UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSRS 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 Municipal Insured 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: Donald C. Burke, Chief Executive Officer, BlackRock Municipal Bond Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ, 08536. Mailing address: P.O. Box 9011, Princeton, NJ, 08543-9011 Registrant’s telephone number, including area code: (800) 441-7762 Date of fiscal year end: 06/30/2009 Date of reporting period: 12/31/2008 Item 1 – Report to Stockholders |
EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
Semi-Annual Report
DECEMBER 31, 2008 | (UNAUDITED)
BlackRock Short-Term Municipal Fund
BlackRock Municipal Insured Fund
BlackRock National Municipal Fund
BlackRock High Yield Municipal Fund
OF BLACKROCK MUNICIPAL BOND FUND, INC.
BlackRock New York Municipal Bond Fund
OF BLACKROCK MULTI-STATE MUNICIPAL SERIES TRUST
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents | ||
Page | ||
A Letter to Shareholders | 3 | |
Semi-Annual Report: | ||
Fund Summaries | 4 | |
About Fund Performance | 14 | |
The Benefits and Risks of Leveraging | 16 | |
Derivative Instruments | 16 | |
Disclosure of Expenses | 17 | |
Financial Statements: | ||
Schedules of Investments | 21 | |
Statements of Assets and Liabilities | 46 | |
Statements of Operations | 48 | |
Statements of Changes in Net Assets | 49 | |
Financial Highlights | 54 | |
Notes to Financial Statements | 79 | |
Officers and Directors | 91 | |
Additional Information | 92 | |
Mutual Fund Family | 94 |
2 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
A Letter to Shareholders
Dear Shareholder
The present time may well be remembered as one of the most tumultuous periods in financial market history. Over the past year, the bursting of the hous-
ing bubble and the resultant credit crisis swelled into an all-out global financial market meltdown that featured the collapse of storied financial firms, vola-
tile swings in the world’s financial markets and monumental government responses designed to prop up the economy and stabilize the financial system.
The US economy appeared relatively resilient through the first half of 2008, when rising food and energy prices stoked fears of inflation. The tenor
changed dramatically in the second half, as inflationary pressure subsided amid plummeting oil prices, while economic pressures escalated in the
midst of a rapid deterioration in consumer spending, employment and other key indicators. By period-end, the National Bureau of Economic Research
had confirmed what most already knew — the United States was in a recession, which officially began in December 2007. The Federal Reserve Board
(the “Fed”), after slashing interest rates aggressively in the early months of the year, resumed that rate-cutting campaign in the fall, with the final reduc-
tion in December bringing the target federal funds rate to a record low range of between zero and 0.25% . Importantly, the central bank pledged that
future policy moves to revive the global economy and financial markets would comprise primarily of nontraditional and quantitative easing measures,
such as capital injections, lending programs and government guarantees.
Against this backdrop, US equity markets experienced intense volatility, with periods of downward pressure punctuated by sharp rebounds. Declines
were significant and broad-based, though smaller cap stocks posted somewhat better relative performance. Non-US stocks started off the year stronger,
but quickly lost ground as the credit crisis revealed itself to be global in nature and as the global economy turned south. Overall, domestic equities
notched better results than non-US equities, reversing the prior years’ trend of international equity outperformance.
In fixed income markets, investors shunned risky assets and sought the safety and liquidity of US Treasury issues. Prices soared, while yields fell to
record lows, with the Treasury sector topping all other asset classes over the reporting period. Amid spillover from historic events in the financial sector,
municipals contended with fewer market participants, lack of liquidity, a challenging funding environment and a backlog of new-issue supply, all of
which contributed to the sector’s underperformance relative to taxable issues. At the same time, economic turmoil combined with dislocated credit
markets and substantial technical pressures resulted in the worst year on record for the high yield market.
In all, an investor flight to safety prevailed, as evidenced in the six- and 12-month returns of the major benchmark indexes: | ||||
Total Returns as of December 31, 2008 | 6-month | 12-month | ||
US equities (S&P 500 Index) | (28.48)% | (37.00)% | ||
Small cap US equities (Russell 2000 Index) | (26.94) | (33.79) | ||
International equities (MSCI Europe, Australasia, Far East Index) | (36.41) | (43.38) | ||
US Treasury securities (Merrill Lynch 10-Year US Treasury Index) | 17.70 | 20.06 | ||
Taxable fixed income (Barclays Capital US Aggregate Index*) | 4.07 | 5.24 | ||
Tax-exempt fixed income (Barclays Capital Municipal Bond Index*) | (2.49) | (2.47) | ||
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index*) | (25.07) | (25.88) |
* Formerly a Lehman Brothers index.
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.
Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. For our most current
views on the economy and financial markets, we invite you to visit www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with
your investments, and we look forward to continuing to serve you in the months and years ahead.
THIS PAGE NOT PART OF YOUR FUND REPORT |
3 |
Fund Summary as of December 31, 2008 BlackRock Short-Term Municipal Fund
Portfolio Management Commentary
How did the Fund perform?
•The Fund outperformed the broad-market Barclays Capital Municipal
Bond Index and its Lipper Short Municipal Debt Funds category average
for the six-month period. Fund returns trailed that of the Barclays Capital
3-Year General Obligation Bond Index.
What factors influenced performance?
•The Fund’s underperformance versus the Barclays 3-Year General
Obligation Bond Index was attributable to its shorter duration, or sensi-
tivity to interest rates. This relative duration positioning is the result of
limitations imposed by the Fund’s investment mandate. Since prices on
short-term municipals rallied dramatically over the period, the index’s
longer duration allowed it greater price appreciation. On an absolute
basis, the main detractor from performance was its underweight in the
three- to four-year portion of the municipal yield curve.
•The Fund’s conservative strategy and overweight in the front part of the
yield curve contributed to performance. Although a flight to quality drove
yields higher for virtually all asset classes except US Treasuries, the front
end of the yield curve was the best-performing segment of the municipal
market. Additionally, the high-quality bias of the Fund was a positive
contributor to performance. The Fund’s average credit quality remains in
the AA range, with overweights in pre-refunded, essential service revenue
and general obligation bonds.
Describe recent portfolio activity.
•The biggest changes during the period were also the most beneficial
to the Fund’s performance. We modestly increased duration by making
purchases in the two- to three-year portion of the yield curve, as investors
began buying that area of the curve due to extremely low money market
yields. This provided price appreciation in light of the Fed’s most recent
easing of monetary policy in December. Additionally, we continued to
maintain the Fund’s weighting of approximately 23% in pre-refunded
municipal bonds, which was the best-performing sector of the municipal
market in 2008. Pre-refunded bonds are backed by US government
securities and provide the most liquidity in a dislocated market.
Describe Fund positioning at period end.
•At period end, the Fund’s average credit quality remains at AA and
duration is slightly above-neutral at 1.6 years. The Fund continues to be
positioned for volatility and rising municipal rates. The overweight in cash
and pre-refunded securities should insulate net asset value depreciation
in these challenging market conditions. The Fund’s average credit quality
of AA also bodes well, given the impact of continued uncertainty in the
economy on lower-quality issues.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions.
These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund Profile as of December 31, 2008 | ||
Percent of | ||
Long Term | ||
Portfolio Composition | Investments | |
Other Revenue Bonds | 45% | |
General Obligation and Tax Revenue Bonds | 32 | |
Prerefunded Bonds | 23 |
Percent of | ||
Credit Quality Allocation1 | Long Term Investments | |
AAA/Aaa | 33% | |
AA/Aa | 44 | |
A/A | 15 | |
BBB/Baa | 6 | |
MIG1 | 2 | |
1 Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service | ||
(“Moody’s”) ratings. |
4 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
BlackRock Short-Term Municipal Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, 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 (bonds rated Baa or better) with a maximum maturity not
to exceed four years or in municipal notes.
3 This unmanaged Index consists of revenue bonds, prerefunded bonds, general obligation bonds and insured bonds, all of which mature
within 30 years.
4 This unmanaged Index consists of state and local government obligation bonds that mature in three – four years, rated Baa or better.
Performance Summary for the Period Ended December 31, 2008
Average Annual Total Returns5 | ||||||||||||||||
1 Year | 5 Years | 10 Years | ||||||||||||||
Standardized | 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | |||||||||
30-Day Yields | Total Returns | charge | charge | charge | charge | charge | charge | |||||||||
BlackRock | 2.07% | 2.11% | 3.75% | N/A | 2.54% | N/A | 3.03% | N/A | ||||||||
Institutional | 2.14 | 2.15 | 3.80 | N/A | 2.54 | N/A | 3.02 | N/A | ||||||||
Investor A | 1.83 | 1.92 | 3.44 | 0.34% | 2.28 | 1.66% | 2.77 | 2.45% | ||||||||
Investor A1 | 2.02 | 2.10 | 3.70 | 2.66 | 2.44 | 2.23 | 2.93 | 2.83 | ||||||||
Investor B | 1.79 | 1.97 | 3.44 | 2.44 | 2.18 | 2.18 | 2.66 | 2.66 | ||||||||
Investor C | 1.14 | 1.64 | 2.77 | 1.77 | 1.52 | 1.52 | 2.00 | 2.00 | ||||||||
Barclays Capital 3-Year | ||||||||||||||||
General Obligation | ||||||||||||||||
Bond Index | — | 3.26 | 5.27 | N/A | 3.20 | N/A | 3.98 | N/A | ||||||||
Barclays Capital Municipal | ||||||||||||||||
Bond Index | — | (2.49) | (2.47) | N/A | 2.71 | N/A | 4.26 | N/A |
5 Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on pages 14 and 15 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.
SEMI-ANNUAL REPORT DECEMBER 31, 2008 5
Fund Summary as of December 31, 2008 BlackRock Municipal Insured Fund
Portfolio Management Commentary
How did the Fund perform? •The Fund underperformed the broad-market Barclays Capital Municipal Bond Index for the six-month period. The Fund also underperformed the Lipper Insured Municipal Debt Funds category average. What factors influenced performance? •Fund performance was negatively impacted by three main factors during the period. First, the Fund was positioned with a more constructive view of the market during a period in which yields generally rose and prices, which move opposite of yields, correspondingly fell. Second, the Fund was overweight in the longer end of the yield curve during a period in which the yield curve steepened, with short yields declining and long yields rising. Third, the Fund was negatively impacted by its exposure to insured bonds with weaker underlying ratings, especially those rated A– or below. •Due to the enormous turmoil in the municipal market, especially with regard to insured bonds, our efforts to upgrade credit quality by purchas- ing favored insurers and other high-quality issuers aided performance as the spread between higher- and lower-rated debt widened. Performance was also positively impacted by our efforts to increase the Fund’s average coupon and dampen duration extension. Additionally, performance was positively impacted by our efforts to raise liquidity. |
Describe recent portfolio activity.
•We continued to focus on upgrading credit quality and increasing overall
portfolio liquidity. We also worked to increase the Fund’s average coupon
and dampen duration extension. We carefully reviewed Fund holdings
and worked to sell lower-rated issues whenever market liquidity provided
favorable opportunities. However, municipal markets were incredibly
volatile and illiquid during the period due to overall stress on Wall Street
(which caused deleveraging at these firms and at their clients) combined
with poor economics and generally declining credit quality. This lack of
market sponsorship prevented us from achieving all of our goals, and it
also worked to curtail new issuance, thereby limiting our opportunities
to restructure the Fund.
Describe Fund positioning at period end.
•At period end, the Fund is positioned with a modestly constructive view
of the market, as it is overweight in the longer part of the yield curve.
The municipal yield curve steepened over the period, and the 30-year
area now offers a yield pickup of more than 300 basis points versus the
2-year area. We are also focusing on the highest-quality insurers and
issuers to maintain high liquidity while increasing the Fund’s average
coupon. At period-end, we favor the 25-year maturity area.
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.
Fund Profile as of December 31, 2008 | ||
Percent of | ||
Long Term | ||
Portfolio Composition | Investments | |
Other Revenue Bonds | 67% | |
General Obligation and Tax Revenue Bonds | 24 | |
Prerefunded Bonds | 9 |
Percent of | ||
Credit Quality Allocation1 | Long Term Investments | |
AAA/Aaa | 40% | |
AA/Aa | 45 | |
A/A | 11 | |
BBB/Baa | 3 | |
Not Rated2 | 1 | |
1 Using the higher of S&P’s or Moody’s ratings. | ||
2 Includes investments in mutual funds. |
6 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
BlackRock Municipal Insured Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, 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 long-term, investment grade municipal bonds (bonds rated Baa or better) covered by portfolio
insurance guaranteeing the timely payment of principal at maturity and interest.
3 This unmanaged Index consists of revenue bonds, prerefunded bonds, general obligation bonds and insured bonds, all of which mature
within 30 years.
Performance Summary for the Period Ended December 31, 2008
Average Annual Total Returns4 | ||||||||||||||||
1 Year | 5 Years | 10 Years | ||||||||||||||
Standardized | 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | |||||||||
30-Day Yields | Total Returns | charge | charge | charge | charge | charge | charge | |||||||||
Institutional | 4.91% | (6.41)% | (7.27)% | N/A | 1.56% | N/A | 3.33% | N/A | ||||||||
Investor A | 4.45 | (6.40) | (7.52) | (11.45)% | 1.30 | 0.43% | 3.08 | 2.63% | ||||||||
Investor B | 4.14 | (6.65) | (7.99) | (11.52) | 0.79 | 0.46 | 2.56 | 2.56 | ||||||||
Investor C | 3.93 | (6.74) | (8.19) | (9.07) | 0.58 | 0.58 | 2.32 | 2.32 | ||||||||
Investor C1 | 4.10 | (6.67) | (8.03) | (8.91) | 0.74 | 0.74 | 2.51 | 2.51 | ||||||||
Barclays Capital Municipal | ||||||||||||||||
Bond Index | — | (2.49) | (2.47) | N/A | 2.71 | N/A | 4.26 | N/A | ||||||||
4 Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund | ||||||||||||||||
Performance” on pages 14 and 15 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. SEMI-ANNUAL REPORT DECEMBER 31, 2008 7 |
Fund Summary as of December 31, 2008 BlackRock National Municipal Fund
Portfolio Management Commentary
How did the Fund perform?
•The Fund underperformed the broad-market Barclays Capital Municipal
Bond Index for the six-month period. The Fund’s Institutional, Investor A,
Investor B and Investor C1 shares outperformed the Lipper General
Municipal Debt Funds category average, while Investor C shares trailed
the Lipper peers.
What factors influenced performance?
•The Fund’s performance relative to its Lipper category average benefited
from its slightly defensive duration, which reduced interest rate sensitivity
during a period in which yields on the long end of the municipal curve
rose. In addition, performance was helped by our reduction of the Fund’s
inverse floater exposure, as deleveraging created extreme market volatility.
Finally, the Fund’s relatively high cash equivalent reserve position provided
needed liquidity and cushioned its net asset value against volatility.
•The primary negative factor in the Fund’s performance was the widening
in credit spreads. We believe the Fund’s credits are sound, appropriate
investments, but a portion of its assets have underperformed due to
overall credit quality spread widening. This widening is a result of the
ongoing credit crunch and the ensuing investor flight to quality.
Describe recent portfolio activity.
•The Fund maintained an unusually high cash equivalent reserve position,
which provided liquidity needed to participate in attractive year-end
offerings in the primary market, as well as to handle year-end cash flow
needs. To raise cash for new purchases, we sold low duration structures
with earlier maturity dates and pre-refunded securities. In order to main-
tain the large reserve without damaging the Fund’s relative yield perform-
ance, we employed higher yielding, out-of-favor variable rate demand
notes (“VRDNs”). During the period, we reduced the Fund’s allocation to
inverse floater product.
Describe Fund positioning at period end.
•At period end, the Fund was neutral with respect to relative duration.
Cash reserves were still at a historically-high level of about 10% of
total fund assets. Inverse floater exposure was below 2%, but we are
comfortable with the financing prospects and liquidity features of those
holdings. Exposure to alternative minimum tax (“AMT”) bonds was down
slightly to about 18%. Most significantly, prices on a good portion of
the Fund’s spread product were significantly lower over the period. We
believe some performance on these holdings should be recouped if the
Federal Reserve’s efforts to stabilize fixed income markets gain traction
and spreads subsequently tighten.
•Going forward, we intend to use the heavy slate of new issuance to
recommit cash reserves to the municipal marketplace as value is
restored. As always, our focus will be on improving the Fund’s income
accrual, managing assets in a tax-efficient manner and evaluating the
risk/reward characteristics of each new holding with respect to interest
rate and credit exposure.
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.
Fund Profile as of December 31, 2008 | ||
Percent of | ||
Long Term | ||
Portfolio Composition | Investments | |
Other Revenue Bonds | 80% | |
General Obligation and Tax Revenue Bonds | 13 | |
Prerefunded Bonds | 7 |
Percent of | ||
Credit Quality Allocation1 | Long Term Investments | |
AAA/Aaa | 24% | |
AA/Aa | 25 | |
A/A | 29 | |
BBB/Baa | 8 | |
B/B | 2 | |
CCC/Caa | 1 | |
Not Rated | 11 | |
1 Using the higher of S&P’s or Moody’s ratings. |
8 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
BlackRock National Municipal Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, 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 long-term municipal bonds rated in any rating category or unrated.
3 This unmanaged Index consists of revenue bonds, prerefunded bonds, general obligation bonds and insured bonds, all of which mature
within 30 years.
Performance Summary for the Period Ended December 31, 2008
Average Annual Total Returns4 | ||||||||||||||||
1 Year | 5 Years | 10 Years | ||||||||||||||
Standardized | 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | |||||||||
30-Day Yields | Total Returns | charge | charge | charge | charge | charge | charge | |||||||||
Institutional | 5.36% | (8.01)% | (8.58)% | N/A | 1.58% | N/A | 3.46% | N/A | ||||||||
Investor A | 4.92 | (8.20) | (8.87) | (12.74)% | 1.34 | 0.46% | 3.20 | 2.75% | ||||||||
Investor B | 4.60 | (8.36) | (9.27) | (12.75) | 0.84 | 0.51 | 2.68 | 2.68 | ||||||||
Investor C | 4.38 | (8.56) | (9.59) | (10.46) | 0.55 | 0.55 | 2.42 | 2.42 | ||||||||
Investor C1 | 4.58 | (8.38) | (9.30) | (10.17) | 0.77 | 0.77 | 2.63 | 2.63 | ||||||||
Barclays Capital Municipal | ||||||||||||||||
Bond Index | — | (2.49) | (2.47) | N/A | 2.71 | N/A | 4.26 | N/A |
4 Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on pages 14 and 15 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.
SEMI-ANNUAL REPORT DECEMBER 31, 2008 9
Fund Summary as of December 31, 2008 BlackRock High Yield Municipal Fund
Portfolio Management Commentary
How did the Fund perform?
•The Fund underperformed the broad-market Barclays Capital Municipal
Bond Index and the Barclays Capital High Yield Municipal Bond Index for
the six-month period. The Fund also underperformed its Lipper High Yield
Municipal Debt Funds category average.
What factors influenced performance?
•The Fund’s performance for the period was hurt by its below-average
distribution yield in relation to its Lipper peer group, as well as its above-
average weighting in longer-dated securities. Both of these detractors
stem largely from prevailing market factors present at the time of the
Fund’s inception. At the time we were investing the Fund’s initial assets,
credit spreads were very tight and high yield municipal issuance was
confined primarily to the longer end of the maturity range. This position-
ing was a detriment to the Fund given the degree to which spreads have
subsequently widened and the yield curve has steepened.
•Factors that aided Fund performance include its higher-quality bias, and
its relatively well-diversified portfolio construction. The high-quality bias
proved somewhat beneficial as credit spreads continued to widen through
year-end, while the diversification enabled the Fund to avoid excessive
risk associated with sectors that have been hit particularly hard, such
as airlines and tobacco.
Describe recent portfolio activity.
•Given the deteriorating market tone throughout the period, Fund activity
was generally confined to moves aimed at ensuring sufficient liquidity to
meet shareholder redemptions. Nevertheless, we were able to capitalize
on a handful of investment opportunities that have proven beneficial to
Fund performance.
Describe Fund positioning at period end.
•The Fund emerges from a difficult year well-positioned to benefit from
what we believe will be a likely rebound in investor sentiment and risk
tolerance. The Fund’s duration remains marginally higher than that of its
benchmark, while its above-average credit profile should provide sufficient
liquidity to manage redemptions and capitalize on the numerous oppor-
tunities now available in the marketplace.
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.
Fund Profile as of December 31, 2008 | ||
Percent of | ||
Long Term | ||
Portfolio Composition | Investments | |
Other Revenue Bonds | 89% | |
General Obligation and Tax Revenue Bonds | 11 |
Percent of | ||
Credit Quality Allocation1 | Long Term Investments | |
AAA/Aaa | 8% | |
AA/Aa | 4 | |
A/A | 13 | |
BBB/Baa | 28 | |
BB/Ba | 6 | |
B/B | 4 | |
CCC | 6 | |
Not Rated | 31 | |
1 Using the higher of S&P’s or Moody’s ratings. |
10 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
BlackRock High Yield Municipal Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, 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 municipal bonds rated in any rating category or in unrated municipal bonds.
3 This unmanaged Index consists of revenue bonds, prerefunded bonds, general obligation bonds and insured bonds, all of which mature
within 30 years.
4 An unmanaged index made up of bonds that are non-investment grade, unrated, or rated below Ba1 with a remaining maturity of at least
one year.
5 Commencement of Operations.
Performance Summary for the Period Ended December 31, 2008
Average Annual Total Returns6 | ||||||||||||
1 Year | Since Inception7 | |||||||||||
Standardized | 6-Month | w/o sales | w/sales | w/o sales | w/sales | |||||||
30-Day Yields | Total Returns | charge | charge | charge | charge | |||||||
Institutional | 7.43% | (25.39)% | (27.36)% | N/A | (13.30)% | N/A | ||||||
Investor A | 6.80 | (25.53) | (27.58) | (30.66)% | (13.58) | (15.12)% | ||||||
Investor C | 6.36 | (25.79) | (28.10) | (28.79) | (14.15) | (14.15) | ||||||
Barclays Capital High Yield Muni Bond | — | (24.24) | (27.01) | N/A | (11.49) | N/A | ||||||
Barclays Capital Municipal | ||||||||||||
Bond Index | — | (2.49) | (2.47) | N/A | 1.67 | N/A |
6 Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on pages 14 and 15 for a detailed description of share classes, including any related sales charges and fees.
7 The Portfolio 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.
SEMI-ANNUAL REPORT DECEMBER 31, 2008 11
Fund Summary as of December 31, 2008 BlackRock New York Municipal Bond Fund
Portfolio Management Commentary
How did the Fund perform?
•The Fund underperformed the Barclays Capital Municipal Bond Index
and the Lipper New York Municipal Debt Funds category for the six-
month period. While the Barclays Index measures the performance of
municipal bonds nationally, the Lipper category consists of funds that
limit their investment to securities exempt from taxation in New York.
What factors influenced performance?
•The semiannual reporting period encompassed some of the worst
municipal performance on both a relative and absolute basis. There
were three anomalies caused by the overwhelming selling pressure in the
municipal market. The first was the trading of pre-refunded municipals,
which are backed 100% by US Treasuries, at cheaper rates than Treasuries
themselves. The second was the trading of corporate-backed municipals
at cheaper rates than fully-taxable bonds issued by the same companies.
Finally, municipals with insurance were trading at lower prices than their
non-insured counterparts.
•In this environment, the Fund’s underweights in AA-rated and AAA-rated
bonds negatively impacted performance. In the turmoil of the municipal
market over the six months, liquidity was extremely limited and spreads
increased significantly on all bonds other than the cleanest and highest-
quality issues.
•Positive contributions to performance for the period came from the
Fund’s above-average distribution rate and its neutral duration bias.
Describe recent portfolio activity.
•There were few significant changes made to the Fund during the period.
As a result of industry-wide redemptions and forced selling, combined
with little buying interest, liquidity in the market was very low and costly.
Although the Fund did not experience heavy redemptions and was not
forced to sell at the severely distressed market levels, neither was it able
to effect swaps into more attractive, higher-quality names. The Fund was
restricted to capitalizing on pockets of retail buying interest in order to
meet shareholder redemptions, as well as some limited purchases of
higher-quality credits from forced sellers.
Describe Fund positioning at period end.
•The Fund ended the period much as it began, with a short-to-neutral
duration bias and overweight exposure to lower investment-grade bonds.
This positioning, along with an above-average cash position, should allow
the Fund to benefit from any spread tightening, as well as capitalize on
the opportunities presented by the new-issue market.
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.
Fund Profile as of December 31, 2008 | ||
Percent of | ||
Portfolio Composition | Long Term Investments | |
Other Revenue Bonds | 67% | |
General Obligation and Tax Revenue Bonds | 18 | |
Prerefunded Bonds | 15 |
Percent of | ||
Credit Quality Allocation1 | Long Term Investments | |
AAA/Aaa | 10% | |
AA/Aa | 35 | |
A/A | 26 | |
BBB/Baa | 13 | |
BB/Ba | 2 | |
B/B | 1 | |
CCC/Caa | 1 | |
Not Rated | 12 | |
1 Using the higher of S&P’s or Moody’s ratings. |
12 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
BlackRock New York Municipal Bond Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge, 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 long term investment grade New York municipal bonds.
3 This unmanaged Index consists of revenue bonds, prerefunded bonds, general obligation bonds and insured bonds, all of which mature
within 30 years.
Performance Summary for the Period Ended December 31, 2008 |
Average Annual Total Returns4 | ||||||||||||||||
1 Year | 5 Years | 10 Years | ||||||||||||||
Standardized | 6-Month | w/o sales | w/sales | w/o sales | w/sales | w/o sales | w/sales | |||||||||
30-Day Yields | Total Returns | charge | charge | charge | charge | charge | charge | |||||||||
Institutional | 5.21% | (9.89)% | (11.07)% | N/A | 0.68% | N/A | 2.50% | N/A | ||||||||
Investor A | 4.73 | (10.00) | (11.20) | (14.98)% | 0.43 | (0.43)% | 2.25 | 1.81% | ||||||||
Investor A1 | 4.89 | (9.93) | (11.07) | (14.63) | 0.62 | (0.20) | 2.41 | 2.00 | ||||||||
Investor B | 4.68 | (10.03) | (11.43) | (14.83) | 0.20 | (0.13) | 1.99 | 1.99 | ||||||||
Investor C | 4.21 | (10.25) | (11.86) | (12.71) | (0.31) | (0.31) | 1.49 | 1.49 | ||||||||
Investor C1 | 4.61 | (10.16) | (11.51) | (12.36) | 0.10 | 0.10 | 1.89 | 1.89 | ||||||||
Barclays Capital Municipal | ||||||||||||||||
Bond Index | — | (2.49) | (2.47) | N/A | 2.71 | N/A | 4.26 | N/A |
4 Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on pages 14 and 15 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.
SEMI-ANNUAL REPORT DECEMBER 31, 2008 13
About Fund Performance
BlackRock Short-Term Municipal Fund
•BlackRock Shares are not subject to any sales charge. BlackRock
Shares bear no ongoing distribution or service fees and are available
only to eligible investors. Prior to October 2, 2006, BlackRock Share
performance results are those of the Institutional Shares (which have
no distribution or service fees).
•Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available
only to eligible investors.
•Investor A Shares incur a maximum initial sales charge (front-end load)
of 3% and a service fee of 0.25% per year (but no distribution fee).
Prior to October 2, 2006, 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 incur a maximum initial sales charge (front-end
load) of 1% and a service fee of 0.10% per year (but no distribution
fee).
•Investor B Shares are subject to a maximum contingent deferred sales
charge of 1% declining to 0% after three years. In addition, Investor B
Shares are subject to a distribution fee of 0.20% per year and a service
fee of 0.15% per year. These shares automatically convert to Investor A1
Shares after approximately 10 years. (There is no initial sales charge for
automatic share conversions.)
•Investor C Shares are subject to a distribution fee of 0.75% per year
and a service fee of 0.25% per year. In addition, Investor C shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase. Prior to October 2, 2006, Investor C Share perform-
ance results are those of the Institutional Shares (which have no distri-
bution or service fees) restated to reflect Investor C Share fees.
BlackRock Municipal Insured Fund and BlackRock National Municipal Fund
•Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available
only to eligible investors.
•Investor A Shares incur a maximum initial sales charge (front-end load)
of 4.25% and a service fee of 0.25% per year (but no distribution fee).
•Investor B Shares are subject to a maximum contingent deferred sales
charge of 4% declining to 0% after six years. In addition, Investor B
Shares are subject to a distribution fee of 0.50% per year and a service
fee of 0.25% per year. These shares automatically convert to Investor A
Shares after approximately 10 years. (There is no initial sales charge for
automatic share conversions.).
•Investor C Shares are subject to a distribution fee of 0.75% per year
and a service fee of 0.25% per year. In addition, Investor C shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase. Prior to October 2, 2006, Investor C Share perform-
ance results are those of the Institutional Shares (which have no distri-
bution or service fees) restated to reflect Investor C Share fees.
•Investor C1 Shares are subject to a distribution fee of 0.55% per year
and a service fee of 0.25% per year. In addition, Investor C1 shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase.
BlackRock High Yield Municipal Fund
•Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available
only to eligible investors.
•Investor A Shares incur a maximum initial sales charge (front-end load)
of 4.25% and a service fee of 0.25% per year (but no distribution fee).
•Investor C Shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. In addition, Investor C shares are subject to a 1% contingent deferred sales charge if redeemed within one year of purchase. |
14 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
About Fund Performance (concluded)
BlackRock New York Municipal Bond Fund
•Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available
only to eligible investors.
•Investor A Shares incur a maximum initial sales charge (front-end load)
of 4.25% and a service fee of 0.25% per year (but no distribution fee).
Prior to October 2, 2006, 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 incur a maximum initial sales charge (front-end
load) of 4%, and a service fee of 0.10% per year (but no distribution
fee).
•Investor B Shares are subject to a maximum contingent deferred sales
charge of 4%, declining to 0% after six years. In addition, Investor B
Shares are subject to a distribution fee of 0.25% per year and a service
fee of 0.25% per year. These shares automatically convert to Investor A1
Shares after approximately 10 years. (There is no initial sales charge for
automatic share conversions.)
•Investor C Shares are subject to a distribution fee of 0.75% per year
and a service fee of 0.25% per year. In addition, Investor C shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase. Prior to October 2, 2006, Investor C Share
performance results are those of the Institutional Shares (which have
no distribution or service fees) restated to reflect Investor C Share fees.
•Investor C1 Shares are subject to a distribution fee of 0.35% per year
and a service fee of 0.25% per year. In addition, Investor C1 Shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase.
All Funds
Performance information reflects past performance and does not guaran-
tee 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 pages 5 – 13 assume reinvest-
ment of all dividends and capital gain distributions, if any, at net asset
value on the payable date. The Funds’ investment adviser reimbursed a
portion of each Fund’s expenses. Without such reimbursement, a Fund’s
performance would have been lower. 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.
SEMI-ANNUAL REPORT DECEMBER 31, 2008 15 |
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 Fund with eco-
nomic benefits in periods of declining short-term interest rates, but
expose the Fund to risks during periods of rising short-term interest
rates. Additionally, fluctuations in the market value of municipal securities
deposited into the TOB trust may adversely affect the Funds’ NAVs per
share. In general, the concept of leveraging is based on the premise that
the cost of assets to be obtained from leverage will be based on short-
term interest rates, which normally will 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 lever-
age) are invested in higher-yielding portfolio investments, each Fund’s
shareholders will benefit from the incremental yield.
The use of leverage may enhance opportunities for increased returns
to the Fund, but as described above, they also create risks as short- or
long-term interest rates fluctuate. Leverage also will generally cause
greater changes in a Fund’s NAV, market price and dividend rate than a
comparable portfolio without leverage. If the income derived from securi-
ties purchased with assets received from leverage exceeds the cost of
leverage, the Fund’s 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, the 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. A Fund may be
required to sell portfolio securities at inopportune times or below fair
market values in order to comply with regulatory requirements applica-
ble to the use of leverage or as required by the terms of leverage instru-
ments which may cause a Fund to incur losses. The use of leverage may
limit a Fund’s ability to invest in certain types of securities or use certain
types of hedging strategies. A Fund will incur expenses in connection
with the use of leverage, all of which are borne by Fund shareholders
and may reduce investment returns.
Derivative Instruments
The Funds may invest in various derivative instruments, including futures
and swap agreements, and other instruments specified in the Notes to
Financials, which constitute forms of economic leverage. Such instru-
ments 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. Such derivative instruments involve risks, including the imperfect
correlation between the value of a derivative instrument and the under-
lying asset, possible default of the other party to the transaction and
illiquidity of the derivative instrument. A Fund’s ability to successfully
use a derivative instrument depends on the Advisor’s ability to accurately
predict pertinent market movements, which cannot be assured. The use
of derivative instruments may result in losses greater than if they had not
been used, may require a Fund to sell or purchase portfolio securities at
inopportune times or for prices other than current market values, may
limit the amount of appreciation a Fund can realize on an investment
or may cause a Fund to hold a security that it might otherwise sell. The
Funds’ investments in these instruments are discussed in detail in the
Notes to Financial Statements.
16 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Disclosure of Expenses
Shareholders of these Funds may incur the following charges: (a)
expenses related to transactions, including sales charges, redemption
fees and exchange fees; and (b) operating expenses including advisory
fees, distribution fees including 12b-1 fees, and other Fund expenses. The
expense examples on pages 17 – 20 (which are based on a hypothetical
investment of $1,000 invested on July 1, 2008 and held through
December 31, 2008) is intended to assist shareholders both in calculat-
ing expenses based on an investment in a Fund 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
share class under the heading entitled “Expenses Paid During the Period.”
The tables also provide information about hypothetical account values and
hypothetical expenses based on a 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 example 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, redemption fees or exchange fees. Therefore, the hypotheti-
cal examples are useful in comparing ongoing expenses only, and will not
help shareholders determine the relative total expenses of owning differ-
ent funds. If these transactional expenses were included, shareholder
expenses would have been higher.
BlackRock Short-Term Municipal Fund (Excluding Interest Expense and Fees) | ||||||||||||
Actual | Hypothetical2 | |||||||||||
Beginning | Ending | Beginning | Ending | |||||||||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||||||
July 1, 2008 | December 31, 2008 | During the Period1 | July 1, 2008 | December 31, 2008 | During the Period1 | |||||||
BlackRock | $1,000 | $1,021.10 | $2.20 | $1,000 | $1,023.12 | $2.20 | ||||||
Institutional | $1,000 | $1,021.50 | $1.79 | $1,000 | $1,023.53 | $1.79 | ||||||
Investor A | $1,000 | $1,019.20 | $3.07 | $1,000 | $1,022.26 | $3.07 | ||||||
Investor A1 | $1,000 | $1,021.00 | $2.30 | $1,000 | $1,023.02 | $2.31 | ||||||
Investor B | $1,000 | $1,019.70 | $3.58 | $1,000 | $1,021.75 | $3.59 | ||||||
Investor C | $1,000 | $1,016.40 | $6.90 | $1,000 | $1,018.46 | $6.91 | ||||||
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.43% for BlackRock, 0.35% for Institutional, 0.60% for Investor A, 0.45% for | ||||||||||||
Investor A1, 0.70% for Investor B and 1.35% for Investor C), multiplied by the average account value over the period, multiplied by 185/365 to reflect the one-half year | ||||||||||||
period shown. | ||||||||||||
2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365. | ||||||||||||
BlackRock Municipal Insured Fund (Including Interest Expense and Fees) | ||||||||||||
Actual | Hypothetical2 | |||||||||||
Beginning | Ending | Beginning | Ending | |||||||||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||||||
July 1, 2008 | December 31, 2008 | During the Period1 | July 1, 2008 | December 31, 2008 | During the Period1 | |||||||
Institutional | $1,000 | $935.90 | $3.78 | $1,000 | $1,021.40 | $3.94 | ||||||
Investor A | $1,000 | $936.00 | $5.05 | $1,000 | $1,020.08 | $5.27 | ||||||
Investor B | $1,000 | $933.50 | $7.55 | $1,000 | $1,017.49 | $7.87 | ||||||
Investor C | $1,000 | $932.60 | $8.62 | $1,000 | $1,016.38 | $8.99 | ||||||
Investor C1 | $1,000 | $933.30 | $7.74 | $1,000 | $1,017.29 | $8.08 | ||||||
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.77% for Institutional, 1.03% for Investor A, 1.54% for Investor B, 1.76% for | ||||||||||||
Investor C and 1.58% for Investor C1), multiplied by the average account value over the period, multiplied by 185/365 to reflect the one-half year period shown. | ||||||||||||
2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365. | ||||||||||||
BlackRock Municipal Insured Fund (Excluding Interest Expense and Fees) | ||||||||||||
Actual | Hypothetical2 | |||||||||||
Beginning | Ending | Beginning | Ending | |||||||||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||||||
July 1, 2008 | December 31, 2008 | During the Period1 | July 1, 2008 | December 31, 2008 | During the Period1 | |||||||
Institutional | $1,000 | $935.90 | $2.31 | $1,000 | $1,022.92 | $2.41 | ||||||
Investor A | $1,000 | $936.00 | $3.58 | $1,000 | $1,021.60 | $3.74 | ||||||
Investor B | $1,000 | $933.50 | $6.12 | $1,000 | $1,018.96 | $6.40 | ||||||
Investor C | $1,000 | $932.60 | $7.20 | $1,000 | $1,017.85 | $7.52 | ||||||
Investor C1 | $1,000 | $933.30 | $6.32 | $1,000 | $1,018.76 | $6.60 | ||||||
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.47% for Institutional, 0.73% for Investor A, 1.25% for Investor B, 1.47% for | ||||||||||||
Investor C and 1.29% for Investor C1), multiplied by the average account value over the period, multiplied by 185/365 to reflect the one-half year period shown. | ||||||||||||
2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365. | ||||||||||||
SEMI-ANNUAL REPORT DECEMBER 31, 2008 17
Disclosure of Expenses (continued) | ||||||||||||
BlackRock National Municipal Fund (Including Interest Expense and Fees) | ||||||||||||
Actual | Hypothetical2 | |||||||||||
Beginning | Ending | Beginning | Ending | |||||||||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||||||
July 1, 2008 | December 31, 2008 | During the Period1 | July 1, 2008 | December 31, 2008 | During the Period1 | |||||||
Institutional | $1,000 | $919.90 | $3.41 | $1,000 | $1,021.75 | $3.59 | ||||||
Investor A | $1,000 | $918.00 | $4.47 | $1,000 | $1,020.64 | $4.71 | ||||||
Investor B | $1,000 | $916.40 | $7.09 | $1,000 | $1,017.90 | $7.47 | ||||||
Investor C | $1,000 | $914.40 | $8.25 | $1,000 | $1,016.68 | $8.69 | ||||||
Investor C1 | $1,000 | $916.20 | $7.24 | $1,000 | $1,017.75 | $7.62 |
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.70% for Institutional, 0.92% for Investor A, 1.46% for Investor B, 1.70% for
Investor C and 1.49% for Investor C1), multiplied by the average account value over the period, multiplied by 185/365 to reflect the one-half year period shown.
2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.
