c55241_ncsr.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21126

Name of Fund: BlackRock Municipal Income Trust II (BLE)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Donald C. Burke, Chief Executive Officer, BlackRock Municipal Income Trust II,
800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011

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

Date of fiscal year end: 08/31/2008

Date of reporting period: 09/01/2007 – 08/31/2008


 

 

Item 1.

Report to Shareholders.


 

 

 

 

 

 

 

 

 

 

 

EQUITIES

 

FIXED INCOME

 

REAL ESTATE

 

LIQUIDITY

 

ALTERNATIVES

 

BLACKROCK SOLUTIONS


 

 

 

 

 

 

Annual Report


(BLACKROCK LOGO)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AUGUST 31, 2008

 

 

 

 

 

 

 


 

BlackRock Insured Municipal Income Investment Trust (BAF)

 

BlackRock Insured Municipal Income Trust (BYM)

 

BlackRock Municipal Bond Investment Trust (BIE)

 

BlackRock Municipal Bond Trust (BBK)

 

BlackRock Municipal Income Trust II (BLE)

 

BlackRock California Insured Municipal Income Trust (BCK)

 

BlackRock California Municipal Bond Trust (BZA)

 

BlackRock California Municipal Income Trust II (BCL)

 

BlackRock Maryland Municipal Bond Trust (BZM)

 

BlackRock New Jersey Municipal Bond Trust (BLJ)

 

BlackRock New York Insured Municipal Income Trust (BSE)

 

BlackRock New York Municipal Bond Trust (BQH)

 

BlackRock New York Municipal Income Trust II (BFY)

 

BlackRock Virginia Municipal Bond Trust (BHV)

 

 

NOT FDIC INSURED

MAY LOSE VALUE

NO BANK GUARANTEE



 

 


 

Table of Contents

 

 

 

   

 

Page

   

 

 

A Letter to Shareholders

3

 

 

Annual Report:

 

 

 

Trust Summaries

4

 

 

The Benefits and Risks of Leveraging

18

 

 

Swap Agreements

18

 

 

Financial Statements:

 

 

 

Schedules of Investments

19

 

 

Statements of Assets and Liabilities

52

 

 

Statements of Operations

55

 

 

Statements of Changes in Net Assets

58

 

 

Financial Highlights

61

 

 

Notes to Financial Statements

75

 

 

Report of Independent Registered Public Accounting Firm

85

 

 

Important Tax Information

86

 

 

Disclosure of Investment Advisory Agreement and Subadvisory Agreement

87

 

 

Automatic Dividend Reinvestment Plans

90

 

 

Officers and Trustees

91

 

 

Additional Information

95


 

 

 

 

 

 

 

 

2

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

A Letter to Shareholders

Dear Shareholder

It has been a tumultuous year for investors, marked by almost daily headlines related to the beleaguered housing market, rising food and energy prices, and the escalating credit crisis. The news took an extraordinarily heavy tone shortly after the close of this reporting period as the credit crisis boiled over and triggered unprecedented failures and consolidation in the financial sector, stoking fears of a market and economic collapse and prompting the largest government rescue plan since the Great Depression.

Through it all, the Federal Reserve Board (the “Fed”) has been aggressive in its attempts to restore order in financial markets. Key moves included slashing the target federal funds rate 325 basis points (3.25%) between September 2007 and April 2008 and providing numerous cash injections and lending programs. As the credit crisis took an extreme turn for the worse in September, the Fed, in concert with five other global central banks, cut interest rates by 50 basis points in a rare move intended to stave off worldwide economic damage from the intensifying financial market turmoil. The U.S. economy managed to grow at a slow-but-positive pace through the second quarter of the year, though the recent events almost certainly portend a global economic recession.

Against this backdrop, U.S. stocks experienced intense volatility (steep declines and quick recoveries), generally posting losses for the current reporting period. Small-cap stocks fared significantly better than their larger counterparts. Non-U.S. markets followed the U.S. on the way down and, notably, decelerated at a faster pace than domestic equities — a stark reversal of recent years’ trends, when international stocks generally outpaced U.S. stocks.

Treasury securities also traded in a volatile fashion, but rallied overall (yields fell and prices correspondingly rose), as the broader flight-to-quality theme persisted. The yield on 10-year Treasury issues, which fell to 3.34% in March, climbed to the 4.20% range in mid-June as investors temporarily shifted out of Treasury issues in favor of riskier assets (such as stocks and other high-quality fixed income sectors), then declined again to 3.83% by period-end when credit fears resurfaced. Tax-exempt issues posted positive returns, but problems among municipal bond insurers and the collapse in the market for auction rate securities pressured the group throughout the course of the past year. Economic and financial market distress also dampened the performance of high yield issues, which were very volatile due to the macro factors noted above.

Overall, severe market instability resulted in mixed results for the major benchmark indexes:

 

 

 

 

 

 

 

 

Total returns as of August 31, 2008

 

 

6-month

 

12-month

           

U.S. equities (S&P 500 Index)

 

 

(2.57

)%

 

(11.14

)%

           

Small cap U.S. equities (Russell 2000 Index)

 

 

8.53

 

 

(5.48

)

           

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

 

 

(10.18

)

 

(14.41

)

           

Fixed income (Lehman Brothers U.S. Aggregate Index)

 

 

0.18

 

 

5.86

 

           

Tax-exempt fixed income (Lehman Brothers Municipal Bond Index)

 

 

5.12

 

 

4.48

 

           

High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index)

 

 

0.74

 

 

(0.66

)

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

Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For our most current views on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,
-s- Rob Kapito

Rob Kapito
President, BlackRock Advisors, LLC

 

 

 

 

 

 

 

 

 

THIS PAGE NOT PART OF YOUR FUND REPORT

3




 

 


 

Trust Summary as of August 31, 2008

BlackRock Insured Municipal Income Investment Trust

 

 

Investment Objective


 

BlackRock Insured Municipal Income Investment Trust (BAF) (the “Trust”) (formerly BlackRock Florida Insured Municipal Income Trust) seeks to provide current income exempt from regular federal income taxes. The Trust will invest at least 80% of its total assets in municipal obligations that are insured as to the timely payment of both principal and interest. Please see Note 7, “Subsequent Events,” of the Notes to Financial Statements on page 83 regarding a recent change to the Trust’s non-fundamental investment policy.


 

Performance


 

 

For the 12 months ended August 31, 2008, the Trust returned (3.35)% based on market price and 2.22% based on net asset value (“NAV”). For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 1.32% on a NAV basis. All returns reflect reinvestment of dividends. Several key factors influenced performance during the year. A positive contributor to performance was the Trust’s significant overweight in pre-refunded bonds in the one- to five-year maturity range, as the yield curve steepened and short- and intermediate-maturity issues outperformed the rest of the market. Conversely, problems within the monoline insurance industry had a negative impact on the entire insured municipal market, hampering the performance of the Trust and its peers. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

 

 

The 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

 

BAF

 

Initial Offering Date

 

October 31, 2002

 

Yield on Closing Market Price as of August 31, 2008 ($12.42)1

 

5.60%

 

Tax Equivalent Yield2

 

8.62%

 

Current Monthly Distribution per Common Share3

 

$0.058

 

Current Annualized Distribution per Common Share3

 

$0.696

 

Leverage as of August 31, 20084

 

38%

 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”)) minus the sum of accrued liabilities.

 

 

The table below summarizes the changes in the Trust’s market price and net asset value per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

 

Market Price

 

$

12.42

 

$

13.55

 

(8.34)%

$

14.30

 

$

12.21

 

Net Asset Value

 

$

14.23

 

$

14.68

 

(3.07)%

 

$

15.27

 

$

13.38

 

 

 

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

 

Portfolio Composition


 

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

 

 

Tax Revenue

 

27

%

 

25

%

 

City, County & State

 

17

 

 

20

 

 

Education

 

13

 

 

16

 

 

Transportation

 

11

 

 

9

 

 

Hospitals

 

10

 

 

9

 

 

Water & Sewer

 

9

 

 

6

 

 

Power

 

7

 

 

11

 

 

Lease Revenue

 

6

 

 

4

 

 

 

 

Credit Quality Allocations5


 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

 

 

AAA/Aaa

 

41

%

 

88

%

 

AA/Aa

 

48

 

 

7

 

 

A

 

2

 

 

1

 

 

Not Rated

 

9

6

 

4

 

 

 

 

 

5

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

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2008 the market value of these securities was $7,387,462 representing 4%, respectively, of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

4

ANNUAL REPORT

AUGUST 31, 2008

 




 

 


 

Trust Summary as of August 31, 2008

BlackRock Insured Municipal Income Trust


 

Investment Objective


 

BlackRock Insured Municipal Income Trust (BYM) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes. The Trust will invest at least 80% of its total assets in municipal obligations that are insured as to the timely payment of both principal and interest.


 

Performance


 

 

For the 12 months ended August 31, 2008, the Trust returned (3.13)% based on market price and (0.16)% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 0.19% on a NAV basis. All returns reflect reinvestment of dividends. The Trust benefited from its above-average yield, but performance was negatively impacted by two factors: above-average exposure to the longer end of the yield curve, which underperformed as rates increased; and, above-average exposure to certain monoline insurers, particularly those with weaker underlying credits, which underperformed amid unprecedented volatility and ratings downgrades. The Trust’s holdings covered by these insurers underperformed as the value of their insurance fell and reflected their underlying credit quality. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

 

 

The 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

 

BYM

 

Initial Offering Date

 

October 31, 2002

 

Yield on Closing Market Price as of August 31, 2008 ($13.19)1

 

5.55%

 

Tax Equivalent Yield2

 

8.54%

 

Current Monthly Distribution per Common Share3

 

$0.061

 

Current Annualized Distribution per Common Share3

 

$0.732

 

Leverage as of August 31, 20084

 

38%

 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.

 

 

The table below summarizes the changes in the Trust’s market price and net asset value per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

 

Market Price

 

$

13.19

 

$

14.35

 

(8.08)%

 

$

15.15

 

$

12.70

 

Net Asset Value

 

$

14.04

 

$

14.82

 

(5.26)%

 

$

15.35

 

$

13.14

 

 

 

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

 

Portfolio Composition


 

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

 

 

Transportation

 

26

%

 

24

%

 

Water & Sewer

 

19

 

 

18

 

 

City, County & State

 

10

 

 

13

 

 

Tax Revenue

 

10

 

 

12

 

 

Education

 

9

 

 

8

 

 

Power

 

8

 

 

9

 

 

Hospitals

 

6

 

 

7

 

 

Tobacco

 

6

 

 

6

 

 

Lease Revenue

 

5

 

 

2

 

 

Industrial & Pollution Control

 

1

 

 

1

 

 

 

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

 

 

AAA/Aaa

 

58

%

 

92

%

 

AA/Aa

 

34

 

 

2

 

 

A

 

5

 

 

2

 

 

BBB/Baa

 

3

 

 

4

 

 

 

 

 

5

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


 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

5




 

 


 

Trust Summary as of August 31, 2008

BlackRock Municipal Bond Investment Trust


 

Investment Objective


 

BlackRock Municipal Bond Investment Trust (BIE) (the “Trust”) (formerly BlackRock Florida Municipal Bond Trust) seeks to provide current income exempt from regular federal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock. Please see Note 7, “Subsequent Events,” of the Notes to Financial Statements on page 83 regarding a recent change to the Trust’s non-fundamental investment policy.


 

Performance


 

 

For the 12 months ended August 31, 2008, the Trust returned (3.95)% based on market price and 2.34% based on NAV. For the same period, the closed-end Lipper Florida Municipal Debt Funds category posted an average return of 0.90% on a NAV basis. All returns reflect reinvestment of dividends. Several key factors influenced performance during the year. A positive contributor to performance was the Trust’s significant overweight in pre-refunded bonds in the one- to five-year maturity range, as the yield curve steepened and short- and intermediate-maturity issues outperformed the rest of the market. Conversely, problems within the mono-line insurance industry had a negative impact on the entire insured municipal market and thus, hampered the performance of the Trust and its peers. Exposure to uninsured hospital bonds and single-family housing bonds also detracted from results. 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 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

 

BIE

 

Initial Offering Date

 

April 30, 2002

 

Yield on Closing Market Price as of August 31, 2008 ($14.28)1

 

5.78%

 

Tax Equivalent Yield2

 

8.89%

 

Current Monthly Distribution per Common Share3

 

$0.0688

 

Current Annualized Distribution per Common Share3

 

$0.8256

 

Leverage as of August 31, 20084

 

38%

 

 

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.

 

 

The table below summarizes the changes in the Trust’s market price and net asset value per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

 

Market Price

 

$

14.28

 

$

15.82

 

(9.73)%

 

$

16.70

 

$

14.14

 

Net Asset Value

 

$

14.86

 

$

15.45

 

(3.82)%

 

$

15.86

 

$

14.35

 

 

 

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

 

Portfolio Composition


 

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

 

 

Hospitals

 

37

%

 

34

%

 

City, County & State

 

16

 

 

11

 

 

Tax Revenue

 

14

 

 

18

 

 

Education

 

7

 

 

11

 

 

Housing

 

6

 

 

6

 

 

Lease Revenue

 

5

 

 

6

 

 

Water & Sewer

 

5

 

 

3

 

 

Transportation

 

5

 

 

3

 

 

Industrial & Pollution Control

 

3

 

 

2

 

 

Power

 

2

 

 

6

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

 

 

AAA/Aaa

 

25

%

 

40

%

 

AA/Aa

 

32

 

 

20

 

 

A

 

12

 

 

14

 

 

BBB/Baa

 

7

 

 

12

 

 

BB/Ba

 

2

 

 

2

 

 

Not Rated

 

22

6

 

12

 

 

 

 

 

5

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

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2008 the market value of these securities was $6,398,306 representing 8%, respectively, of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

6

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Trust Summary as of August 31, 2008

BlackRock Municipal Bond Trust

 

 

Investment Objective

 


 

BlackRock Municipal Bond Trust (BBK) (the “Trust”) seeks to provide current income exempt from regular federal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.


 

Performance


 

 

For the 12 months ended August 31, 2008, the Trust returned (9.65%) based on market price and (3.77)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (0.98)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s exposure to longer-dated securities was the primary detractor from performance, as these issues proved more volatile when risk spreads increased and the municipal yield curve steepened. Additionally, holdings in high yield and housing, as well as bonds backed by several of the larger broker-dealers, underperformed market averages and thus, hindered Trust results. Conversely, the Trust’s above-average distribution rate benefited performance. Looking ahead, we believe the Trust is well positioned to benefit amid a recovering high yield market, a reversion to historical valuations versus Treasury issues and a continued slowing economy. 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 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

 

BBK

 

Initial Offering Date

 

April 30, 2002

 

Yield on Closing Market Price as of August 31, 2008 ($13.89)1

 

6.26%

 

Tax Equivalent Yield2

 

9.63%

 

Current Monthly Distribution per Common Share3

 

$0.0725

 

Current Annualized Distribution per Common Share3

 

$0.8700

 

Leverage as of August 31, 20084

 

39%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.


The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

                                 

Market Price

 

$

13.89

 

$

16.50

 

(15.82

)%

 

$

17.39

 

$

13.30

 

Net Asset Value

 

$

13.96

 

$

15.57

 

(10.34

)%

 

$

15.95

 

$

13.60

 

                                 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


 

Portfolio Composition


 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

             

Hospitals

 

26

%

 

26

%

Housing

 

14

 

 

11

 

Transportation

 

11

 

 

8

 

City, County & State

 

10

 

 

15

 

Industrial & Pollution Control

 

9

 

 

14

 

Education

 

8

 

 

5

 

Power

 

7

 

 

6

 

Tax Revenue

 

7

 

 

7

 

Water & Sewer

 

4

 

 

4

 

Tobacco

 

3

 

 

3

 

Lease Revenue

 

1

 

 

1

 

             

 

Credit Quality Allocations5


 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

             

AAA/Aaa

 

24

%

 

34

%

AA/Aa

 

27

 

 

16

 

A

 

21

 

 

15

 

BBB/Baa

 

14

 

 

18

 

BB/Ba

 

4

 

 

6

 

B

 

2

 

 

5

 

CCC/Caa

 

1

 

 

 

Not Rated6

 

7

 

 

6

 

             

 

 

5

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

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2008 and August 31, 2007 the market value of these securities was $3,883,176 representing 2% and $2,980,782 representing 1%, respectively, of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

7



 

 


 

Trust Summary as of August 31, 2008

BlackRock Municipal Income Trust II

 

 

Investment Objective

 


 

BlackRock Municipal Income Trust II (BLE) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.


 

Performance


 

 

For the 12 months ended August 31, 2008, the Trust returned (6.29)% based on market price and (4.15)% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of (0.98)% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s performance over the year was negatively impacted by two key factors: above-market exposure to lower-quality bonds, which underperformed as credit spreads widened; and, an emphasis on long-dated bonds that underperformed as the yield curve steepened. The Trust’s distribution yield remained competitive in relation to that of its Lipper peers. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

 

 

The 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 American Stock Exchange

 

BLE

 

Initial Offering Date

 

July 30, 2002

 

Yield on Closing Market Price as of August 31, 2008 ($13.27)1

 

5.97%

 

Tax Equivalent Yield2

 

9.18%

 

Current Monthly Distribution per Common Share3

 

$0.066

 

Current Annualized Distribution per Common Share3

 

$0.792

 

Leverage as of August 31, 20084

 

39%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.


The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

                                 

Market Price

 

$

13.27

 

$

15.05

 

(11.83

)%

 

$

15.85

 

$

12.75

 

Net Asset Value

 

$

13.60

 

$

15.08

 

(9.81

)%

 

$

15.45

 

$

13.17

 

                                 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


 

Portfolio Composition


 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

             

Hospitals

 

26

%

 

26

%

Industrial & Pollution Control

 

12

 

 

16

 

Transportation

 

12

 

 

10

 

City, County & State

 

10

 

 

13

 

Education

 

10

 

 

3

 

Power

 

9

 

 

6

 

Tax Revenue

 

6

 

 

8

 

Housing

 

5

 

 

7

 

Water & Sewer

 

5

 

 

6

 

Tobacco

 

4

 

 

4

 

Lease Revenue

 

1

 

 

1

 

             

 

Credit Quality Allocations5


 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

             

AAA/Aaa

 

24

%

 

33

%

AA/Aa

 

29

 

 

16

 

A

 

13

 

 

12

 

BBB/Baa

 

17

 

 

20

 

BB/Ba

 

3

 

 

3

 

B

 

4

 

 

5

 

CCC/Caa

 

1

 

 

 

Not Rated6

 

9

 

 

11

 

             

 

 

5

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

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2008 and August 31, 2007, the market value of these securities was $18,784,767 representing 4% and $24,066,103 representing 4%, respectively, of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

8

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Trust Summary as of August 31, 2008

BlackRock California Insured Municipal Income Trust


 

 

Investment Objective

 

 

 

BlackRock California Insured Municipal Income Trust (BCK) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and California income taxes. The Trust will invest at least 80% of its total assets in municipal obligations that are insured as to the timely payment of both principal and interest.

 

 

Performance

 

 

 

For the 12 months ended August 31, 2008, the Trust returned (4.84)% based on market price and 0.92% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 1.32% on a NAV basis. All returns reflect reinvestment of dividends. The performance of the Lipper category does not necessarily correlate to that of the fund, as the Lipper group comprises funds representing various states and not California alone. Nevertheless, the Trust’s exposure to the long end of the municipal yield curve and modestly longer duration stance detracted from performance over the period. Pressure on municipal bond insurers, which affected the entire insured municipal marketplace, also hampered results. The Trust’s underweight of lower-rated credits actually proved disadvantageous as insured bonds lost any premium value. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

 

 

 

The 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

 

BCK

Initial Offering Date

 

October 31, 2002

Yield on Closing Market Price as of August 31, 2008 ($12.95)1

 

5.19%

Tax Equivalent Yield2

 

7.98%

Current Monthly Distribution per Common Share3

 

$0.056

Current Annualized Distribution per Common Share3

 

$0.672

Leverage as of August 31, 20084

 

38%

     

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.

 

 

The table below summarizes the changes in the Trust’s market price and net asset value per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

                       

Market Price

 

$

12.95

 

$

14.30

 

(9.44

)%

 

$

15.05

 

$

12.86

 

Net Asset Value

 

$

14.08

 

$

14.66

 

(3.96

)%

 

$

15.34

 

$

13.03

 

                                 

 

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

 

Portfolio Composition


 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

             

Water & Sewer

 

32

%

 

31

%

Education

 

19

 

 

25

 

City, County & State

 

15

 

 

13

 

Lease Revenue

 

11

 

 

9

 

Hospitals

 

8

 

 

3

 

Power

 

6

 

 

10

 

Transportation

 

6

 

 

5

 

Tax Revenue

 

3

 

 

2

 

Housing

 

 

 

2

 

             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

             

AAA/Aaa

 

31

%

 

98

%

AA/Aa

 

58

 

 

 

A

 

11

 

 

2

 

             

 

 

5

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


 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

9



 

 


 

Trust Summary as of August 31, 2008

BlackRock California Municipal Bond Trust


 

 

Investment Objective

 

 

 

BlackRock California Municipal Bond Trust (BZA) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and California income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

 

Performance

 

 

 

For the 12 months ended August 31, 2008, the Trust returned (6.89)% based on market price and 2.64% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of 0.70% on a NAV basis. All returns reflect reinvestment of dividends. Trust performance benefited from a degree of spread tightening in certain sectors during the second half of the fiscal year. Specifically, valuations on land-secured holdings that had previously underperformed recovered in late summer, improving the Trust’s relative performance. Duration was kept neutral throughout most of the annual period. 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 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

 

BZA

Initial Offering Date

April 30, 2002

Yield on Closing Market Price as of August 31, 2008 ($14.48)1

 

5.14%

Tax Equivalent Yield2

7.91%

Current Monthly Distribution per Common Share3

 

$0.062

Current Annualized Distribution per Common Share3

$0.744

Leverage as of August 31, 20084

 

37%

     

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.

 

 

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

                       

Market Price

 

$

14.48

 

$

16.50

 

(12.24

)%

 

$

17.35

 

$

13.90

 

Net Asset Value

 

$

14.85

 

$

15.35

 

(3.26

)%

 

$

15.90

 

$

14.25

 

                                 

 

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


 

 

 

 

 

 

 

Portfolio Composition

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

             

Hospitals

 

23

%

 

21

%

City, County & State

 

21

 

 

13

 

Education

 

19

 

 

22

 

Housing

 

14

 

 

14

 

Lease Revenue

 

8

 

 

2

 

Transportation

 

6

 

 

7

 

Industrial & Pollution Control

 

4

 

 

5

 

Tobacco

 

3

 

 

8

 

Water & Sewer

 

1

 

 

7

 

Resource Recovery

 

1

 

 

1

 

             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

             

AAA/Aaa

 

29

%

 

32

%

AA/Aa

 

18

 

 

12

 

A

 

35

 

 

33

 

BBB/Baa

 

11

 

 

15

 

B

 

1

 

 

2

 

Not Rated

 

6

 

 

6

 

             

 

 

5

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


 

 

 

 

 

 

 

 

10

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

 

Trust Summary as of August 31, 2008

BlackRock California Municipal Income Trust II

 

 

Investment Objective

 

BlackRock California Municipal Income Trust II (BCL) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and California income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

 

Performance

 

For the 12 months ended August 31, 2008, the Trust returned (7.05)% based on market price and (0.89)% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of 0.70% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s performance was negatively impacted by three key factors: exposure to the long end of the municipal yield curve, which underperformed as the curve steepened; a widening in credit spreads (especially those of corporate-backed municipal securities held in the Trust), which negatively impacted uninsured credits in the portfolio; and, additional pressure on insured zero-coupon securities held in the Trust. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

 

 

 

The 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 American Stock Exchange

 

BCL

 

Initial Offering Date

 

July 30, 2002

 

Yield on Closing Market Price as of August 31, 2008 ($12.70)1

 

5.39%

 

Tax Equivalent Yield2

 

8.29%

 

Current Monthly Distribution per Common Share3

 

$0.057

 

Current Annualized Distribution per Common Share3

 

$0.684

 

Leverage as of August 31, 20084

 

39%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.

 

Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.

 

 

The table below summarizes the changes in the Trust’s market price and net asset value per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

                       

Market Price

 

$

12.70

 

$

14.44

 

(12.05)%

 

$

15.35

 

$

12.47

 

Net Asset Value

 

$

14.03

 

$

14.96

 

(6.22)%

 

$

15.40

 

$

13.23

 

                               

 

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


 

 

 

 

 

 

 

 

Portfolio Composition

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

 

           

City, County & State

 

26

%

 

25

%

 

Housing

 

13

 

 

5

 

 

Lease Revenue

 

12

 

 

3

 

 

Transportation

 

10

 

 

10

 

 

Education

 

9

 

 

15

 

 

Hospitals

 

9

 

 

12

 

 

Water & Sewer

 

8

 

 

6

 

 

Tobacco

 

7

 

 

13

 

 

Industrial & Pollution Control

 

5

 

 

5

 

 

Resource Recovery

 

1

 

 

1

 

 

Power

 

 

 

5

 

 

               

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

 

               

AAA/Aaa

 

27

%

 

55

%

 

AA/Aa

 

35

 

 

5

 

 

A

 

25

 

 

20

 

 

BBB/Baa

 

6

 

 

7

 

 

B

 

1

 

 

1

 

 

Not Rated

 

6

6

 

12

 

 

               

 

 

5

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

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2008 the market value of these securities was $1,173,229 representing 1%, respectively, of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

11



 

 


 

 

Trust Summary as of August 31, 2008

BlackRock Maryland Municipal Bond Trust

 

 

Investment Objective

 

BlackRock Maryland Municipal Bond Trust (BZM) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and Maryland personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

 

Performance

 

For the 12 months ended August 31, 2008, the Trust returned (4.33)% based on market price and 2.60% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 1.93% on a NAV basis. All returns reflect reinvestment of dividends. The Trust derived most of its positive performance from income generated by book yields that are comfortably above current market rates. The Trust’s longer-maturity holdings also benefited results, as the yield curve flattened significantly amid heightened inflation concerns and these issues outperformed. Moreover, positive sector allocation and minimal exposure to the troubled monoline insurers proved advantageous. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

 

 

 

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 American Stock Exchange

 

BZM

Initial Offering Date

 

April 30, 2002

Yield on Closing Market Price as of August 31, 2008 ($15.75)1

 

4.98%

Tax Equivalent Yield2

 

7.66%

Current Monthly Distribution per Common Share3

 

$0.0654

Current Annualized Distribution per Common Share3

 

$0.7848

Leverage as of August 31, 20084

 

38%

     

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.

 

 

The table below summarizes the changes in the Trust’s market price and net asset value per share:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

                       

Market Price

 

$

15.75

 

$

17.43

 

 

(9.64)%

 

$

18.43

 

$

14.60

 

Net Asset Value

 

$

14.45

 

$

14.91

 

 

(3.09)%

 

$

15.45

 

$

13.77

 

                                 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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


 

 

 

 

 

 

 

 

Portfolio Composition

 

 

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

 

               

Hospitals

 

21

%

 

18

%

 

Transportation

 

21

 

 

8

 

 

City, County & State

 

17

 

 

24

 

 

Education

 

13

 

 

21

 

 

Water & Sewer

 

12

 

 

12

 

 

Housing

 

6

 

 

6

 

 

Lease Revenue

 

5

 

 

5

 

 

Tobacco

 

3

 

 

3

 

 

Tax Revenue

 

2

 

 

 

 

Power

 

 

 

3

 

 

               

 

 

 

 

 

 

 

 

Credit Quality Allocations5

 

 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

 

               

AAA/Aaa

 

31

%

 

37

%

 

AA/Aa

 

21

 

 

10

 

 

A

 

27

 

 

29

 

 

BBB/Baa

 

10

 

 

13

 

 

Not Rated

 

11

 

 

11

 

 

               

 

 

5

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


 

 

 

 

 

 

 

 

12

ANNUAL REPORT

AUGUST 31, 2008

 



 

 



 

 

Trust Summary as of August 31, 2008

BlackRock New Jersey Municipal Bond Trust

 

 

Investment Objective


 

BlackRock New Jersey Municipal Bond Trust (BLJ) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and New Jersey gross income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.


 

Performance


 

 

For the 12 months ended August 31, 2008, the Trust returned (7.15)% based on market price and (2.12)% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 0.21% on a NAV basis. All returns reflect reinvestment of dividends. Overall, security selection played a more significant role in recent performance than did the Trust’s modestly above-average duration. The Trust’s overweight in both lower-rated issues and issues subject to the alternative minimum tax was the primary detractor from performance as the market prices of these issues declined dramatically during the year. However, the incremental income these holdings generated allowed the Trust to distribute the highest dividend yield in its peer group. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

 

 

 

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 American Stock Exchange

 

BLJ

 

Initial Offering Date

 

April 30, 2002

 

Yield on Closing Market Price as of August 31, 2008 ($14.76)1

 

5.73%

 

Tax Equivalent Yield2

 

8.82%

 

Current Monthly Distribution per Common Share3

 

$0.0705

 

Current Annualized Distribution per Common Share3

 

$0.8460

 

Leverage as of August 31, 20084

 

38%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.


The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

                       

Market Price

 

$

14.76

 

$

16.90

 

(12.66

)%

 

$

18.75

 

$

14.05

 

Net Asset Value

 

$

14.16

 

$

15.38

 

(7.93

)%

 

$

15.78

 

$

13.85

 


 

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


 

Portfolio Composition


 

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

 

           

Hospitals

 

35

%

 

32

%

 

Transportation

 

17

 

 

12

 

 

Education

 

11

 

 

13

 

 

City, County & State

 

11

 

 

10

 

 

Tax Revenue

 

7

 

 

7

 

 

Industrial & Pollution Control

 

6

 

 

7

 

 

Housing

 

5

 

 

6

 

 

Power

 

4

 

 

4

 

 

Tobacco

 

2

 

 

7

 

 

Water & Sewer

 

1

 

 

1

 

 

Lease Revenue

 

1

 

 

1

 

 

               

 

Credit Quality Allocations5


 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

 

               

AAA/Aaa

 

29

%

 

38

%

 

AA/Aa

 

10

 

 

 

 

A

 

31

 

 

15

 

 

BBB/Baa

 

14

 

 

39

 

 

B

 

4

 

 

5

 

 

Not Rated

 

12

 

 

3

 

 

               

 

 

5

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


 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

13



 

 



 

 

Trust Summary as of August 31, 2008

BlackRock New York Insured Municipal Income Trust

 

 

Investment Objective


 

BlackRock New York Insured Municipal Income Trust (BSE) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and New York State and New York City personal income taxes. The Trust will invest at least 80% of its total assets in municipal obligations that are insured as to the timely payment of both principal and interest. BSE is currently 100% invested in securities which are not subject to the alternative minimum tax (AMT).


 

Performance


 

 

For the 12 months ended August 31, 2008, the Trust returned (1.07%) based on market price and 0.80% based on NAV. For the same period, the closed-end Lipper Single-State Insured Municipal Debt Funds category posted an average return of 1.32% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s exposure to longer-dated bonds was the primary detractor from performance, as these securities proved more volatile when risk spreads increased and the municipal yield curve steepened. Performance also was hampered by an above-average exposure to select long insured bonds, which underperformed due to the monoline insurers’ credit woes and subsequent ratings downgrades. Conversely, the Trust’s above-average distribution rate benefited performance. Looking ahead, we believe the Trust is well positioned to benefit amid a recovery in market liquidity, a reversion to historical valuations versus Treasury issues and a continued slowing economy. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

 

 

The 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

 

BSE

 

Initial Offering Date

 

October 31, 2002

 

Yield on Closing Market Price as of August 31, 2008 ($13.26)1

 

5.25%

 

Tax Equivalent Yield2

 

8.08%

 

Current Monthly Distribution per Common Share3

 

$0.058

 

Current Annualized Distribution per Common Share3

 

$0.696

 

Leverage as of August 31, 20084

 

38%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.


The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

                       

Market Price

 

$

13.26

 

$

14.12

 

(6.09

)%

 

$

14.99

 

$

13.00

 

Net Asset Value

 

$

13.95

 

$

14.58

 

(4.32

)%

 

$

15.16

 

$

13.07

 


 

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


 

Portfolio Composition


 

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

 

 

Education

 

31

%

 

31

%

 

Transportation

 

29

 

 

29

 

 

City, County & State

 

10

 

 

8

 

 

Tax Revenue

 

10

 

 

8

 

 

Hospitals

 

9

 

 

13

 

 

Water & Sewer

 

4

 

 

4

 

 

Power

 

2

 

 

4

 

 

Tobacco

 

2

 

 

2

 

 

Lease Revenue

 

2

 

 

 

 

Housing

 

1

 

 

1

 

 

 

 

Credit Quality Allocations5


 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

 

               

AAA/Aaa

 

36

%

 

92

%

 

AA/Aa

 

47

 

 

2

 

 

A

 

7

 

 

5

 

 

BBB/Baa

 

8

 

 

1

 

 

Not Rated

 

2

 

 

 

 

 

 

 

5

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


 

 

 

 

 

 

 

 

14

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Trust Summary as of August 31, 2008

BlackRock New York Municipal Bond Trust


 

 

Investment Objective

 


BlackRock New York Municipal Bond Trust (BQH) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and New York State and New York City personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

 

Performance

 


For the 12 months ended August 31, 2008, the Trust returned (4.76%) based on market price and 1.62% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 1.26% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s above-average distribution rate was the primary contributor to performance. The Trust’s relatively neutral duration positioning also proved advantageous. Additionally, an overweight in higher-quality uninsured bonds enhanced relative returns, as these holdings were less affected by the credit rating downgrades of the monoline insurers and the reduced liquidity and spread widening of enhanced paper. Looking ahead, we believe the Trust is well positioned to benefit amid a reversion to historical valuations versus Treasury issues and a continued slowing economy. 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 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

 

 

BQH

 

Initial Offering Date

 

 

April 30, 2002

 

Yield on Closing Market Price as of August 31, 2008 ($14.62)1

 

 

5.58%

 

Tax Equivalent Yield2

 

 

8.58%

 

Current Monthly Distribution per Common Share3

 

 

$ 0.068

 

Current Annualized Distribution per Common Share3

 

 

$ 0.816

 

Leverage as of August 31, 20084

 

 

37%

 

         

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.


The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

                       

Market Price

 

 

$

14.62

 

 

 

$

16.32

 

 

 

 

(10.42)

%

 

 

$

18.00

 

 

 

$

14.42

 

 

Net Asset Value

 

 

$

14.71

 

 

 

$

15.39

 

 

 

 

(4.42)

%

 

 

$

15.76

 

 

 

$

14.34

 

 

                                                     

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

 

 

Portfolio Composition

 


 

 

 

 

 

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

 

           

Transportation

 

 

 

19

%

 

 

 

12

%

 

Education

 

 

 

13

 

 

 

 

14

 

 

Housing

 

 

 

13

 

 

 

 

17

 

 

Water & Sewer

 

 

 

11

 

 

 

 

11

 

 

City, County & State

 

 

 

10

 

 

 

 

9

 

 

Tax Revenue

 

 

 

9

 

 

 

 

8

 

 

Tobacco

 

 

 

9

 

 

 

 

10

 

 

Hospitals

 

 

 

8

 

 

 

 

2

 

 

Lease Revenue

 

 

 

5

 

 

 

 

5

 

 

Industrial & Pollution Control

 

 

 

3

 

 

 

 

9

 

 

Power

 

 

 

 

 

 

 

3

 

 

                       

 

 

Credit Quality Allocations5

 


 

 

 

 

 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

 

           

AAA/Aaa

 

 

 

38

%

 

 

 

43

%

 

AA/Aa

 

 

 

25

 

 

 

 

19

 

 

A

 

 

 

12

 

 

 

 

12

 

 

BBB/Baa

 

 

 

17

 

 

 

 

17

 

 

B

 

 

 

7

 

 

 

 

8

 

 

Not Rated

 

 

 

1

 

 

 

 

1

 

 

                       

 

 

5

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


 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

15



 

 


 

Trust Summary as of August 31, 2008

BlackRock New York Municipal Income Trust II


 

 

Investment Objective

 


BlackRock New York Municipal Income Trust II (BFY) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes and New York State and New York City personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

 

Performance

 


For the 12 months ended August 31, 2008, the Trust returned 1.08% based on market price and 1.70% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 1.26% on a NAV basis. All returns reflect reinvestment of dividends. The Trust maintained an average distribution rate over the annual period. However, performance benefited from a relatively neutral duration positioning, as well as an overweight in higher-quality uninsured bonds, which were less affected by the credit rating downgrades of the monoline insurers and the reduced liquidity and spread widening of enhanced paper. Looking ahead, we believe the Trust is well positioned to benefit amid a reversion to historical valuations versus Treasury issues and a continued slowing economy. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

 

 

 

The 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 American Stock Exchange

 

BFY

Initial Offering Date

 

July 30, 2002

Yield on Closing Market Price as of August 31, 2008 ($13.60)1

 

5.51%

Tax Equivalent Yield2

 

8.48%

Current Monthly Distribution per Common Share3

 

$ 0.0625

Current Annualized Distribution per Common Share3

 

$ 0.7500

Leverage as of August 31, 20084

 

39%

     

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares) minus the sum of accrued liabilities.


The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

8/31/08

 

8/31/07

 

Change

 

High

 

Low

 

                       

Market Price

 

$

13.60

 

$

14.22

 

 

 

(4.36

)%

 

$

15.30

 

$

13.04

 

Net Asset Value

 

$

14.28

 

$

14.84

 

 

 

(3.77

)%

 

$

15.26

 

$

13.72

 

                                     

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

 

 

Portfolio Composition

 


 

 

 

 

 

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

 

           

Transportation

 

 

 

21

%

 

 

 

20

%

 

Education

 

 

 

17

 

 

 

 

18

 

 

Housing

 

 

 

11

 

 

 

 

10

 

 

Tobacco

 

 

 

11

 

 

 

 

11

 

 

Industrial & Pollution Control

 

 

 

11

 

 

 

 

15

 

 

Hospitals

 

 

 

7

 

 

 

 

4

 

 

City, County & State

 

 

 

7

 

 

 

 

9

 

 

Water & Sewer

 

 

 

7

 

 

 

 

6

 

 

Tax Revenue

 

 

 

5

 

 

 

 

5

 

 

Power

 

 

 

3

 

 

 

 

2

 

 

                       

 

 

Credit Quality Allocations5

 


 

 

 

 

 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

 

                       

AAA/Aaa

 

 

 

30

%

 

 

 

47

%

 

AA/Aa

 

 

 

40

 

 

 

 

25

 

 

A

 

 

 

14

 

 

 

 

13

 

 

BBB/Baa

 

 

 

7

 

 

 

 

8

 

 

BB/Ba

 

 

 

2

 

 

 

 

 

 

B

 

 

 

6

 

 

 

 

6

 

 

Not Rated

 

 

 

1

 

 

 

 

1

 

 

                       

 

 

5

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


 

 

 

 

 

 

 

 

16

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Trust Summary as of August 31, 2008

BlackRock Virginia Municipal Bond Trust

 

 

Investment Objective

 


BlackRock Virginia Municipal Bond Trust (BHV) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and Virginia personal income taxes. Under normal market conditions, the Trust will invest at least 80% of its total assets in municipal bonds that are investment grade quality, or determined by the Advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

 

Performance

 

For the 12 months ended August 31, 2008, the Trust returned 14.97% based on market price and 1.59% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 1.93% on a NAV basis. All returns reflect reinvestment of dividends. The Trust derived most of its positive performance from income generated by book yields that are comfortably above current market rates. The Trust’s longer-maturity holdings also benefited results, as the yield curve flattened significantly amid heightened inflation concerns and these issues outperformed. Moreover, positive sector allocation and minimal exposure to the troubled monoline insurers proved advantageous. The Trust’s premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV.

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 American Stock Exchange

 

BHV

 

Initial Offering Date

 

April 30, 2002

 

Yield on Closing Market Price as of August 31, 2008 ($19.50)1

 

4.46%

 

Tax Equivalent Yield2

 

6.86%

 

Current Monthly Distribution per Common Share3

 

$0.072428

 

Current Annualized Distribution per Common Share3

 

$0.869136

 

Leverage as of August 31, 20084

 

37%

 

       

 

 

1

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price.
Past performance does not guarantee future results.

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

3

The distribution is not constant and is subject to change.

4

As a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities.

The table below summarizes the changes in the Trust’s market price and net asset value per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

 

 

8/31/08

 

8/31/07

 

 

Change

 

High

 

Low

 

                                 

Market Price

 

$

19.50

 

$

17.85

 

 

9.24

%

$

20.60

 

$

16.25

 

Net Asset Value

 

$

15.03

 

$

15.57

 

 

(3.47

)%

$

16.12

 

$

14.68

 

                                 

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

 

Portfolio Composition


 

 

 

 

 

 

 

 

Sector

 

8/31/08

 

8/31/07

 

               

Hospitals

 

23

%

 

17

%

 

Water & Sewer

 

17

 

 

18

 

 

Transportation

 

13

 

 

21

 

 

Housing

 

13

 

 

17

 

 

Education

 

10

 

 

4

 

 

City, County & State

 

9

 

 

10

 

 

Industrial & Pollution Control

 

7

 

 

6

 

 

Lease Revenue

 

4

 

 

4

 

 

Tobacco

 

3

 

 

3

 

 

Tax Revenue

 

1

 

 

 

 

               

 

Credit Quality Allocations5


 

 

 

 

 

 

 

 

Credit Rating

 

8/31/08

 

8/31/07

 

           

AAA/Aaa

 

34

%

 

50

%

 

AA/Aa

 

27

 

 

12

 

 

A

 

17

 

 

12

 

 

BBB/Baa

 

7

 

 

14

 

 

Not Rated

 

15

6

 

12

 

 

               

 

 

5

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

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2008 the market value of these securities was $2,170,858 representing 6%, respectively, of the Trust’s long-term investments.


 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

17



 

 


 

The Benefits and Risks of Leveraging

 


The Trusts may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, each Trust issues Preferred Shares, which pay dividends at prevailing short-term interest rates, and invests the proceeds in long-term municipal bonds. The interest earned on these investments is paid to Common Shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV of each Trust’s Common Shares. However, in order to benefit Common Shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. At the same time, a period of generally declining interest rates will benefit Common Shareholders. If either of these conditions change, then the risks of leveraging will begin to outweigh the benefits. If the yield curve becomes negatively sloped, meaning short term interest rates exceed long term interest rates, returns to Common Shareholders will be lower than if the Fund had not used leverage.

To illustrate these concepts, assume a trust’s Common Shares capitalization of $100 million and the issuance of 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 approximately 3% and long-term interest rates are approximately 6%, the yield curve has a strongly positive slope. The fund pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the fund’s total portfolio of $150 million earns the income based on long-term interest rates.

In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the fund’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental yield. However, if short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental yield pickup on the Common Shares will be reduced or eliminated completely. At the same time, the market value of the fund’s Common Shares (that is, its price as listed on the New York Stock Exchange or American Stock Exchange), may, as a result, decline. Furthermore, if long-term interest rates rise, the Common Shares’ NAV will reflect the full decline in the price of the portfolio’s investments, since the value of the fund’s Preferred Shares does not fluctuate. In addition to the decline in NAV, the market value of the fund’s Common Shares may also decline.

In addition, the Trusts may from time to time leverage their assets through the use of tender option bond (“TOB”) programs. In a typical TOB program, the Trust transfers one or more municipal bonds to a TOB trust, which issues short-term variable rate securities to third-party investors and a residual interest to the Trust. The cash received by the TOB trust from the issuance of the short-term securities (less transaction expenses) is paid to the Trust, which invests the cash in additional portfolio securities. The distribution rate on the short-term securities is reset periodically (typically every seven days) through a remarketing of the short-term securities. Any income earned on the bonds in the TOB trust, net of expenses incurred by the TOB trust, that is not paid to the holders of the short-term securities is paid to the Trust. In connection with managing the Trusts’ assets, the Trusts’ investment advisor may at the time retrieve the bonds out of the TOB trust typically within seven days. TOB investments generally will provide the Trust with economic benefits in periods of declining short-term interest rates, but expose the Trust to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trust, as described above. Additionally, fluctuations in the market value of municipal securities deposited into the TOB trust may adversely affect the Trusts’ NAVs per share. (See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOB trusts.).

Under the Investment Company Act of 1940, the Trusts are permitted to issue Preferred Shares in an amount of up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Trust anticipates that the total economic leverage incurred from Preferred Shares and TOBs will not exceed 50% of its total managed assets. As of August 31, 2008, the Trusts had leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:

 

 

 

 

 

 

 

 

Percent of
Leverage

BlackRock Insured Municipal Income Investment Trust

 

 

38

%

BlackRock Insured Municipal Income Trust

 

 

38

%

BlackRock Municipal Bond Investment Trust

 

 

38

%

BlackRock Municipal Bond Trust

 

 

39

%

BlackRock Municipal Income Trust II

 

 

39

%

BlackRock California Insured Municipal Income Trust

 

 

38

%

BlackRock California Municipal Bond Trust

 

 

37

%

BlackRock California Municipal Income Trust II

 

 

39

%

BlackRock Maryland Municipal Bond Trust

 

 

38

%

BlackRock New Jersey Municipal Bond Trust

 

 

38

%

BlackRock New York Insured Municipal Income Trust

 

 

38

%

BlackRock New York Municipal Bond Trust

 

 

37

%

BlackRock New York Municipal Income Trust II

 

 

39

%

BlackRock Virginia Municipal Bond Trust

 

 

37

%

 


 

 

Swap Agreements

 


The Trusts may invest in swap agreements, which are over-the-counter contracts in which one party agrees to make periodic payments based on the change in market value of a specified bond, basket of bonds, or index in return for periodic payments based on a fixed or variable interest rate or the change in market value of a different bond, basket of bonds or index. Swap agreements may be used to obtain exposure to a bond market without owning or taking physical custody of securities. Swap agreements involve the risk that the party with whom each Trust has entered into a swap will default on its obligation to pay the Trust and the risk that the Trust will not be able to meet its obligation to pay the other party to the agreement.

 

 

 

 

 

 

 

 

18

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Schedule of Investments August 31, 2008

BlackRock Insured Municipal Income Investment Trust (BAF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Florida—121.4%

 

 

 

 

 

 

 

               

Brevard County, Florida, Health Facilities Authority,
Healthcare Facilities Revenue Bonds (Health First
Inc. Project), 5%, 4/01/36

 

$

1,750

 

$

1,540,945

 

               

Broward County, Florida, School Board, COP, Series A,
5.25%, 7/01/33 (a)

 

 

2,200

 

 

2,209,900

 

               

Colonial Country Club Community Development District,
Florida, Special Assessment Revenue Bonds,
6.40%, 5/01/33

 

 

3,735

 

 

3,787,664

 

               

Florida State Board of Education, Lottery Revenue Bonds:

 

 

 

 

 

 

 

Series B, 5%, 7/01/28

 

 

1,200

 

 

1,196,928

 

Series C, 5%, 1/01/22 (b)

 

 

8,640

 

 

8,826,019

 

               

Florida State Department of Transportation, GO, Refunding,
5%, 7/01/27 (a)

 

 

7,000

 

 

7,089,530

 

               

Gainesville, Florida, Utilities System Revenue Bonds,
Series A, 5%, 10/01/13 (a)(c)

 

 

2,500

 

 

2,744,175

 

               

Highlands County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Adventist Health System), Series A,
6%, 11/15/11 (c)

 

 

8,500

 

 

9,450,130

 

               

Hillsborough County, Florida, Aviation Authority, Revenue
Refunding Bonds, Series D, 5.50%, 10/01/26 (d)

 

 

1,295

 

 

1,361,472

 

               

Hillsborough County, Florida, IDA, PCR, Refunding (Tampa
Electric Company Project), Series B, 5.15%, 9/01/25

 

 

500

 

 

513,070

 

               

Hillsborough County, Florida, School Board, COP, Refunding,
Series A, 5%, 7/01/25 (b)

 

 

7,580

 

 

7,639,048

 

               

Jacksonville, Florida, Excise Taxes Revenue Bonds, Series B,
5%, 10/01/26 (e)

 

 

8,000

 

 

8,031,920

 

               

Lake County, Florida, School Board, COP, Series A,
5%, 7/01/28 (e)

 

 

3,500

 

 

3,495,380

 

               

Miami, Florida, Special Obligation Revenue Bonds
(Street and Sidewalk Improvement Program) (b):

 

 

 

 

 

 

 

5.25%, 1/01/28

 

 

5,535

 

 

5,583,376

 

5%, 1/01/37

 

 

1,750

 

 

1,685,723

 

               

Miami-Dade County, Florida, School Board, COP, Refunding,
Series B (d):

 

 

 

 

 

 

 

5.25%, 5/01/25

 

 

1,000

 

 

1,025,860

 

5.25%, 5/01/28

 

 

1,600

 

 

1,625,360

 

5.25%, 5/01/30

 

 

1,500

 

 

1,527,225

 

               

Miami-Dade County, Florida, Special Obligation Revenue
Bonds (b)(f):

 

 

 

 

 

 

 

Sub-Series A, 5.26%, 10/01/39

 

 

10,000

 

 

1,606,500

 

Sub-Series A, 5.26%, 10/01/40

 

 

10,000

 

 

1,510,000

 

Sub-Series B, 5.617%, 10/01/31

 

 

26,935

 

 

7,529,141

 

               

Orange County, Florida, Educational Facilities Authority,
Educational Facilities Revenue Bonds (Rollins College
Project), 5.25%, 12/01/27 (e)

 

 

1,335

 

 

1,360,378

 

               

Orange County, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds (Orlando Regional Healthcare),
Series B, 5.25%, 12/01/29 (a)

 

 

1,500

 

 

1,529,580

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Florida (continued)

 

 

 

 

 

 

 

               

Orange County, Florida, Sales Tax Revenue Refunding Bonds,
Series B, 5.125%, 1/01/32 (g)

 

$

7,975

 

$

8,053,155

 

               

Orange County, Florida, School Board, COP, Series A,
5%, 8/01/27 (b)

 

 

2,000

 

 

1,997,500

 

               

Orange County, Florida, Tourist Development, Senior Lien Tax
Revenue Bonds, 5.125%, 4/01/12 (c)(e)

 

 

9,250

 

 

10,048,460

 

               

Orange County, Florida, Tourist Development, Tax Revenue
Refunding Bonds, 5%, 10/01/29 (e)

 

 

1,600

 

 

1,589,616

 

               

Orlando and Orange County, Florida, Expressway Authority
Revenue Bonds, Series A, 5%, 7/01/32 (a)

 

 

2,500

 

 

2,502,475

 

               

Palm Bay, Florida, Utility System Improvement Revenue
Bonds (f)(g):

 

 

 

 

 

 

 

5.47%, 10/01/28

 

 

4,015

 

 

1,262,677

 

5.48%, 10/01/31

 

 

5,570

 

 

1,408,764

 

               

Pasco County, Florida, School Board, COP, Series A,
5%, 8/01/27 (b)(g)

 

 

5,815

 

 

5,807,731

 

               

Pinellas County, Florida, Health Facilities Authority Revenue
Bonds (BayCare Health System Inc.), 5.50%, 5/15/13 (c)

 

 

5,000

 

 

5,576,750

 

               

Polk County, Florida, Utility System Revenue Bonds,
5%, 10/01/29 (b)(g)

 

 

5,000

 

 

4,967,550

 

               

Saint Johns County, Florida, Ponte Vedra Utility System
Revenue Bonds, 5%, 10/01/37 (a)

 

 

2,600

 

 

2,599,870

 

               

Sarasota County, Florida, Utilities System Revenue
Refunding Bonds, Series C, 5.25%, 10/01/22 (g)

 

 

2,945

 

 

3,061,063

 

               

Sunrise, Florida, Utility System Revenue Refunding Bonds,
5%, 10/01/28 (e)

 

 

5,000

 

 

4,980,950

 

               

Tohopekaliga, Florida, Water Authority, Utility System
Revenue Bonds, Series B, 5%, 10/01/23 (a)

 

 

1,000

 

 

1,025,580

 

               

Village Center Community Development District, Florida,
Recreational Revenue Bonds, Series A, 5%, 11/01/32 (b)

 

 

10,000

 

 

9,579,900

 

               

Village Community Development District Number 5, Florida,
Special Assessment Bonds, Series A, 6.50%, 5/01/33

 

 

3,520

 

 

3,599,798

 

               

Total Municipal Bonds—121.4%

 

 

 

 

 

150,931,163

 

               

 

 

 

 

 

 

 

 


Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

 

 

 

 

 

 

               

Florida State Board of Education, GO (Public Education
Capital Outlay), Series A, 5%, 6/01/27 (a)

 

 

9,000

 

 

9,113,220

 

Jacksonville, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Baptist Medical Center Project),
5%, 8/15/37 (a)

 

 

1,005

 

 

989,854

 

Jacksonville, Florida, Sales Tax Revenue Bonds,
5%, 10/01/27 (b)

 

 

3,938

 

 

3,990,601

 

Jacksonville, Florida, Transit Revenue Bonds,
5%, 10/01/31 (b)

 

 

9,500

 

 

9,513,028

 


 

 

Portfolio Abbreviations

 

To simplify the listings of the portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the list on the right.

