25
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
Municipal Income Investment Trust (BBF)
(Percentages shown
are based on Net Assets)
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Mississippi (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
University of Southern Mississippi, Refunding RB, S.M. Educational Building Corp., Residence Hall Construction Project:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 3/01/33
|
|
|
|
$
|
205
|
|
|
$
|
212,739
|
|
|
5.00%, 3/01/38
|
|
|
|
|
280
|
|
|
|
286,194
|
|
|
|
|
|
|
|
|
|
|
|
3,257,630
|
|
|
Missouri — 0.3%
|
|
|
|
|
|
|
|
|
|
|
|
The Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Combined Lien,
Series A, 5.00%, 10/01/28 (a)
|
|
|
|
|
225
|
|
|
|
237,764
|
|
|
Nevada — 4.0%
|
|
|
|
|
|
|
|
|
|
|
|
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34
|
|
|
|
|
1,600
|
|
|
|
1,737,904
|
|
|
County of Clark Nevada, RB, Series B, 5.75%, 7/01/42
|
|
|
|
|
1,825
|
|
|
|
1,982,844
|
|
|
|
|
|
|
|
|
|
|
|
3,720,748
|
|
|
New Jersey — 5.1%
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29
|
|
|
|
|
1,140
|
|
|
|
1,188,644
|
|
|
New
Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.88%, 12/15/38
|
|
|
|
|
1,295
|
|
|
|
1,445,867
|
|
|
5.50%, 6/15/41
|
|
|
|
|
1,000
|
|
|
|
1,051,400
|
|
|
Rutgers State University of New Jersey, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Series J, 5.00%, 5/01/32
|
|
|
|
|
625
|
|
|
|
662,056
|
|
|
Series L, 5.00%, 5/01/32
|
|
|
|
|
385
|
|
|
|
407,827
|
|
|
|
|
|
|
|
|
|
|
|
4,755,794
|
|
|
New York — 5.5%
|
|
|
|
|
|
|
|
|
|
|
|
Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47
|
|
|
|
|
1,000
|
|
|
|
1,061,710
|
|
|
New
York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49
|
|
|
|
|
605
|
|
|
|
657,696
|
|
|
New
York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38
|
|
|
|
|
3,250
|
|
|
|
3,397,615
|
|
|
|
|
|
|
|
|
|
|
|
5,117,021
|
|
|
Ohio — 0.9%
|
|
|
|
|
|
|
|
|
|
|
|
Ohio Higher Educational Facility Commission, Refunding RB, Kenyon College Project, 5.00%, 7/01/37
|
|
|
|
|
140
|
|
|
|
140,429
|
|
|
Ohio State Turnpike Commission, RB, Junior Lien Infrastructure Projects, Series A-1 (a):
|
|
|
|
|
|
|
|
|
|
|
|
5.25%, 2/15/30
|
|
|
|
|
355
|
|
|
|
374,894
|
|
|
5.25%, 2/15/31
|
|
|
|
|
355
|
|
|
|
373,208
|
|
|
|
|
|
|
|
|
|
|
|
888,531
|
|
|
Pennsylvania — 3.8%
|
|
|
|
|
|
|
|
|
|
|
|
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39
|
|
|
|
|
500
|
|
|
|
542,165
|
|
|
Pennsylvania Turnpike Commission, RB, Sub-Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.63%, 12/01/31
|
|
|
|
|
1,250
|
|
|
|
1,336,925
|
|
|
6.00%, 12/01/41
|
|
|
|
|
1,500
|
|
|
|
1,636,890
|
|
|
|
|
|
|
|
|
|
|
|
3,515,980
|
|
|
Puerto Rico — 3.6%
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37
|
|
|
|
|
2,605
|
|
|
|
2,548,628
|
|
|
Puerto Rico Sales Tax Financing Corp., Refunding RB, Senior Series C, 5.25%, 8/01/40
|
|
|
|
|
880
|
|
|
|
843,277
|
|
|
|
|
|
|
|
|
|
|
|
3,391,905
|
|
|
South Carolina — 0.9%
|
|
|
|
|
|
|
|
|
|
|
|
Charleston Educational Excellence Finance Corp., Refunding RB, Charleston County School, 5.00%,
12/01/29
|
|
|
|
|
775
|
|
|
|
816,525
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Texas — 13.4%
|
|
|
|
|
|
|
|
|
|
|
|
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien:
|
|
|
|
|
|
|
|
|
|
|
|
6.00%, 1/01/41
|
|
|
|
$
|
1,670
|
|
|
$
|
1,770,234
|
|
|
Series A, 5.00%, 1/01/33
|
|
|
|
|
215
|
|
|
|
210,029
|
|
|
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37 (a)
|
|
|
|
|
745
|
|
|
|
784,522
|
|
|
City of Brownsville Texas Utilities System, Refunding RB, Series A, 5.00%, 9/01/29
|
|
|
|
|
615
|
|
|
|
643,462
|
|
|
Conroe ISD Texas, GO, School Building, Series A, 5.75%, 2/15/35
|
|
|
|
|
890
|
|
|
|
992,074
|
|
|
Lower Colorado River Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
5.50%, 5/15/19 (b)
|
|
|
|
|
90
|
|
|
|
108,466
|
|
|
5.50%, 5/15/33
|
|
|
|
|
1,910
|
|
|
|
2,037,302
|
|
|
North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41
|
|
|
|
|
1,000
|
|
|
|
1,070,590
|
|
|
North Texas Tollway Authority, Refunding RB, First Tier, Series K-1 (AGC), 5.75%, 1/01/38
|
|
|
|
|
1,000
|
|
|
|
1,058,470
|
|
|
Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45
|
|
|
|
|
1,905
|
|
|
|
2,112,626
|
|
|
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
|
|
|
|
1,686,217
|
|
|
|
|
|
|
|
|
|
|
|
12,473,992
|
|
|
Virginia — 5.1%
|
|
|
|
|
|
|
|
|
|
|
|
Lexington IDA, RB, Washington & Lee University, 5.00%, 1/01/43
|
|
|
|
|
280
|
|
|
|
290,105
|
|
|
Norfolk EDA, Refunding RB, Sentara Healthcare, Series B, 5.00%, 11/01/36
|
|
|
|
|
3,205
|
|
|
|
3,240,255
|
|
|
Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/18 (b)
|
|
|
|
|
1,000
|
|
|
|
1,259,170
|
|
|
|
|
|
|
|
|
|
|
|
4,789,530
|
|
|
Washington — 1.0%
|
|
|
|
|
|
|
|
|
|
|
|
Spokane Public Facilities District, RB, Hotel/Motel & Sales/Use Tax, Series A, 5.00%,
12/01/38
|
|
|
|
|
915
|
|
|
|
908,440
|
|
|
Wisconsin — 1.8%
|
|
|
|
|
|
|
|
|
|
|
|
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health,
Inc., Series C, 5.25%, 4/01/39
|
|
|
|
|
1,675
|
|
|
|
1,711,063
|
|
|
Total Municipal Bonds — 103.3%
|
|
|
|
|
|
|
|
|
96,220,544
|
|
|
|
|
Municipal Bonds Transferred to
Tender Option Bond Trusts (c)
|
|
California — 21.0%
|
|
|
|
|
|
|
|
|
|
|
|
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (d)
|
|
|
|
|
1,995
|
|
|
|
2,130,939
|
|
|
Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40
|
|
|
|
|
2,400
|
|
|
|
2,459,784
|
|
|
Los
Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (d)
|
|
|
|
|
2,630
|
|
|
|
2,788,550
|
|
|
Los
Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33
|
|
|
|
|
3,898
|
|
|
|
4,513,086
|
|
|
Los
Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34
|
|
|
|
|
400
|
|
|
|
407,184
|
|
|
San
Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.50%, 8/01/39
|
|
|
|
|
4,214
|
|
|
|
4,524,720
|
|
|
University of California, RB, Series O, 5.75%, 5/15/34
|
|
|
|
|
1,500
|
|
|
|
1,697,380
|
|
|
University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37
|
|
|
|
|
1,000
|
|
|
|
1,033,740
|
|
|
|
|
|
|
|
|
|
|
|
19,555,383
|
|
See Notes to Financial Statements.
|
26
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
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
|
|
District of Columbia — 3.7%
|
|
|
|
|
|
|
|
|
|
|
|
District of Columbia, RB, Series A, 5.50%, 12/01/30 (d)
|
|
|
|
$
|
1,395
|
|
|
$
|
1,563,400
|
|
|
District of Columbia Water & Sewer Authority, Refunding RB, Series A, 5.50%, 10/01/39
|
|
|
|
|
1,799
|
|
|
|
1,931,795
|
|
|
|
|
|
|
|
|
|
|
|
3,495,195
|
|
|
Florida — 0.5%
|
|
|
|
|
|
|
|
|
|
|
|
County of Miami-Dade Florida, Refunding RB, Transit System, Sales Surtax, 5.00%, 7/01/42
|
|
|
|
|
490
|
|
|
|
495,606
|
|
|
Illinois — 4.1%
|
|
|
|
|
|
|
|
|
|
|
|
Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38
|
|
|
|
|
2,800
|
|
|
|
3,106,908
|
|
|
Illinois State Toll Highway Authority, RB, Series A, 5.00%, 1/01/38
|
|
|
|
|
739
|
|
|
|
748,285
|
|
|
|
|
|
|
|
|
|
|
|
3,855,193
|
|
|
Massachusetts — 1.7%
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series B, 5.00%,
10/15/41
|
|
|
|
|
1,490
|
|
|
|
1,542,612
|
|
|
Nevada — 5.5%
|
|
|
|
|
|
|
|
|
|
|
|
Clark County Water Reclamation District, GO:
|
|
|
|
|
|
|
|
|
|
|
|
Limited Tax, 6.00%, 7/01/38
|
|
|
|
|
2,500
|
|
|
|
2,830,025
|
|
|
Series B, 5.50%, 7/01/29
|
|
|
|
|
1,994
|
|
|
|
2,263,216
|
|
|
|
|
|
|
|
|
|
|
|
5,093,241
|
|
|
New Hampshire — 1.3%
|
|
|
|
|
|
|
|
|
|
|
|
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39
(d)
|
|
|
|
|
1,094
|
|
|
|
1,175,340
|
|
|
New Jersey — 4.1%
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey Transportation Trust Fund Authority, RB, Transportation System:
|
|
|
|
|
|
|
|
|
|
|
|
Series A (AGM), 5.00%, 12/15/32
|
|
|
|
|
2,000
|
|
|
|
2,078,980
|
|
|
Series B, 5.25%, 6/15/36 (d)
|
|
|
|
|
1,640
|
|
|
|
1,703,436
|
|
|
|
|
|
|
|
|
|
|
|
3,782,416
|
|
|
New York — 13.6%
|
|
|
|
|
|
|
|
|
|
|
|
New
York City Municipal Water Finance Authority, RB, Series A, 5.75%, 6/15/40
|
|
|
|
|
1,410
|
|
|
|
1,565,719
|
|
|
New
York City Municipal Water Finance Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Series FF, 5.00%, 6/15/45
|
|
|
|
|
1,500
|
|
|
|
1,538,350
|
|
|
Series FF-2, 5.50%, 6/15/40
|
|
|
|
|
1,994
|
|
|
|
2,172,082
|
|
|
New
York City Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39
|
|
|
|
|
1,500
|
|
|
|
1,560,888
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to
Tender
Option Bond Trusts (c)
|
|
|
|
Par
(000)
|
|
Value
|
|
New York (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
New
York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43
|
|
|
|
$
|
2,205
|
|
|
$
|
2,291,049
|
|
|
New
York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (d)
|
|
|
|
|
1,300
|
|
|
|
1,407,549
|
|
|
New
York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38
|
|
|
|
|
2,000
|
|
|
|
2,090,840
|
|
|
|
|
|
|
|
|
|
|
|
12,626,477
|
|
|
Ohio — 1.7%
|
|
|
|
|
|
|
|
|
|
|
|
County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38
|
|
|
|
|
1,560
|
|
|
|
1,591,278
|
|
|
Texas — 6.7%
|
|
|
|
|
|
|
|
|
|
|
|
City of San Antonio Texas, Refunding RB, Electric & Gas Systems, Series A, 5.25%, 2/01/31 (d)
|
|
|
|
|
2,025
|
|
|
|
2,238,326
|
|
|
Harris County Cultural Education Facilities Finance Corp., RB, Texas Children’s Hospital Project, 5.50%, 10/01/39
|
|
|
|
|
2,750
|
|
|
|
2,974,592
|
|
|
Waco Educational Finance Corp., Refunding RB, Baylor University, 5.00%, 3/01/43
|
|
|
|
|
1,005
|
|
|
|
1,016,849
|
|
|
|
|
|
|
|
|
|
|
|
6,229,767
|
|
|
Virginia — 1.0%
|
|
|
|
|
|
|
|
|
|
|
|
County of Fairfax Virginia IDA, Refunding RB, Inova Health System, Series A, 5.50%,
5/15/35
|
|
|
|
|
899
|
|
|
|
952,682
|
|
|
Washington — 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
University of Washington, Refunding RB, Series A, 5.00%, 7/01/41
|
|
|
|
|
1,380
|
|
|
|
1,428,852
|
|
|
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 66.4%
|
|
|
|
|
|
|
|
|
61,824,042
|
|
|
Total Long-Term Investments
(Cost — $151,921,189) — 169.7%
|
|
|
|
|
|
|
|
|
158,044,586
|
|
|
|
|
Short-Term Securities
|
|
|
|
|
Shares
|
|
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.03% (e)(f)
|
|
|
|
|
4,710,703
|
|
|
|
4,710,703
|
|
|
Total Short-Term Securities
(Cost — $4,710,703) — 5.0%
|
|
|
|
|
|
|
|
|
4,710,703
|
|
|
Total Investments (Cost — $156,631,892) — 174.7%
|
|
|
|
|
|
|
|
|
162,755,289
|
|
|
Liabilities in Excess of Other Assets — (1.4%)
|
|
|
|
|
|
|
|
|
(1,300,077
|
)
|
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (36.6%)
|
|
|
|
|
|
|
|
|
(34,110,330
|
)
|
|
VRDP Shares, at Liquidation Value — (36.7%)
|
|
|
|
|
|
|
|
|
(34,200,000
|
)
|
|
Net Assets Applicable to Common Shares — 100.0%
|
|
|
|
|
|
|
|
$
|
93,144,882
|
|
Notes to Schedule of Investments
|
(a)
|
|
|
|
When-issued security. Unsettled when-issued transactions were as follows:
|
Counterparty
|
|
|
|
Value
|
|
Unrealized
Appreciation/
(Depreciation)
|
|
Citigroup Global Markets, Inc.
|
|
|
|
$
|
748,102
|
|
|
$
|
951
|
|
|
Morgan Stanley & Co. LLC
|
|
|
|
$
|
1,491,882
|
|
|
$
|
(17,808
|
)
|
|
Royal Bank of Canada
|
|
|
|
$
|
237,764
|
|
|
$
|
(2,720
|
)
|
|
Wells Fargo Securities, LLC
|
|
|
|
$
|
784,522
|
|
|
$
|
3,151
|
|
|
(b)
|
|
|
|
US
government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated,
typically at a premium to par.
|
|
(c)
|
|
|
|
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities 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 $7,865,394.
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
27
|
|
|
|
|
Schedule of Investments (concluded)
|
BlackRock
Municipal Income Investment Trust (BBF)
|
|
(e)
|
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2013, for purposes of Section 2(a)(3) of the 1940
Act, were as follows:
|
Affiliate
|
|
|
|
Shares Held at
July 31, 2012
|
|
Net
Activity
|
|
Shares Held at
July 31, 2013
|
|
Income
|
|
FFI Institutional Tax-Exempt Fund
|
|
|
|
1,631,769
|
|
3,078,934
|
|
4,710,703
|
|
$317
|
|
(f)
|
|
|
|
Represents the current yield as of report date.
|
|
|
|
|
|
For
Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more
widely recognized market indexes or rating group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this
report, which may combine such sector sub-classifications for reporting ease.
|
|
•
|
|
|
|
Fair
Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized
into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
|
|
|
•
|
|
|
|
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to
access
|
|
|
•
|
|
|
|
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active,
quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or
other market-corroborated inputs)
|
|
|
•
|
|
|
|
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available
(including the Trust’s own assumptions used in determining the fair value of investments)
|
|
|
|
|
|
The
hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for
instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases,
for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value
measurement in its entirety.
|
|
|
|
|
|
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. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not
necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation
of investments, please refer to Note 2 of the Notes to Financial Statements.
|
|
|
|
|
|
The
following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of July 31, 2013:
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments
1
|
|
|
|
|
—
|
|
|
$
|
158,044,586
|
|
|
|
—
|
|
|
$
|
158,044,586
|
|
|
Short-Term Securities
|
|
|
|
$
|
4,710,703
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,710,703
|
|
|
Total
|
|
|
|
$
|
4,710,703
|
|
|
$
|
158,044,586
|
|
|
|
—
|
|
|
$
|
162,755,289
|
|
|
|
1
|
See above Schedule of Investments for values in each state or political subdivision.
|
|
|
|
|
|
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July
31, 2013, such liabilities are categorized within the disclosure hierarchy as follows
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdraft
|
|
|
|
|
—
|
|
|
$
|
(3,855
|
)
|
|
|
—
|
|
|
$
|
(3,855
|
)
|
|
TOB trust certificates
|
|
|
|
|
—
|
|
|
|
(34,096,156
|
)
|
|
|
—
|
|
|
|
(34,096,156
|
)
|
|
VRDP Shares
|
|
|
|
|
—
|
|
|
|
(34,200,000
|
)
|
|
|
—
|
|
|
|
(34,200,000
|
)
|
|
Total
|
|
|
|
|
—
|
|
|
$
|
(68,300,011
|
)
|
|
|
—
|
|
|
$
|
(68,300,011
|
)
|
|
|
|
|
|
There were no transfers between levels during the year ended July 31, 2013.
|
See Notes to Financial Statements.
|
28
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments
July 31, 2013
|
BlackRock
Municipal Target Term Trust (BTT)
(Percentages shown are
based on Net Assets)
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Alabama — 0.4%
|
|
|
|
|
|
|
|
|
|
|
|
Phenix City IDB, Refunding RB, Meadwestvaco Coated Board Project, Series A, 3.63%, 5/15/30
|
|
|
|
$
|
5,850
|
|
|
$
|
4,718,376
|
|
|
Alaska — 0.6%
|
|
|
|
|
|
|
|
|
|
|
|
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 4.63%,
6/01/23
|
|
|
|
|
9,375
|
|
|
|
8,498,531
|
|
|
Arizona — 1.1%
|
|
|
|
|
|
|
|
|
|
|
|
Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital:
|
|
|
|
|
|
|
|
|
|
|
|
Series A, 5.00%, 2/01/34
|
|
|
|
|
6,340
|
|
|
|
6,126,976
|
|
|
Series B, 5.00%, 2/01/33
|
|
|
|
|
1,810
|
|
|
|
1,755,193
|
|
|
Phoenix IDA, RB, Facility, Eagle College Preparatory Project, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.50%, 7/01/22
|
|
|
|
|
780
|
|
|
|
758,199
|
|
|
5.00%, 7/01/33
|
|
|
|
|
1,000
|
|
|
|
902,910
|
|
|
Pinal County IDA Arizona, Refunding RB, Tucson Electric Power Co. Project, Series A, 4.00%, 9/01/29
|
|
|
|
|
6,000
|
|
|
|
5,317,680
|
|
|
|
|
|
|
|
|
|
|
|
14,860,958
|
|
|
California — 26.7%
|
|
|
|
|
|
|
|
|
|
|
|
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Odd Fellows Home California, Series A, 5.00%, 4/01/32
|
|
|
|
|
4,500
|
|
|
|
4,429,935
|
|
|
Alameda Corridor Transportation Authority, Refunding RB, CAB, Sub Lien, Series A (AMBAC), 6.08%, 10/01/30 (a)
|
|
|
|
|
10,530
|
|
|
|
3,766,160
|
|
|
Anaheim California Public Financing Authority, Refunding RB, Electric Distribution System, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 10/01/30
|
|
|
|
|
16,425
|
|
|
|
15,393,181
|
|
|
4.00%, 10/01/29
|
|
|
|
|
15,800
|
|
|
|
14,881,388
|
|
|
4.00%, 10/01/31
|
|
|
|
|
17,080
|
|
|
|
15,906,262
|
|
|
California Health Facilities Financing Authority, Refunding RB, Adventist Health System/West, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 3/01/27
|
|
|
|
|
4,270
|
|
|
|
4,011,878
|
|
|
4.00%, 3/01/28
|
|
|
|
|
8,490
|
|
|
|
7,774,887
|
|
|
4.00%, 3/01/33
|
|
|
|
|
61,485
|
|
|
|
52,149,732
|
|
|
California HFA, RB, S/F Mortgage, Series I, AMT, 4.70%, 8/01/26
|
|
|
|
|
10,000
|
|
|
|
9,455,800
|
|
|
California Municipal Finance Authority, RB, Biola University:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 10/01/27
|
|
|
|
|
750
|
|
|
|
665,010
|
|
|
5.00%, 10/01/29
|
|
|
|
|
660
|
|
|
|
649,176
|
|
|
5.00%, 10/01/30
|
|
|
|
|
500
|
|
|
|
497,120
|
|
|
4.00%, 10/01/33
|
|
|
|
|
2,500
|
|
|
|
2,022,675
|
|
|
California Pollution Control Financing Authority, RB, Poseidon Resources Desalination Project, AMT, 5.00%, 7/01/30 (b)
|
|
|
|
|
18,845
|
|
|
|
17,081,862
|
|
|
California State Public Works Board, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Judicial Council Projects, Series A, 5.00%, 3/01/31
|
|
|
|
|
5,000
|
|
|
|
5,075,900
|
|
|
Judicial Council Projects, Series A, 5.00%, 3/01/32
|
|
|
|
|
5,000
|
|
|
|
5,052,900
|
|
|
Judicial Council Projects, Series A, 5.00%, 3/01/33
|
|
|
|
|
5,220
|
|
|
|
5,259,307
|
|
|
Series D, 5.00%, 9/01/28
|
|
|
|
|
5,090
|
|
|
|
5,274,003
|
|
|
Series D, 5.00%, 9/01/29
|
|
|
|
|
5,350
|
|
|
|
5,499,211
|
|
|
Series D, 5.00%, 9/01/30
|
|
|
|
|
2,620
|
|
|
|
2,684,609
|
|
|
Series D, 5.00%, 9/01/31
|
|
|
|
|
2,905
|
|
|
|
2,957,958
|
|
|
Series D, 5.00%, 9/01/32
|
|
|
|
|
6,060
|
|
|
|
6,143,689
|
|
|
Series E, 5.00%, 9/01/28
|
|
|
|
|
2,240
|
|
|
|
2,320,976
|
|
|
Series E, 5.00%, 9/01/29
|
|
|
|
|
2,355
|
|
|
|
2,420,681
|
|
|
Series E, 5.00%, 9/01/30
|
|
|
|
|
2,475
|
|
|
|
2,536,034
|
|
|
Series E, 5.00%, 9/01/31
|
|
|
|
|
2,600
|
|
|
|
2,647,398
|
|
|
Series E, 5.00%, 9/01/32
|
|
|
|
|
2,280
|
|
|
|
2,311,487
|
|
|
California Statewide Communities Development Authority, RB, American Baptist Homes of the West, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 10/01/23
|
|
|
|
|
1,500
|
|
|
|
1,562,310
|
|
|
5.00%, 10/01/28
|
|
|
|
|
650
|
|
|
|
640,452
|
|
|
5.00%, 10/01/33
|
|
|
|
|
2,275
|
|
|
|
2,093,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
California (continued)
|
|
|
|
|
|
|
|
|
|
|
|
California Statewide Communities Development Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Episcopal Communities & Services, 5.00%, 5/15/27
|
|
|
|
$
|
500
|
|
|
$
|
501,690
|
|
|
Episcopal Communities & Services, 5.00%, 5/15/32
|
|
|
|
|
1,000
|
|
|
|
951,930
|
|
|
Eskaton Properties, Inc., 5.25%, 11/15/34
|
|
|
|
|
2,500
|
|
|
|
2,367,950
|
|
|
Chabot-Las Positas Community College District, GO, Refunding, 2016 Crossover, 5.00%, 8/01/29
|
|
|
|
|
18,500
|
|
|
|
19,178,025
|
|
|
Corona-Norco Unified School District, Refunding, Special Tax Bonds, Senior Lien, Series A, 5.00%, 9/01/32
|
|
|
|
|
1,250
|
|
|
|
1,208,175
|
|
|
El
Camino Community College District, GO, CAB, Election of 2002, Series C (a):
|
|
|
|
|
|
|
|
|
|
|
|
5.25%, 8/01/30
|
|
|
|
|
9,090
|
|
|
|
3,766,623
|
|
|
5.34%, 8/01/31
|
|
|
|
|
12,465
|
|
|
|
4,828,941
|
|
|
5.39%, 8/01/32
|
|
|
|
|
17,435
|
|
|
|
6,346,689
|
|
|
Escondido Union High School District, GO, CAB, Election of 2008, Series A (AGC) (a):
|
|
|
|
|
|
|
|
|
|
|
|
5.53%, 8/01/32
|
|
|
|
|
1,675
|
|
|
|
594,156
|
|
|
5.59%, 8/01/33
|
|
|
|
|
2,865
|
|
|
|
951,237
|
|
|
Golden State Tobacco Securitization Corp., Refunding RB, Series A, 5.00%, 6/01/30
|
|
|
|
|
1,500
|
|
|
|
1,519,680
|
|
|
Grossmont Union High School District, GO, CAB, Election of 2004, 5.53%, 8/01/32 (a)
|
|
|
|
|
29,015
|
|
|
|
10,292,201
|
|
|
Los
Angeles County Public Works Financing Authority, Refunding RB, Multiple Capital Projects II:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 8/01/30
|
|
|
|
|
2,500
|
|
|
|
2,560,050
|
|
|
5.00%, 8/01/31
|
|
|
|
|
3,000
|
|
|
|
3,061,020
|
|
|
5.00%, 8/01/32
|
|
|
|
|
3,000
|
|
|
|
3,041,250
|
|
|
5.00%, 8/01/33
|
|
|
|
|
2,500
|
|
|
|
2,525,275
|
|
|
Los
Angeles Regional Airports Improvement Corp., Refunding RB, LAXFUEL Corp., Los Angeles International, AMT:
|
|
|
|
|
|
|
|
|
|
|
|
4.50%, 1/01/27
|
|
|
|
|
5,000
|
|
|
|
4,823,900
|
|
|
5.00%, 1/01/32
|
|
|
|
|
4,110
|
|
|
|
3,998,907
|
|
|
M-S-R Energy Authority, RB, Series C, 6.13%, 11/01/29
|
|
|
|
|
2,500
|
|
|
|
2,769,850
|
|
|
Poway Unified School District, GO, Election of 2008, Series A, CAB (a):
|
|
|
|
|
|
|
|
|
|
|
|
5.02%, 8/01/27
|
|
|
|
|
10,000
|
|
|
|
4,991,100
|
|
|
5.40%, 8/01/30
|
|
|
|
|
10,000
|
|
|
|
4,042,100
|
|
|
5.53%, 8/01/32
|
|
|
|
|
12,500
|
|
|
|
4,434,000
|
|
|
Poway Unified School District Public Financing Authority, Special Tax Bonds, Refunding:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 9/15/26
|
|
|
|
|
935
|
|
|
|
949,053
|
|
|
5.00%, 9/15/29
|
|
|
|
|
1,205
|
|
|
|
1,187,889
|
|
|
5.00%, 9/15/32
|
|
|
|
|
995
|
|
|
|
961,658
|
|
|
Riverside Public Financing Authority, Tax Allocation Bonds, University Corridor/Sycamore Canyon Merged Redevelopment Project, Series C (NPFGC),
4.50%, 8/01/30
|
|
|
|
|
10,000
|
|
|
|
8,955,700
|
|
|
San
Bernardino Community College District, GO, Refunding, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 8/01/31
|
|
|
|
|
15,660
|
|
|
|
14,161,338
|
|
|
4.00%, 8/01/32
|
|
|
|
|
17,010
|
|
|
|
15,169,858
|
|
|
4.00%, 8/01/33
|
|
|
|
|
6,665
|
|
|
|
5,882,396
|
|
|
San
Diego Community College District, GO, Election of 2006, 5.80%, 8/01/30 (a)
|
|
|
|
|
5,000
|
|
|
|
1,891,700
|
|
|
San
Francisco City & County Redevelopment Agency, Special Tax Bonds, Refunding, No. 6 Mission Bay South Public Improvements, Series
A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 8/01/28
|
|
|
|
|
1,000
|
|
|
|
1,005,760
|
|
|
5.00%, 8/01/29
|
|
|
|
|
1,300
|
|
|
|
1,303,744
|
|
|
5.00%, 8/01/33
|
|
|
|
|
1,335
|
|
|
|
1,305,296
|
|
|
Ventura County Public Financing Authority, Refunding RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 11/01/30
|
|
|
|
|
1,200
|
|
|
|
1,240,320
|
|
|
5.00%, 11/01/31
|
|
|
|
|
1,500
|
|
|
|
1,543,545
|
|
|
5.00%, 11/01/32
|
|
|
|
|
1,500
|
|
|
|
1,537,860
|
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
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)
|
|
|
|
|
|
|
|
|
|
|
|
Ventura County Public Financing Authority, Refunding RB, Series A (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 11/01/33
|
|
|
|
$
|
1,200
|
|
|
$
|
1,222,164
|
|
|
Westlands California Water District, Refunding RB, Series A (AGM):
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 9/01/30
|
|
|
|
|
1,000
|
|
|
|
1,033,890
|
|
|
5.00%, 9/01/31
|
|
|
|
|
1,000
|
|
|
|
1,028,640
|
|
|
5.00%, 9/01/32
|
|
|
|
|
1,000
|
|
|
|
1,023,420
|
|
|
|
|
|
|
|
|
|
|
|
353,324,007
|
|
|
Colorado — 3.8%
|
|
|
|
|
|
|
|
|
|
|
|
Colorado Health Facilities Authority, Refunding RB, Covenant Retirement Communities, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.50%, 12/01/33
|
|
|
|
|
4,595
|
|
|
|
3,906,301
|
|
|
5.00%, 12/01/33
|
|
|
|
|
3,000
|
|
|
|
2,752,230
|
|
|
Commerce City Colorado-Northern Infrastructure General Improvement District, GO, Refunding, Improvement (AGM):
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 12/01/26
|
|
|
|
|
2,770
|
|
|
|
2,992,237
|
|
|
5.00%, 12/01/28
|
|
|
|
|
1,560
|
|
|
|
1,652,976
|
|
|
5.00%, 12/01/29
|
|
|
|
|
1,070
|
|
|
|
1,127,020
|
|
|
5.00%, 12/01/31
|
|
|
|
|
500
|
|
|
|
518,465
|
|
|
5.00%, 12/01/32
|
|
|
|
|
800
|
|
|
|
825,240
|
|
|
Denver West Metropolitan District, GO, Refunding, Series A (AGM), 4.00%, 12/01/32
|
|
|
|
|
6,250
|
|
|
|
5,742,750
|
|
|
Plaza Metropolitan District No. 1, Tax Allocation Bonds, Refunding:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 12/01/23
|
|
|
|
|
1,000
|
|
|
|
926,880
|
|
|
4.10%, 12/01/24
|
|
|
|
|
5,080
|
|
|
|
4,662,983
|
|
|
4.20%, 12/01/25
|
|
|
|
|
5,280
|
|
|
|
4,835,002
|
|
|
4.50%, 12/01/30
|
|
|
|
|
4,305
|
|
|
|
3,881,130
|
|
|
State of Colorado, COP, Refunding, Fitzsimons Academic Projects, 4.00%, 11/01/30
|
|
|
|
|
12,675
|
|
|
|
11,905,121
|
|
|
Tallyns Reach Metropolitan District No. 3, GO, Refunding, 5.00%, 12/01/33
|
|
|
|
|
505
|
|
|
|
447,172
|
|
|
University of Colorado Hospital Authority, RB, Series A, 5.00%, 11/15/27
|
|
|
|
|
4,000
|
|
|
|
4,254,080
|
|
|
|
|
|
|
|
|
|
|
|
50,429,587
|
|
|
Connecticut — 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
City of Hartford, GO, Refunding, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 4/01/29
|
|
|
|
|
8,390
|
|
|
|
7,885,593
|
|
|
4.00%, 4/01/32
|
|
|
|
|
1,500
|
|
|
|
1,349,625
|
|
|
Connecticut HFA, Refunding RB, M/F Housing Mortgage Finance Program, Sub-Series F-1, 3.00%, 11/15/32
|
|
|
|
|
12,020
|
|
|
|
10,069,154
|
|
|
|
|
|
|
|
|
|
|
|
19,304,372
|
|
|
District of Columbia — 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
District of Columbia, Refunding RB, Kipp Charter School, 6.00%, 7/01/33 (c)
|
|
|
|
|
1,700
|
|
|
|
1,756,338
|
|
|
Florida — 10.6%
|
|
|
|
|
|
|
|
|
|
|
|
City of North Miami Beach, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 8/01/27
|
|
|
|
|
3,325
|
|
|
|
3,240,844
|
|
|
5.00%, 8/01/29
|
|
|
|
|
3,650
|
|
|
|
3,800,307
|
|
|
5.00%, 8/01/30
|
|
|
|
|
4,020
|
|
|
|
4,161,383
|
|
|
5.00%, 8/01/31
|
|
|
|
|
4,235
|
|
|
|
4,365,015
|
|
|
5.00%, 8/01/32
|
|
|
|
|
4,445
|
|
|
|
4,555,058
|
|
|
City of Tampa Florida, Refunding RB, H Lee Moffitt Cancer Center Project, Series A, 4.00%, 9/01/33
|
|
|
|
|
10,000
|
|
|
|
8,869,400
|
|
|
County of Broward Florida, RB, Fort Lauderale Fuel System Revenue, AMT:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 4/01/30
|
|
|
|
|
600
|
|
|
|
596,604
|
|
|
5.00%, 4/01/33
|
|
|
|
|
740
|
|
|
|
723,639
|
|
|
County of St. Johns Florida Water & Sewer Revenue, Refunding RB, CAB, Series B (a):
|
|
|
|
|
|
|
|
|
|
|
|
4.15%, 6/01/25
|
|
|
|
|
2,155
|
|
|
|
1,325,002
|
|
|
4.39%, 6/01/26
|
|
|
|
|
2,655
|
|
|
|
1,520,120
|
|
|
4.57%, 6/01/27
|
|
|
|
|
3,095
|
|
|
|
1,656,939
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Florida (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
County of St. Johns Florida Water & Sewer Revenue, Refunding RB, CAB, Series B (a) (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
4.72%, 6/01/28
|
|
|
|
$
|
3,795
|
|
|
$
|
1,900,764
|
|
|
4.83%, 6/01/29
|
|
|
|
|
3,795
|
|
|
|
1,782,056
|
|
|
5.00%, 6/01/30
|
|
|
|
|
2,000
|
|
|
|
870,780
|
|
|
5.00%, 6/01/31
|
|
|
|
|
1,295
|
|
|
|
536,959
|
|
|
5.07%, 6/01/32
|
|
|
|
|
2,495
|
|
|
|
971,753
|
|
|
Double Branch Community Development District, Refunding, Special Assessment Bonds, Senior Lien, Series A-1, 4.13%, 5/01/31
|
|
|
|
|
1,200
|
|
|
|
1,047,792
|
|
|
Greater Orlando Aviation Authority, Refunding RB, Jet Blue Airways Corporation Project, AMT, 5.00%, 11/15/26
|
|
|
|
|
2,000
|
|
|
|
1,849,500
|
|
|
Hillsborough County IDA, RB, National Gypsum Co., Series A, AMT, 7.13%, 4/01/30
|
|
|
|
|
7,300
|
|
|
|
7,299,635
|
|
|
Jacksonville Florida Port Authority, Refunding RB, AMT:
|
|
|
|
|
|
|
|
|
|
|
|
4.50%, 11/01/29
|
|
|
|
|
4,685
|
|
|
|
4,337,560
|
|
|
4.50%, 11/01/30
|
|
|
|
|
2,895
|
|
|
|
2,641,166
|
|
|
4.50%, 11/01/31
|
|
|
|
|
3,200
|
|
|
|
2,906,176
|
|
|
4.50%, 11/01/32
|
|
|
|
|
2,300
|
|
|
|
2,069,218
|
|
|
4.50%, 11/01/33
|
|
|
|
|
2,080
|
|
|
|
1,846,333
|
|
|
Martin County IDA, Refunding RB, Indiantown Cogeneration, L.P. Project, AMT, 4.20%, 12/15/25
|
|
|
|
|
5,250
|
|
|
|
4,582,883
|
|
|
Miami-Dade County, Refunding RB, Sub-Series B, 5.00%, 10/01/32
|
|
|
|
|
10,000
|
|
|
|
9,926,200
|
|
|
Miami-Dade County Educational Facilities Authority, RB, University Of Miami, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 4/01/31
|
|
|
|
|
2,930
|
|
|
|
2,598,207
|
|
|
4.00%, 4/01/32
|
|
|
|
|
1,000
|
|
|
|
872,880
|
|
|
Miami-Dade County Expressway Authority, Refunding RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/30
|
|
|
|
|
5,530
|
|
|
|
5,694,186
|
|
|
5.00%, 7/01/31
|
|
|
|
|
5,000
|
|
|
|
5,126,350
|
|
|
Miami-Dade County School Board, COP, Refunding, Series A, 5.00%, 5/01/32
|
|
|
|
|
10,000
|
|
|
|
10,208,200
|
|
|
Tampa-Hillsborough County Expressway Authority, Refunding RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 7/01/29
|
|
|
|
|
6,000
|
|
|
|
5,596,680
|
|
|
4.00%, 7/01/30
|
|
|
|
|
6,395
|
|
|
|
5,883,400
|
|
|
Village Community Development District No. 5, Refunding, Special Assessment Bonds, Phase I:
|
|
|
|
|
|
|
|
|
|
|
|
3.50%, 5/01/28
|
|
|
|
|
6,325
|
|
|
|
5,585,544
|
|
|
4.00%, 5/01/33
|
|
|
|
|
1,250
|
|
|
|
1,101,350
|
|
|
4.00%, 5/01/34
|
|
|
|
|
2,640
|
|
|
|
2,316,864
|
|
|
Village Community Development District No. 6, Refunding, Special Assessment Bonds, Sumter County, 4.00%, 5/01/29
|
|
|
|
|
6,560
|
|
|
|
6,004,630
|
|
|
Village Community Development District No. 10, Special Assessment Bonds, Sumter County:
|
|
|
|
|
|
|
|
|
|
|
|
4.50%, 5/01/23
|
|
|
|
|
3,875
|
|
|
|
3,666,486
|
|
|
5.00%, 5/01/32
|
|
|
|
|
6,000
|
|
|
|
5,598,060
|
|
|
|
|
|
|
|
|
|
|
|
139,635,923
|
|
|
Georgia — 0.8%
|
|
|
|
|
|
|
|
|
|
|
|
Georgia Housing & Finance Authority, RB, S/F Housing, Series A, 3.45%, 12/01/32
|
|
|
|
|
12,050
|
|
|
|
10,113,806
|
|
|
Guam — 0.8%
|
|
|
|
|
|
|
|
|
|
|
|
Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/30
|
|
|
|
|
10,000
|
|
|
|
10,124,100
|
|
|
Idaho — 0.7%
|
|
|
|
|
|
|
|
|
|
|
|
Idaho Housing and Finance Association, RB, Series A, 4.00%, 7/15/30
|
|
|
|
|
10,000
|
|
|
|
9,377,300
|
|
|
Illinois — 11.0%
|
|
|
|
|
|
|
|
|
|
|
|
City of Chicago Illinois, GO:
|
|
|
|
|
|
|
|
|
|
|
|
CAB (NPFGC), 5.11%, 1/01/27 (a)
|
|
|
|
|
5,000
|
|
|
|
2,540,750
|
|
|
Project, Series A, 5.00%, 1/01/33
|
|
|
|
|
10,000
|
|
|
|
9,780,800
|
|
See Notes to Financial Statements.
