Table of Contents
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 811-05611
Name of Fund: BlackRock MuniVest Fund, Inc. (MVF)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniVest Fund, Inc., 55 East 52nd Street, New York, NY 10055
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 08/31/2013
Date of reporting period: 02/28/2013
Table of Contents
Item 1 – Report to Stockholders
Table of Contents
FEBRUARY 28, 2013
|
SEMI-ANNUAL REPORT (UNAUDITED)
|
|
BlackRock Municipal Bond Investment Trust (BIE)
BlackRock Municipal Bond Trust (BBK)
BlackRock Municipal Income Investment Quality Trust (BAF)
BlackRock Municipal Income Quality Trust (BYM)
BlackRock Municipal Income Trust II (BLE)
BlackRock MuniHoldings Investment Quality Fund (MFL)
BlackRock MuniVest Fund, Inc. (MVF)
| Not FDIC Insured • May Lose Value • No Bank Guarantee |
Table of Contents
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| Financial Statements: | ||||
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| 2 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Dear Shareholder |
Despite a number of headwinds, risk assets generated strong returns during the 6- and 12-month periods as investors sought meaningful yields in the ongoing low-interest-rate environment. About this time one year ago, the European debt crisis returned to the headlines as unresolved policy decisions left it unclear as to how troubled peripheral countries would finance their sovereign debt, causing yields to soar. In the second quarter of 2012, political instability in Greece and severe deficit and liquidity problems in Spain raised the specter of a full-blown euro collapse. Alongside the drama in Europe, investors were discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, emerged as a particular concern. As the outlook for the global economy worsened, however, investors grew increasingly optimistic that the world’s largest central banks would soon intervene to stimulate growth. This theme, along with the announcement of the European Central Bank’s (“ECB’s”) firm commitment to preserve the euro currency bloc, drove most asset classes higher through the summer. Policy relief came in early September, when the ECB announced its decision to support the eurozone’s debt-laden countries with unlimited purchases of short term sovereign debt. Days later, the US Federal Reserve announced its own much-anticipated stimulus package.
Although financial markets world-wide were buoyed by accommodative monetary policies, risk assets weakened in the fall. Global trade began to slow as many European countries fell into recession and growth continued to decelerate in China, where a once-a-decade leadership change compounded uncertainty. In the United States, stocks slid on lackluster corporate earnings reports and market volatility rose in advance of the US Presidential election. In the post-election environment, investors grew increasingly concerned over the “fiscal cliff,” the automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013. There was widespread fear that the fiscal cliff would push the United States into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that bipartisan gridlock would preclude a timely budget deal triggered higher levels of volatility in financial markets around the world in the months leading up to the last day of the year. Ultimately, the worst of the fiscal cliff was averted with a last-minute tax deal; however, decisions relating to spending cuts and the debt ceiling continued to weigh on investors’ minds.
Investors shook off the nerve-wracking finale to 2012 and began the New Year with a powerful equity rally. Money that had been pulled to the sidelines amid year-end tax-rate uncertainty poured back into the markets in January. Key indicators signaled modest but broad-based improvements in the world’s major economies, particularly in China. Global equities soared through January while rising US Treasury yields pressured high-quality fixed income assets. However, bond markets strengthened in February when economic momentum slowed and investors toned down their risk appetite. US stocks continued to rise, but at a more moderate pace. Uncertainty about how long the Federal Reserve would maintain its easing bias drove high levels of volatility later in the month, but these fears abated as the budget sequester (automatic spending cuts scheduled to take effect March 1) began to appear imminent and was deemed likely to deter any near-term curtailment of monetary easing policies. Outside the United States, equities largely declined as political uncertainty escalated after the Italian presidential election ended in a stalemate.
On the whole, riskier asset classes outperformed lower-risk investments for the 6- and 12-month periods ended February 28, 2013. International, US small cap and emerging market equities were the leading asset classes for the 6-month period, while US stocks and high yield bonds generated the strongest returns for the 12-month period. US Treasury yields remained relatively low overall, but have inched higher in recent months, pressuring Treasuries and investment-grade bonds. Tax-exempt municipal bonds, however, continued to benefit from favorable supply-and-demand dynamics. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.
Investors continue to face many of the same risks as in years past. But we see a world of possibilities. BlackRock was built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. Investors everywhere are asking, “So what do I do with my money?” Visit www.blackrock.com for answers.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
“Despite a number of headwinds, risk assets generated strong returns during the 6- and 12-month periods as investors sought meaningful yields in the ongoing low-interest-rate environment.”
Rob Kapito
President, BlackRock Advisors, LLC
| Total Returns as of February 28, 2013 | ||||||||
| 6-month | 12-month | |||||||
| US large cap equities |
8.95 | % | 13.46 | % | ||||
| US small cap equities |
13.02 | 14.02 | ||||||
| International equities |
14.41 | 9.84 | ||||||
| Emerging market equities |
12.06 | 0.28 | ||||||
| 3-month Treasury bill |
0.05 | 0.11 | ||||||
| US Treasury securities |
(1.51 | ) | 3.66 | |||||
| US investment grade |
0.15 | 3.12 | ||||||
| Tax-exempt municipal |
2.40 | 5.71 | ||||||
| US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index) |
6.67 | 11.79 | ||||||
| Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. | ||||||||
| THIS PAGE NOT PART OF YOUR FUND REPORT | 3 |
Table of Contents
| Municipal Market Overview | ||||
| For the Reporting Period Ended February 28, 2013 |
Municipal Bonds Performed Well
Market conditions remained favorable even though supply picked up considerably in the past year. Total new issuance for the 12 months ended February 28, 2013 was $383 billion as compared to $303 billion in the prior 12-month period. However, it is important to note that a significant portion (roughly 60%) of the new supply during the most recent 12-month period was attributable to refinancing activity as issuers took advantage of lower interest rates to reduce their borrowing costs.
Increased supply was met with strong demand during the period as investors were starved for yield in the low- rate environment. Investors poured into municipal bond mutual funds, particularly long-duration and high-yield funds as they tend to provide higher levels of income. For the 12 months ended February 28, 2013, municipal bond fund inflows exceeded $46 billion (according to the Investment Company Institute).
|
S&P Municipal Bond Index Total Returns as of February 28, 2013 6 months: 2.40% 12 months: 5.71% |
A Closer Look at Yields
From February 29, 2012 to February 28, 2013, muni yields declined by 32 basis points (“bps”) from 3.23% to 2.91% on AAA-rated 30-year municipal bonds, while falling a modest 4 bps from 1.85% to 1.81% on 10-year bonds and rising 9 bps from 0.68% to 0.77% on 5-year bonds (as measured by Thomson Municipal Market Data). (Bond prices rise as yields fall.) Overall, the municipal yield curve remained relatively steep, but flattened over the 12-month period as the spread between 2- and 30-year maturities tightened by 37 bps and the spread between 2- and 10-year maturities tightened by 9 bps.
During the same time period, US Treasury rates fell by 10 bps in both the 5- and 10-year space while rising 1 bp on 30-year bonds. Accordingly, tax-exempt municipal bonds moderately underperformed Treasuries in the 5- and 10-year space, but significantly outperformed Treasury bonds on the long end of the curve. This outperformance was driven largely by a supply/demand imbalance within the municipal market while evidence of a recovering domestic economy pushed interest rates higher. Additionally, as higher US tax rates began to appear imminent late in 2012, municipal bonds benefited from the increased appeal of tax-exempt investing. Municipals have become an appropriate avenue for investors seeking yield in the low-rate environment as the asset class is known for its lower volatility and preservation of earnings as tax rates rise.
Financial Conditions of Municipal Issuers Continue to Improve
Austerity and de-leveraging have been the general themes across the country as states seek to balance their budgets, although a small number of states continue to rely on a “kick-the-can” approach to close their budget gaps. Broadly speaking, state governments have demonstrated better fiscal health as their revenues have steadily improved in recent years. Many local municipalities, however, continue to face higher costs passed down from the state level. BlackRock maintains the view that municipal bond defaults will be minimal and remain in the periphery, and that the overall market is fundamentally sound. We continue to recognize that careful credit research and security selection remain imperative amid uncertainty in this economic environment.
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
| 4 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| The Benefits and Risks of Leveraging | ||||
The Trusts may utilize leverage to seek to enhance the yield and net asset value (“NAV”) of their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.
To obtain leverage, the Trusts issue Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (VRDP Shares and VMTP Shares are collectively referred to as “Preferred Shares”). Preferred Shares pay dividends at prevailing short-term interest rates, and the Trusts invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Trust on its longer-term portfolio investments. To the extent that the total assets of each Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Trust’s shareholders will benefit from the incremental net income.
The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV. However, in order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be lower than if the Trusts had not used leverage.
To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Trust with assets received from Preferred Shares issuance earn income based on long-term interest rates. In this case, the dividends paid to holders of Preferred Shares (“Preferred Shareholders”) are significantly lower than the income earned on the Trust’s long-term investments, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.
If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Trust pays higher short-term interest rates whereas the Trust’s total portfolio earns income based on lower long-term interest rates.
Furthermore, the value of the Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Trusts’ Preferred Shares and/or debt securities does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAVs positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares and borrowings discussed above.
The Trusts may also leverage their assets through the use of tender option bond trusts (“TOBs”), as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Trusts with economic benefits in periods of declining short-term interest rates, but expose the Trusts to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trusts, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Trust’s NAV per share.
The use of leverage may enhance opportunities for increased income to the Trusts and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts’ NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Trusts’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Trust’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. Each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Trust to incur losses. The use of leverage may limit each Trust’s ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by rating agencies that rate the Preferred Shares issued by the Trusts. Each Trust will incur expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares.
Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Trusts are permitted to issue senior securities in the form of equity securities (e.g., Preferred Shares) up to 50% of their total managed assets (each Trust’s total assets less the sum of its accrued liabilities). In addition, each Trust with VRDP or VMTP Shares limits its economic leverage to 45% of its total managed assets. As of February 28, 2013, the Trusts had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:
| Percent of Economic Leverage |
||||
| BIE |
39 | % | ||
| BBK |
36 | % | ||
| BAF |
36 | % | ||
| BYM |
37 | % | ||
| BLE |
39 | % | ||
| MFL |
40 | % | ||
| MVF |
39 | % | ||
| Derivative Financial Instruments | ||||
The Trusts may invest in various derivative financial instruments, including financial futures contracts and options, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Trusts’ ability to use a derivative financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Trust to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Trust can realize on an investment, may result in lower dividends paid to shareholders or may cause a Trust to hold an investment that it might otherwise sell. The Trusts’ investments in these instruments are discussed in detail in the Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 5 |
Table of Contents
| Trust Summary as of February 28, 2013 | BlackRock Municipal Bond Investment Trust |
| Trust Overview |
BlackRock Municipal Bond Investment Trust’s (BIE) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax and Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
| Performance |
| Ÿ | For the six months ended February 28, 2013, the Trust returned 4.15% based on market price and 3.94% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. |
| Ÿ | The Trust’s holdings in the State of California contributed positively to performance. While federal tax rate increases were supportive of municipal bonds overall, the addition of a state tax rate increase in California made these issues even more compelling on an after-tax basis. Also enhancing results were holdings in the health, education and transportation sectors. Particularly strong returns came from the Trust’s lower-quality holdings in those sectors, which benefited from strong demand as investors sought higher-yielding investments in the low interest rate environment. |
| Ÿ | Conversely, exposure to Puerto Rico sales tax bonds had a negative impact on performance as the continued decline of the local economy and concerns about credit rating downgrades resulted in falling prices across Puerto Rico-issued securities broadly. |
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
| Trust Information |
| Symbol on New York Stock Exchange (“NYSE”) |
BIE | |
| Initial Offering Date |
April 30, 2002 | |
| Yield on Closing Market Price as of February 28, 2013 ($16.83)1 |
5.56% | |
| Tax Equivalent Yield2 |
9.82% | |
| Current Monthly Distribution per Common Share3 |
$0.0780 | |
| Current Annualized Distribution per Common Share3 |
$0.9360 | |
| Economic Leverage as of February 28, 20134 |
39% |
| 1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| 2 | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| 3 | The Monthly Distribution per Common Share, declared on March 1, 2013, was decreased to $0.076 per share. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. |
| 4 | Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5. |
| 6 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| BlackRock Municipal Bond Investment Trust |
| Market Price and Net Asset Value |
The table below summarizes the changes in the Trust’s market price and NAV per share:
| 2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
| Market Price |
$ | 16.83 | $ | 16.61 | 1.32 | % | $ | 17.99 | $ | 16.20 | ||||||||||
| Net Asset Value |
$ | 17.07 | $ | 16.88 | 1.13 | % | $ | 17.70 | $ | 16.61 | ||||||||||
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:
| Sector Allocation |
| 2/28/13 | 8/31/12 | |||||||
| County/City/Special District/School District |
21 | % | 19 | % | ||||
| Transportation |
21 | 18 | ||||||
| Health |
16 | 17 | ||||||
| Utilities |
16 | 16 | ||||||
| Education |
11 | 12 | ||||||
| State |
9 | 12 | ||||||
| Housing |
4 | 4 | ||||||
| Corporate |
1 | 1 | ||||||
| Tobacco |
1 | 1 | ||||||
| Credit Quality Allocation1 |
| 2/28/13 | 8/31/12 | |||||||
| AAA/Aaa |
13 | % | 15 | % | ||||
| AA/Aa |
57 | 60 | ||||||
| A |
26 | 20 | ||||||
| BBB/Baa |
4 | 5 | ||||||
| 1 | Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings. |
| Call/Maturity Schedule2 |
| Calendar Year Ended December 31, |
||||
| 2013 |
— | |||
| 2014 |
4 | % | ||
| 2015 |
— | |||
| 2016 |
2 | |||
| 2017 |
1 |
| 2 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 7 |
Table of Contents
| Trust Summary as of February 28, 2013 | BlackRock Municipal Bond Trust | |||
| Trust Overview |
BlackRock Municipal Bond Trust’s (BBK) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from regular federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
| Performance |
| Ÿ | For the six months ended February 28, 2013, the Trust returned 4.98% based on market price and 5.01% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. 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 following discussion relates to performance based on NAV. |
| Ÿ | The Trust’s lower-quality investment grade holdings contributed positively to performance as the tightening of credit spreads drove their outperformance over higher-quality bonds during the period. Additional positive performance came from the Trust’s allocations to the higher-yielding health, corporate and school district sectors. Heavy exposure to California credits, the best performing state for the period, boosted returns. The Trust also benefited from the roll-down effect, whereby effective maturities become shorter with the passing of the year and therefore bonds are evaluated at lower yield levels, which, in a steep yield curve environment, results in higher prices. |
| Ÿ | Detracting from performance was the Trust’s neutral-to-long average duration (greater sensitivity to interest rates) as most of the municipal yield curve experienced slightly higher yields and lower bond prices. The Trust’s yield curve positioning favoring longer-dated maturities also had a negative effect. Exposure to Puerto Rico credits detracted from results as the commonwealth’s deteriorating credit metrics and ratings downgrades led to the underperformance of those issues. |
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
| Trust Information |
| Symbol on NYSE |
BBK | |
| Initial Offering Date |
April 30, 2002 | |
| Yield on Closing Market Price as of February 28, 2013 ($17.35)1 |
5.78% | |
| Tax Equivalent Yield2 |
10.21% | |
| Current Monthly Distribution per Common Share3 |
$0.0835 | |
| Current Annualized Distribution per Common Share3 |
$1.0020 | |
| Economic Leverage as of February 28, 20134 |
36% |
| 1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| 2 | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| 3 | The Monthly Distribution per Common Share, declared on March 1, 2013, was decreased to $0.0785 per share. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. |
| 4 | Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5. |
| 8 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| BlackRock Municipal Bond Trust |
| Market Price and Net Asset Value |
The table below summarizes the changes in the Trust’s market price and NAV per share:
| 2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
| Market Price |
$ | 17.35 | $ | 17.16 | 1.11 | % | $ | 18.74 | $ | 16.85 | ||||||||||
| Net Asset Value. |
$ | 16.98 | $ | 16.79 | 1.13 | % | $ | 17.62 | $ | 16.56 | ||||||||||
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:
| Sector Allocation |
| 2/28/13 | 8/31/12 | |||||||
| Health |
23 | % | 25 | % | ||||
| County/City/Special District/School District |
14 | 13 | ||||||
| Utilities |
14 | 8 | ||||||
| Transportation |
13 | 13 | ||||||
| State |
12 | 14 | ||||||
| Education |
11 | 11 | ||||||
| Housing |
6 | 8 | ||||||
| Corporate |
6 | 5 | ||||||
| Tobacco |
1 | 3 | ||||||
| Credit Quality Allocation1 |
| 2/28/13 | 8/31/12 | |||||||
| AAA/Aaa |
6 | % | 9 | % | ||||
| AA/Aa |
40 | 35 | ||||||
| A |
30 | 26 | ||||||
| BBB/Baa |
12 | 18 | ||||||
| BB/Ba |
5 | 4 | ||||||
| B |
1 | 2 | ||||||
| Not Rated2 |
6 | 6 | ||||||
| 1 | Using the higher of S&P’s or Moody’s ratings. |
| 2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2013 and August 31, 2012, the market value of these securities was $4,854,688, representing 2%, and $3,199,110, representing 1%, respectively, of the Trust’s long-term investments. |
| Call/Maturity Schedule3 |
| Calendar Year Ended December 31, |
||||
| 2013 |
9 | % | ||
| 2014 |
5 | |||
| 2015 |
2 | |||
| 2016 |
3 | |||
| 2017 |
3 |
| 3 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 9 |
Table of Contents
| Trust Summary as of February 28, 2013 | BlackRock Municipal Income Investment Quality Trust |
| Trust Overview |
BlackRock Municipal Income Investment Quality Trust’s (BAF) (the “Trust”) investment objective is to provide current income exempt from federal income tax, including the alternative minimum tax and Florida intangible property tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in municipal bonds exempt from federal income taxes, including the alternative minimum tax. The Trust also invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
| Performance |
| Ÿ | For the six months ended February 28, 2013, the Trust returned 2.83% based on market price and 3.50% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. |
| Ÿ | The Trust’s holdings in the State of California contributed positively to performance. While federal tax rate increases were supportive of municipal bonds overall, the addition of a state tax rate increase in California made these issues even more compelling on an after-tax basis. Also enhancing results were holdings in the health, education and transportation sectors. Particularly strong returns came from the Trust’s lower-quality holdings in those sectors, which benefited from strong demand as investors sought higher-yielding investments in the low interest rate environment. |
| Ÿ | Conversely, exposure to Puerto Rico sales tax bonds had a negative impact on performance as the continued decline of the local economy and concerns about credit rating downgrades resulted in falling prices across Puerto Rico-issued securities broadly. |
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
| Trust Information |
| Symbol on NYSE |
BAF | |
| Initial Offering Date |
October 31, 2002 | |
| Yield on Closing Market Price as of February 28, 2013 ($16.29)1 |
5.05% | |
| Tax Equivalent Yield2 |
8.92% | |
| Current Monthly Distribution per Common Share3 |
$0.0685 | |
| Current Annualized Distribution per Common Share3 |
$0.8220 | |
| Economic Leverage as of February 28, 20134 |
36% |
| 1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| 2 | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| 3 | The distribution rate is not constant and is subject to change. |
| 4 | Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5. |
| 10 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| BlackRock Municipal Income Investment Quality Trust |
| Market Price and Net Asset Value |
The table below summarizes the changes in the Trust’s market price and NAV per share:
| 2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
| Market Price |
$ | 16.29 | $ | 16.24 | 0.31 | % | $ | 17.49 | $ | 15.80 | ||||||||||
| Net Asset Value |
$ | 16.69 | $ | 16.53 | 0.97 | % | $ | 17.35 | $ | 16.26 | ||||||||||
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:
| Sector Allocation |
| 2/28/13 | 8/31/12 | |||||||
| County/City/Special District/School District |
31 | % | 29 | % | ||||
| Transportation |
20 | 19 | ||||||
| Utilities |
17 | 20 | ||||||
| Health |
11 | 12 | ||||||
| State |
10 | 8 | ||||||
| Education |
9 | 10 | ||||||
| Housing |
1 | 1 | ||||||
| Tobacco |
1 | 1 | ||||||
| Credit Quality Allocation1 |
| 2/28/13 | 8/31/12 | |||||||
| AAA/Aaa |
10 | % | 11 | % | ||||
| AA/Aa |
69 | 74 | ||||||
| A |
19 | 14 | ||||||
| BBB/Baa |
— | 1 | ||||||
| Not Rated |
2 | — | ||||||
| 1 | Using the higher of S&P’s or Moody’s ratings. |
| Call/Maturity Schedule2 |
| Calendar Year Ended December 31, |
||||
| 2013 |
— | |||
| 2014 |
— | |||
| 2015 |
— | |||
| 2016 |
1 | % | ||
| 2017 |
1 |
| 2 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 11 |
Table of Contents
| Trust Summary as of February 28, 2013 | BlackRock Municipal Income Quality Trust | |||
| Trust Overview |
BlackRock Municipal Income Quality Trust’s (BYM) (the “Trust”) investment objective is to provide current income exempt from federal income taxes, including the alternative minimum tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in municipal bonds exempt from federal income taxes, including the alternative minimum tax. The Trust also invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
| Performance |
| Ÿ | For the six months ended February 28, 2013, the Trust returned (1.32)% based on market price and 3.62% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. |
| Ÿ | The Trust’s positive performance was derived largely from income accrual as well as spread compression (price appreciation) in certain sectors, most notably health and transportation. Exposure to capital appreciation bonds (zero coupons) also had a positive impact on results as spreads generally tightened in this segment. |
| Ÿ | Trust performance was negatively impacted by a slight rise in interest rates during the period (bond prices fall as rates rise). Exposure to certain Puerto Rico credits detracted from performance as concerns about credit rating agency downgrades resulted in wider credit spreads (falling prices) for Puerto Rico municipal securities broadly. |
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
| Trust Information |
| Symbol on NYSE |
BYM | |
| Initial Offering Date |
October 31, 2002 | |
| Yield on Closing Market Price as of February 28, 2013 ($16.04)1 |
5.84% | |
| Tax Equivalent Yield2 |
10.32% | |
| Current Monthly Distribution per Common Share3 |
$0.0780 | |
| Current Annualized Distribution per Common Share3 |
$0.9360 | |
| Economic Leverage as of February 28, 20134 |
37% |
| 1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| 2 | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| 3 | The distribution rate is not constant and is subject to change. |
| 4 | Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5. |
| 12 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| BlackRock Municipal Income Quality Trust |
| Market Price and Net Asset Value |
The table below summarizes the changes in the Trust’s market price and NAV per share:
| 2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
| Market Price |
$ | 16.04 | $ | 16.73 | (4.12 | )% | $ | 17.79 | $ | 15.71 | ||||||||||
| Net Asset Value |
$ | 16.22 | $ | 16.11 | 0.68 | % | $ | 16.64 | $ | 15.88 | ||||||||||
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:
| Sector Allocation |
| 2/28/13 | 8/31/12 | |||||||
| County/City/Special District/School District |
25 | % | 19 | % | ||||
| Transportation |
19 | 21 | ||||||
| Utilities |
19 | 19 | ||||||
| State |
16 | 17 | ||||||
| Health |
7 | 9 | ||||||
| Tobacco |
5 | 5 | ||||||
| Education |
4 | 6 | ||||||
| Corporate |
4 | 3 | ||||||
| Housing |
1 | 1 | ||||||
| Credit Quality Allocation1 |
| 2/28/13 | 8/31/12 | |||||||
| AAA/Aaa |
22 | % | 17 | % | ||||
| AA/Aa |
52 | 55 | ||||||
| A |
21 | 19 | ||||||
| BBB/Baa |
4 | 7 | ||||||
| B |
1 | 1 | ||||||
| Not Rated |
— | 1 | 2 | |||||
| 1 | Using the higher of S&P’s or Moody’s ratings. |
| 2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2012, the market value of these securities was $8,360,761, representing 1% of the Trust’s long-term investments. |
| Call/Maturity Schedule3 |
| Calendar Year Ended December 31, |
||||
| 2013 |
9 | % | ||
| 2014 |
7 | |||
| 2015 |
5 | |||
| 2016 |
5 | |||
| 2017 |
8 |
| 3 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 13 |
Table of Contents
| Trust Summary as of February 28, 2013 | BlackRock Municipal Income Trust II |
| Trust Overview |
BlackRock Municipal Income Trust II’s (BLE) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
| Performance |
| Ÿ | For the six months ended February 28, 2013, the Trust returned 2.29% based on market price and 4.17% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. 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 following discussion relates to performance based on NAV. |
| Ÿ | The Trust’s holdings generated a high distribution yield, which in the aggregate, had a meaningful impact on returns. Credit spread compression drove price appreciation, particularly within the Trust’s concentration of holdings in lower-quality investment grade and non-investment grade municipal bonds. Also boosting returns were the Trust’s allocations to corporate, health and transportation-related debt. Exposure to capital appreciation bonds (zero coupons) had a positive impact on results as this segment tends to outperform in a spread tightening environment. |
| Ÿ | Conversely, security selection within the corporate and tax-backed sectors hindered performance. The Trust’s long duration (greater sensitivity to interest rate movements) detracted as yields slightly rose during the period. Modest exposure to certain Puerto Rico credits had a negative impact on results as concerns about the commonwealth’s deteriorating credit metrics and ratings downgrades led to the underperformance of those issues. |
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
| Trust Information |
| Symbol on NYSE MKT |
BLE | |
| Initial Offering Date |
July 30, 2002 | |
| Yield on Closing Market Price as of February 28, 2013 ($16.59)1 |
6.15% | |
| Tax Equivalent Yield2 |
10.87% | |
| Current Monthly Distribution per Common Share3 |
$0.0850 | |
| Current Annualized Distribution per Common Share3 |
$1.0200 | |
| Economic Leverage as of February 28, 20134 |
39% |
| 1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| 2 | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| 3 | The distribution rate is not constant and is subject to change. |
| 4 | Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5. |
| 14 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| BlackRock Municipal Income Trust II |
| Market Price and Net Asset Value |
The table below summarizes the changes in the Trust’s market price and NAV per share:
|
2/28/13 |
8/31/12 | Change | High | Low | ||||||||||||||||
| Market Price |
$ | 16.59 | $ | 16.74 | (0.90 | )% | $ | 17.61 | $ | 15.85 | ||||||||||
| Net Asset Value |
$ | 16.25 | $ | 16.10 | 0.93 | % | $ | 16.78 | $ | 15.88 | ||||||||||
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:
| Sector Allocation |
| 2/28/13 | 8/31/12 | |||||||
| Transportation |
20 | % | 17 | % | ||||
| Health |
17 | 18 | ||||||
| Utilities |
17 | 15 | ||||||
| State |
13 | 16 | ||||||
| County/City/Special District/School District |
12 | 11 | ||||||
| Corporate |
8 | 7 | ||||||
| Education |
8 | 9 | ||||||
| Tobacco |
3 | 4 | ||||||
| Housing |
2 | 3 | ||||||
| Credit Quality Allocation1 |
| 2/28/13 | 8/31/12 | |||||||
| AAA/Aaa |
10 | % | 13 | % | ||||
| AA/Aa |
35 | 36 | ||||||
| A |
30 | 25 | ||||||
| BBB/Baa |
18 | 17 | ||||||
| BB/Ba |
— | 2 | ||||||
| B |
1 | 1 | ||||||
| Not Rated2 |
6 | 6 | ||||||
| 1 | Using the higher of S&P’s or Moody’s ratings. |
| 2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2013 and August 31, 2012, the market value of these securities was $12,353,604 and $12,361,560, each representing 2%, respectively, of the Trust’s long-term investments. |
| Call/Maturity Schedule3 |
| Calendar Year Ended December 31, |
||||
| 2013 |
6 | % | ||
| 2014 |
1 | |||
| 2015 |
6 | |||
| 2016 |
5 | |||
| 2017 |
5 |
| 3 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 15 |
Table of Contents
| Trust Summary as of February 28, 2013 | BlackRock MuniHoldings Investment Quality Fund | |||
| Trust Overview |
BlackRock MuniHoldings Investment Quality Fund’s (MFL) (the “Trust”) investment objective is to provide shareholders with current income exempt from federal income tax and to provide shareholders with the opportunity to own shares the value of which is exempt from Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
| Performance |
| Ÿ | For the six months ended February 28, 2013, the Trust returned 0.13% based on market price and 3.97% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. |
| Ÿ | The Trust’s holdings in the State of California contributed positively to performance. While federal tax rate increases were supportive of municipal bonds overall, the addition of a state tax rate increase in California made these issues even more compelling on an after-tax basis. Also enhancing results were holdings in the health, education and transportation sectors. Particularly strong returns came from the Trust’s lower-quality holdings in those sectors, which benefited from strong demand as investors sought higher-yielding investments in the low interest rate environment. |
| Ÿ | Conversely, exposure to Puerto Rico sales tax bonds had a negative impact on performance as the continued decline of the local economy and concerns about credit rating downgrades resulted in falling prices across Puerto Rico-issued securities broadly. |
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
| Trust Information |
| Symbol on NYSE |
MFL | |
| Initial Offering Date |
September 26, 1997 | |
| Yield on Closing Market Price as of February 28, 2013 ($15.70)1 |
5.85% | |
| Tax Equivalent Yield2 |
10.34% | |
| Current Monthly Distribution per Common Share3 |
$0.0765 | |
| Current Annualized Distribution per Common Share3 |
$0.9180 | |
| Economic Leverage as of February 28, 20134 |
40% |
| 1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| 2 | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| 3 | The distribution rate is not constant and is subject to change. |
| 4 | Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5. |
| 16 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| BlackRock MuniHoldings Investment Quality Fund |
| Market Price and Net Asset Value |
The table below summarizes the changes in the Trust’s market price and NAV per share:
| 2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
| Market Price |
$ | 15.70 | $ | 16.13 | (2.67 | )% | $ | 17.20 | $ | 15.52 | ||||||||||
| Net Asset Value |
$ | 16.13 | $ | 15.96 | 1.07 | % | $ | 16.77 | $ | 15.70 | ||||||||||
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:
| Sector Allocation |
| 2/28/13 | 8/31/12 | |||||||
| Transportation |
28 | % | 21 | % | ||||
| Utilities |
18 | 18 | ||||||
| County/City/Special District/School District |
15 | 16 | ||||||
| State |
14 | 16 | ||||||
| Health |
12 | 14 | ||||||
| Education |
10 | 11 | ||||||
| Housing |
2 | 3 | ||||||
| Tobacco |
1 | 1 | ||||||
| Credit Quality Allocation1 |
| 2/28/13 | 8/31/12 | |||||||
| AAA/Aaa |
13 | % | 14 | % | ||||
| AA/Aa |
59 | 66 | ||||||
| A |
26 | 18 | ||||||
| BBB/Baa |
— | 1 | ||||||
| Not Rated2 |
2 | 1 | ||||||
| 1 | Using the higher of S&P’s or Moody’s ratings. |
| 2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2013 and August 31, 2012, the market value of these securities was $8,585,448 and $4,206,588, each representing less than 1%, respectively, of the Trust’s long-term investments. |
| Call/Maturity Schedule3 |
| Calendar Year Ended December 31, |
||||
| 2013 |
1 | % | ||
| 2014 |
1 | |||
| 2015 |
— | |||
| 2016 |
1 | |||
| 2017 |
3 |
| 3 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 17 |
Table of Contents
| Trust Summary as of February 28, 2013 | BlackRock MuniVest Fund, Inc. |
| Trust Overview |
BlackRock MuniVest Fund, Inc.’s (MVF) (the “Trust”) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, primarily in long term municipal obligations rated investment grade at the time of investment and invests primarily in long term municipal obligations with maturities of more than ten years at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
| Performance |
| Ÿ | For the six months ended February 28, 2013, the Trust returned 3.39% based on market price and 3.97% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. 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 following discussion relates to performance based on NAV. |
| Ÿ | The Trust’s positive performance was derived mainly from its coupon income component as municipal market performance during the six-month period, although positive, was less robust than it had been in the prior eighteen months. The Trust benefited from its zero-coupon bond holdings due to positive price movement in that segment. Exposure to lower-quality investment grade credits boosted results given strong demand from investors seeking higher-yielding investments in the low interest rate environment. |
| Ÿ | Interest rates inched higher during the period, which negatively impacted performance (bond prices fall as rates rise). Exposure to Puerto Rico debt detracted from performance as concerns about credit rating agency downgrades resulted in wider credit spreads (falling prices) for Puerto Rico municipal securities broadly. |
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
| Trust Information |
| Symbol on NYSE MKT |
MVF | |
| Initial Offering Date |
September 29, 1988 | |
| Yield on Closing Market Price as of February 28, 2013 ($11.29)1 |
6.27% | |
| Tax Equivalent Yield2 |
11.08% | |
| Current Monthly Distribution per Common Share3 |
$0.0590 | |
| Current Annualized Distribution per Common Share3 |
$0.7080 | |
| Economic Leverage as of February 28, 20134 |
39% |
| 1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
| 2 | Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| 3 | The distribution rate is not constant and is subject to change. |
| 4 | Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 5. |
| 18 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| BlackRock MuniVest Fund, Inc. |
| Market Price and Net Asset Value |
The table below summarizes the changes in the Trust’s market price and NAV per share:
| 2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
| Market Price |
$ | 11.29 | $ | 11.28 | 0.09 | % | $ | 12.29 | $ | 10.87 | ||||||||||
| Net Asset Value |
$ | 10.75 | $ | 10.68 | 0.66 | % | $ | 11.06 | $ | 10.53 | ||||||||||
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trust’s long-term investments:
| Sector Allocation |
| 2/28/13 | 8/31/12 | |||||||
| Health |
23 | % | 28 | % | ||||
| Transportation |
21 | 17 | ||||||
| Utilities |
13 | 6 | ||||||
| Corporate |
11 | 10 | ||||||
| County/City/Special District/School District |
11 | 8 | ||||||
| Education |
8 | 10 | ||||||
| State |
6 | 6 | ||||||
| Housing |
5 | 9 | ||||||
| Tobacco |
2 | 6 | ||||||
| Credit Quality Allocation1 |
| 2/28/13 | 8/31/12 | |||||||
| AAA/Aaa |
12 | % | 12 | % | ||||
| AA/Aa |
47 | 46 | ||||||
| A |
26 | 25 | ||||||
| BBB/Baa |
12 | 12 | ||||||
| BB/Ba |
— | 2 | ||||||
| B |
1 | — | ||||||
| Not Rated2 |
2 | 3 | ||||||
| 1 | Using the higher of S&P’s or Moody’s ratings. |
| 2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2013 and August 31, 2012, the market value of these securities was $20,449,481, representing 2%, and $30,422,382, representing 3%, respectively, of the Trust’s long-term investments. |
| Call/Maturity Schedule3 |
| Calendar Year Ended December 31, |
||||
| 2013 |
9 | % | ||
| 2014 |
5 | |||
| 2015 |
1 | |||
| 2016 |
6 | |||
| 2017 |
7 |
| 3 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 19 |
Table of Contents
| BlackRock Municipal Bond Investment Trust (BIE) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Alabama — 3.3% |
||||||||
| Alabama Incentives Financing Authority, RB, Series A, 5.00%, 9/01/42 |
$ | 1,500 | $ | 1,700,115 | ||||
| Selma IDB, RB, International Paper Co. Project, Series A, 5.38%, 12/01/35 |
145 | 159,938 | ||||||
|
|
|
|||||||
| 1,860,053 | ||||||||
| Alaska — 0.3% |
||||||||
| Northern Tobacco Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/46 |
180 | 157,910 | ||||||
| Arizona — 0.5% |
||||||||
| Arizona Board of Regents, Refunding RB, University of Arizona, Series A, 5.00%, 6/01/42 |
250 | 284,510 | ||||||
| California — 8.3% |
||||||||
| California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 |
700 | 826,273 | ||||||
| California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39 |
120 | 142,472 | ||||||
| Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38 |
1,660 | 1,928,339 | ||||||
| San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36 |
850 | 969,714 | ||||||
| State of California, GO, Various Purpose, 6.00%, 3/01/33 |
685 | 849,688 | ||||||
|
|
|
|||||||
| 4,716,486 | ||||||||
| Colorado — 1.6% |
||||||||
| City & County of Denver Colorado, Refunding ARB, Airport System, Series B, 5.00%, 11/15/37 |
235 | 269,221 | ||||||
| Colorado Health Facilities Authority, Refunding RB, Catholic Healthcare Initiatives, Series A, 5.50%, 7/01/34 |
580 | 662,064 | ||||||
|
|
|
|||||||
| 931,285 | ||||||||
| Florida — 1.1% |
||||||||
| City of Jacksonville Florida, Refunding RB, Better Jacksonville Sale Tax, Series A, 5.00%, 10/01/30 |
295 | 344,120 | ||||||
| Orlando-Orange County Expressway Authority, Refunding RB, Series A, 5.00%, 7/01/29 |
250 | 293,083 | ||||||
|
|
|
|||||||
| 637,203 | ||||||||
| Georgia — 1.2% |
||||||||
| Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23 |
555 | 678,676 | ||||||
| Illinois — 13.8% |
||||||||
| Chicago Illinois Board of Education, GO, Series A: |
||||||||
| 5.50%, 12/01/39 |
500 | 579,340 | ||||||
| 5.00%, 12/01/42 |
715 | 778,285 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Illinois (concluded) |
||||||||
| Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/36 |
$ | 165 | $ | 189,697 | ||||
| City of Chicago Illinois, ARB, O’Hare International Airport, General, Third Lien, Series C, 6.50%, 1/01/41 |
1,590 | 2,056,013 | ||||||
| City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A, 5.25%, 1/01/38 |
205 | 235,430 | ||||||
| City of Chicago Illinois Wastewater Transmission, RB, Second Lien, 5.00%, 1/01/42 (a) |
310 | 345,585 | ||||||
| Cook County Forest Preserve District, GO, Series C, 5.00%, 12/15/32 |
150 | 172,207 | ||||||
| Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/32 |
70 | 80,364 | ||||||
| Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 8/15/41 |
750 | 897,855 | ||||||
| Illinois Finance Authority, Refunding RB: |
||||||||
| Northwestern Memorial Healthcare, 5.00%, 8/15/37 |
115 | 130,879 | ||||||
| Northwestern Memorial Hospital, 6.00%, 8/15/39 |
1,000 | 1,186,630 | ||||||
| Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Project, Series B, 5.00%, 12/15/28 |
530 | 621,054 | ||||||
| Railsplitter Tobacco Settlement Authority, RB: |
||||||||
| 5.50%, 6/01/23 |
365 | 440,394 | ||||||
| 6.00%, 6/01/28 |
105 | 125,677 | ||||||
|
|
|
|||||||
| 7,839,410 | ||||||||
| Indiana — 2.5% |
||||||||
| Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39 |
1,190 | 1,424,311 | ||||||
| Kansas — 3.4% |
||||||||
| Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group: |
||||||||
| Series A, 5.00%, 11/15/32 |
750 | 871,252 | ||||||
| Series C, 5.50%, 11/15/29 |
900 | 1,054,359 | ||||||
|
|
|
|||||||
| 1,925,611 | ||||||||
| Kentucky — 2.5% |
||||||||
| Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40 |
350 | 420,693 | ||||||
| Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34 |
800 | 984,808 | ||||||
|
|
|
|||||||
| 1,405,501 | ||||||||
| Louisiana — 0.8% |
||||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35 |
380 | 448,833 | ||||||
| Portfolio Abbreviations |
| To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list: | AGC | Assured Guaranty Corp. | HRB | Housing Revenue Bonds | ||||
| AGM | Assured Guaranty Municipal Corp. | IDA | Industrial Development Authority | |||||
| AMBAC | American Municipal Bond Assurance Corp. | IDB | Industrial Development Board | |||||
| AMT | Alternative Minimum Tax (subject to) | IDRB | Industrial Development Revenue Bonds | |||||
| ARB | Airport Revenue Bonds | ISD | Independent School District | |||||
| BARB | Building Aid Revenue Bonds | LRB | Lease Revenue Bonds | |||||
| BHAC | Berkshire Hathaway Assurance Corp. | MRB | Mortgage Revenue Bonds | |||||
| CAB | Capital Appreciation Bonds | M/F | Multi-Family | |||||
| COP | Certificates of Participation | NPFGC | National Public Finance Guarantee Corp. | |||||
| EDC | Economic Development Corp. | PSF-GTD | Permanent School Fund Guaranteed | |||||
| EDA | Economic Development Authority | Q-SBLF | Qualified School Bond Loan Fund | |||||
| ERB | Education Revenue Bonds | RB | Revenue Bonds | |||||
| GARB | General Airport Revenue Bonds | SAN | State Aid Notes | |||||
| GO | General Obligation Bonds | SBPA | Stand-by Bond Purchase Agreements | |||||
| HDA | Housing Development Authority | S/F | Single-Family | |||||
| HFA | Housing Finance Agency | VRDN | Variable Rate Demand Notes |
See Notes to Financial Statements.