BlackRock National Municipal Fund (Excluding Interest Expense and Fees) | ||||||||||||
Actual | Hypothetical2 | |||||||||||
Beginning | Ending | Beginning | Ending | |||||||||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||||||
July 1, 2008 | December 31, 2008 | During the Period1 | July 1, 2008 | December 31, 2008 | During the Period1 | |||||||
Institutional | $1,000 | $919.90 | $2.87 | $1,000 | $1,022.31 | $3.02 | ||||||
Investor A | $1,000 | $918.00 | $3.94 | $1,000 | $1,021.19 | $4.15 | ||||||
Investor B | $1,000 | $916.40 | $6.61 | $1,000 | $1,018.41 | $6.96 | ||||||
Investor C | $1,000 | $914.40 | $7.71 | $1,000 | $1,017.24 | $8.13 | ||||||
Investor C1 | $1,000 | $916.20 | $6.75 | $1,000 | $1,018.25 | $7.11 |
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.59% for Institutional, 0.81% for Investor A, 1.36% for Investor B, 1.59% for
Investor C and 1.39% for Investor C1), multiplied by the average account value over the period, multiplied by 185/365 to reflect the one-half year period shown.
2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.
18 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Disclosure of Expenses (continued) | ||||||||||||
BlackRock High Yield Municipal Fund (Including Interest Expense and Fees) | ||||||||||||
Actual | Hypothetical2 | |||||||||||
Beginning | Ending | Beginning | Ending | |||||||||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||||||
July 1, 2008 | December 31, 2008 | During the Period1 | July 1, 2008 | December 31, 2008 | During the Period1 | |||||||
Institutional | $1,000 | $746.10 | $3.89 | $1,000 | $1,020.84 | $4.51 | ||||||
Investor A | $1,000 | $744.70 | $4.95 | $1,000 | $1,019.62 | $5.73 | ||||||
Investor C | $1,000 | $742.10 | $8.43 | $1,000 | $1,015.62 | $9.76 |
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.89% for Institutional, 1.12% for Investor A and 1.92% for Investor C),
multiplied by the average account value over the period, multiplied by 185/365 to reflect the one-half year period shown.
2 Hypothetical 5% annual return before expenses is calculated by pro-rating the actual days in the most recent fiscal half year divided by 365.
BlackRock High Yield Municipal Fund (Excluding Interest Expense and Fees) | ||||||||||||
Actual | Hypothetical2 | |||||||||||
Beginning | Ending | Beginning | Ending | |||||||||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||||||
July 1, 2008 | December 31, 2008 | During the Period1 | July 1, 2008 | December 31, 2008 | During the Period1 | |||||||
Institutional | $1,000 | $746.10 | $3.76 | $1,000 | $1,020.99 | $4.35 | ||||||
Investor A | $1,000 | $744.70 | $4.82 | $1,000 | $1,019.78 | $5.58 | ||||||
Investor C | $1,000 | $742.10 | $8.30 | $1,000 | $1,015.77 | $9.60 |
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.85% for Institutional, 1.09% for Investor A and 1.88% for Investor C),
multiplied by the average account value over the period, multiplied by 185/365 to reflect the one-half year period shown.
2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
19 |
Disclosure of Expenses (concluded) | ||||||||||||
BlackRock New York Municipal Bond Fund (Including Interest Expense and Fees) | ||||||||||||
Actual | Hypothetical2 | |||||||||||
Beginning | Ending | Beginning | Ending | |||||||||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||||||
July 1, 2008 | December 31, 2008 | During the Period1 | July 1, 2008 | December 31, 2008 | During the Period | |||||||
Institutional | $1,000 | $901.10 | $3.61 | $1,000 | $1,021.50 | $3.84 | ||||||
Investor A | $1,000 | $900.00 | $4.91 | $1,000 | $1,020.13 | $5.22 | ||||||
Investor A1 | $1,000 | $900.70 | $4.19 | $1,000 | $1,020.89 | $4.46 | ||||||
Investor B | $1,000 | $899.70 | $6.16 | $1,000 | $1,018.81 | $6.55 | ||||||
Investor C | $1,000 | $897.50 | $8.42 | $1,000 | $1,016.43 | $8.94 | ||||||
Investor C1 | $1,000 | $898.40 | $6.54 | $1,000 | $1,018.41 | $6.96 |
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.75% for Institutional, 1.02% for Investor A, 0.87% for Investor A1, 1.28%
for Investor B, 1.75% for Investor C and 1.36% for Investor C1), multiplied by the average account value over the period, multiplied by 185/365 to reflect the one-half year
period shown.
2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.
BlackRock New York Municipal Bond Fund (Excluding Interest Expense and Fees) | ||||||||||||
Actual | Hypothetical2 | |||||||||||
Beginning | Ending | Beginning | Ending | |||||||||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | |||||||
July 1, 2008 | December 31, 2008 | During the Period1 | July 1, 2008 | December 31, 2008 | During the Period | |||||||
Institutional | $1,000 | $901.10 | $3.52 | $1,000 | $1,021.60 | $3.74 | ||||||
Investor A | $1,000 | $900.00 | $4.82 | $1,000 | $1,020.23 | $5.12 | ||||||
Investor A1 | $1,000 | $900.70 | $4.09 | $1,000 | $1,020.99 | $4.35 | ||||||
Investor B | $1,000 | $899.70 | $6.07 | $1,000 | $1,018.91 | $6.45 | ||||||
Investor C | $1,000 | $897.50 | $8.32 | $1,000 | $1,016.53 | $8.84 | ||||||
Investor C1 | $1,000 | $898.40 | $6.45 | $1,000 | $1,018.51 | $6.85 |
1 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.73% for Institutional, 1.00% for Investor A, 0.85% for Investor A1, 1.26%
for Investor B, 1.73% for Investor C and 1.34% for Investor C1), multiplied by the average account value over the period, multiplied by 185/365 to reflect the one-half year
period shown.
2 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half year divided by 365.
20 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Schedule of Investments December 31, 2008 (Unaudited) | BlackRock Short-Term Municipal Fund | |||||||||||
(Percentages shown are based on Net Assets) | ||||||||||||
Par | Par | |||||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||||
Arizona — 1.8% | Illinois — 1.5% | |||||||||||
Yavapai County, Arizona, IDA, Solid Waste Disposal | Illinois Educational Facilities Authority, Revenue | |||||||||||
Revenue Bonds (Waste Management Inc. | Refunding Bonds (University of Chicago), | |||||||||||
Project), AMT, 4%, 6/01/27 (a) | $ 7,000 | $ 6,582,100 | Series A, 5.25%, 7/01/11 (d) | $ 5,000 | $ 5,488,350 | |||||||
California — 1.5% | Indiana — 1.7% | |||||||||||
San Francisco, California, City and County, GO, | Indiana Bond Bank Revenue Bonds (State Revolving | |||||||||||
Refunding, Series R1, 5%, 6/15/11 | 5,000 | 5,335,800 | Fund), Series B, 5.30%, 8/01/10 (d) | 4,750 | 5,095,847 | |||||||
Colorado — 1.9% | Indiana Health Facilities Financing Authority Revenue | |||||||||||
Denver, Colorado, City and County Airport, Revenue | Bonds (Ascension Health Credit Group), Series A3, | |||||||||||
Refunding Bonds, AMT, Sub-Series A1, 5%, 11/15/09 | 7,000 | 7,023,310 | 5%, 11/01/27 (a) | 1,000 | 1,031,980 | |||||||
Connecticut — 1.0% | 6,127,827 | |||||||||||
Connecticut State, GO, Refunding: | Maryland — 3.4% | |||||||||||
5%, 3/15/11 | 1,445 | 1,541,078 | Maryland State, GO, Second Series: | |||||||||
Series G, 5%, 3/15/10 (b) | 2,000 | 2,092,580 | (State and Local Facilities Loan), 5%, 8/01/10 | 7,770 | 8,196,573 | |||||||
3,633,658 | (State and Local Facilities Loan of 2008), | |||||||||||
5%, 7/15/11 | 3,815 | 4,105,856 | ||||||||||
Delaware — 2.9% | ||||||||||||
Delaware State, GO, Refunding, 5%, 3/01/11 | 10,000 | 10,673,900 | 12,302,429 | |||||||||
District of Columbia — 1.3% | Massachusetts — 3.7% | |||||||||||
Metropolitan Washington Airports Authority, D.C., Airport | Massachusetts State Health and Educational Facilities | |||||||||||
System Revenue Refunding Bonds, AMT, Series A, | Authority, Revenue Refunding Bonds (Partners | |||||||||||
5%, 10/01/10 (c) | 4,665 | 4,703,766 | Healthcare System), Series C, 5.75%, 7/01/11 (d) | 7,600 | 8,401,344 | |||||||
Route 3 North Transit Improvement Association, | ||||||||||||
Florida — 7.4% | Massachusetts, Lease Revenue Bonds, | |||||||||||
Florida Hurricane Catastrophe Fund Financing | 5.625%, 6/15/10 (b)(d) | 4,640 | 4,930,139 | |||||||||
Corporation Revenue Bonds, Series A, 5%, 7/01/10 | 7,000 | 7,135,940 | ||||||||||
Florida State Turnpike Authority, Turnpike | 13,331,483 | |||||||||||
Revenue Refunding Bonds, Series A, | Michigan — 2.7% | |||||||||||
5%, 7/01/10 | 3,000 | 3,135,540 | Detroit, Michigan, Water Supply System Revenue Bonds, | |||||||||
Miami-Dade County, Florida, Educational Facilities | Second Lien, Series B, 5.50%, 7/01/11 (d)(e) | 5,000 | 5,518,850 | |||||||||
Authority Revenue Bonds (University of Miami), | Michigan State Trunk Line Fund, Revenue Refunding | |||||||||||
Series A, 5.75%, 4/01/10 (c)(d) | 2,020 | 2,153,542 | Bonds, Series B, 5%, 9/01/10 (f) | 4,120 | 4,319,284 | |||||||
Orange County, Florida, Tourist Development, Tax | 9,838,134 | |||||||||||
Revenue Bonds, 5.50%, 10/01/09 (c)(d) | 14,195 | 14,680,611 | ||||||||||
Minnesota — 1.8% | ||||||||||||
27,105,633 | Minneapolis and Saint Paul, Minnesota, Metropolitan | |||||||||||
Georgia — 1.9% | Airports Commission, Airport Revenue Bonds, AMT, | |||||||||||
Burke County, Georgia, Development Authority, PCR | Series B, 5.50%, 1/01/10 (b)(e) | 2,620 | 2,629,851 | |||||||||
(Georgia Power Company Vogtle Project), 5th Series, | Minnesota State, GO, 5%, 8/01/11 | 3,675 | 3,954,079 | |||||||||
4.375%, 10/01/32 (a) | 4,000 | 3,982,240 | 6,583,930 | |||||||||
Burke County, Georgia, Development Authority, PCR, | ||||||||||||
Refunding (Georgia Power Company Vogtle Project), | Missouri — 1.1% | |||||||||||
5.05%, 11/01/48 (a) | 3,000 | 2,983,500 | Missouri State Health and Educational Facilities | |||||||||
Authority, Revenue Refunding Bonds (Ascension | ||||||||||||
6,965,740 | Health), VRDN, Series C-5, 3.50%, 11/15/09 (a)(g) | 3,780 | 3,850,875 |
Portfolio Abbreviations | ||||||||||
To simplify the listings of portfolio holdings in the | DRIVERS | Derivative Inverse Tax-Exempt Receipts | IDB | Industrial Development Board | ||||||
Schedules of Investments, the names of many of the | EDA | Economic Development Authority | IDR | Industrial Development Revenue Bonds | ||||||
securities have been abbreviated according to the list | EDR | Economic Development Revenue Bonds | M/F | Multi-Family | ||||||
below and on the right. | GO | General Obligation Bonds | PCR | Pollution Control Revenue Bonds | ||||||
HDA | Housing Development Agency | PILOT | Payment in Lieu of Taxes | |||||||
AMT | Alternative Minimum Tax (subject to) | HFA | Housing Finance Agency | S/F | Single-Family | |||||
CABS | Capital Appreciation Bonds | IDA | Industrial Development Authority | VRDN | Variable Rate Demand Notes | |||||
COP | Certificates of Participation |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 21 |
Schedule of Investments (continued) | BlackRock Short-Term Municipal Fund | |||||||||||
(Percentages shown are based on Net Assets) | ||||||||||||
Par | Par | |||||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||||
Nebraska — 0.6% | Oregon — 0.5% | |||||||||||
Central Plains Energy Project, Nebraska, Revenue | Oregon State Department of Administrative Services, | |||||||||||
Bonds (Gas Project Number 1), VRDN, | COP, Refunding, Series A, 5%, 5/01/11 (f) | $ 1,725 | $ 1,828,017 | |||||||||
1.786%, 12/01/10 (b)(c) | $ 2,500 | $ 2,300,000 | Pennsylvania — 5.7% | |||||||||
Nevada — 0.8% | Bethlehem, Pennsylvania, Area School District, GO, | |||||||||||
Truckee Meadows, Nevada, Water Authority, Water | Refunding, Series A, 5%, 9/01/10 (b) | 4,000 | 4,154,040 | |||||||||
Revenue Bonds, Series A, 5.125%, 7/01/11 (d)(f) | 2,590 | 2,810,202 | Buck County, Pennsylvania, IDA, Solid Waste Revenue | |||||||||
New Jersey — 5.2% | Bonds (Waste Management, Inc. Project), VRDN, AMT, | |||||||||||
New Jersey Building Authority, State Building Revenue | 3.90%, 2/01/10 (a)(g) | 2,670 | 2,554,175 | |||||||||
Refunding Bonds, Series B, 5.25%, 12/15/10 (b) | 4,790 | 5,061,210 | Pennsylvania State, GO, Refunding, Third Series, | |||||||||
New Jersey State Transportation Trust Fund Authority, | 5%, 7/01/09 | 5,000 | 5,105,600 | |||||||||
Transportation System Revenue Bonds, Series A, | Pennsylvania State Higher Educational Facilities | |||||||||||
5.75%, 6/15/11 (c) | 3,000 | 3,305,250 | Authority Revenue Bonds, Series AH, 4%, 6/15/11 | 3,650 | 3,798,373 | |||||||
New Jersey State Turnpike Authority, Turnpike Revenue | University of Pittsburgh, Pennsylvania, The Commonwealth | |||||||||||
Refunding Bonds, Series A (b)(d): | System of Higher Education, Revenue Refunding Bonds | |||||||||||
5.50%, 1/01/10 | 5,000 | 5,235,150 | (Pittsburgh Asset Notes-Panthers), 5%, 8/01/10 | 5,000 | 5,236,950 | |||||||
5.75%, 1/01/10 | 5,000 | 5,247,550 | 20,849,138 | |||||||||
18,849,160 | Rhode Island — 0.3% | |||||||||||
New York — 7.6% | Rhode Island State and Providence Plantations, GO, | |||||||||||
Metropolitan Transportation Authority, New York, | Refunding (Consolidated Capital Development Loan), | |||||||||||
Dedicated Tax Fund Revenue Bonds, Series A, | 5%, 7/15/11 | 1,000 | 1,065,670 | |||||||||
5.875%, 4/01/10 (d)(e) | 5,000 | 5,299,350 | South Carolina — 0.6% | |||||||||
Metropolitan Transportation Authority, New York, | Hilton Head Island, South Carolina, Public Facility | |||||||||||
Transportation Revenue Bonds, VRDN, Series B, | Corporation, COP (Beach Preservation Fee Pledge), | |||||||||||
5%, 11/15/11 (a)(g) | 4,000 | 4,064,200 | 5%, 8/01/09 (b) | 2,240 | 2,292,842 | |||||||
New York City, New York, GO, Refunding, Series B, | Tennessee — 1.1% | |||||||||||
5.25%, 8/01/11 | 4,000 | 4,218,560 | Tennessee Energy Acquisition Corporation, Gas Revenue | |||||||||
New York State Dormitory Authority Revenue | Bonds, Series A, 5%, 9/01/09 | 4,000 | 3,918,680 | |||||||||
Refunding Bonds, Series B, 5.25%, 11/15/23 | 6,000 | 6,082,440 | ||||||||||
New York State Urban Development Corporation, | Texas — 18.5% | |||||||||||
Personal Income Tax Revenue Bonds, Series C, | Austin, Texas, Independent School District, GO, | |||||||||||
5%, 3/15/10 | 7,705 | 8,043,250 | Refunding, 5.25%, 8/01/09 | 3,980 | 4,084,754 | |||||||
Dallas, Texas, GO, 5%, 2/15/12 | 4,775 | 5,176,625 | ||||||||||
27,707,800 | Harris County, Texas, Health Facilities Development | |||||||||||
North Carolina — 1.2% | Corporation, Revenue Refunding Bonds (Saint Luke’s | |||||||||||
Mecklenburg County, North Carolina, GO, Series B, | Episcopal Hospital), Series A, 5.375%, 8/15/11 (d) | 5,500 | 5,963,815 | |||||||||
4%, 2/01/10 | 3,000 | 3,099,900 | Harris County, Texas, Toll Road Revenue Refunding | |||||||||
North Carolina, HFA, M/F Housing Revenue Bonds | Bonds, Series B-2, 5%, 8/15/21 (a)(b)(d) | 5,000 | 5,093,800 | |||||||||
(Cedar Hills Apartments LLC), VRDN, AMT, | Houston, Texas, Airport System Revenue Refunding | |||||||||||
3.70%, 1/01/38 (a)(g) | 1,240 | 1,236,875 | Bonds, Sub-Lien, Series B, 5.50%, 7/01/10 (d)(f) | 5,500 | 5,825,930 | |||||||
4,336,775 | Matagorda County, Texas, Navigation District Number 1, | |||||||||||
PCR, Refunding (AEP Texas Central Company | ||||||||||||
Ohio — 4.8% | Project), VRDN, 5.125%, 6/01/11 (a)(g) | 5,000 | 4,962,550 | |||||||||
Ohio State, Common Schools, GO, Series A, | Montgomery County, Texas, Unlimited Tax Adjustable | |||||||||||
5%, 3/15/11 | 3,875 | 4,123,969 | Rate Road, GO, Series B, 5%, 3/01/28 (f) | 5,000 | 5,000,200 | |||||||
Ohio State, Highway Capital Improvements, GO, | North Texas Tollway Authority, System Revenue | |||||||||||
Series I, 5%, 5/01/10 | 5,000 | 5,237,600 | Refunding Bonds, First Tier, VRDN, Series E-1, | |||||||||
Ohio State Water Development Authority, Pollution | 5%, 1/01/10 (a)(g) | 7,000 | 7,031,850 | |||||||||
Control Facilities, Revenue Refunding Bonds | Plano, Texas, Independent School District, GO, | |||||||||||
(FirstEnergy Nuclear Generation), VRDN, Series B, | Refunding, 5%, 2/15/11 | 5,000 | 5,310,050 | |||||||||
3.375%, 10/01/33 (a)(g) | 8,000 | 8,000,000 | San Antonio, Texas, Electric and Gas Revenue Bonds, | |||||||||
17,361,569 | Junior Lien, VRDN, 3.625%, 12/01/27 (f)(g) | 5,000 | 5,043,000 | |||||||||
Oklahoma — 1.2% | Spring, Texas, Independent School District, GO, | |||||||||||
Oklahoma Transportation Authority, Turnpike System | Series A, 5%, 8/15/29 (a)(f) | 4,000 | 4,047,480 | |||||||||
Revenue Refunding Bonds, Second Senior Series A, | Tarrant County, Texas, Cultural Education Facilities | |||||||||||
5%, 1/01/10 (c) | 4,160 | 4,330,269 | Financing Corporation, Revenue Refunding Bonds | |||||||||
(Texas Health Resources), Series A, 5%, 2/15/11 | 4,275 | 4,412,399 | ||||||||||
University of Texas, Financing System Revenue | ||||||||||||
Refunding Bonds, Series B, 5%, 8/15/10 | 5,000 | 5,262,650 | ||||||||||
67,215,103 |
See Notes to Financial Statements. 22 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Schedule of Investments (concluded) BlackRock Short-Term Municipal Fund (Percentages shown are based on Net Assets) |
Par | ||||||
Municipal Bonds | (000) | Value | ||||
Utah — 1.4% | ||||||
Intermountain Power Agency, Utah, Power | ||||||
Supply Revenue Bonds, VRDN, Series E, | ||||||
3%, 7/01/14 (a)(g) | $ 5,000 | $ 4,997,250 | ||||
Virginia — 1.3% | ||||||
Virginia State Public Building Authority, Public | ||||||
Facilities Revenue Bonds, Series C, 5%, 8/01/10 | 4,380 | 4,610,388 | ||||
Washington — 6.4% | ||||||
Energy Northwest, Washington, Electric Revenue | ||||||
Refunding Bonds (Columbia Generating Station), | ||||||
Series A, 5.25%, 7/01/09 (c) | 9,940 | 10,153,710 | ||||
Tacoma, Washington, Electric System Revenue | ||||||
Refunding Bonds, Series A, 5.625%, 1/01/11 (d)(f) | 2,900 | 3,161,174 | ||||
Washington State, GO, Refunding, Series R-A, | ||||||
5%, 1/01/11 (e) | 9,260 | 9,788,839 | ||||
23,103,723 | ||||||
Wisconsin — 2.0% | ||||||
Wisconsin Public Power Inc., Power Supply System, | ||||||
Revenue Refunding Bonds, Series A, | ||||||
5.25%, 7/01/10 (b) | 7,070 | 7,357,890 | ||||
Total Long-Term Investments | ||||||
(Cost — $341,027,891) — 94.8% | 344,481,411 | |||||
Short-Term Securities | Shares | |||||
Merrill Lynch Institutional Tax-Exempt Fund, | ||||||
1.18% (i)(j) | 35,331,546 | 35,331,546 | ||||
Total Short-Term Securities | ||||||
(Cost — $35,331,546) — 9.7% | 35,331,546 | |||||
Total Investments (Cost — $376,359,437*) — 104.5% | 379,812,957 | |||||
Liabilities in Excess of Other Assets — (4.5)% | (16,183,803) | |||||
Net Assets — 100.0% | $ 363,629,154 | |||||
* The cost and unrealized appreciation (depreciation) of investments as of | ||||||
December 31, 2008, as computed for federal income tax purposes, were | ||||||
as follows: | ||||||
Aggregate cost | $ 376,359,437 | |||||
Gross unrealized appreciation | $ 4,873,797 | |||||
Gross unrealized depreciation | (1,420,277) | |||||
Net unrealized appreciation | $ 3,453,520 | |||||
(a) Variable rate security. Rate shown is as of report date. Maturity shown is the final | ||||||
maturity date. | ||||||
(b) MBIA Insured. | ||||||
(c) AMBAC Insured. | ||||||
(d) US government securities, held in escrow, are used to pay interest on this | ||||||
security, as well as to retire the bond in full at the date indicated, typically at | ||||||
a premium to par. | ||||||
(e) FGIC Insured. | ||||||
(f) FSA Insured. | ||||||
(g) Security may have a maturity of more than one year at the time of issuance, but | ||||||
has variable rate and demand features that qualify it as a short-term security. |
(h) Security is collateralized by municipal or U.S. Treasury obligations. | ||||
(i) Investments in companies considered to be an affiliate of the Fund, for purposes | ||||
of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: | ||||
Net | ||||
Affiliate | Activity | Income | ||
Merrill Lynch Institutional Tax-Exempt Fund | 26,119,492 | $176,124 | ||
(j) Represents the current yield as of report date. | ||||
•Effective July 1, 2008, the Fund adopted Financial Accounting Standards | ||||
Board Statement of Financial Accounting Standards No. 157, “Fair Value | ||||
Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, | ||||
establishes a framework for measuring fair values and requires additional | ||||
disclosures about the use of fair value measurements. Various inputs are used | ||||
in determining the fair value of investments, which are as follows: | ||||
•Level1 — price quotations in active markets/exchanges for identical securities | ||||
•Level 2 — other observable inputs (including, but not limited to: quoted prices | ||||
for 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) | ||||
•Level3 — unobservable inputs based on the best information available in the | ||||
circumstance, to the extent observable inputs are not available (including the | ||||
Fund’s own assumption used in determining the fair value of investments) | ||||
The inputs or methodology used for valuing securities are not necessarily an indi- | ||||
cation of the risk associated with 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, 2008 in | ||||
determining the fair valuation of the Fund’s investments: | ||||
Valuation | Investments in | |||
Inputs | Securities | |||
Assets | ||||
Level 1 | $ 35,331,546 | |||
Level 2 | 344,481,411 | |||
Level 3 | — | |||
Total | $ 379,812,957 |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 23 |
Schedule of Investments December 31, 2008 (Unaudited) | BlackRock Municipal Insured Fund | |||||||||||
(Percentages shown are based on Net Assets) | ||||||||||||
Par | Par | |||||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||||
Alabama — 2.2% | California (concluded) | |||||||||||
Lauderdale County and Florence, Alabama, Health | San Jose, California, Airport Revenue Refunding | |||||||||||
Care Authority Revenue Refunding Bonds | Bonds, AMT, Series A, 5.50%, 3/01/32 (f) | $ 6,500 | $ 5,188,755 | |||||||||
(Coffee Health Group), Series A, 6%, 7/01/29 (a) | $10,000 | $ 8,225,900 | San Jose, California, GO (Libraries, Parks and Public | |||||||||
University of Alabama, University Revenue Bonds | Safety Projects), 5%, 9/01/30 (a) | 3,700 | 3,557,735 | |||||||||
(Birmingham), 6%, 10/01/09 (b)(c) | 7,000 | 7,267,750 | San Jose, California, Unified School District, Santa | |||||||||
15,493,650 | Clara County, GO (Election of 2002), Series B, | |||||||||||
5%, 8/01/29 (a)(b) | 3,650 | 3,465,420 | ||||||||||
California — 16.0% | Tahoe Truckee, California, Unified School District, GO | |||||||||||
Antelope Valley, California, Community College District, | (School Facilities Improvement District Number 2), | |||||||||||
GO (Election of 2004), Series B, 5.25%, 8/01/39 (a) | 1,050 | 1,003,537 | Series A, 5.25%, 8/01/29 (a) | 2,635 | 2,480,088 | |||||||
Arcadia, California, Unified School District, | Washington, California, Unified School District, | |||||||||||
GO (Election of 2006), CABS, Series A, | COP (New High School Project), | |||||||||||
4.96%, 8/01/39 (d)(e) | 2,800 | 387,044 | 5.125%, 8/01/37 (f) | 10,000 | 7,460,700 | |||||||
Cabrillo, California, Community College District, GO | ||||||||||||
(Election of 2004), Series B, 5.189%, 8/01/37 (a)(e) | 4,100 | 639,723 | 113,247,486 | |||||||||
California State Department of Veteran Affairs, Home | Colorado — 3.0% | |||||||||||
Purchase Revenue Refunding Bonds, Series A, | Aurora, Colorado, COP, 6%, 12/01/10 (c)(f) | 19,250 | 20,915,895 | |||||||||
5.35%, 12/01/27 (f) | 2,075 | 2,005,446 | Florida — 4.1% | |||||||||
Coast Community College District, California, GO, | Duval County, Florida, School Board, COP (Master | |||||||||||
Refunding (Election of 2002), Series C (d): | Lease Program), 5%, 7/01/33 (d) | 3,800 | 3,432,540 | |||||||||
5.499%, 8/01/13 (g) | 6,475 | 4,732,837 | Hillsborough County, Florida, Aviation Authority Revenue | |||||||||
5.395%, 8/01/36 (e) | 5,800 | 1,036,866 | Bonds, AMT, Series A, 5.375%, 10/01/33 (i) | 5,000 | 3,909,200 | |||||||
Corona-Norco, California, Unified School District, GO | Miami, Florida, Special Obligation Revenue Bonds | |||||||||||
(Election of 2006), Series A, 5%, 8/01/31 (d) | 2,000 | 1,896,240 | (Street and Sidewalk Improvement Program), | |||||||||
Fresno, California, Unified School District, GO | 5%, 1/01/37 (a) | 1,350 | 1,179,509 | |||||||||
(Election of 2001): | Miami-Dade County, Florida, Aviation Revenue | |||||||||||
Series D, 5%, 8/01/27 (a) | 5,170 | 4,780,544 | Refunding Bonds (Miami International Airport), | |||||||||
Series E, 5%, 8/01/30 (d) | 1,500 | 1,431,360 | AMT (i): | |||||||||
Hesperia, California, Public Financing Authority Revenue | 5%, 10/01/40 (h) | 9,980 | 6,866,739 | |||||||||
Bonds (Redevelopment and Housing Projects), | Series A, 5.50%, 10/01/26 | 7,000 | 5,738,460 | |||||||||
Series A, 5.50%, 9/01/27 (h) | 10,000 | 8,570,000 | Series A, 5.50%, 10/01/27 | 5,495 | 4,454,192 | |||||||
Los Angeles, California, Municipal Improvement | Miami-Dade County, Florida, School Board, COP, | |||||||||||
Corporation, Lease Revenue Bonds, Series B1, | Refunding, Series B, 5.25%, 5/01/31 (i) | 2,500 | 2,322,925 | |||||||||
4.75%, 8/01/37 (a)(b) | 12,300 | 10,137,537 | West Coast Regional Water Supply Authority, | |||||||||
Modesto, California, Schools Infrastructure Financing | Florida, Capital Improvement Revenue Bonds, | |||||||||||
Agency, Special Tax Bonds, 5.50%, 9/01/36 (f) | 8,965 | 6,236,592 | 10.40%, 10/01/10 (c)(f) | 850 | 936,794 | |||||||
Mount Diablo, California, Unified School District, GO | ||||||||||||
(Election of 2002), 5%, 7/01/27 (a)(b) | 12,040 | 11,136,037 | 28,840,359 | |||||||||
Orange County, California, Sanitation District, COP, | Georgia — 5.1% | |||||||||||
Series B, 5%, 2/01/31 (d) | 1,380 | 1,292,329 | Atlanta, Georgia, Water and Wastewater Revenue | |||||||||
Palm Springs, California, Financing Authority, Lease | Bonds, 5%, 11/01/34 (d) | 4,000 | 3,530,160 | |||||||||
Revenue Refunding Bonds (Convention Center | Georgia Municipal Electric Authority, Power Revenue | |||||||||||
Project), Series A, 5.50%, 11/01/35 (a) | 6,190 | 4,934,544 | Refunding Bonds (f): | |||||||||
Ramona, California, Unified School District, Convertible | Series EE, 7%, 1/01/25 | 20,000 | 22,570,000 | |||||||||
Capital Appreciation Refunding Bonds, COP, | Series Y, 6.40%, 1/01/11 (c) | 90 | 98,601 | |||||||||
5.081%, 5/01/32 (a)(b)(g) | 10,500 | 8,256,990 | Series Y, 6.40%, 1/01/13 | 8,420 | 9,084,759 | |||||||
Rialto, California, Unified School District, GO, Series A, | Series Y, 6.40%, 1/01/13 (j) | 490 | 543,939 | |||||||||
6.239%, 6/01/25 (a)(b)(e) | 11,685 | 4,234,177 | 35,827,459 | |||||||||
Riverside, California, Water Revenue Bonds, Series B, | ||||||||||||
5%, 10/01/38 (d) | 2,000 | 1,865,260 | Illinois — 3.7% | |||||||||
Roseville, California, Joint Union High School District, | Chicago, Illinois, O'Hare International Airport, General | |||||||||||
GO (Election of 2004), Series A, 5%, 8/01/29 (a)(b) | 5,000 | 4,735,250 | Airport Revenue Bonds, Third Lien, AMT, Series B-2, | |||||||||
Sacramento, California, Unified School District, GO | 6%, 1/01/27 (a) | 17,690 | 15,438,240 | |||||||||
(Election of 1999), Series B, 5%, 7/01/26 (a)(b) | 5,075 | 4,936,554 | Chicago, Illinois, Wastewater Transmission Revenue | |||||||||
San Diego, California, Community College District, GO | Bonds, Series A, 5.50%, 1/01/38 (k) | 3,000 | 3,019,050 | |||||||||
(Election of 2002), 5%, 5/01/30 (d) | 2,685 | 2,582,621 | Chicago, Illinois, Water Revenue Refunding Bonds, | |||||||||
San Diego County, California, Water Authority, Water | Second Lien, 5.25%, 11/01/33 (d) | 5,000 | 4,831,400 | |||||||||
Revenue Refunding Bonds, COP, Series A, | Illinois State Toll Highway Authority Revenue Bonds, | |||||||||||
5%, 5/01/33 (d) | 4,500 | 4,263,300 | Series B, 5.50%, 1/01/33 | 3,125 | 3,088,094 | |||||||
26,376,784 |
See Notes to Financial Statements. 24 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Schedule of Investments (continued) | BlackRock Municipal Insured Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
Kansas — 0.6% | Nevada — 0.2% | |||||||||
Manhattan, Kansas, Hospital Revenue Bonds | Clark County, Nevada, IDR (Southwest Gas Corporation | |||||||||
(Mercy Health Center), 5.50%, 8/15/20 (d) | $ 4,145 | $ 4,040,256 | Project), AMT (b): | |||||||
Louisiana — 0.2% | Series A, 4.75%, 9/01/36 | $ 25 | $ 12,888 | |||||||
Rapides Financing Authority, Louisiana, Revenue Bonds | Series D, 5.25%, 3/01/38 (a) | 2,200 | 1,237,588 | |||||||
(Cleco Power LLC Project), AMT, 4.70%, 11/01/36 (f) | 2,800 | 1,595,412 | 1,250,476 | |||||||
Maryland — 1.5% | New Jersey — 8.4% | |||||||||
Baltimore, Maryland, Convention Center Hotel Revenue | Cape May County, New Jersey, Industrial Pollution Control | |||||||||
Bonds, Senior Series A, 5.25%, 9/01/39 (h)(k) | 6,100 | 5,999,045 | Financing Authority, Revenue Refunding Bonds | |||||||
Maryland State Health and Higher Educational Facilities | (Atlantic City Electric Company Project), Series A, | |||||||||
Authority Revenue Bonds (University of Maryland | 6.80%, 3/01/21 (a) | 6,810 | 7,635,372 | |||||||
Medical System), Series B, 7%, 7/01/22 (a)(b) | 4,400 | 4,510,748 | Garden State Preservation Trust of New Jersey, Open | |||||||
10,509,793 | Space and Farmland Preservation Revenue Bonds, | |||||||||
Series A (d): | ||||||||||
Massachusetts — 2.5% | 5.80%, 11/01/21 | 3,125 | 3,402,812 | |||||||
Massachusetts State, HFA, Rental Housing Mortgage | 5.80%, 11/01/22 | 8,310 | 8,924,441 | |||||||
Revenue Bonds, AMT, Series C, 5.60%, 1/01/45 (d) | 4,000 | 3,267,200 | 5.80%, 11/01/23 | 4,340 | 4,639,069 | |||||
Massachusetts State, HFA, S/F Housing Revenue | New Jersey EDA, Motor Vehicle Surcharge Revenue | |||||||||
Bonds, AMT, Series 128 (d): | Bonds, Series A, 5.25%, 7/01/33 (a) | 28,000 | 26,774,160 | |||||||
4.80%, 12/01/27 | 2,845 | 2,237,137 | New Jersey State Housing and Mortgage | |||||||
4.875%, 12/01/38 | 6,955 | 5,112,829 | Finance Agency Revenue Bonds, Series AA, | |||||||
Massachusetts State School Building Authority, | 6.375%, 10/01/28 | 2,000 | 2,033,860 | |||||||
Dedicated Sales Tax Revenue Bonds, Series A, | New Jersey State Transportation Trust Fund Authority, | |||||||||
5%, 8/15/30 (d) | 7,000 | 6,836,830 | Transportation System Revenue Bonds: | |||||||
17,453,996 | Series A, 5.875%, 12/15/38 | 3,700 | 3,719,240 | |||||||
Michigan — 2.7% | Series D, 5%, 6/15/19 (d) | 2,000 | 2,080,320 | |||||||
Detroit, Michigan, Sewage Disposal System, Second | 59,209,274 | |||||||||
Lien Revenue Bonds, Series B, 5%, 7/01/36 (a)(b) | 5,000 | 4,201,250 | New Mexico — 0.7% | |||||||
Detroit, Michigan, Sewage Disposal System, Second | New Mexico Finance Authority, Senior Lien State | |||||||||
Lien Revenue Refunding Bonds, Series E, | Transportation Revenue Bonds, Series A, | |||||||||
5.75%, 7/01/31 (b)(k) | 4,000 | 4,040,800 | 5.125%, 6/15/18 (a) | 5,000 | 5,308,150 | |||||
Detroit, Michigan, Water Supply System Revenue Bonds, | ||||||||||
Senior Lien, Series A, 5%, 7/01/30 (a)(b) | 1,500 | 1,350,225 | New York — 10.4% | |||||||
Michigan State Strategic Fund, Limited Obligation | New York City, New York, City Municipal Water Finance | |||||||||
Revenue Refunding Bonds (Detroit Edison Company | Authority, Water and Sewer System Revenue Bonds, | |||||||||
Pollution Control Project), AMT, Series A, | Series A, 5.75%, 6/15/40 | 700 | 715,750 | |||||||