 

 

AMT

Alternative Minimum Tax (subject to)

CABS

Capital Appreciation Bonds

COP

Certificates of Participation

EDA

Economic Development Authority

EDR

Economic Development Revenue Bonds

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

IDR

Industrial Development Revenue Bonds

M/F

Multi-Family

PCR

Pollution Control Revenue Bonds

PILOT

Payment in Lieu of Taxes

S/F

Single-Family

SIFMA

Securities Industry and Financial Markets Association

TFABS

Tobacco Flexible Amortization Bonds

VRDN

Variable Rate Demand Notes


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

19



 

 


 

Schedule of Investments (concluded)

BlackRock Insured Municipal Income Investment Trust (BAF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (h)

 

Par
(000)

 

Value

 

           

Florida (concluded)

 

 

 

 

 

 

 

               

Orlando, Florida, Senior Tourist Development Tax
Revenue Bonds (6th Cent Contract Payments),
Series A, 5.25%, 11/01/38 (d)

 

$

2,200

 

$

2,206,182

 

Palm Beach County, Florida, School Board, COP, Refunding,
Series D, 5%, 8/01/28 (a)

 

 

9,192

 

 

9,269,860

 

Pinellas County, Florida, Sewer Revenue Bonds,
5%, 10/01/32 (a)

 

 

9,500

 

 

9,507,980

 

               

Total Municipal Bonds Transferred to Tender Option
Bond Trusts—35.9%

 

 

 

 

 

44,590,725

 

               

Total Long-Term Investments
(Cost—$194,728,114)—157.3%

 

 

 

 

 

195,521,888

 

               

 

 

 

 

 

 

 

 


Short-Term Securities

 

Shares

 

 

 

           

CMA Florida Municipal Money Fund, 1.28% (i)(j)

 

 

4,278,745

 

 

4,278,745

 

               

Total Short-Term Securities (Cost—$4,278,745)—3.4%

 

 

 

 

 

4,278,745

 

               

Total Investments (Cost—$199,006,859*)—160.7%

 

 

 

 

 

199,800,633

 

Other Assets Less Liabilities—0.5%

 

 

 

 

 

662,267

 

Liability for Trust Certificates,
Including Interest Expense and Fees Payable (25.5)%

 

 

 

 

 

(31,760,459

)

Preferred Shares, at Redemption Value—(35.7)%

 

 

 

 

 

(44,397,229

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

124,305,212

 

 

 

 

 

 

     

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

167,791,859

 

 

 

     

Gross unrealized appreciation

 

$

2,948,642

 

Gross unrealized depreciation

 

 

(2,544,742

)

 

 

     

Net unrealized appreciation

 

$

403,900

 

 

 

     

 

 

(a)

FSA Insured.

(b)

MBIA Insured.

(c)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(d)

Assured Guaranty Insured.

(e)

AMBAC Insured.

(f)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(g)

FGIC Insured.

(h)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(i)

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


 

 

 

 

 

 

 

 

           

Affiliate

 

Net
Activity

 

Dividend
Income

 

           

CMA Florida Municipal Money Fund

 

 

(790,633

)

$

109,052

 

               

 

 

(j)

Represents the current yield as of report date.



Forward interest rate swaps outstanding as of August 31, 2008 were as follows:

 

 

 

 

 

 

 

 

           

 

 

Notional
Amount
(000)

 

Unrealized
Depreciation

 

           

Pay a fixed rate of 3.845% and
receive a floating rate based
on 1-week SIFMA Municipal
Swap Index Rate

 

 

 

 

 

 

 

Broker, Citibank, N.A.
Expires September 2023

 

$

3,750

 

$

(127,751

)

               

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

20

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

 

Schedule of Investments August 31, 2008

BlackRock Insured Municipal Income Trust (BYM)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Alabama—0.6%

 

 

 

 

 

 

 

               

Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 4.75%, 1/01/25

 

$

2,800

 

$

2,296,055

 

               

Arizona—0.9%

 

 

 

 

 

 

 

               

Salt Verde Financial Corporation, Arizona, Senior Gas
Revenue Bonds, 5%, 12/01/37

 

 

4,000

 

 

3,317,880

 

               

California—33.6%

 

 

 

 

 

 

 

               

Arcadia, California, Unified School District, GO (Election
of 2006), CABS, Series A, 4.96%, 8/01/39 (a)(b)

 

 

2,000

 

 

350,400

 

               

California Infrastructure and Economic Development Bank,
First Lien Revenue Bonds (Bay Area Toll Bridges Retrofit),
Series A, 5%, 1/01/28 (c)(d)

 

 

10,100

 

 

10,938,198

 

               

California State Department of Water Resources, Power
Supply Revenue Bonds, Series A, 5.375%, 5/01/12 (d)

 

 

14,000

 

 

15,567,720

 

               

Coast Community College District, California, GO, Refunding
(Election of 2002), Series C (a):

 

 

 

 

 

 

 

5.504%, 8/01/31 (e)

 

 

7,450

 

 

5,699,101

 

5.39%, 8/01/36 (b)

 

 

4,200

 

 

903,378

 

               

Fresno, California, Unified School District, GO (Election of
2001), Series E, 5%, 8/01/30 (a)

 

 

1,100

 

 

1,117,941

 

               

Golden State Tobacco Securitization Corporation of California,
Tobacco Settlement Revenue Bonds, Series A-1 (d):

 

 

 

 

 

 

 

6.625%, 6/01/13

 

 

6,500

 

 

7,477,535

 

6.75%, 6/01/13

 

 

14,500

 

 

16,760,115

 

               

Los Angeles, California, Municipal Improvement Corporation,
Lease Revenue Bonds, Series B1, 4.75%, 8/01/37 (f)

 

 

4,000

 

 

3,704,000

 

               

Los Angeles County, California, Metropolitan Transportation
Authority, Sales Tax Revenue Refunding Bonds, Proposition C,
VRDN, Second Senior Series A, 7.50%, 7/01/20 (g)(h)(o)

 

 

5,000

 

 

5,000,000

 

               

Metropolitan Water District of Southern California, Waterworks
Revenue Bonds, Series B-1, 5%, 10/01/33 (f)

 

 

17,500

 

 

17,600,625

 

               

Monterey Peninsula Community College District, California,
GO, CABS, Series C (a)(b):

 

 

 

 

 

 

 

5.15%, 8/01/31

 

 

13,575

 

 

3,870,504

 

5.16%, 8/01/32

 

 

14,150

 

 

3,786,682

 

               

Orange County, California, Sanitation District, COP, Series B,
5%, 2/01/31 (a)

 

 

2,500

 

 

2,518,700

 

               

Sacramento, California, Unified School District, GO (Election
of 2002), 5%, 7/01/30 (h)

 

 

2,700

 

 

2,726,298

 

               

San Joaquin Hills, California, Transportation Corridor Agency,
Toll Road Revenue Refunding Bonds, Series A, 5.45%,
1/15/31 (b)(h)

 

 

53,000

 

 

13,694,140

 

               

San Jose, California, Unified School District, Santa Clara
County, GO (Election of 2002), Series B, 5%, 8/01/29 (f)

 

 

2,350

 

 

2,369,059

 

               

University of California Revenue Bonds, Series O, 5%,
9/01/10 (d)(f)

 

 

9,000

 

 

9,617,580

 

 

 

 

 

 

     

 

 

 

 

 

 

123,701,976

 

               

District of Columbia—2.6%

 

 

 

 

 

 

 

               

District of Columbia Tobacco Settlement Financing
Corporation, Asset-Backed Revenue Refunding Bonds,
6.75%, 5/15/40

 

 

9,500

 

 

9,425,044

 

               

Florida—9.9%

 

 

 

 

 

 

 

               

Broward County, Florida, School Board, COP, Series A,
5.25%, 7/01/33 (a)

 

 

2,000

 

 

2,009,000

 

               

Florida State Department of Environmental Protection,
Preservation Revenue Bonds, Series B, 5%, 7/01/27 (h)

 

 

7,500

 

 

7,505,250

 

               

Highlands County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Adventist Health System), Series C,
5.25%, 11/15/36

 

 

1,650

 

 

1,588,801

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Florida (concluded)

 

 

 

 

 

 

 

               

Miami-Dade County, Florida, Aviation Revenue Bonds
(Miami International Airport), Series B, 5%, 10/01/37 (f)

 

$

9,000

 

$

8,652,960

 

               

Miami-Dade County, Florida, School Board, COP, Refunding,
Series B (i):

 

 

 

 

 

 

 

5.25%, 5/01/31

 

 

3,700

 

 

3,764,306

 

5%, 5/01/33

 

 

7,500

 

 

7,415,625

 

               

Miami-Dade County, Florida, Special Obligation Revenue
Bonds, Sub-Series A, 5.25%, 10/01/38 (b)(h)

 

 

25,520

 

 

4,410,877

 

               

Miami, Florida, Special Obligation Revenue Bonds (Street and
Sidewalk Improvement Program), 5%, 1/01/37 (h)

 

 

1,000

 

 

963,270

 

 

 

 

 

 

     

 

 

 

 

 

 

36,310,089

 

               

Georgia—3.1%

 

 

 

 

 

 

 

               

Atlanta, Georgia, Water and Wastewater Revenue Bonds (a):

 

 

 

 

 

 

 

5%, 11/01/34

 

 

7,000

 

 

6,959,050

 

5%, 11/01/37

 

 

4,475

 

 

4,433,963

 

 

 

 

 

 

     

 

 

 

 

 

 

11,393,013

 

               

Illinois—7.5%

 

 

 

 

 

 

 

               

Chicago, Illinois, Motor Fuel Tax Revenue Bonds, Series A, 5%,
1/01/38 (i)

 

 

5,000

 

 

4,969,200

 

               

Chicago, Illinois, Special Transportation Revenue Bonds, 5.25%,
1/01/27 (c)(d)

 

 

11,550

 

 

12,055,659

 

               

Illinois Municipal Electric Agency, Power Supply Revenue
Bonds, Series A, 5.25%, 2/01/27 (f)(h)

 

 

5,000

 

 

5,112,450

 

               

Metropolitan Pier and Exposition Authority, Illinois, Dedicated
State Tax Revenue Refunding Bonds (McCormick Place
Expansion), 5.50%, 6/15/28 (b)(h)

 

 

15,000

 

 

5,377,650

 

 

 

 

 

 

     

 

 

 

 

 

 

27,514,959

 

               

Louisiana—1.4%

 

 

 

 

 

 

 

               

Louisiana State, Gas and Fuels Tax Revenue Bonds,
Series A, 5%, 5/01/35 (f)

 

 

5,000

 

 

4,956,000

 

               

Massachusetts—0.2%

 

 

 

 

 

 

 

               

Massachusetts Bay Transportation Authority, Sales Tax Revenue
Refunding Bonds, Senior Series A-2, 5.12%,7/01/35 (b)

 

 

3,200

 

 

686,400

 

               

Michigan—4.8%

 

 

 

 

 

 

 

               

Detroit, Michigan, Sewage Disposal System, Second Lien
Revenue Bonds (f):

 

 

 

 

 

 

 

Series A, 5.50%, 7/01/36 (j)

 

 

3,000

 

 

3,122,340

 

Series B, 5%, 7/01/33 (h)

 

 

4,000

 

 

3,888,840

 

Series B, 5%, 7/01/36 (h)

 

 

7,000

 

 

6,764,800

 

               

Detroit, Michigan, Water Supply System Revenue Bonds,
Senior Lien, Series A:

 

 

 

 

 

 

 

5%, 7/01/30 (f)

 

 

1,000

 

 

966,410

 

5%, 7/01/34 (h)(k)

 

 

3,000

 

 

2,902,620

 

 

 

 

 

 

     

 

 

 

 

 

 

17,645,010

 

               

Nevada—7.7%

 

 

 

 

 

 

 

               

Reno, Nevada, Sales and Room Tax Revenue Refunding Bonds
(ReTrac-Reno Transportation Rail Access Corridor Project),
Senior Lien, 5.125%, 6/01/12 (c)(d)

 

 

5,000

 

 

5,439,400

 

               

Truckee Meadows, Nevada, Water Authority, Water Revenue
Bonds, Series A (a)(d):

 

 

 

 

 

 

 

5%, 7/01/11

 

 

10,000

 

 

10,694,900

 

5.125%, 7/01/11

 

 

6,500

 

 

6,973,850

 

5.25%, 7/01/11

 

 

5,000

 

 

5,381,500

 

 

 

 

 

 

     

 

 

 

 

 

 

28,489,650

 

               

New York—2.3%

 

 

 

 

 

 

 

               

Metropolitan Transportation Authority, New York, Revenue
Bonds, Series A, 5%, 11/15/31 (a)

 

 

6,450

 

 

6,566,938

 

               

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

21



 

 


 

 

Schedule of Investments (continued)

BlackRock Insured Municipal Income Trust (BYM)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New York—(concluded)

 

 

 

 

 

 

 

               

New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Revenue Refunding
Bonds, Series A, 5%, 6/15/35 (h)

 

$

1,935

 

$

1,943,862

 

 

 

 

 

 

     

 

 

 

 

 

 

8,510,800

 

               

Pennsylvania—1.5%

 

 

 

 

 

 

 

               

Philadelphia, Pennsylvania, Gas Works Revenue Bonds,
3rd Series, 5.125%, 8/01/11 (a)(d)

 

 

5,200

 

 

5,601,596

 

               

South Carolina—5.0%

 

 

 

 

 

 

 

               

South Carolina Transportation Infrastructure Bank Revenue
Bonds (c):

 

 

 

 

 

 

 

Junior Lien, Series B, 5.125%, 10/01/11 (d)

 

 

10,000

 

 

10,806,400

 

Series A, 5%, 10/01/33

 

 

7,750

 

 

7,640,648

 

 

 

 

 

 

     

 

 

 

 

 

 

18,447,048

 

               

Tennessee—5.4%

 

 

 

 

 

 

 

               

Knox County, Tennessee, Health, Educational and Housing
Facilities Board, Hospital Facilities Revenue Refunding
Bonds (Covenant Health), Series A (b):

 

 

 

 

 

 

 

5.84%, 1/01/22 (a)

 

 

11,705

 

 

5,596,512

 

5.88%, 1/01/23 (a)

 

 

9,260

 

 

4,149,591

 

5.90%, 1/01/24 (a)

 

 

8,500

 

 

3,576,290

 

5.91%, 1/01/25 (a)

 

 

6,850

 

 

2,712,669

 

5.93%, 1/01/26 (a)

 

 

5,000

 

 

1,857,000

 

5.07%, 1/01/41

 

 

10,000

 

 

1,244,000

 

               

Tennessee Energy Acquisition Corporation, Gas Revenue
Bonds, Series A, 5.25%, 9/01/26

 

 

650

 

 

595,433

 

 

 

 

 

 

     

 

 

 

 

 

 

19,731,495

 

               

Texas—30.9%

 

 

 

 

 

 

 

               

Coppell, Texas, Independent School District, GO, Refunding,
5.64%, 8/15/30 (b)

 

 

10,030

 

 

3,227,754

 

               

Dallas, Texas, Area Rapid Transit Revenue Refunding
Bonds, Senior Lien, 5%, 12/01/11 (c)(d)

 

 

2,350

 

 

2,536,567

 

               

Harris County-Houston Sports Authority, Texas, Revenue
Refunding Bonds, Junior Lien, Series H (b)(h):

 

 

 

 

 

 

 

5.811%, 11/15/38

 

 

5,785

 

 

852,420

 

5.826%, 11/15/39

 

 

6,160

 

 

849,341

 

               

Harris County-Houston Sports Authority, Texas, Revenue
Refunding Bonds, Third Lien, Series A-3 (b)(h):

 

 

 

 

 

 

 

5.98%, 11/15/38

 

 

26,890

 

 

3,950,679

 

5.99%, 11/15/39

 

 

27,675

 

 

3,804,482

 

               

Harris County, Texas, GO, Refunding (b)(h):

 

 

 

 

 

 

 

5.49%, 8/15/25

 

 

7,485

 

 

3,159,643

 

5.20%, 8/15/28

 

 

10,915

 

 

3,856,924

 

               

Harris County, Texas, Toll Road Revenue Refunding Bonds,
Senior Lien, 5%, 8/15/30 (a)

 

 

5,510

 

 

5,535,401

 

               

Houston, Texas, Combined Utility System, First Lien
Revenue Refunding Bonds, 5%, 11/15/35 (a)

 

 

7,000

 

 

6,917,400

 

               

Lewisville, Texas, Independent School District, Capital
Appreciation and School Building, GO, Refunding,
4.67%, 8/15/24 (b)(f)

 

 

5,315

 

 

2,204,928

 

               

North Texas Tollway Authority, System Revenue Refunding
Bonds, First Tier:

 

 

 

 

 

 

 

CABS, 5.30%, 1/01/29 (b)(i)

 

 

5,000

 

 

1,553,700

 

CABS, 5.42%, 1/01/30 (b)(i)

 

 

1,750

 

 

509,180

 

5.75%, 1/01/40 (h)

 

 

23,050

 

 

23,667,740

 

Series A, 6%, 1/01/25

 

 

750

 

 

784,845

 

               

San Antonio, Texas, Water System Revenue Refunding Bonds (f):

 

 

 

 

 

 

 

5.125%, 5/15/29

 

 

9,350

 

 

9,397,498

 

5.125%, 5/15/34

 

 

10,000

 

 

10,006,600

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Texas (concluded)

 

 

 

 

 

 

 

               

Texas State Turnpike Authority, Central Texas Turnpike System
Revenue Bonds, First Tier, Series A, 5%, 8/15/42 (c)

 

$

28,645

 

$

27,704,298

 

               

Tyler, Texas, Health Facilities Development Corporation,
Hospital Revenue Bonds (Mother Frances Hospital
Regional Health Care Center), 6%, 7/01/12 (d)

 

 

3,000

 

 

3,353,940

 

 

 

 

 

 

     

 

 

 

 

 

 

113,873,340

 

               

Virginia—2.0%

 

 

 

 

 

 

 

               

Chesterfield County, Virginia, IDA, PCR, Refunding (Virginia
Electric and Power Company), Series B, 5.875%, 6/01/17

 

 

4,000

 

 

4,224,640

 

               

Chesterfield County, Virginia, IDA, PCR (Virginia Electric and
Power Company), Series A, 5.875%, 6/01/17

 

 

3,000

 

 

3,159,390

 

 

 

 

 

 

     

 

 

 

 

 

 

7,384,030

 

               

Washington—9.1%

 

 

 

 

 

 

 

               

Central Washington University, System Revenue Bonds,
5%, 5/01/34 (f)

 

 

9,610

 

 

9,220,315

 

               

Chelan County, Washington, Public Utility District Number 001,
Consolidated Revenue Bonds (Chelan Hydro System),
AMT, Series C, 5.125%, 7/01/33 (c)

 

 

3,655

 

 

3,673,058

 

               

Port of Seattle, Washington, Revenue Bonds, Series A, 5%,
4/01/31 (f)

 

 

4,500

 

 

4,428,000

 

               

Washington State, GO, Series 02-A, 5%, 7/01/25 (a)

 

 

6,380

 

 

6,510,981

 

               

Washington State Health Care Facilities Authority, Revenue Bonds
(MultiCare Health System), Series C, 5.50%,8/15/43 (i)

 

 

7,000

 

 

7,129,360

 

               

Washington State Health Care Facilities Authority, Revenue
Refunding Bonds (MultiCare Health System), Series A,
5.50%, 8/15/38 (a)

 

 

2,500

 

 

2,569,425

 

 

 

 

 

 

     

 

 

 

 

 

 

33,531,139

 

               

Total Municipal Bonds—128.5%

 

 

 

 

 

472,815,524

 

               

 

 

 

 

 

 

 

 


Municipal Bonds Transferred to
Tender Option Bond Trusts (l)

 

 

 

 

 

 

 

               

California—8.0%

 

 

 

 

 

 

 

               

San Diego County, California, Water Authority, Water
Revenue Refunding Bonds, COP, Series A, 5%, 5/01/33 (a)

 

 

4,875

 

 

4,938,131

 

               

San Francisco, California, City and County Public Utilities
Commission, Water Revenue Refunding Bonds, Series A,
5%, 11/01/31 (a)

 

 

15,000

 

 

15,068,850

 

               

University of California, Revenue Bonds, Series C, 4.75%,
5/15/37 (h)

 

 

10,000

 

 

9,561,700

 

 

 

 

 

 

     

 

 

 

 

 

 

29,568,681

 

               

Florida—1.3%

 

 

 

 

 

 

 

               

Duval County, Florida, School Board, COP (Master Lease
Program), 5%, 7/01/33 (a)

 

 

2,790

 

 

2,731,522

 

               

Jacksonville, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Baptist Medical Center Project), 5%,
8/15/37 (a)

 

 

1,995

 

 

1,964,935

 

 

 

 

 

 

     

 

 

 

 

 

 

4,696,457

 

               

Illinois—6.6%

 

 

 

 

 

 

 

               

Metropolitan Pier and Exposition Authority, Illinois, Dedicated
State Tax Revenue Bonds (McCormick Place Expansion),
Series A, 5%, 12/15/28 (h)

 

 

24,011

 

 

24,315,602

 

               

Louisiana—2.6%

 

 

 

 

 

 

 

               

Louisiana State, Gas and Fuels Tax Revenue Bonds,
Series A, 4.75%, 5/01/39 (a)

 

 

9,950

 

 

9,501,156

 

               

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

22

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

 

Schedule of Investments (concluded)

BlackRock Insured Municipal Income Trust (BYM)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (l)

 

Par
(000)

 

Value

 

           

Massachusetts—3.6%

 

 

 

 

 

 

 

               

Massachusetts State School Building Authority, Dedicated
Sales Tax Revenue Bonds, Series A, 5%, 8/15/30 (a)

 

$

12,996

 

$

13,232,801

 

               

Michigan—0.9%

 

 

 

 

 

 

 

               

Detroit, Michigan, Sewage Disposal System, Second Lien
Revenue Refunding Bonds, Series E, 5.75%, 7/01/31 (f)(j)

 

 

2,997

 

 

3,225,785

 

               

New York—3.2%

 

 

 

 

 

 

 

               

Erie County, New York, IDA, School Facility Revenue Bonds
(City of Buffalo Project), Series A, 5.75%, 5/01/28 (a)

 

 

4,494

 

 

4,894,296

 

               

Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Revenue Bonds, Series A, 5%, 11/15/31 (h)

 

 

6,994

 

 

7,097,249

 

 

 

 

 

 

     

 

 

 

 

 

 

11,991,545

 

               

Texas—2.6%

 

 

 

 

 

 

 

               

Northside, Texas, Independent School District, GO,
5.125%, 6/15/29

 

 

9,500

 

 

9,702,065

 

               

Utah—1.4%

 

 

 

 

 

 

 

               

Utah Transit Authority, Sales Tax Revenue Bonds, Series A,
5%, 6/15/36 (a)

 

 

5,008

 

 

5,072,976

 

               

Washington—1.6%

 

 

 

 

 

 

 

               

Central Puget Sound Regional Transportation Authority,
Washington, Sales and Use Tax Revenue Bonds, Series A,
5%, 11/01/32 (a)

 

$

3,500

 

$

3,561,600

 

               

King County, Washington, Sewer Revenue Refunding Bonds,
5%, 1/01/36 (a)

 

 

2,204

 

 

2,215,923

 

 

 

 

 

 

     

 

 

 

 

 

 

5,777,523

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—31.8%

 

 

 

 

 

117,084,591

 

               

Total Long-Term Investments (Cost—$585,919,266)—160.3%

 

 

 

 

 

589,900,115

 

               

 

 

 

 

 

 

 

 


Short-Term Securities

 

Shares

 

 

 

 

             

Merrill Lynch Institutional Tax-Exempt Fund, 1.84% (m)(n)

 

 

4,161,064

 

 

4,161,064

 

               

Total Short-Term Securities (Cost—$4,161,064)—1.1%

 

 

 

 

 

4,161,064

 

               

Total Investments (Cost—$590,080,330*)—161.4%

 

 

 

 

 

594,061,179

 

Other Assets Less Liabilities—0.9%

 

 

 

 

 

3,353,869

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable—(21.6)%

 

 

 

 

 

(79,288,058

)

Preferred Shares, at Redemption Value—(40.7)%

 

 

 

 

 

(149,994,479

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

368,132,511

 

 

 

 

 

 

     

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

511,619,031

 

 

 

     

Gross unrealized appreciation

 

$

15,952,515

 

Gross unrealized depreciation

 

 

(12,469,969

)

 

 

     

Net unrealized appreciation

 

$

3,482,546

 

 

 

     

 

 

(a)

FSA Insured.

(b)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(c)

AMBAC Insured.

(d)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(e)

Represents a step bond. Rate shown reflects the effective yield at the time of purchase.

(f)

FGIC Insured.

(g)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(h)

MBIA Insured.

(i)

Assured Guaranty Insured.

(j)

BHAC Insured.

(k)

All or a portion of the security has been pledged as collateral in connection with swaps.

(l)

Securities represent bonds transferred to a tender option trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(m)

Represents the current yield as of report date.

(n)

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


 

 

 

 

 

 

 

 

               

Affiliate

 

Net
Activity

 

Income

 

           

Merrill Lynch Institutional Tax-Exempt Fund

 

 

1,861,064

 

$

332,066

 

               

 

 

(o)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security.

 

 

Forward interest rate swaps outstanding as of August 31, 2008 were as follows:

 

 

 

 

 

 

 

 

           

 

 

Notional
Amount
(000)

 

Unrealized
Depreciation

 

           

Pay a fixed rate of 3.888% and receive a floating
rate based on 1-week SIFMA Municipal Swap Index Rate

 

 

 

 

 

 

 

Broker, JPMorgan Chase

 

 

 

 

 

 

 

Expires October 2028

 

$

15,000

 

$

(451,620

)

Pay a fixed rate of 4.866% and receive a floating
rate based on 3-month LIBOR

 

 

 

 

 

 

 

Broker, Citibank NA

 

 

 

 

 

 

 

Expires November 2028

 

$

12,500

 

 

(140,513

)

Pay a fixed rate of 4.043% and receive a floating
rate based on 1-week SIFMA Municipal Swap Index Rate

 

 

 

 

 

 

 

Broker, Citibank NA

 

 

 

 

 

 

 

Expires September 2038

 

$

16,500

 

 

(824,670

)

               

Total

 

 

 

 

$

(1,416,803

)

 

 

 

 

 

     

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

23




 

 

 


 

Schedule of Investments August 31, 2008

 

BlackRock Municipal Bond Investment Trust (BIE)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

               

Florida—135.6%

 

 

 

 

 

 

 

               

Boynton Beach, Florida, M/F Housing Mortgage Revenue
Refunding Bonds (Clipper Cove Apartments),
5.30%, 1/01/23 (a)

 

$

1,000

 

$

914,340

 

               

Brevard County, Florida, Health Facilities Authority,
Healthcare Facilities Revenue Bonds (Health First Inc. Project), 5%, 4/01/36

 

 

1,000

 

 

880,540

 

               

Broward County, Florida, School Board, COP, Series A,
5.25%, 7/01/33 (b)

 

 

800

 

 

803,600

 

               

Colonial Country Club Community Development District,
Florida, Special Assessment Revenue Bonds,
6.40%, 5/01/33

 

 

1,585

 

 

1,607,349

 

               

Florida Municipal Loan Council, Revenue Refunding Bonds,
Series A, 5.125%, 5/01/32 (c)

 

 

3,150

 

 

3,092,576

 

               

Florida State Board of Education, Lottery Revenue Bonds,
Series B, 5%, 7/01/28

 

 

960

 

 

957,542

 

               

Greater Orlando Aviation Authority, Florida, Airport Facilities
Revenue Refunding Bonds,
Series A, 5.125%, 10/01/32 (b)

 

 

2,100

 

 

2,119,782

 

               

Halifax Hospital Medical Center, Florida, Hospital Revenue
Refunding and Improvement Bonds,
Series A, 5.25%, 6/01/26

 

 

1,000

 

 

948,140

 

               

Heritage Harbour North Community Development District,
Florida, Capital Improvement Bonds, 6.375%, 5/01/38

 

 

750

 

 

660,473

 

               

Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System):

 

 

 

 

 

 

 

Series A, 6%, 11/15/11 (d)

 

 

4,900

 

 

5,447,722

 

Series C, 5.25%, 11/15/36

 

 

700

 

 

674,037

 

               

Hillsborough County, Florida, Aviation Authority, Revenue
Refunding Bonds, Series D, 5.50%, 10/01/26 (e)

 

 

500

 

 

525,665

 

               

Hillsborough County, Florida, IDA, Hospital Revenue Bonds
(H. Lee Moffitt Cancer Center Project),
Series A, 5.25%, 7/01/37

 

 

1,000

 

 

941,970

 

               

Hillsborough County, Florida, IDA, PCR, Refunding (Tampa
Electric Company Project):

 

 

 

 

 

 

 

5.50%, 10/01/23

 

 

1,810

 

 

1,754,017

 

Series A, 5.65%, 5/15/18

 

 

400

 

 

402,992

 

               

Lakeland, Florida, Hospital System Revenue Bonds
(Lakeland Regional Health System),
5.50%, 11/15/12 (d)

 

 

3,000

 

 

3,315,030

 

               

Madison County, Florida, First Mortgage Revenue Bonds
(Twin Oaks Project), Series A, 6%, 7/01/25

 

 

825

 

 

756,698

 

               

Miami Beach, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds (Mount Sinai Medical Center
of Florida), 6.75%, 11/15/21

 

 

1,500

 

 

1,527,135

 

               

Miami-Dade County, Florida, School Board, COP,
Refunding, Series B (e):

 

 

 

 

 

 

 

5.25%, 5/01/25

 

 

500

 

 

512,930

 

5.25%, 5/01/28

 

 

1,000

 

 

1,015,850

 

5.25%, 5/01/30

 

 

600

 

 

610,890

 

5.25%, 5/01/31

 

 

1,000

 

 

1,017,380

 

               

Miami-Dade County, Florida, Special Obligation Revenue
Bonds, Sub-Series B (c)(f):

 

 

 

 

 

 

 

5.95%, 10/01/30

 

 

10,000

 

 

2,964,200

 

5.80%, 10/01/32

 

 

5,410

 

 

1,425,914

 

               

Miami-Dade County, Florida, Special Obligation Revenue
Refunding Bonds, Series A, 5.89%, 10/01/26 (c)(f)

 

 

5,500

 

 

2,061,840

 

               

New River Community Development District, Florida, Capital
Improvement Revenue Bonds, Series B, 5%, 5/01/13

 

 

750

 

 

664,687

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Florida (concluded)

 

 

 

 

 

 

 

               

Orange County, Florida, Educational Facilities Authority,
Educational Facilities Revenue Bonds (Rollins College
Project), 5.25%, 12/01/37 (g)

 

$

1,000

 

$

1,004,280

 

               

Orange County, Florida, Health Facilities Authority, Health
Care Revenue Refunding Bonds (Orlando Lutheran Towers),
5.375%, 7/01/20

 

 

340

 

 

304,827

 

               

Orange County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Orlando Regional Healthcare):

 

 

 

 

 

 

 

5.75%, 12/01/12 (d)

 

 

5,000

 

 

5,572,300

 

5.70%, 7/01/26

 

 

305

 

 

269,736

 

               

Orange County, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds (Orlando Regional Healthcare),
Series B, 5.25%, 12/01/29 (b)

 

 

600

 

 

611,832

 

               

Orange County, Florida, Tourist Development, Senior Lien Tax
Revenue Bonds, 5.125%, 4/01/12 (d)(g)

 

 

3,350

 

 

3,639,172

 

               

Orlando and Orange County, Florida, Expressway Authority
Revenue Bonds, Series A, 5%, 7/01/32 (b)

 

 

1,000

 

 

1,000,990

 

               

Osceola County, Florida, Tourist Development Tax Revenue
Bonds, Series A, 5%, 10/01/32 (c)(h)

 

 

3,105

 

 

2,995,300

 

               

Palm Bay, Florida, Utility System Improvement Revenue
Bonds, 5.68%, 10/01/28 (f)(h)

 

 

3,630

 

 

1,141,599

 

               

Saint Johns County, Florida, Water and Sewer Revenue
Bonds, CABS, 5.393%, 6/01/32 (f)(g)

 

 

1,370

 

 

351,432

 

               

South Broward, Florida, Hospital District Revenue Bonds,
5.60%, 5/01/12 (d)

 

 

2,000

 

 

2,220,260

 

               

South Miami Health Facilities Authority, Florida, Hospital
Revenue Refunding Bonds (Baptist Health System
Obligation Group), 5%, 8/15/32

 

 

1,000

 

 

944,000

 

               

Stevens Plantation Improvement Project Dependent Special
District, Florida, Revenue Bonds, 6.375%, 5/01/13

 

 

1,560

 

 

1,527,568

 

               

Sumter County, Florida, IDA, IDR (North Sumter Utility
Company LLC), AMT, 6.80%, 10/01/32

 

 

2,700

 

 

2,702,565

 

               

Suncoast Community Development District, Florida, Capital
Improvement Revenue Bonds, Series A, 5.875%, 5/01/34

 

 

740

 

 

712,901

 

               

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

 

 

650

 

 

632,879

 

               

Village Community Development District Number 5, Florida,
Special Assessment Bonds, Series A, 6.50%, 5/01/33

 

 

1,345

 

 

1,375,491

 

               

Volusia County, Florida, Educational Facility Authority,
Educational Facilities Revenue Refunding Bonds
(Embry-Riddle Aeronautical University Project) (i):

 

 

 

 

 

 

 

5.20%, 10/15/26

 

 

1,250

 

 

1,166,200

 

5.20%, 10/15/33

 

 

1,610

 

 

1,426,701

 

 

 

 

 

 

     

 

 

 

 

 

 

67,203,332

 

               

Multi-State—6.9%

 

 

 

 

 

 

 

               

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (j)(k)

 

 

3,000

 

 

3,393,060

 

               

Puerto Rico—2.3%

 

 

 

 

 

 

 

               

Puerto Rico Commonwealth Aqueduct and Sewer Authority,
Senior Lien Revenue Bonds, Series A, 6%, 7/01/44

 

 

1,100

 

 

1,151,481

 

               

Total Municipal Bonds—144.8%

 

 

 

 

 

71,747,873

 

               

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

24

ANNUAL REPORT

AUGUST 31, 2008

 




 

 

 


 

Schedule of Investments (concluded)

 

BlackRock Municipal Bond Investment Trust (BIE)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (l)

 

Par
(000)

 

Value

 

           

Florida—10.9%

 

 

 

 

 

 

 

               

Jacksonville Electric Authority, Florida, Saint John’s River
Power Park System Revenue Bonds, Issue Three,
Series 2, 5%, 10/01/37

 

$

510

 

$

512,114

 

               

Jacksonville, Florida, Economic Development Commission,
Health Care Facilities Revenue Bonds
(Mayo Clinic-Jacksonville), Series B, 5.50%, 11/15/36

 

 

3,507

 

 

3,506,496

 

               

Jacksonville, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Baptist Medical Center Project),
5%, 8/15/37 (b)

 

 

1,380

 

 

1,359,203

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—10.9%

 

 

 

 

 

5,377,813

 

               

Total Long-Term Investments (Cost—$75,149,151)—155.7%

 

 

 

 

 

77,125,686

 

               

 

 

 

 

 

 

 

 


Short-Term Securities

 

Shares

 

 

 

 

             

CMA Florida Municipal Money Fund, 1.28% (m)(n)

 

 

2,268,187

 

 

2,268,187

 

               

Total Short-Term Securities (Cost—$2,268,187)—4.6%

 

 

 

 

 

2,268,187

 

               

Total Investments (Cost—$77,417,338*)—160.3%

 

 

 

 

 

79,393,873

 

Liabilities in Excess of Other Assets—(0.1)%

 

 

 

 

 

(66,536

)

Liability for Trust Certificates, Including Interest Expense and Fees Payable—(7.3)%

 

 

 

 

 

(3,610,766

)

Preferred Shares, at Redemption Value—(52.9)%

 

 

 

 

 

(26,184,939

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

49,531,632

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

               

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008 as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

73,618,802

 

 

 

 

 

 

 

     

 

Gross unrealized appreciation

 

 

 

 

$

3,426,306

 

 

Gross unrealized depreciation

 

 

 

 

 

(1,247,596

)

 

 

 

 

 

 

     

 

Net unrealized appreciation

 

 

 

 

$

2,178,710

 

 

 

 

 

 

 

     

 

 

(a)

ACA Insured.

(b)

FSA Insured.

(c)

MBIA Insured.

(d)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(e)

Assured Guaranty Insured.

(f)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(g)

AMBAC Insured.

(h)

FGIC Insured.

(i)

Radian Insured.

(j)

Security exempt from registration under Rule 144A of the Securities Act of 1933.

 

These securities may be resold in transactions exempt from registration to qualified institutional investors.

(k)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(l)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(m)

Represents the current yield as of report date.

(n)

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


 

 

 

 

 

 

 

 

               

Affiliate

 

Net Activity

 

Income

 

           

CMA Florida Municipal Money Fund

 

 

748,233

 

$

48,106

 

               

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

25



 

 

 


 

Schedule of Investments August 31, 2008

 

BlackRock Municipal Bond Trust (BBK)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Alabama—5.7%

 

 

 

 

 

 

 

               

Huntsville, Alabama, Health Care Authority Revenue
Bonds, Series A, 5.75%, 6/01/11 (a)

 

$

7,500

 

$

8,204,325

 

               

Arizona—7.5%

 

 

 

 

 

 

 

               

Glendale, Arizona, Municipal Property Corporation,
Excise Tax Revenue Refunding Bonds, Series A,
4.50%, 7/01/32 (b)

 

 

3,655

 

 

3,430,949

 

               

Goodyear, Arizona, GO, 4.25%, 7/01/37 (b)

 

 

1,250

 

 

1,111,050

 

               

McAllister Academic Village, LLC, Arizona, Revenue
Refunding Bonds (Arizona State University—Hassayampa
Academic Village Project), 5%, 7/01/38

 

 

2,000

 

 

1,876,300

 

               

Salt Verde Financial Corporation, Arizona, Senior Gas
Revenue Bonds:

 

 

 

 

 

 

 

5%, 12/01/32

 

 

1,500

 

 

1,270,575

 

5%, 12/01/37

 

 

2,565

 

 

2,127,591

 

               

San Luis, Arizona, Facilities Development Corporation,
Senior Lien Revenue Bonds (Regional Detention
Center Project):

 

 

 

 

 

 

 

6.25%, 5/01/15

 

 

300

 

 

280,137

 

7%, 5/01/20

 

 

300

 

 

271,440

 

7.25%, 5/01/27

 

 

600

 

 

533,016

 

 

 

 

 

 

     

 

 

 

 

 

 

10,901,058

 

               

California—9.2%

 

 

 

 

 

 

 

               

California County Tobacco Securitization Agency, Tobacco
Revenue Bonds (Stanislaus County Tobacco Funding
Corporation), Sub-Series C, 6.30%, 6/01/55 (c)

 

 

4,500

 

 

89,775

 

               

California HFA, Home Mortgage Revenue Bonds, AMT,
Series G, 5.05%, 2/01/29

 

 

2,835

 

 

2,572,875

 

               

California State Department of Veteran Affairs,
Home Purchase Revenue Bonds, AMT,
Series B, 5.25%, 12/01/37

 

 

5,000

 

 

4,460,200

 

               

Los Angeles County, California, Metropolitan Transportation
Authority, Sales Tax Revenue Refunding Bonds,
Proposition C, VRDN, Second Senior Series A,
7.50%, 7/01/20 (d)(e)(s)

 

 

2,000

 

 

2,000,000

 

               

University of California Revenue Bonds,
Series B, 4.75%, 5/15/38

 

 

2,660

 

 

2,577,487

 

               

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

 

 

1,585

 

 

1,589,375

 

 

 

 

 

 

     

 

 

 

 

 

 

13,289,712

 

               

Colorado—0.4%

 

 

 

 

 

 

 

               

Colorado Springs, Colorado, Utilities System Improvement
Revenue Bonds, Subordinate Lien,
Series C, 5%, 11/15/45 (b)(f)

 

 

635

 

 

632,821

 

               

Connecticut—0.7%

 

 

 

 

 

 

 

               

Connecticut State Health and Educational Facilities Authority
Revenue Bonds (Quinnipiac University),
Series J, 5%, 7/01/37 (e)

 

 

1,000

 

 

976,060

 

               

District of Columbia—12.8%

 

 

 

 

 

 

 

               

District of Columbia Revenue Bonds (Georgetown University),
Series A, 6.071%, 4/01/11 (a)(c)(e)

 

 

33,450

 

 

6,283,248

 

               

District of Columbia Revenue Refunding Bonds
(Friendship Public Charter School, Inc.),
5.25%, 6/01/33 (g)

 

 

595

 

 

495,100

 

               

District of Columbia Tax Increment Revenue Bonds
(Gallery Place Project), 5.40%, 7/01/31 (b)

 

 

6,000

 

 

6,124,020

 

               

District of Columbia Tobacco Settlement Financing
Corporation, Asset-Backed Revenue Refunding Bonds,
6.75%, 5/15/40

 

 

5,580

 

 

5,535,974

 

 

 

 

 

 

     

 

 

 

 

 

 

18,438,342

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

               

Florida—19.3%

 

 

 

 

 

 

 

               

Halifax Hospital Medical Center, Florida, Hospital Revenue
Refunding Bonds, Series A, 5%, 6/01/38

 

$

1,535

 

$

1,324,981

 

               

Martin County, Florida, IDA, IDR, Refunding (Indiantown
Cogeneration Project), AMT, Series A,
7.875%, 12/15/25

 

 

3,000

 

 

3,005,700

 

               

Miami Beach, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds (Mount Sinai Medical
Center of Florida), 6.75%, 11/15/21

 

 

2,810

 

 

2,860,833

 

               

Orange County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Adventist Health System),
5.625%, 11/15/12 (a)

 

 

10,000

 

 

11,175,000

 

               

Orange County, Florida, Tourist Development, Tax Revenue
Refunding Bonds, 4.75%, 10/01/32 (h)

 

 

1,845

 

 

1,746,145

 

               

Palm Beach County, Florida, HFA, M/F Housing Revenue
Bonds (Indian Trace Apartment Project), AMT,
Series A, 5.625%, 1/01/44 (b)

 

 

7,255

 

 

6,688,312

 

               

Stevens Plantation Community Development District, Florida,
Special Assessment Revenue Bonds,
Series A, 7.10%, 5/01/35

 

 

970

 

 

972,105

 

 

 

 

 

 

     

 

 

 

 

 

 

27,773,076

 

               

Georgia—4.7%

 

 

 

 

 

 

 

               

Atlanta, Georgia, Airport Passenger Facility Charge and
Subordinate Lien General Revenue Bonds,
Series J, 5%, 1/01/34 (b)

 

 

940

 

 

930,608

 

               

Atlanta, Georgia, Water and Wastewater Revenue Bonds,
5%, 11/01/37 (b)

 

 

5,000

 

 

4,954,150

 

               

Main Street Natural Gas, Inc., Georgia, Gas Project Revenue
Bonds, Series A, 6.375%, 7/15/38

 

 

1,000

 

 

908,200

 

 

 

 

 

 

     

 

 

 

 

 

 

6,792,958

 

               

Illinois—9.9%

 

 

 

 

 

 

 

               

Bolingbrook, Illinois, GO, Refunding, Series B,
6.196%, 1/01/36 (c)(i)

 

 

23,065

 

 

4,328,839

 

               

Centerpoint Intermodal Center Program Trust, Illinois,
Tax Allocation Bonds, Class A, 8%, 6/15/23 (j)

 

 

1,150

 

 

1,056,022

 

               

Chicago, Illinois, GO, Refunding, Series A, 5.50%, 1/01/38 (e)

 

 

1,540

 

 

1,587,801

 

               

Illinois Health Facilities Authority, Revenue Refunding
Bonds (Lake Forest Hospital), Series A, 5.75%, 7/01/29

 

 

6,000

 

 

6,094,260

 

               

Illinois State Finance Authority Revenue Bonds, Series A:

 

 

 

 

 

 

 

(Friendship Village of Schaumburg),

 

 

 

 

 

 

 

5.625%, 2/15/37

 

 

420

 

 

331,363

 

(Monarch Landing, Inc. Project), 7%, 12/01/37

 

 

720

 

 

694,771

 

               

Illinois State Finance Authority, Student Housing Revenue

 

 

 

 

 

 

 

Bonds (MJH Education Assistance IV LLC),

 

 

 

 

 

 

 

Sub-Series B, 5.375%, 6/01/35

 

 

425

 

 

125,520

 

 

 

 

 

 

     

 

 

 

 

 

 

14,218,576

 

               

Indiana—1.3%

 

 

 

 

 

 

 

               

AIG SunAmerica, Inc., Bloomington, Indiana, M/F Housing
Revenue Bonds (Canterbury House Apartments),
Pass-Through Certificates of Beneficial Ownership,
AMT, Series 1, 5.90%, 12/01/34

 

 

1,910

 

 

1,920,448

 

               

Kansas—3.4%

 

 

 

 

 

 

 

               

Wichita, Kansas, Airport Authority, Airport Facilities Revenue
Bonds (Cessna Citation Service Center), AMT,
Series A, 6.25%, 6/15/32

 

 

5,000

 

 

4,860,850

 

               

Kentucky—1.6%

 

 

 

 

 

 

 

               

Kentucky Economic Development Financing Authority,
Louisville Arena Project Revenue Bonds (Louisville Arena
Authority, Inc.), Sub-Series A-1, 6%, 12/01/38 (k)

 

 

500

 

 

509,180

 

               

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

26

ANNUAL REPORT

AUGUST 31, 2008

 



 

 

 


 

Schedule of Investments (continued)

 

BlackRock Municipal Bond Trust (BBK)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

               

Kentucky (concluded)

 

 

 

 

 

 

 

               

Louisville and Jefferson County, Kentucky, Metropolitan
Government Health Facilities, Revenue Refunding Bonds
(Jewish Hospital and Saint Mary’s HealthCare),
6.125%, 2/01/37

 

$

1,750

 

$

1,774,255

 

 

 

 

 

 

     

 

 

 

 

 

 

2,283,435

 

               

Maryland—3.6%

 

 

 

 

 

 

 

               

Frederick County, Maryland, Special Obligation Tax Bonds
(Urbana Community Development Authority),
Series B, 6.25%, 7/01/30

 

 

2,903

 

 

2,697,526

 

               

Maryland State Community Development Administration,
Department of Housing and Community Development,
Residential Revenue Refunding Bonds, AMT,
Series L, 4.95%, 9/01/38

 

 

1,645

 

 

1,412,052

 

               

Maryland State Health and Higher Educational Facilities
Authority, Revenue Refunding Bonds (MedStar Health, Inc.),
5.50%, 8/15/33

 

 

1,040

 

 

1,021,144

 

 

 

 

 

 

     

 

 

 

 

 

 

5,130,722

 

               

Michigan—0.7%

 

 

 

 

 

 

 

               

Michigan State Hospital Finance Authority, Revenue
Refunding Bonds (Henry Ford Health System), Series A,
5.25%, 11/15/46

 

 

1,065

 

 

971,940

 

               

Missouri—2.1%

 

 

 

 

 

 

 

               

Missouri State Health and Educational Facilities Authority,
Health Facilities Revenue Bonds (Saint Luke’s Health
System), Series A, 5.50%, 11/15/35 (b)

 

 

3,000

 

 

3,053,700

 

               

Nebraska—1.2%

 

 

 

 

 

 

 

               

Omaha Public Power District, Nebraska, Electric System
Revenue Bonds, Series A, 4.75%, 2/01/44

 

 

1,760

 

 

1,670,469

 

               

Nevada—1.8%

 

 

 

 

 

 

 

               

Clark County, Nevada, EDR, Refunding (Alexander Dawson
School of Nevada Project), 5%, 5/15/29

 

 

1,325

 

 

1,288,258

 

               

Las Vegas, Nevada, Special Improvement District Number 809
Revenue Bonds (Summerlin Area), 5.65%, 6/01/23

 

 

1,370

 

 

1,241,097

 

 

 

 

 

 

     

 

 

 

 

 

 

2,529,355

 

               

New Jersey—11.9%

 

 

 

 

 

 

 

               

Middlesex County, New Jersey, Improvement Authority,
Subordinate Revenue Bonds (Heldrich Center Hotel/
Conference Project), Series B, 6.25%, 1/01/37

 