| 20 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Bond Investment Trust (BIE) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Maine — 1.5% |
||||||||
| Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32 |
$ | 675 | $ | 869,387 | ||||
| Massachusetts — 0.7% |
||||||||
| Massachusetts Development Finance Agency, Refunding RB, Trustees of Deerfield Academy, 5.00%, 10/01/40 |
375 | 430,234 | ||||||
| Michigan — 3.2% |
||||||||
| Lansing Board of Water & Light Utilities System, RB, Series A, 5.50%, 7/01/41 |
485 | 573,478 | ||||||
| Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38 |
500 | 603,235 | ||||||
| Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39 |
530 | 675,252 | ||||||
|
|
|
|||||||
| 1,851,965 | ||||||||
| Mississippi — 2.4% |
||||||||
| Mississippi Development Bank, Refunding RB: |
||||||||
| Jackson Mississippi Water & Sewer (AGM), 5.00%, 9/01/30 |
535 | 623,425 | ||||||
| Jackson Public School District Project, Series A, 5.00%, 4/01/28 |
645 | 735,474 | ||||||
|
|
|
|||||||
| 1,358,899 | ||||||||
| Multi-State — 5.7% |
||||||||
| Centerline Equity Issuer Trust, 7.20%, 11/15/52 (b)(c) |
3,000 | 3,269,220 | ||||||
| Nevada — 4.1% |
||||||||
| City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34 |
1,000 | 1,173,150 | ||||||
| County of Clark Nevada, ARB, Series B, 5.75%, 7/01/42 |
1,000 | 1,175,670 | ||||||
|
|
|
|||||||
| 2,348,820 | ||||||||
| New Jersey — 5.2% |
||||||||
| New Jersey EDA, Refunding RB, School Facilities Construction, Series AA, 5.50%, 12/15/29 |
750 | 871,305 | ||||||
| New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 |
610 | 676,917 | ||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System: |
||||||||
| 5.50%, 6/15/41 |
500 | 582,405 | ||||||
| 5.88%, 12/15/38 |
695 | 822,637 | ||||||
|
|
|
|||||||
| 2,953,264 | ||||||||
| New York — 2.0% |
||||||||
| Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47 |
145 | 172,573 | ||||||
| New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49 |
325 | 386,493 | ||||||
| New York State Dormitory Authority, RB, Series B, 5.00%, 3/15/42 |
500 | 570,630 | ||||||
|
|
|
|||||||
| 1,129,696 | ||||||||
| North Carolina — 1.1% |
||||||||
| North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/32 |
530 | 618,378 | ||||||
| Ohio — 1.1% |
||||||||
| Ohio State University, RB, Special Purpose General Receipts, Series A, 5.00%, 6/01/38 |
545 | 632,772 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Pennsylvania — 6.2% |
||||||||
| Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39 |
$ | 300 | $ | 349,263 | ||||
| Pennsylvania Turnpike Commission, RB: |
||||||||
| Sub-Series A, 5.63%, 12/01/31 |
750 | 880,230 | ||||||
| Sub-Series A, 6.00%, 12/01/41 |
1,500 | 1,708,665 | ||||||
| Sub-Series C, (AGC), 6.25%, 6/01/38 |
500 | 605,185 | ||||||
|
|
|
|||||||
| 3,543,343 | ||||||||
| Texas — 12.6% |
||||||||
| Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.00%, 1/01/41 |
890 | 1,035,417 | ||||||
| City of Houston Texas, Refunding RB, Utility System, Series D, 5.00%, 11/15/42 |
500 | 574,610 | ||||||
| Conroe ISD Texas, GO, School Building, Series A, 5.75%, 2/15/35 |
470 | 560,489 | ||||||
| Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31 |
250 | 319,305 | ||||||
| Houston Community College System, GO, 5.00%, 2/15/36 (a) |
205 | 232,798 | ||||||
| North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41 |
500 | 594,080 | ||||||
| North Texas Tollway Authority, Refunding RB, First Tier: |
||||||||
| Series B, 5.00%, 1/01/42 |
750 | 833,677 | ||||||
| Series K-1 (AGC), 5.75%, 1/01/38 |
250 | 281,723 | ||||||
| Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45 |
1,020 | 1,232,354 | ||||||
| Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 |
500 | 596,450 | ||||||
| Texas Transportation Commission, Refunding RB, First Tier, Series A, 5.00%, 8/15/41 |
175 | 191,998 | ||||||
| University of Texas System, Refunding RB, Financing System Bonds, Series B, 5.00%, 8/15/43 |
615 | 718,996 | ||||||
|
|
|
|||||||
| 7,171,897 | ||||||||
| Utah — 2.0% |
||||||||
| Utah Transit Authority, Refunding RB, Subordinated Sales Tax, 5.00%, 6/15/42 |
1,000 | 1,128,270 | ||||||
| Virginia — 3.7% |
||||||||
| Fairfax County IDA, RB, Health Care, Inova Health System, Series A, 5.00%, 5/15/40 |
275 | 312,571 | ||||||
| Norfolk EDA, Refunding RB, Sentara Healthcare, Series B, 5.00%, 11/01/36 |
500 | 571,670 | ||||||
| Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/18 (d) |
500 | 657,335 | ||||||
| Virginia Resources Authority, RB, Series A-1, 5.00%, 11/01/42 |
485 | 561,499 | ||||||
|
|
|
|||||||
| 2,103,075 | ||||||||
| Washington — 2.0% |
||||||||
| Port of Seattle, Refunding RB, Intermediate Lien, Series A, 5.00%, 8/01/32 |
1,000 | 1,165,790 | ||||||
| Wisconsin — 3.2% |
||||||||
| University of Wisconsin Hospitals & Clinics Authority, Refunding RB, Series A, 5.00%, 4/01/38 (a) |
145 | 162,175 | ||||||
| Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Alliiance, Series D, 5.00%, 11/15/41 |
485 | 545,019 | ||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 21 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Bond Investment Trust (BIE) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Wisconsin (concluded) |
||||||||
| Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc.: |
||||||||
| Series A, 5.00%, 4/01/42 |
$ | 125 | $ | 140,486 | ||||
| Series C, 5.25%, 4/01/39 |
890 | 985,560 | ||||||
|
|
|
|||||||
| 1,833,240 | ||||||||
| Total Municipal Bonds – 96.0% | 54,718,039 | |||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (e) |
||||||||
| California — 19.4% |
||||||||
| California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (f) |
1,005 | 1,178,121 | ||||||
| Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40 |
1,300 | 1,451,710 | ||||||
| Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (f) |
1,410 | 1,705,381 | ||||||
| Los Angeles Community College District California, GO, Refunding, Series A, 6.00%, 8/01/33 |
2,079 | 2,597,309 | ||||||
| Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 |
200 | 224,448 | ||||||
| San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.50%, 8/01/39 |
2,234 | 2,615,912 | ||||||
| University of California, RB, Series O, 5.75%, 5/15/34 |
810 | 976,158 | ||||||
| University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37 |
250 | 288,684 | ||||||
|
|
|
|||||||
| 11,037,723 | ||||||||
| District of Columbia — 3.4% |
||||||||
| District of Columbia, RB, Series A, 5.50%, 12/01/30 (f) |
735 | 893,662 | ||||||
| District of Columbia Water & Sewer Authority, Refunding RB, Series A, 5.50%, 10/01/39 |
899 | 1,061,426 | ||||||
|
|
|
|||||||
| 1,955,088 | ||||||||
| Florida — 0.5% |
||||||||
| County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42 |
260 | 292,159 | ||||||
| Illinois — 8.1% |
||||||||
| City of Chicago Illinois Waterworks, Refunding RB, Second Lien, 5.00%, 11/01/42 |
400 | 451,474 | ||||||
| Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38 |
1,500 | 1,860,045 | ||||||
| Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33 |
2,000 | 2,283,353 | ||||||
|
|
|
|||||||
| 4,594,872 | ||||||||
| Massachusetts — 1.6% |
||||||||
| Massachusetts School Building Authority, Sales Tax RB, Senior Lien, Series B, 5.00%, 10/15/41 |
790 | 906,091 | ||||||
| Nevada — 3.2% |
||||||||
| Clark County Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/38 |
1,500 | 1,813,485 | ||||||
| New Hampshire — 1.2% |
||||||||
| New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (f) |
585 | 684,893 | ||||||
| New Jersey — 3.7% |
||||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System: |
||||||||
| Series A (AGM), 5.00%, 12/15/32 |
1,000 | 1,138,810 | ||||||
| Series B, 5.25%, 6/15/36 |
840 | 959,314 | ||||||
|
|
|
|||||||
| 2,098,124 | ||||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (e) |
Par (000) |
Value | ||||||
| New York — 14.3% |
||||||||
| New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40 |
$ | 750 | $ | 894,809 | ||||
| New York City Municipal Water Finance Authority, Refunding RB: |
||||||||
| Series FF, 5.00%, 6/15/45 |
1,000 | 1,130,475 | ||||||
| Series FF-2, 5.50%, 6/15/40 |
990 | 1,172,004 | ||||||
| New York City Transitional Finance Authority, BARB, Building Aid, Fiscal 2009, Series S-3, 5.25%, 1/15/39 |
1,000 | 1,117,917 | ||||||
| New York City Transitional Finance Authority, RB, Future Tax Secured, Fiscal 2012, Series E, 5.00%, 2/01/42 |
460 | 524,110 | ||||||
| New York Liberty Development Corp., RB, 1 World Trade Center Project, 5.25%, 12/15/43 |
1,170 | 1,342,884 | ||||||
| New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 |
680 | 805,800 | ||||||
| New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38 |
1,000 | 1,171,800 | ||||||
|
|
|
|||||||
| 8,159,799 | ||||||||
| Ohio — 1.6% |
||||||||
| County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38 |
840 | 939,170 | ||||||
| Puerto Rico — 0.9% |
||||||||
| Puerto Rico Sales Tax Financing Corp., Sales Tax, Refunding RB, Sales Tax Revenue, Series C, 5.25%, 8/01/40 |
460 | 502,154 | ||||||
| Texas — 7.2% |
||||||||
| City of San Antonio Texas, Refunding RB, Electric and Gas Systems Revenue, Series A, 5.25%, 2/01/31 (f) |
1,050 | 1,250,462 | ||||||
| Harris County Cultural Education Facilities Finance Corp., RB, Texas Children’s Hospital Project, 5.50%, 10/01/39 |
1,450 | 1,715,713 | ||||||
| Waco Educational Finance Corp., Refunding RB, Baylor University, 5.00%, 3/01/43 |
1,005 | 1,144,765 | ||||||
|
|
|
|||||||
| 4,110,940 | ||||||||
| Virginia — 0.9% |
||||||||
| Fairfax County IDA Virginia, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35 |
460 | 528,879 | ||||||
| Washington — 1.5% |
||||||||
| University of Washington, Refunding RB, Series A, 5.00%, 7/01/41 |
735 | 850,540 | ||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 67.5% |
38,473,917 | |||||||
| Total Long-Term Investments (Cost — $82,732,308) — 163.5% |
93,191,956 | |||||||
| Short-Term Securities | Shares | |||||||
| FFI Institutional Tax-Exempt Fund, 0.01% (g)(h) |
1,154,435 | 1,154,435 | ||||||
| Total Short-Term Securities (Cost — $1,154,435) — 2.0% |
1,154,435 | |||||||
| Total Investments (Cost — $83,886,743) — 165.5% | 94,346,391 | |||||||
| Liabilities in Excess of Other Assets — (0.4)% | (206,749 | ) | ||||||
| Liability for TOB Trust Certificates, Including Interest |
|
(19,347,621 | ) | |||||
| VRDP Shares, at Liquidation Value — (31.2)% | (17,800,000 | ) | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% | $ | 56,992,021 | ||||||
|
|
|
|||||||
See Notes to Financial Statements.
| 22 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (concluded) |
BlackRock Municipal Bond Investment Trust (BIE) |
| Notes to Schedule of investments |
| (a) | When-issued security. Unsettled when-issued transactions were as follows: |
| Counterparty | Value |
Unrealized Appreciation |
||||||
| Stifel Nicolaus & Co. | $ | 345,585 | $ | (180 | ) | |||
| JPMorgan Securities, Inc. |
$ | 394,973 | $ | 16 | ||||
| (b) | 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. |
| (c) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (d) | US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (e) | Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
| (f) | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $2,954,469. |
| (g) | Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
| Affiliate | Shares Held at August 31, 2012 |
Net Activity |
Shares Held at February 28, 2013 |
Income | ||||||||||||
| FFI Institutional Tax-Exempt Fund |
159,677 | 994,758 | 1,154,435 | $ | 94 | |||||||||||
| (h) | Represents the current yield as of report date. |
| Ÿ | Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
| Ÿ | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access |
| Ÿ | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
| Ÿ | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of February 28, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Assets: |
||||||||||||||||||||
| Investments: | ||||||||||||||||||||
| Long-Term Investments1 |
— | $ | 93,191,956 | — | $ | 93,191,956 | ||||||||||||||
| Short-Term Securities |
$ | 1,154,435 | — | — | 1,154,435 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 1,154,435 | $ | 93,191,956 | — | $ | 94,346,391 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
1 See above Schedule of Investments for values in each state or political subdivision. |
| |||||||||||||||||||
|
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such liabilities are categorized within the disclosure hierarchy as follows: |
| |||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Liabilities: |
||||||||||||||||||||
| TOB trust certificates |
— | $ | (19,340,052 | ) | — | $ | (19,340,052 | ) | ||||||||||||
| VRDP Shares |
— | (17,800,000 | ) | — | (17,800,000 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
— | $ | (37,140,052 | ) | — | $ | (37,140,052 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
There were no transfers between levels during the six months ended February 28, 2013.
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 23 |
Table of Contents
| Schedule of Investments February 28, 2013 (Unaudited) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Alabama — 4.0% |
||||||||
| Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC): |
||||||||
| 6.00%, 6/01/34 |
$ | 1,150 | $ | 1,352,940 | ||||
| 6.00%, 6/01/39 |
450 | 529,547 | ||||||
| Birmingham Water Works Board, RB, 4.75%, 1/01/36 |
2,100 | 2,295,132 | ||||||
| Hoover City Board of Education, Special Tax, Refunding, 4.25%, 2/15/40 |
2,750 | 2,930,702 | ||||||
|
|
|
|||||||
| 7,108,321 | ||||||||
| Arizona — 9.4% |
||||||||
| Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42 |
2,200 | 2,372,260 | ||||||
| Arizona Sports & Tourism Authority, RB, Multipurpose Stadium Facilities, Series A (NPFGC), 5.00%, 7/01/13 (a) |
1,500 | 1,524,570 | ||||||
| Arizona State University, RB, Series D, 5.50%, 7/01/26 |
200 | 241,648 | ||||||
| County of Pinal Arizona Election District No. 3, Refunding RB, 4.75%, 7/01/31 |
3,750 | 4,106,287 | ||||||
| Pima County IDA, Refunding IDRB, Tucson Electric Power, 5.75%, 9/01/29 |
900 | 952,470 | ||||||
| Salt Verde Financial Corp., RB, Senior: |
||||||||
| 5.00%, 12/01/32 |
1,500 | 1,737,090 | ||||||
| 5.00%, 12/01/37 |
2,065 | 2,387,512 | ||||||
| San Luis Facility Development Corp., RB, Senior Lien, Regional Detention Center Project: |
||||||||
| 6.25%, 5/01/15 |
185 | 184,273 | ||||||
| 7.00%, 5/01/20 |
300 | 305,130 | ||||||
| 7.25%, 5/01/27 |
600 | 576,858 | ||||||
| State of Arizona, COP, Department of Administration, Series A (AGM), 5.00%, 10/01/29 |
750 | 851,085 | ||||||
| University Medical Center Corp. Arizona, RB, 6.50%, 7/01/39 |
500 | 580,915 | ||||||
| University Medical Center Corp. Arizona, Refunding RB, 6.00%, 7/01/39 |
900 | 1,040,364 | ||||||
|
|
|
|||||||
| 16,860,462 | ||||||||
| Arkansas — 1.2% |
||||||||
| City of Conway Arkansas, RB, Wastewater Revenue Improvement, Series A, 4.20%, 10/01/37 |
500 | 534,840 | ||||||
| City of Springdale Arkansas, RB, Sales and Tax Use: |
||||||||
| 3.00%, 11/01/30 |
650 | 628,778 | ||||||
| 3.00%, 11/01/31 |
1,010 | 969,347 | ||||||
|
|
|
|||||||
| 2,132,965 | ||||||||
| California — 19.6% |
||||||||
| California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, 11.06%, 6/01/55 (b) |
4,500 | 47,655 | ||||||
| California Educational Facilities Authority, Refunding RB, Santa Clara University, 5.00%, 2/01/40 |
1,000 | 1,114,270 | ||||||
| California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 8/15/31 |
1,900 | 2,322,560 | ||||||
| California HFA, RB, Home Mortgage, Series G, AMT, 5.05%, 2/01/29 |
2,285 | 2,269,850 | ||||||
| Carlsbad Unified School District, GO, Election of 2006, Series B, 4.99%, 5/01/34 (c) |
1,000 | 823,790 | ||||||
| City of Manteca California Sewer, Refunding RB, 4.00%, 12/01/33 |
3,395 | 3,557,077 | ||||||
| City of San Jose California, Refunding ARB, San Jose Airport, Series A1, AMT, 5.75%, 3/01/34 |
2,000 | 2,314,940 | ||||||
| Dinuba Unified School District, GO, Election of 2006 (AGM): |
||||||||
| 5.63%, 8/01/31 |
250 | 288,243 | ||||||
| 5.75%, 8/01/33 |
500 | 578,845 | ||||||
| Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 4.94%, 8/01/34 (c) |
1,650 | 1,247,945 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (concluded) |
||||||||
| Norwalk-La Mirada Unified School District California, GO, CAB, Refunding, Election of 2002, Series E (AGC), 4.81%, 8/01/38 (b) |
$ | 8,000 | $ | 2,392,240 | ||||
| Palomar Community College District, GO, CAB, Election of 2006, Series B: |
||||||||
| 4.36%, 8/01/30 (b) |
1,500 | 707,445 | ||||||
| 5.53%, 8/01/33 (b) |
4,000 | 1,312,560 | ||||||
| 4.76%, 8/01/39 (c) |
2,000 | 1,293,800 | ||||||
| San Diego Community College District California, GO, CAB, Election of 2002, 4.73%, 8/01/33 (c) |
2,800 | 2,361,240 | ||||||
| San Jose Evergreen Community College District, GO, Election of 2010, Series B, 3.50%, 8/01/32 |
1,200 | 1,224,948 | ||||||
| State of California, GO, Various Purpose: |
||||||||
| 5.75%, 4/01/31 |
2,000 | 2,390,080 | ||||||
| 6.00%, 3/01/33 |
1,000 | 1,240,420 | ||||||
| 6.50%, 4/01/33 |
1,950 | 2,444,500 | ||||||
| 5.50%, 3/01/40 |
2,350 | 2,779,110 | ||||||
| State of California, GO, Refunding, Veterans, AMT, 5.05%, 12/01/36 |
555 | 567,549 | ||||||
| Val Verde Unified School District California, Special Tax Bonds, Refunding, Junior Lien, 6.25%, 10/01/28 |
1,585 | 1,627,953 | ||||||
|
|
|
|||||||
| 34,907,020 | ||||||||
| Colorado — 1.2% |
||||||||
| Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33 |
1,070 | 1,293,673 | ||||||
| Park Creek Metropolitan District, Refunding RB, Limited Property Tax (AGM), 6.00%, 12/01/38 |
750 | 875,272 | ||||||
|
|
|
|||||||
| 2,168,945 | ||||||||
| Connecticut — 1.4% |
||||||||
| Connecticut State Health & Educational Facilities Authority, Refunding RB: |
||||||||
| Hartford Healthcare, Series A, 5.00%, 7/01/32 |
1,250 | 1,392,225 | ||||||
| Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/36 |
550 | 606,700 | ||||||
| Sacred Heart University, Series G, 5.38%, 7/01/31 |
400 | 444,356 | ||||||
|
|
|
|||||||
| 2,443,281 | ||||||||
| Delaware — 0.9% |
||||||||
| County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40 |
1,200 | 1,353,948 | ||||||
| Florida — 1.7% |
||||||||
| County of Lee Florida, Refunding ARB, Lee Airport, Series A, AMT (AGM), 5.00%, 10/01/28 |
2,000 | 2,233,620 | ||||||
| Orange County Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%, 6/01/36 |
125 | 132,177 | ||||||
| Stevens Plantation Community Development District, Special Assessment Bonds, Series A, 7.10%, 5/01/35 (d)(e) |
910 | 682,846 | ||||||
|
|
|
|||||||
| 3,048,643 | ||||||||
| Hawaii — 0.2% |
||||||||
| Hawaii State Department of Budget & Finance Senior Living, Refunding RB, Special
Purpose, Kahala Nui, |
400 | 432,528 | ||||||
| Idaho — 1.2% |
||||||||
| Idaho Health Facilities Authority, Refunding RB, Trinity Health Group, Series B, 6.25%, 12/01/33 |
1,750 | 2,097,445 | ||||||
| Illinois — 8.5% |
||||||||
| Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40 |
665 | 760,181 | ||||||
| City of Chicago, Refunding ARB, O’Hare International Airport, Passenger Facility Charge, Series B, AMT, |
4,000 | 4,080,560 | ||||||
See Notes to Financial Statements.
| 24 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Illinois (concluded) |
||||||||
| Illinois Finance Authority, RB: |
||||||||
| Navistar International, Recovery Zone, 6.50%, 10/15/40 |
$ | 560 | $ | 605,438 | ||||
| Rush University Medical Center, Series C, 6.63%, 11/01/39 |
650 | 795,594 | ||||||
| Illinois Finance Authority, Refunding RB: |
||||||||
| Friendship Village Schaumburg, Series A, 5.63%, 2/15/37 |
210 | 211,117 | ||||||
| OSF Healthcare System, 6.00%, 5/15/39 |
1,025 | 1,189,185 | ||||||
| Roosevelt University Project, 6.50%, 4/01/44 |
1,000 | 1,136,730 | ||||||
| Railsplitter Tobacco Settlement Authority, RB: |
||||||||
| 6.25%, 6/01/24 |
1,000 | 1,117,890 | ||||||
| 6.00%, 6/01/28 |
1,150 | 1,376,458 | ||||||
| Village of Bolingbrook Illinois, GO, Refunding, Series B (NPFGC), 6.25%, 1/01/36 (b) |
16,065 | 3,936,728 | ||||||
|
|
|
|||||||
| 15,209,881 | ||||||||
| Indiana — 0.6% |
||||||||
| Indiana Finance Authority, Refunding RB, Improvement, U.S. Steel Corp., 6.00%, 12/01/26 |
1,000 | 1,060,780 | ||||||
| Iowa — 0.9% |
||||||||
| Iowa Higher Education Loan Authority, Refunding RB, Private College Facility: |
||||||||
| 5.75%, 9/01/30 |
500 | 566,310 | ||||||
| 6.00%, 9/01/39 |
1,000 | 1,124,680 | ||||||
|
|
|
|||||||
| 1,690,990 | ||||||||
| Kansas — 0.6% |
||||||||
| Pratt County Public Building Commission, RB, 3.25%, 12/01/32 |
1,000 | 989,880 | ||||||
| Louisiana — 2.5% |
||||||||
| Lafayette Public Trust Financing Authority, Refunding RB, Ragin Cajun Facilities Project (AGM), 3.75%, 10/01/32 |
520 | 534,264 | ||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority, RB: |
||||||||
| Parish of Plaquemines Project (AGM), 4.00%, 9/01/42 |
480 | 487,214 | ||||||
| Westlake Chemical Corp, Series A-1, 6.50%, 11/01/35 |
1,050 | 1,240,197 | ||||||
| Louisiana Public Facilities Authority, RB: |
||||||||
| Belle Chasse Educational Foundation Project, 6.50%, 5/01/31 |
400 | 466,688 | ||||||
| Franciscan Missionaries of Our Lady Health System Project, Series B, 5.00%, 7/01/42 |
1,600 | 1,764,272 | ||||||
|
|
|
|||||||
| 4,492,635 | ||||||||
| Maryland — 2.0% |
||||||||
| Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25 |
250 | 278,648 | ||||||
| Maryland Health & Higher Educational Facilities Authority, Refunding RB, Doctor’s Community Hospital, |
2,900 | 3,273,781 | ||||||
|
|
|
|||||||
| 3,552,429 | ||||||||
| Michigan — 3.0% |
||||||||
| Board of Control of Michigan Technological University, Refunding RB, General, Series A, 4.00%, 10/01/30 |
1,290 | 1,357,635 | ||||||
| Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38 |
1,250 | 1,524,600 | ||||||
| Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39 |
1,950 | 2,484,417 | ||||||
|
|
|
|||||||
| 5,366,652 | ||||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Minnesota — 3.2% |
||||||||
| City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 |
$ | 4,600 | $ | 5,667,522 | ||||
| Mississippi — 3.2% |
||||||||
| Mississippi Development Bank, RB, Special Obligation: |
||||||||
| Hinds Community College District, CAB (AGM), 5.00%, 4/01/36 |
845 | 943,713 | ||||||
| Jackson County Limited Tax Note (AGC), 5.50%, 7/01/32 |
1,750 | 1,990,047 | ||||||
| University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/36 |
2,100 | 2,384,907 | ||||||
| Warren County Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, AMT, 5.38%, 12/01/35 |
400 | 441,208 | ||||||
|
|
|
|||||||
| 5,759,875 | ||||||||
| Missouri — 3.1% |
||||||||
| Missouri State Development Finance Board, RB: |
||||||||
| St. Joseph Sewage System Improvements, Series E, 5.25%, 5/01/31 |
580 | 623,674 | ||||||
| Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41 |
900 | 978,435 | ||||||
| Missouri State Development Finance Board, Refunding RB, Electric System Projects, Series F, 4.00%, 6/01/32 |
2,490 | 2,553,894 | ||||||
| Missouri State Health & Educational Facilities Authority, RB: |
||||||||
| A.T. Still University Health Sciences, 5.25%, 10/01/31 |
500 | 568,005 | ||||||
| Heartland Regional Medical Center, 4.13%, 2/15/43 |
770 | 769,330 | ||||||
|
|
|
|||||||
| 5,493,338 | ||||||||
| Montana — 0.8% |
||||||||
| Montana Facility Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 4.75%, 1/01/40 |
1,350 | 1,468,949 | ||||||
| Multi-State — 6.4% |
||||||||
| Centerline Equity Issuer Trust, 7.20%, 11/15/14 (f)(g) |
10,500 | 11,442,270 | ||||||
| Nebraska — 3.8% |
||||||||
| Central Plains Energy Project Nebraska, RB, Gas Project No. 3, Gas Project No. 3, 5.00%, 9/01/42 |
600 | 655,014 | ||||||
| Omaha Nebraska Sanitation Sewer, RB, System: |
||||||||
| 3.25%, 11/15/37 |
2,400 | 2,294,688 | ||||||
| 4.25%, 11/15/38 |
1,440 | 1,541,678 | ||||||
| 4.00%, 11/15/42 |
2,200 | 2,310,198 | ||||||
|
|
|
|||||||
| 6,801,578 | ||||||||
| Nevada — 1.1% |
||||||||
| City of Las Vegas Nevada, Special Assessment Bonds, Summerlin Area, 5.65%, 6/01/23 |
1,265 | 1,252,274 | ||||||
| County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29 |
575 | 631,287 | ||||||
|
|
|
|||||||
| 1,883,561 | ||||||||
| New Jersey — 10.3% |
||||||||
| Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (d)(e) |
915 | 68,094 | ||||||
| New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 7.25%, 11/15/30 (h) |
3,000 | 3,011,910 | ||||||
| New Jersey EDA, Refunding RB: |
||||||||
| First Mortgage, Winchester, Series A, 5.80%, 11/01/31 |
1,500 | 1,535,745 | ||||||
| Kapkowski Road Landfill Project, 6.50%, 4/01/28 |
7,500 | 8,983,275 | ||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 25 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| New Jersey (concluded) |
||||||||
| New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B: |
||||||||
| 7.13%, 12/01/23 |
$ | 630 | $ | 805,487 | ||||
| 7.50%, 12/01/32 |
800 | 1,000,344 | ||||||
| New Jersey Health Care Facilities Financing Authority, Refunding RB Barnabas Health, Series A: |
||||||||
| 4.63%, 7/01/23 |
510 | 577,779 | ||||||
| 5.63%, 7/01/37 |
1,700 | 1,916,036 | ||||||
| New Jersey State Housing & Mortgage Finance Agency, RB, Series AA, 6.50%, 10/01/38 |
485 | 507,349 | ||||||
|
|
|
|||||||
| 18,406,019 | ||||||||
| New York — 5.8% |
||||||||
| Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35 (d)(e) |
455 | 68,218 | ||||||
| Hudson New York Yards Infrastructure Corp., RB, Series A (NPFGC), 4.50%, 2/15/47 |
750 | 782,242 | ||||||
| New York City Industrial Development Agency, RB, American Airlines Inc., JFK International Airport, AMT, 7.75%, 8/01/31 (d)(e)(h) |
3,165 | 3,599,270 | ||||||
| New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49 |
800 | 951,368 | ||||||
| New York State Dormitory Authority, RB, Rochester Institute of Technology, Series A, 6.00%, 7/01/18 (a) |
1,000 | 1,258,540 | ||||||
| Niagara Area Development Corp., Refunding RB, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 |
400 | 419,020 | ||||||
| Onondaga Civic Development Corp., Refunding RB, Saint Joseph’s Hospital Health Center Project: |
||||||||
| 4.50%, 7/01/32 |
1,110 | 1,093,028 | ||||||
| 5.00%, 7/01/42 |
540 | 553,743 | ||||||
| Westchester County Healthcare Corp. New York, Refunding RB, Senior Lien, Series A, Remarketing, |
1,500 | 1,676,535 | ||||||
|
|
|
|||||||
| 10,401,964 | ||||||||
| North Carolina — 3.3% |
||||||||
| Gaston County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35 |
2,945 | 2,725,126 | ||||||
| North Carolina Capital Facilities Finance Agency, Refunding RB, Duke Energy Carolinas, Series B, |
1,000 | 1,074,430 | ||||||
| North Carolina Medical Care Commission, Refunding RB: |
||||||||
| South Eastern Regional Medical Center, 3.25%, 6/01/27 |
300 | 301,425 | ||||||
| South Eastern Regional Medical Center, 5.00%, 6/01/32 |
660 | 760,221 | ||||||
| University Health System, Series D, 6.25%, 12/01/33 |
800 | 962,160 | ||||||
|
|
|
|||||||
| 5,823,362 | ||||||||
| North Dakota — 1.1% |
||||||||
| City of Fargo North Dakota, Refunding RB, University Facilities Development Foundation Project, 3.00%, 12/01/30 |
400 | 388,208 | ||||||
| City of Grand Forks North Dakota, Refunding RB, Healthcare Systems, 5.00%, 12/01/32 |
1,415 | 1,541,515 | ||||||
|
|
|
|||||||
| 1,929,723 | ||||||||
| Ohio — 0.9% |
||||||||
| Kent State University, RB, General Receipts, Series A, 5.00%, 5/01/42 |
800 | 901,472 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Ohio (concluded) |
||||||||
| Miami University/Oxford Ohio, RB, General Receipts, 3.25%, 9/01/34 |
$ | 800 | $ | 770,184 | ||||
|
|
|
|||||||
| 1,671,656 | ||||||||
| Oklahoma — 1.3% |
||||||||
| Oklahoma Municipal Power Authority, RB, Power Supply System, Series A, 4.00%, 1/01/38 |
2,250 | 2,312,663 | ||||||
| Oregon — 3.5% |
||||||||
| City of Madras Oregon, GO, Refunding, 4.00%, 2/15/33 |
500 | 492,550 | ||||||
| Clackamas County Housing Authority, RB, M/F Housing, Easton Ridge Apartments Project, Series A (i): |
||||||||
| 3.50%, 9/01/33 |
755 | 745,193 | ||||||
| 4.00%, 9/01/43 |
660 | 653,103 | ||||||
| 4.00%, 9/01/49 |
1,000 | 981,150 | ||||||
| Oregon Health & Science University, RB, Series A, 5.75%, 7/01/39 |
750 | 886,552 | ||||||
| Oregon Health & Science University, Refunding RB: |
||||||||
| Series A, 3.00%, 7/01/24 |
1,000 | 1,016,150 | ||||||
| Series E, 5.00%, 7/01/32 |
750 | 868,073 | ||||||
| Oregon State Facilities Authority, Refunding RB, Limited College Project, Series A, 5.25%, 10/01/40 |
500 | 553,310 | ||||||
|
|
|
|||||||
| 6,196,081 | ||||||||
| Pennsylvania — 3.3% |
||||||||
| County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27 |
1,695 | 1,880,602 | ||||||
| Delaware River Port Authority, RB, Series D (AGM), 5.00%, 1/01/40 |
2,600 | 2,897,258 | ||||||
| Pennsylvania Higher Educational Facilities Authority, RB, University of the Sciences Philadelphia, 5.00%, 11/01/42 |
1,000 | 1,102,300 | ||||||
|
|
|
|||||||
| 5,880,160 | ||||||||
| Puerto Rico — 1.3% |
||||||||
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37 |
1,000 | 1,080,610 | ||||||
| Puerto Rico Sales Tax Financing Corp., RB, CAB, Series A, 5.79%, 8/01/35 (b) |
1,000 | 278,110 | ||||||
| Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.60%, 8/01/41 (b) |
5,000 | 1,040,900 | ||||||
|
|
|
|||||||
| 2,399,620 | ||||||||
| Rhode Island — 1.2% |
||||||||
| Rhode Island Health & Educational Building Corp., RB, Hospital Financing, LifeSpan Obligation, Series A (AGC), 7.00%, 5/15/39 |
1,000 | 1,204,150 | ||||||
| State of Rhode Island, COP, Series C, School for the Deaf (AGC), 5.38%, 4/01/28 |
900 | 1,021,392 | ||||||
|
|
|
|||||||
| 2,225,542 | ||||||||
| Tennessee — 1.4% |
||||||||
| Johnson City Health & Educational Facilities Board, RB, Mountain States Health, 5.00%, 8/15/42 |
800 | 874,368 | ||||||
| Memphis-Shelby County Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A, 5.38%, 11/01/28 |
275 | 310,415 | ||||||
| Shelby County Health Educational & Housing Facilities Board, RB, Methodist Le Bonheur Healthcare, 5.00%, 5/01/42 |
1,200 | 1,338,168 | ||||||
|
|
|
|||||||
| 2,522,951 | ||||||||
| Texas — 16.6% |
||||||||
| Harris County Cultural Education Facilities Finance Corp., Refunding RB, Young Men’s Christian Association of the Greater Houston Area, Series A, 5.00%, 6/01/38 |
345 | 370,468 | ||||||
See Notes to Financial Statements.
| 26 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Texas (concluded) |
||||||||
| Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, |
||||||||
| 7.13%, 12/01/31 |
$ | 500 | $ | 638,610 | ||||
| 7.25%, 12/01/35 |
1,750 | 2,174,025 | ||||||
| Harris County-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 5.58%, 11/15/41 (b) |
11,690 | 2,409,894 | ||||||
| Matagorda County Navigation District No. 1 Texas, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29 |
1,500 | 1,765,695 | ||||||
| Midland County Fresh Water Supply District No. 1, Refunding RB: |
||||||||
| CAB, City of Midland Project, Series A, 4.49%, 9/15/36 (b) |
4,900 | 1,724,261 | ||||||
| CAB, City of Midland Project, Series A, 4.67%, 9/15/38 (b) |
10,760 | 3,306,440 | ||||||
| City of Midland Project, 3.38%, 9/15/32 |
1,575 | 1,582,796 | ||||||
| Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40 |
2,000 | 2,426,380 | ||||||
| Texas State Turnpike Authority, RB, CAB (AMBAC), 6.02%, 8/15/35 (b) |
50,000 | 13,201,500 | ||||||
|
|
|
|||||||
| 29,600,069 | ||||||||
| Vermont — 1.7% |
||||||||
| University of Vermont & State Agricultural College, Refunding RB, Series A, 4.00%, 10/01/38 |
1,200 | 1,245,924 | ||||||
| Vermont Educational & Health Buildings Financing Agency, RB, Hospital, Fletcher Allen Health, Series A, |
800 | 838,536 | ||||||
| Vermont Educational & Health Buildings Financing Agency, Refunding RB, St. Michaels College, 5.00%, 10/01/42 |
900 | 988,380 | ||||||
|
|
|
|||||||
| 3,072,840 | ||||||||
| Virginia — 0.6% |
||||||||
| Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 5.50%, 1/01/42 |
940 | 1,038,155 | ||||||
| Washington — 0.9% |
||||||||
| Washington Healthcare Facilities Authority, RB, MultiCare Health System, Series B (AGC), 6.00%, 8/15/39 |
1,400 | 1,632,932 | ||||||
| West Virginia — 0.7% |
||||||||
| West Virginia State University, RB, West Virginia University Projects, Series B, 5.00%, 10/01/36 |
1,100 | 1,279,080 | ||||||
| Wyoming — 0.8% |
||||||||
| County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, 5.25%, 7/15/26 |
1,200 | 1,363,236 | ||||||
| Total Municipal Bonds – 135.2% | 241,189,951 | |||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (j) |
||||||||
| Colorado — 2.3% |
||||||||
| Colorado Health Facilities Authority, RB, Catholic Health, Series C-7 (AGM), 5.00%, 9/01/36 |
3,750 | 4,031,625 | ||||||
| Massachusetts — 0.9% |
||||||||
| Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41 |
1,450 | 1,636,847 | ||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (j) |
Par (000) |
Value | ||||||
| Michigan — 2.3% |
||||||||
| Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32 |
$ | 4,000 | $ | 4,131,240 | ||||
| New Jersey — 0.9% |
||||||||
| New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 6/15/36 |
1,400 | 1,598,856 | ||||||
| New York — 12.5% |
||||||||
| Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47 |
2,500 | 2,975,139 | ||||||
| New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40 |
450 | 536,885 | ||||||
| New York City Municipal Water Finance Authority, Refunding RB: |
||||||||
| 5.50%, 6/15/40 |
405 | 479,456 | ||||||
| Second General Resolution, Series CC, 5.00%, 6/15/47 |
6,000 | 6,804,420 | ||||||
| Water & Sewer System, Series A, 4.75%, 6/15/30 |
3,000 | 3,365,250 | ||||||
| New York Liberty Development Corp., RB, 1 World Trade Center Port Authority, 5.25%, 12/15/43 |
2,505 | 2,875,150 | ||||||
| New York State Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/38 |
2,199 | 2,498,221 | ||||||
| New York State Dormitory Authority, Refunding LRB, State University Dormitory Facilities, Series A, 5.00%, 7/01/42 |
760 | 874,311 | ||||||
| New York State Thruway Authority, Refunding RB, Transportation, Series A, 5.00%, 3/15/31 |
1,560 | 1,833,515 | ||||||
|
|
|
|||||||
| 22,242,347 | ||||||||
| Ohio — 2.0% |
||||||||
| County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 10/01/41 |
1,260 | 1,344,269 | ||||||
| Ohio Higher Educational Facility Commission, Refunding RB, Hospital, Cleveland Clinic Health, Series A, |
2,000 | 2,227,060 | ||||||
|
|
|
|||||||
| 3,571,329 | ||||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 20.9% |
37,212,244 | |||||||
| Total Long-Term Investments (Cost — $253,103,120) — 156.1% |
278,402,195 | |||||||
| Short-Term Securities | Shares | |||||||
| FFI Institutional Tax-Exempt Fund, 0.01% (k)(l) |
3,101,522 | 3,101,522 | ||||||
| Total Short-Term Securities (Cost — $3,101,522) — 1.7% |
3,101,522 | |||||||
| Total Investments (Cost—$256,204,642) — 157.8% | 281,503,717 | |||||||
| Liabilities in Excess of Other Assets — (1.4)% | (2,513,458 | ) | ||||||
| Liability for TOB Trust Certificates, Including Interest |
|
(20,615,148 | ) | |||||
| VMTP Shares, at Liquidation Value — (44.8)% | (79,900,000 | ) | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% | $ | 178,475,111 | ||||||
|
|
|
|||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 27 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) |
| Notes to Schedule of Investments |
| (a) | US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (b) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
| (c) | Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date. |
| (d) | Issuer filed for bankruptcy and/or is in default of principal and/or interest payments. |
| (e) | Non-income producing security. |
| (f) | 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. |
| (g) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (h) | Variable rate security. Rate shown is as of report date. |
| (i) | When-issued security. Unsettled when-issued transactions were as follows: |
| Counterparty | Value | Unrealized Appreciation |
||||||
| Wedbush Morgan Securities |
$ | 2,379,446 | $ | 2,207 | ||||
| (j) | Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
| (k) | Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
| Affiliate | Shares Held at August 31, 2012 |
Net Activity |
Shares Held at February 28, 2013 |
Income | ||||||||||||
| FFI Institutional Tax-Exempt Fund |
583,607 | 2,517,915 | 3,101,522 | $ | 340 | |||||||||||
| (l) | Represents the current yield as of report date. |
| Ÿ | Financial futures contracts as of February 28, 2013 were as follows: |
| Contracts Sold |
Issue | Exchange | Expiration | Notional Value |
Unrealized Depreciation |
|||||||||||
| (22 | ) | 30-Year US Treasury Bond | Chicago Board of Trade | June 2013 | $ | 3,163,188 | $ | (1,409 | ) | |||||||
| Ÿ | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
| Ÿ | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access |
| Ÿ | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
| Ÿ | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer Note 1 of the Notes to Financial Statements.