5.50%, 6/01/30 (h) | 11,845 | 9,423,053 | New York City, New York, GO, Series C, | |||||||
5.625%, 3/15/18 (h) | 5 | 5,337 | ||||||||
19,015,328 | New York City, New York, Sales Tax Asset Receivable | |||||||||
Minnesota — 2.1% | Corporation Revenue Bonds: | |||||||||
Delano, Minnesota, Independent School District | DRIVERS, Series 1133Z, 5.25%, 10/15/12 | 2 | 2,547 | |||||||
Number 879, GO, Series A, 5.875%, 2/01/25 (d) | 5,860 | 6,281,158 | Series A, 5%, 10/15/20 (a) | 12,555 | 13,072,140 | |||||
Sauk Rapids, Minnesota, Independent School District | Series A, 5%, 10/15/32 (f) | 15,650 | 15,018,053 | |||||||
Number 047, GO, Series A (a): | New York State Thruway Authority, General Revenue | |||||||||
5.65%, 2/01/20 | 3,735 | 3,986,440 | Refunding Bonds, Series G, 5%, 1/01/32 (d) | 16,830 | 15,822,893 | |||||
5.70%, 2/01/21 | 4,440 | 4,743,385 | New York State Urban Development Corporation, | |||||||
15,010,983 | Personal Income Tax Revenue Bonds (State | |||||||||
Facilities), Series A-1, 5.25%, 3/15/34 (a)(b) | 9,900 | 9,689,229 | ||||||||
Mississippi — 1.8% | Niagara Falls, New York, GO, Public Improvement, | |||||||||
Harrison County, Mississippi, Wastewater Management | 6.90%, 3/01/24 (a) | 5 | 4,872 | |||||||
District, Revenue Refunding Bonds (Wastewater | Tobacco Settlement Financing Corporation of New York | |||||||||
Treatment Facilities), Series A, 8.50%, 2/01/13 (b)(j) | 1,320 | 1,646,251 | Revenue Bonds, Series A-1, 5.25%, 6/01/22 (f) | 20,400 | 19,308,192 | |||||
Mississippi Hospital Equipment and Facilities Authority | ||||||||||
Revenue Bonds (Forrest County General Hospital | 73,639,013 | |||||||||
Project), 6%, 1/01/11 (c)(d) | 10,000 | 10,934,500 | North Carolina — 0.4% | |||||||
12,580,751 | North Carolina HFA, Home Ownership Revenue Bonds, | |||||||||
AMT, Series 14-A, 5.35%, 1/01/22 (f) | 2,880 | 2,632,925 | ||||||||
North Dakota — 0.3% | ||||||||||
North Dakota State, HFA, Revenue Bonds (Housing | ||||||||||
Finance Program), Series C, 5.30%, 7/01/22 (f) | 2,355 | 2,230,373 |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 25 |
Schedule of Investments (continued) | BlackRock Municipal Insured Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
Oklahoma — 0.3% | Utah — 1.7% | |||||||||
Tulsa County, Oklahoma, Home Finance Authority, | Utah Transit Authority, Sales Tax Revenue Bonds, | |||||||||
S/F Mortgage Revenue Refunding Bonds, AMT, | Series A, 5%, 6/15/36 (d) | $ 4,000 | $ 3,849,720 | |||||||
Series C, 5.25%, 12/01/38 (m) | $ 3,205 | $ 2,394,616 | Utah Transit Authority, Sales Tax Revenue Refunding | |||||||
Oregon — 2.0% | Bonds, Sub-Series A, 5.291%, 6/15/36 (a)(e) | 11,930 | 1,953,657 | |||||||
Oregon State Department of Administrative Services, | Utah Water Finance Agency Revenue Bonds (Pooled | |||||||||
COP, Series A, 6.25%, 5/01/10 (c)(f) | 8,700 | 9,332,229 | Loan Financing Program), Series A (f): | |||||||
Port of Portland, Oregon, Airport Revenue Refunding | 5.75%, 10/01/15 | 2,515 | 2,613,437 | |||||||
Bonds (Portland International Airport), AMT, | 6%, 10/01/20 | 3,770 | 3,862,252 | |||||||
Series 7-B, 7.10%, 1/01/12 (a)(c) | 3,865 | 4,421,367 | 12,279,066 | |||||||
13,753,596 | Vermont — 0.2% | |||||||||
Pennsylvania — 1.9% | Vermont HFA, Revenue Refunding Bonds, AMT, | |||||||||
Philadelphia, Pennsylvania, Gas Works Revenue Bonds, | Series C, 5.50%, 11/01/38 (d) | 1,300 | 1,061,203 | |||||||
12th Series B, 7%, 5/15/20 (a)(j) | 5,260 | 6,451,600 | Washington — 0.7% | |||||||
Philadelphia, Pennsylvania, Redevelopment Authority | Chelan County, Washington, Public Utility District | |||||||||
Revenue Bonds (Neighborhood Transformation), | Number 001, Consolidated Revenue Bonds (Chelan | |||||||||
Series A, 5.50%, 4/15/20 (a)(b) | 4,420 | 4,273,919 | Hydro System), AMT, Series A, 5.45%, 7/01/37 (f) | 6,485 | 4,923,736 | |||||
Philadelphia, Pennsylvania, School District, GO, Series E, | Wisconsin — 1.4% | |||||||||
6%, 9/01/38 | 2,300 | 2,331,763 | Superior, Wisconsin, Limited Obligation Revenue | |||||||
13,057,282 | Refunding Bonds (Midwest Energy Resources), | |||||||||
Rhode Island — 1.0% | Series E, 6.90%, 8/01/21 (a)(b) | 9,000 | 10,479,420 | |||||||
Rhode Island State Economic Development Corporation, | Total Municipal Bonds — 85.1% | 601,399,874 | ||||||||
Airport Revenue Bonds, Series B, 6%, 7/01/10 (b)(c) | 6,815 | 7,307,316 | ||||||||
South Carolina — 0.3% | ||||||||||
South Carolina State Public Service Authority, Revenue | Municipal Bonds Transferred to | |||||||||
Refunding Bonds, Series A, 5.50%, 1/01/38 | 2,300 | 2,303,496 | Tender Option Bond Trusts (n) | |||||||
Texas — 9.7% | California — 3.7% | |||||||||
Dallas-Fort Worth, Texas, International Airport Revenue | Sequoia, California, Unified High School District, GO, | |||||||||
Bonds, AMT, Series A (a): | Refunding, Series B, 5.50%, 7/01/35 (d) | 10,055 | 10,110,175 | |||||||
6%, 11/01/28 (b) | 25,950 | 22,464,655 | Tustin, California, Unified School District, Senior Lien | |||||||
5.50%, 11/01/33 | 5,000 | 3,894,200 | Special Tax Bonds (Community Facilities District | |||||||
Houston, Texas, Water Conveyance System Contract, | Number 97-1), Series A (d): | |||||||||
COP, Series J, 6.25%, 12/15/13 (f) | 3,500 | 3,714,725 | 5%, 9/01/32 | 7,980 | 7,355,725 | |||||
Lewisville, Texas, Independent School District, Capital | 5%, 9/01/38 | 9,330 | 8,412,021 | |||||||
Appreciation and School Building, GO, Refunding, | 25,877,921 | |||||||||
4.67%, 8/15/24 (a)(b)(e) | 8,110 | 3,171,091 | ||||||||
Mansfield, Texas, Independent School District, GO, | District of Columbia — 1.0% | |||||||||
5%, 2/15/33 | 3,000 | 2,946,210 | Metropolitan Washington Airports Authority, D.C., | |||||||
North Texas Tollway Authority, System Revenue | Airport Authority Revenue Bonds, AMT, Series B, | |||||||||
Refunding Bonds: | 5%, 10/01/36 (b)(d) | 10,000 | 7,322,842 | |||||||
CABS, First Tier, Series I, 6.20%, 1/01/15 (g)(i) | 10,000 | 6,190,100 | Florida — 2.6% | |||||||
First Tier, 5.75%, 1/01/40 (a) | 7,700 | 7,048,195 | Broward County Florida School Board Certificates | |||||||
First Tier, Series A, 6%, 1/01/25 | 1,000 | 977,900 | Partnership, COP, Series A, 5.25%, 7/01/33 (d) | 10,000 | 9,359,700 | |||||
First Tier, Series A, 5.625%, 1/01/33 (f) | 2,140 | 1,969,891 | Tallahassee, Florida, Energy System Revenue Bonds, | |||||||
First Tier, Series B, 5.75%, 1/01/40 (a) | 9,870 | 9,034,505 | 5%, 10/01/37 (a) | 10,000 | 9,146,700 | |||||
Texas State Department of Housing and Community | 18,506,400 | |||||||||
Affairs, S/F Mortgage Revenue Bonds, AMT, | ||||||||||
Series A (a)(l)(m): | Massachusetts — 2.1% | |||||||||
5.45%, 9/01/23 | 2,060 | 1,867,575 | Massachusetts State School Building Authority, | |||||||
5.50%, 3/01/26 | 2,645 | 2,341,063 | Dedicated Sales Tax Revenue Bonds, Series A, | |||||||
Texas State, Water Financial Assistance, GO, | 5%, 8/15/30 (d) | 15,000 | 14,650,350 | |||||||
5.75%, 8/01/31 | 3,000 | 3,041,670 | New Jersey — 1.9% | |||||||
68,661,780 | New Jersey State Turnpike Authority, Turnpike Revenue | |||||||||
Bonds, Series C, 5%, 1/01/30 (d) | 13,500 | 13,242,015 |
See Notes to Financial Statements. 26 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Schedule of Investments (concluded) BlackRock Municipal Insured Fund (Percentages shown are based on Net Assets) |
Municipal Bonds Transferred to | Par | |||||||
Tender Option Bond Trusts (n) | (000) | Value | ||||||
New York — 2.3% | ||||||||
New York City, New York, Sales Tax Asset Receivable | ||||||||
Corporation Revenue Bonds, Series A, | ||||||||
5.25%, 10/15/27 (f) | $13,925 | $ 14,055,199 | ||||||
New York State Dormitory Authority Personal | ||||||||
Income Tax Revenue Bonds, Education Series B, | ||||||||
5.75%, 3/15/36 | 2,010 | 2,062,863 | ||||||
16,118,062 | ||||||||
Texas — 1.4% | ||||||||
Cypress-Fairbanks, Texas, Independent School District, | ||||||||
GO, 5%, 02/15/32 | 10,000 | 9,851,200 | ||||||
Washington — 1.4% | ||||||||
Washington State, GO, Series D, 5%, 1/01/28 (d) | 10,000 | 9,963,600 | ||||||
Total Municipal Bonds Transferred to Tender Option | ||||||||
Bond Trusts — 16.4% | 115,532,390 | |||||||
Mutual Funds | Shares | |||||||
BlackRock Insured Municipal Term Trust, Inc. (o) | 204,800 | 2,080,768 | ||||||
Total Mutual Funds — 0.3% | 2,080,768 | |||||||
Total Long-Term Investments | ||||||||
(Cost — $773,488,713) — 101.8% | 719,013,032 | |||||||
Short-Term Securities | ||||||||
Merrill Lynch Institutional Tax-Exempt Fund, | ||||||||
1.18% (o)(p) | 20,043,986 | 20,043,986 | ||||||
Total Short-Term Securities | ||||||||
(Cost — $20,043,986) — 2.8% | 20,043,986 | |||||||
Total Investments (Cost — $793,532,699*) — 104.6% | 739,057,018 | |||||||
Other Assets Less Liabilities — 3.9% | 27,760,280 | |||||||
Liability for Trust Certificates, Including Interest | ||||||||
Expense and Fees Payable — (8.5)% | (60,352,140) | |||||||
Net Assets — 100.0% | $ 706,465,158 | |||||||
* The cost and unrealized appreciation (depreciation) of investments as of | ||||||||
December 31, 2008, as computed for federal income tax purposes, were | ||||||||
as follows: | ||||||||
Aggregate cost | $ 735,310,519 | |||||||
Gross unrealized appreciation | $ 13,784,065 | |||||||
Gross unrealized depreciation | (69,775,063) | |||||||
Net unrealized depreciation | $ (55,990,998) | |||||||
(a) | MBIA Insured. | |||||||
(b) | FGIC Insured. | |||||||
(c) | U.S. government securities, held in escrow, are used to pay interest on this | |||||||
security as well as to retire the bond in full at the date indicated, typically at | ||||||||
a premium to par. | ||||||||
(d) | FSA Insured. | |||||||
(e) | Represents a zero-coupon bond. Rate shown reflects the current yield as of | |||||||
report date. | ||||||||
(f) | AMBAC Insured. | |||||||
(g) | Represents a step bond. Rate shown reflects the current yield as of report date. |
(h) | XL Capital Insured. | |||||||||||
(i) | Assured Guaranty Insured. | |||||||||||
(j) | Security is collateralized by Municipal or US Treasury Obligations. | |||||||||||
(k) | BHAC Insured. | |||||||||||
(l) | FNMA Collateralized. | |||||||||||
(m) GNMA Collateralized. | ||||||||||||
(n) | Securities represent bonds transferred to a tender option bond 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 tender option bond trusts. | ||||||||||||
(o) | Investments in companies considered to be an affiliate of the Fund, for purposes | |||||||||||
of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: | ||||||||||||
Net Purchase | Sales | Realized | ||||||||||
Affiliate | Cost | Cost | Loss | Income | ||||||||
BlackRock California | ||||||||||||
Insured Municipal | ||||||||||||
2008 Term Trust, Inc. | — | $ (5,033,709) | $ (620,439) $199,086 | |||||||||
BlackRock Insured | ||||||||||||
Municipal 2008 | ||||||||||||
Term Trust, Inc. | — | $(13,942,110) | $(2,008,785) $439,830 | |||||||||
BlackRock Insured | ||||||||||||
Municipal Term | ||||||||||||
Trust, Inc. | — | — | — | $ 44,187 | ||||||||
Merrill Lynch Institutional | ||||||||||||
Tax-Exempt Fund | $11,396,378 | — | — | $246,454 | ||||||||
(p) | Represents the current yield as of report date. | |||||||||||
•EffectiveJuly 1, 2008, the Fund adopted Financial Accounting Standards | ||||||||||||
Board Statement of Financial Accounting Standards No. 157, “Fair Value | ||||||||||||
Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, | ||||||||||||
establishes a framework for measuring fair values and requires additional | ||||||||||||
disclosures about the use of fair value measurements. Various inputs are used | ||||||||||||
in determining the fair value of investments, which are as follows: | ||||||||||||
•Level1 — price quotations in active markets/exchanges for identical securities | ||||||||||||
•Level2— other observable inputs (including, but not limited to: quoted prices | ||||||||||||
for 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) | ||||||||||||
•Level3 — unobservable inputs based on the best information available in the | ||||||||||||
circumstance, to the extent observable inputs are not available (including the | ||||||||||||
Fund’s own assumption used in determining the fair value of investments) | ||||||||||||
The inputs or methodology used for valuing securities are not necessarily an indi- | ||||||||||||
cation of the risk associated with 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, 2008 in | ||||||||||||
determining the fair valuation of the Fund’s investments: | ||||||||||||
Valuation | Investments in | |||||||||||
Inputs | Securities | |||||||||||
Assets | ||||||||||||
Level 1 | $ 22,124,754 | |||||||||||
Level 2 | 716,932,264 | |||||||||||
Level 3 | — | |||||||||||
Total | $ 739,057,018 |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 27 |
Schedule of Investments December 31, 2008 (Unaudited) | BlackRock National Municipal Fund | |||||||||||
(Percentages shown are based on Net Assets) | ||||||||||||
Par | Par | |||||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||||
Alabama — 0.7% | Arkansas — 0.1% | |||||||||||
Alabama Incentives Financing Authority, Special | Arkansas State Student Loan Authority Revenue | |||||||||||
Obligation Revenue Refunding Bonds, Series A, | Bonds, AMT, Sub-Series B, 7.25%, 6/01/09 | $ 250 | $ 254,965 | |||||||||
6%, 10/01/29 (a) | $ 3,820 | $ 3,855,144 | Jonesboro, Arkansas, Residential Housing and Health | |||||||||
Jefferson County, Alabama, Public Building Authority, | Care Facilities Board, Hospital Revenue Refunding | |||||||||||
Lease Revenue Bonds, 5.125%, 4/01/21 (a) | 3,525 | 2,327,699 | Bonds (Saint Bernards Regional Medical Center), | |||||||||
Mobile, Alabama, Industrial Development Board, | Series B, 5.90%, 7/01/16 (a) | 120 | 120,083 | |||||||||
Environmental Improvement Revenue Refunding | Pine Bluff, Arkansas, Environmental Improvement | |||||||||||
Bonds (International Paper Company Project), AMT, | Revenue Refunding Bonds (International Paper | |||||||||||
Series A, 6.35%, 5/15/16 | 500 | 411,310 | Company Project), AMT, Series A, 6.70%, 8/01/20 | 500 | 374,945 | |||||||
Selma, Alabama, IDB, Environmental Improvement | University of Central Arkansas, Housing System | |||||||||||
Revenue Refunding Bonds (International Paper | Revenue Bonds, 6.50%, 1/01/10 (g)(i) | 250 | 268,730 | |||||||||
Company Project), AMT, Series A, 6.70%, 2/01/18 | 2,500 | 1,986,725 | 1,018,723 | |||||||||
Tuscaloosa, Alabama, Special Care Facilities | ||||||||||||
Financing Authority, Residential Care Facility | California — 17.9% | |||||||||||
Revenue Bonds (Capstone Village, Inc. Project), | Agua Caliente Band of Cahuilla Indians, California, | |||||||||||
Series A, 5.875%, 8/01/36 (b)(c) | 3,400 | 1,852,660 | Casino Revenue Bonds, 6%, 7/01/18 | 2,500 | 1,893,200 | |||||||
Antelope Valley, California, Health Care District | ||||||||||||
10,433,538 | Revenue Bonds, VRDN, Series A, 5.25%, 9/01/17 | 12,000 | 9,930,840 | |||||||||
Arizona — 3.1% | Bay Area Toll Authority, California, Toll Bridge Revenue | |||||||||||
Arizona Health Facilities Authority Revenue | Refunding Bonds (San Francisco Bay Area), | |||||||||||
Bonds (Catholic Healthcare West), Series A, | Series F, 5%, 4/01/31 | 10,000 | 9,301,300 | |||||||||
6.625%, 7/01/20 | 4,000 | 4,358,400 | California County Tobacco Securitization Agency, | |||||||||
Maricopa County and Phoenix, Arizona, IDA, | Tobacco Revenue Refunding Bonds (Sonoma | |||||||||||
S/F Mortgage Revenue Bonds, AMT, Series A-2, | County Corporation): | |||||||||||
5.80%, 7/01/40 (d)(e)(f) | 7,300 | 6,852,145 | 5%, 6/01/26 | 1,115 | 675,188 | |||||||
Maricopa County, Arizona, IDA, Education Revenue | 5.125%, 6/01/38 | 1,910 | 1,015,623 | |||||||||
Bonds (Arizona Charter Schools Project 1), | California HFA, Home Mortgage Revenue Bonds, | |||||||||||
Series A, 6.75%, 7/01/29 | 3,100 | 2,037,413 | VRDN, AMT, Series P, 8.50%, 2/01/27 (j)(k)(l) | 19,850 | 19,850,000 | |||||||
Maricopa County, Arizona, IDA, Health Facilities | California Health Facilities Financing Authority | |||||||||||
Revenue Refunding Bonds (Catholic Healthcare | Revenue Bonds (Sutter Health), Series A: | |||||||||||
West Project), Series A, 5%, 7/01/21 | 1,625 | 1,341,763 | 6.25%, 8/15/35 | 2,500 | 2,455,275 | |||||||
Peoria, Arizona, Improvement District Number 8801, | 5.25%, 11/15/46 | 7,000 | 5,756,800 | |||||||||
Special Assessment Bonds: | California Pollution Control Financing Authority, | |||||||||||
7.30%, 1/01/09 | 190 | 190,000 | Solid Waste Disposal Revenue Bonds (Waste | |||||||||
7.30%, 1/01/11 | 395 | 408,770 | Management, Inc. Project), AMT: | |||||||||
Peoria, Arizona, Improvement District Number 8802, | Series A-2, 5.40%, 4/01/25 | 9,500 | 6,134,245 | |||||||||
Special Assessment Bonds: | Series C, 5.125%, 11/01/23 | 3,250 | 2,074,247 | |||||||||
7.20%, 1/01/10 | 430 | 445,239 | California Pollution Control Financing Authority, | |||||||||
7.20%, 1/01/13 | 510 | 527,524 | Solid Waste Disposal Revenue Refunding Bonds | |||||||||
Phoenix, Arizona, IDA, Airport Facility, Revenue | (Republic Services, Inc. Project), AMT, Series C, | |||||||||||
Refunding Bonds (America West Airlines Inc. | 5.25%, 6/01/23 | 4,150 | 3,053,860 | |||||||||
Project), AMT, 6.30%, 4/01/23 | 3,685 | 2,050,113 | California Rural Home Mortgage Finance Authority, | |||||||||
Pima County, Arizona, IDA, Revenue Bonds | S/F Mortgage Revenue Refunding Bonds | |||||||||||
(Tucson Electric Power Company), Series A, | (Mortgage-Backed Securities Program), AMT, | |||||||||||
6.375%, 9/01/29 | 3,785 | 3,009,113 | Series A-2, 7%, 9/01/29 (d)(e)(f) | 40 | 40,496 | |||||||
Pinal County, Arizona, IDA, Wastewater Revenue | California State, GO, Refunding, 5.25%, 3/01/38 | 9,500 | 8,463,835 | |||||||||
Bonds (San Manuel Facilities Project), AMT, | California Statewide Communities Development | |||||||||||
6.25%, 6/01/26 | 500 | 361,535 | Authority, Health Facility Revenue Bonds (Memorial | |||||||||
Prescott Valley, Arizona, Improvement District, Special | Health Services), Series A, 6%, 10/01/23 | 9,880 | 9,378,788 | |||||||||
Assessment Bonds (Sewer Collection System | California Statewide Communities Development | |||||||||||
Roadway Repair), 7.90%, 1/01/12 | 250 | 261,205 | Authority Revenue Bonds (Catholic | |||||||||
Salt River Project, Arizona, Agriculture Improvement | Healthcare West): | |||||||||||
and Power District, Electric System Revenue Bonds, | Series B, 5.50%, 7/01/30 | 3,000 | 2,435,280 | |||||||||
Series A, 5%, 1/01/37 | 20,000 | 19,129,600 | Series D, 5.50%, 7/01/31 | 2,000 | 1,610,720 | |||||||
Tucson, Arizona, IDA, Senior Living Facilities Revenue | Chula Vista, California, Community Facilities District | |||||||||||
Bonds (Christian Care Tucson Inc. Project), | Number 06-1, Special Tax Bonds (Eastlake Woods | |||||||||||
Series A, 6.125%, 7/01/10 (g)(h) | 3,515 | 3,808,327 | Area), Series A: | |||||||||
Vistancia Community Facilities District, Arizona, GO: | 6.05%, 9/01/20 | 1,080 | 893,398 | |||||||||
6.75%, 7/15/22 | 3,000 | 2,634,750 | 6.15%, 9/01/26 | 2,965 | 2,271,042 | |||||||
5.75%, 7/15/24 | 2,125 | 1,641,180 | Chula Vista, California, IDR, Refunding (San | |||||||||
49,057,077 | Diego Gas & Electric Co.), AMT, Series C, | |||||||||||
5.25%, 12/01/27 | 10,000 | 7,845,900 | ||||||||||
See Notes to Financial Statements. |
28 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Schedule of Investments (continued) | BlackRock National Municipal Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
California (concluded) | Colorado — 1.6% | |||||||||
Desert, California, Community College District, GO, | Boulder County, Colorado, Hospital Development | |||||||||
Series C, 5%, 8/01/32 (i) | $12,070 | $ 11,383,820 | Revenue Bonds (Longmont United Hospital Project), | |||||||
Los Angeles, California, Unified School District, GO | 6%, 12/01/10 (g)(h) | $ 500 | $ 542,875 | |||||||
(Election of 2004), Series H, 5%, 7/01/32 (i) | 20,000 | 19,018,600 | Colorado HFA, Revenue Bonds (S/F Program), | |||||||
Los Angeles County, California, Metropolitan | Series B-3, 6.55%, 10/01/16 | 185 | 192,269 | |||||||
Transportation Authority, Sales Tax Revenue | Colorado HFA, Revenue Refunding Bonds | |||||||||
Refunding Bonds: | (S/F Program): | |||||||||
Proposition A, First Tier Senior-Series A, | AMT, Senior Series A-2, 7.50%, 4/01/31 | 195 | 205,208 | |||||||
5%, 7/01/35 (a) | 12,730 | 11,864,233 | AMT, Senior Series B-2, 7.10%, 4/01/17 | 70 | 72,004 | |||||
Proposition C, VRDN, Second Senior Series A, | AMT, Senior Series B-2, 7.25%, 10/01/31 | 605 | 632,648 | |||||||
7%, 7/01/20 (j)(k)(l) | 50,000 | 50,000,000 | AMT, Senior Series B-3, 6.80%, 11/01/28 | 10 | 10,209 | |||||
Metropolitan Water District of Southern California, | AMT, Senior Series C-2, 7.25%, 10/01/31 (m) | 275 | 276,633 | |||||||
Waterworks Revenue Refunding Bonds, Series B, | Senior Series A-3, 7.35%, 10/01/30 | 75 | 78,509 | |||||||
5%, 7/01/35 | 10,000 | 9,898,600 | Senior Series C-3, 6.75%, 10/01/21 (m) | 420 | 437,455 | |||||
Palomar Pomerado Health Care District, | Senior Series C-3, 7.15%, 10/01/30 (m) | 100 | 102,066 | |||||||
California, GO (Election of 2004), Series A, | Colorado Health Facilities Authority Revenue | |||||||||
5.125%, 8/01/37 (j) | 23,200 | 22,373,152 | Bonds (Catholic Health Initiatives), Series D, | |||||||
Pittsburg, California, Redevelopment Agency, Tax | 6.25%, 10/01/33 | 3,520 | 3,471,600 | |||||||
Allocation Refunding Bonds (Los Medanos | Colorado Health Facilities Authority, Revenue | |||||||||
Community Development Project), Series A, | Refunding Bonds: | |||||||||
6.50%, 9/01/28 | 10,000 | 9,428,400 | (Christian Living Communities Project), Series A, | |||||||
Poway, California, Unified School District, Special Tax | 5.75%, 1/01/37 | 1,500 | 821,340 | |||||||
Bonds (Community Facilities District Number 6), | (Poudre Valley Health Care), Series B, | |||||||||
Series A, 6.05%, 9/01/25 | 1,100 | 830,115 | 5.25%, 3/01/36 (i) | 6,065 | 4,977,424 | |||||
Riverside, California, Improvement Bond Act of 1915, | Elk Valley, Colorado, Public Improvement Revenue | |||||||||
Special Assessment (Riverwalk Assessment | Bonds (Public Improvement Fee): | |||||||||
District), 6.375%, 9/02/26 | 2,695 | 2,005,808 | Series A, 7.35%, 9/01/31 | 7,560 | 5,641,952 | |||||
Roseville, California, Special Tax Bonds: | Series B, 7.45%, 9/01/31 | 805 | 607,018 | |||||||
(Fiddyment Ranch Community Facilities | Plaza Metropolitan District Number 1, Colorado, | |||||||||
Number 1), 5.125%, 9/01/26 | 3,060 | 1,774,555 | Tax Allocation Revenue Bonds (Public | |||||||
(Stoneridge Community Facilities Number 1), | Improvement Fees): | |||||||||
6.20%, 9/01/11 (g) | 1,250 | 1,430,425 | 8%, 12/01/25 | 7,700 | 6,215,902 | |||||
(Stoneridge Community Facilities Number 1), | 8.125%, 12/01/25 | 1,910 | 1,498,128 | |||||||
6.30%, 9/01/11 (g) | 2,500 | 2,867,375 | 25,783,240 | |||||||
San Francisco, California, City and County Airport | ||||||||||
Commission, International Airport Revenue | Connecticut — 1.7% | |||||||||
Refunding Bonds, AMT: | Connecticut State Development Authority, | |||||||||
2nd Series, 6.75%, 5/01/19 | 12,600 | 12,669,426 | Governmental Lease Revenue Bonds, | |||||||
Issue 34E, Second Series, 5.75%, 5/01/21 (i) | 8,220 | 7,739,459 | 6.60%, 6/15/14 (j) | 1,000 | 1,003,310 | |||||
San Francisco, California, City and County | Connecticut State Development Authority, Water | |||||||||
Redevelopment Agency, Community Facilities | Facility Revenue Bonds (Bridgeport Hydraulic | |||||||||
District Number 6, Special Tax Bonds (Mission Bay | Company), AMT, 6.15%, 4/01/35 (a) | 1,250 | 1,063,675 | |||||||
South Public Improvements Project): | Connecticut State Development Authority, Water | |||||||||
6%, 8/01/21 | 5,000 | 3,836,600 | Facility Revenue Refunding Bonds (Aquarion Water | |||||||
Series A, 6%, 8/01/25 | 2,500 | 1,792,625 | Company Project), AMT, 5.10%, 9/01/37 (n) | 2,750 | 1,971,365 | |||||
San Francisco, California, Uptown Parking | Connecticut State, HFA, Revenue Refunding Bonds | |||||||||
Corporation, Parking Revenue Bonds (Union | (Housing Mortgage Finance Program), Series C-1, | |||||||||
Square), 6%, 7/01/20 (j) | 1,075 | 1,164,182 | 6.30%, 11/15/17 | 960 | 961,008 | |||||
Santa Clara County, California, Financing Authority, | Connecticut State Health and Educational Facilities | |||||||||
Lease Revenue Refunding Bonds, Series L, | Authority Revenue Bonds: | |||||||||
5.25%, 5/15/36 | 11,000 | 10,225,380 | (Bridgeport Hospital), Series A, | |||||||
Santa Margarita, California, Water District, Special | 6.625%, 7/01/18 (j) | 1,000 | 1,004,410 | |||||||
Tax Refunding Bonds (Community Facilities District | (Waterbury Hospital Issue), Series C, | |||||||||
Number 99), Series 1: | 5.75%, 7/01/20 (h) | 1,500 | 1,347,000 | |||||||
6.25%, 9/01/09 (g) | 2,925 | 3,080,493 | Connecticut State Health and Educational Facilities | |||||||
6.20%, 9/01/20 | 2,650 | 2,337,936 | Authority, Revenue Refunding Bonds (h): | |||||||
Southern California HFA, S/F Mortgage Revenue | (Eastern Connecticut Health Network), Series A, | |||||||||
Bonds, AMT, Series A, 5.80%, 12/01/49 (d)(e)(f) | 4,420 | 4,128,545 | 6.50%, 7/01/10 (g) | 12,045 | 13,113,272 | |||||
(Sacred Heart University), 6.625%, 7/01/26 | 640 | 598,771 | ||||||||
284,929,766 | (University of Hartford), Series E, 5.50%, 7/01/22 | 5,710 | 4,836,884 |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 29 |
Schedule of Investments (continued) | BlackRock National Municipal Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
Connecticut (concluded) | Florida (continued) | |||||||||
Connecticut State Higher Education Supplemental | Mediterra, Florida, South Community Development | |||||||||
Loan Authority, Revenue Bonds (Family Education | District, Capital Improvement Revenue Bonds, | |||||||||
Loan Program), AMT, Series A, 5.50%, 11/15/20 (j) | $ 320 | $ 300,477 | 6.85%, 5/01/31 | $ 925 | $ 702,704 | |||||
Waterbury, Connecticut, GO, 6%, 2/01/09 (g)(h) | 860 | 872,496 | Miami-Dade County, Florida, Aviation Revenue | |||||||
27,072,668 | Refunding Bonds (Miami International Airport), | |||||||||
AMT, Series A (o): | ||||||||||
District of Columbia — 0.3% | 5.50%, 10/01/24 | 5,185 | 4,340,467 | |||||||
District of Columbia, HFA, S/F Mortgage Revenue | 5.50%, 10/01/25 | 7,320 | 6,051,151 | |||||||
Bonds, AMT, Series A, 5.55%, 12/01/25 | 5,435 | 5,123,737 | Miami-Dade County, Florida, GO (Building | |||||||
Florida — 9.0% | Better Communities Program), Series B, | |||||||||
Alachua County, Florida, IDR (North Florida | 6.375%, 7/01/28 | 7,750 | 8,112,313 | |||||||
Retirement Village), Refunding, 5.875%, 11/15/36 | 2,000 | 1,143,360 | Miami-Dade County, Florida, IDA, Solid Waste | |||||||
Anthem Park Community Development District, | Disposal Revenue Bonds (Waster Management, | |||||||||
Florida, Capital Improvement Revenue Bonds, | Inc. Project), VRDN, AMT, Series 1, | |||||||||
5.80%, 5/01/36 | 1,875 | 1,053,581 | 3.50%, 12/01/18 (k)(l) | 2,000 | 1,969,760 | |||||
Ave Maria Stewardship Community District, Florida, | Miami-Dade County, Florida, Water and Sewer | |||||||||
Capital Improvement Revenue Bonds, Series A, | Revenue Refunding Bonds, Series C, | |||||||||
5.125%, 5/01/38 | 2,000 | 1,004,640 | 6%, 10/01/23 | 20,000 | 20,653,400 | |||||
Ave Maria Stewardship Community District, Florida, | Middle Village Community Development District, | |||||||||
Revenue Bonds, 4.80%, 11/01/12 | 1,500 | 1,229,400 | Florida, Special Assessment Bonds, Series A, | |||||||
Ballantrae, Florida, Community Development District, | 6%, 5/01/35 | 2,500 | 1,430,950 | |||||||
Capital Improvement Revenue Bonds, 6%, 5/01/35 | 1,615 | 1,065,868 | Midtown Miami, Florida, Community Development | |||||||
Beacon Tradeport Community, Florida, Development | District, Special Assessment Revenue Bonds, | |||||||||
District, Special Assessment Revenue Refunding | Series A, 6.25%, 5/01/37 | 6,625 | 4,109,686 | |||||||
Bonds (Commercial Project), Series A, | New River Community Development District, Florida, | |||||||||
5.25%, 5/01/16 (h) | 1,670 | 1,520,769 | Capital Improvement Revenue Bonds, Series B, | |||||||
Capital Region Community Development District, | 5%, 5/01/13 | 1,000 | 400,000 | |||||||
Florida, Special Assessment Revenue Bonds, | Orange County, Florida, HFA, M/F Housing | |||||||||
Series A, 7%, 5/01/39 | 1,065 | 662,057 | Revenue Bonds (Loma Vista Project), Series G, | |||||||
Fiddlers Creek, Florida, Community Development | 5.50%, 3/01/32 | 3,500 | 2,944,095 | |||||||
District Number 2, Special Assessment | Orange County, Florida, Health Facilities Authority, | |||||||||
Revenue Bonds: | Hospital Revenue Bonds (Orlando Regional | |||||||||
Series A, 6.375%, 5/01/35 | 5,350 | 3,415,333 | Healthcare), 5.70%, 7/01/26 | 1,000 | 635,600 | |||||
Series B, 5.75%, 5/01/13 | 555 | 488,644 | Panther Trace Community Development District II, | |||||||
Florida Housing Finance Corporation, Homeowner | Florida, Special Assessment Revenue Bonds: | |||||||||
Mortgage Revenue Bonds, AMT, Series 1, | 5.125%, 11/01/13 | 9,885 | 5,930,901 | |||||||
6%, 7/01/39 (d)(e)(f) | 1,850 | 1,628,592 | Series A, 5.60%, 5/01/35 | 4,900 | 2,780,603 | |||||
Halifax Hospital Medical Center, Florida, Hospital | Park Place Community Development District, | |||||||||
Revenue Refunding and Improvement Bonds, | Florida, Special Assessment Revenue Bonds: | |||||||||
Series A, 5.25%, 6/01/26 | 5,500 | 3,447,950 | 6.75%, 5/01/10 (g) | 920 | 990,886 | |||||
Highland Meadows Community Development District, | 6.375%, 5/01/34 | 2,300 | 1,470,620 | |||||||
Florida, Special Assessment Bonds, Series A, | Port St. Lucie, Florida, Utility Revenue Bonds, | |||||||||
5.50%, 5/01/36 | 1,115 | 535,824 | 5.125%, 9/01/36 (j) | 19,465 | 18,067,608 | |||||
Hillsborough County, Florida, IDA, Exempt Facilities | Saint Lucie, Florida, West Services District, | |||||||||
Revenue Bonds (National Gypsum Company), AMT, | Utility Revenue Refunding Bonds, Senior Lien, | |||||||||
Series A, 7.125%, 4/01/30 | 5,000 | 2,649,500 | 6%, 10/01/22 (j) | 2,000 | 2,074,360 | |||||
Hillsborough County, Florida, IDA, Hospital Revenue | Sarasota County, Florida, Health Facilities Authority, | |||||||||
Bonds (Tampa General Hospital Project), | Retirement Facility Revenue Refunding Bonds | |||||||||
5.25%, 10/01/41 | 16,845 | 10,939,648 | (Village on the Isle Project): | |||||||
Jacksonville Electric Authority, Florida, Bulk Power | 5.50%, 1/01/27 | 780 | 464,030 | |||||||
Supply System Revenue Bonds (Scherer 4 | 5.50%, 1/01/32 | 1,645 | 890,060 | |||||||
Project), Series A, 6%, 10/01/37 | 8,225 | 8,372,063 | Somerset Community Development District, | |||||||
Lee County, Florida, Airport Revenue Bonds, AMT, | Florida, Capital Improvement Revenue Bonds, | |||||||||
Series A, 6%, 10/01/29 (i) | 14,000 | 12,284,160 | 5%, 5/01/15 | 1,265 | 936,796 | |||||
Lee County, Florida, IDA, Health Care Facilities, | Sterling Hill Community Development District, | |||||||||
Revenue Refunding Bonds (Shell Point/Alliance | Florida, Capital Improvement Revenue Refunding | |||||||||
Obligor Group), 5%, 11/15/29 | 2,000 | 1,153,160 | Bonds, Series B, 5.50%, 11/01/10 | 175 | 167,797 | |||||
