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 811-02688
Name of Fund: BlackRock Municipal Bond Fund, Inc.
BlackRock High Yield Municipal Fund
BlackRock National Municipal Fund
BlackRock Short-Term Municipal Fund
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Bond Fund, Inc.,
55 East 52nd Street, New York, NY 10055
Registrant’s telephone number, including area code: (800) 441-7762
Date of fiscal year end: 06/30/2012
Date of reporting period: 12/31/2011
Item 1 – Report to Stockholders
![]() | December 31, 2011 |
Semi-Annual Report (Unaudited)
BlackRock Municipal Bond Fund, Inc.
} BlackRock Short-Term Municipal Fund
} BlackRock National Municipal Fund
} BlackRock High Yield Municipal Fund
BlackRock Multi-State Municipal Series Trust
} BlackRock New York Municipal Bond Fund
Not FDIC Insured • No Bank Guarantee • May Lose Value
Table of Contents
2 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Investors endured a very difficult environment in 2011. Financial markets were extremely volatile as a number of high-profile global events drove frequent about-face changes in investor sentiment. As the year progressed, news flow increasingly influenced trading decisions, to the point where company fundamentals were largely ignored. In the end, lower-risk assets won the “risk on – risk off” trading tug-of-war that characterized 2011’s market activity.
Early in the year, political turmoil swept across the Middle East/North Africa region and prices of oil and other commodities soared. Natural disasters in Japan disrupted global supply chains and concerns mounted regarding US debt and deficit issues. Nevertheless, equities, commodities and high yield bonds outpaced the less risky asset classes as investors chose to focus on the continuing stream of strong corporate earnings and positive economic data.
Markets reversed sharply in May, however, when the heightened possibility of Greece defaulting on its debt rekindled fears about sovereign debt problems spreading across Europe. Concurrently, economic indicators signaled that the recovery had slowed in the United States and other developed nations. Confidence was further shaken by the prolonged debt ceiling debate in Washington, DC. On August 5th, Standard & Poor’s downgraded the US government’s credit rating and turmoil erupted in financial markets around the world. Extraordinary levels of volatility persisted in the months that followed as Greece teetered on the brink of default, debt problems escalated in Italy and Spain, and exposure to European sovereign bonds stressed banks globally. Late in the summer, economic data out of the United States and Europe grew increasingly bleak while China and other emerging economies began to show signs of slowing growth. By the end of the third quarter, equity markets had fallen nearly 20% from their April peak while safe-haven assets such as US Treasuries and gold had rallied to historical highs.
October brought enough positive economic data to assuage fears of a global double-dip recession. Additionally, after months of deliberation, European leaders began to show signs of progress toward stemming the region’s debt crisis. These encouraging developments brought investors back from the sidelines and risk assets rallied through the month. However, a lack of definitive details about Europe’s rescue plan soon raised doubts among investors and thwarted the rally at the end of October. The last two months of the year saw political instability in Greece, unsustainable yields on Italian bonds, and US policymakers bickering over budget issues. Global central bank actions and improving economic data energized investors, but confidence was easily tempered by sobering news flow that resurrected uncertainty about the ability of Europe’s leaders to ultimately contain the debt crisis.
Most equity markets failed to fully recover their late-summer losses, although US large cap stocks managed to finish the year with a marginal gain given their perceived safety and stronger US economic data. Conditions were worse overseas, and international markets experienced some significant downturns. Dividend-paying stocks performed relatively well as investors sought yield in the low interest rate environment. Fixed income securities benefited from declining yields and delivered positive returns for the year. US Treasury bonds outperformed other fixed income classes despite their quality rating downgrade, while municipal bonds also delivered superior results. Continued low short-term interest rates kept yields on money market securities near their all-time lows.
Many of the themes that caused uncertainty in 2011 are likely to persist well into 2012. While the investment landscape appears treacherous, BlackRock is working for you. We have a roadmap to show you the way.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
![](https://capedge.com/proxy/N-CSRS/0000891092-12-001391/robkapito.jpg)
“While the investment landscape appears treacherous, BlackRock is working for you. We have a roadmap to show you the way.”
Rob Kapito
President, BlackRock Advisors, LLC
Total Returns as of December 31, 2011
6-month | 12-month | |||
US large cap equities | (3.69 | )% | 2.11 | % |
(S&P 500® Index) | ||||
US small cap equities | (9.77 | ) | (4.18 | ) |
(Russell 2000® Index) | ||||
International equities | (16.31 | ) | (12.14 | ) |
(MSCI Europe, Australasia, | ||||
Far East Index) | ||||
Emerging market equities | (19.13 | ) | (18.42 | ) |
(MSCI Emerging Markets | ||||
Index) | ||||
3-month Treasury bill (BofA | 0.02 | 0.10 | ||
Merrill Lynch 3-Month | ||||
Treasury Bill Index) | ||||
US Treasury securities | 13.46 | 17.15 | ||
(BofA Merrill Lynch 10-Year | ||||
US Treasury Index) | ||||
US investment grade | 4.98 | 7.84 | ||
bonds (Barclays Capital US | ||||
Aggregate Bond Index) | ||||
Tax-exempt municipal | 5.78 | 10.62 | ||
bonds (S&P Municipal | ||||
Bond Index) | ||||
US high yield bonds | (0.02 | ) | 4.96 | |
(Barclays Capital US | ||||
Corporate High Yield 2% | ||||
Issuer Capped Index) |
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 |
Fund Summary as of December 31, 2011 | BlackRock Short-Term Municipal Fund |
Investment Objective
BlackRock Short-Term Municipal Fund’s (the “Fund”) investment objective is to provide shareholders with as high a level of income exempt from federal income taxes as is consistent with the investment policies of the Fund.
Portfolio Management Commentary
How did the Fund perform?
• | For the six-month period ended December 31, 2011, the Fund underperformed its primary benchmark, the S&P® Municipal Bond Index, and its secondary benchmark, the S&P® Limited Maturity Municipal Bond Index. The following discussion of relative performance pertains to the Fund’s secondary benchmark, the S&P® Limited Maturity Municipal Bond Index. |
What factors influenced performance?
• | The Fund maintains a shorter weighted average maturity than the benchmark index and will, therefore, generally underperform during periods of falling interest rates and outperform in periods of rising rates. During the reporting period, rates on short-term municipal securities fell, thus causing prices to rise. The Fund’s shorter average portfolio duration (sensitivity to interest rate movements) of approximately 1.6 years versus the benchmark index (1.85 years) was the main detractor from relative performance. The Fund’s bias toward higher quality securities also hindered returns relative to the benchmark index as lower-rated issues outperformed for the period. More specifically, the Fund was overweight relative to the benchmark index in higher-rated investment grade issues, underweight in lower-rated investment grade issues and, consistent with its investment mandate, did not hold below-investment grade securities, while the benchmark index represented modest exposure to those rating categories. |
• | Contributing positively to performance during the period were the Fund’s holdings of lower-rated investment grade issues as well as exposure to longer-dated securities (with terms of three and four years), which outperformed their shorter-dated counterparts. |
Describe recent portfolio activity.
• | The primary focus of portfolio activity was investing cash as inflows from subscriptions were strong during the six-month period. As the US Federal Reserve (the “Fed”) has committed to keep short-term interest rates low for an extended period of time, the Fund sought to maximize portfolio duration within the constraints of the Fund’s prospectus. Purchasing activity was focused in higher-quality, more liquid issues on the shorter end of the yield curve and lower-quality, higher-yielding issues in the three- to four-year part of the curve, although supply was very limited in this space and generally in high demand from investors. |
Describe portfolio positioning at period end.
• | At period end, the Fund’s portfolio duration was modestly long given that the Fund is limited by its prospectus to a maximum average maturity of two years. While the Fund’s duration was at the longer end of its limited range, it was modestly short relative to the S&P® Limited Maturity Municipal Bond Index. The Fund continued to be positioned for a period of stable short-term interest rates, while reflecting a higher quality bias. The Fund continues to maintain a high level of portfolio liquidity, which prepares the Fund in the event that the market should begin to perceive an end to the Fed’s accommodative monetary policy. |
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.
Portfolio Information
Sector Allocations | Percent of Long-Term Investments | |
State | 36 | % |
County/City/Special District/School District | 23 | |
Utilities | 14 | |
Transportation | 8 | |
Corporate | 8 | |
Health | 5 | |
Education | 4 | |
Tobacco | 1 | |
Housing | 1 |
Credit Quality Allocations1 | Percent of Long-Term Investments | |
AAA/Aaa | 19 | % |
AA/Aa | 51 | |
A | 25 | |
BBB/Baa | 4 | |
Not Rated2 | 1 |
1 | Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings. |
2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of December 31, 2011, the market value of these securities was $9,503,337, representing 1% of the Fund’s long-term investments. |
4 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
BlackRock Short-Term Municipal Fund |
Total Return Based on a $10,000 Investment
1 | Assuming maximum sales charges, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge. |
2 | The Fund invests primarily in investment grade municipal bonds or in municipal notes, including variable rate demand obligations. The Fund will maintain a dollar weighted maturity of no more than two years. |
3 | The S&P® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than 1 month. |
4 | The S&P® Limited Maturity Municipal Bond Index includes all bonds in the S&P® Municipal Bond Index with a remaining maturity of less than 4 years. |
Performance Summary for the Period Ended December 31, 2011
Average Annual Total Returns5 | |||||||||||||||||||
1 Year | 5 Years | 10 Years | |||||||||||||||||
Standardized 30-Day Yields | 6-Month Total Returns | w/o sales charge | w/sales charge | w/o sales charge | w/sales charge | w/o sales charge | w/sales charge | ||||||||||||
BlackRock | 0.43 | % | 0.54 | % | 1.65 | % | N/A | 2.75 | % | N/A | 2.40 | % | N/A | ||||||
Institutional | 0.42 | 0.54 | 1.75 | N/A | 2.77 | N/A | 2.41 | N/A | |||||||||||
Investor A | 0.15 | 0.30 | 1.37 | (1.67 | )% | 2.50 | 1.88 | % | 2.15 | 1.84 | % | ||||||||
Investor A1 | 0.29 | 0.38 | 1.53 | 0.51 | 2.64 | 2.43 | 2.29 | 2.19 | |||||||||||
Investor B | 0.01 | 0.33 | 1.33 | 0.33 | 2.38 | 2.38 | 2.03 | 2.03 | |||||||||||
Investor C | 0.00 | 0.01 | 0.58 | (0.42 | ) | 1.72 | 1.72 | 1.38 | 1.38 | ||||||||||
S&P® Municipal Bond Index | — | 5.78 | 10.62 | N/A | 4.86 | N/A | 5.35 | N/A | |||||||||||
S&P® Limited Maturity Municipal Bond Index | — | 0.85 | 2.50 | N/A | 3.57 | N/A | 3.16 | N/A |
5 | Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees. N/A — Not applicable as share class and index do not have a sales charge. Past performance is not indicative of future results. |
Expense Example
Actual | Hypothetical7 | |||||||||||||
Beginning Account Value July 1, 2011 | Ending Account Value December 31, 2011 | Expenses Paid During the Period6 | Beginning Account Value July 1, 2011 | Ending Account Value December 31, 2011 | Expenses Paid During the Period6 | Annualized Expense Ratio | ||||||||
BlackRock | $1,000.00 | $1,005.40 | $1.97 | $1,000.00 | $1,023.18 | $1.98 | 0.39% | |||||||
Institutional | $1,000.00 | $1,005.40 | $2.02 | $1,000.00 | $1,023.13 | $2.03 | 0.40% | |||||||
Investor A | $1,000.00 | $1,003.00 | $3.37 | $1,000.00 | $1,021.77 | $3.40 | 0.67% | |||||||
Investor A1 | $1,000.00 | $1,003.80 | $2.62 | $1,000.00 | $1,022.52 | $2.64 | 0.52% | |||||||
Investor B | $1,000.00 | $1,003.30 | $4.08 | $1,000.00 | $1,021.06 | $4.12 | 0.81% | |||||||
Investor C | $1,000.00 | $1,000.10 | $7.29 | $1,000.00 | $1,017.85 | $7.35 | 1.45% |
6 | For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Expenses are net of waiver. |
7 | Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 366. See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated. |
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 5 |
Fund Summary as of December 31, 2011 | BlackRock National Municipal Fund |
Investment Objective
BlackRock National Municipal Fund’s (the “Fund”) investment objective is to provide shareholders with as high a level of income exempt from federal income taxes as is consistent with the investment policies of the Fund.
Portfolio Management Commentary
• | On July 18, 2011, the Fund acquired substantially all of the assets and assumed certain stated liabilities of the BlackRock Municipal Fund, a series of BlackRock Municipal Bond Fund, Inc. and BlackRock AMT-Free Municipal Bond Portfolio, a series of BlackRock Funds II in exchange for newly issued shares of the Fund. |
How did the Fund perform?
• | For the six-month period ended December 31, 2011, the Fund outperformed its benchmark, the S&P® Municipal Bond Index. |
What factors influenced performance?
• | The Fund maintained an above-industry-average coupon structure in order to maximize its income accrual, which contributed positively to total return. The Fund maximized its exposure to tender option bonds (as permitted under the Fund’s prospectus), which also contributed to the Fund’s yield advantage, as the slope of the municipal yield curve remained relatively steep despite its flattening over the period. The Fund financed these positions at favorable borrowing costs, as short-term interest rates remained low. Additionally, the Fund’s longer duration (higher sensitivity to interest rates) as compared to the benchmark index had a positive impact on performance, as rates generally declined during the period. |
• | Detracting from performance was the Fund’s lack of exposure to the tobacco sector, as tobacco bonds rallied significantly toward the end of the period when news of greater potential for improving fundamentals in the sector led to tightening spreads. Following a period of widespread municipal credit concerns in the earlier part of 2011, resulting in significant volatility and mutual fund outflows, the Fund, at times, held relatively large reserves of cash and cash equivalents, which hindered performance as interest rates on cash investments remained near zero while longer assets performed better in the declining rate environment. |
Describe recent portfolio activity.
• | During the six-month period, the Fund improved its relative yield distribution by maximizing its exposure to tender option bonds. Additionally, as municipal bond valuations generally improved, the Fund increased its credit quality profile by taking advantage of tighter credit quality spreads to sell some of the Fund’s lower-rated holdings. New purchases during the period were concentrated in the primary market where more generous (higher) coupon rates could be structured. Overall, the Fund maintained its focus on maximizing income accrual using a high-quality asset mix, while managing NAV volatility. |
Describe portfolio positioning at period end.
• | The Fund ended the period with a long duration posture relative to the S&P® Municipal Bond Index. The Fund’s cash reserves remained elevated to maintain liquidity while political challenges and tax reform created uncertainty in the municipal market. The Fund maintained maximum exposure to tender option bonds to boost current yield. The Fund maintained its bias toward high-quality securities and a high average coupon rate, which stood at 5.92% at period end. |
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.
Portfolio Information
Sector Allocations | Percent of Long-Term Investments | |
Utilities | 24 | % |
Transportation | 17 | |
Health | 16 | |
State | 16 | |
County/City/Special District/School District | 15 | |
Corporate | 6 | |
Education | 4 | |
Housing | 2 |
Credit Quality Allocations1 | Percent of Long-Term Investments | |
AAA/Aaa | 15 | % |
AA/Aa | 46 | |
A | 29 | |
BBB/Baa | 6 | |
BB/Ba | 1 | |
Not Rated2 | 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 December 31, 2011, the market value of these securities was $52,776,594, representing 1% of the Fund’s long-term investments. |
6 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
BlackRock National Municipal Fund |
Total Return Based on a $10,000 Investment
1 | Assuming maximum sales charges, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge. |
2 | The Fund may invest in municipal bonds rated in any rating category or in unrated municipal bonds. The Fund will usually invest in municipal bonds that have a maturity of five years or longer. |
3 | The S&P® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than 1 month. |
Performance Summary for the Period Ended December 31, 2011
Average Annual Total Returns4 | ||||||||||||||||||
Standardized 30-Day Yields | 6-Month Total Returns | 1 Year | 5 Years | 10 Years | ||||||||||||||
w/o sales charge | w/sales charge | w/o sales charge | w/sales charge | w/o sales charge | w/sales charge | |||||||||||||
BlackRock | 3.77 | % | 6.77 | % | 11.68 | % | N/A | 4.84 | % | N/A | 5.62 | % | N/A | |||||
Institutional | 3.71 | 6.75 | 11.58 | N/A | 4.71 | N/A | 5.49 | N/A | ||||||||||
Service | 3.37 | 6.73 | 11.43 | N/A | 4.47 | N/A | 5.24 | N/A | ||||||||||
Investor A | 3.49 | 6.65 | 11.36 | 6.63 | % | 4.47 | 3.57 | % | 5.24 | 4.78 | % | |||||||
Investor B | 2.76 | 6.38 | 10.88 | 6.88 | 3.95 | 3.61 | 4.71 | 4.71 | ||||||||||
Investor B1 | 3.07 | 6.51 | 10.79 | 6.29 | 3.73 | 3.39 | 4.47 | 4.47 | ||||||||||
Investor C | 2.87 | 6.25 | 10.54 | 9.54 | 3.68 | 3.68 | 4.45 | 4.45 | ||||||||||
Investor C1 | 2.91 | 6.25 | 10.76 | 9.76 | 3.90 | 3.90 | 4.66 | 4.66 | ||||||||||
S&P® Municipal Bond Index | — | 5.78 | 10.62 | N/A | 4.86 | N/A | 5.35 | N/A |
4 | Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees. N/A — Not applicable as share class and index do not have a sales charge. Past performance is not indicative of future results. |
Expense Example
Actual | Hypothetical7 | |||||||||||||||||
Expenses Paid During the Period | Beginning Account Value July 1, 2011 | Including Interest Expense and Fees | Excluding Interest Expense and Fees | |||||||||||||||
Beginning Account Value July 1, 2011 | Ending Account Value December 31, 2011 | Including Interest Expense and Fees5 | Excluding Interest Expense and Fees6 | Ending Account Value December 31, 2011 | Expenses Paid During the Period5 | Ending Account Value December 31, 2011 | Expenses Paid During the Period6 | |||||||||||
BlackRock | $1,000.00 | $1,067.70 | $2.59 | $2.17 | $1,000.00 | $1,022.37 | $2.80 | $1,022.82 | $2.34 | |||||||||
Institutional | $1,000.00 | $1,067.50 | $3.33 | $2.91 | $1,000.00 | $1,021.92 | $3.25 | $1,022.32 | $2.85 | |||||||||
Service | $1,000.00 | $1,067.30 | $3.77 | $3.35 | $1,000.00 | $1,021.11 | $4.06 | $1,021.57 | $3.61 | |||||||||
Investor A | $1,000.00 | $1,066.50 | $4.21 | $3.79 | $1,000.00 | $1,021.06 | $4.12 | $1,021.47 | $3.71 | |||||||||
Investor B | $1,000.00 | $1,063.80 | $6.85 | $6.43 | $1,000.00 | $1,018.50 | $6.70 | $1,018.90 | $6.29 | |||||||||
Investor B1 | $1,000.00 | $1,065.10 | $4.62 | $4.19 | $1,000.00 | $1,020.21 | $4.98 | $1,020.66 | $4.52 | |||||||||
Investor C | $1,000.00 | $1,062.50 | $8.09 | $7.67 | $1,000.00 | $1,017.29 | $7.91 | $1,017.70 | $7.51 | |||||||||
Investor C1 | $1,000.00 | $1,062.50 | $7.10 | $6.69 | $1,000.00 | $1,018.25 | $6.95 | $1,018.65 | $6.55 |
5 | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.55% for BlackRock, 0.64% for Institutional, 0.80% for Service Class, 0.81% for Investor A, 1.32% for Investor B, 0.98% for Investor B1, 1.56% for Investor C and 1.37% for Investor C1), multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Expenses are net of waiver. |
6 | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.46% for BlackRock, 0.56% for Institutional, 0.71% for Service Class, 0.73% for Investor A, 1.24% for Investor B, 0.89% for Investor B1, 1.48% for Investor C and 1.29% for Investor C1), multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Expenses are net of waiver. |
7 | Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 366. See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated. |
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 7 |
Fund Summary as of December 31, 2011 | BlackRock High Yield Municipal Fund |
Investment Objective
BlackRock High Yield Municipal Fund’s (the “Fund”) investment objective is to provide shareholders with as high a level of income exempt from federal income taxes as is consistent with the investment policies of the Fund.
Portfolio Management Commentary
How did the Fund perform?
• | For the six-month period ended December 31, 2011, the Fund outperformed its primary benchmark, the S&P® Municipal Bond Index, and its secondary benchmark, the S&P® Customized High Yield Municipal Bond Index. The following discussion of relative performance pertains to the S&P® Customized High Yield Municipal Bond Index. |
What factors influenced performance?
• | Contributing positively to performance was the Fund’s competitive distribution yield, which was attributable to the Fund’s leverage maintained at 10% of total managed assets. The Fund’s long duration bias (higher sensitivity to interest rates) and emphasis on longer-dated bonds benefited relative performance as the yield curve flattened during the period amid declining interest rates. Security selection within the corporate, tobacco and long-term care sectors also had a positive impact on Fund returns. |
• | Detracting from performance was the Fund’s overweight (relative to the benchmark index) in corporate-related debt, which underperformed the broader municipal market for the period. Also hindering returns was the Fund’s underweight exposure to low investment-grade and high speculative-grade issues, which outperformed other rating categories during the period. |
Describe recent portfolio activity.
• | During the six-month period, the Fund participated in various attractive investment opportunities in the new-issue market. As liquidity conditions improved in the secondary market, the Fund deployed new money (investor inflows) and repositioned some of its holdings across different sectors. The Fund remained focused on maintaining the desired level of portfolio leverage as cash inflows from new subscriptions increased significantly in the latter half of the six-month period. |
Describe portfolio positioning at period end.
• | As of period end, portfolio management remained constructive on the high yield municipal bond market given the strong technical backdrop. The Fund remained positioned to benefit from further credit-spread tightening and yield curve-flattening. |
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.
Portfolio Information
Sector Allocations | Percent of Long-Term Investments | |
Health | 30 | % |
Transportation | 15 | |
Corporate | 14 | |
Utilities | 12 | |
County/City/Special District/School District | 8 | |
State | 7 | |
Education | 6 | |
Tobacco | 6 | |
Housing | 2 |
Credit Quality Allocations1 | Percent of Long-Term Investments | |
AAA/Aaa | 2 | % |
AA/Aa | 20 | |
A | 14 | |
BBB/Baa | 31 | |
BB/Ba | 6 | |
B | 8 | |
CCC/Caa | 1 | |
Not Rated2 | 18 |
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 December 31, 2011, the market value of these securities was $9,959,042, representing 5% of the Fund’s long-term investments. |
8 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
BlackRock High Yield Municipal Fund |
Total Return Based on a $10,000 Investment
1 | Assuming maximum sales charges, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge. |
2 | The Fund may invest in municipal bonds rated in any rating category or in unrated municipal bonds. The Fund will usually invest in municipal bonds that have a maturity of five years or longer. |
3 | The S&P® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than 1 month. |
4 | The S&P® Customized High Yield Municipal Bond Index is a blended subset of the S&P® Municipal Bond Index that includes non-insured bonds rated below BBB– or non-rated (85%) and bonds rated BBB (15%), excluding those that are in default, are pre-refunded, or are escrowed to maturity. |
5 | Commencement of Operations. |
Performance Summary for the Period Ended December 31, 2011
Average Annual Total Returns6 | ||||||||||||||||||||||||
1 Year | 5 Years | Since Inception7 | ||||||||||||||||||||||
Standardized 30-Day Yields | 6-Month Total Returns | w/o sales charge | w/sales charge | w/o sales charge | w/sales charge | w/o sales charge | w/sales charge | |||||||||||||||||
Institutional | 5.15 | % | 6.91 | % | 12.13 | % | N/A | 2.35 | % | N/A | 2.84 | % | N/A | |||||||||||
Investor A | 4.76 | 6.78 | 11.84 | 7.09 | % | 2.08 | 1.19 | % | 2.53 | 1.71 | % | |||||||||||||
Investor C | 4.12 | 6.36 | 10.98 | 9.98 | 1.32 | 1.32 | 1.80 | 1.80 | ||||||||||||||||
S&P® Municipal Bond Index | — | 5.78 | 10.62 | N/A | 4.86 | N/A | 5.12 | N/A | ||||||||||||||||
S&P® Customized High Yield Municipal Bond Index | — | 5.21 | 10.13 | N/A | 2.43 | N/A | 3.05 | N/A |
6 | Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees. |
7 | The Fund commenced operations on 8/01/06. N/A — Not applicable as share class and index do not have a sales charge. Past performance is not indicative of future results. |
Expense Example
Actual | Hypothetical10 | |||||||||||||||||
Expenses Paid During the Period | Including Interest Expense and Fees | Excluding Interest Expense and Fees | ||||||||||||||||
Beginning Account Value July 1, 2011 | Ending Account Value December 31, 2011 | Including Interest Expense and Fees8 | Excluding Interest Expense and Fees9 | Beginning Account Value July 1, 2011 | Ending Account Value December 31, 2011 | Expenses Paid During the Period8 | Ending Account Value December 31, 2011 | Expenses Paid During the Period9 | ||||||||||
Institutional | $1,000.00 | $1,069.10 | $4.00 | $3.64 | $1,000.00 | $1,021.27 | $3.91 | $1,021.62 | $3.56 | |||||||||
Investor A | $1,000.00 | $1,067.80 | $5.41 | $4.99 | $1,000.00 | $1,019.91 | $5.28 | $1,020.31 | $4.88 | |||||||||
Investor C | $1,000.00 | $1,063.60 | $9.39 | $9.03 | $1,000.00 | $1,016.04 | $9.17 | $1,016.39 | $8.82 |
8 | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.77% for Institutional, 1.04% for Investor A, and 1.81% for Investor C), multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Expenses are net of waiver. |
9 | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.70% for Institutional, 0.96% for Investor A, and 1.74% for Investor C), multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Expenses are net of waiver. |
10 | Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 366. See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated. |
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 9 |
Fund Summary as of December 31, 2011 | BlackRock New York Municipal Bond Fund |
Investment Objective
BlackRock New York Municipal Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from federal income tax and New York State and New York City personal income taxes.
Portfolio Management Commentary
How did the Fund perform?
• | For the six-month period ended December 31, 2011, the Fund underperformed its primary benchmark, the S&P® Municipal Bond Index, and its secondary benchmark, the S&P® New York Municipal Bond Index. The following discussion of relative performance pertains to the Fund’s secondary benchmark, the S&P® New York Municipal Bond Index. |
What factors influenced performance?
• | An overweight relative to the benchmark index in corporate issues negatively impacted the Fund’s total return, as the sector underperformed the broader municipal market for the period. Conversely, the Fund was underweight in transportation, which was the strongest-performing sector during the period. With respect to credit quality, the Fund’s exposure was concentrated in higher-quality credits, which detracted from relative performance, as lower investment grade and higher-quality speculative grade issues were the stronger performers due to increased demand from investors seeking higher yields, resulting in narrowing credit spreads. |
• | Contributing positively to performance were the Fund’s sector overweights in health care and education, which were among the stronger-performing sectors for the period. In addition, the Fund’s longer duration posture (greater sensitivity to interest rates) relative to the benchmark index had a positive impact on returns as interest rates generally declined over the period. |
Describe recent portfolio activity.
• | During the six-month period, the Fund sought to improve portfolio convexity (the rate at which duration changes in response to interest rate movements) and protect its income stream by selling its holdings with shorter call dates and replacing them with bonds offering better call protection. Most of the Fund’s trading activity, however, was focused on maintaining a fully invested posture in order to maximize income. Additionally, the Fund participated in attractive investment opportunities as they presented themselves in the new-issue market. The supply of New York issues was heavier than normal during the period, resulting in weak performance for New York relative to most other states. Although the greater supply limited the benefits of the Fund’s long duration profile in the declining interest rate environment, the increased availability enabled the Fund to improve the diversification of its New York holdings. The Fund continued to reduce exposure to several Puerto Rico credits during the period, while selling other bonds with declining credit metrics. The Fund also sold holdings that had experienced capital appreciation in order to capture relative outperformance. |
Describe portfolio positioning at period end.
• | The Fund ended the period with a longer duration bias as compared to the S&P® New York Municipal Bond Index. |
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.
Portfolio Information
Sector Allocations | Percent of Long-Term Investments | |
County/City/Special District/School District | 19 | % |
Health | 16 | |
Education | 13 | |
Corporate | 12 | |
Transportation | 12 | |
State | 10 | |
Utilities | 9 | |
Housing | 6 | |
Tobacco | 3 |
Credit Quality Allocations1 | Percent of Long-Term Investments | |
AAA/Aaa | 4 | % |
AA/Aa | 32 | |
A | 36 | |
BBB/Baa | 12 | |
BB/Ba | 6 | |
B | 1 | |
Not Rated2 | 9 |
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 December 31, 2011, the market value of these securities was $6,499,362, representing 3% of the Fund’s long-term investments. |
10 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
BlackRock New York Municipal Bond Fund |
Total Return Based on a $10,000 Investment
1 | Assuming maximum sales charges, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge. |
2 | The Fund invests primarily in a portfolio of investment grade New York municipal bonds. The Fund expects to maintain an average weighted maturity of greater than ten years. |
3 | The S&P® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than 1 month. |
4 | The S&P® New York Municipal Bond Index includes all New York bonds in the S&P® Municipal Bond Index. |
Performance Summary for the Period Ended December 31, 2011
Average Annual Total Returns5 | ||||||||||||||||||
1 Year | 5 Years | 10 Years | ||||||||||||||||
Standardized 30-Day Yields | 6-Month Total Returns | w/o sales charge | w/sales charge | w/o sales charge | w/sales charge | w/o sales charge | w/sales charge | |||||||||||
Institutional | 3.83 | % | 4.79 | % | 8.97 | % | N/A | 3.85 | % | N/A | 4.60 | % | N/A | |||||
Investor A | 3.37 | 4.64 | 8.75 | 4.12 | % | 3.57 | 2.67 | % | 4.33 | 3.88 | % | |||||||
Investor A1 | 3.64 | 4.65 | 8.86 | 4.51 | 3.72 | 2.87 | 4.49 | 4.07 | ||||||||||
Investor B | 3.30 | 4.42 | 8.39 | 4.39 | 3.31 | 2.97 | 4.06 | 4.06 | ||||||||||
Investor C | 2.87 | 4.18 | 7.90 | 6.90 | 2.80 | 2.80 | 3.55 | 3.55 | ||||||||||
Investor C1 | 3.27 | 4.39 | 8.33 | 7.33 | 3.21 | 3.21 | 3.96 | 3.96 | ||||||||||
S&P® Municipal Bond Index | — | 5.78 | 10.62 | N/A | 4.86 | N/A | 5.35 | N/A | ||||||||||
S&P® New York Municipal Bond Index | — | 5.10 | 9.66 | N/A | 4.99 | N/A | 5.38 | N/A |
5 | Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 12 for a detailed description of share classes, including any related sales charges and fees. |
N/A — Not applicable as share class and index do not have a sales charge. |
Past performance is not indicative of future results. |
Expense Example
Actual | Hypothetical8 | |||||||||||||||||
Expenses Paid During the Period | Including Interest Expense and Fees | Excluding Interest Expense and Fees | ||||||||||||||||
Beginning Account Value July 1, 2011 | Ending Account Value December 31, 2011 | Including Interest Expense and Fees6 | Excluding Interest Expense and Fees7 | Beginning Account Value July 1, 2011 | Ending Account Value December 31, 2011 | Expenses Paid During the Period6 | Ending Account Value December 31, 2011 | Expenses Paid During the Period7 | ||||||||||
Institutional | $1,000.00 | $1,047.90 | $3.96 | $3.91 | $1,000.00 | $1,021.27 | $3.91 | $1,021.32 | $3.86 | |||||||||
Investor A | $1,000.00 | $1,045.40 | $5.35 | $5.24 | $1,000.00 | $1,019.91 | $5.28 | $1,020.01 | $5.18 | |||||||||
Investor A1 | $1,000.00 | $1,046.50 | $4.37 | $4.27 | $1,000.00 | $1,020.86 | $4.32 | $1,020.96 | $4.22 | |||||||||
Investor B | $1,000.00 | $1,044.20 | $6.68 | $6.58 | $1,000.00 | $1,018.60 | $6.60 | $1,018.70 | $6.50 | |||||||||
Investor C | $1,000.00 | $1,041.80 | $8.93 | $8.88 | $1,000.00 | $1,016.39 | $8.82 | $1,016.44 | $8.77 | |||||||||
Investor C1 | $1,000.00 | $1,043.90 | $6.94 | $6.83 | $1,000.00 | $1,018.35 | $6.85 | $1,018.45 | $6.75 |
6 | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.77% for Institutional, 1.04% for Investor A, 0.85% for Investor A1, 1.30% for Investor B, 1.74% for Investor C and 1.35% for Investor C1), multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Expenses are net of waiver. |
7 | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.76% for Institutional, 1.02% for Investor A, 0.83% for Investor A1, 1.28% for Investor B, 1.73% for Investor C and 1.33% for Investor C1), multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period shown). Expenses are net of waiver. |
8 | Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 366. See “Disclosure of Expenses” on page 13 for further information on how expenses were calculated. |
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 11 |
• | BlackRock and Institutional Shares (BlackRock Shares are available only in BlackRock Short-Term Municipal Fund and BlackRock National Municipal Fund) are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to eligible investors. Prior to October 2, 2006, for BlackRock Short-Term Municipal Fund and prior to July 18, 2011 for BlackRock National Municipal Fund, BlackRock Share performance results are those of the Institutional Shares restated to reflect BlackRock Share fees. |
• | Service Shares (available only in BlackRock National Municipal Fund) are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee) and are available only to eligible investors. Prior to July 18, 2011, Service Share performance results are those of the Institutional Shares restated to reflect Service Share fees. |
• | Investor A Shares incur a maximum initial sales charge (front-end load) of 4.25% for all Funds except BlackRock Short-Term Municipal Fund, which incurs a 3.00% maximum initial sales charge, and all Funds incur a service fee of 0.25% per year (but no distribution fee). Prior to the Investor A Shares inception date of October 2, 2006 (for BlackRock Short-Term Municipal Fund and BlackRock New York Municipal Fund), Investor A Share performance results are those of the Institutional Shares (which have no distribution or service fees) restated to reflect Investor A Share fees. |
• | Investor A1 Shares (available only in BlackRock Short-Term Municipal Fund and BlackRock New York Municipal Bond Fund) incur a maximum initial sales charge (front-end load) of 1.00% for BlackRock Short-Term Municipal Fund and 4.00% for BlackRock New York Municipal Fund; and a service fee of 0.10% per year (but no distribution fee). |
• | Investor B Shares (available to all Funds except BlackRock High Yield Municipal Fund) are subject to the following maximum contingent deferred sales charges (“CDSC”): |
Maximum CDSC | |
BlackRock Short-Term Municipal Fund | 1.00%, declining to 0% after 3 years |
BlackRock National Municipal Fund | 4.00%, declining to 0% after 6 years |
BlackRock New York Municipal Bond Fund | 4.00%, declining to 0% after 6 years |
In addition, these shares are subject to distribution and service fees per year as follows:
Distribution Fee | Service Fee | |
BlackRock Short-Term Municipal Fund | 0.20% | 0.15% |
BlackRock National Municipal Fund | 0.50% | 0.25% |
BlackRock New York Municipal Bond Fund | 0.25% | 0.25% |
For BlackRock Short-Term Municipal Fund and BlackRock New York Municipal Bond Fund, the shares automatically convert to Investor A1 Shares after approximately 10 years. For BlackRock National Municipal Fund, the shares automatically convert to Investor A Shares after approximately 10 years. (There is no initial sales charge for automatic sales conversions.)
• | Investor B1 Shares (available only in BlackRock National Municipal Fund) are subject to a maximum CDSC of 4.50%, declining to 0% after six years. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares automatically convert to Investor A Shares after approximately seven years. Prior to July 18, 2011, Investor B1 Share performance results are those of the Institutional Shares restated to reflect Investor B1 Share fees. |
• | Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. Prior to the Investor C Shares inception date of October 2, 2006 (for all Funds except BlackRock High Yield Municipal Fund), Investor C Share performance results are those of Institutional Shares (which have no distribution or service fees) restated to reflect Investor C Share fees. |
• | Investor C1 Shares (available only in BlackRock National Municipal Fund and BlackRock New York Municipal Fund) are subject to a 1.00% CDSC if redeemed within one year of purchase. |
In addition, these shares are subject to distribution and service fees per year as follows:
Distribution Fee | Service Fee | |
BlackRock National Municipal Fund | 0.55% | 0.25% |
BlackRock New York Municipal Bond Fund | 0.35% | 0.25% |
Investor A1, Investor B, Investor B1 and Investor C1 Shares of each Fund are only available through exchanges, dividend reinvestment by existing shareholders or for purchase by certain qualified employee benefit plans.
Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in each of the performance tables on the previous pages assume reinvestment of all dividends and capital gain distributions, if any, at net asset value (“NAV”) on the payable date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Dividends paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders. The Funds’ investment advisor reimbursed a portion of each Fund’s expenses. Without such reimbursement, a Fund’s performance would have been lower.
12 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Shareholders of the Funds may incur the following charges: (a) expenses related to transactions, including sales charges and exchange fees; and (b) operating expenses, including advisory fees, service and distribution fees, including 12b-1 fees, and other Fund expenses. The expense examples on the previous pages (which are based on a hypothetical investment of $1,000 invested on July 1, 2011 and held through December 31, 2011) are intended to assist shareholders both in calculating expenses based on an investment in the Funds and in comparing these expenses with similar costs of investing in other mutual funds.
The tables provide information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their Fund and share class under the headings entitled “Expenses Paid During the Period.”
The tables also provide information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in these Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in other funds’ shareholder reports.
The expenses shown in the tables are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as sales charges or exchange fees, if any. Therefore, the hypothetical examples are useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 13 |
The Benefits and Risks of Leveraging
The Funds may utilize leverage to seek to enhance the yield and NAV. However, these objectives cannot be achieved in all interest rate environments.
The Funds may leverage their assets through the use of tender option bond (“TOB”) programs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Fund’s NAV per share.
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 Fund on its longer-term portfolio investments. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’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 Funds had not used leverage.
Furthermore, the value of the Funds’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. Changes in interest rates can influence the Funds’ NAVs positively or negatively in addition to the impact on the Fund performance from leverage.
The use of leverage may enhance opportunities for increased income to the Funds, 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 Funds’ NAVs 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 Funds’ 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 Fund’s net income will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders will be reduced. Each Fund 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 Fund to incur losses. The use of leverage may limit each Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund will incur expenses in connection with the use of leverage, all of which are borne by shareholders and may reduce income.
Derivative Financial Instruments
The Funds may invest in various derivative financial instruments, including financial futures contracts 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 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 Funds’ 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 Fund to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Fund can realize on an investment, may result in lower dividends paid to shareholders or may cause a Fund to hold an investment that it might otherwise sell. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.