See Notes to Financial Statements.
| 28 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (concluded) |
BlackRock Municipal Bond Trust (BBK) |
The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Assets: |
||||||||||||||||||||
| Investments: | ||||||||||||||||||||
| Long-Term Investments1 |
— | $ | 278,402,195 | — | $ | 278,402,195 | ||||||||||||||
| Short-Term Securities |
$ | 3,101,522 | — | — | 3,101,522 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 3,101,522 | $ | 278,402,195 | — | $ | 281,503,717 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
1 See above Schedule of Investments for values in each state or political subdivision. |
| |||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Derivative Financial Instruments2 | ||||||||||||||||||||
| Liabilities: |
||||||||||||||||||||
| Interest rate contracts |
$ | (1,409 | ) | — | — | $ | (1,409 | ) | ||||||||||||
| 2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
| |||||||||||||||||||
|
Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:
|
| |||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Assets: |
|
|||||||||||||||||||
| Investments: | ||||||||||||||||||||
| Cash |
$ | 122,644 | — | — | $ | 122,644 | ||||||||||||||
| Cash pledged as collateral for financial futures contracts |
— | $ | 66,000 | — | 66,000 | |||||||||||||||
| Liabilities: |
||||||||||||||||||||
| TOB trust certificates |
— | (20,608,872 | ) | — | (20,608,872 | ) | ||||||||||||||
| VMTP Shares |
— | (79,900,000 | ) | — | (79,900,000 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 122,644 | $ | (100,442,872 | ) | — | $ | (100,320,228 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
There were no transfers between levels during the six months ended February 28, 2013.
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 29 |
Table of Contents
| Schedule of Investments February 28, 2013 (Unaudited) |
BlackRock Municipal Income Investment Quality Trust (BAF) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Alabama — 3.0% |
||||||||
| Alabama Incentives Financing Authority, RB, Series A, 5.00%, 9/01/42 |
$ | 1,500 | $ | 1,700,115 | ||||
| Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC): |
||||||||
| 6.13%, 6/01/34 |
1,000 | 1,191,450 | ||||||
| 6.00%, 6/01/39 |
1,000 | 1,176,770 | ||||||
| Selma IDB, RB, International Paper Co. Project, Series A, 5.38%, 12/01/35 |
335 | 369,512 | ||||||
|
|
|
|||||||
| 4,437,847 | ||||||||
| Arizona — 0.6% |
||||||||
| Arizona Board of Regents, Refunding COP, University of Arizona, Series C, 5.00%, 6/01/28 |
250 | 289,707 | ||||||
| Arizona Board of Regents, Refunding RB, University of Arizona, Series A, 5.00%, 6/01/42 |
500 | 569,020 | ||||||
|
|
|
|||||||
| 858,727 | ||||||||
| California — 11.5% |
||||||||
| California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 |
2,155 | 2,543,740 | ||||||
| California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42 |
1,120 | 1,371,586 | ||||||
| County of Sacramento California, ARB, Senior Series A (AGC), 5.50%, 7/01/41 |
1,400 | 1,636,978 | ||||||
| Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC), 5.00%, 8/01/32 |
1,000 | 1,134,510 | ||||||
| Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38 |
1,175 | 1,364,939 | ||||||
| Los Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/39 |
3,210 | 3,653,654 | ||||||
| Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 8/01/34 |
1,000 | 1,190,610 | ||||||
| San Bernardino Community College District, GO, Election of 2002, Series A, 6.25%, 8/01/33 |
925 | 1,124,171 | ||||||
| San Diego Public Facilities Financing Authority, Refunding RB, Series B (AGC), 5.38%, 8/01/34 |
1,125 | 1,327,635 | ||||||
| State of California, GO, Refunding, Various Purpose, 5.00%, 9/01/41 |
1,270 | 1,423,022 | ||||||
|
|
|
|||||||
| 16,770,845 | ||||||||
| Colorado — 1.6% |
||||||||
| City & County of Denver Colorado, Refunding ARB, Series B, 5.00%, 11/15/37 |
600 | 687,372 | ||||||
| Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 5/15/26 |
1,425 | 1,693,726 | ||||||
|
|
|
|||||||
| 2,381,098 | ||||||||
| Florida — 4.9% |
||||||||
| City of Jacksonville Florida, RB, Series A, 5.25%, 10/01/31 |
4,525 | 5,381,492 | ||||||
| City of Jacksonville Florida, Refunding RB, Better Jacksonville, Series A, 5.00%, 10/01/30 |
745 | 869,050 | ||||||
| Orlando-Orange County Expressway Authority, Refunding RB, 5.00%, 7/01/29 (a) |
750 | 879,247 | ||||||
|
|
|
|||||||
| 7,129,789 | ||||||||
| Georgia — 2.1% |
||||||||
| City of Atlanta Georgia, Department of Aviation, Refunding RB, General, Series C, 6.00%, 1/01/30 |
2,500 | 3,111,425 | ||||||
| Illinois — 13.3% |
||||||||
| Chicago Illinois Board of Education, GO, Series A: |
||||||||
| 5.50%, 12/01/39 |
1,500 | 1,738,020 | ||||||
| 5.00%, 12/01/42 |
1,865 | 2,030,071 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Illinois (concluded) |
||||||||
| Chicago Transit Authority, RB: |
||||||||
| Federal Transit Administration Section 5309, Series A (AGC), 6.00%, 6/01/26 |
$ | 1,300 | $ | 1,510,886 | ||||
| Sales Tax Receipts Revenue, 5.25%, 12/01/36 |
415 | 477,117 | ||||||
| Sales Tax Receipts Revenue, 5.25%, 12/01/40 |
1,325 | 1,514,647 | ||||||
| City of Chicago Illinois, ARB, O’Hare International Airport, General, Third Lien: |
||||||||
| Series A, 5.75%, 1/01/39 |
825 | 968,591 | ||||||
| Series C, 6.50%, 1/01/41 |
3,740 | 4,836,157 | ||||||
| City of Chicago Illinois, Refunding RB: |
||||||||
| O’Hare International Airport, General, Third Lien, Series C (AGC), 5.25%, 1/01/30 |
1,000 | 1,151,540 | ||||||
| Sales Tax Revenue, Series A, 5.25%, 1/01/38 |
515 | 591,447 | ||||||
| Cook County Forest Preserve District, GO, Series C, 5.00%, 12/15/32 |
380 | 436,259 | ||||||
| Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/32 |
180 | 206,649 | ||||||
| Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 8/15/41 |
1,885 | 2,256,609 | ||||||
| Illinois Finance Authority, Refunding RB, Northwestern Memorial Healthcare, 5.00%, 8/15/37 |
300 | 341,424 | ||||||
| Railsplitter Tobacco Settlement Authority, RB: |
||||||||
| 5.50%, 6/01/23 |
915 | 1,104,003 | ||||||
| 6.00%, 6/01/28 |
260 | 311,199 | ||||||
|
|
|
|||||||
| 19,474,619 | ||||||||
| Indiana — 3.0% |
||||||||
| Indiana Finance Authority Waste Water Utility, RB, First Lien CWA Authority Project, Series A, 5.00%, 10/01/41 |
1,500 | 1,711,050 | ||||||
| Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), |
2,415 | 2,733,442 | ||||||
|
|
|
|||||||
| 4,444,492 | ||||||||
| Kansas — 1.9% |
||||||||
| Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series A, 5.00%, 11/15/32 |
2,380 | 2,764,775 | ||||||
| Louisiana — 0.4% |
||||||||
| New Orleans Aviation Board Louisiana, Refunding GARB, Restructuring (AGC): |
||||||||
| Series A-1, 6.00%, 1/01/23 |
375 | 447,034 | ||||||
| Series A-2, 6.00%, 1/01/23 |
150 | 178,813 | ||||||
|
|
|
|||||||
| 625,847 | ||||||||
| Michigan — 4.4% |
||||||||
| City of Detroit Michigan, RB, Water Supply System, Second Lien, Series B (AGM), 6.25%, 7/01/36 |
1,700 | 1,977,372 | ||||||
| City of Detroit Michigan, Refunding RB, Sewage Disposal System, Senior Lien, (AGM): |
||||||||
| Series B, 7.50%, 7/01/33 |
580 | 722,466 | ||||||
| Series C-1, 7.00%, 7/01/27 |
1,800 | 2,215,224 | ||||||
| Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39 |
1,205 | 1,535,242 | ||||||
|
|
|
|||||||
| 6,450,304 | ||||||||
| Minnesota — 3.1% |
||||||||
| City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 |
3,680 | 4,534,018 | ||||||
| Mississippi — 2.4% |
||||||||
| Mississippi Development Bank, Refunding RB: |
||||||||
| Jackson Mississippi Water & Sewer (AGM), 5.00%, 9/01/30 |
2,000 | 2,330,560 | ||||||
| Jackson Public School District Project, 5.00%, 4/01/28 |
1,000 | 1,140,270 | ||||||
|
|
|
|||||||
| 3,470,830 | ||||||||
See Notes to Financial Statements.
| 30 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Income Investment Quality Trust (BAF) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Nevada — 1.6% |
||||||||
| Clark County Water Reclamation District, GO, Series A, 5.25%, 7/01/34 |
$ | 2,000 | $ | 2,403,100 | ||||
| New Jersey — 4.9% |
||||||||
| New Jersey EDA, RB, School Facilities Construction, Series KK, 5.00%, 3/01/31 |
1,430 | 1,657,370 | ||||||
| New Jersey Health Care Facilities Financing Authority, RB, Virtua Health (AGC), 5.50%, 7/01/38 |
1,300 | 1,446,653 | ||||||
| New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 |
1,540 | 1,708,938 | ||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A (AGC), 5.50%, 12/15/38 |
2,000 | 2,326,940 | ||||||
|
|
|
|||||||
| 7,139,901 | ||||||||
| New York — 6.6% |
||||||||
| Metropolitan Transportation Authority, Refunding RB, Transportation, Series C, 5.00%, 11/15/28 |
1,300 | 1,524,809 | ||||||
| New York City Transitional Finance Authority, RB: |
||||||||
| Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/29 |
2,465 | 2,915,824 | ||||||
| Future Tax Secured, Sub-Series E-1, 5.00%, 2/01/42 |
2,000 | 2,279,200 | ||||||
| New York State Dormitory Authority, RB, Series B, 5.00%, 3/15/42 |
2,500 | 2,853,150 | ||||||
|
|
|
|||||||
| 9,572,983 | ||||||||
| North Carolina — 1.1% |
||||||||
| North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/32 |
1,340 | 1,563,445 | ||||||
| Ohio — 1.1% |
||||||||
| Ohio State University, RB, Special Purpose General Receipts, Series A, 5.00%, 6/01/38 |
1,375 | 1,596,444 | ||||||
| Pennsylvania — 1.6% |
||||||||
| Pennsylvania Higher Educational Facilities Authority, RB, Temple University, 5.00%, 4/01/42 |
2,000 | 2,263,440 | ||||||
| Puerto Rico — 1.0% |
||||||||
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39 |
1,350 | 1,522,692 | ||||||
| South Carolina — 4.7% |
||||||||
| City of North Charleston South Carolina, RB, Public Facilities Corp. Installment Purchase, 5.00%, 6/01/35 |
6,000 | 6,859,200 | ||||||
| Texas — 17.9% |
||||||||
| Austin Community College District, RB, Educational Facilities Project, Round Rock Campus, 5.25%, 8/01/33 |
2,000 | 2,296,300 | ||||||
| City of Houston Texas Utility System, Refunding RB, Combined, First Lien, Series A (AGC): |
||||||||
| 6.00%, 11/15/35 |
2,600 | 3,165,734 | ||||||
| 6.00%, 11/15/36 |
2,215 | 2,711,359 | ||||||
| 5.38%, 11/15/38 |
1,000 | 1,164,480 | ||||||
| Frisco ISD Texas, GO, School Building (AGC), 5.50%, 8/15/41 |
3,365 | 4,149,213 | ||||||
| Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31 |
500 | 638,610 | ||||||
| Houston Community College System, GO, 5.00%, 2/15/36 (a) |
520 | 590,512 | ||||||
| North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41 |
1,000 | 1,188,160 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Texas (concluded) |
||||||||
| North Texas Tollway Authority, Refunding RB, System, First Tier: |
||||||||
| (AGM), 6.00%, 1/01/43 |
$ | 1,000 | $ | 1,181,370 | ||||
| Series B, 5.00%, 1/01/42 |
2,250 | 2,501,032 | ||||||
| Series K-1 (AGC), 5.75%, 1/01/38 |
1,500 | 1,690,335 | ||||||
| Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC), |
1,000 | 1,185,040 | ||||||
| Texas Tech University, Refunding RB, Refunding & Improvement, 14th Series A, 5.00%, 8/15/31 |
1,000 | 1,172,150 | ||||||
| Texas Transportation Commission, Refunding RB, First Tier, Series A, 5.00%, 8/15/41 |
335 | 367,539 | ||||||
| University of Texas System, Refunding RB, Financing System, Series B, 5.00%, 8/15/43 |
1,805 | 2,110,226 | ||||||
|
|
|
|||||||
| 26,112,060 | ||||||||
| Utah — 1.0% |
||||||||
| Utah Transit Authority, Refunding RB, Sales Tax Revenue, 5.00%, 6/15/42 |
1,250 | 1,410,337 | ||||||
| Virginia — 2.4% |
||||||||
| Fairfax County IDA, RB, Inova Health System, 5.00%, 5/15/40 |
685 | 778,585 | ||||||
| Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/18 (b) |
1,000 | 1,314,670 | ||||||
| Virginia Resources Authority, RB, Series A-1, 5.00%, 11/01/42 |
1,225 | 1,418,219 | ||||||
|
|
|
|||||||
| 3,511,474 | ||||||||
| Washington — 3.9% |
||||||||
| City of Seattle Washington, Refunding RB, Series A, 5.25%, 2/01/36 |
1,025 | 1,193,643 | ||||||
| Port of Seattle, Refunding RB, Intermediate, Series A, 5.00%, 8/01/32 |
3,000 | 3,497,370 | ||||||
| State of Washington, GO, Various Purpose, Series B, 5.25%, 2/01/36 |
795 | 935,024 | ||||||
|
|
|
|||||||
| 5,626,037 | ||||||||
| Wisconsin — 1.5% |
||||||||
| University of Wisconsin Hospitals & Clinics Authority, Refunding RB, Series A, 5.00%, 4/01/38 (a) |
370 | 413,827 | ||||||
| Wisconsin Health & Educational Facilities Authority, RB, Ascension Health, Series D, 5.00%, 11/15/41 |
1,230 | 1,382,212 | ||||||
| Wisconsin Health & Educational Facilities Authority, Refunding RB, Series A, 5.00%, 4/01/42 |
315 | 354,025 | ||||||
|
|
|
|||||||
| 2,150,064 | ||||||||
| Total Municipal Bonds – 101.5% | 148,185,793 | |||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (c) |
||||||||
| Alabama — 1.1% |
||||||||
| Mobile Board of Water & Sewer Commissioners, RB (NPFGC), 5.00%, 1/01/31 |
1,500 | 1,635,840 | ||||||
| California — 9.4% |
||||||||
| San Marcos Unified School District, GO, Election of 2010, Series A, 5.25%, 8/01/31 |
10,680 | 12,526,465 | ||||||
| University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37 |
1,000 | 1,154,736 | ||||||
|
|
|
|||||||
| 13,681,201 | ||||||||
| District of Columbia — 0.6% |
||||||||
| District of Columbia Water & Sewer Authority, Refunding RB, Series A, 6.00%, 10/01/35 (d) |
760 | 923,319 | ||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 31 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Income Investment Quality Trust (BAF) (Percentages shown are based on Net Assets) |
| Municipal Bonds Transferred to Tender Option Bond Trusts (c) |
Par (000) |
Value | ||||||
| Florida — 4.0% |
||||||||
| County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42 |
$ | 5,150 | $ | 5,787,004 | ||||
| Illinois — 5.4% |
||||||||
| Chicago Transit Authority, Refunding RB, Federal Transit Administration Section 5309 (AGM), 5.00%, 6/01/28 |
2,999 | 3,327,693 | ||||||
| City of Chicago Illinois Waterworks, Refunding RB, Second Lien, 5.00%, 11/01/42 |
1,020 | 1,151,260 | ||||||
| Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33 |
2,999 | 3,425,030 | ||||||
|
|
|
|||||||
| 7,903,983 | ||||||||
| Kentucky — 0.7% |
||||||||
| Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27 |
898 | 1,056,281 | ||||||
| Massachusetts — 1.6% |
||||||||
| Massachusetts School Building Authority, Sales Tax RB, Senior Dedicated Sales Tax Bonds, Series B, 5.00%, 10/15/41 |
2,000 | 2,293,900 | ||||||
| Nevada — 4.9% |
||||||||
| Clark County Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/38 |
2,000 | 2,417,980 | ||||||
| Las Vegas Valley Water District, GO, Refunding, Series C, 5.00%, 6/01/28 |
4,100 | 4,800,321 | ||||||
|
|
|
|||||||
| 7,218,301 | ||||||||
| New Jersey — 1.6% |
||||||||
| New Jersey EDA, RB, School Facilities Construction (AGC): |
||||||||
| 6.00%, 12/15/18 (b) |
500 | 598,470 | ||||||
| 6.00%, 12/15/34 |
500 | 598,470 | ||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 |
1,000 | 1,142,040 | ||||||
|
|
|
|||||||
| 2,338,980 | ||||||||
| New York — 16.3% |
||||||||
| Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47 |
1,000 | 1,190,055 | ||||||
| New York City Municipal Water Finance Authority, Refunding RB: |
||||||||
| Second General Resolution, Fiscal 2, Series BB, 5.25%, 6/15/44 |
4,993 | 5,747,364 | ||||||
| Series FF, 5.00%, 6/15/45 |
3,019 | 3,414,033 | ||||||
| New York City Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39 |
900 | 1,006,125 | ||||||
| New York City Transitional Finance Authority, RB, Future Tax Secured Revenue, Series E, 5.00%, 2/01/42 |
1,160 | 1,321,667 | ||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (c) |
Par (000) |
Value | ||||||
| New York (concluded) |
||||||||
| New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43 |
$ | 2,955 | $ | 3,391,644 | ||||
| New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 |
1,740 | 2,061,900 | ||||||
| New York State Dormitory Authority, RB, General Purpose Series C, 5.00%, 3/15/41 |
4,995 | 5,647,247 | ||||||
|
|
|
|||||||
| 23,780,035 | ||||||||
| Puerto Rico — 0.9% |
||||||||
| Puerto Rico Sales Tax Financing Corp., Refunding RB, Series C, 5.25%, 8/01/40 |
1,180 | 1,288,135 | ||||||
| Texas — 5.8% |
||||||||
| North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41 |
2,310 | 2,744,649 | ||||||
| Waco Educational Finance Corp., Refunding RB, Baylor University, 5.00%, 3/01/43 |
4,995 | 5,689,655 | ||||||
|
|
|
|||||||
| 8,434,304 | ||||||||
| Utah — 0.7% |
||||||||
| City of Riverton Utah Hospital, RB, IHC Health Services, Inc., 5.00%, 8/15/41 |
1,005 | 1,104,053 | ||||||
| Washington — 1.5% |
||||||||
| University of Washington, Refunding RB, Series A, 5.00%, 7/01/41 |
1,860 | 2,152,386 | ||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 54.5% |
79,597,722 | |||||||
| Total Long-Term Investments (Cost — $207,378,812) — 156.0% |
227,783,515 | |||||||
| Short-Term Securities | Shares | |||||||
| FFI Institutional Tax-Exempt Fund, 0.01% (e)(f) |
637,888 | 637,888 | ||||||
| Total Short-Term Securities (Cost — $637,888) — 0.4% |
637,888 | |||||||
| Total Investments (Cost — $208,016,700) — 156.4% | 228,421,403 | |||||||
| Liabilities in Excess of Other Assets — (0.1)% | (134,455 | ) | ||||||
| Liability for TOB Trust Certificates, Including Interest |
|
(40,016,213 | ) | |||||
| VMTP Shares, at Liquidation Value — (28.9)% | (42,200,000 | ) | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% | $ | 146,070,735 | ||||||
|
|
|
|||||||
| Notes to Schedule of Investments |
| (a) | When-issued security. Unsettled when-issued transactions were as follows: |
| Counterparty | Value |
Unrealized Appreciation |
||||||
| JPMorgan Securities, Inc. |
$ | 590,512 | $ | 546 | ||||
| Pershing LLC |
$ | 879,247 | $ | 4,808 | ||||
| JPMorgan Securities, Inc. |
$ | 413,827 | $ | (507 | ) | |||
| (b) | US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (c) | Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
| 32 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (concluded) |
BlackRock Municipal Income Investment Quality Trust (BAF) |
| (d) | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $380,124. |
| (e) | Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
| Affiliate | Shares Held at August 31, 2012 |
Net Activity |
Shares Held at February 28, 2013 |
Income | ||||||||||||
| FFI Institutional Tax-Exempt Fund |
908,400 | (270,512 | ) | 637,888 | $ | 176 | ||||||||||
| (f) | Represents the current yield as of report date. |
| Ÿ | Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
| Ÿ | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access |
| Ÿ | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
| Ÿ | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of February 28, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Assets: |
||||||||||||||||||||
| Investments: | ||||||||||||||||||||
| Long-Term Investments1 |
— | $ | 227,783,515 | — | $ | 227,783,515 | ||||||||||||||
| Short-Term Securities |
$ | 637,888 | — | — | 637,888 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 637,888 | $ | 227,783,515 | — | $ | 228,421,403 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
1 See above Schedule of Investments for values in each state or political subdivision. |
| |||||||||||||||||||
|
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
|
| |||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Liabilities: |
||||||||||||||||||||
| TOB trust certificates |
— | $ | (39,996,660 | ) | — | $ | (39,996,660 | ) | ||||||||||||
| VMTP Shares |
— | (42,200,000 | ) | — | (42,200,000 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
— | $ | (82,196,660 | ) | — | $ | (82,196,660 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
There were no transfers between levels during the six months ended February 28, 2013.
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 33 |
Table of Contents
| Schedule of Investments February 28, 2013 (Unaudited) |
BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Alabama — 3.6% |
||||||||
| Alabama State Docks Department, Refunding RB, 6.00%, 10/01/40 |
$ | 3,800 | $ | 4,528,917 | ||||
| Birmingham Airport Authority, RB (AGM), 5.50%, 7/01/40 |
5,800 | 6,529,002 | ||||||
| Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/39 |
1,495 | 1,759,271 | ||||||
| County of Jefferson Alabama, RB, Series A, 4.75%, 1/01/25 |
2,800 | 2,670,388 | ||||||
|
|
|
|||||||
| 15,487,578 | ||||||||
| Alaska — 0.6% |
||||||||
| Alaska Housing Finance Corp., Refunding RB, General Mortgage Revenue Bond, Series A, 4.13%, 12/01/37 |
1,390 | 1,433,646 | ||||||
| Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A, 5.50%, 10/01/41 |
1,070 | 1,249,182 | ||||||
|
|
|
|||||||
| 2,682,828 | ||||||||
| Arizona — 0.5% |
||||||||
| State of Arizona, COP, Department of Administration, Series A (AGM): |
||||||||
| 5.00%, 10/01/27 |
1,500 | 1,713,330 | ||||||
| 5.25%, 10/01/28 |
250 | 288,415 | ||||||
|
|
|
|||||||
| 2,001,745 | ||||||||
| California — 22.0% |
||||||||
| California Health Facilities Financing Authority, RB, St. Joseph Health System, Series A, 5.75%, 7/01/39 |
625 | 740,600 | ||||||
| California Infrastructure & Economic Development Bank, RB, Bay Area Toll Bridges, First Lien, Series A (AMBAC), 5.00%, 1/01/28 (a) |
10,100 | 13,512,083 | ||||||
| California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 4/01/42 |
1,620 | 1,825,254 | ||||||
| Coast Community College District California, GO, CAB, Election of 2002, Series C (AGM): |
||||||||
| 5.00%, 8/01/13 (b) |
7,450 | 7,680,429 | ||||||
| 5.35%, 8/01/36 (c) |
4,200 | 1,220,814 | ||||||
| Golden State Tobacco Securitization Corp. California, RB, Series 2003-A-1 (a): |
||||||||
| 6.63%, 6/01/13 |
6,500 | 6,607,965 | ||||||
| 6.75%, 6/01/13 |
14,500 | 14,745,485 | ||||||
| Metropolitan Water District of Southern California, RB, Series B-1 (NPFGC), 5.00%, 10/01/13 (a) |
16,745 | 17,224,074 | ||||||
| Monterey Peninsula Community College District, GO, CAB, Series C (AGM) (c): |
||||||||
| 4.97%, 8/01/31 |
13,575 | 5,496,246 | ||||||
| Monterey Peninsula Community College District, GO, CAB, Series C (AGM) (c) (concluded): |
||||||||
| 5.01%, 8/01/32 |
14,150 | 5,416,337 | ||||||
| Orange County Sanitation District, COP, Series B (AGM), 5.00%, 2/01/31 |
2,500 | 2,809,700 | ||||||
| San Diego Unified School District California, GO, CAB, Election of 2008, Series C, 4.67%, 7/01/38 (c) |
2,000 | 620,520 | ||||||
| San Diego Unified School District California, GO, Refunding, CAB, Series R-1 (c): |
||||||||
| 4.22%, 7/01/30 |
5,995 | 2,905,836 | ||||||
| 4.27%, 7/01/31 |
1,400 | 645,022 | ||||||
| San Jose Unified School District, Santa Clara County California, GO, Election of 2002, Series B (NPFGC), |
2,350 | 2,613,153 | ||||||
| State of California, GO, Various Purpose, 5.00%, 4/01/42 |
5,000 | 5,633,500 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (concluded) |
||||||||
| State of California, GO, Refunding, Various Purpose, 5.00%, 10/01/41 |
$ | 1,100 | $ | 1,233,628 | ||||
| Yosemite Community College District, GO, CAB, Election of 2004, Series D, 4.78%, 8/01/37 (c) |
10,000 | 3,154,400 | ||||||
|
|
|
|||||||
| 94,085,046 | ||||||||
| Colorado — 0.6% |
||||||||
| Colorado State Board of Governors, Refunding RB, Series A, 5.00%, 3/01/43 (d) |
1,125 | 1,410,131 | ||||||
| Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31 |
960 | 1,095,235 | ||||||
|
|
|
|||||||
| 2,505,366 | ||||||||
| District of Columbia — 2.3% |
||||||||
| District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, 6.75%, 5/15/40 |
9,500 | 9,879,810 | ||||||
| Florida — 12.9% |
||||||||
| Broward County School Board Florida, COP, Series A (AGM), 5.25%, 7/01/33 |
1,400 | 1,589,294 | ||||||
| Broward County Water & Sewer Utility Revenue, Refunding RB, Series A, 5.25%, 10/01/34 |
6,750 | 7,842,892 | ||||||
| City of Jacksonville Transit Revenue, Refunding RB, Series A, 5.00%, 10/01/30 |
320 | 374,448 | ||||||
| County of Duval Florida School Board, COP, Master Lease Program (AGM), 5.00%, 7/01/33 |
3,475 | 3,872,818 | ||||||
| County of Miami-Dade Florida, RB: |
||||||||
| (AGM), 5.00%, 7/01/35 |
1,300 | 1,431,729 | ||||||
| CAB, Sub-Series A (NPFGC), 5.21%, 10/01/38 (c) |
22,270 | 5,970,587 | ||||||
| County of Miami-Dade Florida, Refunding ARB, Series A,: |
||||||||
| 5.50%, 10/01/36 |
5,000 | 5,826,950 | ||||||
| Miami International Airport, 5.50%, 10/01/41 |
5,000 | 5,729,600 | ||||||
| County of Miami-Dade Florida, Refunding RB, Special Obligation, Series B: |
||||||||
| 4.00%, 10/01/37 |
5,000 | 5,074,800 | ||||||
| 5.00%, 10/01/37 |
780 | 871,237 | ||||||
| Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 3 (Ginnie Mae, Fannie Mae, Freddie Mac), 5.45%, 7/01/33 |
3,800 | 4,133,374 | ||||||
| Florida State Department of Environmental Protection, RB, Series B (NPFGC), 5.00%, 7/01/27 |
6,150 | 7,018,196 | ||||||
| Sarasota County Public Hospital District, RB, Sarasota Memorial Hospital Project, Series A, 5.63%, 7/01/39 |
300 | 332,541 | ||||||
| South Florida Water Management District, COP (AMBAC), 5.00%, 10/01/36 |
1,000 | 1,098,370 | ||||||
| Tampa-Hillsborough County Expressway Authority, Refunding RB, Series A, 5.00%, 7/01/37 |
1,325 | 1,493,394 | ||||||
| Tohopekaliga Water Authority, Refunding RB, Series A, 5.25%, 10/01/36 |
2,000 | 2,325,380 | ||||||
|
|
|
|||||||
| 54,985,610 | ||||||||
| Georgia — 2.5% |
||||||||
| Burke County Development Authority, Refunding RB, Oglethorpe Power, Vogtle Project, Series C, 5.70%, 1/01/43 |
1,250 | 1,355,900 | ||||||
| City of Atlanta Georgia, Department of Aviation, Refunding RB, General, Series C, 6.00%, 1/01/30 |
7,500 | 9,334,275 | ||||||
|
|
|
|||||||
| 10,690,175 | ||||||||
| Hawaii — 1.4% |
||||||||
| Hawaii State Harbor System, RB, Series A, 5.50%, 7/01/35 |
5,000 | 5,879,200 | ||||||
See Notes to Financial Statements.
| 34 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Illinois — 1.4% |
||||||||
| Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39 |
$ | 2,590 | $ | 3,000,981 | ||||
| Chicago Transit Authority, RB, 5.25%, 12/01/36 |
650 | 747,292 | ||||||
| City of Chicago Illinois, GO, Harbor Facilities, Series C, 5.25%, 1/01/40 |
600 | 683,340 | ||||||
| Cook County Forest Preserve District, GO, Series C, 5.00%, 12/15/37 |
360 | 412,049 | ||||||
| Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/37 |
310 | 353,481 | ||||||
| Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28 |
710 | 849,813 | ||||||
|
|
|
|||||||
| 6,046,956 | ||||||||
| Indiana — 1.9% |
||||||||
| Indiana Finance Authority, RB, First Lien, CWA Authority, Series A, 5.25%, 10/01/38 |
1,100 | 1,281,665 | ||||||
| Indiana Municipal Power Agency, RB, Series B, 5.75%, 1/01/34 |
450 | 467,555 | ||||||
| Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), |
5,750 | 6,508,195 | ||||||
|
|
|
|||||||
| 8,257,415 | ||||||||
| Iowa — 1.3% |
||||||||
| Iowa Finance Authority, RB, Series A (AGC), 5.63%, 8/15/37 |
5,000 | 5,687,250 | ||||||
| Kentucky — 0.4% |
||||||||
| Kentucky State Property & Buildings Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/29 |
1,500 | 1,719,225 | ||||||
| Louisiana — 2.8% |
||||||||
| Parish of St. Charles Louisiana Gulf Opportunity Zone, RB, Valero Energy Corp. Project, 4.00%, 12/01/40 (e) |
1,720 | 1,893,152 | ||||||
| Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A, 5.13%, 6/01/37 |
1,750 | 1,868,650 | ||||||
| State of Louisiana Gas & Fuels Tax, RB, Series A (AGM), 5.00%, 5/01/31 |
7,500 | 8,401,050 | ||||||
|
|
|
|||||||
| 12,162,852 | ||||||||
| Michigan — 2.3% |
||||||||
| City of Detroit Michigan Sewage Disposal System, Refunding RB, Second Lien, Series E (BHAC), 5.75%, 7/01/31 |
3,000 | 3,469,980 | ||||||
| Lansing Board of Water & Light Utilities System, RB, Series A, 5.50%, 7/01/41 |
1,100 | 1,300,673 | ||||||
| Michigan State Building Authority, Refunding RB, Facilities Program: |
||||||||
| Series I-A, 5.38%, 10/15/36 |
2,000 | 2,315,900 | ||||||
| Series I-A, 5.38%, 10/15/41 |
800 | 919,872 | ||||||
| Series II-A, 5.38%, 10/15/36 |
1,500 | 1,741,830 | ||||||
|
|
|
|||||||
| 9,748,255 | ||||||||
| Mississippi — 0.2% |
||||||||
| Medical Center Educational Building Corp., RB, University of Mississippi Medical Center Facilities Expansion & Renovation Project, Series A, 5.00%, 6/01/41 |
800 | 908,384 | ||||||
| Nebraska — 2.5% |
||||||||
| Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37 |
9,345 | 10,577,512 | ||||||
| Nevada — 1.1% |
||||||||
| County of Clark Nevada, ARB, Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 7/01/39 |
4,100 | 4,623,324 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| New Jersey — 4.1% |
||||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System: |
||||||||
| CAB, Series C (BHAC), 3.47%, 12/15/27 (c) |
$ | 17,500 | $ | 10,518,550 | ||||
| Series A, 5.50%, 6/15/41 |
3,000 | 3,494,430 | ||||||
| Series A, 5.00%, 6/15/42 |
3,000 | 3,326,700 | ||||||
|
|
|
|||||||
| 17,339,680 | ||||||||
| New York — 1.7% |
||||||||
| Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47 |
770 | 916,423 | ||||||
| New York City Transitional Finance Authority, RB, Fiscal 2009, Series S-4, 5.50%, 1/15/33 |
1,950 | 2,269,176 | ||||||
| New York State Dormitory Authority, ERB, Series B, 5.75%, 3/15/36 |
1,300 | 1,577,186 | ||||||
| New York State Thruway Authority, Refunding RB, Series I, 5.00%, 1/01/37 |
2,300 | 2,601,392 | ||||||
|
|
|
|||||||
| 7,364,177 | ||||||||
| North Carolina — 0.7% |
||||||||
| North Carolina Medical Care Commission, RB, Novant Health Obligation, Series A, 4.75%, 11/01/43 |
2,875 | 3,080,908 | ||||||
| Ohio — 1.1% |
||||||||
| County of Allen Ohio, Refunding RB, Catholic Healthcare Partners, Series A, 5.00%, 5/01/42 |
2,875 | 3,189,353 | ||||||
| County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/37 |
610 | 764,098 | ||||||
| Kent State University, RB, General Receipts, Series A, 5.00%, 5/01/37 |
470 | 533,182 | ||||||
|
|
|
|||||||
| 4,486,633 | ||||||||
| Pennsylvania — 0.2% |
||||||||
| Pennsylvania Turnpike Commission, RB, Subordinate, Special Motor, License Fund, 6.00%, 12/01/36 |
625 | 768,469 | ||||||
| Puerto Rico — 3.2% |
||||||||
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A: |
||||||||
| 6.38%, 8/01/39 |
5,300 | 5,977,976 | ||||||
| 5.50%, 8/01/42 |
3,450 | 3,672,180 | ||||||
| Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Senior Series C, 5.55%, 8/01/39 (c) |
17,625 | 4,148,396 | ||||||
|
|
|
|||||||
| 13,798,552 | ||||||||
| South Carolina — 1.4% |
||||||||
| South Carolina Jobs-EDA, Refunding RB, Palmetto Health, Series A (AGM), 6.50%, 8/01/39 |
260 | 317,754 | ||||||
| South Carolina State Ports Authority, RB, 5.25%, 7/01/40 |
5,000 | 5,627,400 | ||||||
|
|
|
|||||||
| 5,945,154 | ||||||||
| Tennessee — 0.3% |
||||||||
| Memphis Center City Revenue Finance Corp., RB, Sub-Pyramid & Pinch District, Series B (AGM), 5.25%, 11/01/30 |
1,240 | 1,452,697 | ||||||
| Texas — 25.4% |
||||||||
| City of San Antonio Texas, Refunding RB (NPFGC): |
||||||||
| 5.13%, 5/15/29 |
9,250 | 9,730,167 | ||||||
| 5.13%, 5/15/34 |
10,000 | 10,519,100 | ||||||
| Comal ISD Texas, GO, School Building (PSF-GTD), 5.00%, 2/01/36 |
2,500 | 2,771,325 | ||||||
| Coppell ISD Texas, GO, Refunding, CAB (PSF-GTD), 3.04%, 8/15/30 (c) |
10,030 | 5,922,013 | ||||||
| County of Bexar Texas, Refunding RB, Tax-Exempt Venue Project, Combined Venue, 5.00%, 8/15/39 |
1,670 | 1,856,088 | ||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 35 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Texas (concluded) |
||||||||
| County of Harris Texas, GO, Refunding (NPFGC) (c): |
||||||||
| 2.49%, 8/15/25 |
$ | 7,485 | $ | 5,499,155 | ||||
| 2.88%, 8/15/28 |
10,915 | 7,014,306 | ||||||
| Harris County-Houston Sports Authority, Refunding RB (NPFGC) (c): |
||||||||
| CAB, Junior Lien, Series H, 5.97%, 11/15/38 |
5,785 | 1,274,088 | ||||||
| CAB, Junior Lien, Series H, 5.99%, 11/15/39 |
6,160 | 1,274,442 | ||||||
| Third Lien, Series A-3, 5.93%, 11/15/38 |
16,890 | 3,762,923 | ||||||
| Mansfield ISD Texas, GO, School Building |
2,980 | 3,388,916 | ||||||
| Midland County Fresh Water Supply District No. 1, Refunding RB, CAB, City of Midland Project, Series A, 4.49%, 9/15/36 (c) |
2,340 | 823,423 | ||||||
| North Texas Tollway Authority, Refunding RB, First Tier, Series A: |
||||||||
| 6.00%, 1/01/28 |
625 | 739,456 | ||||||
| (NPFGC), 5.75%, 1/01/40 |
23,050 | 26,581,721 | ||||||
| Northside ISD, GO, School Building (PSF-GTD), 5.13%, 6/15/29 |
9,500 | 10,026,110 | ||||||
| San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project, |
2,575 | 2,619,187 | ||||||
| Texas Municipal Gas Acquisition & Supply Corp. III, Gas Supply RB: |
||||||||
| 5.00%, 12/15/28 |
3,600 | 3,950,604 | ||||||
| 5.00%, 12/15/29 |
2,105 | 2,300,997 | ||||||
| Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, First Tier, Series A: |
||||||||
| 4.00%, 8/15/38 |
2,750 | 2,754,263 | ||||||
| 5.00%, 8/15/41 |
5,500 | 6,034,215 | ||||||
|
|
|
|||||||
| 108,842,499 | ||||||||
| Washington — 2.5% |
||||||||
| County of King Washington, Refunding RB (AGM), 5.00%, 1/01/36 |
2,200 | 2,421,782 | ||||||
| Washington Health Care Facilities Authority, RB: |
||||||||
| MultiCare Health Care, Series C (AGC), 5.50%, 8/15/43 |
4,000 | 4,380,080 | ||||||
| MultiCare Health System, Series A, 5.00%, 8/15/44 |
1,560 | 1,721,975 | ||||||
| Providence Health & Services, Series A, 5.00%, 10/01/39 |
500 | 543,125 | ||||||
| Providence Health & Services, Series A, 5.25%, 10/01/39 |
675 | 749,486 | ||||||
| Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series A, 5.00%, 10/01/42 |
940 | 1,052,387 | ||||||
|
|
|
|||||||
| 10,868,835 | ||||||||
| Wisconsin — 0.5% |
||||||||
| Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Senior Credit Group, 5.00%, 11/15/33 |
1,500 | 1,705,245 | ||||||
| Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc., Series A, 5.00%, 4/01/42 |
525 | 590,042 | ||||||
|
|
|
|||||||
| 2,295,287 | ||||||||
| Total Municipal Bonds – 101.4% | 434,171,422 | |||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (f) |
Par (000) |
Value | ||||||
| Arizona — 1.9% |
||||||||
| Phoenix Arizona Civic Improvement Corp., RB, Junior Lien, Series A, 5.00%, 7/01/34 |
$ | 1,300 | $ | 1,512,004 | ||||
| Phoenix Civic Improvement Corp., RB, Sub-Civic Plaza Expansion Project, Series A (NPFGC), 5.00%, 7/01/37 |
4,490 | 4,824,864 | ||||||
| Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/38 |
1,500 | 1,708,125 | ||||||
|
|
|
|||||||
| 8,044,993 | ||||||||
| California — 10.0% |
||||||||
| California State University, RB, Systemwide, Series A (AGM), 5.00%, 11/01/33 (g) |
3,379 | 3,769,293 | ||||||
| California State University, Refunding RB, Systemwide, Series A (AGM), 5.00%, 11/01/32 |
8,000 | 8,981,760 | ||||||
| Foothill-De Anza Community College District, GO, Election of 1999, Series C (NPFGC), 5.00%, 8/01/36 |
7,500 | 8,176,800 | ||||||
| Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32 |
5,000 | 5,672,550 | ||||||
| San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33 |
449 | 545,558 | ||||||
| San Diego County Water Authority, COP, Refunding, Series 2008-A (AGM), 5.00%, 5/01/33 |
4,870 | 5,525,064 | ||||||
| University of California, RB, Series C (NPFGC), 4.75%, 5/15/37 |
10,000 | 10,169,900 | ||||||
|
|
|
|||||||
| 42,840,925 | ||||||||
| District of Columbia — 0.3% |
||||||||
| District of Columbia, RB, Series A, |
1,080 | 1,313,136 | ||||||
| Florida — 9.7% |
||||||||
| City of Tallahassee Florida, RB (NPFGC): |
||||||||
| 5.00%, 10/01/32 (g) |
3,000 | 3,369,750 | ||||||
| 5.00%, 10/01/37 |
5,000 | 5,495,650 | ||||||
| County of Miami-Dade Florida, RB (AGM), |
10,101 | 11,288,876 | ||||||
| County of Miami-Dade Florida, Refunding RB, Sales Surtax, 5.00%, 7/01/42 |
1,950 | 2,191,195 | ||||||
| Florida State Board of Education, GO, Series D, 5.00%, 6/01/37 (g) |
2,999 | 3,429,105 | ||||||
| Highlands County Health Facilities Authority, RB, Adventist, Series C, 5.25%, 11/15/36 (e) |
1,800 | 1,992,654 | ||||||
| Orange County School Board, COP, Series A: |
||||||||
| (AGC), 5.50%, 8/01/34 |
6,096 | 7,031,354 | ||||||
| (NPFGC), 5.00%, 8/01/30 |
6,000 | 6,683,160 | ||||||
|
|
|
|||||||
| 41,481,744 | ||||||||
| Hawaii — 2.5% |
||||||||
| Honolulu City & County Board of Water Supply, RB, Series A (NPFGC), 5.00%, 7/01/14 (a) |
10,000 | 10,633,000 | ||||||
| Illinois — 11.2% |
||||||||
| City of Chicago Illinois, Refunding RB, Sale Tax Revenue, Series A, 5.00%, 1/01/41 |
3,870 | 4,317,333 | ||||||
| City of Chicago Illinois Motor Fuel Tax, RB, Project, Series A (AGC), 5.00%, 1/01/38 |
8,310 | 8,822,312 | ||||||
| Illinois Finance Authority, RB, Carle Foundation, Series A (AGM), 6.00%, 8/15/41 |
2,400 | 2,832,360 | ||||||
| Illinois State Toll Highway Authority, RB, Series B, |
4,499 | 5,137,544 | ||||||
| Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.00%, 6/15/42 |
14,294 | 16,030,729 | ||||||
| Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project, Series B, |
9,000 | 9,369,450 | ||||||
See Notes to Financial Statements.