 

915

 

 

767,109

 

               

New Jersey EDA, Cigarette Tax Revenue Bonds:

 

 

 

 

 

 

 

5.50%, 6/15/24

 

 

3,710

 

 

3,525,613

 

5.50%, 6/15/31 (l)

 

 

1,500

 

 

1,456,260

 

               

New Jersey EDA, EDR, Refunding (Kapkowski Road Landfill
Reclamation Improvement District Project),
6.50%, 4/01/28

 

 

7,500

 

 

7,574,175

 

               

New Jersey EDA, First Mortgage Revenue Refunding Bonds
(The Winchester Gardens at Ward Homestead Project),
Series A, 5.80%, 11/01/31

 

 

1,500

 

 

1,407,345

 

               

New Jersey EDA, Special Facility Revenue Bonds (Continental
Airlines Inc. Project), AMT, 7.20%, 11/15/30

 

 

3,000

 

 

2,484,330

 

 

 

 

 

 

     

 

 

 

 

 

 

17,214,832

 

               

New York—5.9%

 

 

 

 

 

 

 

               

Albany, New York, IDA, Civic Facility, Revenue Bonds
(New Covenant Charter School Project),
Series A, 7%, 5/01/35

 

 

455

 

 

344,971

 

               

Hudson Yards Infrastructure Corporation, New York,
Revenue Bonds, Series A, 5%, 2/15/47 (i)

 

 

1,000

 

 

964,120

 

               

Metropolitan Transportation Authority, New York, Service
Contract Revenue Refunding Bonds, Series A,
5%, 7/01/30 (m)

 

 

1,760

 

 

1,770,261

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

               

New York (concluded)

 

 

 

 

 

 

 

               

New York City, New York, City IDA, Special Facility Revenue
Bonds (Continental Airlines Inc. Project), AMT,
7.75%, 8/01/31

 

$

3,165

 

$

2,825,301

 

               

New York Liberty Development Corporation, Revenue Bonds
(Goldman Sachs Headquarters), 5.25%, 10/01/35

 

 

2,610

 

 

2,632,524

 

 

 

 

 

 

     

 

 

 

 

 

 

8,537,177

 

               

North Carolina—4.2%

 

 

 

 

 

 

 

               

Gaston County, North Carolina, Industrial Facilities and
Pollution Control Financing Authority, Revenue Bonds
(National Gypsum Company Project), AMT,
5.75%, 8/01/35

 

 

2,945

 

 

2,293,802

 

               

North Carolina State Educational Assistance Authority,
Revenue Refunding Bonds (Guaranteed Student Loan),
VRDN, AMT, Series A-1, 10%, 9/01/35 (d)(m)(s)

 

 

3,825

 

 

3,825,000

 

 

 

 

 

 

     

 

 

 

 

 

 

6,118,802

 

               

Ohio—0.7%

 

 

 

 

 

 

 

               

Buckeye Tobacco Settlement Financing Authority, Ohio,
Tobacco Settlement Asset-Backed Bonds,
Series A-2, 6.50%, 6/01/47

 

 

1,125

 

 

1,000,586

 

               

Oklahoma—2.0%

 

 

 

 

 

 

 

               

Oklahoma State Development Finance Authority, Revenue
Refunding Bonds (Saint John Health System),
5%, 2/15/42

 

 

1,355

 

 

1,247,969

 

               

Tulsa, Oklahoma, Municipal Airport Trust, Revenue Refunding
Bonds, Series A, 7.75%, 6/01/35

 

 

1,725

 

 

1,631,022

 

 

 

 

 

 

     

 

 

 

 

 

 

2,878,991

 

               

Oregon—0.4%

 

 

 

 

 

 

 

               

AIG SunAmerica, Inc., Portland, Oregon, M/F Housing
Revenue Bonds (Pacific Tower Apartments), Pass-Through
Certificates of Beneficial Ownership, AMT, Series 6,
6.05%, 11/01/34

 

 

540

 

 

526,792

 

               

Pennsylvania—2.7%

 

 

 

 

 

 

 

               

Pennsylvania Economic Development Financing Authority,
Exempt Facilities Revenue Bonds (Reliant Energy),
AMT, Series A, 6.75%, 12/01/36

 

 

3,870

 

 

3,876,735

 

               

South Carolina—0.8%

 

 

 

 

 

 

 

               

South Carolina Jobs EDA, Hospital Facilities Revenue
Refunding Bonds (Palmetto Health Alliance),
Series C 7%, 8/01/13 (a)

 

 

1,000

 

 

1,181,609

 

               

Tennessee—1.0%

 

 

 

 

 

 

 

               

Jackson, Tennessee, Hospital Revenue Refunding Bonds
(Jackson-Madison County General Hospital Project),
5.625%, 4/01/38

 

 

1,500

 

 

1,465,065

 

               

Texas—20.5%

 

 

 

 

 

 

 

               

AIG SunAmerica, Inc., Texas, M/F Housing Revenue Bonds
(Copperwood Ranch Apartments), Pass-Through
Certificates of Beneficial Ownership, AMT,
Series 9, 5.95%, 11/01/35

 

 

2,520

 

 

2,534,011

 

               

Dallas-Fort Worth, Texas, International Airport, Joint Revenue
Bonds, AMT, Series C, 6.25%, 11/01/28 (e)

 

 

450

 

 

452,709

 

               

Harris County-Houston Sports Authority, Texas, Revenue
Refunding Bonds, Senior Lien,
Series G, 6.121%, 11/15/41 (c)(e)

 

 

11,690

 

 

1,493,281

 

               

Lower Colorado River Authority, Texas, Revenue Refunding
Bonds, 5%, 5/15/13 (a)(e)

 

 

15

 

 

16,430

 

               

Montgomery County, Texas, Municipal Utility District
Number 46, Waterworks and Sewer System, GO,
4.75%, 3/01/30 (e)

 

 

430

 

 

417,586

 

               

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

27



 

 

 


 

Schedule of Investments (concluded)

 

BlackRock Municipal Bond Trust (BBK)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 

               

Texas (concluded)

 

 

 

 

 

 

 

               

San Antonio Energy Acquisition Public Facilities Corporation,
Texas, Gas Supply Revenue Bonds:

 

 

 

 

 

 

 

5.50%, 8/01/23

 

$

1,775

 

$

1,711,917

 

5.50%, 8/01/24

 

 

1,620

 

 

1,550,372

 

               

Texas State Turnpike Authority, Central Texas Turnpike System
Revenue Bonds (m):

 

 

 

 

 

 

 

6.09%, 8/15/35 (c)

 

 

60,000

 

 

11,627,400

 

First Tier, Series A, 5%, 8/15/42

 

 

2,115

 

 

2,045,543

 

               

Tyler, Texas, Health Facilities Development Corporation,
Hospital Revenue Bonds (Mother Frances Hospital Regional
Health Care Center), 6%, 7/01/12 (a)

 

 

6,840

 

 

7,646,983

 

 

 

 

 

 

     

 

 

 

 

 

 

29,496,232

 

               

Washington—0.8%

 

 

 

 

 

 

 

               

Washington State Health Care Facilities Authority,
Revenue Refunding Bonds (Providence Health System),
Series A, 4.625%, 10/01/34 (i)

 

 

1,325

 

 

1,199,814

 

               

West Virginia—0.4%

 

 

 

 

 

 

 

               

West Virginia EDA, Lease Revenue Bonds (Correctional, Juvenile
and Public Safety Facilities), Series A, 5%, 6/01/29 (e)

 

 

520

 

 

520,473

 

               

Wisconsin—0.9%

 

 

 

 

 

 

 

               

Wisconsin State Health and Educational Facilities Authority
Revenue Bonds (Aurora Health Care, Inc.), 6.40%, 4/15/33

 

 

1,350

 

 

1,376,487

 

               

Multi State—8.2%

 

 

 

 

 

 

 

               

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (j)(n)

 

 

10,500

 

 

11,875,710

 

               

Puerto Rico—2.3%

 

 

 

 

 

 

 

               

Puerto Rico Commonwealth Aqueduct and Sewer Authority,
Senior Lien Revenue Bonds, Series A, 6%, 7/01/38

 

 

1,200

 

 

1,255,223

 

               

Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds,
Series N (k):

 

 

 

 

 

 

 

5.25%, 7/01/34

 

 

1,070

 

 

1,100,623

 

5.25%, 7/01/36

 

 

900

 

 

929,430

 

 

 

 

 

 

     

 

 

 

 

 

 

3,285,276

 

               

Total Municipal Bonds—148.6%

 

 

 

 

 

214,202,428

 

               

 

 

 

 

 

 

 

 


Municipal Bonds Transferred to
Tender Option Bond Trusts (o)

 

 

 

 

 

 

 

               

California—1.7%

 

 

 

 

 

 

 

               

Sacramento County, California, Airport System Revenue Bonds,
AMT, Senior Series B, 5.25%, 7/01/39 (b)

 

 

2,504

 

 

2,358,472

 

               

Colorado—3.3%

 

 

 

 

 

 

 

               

Colorado Health Facilities Authority, Revenue Bonds
(Catholic Health), Series C-7, 5%, 9/01/36 (b)

 

 

3,749

 

 

3,699,150

 

               

Colorado Health Facilities Authority, Revenue Refunding
Bonds (Poudre Valley Health Care), Series B,
5.25%, 3/01/36 (b)

 

 

1,079

 

 

1,069,806

 

 

 

 

 

 

     

 

 

 

 

 

 

4,768,956

 

               

Massachusetts—1.0%

 

 

 

 

 

 

 

               

Massachusetts State Water Resource Authority, General
Revenue Refunding Bonds, Series A, 5%, 8/01/41

 

 

1,455

 

 

1,454,457

 

               

New York—0.7%

 

 

 

 

 

 

 

               

Port Authority of New York and New Jersey, Consolidated
Revenue Refunding Bonds, AMT, 152nd Series,
5.75%, 11/01/30

 

 

1,005

 

 

1,051,964

 

               

Ohio—3.6%

 

 

 

 

 

 

 

               

Montgomery County, Ohio, Revenue Bonds (Catholic Health
Initiatives), Series C-1, 5%, 10/01/41 (b)

 

 

1,259

 

 

1,231,398

 

               

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (o)

 

 

Par
(000)

 

 

Value

 

               

Ohio (concluded)

 

 

 

 

 

 

 

               

Ohio State Air Quality Development Authority, Revenue
Refunding Bonds (Dayton Power and Light Company Project),
Series B, 4.80%, 1/01/34 (i)(p)

 

$

3,999

 

$

3,884,920

 

 

 

 

 

 

     

 

 

 

 

 

 

5,116,318

 

               

Washington—0.6%

 

 

 

 

 

 

 

               

King County, Washington, Sewer Revenue Refunding Bonds,
5%, 1/01/36 (b)

 

 

900

 

 

904,458

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—10.9%

 

 

 

 

 

15,654,625

 

               

Total Long-Term Investments (Cost—$230,649,932)—159.5%

 

 

 

 

 

229,857,053

 

               

 

 

 

 

 

 

 

 


Short-Term Securities

 

Shares

 

 

 

 

               

Merrill Lynch Institutional Tax-Exempt Fund, 1.84% (q)(r)

 

 

1,900,427

 

 

1,900,427

 

               

Total Short-Term Securities (Cost—$1,900,427)—1.3%

 

 

 

 

 

1,900,427

 

               

Total Investments (Cost—$232,550,359*)—160.8%

 

 

 

 

 

231,757,480

 

Other Assets Less Liabilities—2.0%

 

 

 

 

 

2,893,526

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable—(6.9)%

 

 

 

 

 

(10,004,401

)

Preferred Shares, at Redemption Value—(55.9)%

 

 

 

 

 

(80,530,507

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

144,116,098

 

 

 

 

 

 

     

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

222,020,478

 

 

 

     

Gross unrealized appreciation

 

$

7,413,001

 

Gross unrealized depreciation

 

 

(7,641,453

)

 

 

     

Net unrealized depreciation

 

$

(228,452

)

 

 

     

 

 

(a)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b)

FSA Insured.

(c)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(d)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(e)

MBIA Insured.

(f)

All or a portion of the security has been pledged as collateral in connection with swaps.

(g)

ACA Insured.

(h)

XL Capital Insured.

(i)

FGIC Insured.

(j)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(k)

Assured Guaranty Insured.

(l)

Radian Insured.

(m)

AMBAC Insured.

(n)

Securities represent a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(o)

Securities represent bonds transferred to a tender option trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(p)

BHAC Insured.

(q)

Represents the current yield as of report date.

(r)

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


 

 

 

 

 

 

 

 

               

Affiliate

 

Net
Activity

 

Income

 

           

Merrill Lynch Institutional Tax-Exempt Fund

 

 

(5,699,573)

 

$

132,736

 

           

 

 

(s)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security.

 

 

 

Forward interest rate swaps outstanding as of August 31, 2008 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Notional
Amount
(000)

 

Unrealized
Depreciation

 

           

Pay a fixed rate of 3.6% and receive a floating rate based on 1-week SIFMA Municipal Swap Index Rate

 

 

 

 

 

 

 

Broker, JPMorgan Chase

 

 

 

 

 

 

 

Expires October 2018

 

$  30,000

 

$  (658,710)

 

               

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

28

ANNUAL REPORT

AUGUST 31, 2008

 



 

 

 


 

Schedule of Investments August 31, 2008

 

BlackRock Municipal Income Trust II (BLE)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Arizona—4.3%

 

 

 

 

 

 

 

               

Pima County, Arizona, IDA, Education Revenue Bonds
(American Charter Schools Foundation),
Series A, 5.625%, 7/01/38

 

$

2,525

 

$

2,232,252

 

               

Salt Verde Financial Corporation, Arizona, Senior Gas
Revenue Bonds:

 

 

 

 

 

 

 

5%, 12/01/32

 

 

5,635

 

 

4,773,127

 

5%, 12/01/37

 

 

7,890

 

 

6,544,518

 

 

 

 

 

 

     

 

 

 

 

 

 

13,549,897

 

               

California—9.9%

 

 

 

 

 

 

 

               

Agua Caliente Band of Cahuilla Indians, California, Casino
Revenue Bonds, 6%, 7/01/18

 

 

2,250

 

 

2,267,595

 

               

California County Tobacco Securitization Agency, Tobacco
Revenue Bonds (Stanislaus County Tobacco Funding
Corporation), Sub-Series C, 6.30%, 6/01/55 (a)

 

 

9,710

 

 

193,715

 

               

California Health Facilities Financing Authority Revenue Bonds
(Sutter Health), Series A, 5.25%, 11/15/46

 

 

3,000

 

 

2,909,850

 

               

California Mobile Home Park Finance Authority Revenue
Bonds (Palomar Estates East and West),
Series A, 5.25%, 3/15/34 (b)

 

 

3,500

 

 

3,040,135

 

               

California State, GO, Refunding:

 

 

 

 

 

 

 

5%, 6/01/32

 

 

5,000

 

 

4,944,800

 

5%, 6/01/34

 

 

2,700

 

 

2,654,856

 

               

California Statewide Communities Development Authority,
Health Facility Revenue Bonds (Memorial Health
Services), Series A, 5.50%, 10/01/33 (c)

 

 

5,000

 

 

4,974,800

 

               

San Francisco, California, City and County Redevelopment
Agency, Community Facilities District Number 1, Special
Tax Bonds (Mission Bay South Public Improvements
Project), 6.625%, 8/01/27

 

 

4,620

 

 

4,685,234

 

               

University of California Revenue Bonds, Series B,
4.75%, 5/15/38

 

 

5,755

 

 

5,576,480

 

 

 

 

 

 

     

 

 

 

 

 

 

31,247,465

 

               

Colorado—5.8%

 

 

 

 

 

 

 

               

Colorado Health Facilities Authority, Revenue Bonds (Catholic
Health Initiatives), Series A, 5.50%, 3/01/32 (d)

 

 

10,000

 

 

10,522,800

 

               

Colorado Health Facilities Authority, Revenue Refunding
Bonds (Poudre Valley Health Care), 5.20%, 3/01/31 (e)

 

 

790

 

 

792,797

 

               

Colorado Springs, Colorado, Utilities System Improvement
Revenue Bonds, Subordinate Lien,
Series C, 5%, 11/15/45 (e)

 

 

1,375

 

 

1,370,284

 

               

Northwest Parkway Public Highway Authority, Colorado,
Senior Revenue Bonds, Series A, 5.25%, 6/15/11 (e)(f)

 

 

4,000

 

 

4,335,600

 

               

Park Creek Metropolitan District, Colorado, Senior Limited
Tax Supported Revenue Refunding Bonds,
5.50%, 12/01/37

 

 

1,375

 

 

1,262,924

 

 

 

 

 

 

     

 

 

 

 

 

 

18,284,405

 

               

District of Columbia—6.2%

 

 

 

 

 

 

 

               

District of Columbia Tobacco Settlement Financing
Corporation, Asset-Backed Revenue Refunding Bonds:

 

 

 

 

 

 

 

6.50%, 5/15/33

 

 

7,500

 

 

7,118,325

 

6.75%, 5/15/40

 

 

11,500

 

 

11,409,265

 

               

District of Columbia, Revenue Refunding Bonds
(Friendship Public Charter School, Inc.),
5.25%, 6/01/33 (b)

 

 

1,265

 

 

1,052,607

 

 

 

 

 

 

     

 

 

 

 

 

 

19,580,197

 

               

Florida—15.3%

 

 

 

 

 

 

 

               

Leesburg, Florida, Hospital Revenue Bonds (Leesburg
Regional Medical Center Project), 5.50%, 7/01/32

 

 

2,650

 

 

2,529,690

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Florida (concluded)

 

 

 

 

 

 

 

               

Live Oak Community Development District Number 001,
Florida, Special Assessment Bonds, Series A, 6.30%,
5/01/34

 

$

3,125

 

$

3,145,344

 

               

Miami Beach, Florida, Health Facilities Authority, Hospital
Revenue Refunding Bonds (Mount Sinai Medical Center
of Florida), 6.75%, 11/15/21

 

 

6,230

 

 

6,342,701

 

               

Miami-Dade County, Florida, Aviation Revenue Refunding
Bonds (Miami International Airport), AMT, Series A, 5.25%,
10/01/38 (g)

 

 

2,855

 

 

2,686,612

 

               

Orange County, Florida, Health Facilities Authority, Hospital
Revenue Bonds (Adventist Health System),
5.625%, 11/15/12 (f)

 

 

6,850

 

 

7,654,875

 

               

Orange County, Florida, Tourist Development, Tax Revenue
Refunding Bonds, 4.75%, 10/01/32 (h)

 

 

3,990

 

 

3,776,216

 

               

Pinellas County, Florida, Health Facilities Authority
Revenue Bonds (BayCare Health System Inc.),
5.50%, 5/15/13 (f)

 

 

14,000

 

 

15,614,900

 

               

Stevens Plantation Community Development District,
Florida, Special Assessment Revenue Bonds,
Series A, 7.10%, 5/01/35

 

 

2,015

 

 

2,019,373

 

               

Sumter County, Florida, IDA, IDR (North Sumter Utility
Company LLC), AMT, 6.90%, 10/01/34

 

 

4,465

 

 

4,490,093

 

 

 

 

 

 

     

 

 

 

 

 

 

48,259,804

 

               

Georgia—3.3%

 

 

 

 

 

 

 

               

Main Street Natural Gas, Inc., Georgia, Gas Project
Revenue Bonds, Series A, 6.375%, 7/15/38

 

 

1,270

 

 

1,153,414

 

               

Milledgeville-Baldwin County, Georgia, Development
Authority Revenue Bonds (Georgia College and State
University Foundation), 5.625%, 9/01/14 (f)

 

 

5,000

 

 

5,715,550

 

               

Private Colleges and Universities Authority, Georgia,
Revenue Refunding Bonds (Emory University Project),
Series C, 5%, 9/01/38

 

 

3,575

 

 

3,611,465

 

 

 

 

 

 

     

 

 

 

 

 

 

10,480,429

 

               

Illinois—10.3%

 

 

 

 

 

 

 

               

Centerpoint Intermodal Center Program Trust, Illinois, Tax
Allocation Bonds, Class A, 8%, 6/15/23 (i)

 

 

2,470

 

 

2,268,152

 

               

Illinois Health Facilities Authority, Revenue Refunding
Bonds (Elmhurst Memorial Healthcare), 5.50%, 1/01/22

 

 

8,000

 

 

7,836,640

 

               

Illinois Municipal Electric Agency, Power Supply
Revenue Bonds, 4.50%, 2/01/35 (j)

 

 

4,340

 

 

3,849,189

 

               

Illinois Sports Facilities Authority, State Tax Supported
Revenue Bonds, 5.546%, 6/15/30 (k)(l)

 

 

15,000

 

 

13,955,550

 

               

Illinois State Finance Authority, Revenue Bonds, Series A:

 

 

 

 

 

 

 

(Friendship Village of Schaumburg), 5.625%, 2/15/37

 

 

910

 

 

717,954

 

(Monarch Landing, Inc. Project), 7%, 12/01/37

 

 

1,585

 

 

1,529,462

 

(Northwestern Memorial Hospital), 5.50%, 8/15/14 (f)

 

 

1,880

 

 

2,115,113

 

               

Illinois State Finance Authority, Student Housing Revenue
Bonds (MJH Education Assistance IV LLC),
Sub-Series B, 5.375%, 6/01/35

 

 

900

 

 

265,806

 

 

 

 

 

 

     

 

 

 

 

 

 

32,537,866

 

               

Indiana—5.2%

 

 

 

 

 

 

 

               

Indiana Health Facilities Financing Authority, Revenue
Refunding Bonds (Ascension Health Credit Group),
Series F, 5.375%, 11/15/25

 

 

5,000

 

 

5,447,050

 

               

Indianapolis, Indiana, Local Public Improvement Bond Bank
Revenue Bonds (Waterworks Project),
Series A, 5.25%, 7/01/12 (f)(m)

 

 

10,000

 

 

10,954,200

 

 

 

 

 

 

     

 

 

 

 

 

 

16,401,250

 

               

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

29



 

 

 


 

Schedule of Investments (continued)

 

BlackRock Municipal Income Trust II (BLE)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Kentucky—0.2%

 

 

 

 

 

 

 

               

Kentucky Economic Development Financing Authority,
Louisville Arena Project Revenue Bonds (Louisville
Arena Authority, Inc.), Sub-Series A-1, 6%, 12/01/33 (g)

 

$

445

 

$

453,504

 

               

Maryland—0.3%

 

 

 

 

 

 

 

               

Maryland State Health and Higher Educational Facilities
Authority Revenue Bonds (Union Hospital of Cecil County),
5.625%, 7/01/32

 

 

1,000

 

 

1,003,330

 

               

Michigan—0.7%

 

 

 

 

 

 

 

               

Michigan State Hospital Finance Authority, Revenue Refunding
Bonds (Henry Ford Health System),
Series A, 5.25%, 11/15/46

 

 

2,305

 

 

2,103,589

 

               

Missouri—2.0%

 

 

 

 

 

 

 

               

Highway 370/Missouri Bottom Road/Taussig Road
Transportation Development District Revenue Bonds,
7.20%, 5/01/33

 

 

6,000

 

 

6,159,360

 

               

Nevada—0.9%

 

 

 

 

 

 

 

               

Clark County, Nevada, EDR, Refunding (Alexander Dawson
School of Nevada Project), 5%, 5/15/29

 

 

2,855

 

 

2,775,831

 

               

New Jersey—12.1%

 

 

 

 

 

 

 

               

New Jersey EDA, Cigarette Tax Revenue Bonds:

 

 

 

 

 

 

 

5.50%, 6/15/31 (n)

 

 

9,000

 

 

8,737,560

 

5.75%, 6/15/34

 

 

4,000

 

 

3,712,720

 

               

New Jersey EDA, EDR (Kapkowski Road Landfill Reclamation
Improvement District Project), AMT,
Series B, 6.50%, 4/01/31

 

 

10,000

 

 

9,873,400

 

               

New Jersey EDA, EDR, Refunding (Kapkowski Road Landfill
Reclamation Improvement District Project),
6.50%, 4/01/28

 

 

7,475

 

 

7,548,928

 

               

New Jersey EDA, Special Facility Revenue Bonds (Continental
Airlines Inc. Project), AMT, 7.20%, 11/15/30

 

 

10,100

 

 

8,363,911

 

 

 

 

 

 

     

 

 

 

 

 

 

38,236,519

 

               

New Mexico—1.9%

 

 

 

 

 

 

 

               

New Mexico Region III Housing Authority, M/F Housing
Revenue Bonds (Villa Del Oso Apartments),
Series A, 6%, 1/01/13 (f)

 

 

5,200

 

 

5,962,736

 

               

New York—6.3%

 

 

 

 

 

 

 

               

Albany, New York, IDA, Civic Facility Revenue Bonds
(New Covenant Charter School Project),
Series A, 7%, 5/01/35

 

 

985

 

 

746,807

 

               

New York City, New York, City IDA, Special Facility Revenue
Bonds (Continental Airlines Inc. Project), AMT,
7.75%, 8/01/31

 

 

6,700

 

 

5,980,889

 

               

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Refunding Bonds,
Series S-1, 4.50%, 1/15/38

 

 

1,100

 

 

1,023,715

 

               

New York Liberty Development Corporation Revenue Bonds
(Goldman Sachs Headquarters), 5.25%, 10/01/35

 

 

1,225

 

 

1,235,572

 

               

New York State Dormitory Authority, Non-State Supported
Debt Revenue Bonds (Columbia University), 5%, 7/01/38

 

 

5,000

 

 

5,108,850

 

               

Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds (Continental Airlines, Inc.—
LaGuardia Project), AMT, 9%, 12/01/10

 

 

5,725

 

 

5,722,996

 

 

 

 

 

 

     

 

 

 

 

 

 

19,818,829

 

               

North Carolina—3.8%

 

 

 

 

 

 

 

               

Gaston County, North Carolina, Industrial Facilities and
Pollution Control Financing Authority, Revenue Bonds
(National Gypsum Company Project), AMT,
5.75%, 8/01/35

 

 

7,500

 

 

5,841,600

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

North Carolina (concluded)

 

 

 

 

 

 

 

               

North Carolina State Educational Assistance Authority,
Revenue Refunding Bonds (Guaranteed Student Loan),
VRDN, AMT, Series A-1, 10%, 9/01/35 (k)(o)(u)

 

$

6,025

 

$

6,025,000

 

 

 

 

 

 

     

 

 

 

 

 

 

11,866,600

 

               

Ohio—1.3%

 

 

 

 

 

 

 

               

American Municipal Power, Inc., Ohio, Revenue Refunding
Bonds (Prairie State Energy Campus Project),
Series A, 5%, 2/15/38

 

 

2,985

 

 

2,895,420

 

               

Buckeye Tobacco Settlement Financing Authority, Ohio,
Tobacco Settlement Asset-Backed Bonds,
Series A-2, 6.50%, 6/01/47

 

 

1,190

 

 

1,058,391

 

 

 

 

 

 

     

 

 

 

 

 

 

3,953,811

 

               

Oklahoma—1.6%

 

 

 

 

 

 

 

               

Oklahoma State Development Finance Authority, Revenue
Refunding Bonds (Saint John Health System),
5%, 2/15/42

 

 

1,520

 

 

1,399,935

 

               

Tulsa, Oklahoma, Municipal Airport Trust, Revenue
Refunding Bonds, Series A, 7.75%, 6/01/35

 

 

3,925

 

 

3,711,166

 

 

 

 

 

 

     

 

 

 

 

 

 

5,111,101

 

               

Pennsylvania—6.1%

 

 

 

 

 

 

 

               

Monroe County, Pennsylvania, Hospital Authority Revenue
Bonds (Pocono Medical Center), 6%, 1/01/14 (f)

 

 

5,000

 

 

5,702,900

 

               

Pennsylvania Economic Development Financing Authority,
Exempt Facilities Revenue Bonds, AMT, Series A:

 

 

 

 

 

 

 

(Amtrak Project), 6.375%, 11/01/41

 

 

5,175

 

 

5,118,075

 

(Reliant Energy), 6.75%, 12/01/36

 

 

8,425

 

 

8,439,660

 

 

 

 

 

 

     

 

 

 

 

 

 

19,260,635

 

               

South Carolina—5.9%

 

 

 

 

 

 

 

               

Greenwood County, South Carolina, Hospital Facilities Revenue
Bonds (Self Memorial Hospital):

 

 

 

 

 

 

 

5.50%, 10/01/26

 

 

3,280

 

 

3,292,267

 

5.50%, 10/01/31

 

 

3,250

 

 

3,217,565

 

               

South Carolina Jobs EDA, Hospital Facilities Revenue
Bonds (Georgetown Memorial Hospital),
5.375%, 2/01/30 (n)

 

 

3,750

 

 

3,490,613

 

               

South Carolina Jobs EDA, Hospital Facilities Revenue
Refunding Bonds (Palmetto Health Alliance):

 

 

 

 

 

 

 

Series A, 6.25%, 8/01/31

 

 

2,640

 

 

2,672,552

 

Series C, 6.875%, 8/01/13 (f)

 

 

5,000

 

 

5,880,900

 

 

 

 

 

 

     

 

 

 

 

 

 

18,553,897

 

               

Tennessee—3.3%

 

 

 

 

 

 

 

               

Knox County, Tennessee, Health, Educational and Housing
Facilities Board, Hospital Facilities Revenue Refunding
Bonds (Covenant Health), Series A, 5.77%, 1/01/21 (a)(e)

 

 

20,405

 

 

10,430,425

 

               

Texas—23.2%

 

 

 

 

 

 

 

               

Brazos River Authority, Texas, PCR, Refunding (TXU Energy
Company LLC Project), AMT, Series A, 8.25%, 10/01/30

 

 

2,400

 

 

2,405,952

 

               

Dallas-Fort Worth, Texas, International Airport, Joint Revenue
Bonds, AMT, Series B, 6%, 11/01/23 (c)(m)

 

 

2,000

 

 

2,009,440

 

               

Gulf Coast Waste Disposal Authority, Texas, Revenue
Refunding Bonds (International Paper Company), AMT,
Series A, 6.10%, 8/01/24

 

 

20,000

 

 

18,649,800

 

               

Harris County-Houston Sports Authority, Texas, Revenue
Refunding Bonds, Third Lien, Series A-3,
5.96%, 11/15/36 (a)(m)

 

 

25,375

 

 

4,256,149

 

               

Lower Colorado River Authority, Texas, Revenue Refunding
Bonds (m):

 

 

 

 

 

 

 

5%, 5/15/13 (f)

 

 

30

 

 

32,860

 

5%, 5/15/31

 

 

1,270

 

 

1,269,898

 

Series A, 5%, 5/15/13 (f)

 

 

5

 

 

5,477

 

               

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

30

ANNUAL REPORT

AUGUST 31, 2008

 



 

 

 


 

Schedule of Investments (continued)

 

BlackRock Municipal Income Trust II (BLE)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Texas (concluded)

 

 

 

 

 

 

 

               

Montgomery County, Texas, Municipal Utility District
Number 46, Waterworks and Sewer System, GO,
4.75%, 3/01/30 (m)

 

$

930

 

$

903,151

 

               

North Texas Tollway Authority, System Revenue Refunding
Bonds, Second Tier, Series F, 6.125%, 1/01/31

 

 

6,790

 

 

6,875,281

 

               

San Antonio Energy Acquisition Public Facilities Corporation,
Texas, Gas Supply Revenue Bonds, 5.50%, 8/01/24

 

 

3,600

 

 

3,445,272

 

               

Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds (k):

 

 

 

 

 

 

 

6.09%, 8/15/36 (a)

 

 

73,370

 

 

13,342,335

 

6.10%, 8/15/37 (a)

 

 

65,000

 

 

11,090,300

 

6.10%, 8/15/38 (a)

 

 

27,600

 

 

4,417,380

 

First Tier, Series A, 5%, 8/15/42

 

 

4,575

 

 

4,424,757

 

 

 

 

 

 

     

 

 

 

 

 

 

73,128,052

 

               

Virginia—2.8%

 

 

 

 

 

 

 

               

Halifax County, Virginia, IDA, Exempt Facility Revenue
Refunding Bonds (Old Dominion Electric Cooperative
Project), AMT, 5.625%, 6/01/28 (k)

 

 

9,000

 

 

8,867,250

 

               

Washington—1.4%

 

 

 

 

 

 

 

               

Washington State Health Care Facilities Authority, Revenue
Refunding Bonds (Providence Health System),
Series A, 4.625%, 10/01/34 (j)

 

 

4,820

 

 

4,364,606

 

               

West Virginia—0.4%

 

 

 

 

 

 

 

               

West Virginia EDA, Lease Revenue Bonds (Correctional,
Juvenile and Public Safety Facilities),
Series A, 5%, 6/01/29 (m)

 

 

1,115

 

 

1,116,015

 

               

Wisconsin—3.0%

 

 

 

 

 

 

 

               

Wisconsin State Health and Educational Facilities Authority,
Revenue Bonds (Aurora Health Care, Inc.),
6.40%, 4/15/33

 

 

3,930

 

 

4,007,107

 

               

Wisconsin State Health and Educational Facilities Authority,
Revenue Refunding Bonds (Wheaton Franciscan
Services, Inc.), 5.75%, 2/15/12 (c)(f)

 

 

5,000

 

 

5,552,350

 

 

 

 

 

 

     

 

 

 

 

 

 

9,559,457

 

               

Wyoming—0.5%

 

 

 

 

 

 

 

               

Wyoming Municipal Power Agency, Power Supply Revenue
Bonds, Series A:

 

 

 

 

 

 

 

5.50%, 1/01/33

 

 

800

 

 

801,672

 

5.50%, 1/01/38

 

 

750

 

 

746,693

 

 

 

 

 

 

     

 

 

 

 

 

 

1,548,365

 

               

Multi State—4.2%

 

 

 

 

 

 

 

               

Charter Mac Equity Issuer Trust (i)(p):

 

 

 

 

 

 

 

5.75%, 4/30/15

 

 

1,000

 

 

1,055,800

 

6%, 4/30/15

 

 

5,000

 

 

5,327,950

 

6%, 4/30/19

 

 

3,500

 

 

3,702,440

 

6.30%, 4/30/19

 

 

3,000

 

 

3,226,170

 

 

 

 

 

 

     

 

 

 

 

 

 

13,312,360

 

               

Puerto Rico—1.5%

 

 

 

 

 

 

 

               

Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds,
Series N, 5.25%, 7/01/36 (g)

 

 

4,370

 

 

4,512,899

 

               

Total Municipal Bonds—143.7%

 

 

 

 

 

452,440,484

 

               

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (q)

 

Par
(000)

 

Value

 

           

Alabama—0.8%

 

 

 

 

 

 

 

               

Birmingham, Alabama, Special Care Facilities Financing
Authority, Revenue Refunding Bonds (Ascension Health
Credit), Series C-2, 5%, 11/15/36

 

$

2,519

 

$

2,415,748

 

               

California—1.1%

 

 

 

 

 

 

 

               

Sacramento County, California, Airport System Revenue
Bonds, AMT, Senior Series B, 5.25%, 7/01/39 (e)

 

 

3,479

 

 

3,276,441

 

               

Colorado—3.5%

 

 

 

 

 

 

 

               

Colorado Health Facilities Authority, Revenue Bonds
(Catholic Health) (e):

 

 

 

 

 

 

 

5%, 9/01/36

 

 

2,714

 

 

2,678,185

 

5.10%, 10/01/41

 

 

4,229

 

 

4,202,484

 

               

Colorado Health Facilities Authority, Revenue Refunding Bonds
(Poudre Valley Health Care) (e):

 

 

 

 

 

 

 

Series B, 5.25%, 3/01/36

 

 

1,574

 

 

1,560,133

 

Series C, 5.25%, 3/01/40

 

 

2,744

 

 

2,704,891

 

 

 

 

 

 

     

 

 

 

 

 

 

11,145,693

 

               

Connecticut—3.3%

 

 

 

 

 

 

 

               

Connecticut State Health and Educational Facilities Authority
Revenue Bonds (Yale University):

 

 

 

 

 

 

 

Series T-1, 4.70%, 7/01/29

 

 

5,174

 

 

5,223,955

 

Series X-3, 4.85%, 7/01/37

 

 

5,129

 

 

5,169,236

 

 

 

 

 

 

     

 

 

 

 

 

 

10,393,191

 

               

Illinois—1.3%

 

 

 

 

 

 

 

               

Chicago, Illinois, O’Hare International Airport Revenue
Refunding Bonds, Third Lien, AMT,
Series C-2, 5.25%, 1/01/30 (e)

 

 

4,289

 

 

4,112,937

 

               

Massachusetts—1.0%

 

 

 

 

 

 

 

               

Massachusetts State Water Resource Authority, General
Revenue Refunding Bonds, Series A, 5%, 8/01/41

 

 

3,149

 

 

3,148,824

 

               

New York—0.9%

 

 

 

 

 

 

 

               

New York State Environmental Facilities Corporation,
State Clean Water and Drinking Revenue Bonds
(New York City Water Project), Series B, 5%, 6/15/31

 

 

2,850

 

 

2,880,181

 

               

Ohio—2.8%

 

 

 

 

 

 

 

               

Ohio State Air Quality Development Authority, Revenue
Refunding Bonds (Dayton Power and Light Company
Project), Series B, 4.80%, 1/01/34 (j)(r)

 

 

9,139

 

 

8,877,042

 

               

Virginia—3.1%

 

 

 

 

 

 

 

               

University of Virginia, Revenue Refunding Bonds,
5%, 6/01/40

 

 

5,895

 

 

6,031,705

 

               

Virginia State, HDA, Commonwealth Mortgage Revenue
Bonds, Series H, Sub-Series H-1, 5.35%, 7/01/31 (l)

 

 

3,750

 

 

3,755,363

 

 

 

 

 

 

     

 

 

 

 

 

 

9,787,068

 

               

Washington—1.6%

 

 

 

 

 

 

 

               

Central Puget Sound Regional Transportation Authority,
Washington, Sales and Use Tax Revenue Bonds,
Series A, 5%, 11/01/32 (e)

 

 

3,040

 

 

3,093,504

 

               

King County, Washington, Sewer Revenue Refunding Bonds,
5%, 1/01/36 (e)

 

 

1,964

 

 

1,974,733

 

 

 

 

 

 

     

 

 

 

 

 

 

5,068,237

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—19.4%

 

 

 

 

 

61,105,362

 

               

Total Long-Term Investments (Cost—$518,567,489)—163.1%

 

 

 

 

 

513,545,846

 

               

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

31



 

 

 


 

Schedule of Investments (concluded)

 

BlackRock Municipal Income Trust II (BLE)


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 

               

Merrill Lynch Institutional Tax-Exempt Fund, 1.84% (s)(t)

 

 

2,701,021

 

$

2,701,021

 

               

Total Short-Term Securities (Cost—$2,701,021)—0.8%

 

 

 

 

 

2,701,021

 

               

Total Investments (Cost—$521,268,510*)—163.9%

 

 

 

 

 

516,246,867

 

Other Assets Less Liabilities—1.4%

 

 

 

 

 

4,319,714

 

Liability for Trust Certificates, Including Interest

 

 

 

 

 

 

 

Expense and Fees Payable—(12.6)%

 

 

 

 

 

(39,559,604

)

Preferred Shares, at Redemption Value—(52.7)%

 

 

 

 

 

(166,118,018

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

314,888,959

 

 

 

 

 

 

     

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

481,299,167

 

 

 

 

 

 

 

     

 

Gross unrealized appreciation

 

 

 

 

$

13,120,271

 

 

Gross unrealized depreciation

 

 

 

 

 

(17,571,095

)

 

 

 

 

 

 

     

 

Net unrealized depreciation

 

 

 

 

$

(4,450,824

)

 

 

 

 

 

 

     

 

 

(a)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(b)

ACA Insured.

(c)

All or a portion of the security has been pledged as collateral in connection with swaps.

(d)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(e)

FSA Insured.

(f)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(g)

Assured Guaranty Insured.

(h)

XL Capital Insured.

(i)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(j)

FGIC Insured.

(k)

AMBAC Insured.

(l)

Represents a step bond. Rate shown reflects the effective yield at the time of purchase.

(m)

MBIA Insured.

(n)

Radian Insured.

(o)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(p)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(q)

Securities represent bonds transferred to a tender option trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(r)

BHAC Insured.

(s)

Represents the current yield as of report date.

(t)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 

 

 

           

 

Affiliate

 

Net
Activity

 

Income

 

 

           

 

Merrill Lynch Institutional Tax-Exempt Fund

 

 

(498,979)

 

$

329,501

 

 

               


(u)


Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security.

 

               

 

 

 

 

 

 

 

 

 

 

               

Forward interest rate swaps outstanding as of August 31, 2008 were as follows:

 

 

 

 

 

 

 

 

               

 

 

 

Notional
Amount
(000)

 

Unrealized
Depreciation

 

 

           

 

Pay a fixed rate of 3.639% and receive a floating rate
based on 1-week SIFMA Municipal Swap Index Rate

 

 

 

 

 

 

 

 

Broker, JPMorgan Chase

 

 

 

 

 

 

 

 

Expires September 2018

 

$

26,565

 

$

(725,862

)

 

Pay a fixed rate of 3.919% and receive a floating rate
based on 1-week SIFMA Municipal Swap Index Rate

 

 

 

 

 

 

 

 

Broker, Citibank NA

 

 

 

 

 

 

 

 

Expires September 2028

 

$

25,670

 

 

(929,228

)

 

               

 

Total

 

 

 

 

$

(1,655,090

)

 

 

 

 

 

 

     

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

32

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Schedule of Investments August 31, 2008

BlackRock California Insured Municipal Income Trust (BCK)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California—135.8%

 

 

 

 

 

 

 

Benicia, California, Unified School District, GO,
Series B, 5.45%, 8/01/23 (a)(b)

 

$

6,500

 

$

2,999,620

 

               

California Educational Facilities Authority Revenue Bonds
(Scripps College), 5%, 8/01/31 (a)

 

 

2,385

 

 

2,571,341

 

               

California State Department of Water Resources, Power
Supply Revenue Bonds, Series A, 5.25%, 5/01/12 (c)

 

 

6,500

 

 

7,199,530

 

               

California State Public Works Board, Lease Revenue
Bonds (Department of General Services—Capitol East
End Complex), Series A, 5%, 12/01/27 (d)

 

 

5,000

 

 

5,011,000

 

               

California State University, Systemwide Revenue Refunding
Bonds, Series A, 5%, 11/01/30 (d)

 

 

4,000

 

 

4,020,000

 

               

California Statewide Communities Development Authority
Revenue Bonds:

 

 

 

 

 

 

 

(Adventist), Series B, 5%, 3/01/37 (e)

 

 

1,000

 

 

985,060

 

(Sutter Health), Series D, 5.05%, 8/15/38 (f)

 

 

5,000

 

 

4,969,300

 

               

Ceres, California, Unified School District, GO (Election of
2001), Series B (b)(g):

 

 

 

 

 

 

 

5.907%, 8/01/30

 

 

3,055

 

 

863,801

 

5.915%, 8/01/31

 

 

3,180

 

 

847,438

 

5.919%, 8/01/32

 

 

3,300

 

 

827,573

 

5.924%, 8/01/33

 

 

3,440

 

 

812,150

 

5.894%, 8/01/34

 

 

3,575

 

 

803,410

 

5.896%, 8/01/35

 

 

3,275

 

 

693,481

 

               

Glendale, California, Community College District, GO
(Election of 2002), Series D, 5%, 11/01/31 (a)

 

 

2,500

 

 

2,496,424

 

               

Hemet, California, Unified School District, GO, Series B,
5.125%, 8/01/37 (e)

 

 

2,140

 

 

2,170,666

 

               

Kaweah Delta Health Care District, California, Revenue
Refunding Bonds, 6%, 8/01/12 (c)

 

 

2,600

 

 

2,979,600

 

               

Los Angeles, California, Department of Water and Power,
Waterworks Revenue Bonds, Series A (g):

 

 

 

 

 

 

 

5%, 7/01/43

 

 

3,550

 

 

3,478,574

 

5.125%, 7/01/41

 

 

5,000

 

 

5,005,550

 

               

Los Angeles, California, Wastewater System Revenue
Refunding Bonds:

 

 

 

 

 

 

 

Series A, 5%, 6/01/32 (g)

 

 

6,025

 

 

6,042,954

 

Sub-Series A, 5%, 6/01/27 (a)

 

 

5,000

 

 

5,029,050

 

               

Los Angeles County, California, Metropolitan Transportation
Authority, Sales Tax Revenue Refunding Bonds,
Proposition C, VRDN, Second Senior Series A,
7.50%, 7/01/20 (a)(h)(m)

 

 

2,000

 

 

2,000,000

 

               

Morongo, California, Unified School District, GO (Election of
2005), Series A, 5.25%, 8/01/38 (e)

 

 

2,775

 

 

2,832,554

 

               

Murrieta Valley, California, Unified School District, Public
Financing Authority, Special Tax Revenue Bonds,
Series A, 5.125%, 9/01/26 (e)

 

 

1,000

 

 

1,004,230

 

               

Napa, California, Water Revenue Bonds, 5%, 5/01/35 (d)

 

 

3,000

 

 

2,969,250

 

               

Palomar Pomerado Health Care District, California, GO
(Election of 2004), Series A, 5.125%, 8/01/37 (a)

 

 

1,850

 

 

1,873,051

 

               

Riverside, California, Unified School District, GO (Election
of 2001), Series A, 5%, 2/01/27 (g)

 

 

5,000

 

 

4,993,850

 

               

Sacramento, California, Area Flood Control Agency, Special
Assessment Refunding Bonds (Consolidated Capital
Assessment District), Series A, 5%, 10/01/32 (g)

 

 

2,125

 

 

2,110,189

 

               

San Joaquin Hills, California, Transportation Corridor Agency,
Toll Road Revenue Refunding Bonds,
Series A, 5.45%, 1/15/31 (a)(b)

 

 

20,000

 

 

5,167,600

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

San Jose, California, Financing Authority, Lease Revenue
Refunding Bonds (Civic Center Project),
Series B, 5%, 6/01/37 (d)

 

$

6,000

 

$

5,963,280

 

               

Santa Rosa, California, Wastewater Revenue Refunding
Bonds, Series B, 5.46%, 9/01/27 (b)(d)

 

 

11,125

 

 

4,048,500

 

               

Stockton, California, Unified School District, GO
(Election of 2005), 5%, 8/01/31 (f)

 

 

3,000

 

 

3,040,830

 

               

Tustin, California, Unified School District, Senior Lien
Special Tax Bonds (Community Facilities District
Number 97-1), Series A, 5%, 9/01/38 (f)

 

 

3,000

 

 

2,990,730

 

               

West Contra Costa, California, Unified School District,
GO (Election of 2005), Series B, 5.625%, 8/01/35 (i)

 

 

2,000

 

 

2,112,780

 

               

Total Municipal Bonds—135.8%

 

 

 

 

 

100,913,366

 

               

 

 

 

 

 

 

 

 


 

Municipal Bonds Transferred to
Tender Option Bond Trusts (j)

 

 

 

 

 

 

 

California—17.3%

 

 

 

 

 

 

 

Alameda County, California, Joint Powers Authority,
Lease Revenue Refunding Bonds, 5%, 12/01/34 (f)

 

 

1,200

 

 

1,201,056

 

               

Desert, California, Community College District, GO,
Series C, 5%, 8/01/37 (f)

 

 

1,994

 

 

2,008,580

 

               

San Diego County, California, Water Authority, Water Revenue
Refunding Bonds, COP, Series A:

 

 

 

 

 

 

 

5%, 5/01/32 (a)

 

 

5,298

 

 

5,326,288

 

5%, 5/01/33 (f)

 

 

4,245

 

 

4,299,973

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—17.3%

 

 

 

 

 

12,835,897

 

               

Total Long-Term Investments (Cost—$113,204,392)—153.1%

 

 

 

 

 

113,749,263

 

               

 

 

 

 

 

 

 

 


Short-Term Securities

 

Shares

 

 

 

 

               

CMA California Municipal Money Fund, 1.35% (k)(l)

 

 

6,272,867

 

 

6,272,867

 

               

Total Short-Term Securities (Cost—$6,272,867)—8.4%

 

 

 

 

 

6,272,867

 

               

Total Investments (Cost—$119,477,259*)—161.5%

 

 

 

 

 

120,022,130

 

Other Assets Less Liabilities—1.1%

 

 

 

 

 

828,771

 

Liability for Trust Certificates, Including Interest

 

 

 

 

 

 

 

Expense and Fees Payable—(12.1)%

 

 

 

 

 

(8,976,241

)

Preferred Shares, at Redemption Value—(50.5)%

 

 

 

 

 

(37,571,859

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

74,302,801

 

 

 

 

 

 

     

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

33



 

 


 

Schedule of Investments (concluded)

BlackRock California Insured Municipal Income Trust (BCK)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

110,624,863

 

 

 

     

Gross unrealized appreciation

 

$

1,710,817

 

Gross unrealized depreciation

 

 

(1,246,071

)

 

 

     

Net unrealized appreciation

 

$

464,746

 

 

 

     

 

 

(a)

MBIA Insured.

(b)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(c)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(d)

AMBAC Insured.

(e)

Assured Guaranty Insured.

(f)

FSA Insured.

(g)

FGIC Insured.

(h)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(i)

BHAC Insured.

(j)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(k)

Represents the current yield as of report date.

(l)

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

 

 

 

 

 

 

 

 

 

 

               

Affiliate

 

Net
Activity

 

Income

 

               

CMA California Municipal Money Fund

 

4,829,409

 

$

130,153

 

               

 

 

(m)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security.


See Notes to Financial Statements.