|
30
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
Municipal Target Term Trust (BTT)
(Percentages shown are
based on Net Assets)
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Illinois (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
City of Chicago Illinois, Refunding RB, O’Hare International Airport Passenger Facility Charge, Series B, AMT:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 1/01/27
|
|
|
|
$
|
5,000
|
|
|
$
|
4,545,300
|
|
|
4.00%, 1/01/29
|
|
|
|
|
28,425
|
|
|
|
24,782,336
|
|
|
City of Saint Charles, GO, Refunding, Corporate Purpose:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 12/01/30
|
|
|
|
|
1,620
|
|
|
|
1,512,027
|
|
|
4.00%, 12/01/31
|
|
|
|
|
1,715
|
|
|
|
1,580,390
|
|
|
4.00%, 12/01/32
|
|
|
|
|
1,800
|
|
|
|
1,634,616
|
|
|
Cook County, GO, Refunding, Series C, 4.00%, 11/15/29
|
|
|
|
|
19,750
|
|
|
|
18,145,312
|
|
|
Illinois Finance Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Lutheran Home & Services Obligated Group, 5.00%, 5/15/22
|
|
|
|
|
4,835
|
|
|
|
4,727,131
|
|
|
Lutheran Home & Services Obligated Group, 5.50%, 5/15/27
|
|
|
|
|
4,350
|
|
|
|
4,259,172
|
|
|
Lutheran Home & Services Obligated Group, 5.50%, 5/15/30
|
|
|
|
|
3,400
|
|
|
|
3,238,602
|
|
|
Northwestern Memorial Healthcare, 4.00%, 8/15/33
|
|
|
|
|
7,665
|
|
|
|
6,853,890
|
|
|
The Peoples Gas Light & Coke Company Project, 4.00%, 2/01/33
|
|
|
|
|
11,000
|
|
|
|
9,614,880
|
|
|
Will County Community High School District No. 210 Lincoln-Way, GO, Refunding:
|
|
|
|
|
|
|
|
|
|
|
|
CAB, Series B, 5.08%, 1/01/29 (a)
|
|
|
|
|
6,920
|
|
|
|
3,193,234
|
|
|
CAB, Series B, 5.31%, 1/01/30 (a)
|
|
|
|
|
5,680
|
|
|
|
2,400,425
|
|
|
CAB, Series B, 5.29%, 1/01/31 (a)
|
|
|
|
|
13,330
|
|
|
|
5,365,458
|
|
|
CAB, Series B, 5.32%, 1/01/32 (a)
|
|
|
|
|
16,500
|
|
|
|
6,269,340
|
|
|
Series A, 5.00%, 1/01/31
|
|
|
|
|
16,300
|
|
|
|
16,893,972
|
|
|
Winnebago & Boone Counties School District No. 205 Rockford, GO:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 2/01/29
|
|
|
|
|
9,305
|
|
|
|
8,671,423
|
|
|
4.00%, 2/01/30
|
|
|
|
|
9,835
|
|
|
|
9,082,721
|
|
|
|
|
|
|
|
|
|
|
|
145,091,779
|
|
|
Indiana — 2.9%
|
|
|
|
|
|
|
|
|
|
|
|
Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A, 4.00%, 8/01/33
|
|
|
|
|
8,500
|
|
|
|
7,911,545
|
|
|
Indiana Finance Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Community Health Network Project, Series A, 4.00%, 5/01/35
|
|
|
|
|
23,565
|
|
|
|
19,240,587
|
|
|
Earlham College Project, 5.00%, 10/01/32
|
|
|
|
|
11,255
|
|
|
|
11,406,492
|
|
|
|
|
|
|
|
|
|
|
|
38,558,624
|
|
|
Iowa — 2.4%
|
|
|
|
|
|
|
|
|
|
|
|
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:
|
|
|
|
|
|
|
|
|
|
|
|
5.50%, 12/01/22
|
|
|
|
|
18,500
|
|
|
|
18,272,820
|
|
|
5.25%, 12/01/25
|
|
|
|
|
14,345
|
|
|
|
13,570,944
|
|
|
|
|
|
|
|
|
|
|
|
31,843,764
|
|
|
Kansas — 0.8%
|
|
|
|
|
|
|
|
|
|
|
|
Kansas Development Finance Authority, Refunding RB, Adventist Health, Series A, 5.00%,
11/15/32
|
|
|
|
|
10,000
|
|
|
|
10,127,000
|
|
|
Louisiana — 3.5%
|
|
|
|
|
|
|
|
|
|
|
|
Louisiana Stadium & Exposition District, Refunding RB, Senior, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/27
|
|
|
|
|
3,770
|
|
|
|
3,959,367
|
|
|
5.00%, 7/01/28
|
|
|
|
|
4,420
|
|
|
|
4,598,656
|
|
|
5.00%, 7/01/29
|
|
|
|
|
3,000
|
|
|
|
3,096,990
|
|
|
5.00%, 7/01/30
|
|
|
|
|
5,000
|
|
|
|
5,129,600
|
|
|
5.00%, 7/01/31
|
|
|
|
|
5,105
|
|
|
|
5,200,770
|
|
|
5.00%, 7/01/32
|
|
|
|
|
3,000
|
|
|
|
3,037,320
|
|
|
Port New Orleans Board of Commissioners, Refunding RB, Series B, AMT:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 4/01/31
|
|
|
|
|
300
|
|
|
|
295,827
|
|
|
5.00%, 4/01/32
|
|
|
|
|
1,000
|
|
|
|
978,560
|
|
|
5.00%, 4/01/33
|
|
|
|
|
1,575
|
|
|
|
1,530,711
|
|
|
Terrebonne Levee & Conservation District, RB, Sales Tax:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/29
|
|
|
|
|
1,925
|
|
|
|
1,968,755
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Louisiana (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
Terrebonne Levee & Conservation District, RB, Sales Tax (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/33
|
|
|
|
$
|
1,000
|
|
|
$
|
1,008,520
|
|
|
4.25%, 7/01/32
|
|
|
|
|
1,250
|
|
|
|
1,176,563
|
|
|
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.25%, 5/15/31
|
|
|
|
|
3,425
|
|
|
|
3,433,391
|
|
|
5.25%, 5/15/32
|
|
|
|
|
4,375
|
|
|
|
4,377,669
|
|
|
5.25%, 5/15/33
|
|
|
|
|
4,750
|
|
|
|
4,726,488
|
|
|
5.25%, 5/15/35
|
|
|
|
|
1,500
|
|
|
|
1,469,370
|
|
|
|
|
|
|
|
|
|
|
|
45,988,557
|
|
|
Maine — 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
Maine Health & Higher Educational Facilities Authority, RB, Eastern Maine Medical Center Obligation:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/25
|
|
|
|
|
1,250
|
|
|
|
1,320,000
|
|
|
5.00%, 7/01/26
|
|
|
|
|
1,000
|
|
|
|
1,042,050
|
|
|
5.00%, 7/01/27
|
|
|
|
|
1,000
|
|
|
|
1,031,530
|
|
|
3.75%, 7/01/28
|
|
|
|
|
1,000
|
|
|
|
872,520
|
|
|
5.00%, 7/01/33
|
|
|
|
|
5,000
|
|
|
|
4,962,400
|
|
|
Maine State Housing Authority, Refunding RB, S/F Housing, Series B, 3.45%, 11/15/32
|
|
|
|
|
12,000
|
|
|
|
10,063,320
|
|
|
|
|
|
|
|
|
|
|
|
19,291,820
|
|
|
Maryland — 0.0%
|
|
|
|
|
|
|
|
|
|
|
|
Maryland Economic Development Corp., Refunding RB, Salisbury University Project, 5.00%,
6/01/34
|
|
|
|
|
500
|
|
|
|
476,935
|
|
|
Massachusetts — 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
Massachusetts Educational Financing Authority, Refunding RB, Series K, AMT, 5.25%, 7/01/29
|
|
|
|
|
10,000
|
|
|
|
9,664,600
|
|
|
Massachusetts HFA, Refunding RB, AMT, S/F Housing:
|
|
|
|
|
|
|
|
|
|
|
|
Series 160, 4.00%, 12/01/32
|
|
|
|
|
495
|
|
|
|
451,281
|
|
|
Series 163, 4.00%, 12/01/33
|
|
|
|
|
11,635
|
|
|
|
10,392,615
|
|
|
|
|
|
|
|
|
|
|
|
20,508,496
|
|
|
Michigan — 1.0%
|
|
|
|
|
|
|
|
|
|
|
|
Michigan Finance Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Holland Community Hospital, Series A, 5.00%, 1/01/33
|
|
|
|
|
750
|
|
|
|
758,955
|
|
|
Oakwood Obligation Group, 5.00%, 8/15/30
|
|
|
|
|
4,105
|
|
|
|
4,114,564
|
|
|
Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32
|
|
|
|
|
9,195
|
|
|
|
7,991,007
|
|
|
|
|
|
|
|
|
|
|
|
12,864,526
|
|
|
Missouri — 0.6%
|
|
|
|
|
|
|
|
|
|
|
|
Bi-State Development Agency of the Missouri-Illinois Metropolitan District, Refunding RB, Series A, 5.00%, 10/01/33 (c)
|
|
|
|
|
5,500
|
|
|
|
5,746,400
|
|
|
Missouri State Health & Educational Facilities Authority, Refunding RB, CoxHealth, Series A, 4.00%, 11/15/33
|
|
|
|
|
2,010
|
|
|
|
1,707,475
|
|
|
|
|
|
|
|
|
|
|
|
7,453,875
|
|
|
Nebraska — 1.2%
|
|
|
|
|
|
|
|
|
|
|
|
Central Plains Energy Project, RB, Project No. 3, 5.00%, 9/01/27
|
|
|
|
|
7,010
|
|
|
|
7,076,034
|
|
|
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/32
|
|
|
|
|
9,500
|
|
|
|
9,327,670
|
|
|
|
|
|
|
|
|
|
|
|
16,403,704
|
|
|
New Hampshire — 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
New
Hampshire Health & Education Facilities Authority, Refunding RB, Concord Hospital, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 10/01/26
|
|
|
|
|
1,075
|
|
|
|
1,122,332
|
|
|
5.00%, 10/01/27
|
|
|
|
|
1,180
|
|
|
|
1,218,032
|
|
|
4.00%, 10/01/33
|
|
|
|
|
3,500
|
|
|
|
3,002,475
|
|
|
New
Hampshire State Turnpike System, RB, Series C:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 8/01/31
|
|
|
|
|
3,665
|
|
|
|
3,484,022
|
|
|
4.00%, 8/01/32
|
|
|
|
|
2,290
|
|
|
|
2,142,020
|
|
|
4.00%, 8/01/33
|
|
|
|
|
4,350
|
|
|
|
4,016,442
|
|
|
4.00%, 8/01/35
|
|
|
|
|
4,745
|
|
|
|
4,256,550
|
|
|
|
|
|
|
|
|
|
|
|
19,241,873
|
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
31
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
Municipal Target Term Trust (BTT)
(Percentages shown are
based on Net Assets)
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
New Jersey — 12.7%
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA, RB, Continental Airlines, Inc. Project, AMT:
|
|
|
|
|
|
|
|
|
|
|
|
5.75%, 9/15/27
|
|
|
|
$
|
6,200
|
|
|
$
|
6,028,322
|
|
|
5.25%, 9/15/29
|
|
|
|
|
12,230
|
|
|
|
11,469,905
|
|
|
7.20%, 11/15/30 (d)
|
|
|
|
|
10,100
|
|
|
|
10,107,373
|
|
|
New
Jersey EDA, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
4.25%, 6/15/27
|
|
|
|
|
16,500
|
|
|
|
15,133,470
|
|
|
Cigarette Tax, 5.00%, 6/15/26
|
|
|
|
|
10,610
|
|
|
|
10,744,641
|
|
|
Special Kapkowski Road Landfill Project, 5.75%, 4/01/31
|
|
|
|
|
5,000
|
|
|
|
5,005,050
|
|
|
New
Jersey Educational Facilities Authority, Refunding RB, Seton Hall University, Series D, 5.00%, 7/01/33
|
|
|
|
|
1,000
|
|
|
|
1,041,230
|
|
|
New
Jersey Health Care Facilities Financing Authority, Refunding RB, Barnabas Health, Series A, 4.00%, 7/01/26
|
|
|
|
|
3,000
|
|
|
|
2,773,620
|
|
|
New
Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT:
|
|
|
|
|
|
|
|
|
|
|
|
4.10%, 11/01/28
|
|
|
|
|
15,800
|
|
|
|
14,791,644
|
|
|
4.35%, 11/01/33
|
|
|
|
|
7,315
|
|
|
|
6,730,897
|
|
|
New
Jersey Transportation Trust Fund Authority, RB, Transportation Systems:
|
|
|
|
|
|
|
|
|
|
|
|
CABS, Series A, 5.27%, 12/15/28 (a)
|
|
|
|
|
66,000
|
|
|
|
29,667,000
|
|
|
CABS, Series A, 5.37%, 12/15/29 (a)
|
|
|
|
|
18,000
|
|
|
|
7,559,280
|
|
|
Series AA, 4.00%, 6/15/30
|
|
|
|
|
17,315
|
|
|
|
16,475,569
|
|
|
Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 5.25%, 1/01/27
|
|
|
|
|
5,000
|
|
|
|
5,200,350
|
|
|
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1A:
|
|
|
|
|
|
|
|
|
|
|
|
4.50%, 6/01/23
|
|
|
|
|
6,950
|
|
|
|
6,462,041
|
|
|
4.63%, 6/01/26
|
|
|
|
|
22,460
|
|
|
|
19,358,723
|
|
|
|
|
|
|
|
|
|
|
|
168,549,115
|
|
|
New Mexico — 1.1%
|
|
|
|
|
|
|
|
|
|
|
|
New
Mexico Educational Assistance Foundation, RB, AMT:
|
|
|
|
|
|
|
|
|
|
|
|
Education Loan Series A-1, 3.75%, 9/01/31
|
|
|
|
|
6,250
|
|
|
|
5,320,312
|
|
|
Education Loan Series A-2, 3.80%, 11/01/32
|
|
|
|
|
5,850
|
|
|
|
4,950,914
|
|
|
Education Loan Series A-2, 3.80%, 9/01/33
|
|
|
|
|
5,000
|
|
|
|
4,208,950
|
|
|
|
|
|
|
|
|
|
|
|
14,480,176
|
|
|
New York — 7.2%
|
|
|
|
|
|
|
|
|
|
|
|
Build NYC Resource Corp., RB, Bronx Charter School For International Project, Series A, 5.00%, 4/15/33
|
|
|
|
|
3,530
|
|
|
|
3,312,905
|
|
|
Housing Development Corp., RB, M/F Housing, Series K-1:
|
|
|
|
|
|
|
|
|
|
|
|
3.40%, 11/01/30
|
|
|
|
|
8,070
|
|
|
|
6,873,300
|
|
|
3.50%, 11/01/32
|
|
|
|
|
5,865
|
|
|
|
4,873,522
|
|
|
Housing Development Corp., Refunding RB, M/F Housing:
|
|
|
|
|
|
|
|
|
|
|
|
Series L-1, 3.40%, 11/01/30
|
|
|
|
|
1,580
|
|
|
|
1,345,702
|
|
|
Series L-1, 3.50%, 11/01/32
|
|
|
|
|
1,160
|
|
|
|
963,902
|
|
|
Series L-2-A, 3.60%, 11/01/33
|
|
|
|
|
11,000
|
|
|
|
9,327,230
|
|
|
Metropolitan Transportation Authority, Refunding RB, Series F, 5.00%, 11/15/30
|
|
|
|
|
25,000
|
|
|
|
26,016,000
|
|
|
New
York Mortgage Agency, Refunding RB, Series 48, 3.45%, 10/01/33
|
|
|
|
|
3,500
|
|
|
|
2,978,675
|
|
|
New
York State HFA, RB, (SONYMA): M/F Affordable Housing, Series F:
|
|
|
|
|
|
|
|
|
|
|
|
3.05%, 11/01/27
|
|
|
|
|
4,020
|
|
|
|
3,548,374
|
|
|
3.45%, 11/01/32
|
|
|
|
|
5,235
|
|
|
|
4,451,268
|
|
|
Niagara Area Development Corp., Refunding RB, Covanta Energy Project, Series B, 4.00%, 11/01/24
|
|
|
|
|
3,000
|
|
|
|
2,753,760
|
|
|
Onondaga Civic Development Corp., Refunding RB, Saint Joseph’s Hospital Health Center Project, 4.50%, 7/01/32
|
|
|
|
|
9,215
|
|
|
|
8,050,961
|
|
|
Triborough Bridge & Tunnel Authority, Refunding RB, CAB, Series A (a):
|
|
|
|
|
|
|
|
|
|
|
|
4.88%, 11/15/29
|
|
|
|
|
17,810
|
|
|
|
8,120,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
New York (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
Triborough Bridge & Tunnel Authority, Refunding RB, CAB, Series A (a) (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
5.07%, 11/15/30
|
|
|
|
$
|
25,215
|
|
|
$
|
10,606,690
|
|
|
5.08%, 11/15/31
|
|
|
|
|
5,000
|
|
|
|
1,995,500
|
|
|
|
|
|
|
|
|
|
|
|
95,218,436
|
|
|
North Carolina — 1.2%
|
|
|
|
|
|
|
|
|
|
|
|
City of Charlotte North Carolina, Refunding RB, Charlotte-Douglas International Airport, Special Facilities Revenue, US Airway, Inc. Project, AMT,
5.60%, 7/01/27
|
|
|
|
|
15,000
|
|
|
|
14,493,300
|
|
|
North Carolina Medical Care Commission, RB, Mission Health Combined Group, 4.63%, 10/01/30
|
|
|
|
|
2,000
|
|
|
|
1,934,260
|
|
|
|
|
|
|
|
|
|
|
|
16,427,560
|
|
|
North Dakota — 0.2%
|
|
|
|
|
|
|
|
|
|
|
|
North Dakota HFA, RB, M/F Housing, Series A, 3.60%, 7/01/32
|
|
|
|
|
2,690
|
|
|
|
2,296,103
|
|
|
Ohio — 1.8%
|
|
|
|
|
|
|
|
|
|
|
|
Ohio State University, RB, General Receipts Special Purpose, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 6/01/31
|
|
|
|
|
14,220
|
|
|
|
13,657,457
|
|
|
4.00%, 6/01/32
|
|
|
|
|
10,285
|
|
|
|
9,774,144
|
|
|
|
|
|
|
|
|
|
|
|
23,431,601
|
|
|
Oklahoma — 0.2%
|
|
|
|
|
|
|
|
|
|
|
|
Oklahoma County Finance Authority, Refunding RB, Epworth Villa Project, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 4/01/23
|
|
|
|
|
1,050
|
|
|
|
1,004,136
|
|
|
5.00%, 4/01/29
|
|
|
|
|
1,500
|
|
|
|
1,346,085
|
|
|
5.00%, 4/01/33
|
|
|
|
|
1,050
|
|
|
|
917,564
|
|
|
|
|
|
|
|
|
|
|
|
3,267,785
|
|
|
Pennsylvania — 10.3%
|
|
|
|
|
|
|
|
|
|
|
|
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 5/01/27
|
|
|
|
|
6,750
|
|
|
|
6,773,220
|
|
|
5.00%, 5/01/28
|
|
|
|
|
5,000
|
|
|
|
4,984,100
|
|
|
5.00%, 5/01/29
|
|
|
|
|
3,745
|
|
|
|
3,712,493
|
|
|
5.00%, 5/01/30
|
|
|
|
|
5,300
|
|
|
|
5,216,896
|
|
|
Cumberland County Municipal Authority, Refunding RB, Asbury Pennsylvania Obligation Group:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 1/01/22
|
|
|
|
|
750
|
|
|
|
741,353
|
|
|
5.25%, 1/01/27
|
|
|
|
|
1,275
|
|
|
|
1,233,231
|
|
|
5.25%, 1/01/32
|
|
|
|
|
2,000
|
|
|
|
1,864,640
|
|
|
East Hempfield Township IDA, RB, Student Services Incorporate Student Housing, 5.00%, 7/01/30
|
|
|
|
|
1,280
|
|
|
|
1,236,006
|
|
|
Lehigh County, Refunding RB, Lehigh Valley Health Network, 4.00%, 7/01/33
|
|
|
|
|
27,535
|
|
|
|
24,340,940
|
|
|
Montgomery County Higher Education & Health Authority, Refunding RB, Abington Memorial Hospital Obligation Group, 5.00%,
6/01/31
|
|
|
|
|
5,000
|
|
|
|
5,085,400
|
|
|
Montgomery County IDA, Refunding RB, Acts Retirement-Life Communities, Inc. Obligated Group, 5.00%, 11/15/26
|
|
|
|
|
2,500
|
|
|
|
2,554,000
|
|
|
Northampton County General Purpose Authority, RB, State Luke’s Hospital of Bethlehem, Series A, 5.00%, 8/15/33
|
|
|
|
|
13,250
|
|
|
|
12,605,653
|
|
|
Pennsylvania Economic Development Financing Authority, RB, National Gypsum Co., AMT:
|
|
|
|
|
|
|
|
|
|
|
|
Series B, 6.13%, 11/01/27
|
|
|
|
|
3,000
|
|
|
|
2,806,290
|
|
|
Series A, 6.25%, 11/01/27
|
|
|
|
|
6,520
|
|
|
|
6,172,419
|
|
|
Pennsylvania HFA, RB, S/F Housing, Series 114, 3.30%, 10/01/32
|
|
|
|
|
20,500
|
|
|
|
16,791,755
|
|
|
Pennsylvania Higher Educational Facilities Authority, RB, Shippensburg University Student Services, 5.00%, 10/01/30
|
|
|
|
|
3,000
|
|
|
|
2,935,530
|
|
|
Pennsylvania Higher Educational Facilities Authority, Refunding RB, La Salle University, 4.00%, 5/01/32
|
|
|
|
|
3,000
|
|
|
|
2,520,960
|
|
See Notes to Financial Statements.
|
32
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
Municipal Target Term Trust (BTT)
(Percentages shown are
based on Net Assets)
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Pennsylvania (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
State Public School Building Authority, RB, School District of Philadelphia Project:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 4/01/27
|
|
|
|
$
|
4,130
|
|
|
$
|
4,239,321
|
|
|
5.00%, 4/01/28
|
|
|
|
|
8,000
|
|
|
|
8,140,240
|
|
|
5.00%, 4/01/29
|
|
|
|
|
6,000
|
|
|
|
6,041,580
|
|
|
5.00%, 4/01/30
|
|
|
|
|
5,500
|
|
|
|
5,493,455
|
|
|
State Public School Building Authority, Refunding RB, School District of Philadelphia Project, Series B (AGM), 5.00%, 6/01/29
|
|
|
|
|
9,345
|
|
|
|
9,344,346
|
|
|
Swarthmore Borough Authority, Refunding RB, Swarthmore College Project:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 9/15/29
|
|
|
|
|
355
|
|
|
|
383,680
|
|
|
5.00%, 9/15/30
|
|
|
|
|
325
|
|
|
|
348,741
|
|
|
5.00%, 9/15/31
|
|
|
|
|
325
|
|
|
|
348,182
|
|
|
5.00%, 9/15/32
|
|
|
|
|
300
|
|
|
|
319,356
|
|
|
5.00%, 9/15/33
|
|
|
|
|
300
|
|
|
|
318,084
|
|
|
|
|
|
|
|
|
|
|
|
136,551,871
|
|
|
Puerto Rico — 2.1%
|
|
|
|
|
|
|
|
|
|
|
|
Commonwealth of Puerto Rico, GO, Refunding, Public Improvement, Series A, 5.50%, 7/01/27
|
|
|
|
|
4,505
|
|
|
|
4,158,250
|
|
|
Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities:
|
|
|
|
|
|
|
|
|
|
|
|
Series F, 5.25%, 7/01/24
|
|
|
|
|
12,790
|
|
|
|
12,029,123
|
|
|
Series N, 5.00%, 7/01/32
|
|
|
|
|
10,000
|
|
|
|
8,154,500
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, CAB, First Sub-Series A, 6.32%, 8/01/30 (a)
|
|
|
|
|
10,000
|
|
|
|
3,472,300
|
|
|
|
|
|
|
|
|
|
|
|
27,814,173
|
|
|
South Carolina — 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
South Carolina Jobs-EDA, Refunding RB, Bon Secours Health System, Inc., 5.00%, 5/01/28
|
|
|
|
|
2,000
|
|
|
|
1,870,900
|
|
|
South Dakota — 0.1%
|
|
|
|
|
|
|
|
|
|
|
|
Educational Enhancement Funding Corp., Refunding RB, Series B, 5.00%, 6/01/27
|
|
|
|
|
650
|
|
|
|
693,212
|
|
|
Texas — 14.8%
|
|
|
|
|
|
|
|
|
|
|
|
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, Series A, 5.00%, 1/01/33
|
|
|
|
|
1,260
|
|
|
|
1,230,869
|
|
|
City of Brownsville Texas Utilities System Revenue, Refunding RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 9/01/30
|
|
|
|
|
11,170
|
|
|
|
10,270,703
|
|
|
4.00%, 9/01/31
|
|
|
|
|
11,220
|
|
|
|
10,218,839
|
|
|
Clifton Higher Education Finance Corp., Refunding RB, Uplift Education, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
3.10%, 12/01/22
|
|
|
|
|
1,050
|
|
|
|
929,324
|
|
|
3.95%, 12/01/32
|
|
|
|
|
1,800
|
|
|
|
1,451,862
|
|
|
Harris County Cultural Education Facilities Finance Corp., Refunding RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
Brazos Presbyterian Homes, Inc. Project, 5.00%, 1/01/33
|
|
|
|
|
1,090
|
|
|
|
983,616
|
|
|
Memorial Hermann Health System, 4.00%, 12/01/31
|
|
|
|
|
20,000
|
|
|
|
17,616,400
|
|
|
YMCA of the Greater Houston Area, 5.00%, 6/01/28
|
|
|
|
|
1,500
|
|
|
|
1,519,680
|
|
|
YMCA of the Greater Houston Area, 5.00%, 6/01/33
|
|
|
|
|
3,000
|
|
|
|
2,886,570
|
|
|
Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, AMT, 5.00%, 11/01/28
|
|
|
|
|
5,750
|
|
|
|
5,617,635
|
|
|
Lower Colorado River Authority, Refunding RB, LCRA Transmission Services:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 5/15/31
|
|
|
|
|
9,970
|
|
|
|
9,134,315
|
|
|
4.00%, 5/15/32
|
|
|
|
|
10,635
|
|
|
|
9,576,711
|
|
|
Matagorda County Navigation District No. 1 Texas, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Series A (AMBAC), 4.40%, 5/01/30
|
|
|
|
|
30,730
|
|
|
|
27,669,599
|
|
|
Series B (AMBAC), AMT, 4.55%, 5/01/30
|
|
|
|
|
10,000
|
|
|
|
8,966,000
|
|
|
Series B-2, 4.00%, 6/01/30
|
|
|
|
|
10,000
|
|
|
|
8,944,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Texas (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
Midland County Fresh Water Supply District No. 1, RB, City of Midland Project, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 9/15/31
|
|
|
|
$
|
2,435
|
|
|
$
|
2,568,024
|
|
|
CAB, 4.75%, 9/15/31 (a)
|
|
|
|
|
6,235
|
|
|
|
2,661,659
|
|
|
CAB, 4.96%, 9/15/32 (a)
|
|
|
|
|
15,135
|
|
|
|
5,929,288
|
|
|
New
Hope Cultural Education Facilities Corp., RB, Stephenville Tarleton University Project, Series A, 5.38%, 4/01/28
|
|
|
|
|
1,150
|
|
|
|
1,127,632
|
|
|
Red
River Health Facilities Development Corp., RB, Wichita Falls Retirement Foundation Project:
|
|
|
|
|
|
|
|
|
|
|
|
4.70%, 1/01/22
|
|
|
|
|
1,000
|
|
|
|
952,720
|
|
|
5.50%, 1/01/32
|
|
|
|
|
1,000
|
|
|
|
940,420
|
|
|
Tarrant County Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 11/15/31
|
|
|
|
|
5,500
|
|
|
|
4,803,480
|
|
|
4.00%, 11/15/32
|
|
|
|
|
15,420
|
|
|
|
13,300,984
|
|
|
Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare, 5.00%, 8/15/33
|
|
|
|
|
5,000
|
|
|
|
4,987,350
|
|
|
Texas Municipal Gas Acquisition & Supply Corp. III, RB:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 12/15/31
|
|
|
|
|
25,000
|
|
|
|
23,842,250
|
|
|
Natural Gas Utility Improvements, 5.00%, 12/15/30
|
|
|
|
|
18,000
|
|
|
|
17,291,880
|
|
|
|
|
|
|
|
|
|
|
|
195,421,810
|
|
|
US Virgin Islands — 0.7%
|
|
|
|
|
|
|
|
|
|
|
|
Virgin Islands Public Finance Authority, Refunding RB, Gross Receipts Taxes Loan Note, Series A, 5.00%,
10/01/32
|
|
|
|
|
10,000
|
|
|
|
9,770,300
|
|
|
Utah — 0.8%
|
|
|
|
|
|
|
|
|
|
|
|
Salt Lake County Housing Authority, RB, M/F Housing, Liberty Village Apartments Project (Freddie Mac),
3.38%, 8/01/28
|
|
|
|
|
12,000
|
|
|
|
10,521,000
|
|
|
Vermont — 0.2%
|
|
|
|
|
|
|
|
|
|
|
|
Vermont EDA, Refunding MRB, Wake Robin Corp. Project, 5.40%, 5/01/33
|
|
|
|
|
2,400
|
|
|
|
2,278,032
|
|
|
Virginia — 6.4%
|
|
|
|
|
|
|
|
|
|
|
|
Dulles Town Center Community Development Authority, Refunding, Special Assessment Bonds, Dulles Town Center Project, 4.25%,
3/01/26
|
|
|
|
|
500
|
|
|
|
447,960
|
|
|
Fairfax County EDA, Refunding RB, Vinson Hall LLC, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 12/01/22
|
|
|
|
|
505
|
|
|
|
464,832
|
|
|
4.50%, 12/01/32
|
|
|
|
|
2,840
|
|
|
|
2,440,639
|
|
|
5.00%, 12/01/32
|
|
|
|
|
2,000
|
|
|
|
1,843,700
|
|
|
Fairfax County IDA, Refunding RB, Inova Health System, Series D, 4.00%, 5/15/29
|
|
|
|
|
8,575
|
|
|
|
8,253,352
|
|
|
Hanover County EDA, Refunding RB, Covenant Woods, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
4.50%, 7/01/30
|
|
|
|
|
3,000
|
|
|
|
2,606,460
|
|
|
4.50%, 7/01/32
|
|
|
|
|
1,100
|
|
|
|
935,869
|
|
|
Henrico County EDA, Refunding RB, Bon Secours Health System, 5.00%, 11/01/30
|
|
|
|
|
3,400
|
|
|
|
3,412,240
|
|
|
Norfolk EDA, Refunding RB, Bon Secours Health System, Inc.:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 11/01/28
|
|
|
|
|
5,000
|
|
|
|
5,073,600
|
|
|
5.00%, 11/01/29
|
|
|
|
|
5,000
|
|
|
|
5,047,550
|
|
|
Prince William County IDA, Refunding RB, Novant Health Obligation Group, Series B, 4.00%, 11/01/33
|
|
|
|
|
15,445
|
|
|
|
13,455,684
|
|
|
Virginia HDA, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Sub-Series C-2, 3.00%, 4/01/31
|
|
|
|
|
23,200
|
|
|
|
19,499,368
|
|
|
Sub-Series C-3, 3.25%, 4/01/31
|
|
|
|
|
21,500
|
|
|
|
17,298,900
|
|
|
Virginia Small Business Financing Authority, RB, Senior Lien, Express Lanes LLC, AMT, 5.00%, 7/01/34
|
|
|
|
|
3,940
|
|
|
|
3,490,958
|
|
|
|
|
|
|
|
|
|
|
|
84,271,112
|
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
33
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
Municipal Target Term Trust (BTT)
(Percentages shown are
based on Net Assets)
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Washington — 2.4%
|
|
|
|
|
|
|
|
|
|
|
|
Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
3.50%, 9/01/18
|
|
|
|
$
|
1,025
|
|
|
$
|
992,436
|
|
|
3.75%, 9/01/19
|
|
|
|
|
1,060
|
|
|
|
1,020,801
|
|
|
4.13%, 9/01/21
|
|
|
|
|
1,145
|
|
|
|
1,093,681
|
|
|
4.50%, 9/01/22
|
|
|
|
|
1,000
|
|
|
|
967,360
|
|
|
5.00%, 9/01/27
|
|
|
|
|
1,000
|
|
|
|
957,050
|
|
|
5.25%, 9/01/32
|
|
|
|
|
1,000
|
|
|
|
949,130
|
|
|
Port of Seattle Industrial Development Corp., Refunding RB, Special Facilities, Delta Airline, Inc. Project, AMT, 5.00%, 4/01/30
|
|
|
|
|
5,000
|
|
|
|
4,511,550
|
|
|
Spokane Public Facilities District, Refunding RB, Series B:
|
|
|
|
|
|
|
|
|
|
|
|
4.50%, 12/01/30
|
|
|
|
|
5,370
|
|
|
|
5,206,161
|
|
|
5.00%, 12/01/32
|
|
|
|
|
5,895
|
|
|
|
5,967,744
|
|
|
5.00%, 9/01/33
|
|
|
|
|
4,665
|
|
|
|
4,704,373
|
|
|
Washington State Housing Finance Commission, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Emerald Heights Project, 5.00%, 7/01/28
|
|
|
|
|
1,000
|
|
|
|
972,300
|
|
|
Emerald Heights Project, 5.00%, 7/01/33
|
|
|
|
|
1,100
|
|
|
|
1,031,360
|
|
|
Series 1N (Ginnie Mae)(FannieMae)(Freddie Mac), 3.50%, 12/01/33
|
|
|
|
|
4,035
|
|
|
|
3,462,232
|
|
|
|
|
|
|
|
|
|
|
|
31,836,178
|
|
|
Wisconsin — 1.0%
|
|
|
|
|
|
|
|
|
|
|
|
Public Finance Authority, Refunding RB, Airport Facilities, Senior Obligation Group, Series B, AMT, 5.25%, 7/01/28
|
|
|
|
|
2,250
|
|
|
|
2,264,220
|
|
|
Wisconsin Health & Educational Facilities Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Aspirus, Inc., Obligated Group, 5.00%, 8/15/28
|
|
|
|
|
3,510
|
|
|
|
3,576,550
|
|
|
Aspirus, Inc., Obligated Group, 5.00%, 8/15/29
|
|
|
|
|
3,685
|
|
|
|
3,734,305
|
|
|
Marquette University, 4.00%, 10/01/32
|
|
|
|
|
4,520
|
|
|
|
4,204,052
|
|
|
|
|
|
|
|
|
|
|
|
13,779,127
|
|
|
Wyoming — 1.1%
|
|
|
|
|
|
|
|
|
|
|
|
Wyoming Community Development Authority, Refunding RB, Series 2 & 3, 3.75%, 12/01/32
|
|
|
|
|
16,790
|
|
|
|
14,252,024
|
|
|
Total Municipal Bonds — 139.4%
|
|
|
|
|
|
|
|
|
1,842,724,766
|
|
|
|
|
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
|
|
Colorado — 8.1%
|
|
|
|
|
|
|
|
|
|
|
|
City & County of Denver Colorado, Refunding ARB, Department of Aviation (f):
|
|
|
|
|
|
|
|
|
|
|
|
Series A, AMT, 4.25%, 11/15/29
|
|
|
|
|
33,820
|
|
|
|
30,507,123
|
|
|
Series A, AMT, 4.25%, 11/15/30
|
|
|
|
|
35,210
|
|
|
|
31,760,964
|
|
|
Series A, AMT, 4.25%, 11/15/31
|
|
|
|
|
8,085
|
|
|
|
7,293,024
|
|
|
Series A, AMT, 4.25%, 11/15/32
|
|
|
|
|
2,230
|
|
|
|
2,011,558
|
|
|
Series B, 4.00%, 11/15/31 (b)
|
|
|
|
|
37,875
|
|
|
|
35,038,914
|
|
|
|
|
|
|
|
|
|
|
|
106,611,583
|
|
|
Florida — 6.4%
|
|
|
|
|
|
|
|
|
|
|
|
County of Broward Florida, ARB, Series Q-1 (f):
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 10/01/29
|
|
|
|
|
17,200
|
|
|
|
15,535,728
|
|
|
4.00%, 10/01/30
|
|
|
|
|
18,095
|
|
|
|
16,344,127
|
|
|
4.00%, 10/01/31
|
|
|
|
|
18,820
|
|
|
|
16,998,976
|
|
|
4.00%, 10/01/32
|
|
|
|
|
19,575
|
|
|
|
17,680,923
|
|
|
4.00%, 10/01/33
|
|
|
|
|
20,355
|
|
|
|
18,385,450
|
|
|
|
|
|
|
|
|
|
|
|
84,945,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to
Tender
Option Bond Trusts (e)
|
|
|
|
Par
(000)
|
|
Value
|
|
Illinois — 2.9%
|
|
|
|
|
|
|
|
|
|
|
|
City of Chicago Illinois, RB, Second Lien, Wastewater Transmission Project:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 1/01/33
|
|
|
|
$
|
11,220
|
|
|
$
|
10,191,070
|
|
|
4.00%, 1/01/31
|
|
|
|
|
10,375
|
|
|
|
9,423,560
|
|
|
4.00%, 1/01/32
|
|
|
|
|
10,790
|
|
|
|
9,800,503
|
|
|
4.00%, 1/01/35
|
|
|
|
|
9,135
|
|
|
|
8,297,275
|
|
|
|
|
|
|
|
|
|
|
|
37,712,408
|
|
|
Iowa — 3.0%
|
|
|
|
|
|
|
|
|
|
|
|
Iowa State Board of Regents, RB, University of Iowa Hospitals and Clinics:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 9/01/28
|
|
|
|
|
3,375
|
|
|
|
3,174,373
|
|
|
4.00%, 9/01/29
|
|
|
|
|
6,525
|
|
|
|
6,137,122
|
|
|
4.00%, 9/01/30
|
|
|
|
|
6,325
|
|
|
|
5,949,010
|
|
|
4.00%, 9/01/31
|
|
|
|
|
8,650
|
|
|
|
8,135,801
|
|
|
4.00%, 9/01/32
|
|
|
|
|
7,750
|
|
|
|
7,289,301
|
|
|
4.00%, 9/01/33
|
|
|
|
|
9,375
|
|
|
|
8,817,703
|
|
|
|
|
|
|
|
|
|
|
|
39,503,310
|
|
|
Texas — 11.6%
|
|
|
|
|
|
|
|
|
|
|
|
City of San Antonio Texas Public Facilities Corp., Refunding LRB, Convention Center Refinancing and Expansion Project:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 9/15/30
|
|
|
|
|
15,000
|
|
|
|
13,725,454
|
|
|
4.00%, 9/15/34
|
|
|
|
|
11,885
|
|
|
|
10,875,135
|
|
|
4.00%, 9/15/31
|
|
|
|
|
19,475
|
|
|
|
17,820,214
|
|
|
4.00%, 9/15/32
|
|
|
|
|
18,075
|
|
|
|
16,539,172
|
|
|
4.00%, 9/15/33
|
|
|
|
|
11,000
|
|
|
|
10,065,333
|
|
|
4.00%, 9/15/35
|
|
|
|
|
4,500
|
|
|
|
4,117,636
|
|
|
County of Harris Texas, Refunding RB, Senior Lien Toll Road, Series C, 4.00%, 8/15/33
|
|
|
|
|
12,325
|
|
|
|
11,516,707
|
|
|
Dallas/Fort Worth International Airport, Refunding RB, AMT (f):
|
|
|
|
|
|
|
|
|
|
|
|
Series E, 4.00%, 11/01/32
|
|
|
|
|
6,915
|
|
|
|
6,551,330
|
|
|
Series E, 4.13%, 11/01/35
|
|
|
|
|
10,435
|
|
|
|
9,886,208
|
|
|
Series F, 5.00%, 11/01/29
|
|
|
|
|
12,820
|
|
|
|
12,145,777
|
|
|
Series F, 5.00%, 11/01/30
|
|
|
|
|
15,565
|
|
|
|
14,746,414
|
|
|
Series F, 5.00%, 11/01/31
|
|
|
|
|
10,000
|
|
|
|
9,474,085
|
|
|
Series F, 5.00%, 11/01/32
|
|
|
|
|
17,170
|
|
|
|
16,267,004
|
|
|
|
|
|
|
|
|
|
|
|
153,730,469
|
|
|
Washington — 1.2%
|
|
|
|
|
|
|
|
|
|
|
|
State of Washington, COP, State and Local Agency Real and Personal Property, Series B:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 7/01/29
|
|
|
|
|
4,105
|
|
|
|
3,854,831
|
|
|
4.00%, 7/01/30
|
|
|
|
|
4,290
|
|
|
|
4,028,556
|
|
|
4.00%, 7/01/31
|
|
|
|
|
4,470
|
|
|
|
4,197,587
|
|
|
4.00%, 7/01/32
|
|
|
|
|
4,590
|
|
|
|
4,310,273
|
|
|
|
|
|
|
|
|
|
|
|
16,391,247
|
|
|
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 33.2%
|
|
|
|
|
|
|
|
|
438,894,221
|
|
|
Total Long-Term Investments
(Cost — $2,573,620,725) — 172.6%
|
|
|
|
|
|
|
|
|
2,281,618,987
|
|
|
|
|
Short-Term Securities
|
|
|
|
|
Shares
|
|
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.03% (g)(h)
|
|
|
|
55,145,313
|
|
|
55,145,313
|
|
|
Total Short-Term Securities
(Cost — $55,145,313) — 4.2%
|
|
|
|
|
|
|
|
|
55,145,313
|
|
|
Total Investments (Cost — $2,628,766,038) — 176.8%
|
|
2,336,764,300
|
|
|
Liabilities in Excess of Other Assets — (2.0%)
|
|
|
|
|
|
|
|
|
(26,127,234
|
)
|
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (18.1%)
|
|
|
|
|
|
|
|
|
(238,801,709
|
)
|
|
RVMTP Shares, at Liquidation Value — (56.7%)
|
|
|
|
|
|
|
|
|
(750,000,000
|
)
|
|
Net Assets Applicable to Common Shares — 100.0%
|
|
|
|
|
|
|
|
$
|
1,321,835,357
|
|
See Notes to Financial Statements.