| 36 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets) |
| Municipal Bonds Transferred to Tender Option Bond Trusts (f) |
Par (000) |
Value | ||||||
| Illinois (concluded) |
||||||||
| State of Illinois, RB, Build Illinois, Series B, |
$ | 1,400 | $ | 1,598,820 | ||||
|
|
|
|||||||
| 48,108,548 | ||||||||
| Massachusetts — 3.3% |
||||||||
| Massachusetts School Building Authority, Sales Tax RB, Series A (AGM): |
||||||||
| 5.00%, 8/15/15 (a) |
1,674 | 1,841,644 | ||||||
| 5.00%, 8/15/30 |
11,314 | 12,449,456 | ||||||
|
|
|
|||||||
| 14,291,100 | ||||||||
| Michigan — 1.9% |
||||||||
| Michigan Finance Authority, Refunding RB, Trinity Health, 5.00%, 12/01/39 |
7,300 | 8,096,211 | ||||||
| Nevada — 1.7% |
||||||||
| City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/39 (g) |
4,197 | 4,886,389 | ||||||
| Clark County Water Reclamation District, GO, |
2,024 | 2,494,068 | ||||||
|
|
|
|||||||
| 7,380,457 | ||||||||
| New Jersey — 0.5% |
||||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, |
2,000 | 2,284,080 | ||||||
| New York — 6.0% |
||||||||
| The Erie County Industrial Development Agency, RB, City School District of Buffalo Project, Series A (AGM), 5.75%, 5/01/28 |
4,494 | 5,233,101 | ||||||
| Metropolitan Transportation Authority, RB, Series A (NPFGC), 5.00%, 11/15/31 |
7,002 | 7,902,013 | ||||||
| New York City Municipal Water Finance Authority, Refunding RB, Second General Resolution, Series CC, 5.00%, 6/15/47 |
6,240 | 7,076,597 | ||||||
| Triborough Bridge & Tunnel Authority, RB, General, Series A-2, 5.25%, 11/15/34 (g) |
4,500 | 5,331,240 | ||||||
|
|
|
|||||||
| 25,542,951 | ||||||||
| Ohio — 0.2% |
||||||||
| State of Ohio, RB, Cleveland Clinic Health, Series B, 5.50%, 1/01/34 |
620 | 708,530 | ||||||
| Puerto Rico — 1.3% |
||||||||
| Puerto Rico Sales Tax Financing Corp., Sales Tax, Refunding RB, Series C, 5.25%, 8/01/40 |
5,080 | 5,545,481 | ||||||
| South Carolina — 0.2% |
||||||||
| South Carolina State Public Service Authority, Refunding RB, Santee Cooper, Series A, 5.50%, 1/01/38 (g) |
600 | 696,540 | ||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (f) |
Par (000) |
Value | ||||||
| Texas — 1.5% |
||||||||
| City of Houston Texas Airport System, Refunding RB, Senior Lien, Series A, 5.50%, 7/01/34 |
$ | 4,167 | $ | 4,849,072 | ||||
| North East ISD Texas, GO, School Building, Series A (PSF-GTD), 5.00%, 8/01/37 (g) |
1,500 | 1,724,490 | ||||||
|
|
|
|||||||
| 6,573,562 | ||||||||
| Utah — 1.3% |
||||||||
| Utah Transit Authority, RB, Series A (AGM), 5.00%, 6/15/36 |
5,000 | 5,744,600 | ||||||
| Virginia — 0.1% |
||||||||
| Fairfax County IDA Virginia, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35 |
400 | 459,894 | ||||||
| Washington — 0.9% |
||||||||
| Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32 |
3,494 | 3,975,523 | ||||||
| Wisconsin — 0.7% |
||||||||
| Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc., Series C, 5.25%, 4/01/39 |
2,500 | 2,768,425 | ||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 55.2% |
236,489,700 | |||||||
| Total Long-Term Investments (Cost — $607,390,910) — 156.6% |
670,661,122 | |||||||
| Short-Term Securities | Shares | |||||||
| Money Market Funds — 2.0% |
||||||||
| FFI Institutional Tax-Exempt Fund, 0.01% (h)(i) |
8,659,864 | 8,659,864 | ||||||
| Par (000) |
||||||||
| New York — 0.4% |
||||||||
| City of New York, New York, GO, VRDN, |
1,700 | 1,700,000 | ||||||
| Total Short-Term Securities (Cost — $10,359,864) — 2.4% |
|
10,359,864 | ||||||
| Total Investments (Cost — $617,750,774) — 159.0% | 681,020,986 | |||||||
| Other Assets Less Liabilities — 0.4% |
|
1,822,543 | ||||||
| Liability for TOB Trust Certificates, Including Interest |
|
(117,419,839 | ) | |||||
| VMTP Shares, at Liquidation Value — (32.0)% | (137,200,000 | ) | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% | $ | 428,223,690 | ||||||
|
|
|
|||||||
| Notes to Schedule of investments |
| (a) | US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (b) | Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date. |
| (c) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
| (d) | When-issued security. Unsettled when-issued transactions were as follows: |
| Counterparty | Value |
Unrealized Appreciation |
||||||
| Morgan Stanley | $ | 1,410,131 | $ | 18,983 | ||||
| (e) | Variable rate security. Rate shown is as of report date. |
| (f) | Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 37 |
Table of Contents
| Schedule of Investments (concluded) |
BlackRock Municipal Income Quality Trust (BYM) |
| (g) | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $16,804,179. |
| (h) | Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
| Affiliate | Shares Held at August 31, 2012 |
Net Activity |
Share Held at February 28, 2013 |
Income | ||||||||||||
| FFI Institutional Tax-Exempt Fund |
4,404,456 | 4,255,408 | 8,659,864 | $ | 412 | |||||||||||
| (i) | Represents the current yield as of report date. |
| (j) | Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand. |
| Ÿ | Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
| Ÿ | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access |
| Ÿ | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
| Ÿ | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of February 28, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Assets: |
||||||||||||||||||||
| Investments: | ||||||||||||||||||||
| Long-Term Investments1 |
— | $ | 670,661,122 | — | $ | 670,661,122 | ||||||||||||||
| Short-Term Securities |
$ | 8,659,864 | 1,700,000 | — | 10,359,864 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 8,659,864 | $ | 672,361,122 | — | $ | 681,020,986 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
1 See above Schedule of Investments for values in each state or political subdivision. |
| |||||||||||||||||||
|
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
|
| |||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Liabilities: |
||||||||||||||||||||
| TOB trust certificates |
— | $ | (117,377,482 | ) | — | $ | (117,377,482 | ) | ||||||||||||
| VMTP Shares |
— | (137,200,000 | ) | — | (137,200,000 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
— | $ | (254,577,482 | ) | — | $ | (254,577,482 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
There were no transfers between levels during the six months ended February 28, 2013.
See Notes to Financial Statements.
| 38 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments February 28, 2013 (Unaudited) |
BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Alabama — 0.4% |
||||||||
| County of Jefferson Alabama, RB, |
$ | 1,620 | $ | 1,619,077 | ||||
| Arizona — 1.7% |
||||||||
| Salt Verde Financial Corp., RB, Senior, |
5,635 | 6,525,668 | ||||||
| California — 9.6% |
||||||||
| ABAG Finance Authority for Nonprofit Corps., Refunding RB, Odd Fellows Home of California, Series A, |
1,000 | 1,096,260 | ||||||
| Bay Area Toll Authority, Refunding RB, San Francisco Bay Area Toll Bridge, Series F-1, 5.63%, 4/01/44 |
2,480 | 2,866,805 | ||||||
| California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, |
9,710 | 102,829 | ||||||
| California Health Facilities Financing Authority, RB: |
||||||||
| Stanford Hospital Clinics, Series A, 5.00%, 8/15/51 |
1,290 | 1,438,131 | ||||||
| Sutter Health, Series B, 6.00%, 8/15/42 |
3,500 | 4,286,205 | ||||||
| California HFA, RB, Series K, AMT Home Mortgage, 5.50%, 2/01/42 |
1,365 | 1,413,840 | ||||||
| California Pollution Control Financing Authority, RB: |
||||||||
| 5.00%, 11/21/45 |
1,340 | 1,382,063 | ||||||
| Poseidon Resources (Channel Side) LP Desalination, AMT, 5.00%, 7/01/37 |
1,120 | 1,166,603 | ||||||
| Poseidon Resources (Channel Side) LP Desalination, AMT, 5.00%, 11/21/45 |
2,795 | 2,889,695 | ||||||
| California State Public Works Board, RB, Various Capital Project, Sub-Series I-1, |
1,280 | 1,575,168 | ||||||
| City of Los Angeles Department of Airports, Refunding RB, Series A, 5.25%, 5/15/39 |
860 | 973,081 | ||||||
| San Marcos Unified School District, GO, CAB, SAN, Election of 2010, Series B (a): |
||||||||
| 4.53%, 8/01/33 |
3,000 | 1,201,620 | ||||||
| 4.87%, 8/01/43 |
2,500 | 578,300 | ||||||
| State of California, GO, Various Purpose: |
||||||||
| 6.00%, 3/01/33 |
1,760 | 2,183,139 | ||||||
| 6.50%, 4/01/33 |
10,670 | 13,375,805 | ||||||
|
|
|
|||||||
| 36,529,544 | ||||||||
| Colorado — 2.0% |
||||||||
| Colorado Health Facilities Authority, Refunding RB: |
||||||||
| Catholic Healthcare, Series A, 5.50%, 7/01/34 |
2,330 | 2,659,672 | ||||||
| Evangelical Lutheran Good Samaritan Society Project, 5.00%, 12/01/42 |
1,920 | 2,059,545 | ||||||
| Colorado State Board of Governors, Refunding RB, Series A, 5.00%, 3/01/43 (b) |
1,280 | 1,604,416 | ||||||
| Park Creek Metropolitan District Colorado, Refunding RB, Senior, Limited Tax, Property Tax, 5.50%, 12/01/37 |
1,375 | 1,449,456 | ||||||
|
|
|
|||||||
| 7,773,089 | ||||||||
| Connecticut — 0.4% |
||||||||
| Connecticut State Health & Educational Facility Authority, RB, Ascension Health Senior Credit, 5.00%, 11/15/40 |
1,505 | 1,679,791 | ||||||
| Delaware — 1.6% |
||||||||
| County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40 |
1,240 | 1,399,079 | ||||||
| Delaware State EDA, RB, Exempt Facilities, Indian River Power, 5.38%, 10/01/45 |
4,430 | 4,732,525 | ||||||
|
|
|
|||||||
| 6,131,604 | ||||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| District of Columbia — 4.9% |
||||||||
| District of Columbia Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed: |
||||||||
| 6.50%, 5/15/33 |
$ | 3,250 | $ | 3,819,465 | ||||
| 6.75%, 5/15/40 |
11,500 | 11,959,770 | ||||||
| Metropolitan Washington Airports Authority, Refunding RB, First Senior Lien, Series A: |
||||||||
| 5.00%, 10/01/39 |
550 | 604,626 | ||||||
| 5.25%, 10/01/44 |
2,000 | 2,214,300 | ||||||
|
|
|
|||||||
| 18,598,161 | ||||||||
| Florida — 6.2% |
||||||||
| City of Leesburg Florida, RB, Leesburg Regional Medical Center Project, 5.50%, 7/01/32 |
1,000 | 1,000,980 | ||||||
| County of Miami-Dade Florida, RB, Miami International Airport, Series A, AMT (AGC), 5.25%, 10/01/38 |
2,855 | 3,220,611 | ||||||
| County of Miami-Dade Florida, Refunding RB, Miami International Airport, Series A-1, 5.38%, 10/01/41 |
1,255 | 1,426,320 | ||||||
| Jacksonville Florida Port Authority, Refunding RB, AMT, 5.00%, 11/01/38 |
1,665 | 1,805,742 | ||||||
| Live Oak Community Development District No. 1, Special Assessment Bonds, Series A, 6.30%, 5/01/34 |
3,030 | 3,072,632 | ||||||
| Miami Beach Health Facilities Authority, RB, Mount Sinai Medical Center of Florida, 6.75%, 11/15/21 |
3,365 | 3,658,462 | ||||||
| Mid-Bay Bridge Authority, RB, Series A, 7.25%, 10/01/40 |
2,500 | 3,186,100 | ||||||
| Stevens Plantation Community Development District, Special Assessment Bonds, Series A, 7.10%, 5/01/35 (c)(d) |
1,895 | 1,421,970 | ||||||
| Tampa-Hillsborough County Expressway Authority, Refunding RB: |
||||||||
| Series A, 5.00%, 7/01/37 |
1,495 | 1,685,000 | ||||||
| Series B, 5.00%, 7/01/42 |
2,735 | 3,047,829 | ||||||
|
|
|
|||||||
| 23,525,646 | ||||||||
| Georgia — 0.3% |
||||||||
| DeKalb Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39 |
915 | 1,019,283 | ||||||
| Hawaii — 0.5% |
||||||||
| State of Hawaii, RB, Series A, 5.25%, 7/01/30 |
1,480 | 1,726,553 | ||||||
| Illinois — 13.9% |
||||||||
| Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39 |
2,300 | 2,664,964 | ||||||
| Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40 |
1,150 | 1,314,599 | ||||||
| City of Chicago Illinois, ARB, O’Hare International Airport, General, Third Lien: |
||||||||
| 5.75%, 1/01/39 |
5,000 | 5,870,250 | ||||||
| 6.50%, 1/01/41 |
6,430 | 8,314,569 | ||||||
| City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/33 |
4,940 | 5,507,063 | ||||||
| City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A, 5.25%, 1/01/38 |
895 | 1,027,854 | ||||||
| Illinois Finance Authority, Refunding RB: |
||||||||
| Ascension Health, Series A, 5.00%, 11/15/37 |
1,060 | 1,201,457 | ||||||
| Ascension Health, Series A, 5.00%, 11/15/42 |
1,925 | 2,163,219 | ||||||
| Central Dupage Health, Series B, 5.50%, 11/01/39 |
1,750 | 1,978,882 | ||||||
| Friendship Village Schaumburg, Series A, 5.63%, 2/15/37 |
455 | 457,421 | ||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 39 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Illinois (concluded) |
||||||||
| Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.50%, 6/15/30 |
$ | 10,500 | $ | 11,513,145 | ||||
| Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project: |
||||||||
| Series B (AGM), 5.00%, 6/15/50 |
3,430 | 3,713,832 | ||||||
| Series B-2, 5.00%, 6/15/50 |
2,725 | 2,949,594 | ||||||
| Railsplitter Tobacco Settlement Authority, RB: |
||||||||
| 5.50%, 6/01/23 |
1,470 | 1,773,643 | ||||||
| 6.00%, 6/01/28 |
1,255 | 1,502,135 | ||||||
| State of Illinois, RB, Build Illinois, Series B, |
685 | 782,517 | ||||||
|
|
|
|||||||
| 52,735,144 | ||||||||
| Indiana — 3.6% |
||||||||
| Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A COP: |
||||||||
| 4.00%, 8/01/35 |
1,230 | 1,293,124 | ||||||
| 4.00%, 8/01/38 |
1,975 | 2,060,103 | ||||||
| Indiana Finance Authority, RB: |
||||||||
| First Lien, CWA Authority, Series A, |
1,720 | 2,004,058 | ||||||
| Sisters of St. Francis Health, 5.25%, 11/01/39 |
915 | 1,006,674 | ||||||
| Indiana Finance Authority, Refunding RB, Community Health Network, Series A, 5.00%, 5/01/42 |
2,050 | 2,268,653 | ||||||
| Indiana Health Facility Financing Authority, Refunding RB, Methodist Hospital, Inc., 5.38%, 9/15/22 |
3,675 | 3,680,953 | ||||||
| Indiana Municipal Power Agency, RB, Series B, |
1,200 | 1,436,280 | ||||||
|
|
|
|||||||
| 13,749,845 | ||||||||
| Iowa — 1.0% |
||||||||
| Iowa Finance Authority, RB, Alcoa, Inc. Project, 4.75%, 8/01/42 |
1,255 | 1,273,059 | ||||||
| Iowa Student Loan Liquidity Corp., Refunding RB, Series A-1, AMT, 5.15%, 12/01/22 |
2,140 | 2,457,298 | ||||||
|
|
|
|||||||
| 3,730,357 | ||||||||
| Kansas — 0.5% |
||||||||
| Kansas Development Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 5.00%, 1/01/40 |
1,755 | 1,910,510 | ||||||
| Kentucky — 0.4% |
||||||||
| Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40 |
1,105 | 1,328,188 | ||||||
| Louisiana — 3.3% |
||||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35 |
3,650 | 4,311,161 | ||||||
| Louisiana Stadium & Exposition District, Refunding RB, Senior, Series A, 5.00%, 7/01/36 |
380 | 432,622 | ||||||
| Parish of St. John the Baptist Louisiana, RB, Marathon Oil Corp., Series A, 5.13%, 6/01/37 |
7,290 | 7,784,262 | ||||||
|
|
|
|||||||
| 12,528,045 | ||||||||
| Maine — 0.5% |
||||||||
| Maine State Turnpike Authority, RB, Series A, |
1,615 | 1,850,871 | ||||||
| Maryland — 1.2% |
||||||||
| Maryland EDC, RB, Transportation Facilities Project, Series A, 5.75%, 6/01/35 |
475 | 540,996 | ||||||
| Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25 |
1,000 | 1,114,590 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Maryland (concluded) |
||||||||
| Maryland Health & Higher Educational Facilities Authority, Refunding RB, Charlestown Community, |
$ | 2,400 | $ | 2,742,888 | ||||
|
|
|
|||||||
| 4,398,474 | ||||||||
| Massachusetts — 0.3% |
||||||||
| Massachusetts Health & Educational Facilities Authority, Refunding RB, Partners Healthcare, Series J1, 5.00%, 7/01/39 |
955 | 1,041,466 | ||||||
| Michigan — 2.0% |
||||||||
| City of Detroit Michigan, RB, Water Supply System, Series A, Senior Lien, 5.25%, 7/01/41 |
3,355 | 3,622,595 | ||||||
| Kalamazoo Hospital Finance Authority, Refunding RB, Bronson Methodist Hospital, 5.50%, 5/15/36 |
1,500 | 1,669,485 | ||||||
| Michigan State Hospital Finance Authority, Refunding RB, Henry Ford Health System, Series A, |
2,305 | 2,441,410 | ||||||
|
|
|
|||||||
| 7,733,490 | ||||||||
| Missouri — 1.9% |
||||||||
| 370/Missouri Bottom Road/Taussig Road Transportation Development District, RB, |
6,000 | 6,011,400 | ||||||
| Missouri State Health & Educational Facilities Authority, RB, Senior Living Facilities, Lutheran Senior Home, 5.50%, 2/01/42 |
1,135 | 1,215,086 | ||||||
|
|
|
|||||||
| 7,226,486 | ||||||||
| Multi-State — 3.8% |
||||||||
| Centerline Equity Issuer Trust (e)(f): |
||||||||
| 5.75%, 5/15/15 |
1,000 | 1,086,450 | ||||||
| 6.00%, 5/15/15 |
5,000 | 5,456,050 | ||||||
| 6.00%, 5/15/19 |
3,500 | 4,156,985 | ||||||
| 6.30%, 5/15/19 |
3,000 | 3,608,490 | ||||||
|
|
|
|||||||
| 14,307,975 | ||||||||
| Nebraska — 1.6% |
||||||||
| Central Plains Energy Project Nebraska, RB: |
||||||||
| 5.25%, 9/01/37 |
895 | 1,013,042 | ||||||
| Gas Project No. 3, 5.00%, 9/01/42 |
1,570 | 1,713,953 | ||||||
| Lancaster County Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, 5.63%, 1/01/40 |
1,245 | 1,397,425 | ||||||
| Sarpy County Hospital Authority No. 1, Refunding RB, Immanuel Obligation Group, 5.63%, 1/01/40 |
1,635 | 1,805,939 | ||||||
|
|
|
|||||||
| 5,930,359 | ||||||||
| Nevada — 0.7% |
||||||||
| County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29 |
2,465 | 2,706,299 | ||||||
| New Jersey — 4.4% |
||||||||
| New Jersey EDA, RB, Continental Airlines Inc. Project, AMT, 6.25%, 9/15/29 |
2,130 | 2,164,889 | ||||||
| New Jersey EDA, Refunding RB: |
||||||||
| Cigarette Tax, 5.00%, 6/15/24 |
455 | 528,296 | ||||||
| Cigarette Tax, 5.00%, 6/15/25 |
610 | 701,482 | ||||||
| Special Assessment Bonds, Kapkowski Road Landfill Project, 6.50%, 4/01/28 |
7,475 | 8,953,331 | ||||||
| New Jersey Transportation Trust Fund Authority, RB, Series A, 5.00%, 6/15/42 |
4,000 | 4,435,600 | ||||||
|
|
|
|||||||
| 16,783,598 | ||||||||
See Notes to Financial Statements.
| 40 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| New York — 4.3% |
||||||||
| Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, |
$ | 985 | $ | 147,681 | ||||
| Metropolitan Transportation Authority, RB, Series E, 5.00%, 11/15/42 |
585 | 655,680 | ||||||
| Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.25%, 11/15/40 |
1,325 | 1,495,779 | ||||||
| New York City Industrial Development Agency, RB, American Airlines, Inc., JFK International Airport, AMT, |
6,700 | 7,619,307 | ||||||
| New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49 |
1,335 | 1,587,595 | ||||||
| New York State Thruway Authority, Refunding RB, General, Series I, 5.00%, 1/01/42 |
1,500 | 1,681,890 | ||||||
| Port Authority of New York & New Jersey, RB, JFK International Air Terminal: |
||||||||
| 6.00%, 12/01/36 |
1,410 | 1,670,751 | ||||||
| 6.00%, 12/01/42 |
1,375 | 1,629,279 | ||||||
|
|
|
|||||||
| 16,487,962 | ||||||||
| North Carolina — 4.5% |
||||||||
| Gaston County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, Exempt Facilities National Gypsum Co. Project, AMT, 5.75%, 8/01/35 |
6,500 | 6,014,710 | ||||||
| North Carolina Capital Facilities Finance Agency, Refunding RB, Duke Energy Carolinas Project, Series B, |
8,930 | 9,594,392 | ||||||
| North Carolina Medical Care Commission, RB, Duke University Health System, Series A, |
1,525 | 1,696,212 | ||||||
|
|
|
|||||||
| 17,305,314 | ||||||||
| Ohio — 2.3% |
||||||||
| County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38 |
3,405 | 3,806,995 | ||||||
| County of Hamilton Ohio, RB, Christ Hospital Project, 5.00%, 6/01/42 |
1,640 | 1,764,443 | ||||||
| County of Montgomery Ohio, Refunding RB, Catholic Healthcare, Series A, 5.00%, 5/01/39 |
3,025 | 3,257,471 | ||||||
|
|
|
|||||||
| 8,828,909 | ||||||||
| Oregon — 0.1% |
||||||||
| City of Tigard Washington County Oregon, Refunding RB, Water System, 5.00%, 8/01/37 |
275 | 317,900 | ||||||
| Pennsylvania — 1.6% |
||||||||
| Allegheny County Hospital Development Authority, Refunding RB, Health System, West Penn, Series A, |
1,495 | 1,270,705 | ||||||
| Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A, 5.00%, 5/01/42 |
2,500 | 2,674,425 | ||||||
| Pennsylvania Economic Development Financing Authority, RB, Aqua Pennsylvania, Inc. Project, 5.00%, 11/15/40 |
2,065 | 2,301,071 | ||||||
|
|
|
|||||||
| 6,246,201 | ||||||||
| Puerto Rico — 5.2% |
||||||||
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.50%, 8/01/44 |
6,100 | 6,941,495 | ||||||
| Puerto Rico Sales Tax Financing Corp., RB, CAB, Series A (a): |
||||||||
| 5.69%, 8/01/33 |
13,600 | 4,323,712 | ||||||
| 5.74%, 8/01/34 |
5,500 | 1,636,030 | ||||||
| 5.79%, 8/01/35 |
14,055 | 3,908,836 | ||||||
| 5.82%, 8/01/36 |
11,875 | 3,097,356 | ||||||
|
|
|
|||||||
| 19,907,429 | ||||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| South Carolina — 1.8% |
||||||||
| South Carolina Jobs EDA, Refunding RB, Palmetto Health Alliance, Series A, 6.25%, 8/01/31 |
$ | 2,640 | $ | 2,704,574 | ||||
| South Carolina State Ports Authority, RB, |
3,595 | 4,046,101 | ||||||
|
|
|
|||||||
| 6,750,675 | ||||||||
| South Dakota — 0.3% |
||||||||
| South Dakota Health and Educational Facilities Authority, RB, Series E, 5.00%, 11/01/42 |
1,165 | 1,275,256 | ||||||
| Tennessee — 0.9% |
||||||||
| Metropolitan Government Nashville & Davidson County Health & Education Facilities Board, Refunding RB, Vanderbilt University, Series D, 3.25%, 10/01/37 |
3,480 | 3,335,023 | ||||||
| Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47 |
230 | 259,390 | ||||||
|
|
|
|||||||
| 3,594,413 | ||||||||
| Texas — 20.4% |
||||||||
| Brazos River Authority, RB, TXU Electric, Series A, AMT, 8.25%, 10/01/30 |
2,400 | 252,360 | ||||||
| Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.25%, 1/01/46 |
2,350 | 2,765,010 | ||||||
| City of Austin Texas, Refunding RB, Water & Wastewater System Revenue, 5.00%, 11/15/37 |
685 | 800,299 | ||||||
| City of Dallas Texas, Refunding RB, 5.00%, 10/01/35 |
1,650 | 1,895,454 | ||||||
| City of Houston Texas, Refunding RB: |
||||||||
| Combined, First Lien, Series A (AGC), |
9,145 | 11,134,861 | ||||||
| Series A, Senior Lien, 5.50%, 7/01/39 |
1,675 | 1,949,332 | ||||||
| Clifton Higher Education Finance Corp., RB, Idea Public Schools, 5.00%, 8/15/32 |
640 | 706,451 | ||||||
| Dallas/Fort Worth International Airport, Refunding RB, Series E, AMT, 5.00%, 11/01/35 |
3,750 | 4,107,037 | ||||||
| Fort Bend County Industrial Development Corp., RB, NRG Energy Inc. Project: |
||||||||
| Series A, 4.75%, 5/01/38 |
1,900 | 1,957,874 | ||||||
| Series B, 4.75%, 11/01/42 |
1,605 | 1,647,500 | ||||||
| Gulf Coast Waste Disposal Authority, Refunding RB, Series A, AMT, 6.10%, 8/01/24 |
5,000 | 5,019,100 | ||||||
| Harris County-Houston Sports Authority, Refunding RB, Third Lien, Series A-3 (NPFGC), |
25,375 | 6,375,469 | ||||||
| Lower Colorado River Authority, Refunding RB, Series A (NPFGC), 5.00%, 5/15/13 (h) |
5 | 5,052 | ||||||
| Midland County Fresh Water Supply District Number 1, RB, Midland Projects, Series A: |
||||||||
| CAB, 4.57%, 9/15/37 (a) |
17,105 | 5,637,637 | ||||||
| 5.00%, 9/15/40 |
890 | 1,019,308 | ||||||
| North Texas Tollway Authority, Refunding RB, Toll Second Tier, Series F, 6.13%, 1/01/31 |
6,790 | 7,531,875 | ||||||
| San Antonio Energy Acquisition Public Facility Corp., RB, Gas Supply, 5.50%, 8/01/24 |
3,600 | 4,295,016 | ||||||
| Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, |
4,410 | 5,328,118 | ||||||
| Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare, |
390 | 434,012 | ||||||
| Texas Municipal Gas Acquisition & Supply Corp. III, Gas Supply RB, 5.00%, 12/15/29 |
2,055 | 2,246,341 | ||||||
| Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien: |
||||||||
| LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40 |
3,000 | 3,639,570 | ||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 41 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Texas (concluded) |
||||||||
| NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 |
$ | 3,000 | $ | 3,578,700 | ||||
| Texas Transportation Commission, Refunding RB, First Tier, Series A, 5.00%, 8/15/41 |
1,310 | 1,437,240 | ||||||
| University of Texas System, Refunding RB, Financing System Bonds, Series B, 5.00%, 8/15/43 |
3,350 | 3,916,485 | ||||||
|
|
|
|||||||
| 77,680,101 | ||||||||
| Utah — 1.3% |
||||||||
| County of Utah, RB, IHC Health Services Inc., |
2,190 | 2,470,977 | ||||||
| Utah State Charter School Finance Authority, RB, Ogden Preparatory Academy: |
||||||||
| 3.25%, 10/15/36 |
1,085 | 1,007,042 | ||||||
| 3.25%, 10/15/42 |
1,660 | 1,489,983 | ||||||
|
|
|
|||||||
| 4,968,002 | ||||||||
| Virginia — 2.2% |
||||||||
| City of Norfolk Virginia, Refunding RB, Series B (AMBAC), 5.50%, 2/01/31 |
1,240 | 1,241,612 | ||||||
| Route 460 Funding Corp. of Virginia Toll Road, RB, Senior Lien, Series A, 5.13%, 7/01/49 |
1,340 | 1,461,243 | ||||||
| Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings Opco LLC Project, AMT: |
||||||||
| 5.25%, 1/01/32 |
1,755 | 1,947,611 | ||||||
| 6.00%, 1/01/37 |
2,000 | 2,319,280 | ||||||
| 5.50%, 1/01/42 |
1,255 | 1,386,047 | ||||||
|
|
|
|||||||
| 8,355,793 | ||||||||
| Washington — 1.8% |
||||||||
| Bellingham Washington, Water & Sewer Revenue, |
5,050 | 5,804,975 | ||||||
| Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series A, |
1,100 | 1,231,516 | ||||||
|
|
|
|||||||
| 7,036,491 | ||||||||
| Wisconsin — 2.0% |
||||||||
| University of Wisconsin Hospitals & Clinics Authority, Refunding RB, Series A, |
575 | 643,109 | ||||||
| Wisconsin Health & Educational Facilities Authority, RB: |
||||||||
| Ascension Health Senior Credit Group, 5.00%, 11/15/30 |
1,790 | 2,070,028 | ||||||
| Ascension Health Senior Credit Group, 5.00%, 11/15/33 |
910 | 1,034,515 | ||||||
| Aurora Health Care, 6.40%, 4/15/33 |
3,930 | 3,945,602 | ||||||
|
|
|
|||||||
| 7,693,254 | ||||||||
| Wyoming — 1.5% |
||||||||
| County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, 5.25%, 7/15/26 |
3,355 | 3,811,381 | ||||||
| Wyoming Municipal Power Agency, RB, Series A: |
||||||||
| 5.50%, 1/01/33 |
800 | 913,480 | ||||||
| 5.50%, 1/01/38 |
750 | 856,387 | ||||||
|
|
|
|||||||
| 5,581,248 | ||||||||
| Total Municipal Bonds – 116.9% | 445,118,471 | |||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (i) |
Par (000) |
Value | ||||||
| Alabama — 0.7% |
||||||||
| Alabama Special Care Facilities Financing Authority-Birmingham, Refunding RB, Ascension Health Senior Credit Group, Series C-2, 5.00%, 11/15/36 |
$ | 2,519 | $ | 2,709,014 | ||||
| Arizona — 0.8% |
||||||||
| Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/38 |
2,630 | 2,994,680 | ||||||
| California — 7.2% |
||||||||
| California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/39 (j) |
2,850 | 3,340,941 | ||||||
| City of Los Angeles California Department of Airports, Refunding RB, Senior, Los Angeles International Airport, Series A, 5.00%, 5/15/40 |
6,500 | 7,337,233 | ||||||
| Los Angeles Community College District California, GO, Election of 2001, Series A (AGM), 5.00%, 8/01/32 |
2,530 | 2,870,310 | ||||||
| San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33 |
1,840 | 2,236,788 | ||||||
| San Francisco City & County Public Utilities Commission, RB, Series B, 5.00%, 11/01/39 |
10,335 | 11,689,298 | ||||||
|
|
|
|||||||
| 27,474,570 | ||||||||
| Colorado — 2.0% |
||||||||
| Colorado Health Facilities Authority, RB, Catholic Health: |
||||||||
| Series C-3 (AGC), 5.10%, 10/01/41 |
4,230 | 4,605,582 | ||||||
| Series C-7 (AGM), 5.00%, 9/01/36 |
2,710 | 2,913,521 | ||||||
|
|
|
|||||||
| 7,519,103 | ||||||||
| Connecticut — 3.1% |
||||||||
| Connecticut State Health & Educational Facility Authority, RB, Yale University: |
||||||||
| Series T-1, 4.70%, 7/01/29 |
5,170 | 5,824,470 | ||||||
| Series X-3, 4.85%, 7/01/37 |
5,143 | 5,815,290 | ||||||
|
|
|
|||||||
| 11,639,760 | ||||||||
| Florida — 1.5% |
||||||||
| County of Miami-Dade Florida, RB, 5.00%, 10/01/39 |
5,001 | 5,588,553 | ||||||
| Georgia — 1.4% |
||||||||
| Private Colleges & Universities Authority, Refunding RB, Emory University, Series C, 5.00%, 9/01/38 |
4,638 | 5,271,344 | ||||||
| Illinois — 0.9% |
||||||||
| City of Chicago Illinois, Refunding RB, 5.00%, 11/01/42 |
3,119 | 3,521,501 | ||||||
| Maryland — 1.3% |
||||||||
| Maryland Health & Higher Educational Facilities Authority, RB, Ascension Health, Series B, 5.00%, 11/15/51 |
4,560 | 5,080,444 | ||||||
| Massachusetts — 2.4% |
||||||||
| Massachusetts School Building Authority, Sales Tax RB, Senior, Series B, 5.00%, 10/15/41 |
4,950 | 5,677,402 | ||||||
| Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41 |
3,150 | 3,555,909 | ||||||
|
|
|
|||||||
| 9,233,311 | ||||||||
| Michigan — 0.9% |
||||||||
| Detroit Water and Sewerage Department, Refunding RB, Senior Lien, Series A: |
||||||||
| 5.00%, 7/01/32 |
1,700 | 1,854,883 | ||||||
| 5.25%, 7/01/39 |
1,462 | 1,599,506 | ||||||
|
|
|
|||||||
| 3,454,389 | ||||||||
See Notes to Financial Statements.
| 42 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock Municipal Income Trust II (BLE) (Percentages shown are based on Net Assets) |
| Municipal Bonds Transferred to Tender Option Bond Trusts (i) |
Par (000) |
Value | ||||||
| New Hampshire — 0.7% |
||||||||
| New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (j) |
$ | 2,219 | $ | 2,599,080 | ||||
| New Jersey — 0.8% |
||||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series
B, |
2,680 | 3,060,667 | ||||||
| New York — 13.1% |
||||||||
| Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47 |
1,750 | 2,082,597 | ||||||
| New York City Municipal Water Finance Authority, Refunding RB: |
||||||||
| Second General Resolution, Series HH, 5.00%, 6/15/31 j |
9,149 | 10,837,733 | ||||||
| Series FF-2, 5.50%, 6/15/40 |
1,710 | 2,024,371 | ||||||
| New York City Transitional Finance Authority, RB, 5.00%, 2/01/42 |
2,679 | 3,053,507 | ||||||
| New York Liberty Development Corp., RB, Liberty Revenue Bonds, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43 |
11,670 | 13,394,410 | ||||||
| New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, Liberty Revenue Bonds, 5.75%, 11/15/51 |
7,040 | 8,342,400 | ||||||
| New York State Dormitory Authority, ERB, Series F, 5.00%, 3/15/35 |
9,284 | 10,016,877 | ||||||
|
|
|
|||||||
| 49,751,895 | ||||||||
| Texas — 1.1% |
||||||||
| Harris County Texas Metropolitan Transit Authority, Refunding RB, Sales & Use Tax
Bonds, Series A, |
3,720 | 4,253,857 | ||||||
| Utah — 1.1% |
||||||||
| City of Riverton Utah Hospital, RB, IHC Health Services, Inc., 5.00%, 8/15/41 |
3,959 | 4,350,298 | ||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (i) |
Par (000) |
Value | ||||||
| Virginia — 1.8% |
||||||||
| University of Virginia, Refunding RB, General, 5.00%, 6/01/40 |
$ | 5,909 | $ | 6,820,049 | ||||
| Washington — 3.4% |
||||||||
| Central Puget Sound Regional Transit Authority, RB, Series A (AGM), 5.00%, 11/01/32 |
3,029 | 3,446,591 | ||||||
| State of Washington, GO, Various Purpose, Series E, 5.00%, 2/01/34 |
8,113 | 9,445,454 | ||||||
|
|
|
|||||||
| 12,892,045 | ||||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 44.2% |
|
168,214,560 | ||||||
| Total Long-Term Investments (Cost — $560,233,680) — 161.1% |
613,333,031 | |||||||
| Short-Term Securities | ||||||||
| Mississippi — 1.4% |
||||||||
| Mississippi Business Finance Corp., RB, VRDN, Series A, 0.09%, 3/01/13(k) |
5,100 | 5,100,000 | ||||||
| Shares | ||||||||
| Money Market Funds — 1.2% |
||||||||
| FFI Institutional Tax-Exempt Fund, 0.01% (l)(m) |
4,716,948 | 4,716,948 | ||||||
| Total Short-Term Securities (Cost — $9,816,948) — 2.6% |
9,816,948 | |||||||
| Total Investments (Cost — $570,050,628) — 163.7% | 623,149,979 | |||||||
| Other Assets Less Liabilities — 0.5% | 2,219,855 | |||||||
| Liability for TOB Trust Certificates, Including Interest |
|
(93,420,814 | ) | |||||
| VMTP Shares, at Liquidation Value — (39.7)% | (151,300,000 | ) | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% | $ | 380,649,020 | ||||||
|
|
|
|||||||
| Notes to Schedule of investments |
| (a) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
| (b) | When-issued security. Unsettled when-issued transactions were as follows: |
| Counterparty | Value | Unrealized Appreciation (Depreciation) |
||||||
| Morgan Stanley | $ | 1,604,416 | $ | 22,195 | ||||
| Goldman Sachs Group, Inc. | $ | 434,012 | $ | 3,350 | ||||
| JP Morgan Chase & Co. | $ | 643,109 | $ | (788 | ) | |||
| (c) | Issuer filed for bankruptcy and/or is in default of principal and/or interest payments. |
| (d) | Non-income producing security. |
| (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. |
| (f) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (g) | Variable rate security. Rate shown is as of report date. |
| (h) | US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (i) | Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
| (j) | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $9,477,746. |
| (k) | Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand. |
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 43 |
Table of Contents
| Schedule of Investments (concluded) |
BlackRock Municipal Income Trust II (BLE) |
| (l) | Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
| Affiliate | Shares Held at August 31, 2012 |
Net Activity |
Shares Held at February 28, 2013 |
Income | ||||||||||||
| FFI Institutional Tax-Exempt Fund |
15,208,474 | (10,491,526 | ) | 4,716,948 | $ | 467 | ||||||||||
| (m) | Represents the current yield as of report date. |
| Ÿ | Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
| Ÿ | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access |
| Ÿ | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
| Ÿ | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments based on the pricing transparency of the investment is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Notes 1 of the Notes to Financial Statements.