 

 

 

 

 

 

 

 

34

ANNUAL REPORT

AUGUST 31, 2008

 



 

 

 


 

Schedule of Investments August 31, 2008

 

BlackRock California Municipal Bond Trust (BZA)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

California—141.6%

               

AIG SunAmerica, Inc., M/F Housing Revenue Bonds
(San Lucas Apartments), Pass-Through Certificates of
Beneficial Ownership, AMT, Series 5, 5.95%, 11/01/34

 

$

2,135

 

$

2,055,962

 

               

AIG SunAmerica, Inc., Santa Maria, California, M/F Housing
Revenue Bonds (Westgate Courtyards Apartments),
Pass-Through Certificates of Beneficial Ownership, AMT,
Series 3, 5.80%, 11/01/34

 

 

2,300

 

 

2,299,770

 

               

California Educational Facilities Authority Revenue Bonds
(University of San Diego), Series A, 5.25%, 10/01/30

 

 

4,000

 

 

4,045,200

 

               

California Health Facilities Financing Authority Revenue Bonds
(Valleycare Medical Center), Series A,
5.375%, 5/01/12 (a)

 

 

3,270

 

 

3,595,365

 

               

California Infrastructure and Economic Development Bank
Revenue Bonds (J. David Gladstone Institute Project),
5.25%, 10/01/34

 

 

3,750

 

 

3,751,162

 

               

California Pollution Control Financing Authority, Solid Waste
Disposal Revenue Bonds (Waste Management Inc.
Project), AMT:

 

 

 

 

 

 

 

Series A-2, 5.40%, 4/01/25

 

 

530

 

 

466,421

 

Series C, 5.125%, 11/01/23

 

 

1,000

 

 

860,290

 

               

California Pollution Control Financing Authority, Solid Waste
Disposal Revenue Refunding Bonds (Republic Services Inc.
Project), AMT, Series C, 5.25%, 6/01/23

 

 

500

 

 

463,220

 

               

California Statewide Communities Development Authority
Revenue Bonds:

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,231,525

 

(Daughters of Charity National Health System),

 

 

 

 

 

 

 

Series A, 5.25%, 7/01/30

 

 

1,500

 

 

1,375,875

 

(Kaiser Permanente), Series A, 5.50%, 11/01/32

 

 

5,000

 

 

5,031,400

 

(Sutter Health), Series B, 5.625%, 8/15/42

 

 

3,250

 

 

3,280,290

 

               

Chino Basin, California, Desalter Authority, Revenue Refunding
Bonds, Series A, 5%, 6/01/35 (b)

 

 

2,000

 

 

1,988,160

 

               

Chino Basin, California, Regional Financing Authority, Revenue
Refunding Bonds (Inland Empire Utility Agency),
Series A, 5%, 11/01/33 (c)

 

 

1,000

 

 

978,900

 

               

Chula Vista, California, IDR (San Diego Gas and Electric
Company), AMT, Series B, 5%, 12/01/27

 

 

1,175

 

 

1,093,784

 

               

Eastern Municipal Water District, California, Water and
Sewer, COP, Series H, 5%, 7/01/33

 

 

1,545

 

 

1,534,031

 

               

Foothill/Eastern Corridor Agency, California, Toll Road Revenue
Refunding Bonds, 5.75%, 1/15/40

 

 

3,845

 

 

3,714,808

 

               

Golden State Tobacco Securitization Corporation of California,
Tobacco Settlement Revenue Bonds (a):

 

 

 

 

 

 

 

Series A-1, 6.625%, 6/01/13

 

 

2,000

 

 

2,300,780

 

Series B, 5.50%, 6/01/13

 

 

2,500

 

 

2,752,825

 

Series B, 5.625%, 6/01/13

 

 

1,300

 

 

1,438,580

 

               

Kaweah Delta Health Care District, California, Revenue
Refunding Bonds, 6%, 8/01/12 (a)

 

 

1,745

 

 

1,999,770

 

               

Lathrop, California, Financing Authority Revenue Bonds
(Water Supply Project):

 

 

 

 

 

 

 

5.90%, 6/01/27

 

 

655

 

 

641,127

 

6%, 6/01/35

 

 

1,180

 

 

1,175,197

 

               

Live Oak Unified School District, California, GO (Election of
2004), Series B (d)(e):

 

 

 

 

 

 

 

5.57%, 8/01/18 (a)

 

 

905

 

 

269,998

 

5.58%, 8/01/18 (a)

 

 

945

 

 

266,443

 

5.53%, 8/01/29

 

 

705

 

 

228,413

 

5.38%, 8/01/30

 

 

795

 

 

238,913

 

5.55%, 8/01/31

 

 

830

 

 

232,466

 

5.56%, 8/01/32

 

 

865

 

 

227,010

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

California (concluded)

               

Los Angeles, California, Regional Airports Improvement
Corporation, Lease Revenue Bonds (American Airlines
Inc.), AMT, Series B, 7.50%, 12/01/24

 

$

1,000

 

$

884,580

 

               

Los Angeles County, California, Metropolitan Transportation
Authority, Sales Tax Revenue Refunding Bonds,
Proposition C, VRDN, Second Senior Series A,
7.50%, 7/01/20 (f)(g)(n)

 

 

1,000

 

 

1,000,000

 

               

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

 

 

750

 

 

763,050

 

               

Orange County, California, Community Facilities District,
Special Tax Bonds (Number 01-1 Ladera Ranch),
Series A, 6%, 8/15/10 (a)

 

 

2,400

 

 

2,608,032

 

               

Palm Springs, California, Mobile Home Park Revenue Bonds
(Sahara Mobile Home Park), Series A, 5.75%, 5/15/37

 

 

3,000

 

 

2,858,220

 

               

Pasadena, California, COP, Refunding, Series C, 5%, 2/01/33

 

 

1,200

 

 

1,200,840

 

               

San Francisco, California, City and County Redevelopment
Agency, Community Facilities District Number 1, Special
Tax Bonds (Mission Bay South Public Improvements
Project), 6.25%, 8/01/33

 

 

2,500

 

 

2,496,700

 

               

Santa Ana, California, Unified School District, COP
(Financing Program), 5.75%, 4/01/29 (e)(h)

 

 

15,000

 

 

5,155,500

 

               

Stockton, California, Unified School District, GO (Election
of 2005), 5%, 8/01/31 (h)

 

 

2,000

 

 

2,027,220

 

               

Torrance, California, Hospital Revenue Refunding Bonds
(Torrance Memorial Medical Center),
Series A, 5.50%, 6/01/31

 

 

1,500

 

 

1,501,171

 

               

Val Verde, California, Unified School District, GO
(Election of 2008), Series A, 5.50%, 8/01/33

 

 

1,615

 

 

1,638,353

 

 

 

 

 

 

     

 

 

 

 

 

 

71,671,351

 

           

Multi State—7.8%

               

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (i)(j)

 

 

3,500

 

 

3,958,570

 

               

Total Municipal Bonds—149.4%

 

 

 

 

 

75,629,921

 

               

 

 

 

 

 

 

 

 









Municipal Bonds Transferred to
Tender Option Bond Trusts (k)

 

 

 

 

 

 

 

               

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

 

 

2,999

 

 

3,048,827

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—6.0%

 

 

 

 

 

3,048,827

 

               

Total Long Term Investments (Cost—$76,086,412)—155.3%

 

 

 

 

 

78,678,748

 

               

 

 

 

 

 

 

 

 









Short-Term Securities

 

Shares

 

 

 

 

             

CMA California Municipal Money Fund, 1.35% (l)(m)

 

 

2,134,105

 

 

2,134,105

 

               

Total Short-Term Securities (Cost—$2,134,105)—4.2%

 

 

 

 

 

2,134,105

 

               

Total Investments (Cost—$78,220,517*)—159.6%

 

 

 

 

 

80,812,853

 

Liabilities In Excess of Other Assets—(0.3)%

 

 

 

 

 

(163,541

)

Liability for Trust Certificates, Including Interest
Expense and Fees Payable (4.0)%

 

 

 

 

 

(2,008,328

)

Preferred Shares, at Redemption Value—(55.3)%

 

 

 

 

 

(27,991,285

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

50,649,699

 

 

 

 

 

 

     

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

35



 

 

 


 

Schedule of Investments (concluded)

 

BlackRock California Municipal Bond Trust (BZA)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

76,049,448

 

 

 

     

Gross unrealized appreciation

 

$

3,798,876

 

Gross unrealized depreciation

 

 

(1,034,318

)

 

 

     

Net unrealized appreciation

 

$

2,764,558

 

 

 

     

 

 

(a)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b)

Assured Guaranty Insured.

(c)

AMBAC Insured.

(d)

XL Capital Insured.

(e)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(f)

MBIA Insured.

(g)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(h)

FSA Insured.

(i)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(j)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(k)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option trusts.

(l)

Represents the current yield as of report date.

(m)

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


 

 

 

 

 

 

 

             

Affiliate

 

Net
Activity

 

 

Income

 

             

CMA California Municipal Money Fund

 

1,798,571

 

$

100,676

 

             

 

 

(n)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

36

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


Schedule of Investments August 31, 2008

BlackRock California Municipal Income Trust II (BCL)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California—143.0%

 

 

 

 

 

 

 

Alameda County, California, Joint Powers Authority, Lease
Revenue Refunding Bonds, 5%, 12/01/34 (a)

 

$

3,500

 

$

3,503,080

 

               

California HFA, Home Mortgage Revenue Bonds, VRDN,
AMT, Series P, 7%, 2/01/27 (b)(c)(n)

 

 

10,000

 

 

10,000,000

 

               

California Infrastructure and Economic Development Bank
Revenue Bonds (Kaiser Hospital Assistance I-LLC),
Series A, 5.55%, 8/01/31

 

 

1,735

 

 

1,744,404

 

               

California Pollution Control Financing Authority, Solid Waste
Disposal Revenue Bonds (Waste Management Inc.
Project), AMT:

 

 

 

 

 

 

 

Series A-2, 5.40%, 4/01/25

 

 

1,180

 

 

1,038,447

 

Series C, 5.125%, 11/01/23

 

 

3,000

 

 

2,580,870

 

               

California State, Various Purpose, GO, 5.50%, 11/01/33

 

 

8,000

 

 

8,150,560

 

               

California Statewide Communities Development Authority,
Health Facility Revenue Bonds (Memorial Health
Services), Series A, 5.50%, 10/01/33

 

 

7,000

 

 

6,964,720

 

               

California Statewide Communities Development Authority,
Revenue Bonds:

 

 

 

 

 

 

 

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

 

 

1,250

 

 

1,231,525

 

(Kaiser Permanente), Series A, 5.50%, 11/01/32

 

 

5,000

 

 

5,031,400

 

(Sutter Health), Series B, 5.50%, 8/15/34

 

 

8,000

 

 

8,044,960

 

               

Chabot-Las Positas, California, Community College District,
GO (Election of 2004), Series B, 5%, 8/01/31 (d)

 

 

2,000

 

 

2,014,220

 

               

Chula Vista, California, IDR (San Diego Gas and Electric
Company), AMT, Series B, 5%, 12/01/27

 

 

2,690

 

 

2,504,067

 

               

Corona-Norco Unified School District, California, Community
Facilities District Number 98-1, Special Tax Bonds,
5.10%, 9/01/32 (d)

 

 

6,000

 

 

6,015,900

 

               

Eastern Municipal Water District, California, Water and
Sewer, COP, Series H, 5%, 7/01/33

 

 

5,100

 

 

5,063,790

 

               

Foothill/Eastern Corridor Agency, California, Toll Road Revenue
Bonds, Senior Lien, Series A (e)(f):

 

 

 

 

 

 

 

5.40%, 1/01/26

 

 

15,470

 

 

6,694,178

 

5.42%, 1/01/30

 

 

4,890

 

 

1,680,008

 

               

Foothill/Eastern Corridor Agency, California, Toll Road Revenue
Refunding Bonds, 6.12%, 1/15/30 (e)

 

 

6,550

 

 

1,620,994

 

               

Golden State Tobacco Securitization Corporation of California,
Tobacco Settlement Revenue Bonds (g):

 

 

 

 

 

 

 

Series A-1, 6.625%, 6/01/13

 

 

2,900

 

 

3,336,131

 

Series A-1, 6.75%, 6/01/13

 

 

9,000

 

 

10,402,830

 

Series B, 5.50%, 6/01/13

 

 

4,000

 

 

4,404,520

 

               

La Quinta, California, Redevelopment Agency, Tax Allocation
Bonds (Redevelopment Project Area Number 1),
5.125%, 9/01/32 (d)

 

 

5,000

 

 

5,001,250

 

               

Los Angeles, California, Department of Water and Power,
Waterworks Revenue Refunding Bonds, Series A,
5.125%, 7/01/41 (h)

 

 

5,500

 

 

5,506,105

 

               

Los Angeles, California, Regional Airports Improvement
Corporation, Lease Revenue Bonds (American Airlines Inc.),
AMT, Series C, 7.50%, 12/01/24

 

 

1,785

 

 

1,578,975

 

               

Los Angeles County, California, Metropolitan Transportation
Authority, Sales Tax Revenue Refunding Bonds,
Proposition C, VRDN, Second Senior Series A,
7.50%, 7/01/20 (b)(c)(n)

 

 

2,500

 

 

2,500,000

 

               

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

 

 

1,650

 

 

1,678,710

 

               

Pasadena, California, COP, Refunding, Series C, 5%, 2/01/33

 

 

2,800

 

 

2,801,960

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

California (concluded)

 

 

 

 

 

 

 

Poway, California, Unified School District, Special Tax Bonds
(Community Facilities District Number 6):

 

 

 

 

 

 

 

5.50%, 9/01/25

 

$

1,500

 

$

1,485,300

 

5.60%, 9/01/33

 

 

1,700

 

 

1,675,248

 

               

Rohnert Park, California, Financing Authority, Mobile Home
Park Revenue Bonds (Rancho Felix Mobile Home Park),
Series A, 5.625%, 9/15/28

 

 

2,470

 

 

2,396,320

 

               

Sacramento County, California, Sanitation District Financing
Authority, Revenue Bonds (Sacramento Regional County
Sanitation District), 5%, 12/01/36 (h)

 

 

2,400

 

 

2,381,856

 

               

San Bernardino County, California, Special Tax Bonds
(Community Facilities District Number 2002-1),
5.90%, 9/01/33

 

 

4,000

 

 

3,969,000

 

               

San Diego, California, Unified School District, GO
(Election of 1998), Series D, 5.25%, 7/01/23 (h)

 

 

2,000

 

 

2,175,980

 

               

San Francisco, California, City and County Redevelopment
Agency, Community Facilities District Number 1, Special
Tax Bonds (Mission Bay South Public Improvements
Project), 6.25%, 8/01/33

 

 

5,000

 

 

4,993,400

 

               

San Joaquin Hills, California, Transportation Corridor Agency,
Toll Road Revenue Refunding Bonds, Series A,
5.46%, 1/15/34 (c)(e)

 

 

30,000

 

 

6,386,100

 

               

Santa Ana, California, Unified School District (Election of
2008), GO, Series A:

 

 

 

 

 

 

 

5.50%, 8/01/30

 

 

5,830

 

 

6,014,170

 

5.125%, 8/01/33

 

 

2,000

 

 

1,981,860

 

               

Santa Rosa, California, Wastewater Revenue Refunding
Bonds, Series B, 5.35%, 9/01/25 (d)(e)

 

 

2,685

 

 

1,101,280

 

               

South Tahoe, California, Joint Powers Financing Authority,
Revenue Refunding Bonds (South Tahoe Redevelopment
Project Area Number 1), Series A, 5.45%, 10/01/33

 

 

2,200

 

 

2,093,168

 

               

Stockton, California, Unified School District, GO (Election of
2005), 5%, 8/01/31 (a)

 

 

2,000

 

 

2,027,220

 

               

University of California, General Revenue Bonds,
Series A, 5%, 5/15/33 (d)

 

 

2,000

 

 

1,988,620

 

               

University of California, Revenue Bonds, Series D,
5%, 5/15/32 (h)

 

 

2,500

 

 

2,492,925

 

               

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

 

 

1,170

 

 

1,173,229

 

               

Val Verde, California, Unified School District, GO (Election of
2008), Series A, 5.50%, 8/01/33

 

 

5,000

 

 

5,072,300

 

 

 

 

 

 

     

 

 

 

 

 

 

160,501,580

 

Multi-State—3.8%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust (i)(j):

 

 

 

 

 

 

 

5.75%, 4/30/15

 

 

500

 

 

527,900

 

6%, 4/30/15

 

 

1,500

 

 

1,598,385

 

6%, 4/30/19

 

 

1,000

 

 

1,057,840

 

6.30%, 4/30/19

 

 

1,000

 

 

1,075,390

 

 

 

 

 

 

     

 

 

 

 

 

 

4,259,515

 

Total Municipal Bonds—146.8%

 

 

 

 

 

164,761,095

 


 

 

 

 

 

 

 

 









Municipal Bonds Transferred to
Tender Option Bond Trusts (k)

 

 

 

 

 

 

 

               

California State Department of Water Resources Revenue
Bonds (Central Valley Project), Series AE, 5%, 12/01/29

 

 

7,000

 

 

7,245,490

 

               

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

37



 

 


 

Schedule of Investments (concluded)

BlackRock California Municipal Income Trust II (BCL)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (k)

 

Par
(000)

 

Value

 

           

California State University, Systemwide Revenue Bonds,
Series A, 5%, 11/01/39 (a)

 

$

2,399

 

$

2,412,184

 

               

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

 

 

8,005

 

 

8,138,738

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—15.8%

 

 

 

 

 

17,796,412

 

               

Total Long-Term Investments
(Cost—$179,998,709)—162.6%

 

 

 

 

 

182,557,507

 

               

 

 

 

 

 

 

 

 









Short-Term Securities

 

Shares

 

 

 

 

             

CMA California Municipal Money Fund, 1.35% (l)(m)

 

 

244

 

 

244

 

               

Total Short-Term Securities (Cost—$244)—0.0%

 

 

 

 

 

244

 

               

Total Investments (Cost—$179,998,953*)—162.6%

 

 

 

 

 

182,557,751

 

Other Assets Less Liabilities—1.5%

 

 

 

 

 

1,717,483

 

Liability for Trust Certificates,
Including Interest Expense and Fees Payable—(10.9)%

 

 

 

 

 

(12,239,854

)

Preferred Shares, at Redemption Value—(53.2)%

 

 

 

 

 

(59,772,632

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

112,262,748

 

 

 

 

 

 

     

 

 

*

The cost and unrealized appreciation (depreciation of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

167,756,074

 

 

 

     

Gross unrealized appreciation

 

$

4,937,428

 

Gross unrealized depreciation

 

 

(2,320,050

)

 

 

     

Net unrealized appreciation

 

$

2,617,378

 

 

 

     

 

 

(a)

FSA Insured.

(b)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(c)

MBIA Insured.

(d)

AMBAC Insured.

(e)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(f)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(g)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(h)

FGIC Insured.

(i)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(j)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(k)

Securities represents bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(l)

Represents the current yield as of report date.

(m)

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


 

 

 

 

 

 

 

 

               

Affiliate

 

Net
Activity

 

Income

 

           

CMA California Municipal Money Fund

 

 

7

 

$

1,952

 

               

 

 

Forward interest rate swaps outstanding as of August 31, 2008 were as follows:

   

 

 

 

 

 

 

 

 

 

 

Notional
Amount
(000)

 

Unrealized
Depreciation

 

               

Pay a fixed rate of 3.835% and receive a floating rate based
on 1-week SIFMA Municipal Swap Index Rate
Broker, JP Morgan Chase & Co.
Expires November 2028

 

$

3,500

 

$

(80,661

)

Pay a fixed rate of 4.043% and receive a floating rate based
on 1-week SIFMA Municipal Swap Index Rate
Broker, Citibank N.A.
Expires September 2038

 

$

5,900

 

$

(294,882

)

               

Total

 

 

 

 

$

(375,543

)

 

 

 

 

 

     

 

 

(n)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security.


See Notes to Financial Statements.

 

 

 

 

 

 

 

 

38

ANNUAL REPORT

AUGUST 31, 2008

 



 

 



 

 

Schedule of Investments August 31, 2008

BlackRock Maryland Municipal Bond Trust (BZM)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Maryland—114.2%

 

 

 

 

 

 

 

               

Annapolis, Maryland, Special Obligation Revenue Bonds
(Park Place Project), Series A, 5.35%, 7/01/34

 

$

500

 

$

420,775

 

               

Anne Arundel County, Maryland, EDR (Community College
Project), 5.25%, 9/01/28

 

 

2,870

 

 

2,898,958

 

               

Baltimore County, Maryland, Metropolitan District, GO:

 

 

 

 

 

 

 

67th Issue, 5%, 6/01/22

 

 

2,000

 

 

2,080,440

 

68th Issue, 5%, 8/01/28

 

 

2,000

 

 

2,023,340

 

               

Baltimore County, Maryland, Revenue Refunding Bonds
(Oak Crest Village, Inc.), Series A, 5%, 1/01/37

 

 

1,000

 

 

898,220

 

               

Baltimore, Maryland, Special Obligation Tax Bonds
(Harborview Lot Number 2), 6.50%, 7/01/31

 

 

1,000

 

 

978,950

 

               

Baltimore, Maryland, Wastewater Project Revenue Refunding
Bonds, Series A (a):

 

 

 

 

 

 

 

5.20%, 7/01/32

 

 

3,500

 

 

3,514,245

 

5.125%, 7/01/42

 

 

2,000

 

 

2,001,160

 

               

Frederick County, Maryland, Special Obligation Tax Bonds
(Urbana Community Development Authority),
6.625%, 7/01/25

 

 

1,000

 

 

1,003,330

 

               

Howard County, Maryland, Retirement Community Revenue
Refunding Bonds (Columbia Vantage House Corporation),
Series A, 5.25%, 4/01/33

 

 

500

 

 

403,455

 

               

Maryland State Community Development Administration,
Department of Housing and Community Development,
Residential Revenue Bonds, AMT,
Series H, 5.10%, 9/01/37

 

 

250

 

 

221,117

 

               

Maryland State Health and Higher Educational Facilities
Authority Revenue Bonds:

 

 

 

 

 

 

 

(Baltimore Board of Child Care), 5.375%, 7/01/32

 

 

2,000

 

 

2,013,280

 

(Carroll County General Hospital), 6%, 7/01/37

 

 

1,990

 

 

2,000,627

 

(Loyola College), 5%, 10/01/39

 

 

2,000

 

 

1,947,600

 

(Union Hospital of Cecil County), 5.625%, 7/01/32

 

 

2,000

 

 

2,006,660

 

(University of Maryland Medical System),
5.25%, 7/01/11 (b)

 

 

2,000

 

 

2,144,060

 

               

Maryland State Health and Higher Educational Facilities
Authority, Revenue Refunding Bonds (Peninsula Regional
Medical Center), 5%, 7/01/36

 

 

1,000

 

 

942,660

 

               

Maryland State Industrial Development Financing Authority,
EDR (Our Lady of Good Counsel School),
Series A, 6%, 5/01/35

 

 

1,000

 

 

973,970

 

               

Maryland State Transportation Authority, Parking Revenue
Bonds (Baltimore/Washington International Airport), AMT,
Series B, 5.125%, 3/01/24 (c)

 

 

2,000

 

 

1,920,400

 

               

Montgomery County, Maryland, Lease Revenue Bonds
(Metrorail Garage Projects):

 

 

 

 

 

 

 

5%, 6/01/23

 

 

500

 

 

517,775

 

5%, 6/01/24

 

 

1,435

 

 

1,483,087

 

               

Prince Georges County, Maryland, Special Obligation Bonds
(National Harbor Project), 5.20%, 7/01/34

 

 

1,500

 

 

1,275,510

 

 

 

 

 

 

     

 

 

 

 

 

 

33,669,619

 

               

Multi-State—7.7%

 

 

 

 

 

 

 

               

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (d)(e)

 

 

2,000

 

 

2,262,040

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Puerto Rico—20.4%

 

 

 

 

 

 

 

               

Children’s Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds,
5.50%, 5/15/39

 

$

1,500

 

$

1,360,440

 

               

Puerto Rico Commonwealth Highway and Transportation
Authority, Highway Revenue Refunding Bonds,
Series CC, 5.25%, 7/01/36 (f)

 

 

2,595

 

 

2,679,857

 

               

Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds,
Series D, 5.25%, 7/01/12 (b)

 

 

1,500

 

 

1,623,720

 

               

Puerto Rico Public Buildings Authority, Government Facilities
Revenue Refunding Bonds, Series D, 5.375%, 7/01/33

 

 

350

 

 

350,392

 

 

 

 

 

 

     

 

 

 

 

 

 

6,014,409

 

               

Total Municipal Bonds—142.3%

 

 

 

 

 

41,946,068

 

               

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

 

 

 

 

 

 

               

Maryland—10.3%

 

 

 

 

 

 

 

               

Maryland State Transportation Authority, Transportation
Facilities Projects Revenue Bonds, 5%, 7/01/41 (f)

 

 

2,999

 

 

3,044,910

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—10.3%

 

 

 

 

 

3,044,910

 

               

Total Long-Term Investments (Cost—$44,657,135)—152.6%

 

 

 

 

 

44,990,978

 

               

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

             

Merrill Lynch Institutional Tax-Exempt Fund,
1.84% (h)(i)

 

 

2,103,426

 

 

2,103,426

 

               

Total Short-Term Securities (Cost—$2,103,426)—7.1%

 

 

 

 

 

2,103,426

 

               

Total Investments (Cost—$46,760,561*)—159.7%

 

 

 

 

 

47,094,404

 

Other Assets Less Liabilities—1.4%

 

 

 

 

 

403,413

 

Liability for Trust Certificates, Including Interest

 

 

 

 

 

 

 

Expense and Fees Payable—(6.8)%

 

 

 

 

 

(2,004,813

)

Preferred Shares, at Redemption Value—(54.3)%

 

 

 

 

 

(16,004,915

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

29,488,089

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

               

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

44,685,505

 

 

 

     

Gross unrealized appreciation

 

$

1,207,175

 

Gross unrealized depreciation

 

 

(796,776

)

 

 

     

Net unrealized appreciation

 

$

410,399

 

 

 

     

 

 

(a)

FGIC Insured.

(b)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(c)

AMBAC Insured.

(d)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(e)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(f)

FSA Insured.

(g)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender options bond trusts.

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

39



 

 



 

 

Schedule of Investments (concluded)

BlackRock Maryland Municipal Bond Trust (BZM)


 

 

(h)

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


 

 

 

 

 

 

 

 

               

 

 

Net

 

 

 

 

Affiliate

 

Activity

 

Income

 

           

Merrill Lynch Institutional Tax-Exempt Fund

 

 

1,903,426

 

$

32,802

 

               

 

 

(i)

Represents the current yield as of report date.

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

40

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


Schedule of Investments August 31, 2008

BlackRock New Jersey Municipal Bond Trust (BLJ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

New Jersey—126.3%

 

 

 

 

 

 

 

 

Garden State Preservation Trust of New Jersey,
Capital Appreciation Revenue Bonds,
Series B, 5.24%, 11/01/27 (a)(b)

 

$

4,000

 

$

1,563,520

 

               

Middlesex County, New Jersey, Improvement Authority,
Subordinate Revenue Bonds
(Heldrich Center Hotel/Conference Project),
Series B, 6.25%, 1/01/37

 

 

560

 

 

469,487

 

               

New Jersey EDA, Cigarette Tax Revenue Bonds,
5.75%, 6/15/34 (c)

 

 

2,000

 

 

1,952,540

 

               

New Jersey EDA, EDR, Refunding (Kapkowski Road Landfill
Reclamation Improvement District Project),
6.50%, 4/01/28

 

 

2,250

 

 

2,272,252

 

               

New Jersey EDA, First Mortgage Revenue Bonds
(Lions Gate Project), Series A:

 

 

 

 

 

 

 

5.75%, 1/01/25

 

 

150

 

 

138,409

 

5.875%, 1/01/37

 

 

265

 

 

233,892

 

               

New Jersey EDA, First Mortgage Revenue Refunding Bonds Series A:

 

 

 

 

 

 

 

(Fellowship Village), 5.50%, 1/01/25

 

 

2,000

 

 

1,914,640

 

(The Winchester Gardens at Ward Homestead Project),
5.80%, 11/01/31

 

 

2,500

 

 

2,345,575

 

               

New Jersey EDA, Mortgage Revenue Refunding Bonds
(Victoria Health Corporation Project),
Series A, 5.20%, 12/20/36 (d)

 

 

1,680

 

 

1,693,339

 

               

New Jersey EDA, Retirement Community Revenue Refunding
Bonds (Seabrook Village, Inc.), 5.25%, 11/15/26

 

 

470

 

 

405,737

 

               

New Jersey EDA, Revenue Bonds (Newark Downtown District
Management Corporation), 5.125%, 6/15/37

 

 

250

 

 

217,405

 

               

New Jersey EDA, School Facilities Construction Revenue
Bonds, Series U, 5%, 9/01/37 (e)

 

 

500

 

 

505,420

 

               

New Jersey EDA, Solid Waste Disposal Facilities Revenue
Bonds (Waste Management Inc.), AMT,
Series A, 5.30%, 6/01/15 (f)

 

 

1,000

 

 

955,120

 

               

New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT, 7%, 11/15/30

 

 

2,335

 

 

1,889,108

 

               

New Jersey Health Care Facilities Financing Authority,
Health System Revenue Bonds (Catholic Health East),
Series A, 5.375%, 11/15/12 (g)

 

 

2,000

 

 

2,215,140

 

               

New Jersey Health Care Facilities
Financing Authority Revenue Bonds:

 

 

 

 

 

 

 

(Kennedy Health System), 5.625%, 7/01/31

 

 

2,000

 

 

2,009,180

 

(Meridian Health), Series I, 5%, 7/01/38 (h)

 

 

250

 

 

245,795

 

(South Jersey Hospital System), 6%, 7/01/12 (g)

 

 

2,500

 

 

2,790,125

 

               

New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Atlantic City Medical Center), 5.75%, 7/01/12 (g)

 

 

890

 

 

985,239

 

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

 

 

1,110

 

 

1,136,718

 

(Hackensack University Medical Center),
5.25%, 1/01/36 (h)

 

 

500

 

 

505,850

 

(Saint Barnabas Health Care System),
Series B, 5.92%, 7/01/30 (b)

 

 

500

 

 

105,875

 

(Saint Barnabas Health Care System),
Series B, 5.72%, 7/01/36 (b)

 

 

3,600

 

 

482,616

 

(Saint Barnabas Health Care System),
Series B, 5.79%, 7/01/37 (b)

 

 

3,600

 

 

445,284

 

(South Jersey Hospital System), 5%, 7/01/46

 

 

500

 

 

458,790

 

               

New Jersey State Educational Facilities
Authority Revenue Bonds:

 

 

 

 

 

 

 

(Fairleigh Dickinson University), Series D, 6%, 7/01/25

 

 

1,000

 

 

1,013,700

 

(Georgian Court College Project),
Series C, 6.50%, 7/01/13 (g)

 

 

630

 

 

735,084

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

 

New Jersey (concluded)

 

 

 

 

 

 

 

 

New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Fairleigh Dickinson University), Series C, 6%, 7/01/20

 

$

1,000

 

$

1,033,660

 

(Fairleigh Dickinson University), Series C, 5.50%, 7/01/23

 

 

500

 

 

497,455

 

(Georgian Court University), Series D, 5%, 7/01/33

 

 

150

 

 

138,750

 

(Rowan University), Series B, 5%, 7/01/24 (h)

 

 

500

 

 

523,720

 

               

New Jersey State Housing and Mortgage Finance Agency,
S/F Housing Revenue Refunding Bonds,
AMT, Series T, 4.70%, 10/01/37

 

 

250

 

 

204,640

 

               

New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds,
Series C, 4.666%, 12/15/32 (a)(b)

 

 

1,250

 

 

344,663

 

               

Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, AMT, 126th Series, 5.25%, 5/15/37 (i)

 

 

2,250

 

 

2,213,753

 

               

Port Authority of New York and New Jersey, Consolidated
Revenue Refunding Bonds:

 

 

 

 

 

 

 

125th Series, 5%, 4/15/32 (a)

 

 

1,500

 

 

1,525,500

 

153rd Series, 5%, 7/15/35

 

 

325

 

 

330,304

 

AMT, 152nd Series, 5.25%, 11/01/35

 

 

630

 

 

631,373

 

               

Port Authority of New York and New Jersey,
Special Obligation Revenue Bonds (Continental
Airlines, Inc.—LaGuardia Project),
AMT, 9.125%, 12/01/15

 

 

125

 

 

125,444

 

               

Rahway Valley Sewerage Authority, New Jersey, Sewer
Revenue Bonds, CABS,
Series A, 4.36%, 9/01/33 (b)(j)

 

 

650

 

 

167,785

 

               

Salem County, New Jersey, Improvement Authority
Revenue Bonds (Finlaw State Office Building Project),
5.25%, 8/15/38 (a)

 

 

100

 

 

103,686

 

               

Tobacco Settlement Financing Corporation of New Jersey,
Asset-Backed Revenue Refunding Bonds,
6.125%, 6/01/12 (g)

 

 

1,100

 

 

1,237,412

 

               

Vineland, New Jersey, Electric Utility, GO, Refunding, AMT (j):
5.30%, 5/15/29

 

 

1,000

 

 

961,980

 

5.375%, 5/15/32

 

 

1,500

 

 

1,439,715

 

 

 

 

 

 

     

 

 

 

 

 

 

41,165,680

 

 

Multi-State—7.0%

 

 

 

 

 

 

 

               

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (k)(l)

 

 

2,000

 

 

2,262,040

 

               

Puerto Rico—20.0%

 

 

 

 

 

 

 

               

Puerto Rico Commonwealth Highway and Transportation
Authority Highway Revenue Refunding Bonds,
Series CC, 5.50%, 7/01/31 (h)

 

 

1,000

 

 

1,066,140

 

               

Puerto Rico Commonwealth Highway and Transportation
Authority Transportation Revenue Refunding Bonds,
Series D, 5.25%, 7/01/12 (g)

 

 

2,000

 

 

2,164,960

 

               

Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series A (b)(e):

 

 

 

 

 

 

 

4.34%, 7/01/37

 

 

1,750

 

 

334,775

 

4.51%, 7/01/43

 

 

1,000

 

 

132,920

 

               

Puerto Rico Electric Power Authority,
Power Revenue Bonds, Series II, 5.25%, 7/01/12 (g)

 

 

1,750

 

 

1,940,278

 

               

Puerto Rico Housing Financing Authority,
Capital Funding Program, Subordinate
Revenue Refunding Bonds, 5.125%, 12/01/27

 

 

265

 

 

260,996

 

               

Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds,
Series D, 5.25%, 7/01/27

 

 

615

 

 

611,316

 

 

 

 

 

 

     

 

 

 

 

 

 

6,511,385

 

               

Total Municipal Bonds—153.3%

 

 

 

 

 

49,939,105

 

               

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

41




 

 


Schedule of Investments August 31, 2008

BlackRock New Jersey Municipal Bond Trust (BLJ)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (l)

 

Par
(000)

 

Value

 

 

New Jersey—4.9%

 

 

 

 

 

 

 

               

New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds (College of New Jersey),
Series D, 5%, 7/01/35 (a)

 

$

1,020

 

$

1,038,992

 

               

Port Authority of New York and New Jersey, Consolidated
Revenue Refunding Bonds, AMT, 152nd
Series, 5.75%, 11/01/30

 

 

525

 

 

549,533

 

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—4.9%

 

 

 

 

 

1,588,525

 

 

Total Long-Term Investments (Cost -$51,626,228)—158.2%

 

 

 

 

 

51,527,630

 

 

 

 

 

 

 

 

 

 


Short-Term Securities

 

Shares

 

 

 

 

 

CMA New Jersey Municipal Money Fund, 1.50% (n)(o)

 

 

828,207

 

 

828,207

 

               

Total Short-Term Securities (Cost—$828,207)—2.5%

 

 

 

 

 

828,207

 

 

Total Investments (Cost—$52,454,435*)—160.7%

 

 

 

 

 

52,355,837

 

 

 

 

 

 

 

 

 

Other Assets Less Liabilities—1.5%

 

 

 

 

 

471,584

 

 

 

 

 

 

 

 

 

Liability for Trust Certificates,
Including Interest Expense and Fees Payable—(3.2)%

 

 

 

 

 

(1,033,992

)

Preferred Shares, at Redemption Value—(59.0)%

 

 

 

 

 

(19,209,618

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

32,583,811

 

 

 

 

 

 

     

 

               

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

51,295,159

 

 

 

 

 

 

     

Gross unrealized appreciation

 

 

 

 

$

2,111,851

 

Gross unrealized depreciation

 

 

 

 

 

(2,081,173

)

 

 

 

 

 

     

Net unrealized appreciation

 

 

 

 

$

30,678

 

 

 

 

 

 

     

 

 

(a)

FSA Insured.

(b)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(c)

Radian Insured.

(d)

GNMA Collateralized.

(e)

AMBAC Insured.

(f)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(g)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(h)

Assured Guaranty Insured.

(i)

FGIC Insured.

(j)

MBIA Insured.

(k)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(l)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity and is subject to mandatory redemption at maturity.

(m)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(n)

Represents the current yield as of report date.

(o)

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


 

 

 

 

 

 

 

 

           

Affiliate

 

Net Activity

 

Income

 

           

CMA New Jersey Municipal Money Fund

 

 

320,834

 

$

21,492

 

               

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

42

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Schedule of Investments August 31, 2008

BlackRock New York Insured Municipal Income Trust (BSE)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New York—120.6%

 

 

 

 

 

 

 

               

Herkimer County, New York, IDA, Civic Facility Revenue
Bonds (Herkimer College Foundation Inc.),
6.25%, 8/01/34

 

$

1,000

 

$

994,850

 

               

Hudson Yards Infrastructure Corporation, New York, Revenue
Bonds, Series A, 5%, 2/15/47 (a)

 

 

3,000

 

 

2,892,360

 

               

Long Island Power Authority, New York, Electric System
Revenue Refunding Bonds, Series F, 4.25%, 5/01/33 (b)

 

 

1,415

 

 

1,239,950

 

               

Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds (a):

 

 

 

 

 

 

 

Series A, 5.25%, 11/15/31

 

 

4,250

 

 

4,278,347

 

Series E, 5.25%, 11/15/31

 

 

2,660

 

 

2,682,743

 

               

Metropolitan Transportation Authority, New York, Service
Contract Revenue Refunding Bonds,
Series A, 5%, 7/01/30 (c)

 

 

10,000

 

 

10,058,300

 

               

New York City, New York, City IDA, PILOT Revenue Bonds:

 

 

 

 

 

 

 

(Queens Baseball Stadium Project), 5%, 1/01/46 (c)

 

 

3,725

 

 

3,578,868

 

(Yankee Stadium Project), 4.75%, 3/01/46 (b)

 

 

1,000

 

 

925,920

 

(Yankee Stadium Project), 5%, 3/01/46 (a)

 

 

650

 

 

621,328

 

               

New York City, New York, City Municipal Water Finance
Authority, Second General Resolution, Water and Sewer
System, Revenue Refunding Bonds (d):

 

 

 

 

 

 

 

Series A, 4.75%, 6/15/37

 

 

1,385

 

 

1,355,112

 

Series DD, 4.75%, 6/15/36

 

 

2,035

 

 

1,991,817

 

               

New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System Revenue Bonds,
Series A, 4.25%, 6/15/39 (d)

 

 

1,500

 

 

1,347,930

 

               

New York City, New York, City Transitional Finance Authority,
Future Tax Secured, Revenue Refunding Bonds, Series B (c):

 

 

 

 

 

 

 

5%, 11/01/11 (e)

 

 

235

 

 

256,451

 

5%, 5/01/30

 

 

5,765

 

 

5,820,748

 

               

New York City, New York, GO, Refunding, VRDN,
Series H, Sub-Series H-3, 2.50%, 8/01/19 (d)(f)(n)

 

 

350

 

 

350,000

 

               

New York City, New York, IDA, Civic Facility Revenue Bonds
(Lycee Francais de New York Project),
Series A, 5.375%, 6/01/23 (g)

 

 

2,500

 

 

2,313,600

 

               

New York City, New York, Sales Tax Asset Receivable
Corporation Revenue Bonds,
Series A, 5%, 10/15/32 (c)

 

 

6,000

 

 

6,094,560

 

               

New York City, New York, Trust for Cultural Resources
Revenue Refunding Bonds (American Museum of
Natural History), Series A, 5%, 7/01/44 (b)

 

 

4,100

 

 

4,110,004

 

               

New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured),
5%, 11/15/44 (c)

 

 

7,175

 

 

6,983,714

 

               

New York State Dormitory Authority, Hospital Revenue
Bonds (Lutheran Medical Center), 5%, 8/01/31 (b)(h)

 

 

7,000

 

 

6,924,400

 

               

New York State Dormitory Authority, Hospital Revenue
Refunding Bonds (New York and Presbyterian Hospital),
5%, 8/01/32 (c)(h)

 

 

5,000

 

 

4,924,350

 

               

New York State Dormitory Authority, Lease Revenue Bonds
(State University Dormitory Facilities), 5%, 7/01/37 (c)

 

 

500

 

 

504,950

 

               

New York State Dormitory Authority, Mortgage Hospital
Revenue Bonds (Saint Barnabas Hospital),
Series A, 5%, 2/01/31 (c)(h)

 

 

6,000

 

 

5,935,920

 

               

New York State Dormitory Authority, Non-State Supported
Debt, Lease Revenue Bonds (Municipal Health
Facilities Improvement Program), Sub-Series 2-5,
5%, 1/15/32

 

 

700

 

 

697,095

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

               

New York (concluded)

 

 

 

 

 

 

 

               

New York State Dormitory Authority, Non-State Supported
Debt Revenue Bonds (Fordham University),
Series B, 5%, 7/01/38 (i)

 

$

250

 

$

252,305

 

               

New York State Dormitory Authority, Non-State Supported
Debt, Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Mount Sinai School of Medicine of New York University),
5%, 7/01/35 (b)

 

 

2,500

 

 

2,459,900

 

(School District Financing Program),
Series A, 5%, 10/01/35 (d)

 

 

1,000

 

 

1,015,800

 

               

New York State Dormitory Authority Revenue Bonds:

 

 

 

 

 

 

 

(Brooklyn Law School), Series B, 5.125%, 7/01/30 (j)

 

 

4,000

 

 

4,007,360

 

(Fashion Institute of Technology Student Housing
Corporation), 5.125%, 7/01/14 (a)(e)

 

 

2,500

 

 

2,774,025

 

(New York University), Series 2, 5%, 7/01/41 (c)

 

 

7,000

 

 

7,016,030

 

(SS Joachim and Anne Residence), 5.25%, 7/01/27

 

 

3,000

 

 

3,020,490

 

(School Districts Financing Program),
Series D, 5%, 10/01/30 (b)

 

 

3,500

 

 

3,510,115

 

               

New York State Dormitory Authority, Revenue
Refunding Bonds, Series A:

 

 

 

 

 

 

 

(School District Financing Program), 5%, 4/01/31 (b)

 

 

2,000

 

 

2,005,040

 

(Winthrop S. Nassau University), 5.25%, 7/01/31 (c)

 

 

2,000

 

 

2,015,740

 

               

New York State Dormitory Authority, State Supported Debt
Revenue Bonds (Mental Health Services Facilities),

 

 

 

 

 

 

 

Series A, 5%, 2/15/33 (d)

 

 

1,100

 

 

1,105,984

 

               

New York State, GO, Series A, 4.125%, 3/01/37 (a)

 

 

120

 

 

103,811

 

               

TSASC, Inc., New York, TFABS, Series 1, 5.75%, 7/15/12 (e)

 

 

2,500

 

 

2,792,150

 

 

 

 

 

 

     

 

 

 

 

 

 

108,962,067

 

               

Puerto Rico—16.1%

 

 

 

 

 

 

 

               

Puerto Rico Commonwealth Aqueduct and Sewer Authority,
Senior Lien Revenue Bonds,
Series A, 5.125%, 7/01/47 (i)

 

 

1,925

 

 

1,891,736

 

               

Puerto Rico Commonwealth Highway and Transportation
Authority, Highway Revenue Refunding Bonds,
Series CC (d):

 

 

 

 

 

 

 

5.50%, 7/01/31

 

 

1,000

 

 

1,066,140

 

5.25%, 7/01/34

 

 

1,000

 

 

1,028,620

 

5.25%, 7/01/36

 

 

1,000

 

 

1,032,700

 

               

Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series SS, 5%, 7/01/25 (b)

 

 

1,000

 

 

982,070

 

               

Puerto Rico Housing Financing Authority, Capital Funding
Program, Subordinate Revenue Refunding Bonds,
5.125%, 12/01/27

 

 

1,000

 

 

984,890

 

               

Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Revenue Bonds
(University Plaza Project), Series A, 5%, 7/01/33 (b)

 

 

1,000

 

 

968,150

 

               

Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities, Revenue Refunding
Bonds (Polytechnic University),
Series A, 5%, 8/01/32 (g)

 

 

4,000

 

 

3,436,360

 

               

Puerto Rico Municipal Finance Agency, GO,
Series A, 5%, 8/01/30 (d)

 

 

1,000

 

 

1,001,700

 

               

Puerto Rico Municipal Finance Agency Revenue Bonds,
Series A, 5.25%, 8/01/20 (d)

 

 

2,000

 

 

2,093,860

 

 

 

 

 

 

     

 

 

 

 

 

 

14,486,226

 

               

Total Municipal Bonds—136.7%

 

 

 

 

 

123,448,293

 

               

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

43



 

 


 

Schedule of Investments (concluded)

BlackRock New York Insured Municipal Income Trust (BSE)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (k)

 

Par
(000)

 

Value

 

               

New York—24.0%

 

 

 

 

 

 

 

               

Long Island Power Authority, New York, Electric System
Revenue Refunding Bonds, Series B, 5%, 12/01/35 (d)

 

$

1,004

 

$

1,017,223

 

               

Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds, Series A, 5%, 11/15/30 (d)

 

 

6,087

 

 

6,162,463

 

               

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Bonds, Series S-2,
5%, 1/15/37 (a)(d)

 

 

1,005

 

 

1,017,985

 

               

New York State Thruway Authority, General Revenue
Refunding Bonds, Series H, 5%, 1/01/37 (a)(d)

 

 

4,005

 

 

4,061,430

 

               

Triborough Bridge and Tunnel Authority, New York, Revenue
Refunding Bonds, 5%, 11/15/32 (b)

 

 

9,404

 

 

9,431,391

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—24.0%

 

 

 

 

 

21,690,492

 

               

Total Long-Term Investments (Cost—$146,586,019)—160.7%

 

 

 

 

 

145,138,785

 

               

 

 

 

 

 

 

 

 


Short-Term Securities

 

Shares

 

 

 

 

               

CMA New York Municipal Money Fund, 1.31% (l)(m)

 

 

300

 

 

300

 

               

Total Short-Term Securities (Cost—$300)—0.0%

 

 

 

 

 

300

 

               

Total Investments (Cost—$146,586,319*)—160.7%

 

 

 

 

 

145,139,085

 

Other Assets Less Liabilities—1.4%

 

 

 

 

 

1,287,454

 

Liability for Trust Certificates, Including Interest

 

 

 

 

 

 

 

Expense and Fees Payable—(16.0)%

 

 

 

 

 

(14,407,586

)

Preferred Shares, at Redemption Value—(46.1)%

 

 

 

 

 

(41,687,803

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

90,331,150

 

 

 

 

 

 

     

 

 

 

 

 

 

 

 

               

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

132,392,479

 

 

 

 

     

 

Gross unrealized appreciation

 

$

1,066,501

 

 

Gross unrealized depreciation

 

 

(2,654,930

)

 

 

 

     

 

Net unrealized depreciation

 

$

(1,588,429

)

 

 

 

     

 

 

(a)

FGIC Insured.

(b)

MBIA Insured.

(c)

AMBAC Insured.

(d)

FSA Insured.

(e)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(f)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(g)

ACA Insured.

(h)

FHA Insured.

(i)

Assured Guaranty Insured.

(j)

XL Capital Insured.

(k)

Securities represents bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(l)

Represents the current yield as of report date.