14 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments December 31, 2011 (Unaudited) | BlackRock Short-Term Municipal Fund (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) | Value | |||
Alabama — 0.3% | |||||
Mobile Industrial Development Board, RB, Alabama | |||||
Power Co. Barry Project, Series B, 4.88%, 6/01/34 (a) | $ | 3,270 | $ | 3,428,203 | |
Arizona — 1.3% | |||||
Arizona State Transportation Board, RB, Maricopa County | |||||
Regional Area Road, 5.00%, 7/01/12 | 3,250 | 3,328,358 | |||
Phoenix Civic Improvement Corp., Refunding RB, | |||||
Junior Lien, 4.00%, 7/01/14 | 5,000 | 5,429,500 | |||
Yavapai County IDA, RB, Waste Management Inc. | |||||
Project, Series A-2, Mandatory Put Bonds, AMT, | |||||
2.88%, 3/01/28 (a) | 5,000 | 5,088,100 | |||
13,845,958 | |||||
California — 11.3% | |||||
California Health Facilities Financing Authority, | |||||
Refunding RB, Catholic Healthcare West, Series C, | |||||
Mandatory Put Bonds, 5.00%, 7/01/37 (a) | 2,300 | 2,351,589 | |||
California State Department of Water Resources, | |||||
Refunding RB: | |||||
Series L, 5.00%, 5/01/12 | 10,000 | 10,161,600 | |||
Series M, 3.00%, 5/01/13 | 3,095 | 3,204,934 | |||
Series M, 5.00%, 5/01/14 | 35,000 | 38,587,500 | |||
California Statewide Communities Development | |||||
Authority, RB: | |||||
Kaiser Permanente, Series A, 5.00%, 4/01/13 | 5,150 | 5,439,018 | |||
Kaiser Permanente, Series A, 5.00%, 4/01/14 | 1,000 | 1,088,400 | |||
Proposition 1A Receivables Program, | |||||
5.00%, 6/15/13 | 33,730 | 35,730,864 | |||
City of Long Beach California, Refunding RB, Series B, | |||||
AMT (NPFGC), 5.50%, 5/15/14 | 5,215 | 5,735,353 | |||
Los Angeles Unified School District California, GO: | |||||
Election of 2004, Series H (AGM), 4.50%, 7/01/12 | 6,000 | 6,129,000 | |||
Refunding, Series A-1, 5.00%, 7/01/15 | 6,000 | 6,808,560 | |||
State of California Economic Recovery, GO, Series A | |||||
(NPFGC), 5.00%, 7/01/15 | 3,805 | 4,200,720 | |||
119,437,538 | |||||
Colorado — 0.8% | |||||
City & County of Denver Colorado, RB, Series A, AMT, | |||||
3.00%, 11/15/12 | 3,000 | 3,066,450 | |||
Colorado Health Facilities Authority, Refunding RB, | |||||
Catholic Healthcare, Series B, Mandatory Put Bonds, | |||||
5.00%, 7/01/39 (a) | 5,000 | 5,193,750 | |||
8,260,200 | |||||
Connecticut — 3.8% | |||||
Connecticut Municipal Electric Energy Cooperative, | |||||
Refunding RB, Series A (AGC), 5.00%, 1/01/14 | 2,115 | 2,298,223 | |||
Connecticut State Development Authority, Refunding RB, | |||||
Pollution Control, Series B, 1.25%, 9/01/28 (a) | 10,000 | 10,003,800 |
Municipal Bonds | Par (000) | Value | |||
Connecticut (concluded) | |||||
State of Connecticut, GO, Economic Recovery, Series A: | |||||
5.00%, 1/01/13 | $ | 11,500 | $ | 12,047,975 | |
5.00%, 1/01/14 | 7,280 | 7,930,468 | |||
State of Connecticut, RB, Transportation Infrastructure, | |||||
Series A, 5.00%, 11/01/14 | 2,700 | 3,032,748 | |||
State of Connecticut, Special Tax Bonds, Transportation | |||||
Infrastructure, Series A, 5.00%, 11/01/13 | 5,000 | 5,423,500 | |||
40,736,714 | |||||
Delaware — 1.5% | |||||
State of Delaware, GO, Refunding, Series 2009C, | |||||
5.00%, 10/01/13 | 7,700 | 8,332,170 | |||
University of Delaware, RB, Series A, | |||||
0.85%, 11/01/37 (a) | 7,000 | 7,044,730 | |||
15,376,900 | |||||
District of Columbia — 0.5% | |||||
Metropolitan Washington Airports Authority, RB, Series A, | |||||
AMT (NPFGC), 5.25%, 10/01/13 | 5,000 | 5,386,450 | |||
Florida — 6.3% | |||||
County of Escambia Florida, Refunding RB, Gulf | |||||
Power Co. Project, First Series, Mandatory Put Bonds, | |||||
2.00%, 4/01/39 (a) | 9,000 | 9,032,760 | |||
Florida State Board of Education, GO, Refunding: | |||||
Public Education, Series C, 5.00%, 6/01/12 | 5,000 | 5,100,650 | |||
Series A, 5.00%, 1/01/14 (b) | 12,820 | 13,981,748 | |||
Series A, 5.00%, 1/01/15 (b) | 7,395 | 8,350,064 | |||
Florida State Department of Environmental Protection, | |||||
RB, Florida Forever, Series A, 5.00%, 7/01/13 | 4,675 | 4,982,288 | |||
Florida State Department of Environmental Protection, | |||||
Refunding RB, Series C, 4.00%, 7/01/12 | 8,500 | 8,659,205 | |||
Florida State Department of Transportation, Refunding RB, | |||||
Series A, 5.00%, 7/01/12 | 4,575 | 4,684,343 | |||
Highlands County Health Facilities Authority, RB, Hospital, | |||||
Adventist Health System/Sunbelt, Mandatory Put | |||||
Bonds, 3.95%, 11/15/32 (a) | 6,000 | 6,136,320 | |||
Jacksonville Electric Authority Florida, Refunding RB, | |||||
St. Johns River Power Park System, Issue 2, Series 23, | |||||
3.00%, 10/01/12 | 5,920 | 6,043,018 | |||
66,970,396 | |||||
Georgia — 0.5% | |||||
De Kalb County School District, GO, 5.00%, 2/01/13 | 5,000 | 5,248,450 | |||
Hawaii — 0.9% | |||||
State of Hawaii, Refunding RB, AMT: | |||||
5.00%, 7/01/14 | 5,000 | 5,443,900 | |||
Series B, 5.00%, 7/01/13 | 4,000 | 4,252,080 | |||
9,695,980 |
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the | EDC | Economic Development Corp. | ISD | Independent School District | |
Schedules of Investments, the names and | ERB | Education Revenue Bonds | LRB | Lease Revenue Bonds | |
descriptions of many of the securities have been | ERS | Extendible Reset Securities | M/F | Multi-Family | |
abbreviated according to the following list: | Fannie Mae | Federal National Mortgage Association | MRB | Mortgage Revenue Bonds | |
FGIC | Financial Guaranty Insurance Co. | NPFGC | National Public Finance Guarantee Corp. | ||
ACA | American Capital Access Corp. | FHA | Federal Housing Administration | PCRB | Pollution Control Revenue Bonds |
AGC | Assured Guaranty Corp. | Freddie Mac | Federal Home Loan Mortgage Corporation | PILOT | Payment in Lieu of Taxes |
AGM | Assured Guaranty Municipal Corp. | GARB | General Airport Revenue Bonds | PSF-GTD | Permanent School Fund Guaranteed |
AMBAC | American Municipal Bond Assurance Corp. | Ginnie Mae | Government National Mortgage Association | RB | Revenue Bonds |
AMT | Alternative Minimum Tax (subject to) | GO | General Obligation Bonds | S/F | Single-Family |
ARB | Airport Revenue Bonds | HDA | Housing Development Agency | SAN | State Aid Notes |
BHAC | Berkshire Hathaway Assurance Corp. | HFA | Housing Finance Agency | SONYMA | State of New York Mortgage Agency |
CAB | Capital Appreciation Bonds | HRB | Housing Revenue Bonds | Syncora | Syncora Guarantee |
CIFG | CDC IXIS Financial Guaranty | IDA | Industrial Development Authority | VRDN | Variable Rate Demand Notes |
COP | Certificates of Participation | IDB | Industrial Development Board | ||
EDA | Economic Development Authority | IDRB | Industrial Development Revenue Bonds |
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 15 |
Schedule of Investments (continued) | BlackRock Short-Term Municipal Fund (Percentages shown are based on Net Assets) |
---|
Municipal Bonds | Par (000) | Value | |||
Idaho — 0.9% | |||||
Idaho Housing & Finance Association, RB, Unemployment | |||||
Compensation, 5.00%, 8/15/14 | $ | 8,585 | $ | 9,503,337 | |
Illinois — 5.2% | |||||
City of Chicago Illinois, RB, O’Hare International Airport, | |||||
General, Third Lien, Series A, 5.00%, 1/01/13 | 12,355 | 12,856,984 | |||
Illinois Finance Authority, RB, University of Chicago, | |||||
Series B, 5.00%, 7/01/13 | 2,000 | 2,136,460 | |||
Railsplitter Tobacco Settlement Authority, RB, | |||||
4.00%, 6/01/13 | 12,690 | 13,183,006 | |||
Regional Transit Authority, Refunding RB, ERS, VRDN, | |||||
Series B, 0.90%, 6/01/25 | 18,800 | 18,800,000 | |||
State of Illinois, GO: | |||||
Refunding, 5.00%, 1/01/13 | 2,555 | 2,654,108 | |||
Series B, 5.00%, 3/01/13 | 5,340 | 5,578,538 | |||
55,209,096 | |||||
Indiana — 0.7% | |||||
Indiana Finance Authority, RB, Water Utilities, Citizens | |||||
Energy Group Project, 3.00%, 10/01/14 | 5,000 | 5,178,100 | |||
Indiana Health Facility Financing Authority, RB, Ascension | |||||
Health, Series A1, 5.00%, 11/01/27 (a) | 2,265 | 2,392,814 | |||
7,570,914 | |||||
Iowa — 0.7% | |||||
Iowa Higher Education Loan Authority, RB, Private | |||||
College Facility: | |||||
4.00%, 12/01/12 | 1,500 | 1,551,975 | |||
4.00%, 12/01/13 | 1,150 | 1,229,695 | |||
Iowa Student Loan Liquidity Corp., RB, Senior Series A-1, | |||||
AMT, 3.10%, 12/01/14 | 5,000 | 4,966,500 | |||
7,748,170 | |||||
Kansas — 1.2% | |||||
Johnson County Unified School District No. 229 Blue | |||||
Valley, GO, Refunding, Series B, 4.00%, 10/01/13 | 6,745 | 7,173,577 | |||
Kansas State Department of Transportation, Refunding RB, | |||||
Series A, 5.00%, 9/01/12 | 5,000 | 5,160,100 | |||
12,333,677 | |||||
Kentucky — 1.7% | |||||
Kentucky Economic Development Finance Authority, | |||||
Refunding RB, Baptist Healthcare System, Series A, | |||||
5.00%, 8/15/12 | 2,650 | 2,719,483 | |||
Louisville/Jefferson County Metropolitan Government, | |||||
Refunding RB, Louisville Gas & Electric Project, | |||||
Mandatory Put Bonds, 1.90%, 10/01/33 (a) | 15,000 | 15,046,350 | |||
17,765,833 | |||||
Louisiana — 2.4% | |||||
State of Louisiana, GO, Refunding: | |||||
Series A (NPFGC), 5.00%, 8/01/14 | 12,000 | 13,359,360 | |||
Series B, 5.00%, 4/15/12 | 4,220 | 4,279,164 | |||
State of Louisiana, GO, Series A, 5.00%, 5/01/13 | 7,075 | 7,516,056 | |||
25,154,580 | |||||
Maine — 0.1% | |||||
Maine Municipal Bond Bank, RB, Series D, | |||||
5.00%, 11/01/12 | 1,460 | 1,518,385 | |||
Massachusetts — 3.7% | |||||
Commonwealth of Massachusetts, GO: | |||||
Consolidated Loan, Series A, 5.00%, 8/01/12 | 1,180 | 1,213,323 | |||
Consolidated Loan, Series B, 5.00%, 8/01/15 | 2,500 | 2,870,250 | |||
Commonwealth of Massachusetts, GO, Refunding, | |||||
Consolidated Loan, Series D (NPFGC): | |||||
5.50%, 11/01/12 | 4,235 | 4,422,526 | |||
6.00%, 11/01/13 | 5,000 | 5,510,300 |
Municipal Bonds | Par (000) | Value | |||
Massachusetts (concluded) | |||||
Massachusetts Bay Transportation Authority, Refunding RB, | |||||
General Transportation System, Series A (NPFGC), | |||||
5.80%, 3/01/12 | $ | 3,745 | $ | 3,780,203 | |
Massachusetts State Department of Transportation, | |||||
Refunding RB, Senior Series B, 5.00%, 1/01/14 | 12,155 | 13,106,615 | |||
University of Massachusetts Building Authority, RB, | |||||
Senior Series 1, 5.00%, 11/01/13 | 7,555 | 8,176,021 | |||
39,079,238 | |||||
Michigan — 0.6% | |||||
City of Detroit Michigan, Refunding RB, Series C (NPFGC), | |||||
5.00%, 7/01/14 | 2,500 | 2,694,925 | |||
State of Michigan, GO Refunding, 5.25%, 12/01/12 | 3,000 | 3,134,820 | |||
5,829,745 | |||||
Minnesota — 2.1% | |||||
State of Minnesota, GO, Various Purpose, Series H, | |||||
5.00%, 11/01/12 | 15,000 | 15,592,500 | |||
State of Minnesota, GO, Refunding, State Various | |||||
Purpose, Series D, 5.00%, 8/01/14 | 6,000 | 6,689,580 | |||
22,282,080 | |||||
Missouri — 0.2% | |||||
County of Jackson Missouri, RB, Harry S. Truman Sports | |||||
Complex (AMBAC), 5.00%, 12/01/12 | 2,000 | 2,073,360 | |||
Nebraska — 0.3% | |||||
Nebraska Public Power District, Refunding RB, General, | |||||
Series B-1 (NPFGC), 5.00%, 1/01/14 | 3,000 | 3,254,850 | |||
Nevada — 1.2% | |||||
Clark County School District, GO, Limited Tax, Building, | |||||
Series C, 5.00%, 6/15/13 | 6,305 | 6,708,646 | |||
Clark County School District, GO, Refunding, Series B | |||||
(NPFGC), 5.00%, 6/15/12 | 6,000 | 6,127,620 | |||
12,836,266 | |||||
New Jersey — 6.9% | |||||
County of Essex New Jersey, GO, Improvement, Series A, | |||||
5.00%, 8/01/13 | 2,290 | 2,441,117 | |||
Gloucester County Improvement Authority, Refunding RB, | |||||
Waste Management Inc. Project, Series A, Mandatory | |||||
Put Bonds, 2.63%, 12/01/29 (a) | 4,625 | 4,687,160 | |||
New Jersey Building Authority, Refunding RB, Series A, | |||||
5.00%, 6/15/15 | 13,880 | 15,553,095 | |||
New Jersey Health Care Facilities Financing Authority, | |||||
Refunding RB: | |||||
Barnabas Health, Series A, 5.00%, 7/01/14 | 7,250 | 7,622,143 | |||
Meridian Health, 5.00%, 7/01/14 | 2,000 | 2,160,020 | |||
New Jersey State Housing & Mortgage Finance Agency, | |||||
RB, Series B (AGM), 1.15%, 11/01/12 | 6,800 | 6,826,180 | |||
New Jersey Transportation Trust Fund Authority, RB, | |||||
Transportation, Series B, 5.00%, 6/15/15 | 1,825 | 2,041,701 | |||
New Jersey Transportation Trust Fund Authority, Refunding | |||||
RB, Transportation System, Series B (NPFGC), | |||||
5.25%, 12/15/12 | 4,990 | 5,212,853 | |||
State of New Jersey, GO, Refunding: | |||||
4.00%, 8/01/12 | 7,115 | 7,272,099 | |||
Series Q, 4.00%, 8/15/13 | 18,000 | 19,056,960 | |||
72,873,328 | |||||
New Mexico — 0.8% | |||||
New Mexico Finance Authority, Refunding RB, Senior Lien, | |||||
Series A, 5.00%, 6/15/13 | 8,000 | 8,546,080 |
See Notes to Financial Statements.
16 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments (continued) | BlackRock Short-Term Municipal Fund (Percentages shown are based on Net Assets) |
---|
Municipal Bonds | Par (000) | Value | |||
New York — 12.9% | |||||
City of New York New York, GO, Refunding: | |||||
Series B, 5.00%, 8/01/13 | $ | 22,750 | $ | 24,376,625 | |
Series B (NPFGC), 5.75%, 8/01/13 | 3,050 | 3,146,715 | |||
Series C, 5.00%, 8/01/13 | 8,225 | 8,813,087 | |||
Series D, 5.00%, 2/01/13 | 2,000 | 2,099,180 | |||
Series H, 5.00%, 8/01/12 | 3,400 | 3,493,228 | |||
Long Island Power Authority, RB, Series 2010A, | |||||
5.00%, 5/01/14 | 4,400 | 4,794,328 | |||
New York City Transitional Finance Authority, Future Tax | |||||
Secured, Sub-Series E, RB: | |||||
4.00%, 11/01/12 | 3,000 | 3,095,760 | |||
5.00%, 11/01/13 | 2,000 | 2,168,740 | |||
New York City Transitional Finance Authority, Refunding RB, | |||||
Future Tax Secured, Sub-Series D-2, 5.00%, 11/01/12 | 20,315 | 21,137,961 | |||
New York State Dormitory Authority, RB: | |||||
General Purpose, Series A, 5.00%, 3/15/15 | 5,560 | 6,295,866 | |||
General Purpose, Series E, 5.00%, 2/15/13 | 5,865 | 6,175,904 | |||
New York State Dormitory Authority, Refunding RB, State | |||||
University Educational Facilities, 3rd General Resolution, | |||||
Series B, Mandatory Put Bonds, 5.25%, 11/15/23 (a) | 6,000 | 6,106,920 | |||
New York State Energy Research & Development Authority, | |||||
Refunding RB, Consolidated Edison Co. of New York Inc. | |||||
Project, Mandatory Put Bonds, AMT, 1.45%, 6/01/36 (a) | 5,000 | 5,022,550 | |||
New York State Environmental Facilities Corp., RB, | |||||
Waste Management Inc. Project, Series A, Mandatory | |||||
Put Bonds, 2.50%, 7/01/17 (a) | 5,000 | 5,051,200 | |||
New York State Local Government Assistance Corp., | |||||
Refunding RB, Sub Lien, Series A, 5.00%, 4/01/15 | 7,000 | 7,973,560 | |||
New York State Thruway Authority, Refunding RB: | |||||
General, Second Series B (NPFGC), 5.00%, 4/01/13 | 5,550 | 5,875,563 | |||
Series A, 5.00%, 4/01/12 | 5,000 | 5,061,250 | |||
New York State Urban Development Corp., Refunding RB, | |||||
Service Contract, Series A-1, 5.00%, 1/01/13 | 7,320 | 7,659,648 | |||
Port Authority of New York & New Jersey, RB, | |||||
Consolidated, 169th Series, 5.00%, 10/15/15 | 2,680 | 3,026,417 | |||
State of New York, GO, Refunding, Series C, | |||||
5.00%, 4/15/12 | 5,285 | 5,360,153 | |||
136,734,655 | |||||
North Carolina — 3.3% | |||||
County of Mecklenburg, GO, Refunding, Series C, | |||||
5.00%, 2/01/13 | 9,400 | 9,886,074 | |||
State of North Carolina, GO, Public Improvement, | |||||
Series A, 5.00%, 3/01/13 | 9,000 | 9,499,950 | |||
State of North Carolina, RB, Series A, 5.00%, 5/01/13 | 8,055 | 8,552,719 | |||
State of North Carolina, Refunding RB, Series B, | |||||
4.00%, 11/01/14 | 4,905 | 5,379,068 | |||
University of North Carolina at Chapel Hill, RB, Series A, | |||||
4.00%, 2/01/13 | 1,605 | 1,659,650 | |||
34,977,461 | |||||
Ohio — 1.4% | |||||
Ohio Air Quality Development Authority, Refunding | |||||
PCRB, FirstEnergy, Series D, Mandatory Put Bonds, | |||||
4.75%, 8/01/29 (a) | 10,000 | 10,170,400 | |||
Ohio State University, Refunding RB, Series A, | |||||
5.00%, 12/01/12 | 4,000 | 4,173,800 | |||
14,344,200 | |||||
Oklahoma — 0.8% | |||||
Oklahoma Turnpike Authority, Refunding RB, Second | |||||
Senior, Series A, 5.00%, 1/01/15 | 7,875 | 8,871,896 | |||
Oregon — 0.5% | |||||
City of Portland Oregon, Refunding RB, Second Lien, | |||||
Series A, 5.00%, 3/01/14 | 4,950 | 5,427,873 |
Municipal Bonds | Par (000) | Value | |||
Pennsylvania — 5.0% | |||||
City of Philadelphia Pennsylvania, Refunding RB: | |||||
Airport Revenue, Series A, AMT, 5.00%, 6/15/15 | $ | 2,550 | $ | 2,794,877 | |
Series A (AGM), 5.00%, 6/15/13 | 9,000 | 9,591,120 | |||
Commonwealth of Pennsylvania, GO: | |||||
First Series, 5.00%, 3/15/13 | 7,455 | 7,879,711 | |||
First Series A, 5.00%, 2/15/13 | 8,280 | 8,720,082 | |||
Refunding, First Series (NPFGC), 5.00%, 2/01/15 | 7,605 | 8,269,753 | |||
Pennsylvania Economic Development Financing | |||||
Authority, RB: | |||||
Convention Center Project, Series A, 5.00%, 6/15/12 | 4,000 | 4,080,400 | |||
Waste Management Inc. Project, 2.75%, 9/01/13 (a) | 4,250 | 4,333,682 | |||
Waste Management Inc. Project, Mandatory Put | |||||
Bonds, 2.63%, 12/01/33 (a) | 3,500 | 3,547,040 | |||
Pennsylvania Intergovernmental Cooperation Authority, | |||||
Special Tax Bonds, Refunding, Philadelphia Funding | |||||
Program, 5.00%, 6/15/13 | 3,085 | 3,288,703 | |||
52,505,368 | |||||
South Carolina — 1.2% | |||||
South Carolina Transportation Infrastructure Bank, | |||||
Refunding RB, Series A (AMBAC), 5.00%, 10/01/15 | 5,440 | 6,155,142 | |||
State of South Carolina, GO, State Highway, Series B, | |||||
4.50%, 4/01/12 | 6,000 | 6,065,820 | |||
12,220,962 | |||||
Tennessee — 1.2% | |||||
Metropolitan Government of Nashville & Davidson County | |||||
Tennessee, Refunding RB (NPFGC), 5.00%, 1/01/14 | 8,110 | 8,829,519 | |||
Shelby County, GO, Refunding, Series A (AMBAC): | |||||
5.00%, 4/01/12 | 40 | 40,486 | |||
5.00%, 4/01/12 | 3,960 | 4,008,391 | |||
12,878,396 | |||||
Texas — 8.5% | |||||
City of El Paso Texas, Refunding RB, Series A, | |||||
4.00%, 3/01/14 | 2,000 | 2,146,380 | |||
City of Houston Texas, Sub Lien, Refunding RB: | |||||
Series A, AMT, 5.00%, 7/01/14 | 4,000 | 4,306,880 | |||
Series B, 5.00%, 7/01/14 | 1,500 | 1,639,740 | |||
County of Harris Texas, Refunding RB, Toll Road, | |||||
Senior Lien, Series B-1 (NPFGC), 5.00%, 8/15/14 | 1,295 | 1,439,393 | |||
Dallas Independent School District, GO, Refunding, | |||||
4.00%, 2/15/15 | 2,200 | 2,425,082 | |||
Gulf Coast Waste Disposal Authority, RB, BP Products | |||||
North America, Inc. Project, 2.30%, 1/01/42 (a) | 4,615 | 4,699,270 | |||
Harris County Cultural Education Facilities Finance | |||||
Corp., RB, Methodist Hospital System, Series B, | |||||
5.25%, 12/01/14 | 2,600 | 2,909,712 | |||
Harris County Cultural Education Facilities Finance Corp., | |||||
Refunding RB, Methodist Hospital System: | |||||
5.00%, 6/01/12 | 3,450 | 3,514,515 | |||
5.00%, 6/01/13 | 10,000 | 10,620,900 | |||
Lower Colorado River Authority, RB, LCRA Transmission | |||||
Service (AGM), 5.38%, 5/15/12 | 3,475 | 3,541,824 | |||
Lower Colorado River Authority, Refunding RB: | |||||
5.00%, 5/15/13 | 6,000 | 6,355,200 | |||
5.00%, 5/15/14 | 5,000 | 5,486,900 | |||
Series A, 5.00%, 5/15/14 | 3,590 | 3,939,594 | |||
North Texas Tollway Authority, RB, System, First Tier, | |||||
Series L-2, Mandatory Put Bonds, 6.00%, 1/01/38 (a) | 3,700 | 3,887,553 | |||
State of Texas, GO, Refunding, Public Finance Authority: | |||||
5.00%, 10/01/12 | 11,170 | 11,571,785 | |||
Series A, 5.00%, 10/01/12 | 3,500 | 3,627,505 | |||
Texas A&M University, RB, Financing System, Series D, | |||||
5.00%, 5/15/13 | 3,325 | 3,538,132 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 17 |
Schedule of Investments (continued) | BlackRock Short-Term Municipal Fund (Percentages shown are based on Net Assets) |
---|
Municipal Bonds | Par (000) | Value | |||
Texas (concluded) | |||||
Texas A&M University, Refunding RB, Financing System, | |||||
Series B, 5.00%, 5/15/12 | $ | 4,000 | $ | 4,072,040 | |
Texas Public Finance Authority, RB, Unemployment | |||||
Compensation, Series A, 5.00%, 7/01/13 | 10,000 | 10,697,900 | |||
90,420,305 | |||||
Utah — 0.7% | |||||
City of Riverton Utah, RB, IHC Health Services, Inc., | |||||
5.00%, 8/15/13 | 1,400 | 1,499,876 | |||
State of Utah, GO, Series C, 3.00%, 7/01/12 | 5,500 | 5,578,760 | |||
7,078,636 | |||||
Virginia — 5.0% | |||||
County of Fairfax Virginia, GO: | |||||
Refunding, Public Improvement, Series A, | |||||
5.25%, 4/01/12 | 3,940 | 3,990,708 | |||
Series D, 5.00%, 10/01/13 | 10,000 | 10,821,000 | |||
Louisa IDA, RB, Virginia Electric & Power Co. Project, | |||||
Series A, Mandatory Put Bonds, AMT, | |||||
2.50%, 3/01/31 (a) | 20,000 | 20,335,400 | |||
Virginia Public Building Authority, RB: | |||||
Series B, 5.00%, 8/01/12 | 7,185 | 7,387,977 | |||
Series C, 5.00%, 8/01/12 | 1,000 | 1,028,250 | |||
Virginia Public School Authority, RB, School Educational | |||||
Technology Notes, Series IX, 5.00%, 4/15/12 | 4,065 | 4,122,926 | |||
Virginia Public School Authority, Refunding RB, Series A, | |||||
5.00%, 8/01/12 | 1,000 | 1,028,610 | |||
Virginia Resources Authority, Refunding RB, Series A, | |||||
4.00%, 10/01/12 | 4,145 | 4,262,925 | |||
52,977,796 | |||||
Washington — 1.5% | |||||
City of Seattle Washington, GO, Refunding, Limited Tax, | |||||
Series B, 5.00%, 8/01/13 | 5,000 | 5,371,800 | |||
City of Seattle Washington, Refunding RB, Improvement, | |||||
Series B, 5.00%, 2/01/14 | 10,000 | 10,940,300 | |||
16,312,100 | |||||
Total Long-Term Investments | |||||
(Cost — $1,027,107,116) — 97.9% | 1,036,715,376 |
Short-Term Securities | Par (000) | Value | ||||
Georgia — 1.0% | ||||||
Burke County Development Authority, Refunding RB, | ||||||
Georgia Power Co. Plant Vogtle Project, Mandatory | ||||||
Put Bonds, 0.80%, 6/21/12 (a) | $ | 10,535 | $ | 10,545,113 | ||
Michigan — 0.3% | ||||||
Michigan Finance Authority, RB, Series C-2, | ||||||
2.00%, 8/20/12 | 3,000 | 3,033,270 | ||||
Shares | ||||||
Money Market — 1.6% | ||||||
FFI Institutional Tax-Exempt Fund, 0.01% (d)(e) | 16,944,113 | 16,944,113 | ||||
Total Short-Term Securities | ||||||
(Cost — $30,510,790) — 2.9% | 30,522,496 | |||||
Total Investments (Cost — $1,057,617,906) — 100.8% | 1,067,237,872 | |||||
Liabilities in Excess of Other Assets — (0.8)% | (8,575,169 | ) | ||||
Net Assets — 100.0% | $ | 1,058,662,703 |
(a) | Variable rate security. Rate shown is as of report date. |
(b) | When-issued security. Unsettled when-issued transactions were as follows: |
Counterparty | Value | Unrealized Appreciation | ||
Merrill Lynch, Pierce, Fenner & Smith | $ | 22,249,628 | $ | 82,184 |
(c) | Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand. |
(d) | Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
Affiliate | Shares Held at June 30, 2011 | Net Activity | Shares Held at December 31, 2011 | Income | |
FFI Institutional | |||||
Tax-Exempt Fund | 1,487,006 | 15,457,107 | 16,944,113 | $ | 547 |
(e) | Represents the current yield as of report date. |
See Notes to Financial Statements.
18 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments (concluded) | BlackRock Short-Term Municipal Fund |
---|
• | Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
• | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
• | Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
• | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments) |
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’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 inputs used as of December 31, 2011 in determining the fair valuation of the Fund’s investments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |||
Assets: | |||||||
Investments: | |||||||
Long-Term Investments1 | — | $ | 1,036,715,376 | — | $ | 1,036,715,376 | |
Short-Term Securities | $ | 16,944,113 | 13,578,383 | — | 30,522,496 | ||
Total | $ | 16,944,113 | $ | 1,050,293,759 | — | $ | 1,067,237,872 |
1 | See above Schedule of Investments for values in each state or political subdivision. |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 19 |
Schedule of Investments December 31, 2011 (Unaudited) | BlackRock National Municipal Fund |
---|
Municipal Bonds | Par (000) | Value | |||
Alabama — 1.0% | |||||
Alabama State Docks Department, Refunding RB, | |||||
6.00%, 10/01/40 | $ | 15,500 | $ | 16,700,475 | |
Birmingham Special Care Facilities Financing Authority, | |||||
RB, Children’s Hospital (AGC): | |||||
6.00%, 6/01/34 | 1,185 | 1,325,328 | |||
6.00%, 6/01/39 | 15,090 | 16,710,364 | |||
Courtland IDB Alabama, RB, International Paper Co. | |||||
Projects, Series A, 6.25%, 11/01/33 | 2,590 | 2,762,986 | |||
Courtland IDB, Refunding RB, AMT: | |||||
Champion International Corp. Project, | |||||
6.00%, 8/01/29 | 195 | 195,026 | |||
International Paper Co., Series B, 6.25%, 8/01/25 | 750 | 768,915 | |||
Prattville Industrial Development Board, RB, Recovery | |||||
Zone Facility, Series C, 6.25%, 11/01/33 | 3,380 | 3,605,750 | |||
42,068,844 | |||||
Alaska — 0.2% | |||||
Borough of Matanuska-Susitna Alaska, RB, Goose Creek | |||||
Correctional Center (AGC): | |||||
6.00%, 9/01/28 | 2,000 | 2,349,840 | |||
6.00%, 9/01/32 | 5,250 | 5,989,357 | |||
8,339,197 | |||||
Arizona — 0.3% | |||||
Maricopa County & Phoenix Industrial Development | |||||
Authorities, Refunding RB, S/F, Series A-2, AMT | |||||
(Ginnie Mae), 5.80%, 7/01/40 | 1,845 | 1,902,435 | |||
Maricopa County IDA Arizona, RB, Arizona Charter Schools | |||||
Project, Series A, 6.75%, 7/01/29 | 3,100 | 2,098,514 | |||
Peoria Improvement District No. 8401 Arizona, Special | |||||
Assessment Bonds, No. 8802, 7.20%, 1/01/13 | 510 | 519,363 | |||
Pima County IDA, IDRB, Tucson Electric Power, Series A, | |||||
6.38%, 9/01/29 | 4,065 | 4,152,194 | |||
Pinal County IDA Arizona, RB, San Manuel Facility Project, | |||||
AMT, 6.25%, 6/01/26 | 500 | 459,710 | |||
Prescott Valley Improvement District Arizona, Special | |||||
Assessment Bonds, Sewer Collection System Roadway | |||||
Repair, 7.90%, 1/01/12 | 60 | 60,011 | |||
Vistancia Community Facilities District Arizona, GO: | |||||
6.75%, 7/15/22 | 3,000 | 3,049,440 | |||
5.75%, 7/15/24 | 2,125 | 2,255,284 | |||
14,496,951 | |||||
California — 16.2% | |||||
ABAG Finance Authority for Nonprofit Corps, Refunding RB, | |||||
Sharp Healthcare, 6.25%, 8/01/39 | 9,000 | 9,779,400 | |||
California Health Facilities Financing Authority, RB: | |||||
Catholic Healthcare West Series A, 6.00%, 7/01/34 | 5,100 | 5,273,094 | |||
Catholic Healthcare West, Series J, 5.63%, 7/01/32 | 16,025 | 16,698,050 | |||
Sutter Health, Series A, 5.25%, 11/15/46 | 12,405 | 12,566,885 | |||
California Health Facilities Financing Authority, | |||||
Refunding RB: | |||||
Series A, 6.00%, 7/01/39 | 11,905 | 12,920,973 | |||
Series B, 6.00%, 8/15/42 | 21,340 | 23,541,861 | |||
Stanford Hospital, Series A-3, 5.50%, 11/15/40 | 10,325 | 11,029,888 | |||
California State Public Works Board, RB, Various | |||||
Capital Projects: | |||||
Sub-Series A-1, 6.00%, 3/01/35 | 13,625 | 14,766,094 | |||
Sub-Series I-1, 6.13%, 11/01/29 | 10,000 | 11,111,200 | |||
Sub-Series I-1, 6.38%, 11/01/34 | 11,680 | 12,929,059 | |||
Sub-Series I-1, 6.63%, 11/01/34 | 5,485 | 6,173,861 | |||
California Statewide Communities Development | |||||
Authority, RB: | |||||
Health Facility, Memorial Health Services, Series A, | |||||
6.00%, 10/01/23 | 9,880 | 10,272,236 | |||
Kaiser Permanente, Series B, 5.25%, 3/01/45 | 10,000 | 10,111,100 | |||
Sutter Health, Series A, 6.00%, 8/15/42 | 10,190 | 11,241,404 |
Municipal Bonds | Par (000) | Value | |||
California (continued) | |||||
California Statewide Communities Development Authority, | |||||
Refunding RB, Catholic Healthcare West: | |||||
Series B, 5.50%, 7/01/30 | $ | 2,985 | $ | 3,133,534 | |
Series E, 5.50%, 7/01/31 | 1,920 | 2,012,678 | |||
Chula Vista Community Facilities District California, | |||||
Special Tax Bonds, District No. 06-1, Eastlake-Woods, | |||||
Improvement Area A, 6.15%, 9/01/26 | 3,215 | 3,250,654 | |||
City of Chula Vista California, Refunding RB, San Diego | |||||
Gas & Electric, Series A, 5.88%, 2/15/34 | 5,850 | 6,547,964 | |||
City of Newport Beach California, RB, Hoag Memorial | |||||
Hospital Presbyterian, 6.00%, 12/01/40 | 7,485 | 8,522,945 | |||
City of San Jose California, RB: | |||||
California Airport, Series A-1, AMT, 5.75%, 3/01/34 | 6,000 | 6,313,740 | |||
Convention Center Expansion & Renovation Project, | |||||
6.50%, 5/01/36 | 1,510 | 1,650,098 | |||
Convention Center Expansion & Renovation Project, | |||||
6.50%, 5/01/42 | 5,130 | 5,586,160 | |||
City of San Jose California, Refunding RB, Series A, AMT | |||||
(AMBAC), 5.50%, 3/01/32 | 6,275 | 6,438,903 | |||
County of Sacramento California, RB, Subordinated and | |||||
Passenger Facility Charges/Grant, Series C: | |||||
6.00%, 7/01/39 | 16,745 | 18,196,624 | |||
6.00%, 7/01/41 | 13,215 | 14,263,875 | |||
Cucamonga Valley Water District, Refunding RB, | |||||
5.38%, 9/01/35 | 26,315 | 29,325,436 | |||
East Bay Municipal Utility District, Refunding RB, | |||||
Sub-Series A, 5.00%, 6/01/36 | 10,400 | 11,307,400 | |||
Grossmont Healthcare District, GO, Election of 2006, | |||||
Series B, 6.13%, 7/15/40 | 3,500 | 4,017,685 | |||
Los Angeles Department of Water & Power, RB, System, | |||||
Series A, 5.25%, 7/01/39 | 40,000 | 44,290,800 | |||
Los Angeles Municipal Improvement Corp., RB, Real | |||||
Property, Series E: | |||||
6.00%, 9/01/34 | 4,540 | 4,967,986 | |||
6.00%, 9/01/39 | 9,450 | 10,360,129 | |||
Metropolitan Water District of Southern California, RB, | |||||
Series A: | |||||
5.00%, 10/01/27 | 15,000 | 18,593,700 | |||
5.00%, 7/01/37 | 10,000 | 10,796,800 | |||
Modesto Irrigation District, COP, Capital Improvements, | |||||
Series A, 6.00%, 10/01/39 | 11,680 | 12,790,768 | |||
Orange County Sanitation District, COP, Series A, | |||||
5.00%, 2/01/35 | 10,000 | 10,713,400 | |||
Orange County Water District, COP: | |||||
Refunding, 5.00%, 8/15/39 | 15,000 | 16,118,400 | |||
Series B (NPFGC), 5.00%, 8/15/34 | 10,000 | 10,175,900 | |||
San Francisco City & County Airports Commission, RB, | |||||
Series E, 6.00%, 5/01/39 | 24,300 | 27,378,567 | |||
San Francisco City & County Airports Commission, | |||||
Refunding RB, Second Series 34E, AMT (AGM): | |||||
5.75%, 5/01/21 | 8,220 | 9,629,483 | |||
5.75%, 5/01/23 | 17,000 | 19,294,320 | |||
San Francisco City & County Public Utilities Commission, | |||||
RB, WSIP Sub-Series A, 5.00%, 11/01/37 | 20,000 | 21,427,200 | |||
San Francisco City & County Redevelopment Agency, | |||||
Special Tax Bonds, Community Facilities District | |||||
No. 6-Mission, Series A: | |||||
6.00%, 8/01/21 | 5,000 | 5,005,200 | |||
6.00%, 8/01/25 | 2,550 | 2,551,479 | |||
San Francisco Uptown Parking Corp. California, RB, | |||||
Union Square (NPFGC), 6.00%, 7/01/20 | 1,075 | 1,100,886 | |||
San Joaquin County Transportation Authority, RB, Limited | |||||
Tax Measure K, Series A, 6.00%, 3/01/36 | 12,830 | 14,878,823 | |||
San Jose Financing Authority, RB, Civic Center Project, | |||||
Series B (AMBAC), 5.00%, 6/01/32 | 9,060 | 9,085,821 | |||
San Juan Water District, COP, Series A, 6.00%, 2/01/39 | 10,000 | 11,210,000 |
See Notes to Financial Statements.