|
34
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments (concluded)
|
BlackRock
Municipal Target Term Trust (BTT)
|
Notes to Schedule of Investments
|
(a)
|
|
|
|
Represents a zero-coupon bond. Rate shown reflects the current yield 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)
|
|
|
|
When-issued security. Unsettled when-issued transactions were as follows:
|
Counterparty
|
|
|
|
Value
|
|
Unrealized
Appreciation/
(Depreciation)
|
|
RBC
Capital Markets, LLC
|
|
|
|
$
|
5,746,400
|
|
|
$
|
(89,485
|
)
|
|
Robert W. Baird & Co.
|
|
|
|
$
|
1,756,338
|
|
|
$
|
8,483
|
|
|
(d)
|
|
|
|
Variable rate security. Rate shown is as of report date.
|
|
(e)
|
|
|
|
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as
collateral in a financing transaction. See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to
TOBs.
|
|
(f)
|
|
|
|
All
or a portion of security is subject to a recourse agreement, which may require the Trust to pay the Liquidity Provider in the event there is a
shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a
shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from November 1,
2018 to November 15, 2020 is $148,325,380.
|
|
(g)
|
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2013, for purposes of Section 2(a)(3) of the 1940
Act, were as follows:
|
Affiliate
|
|
|
|
Shares Held at
July 31, 2012
|
|
Net
Activity
|
|
Shares Held at
July 31, 2013
|
|
Income
|
|
FFI Institutional Tax-Exempt Fund
|
|
|
|
—
|
|
55,145,313
|
|
55,145,313
|
|
$3,020
|
|
(h)
|
|
|
|
Represents the current yield as of report date.
|
|
|
|
|
|
For
Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more
widely recognized market indexes or rating group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this
report, which may combine such sector sub-classifications for reporting ease.
|
|
•
|
|
|
|
Fair
Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized
into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
|
|
|
•
|
|
|
|
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to
access
|
|
|
•
|
|
|
|
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active,
quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or
other market-corroborated inputs)
|
|
|
•
|
|
|
|
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available
(including the Trust’s own assumptions used in determining the fair value of investments)
|
|
|
|
|
|
The
hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for
instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases,
for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value
measurement in its entirety.
|
|
|
|
|
|
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. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not
necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation
of investments, please refer to Note 2 of the Notes to Financial Statements.
|
|
|
|
|
|
The
following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of July 31, 2013:
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments
1
|
|
|
|
|
—
|
|
|
$
|
2,281,618,987
|
|
|
|
—
|
|
|
$
|
2,281,618,987
|
|
|
Short-Term Securities
|
|
|
|
$
|
55,145,313
|
|
|
|
—
|
|
|
|
—
|
|
|
|
55,145,313
|
|
|
Total
|
|
|
|
$
|
55,145,313
|
|
|
$
|
2,281,618,987
|
|
|
|
—
|
|
|
$
|
2,336,764,300
|
|
|
|
1
|
See above Schedule of Investments for values in each state or political subdivision.
|
|
|
|
|
|
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July
31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdraft
|
|
—
|
|
|
$
|
(35,623
|
)
|
|
|
—
|
|
|
$
|
(35,623
|
)
|
|
RVMTP Shares
|
|
—
|
|
|
|
(750,000,000
|
)
|
|
|
—
|
|
|
|
(750,000,000
|
)
|
|
TOB trust certificates
|
|
—
|
|
|
|
(238,704,971
|
)
|
|
|
—
|
|
|
|
(238,704,971
|
)
|
|
Total
|
|
—
|
|
|
$
|
(988,740,594
|
)
|
|
|
—
|
|
|
$
|
(988,740,594
|
)
|
|
|
|
|
|
There were no transfers between levels during the year ended July 31, 2013.
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
35
|
|
|
|
|
Schedule of Investments
July 31, 2013
|
BlackRock
New Jersey Municipal Income Trust (BNJ)
(Percentages shown
are based on Net Assets)
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
New Jersey — 130.5%
|
|
Corporate — 10.0%
|
|
|
|
|
|
|
|
|
|
|
|
Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (a)(b)
|
|
|
|
$
|
1,790
|
|
|
$
|
125,193
|
|
|
New
Jersey EDA, RB, Continental Airlines, Inc. Project, AMT (c):
|
|
|
|
|
|
|
|
|
|
|
|
7.00%, 11/15/30
|
|
|
|
|
3,450
|
|
|
|
3,451,587
|
|
|
7.20%, 11/15/30
|
|
|
|
|
2,000
|
|
|
|
2,001,460
|
|
|
New
Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project AMT:
|
|
|
|
|
|
|
|
|
|
|
|
Series A, 5.70%, 10/01/39
|
|
|
|
|
1,500
|
|
|
|
1,577,745
|
|
|
Series B, 5.60%, 11/01/34
|
|
|
|
|
1,275
|
|
|
|
1,343,633
|
|
|
Salem County Pollution Control Financing Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29
|
|
|
|
|
2,400
|
|
|
|
2,446,704
|
|
|
|
|
|
|
|
|
|
|
|
10,946,322
|
|
|
County/City/Special District/School District — 16.8%
|
|
|
|
|
|
|
|
|
|
|
|
Bergen County New Jersey Improvement Authority, Refunding RB, Fair Lawn Community Center, Inc. Project, 5.00%, 9/15/34
|
|
|
|
|
785
|
|
|
|
833,984
|
|
|
City of Margate New Jersey, GO, Refunding, Improvement, 5.00%, 1/15/28
|
|
|
|
|
1,085
|
|
|
|
1,141,463
|
|
|
City of Perth Amboy New Jersey, GO, Refunding, CAB, (AGM):
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/34
|
|
|
|
|
1,075
|
|
|
|
1,092,135
|
|
|
5.00%, 7/01/35
|
|
|
|
|
175
|
|
|
|
177,163
|
|
|
Essex County Improvement Authority, Refunding RB, Project Consolidation, (NPFGC):
|
|
|
|
|
|
|
|
|
|
|
|
5.50%, 10/01/28
|
|
|
|
|
1,440
|
|
|
|
1,643,098
|
|
|
5.50%, 10/01/29
|
|
|
|
|
2,630
|
|
|
|
2,978,370
|
|
|
Hudson County Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC):
|
|
|
|
|
|
|
|
|
|
|
|
5.25%, 1/01/39
|
|
|
|
|
2,000
|
|
|
|
2,072,300
|
|
|
5.38%, 1/01/44
|
|
|
|
|
2,400
|
|
|
|
2,485,848
|
|
|
Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 4.38%, 1/01/37
|
|
|
|
|
2,600
|
|
|
|
2,241,902
|
|
|
Union County Improvement Authority, RB, Guaranteed Lease, Family Court Building Project, 5.00%, 5/01/42
|
|
|
|
|
1,515
|
|
|
|
1,551,557
|
|
|
Union County Utilities Authority, Refunding RB, New Jersey Solid Waste System, County Deficiency Agreement, Series A, 5.00%,
6/15/41
|
|
|
|
|
2,185
|
|
|
|
2,259,574
|
|
|
|
|
|
|
|
|
|
|
|
18,477,394
|
|
|
Education — 18.5%
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA, RB:
|
|
|
|
|
|
|
|
|
|
|
|
MSU Student Housing Project Provide, 5.88%, 6/01/42
|
|
|
|
|
1,500
|
|
|
|
1,571,085
|
|
|
School Facilities Construction, Series CC-2, 5.00%, 12/15/31
|
|
|
|
|
1,525
|
|
|
|
1,586,015
|
|
|
New
Jersey Educational Facilities Authority, RB, Montclair State University, Series J, 5.25%, 7/01/38
|
|
|
|
|
580
|
|
|
|
601,344
|
|
|
New
Jersey Educational Facilities Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
College of New Jersey, Series D (AGM), 5.00%, 7/01/35
|
|
|
|
|
3,230
|
|
|
|
3,252,255
|
|
|
Georgian Court University, Series D, 5.00%, 7/01/33
|
|
|
|
|
250
|
|
|
|
243,228
|
|
|
Kean University, Series A, 5.50%, 9/01/36
|
|
|
|
|
2,060
|
|
|
|
2,169,592
|
|
|
New
Jersey Institute of Technology, Series H, 5.00%, 7/01/31
|
|
|
|
|
660
|
|
|
|
680,196
|
|
|
Ramapo College, Series B, 5.00%, 7/01/42
|
|
|
|
|
265
|
|
|
|
269,566
|
|
|
Seton Hall University, Series D, 5.00%, 7/01/43
|
|
|
|
|
345
|
|
|
|
353,942
|
|
|
University of Medicine & Dentistry, Series B, 7.50%, 6/01/19 (d)
|
|
|
|
|
1,450
|
|
|
|
1,914,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
New Jersey (continued)
|
|
Education (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey Higher Education Student Assistance Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Series 1, AMT, 5.75%, 12/01/29
|
|
|
|
$
|
2,055
|
|
|
$
|
2,147,434
|
|
|
Series 1A, 5.00%, 12/01/25
|
|
|
|
|
500
|
|
|
|
519,405
|
|
|
Series 1A, 5.00%, 12/01/26
|
|
|
|
|
325
|
|
|
|
334,857
|
|
|
Series 1A, 5.25%, 12/01/32
|
|
|
|
|
500
|
|
|
|
512,950
|
|
|
New
Jersey Institute of Technology, RB, Series A, 5.00%, 7/01/42
|
|
|
|
|
970
|
|
|
|
988,129
|
|
|
Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43
|
|
|
|
|
3,145
|
|
|
|
3,240,231
|
|
|
|
|
|
|
|
|
|
|
|
20,384,896
|
|
|
Health — 17.7%
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA, RB:
|
|
|
|
|
|
|
|
|
|
|
|
First Mortgage, Lions Gate Project, Series A, 5.75%, 1/01/25
|
|
|
|
|
500
|
|
|
|
496,465
|
|
|
First Mortgage, Lions Gate Project, Series A, 5.88%, 1/01/37
|
|
|
|
|
855
|
|
|
|
798,399
|
|
|
Masonic Charity Foundation Project, 5.50%, 6/01/31
|
|
|
|
|
875
|
|
|
|
875,490
|
|
|
New
Jersey EDA, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
First Mortgage, Winchester, Series A, 5.75%, 11/01/24
|
|
|
|
|
4,050
|
|
|
|
4,079,565
|
|
|
Seabrook Village, Inc. Facility, 5.25%, 11/15/26
|
|
|
|
|
1,790
|
|
|
|
1,793,061
|
|
|
New
Jersey Health Care Facilities Financing Authority, RB (AGC):
|
|
|
|
|
|
|
|
|
|
|
|
Meridian Health, Series I, 5.00%, 7/01/38
|
|
|
|
|
730
|
|
|
|
734,395
|
|
|
Virtua Health, 5.50%, 7/01/38
|
|
|
|
|
1,250
|
|
|
|
1,281,613
|
|
|
New
Jersey Health Care Facilities Financing Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
AHS Hospital Corp., 6.00%, 7/01/37
|
|
|
|
|
900
|
|
|
|
1,002,348
|
|
|
AHS Hospital Corp., 6.00%, 7/01/41
|
|
|
|
|
1,045
|
|
|
|
1,174,277
|
|
|
Barnabas Health, Series A, 5.00%, 7/01/25
|
|
|
|
|
140
|
|
|
|
144,882
|
|
|
Barnabas Health, Series A, 5.63%, 7/01/32
|
|
|
|
|
580
|
|
|
|
595,799
|
|
|
Barnabas Health, Series A, 5.63%, 7/01/37
|
|
|
|
|
1,605
|
|
|
|
1,636,217
|
|
|
Meridian Health System Obligation, 5.00%, 7/01/26
|
|
|
|
|
970
|
|
|
|
1,009,615
|
|
|
Robert Wood Johnson, 5.00%, 7/01/31
|
|
|
|
|
500
|
|
|
|
506,550
|
|
|
South Jersey Hospital, 5.00%, 7/01/46
|
|
|
|
|
1,650
|
|
|
|
1,613,436
|
|
|
St. Barnabas Health Care System, Series A, 5.00%, 7/01/29
|
|
|
|
|
1,750
|
|
|
|
1,731,012
|
|
|
|
|
|
|
|
|
|
|
|
19,473,124
|
|
|
Housing — 10.9%
|
|
|
|
|
|
|
|
|
|
|
|
Middlesex County Improvement Authority, RB, AMT (Fannie Mae):
|
|
|
|
|
|
|
|
|
|
|
|
Administration Building Residential Project, 5.35%, 7/01/34
|
|
|
|
|
1,400
|
|
|
|
1,400,588
|
|
|
New Brunswick Apartments Rental Housing, 5.30%, 8/01/35
|
|
|
|
|
4,320
|
|
|
|
4,321,944
|
|
|
New
Jersey Housing & Mortgage Finance Agency, RB:
|
|
|
|
|
|
|
|
|
|
|
|
M/F Housing, Series A, 4.55%, 11/01/43
|
|
|
|
|
1,540
|
|
|
|
1,385,969
|
|
|
S/F Housing, Series AA, 6.38%, 10/01/28
|
|
|
|
|
885
|
|
|
|
954,888
|
|
|
S/F Housing, Series AA, 6.50%, 10/01/38
|
|
|
|
|
1,005
|
|
|
|
1,033,452
|
|
|
S/F Housing, Series CC, 5.00%, 10/01/34
|
|
|
|
|
1,130
|
|
|
|
1,156,216
|
|
|
S/F Housing, Series X, AMT, 4.85%, 4/01/16
|
|
|
|
|
530
|
|
|
|
543,139
|
|
|
Series A, 4.75%, 11/01/29
|
|
|
|
|
1,185
|
|
|
|
1,198,331
|
|
|
|
|
|
|
|
|
|
|
|
11,994,527
|
|
|
State — 29.2%
|
|
|
|
|
|
|
|
|
|
|
|
Garden State Preservation Trust, RB, CAB, Series B (AGM), 4.22%, 11/01/26 (e)
|
|
|
|
|
6,000
|
|
|
|
3,450,120
|
|
|
New
Jersey EDA, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31
|
|
|
|
|
5,000
|
|
|
|
5,388,950
|
|
|
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25
|
|
|
|
|
1,365
|
|
|
|
1,537,208
|
|
See Notes to Financial Statements.
|
36
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
New Jersey Municipal Income Trust (BNJ)
(Percentages shown
are based on Net Assets)
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
New Jersey (concluded)
|
|
State (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA, RB (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
School Facilities Construction, Series KK, 5.00%, 3/01/35
|
|
|
|
$
|
1,000
|
|
|
$
|
1,012,340
|
|
|
School Facilities Construction, Series KK, 5.00%, 3/01/38
|
|
|
|
|
785
|
|
|
|
794,687
|
|
|
School Facilities Construction, Series Z (AGC), 5.50%, 12/15/34
|
|
|
|
|
3,000
|
|
|
|
3,236,610
|
|
|
New
Jersey EDA, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Cigarette Tax, 5.00%, 6/15/26
|
|
|
|
|
810
|
|
|
|
820,279
|
|
|
Cigarette Tax, 5.00%, 6/15/29
|
|
|
|
|
1,000
|
|
|
|
973,240
|
|
|
Cigarette Tax (AGM), 5.00%, 6/15/22
|
|
|
|
|
2,940
|
|
|
|
3,272,485
|
|
|
Kapkowski Road Landfill Project, 6.50%, 4/01/28
|
|
|
|
|
2,500
|
|
|
|
2,725,425
|
|
|
School Facilities Construction, Series GG, 5.25%, 9/01/26
|
|
|
|
|
3,500
|
|
|
|
3,798,690
|
|
|
New
Jersey Health Care Facilities Financing Authority, RB, Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38
|
|
|
|
|
2,350
|
|
|
|
2,379,493
|
|
|
State of New Jersey, COP, Equipment Lease Purchase, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.25%, 6/15/27
|
|
|
|
|
2,000
|
|
|
|
2,118,960
|
|
|
5.25%, 6/15/28
|
|
|
|
|
600
|
|
|
|
631,500
|
|
|
|
|
|
|
|
|
|
|
|
32,139,987
|
|
|
Transportation — 26.7%
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey State Turnpike Authority, RB, Series E, 5.25%, 1/01/40
|
|
|
|
|
1,970
|
|
|
|
2,020,255
|
|
|
New
Jersey State Turnpike Authority, Refunding RB, Series B, 5.00%, 1/01/30
|
|
|
|
|
1,415
|
|
|
|
1,475,392
|
|
|
New
Jersey Transportation Trust Fund Authority, RB, Transportation System:
|
|
|
|
|
|
|
|
|
|
|
|
6.00%, 12/15/38
|
|
|
|
|
945
|
|
|
|
1,062,804
|
|
|
CAB, Series C (AGM), 5.63%, 12/15/32 (e)
|
|
|
|
|
4,000
|
|
|
|
1,364,400
|
|
|
Series A, 6.00%, 6/15/35
|
|
|
|
|
4,135
|
|
|
|
4,547,838
|
|
|
Series A, 5.88%, 12/15/38
|
|
|
|
|
1,770
|
|
|
|
1,976,205
|
|
|
Series A, 5.50%, 6/15/41
|
|
|
|
|
2,000
|
|
|
|
2,102,800
|
|
|
Series A, 5.00%, 6/15/42
|
|
|
|
|
1,000
|
|
|
|
1,012,810
|
|
|
Series A (AGC), 5.50%, 12/15/38
|
|
|
|
|
1,000
|
|
|
|
1,072,870
|
|
|
Series B, 5.00%, 6/15/42
|
|
|
|
|
1,320
|
|
|
|
1,335,338
|
|
|
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
|
|
|
|
6,141,360
|
|
|
Series 8, 6.00%, 12/01/42
|
|
|
|
|
1,430
|
|
|
|
1,581,423
|
|
|
Port Authority of New York & New Jersey, Refunding RB, Consolidated, 152nd Series, AMT, 5.75%, 11/01/30
|
|
|
|
|
1,750
|
|
|
|
1,907,517
|
|
|
South Jersey Transportation Authority, Refunding RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 11/01/27
|
|
|
|
|
1,000
|
|
|
|
1,057,850
|
|
|
5.00%, 11/01/28
|
|
|
|
|
305
|
|
|
|
319,945
|
|
|
5.00%, 11/01/29
|
|
|
|
|
305
|
|
|
|
317,822
|
|
|
|
|
|
|
|
|
|
|
|
29,296,629
|
|
|
Utilities — 0.7%
|
|
|
|
|
|
|
|
|
|
|
|
Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 5.19%, 9/01/33 (e)
|
|
|
|
|
2,000
|
|
|
|
714,700
|
|
|
Total Municipal Bonds in New Jersey
|
|
|
|
|
|
|
|
|
143,427,579
|
|
|
|
|
|
|
Pennsylvania — 0.7%
|
|
Transportation — 0.7%
|
|
|
|
|
|
|
|
|
|
|
|
Delaware River Port Authority of Pennsylvania & New Jersey, RB, Series D, 5.00%,
1/01/40
|
|
|
|
800
|
|
|
818,464
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Puerto Rico — 6.9%
|
|
State — 6.9%
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Public Buildings Authority, RB, CAB, Series D (AMBAC), 5.45%, 7/01/17 (d)
|
|
|
|
$
|
1,000
|
|
|
$
|
1,162,150
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.75%, 8/01/37
|
|
|
|
|
3,075
|
|
|
|
3,008,457
|
|
|
6.00%, 8/01/42
|
|
|
|
|
2,250
|
|
|
|
2,246,917
|
|
|
Puerto Rico Sales Tax Financing Corp., Refunding RB, Senior Series C, 5.25%, 8/01/40
|
|
|
|
|
1,180
|
|
|
|
1,130,759
|
|
|
Total Municipal Bonds in Puerto Rico
|
|
|
|
|
|
|
|
|
7,548,283
|
|
|
Total Municipal Bonds — 138.1%
|
|
|
|
|
|
|
|
|
151,794,326
|
|
|
|
|
Municipal Bonds Transferred to
Tender Option Bond Trusts (f)
|
|
|
|
|
|
|
|
|
|
|
|
New Jersey — 26.1%
|
|
County/City/Special District/School District — 5.3%
|
|
|
|
|
|
|
|
|
|
|
|
Union County Utilities Authority, Refunding LRB, Covanta Union, Series A, AMT, 5.25%,
12/01/31
|
|
|
|
|
5,710
|
|
|
|
5,813,693
|
|
|
Education — 1.4%
|
|
|
|
|
|
|
|
|
|
|
|
Rutgers State University of New Jersey, Refunding RB, Series F, 5.00%, 5/01/39
|
|
|
|
|
1,499
|
|
|
|
1,559,040
|
|
|
State — 5.7%
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey EDA, RB, School Facilities Construction, (AGC):
|
|
|
|
|
|
|
|
|
|
|
|
6.00%, 12/15/18 (d)
|
|
|
|
|
987
|
|
|
|
1,110,662
|
|
|
6.00%, 12/15/34
|
|
|
|
|
2,013
|
|
|
|
2,264,878
|
|
|
New
Jersey EDA, Refunding RB, 5.00%, 3/01/29 (g)
|
|
|
|
|
2,788
|
|
|
|
2,893,459
|
|
|
|
|
|
|
|
|
|
|
|
6,268,999
|
|
|
Transportation — 13.7%
|
|
|
|
|
|
|
|
|
|
|
|
New
Jersey State Turnpike Authority, RB, Series A, 5.00%, 1/01/38 (g)
|
|
|
|
|
4,700
|
|
|
|
4,794,705
|
|
|
New
Jersey Transportation Trust Fund Authority, RB, Transportation System:
|
|
|
|
|
|
|
|
|
|
|
|
Series A (AGM), 5.00%, 12/15/32
|
|
|
|
|
2,000
|
|
|
|
2,078,980
|
|
|
Series B, 5.25%, 6/15/36 (g)
|
|
|
|
|
2,501
|
|
|
|
2,596,702
|
|
|
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/41
|
|
|
|
|
3,495
|
|
|
|
3,523,310
|
|
|
Port Authority of New York & New Jersey, Refunding RB, 152nd Series, Consolidated, AMT, 5.25%, 11/01/35
|
|
|
|
|
2,039
|
|
|
|
2,100,387
|
|
|
|
|
|
|
|
|
|
|
|
15,094,084
|
|
|
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 26.1%
|
|
|
|
|
|
|
|
|
28,735,816
|
|
|
Total Long-Term Investments
(Cost — $179,825,094) — 164.2%
|
|
|
|
|
|
|
|
|
180,530,142
|
|
|
|
|
Short-Term Securities
|
|
|
|
|
Shares
|
|
|
|
|
|
|
BIF New Jersey Municipal Money Fund, 0.00% (h)(i)
|
|
|
|
|
4,818,896
|
|
|
|
4,818,896
|
|
|
Total Short-Term Securities
(Cost — $4,818,896) — 4.4%
|
|
|
|
|
|
|
|
|
4,818,896
|
|
|
Total Investments (Cost — $184,643,990) — 168.6%
|
|
|
|
|
|
|
|
|
185,349,038
|
|
|
Other Assets Less Liabilities — 0.9%
|
|
|
|
|
|
|
|
|
1,009,125
|
|
|
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (15.7%)
|
|
|
|
|
|
|
|
|
(17,308,372
|
)
|
|
VMTP Shares, at Liquidation Value — (53.8%)
|
|
|
|
|
|
|
|
|
(59,100,000
|
)
|
|
Net Assets Applicable to Common Shares — 100.0%
|
|
|
|
|
|
|
|
$
|
109,949,791
|
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
37
|
|
|
|
|
Schedule of Investments (concluded)
|
BlackRock
New Jersey Municipal Income Trust (BNJ)
|
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)
|
|
|
|
Variable rate security. Rate shown is as of report date.
|
|
(d)
|
|
|
|
US
government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated,
typically at a premium to par.
|
|
(e)
|
|
|
|
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
|
|
(f)
|
|
|
|
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities 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 $7,518,656.
|
|
(h)
|
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2013, for purposes of Section 2(a)(3) of the 1940
Act, were as follows:
|
Affiliate
|
|
|
|
Shares Held at
July 31, 2012
|
|
Net
Activity
|
|
Shares Held at
July 31, 2013
|
|
Income
|
|
BIF New Jersey Municipal Money Fund
|
|
|
|
2,329,356
|
|
2,489,540
|
|
4,818,896
|
|
$2
|
|
(i)
|
|
|
|
Represents the current yield as of report date.
|
|
|
|
|
|
For
Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more
widely recognized market indexes or rating group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this
report, which may combine such sector sub-classifications for reporting ease.
|
|
•
|
|
|
|
Fair
Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized
into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
|
|
|
•
|
|
|
|
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to
access
|
|
|
•
|
|
|
|
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active,
quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or
other market-corroborated inputs)
|
|
|
•
|
|
|
|
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available
(including the Trust’s own assumptions used in determining the fair value of investments)
|
|
|
|
|
|
The
hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for
instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases,
for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value
measurement in its entirety.
|
|
|
|
|
|
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. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not
necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation
of investments, please refer to Note 2 of the Notes to Financial Statements.
|
|
|
|
|
|
The
following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of July 31, 2013:
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments
1
|
|
|
|
|
—
|
|
|
$
|
180,530,142
|
|
|
|
—
|
|
|
$
|
180,530,142
|
|
|
Short-Term Securities
|
|
|
|
$
|
4,818,896
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,818,896
|
|
|
Total
|
|
|
|
$
|
4,818,896
|
|
|
$
|
180,530,142
|
|
|
|
—
|
|
|
$
|
185,349,038
|
|
|
|
1
|
See above Schedule of Investments for values in each sector.
|
|
|
|
|
|
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of July
31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank overdraft
|
|
|
|
|
—
|
|
|
$
|
(3,933
|
)
|
|
|
—
|
|
|
$
|
(3,933
|
)
|
|
TOB trust certificates
|
|
|
|
|
—
|
|
|
|
(17,302,334
|
)
|
|
|
—
|
|
|
|
(17,302,334
|
)
|
|
VMTP Shares
|
|
|
|
|
—
|
|
|
|
(59,100,000
|
)
|
|
|
—
|
|
|
|
(59,100,000
|
)
|
|
Total
|
|
|
|
|
—
|
|
|
$
|
(76,406,267
|
)
|
|
|
—
|
|
|
$
|
(76,406,267
|
)
|
|
|
|
|
|
There were no transfers between levels during the year ended July 31, 2013.
|
See Notes to Financial Statements.