Lexington Oaks, Florida, Community Development | Suncoast Community Development District, | |||||||||
District, Special Assessment Revenue Bonds, | Florida, Capital Improvement Revenue Bonds, | |||||||||
Series A, 6.70%, 5/01/33 | 1,075 | 857,012 | Series A, 5.875%, 5/01/34 | 2,585 | 1,683,455 |
See Notes to Financial Statements. 30 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Schedule of Investments (continued) | BlackRock National Municipal Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
Florida (concluded) | Illinois (concluded) | |||||||||
Tern Bay Community Development District, | Illinois State Finance Authority Revenue Bonds: | |||||||||
Florida, Capital Improvement Revenue Refunding | (Advocate Health Care Network), Series D, | |||||||||
Bonds, Series B, 5%, 5/01/15 (b)(c) | $ 1,190 | $ 416,500 | 6.50%, 11/01/38 | $ 5,700 | $ 5,618,091 | |||||
Tolomato Community Development District, | (Friendship Village of Schaumburg), Series A, | |||||||||
Florida, Special Assessment Bonds, | 5.625%, 2/15/37 | 1,750 | 932,768 | |||||||
6.45%, 5/01/23 | 3,000 | 1,986,030 | (Landing At Plymouth Place Project), Series A, | |||||||
Watergrass Community Development District, | 6%, 5/15/37 | 2,155 | 1,244,146 | |||||||
Florida, Special Assessment Revenue Bonds, | (University of Chicago), Series B, 6.25%, 7/01/38 | 20,000 | 21,419,400 | |||||||
Series B, 4.875%, 11/01/10 | 1,255 | 691,907 | Illinois State Finance Authority, Revenue Refunding | |||||||
143,353,240 | Bonds (Sherman Health System Project), Series A, | |||||||||
5.50%, 8/01/37 | 3,500 | 2,261,000 | ||||||||
Georgia — 2.0% | Illinois State, GO, 1st Series (j): | |||||||||
Atlanta, Georgia, Airport Passenger Facility Charge | 5.75%, 12/01/15 | 8,890 | 9,325,166 | |||||||
and Subordinate Lien General Revenue Refunding | 5.75%, 12/01/16 | 3,745 | 3,928,318 | |||||||
Bonds, Series C, 5%, 1/01/33 (i) | 16,500 | 14,684,010 | 5.75%, 12/01/17 | 4,000 | 4,195,800 | |||||
Fulton County, Georgia, Residential Care Facilities, | Illinois State, Sales Tax Revenue Bonds, 6%, 6/15/20 | 3,000 | 3,140,340 | |||||||
Revenue Refunding Bonds (Canterbury Court | Illinois State, Sales Tax Revenue Refunding Bonds, | |||||||||
Project), Series A, 6%, 2/15/22 | 2,250 | 1,632,442 | Series Q, 6%, 6/15/09 | 795 | 806,726 | |||||
Gainesville, Georgia, Redevelopment Authority, | Village of Wheeling, Illinois, Revenue Bonds (North | |||||||||
Educational Facilities Revenue Refunding Bonds | Milwaukee/Lake-Cook Tax Increment Financing (TIF) | |||||||||
(Riverside Military Academy): | Redevelopment Project), 6%, 1/01/25 | 1,585 | 1,042,312 | |||||||
5.125%, 3/01/27 | 2,460 | 1,479,075 | ||||||||
5.125%, 3/01/37 | 1,800 | 898,398 | 110,384,141 | |||||||
Municipal Electric Authority of Georgia, Revenue | Indiana — 0.1% | |||||||||
Refunding Bonds (General Resolution Projects), | Jasper County, Indiana, PCR, Refunding | |||||||||
Sub-Series D, 6%, 1/01/23 | 10,000 | 10,448,900 | (Northern Indiana Public Service), Series C, | |||||||
Rockdale County, Georgia, Development Authority | 5.85%, 4/01/19 (j) | 2,000 | 1,861,140 | |||||||
Revenue Bonds (Visy Paper Project), AMT, Series A, | Iowa — 0.3% | |||||||||
6.125%, 1/01/34 | 5,000 | 3,106,200 | Iowa Finance Authority, Health Care Facilities, | |||||||
32,249,025 | Revenue Refunding Bonds (Care Initiatives Project), | |||||||||
Illinois — 6.9% | 9.25%, 7/01/11 (g) | 3,775 | 4,527,697 | |||||||
Bolingbrook, Illinois, Special Services Area | Kansas — 0.2% | |||||||||
Number 1, Special Tax Bonds (Forest City Project), | Sedgwick and Shawnee Counties, Kansas, | |||||||||
5.90%, 3/01/27 | 1,000 | 673,630 | S/F Revenue Bonds, AMT, Series A-1, | |||||||
Chicago, Illinois, Motor Fuel Tax Revenue Bonds, | 6.95%, 6/01/29 (f) | 1,050 | 1,105,713 | |||||||
Series A, 5%, 1/01/38 (o) | 11,000 | 10,117,910 | Wichita, Kansas, Hospital Facilities Revenue | |||||||
Chicago, Illinois, O’Hare International Airport, General | Refunding and Improvement Bonds, Series III, | |||||||||
Airport Revenue Bonds, Third Lien, AMT, Series B-2, | 6.25%, 11/15/19 | 2,500 | 2,493,925 | |||||||
6%, 1/01/29 (n) | 20,000 | 17,287,200 | 3,599,638 | |||||||
Chicago, Illinois, S/F Mortgage Revenue Bonds, AMT, | ||||||||||
Series A, 7.15%, 9/01/31 (d)(e)(f) | 235 | 241,561 | Louisiana — 0.5% | |||||||
Chicago, Illinois, Special Assessment Bonds (Lake | Louisiana HFA, S/F Mortgage Revenue Bonds, AMT, | |||||||||
Shore East), 6.75%, 12/01/32 | 2,000 | 1,292,540 | Series D-2, 5.80%, 6/01/20 (e)(f) | 245 | 243,814 | |||||
Chicago, Illinois, Transit Authority, Capital Grant | Louisiana Local Government Environmental Facilities | |||||||||
Receipts Revenue Bonds (Federal Transit | and Community Development Authority, Revenue | |||||||||
Administration Section 5309 Formula Funds), | Bonds (Capital Projects and Equipment Acquisition | |||||||||
Series A, 6%, 6/01/26 (o) | 12,425 | 13,246,417 | Program), Series A, 6.30%, 7/01/30 (a) | 7,000 | 5,636,400 | |||||
Chicago, Illinois, Wastewater Transmission Revenue | Rapides Finance Authority, Louisiana, Environmental | |||||||||
Bonds, Series A, 5.375%, 1/01/32 (p) | 1,500 | 1,503,720 | Improvement Revenue Bonds (International Paper | |||||||
Cicero, Illinois, GO, Refunding (Corporate Purpose), | Company Project), AMT, Series A, 6.55%, 11/15/23 | 2,000 | 1,372,940 | |||||||
6%, 12/01/28 (j) | 1,450 | 1,459,135 | 7,253,154 | |||||||
Hodgkins, Illinois, Environmental Improvement | Maryland — 0.3% | |||||||||
Revenue Bonds (Metro Biosolids Management LLC | Anne Arundel County, Maryland, Special Obligation | |||||||||
Project), AMT, 6%, 11/01/23 | 10,000 | 7,835,400 | Revenue Bonds (Arundel Mills Project), | |||||||
Illinois Development Finance Authority Revenue | 7.10%, 7/01/09 (g) | 500 | 523,020 | |||||||
Bonds (Community Rehabilitation Providers | Maryland State Community Development | |||||||||
Facilities), Series A, 6.50%, 7/01/22 | 3,140 | 2,812,561 | Administration, Department of Housing and | |||||||
Community Development, Housing Revenue | ||||||||||
Bonds, AMT, Series B, 6.15%, 1/01/21 | 1,000 | 997,320 |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 31 |
Schedule of Investments (continued) | BlackRock National Municipal Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
Maryland (concluded) | Minnesota — 0.8% | |||||||||
Maryland State Community Development | Eden Prairie, Minnesota, M/F Housing Revenue | |||||||||
Administration, Department of Housing and | Bonds (Rolling Hills Project), Series A, | |||||||||
Community Development Revenue Bonds | 6.15%, 8/20/31 (f) | $ 1,000 | $ 1,001,120 | |||||||
(Waters Landing II Apartments), AMT, Series A, | Minneapolis and Saint Paul, Minnesota, Metropolitan | |||||||||
5.875%, 8/01/33 | $ 1,000 | $ 970,130 | Airports Commission, Airport Revenue Bonds, AMT, | |||||||
Maryland State Health and Higher Educational | Sub-Series D (j)(q): | |||||||||
Facilities Authority Revenue Bonds (King | 5.75%, 1/01/12 | 470 | 470,964 | |||||||
Farm Presbyterian Community), Series B, | 5.75%, 1/01/14 | 470 | 467,387 | |||||||
5%, 1/01/17 | 3,200 | 2,354,496 | 5.75%, 1/01/15 | 2,060 | 2,037,422 | |||||
4,844,966 | Minneapolis, Minnesota, Health Care System | |||||||||
Revenue Refunding Bonds (Fairview Health | ||||||||||
Massachusetts — 2.2% | Services), Series A, 6.75%, 11/15/32 | 4,800 | 4,743,456 | |||||||
Massachusetts Educational Financing Authority, | Ramsey County, Minnesota, Housing and | |||||||||
Education Loan Revenue Refunding Bonds, | Redevelopment Authority, M/F Housing Revenue | |||||||||
AMT, Issue E, 5.85%, 7/01/14 (a) | 145 | 144,730 | Bonds (Hanover Townhouses Project), AMT, | |||||||
Massachusetts State Development Finance | 6%, 7/01/31 | 1,110 | 987,445 | |||||||
Agency Revenue Bonds (Linden Ponds, Inc. | Saint Cloud, Minnesota, Health Care Revenue | |||||||||
Project), Series A, 5.50%, 11/15/27 | 3,000 | 1,609,830 | Refunding Bonds (Saint Cloud Hospital Obligation | |||||||
Massachusetts State, HFA, M/F Housing Revenue | Group), Series A, 6.25%, 5/01/20 (i) | 1,000 | 1,018,430 | |||||||
Bonds, Series B, 7%, 12/01/38 | 5,000 | 5,125,200 | Waconia, Minnesota, Health Care Facilities Revenue | |||||||
Massachusetts State Health and Educational | Bonds (Ridgeview Medical Center Project), | |||||||||
Facilities Authority Revenue Bonds (Medical | Series A, 6.125%, 1/01/10 (g)(h) | 1,500 | 1,569,375 | |||||||
Center of Central Massachusetts), | ||||||||||
6.55%, 6/23/22 (a) | 6,700 | 6,702,211 | 12,295,599 | |||||||
Massachusetts State School Building Authority, | Mississippi — 0.3% | |||||||||
Dedicated Sales Tax Revenue Bonds, Series A, | Mississippi Home Corporation, S/F Mortgage | |||||||||
5%, 8/15/37 (a) | 20,700 | 19,672,452 | Revenue Bonds, Series A-1, | |||||||
Massachusetts State Water Pollution Abatement | 5.50%, 6/01/38 (d)(e)(f) | 3,755 | 3,779,896 | |||||||
Trust, Water Abatement Revenue Bonds, | Warren County, Mississippi, Environmental | |||||||||
Series A, 6.375%, 2/01/15 | 130 | 130,517 | Improvement Revenue Refunding Bonds | |||||||
Montachusett, Massachusetts, Regional | (International Paper Company Project), AMT, | |||||||||
Vocational Technical School District, GO, | Series B, 6.75%, 8/01/21 | 1,700 | 1,251,132 | |||||||
5.95%, 1/15/10 (g)(j) | 1,600 | 1,697,232 | 5,031,028 | |||||||
35,082,172 | Missouri — 0.1% | |||||||||
Michigan — 1.1% | Fenton, Missouri, Tax Increment Revenue Refunding | |||||||||
Dickinson County, Michigan, Economic | and Improvement Bonds (Gravois Bluffs | |||||||||
Development Corporation, Environmental | Redevelopment Project), 5%, 4/01/14 | 1,000 | 984,980 | |||||||
Improvement Revenue Refunding Bonds | Kansas City, Missouri, IDA, First Mortgage Health | |||||||||
(International Paper Company Project), Series A, | Facilities Revenue Bonds (Bishop Spencer Place), | |||||||||
5.75%, 6/01/16 | 500 | 411,260 | Series A, 6.50%, 1/01/35 | 1,500 | 957,570 | |||||
Eastern Michigan University, General Revenue | Missouri State Housing Development Commission, | |||||||||
Refunding Bonds, 6%, 6/01/24 (a) | 415 | 420,399 | S/F Mortgage Revenue Bonds (Homeownership | |||||||
Flint, Michigan, Hospital Building Authority, | Loan Program), AMT, Series E-1, | |||||||||
Revenue Refunding Bonds (Hurley Medical | 5.60%, 3/01/37 (e)(f) | 190 | 181,169 | |||||||
Center), 6%, 7/01/20 | 3,000 | 2,257,680 | 2,123,719 | |||||||
Hartland, Michigan, Consolidated School | ||||||||||
District, GO, Refunding, 5.125%, 5/01/29 | 7,000 | 6,805,680 | Montana — 0.5% | |||||||
Michigan State Building Authority, Revenue | Montana State Board of Housing, S/F Mortgage | |||||||||
Refunding Bonds (Facilities Program), Series I, | Revenue Refunding Bonds, AMT, Series A-2, | |||||||||
6.25%, 10/15/38 | 6,250 | 6,492,625 | 5.50%, 6/01/37 | 2,640 | 2,507,868 | |||||
Michigan State Hospital Finance Authority, | Montana State Higher Education Student Assistance | |||||||||
Revenue Refunding Bonds (Mercy-Mount | Corporation, Student Loan Revenue Refunding | |||||||||
Clemens), Series A, 6%, 5/15/09 (g)(j) | 1,500 | 1,543,215 | Bonds, AMT, Sub-Series B, 6.40%, 12/01/32 | 6,000 | 5,355,840 | |||||
17,930,859 | 7,863,708 |
See Notes to Financial Statements. 32 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Schedule of Investments (continued) | BlackRock National Municipal Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
Nevada — 2.1% | New York — 7.4% | |||||||||
Clark County, Nevada, Improvement District Number | Babylon, New York, IDA Residential Recovery Revenue | |||||||||
142, Special Assessment Bonds, 6.375%, 8/01/23 | $ 1,505 | $ 931,896 | Refunding Bonds (Ogden Martin Project), VRDN, | |||||||
Elko, Nevada, GO (Airport Improvement), AMT, | 5%, 1/01/19 (i)(k)(l) | $20,000 | $ 20,000,000 | |||||||
Series B (j): | Long Island Power Authority, New York, Electric | |||||||||
6.10%, 10/01/14 | 165 | 165,764 | System Revenue Refunding Bonds, Series A, | |||||||
6.30%, 10/01/19 | 245 | 244,995 | 6%, 5/01/33 | 18,300 | 18,424,257 | |||||
6.75%, 10/01/24 | 320 | 314,934 | Metropolitan Transportation Authority, New York, | |||||||
7%, 10/01/29 | 225 | 223,024 | Revenue Bonds, Series C, 6.50%, 11/15/28 | 17,420 | 18,178,989 | |||||
Henderson, Nevada, Health Care Facilities, Revenue | New York City, New York, City Housing Development | |||||||||
Refunding Bonds (Catholic Healthcare West), | Corporation, M/F Housing Revenue Bonds, | |||||||||
Series B, 5.25%, 7/01/31 | 20,000 | 14,269,800 | Series M: | |||||||
Reno, Nevada, Health Revenue Refunding | 6.50%, 11/01/28 | 4,300 | 4,396,621 | |||||||
Bonds (Catholic Healthcare West), Series A, | 6.875%, 11/01/38 | 5,700 | 5,863,248 | |||||||
5.25%, 7/01/31 | 10,000 | 7,134,900 | New York City, New York, City IDA, Civic Facility | |||||||
Reno, Nevada, Special Assessment District Number 4 | Revenue Bonds (Special Needs Facilities Pooled | |||||||||
(Somerset Parkway), 6.625%, 12/01/22 | 1,800 | 1,383,246 | Program), Series C-1, 6%, 7/01/12 | 2,590 | 2,346,773 | |||||
Sparks, Nevada, Redevelopment Agency, Tax Allocation | New York City, New York, City IDA, Special Facility | |||||||||
Revenue Refunding Bonds, Series A (h): | Revenue Bonds (British Airways Plc Project), AMT, | |||||||||
6%, 1/15/15 | 3,110 | 3,075,417 | 7.625%, 12/01/32 | 3,500 | 2,283,540 | |||||
6%, 1/15/23 | 6,315 | 5,412,902 | New York City, New York, City Transitional Finance | |||||||
33,156,878 | Authority, Building Aid Revenue Refunding Bonds, | |||||||||
Series S-1, 5%, 1/15/34 | 10,000 | 9,347,500 | ||||||||
New Hampshire — 0.2% | New York City, New York, GO, Refunding, Series A: | |||||||||
New Hampshire Health and Education Facilities | 6%, 5/15/10 (g) | 6,540 | 7,038,152 | |||||||
Authority, Revenue Refunding Bonds: | 6%, 5/15/21 (n) | 60 | 61,216 | |||||||
(Elliot Hospital), Series B, 5.60%, 10/01/22 | 1,750 | 1,575,963 | New York City, New York, GO: | |||||||
(Havenwood-Heritage Heights Retirement | Series B, 5.875%, 8/01/15 (j) | 1,300 | 1,374,997 | |||||||
Community), Series A, 5%, 1/01/16 | 490 | 383,347 | Series E-1, 6.25%, 10/15/28 | 7,500 | 7,857,000 | |||||
(Havenwood-Heritage Heights Retirement | New York State Dormitory Authority, Non-State | |||||||||
Community), Series A, 5.35%, 1/01/26 | 1,035 | 632,747 | Supported Debt, Revenue Refunding Bonds | |||||||
2,592,057 | (Mount Sinai-NYU Medical Center Health System), | |||||||||
New Jersey — 1.9% | Series A, 6.50%, 7/01/16 | 2,410 | 2,417,688 | |||||||
Camden County, New Jersey, Pollution Control | New York State Dormitory Authority, Revenue | |||||||||
Financing Authority, Solid Waste Resource Recovery, | Refunding Bonds: | |||||||||
Revenue Refunding Bonds, AMT, Series B, | (Mount Sinai Health), Series A, 6.50%, 7/01/25 | 1,680 | 1,406,933 | |||||||
7.50%, 12/01/09 | 70 | 70,097 | (State University Educational Facilities), | |||||||
New Jersey EDA, Retirement Community Revenue | Series A, 7.50%, 5/15/13 | 3,000 | 3,549,720 | |||||||
Bonds (Cedar Crest Village Inc. Facility), Series A, | Oneida County, New York, IDA Revenue Bonds | |||||||||
7.25%, 11/15/11 (g) | 3,300 | 3,754,509 | (Civic Facility-Faxton Hospital), Series C, | |||||||
New Jersey EDA, School Facilities Construction | 6.625%, 1/01/15 (h) | 2,285 | 2,327,707 | |||||||
Revenue Bonds, Series O, 5.25%, 3/01/24 | 20,000 | 20,040,200 | Suffolk County, New York, IDA, Civic Facility Revenue | |||||||
New Jersey Health Care Facilities Financing Authority, | Bonds (Special Needs Facilities Pooled Program), | |||||||||
Revenue Refunding Bonds (Capital Health | Series D-1, 6%, 7/01/12 | 80 | 72,407 | |||||||
System Inc.), Series A, 5.75%, 7/01/23 | 2,250 | 1,928,588 | Westchester County, New York, IDA, Civic Facilities | |||||||
New Jersey State Housing and Mortgage Finance | Revenue Bonds (Special Needs Facilities Pooled | |||||||||
Agency, M/F Housing Revenue Refunding Bonds, | Program), Series E-1, 6%, 7/01/12 | 570 | 515,901 | |||||||
Series B, 6.25%, 11/01/26 (i) | 640 | 641,709 | Westchester County, New York, IDA, Continuing Care | |||||||
New Jersey State Turnpike Authority, Turnpike Revenue | Retirement, Mortgage Revenue Bonds (Kendal on | |||||||||
Refunding Bonds, Series A, 5.75%, 1/01/18 (j) | 2,975 | 3,031,109 | Hudson Project), Series A, 6.50%, 1/01/13 (g) | 8,095 | 9,532,996 | |||||
29,466,212 | 116,995,645 | |||||||||
New Mexico — 0.2% | North Carolina — 2.9% | |||||||||
New Mexico Mortgage Financing Authority, | North Carolina Eastern Municipal Power Agency, | |||||||||
S/F Mortgage Program Revenue Bonds, AMT, | Power System Revenue Bonds, Series D, | |||||||||
Series D, 6.15%, 7/01/35 (d)(e)(f) | 2,365 | 2,225,087 | 6.75%, 1/01/26 | 4,000 | 3,882,200 | |||||
Santa Fe County, New Mexico, Correctional System | North Carolina Eastern Municipal Power Agency, | |||||||||
Revenue Bonds, 6%, 2/01/27 (i) | 250 | 260,073 | Power System Revenue Refunding Bonds, Series D, | |||||||
6.70%, 1/01/19 (r) | 4,440 | 4,472,900 | ||||||||
2,485,160 | North Carolina HFA, Home Ownership Revenue | |||||||||
Bonds, AMT, Series 9-A, 5.80%, 1/01/20 | 3,775 | 3,756,729 |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 33 |
Schedule of Investments (continued) | BlackRock National Municipal Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
North Carolina (concluded) | Pennsylvania — 3.2% | |||||||||
North Carolina Medical Care Commission, Health | Allegheny County, Pennsylvania, IDA, Environmental | |||||||||
Care Facilities, First Mortgage Revenue Bonds | Improvement Revenue Refunding Bonds, | |||||||||
(Presbyterian Homes Project): | 5.50%, 11/01/16 | $ 3,640 | $ 3,022,292 | |||||||
6.875%, 10/01/10 (g) | $ 2,500 | $ 2,745,625 | Allegheny County, Pennsylvania, Sanitation Authority, | |||||||
5.50%, 10/01/31 | 3,000 | 1,708,500 | Sewer Revenue Bonds, 5.75%, 12/01/10 (g)(j) | 2,220 | 2,419,289 | |||||
North Carolina Medical Care Commission, Health Care | Bucks County, Pennsylvania, IDA, Retirement | |||||||||
Facilities, First Mortgage Revenue Refunding Bonds: | Community Revenue Bonds (Ann’s Choice Inc.), | |||||||||
(Presbyterian Homes Project), Series B, | Series A, 6.125%, 1/01/25 | 1,760 | 1,195,832 | |||||||
5.20%, 10/01/21 | 2,500 | 1,789,150 | Delaware County, Pennsylvania, IDA, Revenue | |||||||
(Salemtowne Project), 5.10%, 10/01/30 | 1,100 | 646,371 | Refunding Bonds (Resource Recovery Facility), | |||||||
North Carolina Medical Care Commission, Retirement | Series A, 6.10%, 7/01/13 | 7,750 | 6,995,072 | |||||||
Facilities, First Mortgage Revenue Bonds: | Lancaster County, Pennsylvania, Hospital Authority | |||||||||
(Forest at Duke Project), 6.375%, 9/01/12 (g) | 1,000 | 1,140,080 | Revenue Bonds (Brethren Village Project), Series A: | |||||||
(Givens Estates Project), Series A, | 6.25%, 7/01/26 | 1,160 | 846,034 | |||||||
6.50%, 7/01/13 (g) | 2,500 | 2,971,350 | 6.50%, 7/01/40 | 1,000 | 659,560 | |||||
North Carolina Medical Care Commission, Retirement | Philadelphia, Pennsylvania, Authority for IDR, | |||||||||
Facilities, First Mortgage Revenue Refunding Bonds: | Commercial Development, 7.75%, 12/01/17 | 1,265 | 1,049,318 | |||||||
(Forest at Duke Project), 5.125%, 9/01/32 | 5,000 | 3,419,900 | Philadelphia, Pennsylvania, Redevelopment Authority | |||||||
(Givens Estates Project), 5%, 7/01/33 | 2,000 | 1,167,440 | Revenue Bonds (Neighborhood Transformation), | |||||||
North Carolina Municipal Power Agency Number 1, | Series A, 5.30%, 4/15/26 (j)(q) | 36,210 | 32,779,103 | |||||||
Catawba Electric Revenue Refunding Bonds, Series B: | Sayre, Pennsylvania, Health Care Facilities Authority, | |||||||||
6.375%, 1/01/13 | 500 | 518,595 | Revenue Refunding Bonds (Guthrie Healthcare | |||||||
6.375%, 1/01/13 (r) | 1,080 | 1,120,165 | System), Series A, 5.875%, 12/01/31 | 1,085 | 890,785 | |||||
6.50%, 1/01/20 | 12,000 | 12,285,360 | Susquehanna Area Regional Airport Authority, | |||||||
6.50%, 1/01/20 (r) | 2,500 | 2,559,450 | Pennsylvania, Airport System Revenue Bonds, AMT, | |||||||
Piedmont Triad Airport Authority, North Carolina, | Series A, 6.50%, 1/01/38 | 1,000 | 648,390 | |||||||
Airport Revenue Refunding Bonds, Series A (g)(i): | 50,505,675 | |||||||||
6%, 7/01/09 | 1,000 | 1,036,730 | ||||||||
6.375%, 7/01/09 | 1,000 | 1,038,600 | Rhode Island — 0.1% | |||||||
Rhode Island State Economic Development | ||||||||||
46,259,145 | Corporation Revenue Bonds (Providence Place | |||||||||
Ohio — 1.5% | Mall), 6.125%, 7/01/20 (h) | 1,000 | 949,260 | |||||||
Buckeye Tobacco Settlement Financing Authority, | South Carolina — 2.9% | |||||||||
Ohio, Tobacco Settlement Asset-Backed Bonds, | Medical University Hospital Authority, South Carolina, | |||||||||
Series A-2: | Hospital Facilities Revenue Refunding Bonds, | |||||||||
5.875%, 6/01/30 | 5,000 | 3,131,200 | Series A (g): | |||||||
5.75%, 6/01/34 | 7,000 | 4,147,850 | 6.375%, 8/15/12 | 5,400 | 6,213,186 | |||||
Lorain County, Ohio, Hospital Revenue Refunding | 6.50%, 8/15/12 | 2,450 | 2,829,603 | |||||||
Bonds (Catholic Healthcare Partners), Series C-2, | South Carolina Jobs EDA, Residential Care Facilities | |||||||||
5%, 4/01/33 (i) | 8,800 | 7,444,536 | Revenue Bonds (South Carolina Episcopal — | |||||||
Ohio State Air Quality Development Authority | Still Hopes Residence Project), Series A, | |||||||||
Revenue Bonds (Ohio Power Company Project), | 6.375%, 5/15/32 | 5,000 | 3,211,600 | |||||||
AMT, 7.125%, 6/01/41 | 7,000 | 6,989,640 | South Carolina State Ports Authority, Ports Revenue | |||||||
Ohio State, HFA, Mortgage Revenue Refunding Bonds, | Bonds, AMT, 5.30%, 7/01/26 | 41,215 | 33,741,072 | |||||||
AMT, Series C, 5.90%, 9/01/35 (e)(f) | 1,540 | 1,545,313 | ||||||||
Port of Greater Cincinnati Development Authority, | 45,995,461 | |||||||||
Ohio, Special Assessment Revenue Bonds | Tennessee — 1.1% | |||||||||
(Cooperative Public Parking Infrastructure Project), | Chattanooga, Tennessee, IDB, Lease Rent Revenue | |||||||||
6.40%, 2/15/34 | 1,470 | 984,062 | Bonds (Southside Redevelopment Corporation) (a): | |||||||
24,242,601 | 5.75%, 10/01/17 | 4,485 | 4,695,705 | |||||||
5.75%, 10/01/18 | 3,740 | 3,904,111 | ||||||||
Oregon — 0.0% | Johnson City, Tennessee, Health and Educational | |||||||||
Oregon State Housing and Community Services | Facilities Board, Retirement Facility Revenue Bonds | |||||||||
Department, Mortgage Revenue Refunding Bonds | (Appalachian Christian Village Project), Series A, | |||||||||
(S/F Mortgage Program) Series A: | 6.25%, 2/15/32 | 1,000 | 637,270 | |||||||
AMT, 6.20%, 7/01/27 | 35 | 33,481 | Shelby County, Tennessee, Health, Educational and | |||||||
6.40%, 7/01/18 | 40 | 40,038 | Housing Facility Board, Hospital Revenue Refunding | |||||||
Portland, Oregon, M/F Housing Authority Revenue | Bonds (Methodist Healthcare), 6.50%, 9/01/12(g) | 7,300 | 8,398,869 | |||||||
Bonds (Lovejoy Station Apartments Project), AMT, | ||||||||||
5.90%, 7/01/23 (j) | 500 | 478,425 | 17,635,955 | |||||||
551,944 |
See Notes to Financial Statements. 34 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Schedule of Investments (continued) | BlackRock National Municipal Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
Texas — 11.8% | Texas (concluded) | |||||||||
Austin, Texas, Convention Center Revenue Bonds | South Plains, Texas, Housing Finance Corporation, | |||||||||
(Convention Enterprises Inc.), First Tier, Series A (g): | S/F Mortgage Revenue Bonds, AMT, Series A, | |||||||||
6.60%, 1/01/11 | $ 5,300 | $ 5,790,992 | 7.30%, 9/01/31 (e)(f) | $ 755 | $ 765,517 | |||||
6.70%, 1/01/11 | 2,300 | 2,517,557 | Southeast Texas Housing Finance | |||||||
Austin, Texas, Revenue Bonds (Town Lake Community | Corporation, Revenue Bonds, AMT, Series B, | |||||||||
Events Center Venue), 6.20%, 11/15/09 (g)(q) | 5,000 | 5,237,550 | 8.50%, 11/01/25 (d)(f) | 90 | 91,641 | |||||
Bexar County, Texas, Health Facilities Development | Tarrant County, Texas, Cultural Education Facilities | |||||||||
Corporation, Revenue Refunding Bonds (Army | Financing Corporation, Retirement Facilities | |||||||||
Retirement Residence Project), 6.30%, 7/01/12 (g) | 1,750 | 1,997,082 | Revenue Refunding Bonds (Northwest Senior | |||||||
Brazos River Authority, Texas, PCR, Refunding | Housing — Edgemere Project) Series A: | |||||||||
(TXU Energy Company Project), AMT, Series C, | 6%, 11/15/26 | 2,200 | 1,410,750 | |||||||
5.75%, 5/01/36 | 11,450 | 8,788,905 | 6%, 11/15/36 | 3,000 | 1,709,640 | |||||
Brazos River, Texas, Harbor Navigation District, Brazoria | Texas State Affordable Housing Corporation, | |||||||||
County Environmental Revenue Refunding Bonds | S/F Mortgage Revenue Bonds (Professional | |||||||||
(Dow Chemical Company Project), AMT, Series A-7, | Educators Home Loan Program), AMT, Series A-1, | |||||||||
6.625%, 5/15/33 | 3,700 | 2,566,468 | 5.50%, 12/01/39 (d)(e)(f) | 6,093 | 5,556,334 | |||||
Central Texas Housing Finance Corporation, | Texas State Public Finance Authority, Building | |||||||||
S/F Mortgage Revenue Bonds (GNMA Mortgage | Revenue Bonds (g)(i): | |||||||||
Program), AMT, 8.20%, 6/28/17 (f)(m) | 260 | 269,797 | (General Services Commission Project), | |||||||
Dallas-Fort Worth, Texas, International Airport Facility | Series A, 6%, 2/01/10 | 2,100 | 2,212,455 | |||||||
Improvement Corporation, Revenue Bonds | (State Preservation Project), Series B, | |||||||||
(Learjet Inc.), AMT, Series A-1, 6.15%, 1/01/16 | 3,620 | 2,836,125 | 6%, 8/01/09 | 1,000 | 1,030,990 | |||||
Dallas-Fort Worth, Texas, International Airport Facility | Texas State Turnpike Authority, Central Texas Turnpike | |||||||||
Improvement Corporation, Revenue Refunding | System Revenue Bonds, First Tier, Series A, | |||||||||
Bonds (American Airlines, Inc.), AMT, | 5.75%, 8/15/38 (a) | 45,000 | 38,451,600 | |||||||
5.50%, 11/01/30 | 5,000 | 1,776,150 | Webster, Texas, GO, COP, Series A (i): | |||||||
Dallas-Fort Worth, Texas, International Airport Revenue | 6%, 3/01/10 (g) | 1,500 | 1,584,870 | |||||||
Bonds, AMT, Series A, 6%, 11/01/24 (j)(q) | 30,000 | 26,731,800 | 6%, 3/01/21 | 805 | 833,578 | |||||
Gregg County, Texas, Health Facilities Development | West Central Texas Regional Housing Finance | |||||||||
Corporation, Hospital Revenue Bonds (Good | Corporation, S/F Mortgage Revenue Bonds | |||||||||
Shepherd Medical Center Project)(g)(h): | (Mortgage-Backed Securities Program), AMT, | |||||||||
6.375%, 10/01/10 | 3,500 | 3,766,665 | Series A, 5.35%, 12/01/39 (d)(e)(f) | 1,134 | 1,020,752 | |||||
6.875%, 10/01/10 | 1,000 | 1,084,610 | 187,046,908 | |||||||
Gulf Coast Waste Disposal Authority, Texas, Revenue | ||||||||||
Refunding Bonds (International Paper Company), | Utah — 0.0% | |||||||||
AMT, Series A, 6.10%, 8/01/24 | 5,465 | 3,494,649 | Utah State, HFA, S/F Mortgage Revenue Refunding | |||||||
HFDC of Central Texas, Inc., Retirement Facilities | Bonds, AMT, Series C, Class III, 5.50%, 1/01/18 | 580 | 570,407 | |||||||
Revenue Bonds: | Virginia — 0.5% | |||||||||
Series A, 5.75%, 11/01/36 | 2,255 | 1,230,689 | Albemarle County, Virginia, IDA, Residential Care | |||||||
(Village at Gleannloch Farms), Series A, | Facilities, Mortgage Revenue Refunding Bonds | |||||||||
5.50%, 2/15/37 | 1,850 | 1,007,418 | (Westminster-Canterbury), 5%, 1/01/24 | 2,750 | 1,805,347 | |||||
Harris County, Texas, Health Facilities Development | Chesterfield County, Virginia, IDA, PCR, Refunding | |||||||||
Corporation, Hospital Revenue Refunding Bonds | (Virginia Electric and Power Company), Series B, | |||||||||
(Memorial Hermann Healthcare System), Series B, | 5.875%, 6/01/17 | 2,425 | 2,314,177 | |||||||
7.25%, 12/01/35 | 3,900 | 3,943,563 | Fairfax County, Virginia, EDA, Residential Care | |||||||
Houston, Texas, Airport System Revenue Refunding | Facilities, Mortgage Revenue Refunding Bonds | |||||||||
Bonds, Sub-Lien, AMT, Series A, 5.50%, 7/01/23 (i) | 15,000 | 13,094,700 | (Goodwin House, Inc.), 5.125%, 10/01/37 | 3,250 | 1,750,027 | |||||
Houston, Texas, Airport System, Special Facilities | Norfolk, Virginia, Redevelopment and Housing | |||||||||
Revenue Bonds (Continental Airlines), AMT, | Authority, First Mortgage Revenue Bonds | |||||||||
Series E, 7%, 7/01/29 | 6,000 | 3,263,340 | (Retirement Community), Series A: | |||||||
Kerrville, Texas, Health Facilities Development | 6%, 1/01/25 | 500 | 342,575 | |||||||
Corporation, Hospital Revenue Bonds (Sid Peterson | 6.125%, 1/01/35 | 1,100 | 665,379 | |||||||
Memorial Hospital Project), 5.25%, 8/15/21 | 4,000 | 3,119,440 | Watkins Centre Community Development Authority, | |||||||
Matagorda County, Texas, Port of Bay City Authority | Virginia, Revenue Bonds, 5.40%, 3/01/20 | 2,500 | 1,872,400 | |||||||
Revenue Bonds (Hoechst Celanese Corp. Project), | 8,749,905 | |||||||||
AMT, 6.50%, 5/01/26 | 7,350 | 4,251,681 | ||||||||
North Texas Tollway Authority, System Revenue | ||||||||||
Refunding Bonds, Second Tier, Series F, | ||||||||||
6.125%, 1/01/31 | 40,000 | 35,609,600 |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 35 |
Schedule of Investments (continued) BlackRock National Municipal Fund (Percentages shown are based on Net Assets) |
Par | ||||
Municipal Bonds | (000) | Value | ||
Washington — 1.5% | ||||
Central Puget Sound Regional Transportation | ||||
Authority, Washington, Sales and Use Tax Revenue | ||||
Bonds, Series A, 5%, 11/01/34 | $10,000 | $ 9,379,400 | ||
Seattle, Washington, Housing Authority | ||||
Revenue Bonds: | ||||
(Newholly Project), AMT, 6.25%, 12/01/35 | 2,750 | 1,798,418 | ||
(Replacement Housing Project), | ||||
6.125%, 12/01/32 | 4,530 | 3,045,474 | ||
Washington State Health Care Facilities Authority, | ||||
Revenue Refunding Bonds (Catholic Health | ||||
Initiatives), Series D, 6.375%, 10/01/36 | 10,000 | 9,877,000 | ||
24,100,292 | ||||
Wisconsin — 0.6% | ||||
Wisconsin Housing and EDA, Home Ownership | ||||
Revenue Bonds, AMT, Series C, 6%, 9/01/36 | 815 | 791,365 | ||
Wisconsin State, GO, AMT, Series B, | ||||
6.20%, 11/01/26 (j) | 1,065 | 1,057,630 | ||
Wisconsin State Health and Educational Facilities | ||||
Authority Revenue Bonds (SynergyHealth Inc.): | ||||
6%, 11/15/23 | 5,450 | 5,132,810 | ||
6%, 11/15/32 | 3,700 | 3,208,196 | ||
10,190,001 | ||||
Puerto Rico — 1.3% | ||||
Puerto Rico Commonwealth, GO, Refunding, | ||||
Sub-Series C-7, 6%, 7/01/27 (j) | 6,890 | 6,032,884 | ||
Puerto Rico Commonwealth Highway and | ||||
Transportation Authority, Transportation Revenue | ||||
Bonds, 5.75%, 7/01/22 | 8,045 | 6,868,660 | ||
Puerto Rico Commonwealth Infrastructure | ||||
Financing Authority, Special Tax and Capital | ||||
Appreciation Revenue Bonds, Series A, | ||||
4.914%, 7/01/30 (q)(s) | 19,200 | 4,135,488 | ||
Puerto Rico Industrial Tourist Educational, Medical | ||||
and Environmental Control Facilities Revenue | ||||
Bonds (Hospital de la Concepcion), Series A, | ||||
6.125%, 11/15/25 | 4,000 | 3,776,200 | ||
20,813,232 | ||||
U.S. Virgin Islands — 0.4% | ||||
Virgin Islands Government Refinery Facilities, | ||||
Revenue Refunding Bonds (Hovensa Coker | ||||
Project), AMT, 6.50%, 7/01/21 | 8,000 | 5,760,880 | ||
Total Municipal Bonds — 89.3% | 1,419,886,453 | |||
Municipal Bonds Transferred to | ||||
Tender Option Bond Trusts (t) | ||||
New York — 2.8% | ||||