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of February 28, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Assets: |
||||||||||||||||||||
| Investments: | ||||||||||||||||||||
| Long-Term Investments1 |
— | $ | 613,333,031 | — | $ | 613,333,031 | ||||||||||||||
| Short-Term Securities |
$ | 4,716,948 | 5,100,000 | — | 9,816,948 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 4,716,948 | $ | 618,433,031 | — | $ | 623,149,979 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| 1 | See above Schedule of Investments for values in each state or political sub-division. |
Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Assets: |
||||||||||||||||||||
| Cash |
$ | 259,625 | — | — | $ | 259,625 | ||||||||||||||
| Liabilities: |
||||||||||||||||||||
| TOB trust certificates |
— | $ | (93,381,521 | ) | — | (93,381,521 | ) | |||||||||||||
| VMTP Shares |
— | (151,300,000 | ) | — | (151,300,000 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 259,625 | $ | (244,681,521 | ) | — | $ | (244,421,896 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
There were no transfers between levels during the six months ended February 28, 2013.
See Notes to Financial Statements.
| 44 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments February 28, 2013 (Unaudited) |
BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Alabama — 3.4% |
||||||||
| Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC): |
||||||||
| 6.13%, 6/01/34 |
$ | 4,980 | $ | 5,933,421 | ||||
| 6.00%, 6/01/39 |
10,995 | 12,938,586 | ||||||
| Selma IDB, RB, International Paper Co., Project, Series A, 5.38%, 12/01/35 |
1,745 | 1,924,770 | ||||||
|
|
|
|||||||
| 20,796,777 | ||||||||
| Arizona — 1.5% |
||||||||
| Arizona Board of Regents, Refunding RB, Series A: |
||||||||
| Arizona State University System, 5.00%, 7/01/42 |
5,000 | 5,717,250 | ||||||
| University of Arizona, 5.00%, 6/01/42 |
3,000 | 3,414,120 | ||||||
|
|
|
|||||||
| 9,131,370 | ||||||||
| California — 16.9% |
||||||||
| California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 |
8,920 | 10,529,079 | ||||||
| California Health Facilities Financing Authority, RB, Sutter Health, Series B, 6.00%, 8/15/42 |
5,370 | 6,576,263 | ||||||
| City of San Jose California, Refunding ARB, Series A-1, AMT, 5.75%, 3/01/34 |
4,450 | 5,150,741 | ||||||
| County of Sacramento California, ARB, Airport System, Senior Series A (AGC), 5.50%, 7/01/41 |
5,600 | 6,547,912 | ||||||
| Los Angeles Community College District California, GO: |
||||||||
| Election of 2001, Series A (NPFGC), 5.00%, 8/01/32 |
10,000 | 11,345,100 | ||||||
| Election of 2008, Series C, 5.25%, 8/01/39 |
3,375 | 4,081,928 | ||||||
| Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38 |
5,000 | 5,808,250 | ||||||
| Los Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/39 |
2,980 | 3,391,866 | ||||||
| Los Angeles Unified School District California, GO, Series D, 5.25%, 7/01/25 |
3,485 | 4,201,516 | ||||||
| Manteca Financing Authority California, RB, Manteca Sewer (AGC): |
||||||||
| 5.63%, 12/01/33 |
2,450 | 2,818,015 | ||||||
| 5.75%, 12/01/36 |
3,285 | 3,785,995 | ||||||
| Redondo Beach Unified School District, GO, Election of 2008, Series E, 5.50%, 8/01/34 |
4,110 | 4,893,407 | ||||||
| San Bernardino Community College District, GO, Election of 2002, Series A, 6.25%, 8/01/33 |
3,820 | 4,642,522 | ||||||
| San Diego Public Facilities Financing Authority, Refunding RB, Series B (AGC), 5.38%, 8/01/34 |
4,690 | 5,534,763 | ||||||
| State of California, GO, Various Purpose (AGC), 5.50%, 11/01/39 |
15,000 | 17,639,250 | ||||||
| State of California, GO, Refunding, Various Purpose, 5.00%, 9/01/41 |
5,345 | 5,989,019 | ||||||
|
|
|
|||||||
| 102,935,626 | ||||||||
| Colorado — 1.7% |
||||||||
| City & County of Denver Colorado, Refunding ARB, Airport System, Series B, 5.00%, 11/15/37 |
2,800 | 3,207,736 | ||||||
| Colorado Health Facilities Authority, RB, Hospital, NCMC, Inc. Project, Series B (AGM), 6.00%, 5/15/26 |
5,925 | 7,042,336 | ||||||
|
|
|
|||||||
| 10,250,072 | ||||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| District of Columbia — 0.2% |
||||||||
| District of Columbia Water & Sewer Authority, Refunding RB, Series A (NPFGC), 5.00%, 10/01/38 |
$ | 1,000 | $ | 1,138,270 | ||||
| Florida — 8.8% |
||||||||
| City of Jacksonville Florida, Refunding RB, Sales Tax Revenue, Better Jacksonville, Series A, |
3,500 | 4,082,785 | ||||||
| City of St. Augustine Florida, Refunding RB, Capital Improvement, 5.00%, 10/01/34 |
1,740 | 1,982,504 | ||||||
| County of Lee Florida, Refunding ARB, Series A, AMT, 5.38%, 10/01/32 |
4,600 | 5,167,916 | ||||||
| County of Miami-Dade Florida, Refunding RB, Series A, AMT: |
||||||||
| 5.00%, 10/01/31 |
10,000 | 11,247,600 | ||||||
| Miami International Airport, (AGM), 5.50%, 10/01/41 |
3,500 | 4,016,390 | ||||||
| County of St. John’s Florida, Refunding RB, Series A (AGM), 5.00%, 10/01/34 |
2,940 | 3,350,571 | ||||||
| Florida Housing Finance Corp., RB, Waverly Apartments, Series C-1, AMT (AGM), 6.30%, 7/01/30 |
2,055 | 2,059,336 | ||||||
| Florida Housing Finance Corp., Refunding RB, Homeowner Mortgage, Series 2, AMT (NPFGC): |
||||||||
| 5.75%, 7/01/14 |
190 | 190,644 | ||||||
| 5.90%, 7/01/29 |
5,160 | 5,217,431 | ||||||
| Jacksonville Florida Port Authority, Refunding RB, AMT, 5.00%, 11/01/38 |
3,880 | 4,207,976 | ||||||
| Manatee County Housing Finance Authority, RB, Series A, AMT (Ginnie Mae), 5.90%, 9/01/40 |
615 | 668,843 | ||||||
| Miami-Dade County Housing Finance Authority Florida, RB, Marbrisa Apartments Project, Series 2A, AMT (AGM), 6.00%, 8/01/26 |
2,185 | 2,189,676 | ||||||
| Orlando-Orange County Expressway Authority, Refunding RB (a): |
||||||||
| 5.00%, 7/01/29 |
3,000 | 3,516,990 | ||||||
| 5.00%, 7/01/35 |
5,000 | 5,703,700 | ||||||
|
|
|
|||||||
| 53,602,362 | ||||||||
| Illinois — 16.8% |
||||||||
| Chicago Illinois Board of Education, GO, Series A: |
||||||||
| 5.50%, 12/01/39 |
6,370 | 7,380,792 | ||||||
| 5.00%, 12/01/42 |
8,750 | 9,524,462 | ||||||
| Chicago Illinois Board of Education, GO, Refunding, Chicago School Reform Board, Series A (NPFGC), 5.50%, 12/01/26 |
1,620 | 2,015,977 | ||||||
| Chicago Illinois Transit Authority, RB: |
||||||||
| Federal Transit Administration Section 5309, Series A (AGC), 6.00%, 6/01/26 |
6,315 | 7,339,419 | ||||||
| Sales Tax Receipts, 5.25%, 12/01/36 |
1,960 | 2,253,373 | ||||||
| Sales Tax Receipts, 5.25%, 12/01/40 |
5,515 | 6,304,362 | ||||||
| City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien: |
||||||||
| Series A, 5.75%, 1/01/39 |
7,395 | 8,682,100 | ||||||
| Series C, 6.50%, 1/01/41 |
16,800 | 21,723,912 | ||||||
| City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38 |
2,445 | 2,807,936 | ||||||
| City of Chicago Illinois Wastewater Transmission, RB, Second Lien, 5.00%, 1/01/42 |
3,000 | 3,344,370 | ||||||
| Cook County Forest Preserve District, GO, Series C, 5.00%, 12/15/32 |
1,790 | 2,055,009 | ||||||
| Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/32 |
840 | 964,362 | ||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 45 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Illinois (concluded) |
||||||||
| Illinois Finance Authority, RB: |
||||||||
| Carle Foundation, Series A, 6.00%, 8/15/41 |
$ | 4,000 | $ | 4,788,560 | ||||
| University of Chicago, Series B, 5.50%, 7/01/37 |
10,000 | 12,017,300 | ||||||
| Illinois Finance Authority, Refunding RB, North Western Memorial Healthcare, 5.00%, 8/15/37 |
1,395 | 1,587,622 | ||||||
| Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project, Series B, 5.00%, 12/15/28 |
2,645 | 3,099,411 | ||||||
| Railsplitter Tobacco Settlement Authority, RB: |
||||||||
| 5.50%, 6/01/23 |
4,365 | 5,266,634 | ||||||
| 6.00%, 6/01/28 |
1,245 | 1,490,165 | ||||||
|
|
|
|||||||
| 102,645,766 | ||||||||
| Indiana — 3.4% |
||||||||
| Indiana Finance Authority Waste Water Utility, RB, First Lien, CWA Authority, Series A, 5.00%, 10/01/41 |
4,080 | 4,654,056 | ||||||
| Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38 |
14,105 | 15,964,885 | ||||||
|
|
|
|||||||
| 20,618,941 | ||||||||
| Kansas — 0.9% |
||||||||
| Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series A, 5.00%, 11/15/32 |
4,620 | 5,366,915 | ||||||
| Louisiana — 0.2% |
||||||||
| New Orleans Aviation Board Louisiana, Refunding GARB, Restructuring (AGC): |
||||||||
| Series A-1, 6.00%, 1/01/23 |
500 | 596,045 | ||||||
| Series A-2, 6.00%, 1/01/23 |
720 | 858,305 | ||||||
|
|
|
|||||||
| 1,454,350 | ||||||||
| Massachusetts — 0.4% |
||||||||
| Massachusetts Development Finance Agency, RB, Wellesley College, Series J, 5.00%, 7/01/42 |
2,090 | 2,426,406 | ||||||
| Michigan — 5.9% |
||||||||
| City of Detroit Michigan, RB, Second Lien, Series B (AGM), 6.25%, 7/01/36 |
6,320 | 7,351,171 | ||||||
| City of Detroit Michigan, Refunding RB, Sewage Disposal System, Senior Lien (AGM): |
||||||||
| Series B, 7.50%, 7/01/33 |
2,780 | 3,462,851 | ||||||
| Series C-1, 7.00%, 7/01/27 |
9,055 | 11,143,808 | ||||||
| Hudsonville Public Schools, GO, School Building & Site (Q-SBLF), 5.25%, 5/01/41 |
6,015 | 6,807,717 | ||||||
| Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39 |
5,780 | 7,364,067 | ||||||
|
|
|
|||||||
| 36,129,614 | ||||||||
| Minnesota — 2.0% |
||||||||
| City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 |
9,900 | 12,197,493 | ||||||
| Mississippi — 2.8% |
||||||||
| Medical Center Educational Building Corp., RB, University of Mississippi Medical Center Facilities Expansion & Renovation Project, Series A, 5.00%, 6/01/41 |
2,830 | 3,213,408 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Mississippi (concluded) |
||||||||
| Mississippi Development Bank, Refunding RB, Special Obligation,: |
||||||||
| City of Jacksonville Mississippi Water & Sewer System Project, Series A (AGM), 5.00%, 9/01/30 |
$ | 9,030 | $ | 10,522,479 | ||||
| Jackson Public School District, Series A, 5.00%, 4/01/28 |
3,005 | 3,426,511 | ||||||
|
|
|
|||||||
| 17,162,398 | ||||||||
| Nevada — 3.9% |
||||||||
| Clark County Water Reclamation District, GO, Series A, 5.25%, 7/01/34 |
5,850 | 7,029,068 | ||||||
| County of Clark Nevada, ARB: |
||||||||
| Las Vegas-McCarran International Airport, Series A (AGM), 5.25%, 7/01/39 |
11,175 | 12,601,377 | ||||||
| Subordinate Lien, Series A-2 (NPFGC), 5.00%, 7/01/36 |
3,965 | 4,147,231 | ||||||
|
|
|
|||||||
| 23,777,676 | ||||||||
| New Jersey — 4.0% |
||||||||
| New Jersey EDA, RB, School Facility Construction, Series KK, 5.00%, 3/01/31 |
5,000 | 5,795,000 | ||||||
| New Jersey Health Care Facilities Financing Authority, RB, Virtua Health (AGC), 5.50%, 7/01/38 |
6,500 | 7,233,265 | ||||||
| New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT, 5.75%, 12/01/28 |
4,475 | 5,073,308 | ||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A, 5.50%, 6/15/41 |
5,410 | 6,301,622 | ||||||
|
|
|
|||||||
| 24,403,195 | ||||||||
| New York — 11.7% |
||||||||
| Metropolitan Transportation Authority, Refunding RB, Transportation, Series C, 5.00%, 11/15/28 |
5,500 | 6,451,115 | ||||||
| New York City Municipal Water Finance Authority, Refunding RB: |
||||||||
| Fiscal 2009, Series EE, 5.25%, 6/15/40 |
7,500 | 8,731,125 | ||||||
| Second General Resolution, Series FF-2, 5.50%, 6/15/40 |
4,000 | 4,736,480 | ||||||
| Second General Resolution, Water & Sewer System, Fiscal 2011, Series EE, 5.38%, 6/15/43 |
3,475 | 4,058,244 | ||||||
| New York City Transitional Finance Authority, RB: |
||||||||
| Fiscal 2009, Series S-4 (AGC), 5.50%, 1/15/29 |
4,000 | 4,731,560 | ||||||
| Future Tax Secured, Sub-Series E-1, 5.00%, 2/01/42 |
7,210 | 8,216,516 | ||||||
| Sub-Series S-2A, 5.00%, 7/15/30 |
7,110 | 8,340,599 | ||||||
| New York State Dormitory Authority, RB, General Purpose, Series B: |
||||||||
| 5.00%, 3/15/37 |
9,900 | 11,424,600 | ||||||
| 5.00%, 3/15/42 |
9,655 | 11,018,865 | ||||||
| New York State Thruway Authority, Refunding RB, General, Series I, 5.00%, 1/01/37 |
2,890 | 3,268,706 | ||||||
|
|
|
|||||||
| 70,977,810 | ||||||||
| North Carolina — 1.2% |
||||||||
| North Carolina Medical Care Commission, RB, Health Care Facilities, Duke University Health System, Series A, 5.00%, 6/01/32 |
6,305 | 7,356,359 | ||||||
| Ohio — 1.2% |
||||||||
| The Ohio State University, RB, General Receipts, Special Purpose, Series A, 5.00%, 6/01/38 |
6,475 | 7,517,799 | ||||||
See Notes to Financial Statements.
| 46 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Pennsylvania — 4.7% |
||||||||
| Berks County Municipal Authority, Refunding RB, Reading Hospital & Medical Center, Series A, |
$ | 4,425 | $ | 4,901,528 | ||||
| Pennsylvania Higher Educational Facilities Authority, RB, 5.00%, 4/01/42 |
9,325 | 10,553,289 | ||||||
| Pennsylvania Turnpike Commission, RB: |
||||||||
| Sub-Series A, 6.00%, 12/01/41 |
4,945 | 5,632,899 | ||||||
| Sub-Series B, Motor License Fund- Enhanced Subordinate Special, 5.00%, 12/01/42 |
6,480 | 7,271,597 | ||||||
|
|
|
|||||||
| 28,359,313 | ||||||||
| Puerto Rico — 1.2% |
||||||||
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39 |
6,610 | 7,455,551 | ||||||
| Texas — 20.9% |
||||||||
| City of Houston Texas, Refunding RB, Utility System, Combined First Lien, Series A (AGC): |
||||||||
| 6.00%, 11/15/35 |
12,700 | 15,463,393 | ||||||
| 6.00%, 11/15/36 |
9,435 | 11,549,289 | ||||||
| 5.38%, 11/15/38 |
5,000 | 5,822,400 | ||||||
| Dallas Area Rapid Transit, Refunding RB, Senior Lien, 5.25%, 12/01/38 |
9,110 | 10,587,095 | ||||||
| Dallas/Fort Worth International Airport, Joint Refunding ARB, AMT: |
||||||||
| Series E, 5.00%, 11/01/35 |
11,800 | 12,923,478 | ||||||
| Series F, 5.00%, 11/01/35 |
10,000 | 10,896,100 | ||||||
| Series H, 5.00%, 11/01/42 |
10,425 | 11,293,507 | ||||||
| Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/35 |
1,500 | 1,863,450 | ||||||
| Houston Community College System, Harris and Fort Bend Counties, Texas, Limited Tax, GO, |
2,450 | 2,782,220 | ||||||
| North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41 |
3,500 | 4,158,560 | ||||||
| North Texas Tollway Authority, Refunding RB, System, First Tier: |
||||||||
| (AGM), 6.00%, 1/01/43 |
5,555 | 6,562,510 | ||||||
| Series B, 5.00%, 1/01/42 |
3,500 | 3,890,495 | ||||||
| Series K-1 (AGC), 5.75%, 1/01/38 |
12,150 | 13,691,714 | ||||||
| Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC), 6.50%, 7/01/37 |
1,770 | 2,097,521 | ||||||
| Texas Tech University, Refunding RB, Improvement Bonds, 14th Series A, 5.00%, 8/15/32 |
1,500 | 1,752,060 | ||||||
| Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, First Tier, Series A, 5.00%, 8/15/41 |
2,070 | 2,271,059 | ||||||
| University of Texas, Refunding RB, Financing System, Series B, 5.00%, 8/15/43 |
8,495 | 9,931,505 | ||||||
|
|
|
|||||||
| 127,536,356 | ||||||||
| Utah — 2.2% |
||||||||
| Utah Transit Authority, Refunding RB, Subordinated Sales Tax, 5.00%, 6/15/42 |
11,910 | 13,437,696 | ||||||
| Virginia — 2.6% |
||||||||
| Fairfax County IDA, RB, Health Care, Inova Health System Project, Series A, 5.00%, 5/15/40 |
3,230 | 3,671,283 | ||||||
| Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/35 (b) |
4,300 | 5,653,081 | ||||||
| Virginia Resources Authority, RB, Series A-1, 5.00%, 11/01/42 |
5,770 | 6,680,102 | ||||||
|
|
|
|||||||
| 16,004,466 | ||||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Washington — 1.8% |
||||||||
| City of Seattle Washington, Refunding RB, Series A, 5.25%, 2/01/36 |
$ | 4,200 | $ | 4,891,026 | ||||
| State of Washington, GO, Various Purpose, Series B, 5.25%, 2/01/36 |
3,290 | 3,869,468 | ||||||
| Washington Higher Education Facilities Authority, Refunding RB, The University of Puget Sound Project, Series A, 5.00%, 10/01/42 |
2,000 | 2,240,860 | ||||||
|
|
|
|||||||
| 11,001,354 | ||||||||
| Wisconsin — 1.0% |
||||||||
| University of Wisconsin Hospitals & Clinics Authority, Refunding RB, Series A, 5.00%, 4/01/38 (a) |
1,750 | 1,957,288 | ||||||
| Wisconsin Health & Educational Facilities Authority, RB, Ascension Health, Series D, 5.00%, 11/15/41 |
2,050 | 2,303,687 | ||||||
| Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Series A, |
1,470 | 1,652,118 | ||||||
|
|
|
|||||||
| 5,913,093 | ||||||||
| Total Municipal Bonds – 121.3% | 739,597,028 | |||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (c) |
||||||||
| Alabama — 1.2% |
||||||||
| Mobile Board of Water & Sewer Commissioners, RB (NPFGC), 5.00%, 1/01/31 |
6,500 | 7,088,640 | ||||||
| California — 2.5% |
||||||||
| California State University, Refunding RB, Systemwide, Series A (AGM), 5.00%, 11/01/32 |
7,960 | 8,936,851 | ||||||
| Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 |
2,400 | 2,693,376 | ||||||
| University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37 |
3,020 | 3,487,301 | ||||||
|
|
|
|||||||
| 15,117,528 | ||||||||
| District of Columbia — 0.7% |
||||||||
| District of Columbia Water & Sewer Authority, Refunding RB, Series A, 6.00%, 10/01/35 (d) |
3,381 | 4,106,340 | ||||||
| Florida — 2.9% |
||||||||
| County of Miami-Dade Florida, Refunding RB, Transit System, Sales Surtax, 5.00%, 7/01/42 |
3,060 | 3,438,492 | ||||||
| Hillsborough County Aviation Authority, RB, Series A, AMT (AGC), 5.50%, 10/01/38 |
10,657 | 11,969,698 | ||||||
| Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40 |
2,370 | 2,506,180 | ||||||
|
|
|
|||||||
| 17,914,370 | ||||||||
| Illinois — 2.2% |
||||||||
| Chicago Transit Authority, Refunding RB, Federal Transit Administration Section 5309 (AGM), |
7,737 | 8,585,448 | ||||||
| City of Chicago Illinois Waterworks, Refunding RB, Second Lien, Water Project, 5.00%, 11/01/42 |
4,358 | 4,921,072 | ||||||
|
|
|
|||||||
| 13,506,520 | ||||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 47 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock MuniHoldings Investment Quality Fund (MFL) (Percentages shown are based on Net Assets) |
| Municipal Bonds Transferred to Tender Option Bond Trusts (c) |
Par (000) |
Value | ||||||
| Indiana — 1.7% |
||||||||
| Indiana Health & Educational Facilities Financing Authority, Refunding RB, St. Francis, Series E (AGM), 5.25%, 5/15/41 |
$ | 9,850 | $ | 10,615,443 | ||||
| Kentucky — 0.1% |
||||||||
| Kentucky State Property & Building Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27 |
404 | 475,327 | ||||||
| Massachusetts — 1.8% |
||||||||
| Massachusetts School Building Authority, RB, Senior-Series B, 5.00%, 10/15/41 |
9,440 | 10,827,208 | ||||||
| Nevada — 2.6% |
||||||||
| Clark County Water Reclamation District, GO: |
||||||||
| Limited Tax, 6.00%, 7/01/38 |
8,000 | 9,671,920 | ||||||
| Series B, 5.50%, 7/01/29 |
5,008 | 6,134,717 | ||||||
|
|
|
|||||||
| 15,806,637 | ||||||||
| New Jersey — 4.3% |
||||||||
| New Jersey EDA, RB, School Facilities Construction: |
|
|||||||
| (AGC), 6.00%, 12/15/34 (b) |
2,175 | 2,603,345 | ||||||
| 6.00%, 12/15/34 |
2,175 | 2,603,345 | ||||||
| New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 |
7,402 | 8,213,859 | ||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System: |
||||||||
| Series A (AGM), 5.00%, 12/15/32 |
8,000 | 9,110,480 | ||||||
| Series B, 5.25%, 6/15/36 |
2,960 | 3,380,438 | ||||||
|
|
|
|||||||
| 25,911,467 | ||||||||
| New York — 13.7% |
||||||||
| Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47 |
9,249 | 11,008,013 | ||||||
| New York City Municipal Water Finance Authority, Refunding RB: |
||||||||
| Series FF, 5.00%, 6/15/45 |
11,236 | 12,706,533 | ||||||
| Series FF-2, 5.50%, 6/15/40 |
4,994 | 5,913,294 | ||||||
| New York City Transitional Finance Authority, RB: |
||||||||
| Fiscal 2009, Series S-3, 5.25%, 1/15/39 |
5,619 | 6,282,695 | ||||||
| Future Tax Secured, Sub-Series E1, 5.00%, 2/01/42 |
5,439 | 6,198,163 | ||||||
| New York Liberty Development Corp., RB, World Trade Center Port Authority, Series 1, 5.25%, 12/15/43 |
13,950 | 16,011,313 | ||||||
| New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 |
8,200 | 9,717,000 | ||||||
| New York State Dormitory Authority, ERB, Personal Income Tax Revenue, Series B, 5.25%, 3/15/38 |
13,500 | 15,819,300 | ||||||
|
|
|
|||||||
| 83,656,311 | ||||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (c) |
Par (000) |
Value | ||||||
| Puerto Rico — 1.0% |
||||||||
| Puerto Rico Sales Tax Financing Corp., Refunding RB, Sales Tax, Series C, 5.25%, 8/01/40 |
$ | 5,590 | $ | 6,102,268 | ||||
| Texas — 6.3% |
||||||||
| City of San Antonio Texas, Refunding RB, Series A, 5.25%, 2/01/31 (d) |
12,027 | 14,326,719 | ||||||
| North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41 |
9,640 | 11,453,862 | ||||||
| Waco Educational Finance Corp., Refunding RB, Baylor University, 5.00%, 3/01/43 |
11,250 | 12,814,538 | ||||||
|
|
|
|||||||
| 38,595,119 | ||||||||
| Utah — 1.1% |
||||||||
| City of Riverton Utah Hospital, RB, IHC Health Services, Inc., 5.00%, 8/15/41 |
6,373 | 7,003,320 | ||||||
| Washington — 1.7% |
||||||||
| University of Washington, Refunding RB, Series A, 5.00%, 7/01/41 |
8,698 | 10,067,611 | ||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 43.8% |
266,794,109 | |||||||
| Total Long-Term Investments (Cost — $915,879,143) — 165.1% |
1,006,391,137 | |||||||
| Short-Term Securities | ||||||||
| Alabama — 0.00% |
||||||||
| Eutaw Industrial Development Board, Refunding RB, VRDN, Alabama Power Co. Project, |
200 | 200,000 | ||||||
| Shares | ||||||||
| Money Market Funds — 2.0% |
||||||||
| FFI Institutional Tax-Exempt Fund, 0.01% (f)(g) |
12,331,647 | 12,331,647 | ||||||
| Total Short-Term Securities (Cost — $12,531,647) — 2.0% |
12,531,647 | |||||||
| Total Investments (Cost — $928,410,790) — 167.1% | 1,018,922,784 | |||||||
| Liabilities in Excess of Other Assets — 0.0% |
|
(15,527 | ) | |||||
| Liability for TOB Trust Certificates, Including Interest |
|
(134,624,233 | ) | |||||
| VRDP Shares, at Liquidation Value — (45.0)% | (274,600,000 | ) | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% | $ | 609,683,024 | ||||||
|
|
|
|||||||
| Notes to Schedule of investments |
| (a) | When-issued security. Unsettled when-issued transactions were as follows: |
| Counterparty | Value | Unrealized Appreciation (Depreciation) |
||||||
| Apex Pryor Securities | $ | 5,703,700 | $ | (6,450 | ) | |||
| Jefferies and Company | $ | 3,516,990 | $ | 19,230 | ||||
| JPMorgan Chase & Co. | $ | 2,782,220 | $ | 2,573 | ||||
| JPMorgan Chase & Co. | $ | 1,957,288 | $ | (2,398 | ) | |||
| (b) | US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (c) | Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
| (d) | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $9,707,818. |
See Notes to Financial Statements.
| 48 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (concluded) |
BlackRock MuniHoldings Investment Quality Fund (MFL) |
| (e) | Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand. |
| (f) | Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
| Affiliate | Shares Held at August 31, 2012 |
Net Activity |
Shares Held at February 28, 2013 |
Income | ||||||||||||
| FFI Institutional Tax-Exempt Fund |
687,432 | 11,644,149 | 12,331,581 | $ | 1,163 | |||||||||||
| (g) | Represents the current yield as of report date. |
| Ÿ | Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
| Ÿ | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access |
| Ÿ | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
| Ÿ | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of February 28, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Assets: |
||||||||||||||||||||
| Long-Term Investments1 |
— | $ | 1,006,391,137 | — | $ | 1,006,391,137 | ||||||||||||||
| Short-Term Securities |
$ | 12,331,647 | 200,000 | — | 12,531,647 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 12,331,647 | $ | 1,006,591,137 | — | $ | 1,018,922,784 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
1 See above Schedule of Investments for values in each state or political sub-division. |
| |||||||||||||||||||
| Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
|
| |||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Liabilities: |
||||||||||||||||||||
| Bank overdraft |
— | $ | (443,146 | ) | — | $ | (443,146 | ) | ||||||||||||
| TOB trust certificates |
— | (134,552,822 | ) | — | (134,552,822 | ) | ||||||||||||||
| VRDP Shares |
— | (274,600,000 | ) | — | (274,600,000 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
— | $ | (409,595,968 | ) | — | $ | (409,595,968 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
There were no transfers between levels during the six months ended February 28, 2013.
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 49 |
Table of Contents
| Schedule of Investments February 28, 2013 (Unaudited) |
BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Alabama — 2.9% |
||||||||
| Alabama State Docks Department, Refunding RB, 6.00%, 10/01/40 |
$ | 7,610 | $ | 9,069,750 | ||||
| Camden IDB Alabama, RB, Weyerhaeuser Co. Project, Series A, 6.13%, 12/01/13 (a) |
2,550 | 2,664,674 | ||||||
| Selma IDB, RB, Gulf Opportunity Zone, International Paper Co.: |
||||||||
| 5.80%, 5/01/34 |
1,850 | 2,096,494 | ||||||
| Series A, 5.38%, 12/01/35 |
1,000 | 1,103,020 | ||||||
| Selma IDB, Refunding RB, International Paper Co., Series B, 5.50%, 5/01/20 |
5,000 | 5,084,000 | ||||||
|
|
|
|||||||
| 20,017,938 | ||||||||
| Alaska — 0.2% |
||||||||
| Northern Tobacco Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/46 |
1,250 | 1,096,600 | ||||||
| Arizona — 3.9% |
||||||||
| Maricopa County IDA Arizona, RB, Arizona Charter Schools Project, Series A, 6.75%, 7/01/29 |
4,100 | 2,892,755 | ||||||
| Maricopa County Pollution Control Corp., Refunding RB, Southern California Edison Co., Series A, 5.00%, 6/01/35 |
3,300 | 3,668,313 | ||||||
| Phoenix Civic Improvement Corp., Refunding RB, Junior Lien, Series A, 5.00%, 7/01/40 |
2,000 | 2,218,620 | ||||||
| Pima County IDA, RB, Arizona Charter Schools Project, Series I, 6.75%, 7/01/21 |
630 | 632,766 | ||||||
| Pima County IDA, Refunding RB, Arizona Charter Schools Project, Series I (a)(b): |
||||||||
| 6.10%, 7/01/13 |
370 | 384,315 | ||||||
| 6.10%, 7/01/13 |
110 | 112,068 | ||||||
| 6.30%, 7/01/13 |
740 | 765,848 | ||||||
| 6.30%, 7/01/13 |
230 | 234,480 | ||||||
| Pima County IDA Arizona, ERB, Arizona Charter Schools Project, Series E, 7.25%, 7/01/31 |
1,995 | 2,003,938 | ||||||
| Salt River Project Agricultural Improvement & Power Distribution, Refunding RB, Electrical System, Series A, 5.00%, 12/01/31 |
7,000 | 8,355,130 | ||||||
| Salt Verde Financial Corp., RB, Senior, 5.00%, 12/01/37 |
5,000 | 5,780,900 | ||||||
|
|
|
|||||||
| 27,049,133 | ||||||||
| California — 10.5% |
||||||||
| California Health Facilities Financing Authority, RB: |
||||||||
| Scripps Health, Series A, 5.00%, 11/15/40 |
2,800 | 3,192,140 | ||||||
| California Health Facilities Financing Authority, RB: |
||||||||
| Stanford Hospital and Clinics, Series A, 5.00%, 8/15/51 |
3,750 | 4,180,613 | ||||||
| State Joseph Health System, Series A, 5.75%, 7/01/39 |
5,000 | 5,924,800 | ||||||
| Sutter Health, Series B, 6.00%, 8/15/42 |
5,600 | 6,857,928 | ||||||
| California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/34 |
1,055 | 1,258,657 | ||||||
| California HFA, RB, Home Mortgage, Series K, AMT, 5.50%, 2/01/42 |
1,830 | 1,895,477 | ||||||
| California State Public Works Board, RB, Department of Mental Health, Coalinga, Series A: |
||||||||
| 5.50%, 12/01/13 (a) |
6,000 | 6,235,320 | ||||||
| 5.13%, 6/01/29 |
10,435 | 10,885,688 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| California (concluded) |
||||||||
| California Statewide Communities Development Authority, RB, Series A: |
||||||||
| Health Facility, Memorial Health Services, 6.00%, 4/01/13 (a) |
$ | 4,240 | $ | 4,262,430 | ||||
| Kaiser Permanente, 5.00%, 4/01/42 |
4,170 | 4,698,339 | ||||||
| City of Los Angeles Department of Airports, Refunding RB, Series A, 5.25%, 5/15/39 |
1,200 | 1,357,788 | ||||||
| Golden State Tobacco Securitization Corp. California, RB, Asset-Backed, Series A-3, |
5,725 | 5,838,011 | ||||||
| Poway Unified School District, GO, CAB, School Facilities Improvement District No. 2007-1, Election of 2008, Series B, 4.80%, 8/01/46 (c) |
15,000 | 3,077,850 | ||||||
| State of California, GO, Various Purpose, 6.50%, 4/01/33 |
9,700 | 12,159,823 | ||||||
|
|
|
|||||||
| 71,824,864 | ||||||||
| Colorado — 1.0% |
||||||||
| Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33 |
2,500 | 3,022,600 | ||||||
| Colorado Health Facilities Authority, Refunding RB, Evangelical Lutheran, Series A, 5.25%, 6/01/34 |
3,000 | 3,134,610 | ||||||
| Regional Transportation District, COP, Refunding, Series A, 5.38%, 6/01/31 |
385 | 439,235 | ||||||
|
|
|
|||||||
| 6,596,445 | ||||||||
| Delaware — 0.2% |
||||||||
| County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40 |
1,500 | 1,692,435 | ||||||
| District of Columbia — 0.2% |
||||||||
| Metropolitan Washington Airports Authority, Refunding RB, First Senior Lien, Series A: |
||||||||
| 5.00%, 10/01/39 |
415 | 456,218 | ||||||
| 5.25%, 10/01/44 |
650 | 719,647 | ||||||
|
|
|
|||||||
| 1,175,865 | ||||||||
| Florida — 4.9% |
||||||||
| County of Miami-Dade Florida, GO, Building Better Communities Program: |
||||||||
| Series B, 6.38%, 7/01/28 |
4,630 | 5,634,201 | ||||||
| Series B-1, 5.63%, 7/01/38 |
5,000 | 5,836,500 | ||||||
| County of Miami-Dade Florida, Refunding RB, Miami International Airport: |
||||||||
| AMT (AGC), 5.00%, 10/01/40 |
10,000 | 10,735,600 | ||||||
| Series A-1, 5.38%, 10/01/41 |
10,290 | 11,694,688 | ||||||
|
|
|
|||||||
| 33,900,989 | ||||||||
| Georgia — 1.9% |
||||||||
| City of Atlanta Georgia, Refunding RB, General, Series B, AMT, 5.00%, 1/01/29 |
1,070 | 1,207,345 | ||||||
| DeKalb County Hospital Authority Georgia, Refunding RB, Dekalb Medical Center, Inc. Project, |
3,570 | 4,184,075 | ||||||
| DeKalb Private Hospital Authority, Refunding RB, Children’s Healthcare, 5.25%, 11/15/39 |
3,335 | 3,715,090 | ||||||
| Municipal Electric Authority of Georgia, RB, Series W: |
||||||||
| 6.60%, 1/01/18 (d) |
110 | 115,541 | ||||||
| 6.60%, 1/01/18 |
3,645 | 4,075,657 | ||||||
|
|
|
|||||||
| 13,297,708 | ||||||||
See Notes to Financial Statements.