|
38
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments
July 31, 2013
|
BlackRock
New York Municipal Income Trust (BNY)
(Percentages shown
are based on Net Assets)
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
New York — 129.7%
|
|
Corporate — 16.1%
|
|
|
|
|
|
|
|
|
|
|
|
Chautauqua County Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42
|
|
|
|
$
|
1,000
|
|
|
$
|
1,019,170
|
|
|
Essex County Industrial Development Agency New York, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32
|
|
|
|
|
550
|
|
|
|
593,489
|
|
|
New
York City Industrial Development Agency, RB, American Airlines, Inc., JFK International Airport, AMT (a):
|
|
|
|
|
|
|
|
|
|
|
|
7.63%, 8/01/25
|
|
|
|
|
3,200
|
|
|
|
3,512,352
|
|
|
7.75%, 8/01/31
|
|
|
|
|
4,000
|
|
|
|
4,392,280
|
|
|
New
York City Industrial Development Agency, Refunding RB, Senior TRIPS, Series A, AMT, 5.00%, 7/01/28
|
|
|
|
|
795
|
|
|
|
772,979
|
|
|
New
York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.25%, 10/01/35
|
|
|
|
|
5,350
|
|
|
|
5,542,172
|
|
|
Niagara Area Development Corp., Refunding RB, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42
|
|
|
|
|
1,500
|
|
|
|
1,314,000
|
|
|
Port Authority of New York & New Jersey, RB, Continental Airlines, Inc. and Eastern Air Lines, Inc. Project, LaGuardia, AMT, 9.13%,
12/01/15
|
|
|
|
|
4,720
|
|
|
|
4,836,914
|
|
|
Suffolk County Industrial Development Agency New York, RB, KeySpan, Port Jefferson, AMT, 5.25%, 6/01/27
|
|
|
|
|
6,000
|
|
|
|
6,046,440
|
|
|
|
|
|
|
|
|
|
|
|
28,029,796
|
|
|
County/City/Special District/School District — 34.3%
|
|
|
|
|
|
|
|
|
|
|
|
City of New York, New York, GO:
|
|
|
|
|
|
|
|
|
|
|
|
Refunding, Series E, 5.00%, 8/01/30
|
|
|
|
|
1,000
|
|
|
|
1,062,140
|
|
|
Refunding, Series I, 5.00%, 8/01/30
|
|
|
|
|
1,000
|
|
|
|
1,059,440
|
|
|
Refunding, Series J, 5.00%, 8/01/25
|
|
|
|
|
2,270
|
|
|
|
2,548,098
|
|
|
Series A-1, 4.75%, 8/15/25
|
|
|
|
|
750
|
|
|
|
795,592
|
|
|
Series A-1, 5.00%, 8/01/35
|
|
|
|
|
1,000
|
|
|
|
1,029,890
|
|
|
Series D, 5.38%, 6/01/32
|
|
|
|
|
25
|
|
|
|
25,081
|
|
|
Sub-Series A-1, 4.00%, 10/01/34
|
|
|
|
|
350
|
|
|
|
328,990
|
|
|
Sub-Series G-1, 5.00%, 4/01/28
|
|
|
|
|
630
|
|
|
|
677,156
|
|
|
Sub-Series G-1, 5.00%, 4/01/29
|
|
|
|
|
5,120
|
|
|
|
5,456,845
|
|
|
Sub-Series G-1, 6.25%, 12/15/31
|
|
|
|
|
500
|
|
|
|
576,360
|
|
|
Sub-Series I-1, 5.38%, 4/01/36
|
|
|
|
|
1,750
|
|
|
|
1,950,322
|
|
|
Hudson New York Yards Infrastructure Corp., RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 2/15/47
|
|
|
|
|
5,485
|
|
|
|
5,433,386
|
|
|
5.75%, 2/15/47
|
|
|
|
|
200
|
|
|
|
212,342
|
|
|
(AGC), 5.00%, 2/15/47
|
|
|
|
|
1,000
|
|
|
|
1,000,120
|
|
|
(AGM), 5.00%, 2/15/47
|
|
|
|
|
1,000
|
|
|
|
1,000,120
|
|
|
(NPFGC), 4.50%, 2/15/47
|
|
|
|
|
4,700
|
|
|
|
4,241,280
|
|
|
Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.00%, 11/15/34
|
|
|
|
|
800
|
|
|
|
816,592
|
|
|
Monroe County Industrial Development Corp., RB, Series A, 5.00%, 7/01/31
|
|
|
|
|
1,900
|
|
|
|
1,987,077
|
|
|
New
York City Industrial Development Agency, RB, PILOT:
|
|
|
|
|
|
|
|
|
|
|
|
CAB, Yankee Stadium Project, Series A (AGC), 5.92%, 3/01/42 (b)
|
|
|
|
|
1,960
|
|
|
|
369,558
|
|
|
CAB, Yankee Stadium Project, Series A (AGC), 5.95%, 3/01/45 (b)
|
|
|
|
|
1,500
|
|
|
|
235,170
|
|
|
Queens Baseball Stadium (AGC), 6.38%, 1/01/39
|
|
|
|
|
150
|
|
|
|
162,762
|
|
|
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39
|
|
|
|
|
3,000
|
|
|
|
2,614,650
|
|
|
Yankee Stadium (NPFGC), 4.75%, 3/01/46
|
|
|
|
|
1,500
|
|
|
|
1,381,110
|
|
|
New
York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC):
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 11/15/35
|
|
|
|
|
250
|
|
|
|
250,195
|
|
|
5.00%, 11/15/44
|
|
|
|
|
9,660
|
|
|
|
9,598,756
|
|
|
4.75%, 11/15/45
|
|
|
|
|
500
|
|
|
|
476,195
|
|
|
New
York Liberty Development Corp., Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
4 World Trade Center Project, 5.00%, 11/15/31
|
|
|
|
|
860
|
|
|
|
880,451
|
|
|
4 World Trade Center Project, 5.75%, 11/15/51
|
|
|
|
|
1,340
|
|
|
|
1,450,858
|
|
|
7 World Trade Center Project, Class 1, 4.00%, 9/15/35
|
|
|
|
|
4,260
|
|
|
|
3,841,498
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
New York (continued)
|
|
County/City/Special District/School District (concluded)
|
|
New
York Liberty Development Corp., Refunding RB (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
7 World Trade Center Project, Class 2, 5.00%, 9/15/43
|
|
|
|
$
|
1,670
|
|
|
$
|
1,672,221
|
|
|
7 World Trade Center Project, Class 3, 5.00%, 3/15/44
|
|
|
|
|
2,070
|
|
|
|
1,923,196
|
|
|
Second Priority, Bank of America Tower at One Bryant Park Project, 5.63%, 7/15/47
|
|
|
|
|
2,000
|
|
|
|
2,112,180
|
|
|
Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49
|
|
|
|
|
1,200
|
|
|
|
1,304,520
|
|
|
New
York State Dormitory Authority, RB, State University Dormitory Facilities, Series A, 5.00%, 7/01/39
|
|
|
|
|
750
|
|
|
|
772,012
|
|
|
New
York State Dormitory Authority, Refunding RB, School Districts Financing Program, Series A (AGM), 5.00%, 10/01/35
|
|
|
|
|
395
|
|
|
|
397,832
|
|
|
|
|
|
|
|
|
|
|
|
59,643,995
|
|
|
Education — 26.4%
|
|
|
|
|
|
|
|
|
|
|
|
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A (c)(d):
|
|
|
|
|
|
|
|
|
|
|
|
7.00%, 5/01/25
|
|
|
|
|
910
|
|
|
|
136,227
|
|
|
7.00%, 5/01/35
|
|
|
|
|
590
|
|
|
|
88,323
|
|
|
Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%,
10/01/40
|
|
|
|
|
1,100
|
|
|
|
1,084,853
|
|
|
Build NYC Resource Corp., RB, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
Bronx Charter School For Excellence Project, 5.50%, 4/01/43
|
|
|
|
|
450
|
|
|
|
446,063
|
|
|
Bronx Charter School For International Project, 5.00%, 4/15/33
|
|
|
|
|
900
|
|
|
|
844,650
|
|
|
City of Troy Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project, Series A, 5.13%, 9/01/40
|
|
|
|
|
3,240
|
|
|
|
3,292,747
|
|
|
Dutchess County Industrial Development Agency New York, RB, Bard College Civic Facility, Series A-2, 4.50%, 8/01/36
|
|
|
|
|
7,000
|
|
|
|
6,201,160
|
|
|
Madison County Industrial Development Agency New York, RB, Commons II LLC, Student Housing, Series A (CIFG), 5.00%, 6/01/33
|
|
|
|
|
275
|
|
|
|
266,434
|
|
|
Madison County New York Capital Resource Corp., Refunding RB, Colgate University Project, Series A, 4.50%, 7/01/39
|
|
|
|
|
135
|
|
|
|
131,867
|
|
|
Nassau County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 3/01/26
|
|
|
|
|
1,165
|
|
|
|
1,176,009
|
|
|
New
York City Trust for Cultural Resources, RB, Juilliard School, Series A, 5.00%, 1/01/39
|
|
|
|
|
750
|
|
|
|
779,737
|
|
|
New
York City Trust for Cultural Resources, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Carnegie Hall, Series A, 4.75%, 12/01/39
|
|
|
|
|
2,000
|
|
|
|
2,011,840
|
|
|
Museum of Modern Art, Series 1A, 5.00%, 4/01/31
|
|
|
|
|
1,000
|
|
|
|
1,080,790
|
|
|
New
York State Dormitory Authority, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Convent of the Sacred Heart (AGM), 5.25%, 11/01/24
|
|
|
|
|
155
|
|
|
|
168,381
|
|
|
Convent of the Sacred Heart (AGM), 5.63%, 11/01/32
|
|
|
|
|
750
|
|
|
|
801,097
|
|
|
Convent of the Sacred Heart (AGM), 5.75%, 11/01/40
|
|
|
|
|
210
|
|
|
|
224,729
|
|
|
Mount Sinai School of Medicine, 5.13%, 7/01/39
|
|
|
|
|
2,000
|
|
|
|
2,050,640
|
|
|
New York University, Series 1 (AMBAC), 5.50%, 7/01/40
|
|
|
|
|
1,440
|
|
|
|
1,582,387
|
|
|
New York University, Series A (AMBAC), 5.00%, 7/01/37
|
|
|
|
|
1,000
|
|
|
|
1,013,950
|
|
|
New York University, Series B, 5.00%, 7/01/37
|
|
|
|
|
1,250
|
|
|
|
1,314,200
|
|
|
Teachers College, 5.00%, 7/01/42
|
|
|
|
|
500
|
|
|
|
507,525
|
|
|
University of Rochester, Series A, 4.78%, 7/01/39 (e)
|
|
|
|
|
650
|
|
|
|
651,066
|
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
39
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
New York Municipal Income Trust (BNY)
(Percentages shown
are based on Net Assets)
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
New York (continued)
|
|
Education (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
New
York State Dormitory Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
University of Rochester, Series A, 5.13%, 7/01/39
|
|
|
|
$
|
850
|
|
|
$
|
880,404
|
|
|
University of Rochester, Series B, 5.00%, 7/01/39
|
|
|
|
|
500
|
|
|
|
505,800
|
|
|
Brooklyn Law School, 5.75%, 7/01/33
|
|
|
|
|
475
|
|
|
|
488,381
|
|
|
Cornell University, Series A, 5.00%, 7/01/40
|
|
|
|
|
1,000
|
|
|
|
1,046,330
|
|
|
Culinary Institute of America, 5.00%, 7/01/42
|
|
|
|
|
300
|
|
|
|
283,782
|
|
|
Fordham University, 4.00%, 7/01/30
|
|
|
|
|
555
|
|
|
|
520,485
|
|
|
New York University, Series A, 5.00%, 7/01/37
|
|
|
|
|
1,790
|
|
|
|
1,881,934
|
|
|
Rochester Institute of Technology, 5.00%, 7/01/42
|
|
|
|
|
1,790
|
|
|
|
1,837,865
|
|
|
Rochester Institute of Technology, 4.00%, 7/01/33
|
|
|
|
|
1,070
|
|
|
|
982,881
|
|
|
Rockefeller University, Series B, 4.00%, 7/01/38
|
|
|
|
|
1,835
|
|
|
|
1,711,358
|
|
|
Skidmore College, Series A, 5.00%, 7/01/27
|
|
|
|
|
190
|
|
|
|
201,983
|
|
|
Skidmore College, Series A, 5.00%, 7/01/28
|
|
|
|
|
75
|
|
|
|
79,003
|
|
|
Skidmore College, Series A, 5.25%, 7/01/29
|
|
|
|
|
85
|
|
|
|
90,191
|
|
|
Teachers College, 5.50%, 3/01/39
|
|
|
|
|
450
|
|
|
|
469,723
|
|
|
Third Generation Resolution, State University Educational Facilities, Series A, 5.00%, 5/15/29
|
|
|
|
|
2,000
|
|
|
|
2,117,960
|
|
|
Oneida County Local Development Corp., RB, Hamilton College Project:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 7/01/33
|
|
|
|
|
705
|
|
|
|
650,193
|
|
|
4.00%, 7/01/38
|
|
|
|
|
500
|
|
|
|
456,735
|
|
|
Orange County Funding Corp., Refunding RB, Mount State Mary College, Series A:
|
|
|
|
|
|
|
|
|
|
|
|
5.00%, 7/01/37
|
|
|
|
|
360
|
|
|
|
357,995
|
|
|
5.00%, 7/01/42
|
|
|
|
|
220
|
|
|
|
217,996
|
|
|
St.
Lawrence County Industrial Development Agency, RB, Clarkson University Project, 5.38%, 9/01/41
|
|
|
|
|
275
|
|
|
|
285,852
|
|
|
Suffolk County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, 5.00%, 3/01/26
|
|
|
|
|
1,000
|
|
|
|
1,007,040
|
|
|
Tompkins County Development Corp., RB, Ithaca College Project (AGM), 5.50%, 7/01/33
|
|
|
|
|
700
|
|
|
|
742,343
|
|
|
Westchester County Industrial Development Agency New York, RB, Windward School Civic Facility (Radian), 5.25%, 10/01/31
|
|
|
|
|
2,500
|
|
|
|
2,500,000
|
|
|
Yonkers Industrial Development Agency, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41
|
|
|
|
|
625
|
|
|
|
657,206
|
|
|
|
|
|
|
|
|
|
|
|
45,828,115
|
|
|
Health — 17.2%
|
|
|
|
|
|
|
|
|
|
|
|
Dutchess County Local Development Corp., Refunding RB, Health Quest System, Inc., Series A, 5.75%, 7/01/40
|
|
|
|
|
300
|
|
|
|
317,859
|
|
|
Genesee County Industrial Development Agency New York, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27
|
|
|
|
|
500
|
|
|
|
479,700
|
|
|
Monroe County Industrial Development Corp., RB, Rochester General Hospital Project, Series A, 5.00%, 12/01/32
|
|
|
|
|
240
|
|
|
|
240,338
|
|
|
Monroe County Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 8/15/40
|
|
|
|
|
1,650
|
|
|
|
1,720,191
|
|
|
Nassau County Local Economic Assistance Corp., Refunding RB, Winthrop University Hospital Association Project:
|
|
|
|
|
|
|
|
|
|
|
|
4.25%, 7/01/42
|
|
|
|
|
350
|
|
|
|
289,198
|
|
|
5.00%, 7/01/42
|
|
|
|
|
2,750
|
|
|
|
2,636,342
|
|
|
New
York State Dormitory Authority, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Hudson Valley Hospital (BHAC) (FHA), 5.00%, 8/15/36
|
|
|
|
|
750
|
|
|
|
753,795
|
|
|
New York State Association for Retarded Children, Inc., Series A, 6.00%, 7/01/32
|
|
|
|
|
500
|
|
|
|
539,365
|
|
|
New York State Association for Retarded Children, Inc., Series B (AMBAC), 6.00%, 7/01/32
|
|
|
|
|
200
|
|
|
|
211,592
|
|
|
New York University Hospital Center, Series A, 6.00%, 7/01/40
|
|
|
|
|
500
|
|
|
|
535,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
New York (continued)
|
|
Health (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
New
York State Dormitory Authority, RB (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
New York University Hospital Center, Series B, 5.63%, 7/01/37
|
|
|
|
$
|
530
|
|
|
$
|
542,005
|
|
|
North Shore-Long Island Jewish Health System, Series A, 5.50%, 5/01/37
|
|
|
|
|
1,775
|
|
|
|
1,848,396
|
|
|
North Shore-Long Island Jewish Health System, Series C, 4.25%, 5/01/39
|
|
|
|
|
750
|
|
|
|
648,510
|
|
|
North Shore-Long Island Jewish Health System, Series D, 4.25%, 5/01/39
|
|
|
|
|
1,100
|
|
|
|
981,189
|
|
|
North Shore-Long Island Jewish Health System, Series D, 5.00%, 5/01/39
|
|
|
|
|
320
|
|
|
|
322,458
|
|
|
New
York State Dormitory Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Miriam Osborn Memorial Home Association, 5.00%, 7/01/29
|
|
|
|
|
290
|
|
|
|
294,736
|
|
|
Mount Sinai Hospital, Series A, 5.00%, 7/01/26
|
|
|
|
|
1,385
|
|
|
|
1,459,374
|
|
|
New York University Hospital Center, Series A, 5.00%, 7/01/36
|
|
|
|
|
3,390
|
|
|
|
3,395,831
|
|
|
North Shore-Long Island Jewish Health System, Series E, 5.50%, 5/01/33
|
|
|
|
|
1,100
|
|
|
|
1,152,261
|
|
|
North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 5/01/32
|
|
|
|
|
1,750
|
|
|
|
1,767,780
|
|
|
Onondaga Civic Development Corp., Refunding RB, Saint Joseph’s Hospital Health Center Project:
|
|
|
|
|
|
|
|
|
|
|
|
4.50%, 7/01/32
|
|
|
|
|
3,225
|
|
|
|
2,817,618
|
|
|
5.00%, 7/01/42
|
|
|
|
|
540
|
|
|
|
483,214
|
|
|
Suffolk County Industrial Development Agency New York, Refunding RB, Jeffersons Ferry Project, 5.00%, 11/01/28
|
|
|
|
|
1,175
|
|
|
|
1,191,074
|
|
|
Westchester County Healthcare Corp. New York, Refunding RB, Senior Lien:
|
|
|
|
|
|
|
|
|
|
|
|
Series A, 5.00%, 11/01/30
|
|
|
|
|
2,500
|
|
|
|
2,548,900
|
|
|
Series B, 6.00%, 11/01/30
|
|
|
|
|
500
|
|
|
|
546,240
|
|
|
Westchester County Local Development Corp., Refunding RB, Kendal On Hudson Project:
|
|
|
|
|
|
|
|
|
|
|
|
4.00%, 1/01/23
|
|
|
|
|
650
|
|
|
|
640,692
|
|
|
5.00%, 1/01/28
|
|
|
|
|
675
|
|
|
|
670,862
|
|
|
5.00%, 1/01/34
|
|
|
|
|
875
|
|
|
|
845,635
|
|
|
|
|
|
|
|
|
|
|
|
29,880,395
|
|
|
Housing — 1.6%
|
|
|
|
|
|
|
|
|
|
|
|
New
York Mortgage Agency, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
48th Series, 3.70%, 10/01/38
|
|
|
|
|
360
|
|
|
|
291,175
|
|
|
Homeowner Mortgage, Series 97, AMT, 5.50%, 4/01/31
|
|
|
|
|
1,040
|
|
|
|
1,044,347
|
|
|
New
York State HFA, RB, M/F Housing, Series A, Highland Avenue Senior Apartments, Series A, AMT (SONYMA), 5.00%, 2/15/39
|
|
|
|
|
1,500
|
|
|
|
1,504,305
|
|
|
|
|
|
|
|
|
|
|
|
2,839,827
|
|
|
State — 7.1%
|
|
|
|
|
|
|
|
|
|
|
|
New
York City Transitional Finance Authority, BARB:
|
|
|
|
|
|
|
|
|
|
|
|
Series S-1, 4.00%, 7/15/42
|
|
|
|
|
1,575
|
|
|
|
1,322,653
|
|
|
Series S-2 (NPFGC), 4.25%, 1/15/34
|
|
|
|
|
1,700
|
|
|
|
1,632,527
|
|
|
New
York State Dormitory Authority, ERB, Series B, 5.75%, 3/15/36
|
|
|
|
|
600
|
|
|
|
671,250
|
|
|
New
York State Dormitory Authority, RB, Mental Health Services Facilities Improvement, Series B (AMBAC), 5.00%, 2/15/35
|
|
|
|
|
2,000
|
|
|
|
2,026,380
|
|
|
New
York State Dormitory Authority, Refunding RB, General Purpose Bonds:
|
|
|
|
|
|
|
|
|
|
|
|
Series A, 5.00%, 12/15/26
|
|
|
|
|
2,000
|
|
|
|
2,231,620
|
|
|
Series D, 5.00%, 2/15/34
|
|
|
|
|
500
|
|
|
|
521,875
|
|
|
New
York State Thruway Authority, RB, Transportation, Series A, 5.00%, 3/15/32
|
|
|
|
|
320
|
|
|
|
336,970
|
|
|
New
York State Thruway Authority, Refunding RB, Series A, 5.00%, 4/01/32
|
|
|
|
|
3,500
|
|
|
|
3,660,020
|
|
|
|
|
|
|
|
|
|
|
|
12,403,295
|
|
See Notes to Financial Statements.
|
40
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
New York Municipal Income Trust (BNY)
(Percentages shown
are based on Net Assets)
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
New York (concluded)
|
|
Transportation — 17.0%
|
|
|
|
|
|
|
|
|
|
|
|
Metropolitan Transportation Authority, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Series 2008C, 6.50%, 11/15/28
|
|
|
|
$
|
1,000
|
|
|
$
|
1,173,140
|
|
|
Series A, 5.00%, 11/15/43
|
|
|
|
|
2,000
|
|
|
|
2,006,000
|
|
|
Series D, 5.25%, 11/15/41
|
|
|
|
|
1,000
|
|
|
|
1,020,800
|
|
|
Series H, 5.00%, 11/15/25
|
|
|
|
|
325
|
|
|
|
354,504
|
|
|
Metropolitan Transportation Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Series D, 4.00%, 11/15/32
|
|
|
|
|
1,450
|
|
|
|
1,346,963
|
|
|
Series F, 5.00%, 11/15/30
|
|
|
|
|
2,530
|
|
|
|
2,632,819
|
|
|
Series F (AGM), 4.00%, 11/15/30
|
|
|
|
|
1,250
|
|
|
|
1,188,388
|
|
|
New
York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.00%, 12/15/41
|
|
|
|
|
5,675
|
|
|
|
5,775,674
|
|
|
New
York State Thruway Authority, RB, Series I, 5.00%, 1/01/27
|
|
|
|
|
2,000
|
|
|
|
2,174,440
|
|
|
New
York State Thruway Authority, Refunding RB, Series I:
|
|
|
|
|
|
|
|
|
|
|
|
General, 5.00%, 1/01/42
|
|
|
|
|
280
|
|
|
|
284,603
|
|
|
5.00%, 1/01/37
|
|
|
|
|
920
|
|
|
|
938,326
|
|
|
Port Authority of New York & New Jersey, RB, JFK International Air Terminal Special Project AMT (NPFGC):
|
|
|
|
|
|
|
|
|
|
|
|
Series 6, 6.25%, 12/01/13
|
|
|
|
|
1,000
|
|
|
|
1,008,070
|
|
|
Series 6, 5.75%, 12/01/22
|
|
|
|
|
6,000
|
|
|
|
6,141,360
|
|
|
LLC Project, Series 8, 6.00%, 12/01/42
|
|
|
|
|
1,000
|
|
|
|
1,105,890
|
|
|
Port Authority of New York & New Jersey, Refunding RB, 177th Series, AMT, 4.00%, 1/15/43
|
|
|
|
|
2,000
|
|
|
|
1,653,240
|
|
|
Triborough Bridge & Tunnel Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
CAB, Sub-Series A, 5.14%, 11/15/32 (b)
|
|
|
|
|
845
|
|
|
|
317,602
|
|
|
Series A, 5.00%, 11/15/30
|
|
|
|
|
250
|
|
|
|
263,030
|
|
|
Series B, 5.00%, 11/15/31
|
|
|
|
|
190
|
|
|
|
200,980
|
|
|
|
|
|
|
|
|
|
|
|
29,585,829
|
|
|
Utilities — 10.0%
|
|
|
|
|
|
|
|
|
|
|
|
Long Island Power Authority, RB:
|
|
|
|
|
|
|
|
|
|
|
|
Series A (AGM), 5.00%, 5/01/36
|
|
|
|
|
500
|
|
|
|
506,050
|
|
|
Series C (CIFG), 5.25%, 9/01/29
|
|
|
|
|
2,000
|
|
|
|
2,125,420
|
|
|
Long Island Power Authority, Refunding RB, Series A, 5.75%, 4/01/39
|
|
|
|
|
4,000
|
|
|
|
4,369,520
|
|
|
New
York City Municipal Water Finance Authority, RB, Series B, 5.00%, 6/15/36
|
|
|
|
|
750
|
|
|
|
769,598
|
|
|
New
York City Municipal Water Finance Authority, Refunding RB, Second General Resolution:
|
|
|
|
|
|
|
|
|
|
|
|
Series BB, 5.00%, 6/15/31
|
|
|
|
|
1,000
|
|
|
|
1,044,850
|
|
|
Series EE, 4.00%, 6/15/45
|
|
|
|
|
2,310
|
|
|
|
1,996,302
|
|
|
New
York City Water & Sewer System, Refunding RB, Series D, 5.00%, 6/15/39
|
|
|
|
|
5,000
|
|
|
|
5,079,950
|
|
|
New
York State Environmental Facilities Corp., Refunding RB, Revolving Funds, New York City Municipal Water, 5.00%, 6/15/36
|
|
|
|
|
350
|
|
|
|
369,306
|
|
|
Suffolk County Water Authority, Refunding RB, 3.00%, 6/01/25
|
|
|
|
|
1,160
|
|
|
|
1,095,550
|
|
|
|
|
|
|
|
|
|
|
|
17,356,546
|
|
|
Total Municipal Bonds in New York
|
|
|
|
|
|
|
|
|
225,567,798
|
|
|
|
|
Puerto Rico — 7.0%
|
|
Housing — 1.5%
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Housing Finance Authority, Refunding RB, Subordinate, Capital Fund Modernization, 5.13%,
12/01/27
|
|
|
|
|
2,500
|
|
|
|
2,575,800
|
|
|
State — 3.9%
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series D, 5.25%, 7/01/36
|
|
|
|
|
1,600
|
|
|
|
1,302,848
|
|
|
Puerto Rico Sales Tax Financing Corp., RB:
|
|
|
|
|
|
|
|
|
|
|
|
CAB, Series A, 6.40%, 8/01/32 (b)
|
|
|
|
|
1,685
|
|
|
|
509,055
|
|
|
First Sub-Series A, 5.75%, 8/01/37
|
|
|
|
|
2,000
|
|
|
|
1,956,720
|
|
|
First Sub-Series A (AGM), 5.00%, 8/01/40
|
|
|
|
|
810
|
|
|
|
733,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds
|
|
|
|
Par
(000)
|
|
Value
|
|
Puerto Rico (concluded)
|
|
State (concluded)
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., Refunding RB (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
CAB, Series A (NPFGC), 6.60%, 8/01/41 (b)
|
|
|
|
$
|
2,500
|
|
|
$
|
405,500
|
|
|
CAB, Series A (NPFGC), 6.65%, 8/01/43 (b)
|
|
|
|
|
2,500
|
|
|
|
351,325
|
|
|
Senior Series C, 5.25%, 8/01/40
|
|
|
|
|
1,520
|
|
|
|
1,456,570
|
|
|
|
|
|
|
|
|
|
|
|
6,715,384
|
|
|
Transportation — 1.1%
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Highway & Transportation Authority, Refunding RB, Series CC (AGM), 5.50%,
7/01/30
|
|
|
|
|
2,000
|
|
|
|
1,952,600
|
|
|
Utility — 0.5%
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%,
7/01/38
|
|
|
|
|
1,080
|
|
|
|
959,202
|
|
|
Total Municipal Bonds in Puerto Rico
|
|
|
|
|
|
|
|
|
12,202,986
|
|
|
Total Municipal Bonds — 136.7%
|
|
|
|
|
|
|
|
|
237,770,784
|
|
|
|
|
Municipal Bonds Transferred to
Tender Option Bond Trusts (f)
|
|
|
|
|
|
|
|
|
|
|
|
New York — 29.5%
|
|
County/City/Special District/School District — 4.9%
|
|
|
|
|
|
|
|
|
|
|
|
New
York City Transitional Finance Authority, RB, Future Tax Secured, Sub-Series D-1, 5.00%, 11/01/38
|
|
|
|
|
825
|
|
|
|
855,409
|
|
|
New
York Liberty Development Corp., Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
4 World Trade Center Project, 5.00%, 11/15/44 (g)
|
|
|
|
|
5,020
|
|
|
|
4,972,561
|
|
|
7 World Trade Center Project, Class 1, 5.00%, 9/15/40
|
|
|
|
|
2,610
|
|
|
|
2,674,154
|
|
|
|
|
|
|
|
|
|
|
|
8,502,124
|
|
|
Education — 0.5%
|
|
|
|
|
|
|
|
|
|
|
|
New York State Dormitory Authority, Refunding LRB, State University Dormitory Facilities, Series A, 5.00%,
7/01/42
|
|
|
|
|
900
|
|
|
|
918,135
|
|
|
Housing — 8.5%
|
|
|
|
|
|
|
|
|
|
|
|
New York Mortgage Agency, RB, 31st Series A, AMT, 5.30%, 10/01/31
|
|
|
|
|
14,680
|
|
|
|
14,687,193
|
|
|
State — 0.4%
|
|
|
|
|
|
|
|
|
|
|
|
New York City Transitional Finance Authority, BARB, Series S-3, 5.25%, 1/15/39
|
|
|
|
|
660
|
|
|
|
686,791
|
|
|
Transportation — 6.3%
|
|
|
|
|
|
|
|
|
|
|
|
Hudson New York Yards Infrastructure Corp., RB, Senior Series A, 5.75%, 2/15/47 (g)
|
|
|
|
|
1,250
|
|
|
|
1,327,019
|
|
|
New
York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43
|
|
|
|
|
6,495
|
|
|
|
6,748,463
|
|
|
New
York State Thruway Authority, Refunding RB, Series A, 5.00%, 3/15/31
|
|
|
|
|
1,180
|
|
|
|
1,249,337
|
|
|
Port Authority of New York & New Jersey, RB, Consolidated, 169th Series, AMT, 5.00%, 10/15/26
|
|
|
|
|
1,500
|
|
|
|
1,611,555
|
|
|
|
|
|
|
|
|
|
|
|
10,936,374
|
|
|
Utilities — 8.9%
|
|
|
|
|
|
|
|
|
|
|
|
New
York City Municipal Water Finance Authority, RB, Series A, 5.75%, 6/15/40
|
|
|
|
|
1,200
|
|
|
|
1,332,526
|
|
|
New
York City Municipal Water Finance Authority, Refunding RB:
|
|
|
|
|
|
|
|
|
|
|
|
Second General Resolution, Series BB, 5.00%, 6/15/44
|
|
|
|
|
3,511
|
|
|
|
3,592,884
|
|
|
Second General Resolution, Series HH, 5.00%, 6/15/32
|
|
|
|
|
5,310
|
|
|
|
5,584,740
|
|
|
Series A, 4.75%, 6/15/30
|
|
|
|
|
4,000
|
|
|
|
4,131,520
|
|
|
Series FF-2, 5.50%, 6/15/40
|
|
|
|
|
810
|
|
|
|
881,898
|
|
|
|
|
|
|
|
|
|
|
|
15,523,568
|
|
|
Total Municipal Bonds Transferred to
Tender Option Bond Trusts in New York
|
|
|
|
|
|
|
|
|
51,254,185
|
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
41
|
|
|
|
|
Schedule of Investments (continued)
|
BlackRock
New York Municipal Income Trust (BNY)
(Percentages shown
are based on Net Assets)
|
Municipal Bonds Transferred to
Tender
Option Bond Trusts (f)
|
|
|
|
Par
(000)
|
|
Value
|
|
Puerto Rico — 2.6%
|
|
State — 2.6%
|
|
|
|
|
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., Refunding RB, Series C, 5.00%, 8/01/40
|
|
|
|
$
|
5,000
|
|
|
$
|
4,617,500
|
|
|
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 32.1%
|
|
|
|
|
|
|
|
|
55,871,685
|
|
|
Total Long-Term Investments
(Cost — $299,797,327) — 168.8%
|
|
|
|
|
|
|
|
|
293,642,469
|
|
Short-Term
Securities
|
|
|
|
Shares
|
|
Value
|
|
BIF New York Municipal Money Fund, 0.00% (h)(i)
|
|
|
|
|
7,477,704
|
|
|
$
|
7,477,704
|
|
|
Total Short-Term Securities
(Cost — $7,477,704) — 4.3%
|
|
|
|
|
|
|
|
|
7,477,704
|
|
|
Total Investments (Cost — $307,275,031) — 173.1%
|
|
|
|
|
|
|
|
|
301,120,173
|
|
|
Liabilities in Excess of Other Assets — (0.6%)
|
|
|
|
|
|
|
|
|
(1,012,320
|
)
|
|
Liability for TOB Trust Certificates, Including Interest
|
|
|
|
|
|
|
|
|
|
|
|
Expense and Fees Payable — (18.2%)
|
|
|
|
|
|
|
|
|
(31,631,581
|
)
|
|
VMTP Shares, at Liquidation Value — (54.3%)
|
|
|
|
|
|
|
|
|
(94,500,000
|
)
|
|
Net Assets Applicable to Common Shares — 100.0%
|
|
|
|
|
|
|
|
$
|
173,976,272
|
|
Notes to Schedule of Investments
|
(a)
|
|
|
|
Variable rate security. Rate shown is as of report date.
|
|
(b)
|
|
|
|
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
|
|
(c)
|
|
|
|
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
|
|
(d)
|
|
|
|
Non-income producing security.
|
|
(e)
|
|
|
|
Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate
shown is as of report date.
|
|
(f)
|
|
|
|
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities 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 February 15,
2019 to November 15, 2019 is $3,300,813.
|
|
(h)
|
|
|
|
Investments in issuers considered to be an affiliate of the Trust during the year ended July 31, 2013, for purposes of Section 2(a)(3) of the 1940
Act, were as follows:
|
Affiliate
|
|
|
|
Shares Held at
July 31, 2012
|
|
Net
Activity
|
|
Shares Held at
July 31, 2013
|
|
Income
|
|
BIF New York Municipal Money Fund
|
|
|
|
344,945
|
|
7,132,759
|
|
7,477,704
|
|
$197
|
|
(i)
|
|
|
|
Represents the current yield as of report date.
|
|
|
|
|
|
For
Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more
widely recognized market indexes or rating group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this
report, which may combine such sector sub-classifications for reporting ease.
|
|
•
|
|
|
|
Fair
Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized
into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
|
|
|
•
|
|
|
|
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to
access
|
|
|
•
|
|
|
|
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active,
quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or
other market-corroborated inputs)
|
|
|
•
|
|
|
|
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available
(including the Trust’s own assumptions used in determining the fair value of investments)
|
|
|
|
|
|
The
hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for
instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases,
for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value
measurement in its entirety.
|
|
|
|
|
|
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. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not
necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation
of investments, please refer to Note 2 of the Notes to Financial Statements.
|
|
|
|
|
|
The
following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of July 31, 2013:
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments
1
|
|
|
|
|
—
|
|
|
$
|
293,642,469
|
|
|
|
—
|
|
|
$
|
293,642,469
|
|
|
Short-Term Securities
|
|
|
|
$
|
7,477,704
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,477,704
|
|
|
Total
|
|
|
|
$
|
7,477,704
|
|
|
$
|
293,642,469
|
|
|
|
—
|
|
|
$
|
301,120,173
|
|
|
|
1
|
See above Schedule of Investments for values in each sector.
|
See Notes to Financial Statements.
|
42
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Schedule of Investments (concluded)
|
BlackRock
New York Municipal Income Trust (BNY)
|
|
|
|
|
|
Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As
of July 31, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
$
|
945,419
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
945,419
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOB trust certificates
|
|
|
|
|
—
|
|
|
$
|
(31,620,177
|
)
|
|
|
—
|
|
|
|
(31,620,177
|
)
|
|
VMTP Shares
|
|
|
|
|
—
|
|
|
|
(94,500,000
|
)
|
|
|
—
|
|
|
|
(94,500,000
|
)
|
|
Total
|
|
|
|
$
|
945,419
|
|
|
$
|
(126,120,177
|
)
|
|
|
—
|
|
|
$
|
(125,174,758
|
)
|
|
|
|
|
|
There were no transfers between levels during the year ended July 31, 2013.
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
43
|
|
|
|
|
Statements of Assets and Liabilities
|
|
July
31, 2013
|
|
|
|
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
—
unaffiliated
1
|
|
|
|
$
|
782,215,730
|
|
|
$
|
101,137,461
|
|
|
$
|
158,044,586
|
|
|
$
|
2,281,618,987
|
|
|
$
|
180,530,142
|
|
|
$
|
293,642,469
|
|
|
Investments
at
value
—
affiliated
2
|
|
|
|
|
1,269,184
|
|
|
|
2,293,772
|
|
|
|
4,710,703
|
|
|
|
55,145,313
|
|
|
|
4,818,896
|
|
|
|
7,477,704
|
|
|
Cash
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
945,419
|
|
|
Interest
receivable
|
|
|
|
|
11,742,491
|
|
|
|
1,184,552
|
|
|
|
1,977,802
|
|
|
|
25,856,589
|
|
|
|
1,964,167
|
|
|
|
3,703,600
|
|
|
Investments
sold
receivable
|
|
|
|
|
—
|
|
|
|
61,063
|
|
|
|
1,450,554
|
|
|
|
5,150
|
|
|
|
305,341
|
|
|
|
1,311,679
|
|
|
Deferred
offering
costs
|
|
|
|
|
129,347
|
|
|
|
—
|
|
|
|
160,242
|
|
|
|
852,154
|
|
|
|
80,721
|
|
|
|
94,940
|
|
|
Prepaid
expenses
|
|
|
|
|
11,400
|
|
|
|
2,951
|
|
|
|
42,395
|
|
|
|
11,060
|
|
|
|
4,101
|
|
|
|
6,890
|
|
|
Total
assets
|
|
|
|
|
795,368,152
|
|
|
|
104,679,799
|
|
|
|
166,386,282
|
|
|
|
2,363,489,253
|
|
|
|
187,703,368
|
|
|
|
307,182,701
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued
Liabilities
|
|
Bank
overdraft
|
|
|
|
|
4,413
|
|
|
|
2,371
|
|
|
|
3,855
|
|
|
|
35,623
|
|
|
|
3,933
|
|
|
|
—
|
|
|
TOB
trust
payable
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,000,000
|
|
|
|
36,975,000
|
|
|
|
590,000
|
|
|
|
4,935,000
|
|
|
Investments
purchased
payable
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,284,326
|
|
|
|
7,667,101
|
|
|
|
—
|
|
|
|
954,526
|
|
|
Income
dividends
payable
—
Common
Shares
|
|
|
|
|
2,476,617
|
|
|
|
42,604
|
|
|
|
485,240
|
|
|
|
6,609,897
|
|
|
|
575,009
|
|
|
|
891,085
|
|
|
Investment
advisory
fees
payable
|
|
|
|
|
397,103
|
|
|
|
44,476
|
|
|
|
83,831
|
|
|
|
817,252
|
|
|
|
95,546
|
|
|
|
156,884
|
|
|
Interest
expense
and
fees
payable
|
|
|
|
|
79,288
|
|
|
|
239
|
|
|
|
14,175
|
|
|
|
96,738
|
|
|
|
6,038
|
|
|
|
11,404
|
|
|
Officer’s
and
Trustees’
fees
payable
|
|
|
|
|
68,209
|
|
|
|
8,876
|
|
|
|
16,721
|
|
|
|
21,045
|
|
|
|
19,379
|
|
|
|
30,195
|
|
|
Offering
costs
payable
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
495,432
|
|
|
|
—
|
|
|
|
—
|
|
|
Other
accrued
expenses
payable
|
|
|
|
|
113,753
|
|
|
|
62,357
|
|
|
|
57,096
|
|
|
|
230,837
|
|
|
|
61,338
|
|
|
|
107,158
|
|
|
Total
accrued
liabilities
|
|
|
|
|
3,139,383
|
|
|
|
160,923
|
|
|
|
4,945,244
|
|
|
|
52,948,925
|
|
|
|
1,351,243
|
|
|
|
7,086,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Liabilities
|
|
TOB
trust
certificates
|
|
|
|
|
158,655,348
|
|
|
|
280,000
|
|
|
|
34,096,156
|
|
|
|
238,704,971
|
|
|
|
17,302,334
|
|
|
|
31,620,177
|
|
|
RVMTP
Shares,
at
liquidation
value
of
$5,000,000
per
share
3,4
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
750,000,000
|
|
|
|
—
|
|
|
|
—
|
|
|
VMTP
Shares,
at
liquidation
value
of
$100,000
per
share
3,4
|
|
|
|
|
171,300,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
59,100,000
|
|
|
|
94,500,000
|
|
|
VRDP
Shares,
at
liquidation
value
of
$100,000
per
share
3,4
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
34,200,000
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total
other
liabilities
|
|
|
|
|
329,955,348
|
|
|
|
280,000
|
|
|
|
68,296,156
|
|
|
|
988,704,971
|
|
|
|
76,402,334
|
|
|
|
126,120,177
|
|
|
Total
liabilities
|
|
|
|
|
333,094,731
|
|
|
|
440,923
|
|
|
|
73,241,400
|
|
|
|
1,041,653,896
|
|
|
|
77,753,577
|
|
|
|
133,206,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMPS
at
Redemption
Value
|
|
$25,000
per
share
liquidation
preference,
plus
unpaid
dividends
3,4
|
|
|
|
|
—
|
|
|
|
19,100,154
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Net
Assets
Applicable
to
Common
Shareholders
|
|
|
|
$
|
462,273,421
|
|
|
$
|
85,138,722
|
|
|
$
|
93,144,882
|
|
|
$
|
1,321,835,357
|
|
|
$
|
109,949,791
|
|
|
$
|
173,976,272
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets
Applicable
to
Common
Shareholders
Consist
of
|
|
Paid-in
capital
5,6,7
|
|
|
|
$
|
447,224,603
|
|
|
$
|
80,158,463
|
|
|
$
|
95,072,265
|
|
|
$
|
1,673,075,256
|
|
|
$
|
108,797,748
|
|
|
$
|
183,199,654
|
|
|
Undistributed
(distributions
in
excess
of)
net
investment
income
|
|
|
|
|
5,714,846
|
|
|
|
3,364,492
|
|
|
|
643,833
|
|
|
|
(5,713,373
|
)
|
|
|
1,753,402
|
|
|
|
3,133,594
|
|
|
Accumulated
net
realized
loss
|
|
|
|
|
(21,293,777
|
)
|
|
|
(734,726
|
)
|
|
|
(8,694,613
|
)
|
|
|
(53,524,788
|
)
|
|
|
(1,306,407
|
)
|
|
|
(6,202,118
|
)
|
|
Net
unrealized
appreciation/depreciation
|
|
|
|
|
30,627,749
|
|
|
|
2,350,493
|
|
|
|
6,123,397
|
|
|
|
(292,001,738
|
)
|
|
|
705,048
|
|
|
|
(6,154,858
|
)
|
|
Net
Assets
Applicable
to
Common
Shareholders
|
|
|
|
$
|
462,273,421
|
|
|
$
|
85,138,722
|
|
|
$
|
93,144,882
|
|
|
$
|
1,321,835,357
|
|
|
$
|
109,949,791
|
|
|
$
|
173,976,272
|
|
|
Net
asset
value
per
Common
Share
|
|
|
|
$
|
14.50
|
|
|
$
|
15.31
|
|
|
$
|
13.89
|
|
|
$
|
18.75
|
|
|
$
|
14.36
|
|
|
$
|
13.47
|
|
|
|
|
1
Investments
at
cost
—
unaffiliated
|
|
|
|
$
|
751,587,981
|
|
|
$
|
98,786,968
|
|
|
$
|
151,921,189
|
|
|
$
|
2,573,620,725
|
|
|
$
|
179,825,094
|
|
|
$
|
299,797,327
|
|
|
2
Investments
at
cost
—
affiliated
|
|
|
|
$
|
1,269,184
|
|
|
$
|
2,293,772
|
|
|
$
|
4,710,703
|
|
|
$
|
55,145,313
|
|
|
$
|
4,818,896
|
|
|
$
|
7,477,704
|
|
|
3
Preferred
Shares
outstanding,
par
value
$
0.001
per
share
|
|
|
|
|
1,713
|
|
|
|
764
|
|
|
|
342
|
|
|
|
150
|
|
|
|
591
|
|
|
|
945
|
|
|
4
Preferred
Shares
authorized
|
|
|
|
|
unlimited
|
|
|
|
unlimited
|
|
|
|
unlimited
|
|
|
|
unlimited
|
|
|
|
unlimited
|
|
|
|
unlimited
|
|
|
5
Par
value
per
share
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.