(m)

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


 

 

 

 

 

 

 

 

           

 

Affiliate

 

Net Activity

 

Income

 

 

               

 

CMA New York Municipal Money Fund

 

 

9

 

 

$ 6

 

 

               

 

 

(n)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

44

ANNUAL REPORT

AUGUST 31, 2008

 



 

 

 


 

Schedule of Investments August 31, 2008

 

BlackRock New York Municipal Bond Trust (BQH)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New York—124.5%

 

 

 

 

 

 

 

           

Albany, New York, IDA, Civic Facility Revenue Bonds (New
Covenant Charter School Project), Series A:

 

 

 

 

 

 

 

7%, 5/01/25

 

$

200

 

$

156,590

 

7%, 5/01/35

 

 

130

 

 

98,563

 

               

Dutchess County, New York, IDA, Civic Facility Revenue Bonds
(Vassar College Project), 5.35%, 8/01/11 (a)

 

 

1,000

 

 

1,095,860

 

               

Dutchess County, New York, IDA, Civic Facility Revenue Refunding
Bonds (Bard College), Series A-2, 4.50%, 8/01/36

 

 

500

 

 

451,445

 

               

Genesee County, New York, IDA, Civic Facility Revenue
Refunding Bonds (United Memorial Medical Center
Project), 5%, 12/01/27

 

 

150

 

 

124,750

 

               

Hudson Yards Infrastructure Corporation, New York, Revenue Bonds, Series A:

 

 

 

 

 

 

 

4.50%, 2/15/47 (b)

 

 

1,000

 

 

865,280

 

5%, 2/15/47 (c)

 

 

500

 

 

482,060

 

               

Metropolitan Transportation Authority, New York, Revenue Refunding Bonds, Series A:

 

 

 

 

 

 

 

5%, 11/15/25 (c)

 

 

250

 

 

250,735

 

5.125%, 11/15/31

 

 

3,000

 

 

3,008,220

 

               

Metropolitan Transportation Authority, New York, Transportation
Revenue Refunding Bonds, Series F, 5%, 11/15/35

 

 

1,250

 

 

1,228,012

 

               

New York City, New York, City Health and Hospital Corporation,
Health System Revenue Bonds, Series A, 5.375%, 2/15/26

 

 

1,100

 

 

1,106,622

 

               

New York City, New York, City Housing Development
Corporation, M/F Housing Revenue Bonds, AMT,
Series A, 5.50%, 11/01/34

 

 

2,500

 

 

2,338,900

 

               

New York City, New York, City IDA, PILOT Revenue Bonds:

 

 

 

 

 

 

 

(Queens Baseball Stadium Project), 5%, 1/01/39 (d)

 

 

250

 

 

242,765

 

(Queens Baseball Stadium Project), 5%, 1/01/46 (d)

 

 

150

 

 

144,115

 

(Yankee Stadium Project), 5%, 3/01/46 (c)

 

 

500

 

 

477,945

 

               

New York City, New York, City IDA, Special Facility Revenue Bonds, AMT (e):

 

 

 

 

 

 

 

(American Airlines, Inc.—JFK International Airport),
7.625%, 8/01/25

 

 

750

 

 

675,038

 

(Continental Airlines Inc. Project), 7.75%, 8/01/31

 

 

1,000

 

 

892,670

 

               

New York City, New York, City Municipal Water Finance
Authority, Second General Resolution, Water and Sewer
System Revenue Bonds, Series AA, 4.50%, 6/15/37 (b)

 

 

250

 

 

233,180

 

               

New York City, New York, City Municipal Water Finance Authority, Water and Sewer System Revenue Bonds, Series A:

 

 

 

 

 

 

 

5.25%, 6/15/11 (a)(c)

 

 

2,500

 

 

2,703,425

 

4.25%, 6/15/33

 

 

250

 

 

227,643

 

               

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Refunding Bonds, Series S-1, 4.50%,
1/15/38

 

 

250

 

 

232,663

 

               

New York City, New York, GO, Series D, 5.375%, 6/01/32

 

 

2,040

 

 

2,074,517

 

               

New York City, New York, IDA, Civic Facility Revenue Bonds
(Lycee Francais de New York Project), Series A, 5.50%,
6/01/15 (f)

 

 

250

 

 

251,578

 

               

New York Convention Center Development Corporation,
New York, Revenue Bonds (Hotel Unit Fee Secured),
5%, 11/15/44 (d)

 

 

1,000

 

 

973,340

 

               

New York Counties Tobacco Trust III, Tobacco Settlement
Pass-Through Bonds, 6%, 6/01/43

 

 

1,445

 

 

1,429,221

 

               

New York Liberty Development Corporation Revenue Bonds
(National Sports Museum Project), Series A,
6.125%, 2/15/19

 

 

385

 

 

340,698

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New York (concluded)

 

 

 

 

 

 

 

               

New York State Dormitory Authority, Consolidated Fourth
General Resolution Revenue Bonds (City University
System), Series A, 5.25%, 7/01/11 (a)

 

$

2,215

 

$

2,396,054

 

               

New York State Dormitory Authority, Non-State Supported
Debt, Lease Revenue Bonds (Municipal Health Facilities
Improvement Program), Sub-Series 2-4, 4.75%, 1/15/30

 

 

500

 

 

486,875

 

               

New York State Dormitory Authority, Non-State Supported Debt Revenue Bonds, Series B:

 

 

 

 

 

 

 

(Fordham University), 5%, 7/01/38 (g)

 

 

250

 

 

252,305

 

(Manhattan College), 5.30%, 7/01/37 (h)

 

 

200

 

 

197,366

 

(New York University Hospitals Center), 5.625%, 7/01/37

 

 

260

 

 

252,790

 

               

New York State Dormitory Authority, Non-State Supported
Debt, Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Mount Sinai School of Medicine of New York University),
5%, 7/01/35 (b)

 

 

150

 

 

147,594

 

(School Districts Financing Program), Series B,
5%, 4/01/36 (i)

 

 

500

 

 

507,210

 

               

New York State Dormitory Authority Revenue Bonds:

 

 

 

 

 

 

 

(Iona College), 5.125%, 7/01/32 (j)

 

 

2,500

 

 

2,457,600

 

(Willow Towers Inc. Project), 5.40%, 2/01/34 (k)

 

 

2,500

 

 

2,570,900

 

               

New York State Dormitory Authority, State Supported Debt
Revenue Bonds (Mental Health Services Facilities),
Series B, 5%, 2/15/33 (i)

 

 

350

 

 

352,177

 

               

New York State Environmental Facilities Corporation, State
Clean Water and Drinking Revenue Refunding Bonds
(New York City Water Project), Series D, 5.125%, 6/15/31

 

 

2,750

 

 

2,790,947

 

               

New York State Urban Development Corporation, Personal
Income Tax Revenue Bonds:

 

 

 

 

 

 

 

Series A, 5.25%, 3/15/12 (a)

 

 

5,000

 

 

5,475,300

 

Series B, 5%, 3/15/37

 

 

1,000

 

 

1,012,460

 

(State Facilities), Series A-1, 5.25%, 3/15/34 (c)

 

 

100

 

 

102,141

 

               

Port Authority of New York and New Jersey, Consolidated
Revenue Bonds, AMT, 126th Series, 5.25%, 5/15/37 (c)

 

 

2,750

 

 

2,705,698

 

               

Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Continental Airlines, Inc.—LaGuardia
Project), AMT, 9.125%, 12/01/15

 

 

2,475

 

 

2,483,786

 

               

Saratoga County, New York, IDA, Civic Facility Revenue Bonds
(The Saratoga Hospital Project), Series B, 5.25%, 12/01/32

 

 

200

 

 

188,758

 

               

Suffolk County, New York, IDA, Continuing Care and
Retirement, Revenue Refunding Bonds (Jeffersons Ferry
Project), 5%, 11/01/28

 

 

260

 

 

232,929

 

               

Suffolk County, New York, IDA, IDR (Keyspan-Port Jefferson),
AMT, 5.25%, 6/01/27

 

 

500

 

 

465,520

 

               

TSASC, Inc., New York, TFABS, Series 1, 5.75%, 7/15/12 (a)

 

 

3,000

 

 

3,350,580

 

 

 

 

 

 

     

 

 

 

 

 

 

50,534,825

 

               

Multi-State—7.0%

 

 

 

 

 

 

 

               

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (l)(m)

 

 

2,500

 

 

2,827,550

 

               

Guam—0.4%

 

 

 

 

 

 

 

               

Guam Economic Development and Commerce Authority,
Tobacco Settlement Asset-Backed Revenue Refunding
Bonds, 5.625%, 6/01/47

 

 

200

 

 

185,506

 

               

Puerto Rico—17.3%

 

 

 

 

 

 

 

               

Children’s Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds, 5.625%, 5/15/43

 

 

500

 

 

464,160

 

               

Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds,
Series D, 5.25%, 7/01/12 (a)

 

 

750

 

 

811,860

 

               

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

45




 

 

 


 

Schedule of Investments (concluded)

 

BlackRock New York Municipal Bond Trust (BQH)

 

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

Puerto Rico—(concluded)

 

 

 

 

 

 

 

               

Puerto Rico Commonwealth Infrastructure Financing Authority,
Special Tax and Capital Appreciation Revenue Bonds,
Series A (d)(n):

 

 

 

 

 

 

 

4.34%, 7/01/37

 

$

2,000

 

$

382,600

 

5.009%, 7/01/44

 

 

2,000

 

 

249,920

 

               

Puerto Rico Commonwealth, Public Improvement, GO, Series A,
5.125%, 7/01/31

 

 

1,825

 

 

1,785,215

 

               

Puerto Rico Housing Financing Authority, Capital Funding
Program, Subordinate Revenue Refunding Bonds, 5.125%,
12/01/27

 

 

500

 

 

492,445

 

               

Puerto Rico Public Buildings Authority, Government Facilities
Revenue Refunding Bonds, Series D:

 

 

 

 

 

 

 

5.25%, 7/01/12 (a)

 

 

1,980

 

 

2,135,113

 

5.25%, 7/01/27

 

 

720

 

 

715,687

 

 

 

 

 

 

     

 

 

 

 

 

 

7,037,000

 

               

Total Municipal Bonds—149.2%

 

 

 

 

 

60,584,881

 

               

Municipal Bonds Transferred to
Tender Option Bond Trusts (o)

 

 

 

 

 

 

 

               

New York—6.1%

 

 

 

 

 

 

 

               

New York State Mortgage Agency Revenue Bonds, AMT,
Series 101, 5.40%, 4/01/32

 

 

2,684

 

 

2,488,035

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—6.1%

 

 

 

 

 

2,488,035

 

               

Total Long-Term Investments (Cost—$61,865,746)—155.3%

 

 

 

 

 

63,072,916

 

               

 

 

 

 

 

 

 

 


Short-Term Securities

 

Shares

 

 

 

 

             

CMA New York Municipal Money Fund, 1.31% (p)(q)

 

 

1,128,594

 

 

1,128,594

 

               

Total Short-Term Securities (Cost—$1,128,594)—2.8%

 

 

 

 

 

1,128,594

 

               

Total Investments (Cost—$62,994,340*)—158.1%

 

 

 

 

 

64,201,510

 

Other Assets Less Liabilities—1.5%

 

 

 

 

 

608,374

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable—(4.4)%

 

 

 

 

 

(1,796,848

)

Preferred Shares, at Redemption Value—(55.2)%

 

 

 

 

 

(22,410,097

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

40,602,939

 

 

 

 

 

 

     

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

61,113,535

 

 

 

 

 

 

 

     

 

Gross unrealized appreciation

 

 

 

 

$

2,576,602

 

 

Gross unrealized depreciation

 

 

 

 

 

(1,277,371

)

 

 

 

 

 

 

     

 

Net unrealized appreciation

 

 

 

 

$

1,299,231

 

 

 

 

 

 

 

     

 

 

(a)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(b)

MBIA Insured.

(c)

FGIC Insured.

(d)

AMBAC Insured.

(e)

Variable rate security. Rate shown is as of report date. Maturity shown is final maturity date.

(f)

ACA Insured.

(g)

Assured Guaranty Insured.

(h)

Radian Insured.

(i)

FSA Insured.

(j)

XL Capital Insured.

(k)

GNMA Collateralized.

(l)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(m)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(n)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(o)

Securities represents bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(p)

Represents the current yield as of report date.

(q)

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


 

 

 

 

 

 

 

 

               

Affiliate

 

Net Activity

 

Income

 

           

CMA New York Municipal Money Fund

 

 

621,442

 

$

22,038

 

               

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

46

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

 

Schedule of Investments August 31, 2008

BlackRock New York Municipal Income Trust II (BFY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

               

New York—145.5%

 

 

 

 

 

 

 

               

Albany, New York, IDA, Civic Facility Revenue Bonds (New
Covenant Charter School Project), Series A:

 

 

 

 

 

 

 

7%, 5/01/25

 

$

345

 

$

270,118

 

7%, 5/01/35

 

 

220

 

 

166,800

 

               

Clarence, New York, IDA, Civic Facility Revenue Bonds (Bristol
Village Project), 6%, 1/20/44 (a)

 

 

1,700

 

 

1,780,478

 

               

Dutchess County, New York, IDA, Civic Facility Revenue Bonds
(Vassar College Project), 5.35%, 8/01/11 (b)

 

 

4,000

 

 

4,383,440

 

               

Dutchess County, New York, IDA, Civic Facility Revenue
Refunding Bonds (Bard College), Series A-2, 4.50%, 8/01/36

 

 

755

 

 

681,682

 

               

Essex County, New York, IDA, Solid Waste Disposal, Revenue
Refunding Bonds (International Paper Company), AMT,
Series A, 5.50%, 10/01/26

 

 

625

 

 

535,319

 

               

Genesee County, New York, IDA, Civic Facility Revenue
Refunding Bonds (United Memorial Medical Center
Project), 5%, 12/01/27

 

 

250

 

 

207,918

 

               

Geneva, New York, IDA, Civic Facility Revenue Refunding
Bonds (Hobart and William Smith Project), Series A,
5.375%, 2/01/33

 

 

3,250

 

 

3,314,447

 

               

Herkimer County, New York, IDA, Civic Facility Revenue Bonds
(Herkimer College Foundation Inc.), 6.25%, 8/01/34

 

 

385

 

 

383,017

 

               

Long Island Power Authority, New York, Electric System
Revenue Bonds, 5.04%, 6/01/28 (c)(d)

 

 

3,515

 

 

1,324,979

 

               

Metropolitan Transportation Authority, New York, Dedicated
Tax Fund Revenue Refunding Bonds, Series A,
5%, 11/15/30

 

 

5,000

 

 

5,048,750

 

               

Metropolitan Transportation Authority, New York, Revenue
Refunding Bonds, Series A, 5.25%, 11/15/31 (e)

 

 

1,250

 

 

1,258,337

 

               

Metropolitan Transportation Authority, New York, Service
Contract Revenue Refunding Bonds, Series A, 5.125%,
1/01/29

 

 

5,000

 

 

5,038,600

 

               

Metropolitan Transportation Authority, New York, Transportation
Revenue Refunding Bonds, Series F, 5%, 11/15/35

 

 

1,000

 

 

982,410

 

               

New York City, New York, City Housing Development Corporation,
M/F Housing Revenue Bonds, AMT, Series J-2, 4.75%,
11/01/27

 

 

1,420

 

 

1,251,418

 

               

New York City, New York, City IDA, Mortgage Revenue Bonds
(Eger Harbor House Inc. Project), Series A (a):

 

 

 

 

 

 

 

4.95%, 11/20/32

 

 

980

 

 

956,676

 

5.875%, 5/20/44

 

 

975

 

 

1,025,719

 

               

New York City, New York, City IDA, PILOT Revenue Bonds
(Queens Baseball Stadium Project) (f):

 

 

 

 

 

 

 

5%, 1/01/39

 

 

500

 

 

485,530

 

5%, 1/01/46

 

 

2,050

 

 

1,969,578

 

               

New York City, New York, City IDA, Revenue Bonds
(IAC/InterActiveCorp Project), 5%, 9/01/35

 

 

1,000

 

 

818,300

 

               

New York City, New York, City IDA, Special Facility
Revenue Bonds, AMT (g):

 

 

 

 

 

 

 

(American Airlines, Inc. - JFK International Airport),
7.625%, 8/01/25

 

 

1,600

 

 

1,440,080

 

(Continental Airlines Inc. Project),
7.75%, 8/01/31

 

 

1,500

 

 

1,339,005

 

               

New York City, New York, City Municipal Water Finance
Authority, Second General Resolution, Water and Sewer
System Revenue Bonds, Series AA, 4.50%, 6/15/37 (h)

 

 

850

 

 

792,812

 

               

New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Revenue Refunding
Bonds, Series A, 5.125%, 6/15/34

 

 

5,000

 

 

5,048,500

 

               

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

               

New York (continued)

 

 

 

 

 

 

 

               

New York City, New York, City Transit Authority, Metropolitan
Transportation Authority, Triborough COP, Series A,
5.25%, 1/01/10 (b)(f)

 

$

5,000

 

$

5,269,700

 

               

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Bonds, Series S-2 (e):

 

 

 

 

 

 

 

4.50%, 1/15/31

 

 

2,500

 

 

2,368,125

 

4.25%, 1/15/34

 

 

250

 

 

223,592

 

               

New York City, New York, City Transitional Finance Authority,
Building Aid Revenue Refunding Bonds, Series S-1,
4.50%, 1/15/38

 

 

500

 

 

465,325

 

               

New York City, New York, City Transitional Finance Authority,
Future Tax Secured, Revenue Refunding Bonds, Series B,
5%, 11/01/27

 

 

5,000

 

 

5,080,050

 

               

New York City, New York, GO, Series B, 5.75%, 12/01/11 (b)

 

 

3,000

 

 

3,320,040

 

               

New York City, New York, IDA, Civic Facility Revenue Bonds
(Lycee Francais de New York Project), Series A,
5.375%, 6/01/23 (i)

 

 

1,500

 

 

1,388,160

 

               

New York City, New York, IDA, Civic Facility Revenue
Refunding Bonds (Polytechnic University), 5.25%,
11/01/37 (i)

 

 

460

 

 

398,581

 

               

New York Convention Center Development Corporation, New York,
Revenue Bonds (Hotel Unit Fee Secured), 5%, 11/15/35 (f)

 

 

3,000

 

 

2,951,550

 

               

New York Counties Tobacco Trust III, Tobacco Settlement
Pass-Through Bonds, 6%, 6/01/43

 

 

2,535

 

 

2,507,318

 

               

New York Liberty Development Corporation Revenue Bonds
(National Sports Museum Project), Series A,
6.125%, 2/15/19

 

 

675

 

 

597,328

 

               

New York State Dormitory Authority, Mortgage Hospital Revenue
Bonds (Saint Barnabas Hospital), Series A, 5%, 2/01/31 (f)(j)

 

 

1,500

 

 

1,483,980

 

               

New York State Dormitory Authority, Non-State Supported Debt,
Lease Revenue Bonds (Municipal Health Facilities
Improvement Program), Sub-Series 2-4, 4.75%, 1/15/30

 

 

1,000

 

 

973,750

 

               

New York State Dormitory Authority, Non-State Supported
Debt, Revenue Bonds:

 

 

 

 

 

 

 

(Fordham University), Series B, 5%, 7/01/38 (k)

 

 

500

 

 

504,610

 

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

 

 

250

 

 

246,708

 

(New York Hospital Medical Center of Queens),
4.75%, 2/15/37 (j)

 

 

315

 

 

300,806

 

(New York University Hospitals Center), Series B,
5.625%, 7/01/37

 

 

530

 

 

515,303

 

               

New York State Dormitory Authority, Non-State Supported Debt,
Revenue Refunding Bonds:

 

 

 

 

 

 

 

(Mount Sinai School of Medicine of New York University),
5%, 7/01/35 (h)

 

 

500

 

 

491,980

 

(School Districts Financing Program), Series B,
5%, 4/01/36 (c)

 

 

750

 

 

760,815

 

               

New York State Dormitory Authority, Revenue Bonds:

 

 

 

 

 

 

 

(Brooklyn Law School), Series B, 5.125%, 7/01/30 (m)

 

 

2,000

 

 

2,003,680

 

(New School University), 5%, 7/01/31 (h)

 

 

1,425

 

 

1,417,219

 

               

New York State Dormitory Authority, Revenue Refunding Bonds
(Kateri Residence), 5%, 7/01/22

 

 

2,000

 

 

2,057,820

 

               

New York State Dormitory Authority, State Supported Debt
Revenue Bonds (Mental Health Services Facilities),
Series A, 5%, 2/15/33 (c)

 

 

700

 

 

703,808

 

               

New York State Energy Research and Development Authority,
Facilities Revenue Bonds (Consolidated Edison Company
of New York, Inc. Project), AMT, 4.70%, 6/01/36 (g)

 

 

5,500

 

 

5,501,210

 

               

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

47



 

 


 

Schedule of Investments (concluded)

BlackRock New York Municipal Income Trust II (BFY)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

New York (concluded)

 

 

 

 

 

 

 

               

New York State Energy Research and Development Authority,
Gas Facilities Revenue Refunding Bonds (Brooklyn Union
Gas Company/Keyspan), AMT, Series A, 4.70%, 2/01/24 (e)

 

$

1,500

 

$

1,395,150

 

               

New York State Environmental Facilities Corporation, State
Clean Water and Drinking Water, Revenue Refunding
Bonds (New York City Municipal Water Finance Authority),
Series A, 5%, 6/15/37

 

 

1,500

 

 

1,526,640

 

               

New York State Urban Development Corporation, Personal
Income Tax Revenue Bonds, Series B, 5%, 3/15/35

 

 

2,000

 

 

2,023,320

 

               

Port Authority of New York and New Jersey, Special Obligation
Revenue Bonds (Continental Airlines, Inc. - LaGuardia
Project), AMT, 9.125%, 12/01/15

 

 

3,500

 

 

3,512,425

 

               

Saratoga County, New York, IDA, Civic Facility Revenue Bonds
(The Saratoga Hospital Project), Series B, 5.25%, 12/01/32

 

 

350

 

 

330,327

 

               

Suffolk County, New York, IDA, Continuing Care and Retirement,
Revenue Refunding Bonds (Jeffersons Ferry Project),
5%, 11/01/28

 

 

450

 

 

403,146

 

               

Suffolk County, New York, IDA, IDR (Keyspan-Port Jefferson),
AMT, 5.25%, 6/01/27

 

 

2,500

 

 

2,327,600

 

               

TSASC, Inc., New York, TFABS, Series 1, 5.75%, 7/15/12 (b)

 

 

8,000

 

 

8,934,880

 

               

Triborough Bridge and Tunnel Authority, New York, Revenue
Refunding Bonds, Series A, 5%, 1/01/32

 

 

150

 

 

151,044

 

 

 

 

 

 

     

 

 

 

 

 

 

102,639,903

 

               

Multi-State—6.0%

 

 

 

 

 

 

 

               

Charter Mac Equity Issuer Trust (n)(o):

 

 

 

 

 

 

 

5.75%, 4/30/15

 

 

500

 

 

527,900

 

6%, 4/30/15

 

 

1,500

 

 

1,598,385

 

6%, 4/30/19

 

 

1,000

 

 

1,057,840

 

6.30%, 4/30/19

 

 

1,000

 

 

1,075,390

 

 

 

 

 

 

     

 

 

 

 

 

 

4,259,515

 

               

Guam—0.5%

 

 

 

 

 

 

 

               

Guam Economic Development and Commerce Authority,
Tobacco Settlement Asset-Backed Revenue Refunding
Bonds, 5.625%, 6/01/47

 

 

375

 

 

347,824

 

               

Puerto Rico—6.4%

 

 

 

 

 

 

 

               

Children’s Trust Fund Project of Puerto Rico, Tobacco Settlement
Revenue Refunding Bonds, 5.625%, 5/15/43

 

 

500

 

 

464,160

 

               

Puerto Rico Commonwealth Highway and Transportation
Authority, Transportation Revenue Refunding Bonds,
Series D, 5.375%, 7/01/12 (b)

 

 

2,000

 

 

2,173,980

 

               

Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series VV, 5.25%, 7/01/29 (h)

 

 

500

 

 

523,995

 

               

Puerto Rico Housing Financing Authority, Capital Funding
Program, Subordinate Revenue Refunding Bonds,
5.125%, 12/01/27

 

 

1,000

 

 

984,890

 

               

Puerto Rico Sales Tax Financing Corporation, Sales Tax
Revenue Refunding Bonds, Series A, 5.14%, 8/01/54 (d)(f)

 

 

5,000

 

 

354,800

 

 

 

 

 

 

     

 

 

 

 

 

 

4,501,825

 

               

Total Long-Term Investments (Cost—$110,870,744)—158.4%

 

 

 

 

 

111,749,067

 

               

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

Value

 

           

CMA New York Municipal Money Fund, 1.31% (p)(q)

 

 

846,434

 

$

846,434

 

               

Total Short-Term Securities (Cost—$846,434)—1.2%

 

 

 

 

 

846,434

 

               

Total Investments (Cost—$111,717,178*)—159.6%

 

 

 

 

 

112,595,501

 

Other Assets Less Liabilities—3.7%

 

 

 

 

 

2,615,438

 

Preferred Shares, at Redemption Value—(63.3)%

 

 

 

 

 

(44,666,955

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

70,543,984

 

 

 

 

 

 

     

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

111,554,362

 

 

 

     

Gross unrealized appreciation

 

$

3,218,577

 

Gross unrealized depreciation

 

 

(2,177,438

)

 

 

     

Net unrealized appreciation

 

$

1,041,139

 

 

 

     

(a)

GNMA Collateralized.

(b)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(c)

FSA Insured.

(d)

Represents a zero-coupon bond. Rate shown reflects the effective yield at the time of purchase.

(e)

FGIC Insured.

(f)

AMBAC Insured.

(g)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(h)

MBIA Insured.

(i)

ACA Insured.

(j)

FHA Insured.

(k)

Assured Guaranty Insured.

(l)

Radian Insured.

(m)

XL Capital Insured.

(n)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(o)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

(p)

Represents the current yield as of report date.

(q)

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


 

 

 

 

 

 

 

 

           

Affiliate

 

Net Activity

 

Income

 

               

CMA New York Municipal Money Fund

 

 

(64,441

)

$36,421

 

               

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

48

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

 

 

Schedule of Investments August 31, 2008

BlackRock Virginia Municipal Bond Trust (BHV)
(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

           

District of Columbia—7.1%

 

 

 

 

 

 

 

               

Metropolitan Washington Airports Authority, D.C., Airport
System Revenue Bonds, AMT:

 

 

 

 

 

 

 

Series A, 5.25%, 10/01/32 (a)

 

$

1,500

 

$

1,423,365

 

Series B, 5%, 10/01/34 (b)

 

 

250

 

 

230,925

 

 

 

 

 

 

     

 

 

 

 

 

 

1,654,290

 

               

Virginia—127.7%

 

 

 

 

 

 

 

               

Arlington County, Virginia, IDA, Hospital Facilities Revenue
Bonds (Virginia Hospital Center - Arlington Health System),
5.25% due 7/01/2011 (c)

 

 

2,150

 

 

2,335,975

 

               

Celebrate North Community Development Authority, Virginia,
Special Assessment Revenue Bonds, Series B,
6.75%, 3/01/34

 

 

1,500

 

 

1,454,820

 

               

Chesterfield County, Virginia, EDA, Solid Waste and Sewer
Disposal Revenue Bonds (Virginia Electric Power Company),
AMT, Series A, 5.60%, 11/01/31

 

 

500

 

 

453,700

 

               

Danville, Virginia, IDA, Hospital Revenue Refunding Bonds
(Danville Regional Medical Center), 5.25%, 10/01/28 (d)(e)

 

 

1,500

 

 

1,628,475

 

               

Dulles Town Center, Virginia, Community Development
Authority, Special Assessment Tax (Dulles Town Center
Project), 6.25%, 3/01/26

 

 

970

 

 

964,898

 

               

Fairfax County, Virginia, EDA, Residential Care Facilities,
Mortgage Revenue Refunding Bonds (Goodwin House, Inc.),
5.125%, 10/01/37

 

 

1,000

 

 

882,720

 

               

Fairfax County, Virginia, Water Authority, Water Revenue
Refunding Bonds, 5%, 4/01/27

 

 

1,205

 

 

1,219,930

 

               

Hampton, Virginia, Public Improvement, GO, 5%, 4/01/20

 

 

1,000

 

 

1,046,570

 

               

Henrico County, Virginia, EDA, Revenue Refunding Bonds
(Bon Secours Health System, Inc.), Series A:

 

 

 

 

 

 

 

5.60% due 11/15/12 (c)

 

 

60

 

 

66,836

 

5.60%, 11/15/30

 

 

1,440

 

 

1,448,496

 

               

Isle Wight County, Virginia, IDA, Environmental Improvement
Revenue Bonds, AMT, Series A, 5.70%, 11/01/27

 

 

1,300

 

 

1,134,107

 

               

Norfolk, Virginia, Airport Authority Revenue Bonds, Series A,
5.125%, 7/01/31 (a)

 

 

1,500

 

 

1,446,120

 

               

Peninsula Ports Authority, Virginia, Residential Care Facilities,
Revenue Refunding Bonds (Baptist Homes), Series C,
5.40%, 12/01/33

 

 

500

 

 

407,275

 

               

Prince William County, Virginia, Lease Participation Certificates,
5%, 12/01/21

 

 

1,275

 

 

1,315,379

 

               

Richmond, Virginia, Metropolitan Authority, Expressway
Revenue Refunding Bonds, 5.25%, 7/15/22 (a)

 

 

1,250

 

 

1,288,138

 

               

Richmond, Virginia, Public Utilities Revenue Refunding
Bonds, 5% due 1/15/2012 (b)(c)

 

 

3,000

 

 

3,237,870

 

               

The Shops at White Oak Village Community Development
Authority, Virginia, Special Assessment Revenue Bonds,
5.30%, 3/01/17

 

 

250

 

 

239,595

 

               

Virginia College Building Authority, Educational Facilities
Revenue Bonds (21st Century College and Equipment
Programs), VRDN, Series B, 2.35%, 2/01/26 (f)(k)

 

 

10

 

 

10,000

 

               

Virginia College Building Authority, Educational Facilities
Revenue Refunding Bonds (Washington and Lee University
Project) (g):

 

 

 

 

 

 

 

5.25%, 1/01/26

 

 

500

 

 

547,950

 

5.25%, 1/01/31

 

 

1,000

 

 

1,068,580

 

               

Virginia Port Authority, Port Facilities Revenue Bonds, AMT,
4.75%, 7/01/31 (a)

 

 

500

 

 

434,540

 

               

 

 

 

 

 

 

 

 

 

 

Par

 

 

 

 

Municipal Bonds

 

(000)

 

Value

 

           

Virginia (concluded)

 

 

 

 

 

 

 

               

Virginia Small Business Financing Authority, Hospital
Revenue Bonds (Carilion Clinic Center Project), VRDN,
Series B, 2.35%, 7/01/42 (f)(k)

 

$

2,200

 

$

2,200,000

 

               

Virginia Small Business Financing Authority, Revenue
Refunding Bonds (Children’s Hospital of the King’s
Daughters Project), VRDN, 1.83%, 1/01/36 (f)(k)

 

 

300

 

 

300,000

 

               

Virginia State, HDA, Commonwealth Mortgage Revenue
Bonds, Series H, Sub-Series H-1, 5.375%, 7/01/36 (g)

 

 

3,000

 

 

2,974,080

 

               

Virginia State Resources Authority, Infrastructure Revenue
Bonds (Pooled Loan Program), Series A, 5.125%, 5/01/27

 

 

635

 

 

647,827

 

               

Virginia State Resources Authority, Water and Sewer System
Revenue Bonds (Frederick County Sanitation Authority
Project), 5.20%, 10/01/10 (c)

 

 

1,000

 

 

1,060,900

 

 

 

 

 

 

     

 

 

 

 

 

 

29,814,781

 

               

Multi-State—7.3%

 

 

 

 

 

 

 

               

Charter Mac Equity Issuer Trust, 7.20%, 10/31/52 (h)(i)

 

 

1,500

 

 

1,696,530

 

               

Puerto Rico—5.1%

 

 

 

 

 

 

 

               

Children’s Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds,
5.375%, 5/15/33

 

 

1,295

 

 

1,199,908

 

               

Total Municipal Bonds—147.2%

 

 

 

 

 

34,365,509

 

               

 

 


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (j)

 

 

 

 

 

 

 

               

Virginia—8.8%

 

 

 

 

 

 

 

               

University of Virginia, Revenue Refunding Bonds, 5%, 6/01/40

 

 

2,000

 

 

2,046,612

 

               

Total Municipal Bonds Transferred to
Tender Option Bond Trusts—8.8%

 

 

 

 

 

2,046,612

 

               

Total Investments (Cost—$35,788,903*)—156.0%

 

 

 

 

 

36,412,121

 

Other Assets Less Liabilities—1.9%

 

 

 

 

 

449,897

 

Liability for Trust Certificates, Including Interest Expense
and Fees Payable—(5.8)%

 

 

 

 

 

(1,336,355

)

Preferred Shares, at Redemption Value—(52.1)%

 

 

 

 

 

(12,178,740

)

 

 

 

 

 

     

Net Assets Applicable to Common Shares—100.0%

 

 

 

 

$

23,346,923

 

 

 

 

 

 

     

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

49



 

 


 

 

 

Schedule of Investments (concluded)

BlackRock Virginia Municipal Bond Trust (BHV)

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2008, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

 

Aggregate cost

 

$

34,383,614

 

 

 

 

     

 

Gross unrealized appreciation

 

$

1,336,467

 

 

Gross unrealized depreciation

 

 

(637,960

)

 

 

 

     

 

Net unrealized appreciation

 

$

698,507

 

 

 

 

     

 

 

(a)

FGIC Insured.

(b)

FSA Insured.

(c)

U.S. government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

(d)

AMBAC Insured.

(e)

Security is collateralized by Municipal or U.S. Treasury Obligations.

(f)

Variable rate security. Rate shown is as of report date. Maturity shown is the final maturity date.

(g)

MBIA Insured.

(h)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(i)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity and is subject to mandatory redemption at maturity.

(j)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

(k)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security.

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

50

ANNUAL REPORT

AUGUST 31, 2008

 



[This page intentionally left blank]


 

 


 

Statements of Assets and Liabilities

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31, 2008

 

BlackRock
Insured
Municipal
Income
Investment Trust
(BAF)

 

BlackRock
Insured
Municipal
Income Trust
(BYM)

 

BlackRock
Municipal
Bond
Investment Trust
(BIE)

 

BlackRock
Municipal
Bond Trust
(BBK)

 

                   

Assets

Investments at value - unaffiliated1

 

$

195,521,888

 

$

589,900,115

 

$

77,125,686

 

$

229,857,053

 

Investments at value - affiliated2

 

 

4,278,745

 

 

4,161,064

 

 

2,268,187

 

 

1,900,427

 

Cash

 

 

67,130

 

 

59,741

 

 

91,940

 

 

3,204

 

Investments sold receivable

 

 

 

 

500,792

 

 

 

 

9,010,628

 

Interest receivable

 

 

2,578,675

 

 

6,106,972

 

 

1,131,101

 

 

2,818,771

 

Dividends receivable

 

 

77

 

 

289

 

 

45

 

 

115

 

Other assets

 

 

14,719

 

 

55,245

 

 

4,734

 

 

21,843

 

Prepaid expenses

 

 

12,096

 

 

36,546

 

 

4,423

 

 

14,850

 

 

 

                       

Total assets

 

 

202,473,330

 

 

600,820,764

 

 

80,626,116

 

 

243,626,891

 

 

 

                       

 

Accrued Liabilities

Unrealized depreciation on swaps

 

 

127,751

 

 

1,416,803

 

 

 

 

658,710

 

Investments purchased payable

 

 

1,216,201

 

 

 

 

972,961

 

 

7,342,162

 

Interest expense and fees payable

 

 

155,585

 

 

328,456

 

 

14,405

 

 

38,947

 

Income dividends payable - Common Shares

 

 

506,575

 

 

1,599,068

 

 

229,334

 

 

748,644

 

Investment advisory fees payable

 

 

67,135

 

 

207,069

 

 

29,745

 

 

91,604

 

Officer’s and Trustees’ fees payable

 

 

15,626

 

 

57,029

 

 

5,220

 

 

22,809

 

Other affiliates payable

 

 

1,300

 

 

3,881

 

 

515

 

 

1,654

 

Other accrued expenses payable

 

 

75,842

 

 

121,866

 

 

61,004

 

 

110,302

 

 

 

                       

Total accrued liabilities

 

 

2,166,015

 

 

3,734,172

 

 

1,313,184

 

 

9,014,832

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Liabilities

Trust certificates3

 

 

31,604,874

 

 

78,959,602

 

 

3,596,361

 

 

9,965,454

 

 

 

                       

Total Liabilities

 

 

33,770,889

 

 

82,693,774

 

 

4,909,545

 

 

18,980,286

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares at Redemption Value

Preferred Shares at $0.001 par value per share at $25,000 per share liquidation preference plus unpaid dividends4

 

 

44,397,229

 

 

149,994,479

 

 

26,184,939

 

 

80,530,507

 

 

 

                       

Net Assets Applicable to Common Shareholders

 

$

124,305,212

 

$

368,132,511

 

$

49,531,632

 

$

144,116,098

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shareholders Consist of

Common Shares, par value $0.001 per share5

 

$

8,734

 

$

26,214

 

$

3,333

 

$

10,326

 

Paid-in capital in excess of par

 

 

123,914,893

 

 

372,078,562

 

 

47,234,601

 

 

146,876,154

 

Undistributed net investment income

 

 

810,530

 

 

3,019,949

 

 

398,922

 

 

985,580

 

Accumulated net realized loss

 

 

(1,094,968

)

 

(9,556,260

)

 

(81,759

)

 

(2,304,373

)

Net unrealized appreciation/depreciation

 

 

666,023

 

 

2,564,046

 

 

1,976,535

 

 

(1,451,589

)

 

 

                       

Net Assets Applicable to Common Shareholders

 

$

124,305,212

 

$

368,132,511

 

$

49,531,632

 

$

144,116,098

 

 

 

                       

Net asset value per Common Share

 

$

14.23

 

$

14.04

 

$

14.86

 

$

13.96

 

 

 

                       

1 Investments at cost - unaffiliated

 

$

194,728,114

 

$

585,919,266

 

$

75,149,151

 

$

230,649,932

 

 

 

                       

2 Investments at cost - affiliated

 

$

4,278,745

 

$

4,161,064

 

$

2,268,187

 

$

1,900,427

 

 

 

                       

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

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Preferred Shares issued and outstanding

 

 

1,775

 

 

5,997

 

 

1,047

 

 

3,220

 

 

 

                       

5 Common Shares outstanding

 

 

8,734,048

 

 

26,214,222

 

 

3,333,337

 

 

10,326,123

 

 

 

                       

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

52

ANNUAL REPORT

AUGUST 31, 2008

 




 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31, 2008

 

BlackRock
Municipal
Income Trust II
(BLE)

 

BlackRock
California
Insured
Municipal
Income Trust
(BCK)

 

BlackRock
California
Municipal
Bond Trust
(BZA)

 

BlackRock
California
Municipal
Income Trust II
(BCL)

 

BlackRock
Maryland
Municipal
Bond Trust
(BZM)

 

BlackRock
New Jersey
Municipal
Bond Trust
(BLJ)

 

                                       

Assets

Investments at value - unaffiliated1

 

$

513,545,846

 

$

113,749,263

 

$

78,678,748

 

$

182,557,507

 

$

44,990,978

 

$

51,527,630

 

Investments at value - affiliated2

 

 

2,701,021

 

 

6,272,867

 

 

2,134,105

 

 

244

 

 

2,103,426

 

 

828,207

 

Cash

 

 

53,457

 

 

80,981

 

 

6,320

 

 

2,207,447

 

 

61,722

 

 

91,622

 

Investments sold receivable

 

 

1,600,574

 

 

 

 

 

 

 

 

 

 

 

Interest receivable

 

 

6,610,750

 

 

1,152,557

 

 

897,651

 

 

2,165,263

 

 

552,960

 

 

633,215

 

Dividends receivable

 

 

266

 

 

34

 

 

54

 

 

65

 

 

36

 

 

35

 

Other assets

 

 

50,705

 

 

6,537

 

 

6,381

 

 

12,466

 

 

6,924

 

 

6,657

 

Prepaid expenses

 

 

32,351

 

 

7,326

 

 

4,888

 

 

11,242

 

 

2,879

 

 

3,294

 

 

 

                                   

Total assets

 

 

524,594,970

 

 

121,269,565

 

 

81,728,147

 

 

186,954,234

 

 

47,718,925

 

 

53,090,660

 

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accrued Liabilities

Unrealized depreciation on swaps

 

 

1,655,090

 

 

 

 

 

 

375,543

 

 

 

 

 

Investments purchased payable

 

 

441,520

 

 

 

 

764,168

 

 

1,681,169

 

 

 

 

 

Interest expense and fees payable

 

 

161,080

 

 

43,720

 

 

9,481

 

 

55,555

 

 

6,313

 

 

3,992

 

Income dividends payable - Common Shares

 

 

1,527,675

 

 

295,573

 

 

211,399

 

 

455,988

 

 

133,484

 

 

162,266

 

Investment advisory fees payable

 

 

203,867

 

 

39,500

 

 

29,779

 

 

71,602

 

 

18,249

 

 

20,229

 

Officer’s and Trustees’ fees payable

 

 

52,369

 

 

6,980

 

 

6,806

 

 

13,678

 

 

7,326

 

 

7,052

 

Other affiliates payable

 

 

3,408

 

 

830

 

 

520

 

 

1,275

 

 

307

 

 

343

 

Other accrued expenses payable

 

 

144,460

 

 

75,781

 

 

66,163

 

 

79,745

 

 

61,742

 

 

73,349

 

 

 

                                   

Total accrued liabilities

 

 

4,189,469

 

 

462,384

 

 

1,088,316

 

 

2,734,555

 

 

227,421

 

 

267,231

 

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Liabilities

Trust certificates3

 

 

39,398,524

 

 

8,932,521

 

 

1,998,847

 

 

12,184,299

 

 

1,998,500

 

 

1,030,000

 

 

 

                                   

Total Liabilities

 

 

43,587,993

 

 

9,394,905

 

 

3,087,163

 

 

14,918,854

 

 

2,225,921

 

 

1,297,231

 

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Shares at Redemption Value

Preferred Shares at $0.001 par value per share at $25,000 per share liquidation preference plus unpaid dividends4

 

 

166,118,018

 

 

37,571,859

 

 

27,991,285

 

 

59,772,632

 

 

16,004,915

 

 

19,209,618

 

 

 

                                   

Net Assets Applicable to Common Shareholders

 

$

314,888,959

 

$

74,302,801

 

$

50,649,699

 

$

112,262,748

 

$

29,488,089

 

$

32,583,811

 

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shareholders Consist of

Common Shares, par value $0.001 per share5

 

$

23,147

 

$

5,278

 

$

3,410

 

$

8,000

 

$

2,041

 

$

2,302

 

Paid-in capital in excess of par

 

 

329,002,631

 

 

74,835,958

 

 

48,406,377

 

 

113,484,176

 

 

28,915,463

 

 

32,635,087

 

Undistributed net investment income

 

 

1,007,465

 

 

330,965

 

 

135,745

 

 

413,761

 

 

251,763

 

 

319,435

 

Accumulated net realized loss

 

 

(8,467,551

)

 

(1,414,271

)

 

(488,169

)

 

(3,826,444

)

 

(15,021

)

 

(274,415

)

Net unrealized appreciation/depreciation

 

 

(6,676,733

)

 

544,871

 

 

2,592,336

 

 

2,183,255

 

 

333,843

 

 

(98,598

)

 

 

                                   

Net Assets Applicable to Common Shareholders

 

$

314,888,959

 

$

74,302,801

 

$

50,649,699

 

$

112,262,748

 

$

29,488,089

 

$

32,583,811

 

 

 

                                   

Net asset value per Common Share

 

$

13.60

 

$

14.08

 

$

14.85

 

$

14.03

 

$

14.45

 

$

14.16

 

 

 

                                   

1 Investments at cost - unaffiliated

 

$

518,567,489

 

$

113,204,392

 

$

76,086,412

 

$

179,998,709

 

$

44,657,135

 

$

51,626,228

 

 

 

                                   

2 Investments at cost - affiliated

 

$

2,701,021

 

$

6,272,867

 

$

2,134,105

 

$

244

 

$

2,103,426

 

$

828,207

 

 

 

                                   

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Preferred Shares issued and outstanding

 

 

6,642

 

 

1,502

 

 

1,119

 

 

2,390

 

 

640

 

 

768

 

 

 

                                   

5 Common Shares outstanding

 

 

23,146,588

 

 

5,278,087

 

 

3,409,668

 

 

7,999,789

 

 

2,041,037

 

 

2,301,652

 

 

 

                                   

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

53



 

 


 

Statements of Assets and Liabilities (concluded)

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31, 2008

 

BlackRock
New York
Insured
Municipal
Income Trust
(BSE)

 

BlackRock
New York
Municipal
Bond Trust
(BQH)

 

BlackRock
New York
Municipal
Income Trust II
(BFY)

 

BlackRock
Virginia
Municipal
Bond Trust
(BHV)

 

                   

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

Investments at value - unaffiliated1

 

$

145,138,785

 

$

63,072,916

 

$

111,749,067

 

$

36,412,121

 

Investments at value - affiliated2

 

 

300

 

 

1,128,594

 

 

846,434

 

 

 

Cash

 

 

249,242

 

 

84,748

 

 

61,047

 

 

113,657

 

Investments sold receivable

 

 

 

 

 

 

1,632,800

 

 

 

Interest receivable

 

 

1,531,551

 

 

815,316

 

 

1,339,756

 

 

510,333

 

Dividends receivable

 

 

35

 

 

36

 

 

46

 

 

29

 

Other assets

 

 

6,584

 

 

6,887

 

 

8,694

 

 

5,559

 

Prepaid expenses

 

 

8,884

 

 

3,943

 

 

6,884

 

 

2,265

 

 

 

                       

Total assets

 

 

146,935,381

 

 

65,112,440

 

 

115,644,728

 

 

37,043,964

 

 

 

                       
                   

Accrued Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

Interest expense and fees payable

 

 

72,551

 

 

8,104

 

 

 

 

6,355

 

Income dividends payable - Common Shares

 

 

375,547

 

 

187,684

 

 

308,794

 

 

112,475

 

Investment advisory fees payable

 

 

51,114

 

 

25,205

 

 

44,592

 

 

14,467

 

Officer’s and Trustees’ fees payable

 

 

7,124

 

 

7,743

 

 

9,578

 

 

5,892

 

Other affiliates payable

 

 

952

 

 

426

 

 

752

 

 

243

 

Other accrued expenses payable

 

 

74,105

 

 

81,498

 

 

70,073

 

 

48,869

 

 

 

                       

Total accrued liabilities

 

 

581,393

 

 

310,660

 

 

433,789

 

 

188,301

 

 

 

                       
                   

Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

Trust certificates3

 

 

14,335,035

 

 

1,788,744

 

 

 

 

1,330,000

 

 

 

                       

Total Liabilities

 

 

14,916,428

 

 

2,099,404

 

 

433,789

 

 

1,518,301

 

 

 

                       
                   

Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

Preferred Shares at $0.001 par value per share at $25,000 per share liquidation preference plus unpaid dividends4

 

 

41,687,803

 

 

22,410,097

 

 

44,666,955

 

 

12,178,740

 

 

 

                       

Net Assets Applicable to Common Shareholders

 

$

90,331,150

 

$

40,602,939

 

$

70,543,984

 

$

23,346,923

 

 

 

                       
                   

Net Assets Applicable to Common Shareholders Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

Common Shares, par value $0.001 per share5

 

$

6,475

 

$

2,760

 

$

4,941

 

$

1,553

 

Paid-in capital in excess of par

 

 

91,845,967

 

 

39,181,450

 

 

70,053,876

 

 

22,041,587

 

Undistributed net investment income

 

 

757,900

 

 

265,371

 

 

664,858

 

 

433,606

 

Accumulated net realized gain (loss)

 

 

(831,958

)

 

(53,812

)

 

(1,058,014

)

 

246,959

 

Net unrealized appreciation/depreciation

 

 

(1,447,234

)

 

1,207,170

 

 

878,323

 

 

623,218

 

 

 

                       

Net Assets Applicable to Common Shareholders

 

$

90,331,150

 

$

40,602,939

 

$

70,543,984

 

$

23,346,923

 

 

 

                       

Net asset value per common share6

 

$

13.95

 

$

14.71

 

$

14.28

 

$

15.03

 

 

 

                       

1 Investments at cost - unaffiliated

 

$

146,586,019

 

$

61,865,746

 

$

110,870,744

 

$

35,788,903

 

 

 

                       

2 Investments at cost - affiliated

 

$

300

 

$

1,128,594

 

$

846,434

 

 

 

 

 

                       

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

 

 

 

 

 

 

 

 

 

 

 

 

 

4 Preferred Shares issued and outstanding

 

 

1,667

 

 

896

 

 

1,786

 

 

487

 

 

 

                       

5 Common Shares outstanding

 

 

6,474,946

 

 

2,760,221

 

 

4,940,705

 

 

1,552,916

 

 

 

                       

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

54

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Statements of Operations

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31, 2008

 

BlackRock
Insured
Municipal
Income
Investment Trust
(BAF)

 

BlackRock
Insured
Municipal
Income Trust
(BYM)

 

BlackRock
Municipal
Bond
Investment Trust
(BIE)

 

BlackRock
Municipal
Bond Trust
(BBK)

 

                   

Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

Interest

 

$

9,839,520

 

$

30,561,092

 

$

4,381,537

 

$

14,081,533

 

Income from affiliates

 

 

109,710

 

 

334,614

 

 

48,314

 

 

133,750

 

 

 

                       

Total income

 

 

9,949,230

 

 

30,895,706

 

 

4,429,851

 

 

14,215,283

 

 

 

                       
                   

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

Investment advisory

 

 

1,122,439

 

 

3,365,925

 

 

525,854

 

 

1,585,003

 

Commissions for Preferred Shares

 

 

176,084

 

 

538,411

 

 

73,613

 

 

224,139

 

Accounting services

 

 

35,970

 

 

65,214

 

 

19,114

 

 

43,024

 

Professional

 

 

93,357

 

 

162,135

 

 

70,089

 

 

100,735

 

Transfer agent

 

 

17,684

 

 

35,202

 

 

15,454

 

 

22,497

 

Printing

 

 

19,484

 

 

25,304

 

 

9,104

 

 

25,065

 

Officer and Trustees

 

 

14,568

 

 

41,936

 

 

7,390

 

 

16,234

 

Custodian

 

 

14,159

 

 

34,105

 

 

8,015

 

 

18,147

 

Registration

 

 

11,418

 

 

8,811

 

 

11,405

 

 

11,723

 

Miscellaneous

 

 

26,495

 

 

24,149

 

 

26,689

 

 

32,450

 

 

 

                       

Total expenses excluding interest expense and fees

 

 

1,531,658

 

 

4,301,192

 

 

766,727

 

 

2,079,017

 

Interest expense and fees1

 

 

178,465

 

 

467,385

 

 

19,918

 

 

56,850

 

 

 

                       

Total expenses

 

 

1,710,123

 

 

4,768,577

 

 

786,645

 

 

2,135,867

 

Less fees waived by advisor

 

 

(365,331

)

 

(1,002,347

)

 

(206,042

)

 

(580,931

)

Less fees paid indirectly

 

 

(265

)

 

(386

)

 

(123

)

 

(597

)

 

 

                       

Total expenses after waiver and fees paid indirectly

 

 

1,344,527

 

 

3,765,844

 

 

580,480

 

 

1,554,339

 

 

 

                       

Net investment income

 

 

8,604,703

 

 

27,129,862

 

 

3,849,371

 

 

12,660,944

 

 

 

                       
                   

Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(513,891

)

 

(2,196,685

)

 

483,558

 

 

(70,801

)

Futures and swaps

 

 

(228,500

)

 

(4,000,462

)

 

 

 

(2,226,703

)

 

 

                       

 

 

 

(742,391

)

 

(6,197,147

)

 

483,558

 

 

(2,297,504

)

 

 

                       

Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(3,221,187

)

 

(14,621,059

)

 

(2,151,902

)

 

(12,888,825

)

Swaps

 

 

(13,029

)

 

(507,398

)

 

 

 

(87,510

)

 

 

                       

 

 

 

(3,234,216

)

 

(15,128,457

)

 

(2,151,902

)

 

(12,976,335

)

 

 

                       

Total realized and unrealized loss

 

 

(3,976,607

)

 

(21,325,604

)

 

(1,668,344

)

 

(15,273,839

)

 

 

                       
                   

Dividends and Distributions to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

Net investment income

 

 

(2,458,784

)

 

(6,899,959

)

 

(1,016,308

)

 

(2,869,826

)

Net realized gain

 

 

 

 

 

 

 

 

(311,386

)

 

 

                       

 

 

 

(2,458,784

)

 

(6,899,959

)

 

(1,016,308

)

 

(3,181,212

)

 

 

                       

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

 

$

2,169,312

 

$

(1,095,701

)

$

1,164,719

 

$

(5,794,107

)

 

 

                       

1 Related to tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 


See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

55



 

 


 

Statements of Operations (concluded)

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31, 2008

 

BlackRock
Municipal
Income Trust II
(BLE)

 

BlackRock
California
Insured
Municipal
Income Trust
(BCK)

 

BlackRock
California
Municipal
Bond Trust
(BZA)

 

BlackRock
California
Municipal
Income Trust II
(BCL)

 

                   

Investment Income

Interest

 

$

30,362,738

 

$

5,723,361

 

$

4,282,118

 

$

9,833,244

 

Income from affiliates

 

 

331,840

 

 

130,458

 

 

100,968

 

 

2,534

 

 

 

                       

Total income

 

 

30,694,578

 

 

5,853,819

 

 

4,383,086

 

 

9,835,778

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

Investment advisory

 

 

2,970,894

 

 

677,989

 

 

532,697

 

 

1,036,995

 

Commissions for Preferred Shares

 

 

490,790

 

 

113,089

 

 

74,557

 

 

172,584

 

Accounting services

 

 

65,021

 

 

19,852

 

 

18,962

 

 

35,679

 

Professional

 

 

174,566

 

 

96,738

 

 

68,977

 

 

99,221

 

Transfer agent

 

 

42,983

 

 

20,639

 

 

22,066

 

 

25,779

 

Printing

 

 

55,424

 

 

12,041

 

 

10,814

 

 

20,179

 