20 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments (continued) | BlackRock National Municipal Fund |
---|
Municipal Bonds | Par (000) | Value | |||
California (concluded) | |||||
State of California, GO, Various Purpose: | |||||
6.50%, 4/01/33 | $ | 40,000 | $ | 47,642,000 | |
6.00%, 4/01/35 | 4,385 | 4,949,744 | |||
6.00%, 4/01/38 | 35,665 | 40,114,565 | |||
Tahoe-Truckee Unified School District, GO, School Facility | |||||
Improvement District 2, Election of 2002, Series A | |||||
(NPFGC), 5.25%, 8/01/29 | 2,535 | 2,651,204 | |||
Tuolumne Wind Project Authority, RB, Tuolumne Co. | |||||
Project, Series A, 5.88%, 1/01/29 | 19,355 | 21,829,343 | |||
University of California, RB, Series O, 5.75%, 5/15/34 | 1,450 | 1,640,255 | |||
668,179,574 | |||||
Colorado — 0.4% | |||||
Colorado Health Facilities Authority, RB, Catholic Health | |||||
Initiatives, Series D, 6.25%, 10/01/33 | 4,315 | 4,805,961 | |||
Colorado Housing & Finance Authority, RB, S/F Program, | |||||
Senior Series B-3, 6.55%, 10/01/16 | 65 | 67,688 | |||
Colorado Housing & Finance Authority, Refunding RB, | |||||
S/F Program: | |||||
Senior Series A-2, AMT, 7.50%, 4/01/31 | 105 | 106,856 | |||
Senior Series A-3, 7.35%, 10/01/30 | 50 | 52,411 | |||
Senior Series C-3 (FHA), 6.75%, 10/01/21 | 160 | 161,971 | |||
Senior Series C-3 (FHA), 7.15%, 10/01/30 | 40 | 40,735 | |||
Series B-2, AMT, 7.10%, 4/01/17 | 35 | 36,250 | |||
Series B-2, AMT, 7.25%, 10/01/31 | 375 | 384,866 | |||
Series C-2, AMT (FHA), 7.25%, 10/01/31 | 150 | 150,717 | |||
Plaza Metropolitan District No. 1 Colorado, Tax Allocation | |||||
Bonds, Public Improvement Fee, Tax Increment: | |||||
8.00%, 12/01/25 | 7,700 | 7,906,437 | |||
Subordinate, 8.13%, 12/01/25 | 1,885 | 1,790,863 | |||
15,504,755 | |||||
Connecticut — 0.1% | |||||
Connecticut State Development Authority, RB, Bridgeport, | |||||
AMT (AMBAC), 6.15%, 4/01/35 | 1,250 | 1,250,150 | |||
Connecticut State Health & Educational Facility | |||||
Authority, RB, Bridgeport Hospital, Series A (NPFGC), | |||||
6.63%, 7/01/18 | 1,000 | 1,007,890 | |||
2,258,040 | |||||
Delaware — 0.4% | |||||
County of Sussex Delaware, RB, NRG Energy, Inc., Indian | |||||
River Project, 6.00%, 10/01/40 | 15,000 | 15,227,400 | |||
District of Columbia — 1.1% | |||||
District of Columbia, RB, Series A, 5.50%, 12/01/30 | 20,530 | 23,747,462 | |||
District of Columbia Water & Sewer Authority, RB, Series A: | |||||
6.00%, 10/01/35 | 12,630 | 15,126,572 | |||
5.50%, 10/01/39 | 6,475 | 7,136,939 | |||
46,010,973 | |||||
Florida — 5.2% | |||||
Anthem Park Community Development District, Special | |||||
Assessment Bonds, 5.80%, 5/01/36 (a)(b) | 1,815 | 1,081,359 | |||
City of Jacksonville Florida, RB, Series A: | |||||
5.25%, 10/01/32 | 3,775 | 4,162,353 | |||
5.25%, 10/01/33 | 3,975 | 4,352,585 | |||
City of Tampa Florida, RB, Refunding (AGM), | |||||
6.00%, 10/01/16 | 1,455 | 1,778,941 | |||
County of Escambia Florida, RB, International Paper Co. | |||||
Projects, Series B, 6.25%, 11/01/33 | 7,500 | 8,000,925 | |||
County of Miami-Dade Florida, GO, Building Better | |||||
Communities Program: | |||||
Series B, 6.38%, 7/01/28 | 9,300 | 10,623,483 | |||
Series B-1, 5.75%, 7/01/33 | 2,400 | 2,639,832 | |||
Series B-1, 6.00%, 7/01/38 | 30,000 | 33,642,600 |
Municipal Bonds | Par (000) | Value | |||
Florida (concluded) | |||||
County of Miami-Dade Florida, RB, Miami International | |||||
Airport, Series A, AMT (AGC): | |||||
5.50%, 10/01/26 | $ | 7,000 | $ | 7,415,730 | |
5.50%, 10/01/27 | 5,495 | 5,804,973 | |||
County of Miami-Dade Florida, Refunding RB, Series C, | |||||
6.00%, 10/01/23 | 25,000 | 30,331,750 | |||
Fiddlers Creek Community Development District | |||||
No. 2, Special Assessment Bonds, Series A, | |||||
6.38%, 5/01/35 (a)(b) | 6,850 | 3,592,140 | |||
Florida Housing Finance Corp., Refunding RB, AMT, | |||||
Homeowner Mortgage, Series 1 (Ginnie Mae), | |||||
6.00%, 7/01/39 | 3,000 | 3,016,620 | |||
Florida Ports Financing Commission, Refunding RB, State | |||||
Transportation Trust Fund, Series B, AMT: | |||||
5.13%, 6/01/27 | 10,000 | 10,949,400 | |||
5.38%, 10/01/29 | 1,650 | 1,803,731 | |||
Harbor Bay Community Development District Florida, | |||||
Special Assessment Bonds, Series A, 7.00%, 5/01/33 | 935 | 933,850 | |||
Highland Meadows Community Development | |||||
District, Special Assessment Bonds, Series A, | |||||
5.50%, 5/01/36 (a)(b) | 1,090 | 426,332 | |||
Highlands County Health Facilities Authority, RB, Adventist | |||||
Health System/Sunbelt, Series B, 6.00%, 11/15/37 | 4,990 | 5,460,657 | |||
Hillsborough County IDA, RB, National Gypsum Co., AMT: | |||||
Series A, 7.13%, 4/01/30 | 6,000 | 5,414,160 | |||
Series B, 7.13%, 4/01/30 | 7,750 | 6,993,290 | |||
Jacksonville Electric Authority Florida, RB: | |||||
Scherer 4 Project, Series A, 6.00%, 10/01/37 | 11,225 | 12,094,039 | |||
Sub-Series A, 5.63%, 10/01/32 | 10,525 | 11,559,818 | |||
Sub-Series A, 5.50%, 10/01/39 | 10,000 | 10,407,000 | |||
Jacksonville Port Authority, RB, AMT (AGC), | |||||
6.00%, 11/01/38 | 8,240 | 8,344,483 | |||
Lexington Oaks Community District, Special Assessment | |||||
Bonds, Series A, 6.70%, 5/01/12 (c) | 1,030 | 1,060,076 | |||
Mid-Bay Bridge Authority, RB, Series A, 7.25%, 10/01/40 | 6,000 | 6,250,080 | |||
State of Florida, GO, Series A: | |||||
5.75%, 7/01/28 | 3,890 | 4,438,334 | |||
5.38%, 6/01/33 | 4,000 | 4,435,400 | |||
5.50%, 6/01/38 | 4,790 | 5,319,247 | |||
Sterling Hill Community Development District, | |||||
Special Assessment Bonds, Refunding, Series B, | |||||
5.50%, 11/01/10 (a) | 165 | 115,574 | |||
Watergrass Community Development District, Special | |||||
Assessment Bonds, Series B: | |||||
5.13%, 11/01/14 | 1,000 | 688,320 | |||
6.96%, 11/01/17 | 1,820 | 1,671,379 | |||
214,808,461 | |||||
Georgia — 2.3% | |||||
City of Atlanta Georgia, Refunding RB, General, Series C, | |||||
6.00%, 1/01/30 | 30,000 | 35,393,400 | |||
DeKalb County Hospital Authority Georgia, RB, Dekalb | |||||
Medical Center Inc. Project, 6.13%, 9/01/40 | 4,285 | 4,407,808 | |||
Forsyth County School District, GO, 6.70%, 7/01/12 | 230 | 236,380 | |||
Fulton County Residential Care Facilities for the Elderly | |||||
Authority, Refunding RB, Canterbury Court Project, | |||||
Series A, 6.00%, 2/15/22 | 2,250 | 2,152,845 | |||
Municipal Electric Authority of Georgia, RB, Series Y | |||||
(AMBAC): | |||||
6.40%, 1/01/13 | 5,740 | 5,872,651 | |||
6.40%, 1/01/13 (c) | 195 | 200,911 | |||
Municipal Electric Authority of Georgia, Refunding RB: | |||||
Project One, Sub-Series D, 6.00%, 1/01/23 | 10,000 | 11,910,000 | |||
Series EE (AMBAC), 7.00%, 1/01/25 | 20,000 | 27,186,600 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 21 |
Schedule of Investments (continued) | BlackRock National Municipal Fund |
---|
Municipal Bonds | Par (000) | Value | |||
Georgia (concluded) | |||||
Richmond County Development Authority, RB, Recovery | |||||
Zone Facility, International Paper Co., Series B, | |||||
6.25%, 11/01/33 | $ | 3,625 | $ | 3,867,114 | |
Rockdale County Development Authority, RB, Visy Paper | |||||
Project, Series A, AMT, 6.13%, 1/01/34 | 5,000 | 5,049,200 | |||
96,276,909 | |||||
Illinois — 8.3% | |||||
Bolingbrook Special Service Area No. 1, Special | |||||
Tax Bonds, Forest City Project, 5.90%, 3/01/27 | 1,000 | 849,140 | |||
Chicago Board of Education Illinois, Unlimited Tax, GO, | |||||
Series A, 5.50%, 12/01/39 | 29,205 | 31,886,603 | |||
Chicago Transit Authority, RB, Federal Transit Administration | |||||
Section 5309, Series A (AGC), 6.00%, 6/01/26 | 15,000 | 17,246,550 | |||
City of Chicago Illinois, ARB, General, Third Lien, | |||||
Series B-2, AMT: | |||||
(NPFGC), 6.00%, 1/01/27 | 17,690 | 18,517,184 | |||
(Syncora), 6.00%, 1/01/29 | 55,000 | 57,463,450 | |||
City of Chicago Illinois, RB: | |||||
General, Third Lien, Series C, 6.50%, 1/01/41 | 24,125 | 28,209,604 | |||
Series A (BHAC), 5.50%, 1/01/38 | 3,000 | 3,233,070 | |||
County of Cook Illinois, RB, Navistar International Corp. | |||||
Project, Recovery Zone Facility, 6.50%, 10/15/40 | 8,500 | 8,842,040 | |||
Illinois Finance Authority, RB: | |||||
Advocate Health Care Network, Series D, | |||||
6.50%, 11/01/38 | 6,920 | 7,726,180 | |||
Carle Foundation, Series A (AGM), 6.00%, 8/15/41 | 3,500 | 3,717,840 | |||
Community Rehabilitation, 6.50%, 7/01/22 (c) | 1,730 | 1,801,760 | |||
Community Rehabilitation Providers Facilities, | |||||
Series A, 6.50%, 7/01/22 | 1,410 | 1,279,265 | |||
DePaul University, Series A, 6.13%, 10/01/40 | 11,660 | 12,875,672 | |||
Navistar International, Recovery Zone, | |||||
6.50%, 10/15/40 | 11,100 | 11,541,225 | |||
Northwestern Memorial Hospital, Series B, | |||||
6.00%, 8/15/39 | 1,200 | 1,249,752 | |||
Roosevelt University Project, 6.50%, 4/01/39 | 8,000 | 8,466,480 | |||
Rush University Medical Center Obligation Group, | |||||
Series A, 7.25%, 11/01/30 | 6,900 | 7,887,666 | |||
Rush University Medical Center Obligation Group, | |||||
Series B, 7.25%, 11/01/30 | 5,280 | 6,035,779 | |||
Rush University Medical Center, Series C, | |||||
6.38%, 11/01/29 | 2,860 | 3,117,114 | |||
University of Chicago, Series B, 6.25%, 7/01/38 | 25,000 | 28,983,250 | |||
Illinois Finance Authority, Refunding RB: | |||||
Carle Foundation, Series A, 6.00%, 8/15/41 | 2,450 | 2,553,439 | |||
Central DuPage Health, Series B, 5.50%, 11/01/39 | 4,200 | 4,409,412 | |||
Northwestern Memorial Hospital, Series A, | |||||
6.00%, 8/15/39 | 29,530 | 32,742,273 | |||
OSF Healthcare System, System A, 7.00%, 11/15/27 | 3,335 | 3,527,763 | |||
OSF Healthcare System, System A, 7.13%, 11/15/35 | 1,870 | 1,966,361 | |||
OSF Healthcare System, System A, 6.00%, 5/15/39 | 10,000 | 10,488,500 | |||
Railsplitter Tobacco Settlement Authority, RB, | |||||
6.00%, 6/01/28 | 13,765 | 14,831,237 | |||
Village of Hodgkins Illinois, RB, Metropolitan Biosolids | |||||
Management LLC Project, AMT, 6.00%, 11/01/23 | 10,000 | 10,006,000 | |||
Village of Wheeling Illinois, Tax Allocation Bonds, North | |||||
Milwaukee/Lake-Cook TIF Project, 6.00%, 1/01/25 | 1,440 | 1,367,770 | |||
342,822,379 | |||||
Indiana — 2.4% | |||||
Indiana Finance Authority, RB, Trinity Health, Series A, | |||||
5.63%, 12/01/38 | 12,000 | 12,882,240 | |||
Indiana Finance Authority, Refunding RB: | |||||
Duke Energy Indiana Project, Series B, | |||||
6.00%, 8/01/39 | 11,000 | 12,229,140 | |||
Improvement, U.S. Steel Corp., 6.00%, 12/01/26 | 12,715 | 12,665,920 | |||
Parkview Health System, Series A, 5.75%, 5/01/31 | 1,520 | 1,621,840 |
Municipal Bonds | Par (000) | Value | |||
Indiana (concluded) | |||||
Indiana Municipal Power Agency, RB, Series B: | |||||
5.75%, 1/01/34 | $ | 700 | $ | 740,229 | |
6.00%, 1/01/39 | 17,620 | 19,560,843 | |||
Indianapolis Local Public Improvement Bond Bank, | |||||
Refunding RB, Waterworks Project, Series A (AGC): | |||||
5.50%, 1/01/38 | 21,900 | 23,889,177 | |||
5.75%, 1/01/38 | 12,800 | 14,049,920 | |||
97,639,309 | |||||
Iowa — 0.8% | |||||
Iowa Finance Authority, RB, Series A (AGC), | |||||
5.63%, 8/15/37 | 5,600 | 5,976,432 | |||
Iowa Student Loan Liquidity Corp., RB, AMT, Senior, | |||||
Series A-2: | |||||
5.40%, 12/01/24 | 15,000 | 15,416,850 | |||
5.50%, 12/01/25 | 10,000 | 10,276,600 | |||
31,669,882 | |||||
Kansas — 0.0% | |||||
Sedgwick & Shawnee Counties Kansas, RB, | |||||
Mortgage-Backed Securities, Series A1, AMT | |||||
(Ginnie Mae), 6.95%, 6/01/29 | 570 | 581,280 | |||
Kentucky — 0.6% | |||||
Kentucky Economic Development Finance Authority, | |||||
RB, Louisville Arena, Sub-Series A-1 (AGC), | |||||
6.00%, 12/01/42 | 2,500 | 2,675,325 | |||
Kentucky Economic Development Finance Authority, | |||||
Refunding RB, Owensboro Medical Health System, | |||||
Series A, 6.38%, 6/01/40 | 16,200 | 17,189,010 | |||
Kentucky State Property & Building Commission, | |||||
Refunding RB, 5.50%, 11/01/28 | 2,650 | 2,955,969 | |||
22,820,304 | |||||
Louisiana — 0.9% | |||||
Louisiana HFA, RB, S/F, Series D-2, AMT (Ginnie Mae), | |||||
5.80%, 6/01/20 | 105 | 108,008 | |||
Louisiana Local Government Environmental Facilities & | |||||
Community Development Authority, RB, Westlake | |||||
Chemical Corp.: | |||||
Projects, 6.75%, 11/01/32 | 5,000 | 5,278,600 | |||
Series A, 6.50%, 8/01/29 | 11,070 | 11,847,003 | |||
Series A-1, 6.50%, 11/01/35 | 16,835 | 17,739,040 | |||
New Orleans Aviation Board Louisiana, Refunding RB, | |||||
GARB Restructuring (AGC), 6.00%, 1/01/23 | 1,370 | 1,624,053 | |||
36,596,704 | |||||
Maine — 0.4 | |||||
Maine Health & Higher Educational Facilities Authority, | |||||
RB, Maine General Medical Center: | |||||
7.50%, 7/01/32 | 12,365 | 13,712,538 | |||
6.95%, 7/01/41 | 2,130 | 2,254,392 | |||
15,966,930 | |||||
Maryland — 0.3% | |||||
Maryland Community Development Administration, HRB, | |||||
Series B, AMT, 6.15%, 1/01/21 | 445 | 445,743 | |||
Maryland Health & Higher Educational Facilities Authority, | |||||
RB, University of Maryland Medical System, Series B | |||||
(NPFGC), 7.00%, 7/01/22 | 4,400 | 5,293,904 | |||
Maryland Health & Higher Educational Facilities Authority, | |||||
Refunding RB, Charlestown Community, 6.25%, 1/01/41 | 6,000 | 6,342,300 | |||
12,081,947 |
See Notes to Financial Statements.
22 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments (continued) | BlackRock National Municipal Fund |
---|
Municipal Bonds | Par (000) | Value | |||
Massachusetts — 0.3% | |||||
Massachusetts Development Finance Agency, RB: | |||||
Foxborough Regional Charter School, Series A, | |||||
7.00%, 7/01/42 | $ | 1,375 | $ | 1,477,850 | |
Linden Ponds Inc. Facility, Series A-1, | |||||
6.25%, 11/15/39 | 705 | 513,092 | |||
Linden Ponds Inc. Facility, Series A-2, | |||||
5.50%, 11/15/46 | 38 | 22,877 | |||
Linden Ponds Inc. Facility, Series B, | |||||
0.00%, 11/15/56 (d) | 187 | 942 | |||
Massachusetts Housing Finance Agency, RB: | |||||
Rental Mortgage, Series C, AMT (AGM), | |||||
5.60%, 1/01/45 | 4,000 | 4,011,160 | |||
Series B, 7.00%, 12/01/38 | 4,585 | 5,124,104 | |||
11,150,025 | |||||
Michigan — 1.8% | |||||
City of Detroit Michigan, RB, Second Lien, Water Supply | |||||
System, Series B (AGM): | |||||
6.25%, 7/01/36 | 1,690 | 1,917,964 | |||
7.00%, 7/01/36 | 2,375 | 2,832,900 | |||
City of Detroit Michigan, Refunding RB, Second Lien | |||||
(BHAC), Sewage Disposal System, Series E, | |||||
5.75%, 7/01/31 | 4,025 | 4,407,939 | |||
Eastern Michigan University, Refunding RB, General | |||||
(AMBAC), 6.00%, 6/01/24 | 415 | 416,556 | |||
Lansing Board of Water & Light, RB, Series A, | |||||
5.50%, 7/01/41 | 6,485 | 7,264,043 | |||
Michigan State Building Authority, Refunding RB, Facilities | |||||
Program, Series I: | |||||
6.00%, 10/15/38 | 12,230 | 13,625,198 | |||
6.25%, 10/15/38 | 7,500 | 8,470,650 | |||
Michigan State HDA, RB, Series C, 5.50%, 12/01/28 | 1,800 | 1,854,918 | |||
Michigan Strategic Fund, Refunding RB, Detroit Edison Co. | |||||
Project AMT (Syncora), 5.50%, 6/01/30 | 7,345 | 7,403,099 | |||
Royal Oak Hospital Finance Authority Michigan, Refunding | |||||
RB, William Beaumont Hospital: | |||||
8.25%, 9/01/39 | 18,130 | 21,730,618 | |||
Series W, 6.00%, 8/01/39 | 4,925 | 5,194,398 | |||
75,118,283 | |||||
Minnesota — 0.6% | |||||
City of Eden Prairie Minnesota, RB, Rolling Hills Project, | |||||
Series A (Ginnie Mae), 6.15%, 8/20/31 | 1,000 | 1,051,090 | |||
City of Minneapolis Minnesota, Refunding RB, Fairview | |||||
Health Services: | |||||
Series A, 6.75%, 11/15/32 | 5,820 | 6,535,394 | |||
Series B (AGC), 6.50%, 11/15/38 | 14,840 | 16,896,973 | |||
Ramsey County Housing & Redevelopment Authority | |||||
Minnesota, RB, Hanover Townhouses Project, AMT, | |||||
6.00%, 7/01/31 | 1,110 | 1,110,877 | |||
25,594,334 | |||||
Mississippi — 0.1% | |||||
County of Warren Mississippi, Refunding RB, International | |||||
Paper Co. Project, Series B, AMT, 6.75%, 8/01/21 | 1,700 | 1,702,499 | |||
Harrison County Wastewater Management District, | |||||
Refunding RB, Wastewater Treatment Facilities, Series A | |||||
(FGIC), 8.50%, 2/01/13 (c) | 1,320 | 1,380,826 | |||
3,083,325 | |||||
Missouri — 0.1% | |||||
City of Fenton Missouri, Tax Allocation Bonds, Refunding, | |||||
Gravois Bluffs Redevelopment Project, 5.00%, 4/01/14 | 1,000 | 1,063,110 | |||
City of St. Louis Missouri, RB, Lambert-St. Louis | |||||
International, Series A-1, 6.25%, 7/01/29 | 1,175 | 1,286,707 | |||
2,349,817 |
Municipal Bonds | Par (000) | Value | |||
Nevada — 2.9% | |||||
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts | |||||
Center, 6.00%, 4/01/34 | $ | 12,925 | $ | 14,607,059 | |
City of Reno Nevada, Special Assessment Bonds, | |||||
Somerset Parkway, 6.63%, 12/01/22 | 1,600 | 1,560,544 | |||
Clark County Water Reclamation District, GO, Series B: | |||||
5.75%, 7/01/34 | 3,125 | 3,569,938 | |||
5.75%, 7/01/38 | 32,685 | 37,108,588 | |||
County of Clark Nevada, RB, Series B, 5.75%, 7/01/42 | 51,700 | 56,256,321 | |||
Nevada Housing Division, RB, Multi-Unit Housing, | |||||
Series A, AMT (Freddie Mac), 6.30%, 4/01/32 | 4,950 | 4,955,197 | |||
118,057,647 | |||||
New Hampshire — 0.2% | |||||
New Hampshire Health & Education Facilities Authority, | |||||
Refunding RB, Dartmouth Hitchcock, 6.00%, 8/01/38 | 6,810 | 7,464,645 | |||
New Jersey — 4.3% | |||||
Cape May County Industrial Pollution Control Financing | |||||
Authority, Refunding RB, Atlantic City Electric Co., | |||||
Series A (NPFGC), 6.80%, 3/01/21 | 5,000 | 6,546,750 | |||
Garden State Preservation Trust, RB, Election of 2005, | |||||
Series A (AGM): | |||||
5.80%, 11/01/21 | 3,125 | 3,618,719 | |||
5.80%, 11/01/22 | 8,310 | 9,622,897 | |||
5.80%, 11/01/23 | 4,340 | 5,018,472 | |||
Monmouth County Improvement Authority, RB, Brookdale | |||||
Community College Project, 6.00%, 8/01/38 | 3,600 | 4,299,804 | |||
New Jersey EDA, RB: | |||||
Cigarette Tax, 5.75%, 6/15/29 | 2,530 | 2,603,370 | |||
Motor Vehicle Surcharge, Series A (NPFGC), | |||||
5.25%, 7/01/33 | 26,500 | 27,942,130 | |||
New Jersey EDA, Refunding RB, New Jersey American | |||||
Water Co., Inc. Project, Series B, AMT, 5.60%, 11/01/34 | 8,250 | 8,862,562 | |||
New Jersey Educational Facilities Authority, Refunding RB, | |||||
University of Medicine & Dentistry, Series B: | |||||
7.13%, 12/01/23 | 2,870 | 3,508,632 | |||
7.50%, 12/01/32 | 9,200 | 10,911,384 | |||
New Jersey Health Care Facilities Financing Authority, RB, | |||||
AHS Hospital Corp., 6.00%, 7/01/41 | 11,800 | 13,079,356 | |||
New Jersey Higher Education Student Assistance Authority, | |||||
RB, Series 1, AMT: | |||||
5.50%, 12/01/25 | 950 | 1,005,034 | |||
5.75%, 12/01/27 | 500 | 531,840 | |||
5.75%, 12/01/28 | 450 | 477,207 | |||
New Jersey State Housing & Mortgage Finance Agency, | |||||
RB, Series AA: | |||||
6.38%, 10/01/28 | 1,830 | 2,027,732 | |||
6.50%, 10/01/38 | 2,750 | 2,977,893 | |||
New Jersey State Housing & Mortgage Finance Agency, | |||||
Refunding RB, Series B (AGM), 6.25%, 11/01/26 | 640 | 645,779 | |||
New Jersey State Turnpike Authority, RB, Series C (AGM), | |||||
5.00%, 1/01/30 | 13,500 | 14,385,735 | |||
New Jersey Transportation Trust Fund Authority, RB, | |||||
Transportation System, Series A: | |||||
5.13%, 6/15/28 | 15,520 | 17,088,917 | |||
5.13%, 6/15/29 | 12,615 | 13,785,672 | |||
5.25%, 6/15/36 | 19,510 | 21,016,172 | |||
5.88%, 12/15/38 | 4,255 | 4,751,771 | |||
Port Authority of New York & New Jersey, Refunding RB, | |||||
Consolidated, 152nd Series, AMT, 5.75%, 11/01/30 | 3,250 | 3,647,052 | |||
178,354,880 | |||||
New Mexico — 0.0% | |||||
County of Santa Fe New Mexico, RB (AGM), | |||||
6.00%, 2/01/27 | 250 | 302,337 | |||
New Mexico Mortgage Finance Authority, RB, S/F Mortgage | |||||
Program, Series D, AMT (Fannie Mae), 6.15%, 7/01/35 | 1,280 | 1,363,290 | |||
1,665,627 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 23 |
Schedule of Investments (continued) | BlackRock National Municipal Fund |
---|
Municipal Bonds | Par (000) | Value | |||
New York — 8.2% | |||||
City of New York, New York, GO: | |||||
Series C (Syncora), 5.63%, 3/15/18 | $ | 5 | $ | 5,047 | |
Series E-1, 6.25%, 10/15/28 | 10,100 | 12,075,459 | |||
City of Niagara Falls New York, GO, Public Improvement | |||||
(NPFGC), 6.90%, 3/01/24 | 5 | 5,011 | |||
Long Island Power Authority, Refunding RB, | |||||
6.00%, 5/01/33 | 49,775 | 56,828,117 | |||
Long Island Power Authority, Refunding RB, General, | |||||
Series A: | |||||
5.70%, 4/01/30 | 4,510 | 5,094,225 | |||
6.25%, 4/01/33 | 2,210 | 2,577,700 | |||
Metropolitan Transportation Authority, RB, Series 2008C, | |||||
6.50%, 11/15/28 | 21,870 | 26,068,165 | |||
New York City Housing Development Corp., RB, Series M: | |||||
6.50%, 11/01/28 | 4,300 | 4,739,804 | |||
6.88%, 11/01/38 | 7,785 | 8,649,291 | |||
New York City Industrial Development Agency, RB, | |||||
Special Needs Facilities Pooled Program, Series C-1, | |||||
6.00%, 7/01/12 | 530 | 530,488 | |||
New York City Municipal Water Finance Authority, | |||||
5.00%, 6/15/34 | 10,000 | 10,912,600 | |||
New York City Municipal Water Finance Authority, RB, | |||||
Fiscal 2009, Series A, 5.75%, 6/15/40 | 700 | 798,574 | |||
New York State Dormitory Authority, ERB, Series B, | |||||
5.75%, 3/15/36 | 17,250 | 19,773,847 | |||
New York State Dormitory Authority, Refunding RB, | |||||
State University Educational Facilities, Series A, | |||||
7.50%, 5/15/13 | 3,000 | 3,269,010 | |||
New York State Environmental Facilities Corp., Refunding | |||||
RB, Revolving Funds, New York City Municipal Water | |||||
Project, Series K, 5.00%, 6/15/28 | 30,000 | 30,521,100 | |||
New York State Thruway Authority, RB, Series G (AGM), | |||||
5.00%, 1/01/32 | 10,000 | 10,641,200 | |||
New York State Urban Development Corp.: | |||||
5.00%, 3/15/26 | 20,925 | 24,265,885 | |||
5.00%, 3/15/27 | 22,085 | 25,499,562 | |||
5.00%, 3/15/30 | 24,910 | 28,032,967 | |||
5.00%, 3/15/31 | 14,680 | 16,399,909 | |||
Series A-1 (NPFGC), 5.25%, 3/15/34 | 10,050 | 10,452,703 | |||
Sales Tax Asset Receivable Corp., RB, Series A: | |||||
(AMBAC), 5.00%, 10/15/32 | 13,000 | 13,987,610 | |||
(NPFGC), 5.00%, 10/15/20 | 10,000 | 11,045,500 | |||
Triborough Bridge & Tunnel Authority, RB, General, | |||||
Series A-2, 5.38%, 11/15/38 | 3,150 | 3,507,998 | |||
Westchester County Industrial Development Agency | |||||
New York, MRB, Kendal on Hudson Project, Series A: | |||||
6.50%, 1/01/13 (c) | 8,095 | 8,600,533 | |||
6.38%, 1/01/24 | 2,500 | 2,503,900 | |||
Westchester County Industrial Development Agency | |||||
New York, RB, Special Needs Facilities Pooled Program, | |||||
Series E-1, 6.00%, 7/01/12 | 150 | 150,138 | |||
336,936,343 | |||||
North Carolina — 0.9% | |||||
Columbus County Industrial Facilities & Pollution Control | |||||
Financing Authority North Carolina, RB, International | |||||
Paper Co. Projects, Series B, 6.25%, 11/01/33 | 3,000 | 3,200,370 | |||
North Carolina Eastern Municipal Power Agency, | |||||
Refunding RB, Series B, 5.00%, 1/01/26 | 4,230 | 4,582,782 | |||
North Carolina Medical Care Commission, RB, First | |||||
Health Carolinas Project, Series A, 6.13%, 10/01/39 | 775 | 808,426 | |||
North Carolina Medical Care Commission, RB, First | |||||
Mortgage (c): | |||||
Forest at Duke Project, 6.38%, 9/01/12 | 1,000 | 1,040,710 | |||
Givens Estates Project, Series A, 6.50%, 7/01/13 | 2,500 | 2,756,725 |
Municipal Bonds | Par (000) | Value | |||||
North Carolina (concluded) | |||||||
State of North Carolina, Capital Improvement, Limited | |||||||
Obligation, Series C, 5.00%, 5/01/30 | $ | 20,835 | $ | 23,481,670 | |||
35,870,683 | |||||||
North Dakota — 0.0% | |||||||
North Dakota State HFA, RB, Housing Finance Program, | |||||||
Series C, AMT (AMBAC), 5.30%, 7/01/22 | 1,635 | 1,681,254 | |||||
Ohio — 0.7% | |||||||
County of Lucas Ohio, Refunding RB, Promedica | |||||||
Healthcare, Series A: | |||||||
5.75%, 11/15/31 | 500 | 547,275 | |||||
6.50%, 11/15/37 | 12,035 | 13,915,469 | |||||
County of Montgomery Ohio, Refunding RB, Catholic | |||||||
Healthcare, Series A, 5.50%, 5/01/34 | 10,000 | 10,669,800 | |||||
Lucas County, RB, Promedica Healthcare Obligated Group, | |||||||
Series A, 6.00%, 11/15/41 | 110 | 122,198 | |||||
State of Ohio, Refunding RB, Cleveland Clinic Health, | |||||||
Series A, 5.50%, 1/01/39 | 4,000 | 4,215,880 | |||||
29,470,622 | |||||||
Oregon — 0.0% | |||||||
City of Portland Oregon, HRB, Lovejoy Station Apartments | |||||||
Project, AMT (NPFGC), 5.90%, 7/01/23 | 475 | 475,622 | |||||
Pennsylvania — 2.0% | |||||||
Allegheny County Hospital Development Authority, | |||||||
Refunding RB, Health System, West Penn, Series A, | |||||||
5.38%, 11/15/40 | 9,250 | 7,502,953 | |||||
Allegheny County Industrial Development Authority, RB: | |||||||
Environmental Improvement, 6.75%, 11/01/24 | 5,000 | 5,197,950 | |||||
Environmental Improvement, 6.88%, 5/01/30 | 5,000 | 5,195,450 | |||||
U.S. Steel Corp. Project, 6.75%, 12/01/27 | 5,000 | 5,169,350 | |||||
City of Philadelphia Pennsylvania, RB, 12th Series B | |||||||
(NPFGC), 7.00%, 5/15/20 (c) | 4,310 | 5,380,302 | |||||
Cumberland County Municipal Authority, RB, Diakon | |||||||
Lutheran, 6.38%, 1/01/39 | 10,575 | 11,069,276 | |||||
Cumberland County Municipal Authority, Refunding RB, | |||||||
Diakon Lutheran, 6.50%, 1/01/39 | 2,245 | 2,284,467 | |||||
Dauphin County General Authority, Refunding RB, | |||||||
Pinnacle Health System Project, Series A: | |||||||
6.00%, 6/01/29 | 12,225 | 12,943,463 | |||||
6.00%, 6/01/36 | 2,705 | 2,818,096 | |||||
Delaware County IDA Pennsylvania, Refunding RB, | |||||||
Resource Recovery Facility, Series A, 6.10%, 7/01/13 | 3,545 | 3,557,266 | |||||
Lancaster County Hospital Authority, RB, Brethren Village | |||||||
Project, Series A: | |||||||
6.25%, 7/01/26 | 1,160 | 1,174,233 | |||||
6.50%, 7/01/40 | 2,500 | 2,518,325 | |||||
Pennsylvania Economic Development Financing | |||||||
Authority, RB: | |||||||
Allegheny Energy Supply Co., 7.00%, 7/15/39 | 12,000 | 13,357,560 | |||||
American Water Co. Project, 6.20%, 4/01/39 | 3,475 | 3,903,085 | |||||
Pennsylvania Turnpike Commission, RB, Subordinate, | |||||||
Special Motor License Fund, 6.00%, 12/01/36 | 950 | 1,112,317 | |||||
Philadelphia Authority for Industrial Development, RB, | |||||||
Commercial Development, AMT, 7.75%, 12/01/17 | 1,265 | 1,266,202 | |||||
84,450,295 | |||||||
Puerto Rico — 1.7% | |||||||
Puerto Rico Industrial Tourist Educational Medical & | |||||||
Environmental Control Facilities Financing Authority, RB, | |||||||
Hospital De La Concepcion, Series A, 6.13%, 11/15/25 | 4,000 | 4,014,040 | |||||
Puerto Rico Sales Tax Financing Corp., RB: | |||||||
(NPFGC), Series A, 6.39%, 8/01/44 (d) | 10,000 | 1,370,500 | |||||
First Sub-Series A, 6.38%, 8/01/39 | 22,100 | 25,086,594 | |||||
First Sub-Series A, 6.50%, 8/01/44 | 30,125 | 34,648,269 | |||||
Senior Series C, 6.25%, 8/01/39 (d) | 27,400 | 5,407,390 | |||||
70,526,793 |
See Notes to Financial Statements.