New York State Dormitory Authority State Personal | ||||
Income Tax Revenue Education, Series B, | ||||
5.75%, 3/15/36 | 13,890 | 14,255,307 | ||
New York State Environmental Facility Corporation | ||||
State Clean Water & Drinking Revolving Municipal | ||||
Water, 5%, 6/15/28 | 30,000 | 29,668,200 | ||
43,923,507 |
Municipal Bonds Transferred to | Par | |||
Tender Option Bond Trusts (t) | (000) | Value | ||
Texas — 1.2% | ||||
Houston, Texas, Combined Utility System, First | ||||
Lien Revenue Refunding Bonds, Series A, | ||||
5.125%, 5/15/28 (j) | $ 20,000 | $ 19,226,800 | ||
Total Municipal Bonds Transferred to Tender Option | ||||
Bond Trusts — 4.0% | 63,150,307 | |||
Total Long-Term Investments | ||||
(Cost — $1,675,603,547) — 93.3% | 1,483,036,760 | |||
Short-Term Securities | Shares | |||
Merrill Lynch Institutional Tax-Exempt Fund, | ||||
1.18% (u)(v) | 135,344,328 | 135,344,328 | ||
Total Short-Term Securities | ||||
(Cost — $135,344,328) — 8.5% | 135,344,328 | |||
Total Investments (Cost — $1,810,947,875*) — 101.8% | 1,618,381,088 | |||
Other Assets Less Liabilities — 0.4% | 6,848,711 | |||
Liability for Trust Certificates, Including Interest | ||||
Expense and Fees Payable — (2.2)% | (34,324,182) | |||
Net Assets — 100.0% | $1,590,905,617 | |||
* The cost and unrealized appreciation (depreciation) of investments as of | ||||
December 31, 2008, as computed for federal income tax purposes, were | ||||
as follows: | ||||
Aggregate cost | $1,777,175,199 | |||
Gross unrealized appreciation | $ 19,758,984 | |||
Gross unrealized depreciation | (212,813,095) | |||
Net unrealized depreciation | $ (193,054,111) | |||
(a) AMBAC Insured. | ||||
(b) Non-income producing security. | ||||
(c) Issuer filed for bankruptcy and/or is in default of interest payments. | ||||
(d) FHLMC Collateralized. | ||||
(e) FNMA Collateralized. | ||||
(f) GNMA Collateralized. | ||||
(g) U.S. government securities, held in escrow, are used to pay interest on this | ||||
security, as well as to retire the bond in full at the date indicated, typically at | ||||
a premium to par. | ||||
(h) Radian Insured. | ||||
(i) FSA Insured. | ||||
(j) MBIA Insured. | ||||
(k) Variable rate security. Rate shown is as of report date. Maturity shown is the final | ||||
maturity date. | ||||
(l) Security may have a maturity of more than one year at the time of issuance, but | ||||
has variable rate and demand features that qualify it as a short-term security. | ||||
(m) FHA Insured. | ||||
(n) XL Capital Insured. | ||||
(o) Assured Guaranty Insured. | ||||
(p) BHAC Insured. | ||||
(q) FGIC Insured. | ||||
(r) ACA Insured. |
See Notes to Financial Statements. 36 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Schedule of Investments (concluded) BlackRock National Municipal Fund |
(s) Represents a zero-coupon bond. Rate shown reflects the current yield as of | ||||
report date. | ||||
(t) Securities represent bonds transferred to a tender option bond 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 tender option bond | ||||
trusts. | ||||
(u) Investments in companies considered to be an affiliate of the Fund, for purposes | ||||
of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: | ||||
Net | ||||
Affiliate | Activity | Income | ||
Merrill Lynch Institutional | ||||
Tax-Exempt Fund | (36,791,371) | $1,119,055 | ||
(v) Represents the current yield as of report date. |
•Effective July 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value
Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are used
in determining the fair value of investments, which are as follows:
•Level 1 — price quotations in active markets/exchanges for identical securities
•Level 2 — other observable inputs (including, but not limited to: quoted prices
for 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
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumption used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indi-
cation of the risk associated with 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, 2008 in
determining the fair valuation of the Fund’s investments:
Valuation | Investments in | |
Inputs | Securities | |
Assets | ||
Level 1 | $ 135,344,328 | |
Level 2 | 1,483,036,760 | |
Level 3 | — | |
Total | $1,618,381,088 |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 37 |
Schedule of Investments December 31, 2008 (Unaudited) | BlackRock High Yield Municipal Fund | |||||||||||
(Percentages shown are based on Net Assets) | ||||||||||||
Par | Par | |||||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||||
Alabama — 2.2% | Colorado — 0.5% | |||||||||||
Jefferson County, Alabama, Limited Obligation | Colorado Health Facilities Authority, Revenue | |||||||||||
School Warrants Series A: | Refunding Bonds (Christian Living Communities | |||||||||||
5%, 1/01/09 | $ 600 | $ 600,000 | Project), Series A, 5.75%, 1/01/37 | $ 450 | $ 246,402 | |||||||
5%, 1/01/10 | 180 | 155,005 | Connecticut — 2.2% | |||||||||
Tuscaloosa, Alabama, Special Care Facilities Financing | Connecticut State Health and Educational Facilities | |||||||||||
Authority, Residential Care Facility Revenue | Authority Revenue Bonds (University of Hartford), | |||||||||||
Bonds (Capstone Village, Inc. Project), Series A, | Series G, 5.25%, 7/01/36 (c) | 1,000 | 699,340 | |||||||||
5.875%, 8/01/36 (a)(b) | 500 | 272,450 | Mashantucket Western Pequot Tribe, Connecticut, | |||||||||
1,027,455 | Revenue Refunding Bonds, Sub-Series A, | |||||||||||
Arizona — 8.0% | 5.50%, 9/01/36 | 500 | 294,070 | |||||||||
Maricopa County, Arizona, IDA, Education Revenue | 993,410 | |||||||||||
Bonds (Arizona Charter Schools Project 1), Series A: | Florida — 8.6% | |||||||||||
6.625%, 7/01/20 | 250 | 184,968 | Capital Region Community Development District, | |||||||||
6.75%, 7/01/29 | 300 | 197,169 | Florida, Special Assessment Revenue Bonds, | |||||||||
Maricopa County, Arizona, IDA, M/F Housing Revenue | Series A, 7%, 5/01/39 | 215 | 133,655 | |||||||||
Bonds (Sun King Apartments Project), Series A, | Highland Meadows Community Development District, | |||||||||||
6.75%, 5/01/31 | 185 | 124,405 | Florida, Special Assessment Bonds, Series A, | |||||||||
Phoenix, Arizona, IDA, Airport Facility, Revenue | 5.50%, 5/01/36 | 490 | 235,474 | |||||||||
Refunding Bonds (America West Airlines Inc. | Jacksonville, Florida, Economic Development | |||||||||||
Project), AMT, 6.30%, 4/01/23 | 1,000 | 556,340 | Commission, IDR (Gerdau Ameristeel US, Inc.), AMT, | |||||||||
Pima County, Arizona, IDA, Education Revenue Bonds | 5.30%, 5/01/37 | 300 | 129,000 | |||||||||
(American Charter Schools Foundation), Series A, | Lee County, Florida, IDA, Health Care Facilities, | |||||||||||
5.625%, 7/01/38 | 685 | 420,097 | Revenue Refunding Bonds (Shell Point/Alliance | |||||||||
Pima County, Arizona, IDA, Education Revenue | Obligor Group): | |||||||||||
Refunding Bonds (Arizona Charter Schools Project), | 5%, 11/15/29 | 500 | 288,290 | |||||||||
Series O, 5.25%, 7/01/31 | 285 | 170,818 | 5%, 11/15/32 | 600 | 351,174 | |||||||
Pima County, Arizona, IDA, Revenue Bonds | Lee County, Florida, IDA, IDR (Lee Charter | |||||||||||
(Tucson Electric Power Company), Series A, | Foundation), Series A, 5.375%, 6/15/37 | 570 | 310,872 | |||||||||
6.375%, 9/01/29 | 780 | 620,108 | New River Community Development District, Florida, | |||||||||
Queen Creek Improvement District Number 001, | Capital Improvement Revenue Bonds, Series B, | |||||||||||
Arizona, Special Assessment Bonds, 5%, 1/01/32 | 500 | 279,910 | 5%, 5/01/13 | 500 | 200,000 | |||||||
Salt Verde Financial Corporation, Arizona, Senior Gas | Pine Ridge Plantation Community Development | |||||||||||
Revenue Bonds: | District, Florida, Capital Improvement and Special | |||||||||||
5%, 12/01/32 | 750 | 481,665 | Assessment Bonds, Series B, 5%, 5/01/11 | 970 | 582,000 | |||||||
5%, 12/01/37 | 1,045 | 652,623 | Santa Rosa Bay Bridge Authority, Florida, Revenue | |||||||||
3,688,103 | Bonds, 6.25%, 7/01/28 | 500 | 315,025 | |||||||||
California — 4.1% | Sarasota County, Florida, Health Facilities Authority, | |||||||||||
California Pollution Control Financing Authority, | Retirement Facility Revenue Refunding Bonds | |||||||||||
Solid Waste Disposal Revenue Bonds (Waste | (Village on the Isle Project): | |||||||||||
Management, Inc. Project), AMT, Series C, | 5.50%, 1/01/27 | 210 | 124,931 | |||||||||
5.125%, 11/01/23 | 750 | 478,672 | 5.50%, 1/01/32 | 190 | 102,803 | |||||||
Lammersville, California, School District, Special Tax | Sumter Landing Community Development District, | |||||||||||
Bonds (Community Facilities District Number | Florida, Recreational Revenue Bonds, Sub-Series B, | |||||||||||
2002 — Mountain House), 5.125%, 9/01/35 | 500 | 286,900 | 5.70%, 10/01/38 | 835 | 494,495 | |||||||
Roseville, California, Special Tax Bonds (Fiddyment | Tolomato Community Development District, Florida, | |||||||||||
Ranch Community Facilities Number 1), | Special Assessment Bonds, 6.65%, 5/01/40 | 700 | 404,516 | |||||||||
5.25%, 9/01/36 | 465 | 244,916 | Watergrass Community Development District, Florida, | |||||||||
Southern California Public Power Authority, Natural | Special Assessment Revenue Bonds, Series A, | |||||||||||
Gas Project Number 1 Revenue Bonds, Series A, | 5.375%, 5/01/39 | 650 | 316,797 | |||||||||
5%, 11/01/29 | 480 | 305,506 | 3,989,032 | |||||||||
Temecula, California, Public Financing Authority, | Georgia — 3.1% | |||||||||||
Community Facilities District Number 01-2, Special | Clayton County, Georgia, Tax Allocation Bonds | |||||||||||
Tax Refunding Bonds, Sub-Series B, 5.10%, 9/01/36 | 500 | 283,975 | (Ellenwood Project), 7.50%, 7/01/33 | 690 | 544,120 | |||||||
Temecula Valley, California, Unified School District, | Richmond County, Georgia, Development Authority, | |||||||||||
Community Facilities District Number 2005-1, | Environmental Improvement Revenue Bonds | |||||||||||
Special Tax Bonds, 5%, 9/01/36 | 565 | 315,434 | (International Paper Co. Projects), AMT, Series A, | |||||||||
1,915,403 | 5%, 8/01/30 | 1,000 | 512,420 |
See Notes to Financial Statements. 38 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Schedule of Investments (continued) | BlackRock High Yield Municipal Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
Georgia (concluded) | Maryland (concluded) | |||||||||
Rockdale County, Georgia, Development Authority | Maryland State Energy Financing Administration, | |||||||||
Revenue Bonds (Visy Paper Project), AMT, Series A, | Limited Obligation Revenue Bonds (Cogeneration- | |||||||||
6.125%, 1/01/34 | $ 600 | $ 372,744 | AES Warrior Run), AMT, 7.40%, 9/01/19 | $ 1,000 | $ 693,120 | |||||
1,429,284 | Maryland State Health and Higher Educational | |||||||||
Facilities Authority Revenue Bonds: | ||||||||||
Illinois — 1.4% | (King Farm Presbyterian Community), Series A, | |||||||||
Chicago, Illinois, O’Hare International Airport, Special | 5.30%, 1/01/37 | 500 | 243,960 | |||||||
Facility Revenue Refunding Bonds (American | (Washington Christian Academy), 5.25%, 7/01/18 | 250 | 183,898 | |||||||
Airlines Inc. Project), 5.50%, 12/01/30 | 1,000 | 358,520 | ||||||||
Illinois State Finance Authority Revenue Bonds | 1,674,919 | |||||||||
(Monarch Landing, Inc. Project), Series A, | Massachusetts — 2.1% | |||||||||
7%, 12/01/37 | 430 | 269,502 | Massachusetts State Development Finance Agency | |||||||
628,022 | Revenue Bonds, Series A: | |||||||||
(Curry College), 5.25%, 3/01/26 (g) | 390 | 280,714 | ||||||||
Indiana — 2.5% | (Linden Ponds, Inc. Facility), 5.75%, 11/15/35 | 500 | 243,800 | |||||||
Indiana Health and Educational Facilities Financing | Massachusetts State Health and Educational | |||||||||
Authority, Hospital Revenue Bonds (Community | Facilities Authority, Revenue Refunding Bonds | |||||||||
Foundation of Northwest Indiana), 5.50%, 3/01/37 | 700 | 462,168 | (Bay Cove Human Services Issue), Series A, | |||||||
Indiana Health Facilities Financing Authority, Hospital | 5.90%, 4/01/28 | 640 | 424,122 | |||||||
Revenue Refunding Bonds (Methodist Hospital, Inc.): | ||||||||||
5.375%, 9/15/22 | 185 | 141,292 | 948,636 | |||||||
5.50%, 9/15/31 | 525 | 353,262 | Michigan — 0.7% | |||||||
Vigo County, Indiana, Hospital Authority Revenue | Advanced Technology Academy, Michigan, Revenue | |||||||||
Bonds (Union Hospital, Inc.): | Bonds, 6%, 11/01/37 | 275 | 183,496 | |||||||
5.70%, 9/01/37 | 155 | 88,581 | Garden City, Michigan, Hospital Finance Authority, | |||||||
5.75%, 9/01/42 | 190 | 106,968 | Hospital Revenue Refunding Bonds (Garden City | |||||||
1,152,271 | Hospital Obligation), Series A, 5%, 8/15/38 | 310 | 150,861 | |||||||
Iowa — 0.8% | 334,357 | |||||||||
Iowa Financing Authority, Health Facilities Revenue | Missouri — 1.0% | |||||||||
Refunding Bonds (Care Initiatives Project), Series A, | Kansas City, Missouri, Tax Increment Financing | |||||||||
5%, 7/01/19 | 500 | 354,905 | Commission, Tax Allocation Revenue Bonds | |||||||
Kansas — 2.9% | (Kansas City MainCor Project), Series A, | |||||||||
Lenexa, Kansas, Health Care Facility, Revenue | 5.25%, 3/01/18 | 600 | 481,020 | |||||||
Refunding Bonds, 5.50%, 5/15/39 | 1,100 | 539,242 | Nevada — 0.5% | |||||||
Sedgwick and Shawnee Counties, Kansas, | Clark County, Nevada, IDR, AMT, Series A: | |||||||||
S/F Mortgage Revenue Bonds (Mortgage-Backed | (Nevada Power Company Project), | |||||||||
Securities Program), AMT, Series B-2, | 5.60%, 10/01/30 | 415 | 223,627 | |||||||
5.25%, 12/01/38 (d)(e)(f) | 820 | 746,561 | (Southwest Gas Corporation Project), | |||||||
Wyandotte County, Kansas, Kansas City Unified | 4.75%, 9/01/36 (h) | 20 | 10,310 | |||||||
Government Revenue Refunding Bonds (General | 233,937 | |||||||||
Motors Corporation Project), 6%, 6/01/25 | 450 | 71,996 | ||||||||
New Hampshire — 2.8% | ||||||||||
1,357,799 | New Hampshire Health and Education Facilities | |||||||||
Louisiana — 1.2% | Authority, Revenue Refunding Bonds: | |||||||||
Louisiana Local Government Environmental Facilities | (Havenwood-Heritage Heights Retirement | |||||||||
and Community Development Authority Revenue | Community), | |||||||||
Bonds (Westlake Chemical Corporation), | Series A, 5.40%, 1/01/30 | 950 | 536,921 | |||||||
6.75%, 11/01/32 | 1,000 | 545,500 | (Southern New Hampshire University), | |||||||
Maine — 1.2% | 5%, 1/01/27 (g) | 1,015 | 750,440 | |||||||
Jay, Maine, Solid Waste Disposal, Revenue Refunding | 1,287,361 | |||||||||
Bonds (International Paper Company Project), AMT, | New Jersey — 7.3% | |||||||||
Series A, 4.90%, 11/01/17 | 750 | 526,027 | Burlington County, New Jersey, Bridge Commission, | |||||||
Maryland — 3.6% | EDR, Refunding (The Evergreens Project), | |||||||||
Baltimore, Maryland, Convention Center Hotel | 5.625%, 1/01/38 | 750 | 411,787 | |||||||
Revenue Bonds, Sub-Series B, 5.875%, 9/01/39 | 540 | 288,236 | New Jersey EDA, Cigarette Tax Revenue Bonds, | |||||||
Howard County, Maryland, Retirement Community | 5.50%, 6/15/24 | 1,140 | 838,504 | |||||||
Revenue Refunding Bonds (Columbia Vantage | New Jersey EDA, Retirement Community Revenue | |||||||||
House Corporation), Series A, 5.25%, 4/01/33 | 500 | 265,705 | Refunding Bonds (Seabrook Village, Inc.), | |||||||
5.25%, 11/15/36 | 1,000 | 538,060 |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 39 |
Schedule of Investments (continued) | BlackRock High Yield Municipal Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||
New Jersey (concluded) | Pennsylvania (concluded) | |||||||||
New Jersey EDA, Special Facility Revenue Bonds | Susquehanna Area Regional Airport Authority, | |||||||||
(Continental Airlines Inc. Project), AMT, | Pennsylvania, Airport System Revenue Bonds, AMT, | |||||||||
6.625%, 9/15/12 | $ 490 | $ 365,589 | Series A, 6.50%, 1/01/38 | $ 500 | $ 324,195 | |||||
New Jersey Health Care Facilities Financing Authority | 1,391,667 | |||||||||
Revenue Bonds (Pascack Valley Hospital | ||||||||||
Association), 6.625%, 7/01/36 (a)(b) | 650 | 21,775 | Rhode Island — 1.6% | |||||||
New Jersey Health Care Facilities Financing Authority, | Rhode Island Housing and Mortgage Finance | |||||||||
Revenue Refunding Bonds: | Corporation, Homeownership Opportunity Revenue | |||||||||
(Saint Joseph’s Healthcare System), | Bonds, AMT, Series 53-B, 5%, 10/01/46 | 1,000 | 735,250 | |||||||
6.625%, 7/01/38 | 725 | 509,740 | South Carolina — 2.5% | |||||||
(South Jersey Hospital System), 5%, 7/01/46 | 1,000 | 685,390 | Connector 2000 Association, Inc., South Carolina, | |||||||
3,370,845 | Toll Road and Capital Appreciation Revenue Bonds, | |||||||||
Senior-Series B, 8.43%, 1/01/15 (i) | 1,000 | 496,970 | ||||||||
New York — 1.5% | Myrtle Beach, South Carolina, Tax Increment Revenue | |||||||||
Genesee County, New York, IDA, Civic Facility Revenue | Bonds (Myrtle Beach Air Force Base), Series A, | |||||||||
Refunding Bonds (United Memorial Medical Center | 5.25%, 11/01/26 | 500 | 292,180 | |||||||
Project), 5%, 12/01/32 | 500 | 264,635 | South Carolina Jobs, EDA, Health Care Facilities, First | |||||||
New York City, New York, City IDA, Special Facility | Mortgage Revenue Refunding Bonds (Lutheran | |||||||||
Revenue Bonds (JetBlue Airways Corporation | Homes), 5.50%, 5/01/28 | 600 | 371,550 | |||||||
Project), AMT, 5.125%, 5/15/30 | 750 | 310,035 | ||||||||
New York Liberty Development Corporation Revenue | 1,160,700 | |||||||||
Bonds (National Sports Museum Project), Series A, | Tennessee — 1.8% | |||||||||
6.125%, 2/15/19 (a)(b) | 1,000 | 117,500 | Tennessee Energy Acquisition Corporation, Gas | |||||||
692,170 | Revenue Bonds, Series A, 5.25%, 9/01/26 | 1,250 | 851,488 | |||||||
North Carolina — 2.5% | Texas — 7.9% | |||||||||
North Carolina Medical Care Commission, | Brazos River Authority, Texas, PCR, Refunding (TXU | |||||||||
Health Care Facilities, First Mortgage Revenue | Energy Company LLC Project), AMT, Series A, | |||||||||
Refunding Bonds (Deerfield Episcopal Project), | 8.25%, 10/01/30 | 750 | 508,590 | |||||||
Series A, 6%, 11/01/33 | 800 | 577,808 | Dallas-Fort Worth, Texas, International Airport | |||||||
North Carolina Medical Care Commission, Retirement | Facility Improvement Corporation, Revenue | |||||||||
Facilities Revenue Refunding Bonds (Carolina | Refunding Bonds (American Airlines, Inc.), AMT, | |||||||||
Village Project), 6%, 4/01/38 | 1,000 | 583,610 | 5.50%, 11/01/30 | 1,000 | 355,230 | |||||
Danbury, Texas, Higher Education Authority Revenue | ||||||||||
1,161,418 | Bonds (A.W. Brown-Fellowship Charter School), | |||||||||
North Dakota — 1.3% | Series A, 5%, 8/15/26 (g) | 355 | 224,779 | |||||||
Ward County, North Dakota, Health Care Facility | HFDC of Central Texas, Inc., Retirement Facilities | |||||||||
Revenue Refunding Bonds (Trinity Health Obligated | Revenue Bonds, Series A, 5.75%, 11/01/36 | 655 | 357,473 | |||||||
Group), 5.125%, 7/01/29 | 1,000 | 620,080 | Houston, Texas, Airport System, Special Facilities | |||||||
Ohio — 2.3% | Revenue Bonds (Continental Airlines), AMT, | |||||||||
Buckeye Tobacco Settlement Financing Authority, | Series E, 7.375%, 7/01/22 | 500 | 293,300 | |||||||
Ohio, Tobacco Settlement Asset-Backed Bonds, | North Texas Tollway Authority, System Revenue | |||||||||
Series A-2, 6.50%, 6/01/47 | 760 | 454,085 | Refunding Bonds, Second Tier, Series F, | |||||||
Richland County, Ohio, Hospital Facilities Revenue | 6.125%, 1/01/31 | 1,150 | 1,023,776 | |||||||
Refunding Bonds (MedCentral Health System), | Texas State Public Financing Authority, Charter School | |||||||||
5.25%, 11/15/36 | 875 | 618,249 | Financing Corporation, Revenue Refunding Bonds | |||||||
(KIPP, Inc.), Series A (g): | ||||||||||
1,072,334 | 5%, 2/15/28 | 680 | 372,280 | |||||||
Pennsylvania — 3.0% | 5%, 2/15/36 | 1,000 | 499,680 | |||||||
Allegheny County, Pennsylvania, Hospital | 3,635,108 | |||||||||
Development Authority, Revenue Refunding Bonds | ||||||||||
(West Penn Allegheny Health System), Series A, | Virginia — 10.9% | |||||||||
5.375%, 11/15/40 | 735 | 348,780 | Albemarle County, Virginia, IDA, Residential Care | |||||||
Harrisburg, Pennsylvania, Authority, University Revenue | Facilities, Mortgage Revenue Refunding Bonds | |||||||||
Bonds (Harrisburg University of Science), Series B, | (Westminster-Canterbury), 5%, 1/01/31 | 1,150 | 677,373 | |||||||
6%, 9/01/36 | 500 | 322,410 | Fairfax County, Virginia, EDA, Residential Care | |||||||
New Morgan, Pennsylvania, IDA, Solid Waste Disposal | Facilities, Mortgage Revenue Refunding Bonds | |||||||||
Revenue Bonds (New Morgan Landfill Company, Inc. | (Goodwin House, Inc.), 5.125%, 10/01/42 | 300 | 157,332 | |||||||
Project), AMT, 6.50%, 4/01/19 | 515 | 396,282 | Fairfax County, Virginia, EDA, Retirement Revenue | |||||||
Refunding Bonds (Greenspring Village Inc.), | ||||||||||
Series A, 4.875%, 10/01/36 | 500 | 299,760 |
See Notes to Financial Statements. 40 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Schedule of Investments (concluded) BlackRock High Yield Municipal Fund (Percentages shown are based on Net Assets) |
Par | ||||||
Municipal Bonds | (000) | Value | ||||
Virginia (concluded) | ||||||
Henrico County, Virginia, EDA, Residential Care | ||||||
Facility, Mortgage Revenue Refunding Bonds | ||||||
(Westminster-Canterbury Of Winchester, Inc.), | ||||||
5%, 10/01/27 | $ 450 | $ 301,352 | ||||
Lexington, Virginia, IDA, Residential Care Facility, | ||||||
Mortgage Revenue Refunding Bonds (Kendal at | ||||||
Lexington), Series A, 5.375%, 1/01/28 | 210 | 127,926 | ||||
Tobacco Settlement Financing Corporation of Virginia, | ||||||
Revenue Refunding Bonds, Senior Series B-1, | ||||||
5%, 6/01/47 | 130 | 64,507 | ||||
Virginia State, HDA, Commonwealth Mortgage | ||||||
Revenue Bonds, Series H, Sub-Series H-1 (j): | ||||||
5.35%, 7/01/31 | 1,000 | 926,120 | ||||
5.375%, 7/01/36 | 2,110 | 1,915,057 | ||||
Watkins Centre Community Development Authority, | ||||||
Virginia, Revenue Bonds, 5.40%, 3/01/20 | 750 | 561,720 | ||||
5,031,147 | ||||||
Wisconsin — 0.8% | ||||||
Wisconsin State Health and Educational Facilities | ||||||
Authority, Revenue Refunding Bonds (Franciscan | ||||||
Sisters Healthcare), 5%, 9/01/26 | 500 | 354,910 | ||||
Wyoming — 1.6% | ||||||
Wyoming Municipal Power Agency, Power Supply | ||||||
Revenue Bonds, Series A, 5.375%, 1/01/42 | 900 | 741,222 | ||||
Total Long-Term Investments | ||||||
(Cost — $69,146,422) — 94.4% | 43,632,182 | |||||
Short-Term Securities | Shares | |||||
Merrill Lynch Institutional Tax-Exempt Fund, | ||||||
1.18% (k)(l) | 1,701,691 | 1,701,691 | ||||
Total Short-Term Securities | ||||||
(Cost — $1,701,691) — 3.7% | 1,701,691 | |||||
Total Investments (Cost — $70,848,113*) — 98.1% | 45,333,873 | |||||
Other Assets Less Liabilities — 1.9% | 896,761 | |||||
Net Assets — 100.0% | $ 46,230,634 | |||||
* The cost and unrealized appreciation (depreciation) of investments as of | ||||||
December 31, 2008, as computed for federal income tax purposes, were | ||||||
as follows: | ||||||
Aggregate cost | $ 70,848,529 | |||||
Gross unrealized appreciation | $ 60,205 | |||||
Gross unrealized depreciation | (25,574,861) | |||||
Net unrealized depreciation | $ (25,514,656) | |||||
(a) | Non-income producing security. | |||||
(b) | Issuer filed for bankruptcy and/or is in default of interest payments. | |||||
(c) | Radian Insured. | |||||
(d) | GNMA Collateralized. | |||||
(e) | FHLMC Collateralized. | |||||
(f) | FNMA Collateralized. | |||||
(g) | ACA Insured. | |||||
(h) | FGIC Insured. |
(i) | Represents a zero-coupon bond. Rate shown reflects the current yield as of | |||||
report date. | ||||||
(j) | MBIA Insured. | |||||
(k) | Represents the current yield as of report date. | |||||
(l) | Investments in companies considered to be an affiliate of the Fund, for purposes | |||||
of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: | ||||||
Net | ||||||
Affiliate | Activity | Income | ||||
Merrill Lynch Institutional | ||||||
Tax-Exempt Fund | $(4,109,019) | $25,965 |
•Effective July 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, “Fair Value
Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are used
in determining the fair value of investments, which are as follows:
•Level 1 — price quotations in active markets/exchanges for identical securities
•Level 2 — other observable inputs (including, but not limited to: quoted prices
for 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
circumstance, to the extent observable inputs are not available (including the
Fund’s own assumption used in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indi-
cation of the risk associated with 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, 2008 in
determining the fair valuation of the Fund’s investments:
Valuation | Investments in | |
Inputs | Securities | |
Assets | ||
Level 1 | $ 1,701,691 | |
Level 2 | 43,632,182 | |
Level 3 | — | |
Total | $ 45,333,873 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT DECEMBER 31, 2008 41
Schedule of Investments December 31, 2008 (Unaudited) | BlackRock New York Municipal Bond Fund | |||||||||
(Percentages shown are based on Net Assets) | ||||||||||
Par | Par | |||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value |
New York — 82.8% | ||||||
Albany, New York, IDA, Civic Facility Revenue Refunding | ||||||
Bonds (Albany College of Pharmacy Project), | ||||||
Series A, 5.625%, 12/01/34 | $ 700 | $ 451,465 | ||||
Chautauqua, New York, Tobacco Asset Securitization | ||||||
Corporation, Revenue Bonds, 6.75%, 7/01/40 | 1,000 | 799,600 | ||||
Dutchess County, New York, IDA, Civic Facility | ||||||
Revenue Bonds (Saint Francis Hospital), Series B, | ||||||
7.25%, 3/01/19 | 1,035 | 910,479 | ||||
Dutchess County, New York, IDA, Civic Facility Revenue | ||||||
Refunding Bonds (Bard College), Series A-2, | ||||||
4.50%, 8/01/36 | 1,000 | 714,230 | ||||
Erie County, New York, IDA, Life Care Community | ||||||
Revenue Bonds (Episcopal Church Home), Series A: | ||||||
5.875%, 2/01/18 | 1,500 | 1,222,260 | ||||
6%, 2/01/28 | 3,000 | 2,045,040 | ||||
Erie County, New York, Tobacco Asset Securitization | ||||||
Corporation, Asset-Backed Revenue Bonds, Class A, | ||||||
6.25%, 7/15/10 (a) | 4,000 | 4,332,360 | ||||
Essex County, New York, IDA, Environmental | ||||||
Improvement Revenue Bonds (International Paper | ||||||
Company Project), AMT, Series A, 6.625%, 9/01/32 | 350 | 233,803 | ||||
Genesee County, New York, IDA, Civic Facility Revenue | ||||||
Refunding Bonds (United Memorial Medical | ||||||
Center Project): | ||||||
5%, 12/01/27 | 500 | 283,605 | ||||
5%, 12/01/32 | 1,080 | 571,612 | ||||
Hempstead Town, New York, IDA, Civic Facility Revenue | ||||||
Bonds (Adelphi University Civic Facility): | ||||||
5.75%, 6/01/22 | 1,700 | 1,720,417 | ||||
5.50%, 6/01/32 | 2,250 | 2,139,165 | ||||
Hudson Yards Infrastructure Corporation, New York, | ||||||
Revenue Bonds, Series A: | ||||||
4.50%, 2/15/47 (b) | 930 | 601,775 | ||||
5%, 2/15/47 (c) | 1,000 | 708,680 | ||||
Long Island Power Authority, New York, Electric System | ||||||
Revenue Refunding Bonds, Series A, 6%, 5/01/33 | 2,450 | 2,466,635 | ||||
Madison County, New York, IDA, Civic Facility Revenue | ||||||
Bonds (Commons II LLC — Student Housing), | ||||||
Series A, 5%, 6/01/33 (d) | 400 | 278,224 | ||||
Metropolitan Transportation Authority, New York, | ||||||
Revenue Bonds: | ||||||
Series A, 4.50%, 11/15/38 | 2,700 | 2,031,858 | ||||
Series C, 6.50%, 11/15/28 | 1,600 | 1,669,712 | ||||
Metropolitan Transportation Authority, New York, | ||||||
Service Contract Revenue Refunding Bonds, | ||||||
Series A, 5.125%, 1/01/29 | 1,000 | 904,270 | ||||
Metropolitan Transportation Authority, New York, | ||||||
Transportation Revenue Refunding Bonds, Series F: | ||||||
5%, 11/15/30 | 4,000 | 3,538,200 | ||||
5%, 11/15/35 | 955 | 815,866 | ||||
Monroe County, New York, IDA, Revenue Bonds | ||||||
(Southview Towers Project), AMT, 6.25%, 2/01/31 (e) | 1,000 | 953,960 | ||||
Monroe County, New York, IDA, Student Housing | ||||||
Revenue Bonds (Collegiate), Series A, | ||||||
5.375%, 4/01/29 | 445 | 282,339 | ||||
New York (continued) | ||||||
Nassau County, New York, IDA, Civic Facility Revenue | ||||||
Refunding Bonds (Special Needs Facilities Pooled | ||||||
Program), Series F-1, 4.90%, 7/01/21 (f) | $ 525 | $ 360,843 | ||||
Nassau County, New York, Tobacco Settlement | ||||||
Corporation, Senior Asset-Backed Revenue Refunding | ||||||
Bonds, Series A-3, 5%, 6/01/35 | 2,000 | 1,232,640 | ||||
New York City, New York, City Housing Development | ||||||
Corporation, M/F Housing Revenue Bonds, AMT: | ||||||
Series A, 5.50%, 11/01/34 | 2,500 | 2,011,800 | ||||
Series C, 5.05%, 11/01/36 | 1,220 | 949,721 | ||||
New York City, New York, City Housing Development | ||||||
Corporation, Presidential Revenue Bonds (The Animal | ||||||
Medical Center), Series A, 5.50%, 12/01/33 | 2,485 | 2,185,756 | ||||
New York City, New York, City IDA, Civic Facility | ||||||
Revenue Bonds: | ||||||
(A Very Special Place Inc. Project), Series A, | ||||||
6.125%, 1/01/13 | 355 | 317,185 | ||||
(A Very Special Place Inc. Project), Series A, | ||||||
7%, 1/01/33 | 1,600 | 1,140,896 | ||||
(PSCH Inc. Project), 6.375%, 7/01/33 | 6,000 | 4,292,220 | ||||
Series C, 6.80%, 6/01/28 | 2,500 | 2,128,375 | ||||
(Special Needs Facility Pooled Program), | ||||||
Series A-1, 6.50%, 7/01/17 | 1,000 | 821,600 | ||||
(Special Needs Facility Pooled Program), | ||||||
Series C-1, 6.50%, 7/01/17 | 2,540 | 2,090,725 | ||||
New York City, New York, City IDA, Civic Facility Revenue | ||||||
Refunding Bonds (Special Needs Facilities Pooled | ||||||
Program)(f): | ||||||
Series A-1, 4.375%, 7/01/20 | 1,000 | 683,650 | ||||
Series A-1, 4.50%, 7/01/30 | 210 | 115,206 | ||||
Series C-1, 5.10%, 7/01/31 | 525 | 313,598 | ||||
New York City, New York, City IDA, PILOT Revenue Bonds: | ||||||
(Queen Baseball Stadium Project) | ||||||
5%, 1/01/36 (g) | 2,000 | 1,379,720 | ||||
(Queen Baseball Stadium Project) | ||||||
5%, 1/01/39 (g) | 1,250 | 848,587 | ||||
(Queen Baseball Stadium Project) | ||||||
5%, 1/01/46 (g) | 3,150 | 2,069,959 | ||||
(Yankee Stadium Project) 5%, 3/01/36 (b) | 500 | 347,135 | ||||
(Yankee Stadium Project) 5%, 3/01/46 (c) | 400 | 262,668 | ||||
New York City, New York, City IDA, Special Facility | ||||||
Revenue Bonds, AMT: | ||||||
(1990 American Airlines Inc. Project), | ||||||
5.40%, 7/01/20 | 3,500 | 1,185,450 | ||||
(British Airways Plc Project), 5.25%, 12/01/32 | 1,000 | 478,640 | ||||
(Continental Airlines Inc. Project), 8%, 11/01/12 | 1,250 | 1,066,112 | ||||
(Continental Airlines Inc. Project), | ||||||
8.375%, 11/01/16 | 250 | 179,635 | ||||
(Continental Airlines Inc. Project), 7.75%, 8/01/31 | 2,000 | 1,210,540 | ||||
New York City, New York, City IDA, Special Facility | ||||||
Revenue Refunding Bonds (Terminal One Group | ||||||
Association Project), AMT, 5.50%, 1/01/24 | 2,500 | 2,183,275 | ||||
New York City, New York, City Municipal Water Finance | ||||||
Authority, Water and Sewer System Revenue Bonds, | ||||||
Series A: | ||||||
4.25%, 6/15/33 | 1,000 | 799,970 | ||||
5.75%, 6/15/40 | 500 | 511,250 | ||||
See Notes to Financial Statements.