Officer and Trustees

 

 

31,095

 

 

10,014

 

 

5,896

 

 

12,268

 

Custodian

 

 

29,886

 

 

10,106

 

 

7,660

 

 

13,350

 

Registration

 

 

7,284

 

 

11,421

 

 

11,405

 

 

2,503

 

Miscellaneous

 

 

56,158

 

 

23,457

 

 

28,944

 

 

27,567

 

 

 

                       

Total expenses excluding interest expense and fees

 

 

3,924,101

 

 

995,346

 

 

781,978

 

 

1,446,125

 

Interest expense and fees1

 

 

231,734

 

 

51,987

 

 

10,350

 

 

62,481

 

 

 

                       

Total expenses

 

 

4,155,835

 

 

1,047,333

 

 

792,328

 

 

1,508,606

 

Less fees waived by advisor

 

 

(569,789

)

 

(222,478

)

 

(213,685

)

 

(189,045

)

Less fees paid indirectly

 

 

(135

)

 

(459

)

 

(142

)

 

(303

)

 

 

                       

Total expenses after waiver and fees paid indirectly

 

 

3,585,911

 

 

824,396

 

 

578,501

 

 

1,319,258

 

 

 

                       

Net investment income

 

 

27,108,667

 

 

5,029,423

 

 

3,804,585

 

 

8,516,520

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and Unrealized Gain (Loss)

Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

81,471

 

 

(166,763

)

 

233,996

 

 

1,667,813

 

Futures and swaps

 

 

(3,414,422

)

 

(529,830

)

 

(217,665

)

 

(1,908,476

)

 

 

                       

 

 

 

(3,332,951

)

 

(696,593

)

 

16,331

 

 

(240,663

)

 

 

                       

Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(30,481,235

)

 

(2,516,164

)

 

(1,438,374

)

 

(7,394,239

)

Swaps

 

 

(527,392

)

 

189,029

 

 

65,981

 

 

212,564

 

 

 

                       

 

 

 

(31,008,627

)

 

(2,327,135

)

 

(1,372,393

)

 

(7,181,675

)

 

 

                       

Total realized and unrealized loss

 

 

(34,341,578

)

 

(3,023,728

)

 

(1,356,062

)

 

(7,422,338

)

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Preferred Shareholders
From

Net investment income

 

 

(6,838,458

)

 

(1,418,583

)

 

(1,029,626

)

 

(2,305,653

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

                       

 

 

 

(6,838,458

)

 

(1,418,583

)

 

(1,029,626

)

 

(2,305,653

)

 

 

                       

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

 

$

(14,071,369

)

$

587,112

 

$

1,418,897

 

$

(1,211,471

)

 

 

                       

 

 

1

Related to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

56

ANNUAL REPORT

AUGUST 31, 2008

 




 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31, 2008

 

BlackRock
Maryland
Municipal
Bond Trust
(BZM)

 

BlackRock
New Jersey
Municipal
Bond Trust
(BLJ)

 

New York
Insured
Municipal
Income Trust
(BSE)

 

BlackRock
New York
Municipal
Bond Trust
(BQH)

 

BlackRock
New York
Municipal
Income Trust II
(BFY)

 

BlackRock
Virginia
Municipal
Bond Trust
(BHV)

 

Investment Income

Interest

 

$

2,555,005

 

$

3,041,936

 

$

7,212,741

 

$

3,626,141

 

$

6,112,622

 

$

2,045,581

 

Income from affiliates

 

 

33,124

 

 

21,809

 

 

313

 

 

22,357

 

 

36,819

 

 

259

 

 

 

                                   

Total income

 

 

2,588,129

 

 

3,063,745

 

 

7,213,054

 

 

3,648,498

 

 

6,149,441

 

 

2,045,840

 

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

Investment advisory

 

 

314,455

 

 

354,511

 

 

823,791

 

 

429,572

 

 

645,179

 

 

244,577

 

Commissions for Preferred Shares

 

 

44,693

 

 

50,447

 

 

135,165

 

 

60,207

 

 

110,836

 

 

33,662

 

Accounting services

 

 

18,133

 

 

19,298

 

 

22,770

 

 

19,650

 

 

20,524

 

 

8,642

 

Professional

 

 

70,423

 

 

78,760

 

 

93,207

 

 

78,124

 

 

91,688

 

 

58,092

 

Transfer agent

 

 

13,379

 

 

15,416

 

 

15,645

 

 

22,298

 

 

17,925

 

 

13,252

 

Printing

 

 

11,716

 

 

11,743

 

 

15,708

 

 

11,995

 

 

14,383

 

 

11,073

 

Officer and Trustees

 

 

1,516

 

 

3,414

 

 

10,206

 

 

5,659

 

 

8,555

 

 

3,097

 

Custodian

 

 

4,357

 

 

5,071

 

 

12,801

 

 

6,283

 

 

9,815

 

 

3,274

 

Registration

 

 

642

 

 

724

 

 

8,817

 

 

11,405

 

 

1,553

 

 

488

 

Miscellaneous

 

 

26,356

 

 

27,193

 

 

33,266

 

 

30,555

 

 

24,737

 

 

27,210

 

 

 

                                   

Total expenses excluding interest expense and fees

 

 

505,670

 

 

566,577

 

 

1,171,376

 

 

675,748

 

 

945,195

 

 

403,367

 

Interest expense and fees1

 

 

10,918

 

 

5,779

 

 

86,636

 

 

8,936

 

 

 

 

7,007

 

 

 

                                   

Total expenses

 

 

516,588

 

 

572,356

 

 

1,258,012

 

 

684,684

 

 

945,195

 

 

410,374

 

Less fees waived by advisor

 

 

(116,003

)

 

(132,567

)

 

(237,219

)

 

(159,028

)

 

(125,959

)

 

(87,775

)

Less fees paid indirectly

 

 

(314

)

 

(116

)

 

(920

)

 

(309

)

 

(38

)

 

(336

)

 

 

                                   

Total expenses after waiver and fees paid indirectly

 

 

400,271

 

 

439,673

 

 

1,019,873

 

 

525,347

 

 

819,198

 

 

322,263

 

 

 

                                   

Net investment income

 

 

2,187,858

 

 

2,624,072

 

 

6,193,181

 

 

3,123,151

 

 

5,330,243

 

 

1,723,577

 

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Realized and Unrealized Gain (Loss)

Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

52,367

 

 

(116,746

)

 

84,445

 

 

39,245

 

 

(470,509

)

 

292,759

 

Futures and swaps

 

 

 

 

(157,668

)

 

(738,436

)

 

11,861

 

 

(517,346

)

 

 

 

 

                                   

 

 

 

52,367

 

 

(274,414

)

 

(653,991

)

 

51,106

 

 

(987,855

)

 

292,759

 

 

 

                                   

Net change in unrealized appreciation/depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(801,629

)

 

(2,258,322

)

 

(3,003,695

)

 

(1,627,731

)

 

(2,011,675

)

 

(1,013,968

)

Swaps

 

 

 

 

(33,134

)

 

(143,280

)

 

9,485

 

 

247,665

 

 

 

 

 

                                   

 

 

 

(801,629

)

 

(2,291,456

)

 

(3,146,975

)

 

(1,618,246

)

 

(1,764,010

)

 

(1,013,968

)

 

 

                                   

Total realized and unrealized loss

 

 

(749,262

)

 

(2,565,870

)

 

(3,800,966

)

 

(1,567,140

)

 

(2,751,865

)

 

(721,209

)

 

 

                                   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Preferred
Shareholders From

Net investment income

 

 

(575,579

)

 

(675,482

)

 

(1,637,764

)

 

(796,921

)

 

(1,408,467

)

 

(457,881

)

Net realized gain

 

 

(10,561

)

 

(6,860

)

 

(82,413

)

 

(19,635

)

 

(35,412

)

 

 

 

 

                                   

 

 

 

(586,140

)

 

(682,342

)

 

(1,720,177

)

 

(816,556

)

 

(1,443,879

)

 

(457,881

)

 

 

                                   

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

 

$

852,456

 

$

(624,140

)

$

672,038

 

$

739,455

 

$

1,134,499

 

$

544,487

 

 

 

                                   

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

57



 

 


 

Statements of Changes in Net Assets

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
Insured Municipal Income
Investment Trust (BAF)

 

BlackRock
Insured Municipal
Income Trust (BYM)

 

 

 

       

 

 

Year Ended August 31,

 

Year Ended August 31,

 

 

 

       

Increase (Decrease) in Net Assets:

 

 

2008

 

 

2007

 

 

2008

 

 

2007

 

Operations

Net investment income

 

$

8,604,703

 

$

8,851,442

 

$

27,129,862

 

$

27,087,640

 

Net realized gain (loss)

 

 

(742,391

)

 

(98,027

)

 

(6,197,147

)

 

(1,872,662

)

Net change in unrealized appreciation/depreciation

 

 

(3,234,216

)

 

(4,854,423

)

 

(15,128,457

)

 

(16,001,059

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(2,458,784

)

 

(2,711,706

)

 

(6,899,959

)

 

(7,245,982

)

Net realized gain

 

 

 

 

 

 

 

 

(499,767

)

 

 

                       

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

 

 

2,169,312

 

 

1,187,286

 

 

(1,095,701

)

 

1,468,170

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Common Shareholders From

Net investment income

 

 

(6,078,897

)

 

(6,078,895

)

 

(19,185,033

)

 

(19,181,250

)

Net realized gain

 

 

 

 

 

 

 

 

(1,349,789

)

 

 

                       

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

 

 

(6,078,897

)

 

(6,078,895

)

 

(19,185,033

)

 

(20,531,039

)

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Share Transactions

Reinvestment of common dividends

 

 

 

 

 

 

138,005

 

 

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shareholders

Total decrease in net assets applicable to Common Shareholders

 

 

(3,909,585

)

 

(4,891,609

)

 

(20,142,729

)

 

(19,062,869

)

Beginning of year

 

 

128,214,797

 

 

133,106,406

 

 

388,275,240

 

 

407,338,109

 

 

 

                       

End of year

 

$

124,305,212

 

$

128,214,797

 

$

368,132,511

 

$

338,275,240

 

 

 

                       

End of year undistributed net investment income

 

$

810,530

 

$

743,508

 

$

3,019,949

 

$

1,975,165

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
California Municipal
Bond Trust (BZA)

 

BlackRock
California Municipal
Income Trust II (BCL)

 

 

 

       

 

 

Year Ended August 31,

 

Year Ended August 31,

 

 

 

       

Increase (Decrease) in Net Assets:

 

2008

 

2007

 

2008

 

2007

 

Operations

Net investment income

 

$

3,804,585

 

$

3,842,371

 

$

8,516,520

 

$

8,568,697

 

Net realized gain (loss)

 

 

16,331

 

 

213,170

 

 

(240,663

)

 

981,444

 

Net change in unrealized appreciation/depreciation

 

 

(1,372,393

)

 

(3,050,049

)

 

(7,181,675

)

 

(6,967,642

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(1,029,626

)

 

(1,013,230

)

 

(2,305,653

)

 

(2,374,847

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

                       

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

 

 

1,418,897

 

 

(7,738

)

 

(1,211,471

)

 

207,652

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions to Common Shareholders From

Net investment income

 

 

(3,103,983

)

 

(3,174,041

)

 

(6,207,529

)

 

(6,279,091

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

                       

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

 

 

(3,103,983

)

 

(3,174,041

)

 

(6,207,529

)

 

(6,279,091

)

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Share Transactions

Reinvestment of common dividends

 

 

351,551

 

 

363,722

 

 

78,795

 

 

149,378

 

 

 

                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shareholders

Total decrease in net assets applicable to Common Shareholders

 

 

(1,333,535

)

 

(2,818,057

)

 

(7,340,205

)

 

(5,922,061

)

Beginning of year

 

 

51,983,234

 

 

54,801,291

 

 

119,602,953

 

 

125,525,014

 

 

 

                       

End of year

 

$

50,649,699

 

$

51,983,234

 

$

112,262,748

 

$

119,602,953

 

 

 

                       

End of year undistributed net investment income

 

$

135,745

 

$

464,798

 

$

413,761

 

$

408,630

 

 

 

                       

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

58

ANNUAL REPORT

AUGUST 31, 2008

 




 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
Municipal Bond
Investment Trust (BIE)

 

BlackRock
Municipal Bond
Trust (BBK)

 

BlackRock
Municipal Income
Trust II (BLE)

 

BlackRock
California Insured Municipal
Income Trust (BCK)

 

 

 

               

 

 

Year Ended August 31,

 

Year Ended August 31,

 

Year Ended August 31,

 

Year Ended August 31,

 

 

 

               

Increase (Decrease) in Net Assets:

 

 

2008

 

 

2007

 

 

2008

 

 

2007

 

 

2008

 

 

2007

 

 

2008

 

 

2007

 

Operations

Net investment income

 

$

3,849,371

 

$

3,829,172

 

$

12,660,944

 

$

12,332,950

 

$

27,108,667

 

$

27,073,974

 

$

5,029,423

 

$

5,226,035

 

Net realized gain (loss)

 

 

483,558

 

 

(495,010

)

 

(2,297,504

)

 

589,300

 

 

(3,332,951

)

 

391,635

 

 

(696,593

)

 

95,635

 

Net change in unrealized appreciation/depreciation

 

 

(2,151,902

)

 

(1,748,582

)

 

(12,976,335

)

 

(7,236,647

)

 

(31,008,627

)

 

(15,760,063

)

 

(2,327,135

)

 

(3,236,231

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(1,016,308

)

 

(1,065,086

)

 

(2,869,826

)

 

(3,249,713

)

 

(6,838,458

)

 

(7,322,276

)

 

(1,418,583

)

 

(1,502,001

)

Net realized gain

 

 

 

 

 

 

(311,386

)

 

 

 

 

 

 

 

 

 

 

 

 

                                               

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

 

 

1,164,719

 

 

520,494

 

 

(5,794,107

)

 

2,435,890

 

 

(14,071,369

)

 

4,383,270

 

 

587,112

 

 

583,438

 

 

 

                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions
to Common Shareholders From

Net investment income

 

 

(3,117,188

)

 

(3,101,757

)

 

(9,875,552

)

 

(10,527,094

)

 

(19,929,193

)

 

(21,511,812

)

 

(3,641,581

)

 

(3,672,302

)

Net realized gain

 

 

 

 

 

 

(992,871

)

 

 

 

 

 

 

 

 

 

 

 

 

                                               

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

 

 

(3,117,188

)

 

(3,101,757

)

 

(10,868,423

)

 

(10,527,094

)

 

(19,929,193

)

 

(21,511,812

)

 

(3,641,581

)

 

(3,672,302

)

 

 

                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Share Transactions

Reinvestment of common dividends

 

 

100,448

 

 

166,535

 

 

879,073

 

 

1,095,893

 

 

1,326,612

 

 

2,083,908

 

 

19,225

 

 

8,887

 

 

 

                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to
Common Shareholders

Total decrease in net assets applicable to
Common Shareholders

 

 

(1,852,021

)

 

(2,414,728

)

 

(15,783,457

)

 

(6,995,311

)

 

(32,673,950

)

 

(15,044,634

)

 

(3,035,244

)

 

(3,079,977

)

Beginning of year

 

 

51,383,653

 

 

53,798,381

 

 

159,899,555

 

 

166,894,866

 

 

347,562,909

 

 

362,607,543

 

 

77,338,045

 

 

80,418,022

 

 

 

                                               

End of year

 

$

49,531,632

 

$

51,383,653

 

$

144,116,098

 

$

159,899,555

 

$

314,888,959

 

$

347,562,909

 

$

74,302,801

 

$

77,338,045

 

 

 

                                               

End of year undistributed net investment income

 

$

398,922

 

$

682,831

 

$

985,580

 

$

1,070,603

 

$

1,007,465

 

$

661,477

 

$

330,965

 

$

361,764

 

 

 

                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
Maryland Municipal
Bond Trust (BZM)

 

BlackRock
New Jersey Municipal
Bond Trust (BLJ)

 

BlackRock
New York Insured Municipal
Income Trust (BSE)

 

BlackRock
New York Municipal
Bond Trust (BQH)

 

 

 

               

 

 

Year Ended August 31,

 

Year Ended August 31,

 

Year Ended August 31,

 

Year Ended August 31,

 

 

 

               

Increase (Decrease) in Net Assets:

 

2008

 

2007

 

2008

 

2007

 

2008

 

2007

 

2008

 

2007

 

Operations

Net investment income

 

$

2,187,858

 

$

2,196,572

 

$

2,624,072

 

$

2,646,386

 

$

6,193,181

 

$

6,432,448

 

$

3,123,151

 

$

3,114,715

 

Net realized gain (loss)

 

 

52,367

 

 

(36,957

)

 

(274,414

)

 

(118,196

)

 

(653,991

)

 

102,600

 

 

51,106

 

 

233,781

 

Net change in unrealized appreciation/depreciation

 

 

(801,629

)

 

(1,990,798

)

 

(2,291,456

)

 

(1,900,776

)

 

(3,146,975

)

 

(4,871,907

)

 

(1,618,246

)

 

(1,780,588

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(575,579

)

 

(620,925

)

 

(675,482

)

 

(668,039

)

 

(1,637,764

)

 

(1,663,594

)

 

(796,921

)

 

(788,847

)

Net realized gain

 

 

(10,561

)

 

(724

)

 

(6,860

)

 

 

 

(82,413

)

 

(114,611

)

 

(19,635

)

 

 

 

 

                                               

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

 

 

852,456

 

 

(452,832

)

 

(624,140

)

 

(40,625

)

 

672,038

 

 

(115,064

)

 

739,455

 

 

779,061

 

 

 

                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends and Distributions
to Common Shareholders From

Net investment income

 

 

(1,770,800

)

 

(1,736,982

)

 

(2,176,081

)

 

(2,156,474

)

 

(4,505,354

)

 

(4,502,953

)

 

(2,552,826

)

 

(2,525,696

)

Net realized gain

 

 

(29,818

)

 

(2,108

)

 

(21,875

)

 

 

 

(221,583

)

 

(322,647

)

 

(62,036

)

 

 

 

 

                                               

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

 

 

(1,800,618

)

 

(1,739,090

)

 

(2,197,956

)

 

(2,156,474

)

 

(4,726,937

)

 

(4,825,600

)

 

(2,614,862

)

 

(2,525,696

)

 

 

                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Share Transactions

Reinvestment of common dividends

 

 

134,190

 

 

140,320

 

 

159,974

 

 

180,298

 

 

72,019

 

 

 

 

318,829

 

 

364,660

 

 

 

                                               

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to
Common Shareholders

Total decrease in net assets applicable to
Common Shareholders

 

 

(813,972

)

 

(2,051,602

)

 

(2,662,122

)

 

(2,016,801

)

 

(3,982,880

)

 

(4,940,664

)

 

(1,556,578

)

 

(1,381,975

)

Beginning of year

 

 

30,302,061

 

 

32,353,663

 

 

35,245,933

 

 

37,262,734

 

 

94,314,030

 

 

99,254,694

 

 

42,159,517

 

 

43,541,492

 

 

 

                                               

End of year

 

$

29,488,089

 

$

30,302,061

 

$

32,583,811

 

$

35,245,933

 

$

90,331,150

 

$

94,314,030

 

$

40,602,939

 

$

42,159,517

 

 

 

                                               

End of year undistributed net investment income

 

$

251,763

 

$

409,493

 

$

319,435

 

$

546,926

 

$

757,900

 

$

707,837

 

$

265,371

 

$

491,078

 

 

 

                                               

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

59



 

 


 

Statements of Changes in Net Assets (concluded)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
New York Municipal
Income Trust II (BFY)

 

BlackRock
Virginia Municipal
Bond Trust (BHV)

 

 

 

 

 

 

Year Ended August 31,

 

Year Ended August 31,

 

 

 

 

Increase (Decrease) in Net Assets:

 

2008

 

2007

 

2008

 

2007

 

Operations

Net investment income

 

$

5,330,243

 

$

5,283,336

 

$

1,723,577

 

$

1,712,355

 

Net realized gain (loss)

 

 

(987,855

)

 

99,253

 

 

292,759

 

 

(11,882

)

Net change in unrealized appreciation/depreciation

 

 

(1,764,010

)

 

(3,416,134

)

 

(1,013,968

)

 

(1,043,695

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(1,408,467

)

 

(1,477,497

)

 

(457,881

)

 

(422,739

)

Net realized gain

 

 

(35,412

)

 

 

 

 

 

(26,231

)

 

 

                       

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

 

 

1,134,499

 

 

488,958

 

 

544,487

 

 

207,808

 

 

 

                       

 

Dividends and Distributions to Common Shareholders From

Net investment income

 

 

(3,827,367

)

 

(3,607,277

)

 

(1,394,947

)

 

(1,338,699

)

Net realized gain

 

 

(84,756

)

 

 

 

 

 

(80,656

)

 

 

                       

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

 

 

(3,912,123

)

 

(3,607,277

)

 

(1,394,947

)

 

(1,419,355

)

 

 

                       

 

Capital Share Transactions

Reinvestment of common dividends

 

 

19,335

 

 

27,341

 

 

144,001

 

 

167,940

 

 

 

                       

 

 

Net Assets Applicable to Common Shareholders

Total decrease in net assets applicable to Common Shareholders

 

 

(2,758,289

)

 

(3,090,978

)

 

(706,459

)

 

(1,043,607

)

Beginning of year

 

 

73,302,273

 

 

76,393,251

 

 

24,053,382

 

 

25,096,989

 

 

 

                       

End of year

 

$

70,543,984

 

$

73,302,273

 

$

23,346,923

 

$

24,053,382

 

 

 

                       

End of year undistributed net investment income

 

$

664,858

 

$

570,449

 

$

433,606

 

$

562,297

 

 

 

                       

 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

60

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Financial Highlights

BlackRock Insured Municipal Income Investment Trust (BAF)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of year

 

$

14.68

 

$

15.24

 

$

15.26

 

$

14.34

 

$

13.74

 

 

 

                             

Net investment income

 

 

0.99

1

 

1.01

 

 

1.02

 

 

1.02

 

 

1.02

 

Net realized and unrealized gain (loss)

 

 

(0.46

)

 

(0.56

)

 

(0.07

)

 

0.96

 

 

0.64

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.28

)

 

(0.31

)

 

(0.26

)

 

(0.16

)

 

(0.07

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.01

)

 

 

                             

Net increase from investment operations

 

 

0.25

 

 

0.14

 

 

0.69

 

 

1.82

 

 

1.58

 

 

 

                             

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.70

)

 

(0.70

)

 

(0.71

)

 

(0.90

)

 

(0.90

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.08

)

 

 

                             

Total dividends and distributions

 

 

(0.70

)

 

(0.70

)

 

(0.71

)

 

(0.90

)

 

(0.98

)

 

 

                             

Net asset value, end of year

 

$

14.23

 

$

14.68

 

$

15.24

 

$

15.26

 

$

14.34

 

 

 

                             

Market price, end of year

 

$

12.42

 

$

13.55

 

$

13.88

 

$

15.30

 

$

14.14

 

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

2.22

%

 

1.17

%

 

5.16

%

 

13.13

%

 

11.87

%

 

 

                             

Based on market price

 

 

(3.35

)%

 

2.54

%

 

(4.48

)%

 

15.03

%

 

14.82

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees3,4

 

 

0.91

%

 

0.86

%

 

0.90

%

 

0.89

%

 

0.91

%

 

 

                             

Total expenses after waiver and fees paid indirectly4

 

 

1.05

%

 

0.86

%

 

0.90

%

 

0.89

%

 

0.91

%

 

 

                             

Total expenses after waiver and before fees paid indirectly4

 

 

1.05

%

 

0.87

%

 

0.92

%

 

0.90

%

 

0.93

%

 

 

                             

Total expenses4

 

 

1.33

%

 

1.19

%

 

1.23

%

 

1.22

%

 

1.25

%

 

 

                             

Net investment income4

 

 

6.71

%

 

6.70

%

 

6.79

%

 

6.85

%

 

7.13

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.92

%

 

2.05

%

 

1.74

%

 

1.06

%

 

0.52

%

 

 

                             

Net investment income to Common Shareholders

 

 

4.79

%

 

4.65

%

 

5.05

%

 

5.79

%

 

6.61

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

124,305

 

$

128,215

 

$

133,106

 

$

133,221

 

$

125,054

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

44,375

 

$

76,000

 

$

76,000

 

$

76,000

 

$

76,000

 

 

 

                             

Portfolio turnover

 

 

29

%

 

13

%

 

9

%

 

2

%

 

2

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

95,044

 

$

67,187

 

$

68,792

 

$

68,826

 

$

66,137

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effects of dividends to Preferred Shareholders.

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

61



 

 


 

Financial Highlights

BlackRock Insured Municipal Income Trust (BYM)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of year

 

$

14.82

 

$

15.54

 

$

15.61

 

$

14.62

 

$

13.64

 

 

 

                             

Net investment income

 

 

1.04

1

 

1.03

 

 

1.03

 

 

1.03

 

 

1.06

 

Net realized and unrealized gain (loss)

 

 

(0.83

)

 

(0.67

)

 

(0.09

)

 

1.07

 

 

0.94

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.26

)

 

(0.28

)

 

(0.26

)

 

(0.17

)

 

(0.08

)

Net realized gain

 

 

 

 

(0.02

)

 

 

 

 

 

 

 

 

                             

Net increase (decrease) from investment operations

 

 

(0.05

)

 

0.06

 

 

0.68

 

 

1.93

 

 

1.92

 

 

 

                             

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.73

)

 

(0.73

)

 

(0.75

)

 

(0.94

)

 

(0.94

)

Net realized gain

 

 

 

 

(0.05

)

 

 

 

 

 

 

 

 

                             

Total dividends and distributions

 

 

(0.73

)

 

(0.78

)

 

(0.75

)

 

(0.94

)

 

(0.94

)

 

 

                             

Net asset value, end of year

 

$

14.04

 

$

14.82

 

$

15.54

 

$

15.61

 

$

14.62

 

 

 

                             

Market price, end of year

 

$

13.19

 

$

14.35

 

$

14.65

 

$

15.43

 

$

13.97

 

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(0.16

)%

 

0.48

%

 

4.92

%

 

13.77

%

 

14.61

%

 

 

                             

Based on market price

 

 

(3.13

)%

 

3.20

%

 

0.07

%

 

17.69

%

 

10.57

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees3,4

 

 

0.86

%

 

0.80

%

 

0.84

%

 

0.83

%

 

0.84

%

 

 

                             

Total expenses after waiver and fees paid indirectly4

 

 

0.98

%

 

0.80

%

 

0.84

%

 

0.83

%

 

0.84

%

 

 

                             

Total expenses after waiver and before fees paid indirectly4

 

 

0.98

%

 

0.80

%

 

0.84

%

 

0.83

%

 

0.84

%

 

 

                             

Total expenses4

 

 

1.24

%

 

1.12

%

 

1.18

%

 

1.15

%

 

1.16

%

 

 

                             

Net investment income4

 

 

7.08

%

 

6.67

%

 

6.75

%

 

6.83

%

 

7.30

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.80

%

 

1.79

%

 

1.69

%

 

1.09

%

 

0.57

%

 

 

                             

Net investment income to Common Shareholders

 

 

5.28

%

 

4.88

%

 

5.06

%

 

5.74

%

 

6.73

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

368,133

 

$

388,275

 

$

407,338

 

$

408,641

 

$

382,265

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

149,925

 

$

228,975

 

$

228,975

 

$

228,975

 

$

228,975

 

 

 

                             

Portfolio turnover

 

 

39

%

 

17

%

 

60

%

 

57

%

 

57

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

86,398

 

$

67,402

 

$

69,485

 

$

69,622

 

$

66,739

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effect of dividends to Preferred Shareholders.


See Notes to Financial Statements.

 

 

 

 

 

 

 

 

62

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Financial Highlights

BlackRock Municipal Bond Investment Trust (BIE)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

   

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of year

 

$

15.45

 

$

16.22

 

$

16.31

 

$

15.53

 

$

14.52

 

 

 

   

Net investment income

 

 

1.16

1

 

1.15

 

 

1.17

 

 

1.16

 

 

1.16

 

Net realized and unrealized gain (loss)

 

 

(0.51

)

 

(0.67

)

 

(0.06

)

 

0.71

 

 

0.88

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.30

)

 

(0.32

)

 

(0.27

)

 

(0.16

)

 

(0.08

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

 

   

Net increase from investment operations

 

 

0.35

 

 

0.16

 

 

0.84

 

 

1.71

 

 

1.96

 

 

 

   

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.94

)

 

(0.93

)

 

(0.93

)

 

(0.93

)

 

(0.93

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.02

)

 

 

   

Total dividends and distributions

 

 

(0.94

)

 

(0.93

)

 

(0.93

)

 

(0.93

)

 

(0.95

)

 

 

   

Net asset value, end of year

 

$

14.86

 

$

15.45

 

$

16.22

 

$

16.31

 

$

15.53

 

 

 

   

Market price, end of year

 

$

14.28

 

$

15.82

 

$

16.70

 

$

15.95

 

$

14.17

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

2.34

%

 

0.95

%

 

5.40

%

 

11.58

%

 

14.37

%

 

 

   

Based on market price

 

 

(3.95

)%

 

0.40

%

 

10.97

%

 

19.59

%

 

11.82

%

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees3,4

 

 

1.09

%

 

0.96

%

 

0.98

%

 

1.00

%

 

1.02

%

 

 

   

Total expenses after waiver and fees paid indirectly4

 

 

1.13

%

 

0.96

%

 

0.98

%

 

1.00

%

 

1.02

%

 

 

   

Total expenses after waiver and before fees paid indirectly4

 

 

1.13

%

 

0.98

%

 

1.00

%

 

1.02

%

 

1.03

%

 

 

   

Total expenses4

 

 

1.54

%

 

1.43

%

 

1.47

%

 

1.49

%

 

1.50

%

 

 

   

Net investment income4

 

 

7.52

%

 

7.22

%

 

7.28

%

 

7.24

%

 

7.62

%

 

 

   

Dividends to Preferred Shareholders

 

 

1.99

%

 

2.01

%

 

1.70

%

 

1.01

%

 

0.53

%

 

 

   

Net investment income to Common Shareholders

 

 

5.53

%

 

5.21

%

 

5.58

%

 

6.23

%

 

7.09

%

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

49,532

 

$

51,384

 

$

53,798

 

$

53,990

 

$

51,383

 

 

 

   

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

26,175

 

$

29,775

 

$

29,775

 

$

29,775

 

$

29,775

 

 

 

   

Portfolio turnover

 

 

30

%

 

23

%

 

6

%

 

2

%

 

10

%

 

 

   

Asset coverage per Preferred Share, end of year

 

$

72,318

 

$

68,149

 

$

70,173

 

$

70,343

 

$

68,147

 

 

 

   

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

63



 

 


 

Financial Highlights

BlackRock Municipal Bond Trust (BBK)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

   

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of year

 

$

15.57

 

$

16.35

 

$

16.36

 

$

15.00

 

$

14.12

 

 

 

   

Net investment income

 

 

1.23

1

 

1.20

 

 

1.21

 

 

1.21

 

 

1.25

 

Net realized and unrealized gain (loss)

 

 

(1.48

)

 

(0.63

)

 

0.18

 

 

1.36

 

 

0.74

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.28

)

 

(0.32

)

 

(0.25

)

 

(0.17

)

 

(0.08

)

Net realized gain

 

 

(0.03

)

 

 

 

(0.02

)

 

 

 

 

 

 

   

Net increase (decrease) from investment operations

 

 

(0.56

)

 

0.25

 

 

1.12

 

 

2.40

 

 

1.91

 

 

 

   

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.95

)

 

(1.03

)

 

(1.04

)

 

(1.04

)

 

(1.04

)

Net realized gain

 

 

(0.10

)

 

 

 

(0.09

)

 

 

 

 

 

 

   

Total dividends and distributions

 

 

(1.05

)

 

(1.03

)

 

(1.13

)

 

(1.04

)

 

(1.04

)

 

 

   

Capital changes with respect to issuance of Preferred Shares

 

 

 

 

 

 

 

 

 

 

0.01

 

 

 

   

Net asset value, end of year

 

$

13.96

 

$

15.57

 

$

16.35

 

$

16.36

 

$

15.00

 

 

 

   

Market price, end of year

 

$

13.89

 

$

16.50

 

$

17.89

 

$

17.18

 

$

14.61

 

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(3.77

)%

 

1.09

%

 

7.18

%

 

16.63

%

 

14.01

%

 

 

   

Based on market price

 

 

(9.65

)%

 

(2.09

)%

 

11.55

%

 

25.75

%

 

14.87

%

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees3,4

 

 

0.98

%

 

0.83

%

 

0.86

%

 

0.87

%

 

0.89

%

 

 

   

Total expenses after waiver and fees paid indirectly4

 

 

1.01

%

 

0.83

%

 

0.86

%

 

0.87

%

 

0.89

%

 

 

   

Total expenses after waiver and before fees paid indirectly4

 

 

1.01

%

 

0.84

%

 

0.88

%

 

0.88

%

 

0.90

%

 

 

   

Total expenses4

 

 

1.39

%

 

1.28

%

 

1.37

%

 

1.35

%

 

1.37

%

 

 

   

Net investment income4

 

 

8.25

%

 

7.36

%

 

7.58

%

 

7.73

%

 

8.28

%

 

 

   

Dividends to Preferred Shareholders

 

 

1.87

%

 

1.94

%

 

1.57

%

 

1.08

%

 

0.55

%

 

 

   

Net investment income to Common Shareholders

 

 

6.38

%

 

5.42

%

 

6.01

%

 

6.65

%

 

7.73

%

 

 

   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

144,116

 

$

159,900

 

$

166,895

 

$

165,863

 

$

151,892

 

 

 

   

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

80,500

 

$

90,500

 

$

90,500

 

$

90,500

 

$

90,500

 

 

 

   

Portfolio turnover

 

 

27

%

 

14

%

 

85

%

 

70

%

 

65

%

 

 

   

Asset coverage per Preferred Share, end of year

 

$

69,766

 

$

69,176

 

$

71,114

 

$

70,824

 

$

66,963

 

 

 

   

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

64

ANNUAL REPORT

AUGUST 31, 2008

 



 

 



Financial Highlights

BlackRock Municipal Income Trust II (BLE)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

                                 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Net asset value, beginning of year

 

$

15.08

 

$

15.82

 

$

15.75

 

$

14.34

 

$

13.28

 

 

 

                             

Net investment income

 

 

1.17

1

 

1.17

 

 

1.18

 

 

1.20

 

 

1.20

 

Net realized and unrealized gain (loss)

 

 

(1.50

)

 

(0.66

)

 

0.18

 

 

1.38

 

 

0.95

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.30

)

 

(0.32

)

 

(0.28

)

 

(0.17

)

 

(0.09

)

 

 

                             

Net increase (decrease) from investment operations

 

 

(0.63

)

 

0.19

 

 

1.08

 

 

2.41

 

 

2.06

 

 

 

                             

Dividends to Common Shareholders from net investment income

 

 

(0.85

)

 

(0.93

)

 

(1.01

)

 

(1.00

)

 

(1.00

)

 

 

                             

Net asset value, end of year

 

$

13.60

 

$

15.08

 

$

15.82

 

$

15.75

 

$

14.34

 

 

 

                             

Market price, end of year

 

$

13.27

 

$

15.05

 

$

17.22

 

$

15.73

 

$

13.92

 

 

 

                             

 

 

                                 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Based on net asset value

 

 

(4.15

)%

 

1.02

%

 

7.04

%

 

17.56

%

 

16.09

%

 

 

                             

Based on market price

 

 

(6.29

)%

 

(7.38

)%

 

16.66

%

 

20.95

%

 

14.15

%

 

 

                             

 

 

                                 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees3,4

 

 

1.00

%

 

0.89

%

 

0.94

%

 

0.93

%

 

0.95

%

 

 

                             

Total expenses after waiver and fees paid indirectly4

 

 

1.07

%

 

0.89

%

 

0.94

%

 

0.93

%

 

0.95

%

 

 

                             

Total expenses after waiver and before fees paid indirectly4

 

 

1.07

%

 

0.90

%

 

0.94

%

 

0.93

%

 

0.95

%

 

 

                             

Total expenses4

 

 

1.24

%

 

1.12

%

 

1.18

%

 

1.17

%

 

1.20

%

 

 

                             

Net investment income4

 

 

8.09

%

 

7.43

%

 

7.66

%

 

8.00

%

 

8.37

%

 

 

                             

Dividends to Preferred Shareholders

 

 

2.04

%

 

2.01

%

 

1.78

%

 

1.15

%

 

0.61

%

 

 

                             

Net investment income to Common Shareholders

 

 

6.05

%

 

5.42

%

 

5.88

%

 

6.85

%

 

7.76

%

 

 

                             

 

 

                                 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

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

 

$

314,889

 

$

347,563

 

$

362,608

 

$

359,020

 

$

326,770

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

166,050

 

$

205,550

 

$

205,550

 

$

205,550

 

$

205,550

 

 

 

                             

Portfolio turnover

 

 

21

%

 

12

%

 

68

%

 

49

%

 

64

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

72,419

 

$

67,279

 

$

69,110

 

$

68,672

 

$

64,747

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

65



 

 



Financial Highlights

BlackRock California Insured Municipal Income Trust (BCK)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

                                 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Net asset value, beginning of year

 

$

14.66

 

$

15.24

 

$

15.22

 

$

14.01

 

$

13.09

 

 

 

                             

Net investment income

 

 

0.95

1

 

0.99

 

 

0.98

 

 

0.99

 

 

1.02

 

Net realized and unrealized gain (loss)

 

 

(0.57

)

 

(0.59

)

 

(0.01

)

 

1.27

 

 

0.89

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.27

)

 

(0.28

)

 

(0.24

)

 

(0.15

)

 

(0.08

)

 

 

                             

Net increase from investment operations

 

 

0.11

 

 

0.12

 

 

0.73

 

 

2.11

 

 

1.83

 

 

 

                             

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.69

)

 

(0.70

)

 

(0.71

)

 

(0.90

)

 

(0.90

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.01

)

 

 

                             

Total dividends and distributions

 

 

(0.69

)

 

(0.70

)

 

(0.71

)

 

(0.90

)

 

(0.91

)

 

 

                             

Net asset value, end of year

 

$

14.08

 

$

14.66

 

$

15.24

 

$

15.22

 

$

14.01

 

 

 

                             

Market price, end of year

 

$

12.95

 

$

14.30

 

$

14.61

 

$

16.08

 

$

14.00

 

 

 

                             

 

 

                                 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Based on net asset value

 

 

0.92

%

 

0.76

%

 

5.22

%

 

15.62

%

 

14.34

%

 

 

                             

Based on market price

 

 

(4.84

)%

 

2.52

%

 

(4.53

)%

 

22.24

%

 

14.97

%

 

 

                             

 

 

                                 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees3,4

 

 

1.00

%

 

0.90

%

 

0.95

%

 

0.97

%

 

0.99

%

 

 

                             

Total expenses after waiver and fees paid indirectly4

 

 

1.07

%

 

0.90

%

 

0.95

%

 

0.97

%

 

0.99

%

 

 

                             

Total expenses after waiver and before fees paid indirectly4

 

 

1.07

%

 

0.92

%

 

0.97

%

 

0.98

%

 

0.99

%

 

 

                             

Total expenses4

 

 

1.36

%

 

1.24

%

 

1.28

%

 

1.30

%

 

1.32

%

 

 

                             

Net investment income4

 

 

6.54

%

 

6.50

%

 

6.58

%

 

6.72

%

 

7.26

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.85

%

 

1.87

%

 

1.63

%

 

1.04

%

 

0.54

%

 

 

                             

Net investment income to Common Shareholders

 

 

4.69

%

 

4.63

%

 

4.95

%

 

5.68

%

 

6.72

%

 

 

                             

 

 

                                 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

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

 

$

74,303

 

$

77,338

 

$

80,418

 

$

80,289

 

$

73,823

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

37,550

 

$

46,500

 

$

46,500

 

$

46,500

 

$

46,500

 

 

 

                             

Portfolio turnover

 

 

35

%

 

28

%

 

20

%

 

16

%

 

4

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

74,484

 

$

66,591

 

$

68,241

 

$

68,170

 

$

64,691

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effect of dividends to Preferred Shareholders.


See Notes to Financial Statements.

 

 

 

 

 

 

 

 

66

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Financial Highlights

BlackRock California Municipal Bond Trust (BZA)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of year

 

$

15.35

 

$

16.28

 

$

16.19

 

$

14.67

 

$

13.71

 

 

 

                             

Net investment income

 

 

1.12

1

 

1.13

 

 

1.14

 

 

1.13

 

 

1.15

 

Net realized and unrealized gain (loss)

 

 

(0.41

)

 

(0.82

)

 

0.17

 

 

1.50

 

 

0.92

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.30

)

 

(0.30

)

 

(0.26

)

 

(0.15

)

 

(0.07

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.01

)

 

 

                             

Net increase from investment operations

 

 

0.41

 

 

0.01

 

 

1.05

 

 

2.48

 

 

1.99

 

 

 

                             

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.91

)

 

(0.94

)

 

(0.96

)

 

(0.96

)

 

(0.96

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

(0.07

)

 

 

                             

Total dividends and distributions

 

 

(0.91

)

 

(0.94

)

 

(0.96

)

 

(0.96

)

 

(1.03

)

 

 

                             

Net asset value, end of year

 

$

14.85

 

$

15.35

 

$

16.28

 

$

16.19

 

$

14.67

 

 

 

                             

Market price, end of year

 

$

14.48

 

$

16.50

 

$

18.05

 

$

16.33

 

$

13.90

 

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

2.64

%

 

(0.33

)%

 

6.71

%

 

17.71

%

 

15.20

%

 

 

                             

Based on market price

 

 

(6.89

)%

 

(3.37

)%

 

17.30

%

 

25.31

%

 

13.80

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees3,4

 

 

1.09

%

 

0.94

%

 

0.96

%

 

1.00

%

 

1.06

%

 

 

                             

Total expenses after waiver and fees paid indirectly4

 

 

1.11

%

 

0.94

%

 

0.96

%

 

1.00

%

 

1.06

%

 

 

                             

Total expenses after waiver and before fees paid indirectly4

 

 

1.11

%

 

0.96

%

 

0.98

%

 

1.03

%

 

1.07

%

 

 

                             

Total expenses4

 

 

1.52

%

 

1.41

%

 

1.45

%

 

1.50

%

 

1.55

%

 

 

                             

Net investment income4

 

 

7.31

%

 

7.08

%

 

7.20

%

 

7.30

%

 

7.87

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.98

%

 

1.87

%

 

1.64

%

 

0.98

%

 

0.49

%

 

 

                             

Net investment income to Common Shareholders

 

 

5.33

%

 

5.21

%

 

5.56

%

 

6.32

%

 

7.38

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

50,650

 

$

51,983

 

$

54,801

 

$

54,265

 

$

49,145

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

27,975

 

$

29,975

 

$

29,975

 

$

29,975

 

$

29,975

 

 

 

                             

Portfolio turnover

 

 

24

%

 

21

%

 

16

%

 

22

%

 

24

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

70,278

 

$

68,364

 

$

70,714

 

$

70,263

 

$

65,990

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

67



 

 


 

Financial Highlights

BlackRock California Municipal Income Trust II (BCL)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Operating Performance

Net asset value, beginning of year

 

$

14.96

 

$

15.72

 

$

15.52

 

$

13.77

 

$

12.76

 

 

 

                             

Net investment income

 

 

1.06

1

 

1.07

 

 

1.08

 

 

1.09

 

 

1.09

 

Net realized and unrealized gain (loss)

 

 

(0.92

)

 

(0.74

)

 

0.16

 

 

1.75

 

 

0.97

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.29

)

 

(0.30

)

 

(0.25

)

 

(0.15

)

 

(0.08

)

 

 

                             

Net increase (decrease) from investment operations

 

 

(0.15

)

 

0.03

 

 

0.99

 

 

2.69

 

 

1.98

 

 

 

                             

Dividends to Common Shareholders from net investment income

 

 

(0.78

)

 

(0.79

)

 

(0.79

)

 

(0.94

)

 

(0.97

)

 

 

                             

Net asset value, end of year

 

$

14.03

 

$

14.96

 

$

15.72

 

$

15.52

 

$

13.77

 

 

 

                             

Market price, end of year

 

$

12.70

 

$

14.44

 

$

15.40

 

$

14.26

 

$

13.71

 

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

Based on net asset value

 

 

(0.89

)%

 

0.09

%

 

6.93

%

 

20.38

%

 

15.94

%

 

 

                             

Based on market price

 

 

(7.05

)%

 

(1.38

)%

 

14.01

%

 

11.09

%

 

13.21

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees3,4

 

 

1.08

%

 

0.95

%

 

0.98

%

 

1.01

%

 

1.05

%

 

 

                             

Total expenses after waiver and fees paid indirectly4

 

 

1.13

%

 

0.95

%

 

0.98

%

 

1.01

%

 

1.05

%

 

 

                             

Total expenses after waiver and before fees paid indirectly4

 

 

1.13

%

 

0.96

%

 

1.00

%

 

1.02

%

 

1.05

%

 

 

                             

Total expenses4

 

 

1.29

%

 

1.19

%

 

1.24

%

 

1.26

%

 

1.30

%

 

 

                             

Net investment income4

 

 

7.30

%

 

6.81

%

 

7.06

%

 

7.46

%

 

7.97

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.97

%

 

1.89

%

 

1.62

%

 

1.00

%

 

0.58

%

 

 

                             

Net investment income to Common Shareholders

 

 

5.33

%

 

4.92

%

 

5.44

%

 

6.46

%

 

7.39

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

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

 

$

112,263

 

$

119,603

 

$

125,525

 

$

123,920

 

$

109,952

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of
year (000)

 

$

59,750

 

$

71,950

 

$

71,950

 

$

71,950

 

$

71,950

 

 

 

                             

Portfolio turnover

 

 

36

%

 

30

%

 

18

%

 

21

%

 

19

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

71,981

 

$

66,563

 

$

68,625

 

$

68,063

 

$

63,209

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effect of dividends to Preferred Shareholders.

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

68

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Financial Highlights

BlackRock Maryland Municipal Bond Trust (BZM)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Year Ended August 31,

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of year

 

$

14.91

 

$

15.98

 

$

16.11

 

$

15.24

 

$

14.36

 

 

 

                             

Net investment income

 

 

1.07

1

 

1.08

 

 

1.07

 

 

1.07

 

 

1.06

 

Net realized and unrealized gain (loss)

 

 

(0.36

)

 

(0.99

)

 

(0.08

)

 

0.83

 

 

0.76

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.28

)

 

(0.31

)

 

(0.26

)

 

(0.17

)

 

(0.08

)

Net realized gain

 

 

(0.01

)

 

2

 

 

 

 

 

 

 

 

                             

Net increase (decrease) from investment operations

 

 

0.42

 

 

(0.22

)

 

0.73

 

 

1.73

 

 

1.74

 

 

 

                             

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.87

)

 

(0.85

)

 

(0.86

)

 

(0.86

)

 

(0.86

)

Net realized gain

 

 

(0.01

)

 

2

 

 

 

 

 

 

 

 

                             

Total dividends and distributions

 

 

(0.88

)

 

(0.85

)

 

(0.86

)

 

(0.86

)

 

(0.86

)

 

 

                             

Net asset value, end of year

 

$

14.45

 

$

14.91

 

$

15.98

 

$

16.11

 

$

15.24

 

 

 

                             

Market price, end of year

 

$

15.75

 

$

17.43

 

$

17.45

 

$

15.96

 

$

14.99

 

 

 

                             

 

 

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

2.60

%

 

(1.85

)%

 

4.57

%

 

11.73

%

 

12.50

%

 

 

                             

Based on market price

 

 

(4.33

)%

 

5.08

%

 

15.26

%

 

12.53

%

 

14.31

%

 

 

                             

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees4,5

 

 

1.28

%

 

1.07

%

 

1.11

%

 

1.11

%

 

1.18

%

 

 

                             

Total expenses after waiver and fees paid indirectly5

 

 

1.32

%

 

1.07

%

 

1.11

%

 

1.11

%

 

1.18

%

 

 

                             

Total expenses after waiver and before fees paid indirectly5

 

 

1.32

%

 

1.10

%

 

1.17

%

 

1.13

%

 

1.19

%

 

 

                             

Total expenses5

 

 

1.70

%

 

1.54

%

 

1.64

%

 

1.60

%

 

1.67

%

 

 

                             

Net investment income5

 

 

7.19

%

 

6.87

%

 

6.76

%

 

6.82

%

 

7.05

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.89

%

 

1.94

%

 

1.66

%

 

1.05

%

 

0.54

%

 

 

                             

Net investment income to Common Shareholders

 

 

5.30

%

 

4.93

%

 

5.10

%

 

5.77

%

 

6.51

%

 

 

                             

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

29,488

 

$

30,302

 

$

32,354

 

$

32,492

 

$

30,715

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

16,000

 

$

18,000

 

$

18,000

 

$

18,000

 

$

18,000

 

 

 

                             

Portfolio turnover

 

 

15

%

 

7

%

 

%

 

4

%

 

12

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

71,083

 

$

67,089

 

$

69,950

 

$

70,138

 

$

67,662

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Amount is less than ($0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

5

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

69



 

 


 

Financial Highlights

BlackRock New Jersey Municipal Bond Trust (BLJ)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of year

 

$

15.38

 

$

16.33

 

$

16.26

 

$

14.71

 

$

13.77

 

 

 

                             

Net investment income

 

 

1.14

1

 

1.15

 

 

1.16

 

 

1.16

 

 

1.16

 

Net realized and unrealized gain (loss)

 

 

(1.11

)

 

(0.87

)

 

0.18

 

 

1.48

 

 

0.84

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.29

)

 

(0.29

)

 

(0.24

)

 

(0.15

)

 

(0.07

)

Net realized gain

 

 

2

 

 

 

(0.02

)

 

 

 

 

 

 

                             

Net increase (decrease) from investment operations

 

 

(0.26

)

 

(0.01

)

 

1.08

 

 

2.49

 

 

1.93

 

 

 

                             

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.95

)

 

(0.94

)

 

(0.95

)

 

(0.94

)

 

(0.94

)

Net realized gain

 

 

(0.01

)

 

 

 

(0.06

)

 

 

 

(0.05

)

 

 

                             

Total dividends and distributions

 

 

(0.96

)

 

(0.94

)

 

(1.01

)

 

(0.94

)

 

(0.99

)

 

 

                             

Net asset value, end of year

 

$

14.16

 

$

15.38

 

$

16.33

 

$

16.26

 

$

14.71

 

 

 

                             

Market price, end of year

 

$

14.76

 

$

16.90

 

$

18.30

 

$

15.98

 

$

13.91

 

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

(2.12

)%

 

(0.61

)%

 

6.77

%

 

17.60

%

 

14.56

%

 

 

                             

Based on market price

 

 

(7.15

)%

 

(2.54

)%

 

21.74

%

 

22.22

%

 

9.32

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees4,5

 

 

1.26

%

 

1.00

%

 

1.06

%

 

1.08

%

 

1.14

%

 

 

                             

Total expenses after waiver and fees paid indirectly5

 

 

1.28

%

 

1.00

%

 

1.06

%

 

1.08

%

 

1.14

%

 

 

                             

Total expenses after waiver and before fees paid indirectly5

 

 

1.28

%

 

1.03

%

 

1.11

%

 

1.10

%

 

1.15

%

 

 

                             

Total expenses5

 

 

1.67

%

 

1.47

%

 

1.59

%

 

1.57

%

 

1.63

%

 

 

                             

Net investment income5

 

 

7.64

%

 

7.11

%

 

7.24

%

 

7.44

%

 

7.93

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.97

%

 

1.79

%

 

1.50

%

 

0.98

%

 

0.49

%

 

 

                             

Net investment income to Common Shareholders

 

 

5.67

%

 

5.32

%

 

5.74

%

 

6.46

%

 

7.44

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

32,584

 

$

35,246

 

$

37,263

 

$

36,928

 

$

33,384

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

19,200

 

$

20,225

 

$

20,225

 

$

20,225

 

$

20,225

 

 

 

                             

Portfolio turnover

 

 

17

%

 

35

%

 

%

 

12

%

 

20

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

67,439

 

$

68,578

 

$

71,067

 

$

70,649

 

$

66,266

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Amount is less than $(0.01) per share.