24 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments (continued) | BlackRock National Municipal Fund |
---|
Municipal Bonds | Par (000) | Value | |||
Rhode Island — 0.6% | |||||
Rhode Island Health & Educational Building Corp., RB, | |||||
Hospital Financing, LifeSpan Obligation, Series A (AGC), | |||||
7.00%, 5/15/39 | $ | 7,600 | $ | 8,732,400 | |
Rhode Island Health & Educational Building Corp., | |||||
Refunding RB, Public Schools Financing Program, | |||||
Series E (AGC), 6.00%, 5/15/29 | 13,320 | 15,060,658 | |||
23,793,058 | |||||
South Carolina — 0.4% | |||||
County of Richland South Carolina, Refunding RB, | |||||
International Paper Co. Project, AMT, 6.10%, 4/01/23 | 3,000 | 3,084,840 | |||
Medical University Hospital Authority, Refunding RB, | |||||
Series A (c): | |||||
6.50%, 8/15/12 | 2,450 | 2,545,722 | |||
6.38%, 8/15/27 | 5,400 | 5,606,766 | |||
South Carolina Jobs-EDA, Refunding RB, Palmetto Health, | |||||
Series A: | |||||
6.25%, 8/01/34 | 1,170 | 1,288,673 | |||
(AGM), 6.50%, 8/01/39 | 2,390 | 2,660,261 | |||
South Carolina State Public Service Authority, RB, Santee | |||||
Cooper, Series A, 5.50%, 1/01/38 | 2,300 | 2,539,913 | |||
17,726,175 | |||||
Tennessee — 0.2% | |||||
Shelby County Health Educational & Housing Facilities | |||||
Board, Refunding RB, Methodist Healthcare, | |||||
6.50%, 9/01/12 (c) | 7,300 | 7,602,804 | |||
Texas — 7.6% | |||||
Bexar County Health Facilities Development Corp. Texas, | |||||
Refunding RB, Army Retirement Residence Project, AMT, | |||||
6.30%, 7/01/12 (c) | 1,750 | 1,819,178 | |||
Brazos River Harbor Navigation District, Refunding RB, | |||||
Dow Chemical Co. Project, Series A7, 6.63%, 5/15/33 | 7,040 | 7,124,339 | |||
City of Houston Texas, ARB (AGM), Subordinate Lien, | |||||
Series B, 5.00%, 7/01/32 | 11,980 | 12,040,259 | |||
City of Houston Texas, RB, Subordinate Lien, Series A, | |||||
AMT (AGM), 5.63%, 7/01/30 | 290 | 290,209 | |||
City of Houston Texas, Refunding RB, Combined First Lien, | |||||
Series A (AGC), 6.00%, 11/15/35 | 32,350 | 37,270,435 | |||
County of Harris Texas, Refunding RB, Toll Road, | |||||
Senior Lien (AGM), 5.00%, 8/15/30 | 10,000 | 10,201,300 | |||
Dallas-Fort Worth International Airport Facilities | |||||
Improvement Corp., RB, Series A, AMT (NPFGC): | |||||
6.00%, 11/01/24 | 17,035 | 17,114,042 | |||
6.00%, 11/01/28 | 17,765 | 17,798,221 | |||
Gulf Coast Waste Disposal Authority, Refunding RB, | |||||
Series A, AMT, 6.10%, 8/01/24 | 4,025 | 4,116,126 | |||
Harris County Health Facilities Development Corp., | |||||
Refunding RB, Memorial Hermann Healthcare System, | |||||
Series B: | |||||
7.13%, 12/01/31 | 1,500 | 1,733,745 | |||
7.25%, 12/01/35 | 4,450 | 5,104,995 | |||
Matagorda County Navigation District No. 1 Texas, | |||||
Refunding RB, Central Power & Light Co. Project, | |||||
Series A, 6.30%, 11/01/29 | 9,775 | 10,859,341 | |||
North Texas Tollway Authority, RB: | |||||
Second Tier, Series F, 6.13%, 1/01/31 | 25,615 | 27,191,603 | |||
Special Projects System, Series A, 6.00%, 9/01/41 | 4,815 | 5,584,822 | |||
System, First Tier, Series K-2 (AGC), 6.00%, 1/01/38 | 2,225 | 2,465,812 | |||
North Texas Tollway Authority, Refunding RB, System, | |||||
First Tier: | |||||
6.00%, 1/01/34 | 11,490 | 12,862,595 | |||
5.75%, 1/01/40 | 9,870 | 10,491,415 | |||
Series A, 6.00%, 1/01/28 | 1,000 | 1,132,840 | |||
Series B (NPFGC), 5.75%, 1/01/40 | 7,700 | 8,184,792 | |||
Port of Bay City Authority Texas, RB, Hoechst Celanese | |||||
Corp. Project, AMT, 6.50%, 5/01/26 | 4,000 | 3,987,760 |
Municipal Bonds | Par (000) | Value | |||
Texas (concluded) | |||||
State of Texas, GO, Refunding, Water Financial Assistance, | |||||
5.75%, 8/01/22 | $ | 3,445 | $ | 3,458,298 | |
Tarrant County Cultural Education Facilities Finance Corp., | |||||
RB, Scott & White Healthcare, 6.00%, 8/15/45 | 50,000 | 54,377,500 | |||
Tarrant County Cultural Education Facilities Finance Corp., | |||||
Refunding RB, Northwest Senior Housing, Edgemere | |||||
Project, Series A, 6.00%, 11/15/26 | 2,200 | 2,218,282 | |||
Texas Department of Housing & Community Affairs, MRB, | |||||
Series A, AMT (NPFGC): | |||||
5.45%, 9/01/23 | 1,705 | 1,708,188 | |||
5.50%, 3/01/26 | 2,220 | 2,222,975 | |||
Texas Private Activity Bond Surface Transportation Corp., | |||||
RB, Senior Lien: | |||||
LBJ Infrastructure Group LLC, LBJ Freeway Managed | |||||
Lanes Project, 7.00%, 6/30/40 | 24,915 | 27,046,977 | |||
NTE Mobility Partners LLC, North Tarrant Express | |||||
Managed Lanes Project, 6.88%, 12/31/39 | 24,815 | 26,692,255 | |||
315,098,304 | |||||
Utah— 0.0% | |||||
City of Salt Lake City Utah, RB, Refunding IHC Hospital | |||||
Inc., Series A, 8.13%, 5/15/15 (c) | 50 | 55,391 | |||
Washington — 1.2% | |||||
Chelan County Public Utility District No. 1, RB, | |||||
Chelan Hydro System, Series A, AMT (AMBAC), | |||||
5.45%, 7/01/12 (c) | 10,710 | 10,967,040 | |||
Seattle Housing Authority Washington, HRB, Replacement | |||||
Housing Projects, 6.13%, 12/01/32 | 4,260 | 4,154,395 | |||
Seattle Housing Authority Washington, RB, Newholly | |||||
Project, AMT, 6.25%, 12/01/35 | 2,750 | 2,422,612 | |||
Washington Health Care Facilities Authority, RB: | |||||
MultiCare Health System, Series B (AGC), | |||||
6.00%, 8/15/39 | 2,000 | 2,196,300 | |||
Swedish Health Services, Series A, 6.75%, 11/15/41 | 17,500 | 19,601,575 | |||
Washington Health Care Facilities Authority, Refunding RB, | |||||
Catholic Health Initiatives, Series D, 6.38%, 10/01/36 | 10,000 | 11,323,000 | |||
50,664,922 | |||||
Wisconsin — 0.7% | |||||
City of Superior Wisconsin, Refunding RB, Midwest Energy | |||||
Resources, Series E (NPFGC), 6.90%, 8/01/21 | 7,000 | 9,034,200 | |||
State of Wisconsin, Refunding RB, Series A, | |||||
6.00%, 5/01/36 | 13,000 | 14,673,360 | |||
Wisconsin Health & Educational Facilities Authority, RB, | |||||
SynergyHealth Inc., 6.00%, 11/15/23 | 4,755 | 4,935,928 | |||
Wisconsin Housing & EDA, RB, Series C, AMT, | |||||
6.00%, 9/01/36 | 260 | 278,618 | |||
28,922,106 | |||||
Total Municipal Bonds — 75.4% | 3,109,462,794 | ||||
Municipal Bonds Transferred to | |||||
Tender Option Bond Trusts (e) | |||||
Arizona — 4.2% | |||||
City of Mesa Arizona, RB, 5.00%, 7/01/35 | 30,000 | 32,426,100 | |||
Salt River Project Agricultural Improvement & Power | |||||
District, RB, Series A: | |||||
5.00%, 1/01/37 | 82,984 | 86,617,139 | |||
5.00%, 1/01/38 | 39,015 | 41,442,030 | |||
Salt River Project Agricultural Improvement & Power | |||||
District, Refunding RB, Series A, 5.00%, 1/01/35 | 13,700 | 14,310,335 | |||
174,795,604 | |||||
Arkansas — 0.5% | |||||
University of Arkansas, RB, Various Facilities, UAMS | |||||
Campus (NPFGC), 5.00%, 3/01/36 | 21,290 | 22,365,997 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 25 |
Schedule of Investments (continued) | BlackRock National Municipal Fund |
---|
Municipal Bonds Transferred to Tender Option Bond Trusts (e) | Par (000) | Value | |||
California — 6.0% | |||||
Anaheim Public Financing Authority, RB, Distribution | |||||
System, Second Lien (BHAC), 5.00%, 10/01/34 | $ | 10,995 | $ | 11,315,810 | |
County of Orange California, RB, Series B, | |||||
5.25%, 7/01/34 | 13,045 | 13,737,885 | |||
Los Angeles Department of Airports, Refunding RB, | |||||
Senior, Los Angeles International Airport, Series A, | |||||
5.00%, 5/15/40 | 24,390 | 26,092,178 | |||
Los Angeles Department of Water & Power, RB, Power | |||||
System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37 | 27,500 | 28,929,450 | |||
Metropolitan Water District of Southern California, RB, | |||||
Series A: | |||||
5.00%, 1/01/39 | 10,000 | 10,782,700 | |||
(AGM), 5.00%, 7/01/30 | 9,998 | 10,623,000 | |||
Metropolitan Water District of Southern California, | |||||
Refunding RB: | |||||
Series B, 5.00%, 7/01/35 | 9,998 | 10,623,000 | |||
Series C, 5.00%, 7/01/35 | 13,375 | 14,624,220 | |||
San Diego Community College District California, | |||||
GO (AGM): | |||||
Election of 2002, 5.00%, 5/01/30 | 20,000 | 21,608,200 | |||
Election of 2006, 5.00%, 8/01/32 | 18,000 | 19,273,860 | |||
San Diego County Water Authority, COP, Refunding, | |||||
Series 2008-A (AGM), 5.00%, 5/01/33 | 4,500 | 4,708,395 | |||
San Diego Public Facilities Financing Authority, | |||||
Refunding RB, Series B, 5.38%, 8/01/34 | 15,000 | 16,512,750 | |||
San Francisco City & County Public Utilities Commission, | |||||
Refunding RB, Series A, 5.13%, 11/01/39 | 23,000 | 24,569,980 | |||
Sequoia Union High School District California, GO, | |||||
Refunding RB, Election of 2004, Series B (AGM), | |||||
5.50%, 7/01/35 | 10,055 | 10,704,632 | |||
University of California, RB, Series O, 5.25%, 5/15/39 | 20,695 | 22,636,133 | |||
246,742,193 | |||||
Colorado — 0.0% | |||||
Colorado Health Facilities Authority, Refunding RB, | |||||
Catholic Healthcare, Series A, 5.50%, 7/01/34 | 1,580 | 1,676,150 | |||
Florida — 3.2% | |||||
City of Tallahassee Florida (NPFGC), 5.00%, 10/01/37 | 10,000 | 10,466,900 | |||
Florida State Board of Education, GO: | |||||
Capital Outlay 2008, Series E, 5.00%, 6/01/37 | 39,730 | 43,677,176 | |||
Series 2006C, 5.00%, 6/01/37 | 65,545 | 69,863,419 | |||
Jacksonville Electric Authority Florida, RB, Sub-Series A, | |||||
5.63%, 10/01/32 | 6,300 | 6,919,416 | |||
Orange County School Board, COP, Series A (NPFGC), | |||||
5.00%, 8/01/30 | 2,000 | 2,079,580 | |||
133,006,491 | |||||
Illinois — 0.5% | |||||
City of Chicago Illinois, Refunding RB, Second Lien (AGM), | |||||
5.25%, 11/01/33 | 5,000 | 5,272,400 | |||
Illinois Finance Authority, RB, Carle Foundation, Series A | |||||
(AGM), 6.00%, 8/15/41 | 15,600 | 16,570,944 | |||
21,843,344 | |||||
Indiana — 2.5% | |||||
Indiana Finance Authority, RB, Sisters of St. Francis Health, | |||||
5.25%, 11/01/39 | 31,460 | 32,518,629 | |||
Indianapolis Local Public Improvement Bond Bank, RB, | |||||
PILOT Infrastructure Project F (AGM), 5.00%, 1/01/40 | 7,000 | 7,426,090 | |||
Indianapolis Local Public Improvement Bond Bank, | |||||
Refunding RB: | |||||
PILOT, Infrastructure Project, Series F (AGM), | |||||
5.00%, 1/01/35 | 23,550 | 25,099,355 | |||
Waterworks Project, Series A (AGC), 5.50%, 1/01/38 | 34,125 | 37,224,516 | |||
102,268,590 |
Municipal Bonds Transferred to Tender Option Bond Trusts (e) | Par (000) | Value | |||
Louisiana — 0.3% | |||||
State of Louisiana, RB, Series A (AGM), 5.00%, 5/01/31 | $ | 11,950 | $12,635,213 | ||
Massachusetts — 1.3% | |||||
Massachusetts School Building Authority, RB: | |||||
Series A (AGM), 5.00%, 8/15/30 | 15,000 | 16,299,600 | |||
Series A (AGM), 5.00%, 8/15/30 | 5,000 | 5,433,200 | |||
Massachusetts State School Building Authority, RB: | |||||
Dedicated Sales Tax, Series A, 5.00%, 8/15/37 | 10,000 | 10,581,400 | |||
Senior, Series B, 5.00%, 10/15/41 | 20,000 | 21,741,200 | |||
54,055,400 | |||||
Nebraska — 0.3% | |||||
Omaha Public Power District, RB, Series A, | |||||
5.00%, 2/01/43 | 10,000 | 10,498,000 | |||
New York — 0.7% | |||||
New York City Municipal Water Finance Authority, | |||||
Refunding RB, Series A, 5.13%, 6/15/34 | 8,935 | 9,085,369 | |||
New York State Dormitory Authority, ERB, Series B, | |||||
5.75%, 3/15/36 | 2,010 | 2,304,083 | |||
Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), | |||||
5.25%, 10/15/27 | 13,931 | 15,158,501 | |||
26,547,953 | |||||
Ohio — 0.5% | |||||
County of Hamilton Ohio, Refunding RB, Sub-Series A | |||||
(AGM), 5.00%, 12/01/32 | 20,000 | 20,866,400 | |||
State of Ohio, RB, Cleveland Clinic Health, Series B, | |||||
5.50%, 1/01/34 | 1,000 | 1,061,350 | |||
21,927,750 | |||||
Pennsylvania — 0.5% | |||||
Pennsylvania HFA, Refunding RB, Series 105C, | |||||
5.00%, 10/01/39 | 19,460 | 19,970,241 | |||
Texas — 3.4% | |||||
City of Houston Texas, Refunding RB, Combined, First Lien, | |||||
Series A: | |||||
(AGC), 5.38%, 11/15/38 | 26,160 | 28,663,774 | |||
(NPFGC), 5.13%, 5/15/28 | 20,000 | 21,337,800 | |||
City of San Antonio Texas, Refunding RB: | |||||
5.00%, 2/01/17 | 14,605 | 15,500,067 | |||
5.00%, 2/01/32 | 14,605 | 15,500,067 | |||
Cypress-Fairbanks ISD, GO, Refunding, Schoolhouse | |||||
(PSF-GTD), 5.00%, 2/15/32 | 10,000 | 10,873,800 | |||
Dallas Area Rapid Transit, Refunding RB, Senior Lien | |||||
(AMBAC), 5.00%, 12/01/36 | 27,860 | 29,308,120 | |||
Harris County Cultural Education Facilities Finance Corp., | |||||
RB, Hospital, Texas Children’s Hospital Project, | |||||
5.50%, 10/01/39 | 8,500 | 9,056,240 | |||
Harris County Flood Control District, RB, Refunding | |||||
Contract Tax, Series A, 5.00%, 10/01/39 | 10,000 | 10,793,100 | |||
141,032,968 | |||||
Washington — 0.9% | |||||
Central Puget Sound Regional Transit Authority, RB, | |||||
Series A: | |||||
5.00%, 11/01/34 | 8,500 | 9,070,265 | |||
5.00%, 11/01/36 | 15,715 | 16,709,833 | |||
State of Washington, GO, Series D (AGM), | |||||
5.00%, 1/01/28 | 10,000 | 10,579,100 | |||
36,359,198 | |||||
Wisconsin — 0.1% | |||||
Wisconsin Health & Educational Facilities Authority, | |||||
Refunding RB, Froedtert & Community Health Inc., | |||||
5.25%, 4/01/39 | 2,499 | 2,562,834 | |||
Total Municipal Bonds Transferred to | |||||
Tender Option Bond Trusts — 24.9% | 1,028,287,926 |
See Notes to Financial Statements.
26 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments (concluded) | BlackRock National Municipal Fund |
---|
US Government Sponsored Agency Securities — 0.0% | Par (000) | Value | ||||
Ginnie Mae MBS Certificates, 6.00%, 11/15/31 | $ | 1 | $ | 1,509 | ||
Total Long-Term Investments | ||||||
(Cost — $3,891,968,557) — 100.3% | 4,137,752,229 | |||||
Short-Term Securities | ||||||
Michigan — 0.2% | ||||||
Michigan Finance Authority, RB, SAN, Detroit Schools, | ||||||
Series A-1, 6.45%, 2/20/12 | 7,600 | 7,600,000 | ||||
Shares | ||||||
Money Market — 9.5% | ||||||
FFI Institutional Tax-Exempt Fund, 0.01% (f)(g) | 389,796,373 | 389,796,373 | ||||
Total Short-Term Securities | ||||||
(Cost — $397,396,373) — 9.7% | 397,396,373 | |||||
Total Investments (Cost — $4,289,364,930) — 110.0% | 4,535,148,602 | |||||
Other Assets Less Liabilities — 1.6% | 67,370,319 | |||||
Liability for Trust Certificates, Including Interest | ||||||
Expense and Fees Payable — (11.6)% | (480,599,086 | ) | ||||
Net Assets — 100.0% | $ | 4,121,919,835 |
(a) | Issuer filed for bankruptcy and/or is in default of interest payments. |
(b) | Non-income producing security. |
(c) | 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. |
(d) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
(e) | Securities represent bonds transferred to a TOB in exchange for which the Fund 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) | Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
Affiliate | Shares Held at June 30, 2011 | Net Activity | Shares Held at December 31, 2011 | Income | ||||
FFI Institutional | ||||||||
Tax-Exempt Fund | 127,360,041 | 262,436,332 | 389,796,373 | $14,846 |
(g) | Represents the current yield as of report date. |
• | For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease. |
• | Financial futures contracts sold as of December 31, 2011 were as follows: |
Contracts | Issue | Exchange | Expiration | Notional Value | Unrealized Depreciation | |
500 | 10-Year US | Chicago Board | March | |||
Treasury Note | of Trade | 2012 | $65,562,500 | $(313,450) |
• | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
• | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
• | Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
• | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. 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 does not necessarily correspond to Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of December 31, 2011 in determining the fair valuation of Fund’s investments and derivative financial instruments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | ||||||
Assets: | ||||||||||
Investments: | ||||||||||
Long-Term Investments1 | — | $ | 4,137,752,229 | — | $ | 4,137,752,229 | ||||
Short-Term Securities | $ | 389,796,373 | 7,600,000 | — | 397,396,373 | |||||
Total | $ | 389,796,373 | $ | 4,145,352,229 | — | $ | 4,535,148,602 |
1 | See above Schedule of Investments for values in each state or political subdivision. |
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |||||
Derivative Financial Instruments2 | |||||||||
Liabilities: | |||||||||
Interest Rate Contracts | $ | (313,450) | — | — | $ | (313,450) |
2 | Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 27 |
Schedule of Investments December 31, 2011 (Unaudited) | BlackRock High Yield Municipal Fund |
---|
Municipal Bonds | Par (000) | Value | |||
Alabama — 1.2% | |||||
Alabama State Docks Department, Refunding RB, | |||||
6.00%, 10/01/40 | $ | 710 | $ | 764,989 | |
County of Jefferson Alabama, RB, Series A: | |||||
5.25%, 1/01/17 | 1,000 | 960,370 | |||
5.25%, 1/01/20 | 500 | 465,075 | |||
4.75%, 1/01/25 | 325 | 279,825 | |||
2,470,259 | |||||
Alaska — 1.8% | |||||
Northern Tobacco Securitization Corp., RB, Asset Backed | |||||
Series A: | |||||
4.63%, 6/01/23 | 1,315 | 1,247,185 | |||
5.00%, 6/01/32 | 1,500 | 1,137,915 | |||
5.00%, 6/01/46 | 1,620 | 1,113,977 | |||
3,499,077 | |||||
Arizona — 3.1% | |||||
Maricopa County IDA Arizona, RB, Arizona Charter Schools | |||||
Project, Series A: | |||||
6.63%, 7/01/20 | 25 | 19,710 | |||
6.75%, 7/01/29 | 300 | 203,082 | |||
Phoenix IDA Arizona, Refunding RB, America West Airlines | |||||
Inc. Project, AMT, 6.30%, 4/01/23 | 1,000 | 860,950 | |||
Pima County IDA, IDRB, Tucson Electric Power, Series A, | |||||
6.38%, 9/01/29 | 780 | 796,731 | |||
Pima County IDA, RB, Tucson Electric Power, Series A, | |||||
5.25%, 10/01/40 | 1,390 | 1,398,118 | |||
Salt Verde Financial Corp., RB, Senior: | |||||
5.00%, 12/01/32 | 750 | 704,587 | |||
5.00%, 12/01/37 | 2,180 | 2,010,527 | |||
University Medical Center Corp. Arizona, RB, | |||||
6.25%, 7/01/29 | 180 | 196,045 | |||
6,189,750 | |||||
Arkansas — 0.9% | |||||
Benton County Public Facilities Board, Refunding RB, | |||||
BCCSO Project, Series A, 6.00%, 6/01/40 | 750 | 805,253 | |||
County of Little River Arkansas, Refunding RB, Georgia | |||||
Pacific Corp. Project, AMT, 5.60%, 10/01/26 | 955 | 955,000 | |||
1,760,253 | |||||
California — 5.5% | |||||
California Health Facilities Financing Authority, | |||||
Refunding RB: | |||||
Catholic Healthcare West, Series A, 6.00%, 7/01/39 | 265 | 287,615 | |||
St. Joseph Health System, Series A, 5.75%, 7/01/39 | 1,000 | 1,059,260 | |||
Sutter Health, Series B, 6.00%, 8/15/42 | 1,000 | 1,103,180 | |||
California Pollution Control Financing Authority, RB, | |||||
Waste Management Inc. Project, Series C, AMT, | |||||
5.13%, 11/01/23 | 750 | 773,160 | |||
California Pollution Control Financing Authority, Refunding | |||||
RB, Waste Management Inc. Project, Series B, AMT, | |||||
5.00%, 7/01/27 | 1,000 | 1,008,130 | |||
California Statewide Communities Development | |||||
Authority, RB: | |||||
John Muir Health, 5.13%, 7/01/39 | 425 | 433,615 | |||
Sutter Health, Series A, 6.00%, 8/15/42 | 400 | 441,272 | |||
California Statewide Communities Development Authority, | |||||
Refunding RB: | |||||
American Baptist Homes of the West, | |||||
6.25%, 10/01/39 | 575 | 584,810 | |||
Senior Living, Southern California, 6.63%, 11/15/24 | 650 | 714,733 | |||
City of Chula Vista California, Refunding RB, San Diego | |||||
Gas & Electric, Series A, 5.88%, 2/15/34 | 500 | 559,655 | |||
City of Roseville California, Special Tax Bonds, | |||||
Fiddyment Ranch Community Facilities District No. 1, | |||||
5.25%, 9/01/36 | 465 | 402,676 |
Municipal Bonds | Par (000) | Value | |||
California (concluded) | |||||
City of San Buenaventura California, RB, Community | |||||
Memorial Health System, 7.50%, 12/01/41 | $ | 1,335 | $ | 1,436,433 | |
City of San Jose California, RB, Convention Center | |||||
Expansion & Renovation Project: | |||||
6.50%, 5/01/36 | 310 | 338,762 | |||
6.50%, 5/01/42 | 760 | 827,579 | |||
Lammersville School District Community Facilities District, | |||||
Special Tax Bonds, District No. 2002, Mountain House, | |||||
5.13%, 9/01/35 | 325 | 285,184 | |||
Roseville Finance Authority, Special Tax Bonds, Refunding, | |||||
Senior Lien, Series A (AMBAC), 4.50%, 9/01/33 | 725 | 586,496 | |||
Temecula Public Financing Authority, Special Tax Bonds, | |||||
Refunding, Harveston, Sub-Series B, 5.10%, 9/01/36 | 175 | 148,288 | |||
10,990,848 | |||||
Colorado — 0.6% | |||||
E-470 Public Highway Authority, Refunding RB, CAB, | |||||
7.07%, 9/01/35 (a) | 1,305 | 251,996 | |||
Regional Transportation District, RB, Denver Transport | |||||
Partners, 6.00%, 1/15/41 | 1,000 | 1,030,940 | |||
1,282,936 | |||||
Connecticut — 0.2% | |||||
Mohegan Tribe of Indians of Connecticut, RB, Public | |||||
Improvement, Priority Distribution, 6.25%, 1/01/31 | 605 | 485,234 | |||
Delaware — 1.2% | |||||
County of Kent Delaware, Refunding RB, Charter School, | |||||
Inc. Project, 7.38%, 5/01/37 | 860 | 889,928 | |||
Delaware State EDA, RB, Exempt Facilities, Indian River | |||||
Power, 5.38%, 10/01/45 | 1,480 | 1,419,675 | |||
2,309,603 | |||||
District of Columbia — 2.8% | |||||
District of Columbia, RB, Methodist Home District of | |||||
Columbia, Series A: | |||||
7.38%, 1/01/30 | 310 | 315,416 | |||
7.50%, 1/01/39 | 500 | 509,370 | |||
District of Columbia Tobacco Settlement Financing Corp., | |||||
Refunding RB, Asset-Backed: | |||||
6.50%, 5/15/33 | 1,510 | 1,590,755 | |||
6.75%, 5/15/40 | 385 | 385,916 | |||
Metropolitan Washington Airports Authority, RB: | |||||
CAB, 2nd Senior Lien, Series B (AGC), | |||||
5.71%, 10/01/30 (a) | 3,005 | 1,045,499 | |||
First Senior Lien, Series A, 5.00%, 10/01/39 | 85 | 89,397 | |||
First Senior Lien, Series A, 5.25%, 10/01/44 | 1,610 | 1,701,126 | |||
5,637,479 | |||||
Florida — 6.7% | |||||
Florida Housing Finance Corp., HRB, Willow Lake | |||||
Apartments, Series J-1, AMT (AMBAC), 5.35%, 7/01/27 | 1,905 | 1,781,156 | |||
Greater Orlando Aviation Authority, RB, Special Purpose, | |||||
JetBlue Airways Corp., AMT, 6.38%, 11/15/26 | 1,740 | 1,699,876 | |||
Highland Meadows Community Development | |||||
District, Special Assessment Bonds, Series A, | |||||
5.50%, 5/01/36 (b)(c) | 490 | 191,654 | |||
Hillsborough County IDA, RB, Tampa General Hospital | |||||
Project, 5.25%, 10/01/41 | 1,000 | 985,110 | |||
Hillsborough County IDA, RB, National Gypsum Co., | |||||
Series B, AMT, 7.13%, 4/01/30 | 1,500 | 1,353,540 | |||
Jacksonville Economic Development Commission, RB, | |||||
Gerdau Ameristeel US Inc., AMT, 5.30%, 5/01/37 | 300 | 269,535 | |||
Lakewood Ranch Stewardship District, Special Assessment | |||||
Bonds, Lakewood Center & NW Sector Projects, | |||||
8.00%, 5/01/40 | 515 | 527,133 | |||
Mid-Bay Bridge Authority, RB, Series A, 7.25%, 10/01/40 | 1,450 | 1,510,436 | |||
Palm Beach County Health Facilities Authority, RB, Acts | |||||
Retirement Life Community, 5.50%, 11/15/33 | 1,500 | 1,494,225 |
See Notes to Financial Statements.
28 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments (continued) | BlackRock High Yield Municipal Fund |
---|
Municipal Bonds | Par (000) | Value | |||
Florida (concluded) | |||||
Santa Rosa Bay Bridge Authority, RB, | |||||
6.25%, 7/01/28 (b)(c) | $ | 500 | $ | 174,990 | |
Sarasota County Health Facilities Authority, Refunding RB, | |||||
Village On The Isle Project, 5.50%, 1/01/27 | 210 | 211,705 | |||
Sumter Landing Community Development District Florida, | |||||
RB, Sub-Series B, 5.70%, 10/01/38 | 795 | 658,292 | |||
Tolomato Community Development District, Special | |||||
Assessment Bonds, 6.65%, 5/01/40 (c) | 700 | 298,669 | |||
Village Community Development District No. 9, Special | |||||
Assessment Bonds, 7.00%, 5/01/41 | 1,770 | 1,867,739 | |||
Watergrass Community Development District, Special | |||||
Assessment Bonds, Series A, 5.38%, 5/01/39 | 650 | 326,450 | |||
13,350,510 | |||||
Georgia — 1.6% | |||||
Clayton County Development Authority, RB, Delta Air Lines | |||||
Inc. Project, Series A, 8.75%, 6/01/29 | 635 | 736,302 | |||
County of Clayton Georgia, Tax Allocation Bonds, | |||||
Ellenwood Project, 7.50%, 7/01/33 | 450 | 445,739 | |||
DeKalb County Hospital Authority Georgia, RB, Dekalb | |||||
Medical Center Inc. Project, 6.13%, 9/01/40 | 1,240 | 1,275,538 | |||
Gainesville & Hall County Development Authority, | |||||
Refunding RB, Acts Retirement Life Community, | |||||
Series A-2, 6.63%, 11/15/39 | 220 | 234,040 | |||
Richmond County Development Authority, RB, International | |||||
Paper Co. Projects, Series A, AMT, 5.00%, 8/01/30 | 500 | 472,495 | |||
3,164,114 | |||||
Guam — 1.4% | |||||
Guam Government Waterworks Authority, Refunding RB, | |||||
Water and Wastewater System, 6.00%, 7/01/25 | 735 | 745,746 | |||
Territory of Guam, GO, Series A: | |||||
6.00%, 11/15/19 | 100 | 102,543 | |||
6.75%, 11/15/29 | 1,650 | 1,714,564 | |||
7.00%, 11/15/39 | 160 | 166,200 | |||
2,729,053 | |||||
Idaho — 0.1% | |||||
Power County Industrial Development Corp., RB, | |||||
FMC Corp. Project, AMT, 6.45%, 8/01/32 | 265 | 265,241 | |||
Illinois — 3.0% | |||||
City of Chicago Illinois, Refunding RB, American Airlines | |||||
Inc. Project, 5.50%, 12/01/30 (b)(c) | 1,000 | 215,000 | |||
Illinois Finance Authority, RB: | |||||
MJH Education Assistance IV LLC, Sub-Series A, | |||||
5.13%, 6/01/35 (b)(c) | 90 | 53,999 | |||
Roosevelt University Project, 6.50%, 4/01/44 | 830 | 875,833 | |||
Illinois Finance Authority, Refunding RB: | |||||
Central Dupage Health, Series B, 5.50%, 11/01/39 | 1,400 | 1,469,804 | |||
Friendship Village of Schaumburg, 7.13%, 2/15/39 | 1,000 | 970,730 | |||
Swedish Covenant, Series A, 6.00%, 8/15/38 | 1,000 | 1,027,060 | |||
Metropolitan Pier & Exposition Authority, Refunding RB, | |||||
CAB, McCormick, Series B (AGM), 6.04%, 6/15/44 (a) | 3,455 | 500,768 | |||
Railsplitter Tobacco Settlement Authority, RB: | |||||
5.50%, 6/01/23 | 355 | 392,914 | |||
6.00%, 6/01/28 | 390 | 420,209 | |||
5,926,317 | |||||
Indiana — 0.5% | |||||
Indiana Health Facility Financing Authority, Refunding RB, | |||||
Methodist Hospital Inc.: | |||||
5.38%, 9/15/22 | 185 | 178,275 | |||
5.50%, 9/15/31 | 525 | 474,081 | |||
Vigo County Hospital Authority Indiana, RB, Union | |||||
Hospital Inc. (d): | |||||
5.70%, 9/01/37 | 155 | 133,049 | |||
5.75%, 9/01/42 | 190 | 161,420 | |||
946,825 |
Municipal Bonds | Par (000) | Value | |||
Iowa — 0.2% | |||||
Iowa Finance Authority, Refunding RB, Development, | |||||
Care Initiatives Project, Series A, 5.00%, 7/01/19 | $ | 500 | $ | 457,130 | |
Kentucky — 1.4% | |||||
Kentucky Economic Development Finance Authority, | |||||
RB, Owensboro Medical Health System, Series A, | |||||
6.50%, 3/01/45 | 1,000 | 1,068,000 | |||
Kentucky Economic Development Finance Authority, | |||||
Refunding RB: | |||||
Norton Healthcare Inc., Series B (NPFGC), | |||||
5.22%, 10/01/24 (a) | 250 | 129,663 | |||
Owensboro Medical Health System, | |||||
Series A, 6.38%, 6/01/40 | 1,050 | 1,114,102 | |||
Owensboro Medical Health System, Series B, | |||||
6.38%, 3/01/40 | 395 | 419,115 | |||
2,730,880 | |||||
Louisiana — 1.9% | |||||
Louisiana Local Government Environmental Facilities & | |||||
Community Development Authority, RB, Westlake | |||||
Chemical Corp. Project, 6.75%, 11/01/32 | 1,000 | 1,055,720 | |||
Louisiana Public Facilities Authority, RB, Belle Chasse | |||||
Educational Foundation Project, 6.75%, 5/01/41 | 645 | 685,525 | |||
Parish of Saint John Baptist Louisiana, RB, Marathon Oil | |||||
Corp., Series A, 5.13%, 6/01/37 | 2,000 | 1,997,380 | |||
3,738,625 | |||||
Maine — 0.6% | |||||
Maine Health & Higher Educational Facilities Authority, | |||||
RB, Maine General Medical Center, 6.75%, 7/01/41 | 1,075 | 1,122,472 | |||
Maryland — 3.0% | |||||
County of Howard Maryland, Refunding RB, Vantage | |||||
House Facility, Series A, 5.25%, 4/01/33 | 500 | 372,155 | |||
Gaithersburg Maryland, Refunding RB, Asbury Maryland | |||||
Obligation, Series B, 6.00%, 1/01/23 | 750 | 803,055 | |||
Maryland EDC, RB: | |||||
Term Project, Series B, 5.75%, 6/01/35 | 1,500 | 1,516,260 | |||
Transportation Facilities Project, Series A, | |||||
5.75%, 6/01/35 | 265 | 267,891 | |||
Maryland EDC, Refunding RB, CNX Marine Terminals Inc., | |||||
5.75%, 9/01/25 | 2,000 | 2,056,420 | |||
Maryland Health & Higher Educational Facilities | |||||
Authority, RB, Washington Christian Academy, | |||||
5.25%, 7/01/18 (b)(c) | 250 | 109,375 | |||
Maryland Health & Higher Educational Facilities | |||||
Authority, Refunding RB, Doctors Community Hospital, | |||||
5.75%, 7/01/38 | 890 | 830,557 | |||
5,955,713 | |||||
Massachusetts — 0.8% | |||||
Massachusetts Development Finance Agency, RB: | |||||
Foxborough Regional Charter School, Series A, | |||||
7.00%, 7/01/42 | 350 | 376,180 | |||
Linden Ponds Inc. Facility, Series A-1, | |||||
6.25%, 11/15/39 | 353 | 256,546 | |||
Linden Ponds Inc. Facility, Series A-2, | |||||
5.50%, 11/15/46 | 19 | 11,438 | |||
Linden Ponds Inc. Facility, Series B, | |||||
5.75%, 11/15/56 (a) | 94 | 471 | |||
Massachusetts Development Finance Agency, | |||||
Refunding RB: | |||||
Eastern Nazarene College, 5.63%, 4/01/29 | 500 | 458,355 | |||
Tufts Medical Center, Series I, 6.75%, 1/01/36 | 510 | 547,301 | |||
1,650,291 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 29 |
Schedule of Investments (continued) | BlackRock High Yield Municipal Fund |
---|
Municipal Bonds | Par (000) | Value | |||
Michigan — 2.9% | |||||
Advanced Technology Academy, RB, 6.00%, 11/01/37 | $ | 275 | $ | 244,412 | |
City of Detroit Michigan, Water Supply System, Refunding | |||||
RB, Senior Lien, Series D, 5.00%, 7/01/32 | 2,500 | 2,505,975 | |||
Garden City Hospital Finance Authority Michigan, | |||||
Refunding RB, Garden City Hospital Obligation, | |||||
Series A, 5.00%, 8/15/38 | 310 | 223,401 | |||
Michigan State Hospital Finance Authority, Refunding RB, | |||||
Hospital, Henry Ford Health, 5.75%, 11/15/39 | 1,710 | 1,775,613 | |||
Royal Oak Hospital Finance Authority Michigan, Refunding | |||||
RB, William Beaumont Hospital, 8.25%, 9/01/39 | 915 | 1,096,719 | |||
5,846,120 | |||||
Minnesota — 2.2% | |||||
Minnesota State Higher Education Facilities Authority, RB, | |||||
College of St. Benedict, Series 7-M, 5.13%, 3/01/36 | 275 | 277,079 | |||
St. Paul Housing & Redevelopment Authority, RB, Nova | |||||
Classical Academy, Series A, 6.63%, 9/01/42 | 500 | 507,670 | |||
Tobacco Securitization Authority Minnesota, Refunding RB, | |||||
Tobacco Settlement, Series B, 5.25%, 3/01/31 | 3,500 | 3,599,785 | |||
4,384,534 | |||||
Mississippi — 1.0% | |||||
Warren County Mississippi, RB, Gulf Opportunity Zone | |||||
Bonds (International Paper Company Project), Series A, | |||||
AMT, 5.38%, 12/01/35 | 2,000 | 2,020,900 | |||
Missouri — 0.5% | |||||
City of Kansas City Missouri, Tax Allocation Bonds, | |||||
Kansas City MainCor Project, Series A, 5.25%, 3/01/18 | 600 | 600,894 | |||
Kirkwood IDA Missouri, RB, Aberdeen Heights, Series A, | |||||
8.25%, 5/15/39 | 435 | 455,232 | |||
1,056,126 | |||||
Nevada — 0.0% | |||||
County of Clark Nevada, RB, Southwest Gas Corp. Project, | |||||
Series A, AMT (FGIC), 4.75%, 9/01/36 | 20 | 18,187 | |||
New Hampshire — 0.5% | |||||
New Hampshire Health & Education Facilities Authority, | |||||
Refunding RB: | |||||
Dartmouth-Hitchcock, 6.00%, 8/01/38 | 435 | 476,817 | |||
Havenwood-Heritage Heights, Series A, | |||||
5.40%, 1/01/30 | 500 | 448,975 | |||
925,792 | |||||
New Jersey — 6.1% | |||||
Burlington County Bridge Commission, Refunding RB, | |||||
The Evergreens Project, 5.63%, 1/01/38 | 750 | 686,550 | |||
New Jersey EDA, RB: | |||||
Cigarette Tax, 5.50%, 6/15/24 | 925 | 930,994 | |||
Cigarette Tax, 5.75%, 6/15/29 | 1,100 | 1,131,900 | |||
Cigarette Tax, 5.75%, 6/15/34 | 535 | 547,760 | |||
Continental Airlines Inc. Project, AMT, 6.63%, 9/15/12 | 1,380 | 1,400,258 | |||
Continental Airlines Inc. Project, AMT, 6.40%, 9/15/23 | 2,000 | 1,990,980 | |||
Kapkowski Road Landfill Project, Series 1998B, MB, | |||||
AMT, 6.50%, 4/01/31 | 3,000 | 3,013,380 | |||
New Jersey Educational Facilities Authority, Refunding | |||||
RB, University of Medicine & Dentistry, Series B, | |||||
7.13%, 12/01/23 | 580 | 709,062 | |||
New Jersey Health Care Facilities Financing Authority, | |||||
RB, Pascack Valley Hospital Association, | |||||
6.63%, 7/01/36 (b)(c) | 650 | 6 | |||
New Jersey Health Care Facilities Financing Authority, | |||||
Refunding RB: | |||||
Barnabas Health, Series A, 5.63%, 7/01/37 | 1,000 | 1,012,110 | |||
St. Joseph’s Healthcare System, 6.63%, 7/01/38 | 725 | 732,417 | |||
12,155,417 |
Municipal Bonds | Par (000) | Value | |||
New Mexico — 0.3% | |||||
City of Farmington New Mexico, Refunding RB, Arizona | |||||
Public Service, Series A, 4.70%, 5/01/24 | $ | 500 | $ | 532,210 | |
New York — 3.8% | |||||
Chautauqua County Industrial Development Agency, RB, | |||||
NRG Dunkirk Power Project, 5.88%, 4/01/42 | 1,615 | 1,636,657 | |||
Genesee County Industrial Development Agency New York, | |||||
Refunding RB, United Memorial Medical Center Project, | |||||
5.00%, 12/01/32 | 500 | 414,860 | |||
New York City Industrial Development Agency, RB, AMT: | |||||
American Airlines Inc., JFK International Airport, | |||||
8.00%, 8/01/28 (b)(c) | 235 | 207,134 | |||
British Airways Plc Project, 7.63%, 12/01/32 | 1,500 | 1,483,650 | |||
JetBlue Airways Corp. Project, 5.13%, 5/15/30 | 1,750 | 1,465,905 | |||
New York Liberty Development Corp., Refunding RB, | |||||
Second Priority, Bank of America Tower at One Bryant | |||||
Park Project, 6.38%, 7/15/49 | 375 | 395,460 | |||
Westchester County Industrial Development Agency | |||||
New York, MRB, Kendal On Hudson Project, Series A, | |||||
6.38%, 1/01/24 | 1,500 | 1,502,340 | |||
Yonkers Industrial Development Agency New York, | |||||
RB, Sarah Lawrence College Project, Series A, | |||||
6.00%, 6/01/41 | 410 | 439,860 | |||
7,545,866 | |||||
North Carolina — 1.7% | |||||
North Carolina Medical Care Commission, RB, First | |||||
Mortgage, Whitestone, Series A, 7.75%, 3/01/41 | 830 | 859,282 | |||
North Carolina Medical Care Commission, Refunding RB: | |||||
Carolina Village Project, 6.00%, 4/01/38 | 1,000 | 926,670 | |||
First Mortgage, Galloway Ridge Project, Series A, | |||||
6.00%, 1/01/39 | 1,520 | 1,501,973 | |||
3,287,925 | |||||
Ohio — 0.8% | |||||
State of Ohio, RB, Ford Motor Co. Project, AMT, | |||||
5.75%, 4/01/35 | 1,620 | 1,578,317 | |||
Pennsylvania — 3.6% | |||||
Allegheny County Hospital Development Authority, | |||||
Refunding RB, Health System, West Penn, Series A, | |||||
5.38%, 11/15/40 | 2,140 | 1,735,818 | |||
City of Philadelphia Pennsylvania, RB, Ninth Series, | |||||
5.25%, 8/01/40 | 1,000 | 1,011,660 | |||
Cumberland County Municipal Authority, RB, Diakon | |||||
Lutheran, 6.38%, 1/01/39 | 2,335 | 2,444,138 | |||
Lancaster County Hospital Authority, RB, Brethren Village | |||||
Project, Series A, 6.50%, 7/01/40 | 835 | 841,121 | |||
Pennsylvania Economic Development Financing Authority, | |||||
RB, US Airways Group, Series A, 7.50%, 5/01/20 | 1,100 | 1,112,034 | |||
7,144,771 | |||||
Puerto Rico — 2.7% | |||||
Puerto Rico Electric Power Authority, RB, Series WW, | |||||
5.50%, 7/01/38 | 1,000 | 1,036,440 | |||
Puerto Rico Sales Tax Financing Corp., RB: | |||||
First Sub-Series A, 6.50%, 8/01/44 | 750 | 862,612 | |||
Series B, CAB, 5.50%, 8/01/31 | 2,500 | 2,559,725 | |||
Puerto Rico Sales Tax Financing Corp., Refunding RB, | |||||
CAB, First Sub-Series C, 6.09%, 8/01/38 (a) | 5,000 | 1,014,600 | |||
5,473,377 | |||||
Tennessee — 0.6% | |||||
Tennessee Energy Acquisition Corp., RB, Series A, | |||||
5.25%, 9/01/26 | 1,250 | 1,232,313 |
See Notes to Financial Statements.