42 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Schedule of Investments (continued) | BlackRock New York Municipal Bond Fund | |||||||||||||
(Percentages shown are based on Net Assets) | ||||||||||||||
Par | Par | |||||||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||||||
New York (continued) | New York (continued) | |||||||||||||
New York City, New York, City Transitional Finance | New York State Dormitory Authority Revenue Bonds: | |||||||||||||
Authority, Building Aid Revenue Bonds: | (Rochester University), Series A, | |||||||||||||
Series S-1, 5.625%, 7/15/38 | $ 200 | $ 195,074 | 5.125%, 7/01/14 (a) | $ 1,500 | $ 1,739,595 | |||||||||
Series S-2, 4.50%, 1/15/31 (b)(c) | 1,250 | 1,057,512 | (Rochester University), Series A, 5.25%, 7/01/23 | 250 | 253,153 | |||||||||
New York City, New York, City Transitional Finance | (School Districts Financing Program), Series E, | |||||||||||||
Authority, Building Aid Revenue Refunding Bonds, | 5.75%, 10/01/30 (b) | 1,180 | 1,183,422 | |||||||||||
Series S-1, 4.50%, 1/15/38 | 1,000 | 829,880 | New York State Dormitory Authority, Revenue Refunding | |||||||||||
New York City, New York, City Transitional Finance | Bonds (Upstate Community Colleges), Series B, | |||||||||||||
Authority, Future Tax-Secured Revenue Bonds, | 5.25%, 7/01/21 | 1,565 | 1,607,052 | |||||||||||
Series B, 5.50%, 2/01/17 | 170 | 180,321 | New York State Dormitory Authority, State Personal | |||||||||||
New York City, New York, IDA, Civic Facility Revenue | Income Tax Revenue Bonds (Education), Series B, | |||||||||||||
Bonds (Lycee Francais de New York Project), | 5.25%, 3/15/38 | 2,000 | 1,941,700 | |||||||||||
Series A (f): | New York State Dormitory Authority, State Supported | |||||||||||||
5.50%, 6/01/15 | 250 | 234,817 | Debt Revenue Bonds (Mental Health Services | |||||||||||
5.375%, 6/01/23 | 300 | 227,403 | Facilities), Series A, 5%, 2/15/33 (j) | 1,800 | 1,627,074 | |||||||||
New York Convention Center Development Corporation, | New York State Energy Research and Development | |||||||||||||
New York, Revenue Bonds (Hotel Unit Fee Secured) (g): | Authority, PCR, Refunding (Central Hudson Gas and | |||||||||||||
5%, 11/15/35 | 4,950 | 4,334,814 | Electric), Series A, 5.45%, 8/01/27 (g) | 2,000 | 1,992,960 | |||||||||
5%, 11/15/44 | 1,340 | 1,133,385 | New York State Environmental Facilities Corporation, | |||||||||||
New York Counties Tobacco Trust I, Tobacco Pass-Thru | Special Obligation Revenue Refunding Bonds | |||||||||||||
Bonds, Series B: | (Riverbank State Park), 6.25%, 4/01/12 (g) | 3,000 | 3,168,120 | |||||||||||
6.50%, 6/01/10 (a) | 1,550 | 1,661,073 | New York State, GO, Series A, 4.125%, 3/01/37 (c)(b) | 485 | 357,877 | |||||||||
6.625%, 6/01/10 (a) | 1,010 | 1,084,134 | ||||||||||||
6.50%, 6/01/35 | 750 | 602,572 | New York State, HFA, M/F Housing Revenue Bonds, | |||||||||||
6.625%, 6/01/42 | 490 | 383,954 | Series A, AMT: | |||||||||||
(Division Street), 5.10%, 2/15/38 (e) | 875 | 665,954 | ||||||||||||
New York Liberty Development Corporation | (Kensico Terrace Apartments), 4.90%, 2/15/38 (e) | 645 | 476,468 | |||||||||||
Revenue Bonds: | (Watergate II), 4.75%, 2/15/34 | 580 | 420,187 | |||||||||||
(Goldman Sachs Headquarters), | ||||||||||||||
5.25%, 10/01/35 | 1,000 | 750,940 | New York State Mortgage Agency, Homeowner Mortgage | |||||||||||
(National Sports Museum Project), Series A, | Revenue Bonds, AMT, Series 143, 4.90%, 10/01/37 | 1,900 | 1,410,503 | |||||||||||
6.125%, 2/15/19 (h)(i) | 1,000 | 117,500 | New York State Mortgage Agency, Homeowner Mortgage | |||||||||||
New York State Dormitory Authority, Non-State | Revenue Refunding Bonds, AMT, Series 133, | |||||||||||||
Supported Debt, Lease Revenue Bonds (Municipal | 4.95%, 10/01/21 | 1,000 | 882,150 | |||||||||||
Health Facilities Improvement Program), Sub-Series | New York State Municipal Bond Bank Agency, | |||||||||||||
2-4, 4.75%, 1/15/30 | 2,600 | 2,279,212 | Special School Purpose Revenue Bonds, Series C, | |||||||||||
New York State Dormitory Authority, Non-State | 5.25%, 12/01/22 | 1,000 | 993,810 | |||||||||||
Supported Debt Revenue Bonds: | New York State Thruway Authority, Highway and Bridge | |||||||||||||
(New York University Hospitals Center), Series B, | Trust Fund, Revenue Refunding Bonds, Series C, | |||||||||||||
5.625%, 7/01/37 | 530 | 308,402 | 5%, 4/01/20 (g) | 2,190 | 2,223,485 | |||||||||
(Rochester Institute of Technology), Series A, | New York State Urban Development Corporation, | |||||||||||||
6%, 7/01/33 | 1,000 | 1,016,640 | Revenue Refunding Bonds: | |||||||||||
New York State Dormitory Authority, Non-State | (Clarkson Center Advance Materials), | |||||||||||||
Supported Debt, Revenue Refunding Bonds: | 5.50%, 1/01/20 | 1,685 | 1,820,811 | |||||||||||
(Mount Sinai-NYU Medical Center Health System), | (University Facility Grants), 5.50%, 1/01/19 | 3,500 | 3,832,500 | |||||||||||
Series A, 6.625%, 7/01/10 (a) | 3,200 | 3,491,776 | Niagara County, New York, IDA, Solid Waste Disposal | |||||||||||
(Mount Sinai-NYU Medical Center Health System), | Revenue Refunding Bonds, AMT, Series A, | |||||||||||||
Series A, 6.625%, 7/01/18 | 1,650 | 1,634,572 | 5.45%, 11/15/26 | 3,975 | 3,518,074 | |||||||||
(New York University Hospital Center), Series A, | ||||||||||||||
5%, 7/01/16 | 1,130 | 847,579 | Niagara County, New York, Tobacco Asset Securitization | |||||||||||
(School Districts Financing Program), Series B, | Corporation, Asset-Backed Revenue Bonds, | |||||||||||||
5%, 4/01/36 (j) | 1,000 | 929,730 | 6.25%, 5/15/40 | 1,000 | 746,090 | |||||||||
New York State Dormitory Authority, Nursing Home | North Country, New York, Development Authority, Solid | |||||||||||||
Revenue Refunding Bonds (Menorah Campus Inc.), | Waste Management System, Revenue Refunding | |||||||||||||
6.10%, 2/01/37 (k) | 1,000 | 999,940 | Bonds, 6%, 5/15/15 (j) | 1,000 | 1,082,460 |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 43 |
Schedule of Investments (continued) | BlackRock New York Municipal Bond Fund | |||||||||||||
(Percentages shown are based on Net Assets) | ||||||||||||||
Par | Par | |||||||||||||
Municipal Bonds | (000) | Value | Municipal Bonds | (000) | Value | |||||||||
New York (continued) | New York (concluded) | |||||||||||||
Onondaga County, New York, IDA, Revenue Bonds | Triborough Bridge and Tunnel Authority, New York, | |||||||||||||
(Air Cargo), AMT: | Revenue Refunding Bonds: | |||||||||||||
6.125%, 1/01/32 | $ 3,955 | $ 2,666,342 | 5.25%, 11/15/23 (b) | $ 3,900 | $ 3,921,450 | |||||||||
7.25%, 1/01/32 | 1,365 | 1,033,319 | Series B, 5%, 11/15/27 | 2,000 | 1,961,580 | |||||||||
Orange County, New York, IDA, Civic Facility Revenue | Series B, 5.125%, 11/15/29 | 1,000 | 976,760 | |||||||||||
Bonds (Special Needs Facilities Pooled Program), | Troy, New York, City School District, GO, Refunding (j): | |||||||||||||
Series G-1, 4.90%, 7/01/21 (f) | 845 | 589,126 | 5.75%, 7/15/17 | 765 | 790,857 | |||||||||
Port Authority of New York and New Jersey, Consolidated | 5.75%, 7/15/18 | 805 | 828,788 | |||||||||||
Revenue Refunding Bonds, 132nd Series, | 5.75%, 7/15/19 | 850 | 872,432 | |||||||||||
5%, 9/01/25 | 1,000 | 984,710 | Utica, New York, IDA, Civic Facility Revenue Bonds: | |||||||||||
Port Authority of New York and New Jersey, Special | (Munson, Williams, Proctor Institute), | |||||||||||||
Obligation Revenue Bonds (JFK International Air | 5.375%, 7/15/20 | 1,000 | 1,011,230 | |||||||||||
Terminal LLC), AMT, Series 6 (b): | (Munson, Williams, Proctor Institute), | |||||||||||||
6.25%, 12/01/10 | 5,250 | 5,274,308 | 5.40%, 7/15/30 | 1,210 | 1,190,313 | |||||||||
6.25%, 12/01/11 | 2,555 | 2,548,331 | (Utica College Project), Series A, 5.75%, 8/01/28 | 1,505 | 1,014,189 | |||||||||
6.25%, 12/01/13 | 1,575 | 1,516,536 | Webster, New York, Central School District, GO, | |||||||||||
6.25%, 12/01/14 | 2,620 | 2,483,262 | Refunding, 5%, 6/15/23 (j) | 1,000 | 1,011,200 | |||||||||
Rensselaer County, New York, IDA, Civic Facility | Westchester County, New York, IDA, Civic Facility | |||||||||||||
Revenue Bonds (Rensselaer Polytechnic Institute), | Revenue Bonds (Special Needs Facilities Pooled | |||||||||||||
5%, 3/01/36 | 700 | 604,177 | Program), Series E-1, 4.90%, 7/01/21 (f) | 350 | 233,142 | |||||||||
Rochester, New York, Housing Authority, Mortgage | Westchester County, New York, IDA, Continuing Care | |||||||||||||
Revenue Bonds (Andrews Terrace Apartments | Retirement, Mortgage Revenue Bonds (Kendal on | |||||||||||||
Project), AMT, 4.70%, 12/20/38 (l) | 500 | 354,595 | Hudson Project), Series A, 6.50%, 1/01/13 (a) | 5,200 | 6,123,728 | |||||||||
Sachem Central School District (Holbrook), New York, | Yonkers, New York, IDA, Revenue Bonds (Sacred | |||||||||||||
GO, Series B, 5%, 10/15/13 (a)(b) | 2,300 | 2,623,817 | Heart Associates, LP Project), AMT, Series A, | |||||||||||
Schenectady, New York, IDA, Civic Facility Revenue | 5%, 10/01/37 (e) | 1,000 | 768,770 | |||||||||||
Refunding Bonds (Union College Project), | 178,007,056 | |||||||||||||
5%, 7/01/31 | 2,900 | 2,617,250 | ||||||||||||
Suffolk County, New York, IDA, Civic Facility Revenue | Guam — 0.9% | |||||||||||||
Bonds: | Guam Economic Development and Commerce | |||||||||||||
(Huntington Hospital Project), Series B, | Authority, Tobacco Settlement Asset-Backed Revenue | |||||||||||||
5.875%, 11/01/32 | 2,000 | 1,546,060 | Refunding Bonds, 5.625%, 6/01/47 | 1,075 | 704,469 | |||||||||
(Special Needs Facilities Pooled Program), | Guam Government Waterworks Authority, Water and | |||||||||||||
Series D-1, 6.50%, 7/01/17 | 135 | 110,746 | Wastewater System, Revenue Refunding Bonds, | |||||||||||
(Special Needs Facilities Pooled Program), | 5.875%, 7/01/35 | 2,000 | 1,319,480 | |||||||||||
Series D-1, 4.90%, 7/01/21 (f) | 330 | 230,073 | 2,023,949 | |||||||||||
Suffolk County, New York, IDA, IDR (Keyspan-Port | ||||||||||||||
Jefferson), AMT, 5.25%, 6/01/27 | 1,360 | 970,904 | Puerto Rico — 8.5% | |||||||||||
Suffolk County, New York, IDA, IDR, Refunding | Children's Trust Fund Project of Puerto Rico, | |||||||||||||
(Nissequogue Cogeneration Partners Facility), AMT, | Tobacco Settlement Revenue Refunding Bonds, | |||||||||||||
5.50%, 1/01/23 | 5,000 | 3,419,200 | 5.625%, 5/15/43 | 1,000 | 665,360 | |||||||||
Suffolk County, New York, IDA, Solid Waste Disposal | Puerto Rico Commonwealth Aqueduct and Sewer | |||||||||||||
Facility, Revenue Refunding Bonds (Ogden | Authority, Senior Lien Revenue Bonds, Series A, | |||||||||||||
Martin System Huntington Project), AMT, | 6%, 7/01/38 | 2,000 | 1,641,540 | |||||||||||
6.25%, 10/01/12 (g) | 7,155 | 7,285,436 | ||||||||||||
Puerto Rico Commonwealth Infrastructure Financing | ||||||||||||||
Sullivan County, New York, IDA, Civic Facility Revenue | Authority, Special Tax and Capital Appreciation | |||||||||||||
Bonds (Special Needs Facilities Pooled Program), | Revenue Bonds, Series A (m): | |||||||||||||
Series H-1, 4.90%, 7/01/21 (f) | 330 | 230,073 | 4.77%, 7/01/42 (c) | 7,470 | 660,796 | |||||||||
Tobacco Settlement Financing Corporation of New York | 5%, 7/01/44 (g) | 1,100 | 83,908 | |||||||||||
Revenue Bonds, Series A-1, 5.25%, 6/01/20 (g) | 1,455 | 1,412,398 | Puerto Rico Commonwealth, Public Improvement, | |||||||||||
Tompkins County, New York, IDA, Care Community | GO 5.75%, 7/01/10 (a)(b) | 9,500 | 10,123,011 | |||||||||||
Revenue Refunding Bonds (Kendal at Ithaca), | Puerto Rico Housing Financing Authority, Capital | |||||||||||||
Series A-2: | Funding Program, Subordinate Revenue Refunding | |||||||||||||
5.75%, 7/01/18 | 900 | 842,418 | Bonds, 5.125%, 12/01/27 | 3,000 | 2,814,930 | |||||||||
6%, 7/01/24 | 1,000 | 872,150 |
See Notes to Financial Statements. 44 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Schedule of Investments (concluded) BlackRock New York Municipal Bond Fund (Percentages shown are based on Net Assets) |
Par | ||||||
Municipal Bonds | (000) | Value | ||||
Puerto Rico (concluded) | ||||||
Puerto Rico Industrial, Medical and Environmental | ||||||
Pollution Control Facilities Financing Authority, | ||||||
Special Facilities Revenue Bonds (American | ||||||
Airlines Inc.), Series A, 6.45%, 12/01/25 | $ 1,000 | $ 440,250 | ||||
Puerto Rico Industrial, Tourist, Educational, Medical | ||||||
and Environmental Control Facilities Revenue Bonds: | ||||||
(Cogeneration Facility-AES Puerto Rico Project), | ||||||
AMT, 6.625%, 6/01/26 | 1,420 | 1,148,397 | ||||
(University Plaza Project), Series A, 5%, 7/01/33 (b) | 1,000 | 712,910 | ||||
Puerto Rico Public Buildings Authority, | ||||||
Government Facilities Revenue Bonds, Series I, | ||||||
5.25%, 7/01/14 (a)(n) | 55 | 61,706 | ||||
18,352,808 | ||||||
U.S. Virgin Islands — 1.5% | ||||||
Virgin Islands Government Refinery Facilities, Revenue | ||||||
Refunding Bonds (Hovensa Coker Project), AMT, | ||||||
6.50%, 7/01/21 | 4,500 | 3,240,495 | ||||
Total Municipal Bonds — 93.7% | 201,624,308 | |||||
Municipal Bonds Transferred to | ||||||
Tender Option Bond Trusts (o) | ||||||
New York — 1.8% | ||||||
New York City, New York, GO, Refunding, Series B, | ||||||
5.25%, 8/01/16 | 1,800 | 1,738,836 | ||||
New York State Mortgage Agency, Revenue Refunding | ||||||
Bonds, AMT, Series 101, 5.40%, 4/01/32 | 2,621 | 2,187,506 | ||||
Total Municipal Bonds Transferred to | ||||||
Tender Option Bond Trusts — 1.8% | 3,926,342 | |||||
Total Long-Term Investments | ||||||
(Cost — $233,905,279) — 95.5% | 205,550,650 | |||||
Short-Term Securities | Shares | |||||
CMA New York Municipal Money Fund, | ||||||
0.73% (p)(q) | 5,304,997 | 5,304,997 | ||||
Total Short-Term Securities (Cost — $5,304,997) — 2.5% | 5,304,997 | |||||
Total Investments (Cost — $239,210,276*) — 98.0% | 210,855,647 | |||||
Other Assets Less Liabilities — 3.0% | 6,380,510 | |||||
Liability for Trust Certificates, Including Interest | ||||||
Expense and Fees Payable — (1.0)% | (2,230,615) | |||||
Net Assets — 100.0% | $215,005,542 | |||||
* The cost and unrealized appreciation (depreciation) of investments as of | ||||||
December 31, 2008, as computed for federal income tax purposes, were | ||||||
as follows: | ||||||
Aggregate cost | $236,665,190 | |||||
Gross unrealized appreciation | $ 4,224,903 | |||||
Gross unrealized depreciation | (32,245,693) | |||||
Net unrealized depreciation | $ (28,020,790) |
(a) U.S. government securities, held in escrow, are used to pay interest on this | ||||||
security as well as to retire the bond in full at the date indicated, typically at a | ||||||
premium to par. | ||||||
(b) MBIA Insured. | ||||||
(c) FGIC Insured. | ||||||
(d) CIFG Insured. | ||||||
(e) SONYMA Insured. | ||||||
(f) | ACA Insured. | |||||
(g) AMBAC Insured. | ||||||
(h) Non-income producing security. | ||||||
(i) | Issuer filed for bankruptcy and/or is in default of interest payments. | |||||
(j) | FSA Insured. | |||||
(k) FHA Insured. | ||||||
(l) | GNMA Collateralized. | |||||
(m)Represents a zero-coupon bond. Rate shown reflects the current yield as of | ||||||
report date. | ||||||
(n) Commonwealth Guaranteed. | ||||||
(o) Securities represent bonds transferred to a tender option bond 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 tender option bond | ||||||
trusts. | ||||||
(p) Investments in companies considered to be an affiliate of the Fund, for purpos- | ||||||
es of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: | ||||||
Net | ||||||
Affiliate | Activity | Income | ||||
CMA New York Municipal Money Fund | 2,431,409 | $31,433 | ||||
(q) Represents the current yield as of report date. | ||||||
•Effective July 1, 2008, the Fund adopted Financial Accounting Standards | ||||||
Board Statement of Financial Accounting Standards No. 157, “Fair Value | ||||||
Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, | ||||||
establishes a framework for measuring fair values and requires additional | ||||||
disclosures about the use of fair value measurements. Various inputs are used | ||||||
in determining the fair value of investments, which are as follows: | ||||||
•Level1 — price quotations in active markets/exchanges for identical securities | ||||||
•Level2 — other observable inputs (including, but not limited to: quoted prices | ||||||
for 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 | ||||||
circumstance, to the extent observable inputs are not available (including the | ||||||
Fund’s own assumption used in determining the fair value of investments) | ||||||
The inputs or methodology used for valuing securities are not necessarily an indi- | ||||||
cation of the risk associated with 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, 2008 in | ||||||
determining the fair valuation of the Fund’s investments: | ||||||
Valuation | Investments in | |||||
Inputs | Securities | |||||
Assets | ||||||
Level 1 | $ 5,304,997 | |||||
Level 2 | 205,550,650 | |||||
Level 3 | — | |||||
Total | $210,855,647 |
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT DECEMBER 31, 2008 45 |
Statements of Assets and Liabilities | ||||||||||
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | ||||||
Short-Term | Municipal | National | High Yield | New York | ||||||
Municipal | Insured | Municipal | Municipal | Municipal | ||||||
December 31, 2008 (Unaudited) | Fund | Fund | Fund | Fund | Bond Fund | |||||
Assets | ||||||||||
Investments at value — unaffiliated1 | $ 344,481,411 | $ 716,932,264 | $1,483,036,760 | $ 43,632,182 | $ 205,550,650 | |||||
Investments at value — affiliated2 | 35,331,546 | 22,124,754 | 135,344,328 | 1,701,691 | 5,304,997 | |||||
Cash | 65,266 | 16,337,011 | 94,589 | 87,639 | 51,524 | |||||
Interest receivable | 5,680,809 | 13,260,530 | 29,103,265 | 1,157,807 | 4,306,097 | |||||
Investments sold receivable | — | 3,321,962 | 4,799,684 | — | 2,960,082 | |||||
Capital shares sold receivable | 3,534,734 | 2,219,146 | 11,260,865 | 182,921 | 444,543 | |||||
Prepaid expenses | 43,472 | 37,559 | 135,316 | 25,629 | 30,584 | |||||
Other assets | 1,545 | 924,826 | — | 5,065 | — | |||||
Total assets | 389,138,783 | 775,158,052 | 1,663,774,807 | 46,792,934 | 218,648,477 | |||||
Accrued Liabilities | ||||||||||
Investments purchased payable | 8,360,823 | 3,683,132 | 20,357,200 | — | — | |||||
Income dividends payable | 762,546 | 2,908,003 | 5,565,406 | 286,987 | 831,360 | |||||
Capital shares redeemed payable | 16,245,401 | 1,329,928 | 11,425,452 | 110,667 | 409,432 | |||||
Interest expense and fees payable | — | 614,643 | 64,182 | — | 19,368 | |||||
Investment advisory fees payable | 70,177 | 214,698 | 626,179 | 23,151 | 101,813 | |||||
Distribution fees payable | 35,586 | 85,049 | 318,017 | 3,347 | 36,762 | |||||
Officer’s and Directors’/Trustees’ fees payable | 116 | 252 | 572 | 10,998 | 81 | |||||
Other affiliates payable | 34,590 | 80,330 | 247,330 | 3,258 | 18,311 | |||||
Other liabilities | — | — | 931 | 97,000 | — | |||||
Other accrued expenses payable | 390 | 39,362 | 3,921 | 26,892 | 14,561 | |||||
Total accrued liabilities | 25,509,629 | 8,955,397 | 38,609,190 | 562,300 | 1,431,688 | |||||
Other Liabilities | ||||||||||
Trust certificates3 | — | 59,737,497 | 34,260,000 | — | 2,211,247 | |||||
Total Liabilities | 25,509,629 | 68,692,894 | 72,869,190 | 562,300 | 3,642,935 | |||||
Net Assets | $ 363,629,154 | $ 706,465,158 | $1,590,905,617 | $ 46,230,634 | $ 215,005,542 | |||||
Net Assets Consist of | ||||||||||
BlackRock Shares, $0.10 par value4 | $ 13,823 | — | — | — | — | |||||
Institutional Shares, $0.10 par value5,11 | 2,107,383 | 7,025,666 | $ 8,976,955 | $ 653,714 | $ 153,910 | |||||
Investor A Shares, $0.10 par value6,11 | 261,674 | 2,315,150 | 5,794,583 | 30,765 | 181,760 | |||||
Investor A1 Shares, $0.10 par value7,11 | 847,435 | — | — | — | 1,632,634 | |||||
Investor B Shares, $0.10 par value8,11 | 106,893 | 362,004 | 594,709 | — | 150,586 | |||||
Investor C Shares, $0.10 par value9,11 | 287,914 | 225,146 | 1,455,792 | 51,263 | 104,580 | |||||
Investor C1 Shares, $0.10 par value10,11 | — | 505,835 | 1,011,324 | — | 131,421 | |||||
Paid-in capital in excess of par | 365,282,848 | 767,943,342 | 1,817,210,135 | 77,060,488 | 259,647,001 | |||||
Undistributed net investment income | 486,524 | 1,343,139 | 1,147,344 | 114,845 | 695,675 | |||||
Accumulated net realized loss | (9,218,860) | (18,779,443) | (52,718,438) | (6,166,201) | (19,337,396) | |||||
Net unrealized appreciation/depreciation | 3,453,520 | (54,475,681) | (192,566,787) | (25,514,240) | (28,354,629) | |||||
Net Assets | $ 363,629,154 | $ 706,465,158 | $1,590,905,617 | $ 46,230,634 | $ 215,005,542 |
See Notes to Financial Statements. |
46 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Statements of Assets and Liabilities (concluded) | ||||||||||
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | ||||||
Short-Term | Municipal | National | High Yield | New York | ||||||
Municipal | Insured | Municipal | Municipal | Municipal | ||||||
December 31, 2008 (Unaudited) | Fund | Fund | Fund | Fund | Bond Fund | |||||
Net Asset Value | ||||||||||
BlackRock: | ||||||||||
Net assets | $ 1,387,215 | — | — | — | — | |||||
Shares outstanding | 138,226 | — | — | — | — | |||||
Net asset value | $ 10.04 | — | — | — | — | |||||
Institutional: | ||||||||||
Net assets | $ 211,331,104 | $ 475,756,523 | $ 800,670,163 | $ 41,078,812 | $ 14,043,408 | |||||
Shares outstanding | 21,073,831 | 70,256,660 | 89,769,554 | 6,537,137 | 1,539,097 | |||||
Net asset value | $ 10.03 | $ 6.77 | $ 8.92 | $ 6.28 | $ 9.12 | |||||
Investor A: | ||||||||||
Net assets | $ 26,253,274 | $ 156,719,302 | $ 517,080,649 | $ 1,930,022 | $ 16,597,614 | |||||
Shares outstanding | 2,616,737 | 23,151,499 | 57,945,834 | 307,654 | 1,817,596 | |||||
Net asset value | $ 10.03 | $ 6.77 | $ 8.92 | $ 6.27 | $ 9.13 | |||||
Investor A1: | ||||||||||
Net assets | $ 85,054,240 | — | — | — | $ 149,074,797 | |||||
Shares outstanding | 8,474,345 | — | — | — | 16,326,339 | |||||
Net asset value | $ 10.04 | — | — | — | $ 9.13 | |||||
Investor B: | ||||||||||
Net assets | $ 10,721,323 | $ 24,493,865 | $ 53,022,504 | — | $ 13,745,151 | |||||
Shares outstanding | 1,068,927 | 3,620,039 | 5,947,091 | — | 1,505,856 | |||||
Net asset value | $ 10.03 | $ 6.77 | $ 8.92 | — | $ 9.13 | |||||
Investor C: | ||||||||||
Net assets | $ 28,881,998 | $ 15,257,455 | $ 129,917,241 | $ 3,221,800 | $ 9,545,639 | |||||
Shares outstanding | 2,879,138 | 2,251,463 | 14,557,915 | 512,633 | 1,045,802 | |||||
Net asset value | $ 10.03 | $ 6.78 | $ 8.92 | $ 6.28 | $ 9.13 | |||||
Investor C1: | ||||||||||
Net assets | — | $ 34,238,013 | $ 90,215,060 | — | $ 11,998,933 | |||||
Shares outstanding | — | 5,058,350 | 10,113,236 | — | 1,314,208 | |||||
Net asset value | — | $ 6.77 | $ 8.92 | — | $ 9.13 | |||||
1 Investments at cost — unaffiliated | $ 341,027,891 | $ 771,307,868 | $1,675,603,547 | $ 69,146,422 | $ 233,905,279 | |||||
2 Investments at cost — affiliated | $ 35,331,546 | $ 22,224,831 | $ 135,344,328 | $ 1,701,691 | $ 5,304,997 | |||||
3 Represents short-term floating rate certificates issued by | ||||||||||
tender option bond trusts. | ||||||||||
4 Authorized shares — BlackRock | 150,000,000 | — | — | — | — | |||||
5 Authorized shares — Institutional | 150,000,000 | 500,000,000 | 375,000,000 | 100,000,000 | — | |||||
6 Authorized shares — Investor A | 150,000,000 | 500,000,000 | 375,000,000 | 100,000,000 | — | |||||
7 Authorized shares — Investor A1 | 150,000,000 | — | — | — | — | |||||
8 Authorized shares — Investor B | 150,000,000 | 375,000,000 | 375,000,000 | — | — | |||||
9 Authorized shares — Investor C | 150,000,000 | 375,000,000 | 375,000,000 | 100,000,000 | — | |||||
10 Authorized shares — Investor C1 | — | 375,000,000 | 375,000,000 | — | — | |||||
11 New York Municipal Bond Fund has unlimited number of shares | ||||||||||
authorized |
See Notes to Financial Statements. SEMI-ANNUAL REPORT DECEMBER 31, 2008 47 |
Statements of Operations | ||||||||||
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | ||||||
Short-Term | Municipal | National | High Yield | New York | ||||||
Municipal | Insured | Municipal | Municipal | Municipal | ||||||
Six Months Ended December 31, 2008 (Unaudited) | Fund | Fund | Fund | Fund | Bond Fund | |||||
Investment Income | ||||||||||
Interest | $ 5,648,021 | $ 19,484,512 | $ 47,963,351 | $ 2,270,771 | $ 6,885,406 | |||||
Income — affiliated | 176,184 | 929,557 | 1,120,259 | 26,016 | 31,446 | |||||
Total income | 5,824,205 | 20,414,069 | 49,083,610 | 2,296,787 | 6,916,852 | |||||
Expenses | ||||||||||
Investment advisory | 578,749 | 1,389,590 | 4,012,669 | 188,873 | 660,944 | |||||
Service — Investor A | 18,900 | 203,599 | 612,859 | 5,668 | 21,820 | |||||
Service — Investor A1 | 52,610 | — | — | — | 83,470 | |||||
Service and distribution — Investor B | 18,515 | 109,628 | 234,685 | — | 40,814 | |||||
Service and distribution — Investor C | 73,420 | 73,411 | 585,804 | 21,294 | 45,300 | |||||
Service and distribution — Investor C1 | — | 156,441 | 423,431 | — | 40,530 | |||||
Transfer agent — BlackRock | 36 | — | — | — | — | |||||
Transfer agent — Institutional | 30,404 | 95,402 | 314,541 | 5,024 | 3,294 | |||||
Transfer agent — Investor A | 3,293 | 38,662 | 97,928 | 514 | 4,551 | |||||
Transfer agent — Investor A1 | 20,126 | — | — | �� | — | 46,299 | ||||
Transfer agent — Investor B | 3,412 | 9,447 | 26,000 | — | 5,474 | |||||
Transfer agent — Investor C | 7,569 | 2,571 | 36,538 | 872 | 1,651 | |||||
Transfer agent — Investor C1 | — | 10,762 | 32,962 | — | 3,029 | |||||
Accounting services | 63,462 | 126,585 | 238,369 | 18,207 | 62,231 | |||||
Registration | 31,679 | 27,953 | 54,879 | 22,085 | 23,750 | |||||
Professional | 19,619 | 30,393 | 37,612 | 28,841 | 26,093 | |||||
Custodian | 14,997 | 24,013 | 45,370 | 4,442 | 8,353 | |||||
Officer and Directors/Trustees | 10,993 | 17,076 | 29,414 | 7,422 | 9,729 | |||||
Printing | 10,039 | 27,484 | 55,540 | 2,853 | 31,354 | |||||
Miscellaneous | 20,005 | 31,125 | 59,852 | 16,514 | 22,518 | |||||
Total expenses excluding interest expense and fees | 977,828 | 2,374,142 | 6,898,453 | 322,609 | 1,141,204 | |||||
Interest expense and fees1 | — | 1,117,594 | 902,491 | 10,369 | 23,169 | |||||
Total expenses | 977,828 | 3,491,736 | 7,800,944 | 332,978 | 1,164,373 | |||||
Less fees waived by advisor | (211,267) | (23,304) | (126,916) | (2,324) | (9,141) | |||||
Less fees paid indirectly | — | — | — | — | (30) | |||||
Total expenses after fees waived and paid indirectly | 766,561 | 3,468,432 | 7,674,028 | 330,654 | 1,155,202 | |||||
Net investment income | 5,057,644 | 16,945,637 | 41,409,582 | 1,966,133 | 5,761,650 | |||||
Realized and Unrealized Gain (Loss) | ||||||||||
Net realized gain (loss) from: | ||||||||||
Investments — unaffiliated | 171,152 | (9,580,545) | (7,587,557) | (3,640,086) | (2,291,210) | |||||
Investments — affiliated | — | (2,629,224) | — | — | — | |||||
Futures and swaps | — | (1,600,511) | — | 19,046 | 24,890 | |||||
171,152 | (13,810,280) | (7,587,557) | (3,621,040) | (2,266,320) | ||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||
Investments | 1,803,195 | (53,526,370) | (176,328,000) | (16,649,692) | (28,241,259) | |||||
Swaps | — | (477,428) | — | (11,349) | — | |||||
1,803,195 | (54,003,798) | (176,328,000) | (16,661,041) | (28,241,259) | ||||||
Total realized and unrealized gain (loss) | 1,974,347 | (67,814,078) | (183,915,557) | (20,282,081) | (30,507,579) | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ 7,031,991 | $ (50,868,441) | $(142,505,975) | $ (18,315,948) | $ (24,745,929) | |||||
1 Related to tender option bond trusts. |
See Notes to Financial Statements. |
48 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Statements of Changes in Net Assets | BlackRock Short-Term Municipal Fund | |||
Six Months Ended | ||||
December 31, 2008 | Year Ended | |||
Increase (Decrease) in Net Assets: | (Unaudited) | June 30, 2008 | ||
Operations | ||||
Net investment income | $ 5,057,644 | $ 8,966,686 | ||
Net realized gain | 171,152 | 12,000 | ||
Net change in unrealized appreciation/depreciation | 1,803,195 | 2,166,329 | ||
Net increase in net assets resulting from operations | 7,031,991 | 11,145,015 | ||
Dividends to Shareholders From | ||||
Net investment income: | ||||
BlackRock | (22,797) | (71,785) | ||
Institutional | (2,994,715) | (4,627,509) | ||
Investor A | (208,725) | (194,842) | ||
Investor A1 | (1,543,547) | (3,596,769) | ||
Investor B | (141,773) | (373,728) | ||
Investor C | (146,087) | (102,443) | ||
Decrease in net assets resulting from dividends to shareholders | (5,057,644) | (8,967,076) | ||
Capital Share Transactions | ||||
Net increase in net assets derived from capital share transactions | 45,249,221 | 40,508,797 | ||
Net Assets | ||||
Total increase in net assets | 47,223,568 | 42,686,736 | ||
Beginning of period | 316,405,586 | 273,718,850 | ||
End of period | $ 363,629,154 | $ 316,405,586 | ||
End of period undistributed net investment income | $ 486,524 | $ 486,524 |
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
49 |
Statements of Changes in Net Assets | BlackRock Municipal Insured Fund | |||
Six Months Ended | ||||
December 31, 2008 | Year Ended | |||
Increase (Decrease) in Net Assets: | (Unaudited) | June 30, 2008 | ||
Operations | ||||
Net investment income | $ 16,945,637 | $ 35,653,293 | ||
Net realized gain (loss) | (13,810,280) | 574,108 | ||
Net change in unrealized appreciation/depreciation | (54,003,798) | (26,571,541) | ||
Net increase (decrease) in net assets resulting from operations | (50,868,441) | 9,655,860 | ||
Dividends and Distributions to Shareholders From | ||||
Net investment income: | ||||
Institutional | (12,608,787) | (25,806,603) | ||
Investor A | (3,792,255) | (7,157,029) | ||
Investor B | (602,243) | (1,463,472) | ||
Investor C | (288,858) | (297,697) | ||
Investor C1 | (798,857) | (1,726,891) | ||
Net realized gain: | ||||
Institutional | (250,600) | (1,052,942) | ||
Investor A | (81,392) | (306,404) | ||
Investor B | (12,994) | (73,110) | ||
Investor C | (7,834) | (15,328) | ||
Investor C1 | (18,274) | (86,569) | ||
Decrease in net assets resulting from dividends and distributions to shareholders | (18,462,094) | (37,986,045) | ||
Capital Share Transactions | ||||
Net decrease in net assets derived from capital share transactions | (28,095,977) | (46,231,224) | ||
Net Assets | ||||
Total decrease in net assets | (97,426,512) | (74,561,409) | ||
Beginning of period | 803,891,670 | 878,453,079 | ||
End of period | $ 706,465,158 | $ 803,891,670 | ||
End of period undistributed net investment income | $ 1,343,139 | $ 2,488,502 |
See Notes to Financial Statements. |
50 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Statements of Changes in Net Assets | BlackRock National Municipal Fund | |||
Six Months Ended | ||||
December 31, 2008 | Year Ended | |||
Increase (Decrease) in Net Assets: | (Unaudited) | June 30, 2008 | ||
Operations | ||||
Net investment income | $ 41,409,582 | $ 74,910,375 | ||
Net realized loss | (7,587,557) | (15,131,451) | ||
Net change in unrealized appreciation/depreciation | (176,328,000) | (57,072,431) | ||
Net increase (decrease) in net assets resulting from operations | (142,505,975) | 2,706,493 | ||
Dividends to Shareholders From | ||||
Net investment income: | ||||
Institutional | (22,883,330) | (46,078,948) | ||
Investor A | (11,947,984) | (17,700,693) | ||
Investor B | (1,346,119) | (3,342,484) | ||
Investor C | (2,410,480) | (2,504,463) | ||
Investor C1 | (2,262,447) | (4,959,335) | ||
Decrease in net assets resulting from dividends to shareholders | (40,850,360) | (74,585,923) | ||
Capital Share Transactions | ||||
Net increase in net assets derived from capital share transactions | 36,493,873 | 200,680,907 | ||
Net Assets | ||||
Total increase (decrease) in net assets | (146,862,462) | 128,801,477 | ||
Beginning of period | 1,737,768,079 | 1,608,966,602 | ||
End of period | $ 1,590,905,617 | $1,737,768,079 | ||
End of period undistributed net investment income | $ 1,147,344 | $ 588,122 |
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
51 |
Statement of Changes in Net Assets | BlackRock High Yield Municipal Fund | |||
Six Months Ended | ||||
December 31, 2008 | Year Ended | |||
Increase (Decrease) in Net Assets: | (Unaudited) | June 30, 2008 | ||
Operations | ||||
Net investment income | $ 1,966,133 | $ 3,556,720 | ||
Net realized loss | (3,621,040) | (2,545,168) | ||
Net change in unrealized appreciation/depreciation | (16,661,041) | (7,907,693) | ||
Net decrease in net assets resulting from operations | (18,315,948) | (6,896,141) | ||
Dividends and Distributions to Shareholders From | ||||
Net investment income: | ||||
Institutional | (1,739,983) | (3,141,405) | ||
Investor A | (122,677) | (269,449) | ||
Investor C | (103,204) | (145,136) | ||
Net realized gain: | ||||
Institutional | — | (135,095) | ||
Investor A | — | (9,128) | ||
Investor C | — | (7,832) | ||
Decrease in net assets resulting from dividends and distributions to shareholders | (1,965,864) | (3,708,045) | ||
Capital Share Transactions | ||||
Net increase (decrease) in net assets derived from capital share transactions | (15,731,508) | 20,113,973 | ||
Net Assets | ||||
Total increase (decrease) in net assets | (36,013,320) | 9,509,787 | ||
Beginning of period | 82,243,954 | 72,734,167 | ||
End of period | $ 46,230,634 | $ 82,243,954 | ||
End of period undistributed net investment income | $ 114,845 | $ 114,576 |
See Notes to Financial Statements. |
52 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Statement of Changes in Net Assets | BlackRock New York Municipal Bond Fund | |||||
Six Months Ended | Period | Year Ended | ||||
December 31, 2008 | October 1, 2007 | September 30, | ||||
Increase (Decrease) in Net Assets: | (Unaudited) | to June 30, 2008 | 2007 | |||
Operations | ||||||
Net investment income | $ 5,761,650 | $ 8,770,678 | $ 12,167,863 | |||
Net realized gain (loss) | (2,266,320) | (430,162) | 1,055,885 | |||
Net change in unrealized appreciation/depreciation | (28,241,259) | (11,324,957) | (7,711,447) | |||
Net increase (decrease) in net assets resulting from operations | (24,745,929) | (2,984,441) | 5,512,301 | |||
Dividends to Shareholders From | ||||||
Net investment income: | ||||||
Institutional | (412,190) | (528,998) | (580,129) | |||
Investor A | (410,473) | (492,475) | (254,373) | |||
Investor A1 | (4,045,237) | (6,420,560) | (9,328,279) | |||
Investor B | (361,219) | (649,323) | (1,180,558) | |||
Investor C | (180,001) | (175,050) | (65,246) | |||
Investor C1 | (293,772) | (450,890) | (676,159) | |||
Decrease in net assets resulting from dividends to shareholders | (5,702,892) | (8,717,296) | (12,084,744) | |||
Capital Share Transactions | ||||||
Net decrease in net assets derived from capital share transactions | (7,042,439) | (13,427,395) | (4,023,200) | |||
Net Assets | ||||||
Total decrease in net assets | (37,491,260) | (25,129,132) | (10,595,643) | |||
Beginning of period | 252,496,802 | 277,625,934 | 288,221,577 | |||
End of period | $ 215,005,542 | $ 252,496,802 | $ 277,625,934 | |||
End of period undistributed net investment income | $ 695,675 | $ 636,917 | $ 583,535 |
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
53 |
Financial Highlights | BlackRock Short-Term Municipal Fund | |||||
BlackRock | ||||||
Six Months Ended | Period | |||||
December 31, | Year Ended | October 2, 20061 | ||||
2008 | June 30, | to June 30, | ||||
(Unaudited) | 2008 | 2007 | ||||
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 9.98 | $ 9.89 | $ 9.93 | |||