|
44
|
ANNUAL REPORT
|
JULY 31, 2013
|
Year
Ended July 31, 2013
|
|
|
|
BlackRock
California
Municipal
Income Trust
(BFZ)
|
|
BlackRock
Florida
Municipal 2020
Term Trust
(BFO)
|
|
BlackRock
Municipal
Income
Investment
Trust
(BBF)
|
|
BlackRock
Municipal
Target
Term Trust
1
(BTT)
|
|
BlackRock
New Jersey
Municipal
Income Trust
(BNJ)
|
|
BlackRock
New York
Municipal
Income Trust
(BNY)
|
|
Investment
Income
|
|
Interest
|
|
|
|
$
|
36,842,999
|
|
|
$
|
4,581,691
|
|
|
$
|
7,674,943
|
|
|
$
|
70,273,279
|
|
|
$
|
8,956,197
|
|
|
$
|
14,932,962
|
|
|
Income
—
affiliated
|
|
|
|
|
17
|
|
|
|
1,887
|
|
|
|
317
|
|
|
|
3,020
|
|
|
|
2
|
|
|
|
197
|
|
|
Total
income
|
|
|
|
|
36,843,016
|
|
|
|
4,583,578
|
|
|
|
7,675,260
|
|
|
|
70,276,299
|
|
|
|
8,956,199
|
|
|
|
14,933,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
Investment
advisory
|
|
|
|
|
4,963,238
|
|
|
|
615,206
|
|
|
|
1,048,543
|
|
|
|
8,474,988
|
|
|
|
1,171,190
|
|
|
|
1,967,120
|
|
|
Professional
|
|
|
|
|
59,687
|
|
|
|
51,818
|
|
|
|
43,168
|
|
|
|
198,845
|
|
|
|
49,158
|
|
|
|
64,714
|
|
|
Accounting
services
|
|
|
|
|
42,057
|
|
|
|
23,480
|
|
|
|
35,794
|
|
|
|
213,434
|
|
|
|
37,746
|
|
|
|
93,724
|
|
|
Liquidity
fees
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
306,238
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Officer
and
Trustees
|
|
|
|
|
58,502
|
|
|
|
9,072
|
|
|
|
11,523
|
|
|
|
170,388
|
|
|
|
12,079
|
|
|
|
20,753
|
|
|
Transfer
agent
|
|
|
|
|
43,053
|
|
|
|
27,230
|
|
|
|
21,388
|
|
|
|
69,102
|
|
|
|
24,066
|
|
|
|
30,223
|
|
|
Custodian
|
|
|
|
|
36,642
|
|
|
|
10,136
|
|
|
|
11,648
|
|
|
|
95,284
|
|
|
|
12,498
|
|
|
|
18,608
|
|
|
Registration
|
|
|
|
|
10,415
|
|
|
|
8,670
|
|
|
|
8,668
|
|
|
|
49,103
|
|
|
|
8,743
|
|
|
|
8,831
|
|
|
Printing
|
|
|
|
|
5,568
|
|
|
|
4,256
|
|
|
|
9,374
|
|
|
|
27,333
|
|
|
|
10,676
|
|
|
|
46
|
|
|
Remarketing
fees
on
Preferred
Shares
|
|
|
|
|
—
|
|
|
|
38,852
|
|
|
|
34,675
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Organization
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
33,000
|
|
|
|
—
|
|
|
|
—
|
|
|
Miscellaneous
|
|
|
|
|
71,778
|
|
|
|
28,818
|
|
|
|
49,311
|
|
|
|
69,942
|
|
|
|
60,557
|
|
|
|
58,815
|
|
|
Total
expenses
excluding
interest
expense,
fees
and
amortization
of
offering
costs
|
|
|
|
|
5,290,940
|
|
|
|
817,538
|
|
|
|
1,580,330
|
|
|
|
9,401,419
|
|
|
|
1,386,713
|
|
|
|
2,262,834
|
|
|
Interest
expense,
fees
and
amortization
of
offering
costs
2
|
|
|
|
|
3,164,376
|
|
|
|
1,900
|
|
|
|
364,583
|
|
|
|
5,208,668
|
|
|
|
827,928
|
|
|
|
1,388,930
|
|
|
Total
expenses
|
|
|
|
|
8,455,316
|
|
|
|
819,438
|
|
|
|
1,944,913
|
|
|
|
14,610,087
|
|
|
|
2,214,641
|
|
|
|
3,651,764
|
|
|
Less
fees
waived
by
Manager
|
|
|
|
|
(42,198
|
)
|
|
|
(1,198
|
)
|
|
|
(801
|
)
|
|
|
(9,298
|
)
|
|
|
(3,095
|
)
|
|
|
(5,123
|
)
|
|
Total
expenses
after
fees
waived
|
|
|
|
|
8,413,118
|
|
|
|
818,240
|
|
|
|
1,944,112
|
|
|
|
14,600,789
|
|
|
|
2,211,546
|
|
|
|
3,646,641
|
|
|
Net
investment
income
|
|
|
|
|
28,429,898
|
|
|
|
3,765,338
|
|
|
|
5,731,148
|
|
|
|
55,675,510
|
|
|
|
6,744,653
|
|
|
|
11,286,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized
and
Unrealized
Gain
(Loss)
|
|
Net
realized
gain
(loss)
from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
1,608,507
|
|
|
|
74,831
|
|
|
|
424,737
|
|
|
|
(53,519,716
|
)
|
|
|
739,146
|
|
|
|
392,921
|
|
|
Financial
futures
contracts
|
|
|
|
|
802,528
|
|
|
|
—
|
|
|
|
363,361
|
|
|
|
—
|
|
|
|
418,174
|
|
|
|
128,540
|
|
|
|
|
|
|
|
2,411,035
|
|
|
|
74,831
|
|
|
|
788,098
|
|
|
|
(53,519,716
|
)
|
|
|
1,157,320
|
|
|
|
521,461
|
|
|
Net
change
in
unrealized
appreciation/depreciation
on
investments
|
|
|
|
|
(59,039,937
|
)
|
|
|
(3,636,735
|
)
|
|
|
(14,231,581
|
)
|
|
|
(292,001,738
|
)
|
|
|
(14,524,962
|
)
|
|
|
(27,196,710
|
)
|
|
Total
realized
and
unrealized
loss
|
|
|
|
|
(56,628,902
|
)
|
|
|
(3,561,904
|
)
|
|
|
(13,443,483
|
)
|
|
|
(345,521,454
|
)
|
|
|
(13,367,642
|
)
|
|
|
(26,675,249
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
to
AMPS
Shareholders
From
|
|
Net
investment
income
|
|
|
|
|
—
|
|
|
|
(77,727
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Net
Increase
(Decrease)
in
Net
Assets
Applicable
to
Common
Shareholders
Resulting
from
Operations
|
|
|
|
$
|
(28,199,004
|
)
|
|
$
|
125,707
|
|
|
$
|
(7,712,335
|
)
|
|
$
|
(289,845,944
|
)
|
|
$
|
(6,622,989
|
)
|
|
$
|
(15,388,731
|
)
|
|
1
|
|
For the period August 30, 2012 (commencement
of operations) to July 31, 2013.
|
|
2
|
|
Related to TOBs, VMTP Shares, RVMTP Shares
and/or VRDP Shares.
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
45
|
|
|
|
|
Statements of Changes in Net Assets
|
|
|
|
|
|
|
BlackRock
California
Municipal Income
Trust
(BFZ)
|
|
|
|
BlackRock
Florida
Municipal 2020
Term Trust (BFO)
|
|
|
|
|
|
|
Year
Ended July 31,
|
|
|
|
Year
Ended July 31,
|
|
Increase
(Decrease) in Net Assets Applicable to Common Shareholders:
|
|
|
|
2013
|
|
2012
|
|
|
|
2013
|
|
2012
|
|
Operations
|
|
|
|
Net
investment income
|
|
|
|
$
|
28,429,898
|
|
|
$
|
30,391,363
|
|
|
|
|
|
|
$
|
3,765,338
|
|
|
$
|
4,751,324
|
|
|
Net
realized gain
|
|
|
|
|
2,411,035
|
|
|
|
6,685,430
|
|
|
|
|
|
|
|
74,831
|
|
|
|
15,599
|
|
|
Net
change in unrealized appreciation/depreciation
|
|
|
|
|
(59,039,937
|
)
|
|
|
70,149,440
|
|
|
|
|
|
|
|
(3,636,735
|
)
|
|
|
5,366,658
|
|
|
Dividends
to AMPS shareholders from net investment
income
|
|
|
|
|
—
|
|
|
|
(264,801
|
)
|
|
|
|
|
|
|
(77,727
|
)
|
|
|
(103,786
|
)
|
|
Net
increase (decrease) in net assets applicable
to Common Shareholders resulting from operations
|
|
|
|
|
(28,199,004
|
)
|
|
|
106,961,432
|
|
|
|
|
|
|
|
125,707
|
|
|
|
10,029,795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
to
Common
Shareholders
From
1
|
|
|
|
Net
investment income
|
|
|
|
|
(29,708,677
|
)
|
|
|
(29,300,306
|
)
|
|
|
|
|
|
|
(4,238,341
|
)
|
|
|
(3,889,885
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Share
Transactions
|
|
|
|
Reinvestment
of common dividends
|
|
|
|
|
603,432
|
|
|
|
171,858
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets
Applicable
to
Common
Shareholders
|
|
|
|
Total
increase (decrease) in net assets applicable
to Common Shareholders
|
|
|
|
|
(57,304,249
|
)
|
|
|
77,832,984
|
|
|
|
|
|
|
|
(4,112,634
|
)
|
|
|
6,139,910
|
|
|
Beginning
of year
|
|
|
|
|
519,577,670
|
|
|
|
441,744,686
|
|
|
|
|
|
|
|
89,251,356
|
|
|
|
83,111,446
|
|
|
End
of year
|
|
|
|
$
|
462,273,421
|
|
|
$
|
519,577,670
|
|
|
|
|
|
|
$
|
85,138,722
|
|
|
$
|
89,251,356
|
|
|
Undistributed
net investment income
|
|
|
|
$
|
5,714,846
|
|
|
$
|
6,917,974
|
|
|
|
|
|
|
$
|
3,364,492
|
|
|
$
|
4,663,204
|
|
|
1
|
|
Dividends are determined in accordance
with federal income tax regulations.
|
|
|
|
|
|
BlackRock
Municipal Income
Investment Trust (BBF)
|
|
|
|
BlackRock
Municipal Target
Term Trust (BTT)
|
|
|
|
|
|
|
Year
Ended July 31,
|
|
|
|
Period
August
30, 2012
1
to
July 31, 2013
|
Increase
(Decrease) in Net Assets Applicable to Common Shareholders:
|
|
|
|
2013
|
|
2012
|
|
|
|
|
Operations
|
|
Net
investment
income
|
|
|
|
$
|
5,731,148
|
|
|
$
|
5,791,300
|
|
|
|
|
|
|
$
|
55,675,510
|
|
|
Net
realized
gain
(loss)
|
|
|
|
|
788,098
|
|
|
|
1,359,326
|
|
|
|
|
|
|
|
(53,519,716
|
)
|
|
Net
change
in
unrealized
appreciation/depreciation
|
|
|
|
|
(14,231,581
|
)
|
|
|
15,725,171
|
|
|
|
|
|
|
|
(292,001,738
|
)
|
|
Dividends
to
AMPS
shareholders
from
net
investment
income
|
|
|
|
|
—
|
|
|
|
(17,731
|
)
|
|
|
|
|
|
|
—
|
|
|
Net
increase
(decrease)
in
net
assets
applicable
to
Common
Shareholders
resulting
from
operations
|
|
|
|
|
(7,712,335
|
)
|
|
|
22,858,066
|
|
|
|
|
|
|
|
(289,845,944
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
and
Distributions
to
Common
Shareholders
From
2
|
|
|
|
Net
investment
income
|
|
|
|
|
(5,822,394
|
)
|
|
|
(6,018,632
|
)
|
|
|
|
|
|
|
(61,454,151
|
)
|
|
Tax
return
of
capital
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
(7,606,056
|
)
|
|
Decrease
in
net
assets
resulting
from
dividends
and
distributions
to
Common
Shareholders
|
|
|
|
|
(5,822,394
|
)
|
|
|
(6,018,632
|
)
|
|
|
|
|
|
|
(69,060,207
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Share
Transactions
|
|
|
|
Net
proceeds
from
the
issuance
of
shares
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
1,477,804,008
|
|
|
Net
proceeds
from
the
underwriter’s
over
allotment
option
exercised
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
202,937,500
|
|
|
Reinvestment
of
common
dividends
|
|
|
|
|
52,510
|
|
|
|
62,151
|
|
|
|
|
|
|
|
—
|
|
|
Net
increase
in
net
assets
derived
from
capital
share
transactions
|
|
|
|
|
52,510
|
|
|
|
62,151
|
|
|
|
|
|
|
|
1,680,741,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets
Applicable
to
Common
Shareholders
|
|
|
|
Total
increase
(decrease)
in
net
assets
applicable
to
Common
Shareholders
|
|
|
|
|
(13,482,219
|
)
|
|
|
16,901,585
|
|
|
|
|
|
|
|
1,321,835,357
|
|
|
Beginning
of
period
|
|
|
|
|
106,627,101
|
|
|
|
89,725,516
|
|
|
|
|
|
|
|
—
|
|
|
End
of
period
|
|
|
|
$
|
93,144,882
|
|
|
$
|
106,627,101
|
|
|
|
|
|
|
$
|
1,321,835,357
|
|
|
Undistributed
(distributions
in
excess
of)
net
investment
income
|
|
|
|
$
|
643,833
|
|
|
$
|
711,852
|
|
|
|
|
|
|
$
|
(5,713,373
|
)
|
|
1
|
|
Commencement of operations.
|
|
2
|
|
Dividends are determined in accordance
with federal income tax regulations.
|
See Notes to Financial Statements.
|
46
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Statements of Changes in Net Assets
|
|
|
|
|
|
|
BlackRock
New Jersey
Municipal Income
Trust (BNJ)
|
|
|
|
BlackRock
New York
Municipal Income
Trust (BNY)
|
|
|
|
|
|
|
Year
Ended July 31,
|
|
|
|
Year
Ended July 31,
|
|
Increase
(Decrease) in Net Assets Applicable to Common Shareholders:
|
|
|
|
2013
|
|
2012
|
|
|
|
2013
|
|
2012
|
|
Operations
|
|
|
|
Net
investment
income
|
|
|
|
$
|
6,744,653
|
|
|
$
|
7,279,409
|
|
|
|
|
|
|
$
|
11,286,518
|
|
|
$
|
11,927,277
|
|
|
Net
realized
gain
(loss)
|
|
|
|
|
1,157,320
|
|
|
|
(396,512
|
)
|
|
|
|
|
|
|
521,461
|
|
|
|
(156,391
|
)
|
|
Net
change
in
unrealized
appreciation/depreciation
|
|
|
|
|
(14,524,962
|
)
|
|
|
16,446,899
|
|
|
|
|
|
|
|
(27,196,710
|
)
|
|
|
22,413,217
|
|
|
Dividends
to
AMP
shareholders
from
net
investment
income
|
|
|
|
|
—
|
|
|
|
(90,161
|
)
|
|
|
|
|
|
|
—
|
|
|
|
(143,845
|
)
|
|
Net
increase
(decrease)
in
net
assets
applicable
to
Common
Shareholders
resulting
from
operations
|
|
|
|
|
(6,622,989
|
)
|
|
|
23,239,635
|
|
|
|
|
|
|
|
(15,388,731
|
)
|
|
|
34,040,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends
to
Common
Shareholders
From
1
|
|
|
|
Net
investment
income
|
|
|
|
|
(7,215,408
|
)
|
|
|
(7,272,642
|
)
|
|
|
|
|
|
|
(11,222,319
|
)
|
|
|
(12,727,781
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Share
Transactions
|
|
|
|
Reinvestment
of
common
dividends
|
|
|
|
|
291,605
|
|
|
|
303,612
|
|
|
|
|
|
|
|
567,300
|
|
|
|
714,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets
Applicable
to
Common
Shareholders
|
|
|
|
Total
increase
(decrease)
in
net
assets
applicable
to
Common
Shareholders
|
|
|
|
|
(13,546,792
|
)
|
|
|
16,270,605
|
|
|
|
|
|
|
|
(26,043,750
|
)
|
|
|
22,027,109
|
|
|
Beginning
of
year
|
|
|
|
|
123,496,583
|
|
|
|
107,225,978
|
|
|
|
|
|
|
|
200,020,022
|
|
|
|
177,992,913
|
|
|
End
of
year
|
|
|
|
$
|
109,949,791
|
|
|
$
|
123,496,583
|
|
|
|
|
|
|
$
|
173,976,272
|
|
|
$
|
200,020,022
|
|
|
Undistributed
net
investment
income
|
|
|
|
$
|
1,753,402
|
|
|
$
|
2,176,352
|
|
|
|
|
|
|
$
|
3,133,594
|
|
|
$
|
3,020,454
|
|
|
1
|
|
Dividends are determined in accordance
with federal income tax regulations.
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
47
|
Year
Ended July 31, 2013
|
|
|
|
BlackRock
California
Municipal Income
Trust (BFZ)
|
|
BlackRock
Municipal Income
Investment Trust
(BBF)
|
|
BlackRock
Municipal Target
Term
Trust
1
(BTT)
|
|
BlackRock
New Jersey
Municipal
Income Trust
(BNJ)
|
|
BlackRock
New York
Municipal
Income Trust
(BNY)
|
|
Cash
Provided
by
(Used
for)
Operating
Activities
|
|
Net
decrease
in
net
assets
resulting
from
operations,
excluding
dividends
to
AMPS
Shareholders
|
|
|
|
$
|
(28,199,004
|
)
|
|
$
|
(7,712,335
|
)
|
|
$
|
(289,845,944
|
)
|
|
$
|
(6,622,989
|
)
|
|
$
|
(15,388,731
|
)
|
|
Adjustments
to
reconcile
net
decrease
in
net
assets
resulting
from
operations
to
net
cash
provided
by
(used
for)
operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase)
decrease
in
interest
receivable
|
|
|
|
|
257,615
|
|
|
|
43,520
|
|
|
|
(25,856,589
|
)
|
|
|
(79,889
|
)
|
|
|
(277,609
|
)
|
|
(Increase)
decrease
in
prepaid
expenses
|
|
|
|
|
5,811
|
|
|
|
(36,515
|
)
|
|
|
(11,060
|
)
|
|
|
2,526
|
|
|
|
4,152
|
|
|
Increase
(decrease)
in
investment
advisory
fees
payable
|
|
|
|
|
(12,412
|
)
|
|
|
(3,535
|
)
|
|
|
817,252
|
|
|
|
(1,223
|
)
|
|
|
(8,386
|
)
|
|
Increase
(decrease)
in
interest
expense
and
fees
payable
|
|
|
|
|
(22,354
|
)
|
|
|
(1,902
|
)
|
|
|
96,738
|
|
|
|
1,469
|
|
|
|
(1,924
|
)
|
|
Increase
(decrease)
in
other
accrued
expenses
payable
|
|
|
|
|
(42,021
|
)
|
|
|
(64,019
|
)
|
|
|
230,837
|
|
|
|
1,871
|
|
|
|
26,308
|
|
|
Increase
in
Officer’s
and
Trustees’
fees
payable
|
|
|
|
|
4,299
|
|
|
|
1,337
|
|
|
|
21,045
|
|
|
|
315
|
|
|
|
1,733
|
|
|
Net
realized
and
unrealized
gain
on
investments
|
|
|
|
|
57,431,430
|
|
|
|
13,813,351
|
|
|
|
345,521,454
|
|
|
|
13,785,816
|
|
|
|
26,803,789
|
|
|
Amortization
of
premium
and
accretion
of
discount
on
investments
|
|
|
|
|
2,439,331
|
|
|
|
544,045
|
|
|
|
4,878,384
|
|
|
|
190,352
|
|
|
|
603,285
|
|
|
Amortization
of
deferred
offering
costs
|
|
|
|
|
72,870
|
|
|
|
23,595
|
|
|
|
27,196
|
|
|
|
43,962
|
|
|
|
52,955
|
|
|
Proceeds
from
sales
of
long-term
investments
|
|
|
|
|
195,540,834
|
|
|
|
57,636,654
|
|
|
|
807,477,869
|
|
|
|
17,519,790
|
|
|
|
77,720,866
|
|
|
Purchases
of
long-term
investments
|
|
|
|
|
(201,484,325
|
)
|
|
|
(57,595,635
|
)
|
|
|
(3,431,834,743
|
)
|
|
|
(22,646,857
|
)
|
|
|
(75,310,493
|
)
|
|
Net
proceeds
from
sales
(purchases)
of
short-term
securities
|
|
|
|
|
6,684,094
|
|
|
|
(3,078,934
|
)
|
|
|
(55,145,313
|
)
|
|
|
(2,489,540
|
)
|
|
|
(6,162,759
|
)
|
|
Cash
provided
by
(used
for)
operating
activities
|
|
|
|
|
32,676,168
|
|
|
|
3,569,627
|
|
|
|
(2,643,622,874
|
)
|
|
|
(294,397
|
)
|
|
|
8,063,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Provided
by
(Used
for)
Financing
Activities
|
|
Cash
receipts
from
issuance
of
Common
Shares
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,680,741,508
|
|
|
|
—
|
|
|
|
—
|
|
|
Cash
receipts
from
issuance
of
RVMTP
Shares
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
750,000,000
|
|
|
|
—
|
|
|
|
—
|
|
|
Cash
receipts
from
TOB
trust
certificates
|
|
|
|
|
15,340,561
|
|
|
|
2,529,868
|
|
|
|
462,594,948
|
|
|
|
7,258,788
|
|
|
|
4,330,000
|
|
|
Cash
payments
for
TOB
trust
certificates
|
|
|
|
|
(18,918,725
|
)
|
|
|
(654,518
|
)
|
|
|
(186,914,977
|
)
|
|
|
—
|
|
|
|
(621,401
|
)
|
|
Cash
dividends
paid
to
Common
Shareholders
|
|
|
|
|
(29,102,417
|
)
|
|
|
(5,769,647
|
)
|
|
|
(62,450,310
|
)
|
|
|
(6,968,324
|
)
|
|
|
(10,826,366
|
)
|
|
Cash
payments
for
offering
costs
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(383,918
|
)
|
|
|
—
|
|
|
|
—
|
|
|
Increase
in
bank
overdraft
|
|
|
|
|
4,413
|
|
|
|
3,855
|
|
|
|
35,623
|
|
|
|
3,933
|
|
|
|
—
|
|
|
Cash
provided
by
(used
for)
financing
activities
|
|
|
|
$
|
(32,676,168
|
)
|
|
$
|
(3,890,442
|
)
|
|
$
|
2,643,622,874
|
|
|
$
|
294,397
|
|
|
$
|
(7,117,767
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
Net
change
in
cash
|
|
|
|
|
—
|
|
|
|
(320,815
|
)
|
|
|
—
|
|
|
|
—
|
|
|
$
|
945,419
|
|
|
Cash
at
beginning
of
period
|
|
|
|
|
—
|
|
|
|
320,815
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Cash
at
end
of
period
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
945,419
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
Flow
Information
|
|
Cash
paid
during
the
period
for
interest,
fees
and
offering
costs
|
|
|
|
$
|
3,113,860
|
|
|
$
|
342,890
|
|
|
$
|
5,964,084
|
|
|
$
|
782,497
|
|
|
$
|
1,337,899
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
Financing
Activities
|
|
Capital
shares
issued
in
reinvestment
of
dividends
paid
to
Common
Shareholders
|
|
|
|
$
|
603,432
|
|
|
$
|
52,510
|
|
|
|
—
|
|
|
$
|
291,605
|
|
|
$
|
567,300
|
|
|
1
|
|
For the period August 30, 2012 (commencement
of operations) to July 31, 2013.
|
See Notes to Financial Statements.
|
48
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Financial Highlights
|
BlackRock
California Municipal Income Trust (BFZ)
|
|
|
|
|
|
Year Ended July 31,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
Per Share Operating Performance
|
|
Net asset value, beginning of year
|
|
|
|
$
|
16.32
|
|
|
$
|
13.88
|
|
|
$
|
14.28
|
|
|
$
|
12.71
|
|
|
$
|
13.98
|
|
|
Net investment income
1
|
|
|
|
|
0.89
|
|
|
|
0.95
|
|
|
|
0.98
|
|
|
|
1.00
|
|
|
|
1.03
|
|
|
Net realized and unrealized gain (loss)
|
|
|
|
|
(1.78
|
)
|
|
|
2.42
|
|
|
|
(0.45
|
)
|
|
|
1.50
|
|
|
|
(1.35
|
)
|
|
Dividends to AMPS shareholders from net investment income
|
|
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
|
|
(0.12
|
)
|
|
Net increase (decrease) from investment operations
|
|
|
|
|
(0.89
|
)
|
|
|
3.36
|
|
|
|
0.51
|
|
|
|
2.48
|
|
|
|
(0.44
|
)
|
|
Dividends to Common Shareholders from net investment income
2
|
|
|
|
|
(0.93
|
)
|
|
|
(0.92
|
)
|
|
|
(0.91
|
)
|
|
|
(0.91
|
)
|
|
|
(0.83
|
)
|
|
Net asset value, end of year
|
|
|
|
$
|
14.50
|
|
|
$
|
16.32
|
|
|
$
|
13.88
|
|
|
$
|
14.28
|
|
|
$
|
12.71
|
|
|
Market price, end of year
|
|
|
|
$
|
13.63
|
|
|
$
|
16.64
|
|
|
$
|
13.16
|
|
|
$
|
14.21
|
|
|
$
|
12.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Applicable to Common
Shareholders
3
|
|
Based on net asset value
|
|
|
|
|
(5.81)%
|
|
|
|
24.98%
|
|
|
|
4.05%
|
|
|
|
20.15%
|
|
|
|
(2.36)%
|
|
|
Based on market price
|
|
|
|
|
(13.17)%
|
|
|
|
34.40%
|
|
|
|
(0.86)%
|
|
|
|
22.55%
|
|
|
|
(4.81)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common
Shareholders
|
|
Total expenses
|
|
|
|
|
1.63%
|
|
|
|
1.49%
|
4
|
|
|
1.46%
|
4
|
|
|
1.36%
|
4
|
|
|
1.54%
|
4
|
|
Total expenses after fees waived and paid indirectly
|
|
|
|
|
1.63%
|
|
|
|
1.46%
|
4
|
|
|
1.39%
|
4
|
|
|
1.27%
|
4
|
|
|
1.35%
|
4
|
|
Total expenses after fees waived and paid indirectly and excluding interest expense and fees and amortization of offering
costs
5
|
|
|
|
|
1.01%
|
|
|
|
1.07%
|
4,6
|
|
|
1.12%
|
4
|
|
|
1.04%
|
4
|
|
|
1.08%
|
4
|
|
Net investment income
|
|
|
|
|
5.49%
|
|
|
|
6.28%
|
4
|
|
|
7.19%
|
4
|
|
|
6.94%
|
4
|
|
|
8.27%
|
4
|
|
Dividends to AMPS shareholders
|
|
|
|
|
—
|
|
|
|
0.05%
|
|
|
|
0.15%
|
|
|
|
0.15%
|
|
|
|
1.00%
|
|
|
Net investment income to Common Shareholders
|
|
|
|
|
5.49%
|
|
|
|
6.23%
|
|
|
|
7.04%
|
|
|
|
6.79%
|
|
|
|
7.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
Net assets applicable to Common Shareholders, end of year (000)
|
|
|
|
$
|
462,273
|
|
|
$
|
519,578
|
|
|
$
|
441,745
|
|
|
$
|
454,299
|
|
|
$
|
192,551
|
|
|
AMPS outstanding at $25,000 liquidation preference, end of year (000)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
171,325
|
|
|
$
|
171,325
|
|
|
$
|
71,000
|
|
|
VMTP Shares outstanding at $100,000 liquidation value, end of year (000)
|
|
|
|
$
|
171,300
|
|
|
$
|
171,300
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Portfolio turnover
|
|
|
|
|
22%
|
|
|
|
30%
|
|
|
|
36%
|
|
|
|
47%
|
|
|
|
58%
|
|
|
Asset coverage per AMPS at $25,000 liquidation preference, end of year
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
89,460
|
|
|
$
|
91,293
|
|
|
$
|
92,801
|
|
|
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year
|
|
|
|
$
|
369,862
|
|
|
$
|
403,314
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
1
|
|
Based on average Common Shares outstanding.
|
|
2
|
|
Dividends are determined in accordance
with federal income tax regulations.
|
|
3
|
|
Total investment returns based on market
price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends
and distributions.
|
|
4
|
|
Do not reflect the effect of dividends
to AMPS shareholders.
|
|
5
|
|
Interest expense, fees and amortization
of offering costs relate to TOBs and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs and VMTP shares, respectively.
|
|
6
|
|
For the year ended July 31, 2012, the total
expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs
and remarketing fees was 1.04%.
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
49
|
|
|
|
|
Financial Highlights
|
BlackRock
Florida Municipal 2020 Term Trust (BFO)
|
|
|
|
|
|
Year Ended July 31,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
Per Share Operating Performance
|
|
Net asset value, beginning of year
|
|
|
|
$
|
16.05
|
|
|
$
|
14.94
|
|
|
$
|
14.91
|
|
|
$
|
13.35
|
|
|
$
|
14.16
|
|
|
Net investment income
1
|
|
|
|
|
0.68
|
|
|
|
0.85
|
|
|
|
0.92
|
|
|
|
0.95
|
|
|
|
0.96
|
|
|
Net realized and unrealized gain (loss)
|
|
|
|
|
(0.65
|
)
|
|
|
0.98
|
|
|
|
(0.19
|
)
|
|
|
1.31
|
|
|
|
(1.00
|
)
|
|
Dividends to AMPS shareholders from net investment income
|
|
|
|
|
(0.01
|
)
|
|
|
(0.02
|
)
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
(0.15
|
)
|
|
Net increase (decrease) from investment operations
|
|
|
|
|
0.02
|
|
|
|
1.81
|
|
|
|
0.70
|
|
|
|
2.23
|
|
|
|
(0.19
|
)
|
|
Dividends to Common Shareholders from net investment income
2
|
|
|
|
|
(0.76
|
)
|
|
|
(0.70
|
)
|
|
|
(0.67
|
)
|
|
|
(0.67
|
)
|
|
|
(0.62
|
)
|
|
Net asset value, end of year
|
|
|
|
$
|
15.31
|
|
|
$
|
16.05
|
|
|
$
|
14.94
|
|
|
$
|
14.91
|
|
|
$
|
13.35
|
|
|
Market price, end of year
|
|
|
|
$
|
15.12
|
|
|
$
|
15.60
|
|
|
$
|
13.91
|
|
|
$
|
14.30
|
|
|
$
|
12.31
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Applicable to Common
Shareholders
3
|
|
Based on net asset value
|
|
|
|
|
0.12%
|
|
|
|
12.44%
|
|
|
|
5.07%
|
|
|
|
17.35%
|
|
|
|
(0.48)%
|
|
|
Based on market price
|
|
|
|
|
1.73%
|
|
|
|
17.38%
|
|
|
|
2.00%
|
|
|
|
22.05%
|
|
|
|
3.95%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio to Average Net Assets Applicable to Common
Shareholders
|
|
Total expenses
4
|
|
|
|
|
0.92%
|
|
|
|
1.06%
|
|
|
|
1.13%
|
|
|
|
1.14%
|
|
|
|
1.29%
|
|
|
Total expenses after fees waived and paid indirectly
4
|
|
|
|
|
0.92%
|
|
|
|
1.06%
|
|
|
|
1.13%
|
|
|
|
1.13%
|
|
|
|
1.26%
|
|
|
Total expenses after fees waived and paid indirectly and excluding interest expense and fees
4, 5
|
|
|
|
|
0.92%
|
6
|
|
|
1.06%
|
6
|
|
|
1.09%
|
|
|
|
1.09%
|
|
|
|
1.13%
|
|
|
Net investment income
4
|
|
|
|
|
4.23%
|
|
|
|
5.48%
|
|
|
|
6.29%
|
|
|
|
6.72%
|
|
|
|
7.39%
|
|
|
Dividends to AMPS shareholders
|
|
|
|
|
0.09%
|
|
|
|
0.12%
|
|
|
|
0.19%
|
|
|
|
0.22%
|
|
|
|
1.13%
|
|
|
Net investment income to Common Shareholders
|
|
|
|
|
4.14%
|
|
|
|
5.36%
|
|
|
|
6.10%
|
|
|
|
6.50%
|
|
|
|
6.26%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
Net assets applicable to Common Shareholders, end of year (000)
|
|
|
|
$
|
85,139
|
|
|
$
|
89,251
|
|
|
$
|
83,111
|
|
|
$
|
82,929
|
|
|
$
|
74,256
|
|
|
AMPS outstanding at $25,000 liquidation preference, end of year (000)
|
|
|
|
$
|
19,100
|
|
|
$
|
42,900
|
|
|
$
|
42,900
|
|
|
$
|
42,900
|
|
|
$
|
42,900
|
|
|
Portfolio turnover
|
|
|
|
|
9%
|
|
|
|
32%
|
|
|
|
6%
|
|
|
|
6%
|
|
|
|
9%
|
|
|
Asset coverage per AMPS at $25,000 liquidation preference, end of year
|
|
|
|
$
|
136,438
|
|
|
$
|
77,011
|
|
|
$
|
73,433
|
|
|
$
|
73,329
|
|
|
$
|
68,275
|
|
|
1
|
|
Based on average Common Shares outstanding.
|
|
2
|
|
Dividends are determined in accordance
with federal income tax regulations.
|
|
3
|
|
Total investment returns based on market
price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends
and distributions.
|
|
4
|
|
Do not reflect the effect of dividends
to AMPS shareholders.
|
|
5
|
|
Interest expense and fees relate to TOBs.
See Note 3 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
|
|
6
|
|
For the years ended 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 0.87% and 0.97%, respectively.
|
See Notes to Financial Statements.
|
50
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Financial Highlights
|
BlackRock
Municipal Income Investment Trust (BBF)
|
|
|
|
|
|
Year Ended July 31,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
Per Share Operating Performance
|
|
Net asset value, beginning of year
|
|
|
|
$
|
15.91
|
|
|
$
|
13.40
|
|
|
$
|
13.91
|
|
|
$
|
12.71
|
|
|
$
|
14.08
|
|
|
Net investment income
1
|
|
|
|
|
0.85
|
|
|
|
0.86
|
|
|
|
0.97
|
|
|
|
0.92
|
|
|
|
1.01
|
|
|
Net realized and unrealized gain (loss)
|
|
|
|
|
(2.00
|
)
|
|
|
2.55
|
|
|
|
(0.56
|
)
|
|
|
1.20
|
|
|
|
(1.36
|
)
|
|
Dividends to AMPS shareholders from net investment income
|
|
|
|
|
—
|
|
|
|
(0.00
|
)
2
|
|
|
(0.02
|
)
|
|
|
(0.02
|
)
|
|
|
(0.14
|
)
|
|
Net increase (decrease) from investment operations
|
|
|
|
|
(1.15
|
)
|
|
|
3.41
|
|
|
|
0.39
|
|
|
|
2.10
|
|
|
|
(0.49
|
)
|
|
Dividends to Common Shareholders from net investment income
3
|
|
|
|
|
(0.87
|
)
|
|
|
(0.90
|
)
|
|
|
(0.90
|
)
|
|
|
(0.90
|
)
|
|
|
(0.88
|
)
|
|
Net asset value, end of year
|
|
|
|
$
|
13.89
|
|
|
$
|
15.91
|
|
|
$
|
13.40
|
|
|
$
|
13.91
|
|
|
$
|
12.71
|
|
|
Market price, end of year
|
|
|
|
$
|
12.47
|
|
|
$
|
16.25
|
|
|
$
|
12.74
|
|
|
$
|
13.90
|
|
|
$
|
12.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Applicable to Common
Shareholders
4
|
|
Based on net asset value
|
|
|
|
|
(7.56)%
|
|
|
|
26.21
|
%
|
|
|
3.15
|
%
|
|
|
17.04
|
%
|
|
|
(2.57)%
|
|
|
Based on market price
|
|
|
|
|
(18.75)%
|
|
|
|
35.59
|
%
|
|
|
(1.86)
|
%
|
|
|
19.01
|
%
|
|
|
(1.46)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common
Shareholders
|
|
Total expenses
|
|
|
|
|
1.83
|
%
|
|
|
1.99
|
%
5
|
|
|
1.60
|
%
5
|
|
|
1.46
|
%
5
|
|
|
1.47
|
%
5
|
|
Total expenses after fees waived and paid indirectly
|
|
|
|
|
1.83
|
%
|
|
|
1.99
|
%
5
|
|
|
1.60
|
%
5
|
|
|
1.37
|
%
5
|
|
|
1.27
|
%
5
|
|
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering
costs
6
|
|
|
|
|
1.49
|
%
7
|
|
|
1.61
|
%
5,7
|
|
|
1.33
|
%
5
|
|
|
1.17
|
%
5
|
|
|
1.16
|
%
5
|
|
Net investment income
|
|
|
|
|
5.41
|
%
|
|
|
5.89
|
%
5
|
|
|
7.35
|
%
5
|
|
|
6.84
|
%
5
|
|
|
8.13
|
%
5
|
|
Dividends to AMPS shareholders
|
|
|
|
|
—
|
|
|
|
0.02
|
%
|
|
|
0.14
|
%
|
|
|
0.16
|
%
|
|
|
1.11
|
%
|
|
Net investment income to Common Shareholders
|
|
|
|
|
5.41
|
%
|
|
|
5.87
|
%
|
|
|
7.21
|
%
|
|
|
6.68
|
%
|
|
|
7.02
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
Net assets applicable to Common Shareholders, end of year (000)
|
|
|
|
$
|
93,145
|
|
|
$
|
106,627
|
|
|
$
|
89,726
|
|
|
$
|
93,073
|
|
|
$
|
85,050
|
|
|
AMPS outstanding at $25,000 liquidation preference, end of year (000)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
34,250
|
|
|
$
|
34,250
|
|
|
$
|
34,250
|
|
|
VRDP Shares outstanding at $100,000 liquidation value, end of year (000)
|
|
|
|
$
|
34,200
|
|
|
$
|
34,200
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Portfolio turnover
|
|
|
|
|
33
|
%
|
|
|
39
|
%
|
|
|
24
|
%
|
|
|
46
|
%
|
|
|
66
|
%
|
|
Asset coverage per AMPS at $25,000 liquidation preference, end of year
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
90,493
|
|
|
$
|
92,938
|
|
|
$
|
87,082
|
|
|
Asset coverage per VRDP Shares at $100,000 liquidation value, end of year
|
|
|
|
$
|
372,353
|
|
|
$
|
411,775
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
1
|
|
Based on average Common Shares outstanding.
|
|
2
|
|
Amount is greater than $(0.01) per share.
|
|
3
|
|
Dividends are determined in accordance
with federal income tax regulations.
|
|
4
|
|
Total investment returns based on market
price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends
and distributions.
|
|
5
|
|
Do not reflect the effect of dividends
to AMPS Shareholders.
|
|
6
|
|
Interest expense, fees and amortization
of offering costs relate to TOBs and/or VRDP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs and VRDP Shares, respectively.
|
|
7
|
|
For the years ended July 31, 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 1.17% and 1.31%, respectively.