30 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments (continued) | BlackRock High Yield Municipal Fund |
---|
Municipal Bonds | Par (000) | Value | |||
Texas — 12.0% | |||||
Bexar County Health Facilities Development Corp., RB, | |||||
Army Retirement Residence Project, 6.20%, 7/01/45 | $ 1,320 | $ | 1,367,586 | ||
Brazos River Authority, RB, TXU Electric, Series A, AMT, | |||||
8.25%, 10/01/30 | 750 | 161,250 | |||
Central Texas Regional Mobility Authority, RB: | |||||
CAB, 6.17%, 1/01/28 (a) | 3,000 | 1,134,480 | |||
CAB, 6.24%, 1/01/29 (a) | 500 | 175,890 | |||
CAB, 6.33%, 1/01/30 (a) | 1,330 | 433,128 | |||
Senior Lien, 5.75%, 1/01/25 | 250 | 262,325 | |||
Senior Lien, 6.25%, 1/01/46 | 765 | 786,986 | |||
City of Houston Texas, RB: | |||||
Senior Lien, Series A, 5.50%, 7/01/39 | 120 | 129,008 | |||
Special Facilities, Continental Airlines Inc. Terminal | |||||
Projects, Series E, AMT, 6.63%, 7/15/38 | 1,110 | 1,105,826 | |||
Special Facilities, Continental Airlines, Series E, AMT, | |||||
6.75%, 7/01/21 | 630 | 631,562 | |||
Special Facilities, Continental Airlines, Series E, AMT, | |||||
7.38%, 7/01/22 | 500 | 501,080 | |||
Clifton Higher Education Finance Corp., ERB, Idea | |||||
Public Schools: | |||||
5.50%, 8/01/31 | 370 | 373,830 | |||
5.75%, 8/01/41 | 280 | 282,864 | |||
Danbury Higher Education Authority Inc., RB, A.W. Brown | |||||
Fellowship Charter, Series A (ACA), 5.00%, 8/15/16 (e) | 355 | 411,914 | |||
Houston Higher Education Finance Corp., RB, Cosmos | |||||
Foundation, Inc., Series A: | |||||
6.50%, 5/15/31 | 1,000 | 1,082,310 | |||
6.88%, 5/15/41 | 205 | 223,222 | |||
Love Field Airport Modernization Corp., RB, Southwest | |||||
Airlines Co. Project, 5.25%, 11/01/40 | 500 | 488,990 | |||
Matagorda County Navigation District No. 1 Texas, | |||||
Refunding RB, Central Power & Light Co. Project, | |||||
Series A, 6.30%, 11/01/29 | 290 | 322,170 | |||
North Texas Tollway Authority, RB: | |||||
CAB, Special Projects System, Series B, | |||||
6.26%, 9/01/37 (a) | 725 | 148,937 | |||
Toll, Second Tier, Series F, 6.13%, 1/01/31 | 1,150 | 1,220,783 | |||
Tarrant County Cultural Education Facilities Finance Corp., | |||||
RB, Series A: | |||||
CC Young Memorial Home, 8.00%, 2/15/38 | 330 | 336,049 | |||
Senior Living Center Project, 8.25%, 11/15/44 | 800 | 821,712 | |||
Tarrant County Cultural Education Facilities Finance Corp., | |||||
Refunding RB, Northwest Senior Housing, Edgemere | |||||
Project, Series A, 6.00%, 11/15/36 | 1,500 | 1,469,520 | |||
Texas Private Activity Bond Surface Transportation Corp., | |||||
RB, Senior Lien: | |||||
LBJ Infrastructure Group LLC, LBJ Freeway Managed | |||||
Lanes Project, 7.00%, 6/30/40 | 2,320 | 2,518,522 | |||
NTE Mobility Partners LLC, North Tarrant Express | |||||
Managed Lanes Project, 6.88%, 12/31/39 | 1,740 | 1,871,631 | |||
Texas Public Finance Authority, ERB, Charter School | |||||
Finance Corp., Cosmos Foundation, 5.38%, 2/15/37 | 600 | 579,516 | |||
Texas State Public Finance Authority, Refunding ERB, | |||||
KIPP Inc., Series A (ACA): | |||||
5.00%, 2/15/28 | 680 | 682,407 | |||
5.00%, 2/15/36 | 2,000 | 1,953,320 | |||
Texas State Turnpike Authority, RB, First Tier, Series A | |||||
(AMBAC), 5.00%, 8/15/42 | 2,500 | 2,495,950 | |||
23,972,768 | |||||
Utah — 0.5% | |||||
Utah State Charter School Finance Authority, RB, | |||||
Navigator Pointe Academy, Series A, 5.63%, 7/15/40 | 1,000 | 908,620 | |||
Vermont — 0.5% | |||||
Vermont EDA, Refunding MRB, Wake Robin Corp. Project, | |||||
Series A (ACA), 6.30%, 3/01/33 | 1,000 | 943,140 |
Municipal Bonds | Par (000) | Value | |||
Virginia — 2.9% | |||||
Albemarle County IDA, Refunding RB, Westminster- | |||||
Canterbury, 5.00%, 1/01/31 | $ | 500 | $ | 470,195 | |
City of Norfolk Virginia, Refunding RB, Series B (AMBAC), | |||||
5.50%, 2/01/31 | 220 | 220,079 | |||
Fairfax County EDA, Refunding RB, Goodwin House Inc.: | |||||
5.13%, 10/01/37 | 2,040 | 2,012,562 | |||
5.13%, 10/01/42 | 1,185 | 1,155,363 | |||
Lexington IDA, Refunding MRB, Kendal at Lexington, | |||||
Series A, 5.38%, 1/01/28 | 210 | 192,914 | |||
Mosaic District Community Development Authority, RB, | |||||
Tax Allocation, Series A: | |||||
6.63%, 3/01/26 | 515 | 545,962 | |||
6.88%, 3/01/36 | 450 | 477,086 | |||
Watkins Centre Community Development Authority, RB, | |||||
5.40%, 3/01/20 | 750 | 760,613 | |||
5,834,774 | |||||
Washington — 1.8% | |||||
King County, Washington Public Hospital District No. 4, | |||||
GO, Refunding, Snoqualmie Valley Hospital, | |||||
7.00%, 12/01/40 | 545 | 548,826 | |||
Tobacco Settlement Authority of Washington, RB, | |||||
Asset-Backed, 6.50%, 6/01/26 | 2,265 | 2,318,363 | |||
Washington Health Care Facilities Authority, RB, Swedish | |||||
Health Services, Series A, 6.75%, 11/15/41 | 730 | 817,666 | |||
3,684,855 | |||||
Wisconsin — 0.9% | |||||
Wisconsin Health & Educational Facilities Authority, RB, | |||||
Wheaton Franciscan Healthcare, 5.25%, 8/15/34 | 1,565 | 1,481,679 | |||
Wisconsin Health & Educational Facilities Authority, | |||||
Refunding RB, St. John’s Communities Inc., Series A: | |||||
7.25%, 9/15/29 | 75 | 79,537 | |||
7.63%, 9/15/39 | 145 | 154,856 | |||
1,716,072 | |||||
Total Municipal Bonds — 83.8% | 166,924,694 | ||||
Municipal Bonds Transferred to | |||||
Tender Option Bond Trusts (f) | |||||
California — 1.2% | |||||
Bay Area Toll Authority, Refunding RB, San Francisco | |||||
Bay Area, Series F-1, 5.63%, 4/01/44 | 480 | 527,788 | |||
Los Angeles Department of Airports, Refunding RB, | |||||
Senior, Los Angeles International Airport, Series A, | |||||
5.00%, 5/15/40 | 1,680 | 1,797,247 | |||
2,325,035 | |||||
District of Columbia — 0.6% | |||||
District of Columbia Water & Sewer Authority, RB, Series A, | |||||
6.00%, 10/01/35 | 950 | 1,137,942 | |||
Illinois — 1.3% | |||||
Illinois Finance Authority, RB, Carle Foundation, Series A | |||||
(AGM), 6.00%, 8/15/41 | 2,480 | 2,634,355 | |||
New York — 10.3% | |||||
Hudson Yards Infrastructure Corp., RB, Series A, | |||||
5.75%, 2/15/47 | 1,720 | 1,860,453 | |||
New York City Municipal Water Finance Authority, RB, | |||||
Second General Resolution: | |||||
Series EE, 5.50%, 6/15/43 | 3,795 | 4,259,470 | |||
Series HH, 5.00%, 6/15/31 | 3,015 | 3,345,258 | |||
New York Liberty Development Corp., RB, World Trade | |||||
Center Port Authority, 5.25%, 12/15/43 | 4,290 | 4,708,361 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 31 |
Schedule of Investments (concluded) | BlackRock High Yield Municipal Fund |
---|
Municipal Bonds Transferred to Tender Option Bond Trusts (f) | Par (000) | Value | ||||
New York (concluded) | ||||||
New York Liberty Development Corp., Refunding RB, | ||||||
4 World Trade Center Project, 5.75%, 11/15/51 | $ | 2,520 | $ | 2,733,192 | ||
New York State Dormitory Authority, ERB, Series F, | ||||||
5.00%, 3/15/35 | 3,405 | 3,560,167 | ||||
20,466,901 | ||||||
Ohio — 2.2% | ||||||
County of Allen Ohio, Refunding RB, Catholic Healthcare, | ||||||
Series A, 5.25%, 6/01/38 | 2,200 | 2,270,884 | ||||
State of Ohio, Refunding RB, Cleveland Clinic Health, | ||||||
Series A, 5.50%, 1/01/39 | 2,010 | 2,118,150 | ||||
4,389,034 | ||||||
South Carolina — 0.9% | ||||||
South Carolina State Housing Finance & Development | ||||||
Authority, Refunding RB, Series B-1, 5.55%, 7/01/39 | 1,719 | 1,792,314 | ||||
Virginia — 1.3% | ||||||
Virginia Small Business Financing Authority, Refunding RB, | ||||||
Sentara Healthcare, 5.00%, 11/01/40 | 2,501 | 2,600,892 | ||||
Washington — 1.6% | ||||||
City of Bellingham Washington, RB, Water & Sewer, | ||||||
5.00%, 8/01/40 | 2,999 | 3,240,312 | ||||
Wisconsin — 1.1% | ||||||
Wisconsin Health & Educational Facilities Authority, | ||||||
Refunding RB, Froedtert & Community Health Inc., | ||||||
5.25%, 4/01/39 | 2,180 | 2,234,791 | ||||
Total Municipal Bonds Transferred to | ||||||
Tender Option Bond Trusts — 20.5% | 40,821,576 | |||||
Total Long-Term Investments | ||||||
(Cost — $202,226,171) — 104.3% | 207,746,270 | |||||
Short-Term Securities | ||||||
Michigan — 0.6% | ||||||
Michigan Finance Authority, RB, SAN, Detroit Schools, | ||||||
Series A-1, 6.45%, 2/20/12 | 1,150 | 1,150,000 | ||||
Shares | ||||||
Money Market — 4.4% | ||||||
FFI Institutional Tax-Exempt Fund, 0.01% (g)(h) | 8,839,038 | 8,839,038 | ||||
Total Short-Term Securities | ||||||
(Cost — $9,989,038) — 5.0% | 9,989,038 | |||||
Total Investments (Cost — $212,215,209) — 109.3% | 217,735,308 | |||||
Other Assets Less Liabilities — 1.6% | 3,166,951 | |||||
Liability for TOB Trust Certificates, Including Interest | ||||||
Expense and Fees Payable — (10.9)% | (21,778,567 | ) | ||||
Net Assets — 100.0% | $ | 199,123,692 |
(a) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
(b) | Issuer filed for bankruptcy and/or is in default of interest payments. |
(c) | Non-income producing security. |
(d) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(e) | 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. |
(f) | Securities represent bonds transferred to a TOB in exchange for which the Fund 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. |
(g) | Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
Affiliate | Shares Held at June 30, 2011 | Net Activity | Shares Held at December 31, 2011 | Income | |
FFI Institutional | |||||
Tax-Exempt Fund | 1,739,592 | 7,099,446 | 8,839,038 | $ | 373 |
(h) | Represents the current yield as of report date. |
• | Financial futures contracts sold as of December 31, 2011 were as follows: |
Contracts | Issue | Exchange | Expiration | Notional Value | Unrealized Depreciation | |
41 | 10-Year US | Chicago Board | March | |||
Treasury Note | of Trade | 2012 | $5,376,125 | $(25,703) |
• | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
• | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
• | Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
• | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. 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 does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of December 31, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | ||||||
Assets: | ||||||||||
Investments: | ||||||||||
Long-Term Investments1 | — | $ | 207,746,270 | — | $ | 207,746,270 | ||||
Short-Term Securities | $ | 8,839,038 | 1,150,000 | — | 9,989,038 | |||||
Total | $ | 8,839,038 | $ | 208,896,270 | — | $ | 217,735,308 |
1 See above Schedule of Investments for values in each state or political subdivision.
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |||||
Derivative Financial Instruments2 | |||||||||
Liabilities: | |||||||||
Interest Rate Contracts | $ | (25,703) | — | — | $ | (25,703) |
2 | Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
See Notes to Financial Statements.
32 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments December 31, 2011 (Unaudited) | BlackRock New York Municipal Bond Fund |
---|
Municipal Bonds | Par (000) | Value | |||
New York — 83.5% | |||||
Corporate — 9.9% | |||||
Chautauqua County Industrial Development Agency, RB, | |||||
NRG Dunkirk Power Project, 5.88%, 4/01/42 | $ | 750 | $ | 760,057 | |
County of Westchester New York Healthcare Corp., RB, | |||||
Senior Lien, Series A, Remarketing, 5.00%, 11/01/30 | 2,500 | 2,528,900 | |||
Essex County Industrial Development Agency New York, | |||||
RB, International Paper Co. Project, Series A, AMT, | |||||
6.63%, 9/01/32 | 350 | 374,013 | |||
Jefferson County Industrial Development Agency | |||||
New York, Refunding RB, Solid Waste, Series A, AMT, | |||||
5.20%, 12/01/20 | 250 | 250,985 | |||
New York City Industrial Development Agency, RB, AMT: | |||||
American Airlines Inc., JFK International Airport, | |||||
7.75%, 8/01/31 (a) | 2,000 | 1,762,880 | |||
British Airways Plc Project, 5.25%, 12/01/32 | 1,000 | 790,410 | |||
Continental Airlines Inc. Project, 8.00%, 11/01/12 | 340 | 344,342 | |||
Continental Airlines Inc. Project, Mandatory | |||||
Put Bonds, 8.38%, 11/01/16 | 250 | 252,828 | |||
New York City Industrial Development Agency, Refunding | |||||
RB, Terminal One Group Association Project, AMT, | |||||
5.50%, 1/01/24 (a) | 2,500 | 2,616,725 | |||
New York Liberty Development Corp., RB, Goldman | |||||
Sachs Headquarters: | |||||
5.25%, 10/01/35 | 6,000 | 6,156,060 | |||
5.50%, 10/01/37 | 405 | 429,251 | |||
Suffolk County Industrial Development Agency New York, | |||||
RB, KeySpan, Port Jefferson, AMT, 5.25%, 6/01/27 | 1,360 | 1,387,146 | |||
Suffolk County Industrial Development Agency New York, | |||||
Refunding RB, Ogden Martin System Huntington, AMT | |||||
(AMBAC), 6.25%, 10/01/12 | 7,155 | 7,448,999 | |||
25,102,596 | |||||
County/City/Special District/School District — 17.0% | |||||
Amherst Development Corp., RB, University at Buffalo | |||||
Foundation Faculty-Student Housing Corp., Series A | |||||
(AGM), 4.63%, 10/01/40 | 305 | 309,258 | |||
Buffalo & Erie County Industrial Land Development Corp., | |||||
RB, Buffalo State College Foundation Housing Corp., | |||||
5.38%, 10/01/41 | 840 | 887,897 | |||
City of New York, New York, GO: | |||||
Series A-1, 5.00%, 8/01/35 | 400 | 434,232 | |||
Sub-Series I-1, 5.38%, 4/01/36 | 2,650 | 2,944,176 | |||
City of Syracuse New York, GO, 4.75%, 11/01/31 | 500 | 508,625 | |||
Hudson Yards Infrastructure Corp., RB, Series A: | |||||
5.00%, 2/15/47 | 5,970 | 5,991,074 | |||
5.75%, 2/15/47 | 100 | 108,175 | |||
(AGM), 5.00%, 2/15/47 | 1,050 | 1,062,716 | |||
(NPFGC), 4.50%, 2/15/47 | 1,815 | 1,702,452 | |||
New York City Industrial Development Agency, RB, PILOT: | |||||
CAB, Yankee Stadium (AGC), 5.50%, 3/01/42 (b) | 5,000 | 924,450 | |||
CAB, Yankee Stadium (AGC), 5.58%, 3/01/45 (b) | 1,500 | 230,220 | |||
Queens Baseball Stadium (AGC), 6.50%, 1/01/46 | 700 | 762,692 | |||
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/36 | 1,610 | 1,429,004 | |||
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39 | 1,850 | 1,624,244 | |||
New York City Transitional Finance Authority, RB: | |||||
Fiscal 2008, Series S-1, 4.50%, 1/15/38 | 500 | 505,260 | |||
Fiscal 2009, Series S-1, 5.63%, 7/15/38 | 200 | 221,450 | |||
Fiscal 2009, Series S-3, 5.25%, 1/15/39 | 2,100 | 2,270,373 | |||
Series S-2 (NPFGC), 4.50%, 1/15/31 | 1,250 | 1,279,412 | |||
New York Convention Center Development Corp., RB, | |||||
Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/44 | 3,315 | 3,374,338 | |||
New York Liberty Development Corp., Refunding RB, | |||||
Second Priority, Bank of America Tower at One Bryant | |||||
Park Project: | |||||
5.63%, 7/15/47 | 9,305 | 9,470,164 | |||
6.38%, 7/15/49 | 1,200 | 1,265,472 |
Municipal Bonds | Par (000) | Value | |||
New York (continued) | |||||
County/City/Special District/School District (concluded) | |||||
New York State Dormitory Authority, RB, State University | |||||
Dormitory Facilities, Series A: | |||||
5.25%, 7/01/29 | $ | 5 | $ | 5,570 | |
5.00%, 7/01/39 | 750 | 799,703 | |||
Niagara County Industrial Development Agency, | |||||
Refunding RB, Series A, Mandatory Put Bonds, AMT, | |||||
5.45%, 11/15/26 (a) | 3,975 | 4,019,480 | |||
North Country Development Authority, Refunding RB | |||||
(AGM), 6.00%, 5/15/15 | 625 | 670,475 | |||
St. Lawrence County Industrial Development Agency, RB, | |||||
Clarkson University Project, 5.38%, 9/01/41 | 275 | 297,039 | |||
43,097,951 | |||||
Education — 12.8% | |||||
City of Troy New York, Refunding RB, Rensselaer | |||||
Polytechnic, Series A, 5.13%, 9/01/40 | 4,375 | 4,459,044 | |||
Hempstead Town Industrial Development Agency, RB, | |||||
Adelphi University Civic Facility (c): | |||||
5.75%, 6/01/22 | 700 | 716,086 | |||
5.50%, 6/01/32 | 2,250 | 2,299,342 | |||
Madison County Industrial Development Agency New York, | |||||
RB, Commons II LLC, Student Housing, Series A (CIFG), | |||||
5.00%, 6/01/33 | 400 | 388,716 | |||
Nassau County Industrial Development Agency, Refunding | |||||
RB, New York Institute of Technology Project, Series A, | |||||
4.75%, 3/01/26 | 1,000 | 1,048,930 | |||
New York City Industrial Development Agency, RB: | |||||
Lycee Francais de New York Project, Series A (ACA), | |||||
5.50%, 6/01/15 | 250 | 257,858 | |||
Lycee Francais de New York Project, Series A (ACA), | |||||
5.38%, 6/01/23 | 195 | 198,319 | |||
Series C, 6.80%, 6/01/28 | 2,500 | 2,578,525 | |||
New York State Dormitory Authority, RB: | |||||
5.75%, 7/01/39 (d) | 1,000 | 953,190 | |||
The New School (AGM), 5.50%, 7/01/43 | 1,000 | 1,083,230 | |||
New York University, Series 1 (AMBAC), | |||||
5.50%, 7/01/40 | 500 | 633,090 | |||
Personal Income Tax, Series G, 5.00%, 8/15/32 | 1,975 | 2,199,854 | |||
Rochester Institute of Technology, Series A, | |||||
6.00%, 7/01/33 | 1,000 | 1,117,160 | |||
Rochester University, Series A, 5.13%, 7/01/39 (c) | 1,500 | 1,673,535 | |||
Rochester University, Series B, 5.00%, 7/01/39 | 550 | 569,921 | |||
New York State Dormitory Authority, Refunding RB: | |||||
Brooklyn Law School, 5.75%, 7/01/33 | 475 | 518,771 | |||
Skidmore College, Series A, 5.25%, 7/01/29 | 135 | 150,719 | |||
Teachers College, 5.50%, 3/01/39 | 850 | 920,482 | |||
Schenectady County Industrial Development Agency, | |||||
Refunding RB, Union College Project, 5.00%, 7/01/31 | 2,000 | 2,056,760 | |||
Suffolk County Industrial Development Agency, Refunding | |||||
RB, New York Institute of Technology Project, | |||||
5.00%, 3/01/26 | 750 | 765,135 | |||
Tompkins County Development Corp., RB, Ithaca College | |||||
Project (AGM), 5.50%, 7/01/33 | 450 | 496,674 | |||
Trust for Cultural Resources, RB, Series A: | |||||
Carnegie Hall, 4.75%, 12/01/39 | 1,550 | 1,592,160 | |||
Carnegie Hall, 5.00%, 12/01/39 | 1,325 | 1,383,936 | |||
Juilliard School, 5.00%, 1/01/39 | 1,050 | 1,132,856 | |||
Utica Industrial Development Agency New York, RB, | |||||
Munson-Williams-Proctor Arts Institute: | |||||
5.38%, 7/15/20 | 1,000 | 1,012,010 | |||
5.40%, 7/15/30 | 1,210 | 1,220,587 | |||
Yonkers Industrial Development Agency New York, | |||||
RB, Sarah Lawrence College Project, Series A, | |||||
6.00%, 6/01/41 | 1,000 | 1,072,830 | |||
32,499,720 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 33 |
Schedule of Investments (continued) | BlackRock New York Municipal Bond Fund |
---|
Municipal Bonds | Par (000) | Value | |||
New York (continued) | |||||
Health — 16.3% | |||||
Dutchess County Local Development Corp., Refunding RB, | |||||
Health Quest System Inc., Series A, 5.75%, 7/01/40 | $ | 300 | $ | 311,640 | |
Erie County Industrial Development Agency, RB, Episcopal | |||||
Church Home, Series A: | |||||
5.88%, 2/01/18 | 540 | 540,092 | |||
6.00%, 2/01/28 | 375 | 373,448 | |||
Genesee County Industrial Development Agency New York, | |||||
Refunding RB, United Memorial Medical Center Project: | |||||
5.00%, 12/01/27 | 500 | 437,515 | |||
5.00%, 12/01/32 | 1,080 | 896,098 | |||
Monroe County Industrial Development Corp., RB, Unity | |||||
Hospital of Rochester Project (FHA), 5.50%, 8/15/40 | 1,050 | 1,148,364 | |||
Nassau County Industrial Development Agency, Refunding | |||||
RB, Special Needs Facilities Pooled Program, Series F-1 | |||||
(ACA), 4.90%, 7/01/21 | 525 | 454,115 | |||
New York City Health & Hospital Corp., Refunding RB, | |||||
Health System, Series A, 5.00%, 2/15/30 | 1,000 | 1,056,660 | |||
New York City Industrial Development Agency, RB: | |||||
A Very Special Place Inc. Project, Series A, | |||||
6.13%, 1/01/13 | 65 | 65,228 | |||
A Very Special Place Inc. Project, Series A, | |||||
7.00%, 1/01/33 | 1,600 | 1,519,280 | |||
PSCH Inc. Project, 6.38%, 7/01/33 | 2,555 | 2,317,692 | |||
Special Needs Facilities Pooled Program, Series A-1, | |||||
6.50%, 7/01/17 | 1,000 | 993,000 | |||
Special Needs Facilities Pooled Program, Series C-1, | |||||
6.50%, 7/01/17 | 2,540 | 2,522,220 | |||
New York City Industrial Development Agency, Refunding | |||||
RB (ACA), Special Needs Facilities Pooled Program: | |||||
Series A-1, 4.38%, 7/01/20 | 1,000 | 848,170 | |||
Series A-1, 4.50%, 7/01/30 | 210 | 152,781 | |||
Series C-1, 5.10%, 7/01/31 | 525 | 408,403 | |||
New York State Dormitory Authority, RB: | |||||
Healthcare, Series A, 5.00%, 3/15/38 | 250 | 266,475 | |||
Hudson Valley Hospital (BHAC), 5.00%, 8/15/36 | 750 | 788,955 | |||
New York & Presbyterian Hospital (AGM), | |||||
5.00%, 8/15/36 | 1,000 | 1,023,140 | |||
New York State Association for Retarded Children, Inc., | |||||
Series B (AMBAC), 6.00%, 7/01/32 | 700 | 767,634 | |||
North Shore-Long Island Jewish Health System, | |||||
Series A, 5.00%, 5/01/32 | 2,500 | 2,609,800 | |||
North Shore-Long Island Jewish Health System, | |||||
Series A, 5.50%, 5/01/37 | 1,675 | 1,780,709 | |||
North Shore-Long Island Jewish Health System, | |||||
Series A, 5.75%, 5/01/37 | 1,725 | 1,853,875 | |||
NYU Hospital Center, Series A, 5.75%, 7/01/31 | 1,055 | 1,120,515 | |||
NYU Hospital Center, Series A, 5.00%, 7/01/36 | 1,500 | 1,491,615 | |||
NYU Hospital Center, Series B, 5.63%, 7/01/37 | 530 | 544,225 | |||
New York State Dormitory Authority, Refunding RB: | |||||
Mount Sinai Hospital, Series A, 5.00%, 7/01/26 | 1,635 | 1,719,350 | |||
North Shore-Long Island Jewish Health System, | |||||
Series E, 5.50%, 5/01/33 | 1,000 | 1,066,980 | |||
Orange County Industrial Development Agency New York, | |||||
RB, Special Needs Facilities Pooled Program, Series G-1 | |||||
(ACA), 4.90%, 7/01/21 | 845 | 730,908 | |||
Suffolk County Industrial Development Agency | |||||
New York, RB: | |||||
Huntington Hospital Project, Series B, | |||||
5.88%, 11/01/32 (c) | 2,000 | 2,093,780 | |||
Special Needs Facilities Pooled Program, Series D-1, | |||||
6.50%, 7/01/17 | 135 | 134,055 | |||
Special Needs Facilities Pooled Program, Series D-1 | |||||
(ACA), 4.90%, 7/01/21 | 330 | 285,443 |
Municipal Bonds | Par (000) | Value | |||
New York (continued) | |||||
Health (concluded) | |||||
Sullivan County Industrial Development Agency New York, | |||||
RB, Special Needs Facilities Pooled Program, Series H-1 | |||||
(ACA), 4.90%, 7/01/21 | $ | 330 | $ | 285,443 | |
Westchester County Healthcare Corp. New York, Refunding | |||||
RB, Senior Lien, Series B, 6.00%, 11/01/30 | 375 | 410,460 | |||
Westchester County Industrial Development Agency | |||||
New York, MRB, Kendal on Hudson Project, Series A: | |||||
6.38%, 1/01/24 | 1,000 | 1,001,560 | |||
6.50%, 1/01/34 (c) | 5,200 | 5,524,740 | |||
Westchester County Industrial Development Agency | |||||
New York, RB, Special Needs Facilities Pooled Program, | |||||
Series E-1 (ACA), 4.90%, 7/01/21 | 350 | 302,743 | |||
Yonkers Industrial Development Agency New York, RB, | |||||
Sacred Heart Associations Project, Series A, AMT | |||||
(SONYMA), 5.00%, 10/01/37 | 1,640 | 1,673,915 | |||
41,521,026 | |||||
Housing — 5.6% | |||||
Monroe County Industrial Development Agency, | |||||
IDRB, Southview Towers Project, AMT (SONYMA), | |||||
6.25%, 2/01/31 | 1,000 | 1,001,440 | |||
New York City Housing Development Corp., RB, Series C, | |||||
AMT, 5.05%, 11/01/36 | 1,220 | 1,233,042 | |||
New York Mortgage Agency, Refunding RB, AMT: | |||||
Series 101, 5.40%, 4/01/32 | 2,145 | 2,145,772 | |||
Series 133, 4.95%, 10/01/21 | 395 | 406,096 | |||
Series 143, 4.90%, 10/01/37 | 1,760 | 1,760,669 | |||
New York State HFA, RB, AMT, Series A: | |||||
Division Street (SONYMA), 5.10%, 2/15/38 | 875 | 881,449 | |||
Highland Avenue Senior Apartments (SONYMA), | |||||
5.00%, 2/15/39 | 2,000 | 2,005,260 | |||
Kensico Terrace Apartments (SONYMA), | |||||
4.90%, 2/15/38 | 645 | 645,516 | |||
M/F Housing, Watergate II, 4.75%, 2/15/34 | 580 | 578,393 | |||
Yonkers EDC, Refunding RB, Riverview II (Freddie Mac), | |||||
4.50%, 5/01/25 | 3,000 | 3,090,270 | |||
Yonkers Industrial Development Agency New York, RB, | |||||
Monastery Manor Associates LP Project, AMT (SONYMA), | |||||
5.25%, 4/01/37 | 585 | 592,622 | |||
14,340,529 | |||||
State — 7.4% | |||||
New York City Transitional Finance Authority, Future Tax | |||||
Secured Bond, RB, Sub-Series D-1, 5.00%, 11/01/38 | 1,650 | 1,791,388 | |||
New York Liberty Development Corp., RB, World Trade | |||||
Center Project: | |||||
5.00%, 11/15/31 | 860 | 905,855 | |||
5.75%, 11/15/51 | 1,340 | 1,453,364 | |||
New York State Dormitory Authority, LRB, Municipal Health | |||||
Facilities, Sub-Series 2-4, 4.75%, 1/15/30 | 1,700 | 1,764,107 | |||
New York State Dormitory Authority, RB, Mental Health | |||||
Services Facilities Improvement, Series A (AGM), | |||||
5.00%, 2/15/22 | 1,000 | 1,150,680 | |||
New York State Dormitory Authority, Refunding RB, | |||||
Upstate Community Colleges, Series B, 5.25%, 7/01/21 | 1,565 | 1,695,552 | |||
New York State Thruway Authority, Refunding RB, | |||||
Series A-1, 5.00%, 4/01/29 | 1,000 | 1,100,540 | |||
New York State Urban Development Corp., Refunding RB: | |||||
Clarkson Center for Advance Materials, | |||||
5.50%, 1/01/20 | 1,685 | 2,084,008 | |||
University Facilities Grants, 5.50%, 1/01/19 | 3,500 | 4,301,920 | |||
Onondaga Civic Development Corp., RB, Upstate | |||||
Properties Development Project, 5.25%, 12/01/41 | 1,165 | 1,210,610 | |||
State of New York, GO, Series A, 5.00%, 2/15/39 | 1,250 | 1,354,988 | |||
18,813,012 |
See Notes to Financial Statements.
34 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Schedule of Investments (continued) | BlackRock New York Municipal Bond Fund |
---|
Municipal Bonds | Par (000) | Value | |||
New York (concluded) | |||||
Tobacco — 2.0% | |||||
Nassau County Tobacco Settlement Corp., Refunding RB, | |||||
Asset-Backed, Senior Series A-3, 5.00%, 6/01/35 | $ | 2,000 | $ | 1,478,360 | |
New York Counties Tobacco Trust I, RB, Tobacco Pass Thru, | |||||
Series B: | |||||
6.50%, 6/01/35 | 750 | 708,713 | |||
6.63%, 6/01/42 | 490 | 463,721 | |||
Niagara County Tobacco Asset Securitization Corp. | |||||
New York, RB, Asset-Backed, 6.25%, 5/15/40 | 1,000 | 903,440 | |||
Tobacco Settlement Financing Corp. New York, RB, | |||||
Asset-Backed, Series A-1 (AMBAC), | |||||
5.25%, 6/01/20 | 1,455 | 1,541,078 | |||
5,095,312 | |||||
Transportation — 6.2% | |||||
Hudson Yards Infrastructure Corp., RB (AGC), | |||||
5.00%, 2/15/47 | 1,000 | 1,012,110 | |||
Metropolitan Transportation Authority, RB: | |||||
Series 2008C, 6.50%, 11/15/28 | 1,760 | 2,097,850 | |||
Series A, 5.63%, 11/15/39 | 500 | 549,650 | |||
Onondaga County Industrial Development Agency | |||||
New York, RB, AMT Air Cargo: | |||||
Senior, 6.13%, 1/01/32 | 3,940 | 3,349,079 | |||
Subordinate, 7.25%, 1/01/32 | 1,365 | 1,273,941 | |||
Port Authority of New York & New Jersey, RB, Special | |||||
Project, JFK International Air Terminal, Series 6: | |||||
6.00%, 12/01/42 | 2,000 | 2,103,900 | |||
(NPFGC), 6.25%, 12/01/13 | 2,575 | 2,685,776 | |||
(NPFGC), 6.25%, 12/01/14 | 2,620 | 2,766,012 | |||
15,838,318 | |||||
Utilities — 6.3% | |||||
Long Island Power Authority, RB: | |||||
General, Series A (AGM), 5.00%, 5/01/36 | 500 | 533,390 | |||
General, Series C (CIFG), 5.25%, 9/01/29 | 3,000 | 3,480,000 | |||
Long Island Power Authority, Refunding RB, Series A: | |||||
5.50%, 4/01/24 | 1,250 | 1,442,575 | |||
6.00%, 5/01/33 | 2,450 | 2,797,165 | |||
5.75%, 4/01/39 | 300 | 334,749 | |||
New York City Municipal Water Finance Authority, RB: | |||||
Fiscal 2008, Series A, 5.00%, 6/15/38 | 1,570 | 1,661,264 | |||
Fiscal 2009, Series A, 5.75%, 6/15/40 | 500 | 570,410 | |||
Second General Resolution HH, 5.00%, 6/15/32 | 2,800 | 3,085,880 | |||
Series FF-2, 5.50%, 6/15/40 | 800 | 894,752 | |||
New York State Environmental Facilities Corp., RB, | |||||
Revolving Funds NYC Municipal Water, 5.00%, 6/15/36 | 1,000 | 1,091,260 | |||
15,891,445 | |||||
Total Municipal Bonds in New York | 212,199,909 | ||||
Guam — 1.5% | |||||
State — 0.4% | |||||
Territory of Guam, GO, Series A, 7.00%, 11/15/39 | 970 | 1,007,587 | |||
Tobacco — 0.3% | |||||
Guam Economic Development & Commerce Authority, | |||||
Refunding RB, Tobacco Settlement Asset-Backed, | |||||
5.63%, 6/01/47 | 1,075 | 890,627 | |||
Utilities — 0.8% | |||||
Guam Government Waterworks Authority, Refunding RB, | |||||
Water, 5.88%, 7/01/35 | 2,000 | 1,984,900 | |||
Total Municipal Bonds in Guam | 3,883,114 |
Municipal Bonds | Par (000) | Value | |||
Puerto Rico — 5.4% | |||||
County/City/Special District/School District — 0.5% | |||||
Puerto Rico Sales Tax Financing Corp., Refunding RB, | |||||
CAB, Series A (NPFGC), 5.76%, 8/01/41 (b) | $ | 7,500 | $ | 1,245,975 | |
Housing — 0.7% | |||||
Puerto Rico Housing Finance Authority, Refunding RB, | |||||
Subordinate, Capital Fund Modernization, | |||||
5.13%, 12/01/27 | 1,750 | 1,859,218 | |||
State — 1.7% | |||||
Puerto Rico Commonwealth Infrastructure Financing | |||||
Authority, RB, CAB, Series A (b): | |||||
(AMBAC), 6.71%, 7/01/44 | 1,100 | 121,517 | |||
(FGIC), 6.76%, 7/01/42 | 7,470 | 953,396 | |||
Puerto Rico Public Buildings Authority, RB, Government | |||||
Facilities, Series I, 5.25%, 7/01/33 (c) | 55 | 61,082 | |||
Puerto Rico Sales Tax Financing Corp., RB, First | |||||
Sub-Series A: | |||||
5.75%, 8/01/37 | 2,000 | 2,183,240 | |||
(AGM), 5.00%, 8/01/40 | 1,000 | 1,035,600 | |||
4,354,835 | |||||
Tobacco — 0.4% | |||||
Children’s Trust Fund, Refunding RB, Asset-Backed, | |||||
5.63%, 5/15/43 | 1,000 | 849,450 | |||
Transportation — 1.6% | |||||
Puerto Rico Highway & Transportation Authority, RB, | |||||
Series Y (AGM), 6.25%, 7/01/21 | 1,000 | 1,173,200 | |||
Puerto Rico Highway & Transportation Authority, | |||||
Refunding RB (AGM): | |||||
Series AA-1, 4.95%, 7/01/26 | 2,175 | 2,274,789 | |||
Series CC, 5.50%, 7/01/30 | 450 | 505,498 | |||
3,953,487 | |||||
Utilities — 0.5% | |||||
Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, | |||||
Series A, 6.00%, 7/01/38 | 500 | 526,615 | |||
Puerto Rico Electric Power Authority, Refunding RB, | |||||
Series VV (NPFGC), 5.25%, 7/01/30 | 745 | 800,063 | |||
1,326,678 | |||||
Total Municipal Bonds in Puerto Rico | 13,589,643 | ||||
US Virgin Islands — 1.7% | |||||
Corporate — 1.7% | |||||
United States Virgin Islands, Refunding RB, Senior | |||||
Secured, Hovensa Coker Project, 6.50%, 7/01/21 | 4,500 | 4,336,695 | |||
Total Municipal Bonds in the US Virgin Islands | 4,336,695 | ||||
Total Municipal Bonds — 92.1% | 234,009,361 | ||||
Municipal Bonds Transferred to | |||||
Tender Option Bond Trusts (e) | |||||
New York — 8.8% | |||||
County/City/Special District/School District — 2.7% | |||||
City of New York, New York, GO, Series J, 5.00%, 5/15/23 | 1,800 | 1,949,940 | |||
New York Convention Center Development Corp., RB, | |||||
Hotel Unit Fee Secured (AMBAC), 5.00%, 11/15/35 | 3,200 | 3,281,312 | |||
New York State Dormitory Authority, RB, State University | |||||
Dormitory Facilities, Series A, 5.25%, 7/01/29 | 1,350 | 1,503,765 | |||
6,735,017 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 35 |
Schedule of Investments (concluded) | BlackRock New York Municipal Bond Fund |
---|
Municipal Bonds Transferred to Tender Option Bond Trusts (e) | Par (000) | Value | ||||
New York (concluded) | ||||||
Transportation — 4.4% | ||||||
Hudson Yards Infrastructure Corp., RB, Series A, | ||||||
5.75%, 2/15/47 | $ | 2,250 | $ | 2,433,732 | ||
New York Liberty Development Corp., RB, World Trade | ||||||
Center Port Authority, 5.25%, 12/15/43 | 6,495 | 7,128,392 | ||||
Port Authority of New York & New Jersey, RB, | ||||||
Consolidated 169th Series, 5.00%, 10/15/26 | 1,500 | 1,665,390 | ||||
11,227,514 | ||||||
Utilities — 1.7% | ||||||
New York City Municipal Water Finance Authority, | ||||||
Refunding RB, Series A, 4.75%, 6/15/30 | 4,000 | 4,245,400 | ||||
22,207,931 | ||||||
Puerto Rico | ||||||
County/City/Special District/School District — 0.4% | ||||||
Puerto Rico Sales Tax Financing Corp., RB, Series C, | ||||||
5.25%, 8/01/40 | 1,010 | 1,088,810 | ||||
Total Municipal Bonds Transferred to | ||||||
Tender Option Bond Trusts — 9.2% | 23,296,741 | |||||
Total Long-Term Investments | ||||||
(Cost — $248,247,793) — 101.3% | 257,306,102 | |||||
Short-Term Securities | Shares | |||||
BIF New York Municipal Money Fund, 0.00% (f)(g) | 3,942,864 | 3,942,864 | ||||
Total Short-Term Securities | ||||||
(Cost — $3,942,864) — 1.5% | 3,942,864 | |||||
Total Investments (Cost — $252,190,657) — 102.8% | 261,248,966 | |||||
Other Assets Less Liabilities — 1.9% | 4,786,022 | |||||
Liability for TOB Trust Certificates, Including Interest | ||||||
Expense and Fees Payable — (4.7)% | (11,905,504 | ) | ||||
Net Assets — 100.0% | $ | 254,129,484 |
(a) | Variable rate security. Rate shown is as of report date. |
(b) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
(c) | 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. |
(d) | Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date. |
(e) | Securities represent bonds transferred to a TOB trust in exchange for which the Fund 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) | Represents the current yield as of report date. |
(g) | Investments in companies considered to be an affiliate of the Fund during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
Affiliate | Shares Held at June 30, 2011 | Net Activity | Shares Held at December 31, 2011 | Income |
BIF New York | ||||
Municipal | ||||
Money Fund | 1,241,982 | 2,740,882 | 3,942,864 | — |
• | For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Fund management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease. |
• | Financial futures contracts sold as of December 31, 2011 were as follows: |
Contracts | Issue | Exchange | Expiration | Notional Value | Unrealized Depreciation | |
40 | 10-Year US | Chicago Board | March | |||
Treasury Note | of Trade | 2012 | $5,245,000 | $ (25,076) |
• | Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
• | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
• | Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
• | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. 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 does not necessarily correspond to the Fund’s perceived risk of investing in those securities. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
The following tables summarize the inputs used as of December 31, 2011 in determining the fair valuation of the Fund’s investments and derivative financial instruments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | ||||||
Assets: | ||||||||||
Investments: | ||||||||||
Long-Term Investments1 | — | $ | 257,306,102 | — | $ | 257,306,102 | ||||
Short–Term Securities | $ | 3,942,864 | — | — | 3,942,864 | |||||
Total | $ | 3,942,864 | $ | 257,306,102 | — | $ | 261,248,966 |
1 | See above Schedule of Investments for values in each sector. |
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |||||
Derivative Financial Instruments2 | |||||||||
Liabilities: | |||||||||
Interest Rate Contracts | $ | (25,076) | — | — | $ | (25,076) |
2 | Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
36 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Statements of Assets and Liabilities
December 31, 2011 (Unaudited) | BlackRock Short-Term Municipal Fund | BlackRock National Municipal Fund | BlackRock High Yield Municipal Fund | BlackRock New York Municipal Bond Fund | ||||||||
Assets | ||||||||||||
Investments at value — unaffiliated1 | $ | 1,050,293,759 | $ | 4,145,352,229 | $ | 208,896,270 | $ | 257,306,102 | ||||
Investments at value — affiliated2 | 16,944,113 | 389,796,373 | 8,839,038 | 3,942,864 | ||||||||
Cash | 98,515 | — | — | — | ||||||||
Cash pledged as collateral for financial futures contracts | — | 960,000 | 79,000 | 77,000 | ||||||||
Interest receivable | 11,880,857 | 64,890,703 | 3,064,084 | 4,112,791 | ||||||||
Capital shares sold receivable | 5,699,083 | 14,915,261 | 1,609,399 | 442,560 | ||||||||
Investments sold receivable | — | 20,465,962 | 120,000 | 1,202,778 | ||||||||
Prepaid expenses | 53,113 | 27,043 | 5,627 | 25,909 | ||||||||
Other assets | — | — | — | 4,933 | ||||||||
Total assets | $ | 1,084,969,440 | $ | 4,636,407,571 | $ | 222,613,418 | $ | 267,114,937 | ||||
Liabilities | ||||||||||||
Bank overdraft | — | 864,654 | 82,287 | 2,173 | ||||||||
Investments purchased payable | 22,249,628 | 8,790,975 | — | — | ||||||||
Income dividends payable | 620,322 | 10,564,463 | 695,021 | 713,116 | ||||||||
Capital shares redeemed payable | 2,800,674 | 10,915,483 | 774,172 | 120,526 | ||||||||
Investment advisory fees payable | 421,176 | 1,422,471 | 86,472 | 116,685 | ||||||||
Service and distribution fees payable | 118,109 | 709,735 | 25,162 | 45,110 | ||||||||
Interest expense payable | — | 225,317 | 6,321 | 1,913 | ||||||||
Margin variation payable | — | 140,625 | 11,531 | 11,250 | ||||||||
Officer's and Directors' fees payable | 19,425 | 53,329 | 12,610 | 12,557 | ||||||||
Other affiliates payable | 2,676 | 11,151 | 482 | 666 | ||||||||
Other accrued expenses payable | 74,727 | 415,764 | 23,422 | 76,647 | ||||||||
Total accrued liabilities | 26,306,737 | 34,113,967 | 1,717,480 | 1,100,643 | ||||||||
Other Liabilities | ||||||||||||
TOB trust certificates | — | 480,373,769 | 21,772,246 | 11,884,810 | ||||||||
Total liabilities | 26,306,737 | 514,487,736 | 23,489,726 | 12,985,453 | ||||||||
Net Assets | $ | 1,058,662,703 | $ | 4,121,919,835 | $ | 199,123,692 | $ | 254,129,484 | ||||
Net Assets Consist of | ||||||||||||
Paid-in capital | $ | 1,057,053,324 | $ | 4,004,000,853 | $ | 206,375,609 | $ | 259,546,766 | ||||
Undistributed (distributions in excess of) net investment income | (565,108 | ) | 2,134,435 | 385,270 | 736,854 | |||||||
Accumulated net realized loss | (7,445,479 | ) | (129,685,675 | ) | (13,131,583 | ) | (15,187,369 | ) | ||||
Net unrealized appreciation/depreciation | 9,619,966 | 245,470,222 | 5,494,396 | 9,033,233 | ||||||||
Net Assets | $ | 1,058,662,703 | $ | 4,121,919,835 | $ | 199,123,692 | $ | 254,129,484 | ||||
1 Investments at cost — unaffiliated | $ | 1,040,673,793 | $ | 3,899,568,557 | $ | 203,376,171 | $ | 248,247,793 | ||||
2 Investments at cost — affiliated | $ | 16,944,113 | $ | 389,796,373 | $ | 8,839,038 | $ | 3,942,864 | ||||
Net Asset Value | ||||||||||||
BlackRock: | ||||||||||||
Net assets | $ | 64,233,800 | $ | 443,386,036 | — | — | ||||||
Shares outstanding, $0.10 par value | 6,310,410 | 42,257,269 | — | — | ||||||||
Net asset value | $ | 10.18 | $ | 10.49 | — | — | ||||||
Par value per share | $ | 0.10 | $ | 0.10 | — | — | ||||||
Shares authorized | 150 Million | 375 Million | — | — |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 37 |
Statements of Assets and Liabilities (concluded)
December 31, 2011 (Unaudited) | BlackRock Short-Term Municipal Fund | BlackRock National Municipal Fund | BlackRock High Yield Municipal Fund | BlackRock New York Municipal Bond Fund | ||||||||||||
Net Asset Value (concluded) | ||||||||||||||||
Institutional: | ||||||||||||||||
Net assets | $ | 638,147,161 | $ | 1,786,023,849 | $ | 132,989,222 | $ | 25,567,424 | ||||||||
Shares outstanding, $0.10 par value | 62,709,817 | 170,218,100 | 15,300,033 | 2,410,564 | ||||||||||||
Net asset value | $ | 10.18 | $ | 10.49 | $ | 8.69 | $ | 10.61 | ||||||||
Par value | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | ||||||||
Shares authorized | 150 Million | 375 Million | 100 Million | Unlimited | ||||||||||||
Service: | ||||||||||||||||
Net assets | — | $ | 6,980,678 | — | — | |||||||||||
Shares outstanding, $0.10 par value | — | 664,981 | — | — | ||||||||||||
Net asset value | — | $ | 10.50 | — | — | |||||||||||
Par value | — | $ | 0.10 | — | — | |||||||||||
Shares authorized | — | 375 Million | — | — | ||||||||||||
Investor A: | ||||||||||||||||
Net assets | $ | 220,670,560 | $ | 1,341,936,039 | $ | 44,378,229 | $ | 40,681,698 | ||||||||
Shares outstanding, $0.10 par value | 21,672,119 | 127,829,753 | 5,116,942 | 3,832,379 | ||||||||||||
Net asset value | $ | 10.18 | $ | 10.50 | $ | 8.67 | $ | 10.62 | ||||||||
Par value | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | ||||||||
Shares authorized | 150 Million | 375 Million | 100 Million | Unlimited | ||||||||||||
Investor A1: | ||||||||||||||||
Net assets | $ | 52,078,892 | — | — | $ | 152,205,539 | ||||||||||
Shares outstanding, $0.10 par value | 5,113,593 | — | — | 14,340,077 | ||||||||||||
Net asset value | $ | 10.18 | — | — | $ | 10.61 | ||||||||||
Par value | $ | 0.10 | — | — | $ | 0.10 | ||||||||||
Shares authorized | 150 Million | — | — | Unlimited | ||||||||||||
Investor B: | ||||||||||||||||
Net assets | $ | 3,464,880 | $ | 33,888,100 | — | $ | 4,466,176 | |||||||||
Shares outstanding, $0.10 par value | 340,447 | 3,230,879 | — | 420,942 | ||||||||||||
Net asset value | $ | 10.18 | $ | 10.49 | — | $ | 10.61 | |||||||||
Par value | $ | 0.10 | $ | 0.10 | — | $ | 0.10 | |||||||||
Shares authorized | 150 Million | 375 Million | — | Unlimited | ||||||||||||
Investor B1: | ||||||||||||||||
Net assets | — | $ | 519,694 | — | — | |||||||||||
Shares outstanding, $0.10 par value | — | 49,547 | — | — | ||||||||||||
Net asset value | — | $ | 10.49 | — | — | |||||||||||
Par value | — | $ | 0.10 | — | — | |||||||||||
Shares authorized | — | 375 Million | — | — | ||||||||||||
Investor C: | ||||||||||||||||
Net assets | $ | 80,067,410 | $ | 409,294,131 | $ | 21,756,241 | $ | 20,229,976 | ||||||||
Shares outstanding, $0.10 par value | 7,865,434 | 38,983,922 | 2,502,264 | 1,906,593 | ||||||||||||
Net asset value | $ | 10.18 | $ | 10.50 | $ | 8.69 | $ | 10.61 | ||||||||
Par value | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | ||||||||
Shares authorized | 150 Million | 375 Million | 100 Million | Unlimited | ||||||||||||
Investor C1: | ||||||||||||||||
Net assets | — | $ | 99,891,308 | — | $ | 10,978,671 | ||||||||||
Shares outstanding, $0.10 par value | — | 9,518,469 | — | 1,034,460 | ||||||||||||
Net asset value | — | $ | 10.49 | — | $ | 10.61 | ||||||||||
Par value | — | $ | 0.10 | — | $ | 0.10 | ||||||||||
Shares authorized | — | 375 Million | — | Unlimited |
See Notes to Financial Statements.