3

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

5

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

70

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Financial Highlights

BlackRock New York Insured Municipal Income Trust (BSE)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

                       

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Net asset value, beginning of year

 

$

14.58

 

$

15.34

 

$

15.30

 

$

14.18

 

$

13.45

 

 

 

                             

Net investment income

 

 

0.96

1

 

0.99

 

 

1.00

 

 

1.00

 

 

1.01

 

Net realized and unrealized gain (loss)

 

 

(0.60

)

 

(0.72

)

 

(0.01

)

 

1.16

 

 

0.69

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.25

)

 

(0.26

)

 

(0.24

)

 

(0.14

)

 

(0.07

)

Net realized gain

 

 

(0.01

)

 

(0.02

)

 

 

 

 

 

 

 

 

                             

Net increase (decrease) from investment operations

 

 

0.10

 

 

(0.01

)

 

0.75

 

 

2.02

 

 

1.63

 

 

 

                             

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.70

)

 

(0.70

)

 

(0.71

)

 

(0.90

)

 

(0.90

)

Net realized gain

 

 

(0.03

)

 

(0.05

)

 

 

 

 

 

 

 

 

                             

Total dividends and distributions

 

 

(0.73

)

 

(0.75

)

 

(0.71

)

 

(0.90

)

 

(0.90

)

 

 

                             

Net asset value, end of year

 

$

13.95

 

$

14.58

 

$

15.34

 

$

15.30

 

$

14.18

 

 

 

                             

Market price, end of year

 

$

13.26

 

$

14.12

 

$

14.70

 

$

15.35

 

$

14.08

 

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Based on net asset value

 

 

0.80

%

 

(0.06

)%

 

5.46

%

 

14.72

%

 

12.40

%

 

 

                             

Based on market price

 

 

(1.07

)%

 

1.01

%

 

0.73

%

 

15.92

%

 

13.04

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees3,4

 

 

0.99

%

 

0.89

%

 

0.90

%

 

0.92

%

 

0.93

%

 

 

                             

Total expenses after waiver and fees paid indirectly4

 

 

1.09

%

 

0.89

%

 

0.90

%

 

0.92

%

 

0.93

%

 

 

                             

Total expenses after waiver and before fees paid indirectly4

 

 

1.09

%

 

0.90

%

 

0.92

%

 

0.93

%

 

0.95

%

 

 

                             

Total expenses4

 

 

1.34

%

 

1.21

%

 

1.25

%

 

1.25

%

 

1.27

%

 

 

                             

Net investment income4

 

 

6.59

%

 

6.53

%

 

6.63

%

 

6.77

%

 

7.14

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.74

%

 

1.69

%

 

1.58

%

 

0.96

%

 

0.52

%

 

 

                             

Net investment income to Common Shareholders

 

 

4.85

%

 

4.84

%

 

5.05

%

 

5.81

%

 

6.62

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

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

 

$

90,331

 

$

94,314

 

$

99,255

 

$

98,853

 

$

91,260

 

 

 

                             

Preferred Shares outstanding at liquidation preference,
end of year (000)

 

$

41,675

 

$

56,000

 

$

56,000

 

$

56,000

 

$

56,000

 

 

 

                             

Portfolio turnover

 

 

24

%

 

30

%

 

9

%

 

21

%

 

11

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

79,196

 

$

67,107

 

$

69,324

 

$

69,138

 

$

65,744

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effect of dividends to Preferred Shareholders.


See Notes to Financial Statements.

 

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

71



 

 


 

Financial Highlights

BlackRock New York Municipal Bond Trust (BQH)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

                                 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of year

 

$

15.39

 

$

16.02

 

$

16.09

 

$

15.09

 

$

14.15

 

 

 

                             

Net investment income

 

 

1.14

1

 

1.14

 

 

1.13

 

 

1.13

 

 

1.13

 

Net realized and unrealized gain (loss)

 

 

(0.57

)

 

(0.56

)

 

(0.02

)

 

0.95

 

 

0.81

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.29

)

 

(0.29

)

 

(0.25

)

 

(0.15

)

 

(0.07

)

Net realized gain

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

                             

Net increase from investment operations

 

 

0.27

 

 

0.29

 

 

0.86

 

 

1.93

 

 

1.87

 

 

 

                             

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.93

)

 

(0.92

)

 

(0.93

)

 

(0.93

)

 

(0.93

)

Net realized gain

 

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

                             

Total dividends and distributions

 

 

(0.95

)

 

(0.92

)

 

(0.93

)

 

(0.93

)

 

(0.93

)

 

 

                             

Net asset value, end of year

 

$

14.71

 

$

15.39

 

$

16.02

 

$

16.09

 

$

15.09

 

 

 

                             

Market price, end of year

 

$

14.62

 

$

16.32

 

$

16.81

 

$

15.85

 

$

13.97

 

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

1.62

%

 

1.52

%

 

5.51

%

 

13.56

%

 

13.97

%

 

 

                             

Based on market price

 

 

(4.76

)%

 

2.60

%

 

12.39

%

 

20.83

%

 

11.83

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees3,4

 

 

1.23

%

 

1.00

%

 

1.06

%

 

1.06

%

 

1.11

%

 

 

                             

Total expenses after waiver and fees paid indirectly4

 

 

1.25

%

 

1.00

%

 

1.06

%

 

1.06

%

 

1.11

%

 

 

                             

Total expenses after waiver and before fees paid indirectly4

 

 

1.25

%

 

1.02

%

 

1.09

%

 

1.08

%

 

1.12

%

 

 

                             

Total expenses4

 

 

1.63

%

 

1.47

%

 

1.56

%

 

1.56

%

 

1.60

%

 

 

                             

Net investment income4

 

 

7.45

%

 

7.16

%

 

7.16

%

 

7.20

%

 

7.57

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.90

%

 

1.81

%

 

1.60

%

 

0.97

%

 

0.48

%

 

 

                             

Net investment income to Common Shareholders

 

 

5.55

%

 

5.35

%

 

5.56

%

 

6.23

%

 

7.09

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

40,603

 

$

42,160

 

$

43,541

 

$

43,460

 

$

40,757

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

22,400

 

$

24,200

 

$

24,200

 

$

24,200

 

$

24,200

 

 

 

                             

Portfolio turnover

 

 

19

%

 

23

%

 

12

%

 

3

%

 

16

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

70,327

 

$

68,560

 

$

69,985

 

$

69,899

 

$

67,108

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

72

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Financial Highlights

BlackRock New York Municipal Income Trust II (BFY)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

                       

Per Share Operating Performance

                       

Net asset value, beginning of year

 

$

14.84

 

$

15.47

 

$

15.23

 

$

14.16

 

$

13.36

 

 

 

                             

Net investment income

 

 

1.08

1

 

1.07

 

 

1.06

 

 

1.04

 

 

1.04

 

Net realized and unrealized gain (loss)

 

 

(0.55

)

 

(0.67

)

 

0.14

 

 

1.07

 

 

0.79

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.29

)

 

(0.30

)

 

(0.25

)

 

(0.15

)

 

(0.08

)

Net realized gain

 

 

(0.01

)

 

 

 

 

 

 

 

 

 

 

                             

Net increase from investment operations

 

 

0.23

 

 

0.10

 

 

0.95

 

 

1.96

 

 

1.75

 

 

 

                             

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.77

)

 

(0.73

)

 

(0.71

)

 

(0.89

)

 

(0.95

)

Net realized gain

 

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

                             

Total dividends and distributions

 

 

(0.79

)

 

(0.73

)

 

(0.71

)

 

(0.89

)

 

(0.95

)

 

 

                             

Net asset value, end of year

 

$

14.28

 

$

14.84

 

$

15.47

 

$

15.23

 

$

14.16

 

 

 

                             

Market price, end of year

 

$

13.60

 

$

14.22

 

$

14.38

 

$

14.02

 

$

13.70

 

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

Total Investment Return2

                       

Based on net asset value

 

 

1.70

%

 

0.69

%

 

6.93

%

 

14.46

%

 

13.50

%

 

 

                             

Based on market price

 

 

1.08

%

 

3.80

%

 

7.97

%

 

8.91

%

 

11.82

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

Ratios to Average Net Assets Applicable to Common Shares

                       

Total expenses after waiver and fees paid indirectly3

 

 

1.13

%

 

1.00

%

 

1.02

%

 

1.04

%

 

1.07

%

 

 

                             

Total expenses after waiver and before fees paid indirectly3

 

 

1.13

%

 

1.01

%

 

1.05

%

 

1.05

%

 

1.08

%

 

 

                             

Total expenses3

 

 

1.30

%

 

1.25

%

 

1.29

%

 

1.30

%

 

1.32

%

 

 

                             

Net investment income3

 

 

7.33

%

 

6.92

%

 

6.96

%

 

7.04

%

 

7.36

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.94

%

 

1.94

%

 

1.66

%

 

0.99

%

 

0.59

%

 

 

                             

Net investment income to Common Shareholders

 

 

5.39

%

 

4.98

%

 

5.30

%

 

6.05

%

 

6.77

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                       

Supplemental Data

                       

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

 

$

70,544

 

$

73,302

 

$

76,393

 

$

75,193

 

$

69,903

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

44,650

 

$

44,650

 

$

44,650

 

$

44,650

 

$

44,650

 

 

 

                             

Portfolio turnover

 

 

12

%

 

27

%

 

22

%

 

27

%

 

14

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

64,508

 

$

66,048

 

$

67,775

 

$

67,113

 

$

64,144

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Do not reflect the effect of dividends to Preferred Shareholders.


 

 

 

 

See Notes to Financial Statements.

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

73



 

 


 

Financial Highlights

BlackRock Virginia Municipal Bond Trust (BHV)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31,

 

 

 

 

 

 

 

2008

 

2007

 

2006

 

2005

 

2004

 

Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of year

 

$

15.57

 

$

16.35

 

$

16.34

 

$

15.47

 

$

14.46

 

 

 

                             

Net investment income

 

 

1.11

1

 

1.11

 

 

1.10

 

 

1.10

 

 

1.09

 

Net realized and unrealized gain (loss)

 

 

(0.45

)

 

(0.68

)

 

0.04

 

 

0.80

 

 

0.86

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.30

)

 

(0.27

)

 

(0.26

)

 

(0.16

)

 

(0.07

)

Net realized gain

 

 

 

 

(0.02

)

 

 

 

 

 

 

 

 

                             

Net increase from investment operations

 

 

0.36

 

 

0.14

 

 

0.88

 

 

1.74

 

 

1.88

 

 

 

                             

Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.90

)

 

(0.87

)

 

(0.87

)

 

(0.87

)

 

(0.87

)

Net realized gain

 

 

 

 

(0.05

)

 

 

 

 

 

 

 

 

                             

Total dividends and distributions

 

 

(0.90

)

 

(0.92

)

 

(0.87

)

 

(0.87

)

 

(0.87

)

 

 

                             

Net asset value, end of year

 

$

15.03

 

$

15.57

 

$

16.35

 

$

16.34

 

$

15.47

 

 

 

                             

Market price, end of year

 

$

19.50

 

$

17.85

 

$

18.45

 

$

17.30

 

$

15.34

 

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Based on net asset value

 

 

1.59

%

 

0.21

%

 

5.30

%

 

11.52

%

 

13.28

%

 

 

                             

Based on market price

 

 

14.97

%

 

1.80

%

 

12.23

%

 

19.07

%

 

12.79

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after waiver and fees paid indirectly and excluding interest expense and fees3,4

 

 

1.31

%

 

1.09

%

 

1.15

%

 

1.18

%

 

1.25

%

 

 

                             

Total expenses after waiver and fees paid indirectly4

 

 

1.34

%

 

1.09

%

 

1.15

%

 

1.18

%

 

1.25

%

 

 

                             

Total expenses after waiver and before fees paid indirectly4

 

 

1.34

%

 

1.14

%

 

1.22

%

 

1.20

%

 

1.26

%

 

 

                             

Total expenses4

 

 

1.70

%

 

1.58

%

 

1.68

%

 

1.67

%

 

1.73

%

 

 

                             

Net investment income4

 

 

7.14

%

 

6.85

%

 

6.83

%

 

6.90

%

 

7.15

%

 

 

                             

Dividends to Preferred Shareholders

 

 

1.90

%

 

1.69

%

 

1.60

%

 

1.00

%

 

0.47

%

 

 

                             

Net investment income to Common Shareholders

 

 

5.24

%

 

5.16

%

 

5.23

%

 

5.90

%

 

6.68

%

 

 

                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

23,347

 

$

24,053

 

$

25,097

 

$

24,966

 

$

23,527

 

 

 

                             

Preferred Shares outstanding at liquidation preference, end of year (000)

 

$

12,175

 

$

13,525

 

$

13,525

 

$

13,525

 

$

13,525

 

 

 

                             

Portfolio turnover

 

 

11

%

 

12

%

 

5

%

 

5

%

 

14

%

 

 

                             

Asset coverage per Preferred Share, end of year

 

$

72,948

 

$

69,463

 

$

71,404

 

$

71,158

 

$

68,490

 

 

 

                             

 

 

1

Based on average shares outstanding.

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

3

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

4

Do not reflect the effect of dividends to Preferred Shareholders.

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

74

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Notes to Financial Statements

 

1. Significant Accounting Policies:

BlackRock Insured Municipal Income Investment Trust (“Insured Investment”) (formerly BlackRock Florida Insured Municipal Income Trust), BlackRock Insured Municipal Income Trust (“Insured Municipal”), BlackRock California Insured Municipal Income Trust (“California Insured”), BlackRock New York Insured Municipal Income Trust (“New York Insured”) (collectively the “Insured Trusts”), BlackRock Municipal Bond Trust (“Municipal Bond”), BlackRock Municipal Bond Investment Trust (“Bond Investment”) (formerly BlackRock Florida Municipal Bond Trust), BlackRock California Municipal Bond Trust (“California Bond”), BlackRock Maryland Municipal Bond Trust (“Maryland Bond”), BlackRock New Jersey Municipal Bond Trust (“New Jersey Bond”), BlackRock New York Municipal Bond Trust (“New York Bond”), BlackRock Virginia Municipal Bond Trust (“Virginia Bond”) (collectively the “Bond Trusts”), BlackRock Municipal Income Trust II (“Municipal Income II”), BlackRock California Municipal Income Trust II (“California Income II”) and BlackRock New York Municipal Income Trust II (“New York Income II”) (collectively the “Income II Trusts”) (all, collectively the “Trusts”) were organized as Delaware statutory trusts. Insured Municipal, Municipal Bond and Municipal Income II are registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as diversified, closed-end management investment companies. Insured Investment, Bond Investment, California Insured, California Bond, California Income II, Maryland Bond, New Jersey Bond, New York Insured, New York Bond, New York Income II and Virginia Bond are registered under the 1940 Act as non-diversified, closed-end management investment companies. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. Each Trust determines, and makes available for publication the net asset value of its Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Trusts:

Valuation of Investments: Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services selected under the supervision of each Trust’s Board of Trustees (the “Board”). In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Swaps are valued by quoted fair values received daily by the Trusts’ pricing service or through brokers. Short-term securities are valued at amortized cost. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment, the investment will be valued by a method approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or sub-advisor seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Derivative Financial Instruments: The Trusts may engage in various portfolio investment strategies both to increase the return of the Trusts and to hedge, or protect, their exposure to interest rate movements and movements in the securities markets. Losses may arise if the value of the contract decreases due to an unfavorable change in the price of the underlying security, or if the counterparty does not perform under the contract.

 

 

Financial futures contracts—Each Trust may purchase or sell financial futures contracts and options on such futures contracts. Futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Upon entering into a contract, a Trust deposits and maintains as collateral such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Trust agrees to receive from, or pay to, the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as margin variation and are recognized by the Trust as unrealized gains or losses. When the contract is closed, the Trust records 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.

 

 

Forward interest rate swaps—Each Trust may enter into forward interest rate swaps. In a forward interest rate swap, a Trust and the counterparty agree to make periodic net payments on a specified notional contract amount, commencing on a specified future effective date, unless terminated earlier. Changes in the value of the forward interest rate swap are recognized as unrealized gains and losses. When the agreement is closed, the Trust records a realized gain or loss in an amount equal to the value of the agreement. The Trusts generally intends to close each forward interest rate swap before the effective date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward interest rate swap.

Forward Commitments and When-Issued Delayed Delivery Securities: The Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Trusts may purchase securities under such conditions only with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. Upon making a commitment to purchase a security on a when-issued basis, the Trusts will hold liquid assets worth at least the equivalent of the amount due.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Trusts may leverage their assets through the use of tender option bond trusts (“TOBs”). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds,

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

75



 

 


 

Notes to Financial Statements (continued)

 

transfers municipal securities. Other funds managed by the investment advisor may also contribute municipal securities to a TOB into which a Trust has contributed securities. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by the Trusts include the right of the Trusts (1) to cause the holders of a proportional share of the floating rate certificates to tender their certificates at par, and (2) to transfer, within seven days, a corresponding share of the municipal securities from the TOB to the Trusts. The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to the Trusts, which typically invest the cash in additional municipal securities. The Trusts’ transfer of the municipal securities to a TOB is accounted for as a secured borrowing, therefore the municipal securities deposited into a TOB are presented in each Trust’s Schedule of Investments and the proceeds from the transaction are reported as a liability of the Trusts.

Interest income from the underlying securities is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expenses of the Trusts. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At August 31, 2008, the aggregate value of the underlying municipal securities transferred to TOBs, the related liability for trust certificates and the range of interest rates were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

               

 

 

Underlying
Municipal
Securities
Transferred to
TOBs

 

Liability for
Trust
Certificates

 

Range of
Interest
Rates

 

               

Insured Investment

 

 

$

44,590,725

 

 

 

$

31,604,874

 

 

1.809%-2.001

%

 

Insured Municipal

 

 

$

117,084,591

 

 

 

$

78,959,602

 

 

1.731%-2.536

%

 

Bond Investment

 

 

$

5,377,813

 

 

 

$

3,596,361

 

 

1.727%-1.900

%

 

Municipal Bond

 

 

$

15,654,625

 

 

 

$

9,965,454

 

 

1.689%-2.001

%

 

Municipal Income II

 

 

$

61,105,362

 

 

 

$

39,398,524

 

 

1.689%-2.511

%

 

California Insured

 

 

$

12,835,897

 

 

 

$

8,932,521

 

 

1.755%-2.001

%

 

California Bond

 

 

$

3,048,827

 

 

 

$

1,998,847

 

 

1.687

%

 

California Income II

 

 

$

17,796,412

 

 

 

$

12,184,299

 

 

1.687%-1.728

%

 

Maryland Bond

 

 

$

3,044,910

 

 

 

$

1,998,500

 

 

1.768

%

 

New Jersey Bond

 

 

$

1,588,525

 

 

 

$

1,030,000

 

 

1.746%-1.911

%

 

New York Insured

 

 

$

21,690,492

 

 

 

$

14,335,035

 

 

1.739%-2.001

%

 

New York Bond

 

 

$

2,488,035

 

 

 

$

1,788,744

 

 

1.730

%

 

Virginia Bond

 

 

$

2,046,612

 

 

 

$

1,330,000

 

 

1.701

%

 

                             

Financial transactions executed through TOBs generally will underperform the market for fixed rate municipal bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Should short-term interest rates rise, the Trusts’ investments in TOBs likely will adversely affect the Trusts’ investment income and distributions to Common Shareholders. Fluctuations in the market value of municipal securities deposited into the TOB may adversely affect each Trust’s net asset values per share.

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 periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Segregation: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that each Trust segregate assets in connection with certain investments (e.g., futures and swaps) or certain borrowings, each Trust will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated.

Investment Transactions and Investment Income: Investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual method. Each Trust amortizes all premiums and discounts on debt securities. Consent fees are compensation for agreeing to changes in the terms of debt instruments and are included in interest income on the Statements of Operations. For the year ended August 31, 2008, the Trusts had consent fees as follows:

 

 

 

 

 

             

 

 

Consent Fees

 

             

Bond Investment

 

 

$

150,000

 

 

Municipal Bond

 

 

$

525,000

 

 

Municipal Income II

 

 

$

625,000

 

 

California Bond

 

 

$

175,000

 

 

California Income II

 

 

$

200,000

 

 

Maryland Bond

 

 

$

100,000

 

 

New Jersey Bond

 

 

$

100,000

 

 

New York Bond

 

 

$

125,000

 

 

New York Income II

 

 

$

200,000

 

 

Virginia Bond

 

 

$

75,000

 

 

             

Dividends and Distributions: Dividends from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 4.

Income Taxes: It is each Trust’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provisions are required.

Effective February 29, 2008, the Trusts implemented Financial Accounting Standards Board (“FASB”) Interpretation No. 48, “Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. The investment advisor has evaluated the application of FIN 48 to the Trusts, and has determined that the adoption of FIN 48 does not have a material impact on the Trusts’ financial statements. Each Trust files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the

 

 

 

 

 

 

 

 

76

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Notes to Financial Statements (continued)

 

Trusts’ U.S. federal tax returns remain open for the years ended August 31, 2005 through August 31, 2007. The statutes of limitations on the Trusts’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncements: In September 2006, Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. The impact on the Trusts’ financial statement disclosures, if any, is currently being assessed.

In March 2008, Statement of Financial Accounting Standards No. 161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement No. 133” (“FAS 161”), was issued. FAS 161 is intended to improve financial reporting for derivative instruments by requiring enhanced disclosure that enables investors to understand how and why an entity uses derivatives, how derivatives are accounted for, and how derivative instruments affect an entity’s results of operations and financial position. In September 2008, FASB Staff Position No. 133-1 and FASB Interpretation No. 45-4 (the “FSP”), “Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161” was issued and is effective for fiscal years and interim periods ending after November 15, 2008. The FSP amends FASB Statement No. 133, “Accounting for Derivative Instruments and Hedging Activities,” to require disclosures by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments. The FSP also clarifies the effective date of FAS 161, whereby disclosures required by FAS 161 are effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008. The impact on the Trusts’ financial statement disclosures, if any, is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trust’s Board, non-interested Trustees (“Independent Trustees”) defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees. This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in other certain BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Each Trust may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees in order to match their deferred compensation obligations. Investments to cover each Trust’s deferred compensation liability are included in other assets on the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in income from affiliates on the Statements of Operations.

Other: Expenses directly related to each 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.

2. Investment Advisory Agreement and Other Transactions with Affiliates:

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Advisor”), an indirect, wholly owned subsidiary of BlackRock, Inc., to provide investment advisory and administration services. Merrill Lynch & Co., Inc. (“Merrill Lynch”) and The PNC Financial Services Group, Inc. are principal owners of BlackRock, Inc.

The Advisor 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 Advisor a monthly fee at an annual rate of 0.55% for the Insured Trusts and Income II Trusts and 0.65% for the Bond Trusts of each Trust’s average daily net assets. Average daily net assets is the average daily value of the Trusts’ total assets minus the sum of its accrued liabilities.

The Advisor has voluntarily agreed to waive a portion of the investment advisory fee. With respect to the Insured Trusts, the waiver, as a percentage of average daily net assets as follows: 0.20% for the first five years of each Trust’s operations, 0.15% in year six, 0.10% in year seven, and 0.05% in year eight. With respect to the Bond Trusts, the waiver, as a percentage of average daily net assets, is as follows: 0.30% for the first five years of each Trust’s operations, 0.25% in year six, 0.20% in year seven, 0.15% in year eight, 0.10% in year nine and 0.05% in year 10. With respect to the Income II Trusts, the waiver, as a percentage of average daily net assets, is as follows: 0.15% for the first five years of each Trust’s operations, 0.10% in year six through year seven, and 0.05% in year eight through year 10. For the year ended August 31, 2008, the Advisor waived the following amounts, which are included in fees waived by advisor on the Statements of Operations:

 

 

 

 

 

         

Insured Investment

 

$

323,314

 

Insured Municipal

 

$

969,339

 

Bond Investment

 

$

188,759

 

Municipal Bond

 

$

569,695

 

Municipal Income II

 

$

533,719

 

California Insured

 

$

195,365

 

California Bond

 

$

191,588

 

California Income II

 

$

188,436

 

Maryland Bond

 

$

107,549

 

New Jersey Bond

 

$

127,343

 

New York Insured

 

$

237,219

 

New York Bond

 

$

154,168

 

New York Income II

 

$

117,305

 

Virginia Bond

 

$

87,775

 

         

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

77



 

 


 

Notes to Financial Statements (continued)

 

The Advisor has agreed to waive its advisory fees by the amount of investment advisory fees each Trust pays to the Advisor indirectly through its investment in affiliated money market funds. These amounts are included in fees waived by advisor on the Statements of Operations. For the year ended August 31, 2008, the amounts were as follows:

 

 

 

 

 

         

Insured Investment

 

$

42,017

 

Insured Municipal

 

$

33,008

 

Bond Investment

 

$

17,283

 

Municipal Bond

 

$

11,236

 

Municipal Income II

 

$

36,070

 

California Insured

 

$

27,113

 

California Bond

 

$

22,097

 

California Income II

 

$

609

 

Maryland Bond

 

$

8,454

 

New Jersey Bond

 

$

5,224

 

New York Bond

 

$

4,860

 

New York Income II

 

$

8,654

 

         

The Advisor has entered into a separate sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Advisor, with respect to each Trust, under which the Advisor pays BFM for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by each Trust to the Advisor.

For the year ended August 31, 2008, the Trusts reimbursed the Advisor for certain accounting services. The reimbursements, which are included in accounting services on the Statements of Operations, were as follows:

 

 

 

 

 

         

Insured Investment

 

$

2,132

 

Insured Municipal

 

$

6,359

 

Bond Investment

 

$

847

 

Municipal Bond

 

$

2,646

 

Municipal Income II

 

$

5,605

 

California Insured

 

$

1,329

 

California Bond

 

$

857

 

California Income II

 

$

2,041

 

Maryland Bond

 

$

505

 

New Jersey Bond

 

$

566

 

New York Insured

 

$

1,560

 

New York Bond

 

$

698

 

New York Income II

 

$

1,233

 

Virginia Bond

 

$

398

 

         

Pursuant to the terms of the custody agreement, custodian fees may be reduced by amounts calculated on uninvested cash balances (“custody credits”), which are shown on the Statements of Operations as fees paid indirectly.

Certain officers and/or trustees of the Trusts are officers and/or directors of BlackRock, Inc. or its affiliates. The Trusts reimburse the Advisor for compensation paid to the Trusts’ Chief Compliance Officer.

3. Investments:

Purchases and sales of investment securities, excluding short-term investments, for the year ended August 31, 2008 were as follows:

 

 

 

 

 

 

 

 

               

 

 

 

Purchases

 

 

Sales

 

               

Insured Investment

 

$

57,487,097

 

$

57,426,235

 

Insured Municipal

 

$

230,328,403

 

$

244,213,383

 

Bond Investment

 

$

23,210,777

 

$

24,611,469

 

Municipal Bond

 

$

63,781,885

 

$

69,219,581

 

Municipal Income II

 

$

110,865,287

 

$

122,338,665

 

California Insured

 

$

40,825,545

 

$

48,880,980

 

California Bond

 

$

18,364,969

 

$

20,865,842

 

California Income II

 

$

62,558,369

 

$

74,254,338

 

Maryland Bond

 

$

6,961,269

 

$

8,832,042

 

New Jersey Bond

 

$

8,765,883

 

$

9,117,622

 

New York Insured

 

$

37,318,048

 

$

34,499,538

 

New York Bond

 

$

12,355,567

 

$

11,836,759

 

New York Income II

 

$

13,163,497

 

$

14,751,321

 

Virginia Bond

 

$

4,103,986

 

$

6,608,385

 

               

4. Capital Share Transactions:

Common Shares

Each of the Trusts are authorized to issue an unlimited number of shares, including Preferred Shares, par value $0.001 per share, all of which were initially classified as Common Shares. Each Trust’s Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders.

Shares issued and outstanding during the years ended August 31, 2008 and August 31, 2007 increased by the following amounts as a result of dividend reinvestment:

 

 

 

 

 

 

 

 

               

 

 

Year Ended
August 31, 2008

 

Year Ended
August 31, 2007

 

           

Insured Municipal

 

 

10,322

 

 

 

Bond Investment

 

 

6,553

 

 

10,341

 

Municipal Bond

 

 

58,148

 

 

63,348

 

Municipal Income II

 

 

91,244

 

 

128,267

 

California Insured

 

 

1,344

 

 

587

 

California Bond

 

 

22,468

 

 

21,441

 

California Income II

 

 

5,688

 

 

9,405

 

Maryland Bond

 

 

8,599

 

 

8,328

 

New Jersey Bond

 

 

10,138

 

 

10,244

 

New York Insured

 

 

5,180

 

 

 

New York Bond

 

 

20,407

 

 

21,768

 

New York Income II

 

 

1,272

 

 

1,781

 

Virginia Bond

 

 

8,252

 

 

9,277

 

               

Preferred Shares

The Preferred Shares have a liquidation value of $25,000 per share plus accrued and unpaid dividends, that entitle their holders to receive cash dividends at varying annualized rates for each dividend period.

The Trusts may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%.

The Preferred Shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at their liquidation preference plus any accumulated unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation prefer-

 

 

 

 

 

 

 

 

78

ANNUAL REPORT

AUGUST 31, 2008

 



 


 

Notes to Financial Statements (continued)

ence plus any accumulated or unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trust’s Statements of Preferences/Articles Supplementary/Certificates of Designation, as applicable, are not satisfied.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, holders of Preferred Shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares voting separately as a class, would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

The Trusts had the following series of Preferred Shares outstanding and effective yields at August 31, 2008:

 

 

 

 

 

 

 

 

 

 

 

               

 

 

Series

 

Shares

 

Yields

 

               

Insured Investment

 

 

M-7

 

 

1,775

 

 

2.802

%

                     

Insured Municipal

 

 

M-7

 

 

1,999

 

 

2.802

%

 

 

 

R-7

 

 

1,999

 

 

2.802

%

 

 

 

F-7

 

 

1,999

 

 

2.802

%

                     

Bond Investment

 

 

W-7

 

 

1,047

 

 

2.772

%

                     

Municipal Bond

 

 

T-7

 

 

1,610

 

 

2.742

%

 

 

 

R-7

 

 

1,610

 

 

2.802

%

                     

Municipal Income II

 

 

M-7

 

 

1,660

 

 

2.803

%

 

 

 

T-7

 

 

1,661

 

 

2.742

%

 

 

 

W-7

 

 

1,660

 

 

2.772

%

 

 

 

R-7

 

 

1,661

 

 

2.803

%

                     

California Insured

 

 

F-7

 

 

1,502

 

 

2.802

%

                     

California Bond

 

 

F-7

 

 

1,119

 

 

2.802

%

                     

California Income II

 

 

T-7

 

 

1,195

 

 

2.741

%

 

 

 

R-7

 

 

1,195

 

 

2.803

%

                     

Maryland Bond

 

 

R-7

 

 

640

 

 

2.802

%

                     

New Jersey Bond

 

 

M-7

 

 

768

 

 

2.802

%

                     

New York Insured

 

 

R-7

 

 

1,667

 

 

2.802

%

                     

New York Bond

 

 

T-7

 

 

896

 

 

2.742

%

                     

New York Income II

 

 

W-7

 

 

1,786

 

 

2.772

%

                     

Virginia Bond

 

 

R-7

 

 

487

 

 

2.802

%

                     

Each Trust pays commissions to certain broker-dealers at the end of each auction at an annual rate of 0.25%, calculated on the aggregate principal amount. For the year ended August 31, 2008, Merrill Lynch, Pierce, Fenner & Smith Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commissions as follows:

 

 

 

 

 

 

 

Commissions

 

       

Insured Investment

 

$

4,930

 

Insured Municipal

 

$

19,387

 

Bond Investment

 

$

5,320

 

Municipal Bond

 

$

35,916

 

Municipal Income II

 

$

176,263

 

California Insured

 

$

2,980

 

California Bond

 

$

6,104

 

California Income II

 

$

69,547

 

Maryland Bond

 

$

3,725

 

New Jersey Bond

 

$

12,946

 

New York Insured

 

$

7,060

 

New York Bond

 

$

8,146

 

New York Income II

 

$

37,649

 

Virginia Bond

 

$

2,372

 

         

On June 4, 2008, the Trusts announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 

                   

Insured Investment

 

 

M-7

 

 

6/24/08

 

1,265

 

 

$

31,625,000

 

                           

Insured Municipal

 

 

M-7

 

 

6/24/08

 

1,054

 

 

$

26,350,000

 

 

 

 

R-7

 

 

6/27/08

 

1,054

 

 

$

26,350,000

 

 

 

 

F-7

 

 

6/30/08

 

1,054

 

 

$

26,350,000

 

                           

Bond Investment

 

 

W-7

 

 

6/26/08

 

144

 

 

$

3,600,000

 

                           

Municipal Bond

 

 

T-7

 

 

6/25/08

 

200

 

 

$

5,000,000

 

 

 

 

R-7

 

 

6/27/08

 

200

 

 

$

5,000,000

 

                           

Municipal Income II

 

 

M-7

 

 

6/24/08

 

395

 

 

$

9,875,000

 

 

 

 

T-7

 

 

6/25/08

 

395

 

 

$

9,875,000

 

 

 

 

W-7

 

 

6/26/08

 

395

 

 

$

9,875,000

 

 

 

 

R-7

 

 

6/27/08

 

395

 

 

$

9,875,000

 

                           

California Insured

 

 

F-7

 

 

6/30/08

 

358

 

 

$

8,950,000

 

                           

California Bond

 

 

F-7

 

 

6/30/08

 

80

 

 

$

2,000,000

 

                           

California Income II

 

 

T-7

 

 

6/25/08

 

244

 

 

$

6,100,000

 

 

 

 

R-7

 

 

6/27/08

 

244

 

 

$

6,100,000

 

                           

Maryland Bond

 

 

R-7

 

 

6/27/08

 

80

 

 

$

2,000,000

 

                           

New Jersey Bond

 

 

M-7

 

 

6/24/08

 

41

 

 

$

1,025,000

 

                           

New York Insured

 

 

R-7

 

 

6/27/08

 

573

 

 

$

14,325,000

 

                           

New York Bond

 

 

T-7

 

 

6/25/08

 

72

 

 

$

1,800,000

 

                           

Virginia Bond

 

 

R-7

 

 

6/27/08

 

54

 

 

$

1,350,000

 

                           

The Trusts financed the Preferred Share redemptions with cash received from TOB transactions.

Shares issued and outstanding for the year ended August 31, 2007 remained constant.

Dividends on seven-day Preferred Shares are cumulative at a rate which is reset every seven days based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, the Trust is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on the Preferred Shares is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. During the year ended August 31, 2008, the Preferred Shares of the Trusts were successfully remarketed at each remar-keting date until February 13, 2008. The low, high and average dividend rates on the Preferred Shares for each Trust for the year ended August 31, 2008 were as follows:

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

79



 


 

Notes to Financial Statements (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

                   

 

 

Series

 

Low

 

High

 

Average

 

                   

Insured Investment

 

 

M-7

 

 

2.483

%

 

4.860

%

 

2.883

%

                           

Insured Municipal

 

 

M-7

 

 

2.400

%

 

4.508

%

 

3.212

%

 

 

 

R-7

 

 

1.950

%

 

4.508

%

 

3.121

%

 

 

 

F-7

 

 

2.000

%

 

4.560

%

 

3.159

%

                           

Bond Investment

 

 

W-7

 

 

2.480

%

 

4.780

%

 

3.273

%

                           

Municipal Bond

 

 

T-7

 

 

2.535

%

 

6.000

%

 

3.598

%

 

 

 

R-7

 

 

2.458

%

 

6.000

%

 

3.551

%

                           

Municipal Income II

 

 

M-7

 

 

2.483

%

 

4.600

%

 

3.446

%

 

 

 

T-7

 

 

2.536

%

 

4.399

%

 

3.383

%

 

 

 

W-7

 

 

2.481

%

 

4.500

%

 

3.424

%

 

 

 

R-7

 

 

2.459

%

 

4.600

%

 

3.433

%

                           

California Insured

 

 

F-7

 

 

2.483

%

 

4.508

%

 

3.120

%

                           

California Bond

 

 

F-7

 

 

2.483

%

 

4.970

%

 

3.417

%

                           

California Income II

 

 

T-7

 

 

2.536

%

 

4.356

%

 

3.222

%

 

 

 

R-7

 

 

2.350

%

 

4.508

%

 

3.284

%

                           

Maryland Bond

 

 

R-7

 

 

2.000

%

 

4.900

%

 

3.281

%

                           

New Jersey Bond

 

 

M-7

 

 

2.483

%

 

4.810

%

 

3.357

%

                           

New York Insured

 

 

R-7

 

 

2.100

%

 

6.000

%

 

3.196

%

                           

New York Bond

 

 

T-7

 

 

2.535

%

 

5.500

%

 

3.365

%

                           

New York Income II

 

 

W-7

 

 

2.090

%

 

4.356

%

 

3.221

%

                           

Virginia Bond

 

 

R-7

 

 

2.458

%

 

4.860

%

 

3.415

%

                           

Since February 13, 2008, the Preferred Shares of the Trusts failed to clear any of their auctions. As a result, the Preferred Shares dividend rates were reset to the maximum applicable rate, which ranged from 2.458% to 4.508%. A failed auction is not an event of default for the Trusts but it has a negative impact on the liquidity of Preferred Shares. A failed auction occurs when there are more sellers of a fund’s auction rate preferred shares than buyers. It is impossible to predict how long this imbalance will last. A successful auction for the Trusts’ Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, holders of the Preferred Shares may not have the ability to sell the Preferred Shares at its liquidation preference.

 

 

 

 

 

 

 

 

80

ANNUAL REPORT

AUGUST 31, 2008

 



 


 

Notes to Financial Statements (continued)

5. Income Tax Information:

Reclassifications: Accounting principles generally accepted in the United States of America require that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or on net asset values per share. The following permanent differences as of August 31, 2008 attributable to the reclassification of distributions, amortization methods on fixed income securities, non-deductible expenses and the tax classification of distributions received from a regulated investment company were reclassified to the following accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

 

 

 

 

Insured
Municipal

 

Bond
Investment

 

Municipal
Bond

 

Municipal
Income II

 

California
Insured

 

California
Bond

 

 

 

                           

 

 

Increase (decrease) paid-in capital

 

$

 

$

(216

)

$

 

$

(5,289

)

$

 

$

 

 

 

 

Increase (decrease) undistributed net investment income

 

 

(86

)

 

216

 

 

(589

)

 

4,972

 

 

(58

)

 

(29

)

 

 

 

Increase (decrease) accumulated net realized gain (loss)

 

 

86

 

 

 

 

589

 

 

317

 

 

58

 

 

29

 

 

 

 

                                       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

 

 

 

 

 

 

 

 

 

 

 

California
Income II

 

Maryland
Bond

 

New York
Bond

 

Virginia
Bond

 

 

 

 

 

 

 

 

 

 

                   

 

 

 

 

 

 

 

 

 

Increase (decrease) paid-in capital

 

$

(1,793

)

$

(791

)

$

(889

)

$

(560

)

 

 

 

 

 

 

 

 

 

Increase (decrease) undistributed net investment income

 

 

1,793

 

 

791

 

 

889

 

 

560

 

 

 

 

 

 

 

 

 

 

Increase (decrease) accumulated net realized gain (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                           

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The tax character of distributions paid during the years ended August 31, 2008 and August 31, 2007 was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                             

 

 

Insured
Investment

 

Insured
Municipal

 

Bond
Investment

 

Municipal
Bond

 

Municipal
Income II

 

California
Insured

 

California
Bond

 

                               

Tax-exempt income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

$

8,537,681

 

$

26,084,992

 

$

4,002,593

 

$

12,276,190

 

$

26,211,919

 

$

5,060,164

 

$

3,981,070

 

8/31/07

 

$

8,790,601

 

$

26,427,245

 

$

4,166,843

 

$

13,776,807

 

$

28,834,088

 

$

5,174,303

 

$

4,187,271

 

                                             

Ordinary income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

 

 

 

 

 

130,903

 

 

767,868

 

 

555,732

 

 

 

 

152,539

 

8/31/07

 

 

 

 

472,264

 

 

 

 

 

 

 

 

 

 

 

                                             

Long-term capital gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

 

 

 

 

 

 

 

1,005,577

 

 

 

 

 

 

 

8/31/07

 

 

 

 

1,377,279

 

 

 

 

 

 

 

 

 

 

 

                                             

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

$

8,537,681

 

$

26,084,992

 

$

4,133,496

 

$

14,049,635

 

$

26,767,651

 

$

5,060,164

 

$

4,133,609

 

                                             

8/31/07

 

$

8,790,601

 

$

28,276,788

 

$

4,166,843

 

$

13,776,807

 

$

28,834,088

 

$

5,174,303

 

$

4,187,271

 

                                             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                               

 

 

California
Income II

 

Maryland
Bond

 

New Jersey
Bond

 

New York
Insured

 

New York
Bond

 

New York
Income II

 

Virginia
Bond

 

                                             

Tax-exempt income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

$

8,339,031

 

$

2,261,125

 

$

2,765,306

 

$

6,143,118

 

$

3,241,520

 

$

5,062,849

 

$

1,789,269

 

8/31/07

 

$

8,653,938

 

$

2,357,909

 

$

2,824,513

 

$

6,166,546

 

$

3,314,543

 

$

5,084,774

 

$

1,761,510

 

                                             

Ordinary income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

 

174,151

 

 

85,254

 

 

86,258

 

 

 

 

108,227

 

 

172,985

 

 

63,559

 

8/31/07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                             

Long-term capital gain

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

 

 

 

40,379

 

 

28,734

 

 

303,996

 

 

81,671

 

 

120,168

 

 

 

8/31/07

 

 

 

 

2,830

 

 

 

 

437,259

 

 

 

 

 

 

106,815

 

                                             

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/08

 

$

8,513,182

 

$

2,386,758

 

$

2,880,298

 

$

6,447,114

 

$

3,431,418

 

$

5,356,002

 

$

1,852,828

 

                                             

8/31/07

 

$

8,653,938

 

$

2,360,739

 

$

2,824,513

 

$

6,603,805

 

$

3,314,543

 

$

5,084,774

 

$

1,868,325

 

                                             

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

81



 


 

Notes to Financial Statements (continued)

As of August 31, 2008, the tax components of accumulated earnings (losses) were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                               

 

 

Insured
Investment

 

Insured
Municipal

 

Bond
Investment

 

Municipal
Bond

 

Municipal
Income II

 

California
Insured

 

California
Bond

 

                               

Undistributed tax-exempt income

 

$

779,097

 

$

2,593,244

 

$

166,336

 

$

440,186

 

$

409,447

 

$

312,531

 

$

 

Undistributed ordinary income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital loss carryforwards

 

 

(469,401

)

 

(4,761,864

)

 

(45,701

)

 

(1,183,459

)

 

(6,746,725

)

 

(1,069,649

)

 

(477,260

)

Net unrealized gains (losses)*

 

 

71,889

 

 

(1,803,645

)

 

2,173,063

 

 

(2,027,109

)

 

(7,799,541

)

 

218,683

 

 

2,717,172

 

 

 

                                         

Total Accumulated Net Earnings (Losses)

 

$

381,585

 

$

(3,972,265

)

$

2,293,698

 

$

(2,770,382

)

$

(14,136,819

)

$

(538,435

)

$

2,239,912

 

 

 

                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                             

 

 

California
Income II

 

Maryland
Bond

 

New Jersey
Bond

 

New York
Insured

 

New York
Bond

 

New York
Income II

 

Virginia
Bond

 

                                             

Undistributed tax-exempt income

 

$

243,058

 

$

159,207

 

$

182,631

 

$

729,402

 

$

147,836

 

$

512,324

 

$

280,607

 

Undistributed ordinary income

 

 

 

 

275

 

 

 

 

 

 

 

 

 

 

75,569

 

Undistributed long-term net capital gains (capital loss carryforwards)

 

 

(3,699,611

)

 

8,921

 

 

(25,168

)

 

 

 

 

 

(453,296

)

 

255,705

 

Net unrealized gains (losses)*

 

 

2,227,125

 

 

402,182

 

 

(211,041

)

 

(2,250,694

)

 

1,270,893

 

 

426,139

 

 

691,902

 

 

 

                                         

Total Accumulated Net Earnings (Losses)

 

$

(1,229,428

)

$

570,585

 

$

(53,578

)

$

(1,521,292

)

$

1,418,729

 

$

485,167

 

$

1,303,783

 

 

 

                                         

 

 

*

The difference between book-basis and tax-basis net unrealized gains (losses) is attributable primarily to the tax deferral of losses on wash sales, the difference between book and tax amortization methods for premiums and discounts on fixed income securities, the difference between book and tax treatment of residual interests in tender option bond trusts, the deferral of compensation to trustees, the timing of income recognition on partnership interests and the deferral of post-October capital losses for tax purposes.

As of August 31, 2008, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                               

Expires August 31,

 

Insured
Investment

 

Insured
Municipal

 

Bond
Investment

 

Municipal
Bond

 

Municipal
Income II

 

California
Insured

 

California
Bond

 

                               

2012

 

$

 

$

 

$

 

$

 

$

(5,097,889

)

$

 

$

(477,260

)

2013

 

 

(218,563

)

 

 

 

 

 

 

 

 

 

(717,737

)

 

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

 

(1,544,099

)

 

(45,701

)

 

 

 

 

 

 

 

 

2016

 

 

(250,838

)

 

(3,217,765

)

 

 

 

(1,183,459

)

 

(1,648,836

)

 

(351,912

)

 

 

 

 

                                         

Total

 

$

(469,401

)

$

(4,761,864

)

$

(45,701

)

$

(1,183,459

)

$

(6,746,725

)

$

(1,069,649

)

$

(477,260

)

 

 

                                         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

 

Expires August 31,

 

California
Income II

 

New Jersey
Bond

 

New York
Income II

 

 

 

 

 

 

 

 

 

 

 

 

 

               

 

 

 

 

 

 

 

 

 

 

 

 

2012

 

$

(3,224,992

)

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

(360,789

)

 

 

 

(70,160

)

 

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

(113,830

)

 

(25,168

)

 

(383,136

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

(3,699,611

)

$

(25,168

)

$

(453,296

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

82

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Notes to Financial Statements (continued)

 

6. Concentration Risk:

Each Trust’s investments are concentrated in certain states, which may be affected by adverse financial, social, environmental, economic, regulatory and political factors.

Many municipalities insure repayment of their bonds, which reduces the risk of loss due to issuer default. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

7. Subsequent Events:

The Trusts paid a net investment income dividend to Common Shareholders in the following amounts per share on October 1, 2008 to shareholders of record on September 15, 2008:

 

 

 

 

 

       

 

 

Common
Dividend
Per Share

 

       

Insured Investment

 

$

0.058000

 

Insured Municipal

 

$

0.061000

 

Bond Investment

 

$

0.068800

 

Municipal Bond

 

$

0.072500

 

Municipal Income II

 

$

0.066000

 

California Insured

 

$

0.056000

 

California Bond

 

$

0.062000

 

California Income II

 

$

0.057000

 

Maryland Bond

 

$

0.065400

 

New Jersey Bond

 

$

0.070500

 

New York Insured

 

$

0.058000

 

New York Bond

 

$

0.068000

 

New York Income II

 

$

0.062500

 

Virginia Bond

 

$

0.072428

 

         

The dividends declared on Preferred Shares for the period September 1, 2008 to September 30, 2008 were as follows:

 

 

 

 

 

 

 

 

           

 

 

Series

 

Dividends
Declared

 

           

Insured Investment

 

 

M-7

 

$

161,627

 

               

Insured Municipal

 

 

M-7

 

$

182,027

 

 

 

 

R-7

 

$

216,571

 

 

 

 

F-7

 

$

175,837

 

               

Bond Investment

 

 

W-7

 

$

113,436

 

               

Municipal Bond

 

 

T-7

 

$

163,664

 

 

 

 

R-7

 

$

174,427

 

               

Municipal Income II

 

 

M-7

 

$

151,191

 

 

 

 

T-7

 

$

168,856

 

 

 

 

W-7

 

$

179,867

 

 

 

 

R-7

 

$

179,973

 

               

California Insured

 

 

F-7

 

$

132,119

 

               

California Bond

 

 

F-7

 

$

98,430

 

               

California Income II

 

 

T-7

 

$

121,483

 

 

 

 

R-7

 

$

129,484

 

               

Maryland Bond

 

 

R-7

 

$

69,337

 

               

New Jersey Bond

 

 

M-7

 

$

69,933

 

               

New York Insured

 

 

R-7

 

$

180,602

 

               

New York Bond

 

 

T-7

 

$

91,083

 

               

New York Income II

 

 

W-7

 

$

193,520

 

               

Virginia Bond

 

 

R-7

 

$

52,761

 

               

On September 12, 2008, the Board of Insured Investment, Insured Municipal, California Insured and New York Insured voted unanimously to change certain investment guidelines of the Trusts. Under normal circumstances, the Trusts are required to invest at least 80% of their managed assets in municipal bonds either (i) insured under an insurance policy purchased by the Trusts or (ii) insured under an insurance policy obtained by the issuer of the municipal bond or any other party. Historically, the Trusts have had an additional non-fundamental investment policy limiting their purchases of insured municipal bonds to those bonds insured by insurance providers with claims-paying abilities rated AAA or Aaa at the time of investment.