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
51
|
|
|
|
|
Financial Highlights
|
BlackRock
Municipal Target Term Trust (BTT)
|
|
|
|
|
|
Period August 30, 2012
1
to
July 31, 2013
|
|
Per Share Operating Performance
|
|
Net asset value, beginning of period
|
|
|
|
$
|
23.88
|
2
|
|
Net investment income
3
|
|
|
|
|
0.80
|
|
|
Net realized and unrealized gain
|
|
|
|
|
(4.95
|
)
|
|
Net decrease from investment operations
|
|
|
|
|
(4.15
|
)
|
|
Dividends and distributions from
4
:
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
(0.87
|
)
|
|
Tax return of capital
|
|
|
|
|
(0.11
|
)
|
|
Total dividends and distributions
|
|
|
|
|
(0.98
|
)
|
|
Net asset value, end of period
|
|
|
|
$
|
18.75
|
|
|
Market price, end of period
|
|
|
|
$
|
18.42
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Applicable to Common
Shareholders
5
|
|
Based on net asset value
6
|
|
|
|
|
(18.00)%
|
|
|
Based on market price
6
|
|
|
|
|
(23.05)%
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common
Shareholders
|
|
Total expenses
7
|
|
|
|
|
0.99
|
%
|
|
Total expenses after fees waived and paid indirectly
7
|
|
|
|
|
0.99
|
%
|
|
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering
costs
7,8
|
|
|
|
|
0.64
|
%
|
|
Net investment income to Common Shareholders
7
|
|
|
|
|
3.78
|
%
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
Net assets applicable to Common Shareholders, end of period (000)
|
|
|
|
$
|
1,321,835
|
|
|
RVMTP Shares outstanding at $5,000,000 liquidation value, end of period (000)
|
|
|
|
$
|
750,000
|
|
|
Portfolio turnover
|
|
|
|
|
39
|
%
|
|
Asset coverage per RVMTP Shares at $5,000,000 liquidation value, end of period
|
|
|
|
$
|
13,812,236
|
|
|
1
|
|
Commencement of operations.
|
|
2
|
|
Net asset value, beginning of period, reflects
a deduction of $1.125 per share sales charge from the initial offering price of $25.00 per share.
|
|
3
|
|
Based on average Common Shares outstanding.
|
|
4
|
|
Dividends are determined in accordance
with federal income tax regulations.
|
|
5
|
|
Total investment returns based on market
price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends
and distributions.
|
|
6
|
|
Aggregate total investment return.
|
|
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.
|
52
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Financial Highlights
|
BlackRock
New Jersey Municipal Income Trust (BNJ)
|
|
|
|
|
|
Year Ended July 31,
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
Per Share Operating Performance
|
|
Net asset value, beginning of year
|
|
|
|
$
|
16.17
|
|
|
$
|
14.07
|
|
|
$
|
14.38
|
|
|
$
|
12.78
|
|
|
$
|
14.15
|
|
|
Net investment income
1
|
|
|
|
|
0.88
|
|
|
|
0.95
|
|
|
|
0.98
|
|
|
|
1.02
|
|
|
|
1.05
|
|
|
Net realized and unrealized gain (loss)
|
|
|
|
|
(1.75
|
)
|
|
|
2.11
|
|
|
|
(0.32
|
)
|
|
|
1.54
|
|
|
|
(1.38
|
)
|
|
Dividends to AMPS shareholders from net investment income
|
|
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
(0.11
|
)
|
|
Net increase (decrease) from investment operations
|
|
|
|
|
(0.87
|
)
|
|
|
3.05
|
|
|
|
0.63
|
|
|
|
2.53
|
|
|
|
(0.44
|
)
|
|
Dividends to Common Shareholders from net investment income
2
|
|
|
|
|
(0.94
|
)
|
|
|
(0.95
|
)
|
|
|
(0.94
|
)
|
|
|
(0.93
|
)
|
|
|
(0.93
|
)
|
|
Net asset value, end of year
|
|
|
|
$
|
14.36
|
|
|
$
|
16.17
|
|
|
$
|
14.07
|
|
|
$
|
14.38
|
|
|
$
|
12.78
|
|
|
Market price, end of year
|
|
|
|
$
|
13.67
|
|
|
$
|
17.67
|
|
|
$
|
14.10
|
|
|
$
|
14.82
|
|
|
$
|
14.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Applicable to Common
Shareholders
3
|
|
Based on net asset value
|
|
|
|
|
(5.82)%
|
|
|
|
22.25%
|
|
|
|
4.74%
|
|
|
|
20.22%
|
|
|
|
(2.62)%
|
|
|
Based on market price
|
|
|
|
|
(17.95)%
|
|
|
|
33.30%
|
|
|
|
1.85%
|
|
|
|
13.11%
|
|
|
|
0.04%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common
Shareholders
|
|
Total expenses
|
|
|
|
|
1.81%
|
|
|
|
1.47%
|
4
|
|
|
1.25%
|
4
|
|
|
1.23%
|
4
|
|
|
1.38%
|
4
|
|
Total expenses after fees waived and paid indirectly
|
|
|
|
|
1.81%
|
|
|
|
1.46%
|
4
|
|
|
1.24%
|
4
|
|
|
1.13%
|
4
|
|
|
1.17%
|
4
|
|
Total expenses after fees waived and paid indirectly and excluding interest expense and fees and amortization of offering
costs
5
|
|
|
|
|
1.13%
|
|
|
|
1.18%
|
4,6
|
|
|
1.22%
|
4
|
|
|
1.12%
|
4
|
|
|
1.14%
|
4
|
|
Net investment income
4
|
|
|
|
|
5.51%
|
|
|
|
6.28%
|
4
|
|
|
7.09%
|
4
|
|
|
7.42%
|
4
|
|
|
8.49%
|
4
|
|
Dividends to AMPS shareholders
|
|
|
|
|
—
|
|
|
|
0.08%
|
|
|
|
0.21%
|
|
|
|
0.23%
|
|
|
|
1.22%
|
|
|
Net investment income to Common Shareholders
|
|
|
|
|
5.51%
|
|
|
|
6.20%
|
|
|
|
6.88%
|
|
|
|
7.19%
|
|
|
|
7.27%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
Net assets applicable to Common Shareholders, end of year (000)
|
|
|
|
$
|
109,950
|
|
|
$
|
123,497
|
|
|
$
|
107,226
|
|
|
$
|
109,257
|
|
|
$
|
96,696
|
|
|
AMPS outstanding at $25,000 liquidation preference, end of year (000)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
59,100
|
|
|
$
|
59,100
|
|
|
$
|
59,100
|
|
|
VMTP Shares outstanding at $100,000 liquidation value, end of year (000)
|
|
|
|
$
|
59,100
|
|
|
$
|
59,100
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Portfolio turnover
|
|
|
|
|
9%
|
|
|
|
20%
|
|
|
|
20%
|
|
|
|
11%
|
|
|
|
29%
|
|
|
Asset coverage per AMPS at $25,000 liquidation preference, end of year
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
70,358
|
|
|
$
|
71,218
|
|
|
$
|
65,905
|
|
|
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year
|
|
|
|
$
|
286,040
|
|
|
$
|
308,962
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
1
|
|
Based on average Common Shares outstanding.
|
|
2
|
|
Dividends are determined in accordance
with federal income tax regulations.
|
|
3
|
|
Total investment returns based on market
price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends
and distributions.
|
|
4
|
|
Do not reflect the effect of dividends
to AMPS Shareholders.
|
|
5
|
|
Interest expense and fees relate to TOBs
and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details of municipal bonds transferred
to TOBs and VMTP Shares, respectively.
|
|
6
|
|
For the year ended July 31, 2012, the total
expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs
and remarketing fees was 1.14%.
|
See Notes to Financial Statements.
|
ANNUAL REPORT
|
JULY 31, 2013
|
53
|
|
|
|
|
Financial Highlights
|
BlackRock
New York Municipal Income Trust (BNY)
|
|
|
|
|
|
Year Ended July 31
|
|
|
|
|
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
Per Share Operating Performance
|
|
Net asset value, beginning of year
|
|
|
|
$
|
15.53
|
|
|
$
|
13.87
|
|
|
$
|
14.27
|
|
|
$
|
12.71
|
|
|
$
|
13.88
|
|
|
Net investment income
1
|
|
|
|
|
0.87
|
|
|
|
0.93
|
|
|
|
1.01
|
|
|
|
1.04
|
|
|
|
1.06
|
|
|
Net realized and unrealized gain (loss)
|
|
|
|
|
(2.06
|
)
|
|
|
1.73
|
|
|
|
(0.39
|
)
|
|
|
1.54
|
|
|
|
(1.22
|
)
|
|
Dividends to AMPS shareholders from net investment income
|
|
|
|
|
—
|
|
|
|
(0.01
|
)
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
(0.10
|
)
|
|
Net increase (decrease) from investment operations
|
|
|
|
|
(1.19
|
)
|
|
|
2.65
|
|
|
|
0.59
|
|
|
|
2.55
|
|
|
|
(0.26
|
)
|
|
Dividends to Common Shareholders from net investment income
2
|
|
|
|
|
(0.87
|
)
|
|
|
(0.99
|
)
|
|
|
(0.99
|
)
|
|
|
(0.99
|
)
|
|
|
(0.91
|
)
|
|
Net asset value, end of year
|
|
|
|
$
|
13.47
|
|
|
$
|
15.53
|
|
|
$
|
13.87
|
|
|
$
|
14.27
|
|
|
$
|
12.71
|
|
|
Market price, end of year
|
|
|
|
$
|
13.16
|
|
|
$
|
16.73
|
|
|
$
|
14.20
|
|
|
$
|
15.11
|
|
|
$
|
13.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Investment Return Applicable to Common
Shareholders
3
|
|
Based on net asset value
|
|
|
|
|
(8.18)%
|
|
|
|
19.62%
|
|
|
|
4.39%
|
|
|
|
20.35%
|
|
|
|
(1.28)%
|
|
|
Based on market price
|
|
|
|
|
(16.73)%
|
|
|
|
25.87%
|
|
|
|
0.94%
|
|
|
|
16.11%
|
|
|
|
(1.44)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to Average Net Assets Applicable to Common
Shareholders
|
|
Total expenses
|
|
|
|
|
1.85%
|
|
|
|
1.49%
|
4
|
|
|
1.27%
|
4
|
|
|
1.25%
|
4
|
|
|
1.43%
|
4
|
|
Total expenses after fees waived and paid indirectly
|
|
|
|
|
1.84%
|
|
|
|
1.49%
|
4
|
|
|
1.27%
|
4
|
|
|
1.16%
|
4
|
|
|
1.25%
|
4
|
|
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering
costs
5
|
|
|
|
|
1.14%
|
|
|
|
1.18%
|
4,6
|
|
|
1.22%
|
4
|
|
|
1.11%
|
4
|
|
|
1.13%
|
4
|
|
Net investment income
4
|
|
|
|
|
5.71%
|
|
|
|
6.34%
|
4
|
|
|
7.35%
|
4
|
|
|
7.50%
|
4
|
|
|
8.67%
|
4
|
|
Dividends to AMPS shareholders
|
|
|
|
|
—
|
|
|
|
0.08%
|
|
|
|
0.20%
|
|
|
|
0.22%
|
|
|
|
1.17%
|
|
|
Net investment income to Common Shareholders
|
|
|
|
|
5.71%
|
|
|
|
6.26%
|
|
|
|
7.15%
|
|
|
|
7.28%
|
|
|
|
7.50%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Data
|
|
Net assets applicable to Common Shareholders, end of year (000)
|
|
|
|
$
|
173,976
|
|
|
$
|
200,020
|
|
|
$
|
177,993
|
|
|
$
|
182,372
|
|
|
$
|
161,727
|
|
|
AMPS outstanding at $25,000 liquidation preference, end of year (000)
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
94,500
|
|
|
$
|
94,500
|
|
|
$
|
94,500
|
|
|
VMTP Shares outstanding at $100,000 liquidation value, end of year (000)
|
|
|
|
$
|
94,500
|
|
|
$
|
94,500
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Portfolio turnover
|
|
|
|
|
23%
|
|
|
|
24%
|
|
|
|
17%
|
|
|
|
16%
|
|
|
|
18%
|
|
|
Asset coverage per AMPS at $25,000 liquidation preference, end of year
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
72,089
|
|
|
$
|
73,248
|
|
|
$
|
67,787
|
|
|
Asset coverage per VMTP Shares at $100,000 liquidation value, end of year
|
|
|
|
$
|
284,102
|
|
|
$
|
311,661
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
1
|
|
Based on average Common Shares outstanding.
|
|
2
|
|
Dividends are determined in accordance
with federal income tax regulations.
|
|
3
|
|
Total investment returns based on market
price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns.
Where applicable, total investment returns exclude the effects of any sales charges and assume the reinvestment of dividends
and distributions.
|
|
4
|
|
Do not reflect the effect of dividends
to AMPS shareholders.
|
|
5
|
|
Interest expense, fees and amortization
of offering costs relate to TOBs and/or VMTP Shares. See Note 3 and Note 9 of the Notes to Financial Statements for details
of municipal bonds transferred to TOBs and VMTP Shares, respectively.
|
|
6
|
|
For the year ended July 31, 2012, the total
expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs
and remarketing fees was 1.13%.
|
See Notes to Financial Statements.
|
54
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Notes to Financial Statements
|
|
1. Organization:
BlackRock California Municipal Income Trust (“BFZ”),
BlackRock Municipal Income Investment Trust (“BBF”), BlackRock Municipal Target Term Trust (“BTT”), BlackRock New Jersey Municipal
Income Trust (“BNJ”), BlackRock New York Municipal Income Trust (“BNY”)(collectively, the “Income Trusts”) and BlackRock
Florida Municipal 2020 Term Trust (“BFO”) are organized as Delaware statutory trusts. The Income Trusts and BFO are referred to herein
collectively as the “Trusts.” The Trusts are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as
non-diversified, closed-end management investment companies. The Board 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.
Investment operations for BTT commenced on August 30, 2012. Prior
to commencement of operations, BTT had no operations other than those relating to organizational matters and the sale of 5,571 Common Shares on August
16, 2011 to BlackRock Holdco 2, Inc., an affiliate of BTT, for $133,008.
2. Significant Accounting Policies:
The Trusts’ financial statements are prepared in conformity
with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and
assumptions that affect the reported amounts 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. The following is a summary of the
significant accounting policies followed by the Trusts:
Valuation:
US GAAP defines fair value as the price the
Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The
Trusts determine the fair values of their financial instruments at market value using independent dealers or pricing services under policies approved
by the Board of the Trusts. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed
by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Trusts for all financial
instruments.
Municipal investments (including commitments to purchase such
investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of
a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers,
pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial
futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV
each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair
value.
With exchange traded purchased options and futures, there is less
counterparty credit risk to the Trusts since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default.
The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the 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.
In the event that application of these methods of valuation
results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available,
the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair
value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to
determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair
value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate deem relevant consistent with the
principles of fair value measurement which include the market approach, income approach and/or, in the case of recent investments, the cost approach,
as appropriate. The market approach generally consists of using comparable market transactions. The income approach generally is used to discount
future cash flows to present value and is adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific
to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the
investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar
investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment
speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such
investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its
delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due
diligence of the Trusts’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to
compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews
of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly
basis.
Segregation and Collateralization:
In cases in which the
1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Trusts either deliver collateral
or segregate assets in connection with certain investments (e.g., TOBs and financial futures
|
ANNUAL REPORT
|
JULY 31, 2013
|
55
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
contracts), the Trusts will, consistent with SEC rules and/or
certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or liquid securities having a market
value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with
certain exchanges and third party broker-dealers, a Fund engaging in such transactions may have requirements to deliver/deposit securities to/with an
exchange or broker-dealer as collateral for certain investments.
Investment Transactions and Investment Income:
For
financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and
losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income,
including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.
Dividends and Distributions:
Dividends from net investment
income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The portion of distributions that exceeds a
Trust’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital.
Distributions in excess of a Trust’s taxable income and net capital gains, but not in excess of a Trust’s earnings and profits, will be
taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. The character and timing of dividends and
distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to Preferred
Shareholders are accrued and determined as described in Note 9.
Income Taxes:
It is the Trusts’ policy to comply with
the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of
its taxable income to its shareholders. Therefore, no federal income tax provision is required.
Each Trust files US federal and various state and local tax
returns. No income tax returns are currently under examination. The statute of limitations for BFZ, BFO, BBF, BNJ and BNY US federal tax returns
remains open for each of the four years ended July 31, 2013. The statute of limitations for BTT US federal tax return remains open for the year 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. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
Recent Accounting Standards:
In December 2011, the
Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of
certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or
similar agreements which are eligible for offset in the Statements of Assets and Liabilities and will require an entity to disclose both gross and net
information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which
investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be
limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending
transactions. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within
those fiscal years. Management is evaluating the impact, if any, of this guidance on the Trusts’ financial statement disclosures.
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 pro rated among those funds on the basis of relative net assets or other appropriate
methods.
The Trusts have an arrangement with the custodian whereby fees may
be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The
custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody
charges.
3. Securities and Other Investments:
Zero-Coupon Bonds:
The Trusts may invest in zero-coupon
bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may
experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.
|
56
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
Forward Commitments and When-Issued Delayed Delivery
Securities:
The Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement
of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Trusts may purchase securities under
such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement
date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security
is worth. In addition, the Trusts are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery
basis, the Trusts assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default
by the counterparty, the Trusts’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in
the Schedules of Investments.
Municipal Bonds Transferred to TOBs:
The Trusts leverage
their assets through the use of TOBs. A TOB is a special purpose entity established by a third party sponsor, into which a fund, or an agent on behalf
of a fund, transfers municipal bonds into a trust (“TOB Trust”). Other funds managed by the investment advisor may also contribute municipal
bonds to a TOB into which a Trust has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate
certificates (“TOB Trust Certificates”), which are sold to third party investors, and residual certificates (“TOB Residuals”),
which are generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. If multiple funds participate in the same
TOB, the rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation.
The TOB Residuals held by a Trust include the right of a Trust (1)
to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates at par plus accrued interest upon the
occurrence of certain mandatory tender events defined in the TOB agreements, and (2) to transfer, subject to a specified number of days’ prior
notice, a corresponding share of the municipal bonds from the TOB to a Trust. The TOB may also be collapsed without the consent of a Trust, as the TOB
Residual holder, upon the occurrence of certain termination events as defined in the TOB agreements. Such termination events may include the bankruptcy
or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain renewal of the
liquidity support agreement, a substantial decline in market value of the municipal bond and a judgment or ruling that interest on the municipal bond
is subject to federal income taxation. Upon the occurrence of a termination event, the TOB would generally be liquidated in full with the proceeds
typically applied first to any accrued fees owed to the trustee, remarketing agent and liquidity provider, and then to the holders of the TOB Trust
Certificates up to par plus accrued interest owed on the TOB Trust Certificates, with the balance paid out to the TOB Residual holder. During the year
ended July 31, 2013, no TOBs in which the Trusts participated were terminated without the consent of the Trusts.
The cash received by the TOB from the sale of the TOB Trust
Certificates, less transaction expenses, is paid to a Trust. The Trust typically invests the cash received in additional municipal bonds. Each
Trust’s transfer of the municipal bonds to a TOB Trust is accounted for as a secured borrowing; therefore, the municipal bonds deposited into a
TOB are presented in the Trusts’ Schedules of Investments and the TOB Trust Certificates are shown in other liabilities in the Statements of
Assets and Liabilities. The carrying amount of the Trusts’ payable to the holder of the TOB Trust Certificates, as reported in Statements of
Assets and Liabilities as TOB Trust Certificates, approximates its fair value.
The Trusts may invest in TOBs on either a non-recourse or recourse
basis. TOB Trusts are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity
Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider
of par plus accrued interest on any business day prior to the occurrence of the termination events described above. When a Trust invests in TOBs on a
non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event, the Liquidity
Provider will typically liquidate all or a portion of the municipal securities held in the TOB Trust and then fund, on a net basis, the balance, if
any, of the amount owed under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Trust invests in a TOB
on a recourse basis, the Trust will typically enter into a reimbursement agreement with the Liquidity Provider where the Trust is required to repay the
Liquidity Provider the amount of any Liquidation Shortfall. As a result, a Trust investing in a recourse TOB will bear the risk of loss with respect to
any Liquidation Shortfall. If multiple funds participate in any such TOB, these losses will be shared ratably in proportion to their participation. The
recourse TOB Trusts, if any, are identified in the Schedules of Investments.
Interest income, including amortization and accretion of premiums
and discounts, from the underlying municipal bonds is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing
and other expenses related to remarketing, administration and trustee services to a TOB are shown as interest expense, fees and amortization of
offering costs in the Statements of Operations. The TOB Trust Certificates have interest rates that generally reset weekly and their holders have the
option to tender such certificates to the TOB for redemption at par at each reset date. At July 31, 2013, the aggregate value of the underlying
municipal bonds transferred to TOBs, the related liability for TOB Trust Certificates and the range of interest rates on the liability for TOB Trust
Certificates were as follows:
|
|
|
|
Underlying
Municipal Bonds
Transferred to TOBS
|
|
Liability for
TOB Trust
Certificates
|
|
Range of
Interest
Rates
|
|
BFZ
|
|
|
|
$
|
319,995,329
|
|
|
$
|
158,655,348
|
|
|
0.06% – 0.14%
|
|
BFO
|
|
|
|
$
|
439,396
|
|
|
$
|
280,000
|
|
|
0.12%
|
|
BBF
|
|
|
|
$
|
61,824,042
|
|
|
$
|
34,096,156
|
|
|
0.06% – 0.34%
|
|
BTT
|
|
|
|
$
|
438,894,221
|
|
|
$
|
238,704,971
|
|
|
0.06% – 0.21%
|
|
BNJ
|
|
|
|
$
|
28,735,816
|
|
|
$
|
17,302,334
|
|
|
0.06% – 0.31%
|
|
BNY
|
|
|
|
$
|
55,871,685
|
|
|
$
|
31,620,177
|
|
|
0.06% – 0.16%
|
|
ANNUAL REPORT
|
JULY 31, 2013
|
57
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
For the year ended July 31, 2013, 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
|
|
|
|
$
|
166,839,414
|
|
|
|
0.69
|
%
|
|
BFO
|
|
|
|
$
|
337,671
|
|
|
|
0.56
|
%
|
|
BBF
|
|
|
|
$
|
34,571,646
|
|
|
|
0.73
|
%
|
|
BTT
|
|
|
|
$
|
288,044,433
|
|
|
|
0.80
|
%
|
|
BNJ
|
|
|
|
$
|
13,831,224
|
|
|
|
0.78
|
%
|
|
BNY
|
|
|
|
$
|
35,644,964
|
|
|
|
0.73
|
%
|
Should short-term interest rates rise, the Trusts’
investments in TOBs may adversely affect the Trusts’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market
value of municipal bonds deposited into the TOB may adversely affect the Trusts’ NAVs per share.
4. Derivative Financial Instruments:
The Trusts engage in various portfolio investment strategies using
derivative contracts both to increase the returns of the Funds and/or to economically hedge their exposure to certain risks such as interest rate risk.
These contracts may be transacted on an exchange or OTC.
Financial Futures Contracts:
The Trusts purchase and/or
sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest
rates (interest rate risk). Financial futures contracts are agreements between the Trusts and a counterparty to buy or sell a specific quantity of an
underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are
settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the
settlement date. 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 and are recorded by the Trusts as unrealized appreciation or
depreciation. When the contract is closed, the Trusts record a realized gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the
movements in the price of financial futures contracts, interest rates and the underlying assets.
Options
: The Trusts purchase and write call and put options
to increase or decrease their exposure to underlying instruments (including interest rate risk) and/or, in the case of options written, to generate
gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the
seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike price at any time or at a specified time
during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or
strike price at any time or at a specified time during the option period. When the Trusts purchase (write) an option, an amount equal to the premium
paid (received) by the Trusts is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the
current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium
paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument
sold. When an option expires (or the Trusts enter into a closing transaction), the Trusts realize a gain or loss on the option to the extent of the
premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Trusts
write a call option, such option is “covered,” meaning that the Trusts hold the underlying instrument subject to being called by the option
counterparty. When the Trusts write a put option, such option is covered by cash in an amount sufficient to cover the obligation.
In purchasing and writing options, the Trusts bear the risk of an
unfavorable change in the value of the underlying instrument or the risk that the Trusts may not be able to enter into a closing transaction due to an
illiquid market. Exercise of written option could result in the Trusts purchasing or selling a security when it otherwise would not, or at a price
different from the current market value.
The following is a summary of the Funds’ derivative financial
instruments categorized by risk exposure:
The Effect of Derivative
Financial Instruments in the Statements of Operations
Period Ended July 31, 2013
|
|
|
|
|
|
|
Net Realized Gain/Loss From
|
|
|
|
|
|
BFZ
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
|
Interest rate contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial futures contracts
|
|
|
|
$
|
802,528
|
|
|
$
|
363,361
|
|
|
|
—
|
|
|
$
|
418,174
|
|
|
$
|
128,540
|
|
|
Options
1
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
1,230,084
|
|
|
|
—
|
|
|
$
|
(65,302
|
)
|
|
1
|
|
Options purchased are included in the net
realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.
|
|
58
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
For the period ended July 31, 2013, the average quarterly balances
of outstanding derivative financial instruments were as follows:
|
|
|
|
BFZ
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
|
Financial futures contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of contracts sold
|
|
|
|
|
113
|
|
|
|
25
|
|
|
|
—
|
|
|
|
29
|
|
|
|
22
|
|
|
Average notional value of contracts sold
|
|
|
|
$
|
14,925,000
|
|
|
$
|
3,300,645
|
|
|
|
—
|
|
|
$
|
3,800,742
|
|
|
$
|
3,179,359
|
|
|
Options Contracts:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of contracts purchased
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,800
1
|
|
|
|
—
|
|
|
|
413
|
2
|
|
Average notional value of contracts purchased
|
|
|
|
|
—
|
|
|
|
—
|
|
|
$
|
1,321,875
1
|
|
|
|
—
|
|
|
$
|
64,531
|
2
|
|
1
|
|
Actual contract amount shown due to limited
activity.
|
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 purchased options and futures, there is less
counterparty credit risk to the Trusts since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default.
The clearinghouse stands between the buyer and the seller of the contract; therefore, the credit risk is limited to failure of the clearinghouse. While
offset rights may exist under applicable law, the Trusts do 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 broker’s customer accounts. While brokers are required to segregate
customer margin from their own assets, in the event that a broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in
the aggregate amount of margin held by the broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the
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 necessary 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 weekly net assets except for BTT, which is based on average daily net assets,
at the following annual rates:
|
BFZ
|
|
|
|
|
0.58
|
%
|
|
BFO
|
|
|
|
|
0.50
|
%
|
|
BBF
|
|
|
|
|
0.60
|
%
|
|
BTT
|
|
|
|
|
0.40
|
%
|
|
BNJ
|
|
|
|
|
0.60
|
%
|
|
BNY
|
|
|
|
|
0.60
|
%
|
Average weekly net assets are the average daily value of each
Trust’s total assets minus the sum of its accrued liabilities.
The Manager contractually agreed to waive a portion of the
investment advisory fee on BFZ at an annual rate of 0.01% of average weekly net assets through December 31, 2012. For the year ended July 31, 2013, the
Manager waived $35,992, which is included in fees waived by advisor in the Statements of Operations.
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 year ended July 31, 2013, the amounts waived were as follows:
|
BFZ
|
|
|
|
$
|
6,206
|
|
|
BFO
|
|
|
|
$
|
1,198
|
|
|
BBF
|
|
|
|
$
|
801
|
|
|
BTT
|
|
|
|
$
|
9,298
|
|
|
BNJ
|
|
|
|
$
|
3,095
|
|
|
BNY
|
|
|
|
$
|
5,123
|
|
For BFZ, BFO, BBF, BNJ and BNY the Manager entered into a
sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Manager. For BTT the Manager entered into a
sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BFM and BIM for
services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Trust to the Manager.
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 trustees’ in the Statements of Operations.
6. Purchases and Sales:
Purchases and sales of investments, excluding short-term
securities, for the year ended July 31, 2013 were as follows:
|
|
|
|
Purchases
|
|
Sales
|
|
BFZ
|
|
|
|
$
|
187,796,101
|
|
|
$
|
190,338,979
|
|
|
BFO
|
|
|
|
$
|
10,550,651
|
|
|
$
|
36,840,324
|
|
|
BBF
|
|
|
|
$
|
57,139,737
|
|
|
$
|
58,113,361
|
|
|
BTT
|
|
|
|
$
|
3,438,176,261
|
|
|
$
|
804,927,352
|
|
|
BNJ
|
|
|
|
$
|
22,646,857
|
|
|
$
|
17,815,131
|
|
|
BNY
|
|
|
|
$
|
74,307,229
|
|
|
$
|
79,031,686
|
|
7. Income Tax Information:
US GAAP requires that certain components of net assets be adjusted
to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per
share. The following permanent differences as of July 31, 2013
|
ANNUAL REPORT
|
JULY 31, 2013
|
59
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
|
|
|
attributable to amortization methods on fixed income securities, distributions received from a regulated investment company, the reclassification of
distributions, non-deductible expenses, and the retention of tax-exempt income were reclassified to the following accounts:
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
|
Paid-in capital
|
|
|
|
$
|
(77,365
|
)
|
|
$
|
767,163
|
|
|
$
|
(23,595
|
)
|
|
$
|
(60,196
|
)
|
|
$
|
(47,805
|
)
|
|
$
|
(57,004
|
)
|
|
Undistributed net investment income
|
|
|
|
$
|
75,651
|
|
|
$
|
(747,982
|
)
|
|
$
|
23,227
|
|
|
$
|
65,268
|
|
|
$
|
47,805
|
|
|
$
|
48,941
|
|
|
Undistributed net realized gain (accumulated net realized loss)
|
|
|
|
$
|
1,714
|
|
|
$
|
(19,181
|
)
|
|
$
|
368
|
|
|
$
|
(5,072
|
)
|
|
|
—
|
|
|
$
|
8,063
|
|
The tax character of distributions paid during the fiscal years ended July 31, 2013 and July 31, 2012 was as
follows:
|
|
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
1
|
|
BNJ
|
|
BNY
|
|
Tax-exempt income
2
|
|
|
|
|
7/31/13
|
|
|
$
|
31,649,406
|
|
|
$
|
4,314,224
|
|
|
$
|
5,909,789
|
|
|
$
|
64,323,779
|
|
|
$
|
7,879,321
|
|
|
$
|
12,286,661
|
|
|
|
|
|
|
|
7/31/12
|
|
|
|
30,232,336
|
|
|
|
3,993,671
|
|
|
|
6,134,295
|
|
|
|
—
|
|
|
|
7,617,078
|
|
|
|
13,278,208
|
|
|
Ordinary income
3
|
|
|
|
|
7/31/13
|
|
|
|
—
|
|
|
|
1,844
|
|
|
|
305
|
|
|
|
4,482
|
|
|
|
5,655
|
|
|
|
6,287
|
|
|
|
|
|
|
|
7/31/12
|
|
|
|
69,782
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Tax return of capital
|
|
|
|
|
7/31/13
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
7,606,056
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
7/31/12
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total
|
|
|
|
|
7/31/13
|
|
|
$
|
31,649,406
|
|
|
$
|
4,316,068
|
|
|
$
|
5,910,094
|
|
|
$
|
71,934,317
|
|
|
$
|
7,884,976
|
|
|
$
|
12,292,948
|
|
|
|
|
|
|
|
7/31/12
|
|
|
$
|
30,302,118
|
|
|
$
|
3,993,671
|
|
|
$
|
6,134,295
|
|
|
|
—
|
|
|
$
|
7,617,078
|
|
|
$
|
13,278,208
|
|
|
1
|
|
For the period August 30, 2012 to July
31, 2013.
|
|
2
|
|
The Trusts designate these amounts paid
during the fiscal year ended July 31, 2013, as exempt-interest dividends.
|
|
3
|
|
Ordinary income consists primarily of taxable
income recognized from market discount and net short-term capital gains. Additionally, all ordinary income distributions
are comprised of interest related dividends and qualified short-term capital gain dividends for non-US residents and are
eligible for exemption from US withholding tax for nonresident aliens and foreign corporations.
|
As of July 31, 2013, the tax components of accumulated net earnings (losses) were as follows:
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
|
Undistributed tax-exempt Income
|
|
|
|
$
|
5,263,590
|
|
|
$
|
3,380,094
|
|
|
$
|
351,029
|
|
|
|
—
|
|
|
$
|
1,507,603
|
|
|
$
|
3,148,840
|
|
|
Undistributed ordinary income
|
|
|
|
|
2,488
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Capital loss carryforwards
|
|
|
|
|
(19,012,687
|
)
|
|
|
(748,482
|
)
|
|
|
(6,860,350
|
)
|
|
|
—
|
|
|
|
(869,831
|
)
|
|
|
(5,871,615
|
)
|
|
Net
unrealized gains (losses)
4
|
|
|
|
|
29,910,563
|
|
|
|
2,348,647
|
|
|
|
5,573,509
|
|
|
$
|
(312,017,329
|
)
|
|
|
514,271
|
|
|
|
(5,944,367
|
)
|
|
Qualified late-year losses
5
|
|
|
|
|
(1,115,136
|
)
|
|
|
—
|
|
|
|
(991,571
|
)
|
|
|
(39,222,570
|
)
|
|
|
—
|
|
|
|
(556,240
|
)
|
|
Total
|
|
|
|
$
|
15,048,818
|
|
|
$
|
4,980,259
|
|
|
$
|
(1,927,383
|
)
|
|
$
|
(351,239,899
|
)
|
|
$
|
1,152,043
|
|
|
$
|
(9,223,382
|
)
|
|
4
|
|
The difference between book-basis and tax-basis
net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, amortization and accretion
methods of premiums and discounts on fixed income securities, the accrual of income on securities in default, the treatment
of residual interests in tender option bond trusts and the deferral of compensation to Trustees.
|
|
5
|
|
The Trusts have elected to defer certain
qualified late-year losses and recognize such losses in the year ending July 31, 2014.
|
As of July 31, 2013, 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
|
|
BNJ
|
|
BNY
|
|
2014
|
|
|
|
$
|
1,681,553
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
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 date
6
|
|
|
|
|
2,322
|
|
|
|
292,085
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
Total
|
|
|
|
$
|
19,012,687
|
|
|
$
|
748,482
|
|
|
$
|
6,860,350
|
|
|
$
|
869,831
|
|
|
$
|
5,871,615
|
|
|
6
|
|
Must be utilized prior to losses subject
to expiration.
|
During the year ended July 31, 2013, the Trusts listed below utilized the following amounts of their respective capital loss
carryforward:
|
BFZ
|
|
|
|
$3,512,133
|
|
BBF
|
|
|
|
$1,901,334
|
|
BNJ
|
|
|
|
$1,386,254
|
|
BNY
|
|
|
|
$1,103,548
|
As of July 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as
follows:
|
|
|
|
BFZ
|
|
BFO
|
|
BBF
|
|
BTT
|
|
BNJ
|
|
BNY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax
cost
|
|
|
|
$
|
594,856,556
|
|
|
$
|
100,794,689
|
|
|
$
|
123,070,189
|
|
|
$
|
2,403,466,761
|
|
|
$
|
167,514,468
|
|
|
$
|
275,330,630
|
|
|
Gross unrealized appreciation
|
|
|
|
$
|
37,401,349
|
|
|
$
|
4,115,279
|
|
|
$
|
8,641,796
|
|
|
$
|
16,652
|
|
|
$
|
6,023,210
|
|
|
$
|
6,251,597
|
|
|
Gross unrealized depreciation
|
|
|
|
|
(7,428,339
|
)
|
|
|
(1,758,735
|
)
|
|
|
(3,052,852
|
)
|
|
|
(305,424,084
|
)
|
|
|
(5,490,974
|
)
|
|
|
(12,082,231
|
)
|
|
Net
unrealized appreciation(depreciation)
|
|
|
|
$
|
29,973,010
|
|
|
$
|
2,356,544
|
|
|
$
|
5,588,944
|
|
|
$
|
(305,407,432
|
)
|
|
$
|
532,236
|
|
|
$
|
(5,830,634
|
)
|
|
60
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
8. Concentration, Market and Credit Risk:
BFZ, BFO, BNJ and BNY invest a substantial amount of their assets
in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states or US
territories.