38 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Six Months Ended December 31, 2011 (Unaudited) | BlackRock Short-Term Municipal Fund | BlackRock National Municipal Fund | BlackRock High Yield Municipal Fund | BlackRock New York Municipal Bond Fund | |||||||||||
Investment Income | |||||||||||||||
Interest | $ | 6,605,640 | $ | 97,175,765 | $ | 5,409,692 | $ | 6,732,054 | |||||||
Income – affiliated | 547 | 14,846 | 373 | — | |||||||||||
Total income | 6,606,187 | 97,190,611 | 5,410,065 | 6,732,054 | |||||||||||
Expenses | |||||||||||||||
Investment advisory | 1,709,940 | 8,953,738 | 472,772 | 693,027 | |||||||||||
Distribution – Service | — | 8,952 | — | — | |||||||||||
Service – Investor A | 274,732 | 1,489,283 | 39,216 | 47,525 | |||||||||||
Service – Investor A1 | 26,392 | — | — | 76,661 | |||||||||||
Service and distribution – Investor B | 8,070 | 138,630 | — | 12,570 | |||||||||||
Service and distribution – Investor B1 | — | 704 | — | — | |||||||||||
Service and distribution – Investor C | 413,999 | 1,863,844 | 97,347 | 93,387 | |||||||||||
Service and Distribution – Investor C1 | — | 394,966 | — | 32,693 | |||||||||||
Transfer agent – BlackRock | 184 | 75,902 | — | — | |||||||||||
Transfer agent – Institutional | 315,860 | 794,099 | 10,828 | 9,543 | |||||||||||
Transfer agent – Service | — | 167 | — | — | |||||||||||
Transfer agent – Investor A | 33,754 | 352,244 | 4,962 | 20,000 | |||||||||||
Transfer agent – Investor A1 | 14,096 | — | — | 37,841 | |||||||||||
Transfer agent – Investor B | 2,403 | 22,948 | — | 2,470 | |||||||||||
Transfer agent – Investor B1 | — | 502 | — | — | |||||||||||
Transfer agent – Investor C | 24,976 | 117,094 | 5,519 | 3,911 | |||||||||||
Transfer agent – Investor C1 | — | 24,598 | — | 2,351 | |||||||||||
Accounting services | 117,513 | 265,802 | 29,748 | 37,731 | |||||||||||
Registration | 55,369 | 97,037 | 30,833 | 34,948 | |||||||||||
Professional | 27,669 | 61,029 | 23,104 | 43,570 | |||||||||||
Custodian | 29,037 | 91,726 | 8,279 | 8,959 | |||||||||||
Printing | 45,188 | 60,393 | 3,815 | 16,883 | |||||||||||
Officer and Directors | 19,867 | 32,357 | 9,839 | 11,174 | |||||||||||
Reorganization | — | 11,664 | — | — | |||||||||||
Miscellaneous | 26,894 | 38,743 | 8,337 | 17,491 | |||||||||||
Total expenses excluding interest expense and fees | 3,145,943 | 14,896,422 | 744,599 | 1,202,735 | |||||||||||
Interest expense and fees1 | — | 1,537,737 | 65,370 | 20,694 | |||||||||||
Total expenses | 3,145,943 | 16,434,159 | 809,969 | 1,223,429 | |||||||||||
Less fees waived by advisor | (3,010 | ) | (882,974 | ) | (2,031 | ) | (2,360 | ) | |||||||
Less transfer agent fees waived and/or reimbursed – class specific | (301,288 | ) | (472,530 | ) | — | — | |||||||||
Total expenses after fees waived and/or reimbursed | 2,841,645 | 15,078,655 | 807,938 | 1,221,069 | |||||||||||
Net investment income | 3,764,542 | 82,111,956 | 4,602,127 | 5,510,985 | |||||||||||
Realized and Unrealized Gain (Loss) | |||||||||||||||
Net realized gain (loss) from: | |||||||||||||||
Net realized gain (loss) from investments | 337,929 | 8,859,894 | (437,516 | ) | (2,046,956 | ) | |||||||||
Financial futures contracts | — | 528,513 | (257,216 | ) | (457,657 | ) | |||||||||
337,929 | 9,388,407 | (694,732 | ) | (2,504,613 | ) | ||||||||||
Net change in unrealized appreciation/depreciation on: | |||||||||||||||
Investments | 350,474 | 147,555,944 | 7,789,995 | 8,454,272 | |||||||||||
Financial futures contracts | — | (313,450 | ) | (34,335 | ) | (101,934 | ) | ||||||||
350,474 | 147,242,494 | 7,755,660 | 8,352,338 | ||||||||||||
Total realized and unrealized gain | 688,403 | 156,630,901 | 7,060,928 | 5,847,725 | |||||||||||
Net Increase in Net Assets Resulting from Operations | $ | 4,452,945 | $ | 238,742,857 | $ | 11,663,055 | $ | 11,358,710 | |||||||
1 Related to TOBs. |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 39 |
Statements of Changes in Net Assets | BlackRock Short-Term Municipal Fund |
Increase (Decrease) in Net Assets: | Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, 2011 | ||||
Operations | ||||||
Net investment income | $ | 3,764,542 | $ | 11,814,258 | ||
Net realized gain | 337,929 | 733,958 | ||||
Net change in unrealized appreciation/depreciation | 350,474 | (1,618,994 | ) | |||
Net increase in net assets resulting from operations | 4,452,945 | 10,929,222 | ||||
Dividends to Shareholders From | ||||||
Net investment income: | ||||||
BlackRock | (280,334 | ) | (296,867 | ) | ||
Institutional | (3,368,370 | ) | (7,987,166 | ) | ||
Investor A | (887,240 | ) | (2,574,837 | ) | ||
Investor A1 | (254,080 | ) | (671,515 | ) | ||
Investor B | (15,435 | ) | (59,313 | ) | ||
Investor C | (8,150 | ) | (224,914 | ) | ||
Decrease in net assets resulting from dividends to shareholders | (4,813,609 | ) | (11,814,612 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets derived from capital share transactions | 44,754,832 | (120,319,787 | ) | |||
Net Assets | ||||||
Total increase (decrease) in net assets | 44,394,168 | (121,205,177 | ) | |||
Beginning of period | 1,014,268,535 | 1,135,473,712 | ||||
End of period | $ | 1,058,662,703 | $ | 1,014,268,535 | ||
Undistributed net investment income (loss) | $ | (565,108 | ) | $ | 483,959 |
See Notes to Financial Statements.
40 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Statements of Changes in Net Assets | BlackRock National Municipal Fund |
Increase (Decrease) in Net Assets: | Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, 2011 | ||||
Operations | ||||||
Net investment income | $ | 82,111,956 | $ | 112,055,270 | ||
Net realized gain (loss) | 9,388,407 | (20,239,419 | ) | |||
Net change in unrealized appreciation/depreciation | 147,242,494 | (22,336,758 | ) | |||
Net increase in net assets resulting from operations | 238,742,857 | 69,479,093 | ||||
Dividends to Shareholders From | ||||||
Net investment income: | ||||||
BlackRock | (9,329,163 | ) | — | |||
Institutional | (37,154,647 | ) | (57,025,147 | ) | ||
Service | (155,200 | ) | — | |||
Investor A | (25,891,874 | ) | (38,918,106 | ) | ||
Investor B | (708,341 | ) | (1,562,654 | ) | ||
Investor B1 | (11,699 | ) | — | |||
Investor C | (6,688,320 | ) | (11,251,949 | ) | ||
Investor C1 | (1,866,114 | ) | (3,251,474 | ) | ||
Decrease in net assets resulting from dividends to shareholders | (81,805,358 | ) | (112,009,330 | ) | ||
Capital Share Transactions | ||||||
Net increase in net assets derived from capital share transactions | 1,516,960,952 | 140,450,808 | ||||
Net Assets | ||||||
Total increase in net assets | 1,673,898,451 | 97,920,571 | ||||
Beginning of period | 2,448,021,384 | 2,350,100,813 | ||||
End of period | $ | 4,121,919,835 | $ | 2,448,021,384 | ||
Undistributed net investment income | $ | 2,134,435 | $ | 1,888,807 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 41 |
Statements of Changes in Net Assets | BlackRock High Yield Municipal Fund |
Increase (Decrease) in Net Assets: | Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, 2011 | ||||
Operations | ||||||
Net investment income | $ | 4,602,127 | $ | 8,137,725 | ||
Net realized loss | (694,732 | ) | (3,380,274 | ) | ||
Net change in unrealized appreciation/depreciation | 7,755,660 | 1,092,810 | ||||
Net increase in net assets resulting from operations | 11,663,055 | 5,850,261 | ||||
Dividends to Shareholders From | ||||||
Net investment income: | ||||||
Institutional | (3,291,245 | ) | (5,823,873 | ) | ||
Investor A | (812,579 | ) | (1,388,936 | ) | ||
Investor C | (427,074 | ) | (752,102 | ) | ||
Decrease in net assets resulting from dividends and distributions to shareholders | (4,530,898 | ) | (7,964,911 | ) | ||
Capital Share Transactions | ||||||
Net increase in net assets derived from capital share transactions | 34,384,111 | 25,911,196 | ||||
Net Assets | ||||||
Total increase in net assets | 41,516,268 | 23,796,546 | ||||
Beginning of period | 157,607,424 | 133,810,878 | ||||
End of period | $ | 199,123,692 | $ | 157,607,424 | ||
Undistributed net investment income | $ | 385,270 | $ | 314,041 |
See Notes to Financial Statements.
42 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Statements of Changes in Net Assets | BlackRock New York Municipal Bond Fund |
Increase (Decrease) in Net Assets: | Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, 2011 | ||||
Operations | ||||||
Net investment income | $ | 5,510,985 | $ | 11,696,840 | ||
Net realized loss | (2,504,613 | ) | (1,096,931 | ) | ||
Net change in unrealized appreciation/depreciation | 8,352,338 | (4,209,627 | ) | |||
Net increase in net assets resulting from operations | 11,358,710 | 6,390,282 | ||||
Dividends to Shareholders From | ||||||
Net investment income: | ||||||
Institutional | (603,715 | ) | (1,205,096 | ) | ||
Investor A | (824,342 | ) | (1,709,124 | ) | ||
Investor A1 | (3,482,434 | ) | (7,233,004 | ) | ||
Investor B | (102,750 | ) | (338,853 | ) | ||
Investor C | (340,096 | ) | (666,985 | ) | ||
Investor C1 | (220,343 | ) | (474,356 | ) | ||
Decrease in net assets resulting from dividends and distributions to shareholders | (5,573,680 | ) | (11,627,418 | ) | ||
Capital Share Transactions | ||||||
Net increase (decrease) in net assets derived from capital share transactions | 1,577,955 | (11,511,267 | ) | |||
Net Assets | ||||||
Total increase (decrease) in net assets | 7,362,985 | (16,748,403 | ) | |||
Beginning of period | 246,766,499 | 263,514,902 | ||||
End of period | $ | 254,129,484 | $ | 246,766,499 | ||
Undistributed net investment income | $ | 736,854 | $ | 799,549 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 43 |
Six Months Ended December 31, 2011 (Unaudited) | BlackRock National Municipal Fund | ||
Cash Used for Operating Activities | |||
Net increase in net assets resulting from operations | $ | 275,351,932 | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash used for operating activities: | |||
Increase in interest receivable | (13,281,798 | ) | |
Decrease in prepaid expenses | 81,537 | ||
Increase in service and distribution fees payable | 205,377 | ||
Increase in investment advisory fees payable | 318,569 | ||
Increase in interest expense payable | 7,624 | ||
Decrease in other affiliates payable | (131,975 | ) | |
Decrease in other accrued expenses payable | (1,491,125 | ) | |
Increase in margin variation payable | 140,625 | ||
Decrease in cash pledged as collateral for financial futures contracts | (570,000 | ) | |
Decrease in reorganization costs | (100,952 | ) | |
Increase in other liabilities | 4,765,281 | ||
Increase in Officer's and Directors' fees payable | 44,525 | ||
Net realized and unrealized loss on investments | (193,024,914 | ) | |
Amortization of premium and accretion of discount on investments | 5,573,956 | ||
Proceeds from sales of long-term investments | 787,767,970 | ||
Purchases of long-term investments | (1,034,485,977 | ) | |
Net proceeds from purchases of short-term securities | (122,283,467 | ) | |
Cash used for operating activities | $ | (291,112,812 | ) |
Cash Provided by Financing Activities | |||
Proceeds from issuance of Capital shares | $ | 634,842,715 | |
Cash payments on Capital shares | (336,405,579 | ) | |
Cash receipts from borrowings | 36,928,287 | ||
Cash payments from borrowings | (10,525,000 | ) | |
Cash dividends paid to Capital Shareholders | (34,491,820 | ) | |
Increase in bank overdraft | 759,986 | ||
Cash provided by financing activities | $ | 291,108,589 | |
Cash | |||
Net increase (decrease) in cash | $ | (4,223 | ) |
Cash at beginning of period | 4,223 | ||
Cash at end of period | — | ||
Cash Flow Information | |||
Cash paid during the period for interest and fees | $ | 1,748,706 | |
Noncash Financing Activities | |||
Capital shares issued in reinvestment of dividends paid to Shareholders | $ | 45,339,510 |
A Statement of Cash Flows is presented when a Fund had a significant amount of borrowings during the period, based on the average borrowings outstanding in relation to total assets.
44 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights | BlackRock Short-Term Municipal Fund |
BlackRock | |||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period October 2, 20061 to June 30, 2007 | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||
Net asset value, beginning of period | $ | 10.18 | $ | 10.19 | $ | 10.14 | $ | 9.98 | $ | 9.89 | $ | 9.93 | |||||||||
Net investment income2 | 0.04 | 0.12 | 0.15 | 0.26 | 0.33 | 0.25 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.02 | (0.00 | )3 | 0.06 | 0.17 | 0.09 | (0.04 | ) | |||||||||||||
Net increase from investment operations | 0.06 | 0.12 | 0.21 | 0.43 | 0.42 | 0.21 | |||||||||||||||
Dividends from net investment income | (0.06 | ) | (0.13 | ) | (0.16 | ) | (0.27 | ) | (0.33 | ) | (0.25 | ) | |||||||||
Net asset value, end of period | $ | 10.18 | $ | 10.18 | $ | 10.19 | $ | 10.14 | $ | 9.98 | $ | 9.89 | |||||||||
Total Investment Return4 | |||||||||||||||||||||
Based on net asset value | 0.54 | %5 | 1.17 | % | 2.04 | % | 4.36 | % | 4.26 | % | 2.09 | %6 | |||||||||
Ratios to Average Net Assets | |||||||||||||||||||||
Total expenses | 0.39 | %6 | 0.40 | % | 0.41 | % | 0.45 | % | 0.42 | % | 0.45 | %6 | |||||||||
Total expenses after fees waived and paid indirectly | 0.39 | %6 | 0.39 | % | 0.40 | % | 0.44 | % | 0.39 | % | 0.35 | %6 | |||||||||
Net investment income | 0.85 | %6 | 1.25 | % | 1.42 | % | 2.65 | % | 3.28 | % | 3.34 | %6 | |||||||||
Supplemental Data | |||||||||||||||||||||
Net assets, end of period (000) | $ | 64,234 | $ | 43,941 | $ | 17,244 | $ | 2,424 | $ | 1,822 | $ | 2,457 | |||||||||
Portfolio turnover | 26 | % | 44 | % | 36 | % | 21 | % | 33 | % | 110 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Amount is less than $(0.01) per share. |
4 | Where applicable, total investment returns include the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Annualized. |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 45 |
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund |
Institutional | ||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of period | $ | 10.18 | $ | 10.18 | $ | 10.13 | $ | 9.97 | $ | 9.88 | $ | 9.88 | ||||||||
Net investment income1 | 0.05 | 0.13 | 0.15 | 0.27 | 0.33 | 0.32 | ||||||||||||||
Net realized and unrealized gain (loss) | 0.00 | 2 | (0.00 | )3 | 0.06 | 0.17 | 0.09 | 0.00 | 2 | |||||||||||
Net increase from investment operations | 0.05 | 0.13 | 0.21 | 0.44 | 0.42 | 0.32 | ||||||||||||||
Dividends from net investment income | (0.05 | ) | (0.13 | ) | (0.16 | ) | (0.28 | ) | (0.33 | ) | (0.32 | ) | ||||||||
Net asset value, end of period | $ | 10.18 | $ | 10.18 | $ | 10.18 | $ | 10.13 | $ | 9.97 | $ | 9.88 | ||||||||
Total Investment Return4 | ||||||||||||||||||||
Based on net asset value | 0.54 | %5 | 1.27 | % | 2.04 | % | 4.45 | % | 4.31 | % | 3.32 | % | ||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.50 | %6 | 0.49 | % | 0.48 | % | 0.47 | % | 0.49 | % | 0.48 | % | ||||||||
Total expenses after fees waived and paid indirectly | 0.40 | %6 | 0.40 | % | 0.40 | % | 0.35 | % | 0.35 | % | 0.38 | % | ||||||||
Net investment income | 0.88 | %6 | 1.26 | % | 1.50 | % | 2.68 | % | 3.30 | % | 3.27 | % | ||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 638,147 | $ | 603,837 | $ | 628,194 | $ | 403,143 | $ | 181,624 | $ | 131,061 | ||||||||
Portfolio turnover | 26 | % | 44 | % | 36 | % | 21 | % | 33 | % | 110 | % |
1 | Based on average shares outstanding. |
2 | Amount is less than $0.01 per share. |
3 | Amount is less than $(0.01) per share. |
4 | 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. |
See Notes to Financial Statements.
46 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund |
Investor A | |||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period October 2, 20061 to June 30, 2007 | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||
Net asset value, beginning of period | $ | 10.19 | $ | 10.19 | $ | 10.13 | $ | 9.98 | $ | 9.88 |
| $ | 9.93 | ||||||||
Net investment income2 | 0.03 | 0.10 | 0.12 | 0.21 | 0.30 | 0.23 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.00 | 3 | (0.00 | )4 | 0.07 | 0.19 | 0.11 | (0.05 | ) | ||||||||||||
Net increase from investment operations | 0.03 | 0.10 | 0.19 | 0.40 | 0.41 | 0.18 | |||||||||||||||
Dividends from net investment income | (0.04 | ) | (0.10 | ) | (0.13 | ) | (0.25 | ) | (0.31 | ) | (0.23 | ) | |||||||||
Net asset value, end of period | $ | 10.18 | $ | 10.19 | $ | 10.19 | $ | 10.13 | $ | 9.98 | $ | 9.88 | |||||||||
Total Investment Return5 | |||||||||||||||||||||
Based on net asset value | 0.30 | %6 | 0.99 | % | 1.86 | % | 4.08 | % | 4.15 | % | 1.79 | %6 | |||||||||
Ratios to Average Net Assets | |||||||||||||||||||||
Total expenses | 0.67 | %7 | 0.67 | % | 0.68 | % | 0.72 | % | 0.79 | % | 1.06 | %7 | |||||||||
Total expenses after fees waived and paid indirectly | 0.67 | %7 | 0.67 | % | 0.67 | % | 0.60 | % | 0.60 | % | 0.61 | %7 | |||||||||
Net investment income | 0.60 | %7 | 1.00 | % | 1.20 | % | 2.26 | % | 3.03 | % | 3.12 | %7 | |||||||||
Supplemental Data | |||||||||||||||||||||
Net assets, end of period (000) | $ | 220,671 | $ | 221,827 | $ | 297,336 | $ | 121,355 | $ | 9,403 | $ | 1,456 | |||||||||
Portfolio turnover | 26 | % | 44 | % | 36 | % | 21 | % | 33 | % | 110 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Amount is less than $0.01 per share. |
4 | Amount is less than $(0.01) per share. |
5 | Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
6 | Aggregate total investment return. |
7 | Annualized. |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 47 |
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund |
Investor A1 | ||||||||||||||||||||
| Six Months Ended December 31, 2011 | Year Ended June 30, | ||||||||||||||||||
(Unaudited) | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of period | $ | 10.19 | $ | 10.19 | $ | 10.14 | $ | 9.98 | $ | 9.89 | $ | 9.89 | ||||||||
Net investment income1 | 0.04 | 0.12 | 0.14 | 0.27 | 0.32 | 0.32 | ||||||||||||||
Net realized and unrealized gain (loss) | 0.00 | 2 | (0.00 | )3 | 0.05 | 0.16 | 0.09 | (0.01 | ) | |||||||||||
Net increase from investment operations | 0.04 | 0.12 | 0.19 | 0.43 | 0.41 | 0.31 | ||||||||||||||
Dividends from net investment income | (0.05 | ) | (0.12 | ) | (0.14 | ) | (0.27 | ) | (0.32 | ) | (0.31 | ) | ||||||||
Net asset value, end of period | $ | 10.18 | $ | 10.19 | $ | 10.19 | $ | 10.14 | $ | 9.98 | $ | 9.89 | ||||||||
Total Investment Return4 | ||||||||||||||||||||
Based on net asset value | 0.38 | %5 | 1.14 | % | 1.91 | % | 4.34 | % | 4.20 | % | 3.21 | % | ||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.55 | %6 | 0.54 | % | 0.55 | % | 0.58 | % | 0.59 | % | 0.58 | % | ||||||||
Total expenses after fees waived and paid indirectly | 0.52 | %6 | 0.52 | % | 0.52 | % | 0.45 | % | 0.45 | % | 0.48 | % | ||||||||
Net investment income | 0.76 | %6 | 1.14 | % | 1.41 | % | 2.70 | % | 3.22 | % | 3.18 | % | ||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 52,079 | $ | 53,141 | $ | 66,404 | $ | 78,606 | $ | 105,580 | $ | 122,281 | ||||||||
Portfolio turnover | 26 | % | 44 | % | 36 | % | 21 | % | 33 | % | 110 | % |
1 | Based on average shares outstanding. |
2 | Amount is less than $0.01 per share. |
3 | Amount is less than $(0.01) per share. |
4 | 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. |
See Notes to Financial Statements.
48 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund |
Investor B | ||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of period | $ | 10.18 |
| $ | 10.18 | $ | 10.13 | $ | 9.97 | $ | 9.88 | $ | 9.88 | |||||||
Net investment income1 | 0.02 | 0.09 | 0.11 | 0.24 | 0.30 | 0.29 | ||||||||||||||
Net realized and unrealized gain (loss) | 0.01 | (0.00 | )2 | 0.05 | 0.16 | 0.08 | (0.00 | )2 | ||||||||||||
Net increase from investment operations | 0.03 | 0.09 | 0.16 | 0.40 | 0.38 | 0.29 | ||||||||||||||
Dividends from net investment income | (0.03 | ) | (0.09 | ) | (0.11 | ) | (0.24 | ) | (0.29 | ) | (0.29 | ) | ||||||||
Net asset value, end of period | $ | 10.18 | $ | 10.18 | $ | 10.18 | $ | 10.13 | $ | 9.97 | $ | 9.88 | ||||||||
Total Investment Return3 | ||||||||||||||||||||
Based on net asset value | 0.33 | %4 | 0.85 | % | 1.62 | % | 4.08 | % | 3.94 | % | 2.95 | % | ||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.85 | %5 | 0.82 | % | 0.82 | % | 0.85 | % | 0.85 | % | 0.85 | % | ||||||||
Total expenses after fees waived and paid indirectly | 0.81 | %5 | 0.81 | % | 0.81 | % | 0.70 | % | 0.70 | % | 0.74 | % | ||||||||
Net investment income | 0.48 | %5 | 0.86 | % | 1.13 | % | 2.41 | % | 2.97 | % | 2.90 | % | ||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 3,465 | $ | 5,258 | $ | 8,503 | $ | 9,917 | $ | 10,612 | $ | 14,380 | ||||||||
Portfolio turnover | 26 | % | 44 | % | 36 | % | 21 | % | 33 | % | 110 | % |
1 | Based on average shares outstanding. |
2 | Amount is less than $(0.01) per share. |
3 | 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. |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 49 |
Financial Highlights (concluded) | BlackRock Short-Term Municipal Fund |
Investor C | |||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period October 31, 20061 to June 30, 2007 | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||
Net asset value, beginning of period | $ | 10.18 | $ | 10.18 | $ | 10.13 | $ | 9.97 | $ | 9.88 | $ | 9.93 | |||||||||
Net investment income (loss)2 | (0.01 | ) | 0.02 | 0.05 | 0.15 | 0.23 | 0.17 | ||||||||||||||
Net realized and unrealized gain (loss) | 0.01 | (0.00 | )3 | 0.05 | 0.19 | 0.09 | (0.05 | ) | |||||||||||||
Net increase from investment operations | 0.00 | 0.02 | 0.10 | 0.34 | 0.32 | 0.12 | |||||||||||||||
Dividends from net investment income | (0.00 | )3 | (0.02 | ) | (0.05 | ) | (0.18 | ) | (0.23 | ) | (0.17 | ) | |||||||||
Net asset value, end of period | $ | 10.18 | $ | 10.18 | $ | 10.18 | $ | 10.13 | $ | 9.97 | $ | 9.88 | |||||||||
Total Investment Return4 | |||||||||||||||||||||
Based on net asset value | 0.01 | %5 | 0.21 | % | 0.97 | % | 3.41 | % | 3.27 | % | 1.23 | %5 | |||||||||
Ratios to Average Net Assets | |||||||||||||||||||||
Total expenses | 1.45 | %6 | 1.45 | % | 1.46 | % | 1.52 | % | 1.78 | % | 2.06 | %6 | |||||||||
Total expenses after fees waived and paid indirectly | 1.45 | %6 | 1.45 | % | 1.45 | % | 1.35 | % | 1.35 | % | 1.36 | %6 | |||||||||
Net investment income (loss) | (0.17 | )%6 | 0.22 | % | 0.44 | % | 1.56 | % | 2.28 | % | 2.37 | %6 | |||||||||
Supplemental Data | |||||||||||||||||||||
Net assets, end of period (000) | $ | 80,067 | $ | 86,264 | $ | 117,792 | $ | 69,632 | $ | 7,365 | $ | 2,084 | |||||||||
Portfolio turnover | 26 | % | 44 | % | 36 | % | 21 | % | 33 | % | 110 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Amount is less than $(0.01) per share. |
4 | 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. |
See Notes to Financial Statements.