| 50 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Hawaii — 0.9% |
||||||||
| Hawaii State Harbor System, RB, Series A, 5.50%, 7/01/35 |
$ | 5,000 | $ | 5,879,200 | ||||
| Illinois — 11.4% |
||||||||
| Chicago Illinois Board of Education, GO, Series A, 5.50%, 12/01/39 |
6,670 | 7,728,395 | ||||||
| Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/36 |
2,110 | 2,425,825 | ||||||
| City of Chicago Illinois, ARB, O’Hare International Airport, Third Lien, Series B-2, AMT (NPFGC), 6.00%, 1/01/27 |
17,080 | 17,731,773 | ||||||
| Illinois Finance Authority, RB: |
||||||||
| Advocate Health Care Network, Series D, 6.50%, 11/01/38 |
9,700 | 11,730,792 | ||||||
| Community, 6.50%, 7/01/22 |
655 | 658,177 | ||||||
| Illinois Finance Authority, Refunding RB, Series A: |
||||||||
| Northwestern Memorial Hospital, 6.00%, 8/15/39 |
9,000 | 10,679,670 | ||||||
| OSF Healthcare System, 6.00%, 5/15/39 |
5,060 | 5,870,511 | ||||||
| Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28 |
2,645 | 3,165,853 | ||||||
| Regional Transportation Authority, RB: |
||||||||
| Series A (AMBAC), 7.20%, 11/01/20 |
2,765 | 3,324,968 | ||||||
| Series C (NPFGC), 7.75%, 6/01/20 |
4,000 | 4,996,680 | ||||||
| Village of Hodgkins Illinois, RB, MBM Project, AMT, 6.00%, 11/01/23 |
10,000 | 10,016,000 | ||||||
|
|
|
|||||||
| 78,328,644 | ||||||||
| Indiana — 2.0% |
||||||||
| Indiana Health & Educational Facilities Financing Authority, RB, Clarian Health Obligation, Series A, 5.25%, 2/15/40 |
8,980 | 9,808,405 | ||||||
| Indianapolis Local Public Improvement Bond Bank, Refunding RB, Series D, 6.75%, 2/01/14 |
3,670 | 3,882,126 | ||||||
|
|
|
|||||||
| 13,690,531 | ||||||||
| Iowa — 0.1% |
||||||||
| Iowa Tobacco Settlement Authority, RB, Asset-Backed, Series C, 5.63%, 6/01/46 |
1,000 | 951,660 | ||||||
| Kentucky — 1.2% |
||||||||
| County of Owen Kentucky, RB, Kentucky American Water Co., Series B, 5.63%, 9/01/39 |
1,000 | 1,079,820 | ||||||
| Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A: |
||||||||
| 6.38%, 6/01/40 |
2,000 | 2,403,960 | ||||||
| 6.50%, 3/01/45 |
4,000 | 4,808,480 | ||||||
|
|
|
|||||||
| 8,292,260 | ||||||||
| Louisiana — 1.0% |
||||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35 |
2,615 | 3,088,681 | ||||||
| Louisiana Stadium & Exposition District, Refunding RB, Senior, Series A, 5.00%, 7/01/36 |
1,110 | 1,263,713 | ||||||
| Parish of St. Charles Louisiana Gulf Opportunity Zone, RB, Valero Energy Corp. Project, |
2,210 | 2,432,481 | ||||||
|
|
|
|||||||
| 6,784,875 | ||||||||
| Maine — 1.0% |
||||||||
| Maine Health & Higher Educational Facilities Authority, RB, Series A, 5.00%, 7/01/39 |
5,000 | 5,437,850 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Maine (concluded) |
||||||||
| Portland New Public Housing Authority Maine, Refunding RB, Senior Living, Series A, 6.00%, 2/01/34 |
$ | 1,190 | $ | 1,225,819 | ||||
|
|
|
|||||||
| 6,663,669 | ||||||||
| Maryland — 1.8% |
||||||||
| Maryland Community Development Administration, RB, AMT, 5.10%, 9/01/37 |
1,835 | 1,915,483 | ||||||
| Maryland Community Development Administration, Refunding RB, Residential, Series D, AMT, |
3,250 | 3,352,473 | ||||||
| Maryland Health & Higher Educational Facilities Authority, Refunding RB: |
||||||||
| Charlestown Community, 6.25%, 1/01/41 |
2,000 | 2,285,740 | ||||||
| University of Maryland Medical System, 5.00%, 7/01/34 |
2,100 | 2,317,854 | ||||||
| University of Maryland Medical System, 5.13%, 7/01/39 |
2,100 | 2,312,541 | ||||||
|
|
|
|||||||
| 12,184,091 | ||||||||
| Massachusetts — 5.6% |
||||||||
| Massachusetts Bay Transportation Authority, Refunding RB, General Transportation System, Series A, 7.00%, 3/01/19 |
3,010 | 3,539,610 | ||||||
| Massachusetts Development Finance Agency, RB, Wellesley College, Series J, 5.00%, 7/01/42 |
2,800 | 3,250,688 | ||||||
| Massachusetts HFA, RB, AMT: |
||||||||
| S/F Housing, Series 130, 5.00%, 12/01/32 |
2,500 | 2,600,450 | ||||||
| Series A, 5.20%, 12/01/37 |
2,865 | 2,976,706 | ||||||
| Massachusetts HFA, Refunding RB, Series C, AMT, 5.35%, 12/01/42 |
6,550 | 7,057,821 | ||||||
| Massachusetts Water Resources Authority, RB, Series A, 6.50%, 7/15/19 (d) |
16,000 | 18,962,720 | ||||||
|
|
|
|||||||
| 38,387,995 | ||||||||
| Michigan — 3.9% |
||||||||
| City of Detroit Michigan, RB, Water Supply System, Second Lien, Series B (AGM): |
||||||||
| 6.25%, 7/01/36 |
2,500 | 2,907,900 | ||||||
| 7.00%, 7/01/36 |
1,250 | 1,509,450 | ||||||
| Michigan State Hospital Finance Authority, Refunding RB: |
||||||||
| Henry Ford Health System, Series A, 5.25%, 11/15/46 |
7,950 | 8,420,481 | ||||||
| Michigan State Hospital Finance Authority, Refunding RB: |
||||||||
| McLaren Health Care, 5.75%, 5/15/38 |
7,285 | 8,443,461 | ||||||
| Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, |
4,100 | 5,223,646 | ||||||
|
|
|
|||||||
| 26,504,938 | ||||||||
| Mississippi — 4.6% |
||||||||
| County of Lowndes Mississippi, Refunding RB, Solid Waste Disposal & Pollution Control, Weyerhaeuser Co. Project: |
||||||||
| Series A, 6.80%, 4/01/22 |
9,160 | 11,036,334 | ||||||
| Series B, 6.70%, 4/01/22 |
4,500 | 5,368,995 | ||||||
| Mississippi Business Finance Corp., Refunding RB, System Energy Resource, Inc. Project, |
15,000 | 15,048,600 | ||||||
|
|
|
|||||||
| 31,453,929 | ||||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 51 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Nebraska — 1.7% |
||||||||
| Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42 |
$ | 6,200 | $ | 6,768,478 | ||||
| Omaha Nebraska Public Power District, Series B, 5.00%, 2/01/36 |
4,000 | 4,600,000 | ||||||
|
|
|
|||||||
| 11,368,478 | ||||||||
| Nevada — 0.9% |
||||||||
| County of Clark Nevada, ARB, Series B, 5.75%, 7/01/42 |
5,000 | 5,878,350 | ||||||
| New Hampshire — 0.3% |
||||||||
| New Hampshire Health & Education Facilities Authority, Refunding RB, Elliot
Hospital, Series B, |
2,145 | 2,297,123 | ||||||
| New Jersey — 4.8% |
||||||||
| New Jersey EDA, RB, Cigarette Tax, 5.75%, 6/15/14 (a) |
3,695 | 3,959,636 | ||||||
| New Jersey EDA, Refunding RB: |
||||||||
| Cigarette Tax, 5.00%, 6/15/25 |
990 | 1,138,470 | ||||||
| School Facilities Construction, Series AA, 5.25%, 12/15/33 |
10,000 | 11,361,800 | ||||||
| New Jersey State Housing & Mortgage Finance Agency, RB, Series AA, 6.38%, 10/01/28 |
1,045 | 1,133,741 | ||||||
| New Jersey Transportation Trust Fund Authority, RB, Transportation System, 5.50%, 6/15/31 |
8,000 | 9,491,360 | ||||||
| Tobacco Settlement Financing Corp. New Jersey, RB, 7.00%, 6/01/13 (a) |
5,980 | 6,085,667 | ||||||
|
|
|
|||||||
| 33,170,674 | ||||||||
| New York — 4.7% |
||||||||
| Metropolitan Transportation Authority, RB, Series C: |
||||||||
| 6.25%, 11/15/23 |
3,245 | 4,088,376 | ||||||
| 6.50%, 11/15/28 |
14,925 | 18,992,510 | ||||||
| New York State Thruway Authority, Refunding RB, Series I, 5.00%, 1/01/42 |
4,215 | 4,726,111 | ||||||
| Port Authority of New York & New Jersey, RB, JFK International Air Terminal, 6.00%, 12/01/36 |
3,165 | 3,750,303 | ||||||
| Rochester Housing Authority, RB, College Andrews Terrace Apartments, AMT (Ginnie Mae), |
1,000 | 1,031,960 | ||||||
|
|
|
|||||||
| 32,589,260 | ||||||||
| North Carolina — 1.0% |
||||||||
| Gaston County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35 |
4,105 | 3,798,521 | ||||||
| North Carolina Medical Care Commission, Refunding RB, Wakemed, Series A, 4.13%, 10/01/38 |
2,730 | 2,839,691 | ||||||
|
|
|
|||||||
| 6,638,212 | ||||||||
| Ohio — 0.5% |
||||||||
| Buckeye Tobacco Settlement Financing Authority, RB, Senior, Series A-2, 6.50%, 6/01/47 |
1,125 | 1,070,246 | ||||||
| County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/37 |
1,915 | 2,398,768 | ||||||
|
|
|
|||||||
| 3,469,014 | ||||||||
| Oregon — 0.7% |
||||||||
| City of Tigard Washington County Oregon, Refunding RB, Water System: |
||||||||
| 5.00%, 8/01/37 |
2,000 | 2,312,000 | ||||||
| 5.00%, 8/01/42 |
2,335 | 2,676,634 | ||||||
|
|
|
|||||||
| 4,988,634 | ||||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Pennsylvania — 0.9% |
||||||||
| Chester County IDA, RB, Aqua Pennsylvania Inc. Project, Series A, AMT (NPFGC), 5.00%, 2/01/40 |
$ | 540 | $ | 569,246 | ||||
| Delaware River Port Authority of Pennsylvania & New Jersey, RB, Series D, 5.00%, 1/01/40 |
195 | 217,294 | ||||||
| Pennsylvania Economic Development Financing Authority, Refunding RB, Aqua Pennsylvania, Inc. Project, Series A, AMT, 5.00%, 12/01/34 |
2,780 | 3,101,035 | ||||||
| Philadelphia Authority for Industrial Development, RB: |
||||||||
| Arbor House, Inc. Project, Series E, 6.10%, 7/01/33 |
1,000 | 1,023,230 | ||||||
| Rieder House Project, Series A, 6.10%, 7/01/33 |
1,355 | 1,386,477 | ||||||
|
|
|
|||||||
| 6,297,282 | ||||||||
| Puerto Rico — 2.4% |
||||||||
| Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39 |
13,000 | 14,662,960 | ||||||
| Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.60%, 8/01/41 (c) |
10,000 | 2,081,800 | ||||||
|
|
|
|||||||
| 16,744,760 | ||||||||
| South Carolina — 0.9% |
||||||||
| County of Georgetown South Carolina, Refunding RB, International Paper Co. Project, Series A, AMT, 5.55%, 12/01/29 |
1,000 | 1,057,450 | ||||||
| County of Richland South Carolina, Refunding RB, International Paper Co. Project, AMT, |
5,000 | 5,069,850 | ||||||
|
|
|
|||||||
| 6,127,300 | ||||||||
| Texas — 13.8% |
||||||||
| Brazos River Authority, Refunding RB, Texas Utility Co., Series A, AMT, 7.70%, 4/01/33 |
3,055 | 290,653 | ||||||
| Brazos River Harbor Navigation District, Refunding RB, Dow Chemical Co. Project, Series A-7, AMT, 6.63%, 5/15/33 |
11,460 | 11,532,198 | ||||||
| Central Texas Regional Mobility Authority, Refunding RB, Senior Lien: |
||||||||
| 5.75%, 1/01/31 |
1,000 | 1,168,770 | ||||||
| 6.00%, 1/01/41 |
4,300 | 5,002,577 | ||||||
| Gulf Coast Waste Disposal Authority, Refunding RB, Series A, AMT, 6.10%, 8/01/24 |
4,000 | 4,015,280 | ||||||
| Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B: |
||||||||
| 7.13%, 12/01/31 |
3,500 | 4,470,270 | ||||||
| 7.25%, 12/01/35 |
5,400 | 6,708,420 | ||||||
| La Vernia Higher Education Finance Corp., RB, KIPP, Inc., 6.25%, 8/15/39 |
925 | 1,076,811 | ||||||
| Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, 5.25%, 11/01/40 |
3,600 | 3,944,484 | ||||||
| Matagorda County Navigation District No. 1 Texas, Refunding RB, CenterPoint Energy Project, |
9,355 | 9,754,459 | ||||||
| North Texas Education Finance Corporation, ERB, Uplift Education, Series A, 5.13%, 12/01/42 |
1,000 | 1,077,040 | ||||||
| North Texas Tollway Authority, Refunding RB, First Tier, Series A, 6.25%, 1/01/39 |
3,500 | 4,020,275 | ||||||
See Notes to Financial Statements.
| 52 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets) |
| Municipal Bonds | Par (000) |
Value | ||||||
| Texas (concluded) |
||||||||
| San Antonio Public Facilities Corp., Refunding RB, 4.00%, 9/15/42 |
$ | 7,200 | $ | 7,323,552 | ||||
| Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, |
5,000 | 6,040,950 | ||||||
| Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Scott & White Healthcare, 5.00%, 8/15/43 (f) |
1,145 | 1,274,213 | ||||||
| Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien: |
||||||||
| LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40 |
10,000 | 12,131,900 | ||||||
| NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 |
4,710 | 5,618,559 | ||||||
| Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, First Tier, Series A, 4.00%, 8/15/38 |
9,375 | 9,389,531 | ||||||
|
|
|
|||||||
| 94,839,942 | ||||||||
| Utah — 0.8% |
||||||||
| Utah Transit Authority, Refunding RB, Subordinated Sales Tax, 4.00%, 6/15/39 |
5,000 | 5,156,650 | ||||||
| Vermont — 0.1% |
||||||||
| Vermont Educational & Health Buildings Financing Agency, RB,
Developmental & Mental Health, |
420 | 426,350 | ||||||
| Virginia — 2.9% |
||||||||
| City of Norfolk Virginia, Refunding RB, Series B (AMBAC), 5.50%, 2/01/31 |
3,550 | 3,554,615 | ||||||
| City of Portsmouth Virginia, GO, Refunding, Series D, 5.00%, 7/15/34 |
3,105 | 3,582,393 | ||||||
| Fairfax County EDA, Refunding RB Goodwin House, Inc.: |
||||||||
| 5.13%, 10/01/42 |
6,015 | 6,227,149 | ||||||
| 5.13%, 10/01/37 |
2,000 | 2,076,460 | ||||||
| Virginia HDA, Refunding RB, Sub-Series A3, AMT, 5.05%, 7/01/26 |
1,325 | 1,414,981 | ||||||
| Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossing Operation LLC Project, AMT, 6.00%, 1/01/37 |
2,620 | 3,038,257 | ||||||
|
|
|
|||||||
| 19,893,855 | ||||||||
| Washington — 4.1% |
||||||||
| Energy Northwest, Refunding RB, Series B, 7.13%, 7/01/16 |
14,320 | 17,364,002 | ||||||
| Seattle Housing Authority Washington, RB, Replacement Housing Projects, 6.13%, 12/01/32 |
2,120 | 2,121,442 | ||||||
| Washington Health Care Facilities Authority, Refunding RB, Catholic Health Initiatives, Series D, |
7,000 | 8,508,990 | ||||||
|
|
|
|||||||
| 27,994,434 | ||||||||
| West Virginia — 0.4% |
||||||||
| West Virginia Hospital Finance Authority, Refunding RB, Charleston, Series A, 5.63%, 9/01/32 |
2,500 | 2,813,000 | ||||||
| Wisconsin — 0.5% |
||||||||
| Wisconsin Health & Educational Facilities Authority, RB, SynergyHealth, Inc., 6.00%, 8/01/13 (a) |
3,040 | 3,114,814 | ||||||
| Municipal Bonds | Par (000) |
Value | ||||||
| Wyoming — 0.7% |
||||||||
| County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, 5.25%, 7/15/26 |
$ | 4,500 | $ | 5,112,135 | ||||
| Total Municipal Bonds – 101.3% | 694,694,036 | |||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (g) |
||||||||
| Arizona — 0.6% |
||||||||
| Phoenix Arizona Civic Improvement Corp., RB, Junior Lien, Series A, 5.00%, 7/01/34 |
3,500 | 4,070,780 | ||||||
| California — 5.1% |
||||||||
| Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, |
9,586 | 11,975,095 | ||||||
| University of California, RB, Series O, 5.25%, 5/15/39 |
20,000 | 23,071,800 | ||||||
|
|
|
|||||||
| 35,046,895 | ||||||||
| Connecticut — 2.0% |
||||||||
| Connecticut State Health & Educational Facility Authority, RB, Yale University,
Series Z-3, |
12,000 | 13,792,680 | ||||||
| District of Columbia — 1.3% |
||||||||
| District of Columbia Water & Sewer Authority, Refunding RB, Series A, 5.50%, 10/01/39 |
7,495 | 8,845,220 | ||||||
| Florida — 4.5% |
||||||||
| County of Miami-Dade Florida, RB, Water & Sewer System (AGM), 5.00%, 10/01/39 |
14,747 | 16,480,721 | ||||||
| County of Miami-Dade Florida, Refunding RB, Transit System Sales Tax, 5.00%, 7/01/42 |
3,750 | 4,213,837 | ||||||
| Miami-Dade County Expressway Authority, Refunding RB, Series A (AGC), 5.00%, 7/01/35 |
8,900 | 9,959,011 | ||||||
|
|
|
|||||||
| 30,653,569 | ||||||||
| Illinois — 4.0% |
||||||||
| City of Chicago Illinois, Refunding RB: |
||||||||
| Sales Tax, Series A, 5.00%, 1/01/41 |
4,640 | 5,176,338 | ||||||
| Second Lien (AGM), 5.25%, 11/01/33 |
1,330 | 1,542,759 | ||||||
| Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38 |
10,000 | 12,400,300 | ||||||
| Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33 |
6,999 | 7,991,736 | ||||||
|
|
|
|||||||
| 27,111,133 | ||||||||
| Kentucky — 4.8% |
||||||||
| Kentucky Economic Development Finance Authority, Refunding RB, St. Elizabeth, Series A, |
8,003 | 8,983,090 | ||||||
| Kentucky Housing Corp., Refunding RB, Series L, AMT, 5.25%, 1/01/38 |
4,650 | 4,876,781 | ||||||
| Lexington-Fayette Urban County Airport Board, Refunding RB, Series A, 5.00%, 7/01/27 |
7,001 | 8,012,856 | ||||||
| Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, |
9,195 | 10,920,901 | ||||||
|
|
|
|||||||
| 32,793,628 | ||||||||
| Maryland — 0.8% |
||||||||
| Maryland State Transportation Authority, RB, Transportation Facility Project (AGM), 5.00%, 7/01/41 |
4,710 | 5,313,728 | ||||||
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 53 |
Table of Contents
| Schedule of Investments (continued) |
BlackRock MuniVest Fund, Inc. (MVF) (Percentages shown are based on Net Assets) |
| Municipal Bonds Transferred to Tender Option Bond Trusts (g) |
Par (000) |
Value | ||||||
| Nevada — 2.8% |
||||||||
| Clark County Water Reclamation District, GO, Series B, 5.75%, 7/01/34 |
$ | 15,789 | $ | 19,453,733 | ||||
| New York — 7.9% |
||||||||
| New York City Municipal Water Finance Authority, Refunding RB: |
||||||||
| Series FF-2, 5.50%, 6/15/40 |
4,154 | 4,918,866 | ||||||
| Water & Sewer System, Series DD, 5.00%, 6/15/37 |
24,199 | 27,447,053 | ||||||
| New York City Transitional Finance Authority, RB, 5.00%, 2/01/42 |
8,898 | 10,140,377 | ||||||
| New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 |
10,000 | 11,850,000 | ||||||
|
|
|
|||||||
| 54,356,296 | ||||||||
| North Carolina — 2.9% |
||||||||
| North Carolina Capital Facilities Finance Agency, Refunding RB: |
||||||||
| Duke University Project, Series A, 5.00%, 10/01/41 |
12,678 | 14,165,304 | ||||||
| Wake Forest University, 5.00%, 1/01/38 |
5,000 | 5,631,850 | ||||||
|
|
|
|||||||
| 19,797,154 | ||||||||
| Ohio — 3.5% |
||||||||
| County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38 |
2,870 | 3,208,832 | ||||||
| County of Montgomery Ohio, Refunding RB, Catholic Healthcare, Series A, 5.50%, 5/01/34 |
5,470 | 6,222,125 | ||||||
| Ohio Higher Educational Facility Commission, Refunding RB, Hospital, Cleveland Clinic Health, Series A, 5.25%, 1/01/33 |
4,400 | 4,899,532 | ||||||
| State of Ohio, RB, Cleveland Clinic Health, Series B, 5.50%, 1/01/34 |
8,500 | 9,713,715 | ||||||
|
|
|
|||||||
| 24,044,204 | ||||||||
| Oregon — 2.0% |
||||||||
| Oregon State Housing & Community Services Department, HRB, Series A, AMT, 4.95%, 7/01/30 |
13,000 | 13,892,574 | ||||||
| South Carolina — 0.4% |
||||||||
| South Carolina State Housing Finance & Development Authority, Refunding RB, Series
B-1, |
2,719 | 2,930,019 | ||||||
| Texas — 8.8% |
||||||||
| City of Houston Texas Airport System, Refunding RB, Texas Airport System, Senior Lien, Series A, 5.50%, 7/01/34 |
8,333 | 9,698,144 | ||||||
| Harris County Health Facilities Development Corp., Refunding RB, School Health Care System, Series B, 5.75%, 7/01/27 (d) |
20,970 | 28,128,319 | ||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts (g) |
Par (000) |
Value | ||||||
| Texas (concluded) |
||||||||
| Houston Higher Education Finance Corp., RB, Rice University Project, Series A, 5.00%, 5/15/40 |
$ | 10,000 | $ | 11,406,567 | ||||
| Texas Department of Housing & Community Affairs, MRB, Series B, AMT (Ginnie Mae), 5.25%, 9/01/32 |
4,746 | 4,995,674 | ||||||
| Texas State University Systems, Refunding RB (AGM), 5.00%, 3/15/30 |
5,667 | 6,331,438 | ||||||
|
|
|
|||||||
| 60,560,142 | ||||||||
| Virginia — 2.5% |
||||||||
| Fairfax County IDA Virginia, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35 |
2,099 | 2,414,446 | ||||||
| Virginia Commonwealth Transportation Board, RB, Capital Projects, 5.00%, 5/15/32 |
8,001 | 9,400,143 | ||||||
| Virginia Small Business Financing Authority, Refunding RB, Sentara Healthcare, 5.00%, 11/01/40 |
5,002 | 5,520,480 | ||||||
|
|
|
|||||||
| 17,335,069 | ||||||||
| Washington — 4.2% |
||||||||
| Central Puget Sound Regional Transit Authority, RB, Series A: |
||||||||
| 5.00%, 11/01/34 |
5,000 | 5,695,650 | ||||||
| 5.00%, 11/01/36 |
6,000 | 6,834,780 | ||||||
| (AGM), 5.00%, 11/01/32 |
14,007 | 15,936,216 | ||||||
|
|
|
|||||||
| 28,466,646 | ||||||||
| Wisconsin — 1.0% |
||||||||
| Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., 5.25%, 4/01/39 (h) |
6,099 | 6,753,453 | ||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 59.1% |
405,216,923 | |||||||
| Total Long-Term Investments (Cost — $979,320,391) — 160.4% |
|
1,099,910,959 | ||||||
| Short-Term Securities | Shares | |||||||
| FFI Institutional Tax-Exempt Fund, 0.01% (i)(j) |
20,213,428 | 20,213,428 | ||||||
| Total Short-Term Securities (Cost — $20,213,428) — 2.9% |
|
20,213,428 | ||||||
| Total Investments (Cost — $999,533,819) — 163.3% | 1,120,124,387 | |||||||
| Other Assets Less Liabilities — 1.1% | 7,651,810 | |||||||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (28.8)% |
|
(197,877,336 | ) | |||||
| VMTP Shares, at Liquidation Value — (35.6)% | (243,800,000 | ) | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shareholders — 100.0% | $ | 686,098,861 | ||||||
|
|
|
|||||||
| Notes to Schedule of investments |
| (a) | US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (c) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
| (d) | Security is collateralized by Municipal or US Treasury obligations. |
| (e) | Variable rate security. Rate shown is as of report date. |
See Notes to Financial Statements.
| 54 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Schedule of Investments (concluded) |
BlackRock MuniVest Fund, Inc. (MVF) |
| (f) | When-issued security. Unsettled when-issued transactions were as follows: |
| Counterparty | Value | Unrealized Appreciation |
||||||
| Goldman Sachs Group, Inc. |
$ | 1,274,213 | $ | 9,836 | ||||
| (g) | Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
| (h) | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $3,048,680. |
| (i) | Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
| Affiliate | Shares Held at August 31, 2012 |
Net Activity |
Share Held at February 28, 2013 |
Income | ||||||||||||
| FFI Institutional Tax-Exempt Fund . |
6,562,755 | 13,650,673 | 20,213,428 | $ | 875 | |||||||||||
| (j) | Represents the current yield as of report date. |
| Ÿ | Fair Value Measurements—Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
| Ÿ | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access |
| Ÿ | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
| Ÿ | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the Trust’s investments categorized in the disclosure hierarchy as of February 28, 2013:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Assets: |
||||||||||||||||||||
| Investments: | ||||||||||||||||||||
| Long-Term Investments1 |
— | $ | 1,099,910,959 | — | $ | 1,099,910,959 | ||||||||||||||
| Short-Term Securities |
$ | 20,213,428 | — | — | 20,213,428 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
$ | 20,213,428 | $ | 1,099,910,959 | — | $ | 1,120,124,387 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
1 See above Schedule of Investments for values in each sector. |
||||||||||||||||||||
|
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such liabilities are categorized within the disclosure hierarchy as follows:
|
| |||||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
| Liabilities: |
||||||||||||||||||||
| Bank overdraft |
— | $ | (482,195 | ) | — | $ | (482,195 | ) | ||||||||||||
| TOB trust certificates |
— | (197,793,067 | ) | — | (197,793,067 | ) | ||||||||||||||
| VRDP Shares |
— | (243,800,000 | ) | — | (243,800,000 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Total |
— | $ | (442,075,262 | ) | — | $ | (442,075,262 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
There were no transfers between levels during the six months ended February 28, 2013.
See Notes to Financial Statements.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 55 |
Table of Contents
| Statements of Assets and Liabilities |
| February 28, 2013 (Unaudited) | BlackRock Municipal Bond Investment Trust (BIE) |
BlackRock Municipal Bond Trust (BBK) |
BlackRock Municipal Income Investment Quality Trust (BAF) |
BlackRock Municipal Income Quality Trust (BYM) |
BlackRock Municipal Income Trust II (BLE) |
BlackRock MuniHoldings Investment Quality Fund (MFL) |
BlackRock MuniVest Fund, Inc. (MVF) |
|||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||
| Investments at value - unaffiliated1 |
$ | 93,191,956 | $ | 278,402,195 | $ | 227,783,515 | $ | 672,361,122 | $ | 618,433,031 | $ | 1,006,591,137 | $ | 1,099,910,959 | ||||||||||||||
| Investments at value - affiliated2 |
1,154,435 | 3,101,522 | 637,888 | 8,659,864 | 4,716,948 | 12,331,647 | 20,213,428 | |||||||||||||||||||||
| Cash |
— | 122,644 | — | — | 259,625 | — | — | |||||||||||||||||||||
| Cash pledged as collateral for financial futures contracts |
— | 66,000 | — | — | — | — | — | |||||||||||||||||||||
| Interest receivable |
952,725 | 2,843,060 | 2,422,703 | 6,411,472 | 6,845,736 | 11,591,049 | 13,544,646 | |||||||||||||||||||||
| Investments sold receivable |
101,696 | 95,719 | 254,239 | 1,523,345 | – | 10,647,470 | 108,000 | |||||||||||||||||||||
| Deferred offering costs |
160,954 | 107,863 | 88,117 | 146,519 | 156,275 | 475,075 | 235,781 | |||||||||||||||||||||
| TOB trust receivable |
— | 4,500,000 | — | 4,665,000 | — | — | — | |||||||||||||||||||||
| Prepaid expenses |
36,579 | 7,381 | 6,273 | 18,357 | 20,702 | 55,043 | 21,657 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Total assets |
95,598,345 | 289,246,384 | 231,192,735 | 693,785,679 | 630,432,317 | 1,041,691,421 | 1,134,034,471 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Accrued Liabilities | ||||||||||||||||||||||||||||
| Bank overdraft |
— | — | — | — | — | 443,146 | 482,195 | |||||||||||||||||||||
| Investments purchased payable |
1,135,906 | 9,148,898 | 2,131,113 | 8,416,746 | 2,656,779 | 18,497,544 | 1,264,378 | |||||||||||||||||||||
| Income dividends payable — Common Shares |
260,417 | 877,515 | 599,335 | 2,059,689 | 1,991,167 | 2,892,295 | 3,766,501 | |||||||||||||||||||||
| Investment advisory fees payable |
41,076 | 136,453 | 96,187 | 285,621 | 263,154 | 429,204 | 431,291 | |||||||||||||||||||||
| Officer’s and Trustees’ fees payable |
7,985 | 27,494 | 19,001 | 58,909 | 53,548 | 169,699 | 143,740 | |||||||||||||||||||||
| Interest expense and fees payable |
7,569 | 6,276 | 19,553 | 42,357 | 39,293 | 71,411 | 84,269 | |||||||||||||||||||||
| Variation margin payable |
— | 3,163 | — | — | — | — | — | |||||||||||||||||||||
| Other accrued expenses payable |
13,319 | 62,602 | 60,151 | 121,185 | 97,835 | 352,276 | 170,169 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Total accrued liabilities |
1,466,272 | 10,262,401 | 2,925,340 | 10,984,507 | 5,101,776 | 22,855,575 | 6,342,543 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Other Liabilities | ||||||||||||||||||||||||||||
| TOB trust certificates |
19,340,052 | 20,608,872 | 39,996,660 | 117,377,482 | 93,381,521 | 134,552,822 | 197,793,067 | |||||||||||||||||||||
| VRDP Shares, at liquidation value of $100,000 per share3,4 |
17,800,000 | — | — | — | — | 274,600,000 | — | |||||||||||||||||||||
| VMTP Shares, at liquidation value of $100, 000 per share3,4 |
— | 79,900,000 | 42,200,000 | 137,200,000 | 151,300,000 | — | 243,800,000 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Total other liabilities |
37,140,052 | 100,508,872 | 82,196,660 | 254,577,482 | 244,681,521 | 409,152,822 | 441,593,067 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Total liabilities |
38,606,324 | 110,771,273 | 85,122,000 | 265,561,989 | 249,783,297 | 432,008,397 | 447,935,610 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Net Assets Applicable to Common Shareholders |
$ | 56,992,021 | $ | 178,475,111 | $ | 146,070,735 | $ | 428,223,690 | $ | 380,649,020 | $ | 609,683,024 | $ | 686,098,861 | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Net Assets Applicable to Common Shareholders Consist of | ||||||||||||||||||||||||||||
| Paid-in capital5,6,7 |
$ | 47,292,251 | $ | 149,453,805 | $ | 124,132,737 | $ | 374,839,871 | $ | 332,425,167 | $ | 525,957,690 | $ | 580,398,778 | ||||||||||||||
| Undistributed net investment income |
682,165 | 2,802,295 | 1,415,473 | 6,197,240 | 6,411,182 | 6,586,094 | 12,558,048 | |||||||||||||||||||||
| Undistributed net realized gain (accumulated net realized loss) |
(1,442,043 | ) | 921,345 | 117,822 | (16,083,633 | ) | (11,286,680 | ) | (13,372,754 | ) | (27,448,533 | ) | ||||||||||||||||
| Net unrealized appreciation/ depreciation |
10,459,648 | 25,297,666 | 20,404,703 | 63,270,212 | 53,099,351 | 90,511,994 | 120,590,568 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Net Assets Applicable to Common Shareholders |
$ | 56,992,021 | $ | 178,475,111 | $ | 146,070,735 | $ | 428,223,690 | $ | 380,649,020 | $ | 609,683,024 | $ | 686 098,861 | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Net asset value per Common Share |
$ | 17.07 | $ | 16.98 | $ | 16.69 | $ | 16.22 | $ | 16.25 | $ | 16.13 | $ | 10.75 | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| 1 Investments at cost — unaffiliated |
$ | 82,732,308 | $ | 253,103,120 | $ | 207,378,812 | $ | 609,090,910 | $ | 565,333,680 | $ | 916,079,143 | $ | 979,320,391 | ||||||||||||||
| 2 Investments at cost — affiliated |
$ | 1,154,435 | $ | 3,101,522 | $ | 637,888 | $ | 8,659,864 | $ | 4,716,948 | $ | 12,331,647 | $ | 20,213,428 | ||||||||||||||
| 3 VRDP/VMTP Shares outstanding: |
||||||||||||||||||||||||||||
| Par value $0.001 per share |
178 | 799 | 422 | 1,372 | 1,513 | — | — | |||||||||||||||||||||
| Par value $0.10 per share |
— | — | — | — | — | 2,746 | 2,438 | |||||||||||||||||||||
| 4 Preferred Shares authorized, including Auction Market Preferred Shares (“AMPS”) |
unlimited | unlimited | unlimited | unlimited | unlimited | 1 million | 10 million | |||||||||||||||||||||
| 5 Common Shares outstanding |
3,338,684 | 10,509,162 | 8,749,418 | 26,406,273 | 23,425,489 | 37,807,776 | 63,838,996 | |||||||||||||||||||||
| 6 Par value per Common Share |
$ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.10 | $ | 0.10 | ||||||||||||||
| 7 Common Shares authorized |
unlimited | unlimited | unlimited | unlimited | unlimited | unlimited | 150 million | |||||||||||||||||||||
| See Notes to Financial Statements. | ||||||
| 56 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | ||||
Table of Contents
| Statements of Operations |
| Six Months Ended February 28, 2013 (Unaudited) | BlackRock Municipal Bond Investment Trust (BIE) |
BlackRock Municipal Bond Trust (BBK) |
BlackRock Municipal Income Investment Quality Trust (BAF) |
BlackRock Municipal Income Quality Trust (BYM) |
BlackRock Municipal Income Trust II (BLE) |
BlackRock MuniHoldings Investment Quality Fund (MFL) |
BlackRock MuniVest Fund, Inc. (MVF) |
|||||||||||||||||||||
| Investment Income | ||||||||||||||||||||||||||||
| Interest |
$ | 2,037,411 | $ | 6,576,022 | $ | 4,621,882 | $ | 15,107,567 | $ | 14,268,064 | $ | 21,231,019 | $ | 26,671,121 | ||||||||||||||
| Income — affiliated |
94 | 340 | 176 | 412 | 467 | 1,163 | 875 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Total income |
2,037,505 | 6,576,362 | 4,622,058 | 15,107,979 | 14,268,531 | 21,232,182 | 26,671,996 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||
| Investment advisory |
302,211 | 882,320 | 619,203 | 1,837,237 | 1,699,745 | 2,778,011 | 2,798,181 | |||||||||||||||||||||
| Liquidity fees |
77,553 | — | — | — | — | 970,835 | — | |||||||||||||||||||||
| Professional |
37,132 | 37,641 | 38,982 | 47,372 | 43,993 | 57,661 | 58,504 | |||||||||||||||||||||
| Accounting services |
13,257 | 29,756 | 24,706 | 36,989 | 37,963 | 73,602 | 80,370 | |||||||||||||||||||||
| Officer and Trustees |
4,068 | 12,797 | 10,397 | 25,038 | 21,094 | 41,329 | 50,446 | |||||||||||||||||||||
| Remarketing fees on Preferred Shares |
8,948 | — | — | — | — | 136,172 | — | |||||||||||||||||||||
| Transfer agent |
9,619 | 11,013 | 12,497 | 14,795 | 13,993 | 21,130 | 28,752 | |||||||||||||||||||||
| Custodian |
5,148 | 9,649 | 7,120 | 16,076 | 15,666 | 21,446 | 21,128 | |||||||||||||||||||||
| Printing |
5,340 | 7,400 | 5,676 | 7,435 | 7,728 | 7,281 | 7,715 | |||||||||||||||||||||
| Registration |
4,521 | 4,702 | 4,513 | 4,694 | 5,064 | 6,291 | 13,847 | |||||||||||||||||||||
| Miscellaneous |
17,154 | 16,289 | 15,171 | 23,700 | 21,586 | 28,536 | 33,599 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Total expenses excluding interest expense, fees and amortization of offering costs |
484,951 | 1,011,567 | 738,265 | 2,013,336 | 1,866,832 | 4,142,294 | 3,092,542 | |||||||||||||||||||||
| Interest expense, fees and amortization of offering costs1 |
100,545 | 579,546 | 406,947 | 1,202,505 | 1,240,684 | 1,001,940 | 2,156,809 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Total expenses |
585,496 | 1,591,113 | 1,145,212 | 3,215,841 | 3,107,516 | 5,144,234 | 5,249,351 | |||||||||||||||||||||
| Less fees waived by Manager |
(37,525 | ) | (958 | ) | (601 | ) | (1,376 | ) | (1,807 | ) | (216,352 | ) | (3,131 | ) | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Total expenses after fees waived |
547,971 | 1,590,155 | 1,144,611 | 3,214,465 | 3,105,709 | 4,927,882 | 5,246,220 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Net investment income |
1,489,534 | 4,986,207 | 3,477,447 | 11,893,514 | 11,162,822 | 16,304,300 | 21,425,776 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Realized and Unrealized Gain (Loss) | ||||||||||||||||||||||||||||
| Net realized gain (loss) from: | ||||||||||||||||||||||||||||
| Investments |
379,657 | 1,937,176 | 1,133,141 | 1,991,507 | 1,465,382 | 8,549,746 | 1,382,536 | |||||||||||||||||||||
| Financial futures contracts |
— | (44,756 | ) | — | (162,937 | ) | — | — | — | |||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| 379,657 | 1,892,420 | 1,133,141 | 1,828,570 | 1,465,382 | 8,549,746 | 1,382,536 | ||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Net change in unrealized appreciation/depreciation on: | ||||||||||||||||||||||||||||
| Investments |
348,347 | 1,896,111 | 462,452 | 1,570,696 | 3,004,254 | (1,349,260 | ) | 4,281,790 | ||||||||||||||||||||
| Financial futures contracts |
— | (1,409 | ) | — | — | — | — | — | ||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| 348,347 | 1,894,702 | 462,452 | 1,570,696 | 3,004,254 | (1,349,260 | ) | 4,281,790 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Total realized and unrealized gain |
728,004 | 3,787,122 | 1,595,593 | 3,399,266 | 4,469,636 | 7,200,486 | 5,664,326 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations |
$ | 2,217,538 | $ | 8,773,329 | $ | 5,073,040 | $ | 15,292,780 | $ | 15,632,458 | $ | 23,504,786 | $ | 27,090,102 | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| 1 Related to TOBs, VRDP Shares and/or VMTP Shares. |
|
|||||||||||||||||||||||||||
| See Notes to Financial Statements. | ||||||
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 57 | ||||
Table of Contents
| Statements of Changes in Net Assets |
| BlackRock Municipal
Bond Investment Trust (BIE) |
BlackRock Municipal Bond Trust (BBK) |
|||||||||||||||||
| Increase (Decrease) in Net Assets Applicable to Common Shareholders: | Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, 2012 |
Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, 2012 |
||||||||||||||
| Operations | ||||||||||||||||||
| Net investment income |
$ | 1,489,534 | $ | 3,054,451 | $ | 4,986,207 | $ | 10,548,583 | ||||||||||
| Net realized gain |
379,657 | 1,321,542 | 1,892,420 | 3,355,408 | ||||||||||||||
| Net change in unrealized appreciation/depreciation |
348,347 | 6,218,132 | 1,894,702 | 21,519,646 | ||||||||||||||
| Dividends to AMPS shareholders from net investment income |
— | (4,325 | ) | — | (62,496 | ) | ||||||||||||
|
|
|
|
|
|||||||||||||||
| Net increase in net assets applicable to Common Shareholders resulting from operations |
2,217,538 | 10,589,800 | 8,773,329 | 35,361,141 | ||||||||||||||
|
|
|
|
|
|||||||||||||||
| Dividends and Distributions to Common Shareholders From | ||||||||||||||||||
| Net investment income |
(1,572,333 | ) | (3,243,174 | )1 | (5,285,104 | ) | (11,124,545 | )1 | ||||||||||
| Net realized gain |
— | — | (1,455,701 | ) | — | |||||||||||||
|
|
|
|
|
|||||||||||||||
| Decrease in net assets resulting from dividend and distributions to shareholders |
(1,572,333 | ) | (3,243,174 | ) | (6,740,805 | ) | (11,124,545 | ) | ||||||||||
|
|
|
|
|
|||||||||||||||
| Capital Share Transactions | ||||||||||||||||||
| Reinvestment of common dividends |
16,132 | 42,858 | 227,002 | 507,794 | ||||||||||||||
|
|
|
|
|
|||||||||||||||
| Net Assets Applicable to Common Shareholders | ||||||||||||||||||
| Total increase in net assets applicable to Common Shareholders |
661,337 | 7,389,484 | 2,259,526 | 24,744,390 | ||||||||||||||
| Beginning of period |
56,330,684 | 48,941,200 | 176,215,585 | 151,471,195 | ||||||||||||||
|
|
|
|
|
|||||||||||||||
| End of period |
$ | 56,992,021 | $ | 56,330,684 | $ | 178,475,111 | $ | 176,215,585 | ||||||||||
|
|
|
|
|
|||||||||||||||
| Undistributed net investment income |
$ | 682,165 | $ | 764,964 | $ | 2,802,295 | $ | 3,101,192 | ||||||||||
|
|
|
|
|
|||||||||||||||
| BlackRock Municipal
Income Investment Quality Trust (BAF) |
BlackRock Municipal Income Quality Trust (BYM) |
|||||||||||||||||
| Increase (Decrease) in Net Assets Applicable to Common Shareholders: | Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, |
Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, |
||||||||||||||
| Operations | ||||||||||||||||||
| Net investment income |
$ | 3,477,447 | $ | 7,237,075 | $ | 11,893,514 | $ | 24,473,199 | ||||||||||
| Net realized gain |
1,133,141 | 5,422,236 | 1,828,570 | (64,308 | ) | |||||||||||||
| Net change in unrealized appreciation/depreciation |
462,452 | 12,870,664 | 1,570,696 | 53,327,603 | ||||||||||||||
| Dividends to AMPS shareholders from net investment income |
— | (33,384 | ) | — | (107,278 | ) | ||||||||||||
|
|
|
|
|
|||||||||||||||
| Net increase in net assets applicable to Common Shareholders resulting from operations |
5,073,040 | 25,496,591 | 15,292,780 | 77,629,216 | ||||||||||||||
|
|
|
|
|
|||||||||||||||
| Dividends to Common Shareholders From | ||||||||||||||||||
| Net investment income |
(3,630,591 | ) | (7,765,376 | )2 | (12,352,227 | ) | (24,509,724 | )2 | ||||||||||
|
|
|
|
|
|||||||||||||||
| Capital Share Transactions | ||||||||||||||||||
| Reinvestment of common dividends |
41,052 | 73,423 | 498,569 | 650,769 | ||||||||||||||
|
|
|
|
|
|||||||||||||||
| Net Assets Applicable to Common Shareholders | ||||||||||||||||||
| Total increase in net assets applicable to Common Shareholders |
1,483,501 | 17,804,638 | 3,439,122 | 53,770,261 | ||||||||||||||
| Beginning of period |
144,587,234 | 126,782,596 | 424,784,568 | 371,014,307 | ||||||||||||||
|
|
|
|
|
|||||||||||||||
| End of period |
$ | 146,070,735 | $ | 144,587,234 | $ | 428,223,690 | $ | 424,784,568 | ||||||||||
|
|
|
|
|
|||||||||||||||
| Undistributed net investment income |
$ | 1,415,473 | $ | 1,568,617 | $ | 6,197,240 | $ | 6,655,953 | ||||||||||
|
|
|
|
|
|||||||||||||||
| 1 Dividends and distributions are determined in accordance with federal income tax regulations. |
|
|||||||||||||||||
| 2 Dividends are determined in accordance with federal income tax regulations. |
||||||||||||||||||
| See Notes to Financial Statements. | ||||||
| 58 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | ||||