Following the onset of the credit and liquidity crises currently troubling the financial markets, the applicable rating agencies lowered the claims-paying ability rating of most of the municipal bond insurance providers below the highest rating category. As a result, the Advisor recommended, and the Board approved, an amended policy with respect to the purchase of insured municipal bonds that such bonds must be insured by insurance providers or other entities with claims-paying abilities rated at least investment grade. This investment grade restriction is measured at the time of investment, and the Trusts will not be required to dispose of municipal bonds they hold in the event of subsequent downgrades. The Trusts’ new investment policy is, under normal conditions, to invest at least 80% of their assets in municipal bonds insured by insurers or other entities with claims-paying abilities rated AAA or Aaa at the time of investment. Due to recent downgrades, some of the insurers insuring a portion of the Trusts’ current holdings are already rated below the highest rating category.

In addition, on September 12, 2008, the Board of Insured Investment and Bond Investment (formerly BlackRock Florida Insured Municipal Income Trust and BlackRock Florida Municipal Bond Trust, respectively) voted unanimously to change a non-fundamental investment policy of the Trusts, and to rename the Trusts “BlackRock Insured Municipal Income Investment Trust” and “BlackRock Municipal Bond Investment Trust” respectively. The Trusts’ previous policy required the Trusts, under normal circumstances, to invest at least 80% of their total assets in Florida municipal bonds insured by insurers with claims-paying abilities rated AAA or Aaa at the time of investment. Due to the repeal of the Florida Intangible Personal Property Tax as of January 2007, the Board has approved an amended policy allowing the Trusts flexibility to invest in municipal obligations regardless of geographic location, as well as revising the policy with respect to the claims-paying ability rating adopted by the Trusts. Under current market conditions, the Advisor anticipates that it will gradually reposition each Trust’s portfolio over time and that during such period the Trusts may continue to hold a substantial portion of their assets in Florida municipal bonds. At this time, it is uncertain how long the repositioning may take, and the Trusts will continue to be subject to risks associated with investing a significant portion of their assets in Florida municipal bonds until the repositioning is complete.

The changes to the Trusts’ non-fundamental investment policies described above do not alter the Trusts’ investment objectives.

The Advisor and the Board believe the amended policies will allow the Advisor to better manage the Trusts’ portfolios in the best interests of the Trusts’ shareholders and meet the Trusts’ investment objectives.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

83



 

 


 

Notes to Financial Statements (concluded)

 

On September 15, 2008, Bank of America Corporation announced that it has agreed to acquire Merrill Lynch, one of the principal owners of BlackRock, Inc. The purchase has been approved by the directors of both companies. Subject to shareholder and regulatory approvals, the transaction is expected to close in the first quarter of 2009.

As of August 31, 2008, Municipal Bond and Municipal Income II held bonds guaranteed by Lehman Brothers Holdings Inc. (“Lehman”) valued at $908,200 and $1,153,414, respectively. On September 15, 2008, Lehman filed for Chapter 11 bankruptcy, which adversely impacted the value of the bonds. Collectability of principal and interest on these bonds is not guaranteed.

 

 

 

 

 

 

 

 

84

ANNUAL REPORT

AUGUST 31, 2008

 



 

 


 

Report of Independent Registered Public Accounting Firm


 

To the Trustees and Shareholders of:

BlackRock Insured Municipal Income Investment Trust

BlackRock Insured Municipal Income Trust

BlackRock Municipal Bond Investment Trust

BlackRock Municipal Bond Trust

BlackRock Municipal Income Trust II

BlackRock California Insured Municipal Income Trust

BlackRock California Municipal Bond Trust

BlackRock California Municipal Income Trust II

BlackRock Maryland Municipal Bond Trust

BlackRock New Jersey Municipal Bond Trust

BlackRock New York Insured Municipal Income Trust

BlackRock New York Municipal Bond Trust

BlackRock New York Municipal Income Trust II

BlackRock Virginia Municipal Bond Trust:

We have audited the accompanying statements of assets and liabilities of BlackRock Insured Municipal Income Investment Trust (formerly BlackRock Florida Insured Municipal Income Trust), BlackRock Insured Municipal Income Trust, BlackRock Municipal Bond Investment Trust (formerly BlackRock Florida Municipal Bond Trust), BlackRock Municipal Bond Trust, BlackRock Municipal Income Trust II, BlackRock California Insured Municipal Income Trust, BlackRock California Municipal Bond Trust, BlackRock California Municipal Income Trust II, BlackRock Maryland Municipal Bond Trust, BlackRock New Jersey Municipal Bond Trust, BlackRock New York Insured Municipal Income Trust, BlackRock New York Municipal Bond Trust, BlackRock New York Municipal Income Trust II, and BlackRock Virginia Municipal Bond Trust (each a “Trust” and collectively the “Trusts”), including the schedules of investments, as of August 31, 2008, and the related statements of operations 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 ended August 31, 2008. These financial statements and financial highlights are the responsibility of the Trusts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trusts are not required to have, nor were we engaged to perform an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures include confirmation of the securities owned as of August 31, 2008, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Trusts as of August 31, 2008, the results of their operations for the year then ended, the changes in their 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 ended August 31, 2008, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
October 27, 2008

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

85



 


 

Important Tax Information

All of the net investment income distributions paid by BlackRock Insured Municipal Income Investment Trust, BlackRock Insured Municipal Income Trust and BlackRock California Insured Municipal Income Trust during the taxable year ended August 31, 2008 qualify as tax-exempt interest dividends for Federal income tax purposes.

The following tables summarize the taxable per share distributions paid by the following Trusts during the taxable year ended August 31, 2008:

 

 

 

 

 

 

 

 

 

 

                   

BlackRock Municipal Bond
Investment Trust

 

Payable
Date

 

Ordinary
Income

 

 

 

 

                 

Common Shareholders

 

1/14/2008

 

$

0.029219

 

 

 

 

Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series W7

 

4/10/2008

 

$

28.23

 

 

 

 

                   

 

 

 

 

 

 

 

 

 

 

                   

BlackRock Municipal
Bond Trust

 

Payable
Date

 

Ordinary
Income

 

Long-Term
Capital Gains

 

               

Common Shareholders:

 

12/31/2007

 

$

0.022094

 

$

0.074385

 

 

 

1/14/2008

 

$

0.034702

 

 

None

 

Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series T7

 

11/28/2007

 

$

4.94

 

$

16.64

 

 

 

12/5/2007

 

$

6.59

 

$

22.18

 

 

 

12/12/2007

 

$

5.49

 

$

18.48

 

 

 

4/9/2008

 

$

31.11

 

 

None

 

 

 

12/19/2007

 

$

2.77

 

$

9.34

 

Series R7

 

11/23/2007

 

$

5.05

 

$

17.00

 

 

 

11/30/2007

 

$

6.59

 

$

22.18

 

 

 

12/7/2007

 

$

4.94

 

$

16.64

 

 

 

12/14/2007

 

$

3.02

 

$

10.18

 

 

 

4/11/2008

 

$

30.81

 

 

None

 

                   

 

 

 

 

 

 

 

 

 

 

             

 

 

 

BlackRock Municipal
Income Trust II

 

Payable
Date

 

Ordinary
Income

 

 

 

 

           

 

 

 

Common Shareholders

 

1/14/2008

 

$

0.017869

 

 

 

 

Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series M7

 

4/8/2008

 

$

17.30

 

 

 

 

Series T7

 

4/9/2008

 

$

17.34

 

 

 

 

Series W7

 

4/10/2008

 

$

17.55

 

 

 

 

Series R7

 

4/11/2008

 

$

17.44

 

 

 

 

             

 

 

 

 

 

 

 

 

 

 

 

 

 

             

 

 

 

BlackRock California
Municipal Bond Trust

 

Payable
Date

 

Ordinary
Income

 

 

 

 

           

 

 

 

Common Shareholders

 

1/14/2008

 

$

0.03378

 

 

 

 

Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series F7

 

4/14/2008

 

$

31.53

 

 

 

 

             

 

 

 

 

 

 

 

 

 

 

 

 

 

             

 

 

 

BlackRock California
Municipal Income Trust II

 

Payable
Date

 

Ordinary
Income

 

 

 

 

           

 

 

 

Common Shareholder

 

1/14/2008

 

$

0.015741

 

 

 

 

Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series T7

 

4/9/2008

 

$

16.64

 

 

 

 

Series R7

 

4/11/2008

 

$

16.93

 

 

 

 

             

 

 

 


 

 

 

 

 

 

 

 

 

 

                   

BlackRock Maryland
Municipal Bond Trust

 

Payable
Date

 

Ordinary
Income

 

Long-Term
Capital Gains

 

               

Common Shareholders:

 

12/31/2007

 

 

None

 

$

.014651

 

 

 

1/14/2008

 

$

0.030933

 

 

None

 

Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series R7

 

11/23/2008

 

 

None

 

$

14.67

 

 

 

4/11/2008

 

$

30.97

 

 

None

 

                   

 

 

 

 

 

 

 

 

 

 

                   

BlackRock New Jersey
Municipal Bond Trust

 

Payable
Date

 

Ordinary
Income

 

Long-Term
Capital Gains

 

                   

Common Shareholders:

 

12/31/2007

 

 

None

 

$

0.009532

 

 

 

1/14/2008

 

$

.028614

 

 

None

 

Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series M7

 

11/27/2007

 

 

None

 

$

8.48

 

 

 

4/7/2008

 

$

25.46

 

 

None

 

                   

 

 

 

 

 

 

 

 

 

 

                   

BlackRock New York
Insured Municipal Income Trust

 

Payable
Date

 

Ordinary
Income

 

Long-Term
Capital Gains

 

               

Common Shareholders

 

12/31/2007

 

 

None

 

$

0.034240

 

Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series W7

 

4/10/2008

 

 

None

 

$

27.81

 

Series F7

 

4/14/2008

 

 

None

 

$

27.56

 

                   

 

 

 

 

 

 

 

 

 

 

                   

BlackRock New York
Municipal Bond Trust

 

Payable
Date

 

Ordinary
Income

 

Long-Term
Capital Gains

 

               

Common Shareholders:

 

12/31/2007

 

 

None

 

$

0.022584

 

 

 

1/14/2008

 

$

0.029927

 

 

None

 

Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series T7

 

11/28/2007

 

 

None

 

$

20.28

 

 

 

4/9/2008

 

$

26.88

 

 

None

 

                   

 

 

 

 

 

 

 

 

 

 

                   

BlackRock New York
Municipal Income Trust II

 

Payable
Date

 

Ordinary
Income

 

Long-Term
Capital Gains

 

               

Common Shareholders:

 

12/31/2007

 

 

None

 

$

0.017157

 

 

 

1/14/2008

 

$

0.024698

 

 

None

 

Preferred Shareholders:

 

 

 

 

 

 

 

 

 

Series W7

 

11/29/2007

 

 

None

 

$

12.33

 

 

 

12/6/2007

 

 

None

 

$

7.50

 

 

 

4/10/2008

 

$

28.54

 

 

None

 

                   

 

 

 

 

 

 

 

 

 

 

             

 

 

 

BlackRock Virginia
Municipal Bond Trust

 

Payable
Date

 

Ordinary
Income

 

 

 

 

             

 

 

 

Common Shareholders:

 

1/14/2008

 

$

0.031152

 

 

 

 

Preferred Shareholders;

 

 

 

 

 

 

 

 

 

Series R7

 

4/11/2008

 

$

28.37

 

 

 

 

             

 

 

 

All other net investment income distributions paid by the Trusts during the taxable year ended August 31, 2008 qualify as tax-exempt interest dividends for Federal income tax purposes.

 

 

 

 

 

 

 

 

86

ANNUAL REPORT

AUGUST 31, 2008

 



 


 

Disclosure of Investment Advisory Agreement and Subadvisory Agreement

The Board of Trustees (collectively, the “Board,” the members of which are referred to as “Trustees”) of the BlackRock California Insured Municipal Income Trust (“BCK”), BlackRock Municipal Income Trust II (“BLE”), BlackRock California Municipal Bond Trust (“BZA”), BlackRock California Municipal Income Trust II (“BCL”), BlackRock Insured Municipal Income Investment Trust (formerly, BlackRock Florida Insured Municipal Income Trust) (“BAF”), BlackRock Municipal Bond Investment Trust (formerly, BlackRock Florida Municipal Bond Trust) (“BIE”), BlackRock New Jersey Municipal Bond Trust (“BLJ”), BlackRock Insured Municipal Income Trust (“BYM”), BlackRock Maryland Municipal Bond Trust (“BZM”), BlackRock Municipal Bond Trust (“BBK”), BlackRock New York Insured Municipal Income Trust (“BSE”), BlackRock New York Municipal Bond Trust (“BQH”), BlackRock New York Municipal Income Trust II (“BFY”) and BlackRock Virginia Municipal Bond Trust (“BHV,” and together with BCK, BLE, BZA, BCL, BAF, BIE, BLJ, BYM, BZM, BBK, BSE, BQH and BFY, the “Funds”) met in April and May 2008 to consider approving the continuation of each Fund’s investment advisory agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Advisor”), each Fund’s investment advisor. The Board also considered the approval of each Fund’s subadvisory agreement (each, a “Subadvisory Agreement” and, together with the “Advisory Agreement,” the “Agreements”) between the Advisor and BlackRock Financial Management, Inc. (the “Subadvisor”). The Advisor and the Subadvisor are collectively referred to herein as the “Advisors” and, together with BlackRock, Inc., “BlackRock.”

Activities and Composition of the Board

The Board of each Fund consists of thirteen individuals, eleven of whom are not “interested persons” of the Funds as defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Trustees”). The Trustees 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 Trustees have retained independent legal counsel to assist them in connection with their duties. The Chairman of the Board is an Independent Trustee. The Board has established four standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee and a Performance Oversight Committee.

Advisory Agreement and Subadvisory Agreement

Upon the consummation of the combination of BlackRock, Inc.’s investment management business with Merrill Lynch & Co., Inc.’s investment management business, including Merrill Lynch Investment Managers, L.P., and certain affiliates, each Fund entered into an Advisory Agreement and a Subadvisory Agreement, each with an initial two-year term. Consistent with the 1940 Act, after the Advisory Agreement’s and Subadvisory Agreement’s respective initial two-year term, the Board is required to consider the continuation of each Fund’s Advisory Agreement and Subadvisory Agreement on an annual basis. In connection with this process, the Board assessed, among other things, the nature, scope and quality of the services provided to each Fund by the personnel of BlackRock and its affiliates, including investment advisory services, administrative services, secondary market support services, oversight of fund accounting and custody, and assistance in meeting legal and regulatory requirements. The Board also received and assessed information regarding the services provided to each Fund by certain unaffiliated service providers.

Throughout the year, the Board also considered a range of information in connection with its oversight of the services provided by BlackRock and its affiliates. Among the matters the Board considered were: (a) investment performance for one-, three- and five-year periods, as applicable, against peer funds, as well as senior management and portfolio managers’ analysis of the reasons for underperformance, if applicable; (b) fees, including advisory, administration and other fees paid to BlackRock and its affiliates by each Fund, as applicable; (c) Fund operating expenses paid to third parties; (d) the resources devoted to and compliance reports relating to each Fund’s investment objective, policies and restrictions; (e) each Fund’s compliance with its Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls; (h) BlackRock’s implementation of the proxy voting guidelines approved by the Board; (i) execution quality; (j) valuation and liquidity procedures; and (k) reviews of BlackRock’s business, including BlackRock’s response to the increasing scale of its business.

Board Considerations in Approving the Advisory Agreement and Subadvisory Agreement

To assist the Board in its evaluation of the Agreements, the Trustees received information from BlackRock in advance of the April 22, 2008 meeting which detailed, among other things, the organization, business lines and capabilities of the Advisors, including: (a) the responsibilities of various departments and key personnel and biographical information relating to key personnel; (b) financial statements for BlackRock; (c) the advisory and/or administrative fees paid by each Fund to the Advisors, including comparisons, compiled by Lipper Inc. (“Lipper”), an independent third party, with the management fees, which include advisory and administration fees, of funds with similar investment objectives (“Peers”); (d) the profitability of BlackRock and certain industry profitability analyses for advisors to registered investment companies; (e) the expenses of BlackRock in providing various services; (f) non-investment advisory reimbursements, if applicable, and “fallout” benefits to BlackRock; (g) economies of scale, if any, generated through the Advisors’ management of all of the BlackRock closed-end funds (the “Fund Complex”); (h) the expenses of each Fund, including comparisons of each such Fund’s expense ratios (both before and after any fee waivers) with the expense ratios of its Peers; (i) an internal comparison of management fees classified by Lipper, if applicable; and (j) each Fund’s performance for the past one-, three- and five-year periods, as applicable, as well as each Fund’s performance compared to its Peers.

The Board also considered other matters it deemed important to the approval process, where applicable, such as payments made to BlackRock or its affiliates relating to the distribution of Fund shares, services related to the valuation and pricing of Fund portfolio holdings, and direct and indirect benefits to BlackRock and its affiliates from their relationship with the Funds.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

87



 


 

Disclosure of Investment Advisory Agreement and Subadvisory Agreement (continued)

In addition to the foregoing materials, independent legal counsel to the Independent Trustees provided a legal memorandum outlining, among other things, the duties of the Board under the 1940 Act, as well as the general principles of relevant law in reviewing and approving advisory contracts, the requirements of the 1940 Act in such matters, an advisor’s fiduciary duty with respect to advisory agreements and compensation, and the standards used by courts in determining whether investment company boards of directors have fulfilled their duties and the factors to be considered by boards in voting on advisory agreements.

The Independent Trustees reviewed this information and discussed it with independent legal counsel prior to the meeting on April 22, 2008. At the Board meeting on April 22, 2008, BlackRock made a presentation to and responded to questions from the Board. Following the meeting on April 22, 2008, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written materials provided to the Trustees prior to the meetings on May 29 and 30, 2008. At the Board meetings on May 29 and 30, 2008, BlackRock responded to further questions from the Board. In connection with BlackRock’s presentations, the Board considered each Agreement and, in consultation with independent legal counsel, reviewed the factors set out in judicial decisions and Securities and Exchange Commission (“SEC”) statements relating to the renewal of the Agreements.

Matters Considered by the Board

In connection with its deliberations with respect to the Agreements, the Board considered all factors it believed relevant with respect to each Fund, including the following: the nature, extent and quality of the services provided by the Advisors; the investment performance of each Fund; the costs of the services to be provided and profits to be realized by the Advisors and their affiliates from their relationship with the Funds; the extent to which economies of scale would be realized as the Fund Complex grows; and whether BlackRock realizes other benefits from its relationship with the Funds.

A. Nature, Extent and Quality of the Services: In evaluating the nature, extent and quality of the Advisors’ services, the Board reviewed information concerning the types of services that the Advisors provide and are expected to provide to each Fund, narrative and statistical information concerning each Fund’s performance record and how such performance compares to each Fund’s Peers, information describing BlackRock’s organization and its various departments, the experience and responsibilities of key personnel and available resources. The Board noted the willingness of the personnel of BlackRock to engage in open, candid discussions with the Board. The Board further considered the quality of the Advisors’ investment process in making portfolio management decisions.

In addition to advisory services, the Trustees considered the quality of the administrative and non-investment advisory services provided to the Funds. The Advisors and their affiliates provided each Fund with such administrative and other services, as applicable (in addition to any such services provided by others for the Funds), and officers and other personnel as are necessary for the operations of the respective Fund. In addition to investment management services, the Advisors and their affiliates provided each Fund with services such as: preparing shareholder reports and communications, including annual and semi-annual financial statements and the Funds’ websites; communications with analysts to support secondary market trading; assisting with daily accounting and pricing; preparing periodic filings with regulators and stock exchanges; overseeing and coordinating the activities of other service providers; administering and organizing Board meetings and preparing the Board materials for such meetings; providing legal and compliance support (such as helping to prepare proxy statements and responding to regulatory inquiries); and performing other Fund administrative tasks necessary for the operation of the respective Fund (such as tax reporting and fulfilling regulatory filing requirements). The Board considered the Advisors’ policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Funds and BlackRock: As previously noted, the Board received performance information regarding each Fund and its Peers. Among other things, the Board received materials reflecting each Fund’s historic performance and each Fund’s one-, three- and five-year total returns (as applicable) relative to its Peers (including the Peers’ median performance). The Board was provided with a description of the methodology used by Lipper to select each Fund’s Peers. The Board noted that it regularly reviews the performance of each Fund throughout the year. The Board reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper rankings.

The Board noted that in general the Funds performed better than their respective Peers in that their performance was at or above the median of their respective Peers in at least two of the one-, three- and five-year periods reported.

C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Funds: In evaluating the management fees and expenses that each Fund is expected to bear, the Board considered each Fund’s current management fee structure and each Fund’s expense ratios in absolute terms as well as relative to the fees and expense ratios of its applicable Peers. The Board, among other things, reviewed comparisons of each Fund’s gross management fees before and after any applicable reimbursements and fee waivers and total expense ratios before and after any applicable waivers with those of applicable Peers. The Board also reviewed a narrative analysis of the Peer rankings prepared by Lipper and summarized by BlackRock at the request of the Board. This summary placed the Peer rankings into context by analyzing various factors that affect these comparisons.

The Board noted that each of BCK, BLE, BZA, BCL, BAF, BBK, BSE, BQH, BYM and BFY paid contractual management fees lower than or equal to the median contractual fees paid by each Fund’s respective Peers. This comparison was made without giving effect to any expense reimbursements or fee waivers.

 

 

 

 

 

 

 

 

88

ANNUAL REPORT

AUGUST 31, 2008

 



 


 

Disclosure of Investment Advisory Agreement and Subadvisory Agreement (concluded)

The Board noted that, although BLJ paid contractual management fees higher than the median of its Peers, such fees were no more than 5 basis points greater than the median amount and therefore considered not to be materially higher than its Peers. This comparison was made without giving effect to any expense reimbursements or fee waivers.

The Board noted that, although BIE, BZM and BHV paid contractual management fees that were higher than the median of their respective Peers, each Fund’s actual management fees were below the median of its respective Peers.

The Board also compared the management fees charged and services provided by the Advisors to closed-end funds in general versus other types of clients (such as open-end investment companies and separately managed institutional accounts) in similar investment categories. The Board noted certain differences in services provided and costs incurred by the Advisor with respect to closed-end funds compared to these other types of clients and the reasons for such differences.

In connection with the Board’s consideration of the fees and expense information, the Board reviewed the considerable investment management experience of the Advisors and considered the high level of investment management, administrative and other services provided by the Advisors.

D. Profitability of BlackRock: The Board also considered BlackRock’s profitability in conjunction with its review of fees. The Board reviewed BlackRock’s profitability with respect to the Fund Complex and other fund complexes managed by the Advisors. In reviewing profitability, the Board recognized that one of the most difficult issues in determining profitability is establishing a method of allocating expenses. The Board also reviewed BlackRock’s assumptions and methodology of allocating expenses, noting the inherent limitations in allocating costs among various advisory products. The Board also recognized that individual fund or product line profitability of other advisors is generally not publicly available.

The Board recognized that profitability may be affected by numerous factors including, among other things, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited. Nevertheless, to the extent available, the Board considered BlackRock’s operating margin compared to the operating margin estimated by BlackRock for a leading investment management firm whose operations consist primarily of advising closed-end funds. The comparison indicated that BlackRock’s operating margin was approximately the same as the operating margin of such firm.

In evaluating the reasonableness of the Advisors’ compensation, the Board also considered any other revenues paid to the Advisors, including partial reimbursements paid to the Advisors for certain non-investment advisory services, if applicable. The Board noted that these payments were less than the Advisors’ costs for providing these services. The Board also considered indirect benefits (such as soft dollar arrangements) that the Advisors and their affiliates are expected to receive, which are attributable to their management of the Fund.

E. Economies of Scale: In reviewing each Fund’s fees and expenses, the Board examined the potential benefits of economies of scale, and whether any economies of scale should be reflected in the Fund’s fee structure, for example through the use of breakpoints for the Fund or the Fund Complex. In this regard, the Board reviewed information provided by BlackRock, noting that most closed-end fund complexes do not have fund-level breakpoints because closed-end funds generally do not experience substantial growth after their initial public offering and each fund is managed independently consistent with its own investment objectives. The Board noted that only three closed-end funds in the Fund Complex have breakpoints in their fee structures. Information provided by Lipper also revealed that only one closed-end fund complex used a complex-level breakpoint structure. The Board found, based on its review of comparable funds, that each Fund’s management fee is appropriate in light of the scale of the respective Fund.

F. Other Factors: In evaluating fees, the Board also considered indirect benefits or profits the Advisors or their affiliates may receive as a result of their relationships with the Funds (“fall-out benefits”). The Trustees, including the Independent Trustees, considered the intangible benefits that accrue to the Advisors and their affiliates by virtue of their relationships with the Funds, including potential benefits accruing to the Advisors and their affiliates as a result of participating in offerings of the Funds’ shares, potentially stronger relationships with members of the broker-dealer community, increased name recognition of the Advisors and their affiliates, enhanced sales of other investment funds and products sponsored by the Advisors and their affiliates and increased assets under management which may increase the benefits realized by the Advisors from soft dollar arrangements with broker-dealers. The Board also considered the unquantifiable nature of these potential benefits.

Conclusion with Respect to the Agreements

In reviewing and approving the continuation of the Agreements, the Trustees did not identify any single factor discussed above as all-important or controlling, but considered all factors together, and different Trustees may have attributed different weights to the various factors considered. The Independent Directors were also assisted by the advice of independent legal counsel in making this determination. The Trustees, including the Independent Trustees, unanimously determined that each of the factors described above, in light of all the other factors and all of the facts and circumstances applicable to each respective Fund, was acceptable for each Fund and supported the Trustees’ conclusion that the terms of each Agreement were fair and reasonable, that each Fund’s fees are reasonable in light of the services provided to the respective Fund and that each Agreement should be approved.

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

89



 


 

Automatic Dividend Reinvestment Plans

Pursuant to each Trust’s Dividend Reinvestment Plan (the “Plan”), common shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

After a Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ accounts, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market, on the Trust’s primary exchange or elsewhere (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as “market premium”), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases.

Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 43078, Providence, RI 02940-3078 or by calling (800) 699-1BFM. All overnight correspondence should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021.

See Notes to Financial Statements.

 

 

 

 

 

 

 

 

90

ANNUAL REPORT

AUGUST 31, 2008

 



 

 

 


 

Officers and Trustees


 

 

 

 

 

 

 

 

 

 

 

Name, Address and
Year of Birth

 

Position(s) Held
with Trusts

 

Length of
Time Served as
Trustee2

 

Principal Occupation(s)
During Past Five Years

 

Number of
BlackRock-
Advised Funds
and Portfolios
Overseen

 

Public Directorships

 

Non-Interested Trustees1

 

Richard E. Cavanagh
40 East 52nd Street
New York, NY 10022

1946

 

Chairman of the
Board and Trustee

 

Since 1994

 

Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life Insurance Company of America since 1998; Chairman and Trustee, Educational Testing Service since 1997; Director, The Fremont Group since 1996; Formerly President and Chief Executive Officer of The Conference Board, Inc. (global business research organization) from 1995 to 2007.

 

113 Funds
110 Portfolios

 

Arch Chemical (chemical and allied products)

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Karen P. Robards
40 East 52nd Street
New York, NY 10022

1950

 

Vice Chair of the Board, Chair of the Audit Committee and Trustee

 

Since 2007

 

Partner of Robards & Company, LLC, (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development, (a not-for-profit organization) since 1987; Formerly Director of Enable Medical Corp. from 1996 to 2005; Formerly an investment banker at Morgan Stanley from 1976 to 1987.

 

112 Funds
109 Portfolios

 

AtriCure, Inc. (medical devices); Care Investment Trust, Inc. (health care REIT)

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

G. Nicholas Beckwith, III
40 East 52nd Street
New York, NY 10022

1945

 

Trustee

 

Since 2007

 

Chairman and Chief Executive Officer, Arch Street Management, LLC (Beckwith Family Foundation) and various Beckwith property companies since 2005; Chairman of the Board of Directors, University of Pittsburgh Medical Center since 2002; Board of Directors, Shady Side Hospital Foundation since 1977; Board of Directors, Beckwith Institute for Innovation In Patient Care since 1991; Member, Advisory Council on Biology and Medicine, Brown University since 2002; Trustee, Claude Worthington Benedum Foundation (charitable foundation) since 1989; Board of Trustees, Chatham College since 1981; Board of Trustees, University of Pittsburgh since 2002; Emeritus Trustee, Shady Side Academy since 1977; Formerly Chairman and Manager, Penn West Industrial Trucks LLC (sales, rental and servicing of material handling equipment) from 2005 to 2007; Formerly Chairman, President and Chief Executive Officer, Beckwith Machinery Company (sales, rental and servicing of construction and equipment) from 1985 to 2005; Formerly Board of Directors, National Retail Properties (REIT) from 2006 to 2007.

 

112 Funds
109 Portfolios

 

None

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Kent Dixon
40 East 52nd Street
New York, NY 10022

1937

 

Trustee And Member of the Audit Committee

 

Since 1988

 

Consultant/Investor since 1988.

 

113 Funds
110 Portfolios

 

None

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Frank J. Fabozzi
40 East 52nd Street
New York, NY 10022

1948

 

Trustee and Member of the Audit Committee

 

Since 1988

 

Consultant/Editor of The Journal of Portfolio Management since 2006; Professor in the Practice of Finance and Becton Fellow, Yale University, School of Management, since 2006; Formerly Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006.

 

113 Funds
110 Portfolios

 

None

 

                     

 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

91




 

 

 


 

Officers and Trustees (continued)


 

 

 

 

 

 

 

 

 

 

 

Name, Address and
Year of Birth

 

Position(s) Held
with Fund

 

Length of
Time Served

 

Principal Occupation(s)
During Past Five Years

 

Number of
BlackRock-
Advised Funds
and Portfolios
Overseen

 

Public Directorships

 

Non-Interested Trustees1

 

 

 

 

 

 

 

 

 

 

 

 

Kathleen F. Feldstein
40 East 52nd Street
New York, NY 10022

1941

 

Trustee

 

Since 2005

 

President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital since 2000; Member of the Corporation of Partners Community Healthcare, Inc. since 2005; Member of the Corporation of Partners HealthCare since 1995; Member of the Corporation of Sherrill House (healthcare) since 1990; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003; Trustee, The Committee for Economic Development (research organization) since 1990; Member of the Advisory Board to the International School of Business, Brandeis University since 2002; Formerly Director of Bell South (communications) from 1998 to 2006; Formerly Director of Ionics (water purification) from 1992 to 2005; Formerly Director of John Hancock Financial Services from 1994 to 2003; Formerly Director of Knight Ridder (media) from 1998 to 2006.

 

113 Funds
110 Portfolios

 

The McClatchy Company (publishing)

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

James T. Flynn
40 East 52nd Street
New York, NY 10022

1939

 

Trustee and Member of the Audit Committee

 

Since 2007

 

Formerly Chief Financial Officer of JP Morgan & Co., Inc. from 1990 to 1995.

 

112 Funds
109 Portfolios

 

None

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Jerrold B. Harris
40 East 52nd Street
New York, NY 10022

1942

 

Trustee

 

Since 2007

 

Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000.

 

112 Funds
109 Portfolios

 

BlackRock-Kelso Capital Corp.

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

R. Glenn Hubbard
40 East 52nd Street
New York, NY 10022

1958

 

Trustee

 

Since 2004

 

Dean of Columbia Business School since 2004; Columbia faculty member since 1988; Formerly Co-Director of Columbia Business School’s Entrepreneurship Program from 1997 to 2004; Visiting Professor at the John F. Kennedy School of Government at Harvard University and the Harvard Business School since 1985 and at the University of Chicago since 1994; Formerly Chairman of the U.S. Council of Economic Advisers under the President of the United States from 2001 to 2003.

 

113 Funds
110 Portfolios

 

ADP (data and information services), KKR Financial Corporation (finance), Duke Realty (real estate), Metropolitan Life Insurance Company (insurance), Information Services Group (media/technology)

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

W. Carl Kester
40 East 52nd Street
New York, NY 10022

1951

 

Trustee and Member of the Audit Committee

 

Since 2007

 

Mizuho Financial Group Professor of Finance, Harvard Business School. Deputy Dean for Academic Affairs since 2006; Unit Head, Finance, Harvard Business School, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program of Harvard Business School, from 1999 to 2005; Member of the faculty of Harvard Business School since 1981; Independent Consultant since 1978.

 

112 Funds
109 Portfolios

 

None

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Robert S. Salomon, Jr.
40 East 52nd Street
New York, NY 10022

1936

 

Trustee and Member of the Audit Committee

 

Since 2007

 

Formerly Principal of STI Management LLC (investment adviser) from 1994 to 2005.

 

112 Funds
109 Portfolios

 

None

 

                     

 

 

1

Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

2

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 Trust’s board in 2007, each trustee first became a member of the board of trustees of other legacy MLIM or legacy BlackRock Funds as follows: G. Nicholas Beckwith, III since 1999; Richard E. Cavanagh since 1994; Kent Dixon since 1988; Frank J. Fabozzi since 1988; Kathleen F. Feldstein since 2005; James T. Flynn since 1996; Jerrold B. Harris since 1999; R. Glenn Hubbard since 2004; W. Carl Kester since 1998; Karen P. Robards since 1998 and Robert S. Salomon, Jr. since 1996.


 

 

 

 

 

 

 

 

92

ANNUAL REPORT

AUGUST 31, 2008

 




 

 

 


 

Officers and Trustees (continued)


 

 

 

 

 

 

 

 

 

 

 

Name, Address and
Year of Birth

 

Position(s) Held
with Trusts

 

Length of
Time Served as
a Trustee

 

Principal Occupation(s)
During Past Five Years

 

Number of
BlackRock-
Advised Funds
and Portfolios
Overseen

 

Public Directorships

 

Interested Trustees1

 

 

 

 

 

 

 

 

 

 

 

 

Richard S. Davis
40 East 52nd Street
New York, NY 10022

1945

 

Trustee

 

Since 2007

 

Managing Director, BlackRock, Inc. since 2005; Formerly Chief Executive Officer, State Street Research & Management Company from 2000 to 2005; Formerly Chairman of the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005; Formerly Chairman, SSR Realty from 2000 to 2004.

 

185 Funds
295 Portfolios

 

None

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Henry Gabbay
40 East 52nd Street
New York, NY 10022

1947

 

Trustee

 

Since 2007

 

Consultant, BlackRock, Inc. since 2007; Formerly Managing Director, BlackRock, Inc. from 1989 to 2007; Formerly Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; Formerly President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Formerly Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.

 

184 Funds
294 Portfolios

 

None

 

 

 

 

 

 

 

 

 

 

 

 

Trust Officers2

 

 

 

 

 

 

 

 

 

 

 

 

Donald C. Burke
40 East 52nd Street
New York, NY 10022

1960

 

Trust President and Chief Executive Officer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2006; Formerly Managing Director of Merrill Lynch Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. (“FAM”) in 2006; First Vice President thereof from 1997 to 2005; Treasurer thereof from 1999 to 2006 and Vice President thereof from 1990 to 1997.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Anne F. Ackerley
40 East 52nd Street
New York, NY 10022

1962

 

Vice President

 

Since 2003

 

Managing Director of BlackRock, Inc. since 2000; Chief Operating Officer of BlackRock’s U.S. Retail Group since 2006; Head of BlackRock’s Mutual Fund Group from 2000 to 2006; Merrill Lynch & Co., Inc. from 1984 to 1986 and from 1988 to 2000, most recently as First Vice President and Operating Officer of the Mergers and Acquisitions Group.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Neal J. Andrews
40 East 52nd Street
New York, NY 10022

1966

 

Chief Financial Officer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. (formerly PFPC Inc.) from 1992 to 2006.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Jay M. Fife
40 East 52nd Street
New York, NY 10022

1970

 

Treasurer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Formerly Assistant Treasurer of the MLIM/FAM advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Brian P. Kindelan
40 East 52nd Street
New York, NY 10022

1959

 

Chief Compliance Officer of the Trusts

 

Since 2007

 

Chief Compliance Officer of the BlackRock-advised Funds since 2007; Anti-Money Laundering Officer of the BlackRock-advised Funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, Inc. from 2001 to 2004 and Vice President and Senior Counsel thereof from 1998 to 2000; Formerly Senior Counsel of The PNC Bank Corp. from 1995 to 1998.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

Howard Surloff
40 East 52nd Street
New York, NY 10022

1965

 

Secretary

 

Since 2007

 

Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; Formerly General Counsel (U.S.) of Goldman Sachs Asset Management, L.P. from 1993 to 2006.

 

 

 

 

 

                     

 

 

1

Messrs. Davis and Gabbay are both “interested persons,” as defined in the Investment Company Act of 1940, of the Trusts based on their positions with BlackRock, Inc. and its affiliates. Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

2

Officers of the Trusts serve at the pleasure of the Board of Trustees.


 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

93




 

 

 


 

BlackRock Closed-End Funds


 

Custodian

State Street Bank and Trust

Company

Boston, MA 02101

 

Trusts Address

BlackRock Closed-End

Funds

c/o BlackRock Advisors. LLC

100 Bellevue Parkway

Wilmington, DE 19809

 

Transfer Agents

Common Shares:

Computershare Trust

Companies, N.A.

Canton, MA 02021

 

Preferred Shares:

For the Insured Trusts and

Bond Trusts

BNY Mellon

Shareowner Services

Jersey City, NJ 07310

For the Income II Trusts

Deutsche Bank Trust

Company Americas

New York, NY 10005

 

Accounting Agent

State Street Bank and Trust

Company

Princeton, NJ 08540

 

Independent Registered

Public Accounting Firm

Deloitte & Touche LLP

Princeton, NJ 08540

 

Legal Counsel

Skadden, Arps, Slate,

Meagher & Flom LLP

New York, NY 10036


 

 

 

 

 

 

 

 

94

ANNUAL REPORT

AUGUST 31, 2008

 



 


 

Additional Information


 

Fund Certification

 

Those Trusts listed for trading on the New York Stock Exchange (“NYSE”) have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. Each Fund filed with the SEC the certification of their chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

 

Availability of Quarterly Schedule of Investments

 

Each Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Each Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC.

 

Information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330. Each Trust’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

 

Electronic Delivery

 

Electronic copies of most financial reports are available on the Trusts’ website or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses 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.

 

General Information

 

The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statements of Additional Information of the Trusts have not been updated after completion of the Trusts’ offerings and the information contained in the Trusts’ Statements of Additional Information may have become outdated.

 

During the period, there were no material changes in the Trusts’ investment objectives or policies, other than as disclosed in Note 7 of the Notes to Financial Statements or to the Trusts’ charters or by-laws that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.

 

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please contact the Trusts at (800) 441-7762

 

Quarterly performance, semi-annual and annual reports and other information regarding each Trust 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 each Trust and does not, and is not intended to, incorporate BlackRock’s website into this report.


 

 

 

 

 

 

 

 

 

ANNUAL REPORT

AUGUST 31, 2008

95



 


 

Additional Information (concluded)


 

Statement of Preferences

 

Effective May 30, 2008, following approval by the Trusts’ Board and the applicable ratings agencies, the Trust’s Statement of Preferences was amended in order to facilitate the redemption of the Trusts’ Preferred Shares. The following sentence was added to the optional redemption section of each Trust’s Statement of Preferences:

 

For the purposes of this section, the term “liquid securities” shall include:

 

(i) any committed financing pursuant to a credit agreement, reverse repurchase agreement facility or similar credit arrangement, in each case which makes available to the Trust, no later than the day preceding the applicable redemption date, cash in an amount not less than the aggregate amount due to holders by reason of the redemption of their shares of Preferred Shares on such redemption date; and (ii) cash amounts due and payable to the Trust out of a sale of its securities if such cash amount is not less than the aggregate amount due to holders by reason of the redemption of their shares of Preferred Shares on such redemption date and such sale will be settled not later than the day preceding the applicable redemption date.

 

Effective September 13, 2008, following approval by the Funds’ Board and the applicable rating agencies, the Board amended the terms of the Funds’ Preferred Shares in order to allow the Funds to enter into TOB transactions, the proceeds of which were used to redeem a portion of the Funds’ Preferred Shares. Accordingly, the definition of Inverse Floaters was amended to incorporate the Funds’ permissible ratio of floating rate instruments into inverse floating rate instruments. Additionally, conforming changes and certain formula modifications concerning inverse floaters were made to the definitions of Moody’s Discount Factor and S&P Discount Factor, as applicable, to integrate the Funds’ investments in TOBs into applicable calculations.

 

BlackRock Privacy Principles

 

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively,” Clients”) and to safeguarding their nonpublic personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

 

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

 

BlackRock obtains or verifies personal nonpublic information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

 

BlackRock does not sell or disclose to nonaffiliated third parties any nonpublic information about its Clients, except as permitted by law or as necessary to service Client accounts. These nonaffiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

 

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to nonpublic personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the nonpublic personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

 

 

 

 

 

 

 

 

 

 

96

ANNUAL REPORT

AUGUST 31, 2008

 



[This page intentionally left blank]


[This page intentionally left blank]


This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares and the risk that fluctuations in the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling toll-free (800) 441-7762; (2) at www.blackrock.com; and (3) on the Securities and Exchange Commission’s website at http://www.sec.gov. Information about how each Trust voted proxies relating to securities held in each Trust’s portfolio during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

 

 

(PAPERLESS LOGO)

(BLACKROCK LOGO)


 

 

 

 

 

 

 

 

#CEF-AR-I-0808


Item 2 –         Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.
 
   
Item 3 – Audit Committee Financial Expert – The registrant’s board of directors or trustees, as applicable (the “board of directors”) has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:
   
  Kent Dixon
  Frank J. Fabozzi
  James T. Flynn (term began effective November 1, 2007)
  W. Carl Kester (term began effective November 1, 2007)
  Karen P. Robards (term began effective November 1, 2007)
  Robert S. Salomon, Jr. (term began effective November 1, 2007)
   
  The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.
   
  Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements.
 
   
  Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms.Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.
 
 
   
  Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.
 
 


Item 4 –         Principal Accountant Fees and Services

 
   
(a) Audit Fees
 
(b) Audit-Related Fees1
 
(c) Tax Fees2
 
(d) All Other Fees3
    Current   Previous   Current   Previous   Current   Previous   Current   Previous
    Fiscal Year   Fiscal Year   Fiscal Year   Fiscal Year   Fiscal Year   Fiscal Year   Fiscal Year   Fiscal Year
     Entity Name   End   End   End   End   End   End   End   End
BlackRock
Municipal Income
Trust II
  $26,800   $35,200   $3,500   $1,975   $6,100   $6,100   $1,049   $1,042

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax planning.
3 The nature of the services include a review of compliance procedures and attestation thereto.

                (e)(1) Audit Committee Pre-Approval Policies and Procedures:
       The registrant’s audit committee (the “Committee”) has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the registrant’s affiliated service providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SEC’s auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operation or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 for all of the registrants the Committee oversees. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.
 
 
 
       Any proposed services exceeding the pre-approved cost levels will require specific pre- approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to one or more of its members the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.
 
   
  (e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
   
  (f) Not Applicable
   
  (g) Affiliates’ Aggregate Non-Audit Fees:

 
    Current Fiscal Year   Previous Fiscal Year
               Entity Name   End   End
 
BlackRock Municipal Income
Trust II
  $298,149   $293,617


  (h) The registrant’s audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant’s investment advisor (not including any non-affiliated sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by the registrant’s investment advisor), and any entity controlling, controlled by, or under common control with the investment advisor that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
 
   
  Regulation S-X Rule 2-01(c)(7)(ii) – $287,500, 0%
   
Item 5 –         Audit Committee of Listed Registrants – The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):
   
  Richard E. Cavanagh (not reappointed to audit committee as of November 1, 2007)
  Kent Dixon
  Frank J. Fabozzi
  James T. Flynn (term began effective November 1, 2007)
  W. Carl Kester (term began effective November 1, 2007)
  Karen P. Robards (term began effective November 1, 2007)
  Robert S. Salomon, Jr. (term began effective November 1, 2007)
   
Item 6 – Investments
  (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.
  (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
   
Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – The board of directors has delegated the voting of proxies for the Fund securities to the Fund’s investment advisor (“Investment Advisor”) pursuant to the Investment Advisor’s proxy voting guidelines. Under these guidelines, the Investment Advisor 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 Advisor, or any affiliated person of the Fund or the Investment Advisor, on the other. In such event, provided that the Investment Advisor’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 Advisor’s clients. If the Investment Advisor 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 Advisor’s Portfolio Management Group and/or the Investment Advisor’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 August 31, 2008.
   
  (a)(1) BlackRock Municipal Income Trust II is managed by a team of investment professionals comprised of Theodore R. Jaeckel, Jr., CFA and Walter O’Connor. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to- day management of the Fund’s portfolio, which includes setting the Fund’s overall investment strategy, overseeing the management of the Fund and/or selection of its investments. Messrs. Jaeckel and O’Connor have been members of the Fund’s management team since 2006.
 
   
  Mr. Jaeckel joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing Director (Municipal Tax-Exempt Fund Management) of Merrill Lynch Investment Managers, L.P. (“MLIM”) from 2005 to 2006 and a Director of MLIM from 1997 to 2005. He has been a portfolio manager with BlackRock or MLIM since 1991.
 
   
  Mr. O’Connor joined BlackRock in 2006. Prior to joining BlackRock, he was a Managing Director (Municipal Tax-Exempt Fund Management) of MLIM from 2003 to 2006 and was a Director of MLIM from 1997 to 2002. He has been a portfolio manager with BlackRock or MLIM since 1991.
   
  (a)(2) As of August 31, 2008:

 
    Number of Other Accounts Managed   Number of Other Accounts and
    and Assets by Account Type   Assets for Which Advisory Fee is
               
Performance-Based
    Other   Other Pooled       Other   Other Pooled    
Name of   Registered   Investment   Other   Registered   Investment   Other
Portfolio Manager   Investment   Vehicles   Accounts   Investment   Vehicles   Accounts
    Companies           Companies        
Theodore R. Jaeckel, Jr.   81   0   0   0   0   0
    $19.4 Billion   $0   $0   $0   $0   $0
Walter O’Connor   81   0   0   0   0   0
    $19.4 Billion   $0   $0   $0   $0   $0


  (iv) Potential Material Conflicts of Interest
   
  BlackRock, Inc. and its affiliates (collectively, herein “BlackRock”) has built a professional workingenvironment, firm-wide compliance culture and compliance procedures and systems designed toprotect against potential incentives that may favor one account over another. BlackRock has adoptedpolicies and procedures that address the allocation of investment opportunities, execution ofportfolio transactions, personal trading by employees and other potential conflicts of interest that aredesigned to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRockfurnishes investment management and advisory services to numerous clients in addition to the Fund,and BlackRock may, consistent with applicable law, make investment recommendations to otherclients or accounts (including accounts which are hedge funds or have performance or higher feespaid to BlackRock, or in which portfolio managers have a personal interest in the receipt of suchfees), which may be the same as or different from those made for the Fund. In addition, BlackRock,its affiliates and any officer, director, stockholder or employee may or may not have an interest inthe securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or any of
 
 
 


  its affiliates, or any officer, director, stockholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock’s (or its affiliates’) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or the officers, directors or employees of any of them has any substantial economic interest or possesses material non-public information. Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. In this regard, it should be noted that a portfolio manager may currently manage certain accounts that are subject to performance fees. In addition, a portfolio manager may assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees.
 
 
 
   
  As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time. This policy also seeks to achieve reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base.
 
   
  (a)(3) As of August 31, 2008:
   
  Portfolio Manager Compensation Overview
   
  BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance- based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock such as its Long-Term Retention and Incentive Plan.
 
   
  Base compensation. Generally, portfolio managers receive base compensation based on their seniority and/or their position with the firm. Senior portfolio managers who perform additional management functions within the portfolio management group or within BlackRock may receive additional compensation for serving in these other capacities.
 
   
  Discretionary Incentive Compensation
   
  Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s seniority, role within the portfolio management team, teamwork and contribution to the overall performance of these portfolios and BlackRock. In most cases, including for the portfolio managers
 


  of the Fund, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment Officers determine the benchmarks against which the performance of funds and other accounts managed by each portfolio manager is compared and the period of time over which performance is evaluated. With respect to the portfolio managers, such benchmarks for the Fund include a combination of market-based indices (e.g. Lehman Brothers Municipal Bond Index), certain customized indices and certain fund industry peer groups.
 
 
   
  BlackRock’s Chief Investment Officers make a subjective determination with respect to the portfolio managers’ compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks noted above. Performance is measured on both a pre-tax and after-tax basis over various time periods including 1, 3, 5 and 10- year periods, as applicable.
 
   
  Distribution of Discretionary Incentive Compensation
   
  Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of annual bonuses in stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods.
 
   
       Long-Term Retention and Incentive Plan (“LTIP”) — The LTIP is a long-term incentive plan that seeks to reward certain key employees. Beginning in 2006, awards are granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the attainment of certain performance goals, will be settled in BlackRock, Inc. common stock. Messrs. Jaeckel and O’Connor have each received awards under the LTIP.
 
   
       Deferred Compensation Program — A portion of the compensation paid to eligible BlackRock employees may be voluntarily deferred into an account that tracks the performance of certain of the firm’s investment products. Each participant in the deferred compensation program is permitted to allocate his deferred amounts among the various investment options. Each portfolio manager has participated in the deferred compensation program.
 
   
  Other compensation benefits. In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:
   
       Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3% of eligible compensation, plus an additional contribution of 2% for any year in which BlackRock has positive net operating income. The RSP offers a range of investment options, including registered investment companies managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent employee investment direction, are invested into a balanced portfolio. The ESPP allows for
 
 


  investment in BlackRock common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares or a dollar value of $25,000. Each portfolio manager is eligible to participate in these plans.
   
  (a)(4) Beneficial Ownership of Securities. As of August 31, 2008, neither of Messrs. Jaeckel or O’Connor beneficially owned any stock issued by the Fund.
   
Item 9 –         Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated
  Purchasers – Not Applicable due to no such purchases during the period covered by this report.
   
Item 10 – Submission of Matters to a Vote of Security Holders – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.
 
   
Item 11 – Controls and Procedures
   
11(a) – The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
 
   
11(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
 
   
Item 12 – Exhibits attached hereto
   
12(a)(1) – Code of Ethics – See Item 2
   
12(a)(2) – Certifications – Attached hereto
   
12(a)(3) – Not Applicable
   
12(b) – Certifications – Attached hereto


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Municipal Income Trust II

By:  /s/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer of
  BlackRock Municipal Income Trust II                

Date: October 20, 2008

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/ Donald C. Burke
  Donald C. Burke
  Chief Executive Officer (principal executive officer) of
  BlackRock Municipal Income Trust II     

Date: October 20, 2008

By:  /s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of  
 
BlackRock Municipal Income Trust II     

Date: October 20, 2008