50 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights | BlackRock National Municipal Fund |
BlackRock | |||
July 18, 20111 to December 31, 2011 (Unaudited) | |||
Per Share Operating Performance | |||
Net asset value, beginning of period | $ | 10.11 | |
Net investment income2 | 0.22 | ||
Net realized and unrealized gain | 0.37 | ||
Net increase from investment operations | 0.59 | ||
Dividends from net investment income | (0.21 | ) | |
Net asset value, end of period | $ | 10.49 | |
Total Investment Return3 | |||
Based on net asset value | 5.92 | %4 | |
Ratios to Average Net Assets | |||
Total expenses | 0.64 | %5 | |
Total expenses after fees waived and paid indirectly | 0.55 | %5 | |
Total expenses after fees waived and paid indirectly and excluding interest expense and fees6 | 0.46 | %5 | |
Net investment income | 4.60 | %5 | |
Supplemental Data | |||
Net assets, end of period (000) | $ | 443,386 | |
Portfolio turnover | 21 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Where applicable, total investment returns include the reinvestment of dividends and distributions. |
4 | Aggregate total investment return. |
5 | Annualized. |
6 | Interest expense and fees relate to TOBs. 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 | DECEMBER 31, 2011 | 51 |
Financial Highlights (continued) | BlackRock National Municipal Fund |
Institutional | ||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of period | $ | 10.05 | $ | 10.19 | $ | 9.61 | $ | 9.95 | $ | 10.39 | $ | 10.36 | ||||||||
Net investment income1 | 0.24 | 0.49 | 0.48 | 0.48 | 0.48 | 0.49 | ||||||||||||||
Net realized and unrealized gain (loss) | 0.43 | (0.14 | ) | 0.57 | (0.35 | ) | (0.44 | ) | 0.05 | |||||||||||
Net increase from investment operations | 0.67 | 0.35 | 1.05 | 0.13 | 0.04 | 0.54 | ||||||||||||||
Dividends from net investment income | (0.23 | ) | (0.49 | ) | (0.47 | ) | (0.47 | ) | (0.48 | ) | (0.51 | ) | ||||||||
Net asset value, end of period | $ | 10.49 | $ | 10.05 | $ | 10.19 | $ | 9.61 | $ | 9.95 | $ | 10.39 | ||||||||
Total Investment Return2 | ||||||||||||||||||||
Based on net asset value | 6.75 | %3 | 3.49 | % | 11.16 | % | 1.56 | % | 0.35 | % | 5.06 | % | ||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.69 | %4 | 0.69 | % | 0.62 | % | 0.67 | % | 0.79 | % | 1.00 | % | ||||||||
Total expenses after fees waived and paid indirectly | 0.64 | %4 | 0.69 | % | 0.62 | % | 0.65 | % | 0.78 | % | 0.99 | % | ||||||||
Total expenses after fees waived and paid indirectly and | ||||||||||||||||||||
excluding interest expense and fees5 | 0.56 | %4 | 0.60 | % | 0.59 | % | 0.60 | % | 0.60 | % | 0.59 | % | ||||||||
Net investment income | 4.53 | %4 | 4.83 | % | 4.76 | % | 5.10 | % | 4.69 | % | 4.66 | % | ||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 1,786,024 | $ | 1,207,501 | $ | 1,103,381 | $ | 934,807 | $ | 977,642 | $ | 976,153 | ||||||||
Portfolio turnover | 21 | % | 51 | % | 70 | % | 65 | % | 61 | % | 46 | % |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
52 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights (continued) | BlackRock National Municipal Fund |
Service | |||
July 18, 20111 to December 31, 2011 (Unaudited) | |||
Per Share Operating Performance | |||
Net asset value, beginning of period | $ | 10.11 | |
Net investment income2 | 0.21 | ||
Net realized and unrealized gain | 0.38 | ||
Net increase from investment operations | 0.59 | ||
Dividends from net investment income | (0.20 | ) | |
Net asset value, end of period | $ | 10.50 | |
Total Investment Return3 | |||
Based on net asset value | 5.90 | %4 | |
Ratios to Average Net Assets | |||
Total expenses | 0.85 | %5 | |
Total expenses after fees waived and paid indirectly | 0.80 | %5 | |
Total expenses after fees waived and paid indirectly and excluding interest expense and fees6 | 0.72 | %5 | |
Net investment income | 4.35 | %5 | |
Supplemental Data | |||
Net assets, end of period (000) | $ | 6,981 | |
Portfolio turnover | 21 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Where applicable, total investment returns include the reinvestment of dividends and distributions. |
4 | Aggregate total investment return. |
5 | Annualized. |
6 | Interest expense and fees relate to TOBs. 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 | DECEMBER 31, 2011 | 53 |
Financial Highlights (continued) | BlackRock National Municipal Fund |
Investor A | ||||||||||||||||||||
Six Months | Year Ended June 30, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of period | $ | 10.06 | $ | 10.19 | $ | 9.62 | $ | 9.96 | $ | 10.39 | $ | 10.37 | ||||||||
Net investment income1 | 0.23 | 0.46 | 0.45 | 0.46 | 0.45 | 0.46 | ||||||||||||||
Net realized and unrealized gain (loss) | 0.43 | (0.13 | ) | 0.57 | (0.35 | ) | (0.43 | ) | 0.03 | |||||||||||
Net increase from investment operations | 0.66 | 0.33 | 1.02 | 0.11 | 0.02 | 0.49 | ||||||||||||||
Dividends from net investment income | (0.22 | ) | (0.46 | ) | (0.45 | ) | (0.45 | ) | (0.45 | ) | (0.47 | ) | ||||||||
Net asset value, end of period | $ | 10.50 | $ | 10.06 | $ | 10.19 | $ | 9.62 | $ | 9.96 | $ | 10.39 | ||||||||
Total Investment Return2 | ||||||||||||||||||||
Based on net asset value | 6.65 | %3 | 3.36 | % | 10.77 | % | 1.32 | % | 0.22 | % | 4.71 | % | ||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 0.90 | %4 | 0.92 | % | 0.87 | % | 0.91 | % | 1.02 | % | 1.24 | % | ||||||||
Total expenses after fees waived and paid indirectly | 0.81 | %4 | 0.92 | % | 0.87 | % | 0.90 | % | 1.01 | % | 1.24 | % | ||||||||
Total expenses after fees waived and paid indirectly and | ||||||||||||||||||||
excluding interest expense and fees5 | 0.73 | %4 | 0.83 | % | 0.84 | % | 0.84 | % | 0.82 | % | 0.84 | % | ||||||||
Net investment income | 4.36 | %4 | 4.60 | % | 4.52 | % | 4.87 | % | 4.46 | % | 4.43 | % | ||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 1,341,936 | $ | 855,849 | $ | 820,009 | $ | 635,090 | $ | 472,018 | $ | 349,225 | ||||||||
Portfolio turnover | 21 | % | 51 | % | 70 | % | 65 | % | 61 | % | 46 | % |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
54 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights (continued) | BlackRock National Municipal Fund |
Investor B | ||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of period | $ | 10.05 | $ | 10.18 | $ | 9.61 | $ | 9.95 | $ | 10.38 | $ | 10.36 | ||||||||
Net investment income1 | 0.20 | 0.41 | 0.40 | 0.41 | 0.40 | 0.41 | ||||||||||||||
Net realized and unrealized gain (loss) | 0.44 | (0.12 | ) | 0.57 | (0.35 | ) | (0.43 | ) | 0.02 | |||||||||||
Net increase (decrease) from investment operations | 0.64 | 0.29 | 0.97 | 0.06 | (0.03 | ) | 0.43 | |||||||||||||
Dividends from net investment income | (0.20 | ) | (0.42 | ) | (0.40 | ) | (0.40 | ) | (0.40 | ) | (0.41 | ) | ||||||||
Net asset value, end of period | $ | 10.49 | $ | 10.05 | $ | 10.18 | $ | 9.61 | $ | 9.95 | $ | 10.38 | ||||||||
Total Investment Return2 | ||||||||||||||||||||
Based on net asset value | 6.38 | %3 | 2.89 | % | 10.21 | % | 0.79 | % | (0.30 | )% | 4.18 | % | ||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 1.47 | %4 | 1.44 | % | 1.39 | % | 1.43 | % | 1.54 | % | 1.75 | % | ||||||||
Total expenses after fees waived and paid indirectly | 1.32 | %4 | 1.38 | % | 1.38 | % | 1.41 | % | 1.53 | % | 1.75 | % | ||||||||
Total expenses after fees waived and paid indirectly and | ||||||||||||||||||||
excluding interest expense and fees5 | 1.24 | %4 | 1.30 | % | 1.36 | % | 1.36 | % | 1.35 | % | 1.34 | % | ||||||||
Net investment income | 3.85 | %4 | 4.10 | % | 3.99 | % | 4.35 | % | 3.94 | % | 3.92 | % | ||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 33,888 | $ | 30,346 | $ | 46,152 | $ | 58,079 | $ | 69,859 | $ | 101,260 | ||||||||
Portfolio turnover | 21 | % | 51 | % | 70 | % | 65 | % | 61 | % | 46 | % |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to TOBs. 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 | DECEMBER 31, 2011 | 55 |
Financial Highlights (continued) | BlackRock National Municipal Fund |
Investor B1 | |||
July 18, 20111 to December 31, 2011 (Unaudited) | |||
Per Share Operating Performance | |||
Net asset value, beginning of period | $ | 10.11 | |
Net investment income2 | 0.20 | ||
Net realized and unrealized gain | 0.37 | ||
Net increase from investment operations | 0.57 | ||
Dividends from net investment income | (0.19 | ) | |
Net asset value, end of period | $ | 10.49 | |
Total Investment Return3 | |||
Based on net asset value | 5.72 | %4 | |
Ratios to Average Net Assets | |||
Total expenses | 1.03 | %5 | |
Total expenses after fees waived and paid indirectly | 0.98 | %5 | |
Total expenses after fees waived and paid indirectly and excluding interest expense and fees6 | 0.89 | %5 | |
Net investment income | 4.17 | %5 | |
Supplemental Data | |||
Net assets, end of period (000) | $ | 520 | |
Portfolio turnover | 21 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | 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 | Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
56 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights (continued) | BlackRock National Municipal Fund |
Investor C | |||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period October 2, 20061 to June 30, 2007 | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||
Net asset value, beginning of period | $ | 10.06 | $ | 10.19 | $ | 9.62 | $ | 9.96 | $ | 10.39 | $ | 10.57 | |||||||||
Net investment income2 | 0.19 | 0.39 | 0.38 | 0.39 | 0.37 | 0.25 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.43 | (0.13 | ) | 0.57 | (0.35 | ) | (0.43 | ) | (0.16 | ) | |||||||||||
Net increase (decrease) from investment operations | 0.62 | 0.26 | 0.95 | 0.04 | (0.06 | ) | 0.09 | ||||||||||||||
Dividends from net investment income | (0.18 | ) | (0.39 | ) | (0.38 | ) | (0.38 | ) | (0.37 | ) | (0.27 | ) | |||||||||
Net asset value, end of period | $ | 10.50 | $ | 10.06 | $ | 10.19 | $ | 9.62 | $ | 9.96 | $ | 10.39 | |||||||||
Total Investment Return3 | |||||||||||||||||||||
Based on net asset value | 6.25 | %4 | 2.60 | % | 9.95 | % | 0.56 | % | (0.57 | )% | 0.96 | %4 | |||||||||
Ratios to Average Net Assets | |||||||||||||||||||||
Total expenses | 1.66 | %5 | 1.66 | % | 1.61 | % | 1.66 | % | 1.82 | % | 2.05 | %5 | |||||||||
Total expenses after fees waived and | |||||||||||||||||||||
paid indirectly | 1.56 | %5 | 1.66 | % | 1.61 | % | 1.65 | % | 1.81 | % | 2.05 | %5 | |||||||||
Total expenses after fees waived and paid indirectly and | |||||||||||||||||||||
excluding interest expense and fees6 | 1.48 | %5 | 1.58 | % | 1.58 | % | 1.59 | % | 1.62 | % | 1.65 | %5 | |||||||||
Net investment income | 3.61 | %5 | 3.85 | % | 3.77 | % | 4.12 | % | 3.66 | % | 3.59 | %5 | |||||||||
Supplemental Data | |||||||||||||||||||||
Net assets, end of period (000) | $ | 409,294 | $ | 281,024 | $ | 292,132 | $ | 195,475 | $ | 103,504 | $ | 41,676 | |||||||||
Portfolio turnover | 21 | % | 51 | % | 70 | % | 65 | % | 61 | % | 46 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | 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 | Interest expense and fees relate to TOBs. 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 | DECEMBER 31, 2011 | 57 |
Financial Highlights (concluded) | BlackRock National Municipal Fund |
Investor C1 | ||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of period | $ | 10.06 | $ | 10.19 | $ | 9.61 | $ | 9.95 | $ | 10.39 | $ | 10.36 | ||||||||
Net investment income1 | 0.20 | 0.41 | 0.40 | 0.41 | 0.40 | 0.41 | ||||||||||||||
Net realized and unrealized gain (loss) | 0.42 | (0.13 | ) | 0.57 | (0.35 | ) | (0.44 | ) | 0.04 | |||||||||||
Net increase (decrease) from investment operations | 0.62 | 0.28 | 0.97 | 0.06 | (0.04 | ) | 0.45 | |||||||||||||
Dividends from net investment income | (0.19 | ) | (0.41 | ) | (0.39 | ) | (0.40 | ) | (0.40 | ) | (0.42 | ) | ||||||||
Net asset value, end of period | $ | 10.49 | $ | 10.06 | $ | 10.19 | $ | 9.61 | $ | 9.95 | $ | 10.39 | ||||||||
Total Investment Return2 | ||||||||||||||||||||
Based on net asset value | 6.25 | %3 | 2.80 | % | 10.28 | % | 0.76 | % | (0.44 | )% | 4.23 | % | ||||||||
Ratios to Average Net Assets | ||||||||||||||||||||
Total expenses | 1.44 | %4 | 1.47 | % | 1.42 | % | 1.46 | % | 1.58 | % | 1.80 | % | ||||||||
Total expenses after fees waived and paid indirectly | 1.37 | %4 | 1.46 | % | 1.42 | % | 1.44 | % | 1.57 | % | 1.80 | % | ||||||||
Total expenses after fees waived and paid indirectly and | ||||||||||||||||||||
excluding interest expense and fees5 | 1.29 | %4 | 1.38 | % | 1.39 | % | 1.39 | % | 1.39 | % | 1.39 | % | ||||||||
Net investment income | 3.80 | %4 | 4.04 | % | 3.96 | % | 4.32 | % | 3.90 | % | 3.88 | % | ||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000) | $ | 99,891 | $ | 73,302 | $ | 88,427 | $ | 95,790 | $ | 114,746 | $ | 140,653 | ||||||||
Portfolio turnover | 21 | % | 51 | % | 70 | % | 65 | % | 61 | % | 46 | % |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
58 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights | BlackRock High Yield Municipal Fund |
Institutional | |||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period August 1, 20061 to June 30, 2007 | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||
Net asset value, beginning of period | $ | 8.35 | $ | 8.47 | $ | 7.29 | $ | 8.68 | $ | 9.96 | $ | 10.00 | |||||||||
Net investment income2 | 0.24 | 0.46 | 0.46 | 0.48 | 0.44 | 0.39 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.33 | (0.13 | ) | 1.18 | (1.40 | ) | (1.26 | ) | (0.03 | ) | |||||||||||
Net increase (decrease) from investment | |||||||||||||||||||||
operations | 0.57 | 0.33 | 1.64 | (0.92 | ) | (0.82 | ) | 0.36 | |||||||||||||
Dividends and distributions from: | |||||||||||||||||||||
Net investment income | (0.23 | ) | (0.45 | ) | (0.46 | ) | (0.47 | ) | (0.44 | ) | (0.40 | ) | |||||||||
Net realized gain | — | — | — | — | (0.02 | ) | (0.00 | )3 | |||||||||||||
Total dividends and distributions | (0.23 | ) | (0.45 | ) | (0.46 | ) | (0.47 | ) | (0.46 | ) | (0.40 | ) | |||||||||
Net asset value, end of period | $ | 8.69 | $ | 8.35 | $ | 8.47 | $ | 7.29 | $ | 8.68 | $ | 9.96 | |||||||||
Total Investment Return4 | |||||||||||||||||||||
Based on net asset value | 6.91 | %5 | 4.14 | % | 22.88 | % | (10.40 | )% | (8.38 | )% | 3.59 | %5 | |||||||||
Ratios to Average Net Assets | |||||||||||||||||||||
Total expenses | 0.78 | %6 | 0.78 | % | 0.83 | % | 0.93 | % | 0.84 | % | 0.96 | %6 | |||||||||
Total expenses after fees waived and paid indirectly | 0.77 | %6 | 0.78 | % | 0.83 | % | 0.92 | % | 0.81 | % | 0.62 | %6 | |||||||||
Total expenses after fees waived and excluding | |||||||||||||||||||||
interest expense and fees7 | 0.70 | %6 | 0.72 | % | 0.79 | % | 0.89 | % | 0.78 | % | 0.62 | %6 | |||||||||
Net investment income | 5.52 | %6 | 5.49 | % | 5.63 | % | 6.52 | % | 4.76 | % | 4.35 | %6 | |||||||||
Supplemental Data | |||||||||||||||||||||
Net assets, end of period (000) | $ | 132,989 | $ | 111,669 | $ | 94,146 | $ | 45,997 | $ | 71,203 | $ | 62,464 | |||||||||
Portfolio turnover | 9 | % | 31 | % | 32 | % | 39 | % | 33 | % | 16 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Amount is less than $(0.01) per share. |
4 | 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 | Interest expense and fees relate to TOBs. 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 | DECEMBER 31, 2011 | 59 |
Financial Highlights (continued) | BlackRock High Yield Municipal Fund |
Investor A | |||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period August 1, 20061 to June 30, 2007 | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||
Net asset value, beginning of period | $ | 8.33 | $ | 8.46 | $ | 7.28 | $ | 8.67 | $ | 9.95 | $ | 10.00 | |||||||||
Net investment income2 | 0.22 | 0.43 | 0.43 | 0.44 | 0.41 | 0.32 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.34 | (0.13 | ) | 1.18 | (1.39 | ) | (1.26 | ) | 0.01 | ||||||||||||
Net increase (decrease) from investment operations | 0.56 | 0.30 | 1.61 | (0.95 | ) | (0.85 | ) | 0.33 | |||||||||||||
Dividends and distributions from: | |||||||||||||||||||||
Net investment income | (0.22 | ) | (0.43 | ) | (0.43 | ) | (0.44 | ) | (0.41 | ) | (0.38 | ) | |||||||||
Net realized gain | — | — | — | — | (0.02 | ) | (0.00 | )3 | |||||||||||||
Total dividends and distributions | (0.22 | ) | (0.43 | ) | (0.43 | ) | (0.44 | ) | (0.43 | ) | (0.38 | ) | |||||||||
Net asset value, end of period | $ | 8.67 | $ | 8.33 | $ | 8.46 | $ | 7.28 | $ | 8.67 | $ | 9.95 | |||||||||
Total Investment Return4 | |||||||||||||||||||||
Based on net asset value | 6.78 | %5 | 3.73 | % | 22.58 | % | (10.67 | )% | (8.62 | )% | 3.26 | %5 | |||||||||
Ratios to Average Net Assets | |||||||||||||||||||||
Total expenses | 1.04 | %6 | 1.05 | % | 1.09 | % | 1.18 | % | 1.08 | % | 1.19 | %6 | |||||||||
Total expenses after fees waived and paid indirectly | 1.04 | %6 | 1.05 | % | 1.09 | % | 1.17 | % | 1.05 | % | 0.89 | %6 | |||||||||
Total expenses after fees waived and paid indirectly | |||||||||||||||||||||
excluding interest expense and fees7 | 0.96 | %6 | 0.99 | % | 1.05 | % | 1.14 | % | 1.03 | % | 0.89 | %6 | |||||||||
Net investment income | 5.12 | %6 | 5.21 | % | 5.33 | % | 6.13 | % | 4.52 | % | 4.16 | %6 | |||||||||
Supplemental Data | |||||||||||||||||||||
Net assets, end of period (000) | $ | 44,378 | $ | 27,993 | $ | 25,105 | $ | 4,798 | $ | 6,513 | $ | 5,892 | |||||||||
Portfolio turnover | 9 | % | 31 | % | 32 | % | 39 | % | 33 | % | 16 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Amount is less than $(0.01) per share. |
4 | 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 | Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
60 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights (concluded) | BlackRock High Yield Municipal Fund |
Investor C | |||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period August 1, 20061 to June 30, 2007 | |||||||||||||||||||
2011 | 2010 | 2009 | 2008 | ||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||
Net asset value, beginning of period | $ | 8.35 | $ | 8.47 | $ | 7.29 | $ | 8.68 | $ | 9.97 | $ | 10.00 | |||||||||
Net investment income2 | 0.19 | 0.37 | 0.37 | 0.41 | 0.34 | 0.30 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.34 | (0.12 | ) | 1.18 | (1.41 | ) | (1.27 | ) | (0.02 | ) | |||||||||||
Net increase (decrease) from investment operations | 0.53 | 0.25 | 1.55 | (1.00 | ) | (0.93 | ) | 0.28 | |||||||||||||
Dividends and distributions from: | |||||||||||||||||||||
Net investment income | (0.19 | ) | (0.37 | ) | (0.37 | ) | (0.39 | ) | (0.34 | ) | (0.31 | ) | |||||||||
Net realized gain | — | — | — | — | (0.02 | ) | (0.00 | )3 | |||||||||||||
Total dividends and distributions | (0.19 | ) | (0.37 | ) | (0.37 | ) | (0.39 | ) | (0.36 | ) | (0.31 | ) | |||||||||
Net asset value, end of period | $ | 8.69 | $ | 8.35 | $ | 8.47 | $ | 7.29 | $ | 8.68 | $ | 9.97 | |||||||||
Total Investment Return4 | |||||||||||||||||||||
Based on net asset value | 6.36 | %5 | 3.07 | % | 21.61 | % | (11.33 | )% | (9.40 | )% | 2.84 | %5 | |||||||||
Ratios to Average Net Assets | |||||||||||||||||||||
Total expenses | 1.82 | %6 | 1.82 | % | 1.88 | % | 1.97 | % | 1.85 | % | 1.84 | %6 | |||||||||
Total expenses after fees waived and paid indirectly | 1.81 | %6 | 1.82 | % | 1.88 | % | 1.97 | % | 1.82 | % | 1.53 | %6 | |||||||||
Total expenses after fees waived and paid indirectly | |||||||||||||||||||||
excluding interest expense and fees7 | 1.74 | %6 | 1.77 | % | 1.84 | % | 1.94 | % | 1.80 | % | 1.53 | %6 | |||||||||
Net investment income | 4.33 | %6 | 4.45 | % | 4.58 | % | 5.59 | % | 3.76 | % | 3.50 | %6 | |||||||||
Supplemental Data | |||||||||||||||||||||
Net assets, end of period (000) | $ | 21,756 | $ | 17,945 | $ | 14,560 | $ | 5,389 | $ | 4,527 | $ | 4,378 | |||||||||
Portfolio turnover | 9 | % | 31 | % | 32 | % | 39 | % | 33 | % | 16 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Amount is less than $(0.01) per share. |
4 | 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 | Interest expense and fees relate to TOBs. 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 | DECEMBER 31, 2011 | 61 |
Financial Highlights | BlackRock New York Municipal Fund |
Institutional | |||||||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period October 1, 2007 to June 30, 2008 | Year Ended September 30, | ||||||||||||||||||||||
2011 | 2010 | 2009 | 2007 | 2006 | |||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.36 | $ | 10.55 | $ | 9.81 | $ | 10.38 | $ | 10.84 | $ | 11.10 | $ | 11.05 | |||||||||||
Net investment income1 | 0.24 | 0.50 | 0.49 | 0.48 | 0.36 | 0.49 | 0.51 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.25 | (0.20 | ) | 0.74 | (0.56 | ) | (0.46 | ) | (0.26 | ) | 0.04 | ||||||||||||||
Net increase (decrease) from investment operations | 0.49 | 0.30 | 1.23 | (0.08 | ) | (0.10 | ) | 0.23 | 0.55 | ||||||||||||||||
Dividends from net investment income | (0.24 | ) | (0.49 | ) | (0.49 | ) | (0.49 | ) | (0.36 | ) | (0.49 | ) | (0.50 | ) | |||||||||||
Net asset value, end of period | $ | 10.61 | $ | 10.36 | $ | 10.55 | $ | 9.81 | $ | 10.38 | $ | 10.84 | $ | 11.10 | |||||||||||
Total Investment Return2 | |||||||||||||||||||||||||
Based on net asset value | 4.79 | %3 | 2.97 | % | 12.74 | % | (0.60 | )% | (0.91 | )%3 | 2.12 | % | 5.19 | % | |||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||
Total expenses | 0.78 | %4 | 0.72 | % | 0.76 | % | 0.78 | % | 0.82 | %4 | 0.85 | % | 0.90 | % | |||||||||||
Total expenses after fees waived and paid indirectly | 0.77 | %4 | 0.72 | % | 0.76 | % | 0.77 | % | 0.81 | %4 | 0.85 | % | 0.90 | % | |||||||||||
Total expenses after fees waived and paid indirectly | |||||||||||||||||||||||||
excluding interest expense and fees5 | 0.76 | %4 | 0.70 | % | 0.75 | % | 0.76 | % | 0.74 | %4 | 0.73 | % | 0.74 | % | |||||||||||
Net investment income | 4.58 | %4 | 4.78 | % | 4.77 | % | 5.01 | % | 4.56 | %4 | 4.51 | % | 4.64 | % | |||||||||||
Supplemental Data | |||||||||||||||||||||||||
Net assets, end of period (000) | $ | 25,567 | $ | 25,864 | $ | 23,841 | $ | 19,105 | $ | 17,949 | $ | 14,927 | $ | 10,995 | |||||||||||
Portfolio turnover | 10 | % | 17 | % | 19 | % | 30 | % | 16 | % | 19 | % | 46 | % |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
62 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights (continued) | BlackRock New York Municipal Fund |
Investor A | ||||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period October 1, 2007 to June 30, 2008 | Period October 2, 20061 to September 30, 2007 | |||||||||||||||||||
2011 | 2010 | 2009 | ||||||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.37 | $ | 10.55 | $ | 9.82 | $ | 10.39 | $ | 10.85 | $ | 11.10 | ||||||||||
Net investment income2 | 0.23 | 0.47 | 0.47 | 0.46 | 0.34 | 0.46 | ||||||||||||||||
Net realized and unrealized gain (loss) | 0.25 | (0.19 | ) | 0.72 | (0.57 | ) | (0.46 | ) | (0.25 | ) | ||||||||||||
Net increase (decrease) from investment operations | 0.48 | 0.28 | 1.19 | (0.11 | ) | (0.12 | ) | 0.21 | ||||||||||||||
Dividends from net investment income | (0.23 | ) | (0.46 | ) | (0.46 | ) | (0.46 | ) | (0.34 | ) | (0.46 | ) | ||||||||||
Net asset value, end of period | $ | 10.62 | $ | 10.37 | $ | 10.55 | $ | 9.82 | $ | 10.39 | $ | 10.85 | ||||||||||
Total Investment Return3 | ||||||||||||||||||||||
Based on net asset value | 4.64 | %4 | 2.76 | % | 12.33 | % | (0.85 | )% | (1.10 | )%4 | 1.93 | %4 | ||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||
Total expenses | 1.04 | %5 | 1.02 | % | 1.02 | % | 1.05 | % | 1.07 | %5 | 1.10 | %5 | ||||||||||
Total expenses after fees waived and paid indirectly | 1.04 | %5 | 1.01 | % | 1.02 | % | 1.04 | % | 1.06 | %5 | 1.10 | %5 | ||||||||||
Total expenses after fees waived and paid indirectly | ||||||||||||||||||||||
excluding interest expense and fees6 | 1.02 | %5 | 1.00 | % | 1.01 | % | 1.02 | % | 0.99 | %5 | 0.99 | %5 | ||||||||||
Net investment income | 4.22 | %5 | 4.47 | % | 4.50 | % | 4.77 | % | 4.31 | %5 | 4.27 | %5 | ||||||||||
Supplemental Data | ||||||||||||||||||||||
Net assets, end of period (000) | $ | 40,682 | $ | 35,751 | $ | 37,736 | $ | 20,528 | $ | 16,181 | $ | 11,964 | ||||||||||
Portfolio turnover | 10 | % | 17 | % | 19 | % | 30 | % | 16 | % | 19 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | 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 | Interest expense and fees relate to TOBs. 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 | DECEMBER 31, 2011 | 63 |
Financial Highlights (continued) | BlackRock New York Municipal Fund |
Investor A1 | |||||||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period October 1, 2007 to June 30, 2008 | Year Ended September 30, | ||||||||||||||||||||||
2011 | 2010 | 2009 | 2007 | 2006 | |||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.37 | $ | 10.55 | $ | 9.82 | $ | 10.39 | $ | 10.85 | $ | 11.10 | $ | 11.05 | |||||||||||
Net investment income1 | 0.24 | 0.49 | 0.48 | 0.48 | 0.36 | 0.49 | 0.50 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.24 | (0.19 | ) | 0.73 | (0.57 | ) | (0.47 | ) | (0.26 | ) | 0.04 | ||||||||||||||
Net increase (decrease) from investment operations | 0.48 | 0.30 | 1.21 | (0.09 | ) | (0.11 | ) | 0.23 | 0.54 | ||||||||||||||||
Dividends from net investment income | (0.24 | ) | (0.48 | ) | (0.48 | ) | (0.48 | ) | (0.35 | ) | (0.48 | ) | (0.49 | ) | |||||||||||
Net asset value, end of period | $ | 10.61 | $ | 10.37 | $ | 10.55 | $ | 9.82 | $ | 10.39 | $ | 10.85 | $ | 11.10 | |||||||||||
Total Investment Return2 | |||||||||||||||||||||||||
Based on net asset value | 4.65 | %3 | 2.95 | % | 12.49 | % | (0.70 | )% | (0.99 | )%3 | 2.11 | % | 5.08 | % | |||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||
Total expenses | 0.85 | %4 | 0.84 | % | 0.88 | % | 0.89 | % | 0.92 | %4 | 0.95 | % | 1.00 | % | |||||||||||
Total expenses after fees waived and paid indirectly | 0.85 | %4 | 0.83 | % | 0.87 | % | 0.88 | % | 0.91 | %4 | 0.95 | % | 0.99 | % | |||||||||||
Total expenses after fees waived and paid indirectly | |||||||||||||||||||||||||
excluding interest expense and fees5 | 0.83 | %4 | 0.82 | % | 0.86 | % | 0.87 | % | 0.84 | %4 | 0.83 | % | 0.84 | % | |||||||||||
Net investment income | 4.50 | %4 | 4.66 | % | 4.65 | % | 4.90 | % | 4.45 | %4 | 4.40 | % | 4.52 | % | |||||||||||
Supplemental Data | |||||||||||||||||||||||||
Net assets, end of period (000) | $ | 152,206 | $ | 151,327 | $ | 162,305 | $ | 157,706 | $ | 177,080 | $ | 204,497 | $ | 223,322 | |||||||||||
Portfolio turnover | 10 | % | 17 | % | 19 | % | 30 | % | 16 | % | 19 | % | 46 | % |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
64 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights (continued) | BlackRock New York Municipal Fund |
Investor B | |||||||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period October 1, 2007 to June 30, 2008 | Year Ended September 30, | ||||||||||||||||||||||
2011 | 2010 | 2009 | 2007 | 2006 | |||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.37 | $ | 10.55 | $ | 9.81 | $ | 10.38 | $ | 10.84 | $ | 11.10 | $ | 11.06 | |||||||||||
Net investment income1 | 0.21 | 0.44 | 0.44 | 0.44 | 0.33 | 0.44 | 0.45 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.24 | (0.18 | ) | 0.74 | (0.57 | ) | (0.47 | ) | (0.26 | ) | 0.04 | ||||||||||||||
Net increase (decrease) from investment operations | 0.45 | 0.26 | 1.18 | (0.13 | ) | (0.14 | ) | 0.18 | 0.49 | ||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.44 | ) | (0.44 | ) | (0.44 | ) | (0.32 | ) | (0.44 | ) | (0.45 | ) | |||||||||||
Net asset value, end of period | $ | 10.61 | $ | 10.37 | $ | 10.55 | $ | 9.81 | $ | 10.38 | $ | 10.84 | $ | 11.10 | |||||||||||
Total Investment Return2 | |||||||||||||||||||||||||
Based on net asset value | 4.42 | %3 | 2.52 | % | 12.15 | % | (1.11 | )% | (1.29 | )%3 | 1.60 | % | 4.56 | % | |||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||
Total expenses | 1.30 | %4 | 1.26 | % | 1.29 | % | 1.30 | % | 1.31 | %4 | 1.36 | % | 1.41 | % | |||||||||||
Total expenses after fees waived and paid indirectly | 1.30 | %4 | 1.26 | % | 1.28 | % | 1.29 | % | 1.31 | %4 | 1.36 | % | 1.41 | % | |||||||||||
Total expenses after fees waived and paid indirectly | |||||||||||||||||||||||||
excluding interest expense and fees5 | 1.28 | %4 | 1.24 | % | 1.28 | % | 1.27 | % | 1.24 | %4 | 1.24 | % | 1.25 | % | |||||||||||
Net investment income | 4.05 | %4 | 4.22 | % | 4.25 | % | 4.48 | % | 4.06 | %4 | 3.99 | % | 4.14 | % | |||||||||||
Supplemental Data | |||||||||||||||||||||||||
Net assets, end of period (000) | $ | 4,466 | $ | 5,950 | $ | 9,645 | $ | 11,770 | $ | 18,535 | $ | 25,264 | $ | 34,921 | |||||||||||
Portfolio turnover | 10 | % | 17 | % | 19 | % | 30 | % | 16 | % | 19 | % | 46 | % |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to TOBs. 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 | DECEMBER 31, 2011 | 65 |
Financial Highlights (continued) | BlackRock New York Municipal Fund |
Investor C | ||||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period October 1, 2007 to June 30, 2008 | Period October 2, 20061 to September 30, 2007 | |||||||||||||||||||
2011 | 2010 | 2009 | ||||||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||||
Net asset value, beginning of period |
| $ | 10.37 |
| $ | 10.55 | $ | 9.81 | $ | 10.38 | $ | 10.84 | $ | 11.10 | ||||||||
Net investment income2 | 0.19 | 0.39 | 0.39 | 0.39 | 0.28 | 0.37 | ||||||||||||||||
Net realized and unrealized gain (loss) | 0.24 | (0.18 | ) | 0.74 | (0.56 | ) | (0.46 | ) | (0.25 | ) | ||||||||||||
Net increase (decrease) from investment operations | 0.43 | 0.21 | 1.13 | (0.17 | ) | (0.18 | ) | 0.12 | ||||||||||||||
Dividends from net investment income | (0.19 | ) | (0.39 | ) | (0.39 | ) | (0.40 | ) | (0.28 | ) | (0.38 | ) | ||||||||||
Net asset value, end of period | $ | 10.61 | $ | 10.37 | $ | 10.55 | $ | 9.81 | $ | 10.38 | $ | 10.84 | ||||||||||
Total Investment Return3 | ||||||||||||||||||||||
Based on net asset value | 4.18 | %4 | 2.03 | % | 11.62 | % | (1.59 | )% | (1.65 | )%4 | 1.08 | %4 | ||||||||||
Ratios to Average Net Assets | ||||||||||||||||||||||
Total expenses | 1.74 | %5 | 1.73 | % | 1.77 | % | 1.79 | % | 1.82 | %5 | 1.85 | %5 | ||||||||||
Total expenses after fees waived and paid indirectly | 1.74 | %5 | 1.73 | % | 1.76 | % | 1.78 | % | 1.81 | %5 | 1.85 | %5 | ||||||||||
Total expenses after fees waived and paid indirectly | ||||||||||||||||||||||
excluding interest expense and fees6 | 1.73 | %5 | 1.72 | % | 1.75 | % | 1.76 | % | 1.74 | %5 | 1.74 | %5 | ||||||||||
Net investment income | 3.60 | %5 | 3.76 | % | 3.76 | % | 4.03 | % | 3.57 | %5 | 3.52 | %5 | ||||||||||
Supplemental Data | ||||||||||||||||||||||
Net assets, end of period (000) | $ | 20,230 | $ | 17,180 | $ | 17,597 | $ | 12,294 | $ | 8,535 | $ | 4,611 | ||||||||||
Portfolio turnover | 10 | % | 17 | % | 19 | % | 30 | % | 16 | % | 19 | % |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | 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 | Interest expense and fees relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs. |
See Notes to Financial Statements.
66 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Financial Highlights (concluded) | BlackRock New York Municipal Fund |
Investor C1 | |||||||||||||||||||||||||
Six Months Ended December 31, 2011 (Unaudited) | Year Ended June 30, | Period October 1, 2007 to June 30, 2008 | Year Ended September 30, | ||||||||||||||||||||||
2011 | 2010 | 2009 | 2007 | 2006 | |||||||||||||||||||||
Per Share Operating Performance | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.37 | $ | 10.55 | $ | 9.81 | $ | 10.39 | $ | 10.85 | $ | 11.10 | $ | 11.06 | |||||||||||
Net investment income1 | 0.21 | 0.43 | 0.43 | 0.43 | 0.32 | 0.43 | 0.44 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.24 | (0.18 | ) | 0.74 | (0.58 | ) | (0.47 | ) | (0.25 | ) | 0.04 | ||||||||||||||
Net increase (decrease) from investment operations | 0.45 | 0.25 | 1.17 | (0.15 | ) | (0.15 | ) | 0.18 | 0.48 | ||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.43 | ) | (0.43 | ) | (0.43 | ) | (0.31 | ) | (0.43 | ) | (0.44 | ) | |||||||||||
Net asset value, end of period | $ | 10.61 | $ | 10.37 | $ | 10.55 | $ | 9.81 | $ | 10.39 | $ | 10.85 | $ | 11.10 | |||||||||||
Total Investment Return2 | |||||||||||||||||||||||||
Based on net asset value | 4.39 | %3 | 2.44 | % | 12.06 | % | (1.29 | )% | (1.35 | )%3 | 1.61 | % | 4.46 | % | |||||||||||
Ratios to Average Net Assets | |||||||||||||||||||||||||
Total expenses | 1.35 | %4 | 1.33 | % | 1.37 | % | 1.38 | % | 1.41 | %4 | 1.45 | % | 1.51 | % | |||||||||||
Total expenses after fees waived and paid indirectly | 1.35 | %4 | 1.33 | % | 1.37 | % | 1.37 | % | 1.40 | %4 | 1.45 | % | 1.50 | % | |||||||||||
Total expenses after fees waived and paid indirectly | |||||||||||||||||||||||||
excluding interest expense and fees5 | 1.33 | %4 | 1.32 | % | 1.36 | % | 1.36 | % | 1.33 | %4 | 1.33 | % | 1.35 | % | |||||||||||
Net investment income | 4.02 | %4 | 4.16 | % | 4.16 | % | 4.41 | % | 3.97 | %4 | 3.91 | % | 4.03 | % | |||||||||||
Supplemental Data | |||||||||||||||||||||||||
Net assets, end of period (000) | $ | 10,979 | $ | 10,694 | $ | 12,391 | $ | 12,491 | $ | 14,217 | $ | 16,364 | $ | 18,984 | |||||||||||
Portfolio turnover | 10 | % | 17 | % | 19 | % | 30 | % | 16 | % | 19 | % | 46 | % |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to TOBs. 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 | DECEMBER 31, 2011 | 67 |
Notes to Financial Statements (Unaudited)
1. Organization and Significant Accounting Policies:
BlackRock Short-Term Municipal Fund (“Short-Term Municipal”), BlackRock National Municipal Fund (“National Municipal”) and BlackRock High Yield Municipal Fund (“High Yield Municipal”) of BlackRock Municipal Bond Fund, Inc. (the “Corporation”) and BlackRock New York Municipal Bond Fund (“New York Municipal”) of BlackRock Multi-State Municipal Series Trust (the “Trust”) (collectively, the “Funds” or individually as the “Fund”) are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as diversified, open-end management investment companies. The Corporation is organized as a Maryland corporation. The Trust is organized as a Massachusetts business trust. The Funds’ 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 and disclosures in the financial statements. Actual results could differ from those estimates. The Board of Directors of the Corporation and the Board of Trustees of the Trust are referred to throughout this report as the “Board of Directors” or the “Board”. Each Fund offers multiple classes of shares. BlackRock, Institutional and Service Shares are sold without a sales charge and only to certain eligible investors. Investor A and Investor A1 Shares are generally sold with a front-end sales charge. Investor B, Investor B1, Investor C and Investor C1 Shares may be subject to a CDSC. All classes of shares have identical voting, dividend, liquidation and other rights and the same terms and conditions, except that Service, Investor A, Investor A1, Investor B, Investor B1, Investor C and Investor C1 Shares bear certain expenses related to the shareholder servicing of such shares, and Investor B, Investor B1, Investor C and Investor C1 Shares also bear certain expenses related to the distribution of such shares. For Short-Term Municipal and New York Municipal, Investor B Shares automatically convert to Investor A1 Shares after approximately 10 years. For National Municipal, Investor B and Investor B1 Shares automatically convert to Investor A and Investor A1 Shares, respectively, after approximately ten years. Investor A1, Investor B, Investor B1 and Investor C1 Shares are only available through exchanges, dividend reinvestment by existing shareholders or for purchase by certain qualified employee benefit plans. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor B and Investor B1 shareholders may vote on material changes to the Investor A and Investor A1 distribution and service plans as applicable).
Reorganization: The Board of Directors (the “Board”) and shareholders of National Municipal and the Board and shareholders of each of BlackRock Municipal Fund of BlackRock Municipal Bond Fund, Inc. (“Municipal”) and BlackRock AMT-Free Municipal Bond Portfolio of BlackRock Funds II (“AMT-Free Municipal”) (individually, a “Target Fund” and collectively the “Target Funds”) approved the reorganizations of each Target Fund into National Municipal pursuant to which National Municipal acquired substantially all of the assets and substantially all of the liabilities of each Target Fund in exchange for an equal aggregate value of newly-issued shares of National Municipal.
Each shareholder of a Target Fund received shares of National Municipal in an amount equal to the aggregate net asset value of such shareholder’s Target Fund shares, as determined at the close of business on July 15, 2011 less the costs of the Target Fund’s reorganization (although cash was distributed for any fractional shares). In connection with the reorganizations, National Municipal issued newly created BlackRock, Service and Investor B1 Share classes.
The reorganizations were accomplished by a tax-free exchange of shares of National Municipal in the following amounts and at the following conversion ratios:
Target Fund | Target Fund’s Share Class | Shares Prior to Reorganization | Conversion Ratio | National Municipal’s Share Class | Shares of National Municipal | |||||||||||||||
Municipal | Institutional | 60,313,178 | 0.73000752 | BlackRock | 44,029,074 | |||||||||||||||
Municipal | Investor A | 23,362,907 | 0.72932033 | Investor A | 17,039,043 | |||||||||||||||
Municipal | Investor B | 1,504,648 | 0.72970352 | Investor B | 1,097,947 | |||||||||||||||
Municipal | Investor C | 5,968,504 | 0.73017144 | Investor C | 4,358,031 | |||||||||||||||
Municipal | Investor C1 | 3,835,529 | 0.72955036 | Investor C1 | 2,798,212 | |||||||||||||||
AMT-Free Municipal | BlackRock | 32,187 | 1.04459481 | BlackRock | 33,622 | |||||||||||||||
AMT-Free Municipal | Institutional | 36,915,636 | 1.04362536 | Institutional | 38,526,093 | |||||||||||||||
AMT-Free Municipal | Service | 807,665 | 1.04194269 | Service | 841,541 | |||||||||||||||
AMT-Free Municipal | Investor A | 4,388,828 | 1.04337638 | Investor A | 4,579,199 | |||||||||||||||
AMT-Free Municipal | Investor B | 66,195 | 1.04405653 | Investor B1 | 69,111 | |||||||||||||||
AMT-Free Municipal | Investor C | 2,211,771 | 1.04317692 | Investor C | 2,307,268 |
Each Target Fund’s net assets and composition of net assets on July 15, 2011, the date of the reorganization, were as follows:
Target Fund | Net Assets | Paid-in Capital | Distributions in Excess of Net Investment Income | Accumulated Net Realized Loss | Net Unrealized Appreciation | |||||||||||||||
Municipal | $ | 700,874,018 | $ | 711,500,571 | $ | (50,550 | ) | $ | (30,657,517 | ) | $ | 20,081,514 | ||||||||
AMT-Free Municipal | $ | 468,651,298 | $ | 471,981,418 | $ | (10,420 | ) | $ | (19,847,261 | ) | $ | 16,527,561 |
For financial reporting purposes, assets received and shares issued by National Municipal were recorded at fair value. However, the cost basis of the investments received from the Target Funds were carried forward to align ongoing reporting of National Municipal’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
The aggregate net assets of National Municipal immediately after the acquisition amounted to $3,651,145,054. Each Target Fund’s fair value and cost of investments prior to the reorganization were as follows:
Target Fund | Fair Value of Investments | Cost of Investments | ||||||
Municipal | $ | 697,035,650 | $ | 676,954,136 | ||||
AMT-Free Municipal | $ | 464,643,093 | $ | 448,115,532 |
The purpose of these transactions was to combine three funds managed by the Manager with the same or substantially similar (but not identical) investment objectives, investment policies, strategies, risks and restrictions. Each reorganization was a tax-free event and was effective on July 18, 2011.