Table of Contents
| Statements of Changes in Net Assets |
| BlackRock Municipal Income Trust II (BLE) |
BlackRock MuniHoldings Investment Quality Fund (MFL) |
|||||||||||||||||
| Increase (Decrease) in Net Assets Applicable to Common Shareholders: | Six Months Ended February 28, |
Year Ended August 31, |
Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, |
||||||||||||||
| Operations | ||||||||||||||||||
| Net investment income |
$ | 11,162,822 | $ | 23,750,159 | $ | 16,304,300 | $ | 32,635,541 | ||||||||||
| Net realized gain |
1,465,382 | 5,292,283 | 8,549,746 | 20,616,300 | ||||||||||||||
| Net change in unrealized appreciation/depreciation |
3,004,254 | 44,778,410 | (1,349,260 | ) | 55,301,830 | |||||||||||||
| Dividends to AMPS shareholders from net investment income |
— | (117,936 | ) | — | — | |||||||||||||
|
|
|
|
|
|||||||||||||||
| Net increase in net assets applicable to Common Shareholders resulting from operations |
15,632,458 | 73,702,916 | 23,504,786 | 108,553,671 | ||||||||||||||
|
|
|
|
|
|||||||||||||||
| Dividends to Shareholders From | ||||||||||||||||||
| Net investment income |
(12,143,390 | ) | (23,633,307 | )1 | (17,345,280 | ) | (34,641,859 | )1 | ||||||||||
|
|
|
|
|
|||||||||||||||
| Capital Share Transactions | ||||||||||||||||||
| Reinvestment of common dividends |
385,589 | 991,824 | 743,537 | 695,306 | ||||||||||||||
|
|
|
|
|
|||||||||||||||
| Net Assets Applicable to Common Shareholders | ||||||||||||||||||
| Total increase in net assets applicable to Common Shareholders |
3,874,657 | 51,061,433 | 6,903,043 | 74,607,118 | ||||||||||||||
| Beginning of period |
376,774,363 | 325,712,930 | 602,779,981 | 528,172,863 | ||||||||||||||
|
|
|
|
|
|||||||||||||||
| End of period |
$ | 380,649,020 | $ | 376,774,363 | $ | 609,683,024 | $ | 602,779,981 | ||||||||||
|
|
|
|
|
|||||||||||||||
| Undistributed net investment income |
$ | 6,411,182 | $ | 7,391,750 | $ | 6,586,094 | $ | 7,627,074 | ||||||||||
|
|
|
|
|
|||||||||||||||
| BlackRock MuniVest Fund, Inc. (MVF) |
||||||||
| Increase (Decrease) in Net Assets Applicable to Common Shareholders: | Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, |
||||||
| Operations | ||||||||
| Net investment income |
$ | 21,425,776 | $ | 43,656,881 | ||||
| Net realized gain (loss) |
1,382,536 | (673,453 | ) | |||||
| Net change in unrealized appreciation/depreciation |
4,281,790 | 73,804,188 | ||||||
| Dividends to AMPS shareholders from net investment income |
— | (329,136 | ) | |||||
|
|
|
|||||||
| Net increase in net assets applicable to Common Shareholders resulting from operations: |
27,090,102 | 116,458,480 | ||||||
|
|
|
|||||||
| Dividends to Common Shareholders From | ||||||||
| Net investment income |
(22,567,336 | ) | (44,898,307 | )1 | ||||
|
|
|
|||||||
| Capital Share Transactions | ||||||||
| Reinvestment of common dividends |
2,368,807 | 5,413,084 | ||||||
|
|
|
|||||||
| Net Assets Applicable to Common Shareholders | ||||||||
| Total increase in net assets applicable to Common Shareholders |
6,891,573 | 76,973,257 | ||||||
| Beginning of period |
679,207,288 | 602,234,031 | ||||||
|
|
|
|||||||
| End of period |
$ | 686,098,861 | $ | 679,207,288 | ||||
|
|
|
|||||||
| Undistributed net investment income |
$ | 12,558,048 | $ | 13,699,608 | ||||
|
|
|
|||||||
| 1 Dividends are determined in accordance with federal income tax regulations. |
||||||||
| See Notes to Financial Statements. | ||||||
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 59 | ||||
Table of Contents
| Statements of Cash Flows |
| Six Months Ended February 28, 2013 (Unaudited) | BlackRock Municipal Bond Investment Trust (BIE) |
BlackRock Municipal Bond Trust (BBK) |
BlackRock Municipal Income Investment Quality Trust (BAF) |
BlackRock Municipal Income Quality Trust (BYM) |
BlackRock Municipal Income Trust II (BLE) |
BlackRock (MFL) |
BlackRock MuniVest Fund, Inc (MVF) |
|||||||||||||||||||||
| Cash Provided by Operating Activities | ||||||||||||||||||||||||||||
| Net increase in net assets resulting from operations |
$ | 2,217,538 | $ | 8,773,329 | $ | 5,073,040 | $ | 15,292,780 | $ | 15,632,458 | $ | 23,504,786 | $ | 27,090,102 | ||||||||||||||
| Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: |
||||||||||||||||||||||||||||
| (Increase) decrease in interest receivable |
(98,647 | ) | 101,129 | (305,880 | ) | (265,662 | ) | (213,337 | ) | (924,435 | ) | 241,059 | ||||||||||||||||
| Increase in cash pledged as collateral for financial futures contracts |
— | (66,000 | ) | — | — | — | — | — | ||||||||||||||||||||
| Increase in prepaid expenses |
(34,662 | ) | (1,559 | ) | (1,561 | ) | (3,999 | ) | (5,653 | ) | (44,192 | ) | (9,752 | ) | ||||||||||||||
| Increase (decrease) in investment advisory fees payable |
(3,489 | ) | (11,627 | ) | (7,311 | ) | (24,263 | ) | (21,614 | ) | 38 | (43,005 | ) | |||||||||||||||
| Increase (decrease) in interest expense and fees payable |
996 | 1,015 | 5,353 | (2,486 | ) | (2,621 | ) | 16,449 | (6,702 | ) | ||||||||||||||||||
| Increase (decrease) in other accrued expenses payable |
(26,485 | ) | (6,821 | ) | (2,563 | ) | (15,774 | ) | (15,434 | ) | (26,606 | ) | 34,081 | |||||||||||||||
| Increase (decrease) in Officer’s and Trustees’ fees payable |
1,404 | 2,944 | 3,660 | (1,199 | ) | (2,581 | ) | 25,262 | 3,521 | |||||||||||||||||||
| Increase in variation margin payable |
— | 3,163 | — | — | — | — | — | |||||||||||||||||||||
| Net realized and unrealized gain on investments |
(728,004 | ) | (3,833,287 | ) | (1,595,593 | ) | (3,562,203 | ) | (4,469,636 | ) | (7,200,486 | ) | (5,664,326 | ) | ||||||||||||||
| Amortization of premium and accretion of discount on investments |
150,925 | (883,001 | ) | 503,022 | (1,385,404 | ) | (445,918 | ) | 2,005,883 | 767,624 | ||||||||||||||||||
| Amortization of deferred offering costs |
6,647 | 28,093 | 23,445 | 37,545 | 45,042 | 2,223 | 59,921 | |||||||||||||||||||||
| Proceeds from sales of long-term investments |
8,201,539 | 60,802,930 | 26,444,650 | 66,826,533 | 57,830,151 | 161,970,000 | 63,798,285 | |||||||||||||||||||||
| Purchases of long-term investments |
(8,451,664 | ) | (58,561,998 | ) | (30,486,382 | ) | (68,047,433 | ) | (66,212,921 | ) | (155,157,360 | ) | (51,450,068 | ) | ||||||||||||||
| Net proceeds from sales (purchases) of short-term securities |
(994,758 | ) | (2,517,915 | ) | 470,516 | (4,255,408 | ) | 5,391,526 | (11,244,215 | ) | (13,650,673 | ) | ||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Cash provided by operating activities |
241,340 | 3,830,395 | 124,396 | 4,593,027 | 7,509,462 | 12,927,347 | 21,170,067 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Cash Used for Financing Activities | ||||||||||||||||||||||||||||
| Cash receipts from TOB trust certificates |
754,980 | 2,804,936 | 3,499,965 | 13,591,192 | 7,040,590 | 3,730,122 | — | |||||||||||||||||||||
| Cash payments for TOB trust certificates |
— | — | — | (6,332,957 | ) | (2,534,633 | ) | (500,000 | ) | (1,463,379 | ) | |||||||||||||||||
| Cash dividends paid to Common Shareholders |
(1,566,142 | ) | (6,512,687 | ) | (3,624,361 | ) | (11,851,262 | ) | (11,755,794 | ) | (16,598,229 | ) | (20,185,678 | ) | ||||||||||||||
| Increase in bank overdraft |
— | — | — | — | — | 440,760 | 478,990 | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Cash used for financing activities |
(811,162 | ) | (3,707,751 | ) | (124,396 | ) | (4,593,027 | ) | (7,249,837 | ) | (12,927,347 | ) | (21,170,067 | ) | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Cash | ||||||||||||||||||||||||||||
| Net increase (decrease) in cash |
(569,822 | ) | 122,644 | — | — | 259,625 | — | — | ||||||||||||||||||||
| Cash at beginning of period |
569,822 | — | — | — | — | — | — | |||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Cash at end of period |
— | $ | 122,644 | — | — | $ | 259,625 | — | — | |||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Cash Flow Information | ||||||||||||||||||||||||||||
| Cash paid during the period for interest and fees |
$ | 92,902 | $ | 493,239 | $ | 377,362 | $ | 1,164,886 | $ | 1,202,100 | $ | 977,231 | $ | 2,099,040 | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Non-cash Financing Activities | ||||||||||||||||||||||||||||
| Capital shares issued in reinvestment of dividends paid to Common Shareholders |
$ | 16,132 | $ | 227,002 | $ | 41,052 | $ | 498,569 | $ | 385,589 | $ | 743,537 | $ | 2,368,807 | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| See Notes to Financial Statements. | ||||||
| 60 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | ||||
Table of Contents
| Financial Highlights | BlackRock Municipal Bond Investment Trust (BIE) |
| Six Months Ended (Unaudited) |
Year Ended August 31, | |||||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
| Per Share Operating Performance | ||||||||||||||||||||||||
| Net asset value, beginning of period |
$ | 16.88 | $ | 14.67 | $ | 15.51 | $ | 14.16 | $ | 14.86 | $ | 15.45 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income1 |
0.45 | 0.92 | 1.03 | 1.02 | 1.03 | 1.16 | ||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.21 | 2.26 | (0.89 | ) | 1.27 | (0.76 | ) | (0.51 | ) | |||||||||||||||
| Dividends to AMPS shareholders from net investment income |
— | (0.00 | )2 | (0.02 | ) | (0.02 | ) | (0.13 | ) | (0.30 | ) | |||||||||||||
|
|
|
|||||||||||||||||||||||
| Net increase from investment operations |
0.66 | 3.18 | 0.12 | 2.27 | 0.14 | 0.35 | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to Common Shareholders from net investment income |
(0.47 | ) | (0.97 | )3 | (0.96 | )3 | (0.92 | )3 | (0.84 | )3 | (0.94 | )3 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net asset value, end of period |
$ | 17.07 | $ | 16.88 | $ | 14.67 | $ | 15.51 | $ | 14.16 | $ | 14.86 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Market price, end of period |
$ | 16.83 | $ | 16.61 | $ | 14.22 | $ | 15.60 | $ | 13.20 | $ | 14.28 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Investment Return Applicable to Common Shareholders4 | ||||||||||||||||||||||||
| Based on net asset value |
3.94% | 5 | 22.36% | 1.29% | 16.80% | 2.43% | 2.34% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Based on market price |
4.15% | 5 | 24.21% | (2.38 | )% | 26.02% | (0.64 | )% | (3.95 | )% | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||||||
| Total expenses |
2.07% | 6 | 2.21% | 7 | 1.81% | 7 | 1.57% | 7 | 1.71% | 7 | 1.54% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly |
1.93% | 6 | 2.12% | 7 | 1.66% | 7 | 1.35% | 7 | 1.36% | 7 | 1.13% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs8 |
1.58% | 6,9 | 1.72% | 7,9 | 1.39% | 7 | 1.15% | 7 | 1.25% | 7 | 1.09% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income |
5.26% | 6 | 5.78% | 7 | 7.25% | 7 | 6.92% | 7 | 7.98% | 7 | 7.52% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to AMPS shareholders |
– | 0.01% | 0.13% | 0.15% | 1.01% | 1.99% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income to Common Shareholders |
5.26% | 6 | 5.77% | 7.12% | 6.77% | 6.97% | 5.53% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Supplemental Data | ||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 56,992 | $ | 56,331 | $ | 48,941 | $ | 51,708 | $ | 47,203 | $ | 49,532 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| AMPS outstanding at $25,000 liquidation preference, end of period (000) |
— | — | $ | 17,850 | $ | 17,850 | $ | 17,850 | $ | 26,175 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 17,800 | $ | 17,800 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Portfolio turnover |
9% | 36% | 25% | 47% | 71% | 30% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per AMPS at $25,000 liquidation preference, end of period |
— | — | $ | 93,546 | $ | 97,421 | $ | 91,112 | $ | 72,318 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per VRDP Shares at $100,000 liquidation value, end of period |
$ | 420,180 | $ | 416,465 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| 1 | Based on average Common Shares outstanding. |
| 2 | Amount is greater than $(0.005) per share. |
| 3 | Dividends are determined in accordance with federal income tax regulations. |
| 4 | Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
| 5 | Aggregate total investment return. |
| 6 | Annualized. |
| 7 | Do not reflect the effect of dividends to AMPS shareholders. |
| 8 | Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively. |
| 9 | For the six months ended February 28, 2013 and the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.27% and 1.42%, respectively. |
| See Notes to Financial Statements. | ||||||
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 61 | ||||
Table of Contents
| Financial Highlights | BlackRock Municipal Bond Trust (BBK) |
| Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, | |||||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
| Per Share Operating Performance | ||||||||||||||||||||||||
| Net asset value, beginning of period |
$ | 16.79 | $ | 14.48 | $ | 15.29 | $ | 13.23 | $ | 13.96 | $ | 15.57 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income1 |
0.48 | 1.01 | 1.14 | 1.14 | 1.14 | 1.23 | ||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.36 | 2.37 | (0.87 | ) | 1.97 | (0.83 | ) | (1.48 | ) | |||||||||||||||
| Dividends and distributions to AMPS shareholders from: | ||||||||||||||||||||||||
| Net investment income |
(0.01 | ) | (0.01 | ) | (0.03 | ) | (0.03 | ) | (0.13 | ) | (0.28 | ) | ||||||||||||
| Net realized gain |
— | — | — | — | — | (0.03 | ) | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Net increase (decrease) from investment operations |
0.83 | 3.37 | 0.24 | 3.08 | 0.18 | (0.56 | ) | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends and distributions to Common Shareholders from: | ||||||||||||||||||||||||
| Net investment income |
(0.50 | ) | (1.06 | )2 | (1.05 | )2 | (1.02 | )2 | (0.91 | )2 | (0.95 | )2 | ||||||||||||
| Net realized gain |
(0.14 | ) | — | — | — | — | (0.10 | )2 | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Total dividends and distributions to Common Shareholders |
(0.64 | ) | (1.06 | ) | (1.05 | ) | (1.02 | ) | (0.91 | ) | (1.05 | ) | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net asset value, end of period |
$ | 16.98 | $ | 16.79 | $ | 14.48 | $ | 15.29 | $ | 13.23 | $ | 13.96 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Market price, end of period |
$ | 17.35 | $ | 17.16 | $ | 14.86 | $ | 15.79 | $ | 13.80 | $ | 13.89 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||||||
| Based on net asset value |
5.01% | 4 | 23.96% | 2.02% | 24.13% | 2.52% | (3.77)% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Based on market price |
4.98% | 4 | 23.45% | 1.38% | 22.90% | 7.48% | (9.65)% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Ratio to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||||||
| Total expenses |
1.80% | 5 | 1.69% | 6 | 1.33% | 6 | 1.29% | 6 | 1.51% | 6 | 1.39% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly |
1.80% | 5 | 1.64% | 6 | 1.19% | 6 | 1.08% | 6 | 1.19% | 6 | 1.01% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7 |
1.14% | 5 | 1.18% | 6,8 | 1.16% | 6 | 1.05% | 6 | 1.10% | 6 | 0.98% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income |
5.69% | 5 | 6.39% | 6 | 8.15% | 6 | 8.08% | 6 | 9.67% | 6 | 8.25% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to AMPS shareholders |
— | 0.04% | 0.19% | 0.22% | 1.11% | 1.87% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income to Common Shareholders |
5.69% | 5 | 6.35% | 7.96% | 7.86% | 8.56% | 6.38% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Supplemental Data | ||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 178,475 | $ | 176,216 | $ | 151,471 | $ | 159,216 | $ | 137,030 | $ | 144,116 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| AMPS outstanding at $25,000 liquidation preference, end of year (000) |
— | — | $ | 79,900 | $ | 79,900 | $ | 79,900 | $ | 80,500 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 79,900 | $ | 79,900 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Portfolio turnover |
20% | 46% | 27% | 51% | 46% | 27% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per AMPS at $25,000 liquidation preference, end of period |
— | — | $ | 72,394 | $ | 74,819 | $ | 67,877 | $ | 69,766 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |
$ | 323,373 | $ | 320,545 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| 1 | Based on average Common Shares outstanding. |
| 2 | Dividends and distributions are determined in accordance with federal income tax regulations. |
| 3 | Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
| 4 | Aggregate total investment return. |
| 5 | Annualized. |
| 6 | Do not reflect the effect of dividends to AMPS shareholders. |
| 7 | Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively. |
| 8 | For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.16%. |
| See Notes to Financial Statements. | ||||||
| 62 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | ||||
Table of Contents
| Financial Highlights | BlackRock Municipal Income Investment Quality Trust (BAF) |
| Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, | |||||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
| Per Share Operating Performance | ||||||||||||||||||||||||
| Net asset value, beginning of period |
$ | 16.53 | $ | 14.50 | $ | 15.08 | $ | 14.06 | $ | 14.23 | $ | 14.68 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income1 |
0.40 | 0.83 | 0.91 | 0.94 | 0.91 | 0.99 | ||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.18 | 2.09 | (0.58 | ) | 0.95 | (0.27 | ) | (0.46 | ) | |||||||||||||||
| Dividends to AMPS shareholders from net investment income |
— | (0.00 | )2 | (0.02 | ) | (0.02 | ) | (0.09 | ) | (0.28 | ) | |||||||||||||
|
|
|
|||||||||||||||||||||||
| Net increase from investment operations |
0.58 | 2.92 | 0.31 | 1.87 | 0.55 | 0.25 | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to Common Shareholders from net investment income |
(0.42 | ) | (0.89 | )3 | (0.89 | )3 | (0.85 | )3 | (0.72 | )3 | (0.70 | )3 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net asset value, end of period |
$ | 16.69 | $ | 16.53 | $ | 14.50 | $ | 15.08 | $ | 14.06 | $ | 14.23 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Market price, end of period |
$ | 16.29 | $ | 16.24 | $ | 13.92 | $ | 15.64 | $ | 13.01 | $ | 12.42 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Investment Return Applicable to Common Shareholders4 | ||||||||||||||||||||||||
| Based on net asset value |
3.50% | 5 | 20.76% | 2.62% | 13.93% | 5.36% | 2.22% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Based on market price |
2.83% | 5 | 23.59% | (5.01 | )% | 27.70% | 11.70% | (3.35 | )% | |||||||||||||||
|
|
|
|||||||||||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||||||
| Total expenses |
1.58% | 6 | 1.49% | 7 | 1.25% | 7 | 1.23% | 7 | 1.60% | 7 | 1.33% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly |
1.57% | 6 | 1.49% | 7 | 1.23% | 7 | 1.14% | 7 | 1.40% | 7 | 1.05% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering cost8 |
1.01% | 6 | 1.06% | 7,9 | 1.09% | 7 | 0.97% | 7 | 0.98% | 7 | 0.91% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income |
4.78% | 6 | 5.31% | 7 | 6.51% | 7 | 6.54% | 7 | 7.04% | 7 | 6.71% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to AMPS shareholders |
— | 0.02% | 0.12% | 0.14% | 0.66% | 1.92% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income to Common Shareholders |
4.78% | 6 | 5.29% | 6.39% | 6.40% | 6.38% | 4.79% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Supplemental Data | ||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 146,071 | $ | 144,587 | $ | 126,783 | $ | 131,772 | $ | 122,825 | $ | 124,305 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| AMPS outstanding at $25,000 liquidation preference, end of period (000) |
— | — | $ | 42,275 | $ | 42,275 | $ | 42,275 | $ | 44,375 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 42,200 | $ | 42,200 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Portfolio turnover |
12% | 51% | 33% | 26% | 45% | 29% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per AMPS at $25,000 liquidation preference, end of period |
— | — | $ | 99,975 | $ | 102,926 | $ | 97,637 | $ | 95,044 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |
$ | 446,139 | $ | 442,624 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| 1 | Based on average Common Shares outstanding. |
| 2 | Amount is greater than $(0.005) per share. |
| 3 | Dividends are determined in accordance with federal income tax regulations. |
| 4 | Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
| 5 | Aggregate total investment return. |
| 6 | Annualized. |
| 7 | Do not reflect the effect of dividends to AMPS shareholders. |
| 8 | Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively. |
| 9 | For the year ended August 31, 2012, the total expense ratios after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.05%. |
| See Notes to Financial Statements. | ||||||
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 63 | ||||
Table of Contents
| Financial Highlights | BlackRock Municipal Income Quality Trust (BYM) |
| Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, | |||||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
| Per Share Operating Performance | ||||||||||||||||||||||||
| Net asset value, beginning of period |
$ | 16.11 | $ | 14.09 | $ | 14.64 | $ | 13.55 | $ | 14.04 | $ | 14.82 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income1 |
0.45 | 0.93 | 0.97 | 0.96 | 0.91 | 1.04 | ||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.13 | 2.02 | (0.58 | ) | 1.00 | (0.55 | ) | (0.83 | ) | |||||||||||||||
| Dividends to AMPS shareholders from net investment income |
— | (0.00 | )2 | (0.02 | ) | (0.02 | ) | (0.10 | ) | (0.26 | ) | |||||||||||||
|
|
|
|||||||||||||||||||||||
| Net increase (decrease) from investment operations |
0.58 | 2.95 | 0.37 | 1.94 | 0.26 | (0.05 | ) | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to Common Shareholders from net investment income |
(0.47 | ) | (0.93 | )3 | (0.92 | )3 | (0.85 | )3 | (0.75 | )3 | (0.73 | )3 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net asset value, end of period |
$ | 16.22 | $ | 16.11 | $ | 14.09 | $ | 14.64 | $ | 13.55 | $ | 14.04 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Market price, end of period |
$ | 16.04 | $ | 16.73 | $ | 13.85 | $ | 15.26 | $ | 13.69 | $ | 13.19 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Investment Return Applicable to Common Shareholders4 | ||||||||||||||||||||||||
| Based on net asset value |
3.62% | 5 | 21.54% | 3.09% | 14.74% | 2.83% | (0.16 | )% | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Based on market price |
(1.32)% | 5 | 28.40% | (2.79 | )% | 18.42% | 10.58% | (3.13 | )% | |||||||||||||||
|
|
|
|||||||||||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||||||
| Total expenses |
1.52% | 6 | 1.46% | 7 | 1.25% | 7 | 1.15% | 7 | 1.38% | 7 | 1.24% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly |
1.51% | 6 | 1.46% | 7 | 1.24% | 7 | 1.06% | 7 | 1.20% | 7 | 0.98% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs8 |
0.95% | 6 | 1.00% | 7,9 | 1.07% | 7 | 0.92% | 7 | 0.93% | 7 | 0.86% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income |
5.60% | 6 | 6.12% | 7 | 7.15% | 7 | 6.85% | 7 | 7.23% | 7 | 7.08% | 7 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to AMPS shareholders |
— | 0.03% | 0.14% | 0.15% | 0.76% | 1.80% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income to Common Shareholders |
5.60% | 6 | 6.09% | 7.01% | 6.70% | 6.47% | 5.28% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Supplemental Data | ||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 428,224 | $ | 424,785 | $ | 371,014 | $ | 384,563 | $ | 355,334 | $ | 368,133 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| AMPS outstanding at $25,000 liquidation preference, end of period (000) |
— | — | $ | 137,250 | $ | 137,250 | $ | 137,250 | $ | 149,925 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 137,200 | $ | 137,200 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Portfolio turnover |
11% | 17% | 19% | 13% | 18% | 39% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per AMPS at $25,000 liquidation preference, end of period |
— | — | $ | 92,580 | $ | 95,049 | $ | 89,725 | $ | 86,398 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |
$ | 412,116 | $ | 409,610 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| 1 | Based on average Common Shares outstanding. |
| 2 | Amount is greater than $(0.005) per share. |
| 3 | Dividends are determined in accordance with federal income tax regulations. |
| 4 | Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
| 5 | Aggregate total investment return. |
| 6 | Annualized. |
| 7 | Do not reflect the effect of dividends to AMPS shareholders. |
| 8 | Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively. |
| 9 | For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering cost, liquidity and remarketing fees was 0.99%. |
| See Notes to Financial Statements. | ||||||
| 64 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | ||||
Table of Contents
| Financial Highlights | BlackRock Municipal Income Trust II (BLE) |
| Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, | |||||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
| Per Share Operating Performance | ||||||||||||||||||||||||
| Net asset value, beginning of period |
$ | 16.10 | $ | 13.96 | $ | 14.63 | $ | 12.78 | $ | 13.60 | $ | 15.08 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income1 |
0.48 | 1.02 | 1.08 | 1.08 | 1.09 | 1.17 | ||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.19 | 2.14 | (0.73 | ) | 1.77 | (0.95 | ) | (1.50 | ) | |||||||||||||||
| Dividends to AMPS shareholders from net investment income |
— | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.12 | ) | (0.30 | ) | |||||||||||||
|
|
|
|||||||||||||||||||||||
| Net increase (decrease) from investment operations |
0.67 | 3.15 | 0.33 | 2.82 | 0.02 | (0.63 | ) | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to Common Shareholders from net investment income |
(0.52 | ) | (1.01 | )2 | (1.00 | )2 | (0.97 | )2 | (0.84 | )2 | (0.85 | )2 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net asset value, end of period |
$ | 16.25 | $ | 16.10 | $ | 13.96 | $ | 14.63 | $ | 12.78 | $ | 13.60 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Market price, end of period |
$ | 16.59 | $ | 16.74 | $ | 14.13 | $ | 15.22 | $ | 13.45 | $ | 13.27 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||||||
| Based on net asset value |
4.17% | 4 | 23.25% | 2.70% | 22.83% | 1.54% | (4.15 | )% | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Based on market price |
2.29% | 4 | 26.61% | (0.07 | )% | 21.42% | 9.52% | (6.29 | )% | |||||||||||||||
|
|
|
|||||||||||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||||||
| Total expenses |
1.65% | 5 | 1.55% | 6 | 1.18% | 6 | 1.16% | 6 | 1.36% | 6 | 1.24% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly |
1.64% | 5 | 1.48% | 6 | 1.10% | 6 | 1.08% | 6 | 1.19% | 6 | 1.07% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7 |
0.99% | 5 | 0.96% | 6,8 | 1.01% | 6 | 0.99% | 6 | 1.05% | 6 | 1.00% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income |
5.91% | 5 | 6.74% | 6 | 7.94% | 6 | 7.89% | 6 | 9.69% | 6 | 8.09% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to AMPS shareholders |
— | 0.03% | 0.17% | 0.20% | 1.07% | 2.04% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income to Common Shareholders |
5.91% | 5 | 6.71% | 7.77% | 7.69% | 8.62% | 6.05% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Supplemental Data | ||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 380,649 | $ | 376,774 | $ | 325,713 | $ | 340,269 | $ | 296,070 | $ | 314,889 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| AMPS outstanding at $25,000 liquidation preference, end of period (000) |
— | — | $ | 151,300 | $ | 151,300 | $ | 151,300 | $ | 166,050 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 151,300 | $ | 151,300 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Portfolio turnover |
6% | 24% | 16% | 29% | 19% | 21% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per AMPS at $25,000 liquidation preference, end of period |
— | — | $ | 78,819 | $ | 81,226 | $ | 73,923 | $ | 72,419 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |
$ | 351,586 | $ | 349,025 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| 1 | Based on average Common Shares outstanding. |
| 2 | Dividends are determined in accordance with federal income tax regulations. |
| 3 | Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
| 4 | Aggregate total investment return. |
| 5 | Annualized. |
| 6 | Do not reflect the effect of dividends to AMPS shareholders. |
| 7 | Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively. |
| 8 | For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.94%. |
| See Notes to Financial Statements. | ||||||
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 65 | ||||
Table of Contents
| Financial Highlights | BlackRock MuniHoldings Investment Quality Fund (MFL) |
| Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, | |||||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
| Per Share Operating Performance | ||||||||||||||||||||||||
| Net asset value, beginning of period |
$ | 15.96 | $ | 14.00 | $ | 14.69 | $ | 13.57 | $ | 13.50 | $ | 14.09 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income1 |
0.43 | 0.86 | 0.95 | 0.96 | 0.94 | 1.01 | ||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.20 | 2.02 | (0.71 | ) | 1.04 | (0.03 | ) | (0.61 | ) | |||||||||||||||
| Dividends to AMPS shareholders from net investment income |
— | — | (0.02 | ) | (0.03 | ) | (0.13 | ) | (0.32 | ) | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| Net increase from investment operations |
0.63 | 2.88 | 0.22 | 1.97 | 0.78 | 0.08 | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to Common Shareholders from net investment income |
(0.46 | ) | (0.92 | )2 | (0.91 | )2 | (0.85 | )2 | (0.71 | )2 | (0.67 | )2 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net asset value, end of period |
$ | 16.13 | $ | 15.96 | $ | 14.00 | $ | 14.69 | $ | 13.57 | $ | 13.50 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Market price, end of period |
$ | 15.70 | $ | 16.13 | $ | 13.84 | $ | 14.65 | $ | 12.63 | $ | 11.61 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||||||
| Based on net asset value |
3.97% | 4 | 21.22% | 2.01% | 15.22% | 7.36% | 1.16% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Based on market price |
0.13% | 4 | 23.93% | 1.12% | 23.46% | 16.19% | (4.68 | )% | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||||||
| Total expenses |
1.70% | 5 | 1.87% | 6 | 1.37% | 6 | 1.17% | 6 | 1.32% | 6 | 1.54% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly |
1.63% | 5 | 1.80% | 6 | 1.30% | 6 | 1.09% | 6 | 1.20% | 6 | 1.42% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7 |
1.29% | 5,8 | 1.39% | 6,8 | 1.14% | 6 | 1.01% | 6 | 1.07% | 6 | 1.13% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income |
5.38% | 5 | 5.76% | 6 | 7.03% | 6 | 6.85% | 6 | 7.48% | 6 | 7.23% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to AMPS shareholders |
— | — | 0.18% | 0.21% | 1.05% | 2.31% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income to Common Shareholders |
5.38% | 5 | 5.76% | 6.85% | 6.64% | 6.43% | 4.92% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Supplemental Data | ||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 609,683 | $ | 602,780 | $ | 528,173 | $ | 553,367 | $ | 511,013 | $ | 508,698 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| AMPS outstanding at $25,000 liquidation preference, end of period (000) |
— | — | — | $ | 274,650 | $ | 274,650 | $ | 296,125 | |||||||||||||||
|
|
|
|||||||||||||||||||||||
| VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 274,600 | $ | 274,600 | $ | 274,600 | — | — | — | |||||||||||||||
|
|
|
|||||||||||||||||||||||
| Portfolio turnover |
17% | 44% | 32% | 38% | 40% | 25% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per AMPS at $25,000 liquidation preference, end of period |
— | — | — | $ | 75,371 | $ | 71,516 | $ | 67,958 | |||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per VRDP Shares at $100,000 liquidation value, end of period |
$ | 322,026 | $ | 319,152 | $ | 292,343 | — | — | — | |||||||||||||||
|
|
|
|||||||||||||||||||||||
| 1 | Based on average Common Shares outstanding. |
| 2 | Dividends are determined in accordance with federal income tax regulations. |
| 3 | Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
| 4 | Aggregate total investment return. |
| 5 | Annualized. |
| 6 | Do not reflect the effect of dividends to AMPS shareholders. |
| 7 | Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively. |
| 8 | For the six months ended February 28, 2013 and the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.93% and 0.99%, respectively. |
| See Notes to Financial Statements. | ||||||
| 66 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | ||||
Table of Contents
| Financial Highlights | BlackRock MuniVest Fund, Inc. (MVF) |
| Six Months Ended February 28, 2013 (Unaudited) |
Year Ended August 31, | |||||||||||||||||||||||
| 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||
| Per Share Operating Performance | ||||||||||||||||||||||||
| Net asset value, beginning of period |
$ | 10.68 | $ | 9.55 | $ | 10.01 | $ | 8.98 | $ | 8.91 | $ | 9.39 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income1 |
0.34 | 0.69 | 0.73 | 0.73 | 0.70 | 0.67 | ||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.08 | 1.16 | (0.47 | ) | 0.97 | (0.03 | ) | (0.45 | ) | |||||||||||||||
| Dividends to AMPS shareholders from net investment income |
— | (0.01 | ) | (0.02 | ) | (0.02 | ) | (0.06 | ) | (0.18 | ) | |||||||||||||
|
|
|
|||||||||||||||||||||||
| Net increase from investment operations |
0.42 | 1.84 | 0.24 | 1.68 | 0.61 | 0.04 | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to Common Shareholders from net investment income |
(0.35 | ) | (0.71 | )2 | (0.70 | )2 | (0.65 | )2 | (0.54 | )2 | (0.52 | )2 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net asset value, end of period |
$ | 10.75 | $ | 10.68 | $ | 9.55 | $ | 10.01 | $ | 8.98 | $ | 8.91 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Market price, end of period |
$ | 11.29 | $ | 11.28 | $ | 9.73 | $ | 10.38 | $ | 8.91 | $ | 8.33 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||||||
| Based on net asset value |
3.97% | 4 | 19.85% | 2.90% | 19.31% | 8.18% | 0.51% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Based on market price |
3.39% | 4 | 24.24% | 1.11% | 24.69% | 14.81% | (5.63 | )% | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||||||
| Total expenses |
1.54% | 5 | 1.51% | 6 | 1.28% | 6 | 1.22% | 6 | 1.53% | 6 | 1.58% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly |
1.54% | 5 | 1.51% | 6 | 1.28% | 6 | 1.22% | 6 | 1.50% | 6 | 1.58% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7 |
0.91% | 5 | 0.98% | 6,8 | 1.05% | 6 | 1.03% | 6 | 1.14% | 6 | 1.10% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income |
6.30% | 5 | 6.79% | 6 | 7.93% | 6 | 7.71% | 6 | 8.74% | 6 | 7.34% | 6 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| Dividends to AMPS shareholders |
— | 0.05% | 0.18% | 0.19% | 0.78% | 1.94% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Net investment income to Common Shareholders |
6.30% | 5 | 6.74% | 7.75% | 7.52% | 7.96% | 5.40% | |||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Supplemental Data | ||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 686,099 | $ | 679,207 | $ | 602,234 | $ | 625,195 | $ | 555,889 | $ | 551,027 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| AMPS outstanding at $25,000 liquidation preference, end of period (000) |
— | — | $ | 243,825 | $ | 243,825 | $ | 243,825 | $ | 275,700 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 243,800 | $ | 243,800 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Portfolio turnover |
5% | 11% | 10% | 25% | 31% | 41% | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per AMPS at $25,000 liquidation preference, end of period |
— | — | $ | 86,749 | $ | 89,106 | $ | 81,999 | $ | 74,993 | ||||||||||||||
|
|
|
|||||||||||||||||||||||
| Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |
$ | 381,419 | $ | 378,592 | — | — | — | — | ||||||||||||||||
|
|
|
|||||||||||||||||||||||
| 1 | Based on average shares outstanding. |
| 2 | Dividends are determined in accordance with federal income tax regulations. |
| 3 | Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
| 4 | Aggregate total investment return. |
| 5 | Annualized. |
| 6 | Do not reflect the effect of dividends to AMPS shareholders. |
| 7 | Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 8 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively. |
| 8 | For the year ended August 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 0.96%. |
| See Notes to Financial Statements. | ||||||
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 67 | ||||
Table of Contents
| Notes to Financial Statements (Unaudited) |
1. Organization and Significant Accounting Policies:
BlackRock Municipal Bond Investment Trust (“BIE”) and BlackRock Municipal Bond Trust (“BBK”) (collectively the “Bond Trusts”), BlackRock Municipal Income Investment Quality Trust (“BAF”), BlackRock Municipal Income Quality Trust (“BYM”) and BlackRock Municipal Income Trust II (“BLE”) are organized as Delaware statutory trusts. BlackRock MuniHoldings Investment Quality Fund (“MFL”) and BlackRock MuniVest Fund, Inc. (“MVF”) are organized as a Massachusetts business trust and as a Maryland corporation, respectively. BIE, BBK, BAF, BYM, BLE, MFL and MVF are referred to herein collectively as the “Trusts”. BBK, BYM and BLE are registered under the 1940 Act, as diversified, closed-end management investment companies. BAF, BIE, MFL and MVF 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 (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Boards of Directors and the Boards of Trustees are collectively referred to throughout this report as the “Board of Trustees” or the “Board”, and the directors/trustees thereof are collectively referred to throughout this report as “Trustees.” The Trusts determine and make available for publication the NAV of their Common Shares on a daily basis.