Many municipalities insure repayment of their bonds, which may
reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the
value of such insurance, and there is no guarantee that the insurer will meet its obligation.
In the normal course of business, the Trusts invest in securities
and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its
obligations (issuer credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly
involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or
global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Trusts may
be exposed to counterparty credit risk, or the risk that an entity with which the Trusts have unsettled or open transactions may fail to or be unable
to perform on its commitments. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that they believe have
the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which
potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from
counterparties. The extent of the Trusts’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is
generally approximated by their value recorded in the Trusts’ Statements of Assets and Liabilities, less any collateral held by the
Trusts.
As of July 31, 2013, BFZ and BFO invested a significant portion of
their assets in securities in the County/City/Special District/School District and Utilities sectors. BBF and BNY invested a significant portion of
their assets in securities in the County/City/Special District/School District sector. BNJ invested a significant portion of its assets in securities
in the State sector. BTT invested a significant portion of its assets in the Transportation sector. Changes in economic conditions affecting the
County/City/Special District/School District, State, Utilities and Transportation sectors would have a greater impact on the Trusts and could affect
the value, income and/or liquidity of positions in such securities.
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. The Board is authorized, however,
to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders.
At July 31, 2013, 5,571 Common Shares of BTT were owned by
affiliates.
Upon commencement of operations, organization costs associated
with the establishment of the BTT were expensed by BTT. Offering costs incurred in connection with BTT’s offering of Common Shares have been
charged against the proceeds from the initial Common Share offering in the amount of $2,612,000.
Common Shares
For the years shown, shares issued and outstanding increased by
the following amounts as a result of dividend reinvestment:
|
|
|
|
Year Ended
July 31,
2013
|
|
Year Ended
July 31,
2012
|
|
BFZ
|
|
|
|
|
36,393
|
|
|
|
10,886
|
|
|
BBF
|
|
|
|
|
3,273
|
|
|
|
4,149
|
|
|
BNJ
|
|
|
|
|
17,491
|
|
|
|
19,942
|
|
|
BNY
|
|
|
|
|
36,314
|
|
|
|
48,391
|
|
Shares issued and outstanding remained constant for BFO for the
year ended July 31, 2013 and for the year ended July 31, 2012.
For BTT, shares issued and outstanding for the period August 30,
2012 to July 31, 2013, increased by 62,000,000 from the initial public offering and 8,500,000 from the underwriters’ exercising the over-allotment
option.
Preferred Shares
The Trusts’ Preferred Shares rank prior to the Trusts’
Common Shares as to the payment of dividends by the Trusts and distribution of assets upon dissolution or liquidation of the Trusts. The 1940 Act
prohibits the declaration of any dividend on the Trusts’ Common Shares or the repurchase of the Trusts’ Common Shares if the Trusts fail to
maintain the asset coverage of at least 200% of the liquidation preference of the outstanding Preferred Shares. In addition, pursuant to the Preferred
Shares’ governing instrument, the Trusts are restricted from declaring and paying dividends on classes of shares ranking junior to or on parity
with the Preferred Shares or repurchasing such shares if the Trusts fail to declare and pay dividends on the Preferred Shares, redeem any Preferred
Shares required to be redeemed under the Preferred Shares governing instrument or comply with the basic maintenance amount requirement of the rating
agencies then 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 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.
|
ANNUAL REPORT
|
JULY 31, 2013
|
61
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
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.
The VRDP Shares outstanding as of the year ended July 31, 2013
were as follows:
|
|
|
|
Issue
Date
|
|
Shares
Issued
|
|
Aggregate
Principal
|
|
Maturity
Date
|
|
BBF
|
|
|
|
|
9/15/11
|
|
|
|
342
|
|
|
$
|
34,200,000
|
|
|
|
10/01/41
|
|
BBF has entered into a fee agreement with the liquidity provider
that required a per annum liquidity fee payable to the liquidity provider. These fees are shown as liquidity fees in the Statements of
Operations.
The initial fee agreement between BBF and the liquidity provider
was for a 364 day term and was scheduled to expire on September 15, 2012 and subsequently extended until March 15, 2013, unless renewed or terminated
in advance. On November 29, 2012, BBF entered into a new fee agreement with an alternate liquidity provider. The new fee agreement is for a 2 year term
and is scheduled to expire on December 4, 2014, unless renewed or terminated in advance. The change in liquidity provider resulted in a mandatory
tender of BBF’s VRDP Shares on November 28, 2012 which were successfully remarketed by the remarketing agent.
In the event the fee agreement is not renewed or is terminated in
advance, and BBF does not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the
liquidity provider prior to the termination of the fee agreement. BBF is required to redeem any VRDP Shares purchased by the liquidity provider six
months after the purchase date. Immediately after the purchase of any VRDP Shares by the liquidity provider, BBF is required to begin to segregate
liquid assets with 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 the 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, VRDP Shares may be redeemed, in
whole or in part, at any time at the option of BBF. The redemption price per VRDP Share is equal to the liquidation value per share plus any
outstanding unpaid dividends. In the event of an optional redemption of VRDP Shares prior to the initial termination date of the fee agreement, BBF
must pay the liquidity provider fees on such redeemed VRDP Shares for the remaining term of the fee agreement up to the initial termination
date.
Dividends on the VRDP Shares are payable monthly at a variable
rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. In
the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among
other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed. At
the date of issuance, the VRDP Shares were assigned a long-term rating of Aaa from Moody’s and AAA from Fitch. In May 2012, Moody’s completed
the review of its methodology for rating securities issued by registered closed-end funds. As of July 31, 2013, 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 S&P. A change in the short-term credit rating of the liquidity
provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not
directly related based upon either short-term rating. As of July 31, 2013, 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 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 were successfully remarketed, with an annualized dividend rate of 0.26% for the year ended July 31,
2013.
|
62
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
VMTP Shares
BFZ, BNJ and BNY (collectively, the “VMTP Funds”) have
issued Series W-7 VMTP Shares, $100,000 liquidation value per share, in a privately negotiated offering and sale of VMTP Shares exempt from
registration under the Securities Act.
The VMTP Shares outstanding as of the year ended July 31, 2013
were as follows:
|
|
|
|
Issue
Date
|
|
Shares
Issued
|
|
Aggregate
Principal
|
|
Term
Date
|
|
BFZ
|
|
|
|
|
3/22/12
|
|
|
|
1,713
|
|
|
$
|
171,300,000
|
|
|
|
4/01/15
|
|
|
BNJ
|
|
|
|
|
3/22/12
|
|
|
|
591
|
|
|
$
|
59,100,000
|
|
|
|
4/01/15
|
|
|
BNY
|
|
|
|
|
3/22/12
|
|
|
|
945
|
|
|
$
|
94,500,000
|
|
|
|
4/01/15
|
|
The VMTP Funds are required to redeem their VMTP Shares on the
term date, unless earlier redeemed or repurchased or unless extended. There is no assurance that the term of the Trusts’ VMTP Shares will be
extended or that the Trusts’ VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or
repurchase of the VMTP Shares. Six months prior to term date, the VMTP Funds are required to begin to segregate liquid assets with the Trusts’
custodian to fund the redemption. In addition, the Trusts are required to redeem certain of their outstanding VMTP Shares if they fail to maintain
certain asset coverage, basic maintenance amount or leverage requirements.
Subject to certain conditions, the Trusts’ VMTP Shares may be
redeemed, in whole or in part, at any time at the option of the Trusts. 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 Trusts redeem 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 the Trusts 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. In May 2012, Moody’s completed the review
of its methodology for rating securities issued by registered closed-end funds. As of July 31, 2013, 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 Trusts fail to comply with certain provisions, including, among other things, the timely
payment of dividends, redemptions or gross-up payments, and maintaining certain asset coverage and leverage requirements.
The average annualized dividend rates for the VMTP Shares for the
year ended July 31, 2013 were as follows:
|
|
|
|
Rate
|
|
BFZ
|
|
|
|
|
1.13
|
%
|
|
BNJ
|
|
|
|
|
1.13
|
%
|
|
BNY
|
|
|
|
|
1.13
|
%
|
For financial reporting purposes, the VMTP Shares are considered
debt of the issuer; therefore the liquidation value, which approximates fair value, of the VMTP Shares is recorded as a liability in the Statements of
Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the
dividends accrued and paid on the VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the
Statements of Operations. The VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VMTP Shares are generally classified
as tax-exempt income for tax-reporting purposes.
VMTP Shares issued and outstanding for BFZ, BNJ and BNY remained
constant for the year ended July 31, 2013.
RVMTP Shares
BTT has offered for issuance 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. BTT has
entered into an agreement with a qualified institutional buyer (the “Purchaser”) to sell up to $750,000,000 in Series W-7 RVMTP Shares to the
Purchaser, and in connection with such agreement, BTT has sold $750,000,000 in RVMTP to the Purchaser as of July 31, 2013.
The RVMTP Shares outstanding as of July 31, 2013 were as
follows:
|
|
|
|
Issue
Date
|
|
Shares
Issued
|
|
Aggregate
Principal
|
|
Term
Date
|
|
BTT
|
|
|
|
|
1/10/2013
|
|
|
|
50
|
|
|
$
|
250,000,000
|
|
|
|
12/31/2030
|
|
|
|
|
|
|
|
1/30/2013
|
|
|
|
50
|
|
|
$
|
250,000,000
|
|
|
|
12/31/2030
|
|
|
|
|
|
|
|
2/20/2013
|
|
|
|
50
|
|
|
$
|
250,000,000
|
|
|
|
12/31/2030
|
|
BTT is required to redeem its RVMTP Shares on the term date or
within six months of an unsuccessful remarketing, unless earlier redeemed or repurchased. There is no assurance that 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
|
ANNUAL REPORT
|
JULY 31, 2013
|
63
|
|
|
|
|
Notes to Financial Statements (continued)
|
|
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 Securities Industry and Financial Markets Association Municipal Swap Index (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 6 months from the remarketing date for such failed remarketing, provided that no redemption of any RVMTP Share may occur within 1 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 the Fund fails to comply with certain provisions, including, among
other things, the timely payment of dividends, redemptions or gross-up payments, and maintaining certain asset coverage and leverage
requirements.
There were no RVMTP Shares that were tendered for remarketing
during the period ended July 31, 2013.
The average annualized dividend rate for the BTT RVMTP Shares for
the period ended July 31, 2013 was 0.76%.
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.
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
The AMPS are redeemable at the option of BFO, in whole or in part,
on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The AMPS are
also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain
requirements relating to the composition of the assets and liabilities of BFO, as set forth in BFO’s Statement of Preferences (the “Governing
Instrument”) are not satisfied.
From time to time in the future, BFO may effect repurchases of its
AMPS at prices below their liquidation preference as agreed upon by BFO and seller. BFO also may redeem its AMPS from time to time as provided in the
applicable Governing Instrument. BFO intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset
coverage requirements or for such other reasons as the Board may determine.
The BFO had the following series of AMPS outstanding, effective
yields and reset frequency as of July 31, 2013:
|
|
|
|
Series
|
|
Preferred
Shares
|
|
Effective
Yield
|
|
Reset
Frequency
Days
|
|
BFO
|
|
|
|
|
F7
|
|
|
|
764
|
|
|
|
0.17
|
%
|
|
7
|
Dividends on seven-day AMPS are cumulative at a rate which is
reset every seven days based on the results of an auction. If the AMPS fail to clear the auction on an auction date, BFO is required to pay the maximum
applicable rate on the AMPS to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The
maximum applicable rate on all series of AMPS prior to November 1, 2012 was the higher of 110% of the AA commercial paper rate or 100% of 90% of the
Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. The Kenny S&P 30-day High Grade Index was discontinued as
of November 1, 2012. For purposes of calculating the maximum applicable rate, the Kenny S&P 30-day High Grade Index was replaced with the S&P
Municipal Bond 7 Day High Grade Rate Index as of November 1, 2012. The low, high and average dividend rates on the AMPS for BFO for the year ended July
31, 2013 were as follows:
|
|
|
|
Series
|
|
Low
|
|
High
|
|
Average
|
|
BFO
|
|
|
|
|
F7
|
|
|
|
0.08
|
%
|
|
|
0.38
|
%
|
|
|
0.22
|
%
|
|
64
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Notes to Financial Statements (concluded)
|
|
Since February 13, 2008, the AMPS of BFO failed to clear any of
their auctions. As a result, the AMPS dividend rates were reset to the maximum applicable rate, which ranged from 0.08% to 0.38% for the year ended
July 31, 2013. A failed auction is not an event of default for BFO but it has a negative impact on the liquidity of AMPS. A failed auction occurs when
there are more sellers of BFO’s AMPS than buyers. A successful auction for BFO’s AMPS may not occur for some time, if ever, and even if
liquidity does resume, holders of AMPS may not have the ability to sell the AMPS at their liquidation preference.
BFO pays commissions of 0.15% on the aggregate principal amount of
all shares that fail to clear their auctions and 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Certain
broker dealers have individually agreed to reduce commissions for failed auctions. The commissions paid to these broker dealers are included in
remarketing fees on Preferred Shares in the Statements of Operations.
During the year ended July 31, 2013, 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
|
|
|
|
1/22/13
|
|
|
|
132
|
|
|
$
|
3,300,000
|
|
|
|
|
|
|
|
F-7
|
|
|
|
1/28/13
|
|
|
|
540
|
|
|
$
|
13,500,000
|
|
|
|
|
|
|
|
F-7
|
|
|
|
7/1/13
|
|
|
|
280
|
|
|
$
|
7,000,000
|
|
During the year ended July 31, 2012, certain Trusts 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
|
|
BFZ
|
|
|
|
|
T-7
|
|
|
|
4/18/12
|
|
|
|
2,351
|
|
|
$
|
58,775,000
|
|
|
|
|
|
|
|
R-7
|
|
|
|
4/13/12
|
|
|
|
2,351
|
|
|
$
|
58,775,000
|
|
|
|
|
|
|
|
F-7
|
|
|
|
4/16/12
|
|
|
|
2,151
|
|
|
$
|
58,775,000
|
|
|
BBF
|
|
|
|
|
T-7
|
|
|
|
10/12/11
|
|
|
|
1,370
|
|
|
$
|
34,250,000
|
|
|
BNJ
|
|
|
|
|
R-7
|
|
|
|
4/13/12
|
|
|
|
2,364
|
|
|
$
|
59,100,000
|
|
|
BNY
|
|
|
|
|
W-7
|
|
|
|
4/12/12
|
|
|
|
1,890
|
|
|
$
|
47,250,000
|
|
|
|
|
|
|
|
F-7
|
|
|
|
4/16/12
|
|
|
|
1,890
|
|
|
$
|
47,250,000
|
|
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 on September 3,
2013 to Common Shareholders of record on August 15, 2013:
|
|
|
|
Common
Dividend
Per Share
|
|
BFZ
|
|
|
|
$
|
0.077700
|
|
|
BFO
|
|
|
|
$
|
0.056000
|
|
|
BBF
|
|
|
|
$
|
0.072375
|
|
|
BTT
|
|
|
|
$
|
0.093750
|
|
|
BNJ
|
|
|
|
$
|
0.075100
|
|
|
BNY
|
|
|
|
$
|
0.069000
|
|
Additionally, the Trusts declared a net investment income dividend
on September 3, 2013 payable to Common Shareholders of record on September 16, 2013 for the same amounts noted above.
The dividends declared on Preferred Shares for the period August
1, 2013 to August 31, 2013 were as follows:
|
|
|
|
Series
|
|
Dividends
Declared
|
|
BFZ
VMTP Shares
|
|
|
|
|
W-7
|
|
|
$
|
153,560
|
|
|
BFO
AMPS
|
|
|
|
|
F-7
|
|
|
$
|
1,774
|
|
|
BBF
VRDP Shares
|
|
|
|
|
W-7
|
|
|
$
|
4,816
|
|
|
BNJ
VMTP Shares
|
|
|
|
|
W-7
|
|
|
$
|
52,980
|
|
|
BNY
VMTP Shares
|
|
|
|
|
W-7
|
|
|
$
|
84,713
|
|
On September 9, 2013, BFO redeemed 80 AMPS at a price of $25,000
per share and an aggregate principal of $2,000,000.
|
ANNUAL REPORT
|
JULY 31, 2013
|
65
|
|
|
|
Report of Independent Registered Public Accounting Firm
|
To the Shareholders and Board of Trustees of
BlackRock California Municipal Income Trust,
BlackRock Florida Municipal 2020 Term Trust,
BlackRock Municipal Income Investment Trust,
BlackRock New Jersey
Municipal Income Trust,
BlackRock New York Municipal Income Trust, and
BlackRock Municipal Target Term
Trust:
We have audited the accompanying statements of assets and
liabilities, including the schedules of investments, of BlackRock California Municipal Income Trust, BlackRock Florida Municipal 2020 Term Trust,
BlackRock Municipal Income Investment Trust, BlackRock New Jersey Municipal Income Trust, and BlackRock New York Municipal Income Trust, (each a
“Trust”) as of July 31, 2013, and the related statements of operations and cash flows for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. We
have also audited the accompanying statement of assets and liabilities, including the schedule of investments, of BlackRock Municipal Target Term Trust
(collectively with each Trust, the “Trusts”) as of July 31, 2013, and the related statements of operations, cash flows, changes in net
assets, and the financial highlights for the period August 30, 2012 (commencement of operations) to July 31, 2013. 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 audits to obtain reasonable assurance
about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we
engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Trusts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities
owned as of July 31, 2013, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing
procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial positions of BlackRock California Municipal Income Trust, BlackRock Florida
Municipal 2020 Term Trust, BlackRock Municipal Income Investment Trust, BlackRock New Jersey Municipal Income Trust, BlackRock New York Municipal
Income Trust, and BlackRock Municipal Target Term Trust as of July 31, 2013, and the results of their operations, cash flows, the changes in their net
assets, and the financial highlights for each of the periods presented in conformity with accounting principles generally accepted in the United States
of America.
Deloitte & Touche LLP
Boston, Massachusetts
September
25, 2013
|
66
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements
|
The Board of Directors or Trustees, as applicable (each, a
“Board,” collectively, the “Boards,” and the members of which are referred to as “Board Members”) of BlackRock California
Municipal Income Trust (“BFZ”), BlackRock Florida Municipal 2020 Term Trust (“BFO”), BlackRock Municipal Income Investment Trust
(“BBF”), BlackRock New Jersey Municipal Income Trust (“BNJ”) and BlackRock New York Municipal Income Trust (“BNY” and
together with BFZ, BFO, BBF, and BNJ, each a “Fund,” and, collectively, the “Funds”) met in person on April 18, 2013 (the
“April Meeting”) and June 4-5, 2013 (the “June Meeting”) to consider the approval of each Fund’s investment advisory agreement
(each, an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. The Board of
each Fund also considered the approval of the sub-advisory agreement (each, a “Sub-Advisory Agreement”) among the Manager, BlackRock
Financial Management, Inc. (the “Sub-Advisor”), and its Fund. The Manager and the Sub-Advisor are referred to herein as
“BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements are referred to herein as the “Agreements.”
Activities and Composition of the Board
Each Board consists of eleven individuals, nine of whom are not
“interested persons” of such Fund as defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Board
Members”). The Board Members are responsible for the oversight of the operations of the Funds and perform the various duties imposed on the
directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection
with their duties. The Chairman of each Board is an Independent Board Member. Each Board has established six standing committees: an Audit Committee, a
Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee, an Executive Committee, and a Leverage Committee, each
of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee and the Leverage
Committee, each of which also has one interested Board Member).
The Agreements
Pursuant to the 1940 Act, the Boards are required to consider the
continuation of the Agreements on an annual basis. The Boards have four quarterly meetings per year, each extending over two days, and a fifth one-day
meeting to consider specific information surrounding the consideration of renewing the Agreements. In connection with this process, the Boards
assessed, among other things, the nature, scope and quality of the services provided to the Funds by BlackRock, its personnel and its affiliates,
including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services, risk oversight,
compliance and assistance in meeting applicable legal and regulatory requirements.
The Boards, acting directly and through their respective
committees, considered at each of their meetings, and from time to time as appropriate, factors that are relevant to their annual consideration of the
renewal of the Agreements, including the services and support provided by BlackRock to the Funds and their shareholders. Among the matters the Boards
considered were: (a) investment performance for one-year, three-year, five-year and/or since inception periods, as applicable, against peer funds, and
applicable benchmarks, if any, as well as senior management’s and portfolio managers’ analysis of the reasons for any over-performance or
underperformance against their peers and/or benchmark, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts
paid to BlackRock and its affiliates by the Funds for services such as call center and fund accounting; (c) Fund operating expenses and how BlackRock
allocates expenses to the Funds; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Funds’
investment objectives, policies and restrictions; (e) the Funds’ compliance with their Code of Ethics and other compliance policies and
procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and
other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting
policies approved by the Boards; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of the Funds’ valuation and
liquidity procedures; (k) an analysis of management fees for products with similar investment objectives across the open-end fund, closed-end fund and
institutional account product channels, as applicable; (l) BlackRock’s compensation methodology for its investment professionals and the
incentives it creates; and (m) periodic updates on BlackRock’s business.
The Boards have engaged in an ongoing strategic review with
BlackRock of opportunities to consolidate funds and of BlackRock’s commitment to investment performance. In addition, the Boards requested and
BlackRock provided an analysis of fair valuation and stale pricing policies. BlackRock also furnished information to the Boards in response to specific
questions. These questions covered issues such as BlackRock’s profitability, investment performance and management fee levels. The Boards further
considered the importance of: (i) organizational and structural variables to investment performance; (ii) rates of portfolio turnover; (iii)
BlackRock’s performance accountability for portfolio managers; (iv) marketing support for the funds; (v) services provided to the Funds by
BlackRock affiliates; and (vi) BlackRock’s oversight of relationships with third party service providers.
The Board of each Trust considered BlackRock’s efforts during
the past year with regard to refinancing outstanding AMPS, as well as ongoing time and resources devoted to other forms of preferred shares and
alternative leverage. As of the date of this report, BFZ, BBF, BNJ and BNY have each redeemed 100% of its outstanding AMPS and BFO has redeemed 60.9%
of its outstanding AMPS.
Board Considerations in Approving the
Agreements
The Approval Process:
Prior to the April Meeting, the
Boards requested and received materials specifically relating to the Agreements. The Boards are engaged in a process with its independent legal counsel
and BlackRock to review the nature and scope of the information provided to better assist their deliberations. The materials provided in connection
with the April Meeting included (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on Fund fees and expenses as
compared with a peer group of funds as determined by Lipper (“Expense Peers”) and the investment performance of the Funds as compared with a
peer group of
|
ANNUAL REPORT
|
JULY 31, 2013
|
67
|
|
|
|
Disclosure of Investment Advisory Agreements and Sub-Advisory
Agreements (continued)
|
funds as determined by Lipper
1
and, where
applicable, a customized peer group selected by BlackRock; (b) information on the profits realized by BlackRock and its affiliates pursuant to the
Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (c) a general analysis provided by BlackRock concerning investment
management fees charged to other clients, such as institutional clients and open-end funds, under similar investment mandates, as applicable; (d)
review of non-management fees; (e) the existence, impact and sharing of potential economies of scale; (f) a summary of aggregate amounts paid by each
Fund to BlackRock and (g) if applicable, a comparison of management fees to similar BlackRock closed-end funds, as classified by
Lipper.
At the April Meeting, the Boards reviewed materials relating to
their consideration of the Agreements. As a result of the discussions that occurred during the April Meeting, and as a culmination of the Boards’
year-long deliberative process, the Boards presented BlackRock with questions and requests for additional information. BlackRock responded to these
requests with additional written information in advance of the June Meeting.
At the June Meeting, each Board, including the Independent Board
Members, unanimously approved the continuation of the Advisory Agreement between the Manager and its Fund, and the Sub-Advisory Agreement among the
Manager, the Sub-Advisor, and its Fund, each for a one-year term ending June 30, 2014. In approving the continuation of the Agreements, the Boards
considered: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Funds and BlackRock; (c)
the advisory fee and the cost of the services and profits to be realized by BlackRock and its affiliates from their relationship with the Funds; (d)
the Funds’ costs to investors compared to the costs of Expense Peers and performance compared to the relevant performance comparison as previously
discussed; (e) economies of scale; (f) fall-out benefits to BlackRock as a result of its relationship with the Funds; and (g) other factors deemed
relevant by the Board Members.
The Boards also considered other matters they deemed important to
the approval process, such as payments made to BlackRock or its affiliates relating to securities lending, services related to the valuation and
pricing of Fund portfolio holdings, direct and indirect benefits to BlackRock and its affiliates from their relationship with the Funds and advice from
independent legal counsel with respect to the review process and materials submitted for the Boards’ review. The Boards noted the willingness of
BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as determinative, and
each Board Member may have attributed different weights to the various items considered.
A. Nature, Extent and Quality of the Services Provided by
BlackRock:
The Boards, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock,
including the investment advisory services and the resulting performance of the Funds. Throughout the year, the Boards compared Fund performance to the
performance of a comparable group of closed-end funds and/or the
performance of a relevant benchmark, if any. The Boards met with
BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. Each Board also reviewed
the materials provided by its Fund’s portfolio management team discussing the Fund’s performance and the Fund’s investment objective,
strategies and outlook.
The Boards considered, among other factors, with respect to
BlackRock: the number, education and experience of investment personnel generally and their Funds’ portfolio management teams; investments by
portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities;
risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management
personnel. The Boards engaged in a review of BlackRock’s compensation structure with respect to their Funds’ portfolio management teams and
BlackRock’s ability to attract and retain high-quality talent and create performance incentives.
In addition to advisory services, the Boards considered the
quality of the administrative and other non-investment advisory services provided to the Funds. BlackRock and its affiliates provide the Funds with
certain services (in addition to any such services provided to the Funds by third parties) and officers and other personnel as are necessary for the
operations of the Funds. In particular, BlackRock and its affiliates provide the Funds with the following administrative services including, among
others: (i) preparing disclosure documents, such as the prospectus, the summary prospectus (as applicable) and the statement of additional information
in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary
market trading of the Funds; (iii) assisting with daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges;
(v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board
meetings; (vii) providing legal and compliance support; (viii) furnishing analytical and other support to assist the Boards in their consideration of
strategic issues such as the merger or consolidation of certain closed-end funds; and (ix) performing other administrative functions necessary for the
operation of the Funds, such as tax reporting, fulfilling regulatory filing requirements and call center services. The Boards reviewed the structure
and duties of BlackRock’s fund administration, shareholder services, legal and compliance departments and considered BlackRock’s policies and
procedures for assuring compliance with applicable laws and regulations.
B. The Investment Performance of the Funds and BlackRock:
Each Board, including the Independent Board Members, also reviewed and considered the performance history of its Fund. In preparation for the April
Meeting, the Boards worked with its independent legal counsel, BlackRock and Lipper to develop a template for, and were provided with reports
independently prepared by Lipper, which included a comprehensive analysis of each Fund’s performance. The Boards also reviewed a narrative and
statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In
connection with their review, each Board received and reviewed information regarding the investment performance, based on net asset value (NAV), of its
Fund
|
1
|
|
Lipper ranks funds in quartiles, ranging
from first to fourth, where first is the most desirable quartile position and fourth is the least desirable.
|
|
68
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ANNUAL REPORT
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JULY 31, 2013
|
|
|
|
Disclosure of Investment Advisory Agreements and Sub-Advisory
Agreements (continued)
|
as compared to other funds in that Fund’s applicable
Lipper category and, where applicable, the customized peer group selected by BlackRock. The Boards were provided with a description of the methodology
used by Lipper to select peer funds and periodically meets with Lipper representatives to review their methodology. The Boards and each Board’s
Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of the Funds throughout the
year.
The Board of BFZ noted that BFZ ranked in the third, second and
first quartiles against its Customized Lipper Peer Group Composite for the one-, three- and five-year periods reported, respectively. BlackRock
believes that the Customized Lipper Peer Group Composite is an appropriate performance metric for BFZ in that it measures a blend of total return and
yield. The Board of BFZ and BlackRock reviewed and discussed the reasons for BFZ’s underperformance during the one-year period and will monitor
BFZ’s performance in the coming year.
The Board of BFO noted that BFO ranked in the fourth, third and
fourth quartiles against its Lipper Performance Universe Composite for the one-, three- and five-year periods reported, respectively. BlackRock
believes that the Lipper Performance Universe Composite is an appropriate performance metric for BFO in that it measures a blend of total return and
yield. The Board of BFO and BlackRock reviewed and discussed the reasons for BFO’s underperformance during these periods compared to its Lipper
Performance Universe Composite. BFO’s Board was informed that, among other things, BFO has a targeted maturity, and as such is managed to achieve
the specific maturity goal.
The Board of BBF noted that BBF ranked in the third, third and
second quartiles against its Customized Lipper Peer Group Composite for the one-, three- and five-year periods reported, respectively. BlackRock
believes that the Customized Lipper Peer Group Composite is an appropriate performance metric for BBF in that it measures a blend of total return and
yield. The Board of BBF and BlackRock reviewed and discussed the reasons for BBF’s underperformance during the one- and three-year periods
compared to its Customized Lipper Peer Group Composite. BBF’s Board was informed that, among other things, BBF’s underperformance is
attributed to its below market average distribution yield for the one- and three-year periods. The challenge going forward for BBF is seeking ways to
increase its yield component. One disadvantage BBF has versus its Customized Lipper Peer Group Composite is that its prospectus does not allow it to
purchase securities that are subject to the alternative minimum tax (AMT), which provides peer funds with additional yield.
The Board of BBF and BlackRock also discussed BlackRock’s
strategy for improving BBF’s performance and BlackRock’s commitment to providing the resources necessary to assist BBF’s portfolio
managers and to improve BBF’s performance.
The Board of BNJ noted that BNJ ranked in the first quartile
against its Customized Lipper Peer Group Composite for each of the one-, three- and five-year periods reported. BlackRock believes that the Customized
Lipper Peer Group Composite is an appropriate performance metric for BNJ in that it measures a blend of total return and yield.
The Board of BNY noted that BNY ranked in the second, first and
first quartiles against its Customized Lipper Peer Group Composite for the one-, three- and five-year periods reported, respectively. BlackRock
believes that the Customized Lipper Peer Group Composite is an appropriate performance metric for BNY in that it measures a blend of total return and
yield.
The Boards noted that BlackRock has recently made, and continues
to make, changes to the organization of BlackRock’s overall portfolio management structure designed to result in strengthened leadership
teams.
C. Consideration of the Advisory/Management Fees and the Cost of the Services and Profits to be Realized
by BlackRock and its Affiliates from their Relationship with the Funds:
Each Board, including the Independent Board
Members, reviewed its Fund’s contractual management fee rate compared with the other funds in its Lipper category.
The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking
into account any reimbursements or fee waivers. Each Board also compared its Fund’s total net operating expense ratio,
as well as actual management fee rate, to those of other funds in its Lipper category. The total net operating expense ratio
and actual management fee rate both give effect to any expense reimbursements or fee waivers that benefit the funds. The
Boards considered the services provided and the fees charged by BlackRock to other types of clients with similar investment
mandates, including institutional accounts.
The Boards received and reviewed statements relating to
BlackRock’s financial condition. The Boards were also provided with a profitability analysis that detailed the revenues earned and the expenses
incurred by BlackRock for services provided to the Funds. The Boards reviewed BlackRock’s profitability with respect to the Funds and other funds
the Boards currently oversee for the year ended December 31, 2012 compared to available aggregate profitability data provided for the prior two years.
The Boards reviewed BlackRock’s profitability with respect to certain other fund complexes managed by the Manager and/or its affiliates. The
Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in
allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other
things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. As a
result, comparing profitability is difficult.
The Boards noted that, in general, individual fund or product line
profitability of other advisors is not publicly available. The Boards reviewed BlackRock’s overall operating margin, in general, compared to that
of certain other publicly-traded asset management firms. The Boards considered the differences between BlackRock and these other firms, including the
contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.
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69
|
|
|
|
Disclosure of Investment Advisory Agreements and Sub-Advisory
Agreements (concluded)
|
In addition, the Boards considered the cost of the services
provided to the Funds by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management of the Funds and the other funds
advised by BlackRock and its affiliates. As part of its analysis, the Boards reviewed BlackRock’s methodology in allocating its costs to the
management of the Funds. The Boards also considered whether BlackRock has the financial resources necessary to attract and retain high quality
investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is
expected by the Boards.
The Board of each of BFZ and BFO noted that its respective
Fund’s contractual management fee rate ranked in the first quartile relative to the Fund’s Expense Peers.
The Board of each of BBF, BNJ and BNY noted that its respective
Fund’s contractual management fee rate ranked in the second quartile relative to the Fund’s Expense Peers.
D. Economies of Scale:
Each Board, including the
Independent Board Members, considered the extent to which economies of scale might be realized as the assets of its Fund increase. Each Board also
considered the extent to which its Fund benefits from such economies and whether there should be changes in the advisory fee rate or breakpoint
structure in order to enable the Fund to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based
upon the asset level of the Fund.
Based on the Boards’ review and consideration of the issue,
the Boards concluded that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial
growth after the initial public offering. They are typically priced at scale at a fund’s inception. The Boards noted that only one closed-end fund
in the Fund Complex has breakpoints in its advisory fee structure.
E. Other Factors Deemed Relevant by the Board Members:
The
Boards, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its
affiliates may derive from their respective relationships with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage
its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment
advisory community, and the engagement of BlackRock’s affiliates as service providers to the Funds, including securities lending and cash
management services. The Boards also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of,
its operations. The Boards also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain
registered fund transactions to assist in managing all or a number of its other client accounts. The Boards further noted that they had considered the
investment by BlackRock’s funds in exchange traded funds (i.e., ETFs) without any offset against the management fees payable by the funds to
BlackRock.
In connection with its consideration of the Agreements, the Boards
also received information regarding BlackRock’s brokerage and soft dollar practices. The Boards received reports from BlackRock which included
information on brokerage commissions and trade execution practices throughout the year.
The Boards noted the competitive nature of the closed-end fund
marketplace, and that shareholders are able to sell their Fund shares in the secondary market if they believe that the Fund’s fees and expenses
are too high or if they are dissatisfied with the performance of the Fund.
The Boards also considered the various notable initiatives and
projects BlackRock performed in connection with its closed-end fund product line. These initiatives included, including the completion of such
financing for BFZ, BBF, BNJ and BNY, the refinancing of auction rate preferred securities; efforts to eliminate product overlap with fund mergers;
ongoing services to manage leverage that has become increasingly complex; share repurchases and other support initiatives for certain BlackRock funds;
and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members
noted BlackRock’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive
secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. BlackRock’s support
services included, among other things: continuing communications concerning the refinancing efforts related to auction rate preferred securities;
sponsoring and participating in conferences; communicating with closed-end fund analysts covering the BlackRock funds throughout the year; providing
marketing and product updates for the closed-end funds; and maintaining and enhancing its closed-end fund website.
Conclusion
Each Board, including the Independent Board Members, unanimously
approved the continuation of the Advisory Agreement between the Manager and its Fund for a one-year term ending June 30, 2014, and the Sub-Advisory
Agreement among the Manager, the Sub-Advisor, and its Fund for a one-year term ending June 30, 2014. Based upon its evaluation of all of the
aforementioned factors in their totality, the Boards, including the Independent Board Members, were satisfied that the terms of the Agreements were
fair and reasonable and in the best interest of the Funds and their shareholders. In arriving at their decision to approve the Agreements, the Boards
did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board
Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of
independent legal counsel in making these determinations. The contractual fee arrangements for the Funds reflect the results of several years of review
by the Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. As a
result, the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.
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|
|
|
|
Automatic Dividend Reinvestment Plans
|
|
Pursuant to each Trust’s Dividend Reinvestment Plan (the
“Reinvestment Plan”), Common Shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by
Computershare Trust Company, N.A. (the “Reinvestment Plan Agent”) in the respective Trust’s shares pursuant to the Reinvestment Plan.
Shareholders who do not participate in the Reinvestment Plan will receive all distributions in cash paid by check and mailed directly to the
shareholders of record (or if the shares are held in street name or other nominee name, then to the nominee) by the Reinvestment Plan Agent, which
serves as agent for the shareholders in administering the Reinvestment Plan.
After BFZ, BBF, BNJ and BNY declares a dividend or determines to
make a capital gain distribution, the Reinvestment Plan Agent will acquire shares for the participants’ accounts, depending upon the following
circumstances, either (i) through receipt of unissued but authorized shares from the Trusts (“newly issued shares”) or (ii) by purchase of
outstanding shares on the open market or on the Trust’s primary exchange (“open-market purchases”). If, on the dividend payment date,
the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such
condition often referred to as a “market premium”), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares
acquired on behalf of the participants. The number of newly issued shares to be credited to each 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 dividend payment date, the dollar amount of the dividend will be divided by 95% of the market price on the dividend payment date. If, on the
dividend payment date, the NAV is greater than the market price per share plus estimated brokerage commissions (such condition often referred to as a
“market discount”), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in
open-market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend amount in open-market purchases, or if the market discount
shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any un-invested portion in newly issued shares.
Investments in newly issued shares made in this manner would be made pursuant to the same process described above and the date of issue for such newly
issued shares will substitute for the dividend payment date.
After BFO and BTT declare a dividend or determine to make a
capital gain distribution, the Reinvestment Plan Agent will acquire shares for the participants’ account by the purchase of outstanding shares on
the open market or on BFO’s or BTT’s primary exchange (“open-market purchases”). BFO and BTT will not issue any new shares under
the Reinvestment Plan.