Net investment income2 | 0.15 | 0.33 | 0.25 | |||
Net realized and unrealized gain (loss) | 0.06 | 0.09 | (0.04) | |||
Net increase from investment operations | 0.21 | 0.42 | 0.21 | |||
Dividends from net investment income | (0.15) | (0.33) | (0.25) | |||
Net asset value, end of period | $ 10.04 | $ 9.98 | $ 9.89 | |||
Total Investment Return | ||||||
Based on net asset value | 2.11%3 | 4.26% | 2.09%3 | |||
Ratios to Average Net Assets | ||||||
Total expenses after waiver | 0.43%4 | 0.39% | 0.35%4 | |||
Total expenses | 0.44%4 | 0.42% | 0.45%4 | |||
Net investment income | 2.96%4 | 3.28% | 3.34%4 | |||
Supplemental Data | ||||||
Net assets, end of period (000) | $ 1,387 | $ 1,822 | $ 2,457 | |||
Portfolio turnover | 24% | 33% | 110% |
1 Commencement of operations.
2 Based on average shares outstanding.
3 Aggregate total investment return.
4 Annualized.
See Notes to Financial Statements. |
54 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund | |||||||||||||
Institutional | ||||||||||||||
Six Months | ||||||||||||||
Ended | ||||||||||||||
December 31, | ||||||||||||||
2008 | Year Ended June 30, | |||||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||
Per Share Operating Performance | ||||||||||||||
Net asset value, beginning of period | $ 9.97 | $ 9.88 | $ 9.88 | $ 9.99 | $ 10.05 | $ 10.17 | ||||||||
Net investment income1 | 0.15 | 0.33 | 0.32 | 0.27 | 0.19 | 0.18 | ||||||||
Net realized and unrealized gain (loss) | 0.06 | 0.09 | 0.002 | (0.11) | (0.06) | (0.12) | ||||||||
Net increase from investment operations | 0.21 | 0.42 | 0.32 | 0.16 | 0.13 | 0.06 | ||||||||
Dividends from net investment income | (0.15) | (0.33) | (0.32) | (0.27) | (0.19) | (0.18) | ||||||||
Net asset value, end of period | $ 10.03 | $ 9.97 | $ 9.88 | $ 9.88 | $ 9.99 | $ 10.05 | ||||||||
Total Investment Return3 | ||||||||||||||
Based on net asset value | 2.15%4 | 4.31% | 3.32% | 1.57% | 1.30% | 0.59% | ||||||||
Ratios to Average Net Assets | ||||||||||||||
Total expenses after waiver | 0.35%5 | 0.35% | 0.38% | 0.44% | 0.43% | 0.42% | ||||||||
Total expenses | 0.47%5 | 0.49% | 0.48% | 0.45% | 0.44% | 0.43% | ||||||||
Net investment income | 3.03%5 | 3.30% | 3.27% | 2.66% | 1.88% | 1.78% | ||||||||
Supplemental Data | ||||||||||||||
Net assets, end of period (000) | $ 211,331 | $ 181,624 | $ 131,061 | $ 149,333 | $ 186,877 | $ 243,443 | ||||||||
Portfolio turnover | 24% | 33% | 110% | 83% | 87% | 69% |
1 Based on average shares outstanding.
2 Total amount is less than $0.01 per share.
3 Total investment returns exclude the effects of any sales charges.
4 Aggregate total investment return.
5 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
55 |
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund | |||||
Investor A | ||||||
Six Months | Period | |||||
Ended | Year Ended | October 2, 20061 | ||||
December 31, 2008 | June 30, | to June 30, | ||||
(Unaudited) | 2008 | 2007 | ||||
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 9.98 | $ 9.88 | $ 9.93 | |||
Net investment income2 | 0.14 | 0.30 | 0.23 | |||
Net realized and unrealized gain (loss) | 0.05 | 0.11 | (0.05) | |||
Net increase from investment operations | 0.19 | 0.41 | 0.18 | |||
Dividends from net investment income | (0.14) | (0.31) | (0.23) | |||
Net asset value, end of period | $ 10.03 | $ 9.98 | $ 9.88 | |||
Total Investment Return3 | ||||||
Based on net asset value | 1.92%4 | 4.15% | 1.79%4 | |||
Ratios to Average Net Assets | ||||||
Total expenses after waiver | 0.60%5 | 0.60% | 0.61%5 | |||
Total expenses | 0.73%5 | 0.79% | 1.06%5 | |||
Net investment income | 2.77%5 | 3.03% | 3.12%5 | |||
Supplemental Data | ||||||
Net assets, end of period (000) | $ 26,253 | $ 9,403 | $ 1,456 | |||
Portfolio turnover | 24% | 33% | 110% |
1 Commencement of operations.
2 Based on average shares outstanding.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Annualized.
See Notes to Financial Statements. |
56 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund | |||||||||||||
Investor A1 | ||||||||||||||
Six Months | ||||||||||||||
Ended | ||||||||||||||
December 31, | ||||||||||||||
2008 | Year Ended June 30, | |||||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||
Per Share Operating Performance | ||||||||||||||
Net asset value, beginning of period | $ 9.98 | $ 9.89 | $ 9.89 | $ 10.00 | $ 10.06 | $ 10.18 | ||||||||
Net investment income1 | 0.15 | 0.32 | 0.32 | 0.26 | 0.18 | 0.17 | ||||||||
Net realized and unrealized gain (loss) | 0.06 | 0.09 | (0.01) | (0.11) | (0.06) | (0.12) | ||||||||
Net increase from investment operations | 0.21 | 0.41 | 0.31 | 0.15 | 0.12 | 0.05 | ||||||||
Dividends from net investment income | (0.15) | (0.32) | (0.31) | (0.26) | (0.18) | (0.17) | ||||||||
Net asset value, end of period | $ 10.04 | $ 9.98 | $ 9.89 | $ 9.89 | $ 10.00 | $ 10.06 | ||||||||
Total Investment Return2 | ||||||||||||||
Based on net asset value | 2.10%3 | 4.20% | 3.21% | 1.47% | 1.20% | 0.50% | ||||||||
Ratios to Average Net Assets | ||||||||||||||
Total expenses after waiver | 0.45%4 | 0.45% | 0.48% | 0.54% | 0.53% | 0.52% | ||||||||
Total expenses | 0.57%4 | 0.59% | 0.58% | 0.55% | 0.54% | 0.53% | ||||||||
Net investment income | 2.94%4 | 3.22% | 3.18% | 2.55% | 1.76% | 1.68% | ||||||||
Supplemental Data | ||||||||||||||
Net assets, end of period (000) | $ 85,054 | $ 105,580 | $ 122,281 | $ 99,293 | $ 141,172 | $ 244,741 | ||||||||
Portfolio turnover | 24% | 33% | 110% | 83% | 87% | 69% |
1 Based on average shares outstanding.
2 Total investment returns exclude the effects of sales charges.
3 Aggregate total investment return.
4 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
57 |
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund | |||||||||||||
Investor B | ||||||||||||||
Six Months | ||||||||||||||
Ended | ||||||||||||||
December 31, | ||||||||||||||
2008 | Year Ended June 30, | |||||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||
Per Share Operating Performance | ||||||||||||||
Net asset value, beginning of period | $ 9.97 | $ 9.88 | $ 9.88 | $ 10.00 | $ 10.05 | $ 10.17 | ||||||||
Net investment income1 | 0.14 | 0.30 | 0.29 | 0.23 | 0.15 | 0.14 | ||||||||
Net realized and unrealized gain (loss) | 0.06 | 0.08 | (0.00)2 | (0.12) | (0.05) | (0.12) | ||||||||
Net increase from investment operations | 0.20 | 0.38 | 0.29 | 0.11 | 0.10 | 0.02 | ||||||||
Dividends from net investment income | (0.14) | (0.29) | (0.29) | (0.23) | (0.15) | (0.14) | ||||||||
Net asset value, end of period | $ 10.03 | $ 9.97 | $ 9.88 | $ 9.88 | $ 10.00 | $ 10.05 | ||||||||
Total Investment Return3 | ||||||||||||||
Based on net asset value | 1.97%4 | 3.94% | 2.95% | 1.11% | 1.04% | 0.24% | ||||||||
Ratios to Average Net Assets | ||||||||||||||
Total expenses after waiver | 0.70%5 | 0.70% | 0.74% | 0.80% | 0.79% | 0.77% | ||||||||
Total expenses | 0.85%5 | 0.85% | 0.85% | 0.81% | 0.80% | 0.78% | ||||||||
Net investment income | 2.68%5 | 2.97% | 2.90% | 2.28% | 1.50% | 1.43% | ||||||||
Supplemental Data | ||||||||||||||
Net assets, end of period (000) | $ 10,721 | $ 10,612 | $ 14,380 | $ 23,769 | $ 38,565 | $ 63,135 | ||||||||
Portfolio turnover | 24% | 33% | 110% | 83% | 87% | 69% |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Annualized.
See Notes to Financial Statements. |
58 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund | |||||
Investor C | ||||||
Six Months | Period | |||||
Ended | Year Ended | October 2, 20061 | ||||
December 31, 2008 | June 30, | to June 30, | ||||
(Unaudited) | 2008 | 2007 | ||||
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 9.97 | $ 9.88 | $ 9.93 | |||
Net investment income2 | 0.10 | 0.23 | 0.17 | |||
Net realized and unrealized gain (loss) | 0.06 | 0.09 | (0.05) | |||
Net increase from investment operations | 0.16 | 0.32 | 0.12 | |||
Dividends from net investment income | (0.10) | (0.23) | (0.17) | |||
Net asset value, end of period | $ 10.03 | $ 9.97 | $ 9.88 | |||
Total Investment Return3 | ||||||
Based on net asset value | 1.64%4 | 3.27% | 1.23%4 | |||
Ratios to Average Net Assets | ||||||
Total expenses after waiver | 1.35%5 | 1.35% | 1.36%5 | |||
Total expenses | 1.54%5 | 1.78% | 2.06%5 | |||
Net investment income | 2.00%5 | 2.28% | 2.37%5 | |||
Supplemental Data | ||||||
Net assets, end of period (000) | $ 28,882 | $ 7,365 | $ 2,084 | |||
Portfolio turnover | 24% | 33% | 110% |
1 Commencement of operations.
2 Based on average shares outstanding.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
59 |
Financial Highlights (continued) | BlackRock Municipal Insured Fund | |||||||||||
Institutional | ||||||||||||
Six Months | ||||||||||||
Ended | ||||||||||||
December 31, | ||||||||||||
2008 | Year Ended June 30, | |||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||
Per Share Operating Performance | ||||||||||||
Net asset value, beginning of period | $ 7.42 | $ 7.67 | $ 7.69 | $ 8.00 | $ 7.70 | $ 8.07 | ||||||
Net investment income1 | 0.16 | 0.33 | 0.32 | 0.35 | 0.36 | 0.40 | ||||||
Net realized and unrealized gain (loss) | (0.64) | (0.23) | 0.03 | (0.28) | 0.30 | (0.37) | ||||||
Net increase (decrease) from investment operations | (0.48) | 0.10 | 0.35 | 0.07 | 0.66 | 0.03 | ||||||
Dividends and distributions from: | ||||||||||||
Net investment income | (0.17) | (0.34) | (0.33) | (0.35) | (0.36) | (0.40) | ||||||
Net realized gain | (0.00)2 | (0.01) | (0.04) | (0.03) | — | — | ||||||
Total dividends and distributions | (0.17) | (0.35) | (0.37) | (0.38) | (0.36) | (0.40) | ||||||
Net asset value, end of period | $ 6.77 | $ 7.42 | $ 7.67 | $ 7.69 | $ 8.00 | $ 7.70 | ||||||
Total Investment Return3 | ||||||||||||
Based on net asset value | (6.41)%4 | 1.37% | 4.60% | 0.82% | 8.74% | 0.35% | ||||||
Ratios to Average Net Assets | ||||||||||||
Total expenses after waiver and excluding | ||||||||||||
interest expense and fees5 | 0.47%6 | 0.46% | 0.47% | 0.45% | 0.46% | 0.46% | ||||||
Total expenses after waiver | 0.77%6 | 0.84% | 0.87% | 0.74% | 0.63% | 0.66% | ||||||
Total expenses | 0.77%6 | 0.85% | 0.87% | 0.74% | 0.64% | 0.67% | ||||||
Net investment income | 4.61%6 | 4.38% | 4.42% | 4.40% | 4.58% | 5.04% | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000) | $ 475,757 | $ 545,130 | $ 604,691 | $ 639,687 | $ 707,134 | $ 733,310 | ||||||
Portfolio turnover | 8% | 40% | 36% | 41% | 47% | 44% |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred
to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements. |
60 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock Municipal Insured Fund | |||||||||||||
Investor A | ||||||||||||||
Six Months | ||||||||||||||
Ended | ||||||||||||||
December 31, | ||||||||||||||
2008 | Year Ended June 30, | |||||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||
Per Share Operating Performance | ||||||||||||||
Net asset value, beginning of period | $ 7.41 | $ 7.67 | $ 7.68 | $ 8.00 | $ 7.70 | $ 8.07 | ||||||||
Net investment income1 | 0.16 | 0.31 | 0.33 | 0.33 | 0.34 | 0.38 | ||||||||
Net realized and unrealized gain (loss) | (0.64) | (0.24) | 0.01 | (0.29) | 0.30 | (0.37) | ||||||||
Net increase (decrease) from investment operations | (0.48) | 0.07 | 0.34 | 0.04 | 0.64 | 0.01 | ||||||||
Dividends and distributions from: | ||||||||||||||
Net investment income | (0.16) | (0.32) | (0.31) | (0.33) | (0.34) | (0.38) | ||||||||
Net realized gain | (0.00)2 | (0.01) | (0.04) | (0.03) | — | — | ||||||||
Total dividends and distributions | (0.16) | (0.33) | (0.35) | (0.36) | (0.34) | (0.38) | ||||||||
Net asset value, end of period | $ 6.77 | $ 7.41 | $ 7.67 | $ 7.68 | $ 8.00 | $ 7.70 | ||||||||
Total Investment Return3 | ||||||||||||||
Based on net asset value | (6.40)%4 | 0.96% | 4.47% | 0.44% | 8.47% | 0.10% | ||||||||
Ratios to Average Net Assets | ||||||||||||||
Total expenses after waiver and excluding | ||||||||||||||
interest expense and fees5 | 0.73%6 | 0.72% | 0.72% | 0.70% | 0.71% | 0.71% | ||||||||
Total expenses after waiver | 1.03%6 | 1.10% | 1.12% | 0.99% | 0.88% | 0.91% | ||||||||
Total expenses | 1.03%6 | 1.11% | 1.13% | 0.99% | 0.89% | 0.91% | ||||||||
Net investment income | 4.35%6 | 4.12% | 4.17% | 4.15% | 4.33% | 4.79% | ||||||||
Supplemental Data | ||||||||||||||
Net assets, end of period (000) | $ 156,719 | $ 169,010 | $ 172,236 | $ 172,083 | $ 182,216 | $ 183,007 | ||||||||
Portfolio turnover | 8% | 40% | 36% | 41% | 47% | 44% |
1 Based on average shares outstanding. 2 Amount is less than $(0.01) per share. 3 Total investment returns exclude the effects of sales charges. 4 Aggregate total investment return. 5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. 6 Annualized. |
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
61 |
Financial Highlights (continued) | BlackRock Municipal Insured Fund | |||||||||||||||
Investor B | ||||||||||||||||
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2008 | Year Ended June 30, | |||||||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||
Per Share Operating Performance | ||||||||||||||||
Net asset value, beginning of period | $ 7.41 | $ 7.67 | $ 7.68 | $ 7.99 | $ 7.69 | $ 8.07 | ||||||||||
Net investment income1 | 0.14 | 0.27 | 0.29 | 0.29 | 0.30 | 0.34 | ||||||||||
Net realized and unrealized gain (loss) | (0.63) | (0.24) | 0.01 | (0.28) | 0.30 | (0.38) | ||||||||||
Net increase (decrease) from investment operations | (0.49) | 0.03 | 0.30 | 0.01 | 0.60 | (0.04) | ||||||||||
Dividends and distributions from: | ||||||||||||||||
Net investment income | (0.15) | (0.28) | (0.27) | (0.29) | (0.30) | (0.34) | ||||||||||
Net realized gain | (0.00)2 | (0.01) | (0.04) | (0.03) | — | — | ||||||||||
Total dividends and distributions | (0.15) | (0.29) | (0.31) | (0.32) | (0.30) | (0.34) | ||||||||||
Net asset value, end of period | $ 6.77 | $ 7.41 | $ 7.67 | $ 7.68 | $ 7.99 | $ 7.69 | ||||||||||
Total Investment Return3 | ||||||||||||||||
Based on net asset value | (6.65)%4 | 0.45% | 3.95% | 0.05% | 7.93% | (0.53)% | ||||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses after waiver and excluding | ||||||||||||||||
interest expense and fees5 | 1.25%6 | 1.23% | 1.23% | 1.21% | 1.21% | 1.21% | ||||||||||
Total expenses after waiver | 1.54%6 | 1.61% | 1.63% | 1.50% | 1.39% | 1.42% | ||||||||||
Total expenses | 1.55%6 | 1.61% | 1.63% | 1.50% | 1.40% | 1.42% | ||||||||||
Net investment income | 3.81%6 | 3.61% | 3.67% | 3.64% | 3.83% | 4.29% | ||||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ 24,494 | $ 33,422 | $ 45,533 | $ 66,477 | $ 91,355 | $ 111,524 | ||||||||||
Portfolio turnover | 8% | 40% | 36% | 41% | 47% | 44% |
1 Based on average shares outstanding. 2 Amount is less than $(0.01) per share. 3 Total investment returns exclude the effects of sales charges. 4 Aggregate total investment return. 5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. 6 Annualized. |
See Notes to Financial Statements. |
62 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock Municipal Insured Fund | |||||
Investor C | ||||||
Six Months | Period | |||||
Ended | Year Ended | October 2, 20061 | ||||
December 31, 2008 | June 30, | to June 30, | ||||
(Unaudited) | 2008 | 2007 | ||||
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 7.42 | $ 7.68 | $ 7.88 | |||
Net investment income2 | 0.13 | 0.25 | 0.17 | |||
Net realized and unrealized loss | (0.63) | (0.24) | (0.14) | |||
Net increase (decrease) from investment operations | (0.50) | 0.01 | 0.03 | |||
Dividends and distributions from: | ||||||
Net investment income | (0.14) | (0.26) | (0.19) | |||
Net realized gain | (0.00)3 | (0.01) | (0.04) | |||
Total dividends and distributions | (0.14) | (0.27) | (0.23) | |||
Net asset value, end of period | $ 6.78 | $ 7.42 | $ 7.68 | |||
Total Investment Return4 | ||||||
Based on net asset value | (6.74)%5 | 0.22% | 0.34%5 | |||
Ratios to Average Net Assets | ||||||
Total expenses after waiver and excluding interest expense and fees6 | 1.47%7 | 1.46% | 1.51%7 | |||
Total expenses after waiver | 1.76%7 | 1.84% | 1.90%7 | |||
Total expenses | 1.77%7 | 1.85% | 1.90%7 | |||
Net investment income | 3.63%7 | 3.37% | 3.37%7 | |||
Supplemental Data | ||||||
Net assets, end of period (000) | $ 15,257 | $ 13,674 | $ 4,542 | |||
Portfolio turnover | 8% | 40% | 36% |
1 Commencement of operations.
2 Based on average shares outstanding.
3 Amount is less than $(0.01) per share.
4 Total investment returns exclude the effects of sales charges.
5 Aggregate total investment return.
6 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
7 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
63 |
Financial Highlights (continued) | BlackRock Municipal Insured Fund | |||||||||||||||
Investor C1 | ||||||||||||||||
Six Months | ||||||||||||||||
Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2008 | Year Ended June 30, | |||||||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||
Per Share Operating Performance | ||||||||||||||||
Net asset value, beginning of period | $ 7.41 | $ 7.67 | $ 7.68 | $ 8.00 | $ 7.69 | $ 8.07 | ||||||||||
Net investment income1 | 0.14 | 0.27 | 0.28 | 0.28 | 0.30 | 0.33 | ||||||||||
Net realized and unrealized gain (loss) | (0.63) | (0.24) | 0.02 | (0.29) | 0.31 | (0.38) | ||||||||||
Net increase (decrease) from investment operations | (0.49) | 0.03 | 0.30 | (0.01) | 0.61 | (0.05) | ||||||||||
Dividends and distributions from: | ||||||||||||||||
Net investment income | (0.15) | (0.28) | (0.27) | (0.28) | (0.30) | (0.33) | ||||||||||
Net realized gain | (0.00)2 | (0.01) | (0.04) | (0.03) | — | — | ||||||||||
Total dividends and distributions | (0.15) | (0.29) | (0.31) | (0.31) | (0.30) | (0.33) | ||||||||||
Net asset value, end of period | $ 6.77 | $ 7.41 | $ 7.67 | $ 7.68 | $ 8.00 | $ 7.69 | ||||||||||
Total Investment Return3 | ||||||||||||||||
Based on net asset value | (6.67)%4 | 0.41% | 3.90% | (0.12)% | 8.01% | (0.58)% | ||||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses after waiver and excluding | ||||||||||||||||
interest expense and fees5 | 1.29%6 | 1.27% | 1.28% | 1.26% | 1.26% | 1.26% | ||||||||||
Total expenses after waiver | 1.58%6 | 1.65% | 1.68% | 1.55% | 1.44% | 1.47% | ||||||||||
Total expenses | 1.59%6 | 1.66% | 1.68% | 1.55% | 1.45% | 1.47% | ||||||||||
Net investment income | 3.78%6 | 3.57% | 3.63% | 3.59% | 3.77% | 4.23% | ||||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ 34,238 | $ 42,655 | $ 51,452 | $ 61,046 | $ 64,682 | $ 61,794 | ||||||||||
Portfolio turnover | 8% | 40% | 36% | 41% | 47% | 44% |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred
to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements. |
64 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock National Municipal Fund | |||||||||||||
Institutional | ||||||||||||||
Six Months | ||||||||||||||
Ended | ||||||||||||||
December 31, | ||||||||||||||
2008 | Year Ended June 30, | |||||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||
Per Share Operating Performance | ||||||||||||||
Net asset value, beginning of period | $ 9.95 | $ 10.39 | $ 10.36 | $ 10.66 | $ 10.29 | $ 10.54 | ||||||||
Net investment income1 | 0.25 | 0.48 | 0.49 | 0.51 | 0.53 | 0.55 | ||||||||
Net realized and unrealized gain (loss) | (1.04) | (0.44) | 0.05 | (0.30) | 0.37 | (0.25) | ||||||||
Net increase (decrease) from investment operations | (0.79) | 0.04 | 0.54 | 0.21 | 0.90 | 0.30 | ||||||||
Dividends from net investment income | (0.24) | (0.48) | (0.51) | (0.51) | (0.53) | (0.55) | ||||||||
Net asset value, end of period | $ 8.92 | $ 9.95 | $ 10.39 | $ 10.36 | $ 10.66 | $ 10.29 | ||||||||
Total Investment Return2 | ||||||||||||||
Based on net asset value | (8.01)%3 | 0.35% | 5.06% | 2.02% | 8.89% | 2.88% | ||||||||
Ratios to Average Net Assets | ||||||||||||||
Total expenses after waiver and excluding | ||||||||||||||
interest expense and fees4 | 0.59%5 | 0.60% | 0.59% | 0.58% | 0.59% | 0.60% | ||||||||
Total expenses after waiver | 0.70%5 | 0.78% | 0.99% | 0.84% | 0.72% | 0.70% | ||||||||
Total expenses | 0.72%5 | 0.79% | 1.00% | 0.85% | 0.72% | 0.70% | ||||||||
Net investment income | 5.12%5 | 4.69% | 4.66% | 4.87% | 5.02% | 5.23% | ||||||||
Supplemental Data | ||||||||||||||
Net assets, end of period (000) | $ 800,670 | $ 977,642 | $ 976,153 | $ 890,984 | $ 909,125 | $ 907,419 | ||||||||
Portfolio turnover | 32% | 61% | 46% | 56% | 33% | 20% |
1 Based on average shares outstanding.
2 Total investment returns exclude the effects of sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
5 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
65 |
Financial Highlights (continued) | BlackRock National Municipal Fund | |||||||||||||
Investor A | ||||||||||||||
Six Months | ||||||||||||||
Ended | ||||||||||||||
December 31, | ||||||||||||||
2008 | Year Ended June 30, | |||||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||
Per Share Operating Performance | ||||||||||||||
Net asset value, beginning of period | $ 9.96 | $ 10.39 | $ 10.37 | $ 10.67 | $ 10.29 | $ 10.54 | ||||||||
Net investment income1 | 0.24 | 0.45 | 0.46 | 0.49 | 0.50 | 0.52 | ||||||||
Net realized and unrealized gain (loss) | (1.05) | (0.43) | 0.03 | (0.30) | 0.38 | (0.25) | ||||||||
Net increase (decrease) from investment operations | (0.81) | 0.02 | 0.49 | 0.19 | 0.88 | 0.27 | ||||||||
Dividends from net investment income | (0.23) | (0.45) | (0.47) | (0.49) | (0.50) | (0.52) | ||||||||
Net asset value, end of period | $ 8.92 | $ 9.96 | $ 10.39 | $ 10.37 | $ 10.67 | $ 10.29 | ||||||||
Total Investment Return2 | ||||||||||||||
Based on net asset value | (8.20)%3 | 0.22% | 4.71% | 1.77% | 8.73% | 2.62% | ||||||||
Ratios to Average Net Assets | ||||||||||||||
Total expenses after waiver and excluding | ||||||||||||||
interest expense and fees4 | 0.81%5 | 0.82% | 0.84% | 0.83% | 0.84% | 0.85% | ||||||||
Total expenses after waiver | 0.92%5 | 1.01% | 1.24% | 1.09% | 0.97% | 0.95% | ||||||||
Total expenses | 0.94%5 | 1.02% | 1.24% | 1.10% | 0.97% | 0.95% | ||||||||
Net investment income | 4.94%5 | 4.46% | 4.43% | 4.61% | 4.76% | 4.97% | ||||||||
Supplemental Data | ||||||||||||||
Net assets, end of period (000) | $ 517,081 | $ 472,018 | $ 349,225 | $ 283,814 | $ 248,231 | $ 207,376 | ||||||||
Portfolio turnover | 32% | 61% | 46% | 56% | 33% | 20% | ||||||||
1 | Based on average shares outstanding. |
2 | Total investment returns exclude the effects of sales charges. |
3 | Aggregate total investment return. |
4 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
5 | Annualized. |
See Notes to Financial Statements. |
66 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock National Municipal Fund | |||||||||||||
Investor B | ||||||||||||||
Six Months | ||||||||||||||
Ended | ||||||||||||||
December 31, | ||||||||||||||
2008 | Year Ended June 30, | |||||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||
Per Share Operating Performance | ||||||||||||||
Net asset value, beginning of period | $ 9.95 | $ 10.38 | $ 10.36 | $ 10.66 | $ 10.28 | $ 10.53 | ||||||||
Net investment income1 | 0.21 | 0.40 | 0.41 | 0.43 | 0.45 | 0.47 | ||||||||
Net realized and unrealized gain (loss) | (1.03) | (0.43) | 0.02 | (0.30) | 0.38 | (0.26) | ||||||||
Net increase (decrease) from investment operations | (0.82) | (0.03) | 0.43 | 0.13 | 0.83 | 0.21 | ||||||||
Dividends from net investment income | (0.21) | (0.40) | (0.41) | (0.43) | (0.45) | (0.46) | ||||||||
Net asset value, end of period | $ 8.92 | $ 9.95 | $ 10.38 | $ 10.36 | $ 10.66 | $ 10.28 | ||||||||
Total Investment Return2 | ||||||||||||||
Based on net asset value | (8.36)%3 | (0.30)% | 4.18% | 1.25% | 8.18% | 2.10% | ||||||||
Ratios to Average Net Assets | ||||||||||||||
Total expenses after waiver and excluding interest | ||||||||||||||
expense and fees4 | 1.36%5 | 1.35% | 1.34% | 1.34% | 1.35% | 1.35% | ||||||||
Total expenses after waiver | 1.46%5 | 1.53% | 1.75% | 1.60% | 1.48% | 1.45% | ||||||||
Total expenses | 1.48%5 | 1.54% | 1.75% | 1.61% | 1.48% | 1.46% | ||||||||
Net investment income | 4.36%5 | 3.94% | 3.92% | 4.11% | 4.27% | 4.47% | ||||||||
Supplemental Data | ||||||||||||||
Net assets, end of period (000) | $ 53,023 | $ 69,859 | $ 101,260 | $ 134,177 | $ 177,553 | $ 217,814 | ||||||||
Portfolio turnover | 32% | 61% | 46% | 56% | 33% | 20% |
1 Based on average shares outstanding.
2 Total investment returns exclude the effects of sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
5 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
67 |
Financial Highlights (continued) | BlackRock National Municipal Fund | |||||
Investor C | ||||||
Six Months | Period | |||||
Ended | Year Ended | October 2, 20061 | ||||
December 31, 2008 | June 30, | to June 30, | ||||
(Unaudited) | 2008 | 2007 | ||||
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 9.96 | $ 10.39 | $ 10.57 | |||
Net investment income2 | 0.20 | 0.37 | 0.25 | |||
Net realized and unrealized loss | (1.07) | (0.43) | (0.16) | |||
Net increase (decrease) from investment operations | (0.87) | (0.06) | 0.09 | |||
Dividends from net investment income | (0.17) | (0.37) | (0.27) | |||
Net asset value, end of period | $ 8.92 | $ 9.96 | $ 10.39 | |||
Total Investment Return3 | ||||||
Based on net asset value | (8.56)%4 | (0.57)% | 0.96%4 | |||
Ratios to Average Net Assets | ||||||
Total expenses after waiver and excluding interest expense and fees5 | 1.59%6 | 1.62% | 1.65%6 | |||
Total expenses after waiver | 1.70%6 | 1.81% | 2.05%6 | |||
Total expenses | 1.71%6 | 1.82% | 2.05%6 | |||
Net investment income | 4.18%6 | 3.66% | 3.59%6 | |||
Supplemental Data | ||||||
Net assets, end of period (000) | $ 129,917 | $103,504 | $ 41,676 | |||
Portfolio turnover | 32% | 61% | 46% |
1 Commencement of operations.
2 Based on average shares outstanding.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
6 Annualized.
See Notes to Financial Statements. |
68 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock National Municipal Fund | |||||||||||||
Investor C1 | ||||||||||||||
Six Months | ||||||||||||||
Ended | ||||||||||||||
December 31, | ||||||||||||||
2008 | Year Ended June 30, | |||||||||||||
(Unaudited) | 2008 | 2007 | 2006 | 2005 | 2004 | |||||||||
Per Share Operating Performance | ||||||||||||||
Net asset value, beginning of period | $ 9.95 | $ 10.39 | $ 10.36 | $ 10.66 | $ 10.29 | $ 10.54 | ||||||||
Net investment income1 | 0.21 | 0.40 | 0.41 | 0.43 | 0.44 | 0.46 | ||||||||
Net realized and unrealized gain (loss) | (1.04) | (0.44) | 0.04 | (0.29) | 0.37 | (0.25) | ||||||||
Net increase (decrease) from investment operations | (0.83) | (0.04) | 0.45 | 0.14 | 0.81 | 0.21 | ||||||||
Dividends from net investment income | (0.20) | (0.40) | (0.42) | (0.44) | (0.44) | (0.46) | ||||||||
Net asset value, end of period | $ 8.92 | $ 9.95 | $ 10.39 | $ 10.36 | $ 10.66 | $ 10.29 | ||||||||
Total Investment Return2 | ||||||||||||||
Based on net asset value | (8.38)%3 | (0.44)% | 4.23% | 1.20% | 8.02% | 2.05% | ||||||||
Ratios to Average Net Assets | ||||||||||||||
Total expenses after waiver and excluding interest | ||||||||||||||
expense and fees4 | 1.39%5 | 1.39% | 1.39% | 1.39% | 1.40% | 1.40% | ||||||||
Total expenses after waiver | 1.49%5 | 1.57% | 1.80% | 1.65% | 1.53% | 1.50% | ||||||||
Total expenses | 1.51%5 | 1.58% | 1.80% | 1.65% | 1.53% | 1.51% | ||||||||
Net investment income | 4.34%5 | 3.90% | 3.88% | 4.05% | 4.20% | 4.42% | ||||||||
Supplemental Data | ||||||||||||||
Net assets, end of period (000) | $ 90,215 | $ 114,746 | $ 140,653 | $ 139,447 | $ 107,893 | $ 74,849 | ||||||||
Portfolio turnover | 32% | 61% | 46% | 56% | 33% | 20% |
1 Based on average shares outstanding.
2 Total investment returns exclude the effects of sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
5 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
69 |
Financial Highlights (continued) | BlackRock High Yield Municipal Fund | |||||
Institutional | ||||||
Six Months | Period | |||||
Ended | Year Ended | August 1, 20061 | ||||
December 31, 2008 | June 30, | to June 30, | ||||
(Unaudited) | 2008 | 2007 | ||||
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 8.68 | $ 9.96 | $ 10.00 | |||
Net investment income2 | 0.23 | 0.44 | 0.39 | |||
Net realized and unrealized loss | (2.40) | (1.26) | (0.03) | |||
Net increase (decrease) from investment operations | (2.17) | (0.82) | 0.36 | |||
Dividends and distributions from: | ||||||
Net investment income | (0.23) | (0.44) | (0.40) | |||
Net realized gain | — | (0.02) | (0.00)3 | |||
Total dividends and distributions | (0.23) | (0.46) | (0.40) | |||
Net asset value, end of period | $ 6.28 | $ 8.68 | $ 9.96 | |||
Total Investment Return | ||||||
Based on net asset value | (25.39)%4 | (8.38)% | 3.59%4 | |||
Ratios to Average Net Assets | ||||||
Total expenses after waiver and excluding interest expense and fees5 | 0.85%6 | 0.78% | 0.62%6 | |||
Total expenses after waiver | 0.88%6 | 0.81% | 0.62%6 | |||
Total expenses | 0.89%6 | 0.84% | 0.96%6 | |||
Net investment income | 5.82%6 | 4.76% | 4.35%6 | |||
Supplemental Data | ||||||
Net assets, end of period (000) | $ 41,079 | $ 71,203 | $ 62,464 | |||
Portfolio turnover | 15% | 33% | 16% |
1 Commencement of operations.
2 Based on average shares outstanding.
3 Amount is less than $(0.01) per share.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
6 Annualized.
See Notes to Financial Statements. |
70 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock High Yield Municipal Fund | |||||
Investor A | ||||||
Six Months | Period | |||||
Ended | Year Ended | August 1, 20061 | ||||
December 31, 2008 | June 30, | to June 30, | ||||
(Unaudited) | 2008 | 2007 | ||||
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 8.67 | $ 9.95 | $ 10.00 | |||
Net investment income2 | 0.22 | 0.41 | 0.32 | |||
Net realized and unrealized gain (loss) | (2.40) | (1.26) | 0.01 | |||
Net increase (decrease) from investment operations | (2.18) | (0.85) | 0.33 | |||
Dividends and distributions from: | ||||||
Net investment income | (0.22) | (0.41) | (0.38) | |||
Net realized gain | — | (0.02) | (0.00)3 | |||
Total dividends and distributions | (0.22) | (0.43) | (0.38) | |||
Net asset value, end of period | $ 6.27 | $ 8.67 | $ 9.95 | |||
Total Investment Return4 | ||||||
Based on net asset value | (25.53)%5 | (8.62)% | 3.26%5 | |||
Ratios to Average Net Assets | ||||||
Total expenses after waiver, and excluding interest expense and fees6 | 1.09%7 | 1.03% | 0.89%7 | |||
Total expenses after waiver | 1.12%7 | 1.05% | 0.89%7 | |||
Total expenses | 1.12%7 | 1.08% | 1.19%7 | |||
Net investment income | 5.37%7 | 4.52% | 4.16%7 | |||
Supplemental Data | ||||||
Net assets, end of period (000) | $ 1,930 | $ 6,513 | $ 5,892 | |||
Portfolio turnover | 15% | 33% | 16% |
1 Commencement of operations.
2 Based on average shares outstanding.
3 Amount is less than $(0.01) per share.
4 Total investment returns exclude the effects of sales charges.
5 Aggregate total investment return.
6 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
7 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
71 |
Financial Highlights (concluded) | BlackRock High Yield Municipal Fund | |||||
Investor C | ||||||
Six Months | Period | |||||
Ended | Year Ended | August 1, 20061 | ||||
December 31, 2008 | June 30, | to June 30, | ||||
(Unaudited) | 2008 | 2007 | ||||
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 8.68 | $ 9.97 | $ 10.00 | |||
Net investment income2 | 0.19 | 0.34 | 0.30 | |||
Net realized and unrealized loss | (2.40) | (1.27) | (0.02) | |||
Net increase (decrease) from investment operations | (2.21) | (0.93) | 0.28 | |||
Dividends and distributions from: | ||||||
Net investment income | (0.19) | (0.34) | (0.31) | |||
Net realized gain | — | (0.02) | (0.00)3 | |||
Total dividends and distributions | (0.19) | (0.36) | (0.31) | |||
Net asset value, end of period | $ 6.28 | $ 8.68 | $ 9.97 | |||
Total Investment Return4 | ||||||
Based on net asset value | (25.79)%5 | (9.40)% | 2.84%5 | |||
Ratios to Average Net Assets | ||||||
Total expenses after waiver and excluding interest expense and fees6 | 1.88%7 | 1.80% | 1.53%7 | |||