The following is a summary of significant accounting policies followed by the Trusts:
Valuation: US GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determine the fair value of their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Trusts for all financial instruments.
Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.
Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. Over-the-counter (“OTC”) [options and swaptions] are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.
In the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deem relevant consistent with the principles of fair value measurement, which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trusts’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.
Zero-Coupon Bonds: The Trusts may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.
Forward Commitments and When-Issued Delayed Delivery Securities: The Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such
| 68 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Notes to Financial Statements (continued) |
transactions normally occurs within a month or more after the purchase or sale commitment is made. The Trusts may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, the Trusts are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Trusts assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Trusts’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.
Municipal Bonds Transferred to TOBs: The Trusts leverage their assets through the use of TOBs. A TOB is a special purpose entity established by a third party sponsor, into which a fund, or an agent on behalf of a fund, transfers municipal bonds into a trust (“TOB Trust”). Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Trust has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates (“TOB Trust Certificates”), which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. If multiple funds participate in the same TOB, the rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation. The TOB Residuals held by a Trust include the right of a Trust (1) to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates at par plus accrued interest upon the occurrence of certain mandatory tender events defined in the TOB agreements, and (2) to transfer, subject to a specified number of days’ prior notice, a corresponding share of the municipal bonds from the TOB to a Trust. The TOB may also be collapsed without the consent of a Trust, as the TOB Residual holder, upon the occurrence of certain termination events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond and a judgment or ruling that interest on the municipal bond is subject to federal income taxation. Upon the occurrence of a Termination Event, the TOB would generally be liquidated in full with the proceeds typically applied first to any accrued fees owed to the trustee, remarketing agent and liquidity provider, and then to the holders of the TOB Trust Certificates up to par plus accrued interest owed on the TOB Trust Certificates, with the balance paid out to the TOB Residual holder. During the six months ended February 28, 2013, no TOBs in which the Trusts participated were terminated without the consent of the Trusts.
The cash received by the TOB from the sale of the TOB Trust Certificates, less transaction expenses, is paid to a Trust. The Trust typically invests the cash received in additional municipal bonds. Each Trust’s transfer of the municipal bonds to a TOB Trust is accounted for as a secured borrowing; therefore, the municipal bonds deposited into a TOB are presented in the Trusts’ Schedules of Investments and the TOB Trust Certificates are shown in other liabilities in the Statements of Assets and Liabilities. The carrying amount of the Trusts’ payable to the holder of the TOB Trust Certificates, as reported in Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.
The Trusts may invest in TOBs on either a non-recourse or recourse basis. TOB Trusts are typically supported by a liquidity facility provided by a bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment from the Liquidity Provider of par plus accrued interest on any business day prior to the occurrence of the termination events described above. When a Trust invests in TOBS on a non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event, the Liquidity Provider will typically liquidate all or a portion of the municipal securities held in the TOB Trust and then fund, on a net basis, the balance, if any,) of the amount owed under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Trust invests in a TOB on a recourse basis, the Trust will typically enter into a reimbursement agreement with the Liquidity Provider where the Trust is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a Trust investing in a recourse TOB will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB, these losses will be shared ratably in proportion to their participation. The recourse TOB Trusts, if any, are identified in the Schedule of Investments.
Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. The TOB Trust Certificates have interest rates that generally reset weekly and their holders have the option to tender such certificates to the TOB for redemption at par at each reset date. At February 28, 2013, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for TOB Trust Certificates and the range of interest rates on the liability for TOB Trust Certificates were as follows:
|
Underlying Municipal Bonds Transferred to TOBs |
Liability for TOB Trust Certificates |
Range of Interest Rates |
||||||||||
| BIE |
$ | 38,473,917 | $ | 19,340,052 | 0.10% - 0.37% | |||||||
| BBK |
$ | 37,212,244 | $ | 20,608,872 | 0.10% - 0.16% | |||||||
| BAF |
$ | 79,597,722 | $ | 39,996,660 | 0.10% - 0.37% | |||||||
| BYM |
$ | 236,489,700 | $ | 117,377,482 | 0.10% - 0.36% | |||||||
| BLE |
$ | 168,214,560 | $ | 93,381,521 | 0.10% - 0.36% | |||||||
| MFL |
$ | 266,794,109 | $ | 134,552,822 | 0.11% - 0.37% | |||||||
| MVF |
$ | 405,216,923 | $ | 197,793,067 | 0.11% - 0.31% | |||||||
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 69 |
Table of Contents
| Notes to Financial Statements (continued) |
For the six months ended February 28, 2013, the Trusts’ average TOB Trust Certificates outstanding and the daily weighted average interest rate, including fees, were as follows:
|
Average TOB Trust Outstanding |
Daily Weighted Average Interest Rate |
|||||||
| BIE |
$ | 18,840,165 | 0.74 | % | ||||
| BBK |
$ | 15,359,387 | 0.75 | % | ||||
| BAF |
$ | 38,272,899 | 0.75 | % | ||||
| BYM |
$ | 108,548,074 | 0.71 | % | ||||
| BLE |
$ | 91,214,879 | 0.74 | % | ||||
| MFL |
$ | 132,606,658 | 0.79 | % | ||||
| MVF |
$ | 198,559,287 | 0.72 | % | ||||
Should short-term interest rates rise, the Trusts’ investments in TOBs may adversely affect the Trusts’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Trusts’ NAVs per share.
Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Trusts either deliver collateral or segregate assets in connection with certain investments (e.g., TOBs and financial futures contracts), the Trusts will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on their books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each Trust engaging in such transactions may have requirements to deliver/deposit securities to/with an exchange or broker-dealer as collateral for certain investments.
Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.
Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 7.
Income Taxes: It is each Trust’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.
Each Trust files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trusts’ US federal tax returns remains open for each of the four years ended August 31, 2012. The statutes of limitations on each Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.
Recent Accounting Standards: In December 2011, the Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or similar agreements, which are eligible for offset in the Statements of Assets and Liabilities and will require an entity to disclose both gross and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Trusts’ financial statement disclosures.
Deferred Compensation Plan: Under the Deferred Compensation Plan (the“Plan”) approved by each Trust’s Board, the independent Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain other BlackRock Closed-End Funds selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain other BlackRock Closed-End Funds.
The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. The deferred compensation liabilities are included in officer’s and trustees’ fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance with the Plan.
Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.
The Trusts have an arrangement with the custodians whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodians impose fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.
2. Derivative Financial Instruments:
The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and/or to economically hedge, or protect, their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange or OTC.
| 70 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Notes to Financial Statements (continued) |
Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. The Trusts’ maximum risk of loss from counterparty credit risk on OTC derivatives is generally the aggregate unrealized gain netted against any collateral pledged by/posted to the counterparty. For OTC options purchased, the Trusts bear the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral received on the options should the counterparty fail to perform under the contracts. Options written by the Trusts do not give rise to counterparty credit risk, as options written obligate the Trusts and not the counterparty to perform. Counterparty risk related to exchange-traded financial futures contracts and options is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.
The Trusts may mitigate counterparty risk by procuring collateral and through netting provisions included within an International Swaps and Derivatives Association, Inc. master agreement (“ISDA Master Agreement”) implemented between a Trust and each of its respective counterparties. An ISDA Master Agreement allows each Trust to offset with each separate counterparty certain derivative financial instrument’s payables and/or receivables with collateral held. The amount of collateral moved to/from applicable counterparties is generally based upon minimum transfer amounts of up to $500,000. To the extent amounts due to the Trusts from their counterparties are not fully collateralized, contractually or otherwise, the Trusts bear the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices. In addition, the Trusts manage counterparty risk by entering into agreements only with counterparties that it believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties.
Certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Trusts’ net assets decline by a stated percentage or the Trusts fail to meet the terms of its ISDA Master Agreements, which would cause the Trusts to accelerate payment of any net liability owed to the counterparty.
Financial Futures Contracts: The Trusts purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are agreements between the Trusts and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Trusts as unrealized appreciation or depreciation. When the contract is closed, the Trusts record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.
Options: The Trusts purchase and write call and put options to increase or decrease their exposure to underlying instruments (including equity risk, interest rate risk and/or commodity price risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Trusts purchase (write) an option, an amount equal to the premium paid (received) by the Trusts is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Trusts enter into a closing transaction), the Trusts realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Trusts write a call option, such option is “covered,” meaning that the Trusts hold the underlying instrument subject to being called by the option counterparty. When the Trusts write a put option, such option is covered by cash in an amount sufficient to cover the obligation.
In purchasing and writing options, the Trusts bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the Trusts may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Trusts purchasing or selling a security at a price different from the current market value.
| Derivative Financial Instruments Categorized by Risk Exposure: | ||||||
| Fair Values of Derivative Financial Instruments as of February 28, 2013 | ||||||
| Liability Derivatives |
||||||
| BBK |
||||||
| Statements of Assets and Liabilities Location |
Value | |||||
| Interest rate contracts: | ||||||
| Financial futures contracts |
Net unrealized depreciation1 | $ | (1,409 | ) | ||
| 1 | Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. |
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 71 |
Table of Contents
| Notes to Financial Statements (continued) | ||||
| The Effect of Derivative Financial Instruments in the Statements of
Operations Six Months Ended February 28, 2013 |
||||||||
| ` Net Realized Loss From |
||||||||
| BBK | BYM | |||||||
| Interest rate contracts: | ||||||||
| Financial futures contracts |
$ | (44,756 | ) | $ | (162,937 | ) | ||
| Options1 |
(57,863 | ) | — | |||||
|
|
|
|||||||
| Total |
$ | (102,619 | ) | $ | (162,937 | ) | ||
|
|
|
|||||||
| 1 Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments. |
| |||||||
| Net Change in
Unrealized Appreciation/Depreciation on |
||||||||
| BBK | ||||||||
| Interest rate contracts: | ||||||||
| Financial futures contracts |
$(1,409) | |||||||
| For the six months ended February 28, 2013, the average quarterly balances of outstanding derivative financial instruments were as follows: | ||||||||
| BBK | BYM | |||||||
| Financial futures contracts: | ||||||||
| Average number of contracts sold. |
11 | 65 | ||||||
| Average notional value of contracts sold |
$ | 1,581,594 | $ | 8,718,125 | ||||
| Options: | ||||||||
| Average number of contracts purchased |
1 | 2 | — | |||||
| Average notional value of contracts purchased |
$ | 25,594 | 2 | — | ||||
| 2 | The actual contract amount is shown due to limited activity. |
3. Investment Advisory Agreement and Other Transactions with Affiliates:
The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes, of BlackRock, Inc. (“BlackRock”).
Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Trusts’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Trust’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Trust. For such services, each Trust pays the Manager a monthly fee based on a percentage of each Trust’s average weekly net assets, except MFL and MVF, which are based on average daily net assets, at the following annual rates:
| BIE |
0.65 | % | ||
| BBK |
0.65 | % | ||
| BAF |
0.55 | % | ||
| BYM |
0.55 | % | ||
| BLE |
0.55 | % | ||
| MFL |
0.55 | % | ||
| MVF |
0.50 | % |
Average weekly net assets and average daily net assets are the average weekly or the average daily value of each Trust’s total assets minus the sum of its accrued liabilities.
The Manager entered into a sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Manager, with respect to BAF, BYM, the Bond Trusts and BLE, and Blackrock investment Management, LLC (“BIM”), an affiliate of the Manager, with respect to MFL and MVF. The Manager pays BFM and BIM, for services they provide, a monthly fee that is a percentage of the investment advisory fees paid by each Trust to the Manager.
Effective June 1, 2012, the Manager voluntarily agreed to waive a portion of investment advisory fee with respect to BIE at an annual rate of 0.08%, as a percentage of average weekly net assets. With respect to MFL, the Manager voluntarily agreed to waive its investment advisory fees on the proceeds of Preferred Shares and TOBs that exceed 35% of its total assets minus the sum of its accrued liabilities. For the six months ended February 28, 2013, the Manager waived the following amounts, which are included in fees waived by Manager in the Statements of Operations:
| BIE |
$ | 37,195 | ||
| MFL |
$ | 212,624 |
The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Trust’s investment in other affiliated investment companies, if any. This amount is included in, or shown as, fees waived by Manager in the Statements of
| 72 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Table of Contents
| Notes to Financial Statements (continued) |
Operations. For the six months ended February 28, 2013, the amounts waived were as follows:
| BIE |
$ | 330 | ||
| BBK |
$ | 958 | ||
| BAF |
$ | 601 | ||
| BYM |
$ | 1,376 | ||
| BLE |
$ | 1,807 | ||
| MFL |
$ | 3,728 | ||
| MVF |
$ | 3,131 |
Certain officers and/or Trustees of the Trusts are officers and/or directors of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts’ Chief Compliance Officer, which is included in officer and trustees in the Statements of Operations
4. Investments:
Purchases and sales of investments excluding short-term securities for the six months ended February 28, 2013 were as follows:
| Purchases | Sales | |||||||
| BIE |
$ | 9,017,748 | $ | 8,186,132 | ||||
| BBK |
$ | 52,936,385 | $ | 57,048,552 | ||||
| BAF |
$ | 32,617,495 | $ | 26,698,889 | ||||
| BYM |
$ | 76,464,179 | $ | 68,114,879 | ||||
| BLE |
$ | 68,192,727 | $ | 38,903,073 | ||||
| MFL |
$ | 173,654,903 | $ | 171,952,470 | ||||
| MVF |
$ | 52,714,446 | $ | 63,794,202 | ||||
5. Income Tax Information:
As of August 31, 2012, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:
| Expires August 31, | BIE | BAF | BYM | BLE | MFL | MVF | ||||||||||||||||||
| 2013 |
— | — | — | — | $ | 2,325,913 | — | |||||||||||||||||
| 2015 |
— | — | $ | 1,522,202 | — | — | — | |||||||||||||||||
| 2016 |
— | — | 3,217,765 | $ | 1,648,836 | — | — | |||||||||||||||||
| 2017 |
— | — | 6,430,212 | 3,397,830 | 6,481,433 | $ | 7,618,622 | |||||||||||||||||
| 2018 |
$ | 661,404 | — | 2,209,430 | 4,366,226 | 11,734,707 | — | |||||||||||||||||
| 2019 |
718,157 | $ | 709,003 | — | 2,448,693 | — | 5,276,524 | |||||||||||||||||
| No expiration date1 |
— | — | 2,664,269 | — | — | 5,946,440 | ||||||||||||||||||
|
|
|
|||||||||||||||||||||||
| Total |
$ | 1,379,561 | $ | 709,003 | $ | 16,043,878 | $ | 11,861,585 | $ | 20,542,053 | $ | 18,841,586 | ||||||||||||
|
|
|
|||||||||||||||||||||||
| 1 | Must be utilized prior to losses subject to expiration. |
As of February 28, 2013, the gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:
| BIE | BBK | BAF | BYM | BLE | MFL | MVF | ||||||||||||||||||||||
| Tax cost |
$ | 64,730,912 | $ | 234,840,934 | $ | 168,285,166 | $ | 501,570,325 | $ | 476,848,945 | $ | 795,016,593 | $ | 804,755,030 | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Gross unrealized appreciation |
$ | 10,492,052 | $ | 27,608,667 | $ | 20,557,905 | $ | 63,647,130 | $ | 151,565,094 | $ | 91,190,736 | $ | 124,889,982 | ||||||||||||||
| Gross unrealized depreciation |
(216,625 | ) | (1,554,756 | ) | (418,328 | ) | (1,573,951 | ) | (5,264,060 | ) | (1,837,367 | ) | (7,313,692 | ) | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
| Net unrealized appreciation |
$ | 10,275,427 | $ | 26,053,911 | $ | 20,139,577 | $ | 62,073,179 | $ | 146,301,034 | $ | 89,353,369 | $ | 117,576,290 | ||||||||||||||
|
|
|
|||||||||||||||||||||||||||
6. Concentration, Market and Credit Risk:
Each Trust invests a substantial amount of their assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states.
Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.
In the normal course of business, the Trusts invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Trusts may be exposed to counterparty credit risk, or the risk that an entity with which the Trusts have unsettled or open transactions may fail to or be unable to perform on its commitments. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that they believe have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Trusts.
The Trusts may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Trusts reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Trust.
As of February 28, 2013, BIE, BAF and BYM invest a significant portion of their assets in securities in the county/city/special district/school district sector. BIE, BAF, BLE, MFL and MVF invest a significant portion of their
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 73 |
Table of Contents
| Notes to Financial Statements (continued) |
assets in securities in the transportation sector. BBK and MVF, invest a significant portion of their assets in securities in the health sector. Changes in economic conditions affecting the county/city/special district/school district, transportation and health sectors would have a greater impact on the Trusts and could affect the value, income and/or liquidity of positions in such securities.
7. Capital Share Transactions:
Each Trust, except MFL and MVF, is authorized to issue an unlimited number of shares, including Preferred Shares, par value $0.001 per share, all of which are initially classified as Common Shares. Each Trust’s Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without approval of Common Shareholders.
MFL is authorized to issue an unlimited number of shares, including 1 million Preferred Shares, par value $0.10 per share.
MVF is authorized to issue 160 million shares, 150 million of which were initially classified as Common Shares, par value $0.10 per share and 10 million of which were classified as Preferred Shares, par value $0.10 per share.
Common Shares
For the years shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:
| Six Months Ended February 28, 2013 |
Year Ended August 31, 2012 |
|||||||
| BIE |
937 | 2,729 | ||||||
| BBK |
13,365 | 32,815 | ||||||
| BAF |
2,424 | 4,717 | ||||||
| BYM |
30,719 | 42,891 | ||||||
| BLE |
23,604 | 66,755 | ||||||
| MFL |
45,928 | 46,224 | ||||||
| MVF |
217,812 | 537,279 | ||||||
Preferred Shares
Each Trust’s Preferred Shares rank prior to the Trust’s Common Shares as to the payment of dividends by the Trust and distribution of assets upon dissolution or liquidation of the Trust. The 1940 Act prohibits the declaration of any dividend on the Trusts’ Common Shares or the repurchase of the Trusts’ Common Shares if the Trusts fail to maintain the asset coverage of at least 200% of the liquidation preference of the outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instrument, the Trusts are restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with the Preferred Shares or repurchasing such shares if the Trusts fail to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares governing instrument or comply with the basic maintenance amount requirement of the rating agencies then rating the Preferred Shares.
The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Directors for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.
VRDP Shares
BIE and MFL (collectively, the “VRDP Trusts”) have issued Series W-7 VRDP Shares, $100,000 liquidation value per share, in a privately negotiated offering. The VRDP Shares were offered to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended, (the “Securities Act”) and include a liquidity feature pursuant to a liquidity agreement, that allows the holders of VRDP Shares to have their shares purchased by the liquidity providers in the event of a failed remarketing. The VRDP Trusts are required to redeem the VRDP Shares owned by the liquidity providers after six months of continuous, unsuccessful remarketing. Upon the occurrence of the first unsuccessful remarketing, the VRDP Trusts are required to segregate liquid assets to fund the redemption. The VRDP Shares are subject to certain restrictions on transfer.
The VRDP Shares outstanding as of February 28, 2013 were as follows:
| Issue Date |
Shares Issued |
Aggregate Principal |
Maturity Date |
|||||||||||||
| BIE |
9/15/11 | 178 | $ | 17,800,000 | 10/01/41 | |||||||||||
| MFL |
6/30/11 | 2,746 | $ | 274,600,000 | 7/01/41 | |||||||||||
The VRDP Trusts entered into a fee agreement with the liquidity providers that may require a per annum liquidity fee payable to the liquidity providers. These fees are shown as liquidity fees in the Statements of Operations.
The initial fee agreement between BIE and the liquidity provider was for a 364-day term and was scheduled to expire on September 15, 2012 and subsequently extended until March 15, 2013, unless renewed or terminated in advance. On November 29, 2012, BIE entered into a new fee agreement with an alternate liquidity provider. The new fee agreement is for a 2-year term and is scheduled to expire on December 4, 2014, unless renewed or terminated in advance. The change in liquidity provider resulted in a mandatory tender of BIE’s VRDP Shares on November 28, 2012, which were successfully remarketed by the remarketing agent. The fee agreement between MFL and its liquidity provider is for a 364-day term and is scheduled to expire on June 26, 2013, unless renewed or terminated in advance.
In the event the fee agreement is not renewed or is terminated in advance, and the VRDP Trusts do not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. The VRDP Trusts are required to redeem any VRDP Shares purchased by the liquidity provider six months ended after the purchase date. Immediately after the purchase of any VRDP Shares by the liquidity providers, the VRDP Trusts are required to begin to segregate liquid assets with the VRDP Trusts’ custodian to fund the redemption. There is no assurance the VRDP Trusts will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.
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| Notes to Financial Statements (continued) |
Each VRDP Trust is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, each VRDP Trust is required to begin to segregate liquid assets with the Trust’s custodian to fund the redemption. In addition, VRDP Trusts are required to redeem certain of its outstanding VRDP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage requirements.
Subject to certain conditions, the VRDP Shares may be redeemed, in whole or in part, at any time at the option of VRDP Trusts. The redemption price per VRDP Share is equal to the liquidation value per share plus any outstanding unpaid dividends. In the event of an optional redemption of the VRDP Shares prior to the initial termination date of the fee agreement, VRDP Trusts must pay the respective liquidity provider fees on such redeemed VRDP Shares for the remaining term of the fee agreement up to the initial termination date.
Dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed. At the date of issuance, the VRDP Shares were assigned a long-term rating of Aaa from Moody’s and AAA from Fitch. In May 2012, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of February 28, 2013, the VRDP Shares were assigned a long-term rating of Aa1 from Moody’s under its new ratings methodology. The VRDP Shares continue to be assigned a long-term rating of AAA from Fitch.
The short-term ratings on the VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s, Fitch and/or S&P. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly related based upon either short-term rating. As of February 28, 2013, the short-term ratings of the liquidity provider and the VRDP Shares were P2 and F1 as rated by Moody’s, Fitch and/or S&P respectively, which is within the two highest rating categories. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity providers fail to maintain short-term debt ratings in one of the two highest rating categories.
For financial reporting purposes, the VRDP Shares are considered debt of the issuer; therefore, the liquidation value which approximates fair value, of the VRDP Shares is recorded as a liability in the Statements of Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP Shares are generally classified as tax-exempt income for tax-reporting purposes.
The VRDP Trusts may incur remarketing fees of 0.10% on the aggregate principal amount of all the VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. All of BIE’s and MFL’s VRDP Shares have successfully remarketed since issuance, with an annualized dividend rate of 0.33% for BIE and 0.35% for MFL for the six months ended February 28, 2013.
VRDP Shares issued and outstanding remained constant for the six months ended February 28, 2013 for BIE and MFL. VRDP shares issued and outstanding remained constant for the year ended August 31, 2012 for MFL.
VMTP Shares
BBK, BAF, BYM, BLE and MVF (collectively, the “VMTP Trusts”), have issued Series W-7 VMTP Shares, $100,000 liquidation value per share, in a privately negotiated offering and sale of VMTP Shares exempt from registration under the Securities Act.
The VMTP Shares outstanding as of February 28, 2013 were as follows:
| Issue Date |
Shares Issued |
Aggregate Principal |
Term Date |
|||||||||||||
| BBK |
12/16/11 | 799 | $ | 79,900,000 | 1/02/15 | |||||||||||
| BAF |
12/16/11 | 422 | $ | 42,200,000 | 1/02/15 | |||||||||||
| BYM |
12/16/11 | 1,372 | $ | 137,200,000 | 1/02/15 | |||||||||||
| BLE |
12/16/11 | 1,513 | $ | 151,300,000 | 1/02/15 | |||||||||||
| MVF |
12/16/11 | 2,438 | $ | 243,800,000 | 1/02/15 | |||||||||||
Each VMTP Trust is required to redeem its VMTP Shares on the term date, unless earlier redeemed, repurchased or extended. There is no assurance that the term of a Trust’s VMTP Shares will be extended or that a Trust’s VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months ended prior to term date, each VMTP Trust is required to begin to segregate liquid assets with the Trusts’ custodian to fund the redemption. In addition, each VMTP Trust is required to redeem certain of its outstanding VMTP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage requirements.
Subject to certain conditions, a Trusts’ VMTP Shares may be redeemed, in whole or in part, at any time at the option of each Trust. The redemption price per VMTP Share is equal to the liquidation value per share plus any outstanding unpaid dividends and applicable redemption premium. If the Trusts redeem the VMTP Shares on a date that is one year or more prior to the term date and the VMTP Shares are rated above A1/A+ by Moody’s and Fitch, respectively, then such redemption is subject to a prescribed redemption premium payable to the holder of the VMTP Shares based on the time remaining to the term date, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. The VMTP Shares are subject to certain restrictions on transfer, and each Trust may also be required to register the VMTP Shares for sale under the Securities Act of 1933 under certain circumstances. In addition, amendments to the VMTP governing document generally require the consent of the holders of VMTP Shares.
Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to the Securities Industry and Financial Markets Association Municipal Swap Index (SIFMA). The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by Moody’s and Fitch. At the date of issu-
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 75 |
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| Notes to Financial Statements (continued) |
ance, the VMTP Shares were assigned long-term ratings of Aaa from Moody’s and AAA from Fitch. In May 2012, Moody’s completed a review of its methodology for rating securities issued by registered closed-end funds. As of February 28, 2013, the VMTP Shares were assigned a long-term rating of Aa1 from Moody’s under its new rating methodology. The VMTP Shares continue to be assigned a long-term rating of AAA from Fitch. The dividend rate on the VMTP Shares is subject to a step-up spread if the VMTP Trust fails to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and maintaining certain asset coverage and leverage requirements.
The average annualized dividend rates for the VMTP Shares for the six months ended February 28, 2013 were as follows:
| BAF |
1.16% | |||
| BBK |
1.16% | |||
| BYM |
1.16% | |||
| BLE |
1.16% | |||
| MVF |
1.16% |
For financial reporting purposes, the VMTP Shares are considered debt of the issuer; therefore the liquidation value, which approximates fair value of the VMTP Shares is recorded as a liability in the Statements of Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes.
VMTP Shares issued and outstanding remained constant for the six months ended February 28, 2013.
Offering Costs: The Trusts incurred costs in connection with their issuance of VRDP Shares or VMTP Shares. For VRDP Shares, these costs were recorded as a deferred charge and will be amortized over the 30-year life of the VRDP Shares, with the exception of upfront fees paid to the liquidity providers, which were amortized over the life of the liquidity agreement. For VMTP Shares, these costs were recorded as a deferred charge and will be amortized over the 3-year life of the VMTP Shares. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.
AMPS
The AMPS were redeemable at the option of each Trust, in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The AMPS were also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trust’s Articles of Supplementary/Statement of Preferences and or/Certificate of Designation (the “Governing Instrument”) were not satisfied.
From February 13, 2008 to the redemption dates listed below, the AMPS of the Trusts failed to clear any of their auctions. A failed auction was not an event of default for the Trusts but it has a negative impact on the liquidity of AMPS. A failed auction occurs when there are more sellers of a Trust’s AMPS than buyers.
As of February 28, 2013, the Trusts did not have any AMPS outstanding.
During the year ended August 31, 2012, BIE, BBK, BAF, BYM, BLE and MVF announced the following redemptions of AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:
| Series |
Redemption Date |
Shares Redeemed |
Aggregate Principal |
|||||||||||
| BIE | W-7 | 10/06/11 | 714 | $ | 17,850,000 | |||||||||
| BBK |
T-7 | 1/11/12 | 1,598 | $ | 39,950,000 | |||||||||
| R-7 | 1/13/12 | 1,598 | $ | 39,950,000 | ||||||||||
| BAF | M-7 | 1/10/12 | 1,691 | $ | 42,275,000 | |||||||||
| BYM |
M-7 | 1/10/12 | 1,830 | $ | 45,750,000 | |||||||||
| F-7 | 1/13/12 | 1,830 | $ | 45,750,000 | ||||||||||
| R-7 | 1/09/12 | 1,830 | $ | 45,750,000 | ||||||||||
| BLE |
M-7 | 1/10/12 | 1,513 | $ | 37,825,000 | |||||||||
| T-7 | 1/11/12 | 1,513 | $ | 37,825,000 | ||||||||||
| R-7 | 1/12/12 | 1,513 | $ | 37,825,000 | ||||||||||
| F-7 | 1/13/12 | 1,513 | $ | 37,825,000 | ||||||||||
| MVF |
A | 1/09/12 | 1,460 | $ | 36,500,000 | |||||||||
| B | 1/17/12 | 1,460 | $ | 36,500,000 | ||||||||||
| C | 1/23/12 | 1,460 | $ | 36,500,000 | ||||||||||
| D | 1/03/12 | 1,460 | $ | 36,500,000 | ||||||||||
| E | 1/03/12 | 2,190 | $ | 54,750,000 | ||||||||||
| F | 1/11/12 | 1,723 | $ | 43,075,000 | ||||||||||
BIE financed the AMPS redemptions with proceeds received from the issuance of VRDP Shares of $17,800,000.
BBK, BAF, BYM, BLE and MVF financed the AMPS redemptions with proceeds received from the issuance of VMTP Shares as follows:
| BBK |
$ | 79,900,000 | ||
| BAF |
$ | 42,200,000 | ||
| BYM |
$ | 137,200,000 | ||
| BLE |
$ | 151,300,000 | ||
| MVF |
$ | 243,800,000 |
8. Subsequent Events:
Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through the date the financial statements were issued and the following items were noted:
Each Trust paid a net investment income dividend on April 1, 2013 to Common Shareholders of record on March 15, 2013 as follows:
| Common Dividend Per Share |
||||
| BIE |
$ | 0.0760 | ||
| BBK |
$ | 0.0785 | ||
| BAF |
$ | 0.0685 | ||
| BYM |
$ | 0.0780 | ||
| BLE |
$ | 0.0850 | ||
| MFL |
$ | 0.0765 | ||
| MVF |
$ | 0.0590 | ||
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| Notes to Financial Statements (concluded) |
Additionally, the Trusts declared a net investment income dividend on April 1, 2013 payable to Common Shareholders of record on April 15, 2013 for the same amounts noted above.
The dividends declared on VRDP or VMTP Shares for the period March 1, 2013 to March 31, 2013 were as follows:
| Series | VRDP/VMTP Dividend Per Share |
|||||||
| BIE |
W-7 | $ | 3,228 | |||||
| BBK |
W-7 | $ | 75,565 | |||||
| BAF |
W-7 | $ | 39,911 | |||||
| BYM |
W-7 | $ | 129,757 | |||||
| BLE |
W-7 | $ | 143,092 | |||||
| MFL |
W-7 | $ | 74,405 | |||||
| MVF |
W-7 | $ | 230,575 | |||||
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 77 |
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| Officers and Trustees | ||||
Richard E. Cavanagh, Chairman of the Board and Trustee
Karen P. Robards, Vice Chairperson of the Board, Chairperson of the Audit Committee and Trustee
Paul L. Audet, President1 and Trustee
Michael J. Castellano, Trustee and Member of the Audit Committee
Frank J. Fabozzi, Trustee and Member of the Audit Committee
Kathleen F. Feldstein, Trustee
James T. Flynn, Trustee and Member of the Audit Committee
Henry Gabbay, Trustee
Jerrold B. Harris, Trustee
R. Glenn Hubbard, Trustee
W. Carl Kester, Trustee and Member of the Audit Committee
John M. Perlowski, President2 and Chief Executive Officer
Anne Ackerley, Vice President
Brendan Kyne, Vice President
Robert W. Crothers, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer and Anti-Money Laundering Officer
Janey Ahn, Secretary
| 1 | For MFL. |
| 2 | For all Trusts except MFL. |
Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809
Sub-Advisors
BlackRock Investment Management, LLC3
Princeton, NJ 08540
BlackRock Financial Management, Inc.4
New York, NY 10055
Custodians
The Bank of New York Mellon3
New York, NY 10286
State Street Bank and Trust Company4
Boston, MA 02110
Transfer Agent
Common Shares
Computershare Trust Company, N.A.
Canton, MA 02021
VRDP Tender and Paying Agent and
VMTP Redemption and Paying Agent
The Bank of New York Mellon
New York, NY 10289
VRDP Liquidity Providers
Bank of America, N.A.5
New York, NY 10036
Barclays Bank PLC6
New York, NY 10019
VRDP Remarketing Agents
Merrill Lynch, Pierce, Fenner & Smith Incorporated5
New York, NY 10036
Barclays Capital Inc.6
New York, NY 10019
Accounting Agent
State Street Bank and Trust Company
Boston, MA 02116
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116
Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036
Address of the Trusts
100 Bellevue Parkway
Wilmington, DE 19809
| 3 | For MFL and MVF. |
| 4 | For BIE, BBK, BAF, BYM and BLE. |
| 5 | For MFL. |
| 6 | For BIE. |
| 78 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
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| Additional Information |
| Regulation Regarding Derivatives |
Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to registered investment companies to regulation by the CFTC if a fund invests more than a prescribed level of its net assets in CFTC-regulated futures, options and swaps (“CFTC Derivatives”), or if the fund markets itself as providing investment exposure to such instruments. To the extent a Trust uses CFTC-regulated futures, options and swaps, it intends to do so below such prescribed levels and will not market itself as a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock Advisors, LLC has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”) pursuant to Rule 4.5 under the CEA. BlackRock Advisors, LLC is not, therefore, subject to registration or regulation as a “commodity pool operator” under the CEA in respect of each Trust.
| Dividend Policy |
Each Trusts’ dividend policy is to distribute all or a portion of their net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Trusts may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.
| General Information |
On July 29, 2010, the Manager announced that a derivative complaint had been filed by shareholders of BYM, BAF and BIE on July 27, 2010 in the Supreme Court of the State of New York, New York County. The complaint named the Manager, BlackRock, Inc. and certain of the trustees, officers and portfolio managers of BYM, BAF and BIE as defendants. The complaint alleged, among other things, that the parties named in the complaint breached fiduciary duties owed to BYM, BAF and BIE and their Common Shareholders by redeeming auction-market preferred shares, auction rate preferred securities, auction preferred shares and auction rate securities (collectively, “AMPS”) at their liquidation preference. The complaint sought unspecified damages for losses purportedly suffered by BYM, BAF and BIE as a result of the prior redemptions and injunctive relief preventing BYM, BAF and BIE from redeeming AMPS at their liquidation preference in the future. On March 15, 2012, the Supreme Court of the State of New York, New York County entered an order consolidating the above-referenced derivative complaint with another derivative complaint, containing almost identical allegations, already pending in that court. The court on March 15, 2012, also granted plaintiffs permission to file an amended complaint. On April 16, 2012, the plaintiffs filed a Consolidated Shareholder Derivative Complaint containing allegations substantially similar to those in the original complaint as to, among others, BAF. However, the Consolidated Shareholder Derivative Complaint did not include either BIE or BYM as a nominal defendant. Thus, BIE and BYM are no longer nominal defendants in the derivative complaint. Defendants, including BAF, moved to dismiss the Consolidated Shareholder Derivative Complaint on July 20, 2012. Plaintiffs on September 14, 2012 moved to hold the defendants’ motion to dismiss in abeyance and allow plaintiffs limited discovery of the Demand Review Committee of the Board of Directors, including depositions of its members and documents upon which they relied. The parties have agreed to proceed with limited discovery pending resolution of the defendants’ motion to dismiss. The Manager, BlackRock, Inc. and the other parties named in the complaint believe that the claims asserted in the complaint are without merit and intend to vigorously defend themselves in the litigation.
On August 11, 2010, the Manager announced that a derivative complaint had been filed by shareholders of MFL on August 3, 2010 in the Supreme Court of the State of New York, New York County. The complaint named the Manager, BlackRock, Inc. and certain of the directors, officers and portfolio managers of MFL as defendants. The complaint alleged, among other things, that the parties named in the complaint breached fiduciary duties owed to MFL and its Common Shareholders by redeeming AMPS at their liquidation preference. The complaint sought unspecified damages for losses purportedly suffered by MFL as a result of the prior redemptions and injunctive relief preventing MFL from redeeming AMPS at their liquidation preference in the future. On March 15, 2012, the Supreme Court of the State of New York, New York County entered an order consolidating the above-referenced derivative complaint with another derivative complaint, containing almost identical allegations, already pending in that court. The court on March 15, 2012, also granted plaintiffs permission to file an amended complaint. On April 16, 2012, the plaintiffs filed a Consolidated Shareholder Derivative Complaint containing allegations substantially similar to those in the original complaint as to, among others, MFL. Defendants, including MFL, moved to dismiss the Consolidated Shareholder Derivative Complaint on July 20, 2012. Plaintiffs on September 14, 2012 moved to hold the defendants’ motion to dismiss in abeyance and allow plaintiffs limited discovery of the Demand Review Committee of the Board of Directors, including depositions of its members and documents upon which they relied. The parties have agreed to proceed with limited discovery pending resolution of the defendants’ motion to dismiss. The Manager, BlackRock, Inc. and the other parties named in the complaint believe that the claims asserted in the complaint are without merit and intend to vigorously defend themselves in the litigation.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 79 |
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| Additional Information (continued) | ||||
| General Information (continued) |
The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.
During the period, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.
Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website into this report.
Electronic Delivery
Electronic copies of most financial reports are available on the Trusts’ websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Trusts’ electronic delivery program.
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.
Householding
The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call (800) 882-0052.
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. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330.Each Trust’s Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.
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| Additional Information (continued) | ||||
| General Information (concluded) |
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 882-0052 and (2) on the SEC’s website at http://www.sec.gov.
Availability of Trust Updates
BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to periodically check the website for updated performance information and the release of other material information about the Trusts. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website into this report.
| SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 81 |
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| Additional Information (concluded) | ||||
| BlackRock Privacy Principles |
BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.
| 82 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
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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, may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.
| CEF-NTL-7-2/13-SAR |
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| Item 2 – | Code of Ethics – Not Applicable to this semi-annual report | |
| Item 3 – | Audit Committee Financial Expert – Not Applicable to this semi-annual report | |
| Item 4 – | Principal Accountant Fees and Services – Not Applicable to this semi-annual report | |
| Item 5 – | Audit Committee of Listed Registrants – Not Applicable to this semi-annual report | |
| Item 6 – | Investments | |
| (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form. | ||
| (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing. | ||
| Item 7 – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report | |
| Item 8 – | Portfolio Managers of Closed-End Management Investment Companies | |
| (a) Not Applicable to this semi-annual report | ||
| (b) As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR. | ||
| Item 9 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable | |
| Item 10 – | Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures. | |
| Item 11 – | Controls and Procedures | |
| (a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended. | ||
| (b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. | ||
| Item 12 – | Exhibits attached hereto | |
| (a)(1) – Code of Ethics – Not Applicable to this semi-annual report | ||
| (a)(2) – Certifications – Attached hereto | ||
| (a)(3) – Not Applicable | ||
| (b) – Certifications – Attached hereto | ||
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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 MuniVest Fund, Inc. | ||
| By: | /s/ John M. Perlowski | |
| John M. Perlowski | ||
| Chief Executive Officer (principal executive officer) of | ||
| BlackRock MuniVest Fund, Inc. | ||
| Date: May 1, 2013 | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/ John M. Perlowski | |
| John M. Perlowski | ||
| Chief Executive Officer (principal executive officer) of | ||
| BlackRock MuniVest Fund, Inc. | ||
| Date: May 1, 2013 | ||
| By: | /s/ Neal J. Andrews | |
| Neal J. Andrews | ||
| Chief Financial Officer (principal financial officer) of | ||
| BlackRock MuniVest Fund, Inc. | ||
| Date: May 1, 2013 | ||
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