68 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Notes to Financial Statements (continued)
In connection with the reorganizations, National Municipal’s Manager contractually agreed to waive and/or reimburse fees and expenses, excluding interest expense, dividend expense, acquired fund fees and expenses and certain other fund expenses, in order to limit expenses. This agreement is in effect until November 1, 2013. The expense limitations as a percentage of average daily net assets are as follows:
BlackRock | 0.46 | % |
Investor A | 0.72 | % |
Investor B | 1.23 | % |
Investor C | 1.47 | % |
Investor C1 | 1.28 | % |
Assuming the acquisition had been completed on July 1, 2011, the beginning of the fiscal reporting period of National Municipal, the pro forma results of operations for the six months ended December 31, 2011 are as follows:
• | Net investment income: $84,358,598 |
• | Net realized and change in unrealized gain/loss on investments: $160,516,259 |
• | Net increase in net assets resulting from operations: $244,874,857 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Target Funds that have been included in National Municipal’s Statement of Operations since July 18, 2011.
Reorganization costs incurred in connection with the reorganization were expensed by National Municipal.
The following is a summary of significant accounting policies followed by the Funds:
Valuation: US GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds fair value their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. 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.
In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or if a price is not available, the investment will be valued 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 investment advisor and/or the sub-advisor seeks to determine the price that each Fund might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.
Zero-Coupon Bonds: The Funds 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 Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds 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 Funds may be required to pay more at settlement than the security is worth. In addition, the Funds are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds 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 Funds’ 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 Funds leverage their assets through the use of TOBs. A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Fund has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Fund include the right of a Fund (1) to cause the holders of a proportional share of the short-term floating rate certificates to tender their certificates at par, including during instances of a rise in short-term interest rates, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to a Fund. The TOB may also be terminated without the consent of a Fund upon the occurrence of certain 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 quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond or the inability to remarket the short-term floating rate certificates to third party investors. During the six months ended December 31, 2011, no TOBs that the Funds participated in were terminated without the consent of the Funds.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 69 |
Notes to Financial Statements (continued)
The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to a Fund in exchange for TOB trust certificates. The Funds typically invest the cash in additional municipal bonds. Each Fund’s transfer of the municipal bonds to a TOB is accounted for as a secured borrowing; therefore, the municipal bonds deposited into a TOB are presented in the Funds’ Schedules of Investments and the TOB trust certificates are shown in other liabilities in the Statements of Assets and Liabilities.
Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Funds 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 short-term floating rate certificates have interest rates that generally reset weekly and their holders have the option to tender certificates to the TOB for redemption at par at each reset date. At December 31, 2011, 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 | ||||
National Municipal. | $ | 1,028,287,926 | $ | 480,373,769 | 0.07% – 0.25% | |
High Yield Municipal | $ | 40,821,576 | $ | 21,772,246 | 0.10% – 0.20% | |
New York Municipal | $ | 23,296,741 | $ | 11,884,810 | 0.10% – 0.20% |
For the six months ended December 31, 2011, the Funds’ average TOB trust certificates outstanding and the daily weighted average interest rate, including fees, were as follows:
Average TOB Trust Certificates Outstanding | Daily Weighted Average Interest Rate | |||
National Municipal | $ | 445,975,159 | 0.34% | |
High Yield Municipal | $ | 17,234,903 | 0.38% | |
New York Municipal | $ | 5,117,355 | 0.40% |
Should short-term interest rates rise, the Funds’ investments in TOBs may adversely affect the Funds’ net investment income and dividends to shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect the Funds’ 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 Funds either deliver collateral or segregate assets in connection with certain investments (e.g., financial futures contracts), the Funds 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 party to such transactions has requirements to deliver/deposit securities 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. Income and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets. Consent fees are compensation for agreeing to changes in the terms of debt instruments and are included in interest income in the Statements of Operations.
Dividends and Distributions: Dividends from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The amount and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP.
Income Taxes: It is each Fund’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 Fund files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ US federal tax returns remains open for each of the four periods ended June 30, 2011. The statutes of limitations on the Funds’ 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 Standard: In May 2011, the Financial Accounting Standards Board (the “FASB”) issued amended guidance to improve disclosure about fair value measurements which will require the following disclosures for fair value measurements categorized as Level 3: quantitative information about the unobservable inputs and assumptions used in the fair value measurement, a description of the valuation policies and procedures and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, the amounts and reasons for all transfers in and out of Level 1 and Level 2 will be required to be disclosed. The amended guidance is effective for financial statements for fiscal years beginning after December 15, 2011, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Funds’ financial statement disclosures.
In December 2011, the FASB issued guidance that will enhance 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 agreements or similar agreements and will require an entity to disclose both gross and net
70 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Notes to Financial Statements (continued)
information about such investments and transactions eligible for offset in the Statements of Assets and Liabilities. 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 Funds’ financial statement disclosures.
Other: Expenses directly related to a Fund or its classes are charged to that Fund or class. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods. Other expenses of the Fund are allocated daily to each class based on its relative net assets.
The Funds 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 Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and to economically hedge, or protect, their exposure to certain risks such as interest rate risk. These contracts may be transacted on an exchange.
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. Counterparty risk related to exchange-traded financial futures contracts is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.
Financial Futures Contracts: The Funds 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 Funds and 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, 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 Funds 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 margin variation and are recorded by the Funds as unrealized appreciation or depreciation. When the contract is closed, the Funds 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.
Derivative Financial Instruments Categorized by Risk Exposure:
Fair Values of Derivative Financial Instruments as of December 31, 2011 | |||||||
Liability Derivatives | |||||||
Statement of Assets and Liabilities Location | National Municipal | High Yield Municipal | New York Municipal | ||||
Interest rate contracts | Net unrealized appreciation/ depreciation1 | ||||||
$313,450 | $25,703 | $25,076 |
1 | Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s margin variation is reported within the Statements of Assets and Liabilities. |
The Effect of Derivative Financial Instruments in the Statements of Operations Six Months Ended December 31, 2011 | ||||||||
Net Realized Gain (Loss) from | ||||||||
National Municipal | High Yield Municipal | New York Municipal | ||||||
Interest rate contracts: | ||||||||
Financial futures contracts | $ | 528,513 | $ | (257,216 | ) | $ | (457,657 | ) |
Net Change in Unrealized Appreciation/Depreciation on | |||||||||
National Municipal | High Yield Municipal | New York Municipal | |||||||
Interest rate contracts: | |||||||||
Financial futures contracts | $ | (313,450 | ) | $ | (34,335 | ) | $ | (101,934 | ) |
For the six months ended December 31, 2011, the average quarterly balances of outstanding derivative financial instruments were as follows:
National Municipal | High Yield Municipal | New York Municipal | ||||||||||
Financial futures contracts: | ||||||||||||
Average number of | ||||||||||||
contracts sold | 250 | 34 | 40 | |||||||||
Average notional value | ||||||||||||
of contracts sold | $ | 32,781,250 | $ | 4,444,328 | $ | 5,224,375 |
3. Investment Advisory Agreement and Other Transactions with Affiliates:
The PNC Financial Services Group, Inc. (“PNC”) and Barclays Bank PLC (“Barclays”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). Due to the ownership structure, PNC is an affiliate for 1940 Act purposes, but Barclays is not.
The Corporation and the Trust, on behalf of each Fund, entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Funds’ 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 Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Fund. For such
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 71 |
Notes to Financial Statements (continued)
services, each Fund pays the Manager a monthly fee based on a percentage of each Fund’s average daily net assets at the following annual rates:
Aggregate of Average Daily Net Assets of the Two Combined Funds1 | Rate of Advisory Fee | |||
Short-Term Municipal | National Municipal | |||
First $250 million | 0.400 | % | 0.500 | % |
$250 million – $400 million | 0.375 | % | 0.475 | % |
$400 million – $550 million | 0.350 | % | 0.475 | % |
Greater than $550 million | 0.325 | % | 0.475 | % |
1 | The portion of the assets of a Fund to which the rate of each breakpoint level applies will be determined on a “uniform percentage” basis. The uniform percentage applicable to a breakpoint level is determined by dividing the amount of the aggregate average daily net assets of the two combined Funds that falls within that breakpoint level by the aggregate average daily net assets of the two combined Funds. The amount of the fee for a Fund at each breakpoint level is determined by multiplying the average daily net assets of that Fund by the uniform percentage applicable to that breakpoint level and multiplying the product by the advisory fee rate. |
High Yield Municipal’s annual investment advisory fee rates are as follows:
Portion of Average Daily Net Assets | Rate | |
First $250 million | 0.550 | % |
$250 million – $500 million | 0.525 | % |
Greater than $500 million | 0.500 | % |
New York Municipal’s annual investment advisory fee rate is 0.55%.
The Manager voluntarily agreed to waive a portion of its fees payable by the Fund, which is shown as fees waived by advisor in the Statements of Operations, so that such fee is reduced for average daily net assets of the Fund as follows:
Portion of Average Daily Net Assets | Rate | |
First $500 million | 0.550 | % |
$500 million – $1 billion | 0.525 | % |
Greater than $1 billion | 0.500 | % |
For Short-Term Municipal and National Municipal, the Manager agreed to waive and/or reimburse fees and expenses, excluding interest expense, dividend expense, acquired fund fees and expenses and certain other fund expenses, in order to limit expenses. The expense limitations as a percentage of net assets are as follows:
Short-Term Municipal | National Municipal | |||
Voluntary1 | Contractual2 | |||
BlackRock | — | 0.46 | % | |
Institutional | 0.40 | % | — | |
Investor A | 0.69 | % | 0.72 | % |
Investor A1 | 0.52 | % | — | |
Investor B | 0.81 | % | 1.23 | % |
Investor C | 1.55 | % | 1.47 | % |
Investor C1 | — | 1.28 | % |
1 | These voluntary waivers and/or reimbursements may be reduced or discontinued at any time without notice. |
2 | The Manager has agreed not to reduce or discontinue this contractual waiver and/or reimbursement prior to November 1, 2013 unless approved by the Board, including a majority of the independent Directors. |
As a result, for Short-Term Municipal and National Municipal, the Manager waived or reimbursed the following amounts which are shown as transfer agent fees waived and/or reimbursed — class specific in the Statements of Operations:
Short-Term Municipal | National Municipal | ||||
BlackRock | — | $ | 75,817 | ||
Institutional | $ | 293,488 | — | ||
Investor A | — | $ | 272,591 | ||
Investor A1 | $ | 6,935 | — | ||
Investor B | $ | 865 | $ | 18,713 | |
Investor C | — | $ | 92,224 | ||
Investor C1 | — | $ | 13,185 |
The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund 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 Fund’s investment in other affiliated investment companies, if any. These amounts are shown as, or included in, fees waived by advisor in the Statements of Operations.
For the six months ended December 31, 2011, the amounts waived were as follows:
Short-Term Municipal | $ | 3,010 |
National Municipal | $ | 93,428 |
High Yield Municipal | $ | 2,031 |
New York Municipal | $ | 2,360 |
The Corporation and the Trust, on behalf of the Manager, entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BIM, for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Fund to the Manager.
For the six months ended December 31, 2011, the Funds reimbursed the Manager for certain accounting services, which is included in accounting services in the Statements of Operations. The reimbursements were as follows:
Short-Term Municipal | $ | 5,011 |
National Municipal | $ | 18,005 |
High Yield Municipal | $ | 898 |
New York Municipal | $ | 1,246 |
The Funds entered into a Distribution Agreement and Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at
72 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Notes to Financial Statements (continued)
annual rates based upon the average daily net assets of the shares of each Fund as follows:
Service Fees | ||||||||
Short-Term Municipal | National Municipal | High Yield Municipal | New York Municipal | |||||
Service | — | 0.25 | % | — | — | |||
Investor A | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % |
Investor A1 | 0.10 | % | — | — | 0.10 | % | ||
Investor B | 0.15 | % | 0.25 | % | — | 0.25 | % | |
Investor B1 | — | 0.25 | % | — | — | |||
Investor C | 0.25 | % | 0.25 | % | 0.25 | % | 0.25 | % |
Investor C1 | — | 0.25 | % | — | 0.25 | % |
Distribution Fees | ||||||||
Short-Term Municipal | National Municipal | High Yield Municipal | New York Municipal | |||||
Investor B | 0.20 | % | 0.50 | % | — | 0.25 | % | |
Investor B1 | — | 0.75 | % | — | — | |||
Investor C | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % |
Investor C1 | — | 0.55 | % | — | 0.35 | % |
Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder servicing and distribution services to each Fund. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to Investor A, Investor A1, Investor B, Investor B1, Investor C and Investor C1 shareholders.
For the six months ended December 31, 2011, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Funds’ Investor A Shares as follows:
Short-Term Municipal | National Municipal | High Yield Municipal | New York Municipal | |||||||||||||
Investor A | $ | 2,974 | $ | 103,947 | $ | 13,068 | $ | 6,280 |
For the six months ended December 31, 2011, affiliates received the following CDSC relating to transactions in Investor A, Investor B, Investor B1, Investor C and Investor C1 Shares:
Short-Term Municipal | National Municipal | High Yield Municipal | New York Municipal | |||||||||||||
Investor A | $ | 32,583 | $ | 81,302 | $ | 2,855 | $ | 540 | ||||||||
Investor B | $ | 452 | $ | 2,615 | — | $ | 1,265 | |||||||||
Investor B1 | — | $ | 387 | — | — | |||||||||||
Investor C | $ | 2,665 | $ | 22,930 | $ | 1,607 | $ | 322 | ||||||||
Investor C1 | — | $ | 838 | — | — |
The Manager maintains a call center, which is responsible for providing certain shareholder services to the Funds, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the six months ended December 31, 2011, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:
Call Center Fees | ||||||||||||||||
Short-Term Municipal | National Municipal | High Yield Municipal | New York Municipal | |||||||||||||
BlackRock | $ | 48 | — | — | — | |||||||||||
Institutional | $ | 1,410 | $ | 10,500 | $ | 180 | $ | 72 | ||||||||
Investor A | $ | 1,434 | $ | 7,595 | $ | 240 | $ | 204 | ||||||||
Investor A1 | $ | 306 | — | — | $ | 1,086 | ||||||||||
Investor B | $ | 54 | $ | 294 | — | $ | 48 | |||||||||
Investor C | $ | 702 | $ | 1,776 | $ | 178 | $ | 138 | ||||||||
Investor C1 | — | $ | 414 | — | $ | 60 |
4. Investments:
Purchases and sales of investments, excluding short-term securities for the six months ended December 31, 2011, were as follows:
Purchases | Sales | |||||||
Short-Term Municipal | $ | 315,805,606 | $ | 255,335,184 | ||||
National Municipal | $ | 1,072,881,280 | $ | 794,449,240 | ||||
High Yield Municipal | $ | 49,318,796 | $ | 16,969,814 | ||||
New York Municipal | $ | 31,608,572 | $ | 26,077,718 |
5. Capital Loss Carryforwards:
As of June 30, 2011, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:
Expires June 30, | Short-Term Municipal | National Municipal | High Yield Municipal | New York Municipal | ||||
2012 | — | $ | 1,046,803 | — | — | |||
2013 | $ | 362,313 | 48,027 | — | $ | 8,935,207 | ||
2014 | 4,110,940 | — | — | — | ||||
2015 | 2,987,949 | 259,851 | — | — | ||||
2016 | 322,206 | 1,320,166 | $ | 258,523 | — | |||
2017 | — | 19,350,079 | 3,758,709 | 2,020,225 | ||||
2018 | — | 40,719,990 | 4,665,271 | 367,311 | ||||
2019 | — | — | 1,973,257 | 1,028,212 | ||||
Total | $ | 7,783,408 | $ | 62,744,916 | $ | 10,655,760 | $ | 12,350,955 |
Under the Regulated Investment Company Modernization Act of 2010, capital losses incurred by the Fund after June 30, 2011 will not be subject to expiration. In addition, any such losses must be utilized prior to the losses incurred in pre-enactment taxable years.
As of December 31, 2011, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:
Short-Term Municipal | National Municipal | High Yield Municipal | New York Municipal | |||||||||||||
Tax cost | $ | 1,057,617,906 | $ | 3,806,022,201 | $ | 190,394,316 | $ | 240,057,296 | ||||||||
Gross unrealized appreciation | $ | 9,760,993 | $ | 254,892,456 | $ | 10,791,852 | $ | 13,149,479 | ||||||||
Gross unrealized depreciation | (141,027 | ) | (6,139,824 | ) | (5,223,106 | ) | (3,842,619 | ) | ||||||||
Net unrealized appreciation | $ | 9,619,966 | $ | 248,752,632 | $ | 5,568,746 | $ | 9,306,860 |
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 73 |
Notes to Financial Statements (continued)
6. Borrowings:
The Corporation and the Trust, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates, are a party to a $500 million credit agreement with a group of lenders, which expired in November 2011. The Funds may borrow under the credit agreement to fund shareholder redemptions. Effective November 2010, the credit agreement had the following terms: a commitment fee of 0.08% per annum based on each Fund’s pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 1.00% per annum or (b) the Fed Funds rate plus 1.00% per annum on amounts borrowed. In addition, the Funds paid administration and arrangement fees which were allocated to the Funds based on their net assets as of October 31, 2010. Effective November 2011, the credit agreement was renewed until November 2012 with the following terms: a commitment fee of 0.065% per annum based on each Fund’s pro rata share of the unused portion of the credit agreement and interest at a rate equal to the higher of (a) the one-month LIBOR plus 0.80% per annum or (b) the Fed Funds rate plus 0.80% per annum on amounts borrowed. In addition, the Funds paid administration and arrangement fees which were allocated to the Funds based on their net assets as of October 31, 2011. The Funds did not borrow under the credit agreement during the six months ended December 31, 2011.
7. Concentration, Market and Credit Risk:
New York Municipal invests a substantial amount of its assets in issuers located in a single state or limited number of states. Please see New York Municipal’s Schedule 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 Funds 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 Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; 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 Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds 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 Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Funds’ Statements of Assets and Liabilities, less any collateral held by the Funds.
As of December 31, 2011, Short-Term Municipal invested a significant portion of its assets in securities in the state and county/city/special district/school district sectors; National Municipal invested a significant portion of its assets in securities in the utilities sector; and High Yield Municipal invested a significant portion of its assets in securities in the health sector. Changes in economic conditions affecting the county/city/ special district/school district, state, health and utilities sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.
8. Capital Share Transactions:
Transactions in capital shares for each class were as follows:
Six Months Ended December 31, 2011 | Year Ended June 30, 2011 | |||||||||||||||
Short-Term Municipal | Shares | Amount | Shares | Amount | ||||||||||||
BlackRock | ||||||||||||||||
Shares sold | 1,967,549 | $ | 20,010,000 | 3,196,351 | $ | 32,406,000 | ||||||||||
Shares issued to shareholders in reinvestment of dividends | 27,168 | 276,624 | 29,185 | 296,667 | ||||||||||||
Shares redeemed | — | — | (602,469 | ) | (6,134,904 | ) | ||||||||||
Net increase | 1,994,717 | $ | 20,286,624 | 2,623,067 | $ | 26,567,763 | ||||||||||
Institutional | ||||||||||||||||
Shares sold | 14,229,203 | $ | 144,902,544 | 33,475,138 | $ | 340,121,082 | ||||||||||
Shares issued to shareholders in reinvestment of dividends | 138,527 | 1,410,176 | 342,602 | 3,481,932 | ||||||||||||
Shares redeemed | (10,974,827 | ) | (111,753,650 | ) | (36,198,366 | ) | (367,502,652 | ) | ||||||||
Net increase (decrease) | 3,392,903 | $ | 34,559,070 | (2,380,626 | ) | $ | (23,899,638 | ) |
74 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Notes to Financial Statements (continued)
Six Months Ended December 31, 2011 | Year Ended June 30, 2011 | |||||||||||||||
Short-Term Municipal (concluded) | Shares | Amount | Shares | Amount | ||||||||||||
Investor A | ||||||||||||||||
Shares sold and automatic conversion of shares | 5,366,885 | $ | 54,650,440 | 9,605,026 | $ | 97,784,236 | ||||||||||
Shares issued to shareholders in reinvestment of dividends | 68,786 | 700,602 | 198,989 | 2,024,025 | ||||||||||||
Shares redeemed | (5,541,512 | ) | (56,430,560 | ) | (17,211,292 | ) | (174,908,611 | ) | ||||||||
Net decrease | (105,841 | ) | $ | (1,079,518 | ) | (7,407,277 | ) | $ | (75,100,350 | ) | ||||||
Investor A1 | ||||||||||||||||
Shares sold | 131,134 | $ | 1,335,848 | 86,611 | $ | 880,738 | ||||||||||
Shares issued to shareholders in reinvestment of dividends | 13,722 | 139,785 | 37,013 | 376,554 | ||||||||||||
Shares redeemed | (247,286 | ) | (2,520,429 | ) | (1,424,180 | ) | (14,493,105 | ) | ||||||||
Net decrease | (102,430 | ) | $ | (1,044,796 | ) | (1,300,556 | ) | $ | (13,235,813 | ) | ||||||
Investor B | ||||||||||||||||
Shares sold | 23,842 | $ | 242,766 | 23,038 | $ | 233,890 | ||||||||||
Shares issued to shareholders in reinvestment of dividends | 1,141 | 11,614 | 4,074 | 41,423 | ||||||||||||
Shares redeemed | (200,961 | ) | (2,046,122 | ) | (345,678 | ) | (3,509,881 | ) | ||||||||
Net decrease | (175,978 | ) | $ | (1,791,742 | ) | (318,566 | ) | $ | (3,234,568 | ) | ||||||
Investor C | ||||||||||||||||
Shares sold | 892,386 | $ | 9,089,352 | 2,102,990 | $ | 21,388,921 | ||||||||||
Shares issued to shareholders in reinvestment of dividends | 604 | 6,156 | 16,363 | 166,373 | ||||||||||||
Shares redeemed | (1,499,095 | ) | (15,270,314 | ) | (5,213,299 | ) | (52,972,475 | ) | ||||||||
Net decrease | (606,105 | ) | $ | (6,174,806 | ) | (3,093,946 | ) | $ | (31,417,181 | ) | ||||||
National Municipal | ||||||||||||||||
BlackRock | ||||||||||||||||
Shares sold | 398,423 | $ | 4,123,017 | — | — | |||||||||||
Shares issued resulting from reorganization | 44,062,696 | 445,420,985 | — | — | ||||||||||||
Shares issued to shareholders in reinvestment of dividends | 256,783 | 2,655,075 | — | — | ||||||||||||
Shares redeemed | (2,460,633 | ) | (25,382,132 | ) | — | — | ||||||||||
Net increase | 42,257,269 | $ | 426,816,945 | — | — | |||||||||||
Institutional | ||||||||||||||||
Shares sold | 23,780,083 | $ | 245,253,346 | 39,093,064 | $ | 397,384,403 | ||||||||||
Shares issued resulting from reorganization | 38,526,093 | 389,452,572 | — | — | ||||||||||||
Shares issued to shareholders in reinvestment of dividends | 2,120,366 | 21,877,429 | 4,148,257 | 41,607,185 | ||||||||||||
Shares redeemed | (14,300,259 | ) | (147,113,278 | ) | (31,453,097 | ) | (313,408,653 | ) | ||||||||
Net increase | 50,126,283 | $ | 509,470,069 | 11,788,224 | $ | 125,582,935 | ||||||||||
Service | ||||||||||||||||
Shares sold and automatic conversion of shares | 58,539 | $ | 603,631 | — | — | |||||||||||
Shares issued resulting from reorganization | 841,541 | 8,511,177 | — | — | ||||||||||||
Shares issued to shareholders in reinvestment of dividends | 13,515 | 139,736 | — | — | ||||||||||||
Shares redeemed | (248,615 | ) | (2,580,999 | ) | — | — | ||||||||||
Net increase | 664,980 | $ | 6,673,545 | — | — | |||||||||||
Investor A | ||||||||||||||||
Shares sold and automatic conversion of shares | 30,717,460 | $ | 316,631,459 | 32,944,655 | $ | 329,287,957 | ||||||||||
Shares issued resulting from reorganization | 21,618,242 | 218,642,582 | — | — | ||||||||||||
Shares issued to shareholders in reinvestment of dividends | 1,386,735 | 14,327,507 | 2,260,688 | 22,698,564 | ||||||||||||
Shares redeemed | (10,969,017 | ) | (113,133,308 | ) | (30,577,063 | ) | (302,644,541 | ) | ||||||||
Net increase | 42,753,420 | $ | 436,468,240 | 4,628,280 | $ | 49,341,980 |
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 75 |
Notes to Financial Statements (continued)
Six Months Ended December 31, 2011 | Year Ended June 30, 2011 | |||||||||||||||
National Municipal (concluded) | Shares | Amount | Shares | Amount | ||||||||||||
Investor B | ||||||||||||||||
Shares sold and automatic conversion of shares | 88,029 | $ | 901,942 | 79,100 | $ | 783,623 | ||||||||||
Shares issued resulting from reorganization | 1,097,947 | 11,094,970 | — | — | ||||||||||||
Shares issued to shareholders in reinvestment of dividends | 33,454 | 344,953 | 73,349 | 736,467 | ||||||||||||
Shares redeemed | (1,007,712 | ) | (10,363,085 | ) | (1,665,029 | ) | (16,604,956 | ) | ||||||||
Net increase (decrease) | 211,718 | $ | 1,978,780 | (1,512,580 | ) | $ | (15,084,866 | ) | ||||||||
Investor B1 | ||||||||||||||||
Shares sold | 10 | $ | 119 | — | — | |||||||||||
Shares issued resulting from reorganization | 69,111 | 698,380 | — | — | ||||||||||||
Shares issued to shareholders in reinvestment of dividends | 745 | 7,695 | — | — | ||||||||||||
Shares redeemed and automatic conversion of shares | (20,319 | ) | (209,170 | ) | — | — | ||||||||||
Net increase | 49,547 | $ | 497,024 | — | — | |||||||||||
Investor C | ||||||||||||||||
Shares sold | 6,844,835 | $ | 70,520,992 | 7,754,446 | $ | 78,331,889 | ||||||||||
Shares issued resulting from reorganization | 6,665,299 | 67,414,170 | — | — | ||||||||||||
Shares issued to shareholders in reinvestment of dividends | 476,744 | 4,924,796 | 805,169 | 8,083,890 | ||||||||||||
Shares redeemed | (2,937,065 | ) | (30,245,073 | ) | (9,284,072 | ) | (92,009,941 | ) | ||||||||
Net increase (decrease) | 11,049,813 | $ | 112,614,885 | (724,457 | ) | $ | (5,594,162 | ) | ||||||||
Investor C1 | ||||||||||||||||
Shares sold | 5,445 | $ | 56,497 | 5,088 | $ | 51,933 | ||||||||||
Shares issued resulting from reorganization | 2,798,212 | 28,290,480 | — | — | ||||||||||||
Shares issued to shareholders in reinvestment of dividends | 102,945 | 1,062,319 | 196,503 | 1,973,965 | ||||||||||||
Shares redeemed | (677,277 | ) | (6,967,832 | ) | (1,590,814 | ) | (15,820,977 | ) | ||||||||
Net increase (decrease) | 2,229,325 | $ | 22,441,464 | (1,389,223 | ) | $ | (13,795,079 | ) | ||||||||
High Yield Municipal | ||||||||||||||||
Institutional | ||||||||||||||||
Shares sold | 3,967,422 | $ | 33,795,639 | 6,149,068 | $ | 51,299,139 | ||||||||||
Shares issued to shareholders in reinvestment of dividends | 130,086 | 1,112,610 | 233,028 | 1,943,654 | ||||||||||||
Shares redeemed | (2,177,597 | ) | (18,588,168 | ) | (4,115,993 | ) | (34,165,925 | ) | ||||||||
Net increase | 1,919,911 | $ | 16,320,081 | 2,266,103 | $ | 19,076,868 | ||||||||||
Investor A | ||||||||||||||||
Shares sold and automatic conversion of shares | 2,292,748 | $ | 19,606,340 | 2,565,047 | $ | 21,343,797 | ||||||||||
Shares issued to shareholders in reinvestment of dividends | 56,661 | 483,573 | 106,181 | 885,713 | ||||||||||||
Shares redeemed | (593,928 | ) | (5,047,363 | ) | (2,278,814 | ) | (19,113,460 | ) | ||||||||
Net increase | 1,755,481 | $ | 15,042,550 | 392,414 | $ | 3,116,050 | ||||||||||
Investor C | ||||||||||||||||
Shares sold | 616,224 | $ | 5,266,071 | 1,249,127 | $ | 10,496,942 | ||||||||||
Shares issued to shareholders in reinvestment of dividends | 39,122 | 334,535 | 63,641 | 529,304 | ||||||||||||
Shares redeemed | (302,732 | ) | (2,579,126 | ) | (881,601 | ) | (7,307,968 | ) | ||||||||
Net increase | 352,614 | $ | 3,021,480 | 431,167 | $ | 3,718,278 |
76 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
Notes to Financial Statements (concluded)
Six Months Ended December 31, 2011 | Year Ended June 30, 2011 | |||||||||||
New York Municipal | Shares | Amount | Shares | Amount | ||||||||
Institutional | ||||||||||||
Shares sold | 379,350 | $ | 3,993,853 | 891,752 | $ | 9,296,262 | ||||||
Shares issued to shareholders in reinvestment of dividends | 30,643 | 322,336 | 65,748 | 682,553 | ||||||||
Shares redeemed | (494,916 | ) | (5,214,389 | ) | (722,809 | ) | (7,399,948 | ) | ||||
Net increase (decrease) | (84,923 | ) | $ | (898,200 | ) | 234,691 | $ | 2,578,867 | ||||
Investor A | ||||||||||||
Shares sold and automatic conversion of shares | 523,520 | $ | 5,515,773 | 852,297 | $ | 9,007,593 | ||||||
Shares issued to shareholders in reinvestment of dividends | 63,340 | 666,695 | 127,802 | 1,326,522 | ||||||||
Shares redeemed | (201,380 | ) | (2,118,387 | ) | (1,108,881 | ) | (11,399,887 | ) | ||||
Net increase (decrease) | 385,480 | $ | 4,064,081 | (128,782 | ) | $ | (1,065,772 | ) | ||||
Investor A1 | ||||||||||||
Shares sold and automatic conversion of shares | 137,373 | $ | 1,440,997 | 201,631 | $ | 2,067,823 | ||||||
Shares issued to shareholders in reinvestment of dividends | 210,157 | 2,211,642 | 433,519 | 4,504,716 | ||||||||
Shares redeemed | (598,703 | ) | (6,296,024 | ) | (1,423,955 | ) | (14,617,083 | ) | ||||
Net decrease | (251,173 | ) | $ | (2,643,385 | ) | (788,805 | ) | $ | (8,044,544 | ) | ||
Investor B | ||||||||||||
Shares sold | 3,038 | $ | 31,913 | 4,881 | $ | 49,501 | ||||||
Shares issued to shareholders in reinvestment of dividends | 4,978 | 52,356 | 16,248 | 169,016 | ||||||||
Shares redeemed and automatic conversion of shares | (161,034 | ) | (1,688,640 | ) | (361,409 | ) | (3,719,896 | ) | ||||
Net decrease | (153,018 | ) | $ | (1,604,371 | ) | (340,280 | ) | $ | (3,501,379 | ) | ||
Investor C | ||||||||||||
Shares sold | 431,413 | $ | 4,546,905 | 472,359 | $ | 4,956,141 | ||||||
Shares issued to shareholders in reinvestment of dividends | 22,346 | 235,150 | 39,903 | 413,964 | ||||||||
Shares redeemed | (204,345 | ) | (2,156,289 | ) | (523,147 | ) | (5,371,233 | ) | ||||
Net increase (decrease) | 249,414 | $ | 2,625,766 | (10,885 | ) | $ | (1,128 | ) | ||||
Investor C1 | ||||||||||||
Shares sold | 22 | $ | 236 | 712 | $ | 7,180 | ||||||
Shares issued to shareholders in reinvestment of dividends | 12,661 | 133,237 | 27,481 | 285,720 | ||||||||
Shares redeemed | (9,483 | ) | (99,409 | ) | (171,218 | ) | (1,770,211 | ) | ||||
Net increase (decrease) | 3,200 | $ | 34,064 | (143,025 | ) | $ | (1,477,311 | ) |
9. Subsequent Events:
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 77 |
Robert M. Hernandez, Chairman of the Board and Director
Fred G. Weiss, Vice Chairman of the Board and Director
Paul L. Audet, President1 and Director
James H. Bodurtha, Director
Bruce R. Bond, Director
Donald W. Burton, Director
Honorable Stuart E. Eizenstat, Director
Laurence D. Fink, Director
Kenneth A. Froot, Director
Henry Gabbay, Director
John F. O’Brien, Director
Roberta Cooper Ramo, Director
David H. Walsh, Director
John M. Perlowski, President2 and Chief Executive Officer
Brendan Kyne, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer
and Anti-Money Laundering Officer
Ira P. Shapiro, Secretary
1 For BlackRock Multi-State Series Trust.
2 For BlackRock Municipal Bond Fund, Inc.
Effective September 13, 2011, Richard S. Davis resigned as Director of the Corporation and the Trust, and Paul L. Audet became Director of the Corporation and the Trust.
Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809
Sub-Advisor
BlackRock Investment Management, LLC
Princeton, NJ 08540
Custodians
The Bank of New York Mellon3
New York, NY 10286
State Street Bank and Trust Company4
Boston, MA 02110
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Wilmington, DE 19809
Accounting Agent
State Street Bank and Trust Company
Boston, MA 02110
Distributor
BlackRock Investments, LLC
New York, NY 10022
Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116
Legal Counsel
Willkie Farr & Gallagher LLP
New York, NY 10019
Address For All Funds
100 Bellevue Parkway
Wilmington, DE 19809
3 For BlackRock Municipal Bond Fund, Inc.
4 For BlackRock Multi-State Series Trust.
78 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
General Information
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available on the Funds’ websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports and prospectuses by enrolling in the Funds’ electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) | Access the BlackRock website at http://www.blackrock.com/edelivery |
2) | Select “eDelivery” under the “More Information” section |
3) | Log into your account |
Householding
The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 441-7762.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 441-7762; (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 Funds voted proxies relating to securities held in the Funds’ 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) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 79 |
Additional Information (continued)
Shareholder Privileges
Account Information
Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
80 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
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.
SEMI-ANNUAL REPORT | DECEMBER 31, 2011 | 81 |
A World-Class Mutual Fund Family
BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing.
Equity Funds | ||
BlackRock ACWI ex-US Index Fund | BlackRock Global Dynamic Equity Fund | BlackRock Mid-Cap Value Equity Portfolio |
BlackRock All-Cap Energy & Resources Portfolio | BlackRock Global Emerging Markets Fund | BlackRock Mid Cap Value Opportunities Fund |
BlackRock Asset Allocation Portfolio† | BlackRock Global Opportunities Portfolio | BlackRock Natural Resources Trust |
BlackRock Balanced Capital Fund† | BlackRock Global SmallCap Fund | BlackRock Pacific Fund |
BlackRock Basic Value Fund | BlackRock Health Sciences Opportunities Portfolio | BlackRock Russell 1000 Index Fund |
BlackRock Capital Appreciation Fund | BlackRock Index Equity Portfolio | BlackRock Science & Technology |
BlackRock China Fund | BlackRock India Fund | Opportunities Portfolio |
BlackRock Commodity Strategies Fund | BlackRock International Fund | BlackRock Small Cap Growth Equity Portfolio |
BlackRock Emerging Markets Long/Short | BlackRock International Index Fund | BlackRock Small Cap Growth Fund II |
Equity Fund | BlackRock International Opportunities Portfolio | BlackRock Small Cap Index Fund |
BlackRock Energy & Resources Portfolio | BlackRock Large Cap Core Fund | BlackRock S&P 500 Index Fund |
BlackRock Equity Dividend Fund | BlackRock Large Cap Core Plus Fund | BlackRock S&P 500 Stock Fund |
BlackRock EuroFund | BlackRock Large Cap Growth Fund | BlackRock U.S. Opportunities Portfolio |
BlackRock Focus Growth Fund | BlackRock Large Cap Value Fund | BlackRock Value Opportunities Fund |
BlackRock Global Allocation Fund† | BlackRock Latin America Fund | BlackRock World Gold Fund |
BlackRock Global Dividend Income Portfolio | BlackRock Mid-Cap Growth Equity Portfolio | |
Fixed Income Funds | ||
BlackRock Bond Index Fund | BlackRock Inflation Protected Bond Portfolio | BlackRock Strategic Income |
BlackRock Core Bond Portfolio | BlackRock International Bond Portfolio | Opportunities Portfolio |
BlackRock Emerging Market Debt Portfolio | BlackRock Long Duration Bond Portfolio | BlackRock Total Return Fund |
BlackRock Floating Rate Income Portfolio | BlackRock Low Duration Bond Portfolio | BlackRock US Government Bond Portfolio |
BlackRock Global Long/Short Credit Fund | BlackRock Multi-Asset Income Portfolio† | BlackRock World Income Fund |
BlackRock GNMA Portfolio | BlackRock Multi-Sector Bond Portfolio | US Mortgage Portfolio |
BlackRock High Yield Bond Portfolio | ||
Municipal Bond Funds | ||
BlackRock California Municipal Bond Fund | BlackRock National Municipal Fund | BlackRock Pennsylvania Municipal Bond Fund |
BlackRock High Yield Municipal Fund | BlackRock New Jersey Municipal Bond Fund | BlackRock Short-Term Municipal Fund |
BlackRock Intermediate Municipal Fund | BlackRock New York Municipal Bond Fund |
Target Risk & Target Date Funds† | ||||||
BlackRock Prepared Portfolios | BlackRock Lifecycle | Prepared Portfolios | LifePath Portfolios | LifePath Index Portfolios | ||
Conservative Prepared Portfolio | 2015 | 2035 | Retirement | 2040 | Retirement | 2040 |
Moderate Prepared Portfolio | 2020 | 2040 | 2020 | 2045 | 2020 | 2045 |
Growth Prepared Portfolio | 2025 | 2045 | 2025 | 2050 | 2025 | 2050 |
Aggressive Growth Prepared Portfolio | 2030 | 2050 | 2030 | 2055 | 2030 | 2055 |
2035 | 2035 |
† Mixed asset fund.
BlackRock mutual funds are currently distributed by BlackRock Investments, LLC. You should consider the investment objectives, risks, charges and expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at www.blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing.
82 | SEMI-ANNUAL REPORT | DECEMBER 31, 2011 |
This report is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless accompanied or preceded by the Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.
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#mbnymb-12/11-sar
Item 2 – | Code of Ethics – Not Applicable to this semi-annual report |
Item 3 – | Audit Committee Financial Expert – Not Applicable to this semi-annual report |
Item 4 – | Principal Accountant Fees and Services – Not Applicable to this semi-annual report |
Item 5 – | Audit Committee of Listed Registrants – Not Applicable |
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 |
Item 8 – | Portfolio Managers of Closed-End Management Investment Companies – Not Applicable |
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 15d-15(b) under the Securities Exchange Act of 1934, as amended. |
(b) – | There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12 – Exhibits attached hereto
(a)(1) – Code of Ethics – Not Applicable to this semi-annual report
(a)(2) – Certifications – Attached hereto
(a)(3) – Not Applicable
(b) – | Certifications – Attached hereto |
2 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Municipal Bond Fund, Inc.
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Municipal Bond Fund, Inc.
Date: March 1, 2012
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Municipal Bond Fund, Inc.
Date: March 1, 2012
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Municipal Bond Fund, Inc.
Date: March 1, 2012
3 |