Participation in the Reinvestment Plan is completely voluntary and
may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend
record date. Additionally, the Reinvestment Plan Agent seeks to process notices received after the record date but prior to the payable date and such
notices often will become effective by the payable date. Where late notices are not processed by the applicable payable date, such termination or
resumption will be effective with respect to any subsequently declared dividend or other distribution.
The Reinvestment Plan 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 Reinvestment 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
Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan. However, each Trust reserves the right to amend the
Reinvestment Plan to include a service charge payable by the participants. Participants that request a sale of shares are subject to a $2.50 sales fee
and a $0.15 per share fee. Per share fees include any applicable brokerage commissions the Reinvestment Plan Agent is required to pay. All
correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at
http://www.computershare.com/blackrock, or in writing to Computershare, P.O. Box 43078, Providence, RI 02940-3078, Telephone: (800) 699-1236. Overnight
correspondence should be directed to the Reinvestment Plan Agent at 250 Royall Street, Canton, MA 02021.
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71
|
Name, Address
and Year of Birth
|
|
|
|
Position(s)
Held with
Trusts
|
|
Length
of Time
Served as
a Trustee
2
|
|
Principal Occupation(s) During
Past Five Years
|
|
Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting
of
Investment Portfolios
(“Portfolios”) Overseen
|
|
Public
Directorships
|
|
Independent Trustees
1
|
|
|
|
Richard E. Cavanagh
55 East 52nd Street
New
York,
NY
10055
1946
|
|
|
|
Chairman of
the Board
and Trustee
|
|
Since
1994
|
|
Trustee, Aircraft Finance Trust from 1999 to 2009; Director,
The
Guardian
Life
Insurance
Company
of
America
since
1998;
Director,
Arch
Chemical
(chemical
and
allied
products)
from
1999
to
2011;
Trustee,
Educational
Testing
Service
from
1997
to
2009
and
Chairman
thereof
from
2005
to
2009;
Senior
Advisor,
The
Fremont
Group
since
2008
and
Director
thereof
since
1996;
Faculty
Member/Adjunct
Lecturer,
Harvard
University
since
2007;
President
and
Chief
Executive
Officer,
The
Conference
Board,
Inc.
(global
business
research
organization)
from
1995
to
2007.
|
|
94 RICs consisting of
90 Portfolios
|
|
None
|
|
|
|
Karen P. Robards
55 East 52nd Street
New
York,
NY
10055
1950
|
|
|
|
Vice Chairperson of the Board, Chairperson of the Audit
Committee
and
Trustee
|
|
Since
2007
|
|
Partner of Robards & Company, LLC (financial advisory
firm)
since
1987;
Co-founder
and
Director
of
the
Cooke
Center
for
Learning
and
Development
(a
not-for-profit
organization)
since
1987;
Director
of
Care
Investment
Trust,
Inc.
(health
care
real
estate
investment
trust)
from
2007
to
2010;
Investment
Banker
at
Morgan
Stanley
from
1976
to
1987.
|
|
94 RICs consisting of
90 Portfolios
|
|
AtriCure, Inc.
(medical devices); Greenhill &
Co.,
Inc.
|
|
|
|
Michael J. Castellano
55 East 52nd Street
New
York,
NY
10055
1946
|
|
|
|
Trustee and Member of the Audit Committee
|
|
Since
2011
|
|
Chief Financial Officer of Lazard Group LLC from 2001
to
2011;
Chief
Financial
Officer
of
Lazard
Ltd
from
2004
to
2011;
Director,
Support
Our
Aging
Religious
(non-profit)
since
2009;
Director,
National
Advisory
Board
of
Church
Management
at
Villanova
University
since
2010;
Trustee,
Domestic
Church
Media
Foundation
since
2012.
|
|
94 RICs consisting of
90 Portfolios
|
|
None
|
|
|
|
Frank J. Fabozzi
55 East 52nd Street
New
York,
NY
10055
1948
|
|
|
|
Trustee and Member of the Audit Committee
|
|
Since
1988
|
|
Editor of and Consultant for The Journal of Portfolio
Management
since
2006;
Professor
of
Finance,
EDHEC
Business
School
since
2011;
Professor
in
the
Practice
of
Finance
and
Becton
Fellow,
Yale
University
School
of
Management
from
2006
to
2011;
Adjunct
Professor
of
Finance
and
Becton
Fellow,
Yale
University
from
1994
to
2006.
|
|
94 RICs consisting of
90 Portfolios
|
|
None
|
|
|
|
Kathleen F. Feldstein
55 East 52nd Street
New
York,
NY
10055
1941
|
|
|
|
Trustee
|
|
Since
2005
|
|
President of Economics Studies, Inc. (private economic
consulting
firm)
since
1987;
Chair,
Board
of
Trustees,
McLean
Hospital
from
2000
to
2008
and
Trustee
Emeritus
thereof
since
2008;
Member
of
the
Board
of
Partners
Community
Healthcare,
Inc.
from
2005
to
2009;
Member
of
the
Corporation
of
Partners
HealthCare
since
1995;
Trustee,
Museum
of
Fine
Arts,
Boston
since
1992;
Member
of
the
Visiting
Committee
to
the
Harvard
University
Art
Museum
since
2003;
Director,
Catholic
Charities
of
Boston
since
2009.
|
|
94 RICs consisting of
90 Portfolios
|
|
The McClatchy
Company
(publishing)
|
|
|
|
James T. Flynn
55 East 52nd Street
New York,
NY
10055
1939
|
|
|
|
Trustee and Member of the Audit Committee
|
|
Since
2007
|
|
Chief Financial Officer of JPMorgan & Co., Inc. from
1990
to
1995.
|
|
94 RICs consisting of
90 Portfolios
|
|
None
|
|
|
|
Jerrold B. Harris
55 East 52nd Street
New
York,
NY
10055
1942
|
|
|
|
Trustee
|
|
Since
2007
|
|
Trustee, Ursinus College since 2000; Director, Troemner
LLC
(scientific
equipment)
since
2000;
Director
of
Delta
Waterfowl
Foundation
from
2010
to
2012;
President
and
Chief
Executive
Officer,
VWR
Scientific
Products
Corporation
from
1990
to
1999.
|
|
94 RICs consisting of
90 Portfolios
|
|
BlackRock Kelso
Capital Corp.
(business develop-
ment
company)
|
|
|
|
R. Glenn Hubbard
55 East 52nd Street
New
York,
NY
10055
1958
|
|
|
|
Trustee
|
|
Since
2004
|
|
Dean, Columbia Business School since 2004; Faculty member,
Columbia
Business
School
since
1988.
|
|
94 RICs consisting of
90 Portfolios
|
|
ADP (data and information services); KKR Financial Corporation
(finance);
Metropolitan
Life
Insurance
Company
(insurance)
|
|
72
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ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Officers and Trustees (continued)
|
|
Name, Address
and Year of Birth
|
|
|
|
Position(s)
Held with
Trusts
|
|
Length
of Time
Served as
a Trustee
2
|
|
Principal Occupation(s) During
Past Five Years
|
|
Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting
of
Investment Portfolios
(“Portfolios”) Overseen
|
|
Public
Directorships
|
|
Independent Trustees
1
(concluded)
|
|
|
|
W. Carl Kester
55 East 52nd Street
New York, NY 10055
1951
|
|
|
|
Trustee and Member of the Audit Committee
|
|
Since
2007
|
|
George Fisher Baker Jr. Professor of Business Administration,
Harvard
Business
School
since
2008;
Deputy
Dean
for
Academic
Affairs
from
2006
to
2010;
Chairman
of
the
Finance
Unit
from
2005
to
2006;
Senior
Associate
Dean
and
Chairman
of
the
MBA
Program
from
1999
to
2005;
Member
of
the
faculty
of
Harvard
Business
School
since
1981.
|
|
94 RICs consisting of
90 Portfolios
|
|
None
|
|
|
|
|
|
|
|
1
Trustees
serve until their
resignation, removal
or death, or until
December 31 of the
year in which they
turn 72. In 2011,
2012, and 2013,
the Board of Trustees
unanimously approved
extending the mandatory
retirement age for
James T. Flynn and
in 2013, the Board
unanimously approved
extending the retirement
age for Kathleen
F. Feldstein, in
each case, by one
additional year,
which the Board
believed would be
in the best interest
of shareholders.
Mr. Flynn can serve
until December 31
of the year in which
he turns 75 and
Ms. Feldstein can
serve until December
31 of the year in
which she turns
73. Mr. Flynn and
Ms. Feldstein turn
75 and 73, respectively,
in 2014.
|
|
|
|
|
|
2
Date
shown is the earliest
date a person has
served for the Trusts
covered by this
annual report. Following
the combination
of Merrill Lynch
Investment Managers,
L.P. (“MLIM”)
and BlackRock, Inc.
(“BlackRock”)
in September 2006,
the various legacy
MLIM and legacy
BlackRock fund boards
were realigned and
consolidated into
three new fund boards
in 2007. As a result,
although the chart
shows certain Trustees
as joining the Trusts’
board in 2007, those
Trustees first became
members of the boards
of other legacy
MLIM or legacy BlackRock
funds as follows:
Richard E. Cavanagh,
1994; Frank J. Fabozzi,
1988; Kathleen F.
Feldstein, 2005;
James T. Flynn,
1996; Jerrold B.
Harris, 1999; R.
Glenn Hubbard, 2004;W. Carl Kester,
1995; and Karen
P. Robards, 1998.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interested Trustees
3
|
|
|
|
Paul L. Audet
55 East 52nd Street
New York,
NY
10055
1953
|
|
|
|
Trustee
|
|
Since
2011
|
|
Senior Managing Director of BlackRock and Head of U.S.
Mutual
Funds
since
2011;
Chair
of
the
U.S.
Mutual
Funds
Committee
reporting
to
the
Global
Executive
Committee
since
2011;
Head
of
BlackRock’s
Real
Estate
business
from
2008
to
2011;
Member
of
BlackRock’s
Global
Operating
and
Corporate
Risk
Management
Committees
and
of
the
BlackRock
Alternative
Investors
Executive
Committee
and
Investment
Committee
for
the
Private
Equity
Fund
of
Funds
business
since
2008;
Head
of
BlackRock’s
Global
Cash
Management
business
from
2005
to
2010;
Acting
Chief
Financial
Officer
of
BlackRock
from
2007
to
2008;
Chief
Financial
Officer
of
BlackRock
from
1998
to
2005.
|
|
155 RICs consisting of
282 Portfolios
|
|
None
|
|
|
|
Henry Gabbay
55 East 52nd Street
New York, NY 10055
1947
|
|
|
|
Trustee
|
|
Since
2007
|
|
Consultant, BlackRock from 2007 to 2008; Managing Director,
BlackRock
from
1989
to
2007;
Chief
Administrative
Officer,
BlackRock
Advisors,
LLC
from
1998
to
2007;
President
of
BlackRock
Funds
and
BlackRock
Bond
Allocation
Target
Shares
from
2005
to
2007;
Treasurer
of
certain
closed-end
funds
in
the
BlackRock
fund
complex
from
1989
to
2006.
|
|
155 RICs consisting of
282 Portfolios
|
|
None
|
|
|
|
|
|
|
|
3
Mr.
Audet is an “interested
person,” as
defined in the 1940
Act, of the Trusts
based on his position
with BlackRock and
its affiliates as
well as his ownership
of BlackRock securities.
Mr. Gabbay is an
“interested
person” of
the Trusts based
on his former positions
with BlackRock and
its affiliates as
well as his ownership
of BlackRock and
The PNC Financial
Services Group,
Inc. securities.
Mr. Audet and Mr.
Gabbay are also
Directors of two
complexes of BlackRock
registered open-end
funds, the BlackRock
Equity-Liquidity
Complex and the
BlackRock Equity-Bond
Complex. Trustees
serve until their
resignation, removal
or death, or until
December 31 of the
year in which they
turn 72. The maximum
age limitation may
be waived as to
any Trustee by action
of a majority of
the Trustees upon
finding a good cause
thereof.
|
|
ANNUAL REPORT
|
JULY 31, 2013
|
73
|
|
|
|
|
Officers and Trustees (concluded)
|
|
Name, Address
and Year of Birth
|
|
|
|
Position(s)
Held with
Trusts
|
|
Length of
Time Served
|
|
Principal Occupation(s) During
Past Five Years
|
|
Officers
1
|
|
|
|
John M. Perlowski
55 East 52nd Street
New
York,
NY
10055
1964
|
|
|
|
President and Chief Executive Officer
|
|
Since
2011
|
|
Managing Director of BlackRock since 2009; Global Head
of
BlackRock
Fund
Services
since
2009;
Managing
Director
and
Chief
Operating
Officer
of
the
Global
Product
Group
at
Goldman
Sachs
Asset
Management,
L.P.
from
2003
to
2009;
Treasurer
of
Goldman
Sachs
Mutual
Funds
from
2003
to
2009
and
Senior
Vice
President
thereof
from
2007
to
2009;
Director
of
Goldman
Sachs
Offshore
Funds
from
2002
to
2009;
Director
of
Family
Resource
Network
(charitable
foundation)
since
2009.
|
|
|
|
Anne Ackerley
55 East 52nd Street
New York,
NY
10055
1962
|
|
|
|
Vice
President
|
|
Since
2007
2
|
|
Managing Director of BlackRock since 2000; Chief Marketing
Officer
of
BlackRock
since
2012;
President
and
Chief
Executive
Officer
of
the
BlackRock-advised
funds
from
2009
to
2011;
Vice
President
of
the
BlackRock-advised
funds
from
2007
to
2009;
Chief
Operating
Officer
of
BlackRock’s
Global
Client
Group
from
2009
to
2012;
Chief
Operating
Officer
of
BlackRock’s
U.S.
Retail
Group
from
2006
to
2009;
Head
of
BlackRock’s
Mutual
Fund
Group
from
2000
to
2006.
|
|
|
|
Brendan Kyne
55 East 52nd Street
New York,
NY
10055
1977
|
|
|
|
Vice
President
|
|
Since
2009
|
|
Managing Director of BlackRock since 2010; Director of
BlackRock
from
2008
to
2009;
Head
of
Product
Development
and
Management
for
BlackRock’s
U.S.
Retail
Group
since
2009
and
Co-head
thereof
from
2007
to
2009;
Vice
President
of
BlackRock
from
2005
to
2008.
|
|
|
|
Robert W. Crothers
55 East 52nd Street
New
York,
NY
10055
1981
|
|
|
|
Vice
President
|
|
Since
2012
|
|
Director of BlackRock since 2011; Vice President of BlackRock
from
2008
to
2010;
Associate
of
BlackRock
from
2006
to
2007.
|
|
|
|
Neal Andrews
55 East 52nd Street
New York,
NY
10055
1966
|
|
|
|
Chief
Financial
Officer
|
|
Since
2007
|
|
Managing Director of BlackRock since 2006; Senior Vice
President
and
Line
of
Business
Head
of
Fund
Accounting
and
Administration
at
PNC
Global
Investment
Servicing
(U.S.)
Inc.
from
1992
to
2006.
|
|
|
|
Jay Fife
55 East 52nd Street
New York, NY
10055
1970
|
|
|
|
Treasurer
|
|
Since
2007
|
|
Managing Director of BlackRock since 2007; Director of
BlackRock
in
2006;
Assistant
Treasurer
of
the
MLIM
and
Fund
Asset
Management,
L.P.
advised
funds
from
2005
to
2006;
Director
of
MLIM
Fund
Services
Group
from
2001
to
2006.
|
|
|
|
Brian Kindelan
55 East 52nd Street
New York,
NY
10055
1959
|
|
|
|
Chief Compliance Officer and
Anti-Money Laundering
Officer
|
|
Since
2007
|
|
Chief Compliance Officer of the BlackRock-advised funds
since
2007;
Managing
Director
and
Senior
Counsel
of
BlackRock
since
2005.
|
|
|
|
Janey Ahn
55 East 52nd Street
New York, NY 10055
1975
|
|
|
|
Secretary
|
|
Since
2012
|
|
Director of BlackRock since 2009; Vice President of BlackRock
from
2008
to
2009;
Assistant
Secretary
of
the
Funds
from
2008
to
2012;
Associate
at
Willkie
Farr
&
Gallagher
LLP
from
2006
to
2008.
|
|
|
|
|
|
1
Officers of the Trusts serve at the pleasure of the Boards.
|
|
|
|
|
|
2
Ms. Ackerley was
President and Chief Executive Officer from 2009 to 2011.
|
|
|
|
Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809
Sub-Advisors
BlackRock Financial Management,
Inc.
3
New York, NY 10055
BlackRock Investment Management, LLC
4
Princeton, NJ 08540
Custodian
State
Street Bank and Trust Company
Boston, MA 02110
|
|
|
|
Transfer Agent
Common Shares:
Computershare Trust Company, N.A.
Canton, MA 02021
AMPS Auction Agent
The
Bank of New York Mellon
New York, NY 10289
VRDP Tender and Paying Agent,
RVMTP Tender and Paying Agent and
VMTP Redemption and Paying
Agent
The Bank of New York Mellon
New York, NY 10289
|
|
VRDP Liquidity Provider
Barclays Bank PLC
New York, NY 10019
VRDP Remarketing Agent
Barclays Capital, Inc.
New
York, NY 10019
Accounting Agent
State Street Bank and
Trust Company
Boston, MA 02110
|
|
Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116
Legal Counsel
Skadden,
Arps, Slate,
Meagher & Flom LLP
New York, NY 10036
Address of the Trusts
100 Bellevue Parkway
Wilmington, DE
19809
|
|
3
|
|
For all Trusts except BTT.
|
|
74
|
ANNUAL REPORT
|
JULY 31, 2013
|
Proxy Results
The Annual Meeting of Shareholders was held on July 30, 2013 for
shareholders of record on June 3, 2013 to elect trustee nominees for each Trust. There were no broker non-votes with regard to any of the
Trusts.
Approved the Class III Trustees as follows:
|
|
|
|
|
|
|
Richard
E. Cavanagh
|
|
Kathleen
F. Feldstein
|
|
Henry
Gabbay
|
|
|
|
|
Votes
For
|
|
Votes
Withheld
|
|
Abstain
|
|
Votes
For
|
|
Votes
Withheld
|
|
Abstain
|
|
Votes
For
|
|
Votes
Withheld
|
|
Abstain
|
|
BFZ
|
|
|
|
|
26,318,606
|
|
|
|
702,077
|
|
|
|
0
|
|
|
|
26,152,662
|
|
|
|
868,021
|
|
|
|
0
|
|
|
|
26,301,469
|
|
|
|
719,214
|
|
|
|
0
|
|
|
BFO
|
|
|
|
|
4,841,166
|
|
|
|
251,431
|
|
|
|
0
|
|
|
|
4,835,860
|
|
|
|
256,737
|
|
|
|
0
|
|
|
|
4,830,442
|
|
|
|
262,155
|
|
|
|
0
|
|
|
BBF
|
|
|
|
|
5,588,582
|
|
|
|
120,134
|
|
|
|
0
|
|
|
|
5,563,254
|
|
|
|
145,462
|
|
|
|
0
|
|
|
|
5,587,179
|
|
|
|
121,537
|
|
|
|
0
|
|
|
BTT
|
|
|
|
|
64,145,867
|
|
|
|
1,949,415
|
|
|
|
0
|
|
|
|
64,000,253
|
|
|
|
2,095,029
|
|
|
|
0
|
|
|
|
64,013,433
|
|
|
|
2,081,849
|
|
|
|
0
|
|
|
BNJ
|
|
|
|
|
6,103,147
|
|
|
|
373,069
|
|
|
|
0
|
|
|
|
5,954,268
|
|
|
|
521,948
|
|
|
|
0
|
|
|
|
6,103,147
|
|
|
|
373,069
|
|
|
|
0
|
|
|
BNY
|
|
|
|
|
10,906,297
|
|
|
|
326,013
|
|
|
|
0
|
|
|
|
10,903,548
|
|
|
|
328,762
|
|
|
|
0
|
|
|
|
10,916,719
|
|
|
|
315,591
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jerrod
B. Harris
|
|
|
|
|
|
|
|
|
Votes
For
|
|
Votes
Withheld
|
|
Abstain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BFZ
|
|
|
|
|
26,254,074
|
|
|
|
766,609
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BFO
|
|
|
|
|
4,833,837
|
|
|
|
258,760
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BBF
|
|
|
|
|
5,585,781
|
|
|
|
122,935
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BTT
|
|
|
|
|
64,139,538
|
|
|
|
1,955,744
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BNJ
|
|
|
|
|
6,055,408
|
|
|
|
420,808
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BNY
|
|
|
|
|
10,916,332
|
|
|
|
315,978
|
|
|
|
0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Trusts listed above, Trustees whose term of office
continued after the Annual Meeting of Shareholders because they were
not up for election are Paul L. Audet, Michael J. Castellano, Frank J.
Fabozzi, James T. Flynn, R. Glenn Hubbard, W. Carl Kester and Karen P.
Robards.
Trust Certification
Certain Trusts are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding
compliance with the NYSE’s listing standards. The Trusts filed with the SEC the certification of its chief executive officer and chief financial
officer required by section 302 of the Sarbanes-Oxley Act.
|
ANNUAL REPORT
|
JULY 31, 2013
|
75
|
|
|
|
|
Additional Information (continued)
|
|
Regulation Regarding Derivatives
Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject
registered investment companies and advisers to registered investment companies to regulation by the CFTC if a fund invests more than a prescribed
level of its net assets in CFTC-regulated futures, options and swaps (“CFTC Derivatives”), or if a fund markets itself as providing
investment exposure to such instruments. To the extent a Trust uses CFTC-regulated futures, options and swaps, it intends to do so below such
prescribed levels and will not market itself as a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock
Advisors, LLC has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act
(“CEA”) pursuant to Rule 4.5 under the CEA. BlackRock Advisors, LLC is not, therefore, subject to registration or regulation as a
“commodity pool operator” under the CEA in respect of a Trust.
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 dividend distributions, the Trusts may at times pay out less than the entire amount of net
investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition
to net investment income earned in that month. As a result, the dividends paid by the Trusts for any particular month may be more or less than the
amount of net investment income earned by the Trusts during such month. The Trusts’ current accumulated but undistributed net investment income,
if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.
|
76
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Additional Information (continued)
|
|
General Information
On July 29, 2010, the Manager announced that a shareholder
derivative complaint was filed on July 27, 2010 in the Supreme Court of the State of New York, New York County with respect to BFZ and BNJ, which had
previously received a demand letter from a law firm on behalf of each trust’s common shareholders. The complaint was filed against the Manager,
BlackRock, BFZ, BNJ and certain of the directors, officers and portfolio managers (collectively, the “BlackRock Parties”) in connection with
the redemption of auction-market preferred shares, auction rate preferred shares, auction preferred shares and auction rate securities (collectively,
“AMPS”). The complaint alleged, among other things, that the BlackRock Parties breached their fiduciary duties to the common shareholders of
BFZ and BNJ (the “Shareholders”) by redeeming AMPS at their liquidation preference and alleges that such redemptions caused losses to the
Shareholders. On April 16, 2012, the plaintiffs amended their complaint and filed a consolidated shareholder derivative complaint which contained
similar substantive allegations to the original complaint but which did not include BNJ as a nominal defendant. On July 20, 2012, the BlackRock Parties
filed a motion to dismiss the Complaint (the “Dismissal Motion”). Plaintiffs, on September 14, 2012, moved to hold the defendant’s
motion to dismiss in abeyance and allow plaintiffs to conduct limited discovery before responding to the motion. After the parties agreed to proceed
with limited discovery, plaintiffs advised defendants that they would withdraw their action and, on June 10, 2013, the parties filed a stipulation
dismissing the consolidated complaint without prejudice, subject to the approval of the court. The court dismissed the case without prejudice on June
17, 2013.
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.
|
ANNUAL REPORT
|
JULY 31, 2013
|
77
|
|
|
|
|
Additional Information (continued)
|
|
General Information (concluded)
Quarterly performance, semi-annual and annual reports and other
information regarding the Trusts may be found on BlackRock’s website, which can be accessed at
http://www.blackrock.com
. This reference to
BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to,
incorporate BlackRock’s website in this report.
Electronic Delivery
Electronic copies of most financial reports are available on the
Trusts’ websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the
Trusts’ electronic delivery program.
Shareholders Who Hold Accounts with Investment
Advisors, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that
not all investment advisors, banks or brokerages may offer this service.
Householding
The Trusts will mail only one copy of shareholder documents,
including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly
called “householding” and 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, DC. 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 (1) without charge, upon request, 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.
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
information as necessary from time to time. Investors and others are advised to periodically check the website for updated performance information and
the release of other material information about the Trusts. This reference to 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.
|
78
|
ANNUAL REPORT
|
JULY 31, 2013
|
|
|
|
|
Additional Information (concluded)
|
|
Section 19(a) Notice
These amounts and sources of distributions reported are only
estimates provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for
tax reporting purposes will depend upon the Trust’s investment experience during the year and may be subject to changes based on the tax
regulations. The Trust will provide a Form 1099-DIV each calendar year that will tell you how to report these distributions for federal income tax
purposes.
July 31, 2013
|
|
|
|
|
|
|
Total Cumulative Distributions
for the Fiscal Year-to-Date
|
|
% Breakdown of the Total Cumulative
Distributions for the Fiscal Year-to-Date
|
|
|
|
|
|
Net Investment
Income
|
|
Net Realized
Capital Gains
|
|
Return of
Capital
|
|
Total Per
Common Share
|
|
Net Investment
Income
|
|
Net Realized
Capital Gains
|
|
Return of
Capital
|
|
Total Per
Common Share
|
|
BTT
|
|
|
|
$
|
0.726888
|
|
|
|
—
|
|
|
$
|
0.252612
|
|
|
$
|
0.979500
|
|
|
|
74
|
%
|
|
|
—
|
|
|
|
26
|
%
|
|
|
100
|
%
|
|
|
|
The Trust estimates that it has distributed
more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of
capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Trust is
returned to the shareholder. A return of capital does not necessarily reflect the Trust’s investment performance and
should not be confused with ‘yield’ or ‘income.’ When distributions exceed total return performance,
the difference will incrementally reduce the Trust’s net asset value per share.
|
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current
and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The
following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in
certain cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or
regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will
comply with those specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from
and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on
applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from
a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third
parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to
service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it
only for its intended purpose.
We may share information with our affiliates to service your
account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts
access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock
maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including
procedures relating to the proper storage and disposal of such information.
|
ANNUAL REPORT
|
JULY 31, 2013
|
79
|
This report is transmitted to shareholders only. It is not a
prospectus. Past performance results shown in this report should not be considered a representation of future performance. Certain Trusts have
leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and
market price of the Common Shares, and the risk that fluctuations in the dividend rates of the Preferred Shares, including AMPS, which are currently
set at the maximum reset rate as a result of failed auctions, may reduce the Common Shares’ yield. Statements and other information herein are as
dated and are subject to change.
|
CEF-BK6-7/13-AR
|
|
|
|
|
|
|
Item 2 – Code of Ethics
– The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report,
applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions. During the period covered by this report, there have been no amendments to
or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.
Item 3 – Audit Committee
Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that
(i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee
financial expert is independent:
Michael Castellano
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
The registrant’s board of directors
has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.
Prof. Kester has a thorough
understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as
well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services
to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of
accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised
by the registrant’s financial statements.
Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements
and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards &
Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she
was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over
30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company
and a non-profit organization.
Under applicable securities laws, a person determined to be an audit committee financial expert will
not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities
Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification
as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the
duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence
of such designation or identification. The designation or identification of a person as an audit committee financial expert does
not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
Item 4 – Principal Accountant
Fees and Services
The following table presents fees billed by Deloitte
& Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:
|
|
(a) Audit Fees
|
(b) Audit-Related Fees
1
|
(c) Tax Fees
2
|
(d) All Other Fees
3
|
|
Entity Name
|
Current Fiscal Year End
|
Previous Fiscal Year End
|
Current Fiscal Year End
|
Previous Fiscal Year End
|
Current Fiscal Year End
|
Previous Fiscal Year End
|
Current Fiscal Year End
|
Previous Fiscal Year End
|
|
BlackRock New York Municipal Income Trust
|
$30,063
|
$29,800
|
$0
|
$6,000
|
$11,900
|
$11,900
|
$0
|
$0
|
The following table presents fees billed by D&T that
were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly
to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment
Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not
including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment
adviser) that provide ongoing services to the Fund (“Fund Service Providers”):
|
|
Current Fiscal Year End
|
Previous Fiscal Year End
|
|
(b) Audit-Related Fees
1
|
$0
|
$0
|
|
(c) Tax Fees
2
|
$0
|
$0
|
|
(d) All Other Fees
3
|
$2,865,000
|
$2,970,000
|
1
The nature of the services includes assurance and related
services reasonably related to the performance of the audit of financial statements not included in Audit Fees.
2
The nature of the
services includes tax compliance, tax advice and tax planning.
3
Aggregate fees borne by
BlackRock in connection with the review of compliance procedures and attestation thereto performed by D&T with respect to all
of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The Committee has adopted policies
and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant
on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided
to the registrant and those non-audit services provided to the Investment Adviser and Fund Service Providers that relate directly
to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes
are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair
the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case
basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval,
unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct
impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual
project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will
be aggregated to determine if they exceed the previously mentioned cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g.,
unanticipated but permissible
services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person
board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may
delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted
non-audit services, including services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis
exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrant, the Investment
Adviser and the Fund Service Providers were:
|
Entity Name
|
Current Fiscal Year End
|
Previous Fiscal Year End
|
|
BlackRock New York Municipal Income Trust
|
$11,900
|
$17,900
|
|
|
|
Additionally, SSAE 16 Review (Formerly, SAS No. 70) fees for the current and previous fiscal
years of $2,865,000
and $2,970,000, respectively, were
billed by D&T to the Investment Adviser.
|
|
|
|
(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment
Adviser, and the Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation
S-X is compatible with maintaining the principal accountant’s independence.
|
Item 5 – Audit
Committee of Listed Registrants
|
|
(a)
|
The following individuals are members of the registrant’s separately-designated standing
audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):
Michael Castellano
|
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
Item 6 – Investments
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this
Form.
b) Not Applicable due to no such
divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 – Disclosure of
Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of directors has delegated
the voting of proxies for the Fund’s portfolio securities to the Investment Adviser pursuant to the Investment Adviser’s
proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best
interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s
stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser,
on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee
thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if
the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy
matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to
advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment
Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary,
the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management
Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s
best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit
99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period
ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at
http://www.sec.gov
.
Item 8 – Portfolio Managers
of Closed-End Management Investment Companies – as of July 31, 2013.
|
|
(a)(1)
|
The registrant is managed by a team of investment professionals comprised of Timothy Browse, Director at BlackRock, Theodore
R. Jaeckel, Jr., CFA, Managing Director at BlackRock, and Walter O’Connor, Managing Director at BlackRock. Each is a member
of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s
portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant
and/or selection of its investments. Messrs. Browse, Jaeckel and O’Connor have been members of the registrant’s portfolio
management team since 2006, 2006 and 2006, respectively.
|
|
Portfolio Manager
|
Biography
|
|
Timothy Browse
|
Director of BlackRock since 2008; Vice President of BlackRock from 2006 to 2007; Vice President of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2004 to 2006.
|
|
Theodore R. Jaeckel, Jr.
|
Managing Director of BlackRock since 2006; Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2005 to 2006; Director of MLIM from 1997 to 2005.
|
|
Walter O’Connor
|
Managing Director of BlackRock since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.
|
|
|
(a)(2)
|
As of July 31, 2013:
|
|
|
(ii) Number of Other Accounts Managed
and Assets by Account Type
|
(iii) Number of Other Accounts and
Assets for Which Advisory Fee is
Performance-Based
|
|
(i) Name of
Portfolio Manager
|
Other
Registered
Investment
Companies
|
Other Pooled
Investment
Vehicles
|
Other
Accounts
|
Other
Registered
Investment
Companies
|
Other Pooled
Investment
Vehicles
|
Other
Accounts
|
|
Timothy Browse
|
12
|
0
|
0
|
0
|
0
|
0
|
|
|
$3.46 Billion
|
$0
|
$0
|
$0
|
$0
|
$0
|
|
Theodore R. Jaeckel, Jr.
|
63
|
0
|
0
|
0
|
0
|
0
|
|
|
$23.72 Billion
|
$0
|
$0
|
$0
|
$0
|
$0
|
|
Walter O’Connor
|
63
|
0
|
0
|
0
|
0
|
0
|
|
|
$23.72 Billion
|
$0
|
$0
|
$0
|
$0
|
$0
|
|
|
(iv)
|
Potential Material Conflicts of Interest
|
BlackRock has built a professional working
environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives
that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment
opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that
are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management
and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment
recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid
to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or
different from those made to the Fund. In addition, BlackRock, Inc., its affiliates and significant shareholders and any
officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock
recommends to the Fund. BlackRock, Inc., or any of its affiliates or significant shareholders, or any officer, director,
shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock
with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities
of companies of which any of BlackRock, Inc.’s (or its affiliates’ or significant shareholders’) officers, directors
or employees are directors or officers, or companies as to which BlackRock, Inc. or any of its affiliates or significant shareholders
or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public
information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the
strategy utilized for a fund. It should also be noted that a portfolio manager may be managing certain hedge fund and/or
long only accounts, or may be part of a team managing certain hedge fund and/or long only accounts, subject to incentive fees.
Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. Currently,
the portfolio managers of the Fund are not entitled to receive a portion of incentive fees of other accounts.
As a fiduciary, BlackRock owes a duty
of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one
account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments
in a fair and equitable manner among client accounts, with no account
receiving preferential treatment.
To this end, BlackRock, Inc. has adopted policies that are intended to ensure reasonable efficiency in client transactions and
provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment
discipline and client base, as appropriate.
|
|
(a)(3)
|
As of July 31, 2013:
|
Portfolio Manager Compensation Overview
BlackRock’s
financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect
the value senior management places on key resources. Compensation may include a variety of components and may vary from year to
year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary
bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.
Base Compensation.
Generally, portfolio managers receive
base compensation based on their position with BlackRock, Inc.
Discretionary Incentive Compensation.
Discretionary incentive compensation
is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s
group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management
or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution
to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark
or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured.
Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio
manager’s compensation based on the performance of the funds and other accounts managed by each portfolio manager relative
to the various benchmarks. Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various
time periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for
the Fund and other accounts are:
|
Portfolio Manager
|
Benchmark
|
|
Timothy Browse
|
A combination of peer based fund classifications or subsets thereof (e.g., Lipper Intermediate Debt Funds classification, Lipper NJ Municipal Debt Funds classification).
|
|
Theodore R. Jaeckel, Jr.
|
A combination of peer based fund classifications or subsets thereof (e.g., Lipper Intermediate Debt Funds classification, Lipper NJ Municipal Debt Funds classification, Lipper Closed-End General Bond Fund classification, subset of Lipper Closed-End High Quality/Insured Muni Debt Leveraged Fund classification, subset of Lipper Closed-End Other Single State High Quality/Insured Muni Fund classification).
|
|
Walter O’Connor
|
A combination of market-based indices (e.g., Barclays Capital Muni Bond Index, Standard & Poor's Municipal Bond Index), certain customized indices and certain fund industry peer groups.
|
Distribution of Discretionary Incentive Compensation
Discretionary incentive compensation
is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over
a number of years. For some portfolio managers, discretionary incentive compensation is also distributed in deferred cash awards
that notionally track the returns of select BlackRock investment products they manage and that vest ratably over a number of years.
The BlackRock, Inc. restricted stock units, upon vesting, will be settled in BlackRock, Inc. common stock. Typically, the cash
portion of the discretionary incentive compensation, when combined with base salary, represents more than 60% of total compensation
for the portfolio managers. Paying a portion of discretionary incentive compensation in BlackRock stock puts compensation earned
by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance
over future periods. Providing a portion of discretionary incentive compensation in deferred cash awards that notionally track
the BlackRock investment products they manage provides direct alignment with investment product results.
Long-Term Incentive Plan Awards
—
From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align
their interests with long-term shareholder interests and motivate performance. Equity awards are generally granted in the
form of BlackRock, Inc. restricted stock units that, once vested, settle in BlackRock, Inc. common stock. Messrs. Jaeckel and O’Connor
have unvested long-term incentive awards.
Deferred Compensation Program —
A portion of the compensation paid to eligible United States-based BlackRock employees may be voluntarily deferred at their
election for defined periods of time into an account that tracks the performance of certain of the firm’s investment products.
Any portfolio manager who is either a managing director or director at BlackRock is eligible to participate in the deferred compensation
program.
Other Compensation Benefits.
In
addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate
in one or more of the following:
Incentive
Savings Plans —
BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock, Inc.
employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock
Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the
first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5%
of eligible compensation up to the Internal Revenue Service limit ($255,000 for 2013). The RSP offers a range of investment
options, including registered investment companies and collective investment funds managed by the firm. BlackRock, Inc. contributions
follow the investment direction set by participants for their own contributions or, absent participant investment direction, are
invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65.
The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the
stock on the purchase date.
Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based
on its fair market value on the Purchase Date. All of the eligible portfolio managers are eligible to participate in these
plans.
|
|
(a)(4)
|
Beneficial Ownership of Securities
– As of July 31, 2013.
|
|
Portfolio Manager
|
Dollar Range of Equity Securities of the Fund Beneficially Owned
|
|
Timothy Browse
|
None
|
|
Theodore R. Jaeckel, Jr.
|
None
|
|
Walter O’Connor
|
None
|
Item 9 – Purchases of
Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases
during the period covered by this report.
Item 10 – Submission of Matters
to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 – Controls and Procedures
(a) – The registrant’s principal executive
and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure
controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”))
are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures
required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
(b) – There were no changes in the registrant’s
internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal
quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the
registrant’s internal control over financial reporting.
Item 12 – Exhibits attached
hereto
|
|
|
(a)(1) – Code of Ethics – See Item 2
|
|
|
|
(a)(2) – Certifications – Attached hereto
|
(a)(3) – Not Applicable
(b) – Certifications – Attached hereto
Pursuant to the requirements of the Securities Exchange
Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BlackRock New York Municipal Income Trust
By:
/s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock New York Municipal Income Trust
Date: October 2, 2013
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 New York Municipal Income Trust
Date: October 2, 2013
By:
/s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock New York Municipal Income Trust
Date: October 2, 2013
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