Total expenses after waiver | 1.91%7 | 1.82% | 1.53%7 | |||
Total expenses | 1.92%7 | 1.85% | 1.84%7 | |||
Net investment income | 4.84%7 | 3.76% | 3.50%7 | |||
Supplemental Data | ||||||
Net assets, end of period (000) | $ 3,222 | $ 4,527 | $ 4,378 | |||
Portfolio turnover | 15% | 33% | 16% |
1 Commencement of operations.
2 Based on average shares outstanding.
3 Amount is less than $(0.01) per share.
4 Total investment returns exclude the effects of sales charges.
5 Aggregate total investment return.
6 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
7 Annualized.
See Notes to Financial Statements. |
72 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock New York Municipal Bond Fund | |||||||||||||
Institutional | ||||||||||||||
Six Months | ||||||||||||||
Ended | Period | |||||||||||||
December 31, | October 1, | |||||||||||||
2008 | 2007 to | Year Ended September 30, | ||||||||||||
(Unaudited) | June 30, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||
Per Share Operating Performance | ||||||||||||||
Net asset value, beginning of period | $ 10.38 | $ 10.84 | $ 11.10 | $ 11.05 | $ 11.03 | $ 11.23 | $ 11.46 | |||||||
Net investment income1 | 0.25 | 0.36 | 0.49 | 0.51 | 0.54 | 0.54 | 0.55 | |||||||
Net realized and unrealized gain (loss) | (1.27) | (0.46) | (0.26) | 0.04 | 0.02 | (0.20) | (0.23) | |||||||
Net increase (decrease) from investment operations | (1.02) | (0.10) | 0.23 | 0.55 | 0.56 | 0.34 | 0.32 | |||||||
Dividends and distributions from: | ||||||||||||||
Net investment income | (0.24) | (0.36) | (0.49) | (0.50) | (0.54) | (0.54) | (0.55) | |||||||
Net realized gain | — | — | — | — | — | (0.00)2 | — | |||||||
Total dividends and distributions | (0.24) | (0.36) | (0.49) | (0.50) | (0.54) | (0.54) | (0.55) | |||||||
Net asset value, end of period | $ 9.12 | $ 10.38 | $ 10.84 | $ 11.10 | $ 11.05 | $ 11.03 | $ 11.23 | |||||||
Total Investment Return3 | ||||||||||||||
Based on net asset value | (9.89)%4 | (0.91)%4 | 2.12% | 5.19% | 5.15% | 3.15% | 2.89% | |||||||
Ratios to Average Net Assets | ||||||||||||||
Total expenses after fees waived and fees paid | ||||||||||||||
indirectly and excluding interest expense and fees5 | 0.73%6 | 0.74%6 | 0.73% | 0.74% | 0.74% | 0.74% | 0.74% | |||||||
Total expenses, after fees waived and paid indirectly | 0.75%6 | 0.81%6 | 0.85% | 0.90% | 0.89% | 0.82% | 0.83% | |||||||
Total expenses | 0.76%6 | 0.82%6 | 0.85% | 0.90% | 0.89% | 0.83% | 0.83% | |||||||
Net investment income | 4.99%6 | 4.56%6 | 4.51% | 4.64% | 4.89% | 4.90% | 4.92% | |||||||
Supplemental Data | ||||||||||||||
Net assets, end of period (000) | $ 14,043 | $ 17,949 | $ 14,927 | $ 10,995 | $ 10,593 | $ 10,332 | $ 10,275 | |||||||
Portfolio turnover | 9% | 16% | 19% | 46% | 24% | 20% | 49% |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
6 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
73 |
Financial Highlights (continued) | BlackRock New York Municipal Bond Fund | |||||
Investor A | ||||||
Six Months | Period | Period | ||||
Ended | October 1, 2007 | October 2, 20061 | ||||
December 31, 2008 | to June 30, | to September 30, | ||||
(Unaudited) | 2008 | 2007 | ||||
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 10.39 | $ 10.85 | $ 11.10 | |||
Net investment income2 | 0.24 | 0.34 | 0.46 | |||
Net realized and unrealized loss | (1.27) | (0.46) | (0.25) | |||
Net increase (decrease) from investment operations | (1.03) | (0.12) | 0.21 | |||
Dividends from net investment income | (0.23) | (0.34) | (0.46) | |||
Net asset value, end of period | $ 9.13 | $ 10.39 | $ 10.85 | |||
Total Investment Return3 | ||||||
Based on net asset value | (10.00)%4 | (1.10)%4 | 1.93%4 | |||
Ratios to Average Net Assets | ||||||
Total expenses after waiver and fees paid indirectly and excluding interest expense and fees5 | 1.00%6 | 0.99%6 | 0.99%6 | |||
Total expenses, after waiver and fees paid indirectly | 1.02%6 | 1.06%6 | 1.10%6 | |||
Total expenses | 1.03%6 | 1.07%6 | 1.10%6 | |||
Net investment income | 4.76%6 | 4.31%6 | 4.27%6 | |||
Supplemental Data | ||||||
Net assets, end of period (000) | $ 16,598 | $ 16,181 | $ 11,964 | |||
Portfolio turnover | 9% | 16% | 19% | |||
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Total investment returns exclude the effects of sales charges. |
4 | Aggregate total investment return. |
5 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
6 | Annualized. |
See Notes to Financial Statements. |
74 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock New York Municipal Bond Fund | |||||||||||||||
Investor A1 | ||||||||||||||||
Six Months | ||||||||||||||||
Ended | Period | |||||||||||||||
December 31, | October 1, | |||||||||||||||
2008 | 2007 to | Year Ended September 30, | ||||||||||||||
(Unaudited) | June 30, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||
Per Share Operating Performance | ||||||||||||||||
Net asset value, beginning of period | $ 10.39 | $ 10.85 | $ 11.10 | $ 11.05 | $ 11.03 | $ 11.23 | $ 11.45 | |||||||||
Net investment income1 | 0.24 | 0.36 | 0.49 | 0.50 | 0.53 | 0.53 | 0.54 | |||||||||
Net realized and unrealized gain (loss) | (1.26) | (0.47) | (0.26) | 0.04 | 0.02 | (0.20) | (0.22) | |||||||||
Net increase (decrease) from investment operations | (1.02) | (0.11) | 0.23 | 0.54 | 0.55 | 0.33 | 0.32 | |||||||||
Dividends and distributions from: | ||||||||||||||||
Net investment income | (0.24) | (0.35) | (0.48) | (0.49) | (0.53) | (0.53) | (0.54) | |||||||||
Net realized gain | — | — | — | — | — | (0.00)2 | — | |||||||||
Total dividends and distributions | (0.24) | (0.35) | (0.48) | (0.49) | (0.53) | (0.53) | (0.54) | |||||||||
Net asset value, end of period | $ 9.13 | $ 10.39 | $ 10.85 | $ 11.10 | $ 11.05 | $ 11.03 | $ 11.23 | |||||||||
Total Investment Return3 | ||||||||||||||||
Based on net asset value | (9.93)%4 | (0.99)%4 | 2.11% | 5.08% | 5.05% | 3.05% | 2.89% | |||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses after waiver and fees paid indirectly and | ||||||||||||||||
excluding interest expense and fees5 | 0.85%6 | 0.84%6 | 0.83% | 0.84% | 0.84% | 0.84% | 0.84% | |||||||||
Total expenses, after waiver and fees paid indirectly | 0.87%6 | 0.91%6 | 0.95% | 0.99% | 0.99% | 0.92% | 0.93% | |||||||||
Total expenses | 0.88%6 | 0.92%6 | 0.95% | 1.00% | 0.99% | 0.93% | 0.93% | |||||||||
Net investment income | 4.89%6 | 4.45%6 | 4.40% | 4.52% | 4.79% | 4.79% | 4.83% | |||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ 149,075 | $ 177,080 | $ 204,497 | $ 223,322 | $ 141,319 | $ 145,532 | $ 150,395 | |||||||||
Portfolio turnover | 9% | 16% | 19% | 46% | 24% | 20% | 49% |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
6 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
75 |
Financial Highlights (continued) | BlackRock New York Municipal Bond Fund | |||||||||||||||
Investor B | ||||||||||||||||
Six Months | ||||||||||||||||
Ended | Period | |||||||||||||||
December 31, | October 1, | |||||||||||||||
2008 | 2007 to | Year Ended September 30, | ||||||||||||||
(Unaudited) | June 30, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||
Per Share Operating Performance | ||||||||||||||||
Net asset value, beginning of period | $ 10.38 | $ 10.84 | $ 11.10 | $ 11.06 | $ 11.04 | $ 11.23 | $ 11.46 | |||||||||
Net investment income1 | 0.22 | 0.33 | 0.44 | 0.45 | 0.49 | 0.49 | 0.50 | |||||||||
Net realized and unrealized gain (loss) | (1.25) | (0.47) | (0.26) | 0.04 | 0.01 | (0.20) | 0.24 | |||||||||
Net increase (decrease) from investment operations | (1.03) | (0.14) | 0.18 | 0.49 | 0.50 | 0.29 | 0.26 | |||||||||
Dividends and distributions from: | ||||||||||||||||
Net investment income | (0.22) | (0.32) | (0.44) | (0.45) | (0.48) | (0.48) | (0.49) | |||||||||
Net realized gain | — | — | — | — | — | (0.00)2 | — | |||||||||
Total dividends and distributions | (0.22) | (0.32) | (0.44) | (0.45) | (0.48) | (0.48) | (0.49) | |||||||||
Net asset value, end of period | $ 9.13 | $ 10.38 | $ 10.84 | $ 11.10 | $ 11.06 | $ 11.04 | $ 11.23 | |||||||||
Total Investment Return3 | ||||||||||||||||
Based on net asset value | (10.03)%4 | (1.29)%4 | 1.60% | 4.56% | 4.62% | 2.72% | 2.38% | |||||||||
Ratios to Average Net Assets | ||||||||||||||||
Total expenses after waiver and fees paid indirectly and | ||||||||||||||||
excluding interest expense and fees5 | 1.26%6 | 1.24%6 | 1.24% | 1.25% | 1.25% | 1.25% | 1.25% | |||||||||
Total expenses, after waiver and fees paid indirectly | 1.28%6 | 1.31%6 | 1.36% | 1.41% | 1.40% | 1.33% | 1.33% | |||||||||
Total expenses | 1.29%6 | 1.31%6 | 1.36% | 1.41% | 1.40% | 1.33% | 1.34% | |||||||||
Net investment income | 4.46%6 | 4.06%6 | 3.99% | 4.14% | 4.38% | 4.39% | 4.41% | |||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000) | $ 13,745 | $ 18,535 | $ 25,264 | $ 34,921 | $ 45,506 | $ 57,409 | $ 78,510 | |||||||||
Portfolio turnover | 9% | 16% | 19% | 46% | 24% | 20% | 49% |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
6 Annualized.
See Notes to Financial Statements. |
76 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Financial Highlights (continued) | BlackRock New York Municipal Bond Fund | |||||
Investor C | ||||||
Six Months | Period | Period | ||||
Ended | October 1, 2007 | October 2, 20061 | ||||
December 31, 2008 | to June 30, | to September 30, | ||||
(Unaudited) | 2008 | 2007 | ||||
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 10.38 | $ 10.84 | $ 11.10 | |||
Net investment income2 | 0.20 | 0.28 | 0.37 | |||
Net realized and unrealized loss | (1.25) | (0.46) | (0.25) | |||
Net increase (decrease) from investment operations | (1.05) | (0.18) | 0.12 | |||
Dividends from net investment income | (0.20) | (0.28) | (0.38) | |||
Net asset value, end of period | $ 9.13 | $ 10.38 | $ 10.84 | |||
Total Investment Return3 | ||||||
Based on net asset value | (10.25)%4 | (1.65)%4 | 1.08%4 | |||
Ratios to Average Net Assets | ||||||
Total expenses after waiver and fees paid indirectly and excluding interest expense and fees5 | 1.73%6 | 1.74%6 | 1.74%6 | |||
Total expenses, after waiver and fees paid indirectly | 1.75%6 | 1.81%6 | 1.85%6 | |||
Total expenses | 1.76%6 | 1.82%6 | 1.85%6 | |||
Net investment income | 4.03%6 | 3.57%6 | 3.52%6 | |||
Supplemental Data | ||||||
Net assets, end of period (000) | $ 9,546 | $ 8,535 | $ 4,611 | |||
Portfolio turnover | 9% | 16% | 19% |
1 Commencement of operations.
2 Based on average shares outstanding.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
6 Annualized.
See Notes to Financial Statements. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
77 |
Financial Highlights (concluded) | BlackRock New York Municipal Bond Fund | |||||||||||||
Investor C1 | ||||||||||||||
Six Months | ||||||||||||||
Ended | Period | |||||||||||||
December 31, | October 1, | |||||||||||||
2008 | 2007 to | Year Ended September 30, | ||||||||||||
(Unaudited) | June 30, 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||
Per Share Operating Performance | ||||||||||||||
Net asset value, beginning of period | $ 10.39 | $ 10.85 | $ 11.10 | $ 11.06 | $ 11.04 | $ 11.24 | $ 11.46 | |||||||
Net investment income1 | 0.22 | 0.32 | 0.43 | 0.44 | 0.48 | 0.48 | 0.48 | |||||||
Net realized and unrealized gain (loss) | (1.26) | (0.47) | (0.25) | 0.04 | 0.01 | (0.21) | (0.22) | |||||||
Net increase (decrease) from investment operations | (1.04) | (0.15) | 0.18 | 0.48 | 0.49 | 0.27 | 0.26 | |||||||
Dividends and distributions from: | ||||||||||||||
Net investment income | (0.22) | (0.31) | (0.43) | (0.44) | (0.47) | (0.47) | (0.48) | |||||||
Net realized gain | — | — | — | — | — | (0.00)2 | — | |||||||
Total dividends and distributions | (0.22) | (0.31) | (0.43) | (0.44) | (0.47) | (0.47) | (0.48) | |||||||
Net asset value, end of period | $ 9.13 | $ 10.39 | $ 10.85 | $ 11.10 | $ 11.06 | $ 11.04 | $ 11.24 | |||||||
Total Investment Return3 | ||||||||||||||
Based on net asset value | (10.16)%4 | (1.35)%4 | 1.61% | 4.46% | 4.52% | 2.53% | 2.38% | |||||||
Ratios to Average Net Assets | ||||||||||||||
Total expenses after waiver and fees paid indirectly and | ||||||||||||||
excluding interest expense and fees5 | 1.34%6 | 1.33%6 | 1.33% | 1.35% | 1.35% | 1.35% | 1.34% | |||||||
Total expenses, after waiver and fees paid indirectly | 1.36%6 | 1.40%6 | 1.45% | 1.50% | 1.50% | 1.43% | 1.43% | |||||||
Total expenses | 1.37%6 | 1.41%6 | 1.45% | 1.51% | 1.50% | 1.43% | 1.44% | |||||||
Net investment income | 4.40%6 | 3.97%6 | 3.91% | 4.03% | 4.28% | 4.29% | 4.32% | |||||||
Supplemental Data | ||||||||||||||
Net assets, end of period (000) | $ 11,999 | $ 14,217 | $ 16,364 | $ 18,984 | $ 17,080 | $ 17,309 | $ 16,729 | |||||||
Portfolio turnover | 9% | 16% | 19% | 46% | 24% | 20% | 49% |
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effects of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to
tender option bond trusts.
6 Annualized.
See Notes to Financial Statements. |
78 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Notes to Financial Statements (Unaudited)
1. Organization and Significant Accounting Policies:
BlackRock Short-Term Municipal Fund, BlackRock Municipal Insured
Fund, BlackRock National Municipal Fund, BlackRock High Yield
Municipal Fund of BlackRock Municipal Bond Fund, Inc. of BlackRock
Municipal Bond Fund, Inc. (“The Bond Fund”) and BlackRock New York
Municipal Bond Fund of BlackRock Multi-State Series Trust (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 Bond Fund is regis-
tered as a Maryland corporation. BlackRock Multi-State Series Trust is
registered as a Massachusetts business trust. The Funds’ financial state-
ments are prepared in conformity with accounting principles generally
accepted in the United States of America, which may require the use
of management accruals and estimates. Actual results may differ from
these estimates. Each Fund offers multiple classes of shares. BlackRock
and Institutional Shares are sold only to certain eligible investors.
Investor A Shares are generally sold with a front-end sales charge.
Investor A1, Investor B, and Investor C1 Shares are not generally avail-
able except for dividend and capital gains investment. Shares of Investor
B, Investor C and Investor C1 may be subject to a contingent deferred
sales charge. All classes of shares have identical voting, dividend,
liquidation and other rights and the same terms and conditions, except
that Investor A, Investor A1, Investor B, Investor C and Investor C1 Shares
bear certain expenses related to the shareholding servicing of such
shares, and Investor B, Investor C, and Investor C1 Shares also bear
certain expenses related to the distribution of such shares. Each class
has exclusive voting rights with respect to matters relating to its share-
holder servicing and distribution expenditures (except that Investor B
shareholders may vote on material changes to the Investor A and
Investor A1 distribution plans).
The following is a summary of significant accounting policies followed
by the Funds:
Valuation of Investments — Municipal investments (including commit-
ments to purchase such investments on a “when-issued” basis) are
valued on the basis of prices provided by dealers or pricing services
selected under the supervision of each Fund’s Board of Trustees (the
“Board”). In determining the value of a particular investment, pricing
services may use certain information with respect to transactions in
such investments, quotations from dealers, pricing matrixes, market
transactions in comparable investments and information with respect
to various relationships between investments. Swap agreements are
valued utilizing quotes received daily by the Funds’ pricing service or
through brokers, which are derived using daily swap curves and trades of
underlying securities. Financial futures contracts traded on exchanges
are valued at their last sale price. Short-term securities with maturities
less than 60 days are valued at amortized cost, which approximates fair
value. Investments in open-end investment companies are valued at net
asset value each business day.
In the event that application of these methods of valuation results in a
price for an investment which is deemed not to be representative of the
market value of such investment, the investment will be valued by a
method approved by the Board as reflecting fair value (“Fair Value
Assets”). When determining the price for Fair Value Assets the investment
advisor and/or 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 the
sub-advisor deems relevant. The pricing of all Fair Value Assets is subse-
quently reported to the Board or a committee thereof.
Derivative Financial Instruments: The Funds may engage in various port-
folio investment strategies both to increase the return of the Fund and to
hedge, or protect, their exposure to interest rate movements and move-
ments in the securities markets. Losses may arise if the value of the con-
tract decreases due to an unfavorable change in the price of the under-
lying security or if the counterparty does not perform under contract.
•Financial futures contracts — The Funds may purchase or sell finan-
cial futures contracts and options on financial futures contracts for
investment purposes or to manage their interest rate risk. Futures
are contracts for delayed delivery of securities at a specific future
date and at a specific price or yield. Pursuant to the contract, the
Fund agrees to receive from, or pay to the broker an amount of cash
equal to the daily fluctuation in value of the contract. Such receipts
or payments are known as margin variation and are recognized by
the Fund as unrealized gains or losses. When the contract is closed,
the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and
the value at the time it was closed. The use of futures transactions
involves the risk of an imperfect correlation in the movements in the
price of futures contracts, interest rates and the underlying assets,
and the possible inability of counterparties to meet the terms of
their contracts.
•Forward interest rate swaps — The Funds may enter into forward
interest rate swaps for investment purposes. In a forward interest
rate swap, a Fund and the counterparty agree to make periodic net
payments on a specified notional contract amount, commencing on
a specified future effective date, unless terminated earlier. These
periodic payments received or made by the Funds are recorded in
the accompanying Statements of Operations as realized gains or
losses, respectively. Forward interest rate swaps are marked-to-
market daily and changes in value are recorded as unrealized
appreciation (depreciation). When the forward interest rate swap is
terminated, the Funds will record a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing trans-
action and the Funds’ basis in the contract, if any. Forward interest
SEMI-ANNUAL REPORT DECEMBER 31, 2008 79 |
Notes to Financial Statements (continued)
rate swap transactions involve, to varying degrees, elements of
credit and market risk in excess of the amounts recognized in the
Statements of Assets and Liabilities. Such risks involve the possibility
that there will be no liquid market for these agreements, that the
counterparty to the agreements may default on its obligation to per-
form or disagree as to the meaning of the contractual terms in the
agreements, and that there may be unfavorable changes in the inter-
est rates and/or market values associated with these transactions.
The Fund generally intends to close each forward interest rate swap
before the effective date specified in the agreement and therefore
avoid entering into the interest rate swap underlying each forward
interest rate swap.
Forward Commitments and When-Issued Delayed Delivery Securities:
The 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 securi-
ties under such conditions only with the intention of actually acquiring
them, but may enter into a separate agreement to sell the securities
before the settlement date. Since the value of securities purchased may
fluctuate prior to settlement, the Funds may be required to pay more at
settlement than the security is worth. In addition, the purchaser is not
entitled to any of the interest earned prior to settlement. Upon making a
commitment to purchase a security on a when-issued basis, the Funds
will hold liquid assets worth at least the equivalent of the amount due.
Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds
may leverage their assets through the use of tender option bond trusts
(“TOBs”). A TOB is established by a third party sponsor forming a special
purpose entity, into which one or more funds, or an agent on behalf of
the funds, transfers municipal securities. Other funds managed by the
investment advisor may also contribute municipal securities to a TOB
into which a Fund has contributed securities. A TOB typically issues
two classes of beneficial interests: short-term floating rate certificates,
which are sold to third party investors, and residual certificates (“TOB
Residuals”), which are generally issued to the participating funds that
made the transfer. The TOB Residuals held by the Funds include the
right of the Funds (1) to cause the holders of a proportional share of
the floating rate certificates to tender their certificates at par, and (2) to
transfer, within seven days, a corresponding share of the municipal secu-
rities from the TOB to the Funds. The TOB may also be terminated with-
out the consent of the Funds upon the occurrence of certain events as
defined in the TOB agreements. Such termination events may include
the bankruptcy or default of the municipal security, a substantial down-
grade in credit quality of the municipal security, 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 security or the
inability to remarket the short-term floating rate certificates to third
party investors.
The cash received by the TOB from the sale of the short-term floating rate
certificates, less transaction expenses, is paid to the Funds, which typi-
cally invest the cash in additional municipal securities. The Funds’ trans-
fer of the municipal securities to a TOB is accounted for as a secured
borrowing, therefore the municipal securities deposited into a TOB are
presented in each Fund’s Schedule of Investments and the proceeds
from the issuance of the short-term floating rate certificates are reported
as a liability for Trust Certificates.
Interest income from the underlying security 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 reported as expenses of the Funds. The floating
rate certificates have interest rates that generally reset weekly and their
holders have the option to tender certificates to the TOB for redemption
at par at each reset date. At December 31, 2008, the aggregate value of
the underlying municipal securities transferred to TOBs, the related liabil-
ity for trust certificates and the range of interest rates were as follows:
Underlying | ||||||
Municipal | ||||||
Securities | Liability for | Range of | ||||
Transferred | Trust | Interest | ||||
to TOBs | Certificates | Rates | ||||
BlackRock Municipal | 0.976% – | |||||
Insured Fund | $115,532,390 | $59,737,497 | 3.250% | |||
BlackRock National | 0.976% – | |||||
Municipal Fund | $ 63,150,307 | $34,260,000 | 2.893% | |||
BlackRock New York | 1.714% – | |||||
Municipal Bond Fund | $ 3,926,342 | $ 2,211,247 | 2.233% |
Financial transactions executed through TOBs generally will underperform
the market for fixed rate municipal bonds when interest rates rise, but
tend to outperform the market for fixed rate bonds when interest rates
decline or remain relatively stable. Should short-term interest rates rise,
the Funds’ investments in TOBs may adversely affect the Funds’ invest-
ment income and distributions to shareholders. Also, fluctuations in
the market value of municipal securities deposited into the TOB may
adversely affect the Fund’s net asset values per share.
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.
Segregation and Collateralization: In cases in which the 1940 Act and
the interpretive positions of the Securities and Exchange Commission
(“SEC”) require that each Fund segregates assets in connection with
certain investments (e.g., financial futures contracts and swaps) each
Fund will, consistent with certain interpretive letters issued by the SEC,
designate on its books and records cash or other liquid securities having
80 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Notes to Financial Statements (continued)
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,
the Fund may also be required to deliver or deposit securities as collat-
eral for certain investments (e.g., financial futures contracts and swaps).
Investment Transactions and Investment Income: Investment trans-
actions are recorded on the dates the transactions are entered into
(the trade dates). Realized gains and losses on security transactions are
determined on the identified cost basis. Dividend income is recorded
on the ex-dividend dates. Interest income is recognized on the accrual
basis. The Funds amortize all premiums and discounts on debt securi-
ties. Income and realized and unrealized gains and losses are allocated
daily to each class based on its relative net assets.
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.
Income Taxes: It is the Funds’ policy to comply with the requirements
of the Internal Revenue Code applicable to regulated investment compa-
nies and to distribute substantially all of its taxable income to their
shareholders. Therefore, no federal income tax provision is required.
The Funds file 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 the
years ended June 30, 2005 through June 30, 2007. The statutes of
limitations on the Funds’ state and local tax returns may remain open
for an additional year depending upon the jurisdiction.
Recent Accounting Pronouncements: In March 2008, Statement of
Financial Accounting Standards No. 161, “Disclosures about Derivative
Instruments and Hedging Activities — an amendment of FASB Statement
No. 133” (“FAS 161”), was issued. FAS 161 is intended to improve
financial reporting for derivative instruments by requiring enhanced dis-
closure that enables investors to understand how and why an entity uses
derivatives, how derivatives are accounted for and how derivative instru-
ments affect an entity’s results of operations and financial position. FAS
161 is effective for financial statements issued for fiscal years and inter-
im periods beginning after November 15, 2008. The impact on the
Funds’ financial statement disclosures, if any, is currently being assessed.
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 Funds are allocated daily to
each class based on its relative net assets.
2. Investment Advisory Agreement and Other Transactions
with Affiliates:
Each Fund has entered into an Investment Advisory Agreement with
BlackRock Advisors, LLC (the “Advisor”), and indirect, wholly owned
subsidiary of BlackRock, Inc., to provide investment advisory and admin-
istration services. Merrill Lynch & Co., Inc. (“Merrill Lynch”) and The PNC
Financial Services Group, Inc. (“PNC”) are the largest stockholders of
BlackRock, Inc. As of December 31, 2008, Merrill Lynch and PNC are
affiliates of BlackRock, Inc.
The Advisor is responsible for the management of each Fund’s portfolio
and provides the necessary personnel, facilities, equipment and certain
other services necessary to the operation of the Funds. For such ser-
vices, the Funds pay the Advisor a monthly fee based upon the average
daily value of each Fund’s net assets at the following annual rates:
Rate of Advisory Fee | ||||||
BlackRock BlackRock BlackRock | ||||||
Aggregate of Average | Short-Term | Municipal | National | |||
Daily Net Assets of the | Municipal | Insured | Municipal | |||
Three Combined Funds1 | Fund | Fund | Fund | |||
Not exceeding $250 million | 0.40% | 0.40% | 0.50% | |||
In excess of $250 million but | ||||||
not exceeding $400 million | 0.375% | 0.375% | 0.475% | |||
In excess of $400 million but | ||||||
not exceeding $550 million | 0.35% | 0.375% | 0.475% | |||
In excess of $550 million but | ||||||
not exceeding $1.5 billion | 0.325% | 0.375% | 0.475% | |||
In excess of $1.5 billion | 0.325% | 0.350% | 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 percent-
age applicable to a breakpoint level is determined by dividing the amount of the
aggregate average daily net assets of the three combined Funds that falls within
that breakpoint level by the aggregate average daily net assets of the three com-
bined Funds. The amount of the fee for a Fund at each breakpoint level is deter-
mined 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.
For BlackRock Short-Term Municipal Fund, the Advisor has voluntarily
agreed to waive fees or expenses in order to limit expenses as follows:
0.35% for Institutional Shares, 0.60% for Investor A Shares, 0.45% for
Investor A1 Shares, 0.70% for Investor B Shares and 1.35% for Investor
C Shares. For the six months ended December 31, 2008, the Advisor
waived $192,262 which is included in fees waived by Advisor on the
Statements of Operations.
BlackRock High Yield Municipal Fund’s rates are as follows: 0.55%
of the Fund’s average daily net assets not exceeding $250 million;
0.525% of average daily net assets in excess of $250 million but not
exceeding $500 million; and 0.50% of average daily net assets in excess
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
81 |
Notes to Financial Statements (continued)
of $500 million. In addition, for the BlackRock High Yield Municipal Fund,
the Advisor has voluntarily agreed to waive a portion of the investment
advisory fee. The amount of the waiver is determined monthly and can
be discontinued at any time.
BlackRock New York Municipal Bond Fund’s rates are as follows: 0.55%
of the Fund’s average daily net assets not exceeding $500 million;
0.525% of the average daily net assets in excess of $500 million but
not exceeding $1 billion; and 0.50% of average daily net assets in
excess of $1 billion.
The Advisor has agreed to waive its advisory fees by the amount of
investment advisory fee each Fund pays to the Advisor indirectly through
its investment in affiliated money market funds. These amounts are
included in fees waived by the Advisor on the Statements of Operations.
For the six months ended December 31, 2008, the amounts were
as follows:
Fees Waived | ||
by Advisor | ||
BlackRock Short-Term Municipal Fund | $ 19,005 | |
BlackRock Municipal Insured Fund | $ 23,304 | |
BlackRock National Municipal Fund | $126,916 | |
BlackRock High Yield Municipal Fund | $ 2,324 | |
BlackRock New York Municipal Bond Fund | $ 9,141 |
The Advisor has entered into a separate sub-advisory agreement with
BlackRock Investment Management, LLC, (“BIM”), an affiliate of the
Advisor, under which the Advisor pays BIM for services it provides, a
monthly fee that is a percentage of the investment advisory fee paid
by the Funds to the Advisor.
For the six months ended December 31, 2008, each Fund reimbursed
the Advisor for certain accounting services, which are included in
accounting services in the Statements of Operations. The reimburse-
ments were as follows:
Reimbursement | ||
to Advisor | ||
BlackRock Short-Term Municipal Fund | $ 2,510 | |
BlackRock Municipal Insured Fund | $ 6,734 | |
BlackRock National Municipal Fund | $14,175 | |
BlackRock High Yield Municipal Fund | $ 642 | |
BlackRock New York Municipal Bond Fund | $ 2,172 |
Effective October 31, 2008, each Fund has entered into a Distribution
Agreement and Distribution Plans with BlackRock Investments, Inc.
(“BII”), which replaced FAM Distributors, Inc. (“FAMD”) and BlackRock
Distributors, Inc. and its affiliates (“BDI”) (collectively, the “Distributor”)
as the sole distributor of the Funds. FAMD is a wholly owned subsidiary
of Merrill Lynch Group, Inc. BII and BDI are affiliates of BlackRock, Inc.
The service and distribution fees did not change as a result of this
transactions.
Pursuant to the Distribution Plans adopted by each Fund in accordance
with Rule 12b-1 under the 1940 Act, each Fund pays the Distributor
ongoing service and distribution fees. The fees are accrued daily and
paid monthly at annual rates based upon the average daily net assets of
the shares as follows:
Service Fees | ||||||||||
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | ||||||
Short-Term | Municipal | National | High Yield | New York | ||||||
Municipal | Insured | Municipal | Municipal | Municipal | ||||||
Fund | Fund | Fund | Fund | Bond Fund | ||||||
Investor A | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% | |||||
Investor A1 | 0.10% | — | — | — | 0.10% | |||||
Investor B | 0.15% | 0.25% | 0.25% | — | 0.25% | |||||
Investor C | 0.25% | 0.25% | 0.25% | 0.25% | 0.25% | |||||
Investor C1 | — | 0.25% | 0.25% | — | 0.25% | |||||
Distribution Fees | ||||||||||
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | ||||||
Short-Term | Municipal | National | High Yield | New York | ||||||
Municipal | Insured | Municipal | Municipal | Municipal | ||||||
Fund | Fund | Fund | Fund | Bond Fund | ||||||
Investor B | 0.20% | 0.50% | 0.50% | — | 0.25% | |||||
Investor C | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | |||||
Investor C1 | — | 0.55% | 0.55% | — | 0.35% |
Pursuant to sub-agreements with each Distributor, broker-dealers, includ-
ing Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a
wholly owned subsidiary of Merrill Lynch, and the Distributor provide
shareholder servicing and distribution services to each Fund. The ongo-
ing service and/or distribution fee compensates the Distributor and
each broker-dealer for providing shareholder servicing and/or distribu-
tion related services to Investor A, Investor A1, Investor B, Investor C and
Investor C1 shareholders.
For the six months ended December 31, 2008, affiliates earned under-
writing discounts and direct commissions and dealer concessions on
sales of each Fund’s Investor A and Investor A1 Shares, which totaled
as follows:
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | ||||||
Short-Term | Municipal | National | High Yield | New York | ||||||
Municipal | Insured | Municipal | Municipal | Municipal | ||||||
Fund | Fund | Fund | Fund | Bond Fund | ||||||
Investor A | $ 48,438 | $ 57,555 | $367,314 | $ 5,217 | $ 26,460 |
82 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Notes to Financial Statements (continued)
For the six months ended December 31, 2008, affiliates received con-
tingent deferred sales charges relating to transactions in Investor B,
Investor C and Investor C1 Shares as follows:
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | ||||||
Short-Term | Municipal | National | High Yield | New York | ||||||
Municipal | Insured | Municipal | Municipal | Municipal | ||||||
Fund | Fund | Fund | Fund | Bond Fund | ||||||
Investor B | $ 3,938 | $ 21,475 | $ 36,149 | — | $ 6,006 | |||||
Investor C | $ 9,033 | $ 14,163 | $ 41,500 | $ 88 | $ 17 | |||||
Investor C1 | — | $ 250 | $ 1,493 | — | — |
Furthermore, affiliates received contingent deferred sales charges relat-
ing to transactions subject to front-end sales charge waivers relating to
Investor A and Investor A1 Shares as follows:
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | ||||||
Short-Term | Municipal | National | High Yield | New York | ||||||
Municipal | Insured | Municipal | Municipal | Municipal | ||||||
Fund | Fund | Fund | Fund | Bond Fund | ||||||
Investor A | $ 9,766 | $ 3,318 | $ 52,505 | — | — |
PNC Global Investment Servicing (U.S.) Inc., an indirect, wholly owned
subsidiary of PNC and an affiliate of the Advisor, is the Funds’ transfer
agent and dividend disbursing agent. Each class of the Funds bear the
costs of transfer agent fees associated with such respective classes.
Transfer agency fees borne by each class of the Funds are comprised
of those fees charged for all shareholder communications including
mailing of shareholder reports, dividend and distribution notices, and
proxy materials for shareholders meetings, as well as per account and
per transaction fees related to servicing and maintenance of shareholder
accounts, including the issuing, redeeming and transferring of shares
of each class of the Funds, 12b-1 fee calculation, check writing, anti-
money laundering services, and customer identification services.
Pursuant to written agreements, certain affiliates provide the Funds with
sub-accounting, recordkeeping, sub-transfer agency and other adminis-
trative services with respect to sub-accounts they service. For these
services, these affiliates receive an annual fee per shareholder account
which will vary depending on share class. For the six months ended
December 31, 2008, the Funds paid the following fees in return for
these services, which are a component of the transfer agent fees in
the accompanying Statements of Operations:
BlackRock Short-Term Municipal Fund | $ 49,220 | |
BlackRock Municipal Insured Fund | $ 85,890 | |
BlackRock National Municipal Fund | $ 274,336 | |
BlackRock High Yield Municipal Fund | $ 4,914 | |
BlackRock New York Municipal Bond Fund | $ 38,319 |
The Funds may earn income on positive cash balances in demand
deposit accounts that are maintained by the transfer agent on behalf
of the Funds. For the six months ended December 31, 2008, the
Funds earned income, which is included in income — affiliated in
the Statements of Operations, as follows:
BlackRock Short-Term Municipal Fund | $ 60 | |
BlackRock National Municipal Fund | $1,204 | |
BlackRock High Yield Municipal Fund | $ 51 | |
BlackRock New York Municipal Bond Fund | $ 13 |
The Advisor maintains a call center, which is responsible for providing
certain shareholder services to the Funds, such as responding to share-
holder 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, 2008, the follow-
ing amounts have been accrued by the Funds to reimburse the Advisor
for costs incurred running the call center, which are a component of the
transfer agent fees in the accompanying Statements of Operations.
Call Center Fees | ||||||||||
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | ||||||
Short-Term | Municipal | National | High Yield | New York | ||||||
Municipal | Insured | Municipal | Municipal | Municipal | ||||||
Fund | Fund | Fund | Fund | Bond Fund | ||||||
BlackRock | ||||||||||
Service | $ 8 | — | — | — | — | |||||
Institutional | $1,050 | $5,778 | $17,142 | $199 | $ 93 | |||||
Investor A | $ 84 | $1,842 | $ 5,052 | $ 57 | $ 156 | |||||
Investor A1 | $ 732 | — | — | — | $2,178 | |||||
Investor B | $ 84 | $ 312 | $ 762 | — | $ 198 | |||||
Investor C | $ 72 | $ 96 | $ 750 | $ 36 | $ 81 | |||||
Investor C1 | — | $ 342 | $ 816 | — | $ 114 |
Pursuant to the custody agreement, custodian fees may be reduced by
amounts calculated on uninvested cash balances (“custody credits”),
which are on the Statements of Operations as fees paid indirectly.
Certain officers and/or trustees of the Funds are officers and/or direc-
tors of BlackRock, Inc. or its affiliates. The Funds reimburse the Advisor
for compensation paid to the Funds’ Chief Compliance Officer.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the six months ended December 31, 2008 were as follows:
Purchases | Sales | |||
BlackRock Short-Term Municipal Fund | $106,136,393 | $ 66,221,730 | ||
BlackRock Municipal Insured Fund | $ 64,258,929 | $132,215,340 | ||
BlackRock National Municipal Fund | $476,207,678 | $504,648,783 | ||
BlackRock High Yield Municipal Fund | $ 9,012,507 | $ 11,297,376 | ||
BlackRock New York Municipal | ||||
Bond Fund | $ 21,194,733 | $ 30,411,290 |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
83 |
Notes to Financial Statements (continued)
4. Short-Term Borrowings:
The Funds, along with certain other funds managed by the Advisor and
its affiliates, are a party to a $500,000,000 credit agreement with a
group of lenders, which expired November 2008 and was subsequently
renewed until November 2009. The Funds may borrow under the credit
agreement to fund shareholder redemptions and for other lawful purpos-
es other than for leverage. The Funds may borrow up to the maximum
amount allowable under each Fund’s current Prospectus and Statement
of Additional Information, subject to various other legal, regulatory or
contractual limits. The Funds paid its pro rata share of a 0.02% upfront
fee on the aggregate commitment amount based on its net assets as
of October 31, 2008. Each Fund pays a commitment fee of 0.08% per
annum based on the Funds’ pro rata share of the unused portion of the
credit agreement, which is included in miscellaneous in the Statements
of Operations. Amounts borrowed under the credit agreement bear inter-
est at a rate equal to the higher of the (a) federal funds effective rate
and (b) reserve adjusted one month LIBOR, plus, in each case, higher of
(i) 1.50% and (ii) 50% of the CDX Index (as defined in the credit agree-
ment) in effect from time to time. The Funds did not borrow under the
credit agreement during the six months ended December 31, 2008.
5. Capital Loss Carryforward:
As of June 30, 2008, the Funds had capital loss carryforwards
available to offset future realized capital gains through the indicated
expiration dates:
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | ||||||
Short-Term | Municipal | National | High Yield | New York | ||||||
Expires | Municipal | Insured | Municipal | Municipal | Municipal | |||||
June 30, | Fund | Fund | Fund | Fund | Bond Fund | |||||
2009 | $ 426,094 | — | $24,178,001 | — | $7,034,310 | |||||
2010 | — | — | 444,566 | — | — | |||||
2011 | 32,641 | — | 942,957 | — | — | |||||
2012 | 331,374 | — | 1,591,140 | — | — | |||||
2013 | 1,178,808 | — | — | — | 8,935,207 | |||||
2014 | 4,110,940 | — | — | — | — | |||||
2015 | 2,987,949 | — | — | — | — | |||||
2016 | 322,206 | — | — | $258,523 | — | |||||
Total | $9,390,012 | — | $27,156,664 | $258,523 | $15,969,517 |
6. Market, Credit and Concentration Risk:
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 obliga-
tions (credit risk). The value of securities held by the Funds may decline
in response to certain events, including those directly involving the com-
panies 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 credit risk, the Funds may be exposed
to counterparty risk, or the risk that an entity with which the Funds have
unsettled or open transactions may default. Financial assets, which
potentially expose the Funds to credit and counterparty risks, consist
principally of investments and cash due from counterparties. The extent
of the Funds’ exposure to credit and counterparty risks with respect to
these financial assets is approximated by their value recorded in the
Funds’ Statements of Assets and Liabilities.
Many municipalities insure repayment of their bonds, which reduces
the risk of loss due to issuer default. The market value of these bonds
may fluctuate for other reasons, including market perception of the value
of such insurance, and there is no guarantee that the insurer will meet
its obligation.
BlackRock New York Municipal Bond Fund
This Fund invests a substantial amount of its assets in issuers located in
a single state or a limited number of states. Please see the Schedule of
Investments for concentration in specific states.
84 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Notes to Financial Statements (continued) | ||||||||||||
7. Capital Share Transactions: | ||||||||||||
Transactions in capital shares for each class were as follows: | ||||||||||||
Six Months Ended | Year Ended | |||||||||||
December 31, 2008 | to June 30, 2008 | |||||||||||
BlackRock Short-Term Municipal Fund | Shares | Amount | Shares | Amount | ||||||||
BlackRock Shares | ||||||||||||
Shares sold | 13,511 | $ 135,648 | — | — | ||||||||
Shares issued to shareholders in reinvestment of dividends | 2,270 | 22,706 | 7,219 | $ 72,014 | ||||||||
Total issued | 15,781 | 158,354 | 7,219 | 72,014 | ||||||||
Shares redeemed | (60,136) | (603,478) | (73,092) | (730,403) | ||||||||
Net decrease | (44,355) | $ (445,124) | (65,873) | $ (658,389) | ||||||||
Institutional Shares | ||||||||||||
Shares sold | 7,353,002 | $ 73,458,925 | 7,364,607 | $ 73,727,719 | ||||||||
Shares issued to shareholders in reinvestment of dividends | 132,338 | 1,322,509 | 230,835 | 2,302,223 | ||||||||
Total issued | 7,485,340 | 74,781,434 | 7,595,442 | 76,029,942 | ||||||||
Shares redeemed | (4,628,857) | (46,182,771) | (2,643,000) | (26,376,640) | ||||||||
Net increase | 2,856,483 | $ 28,598,663 | 4,952,442 | $ 49,653,302 | ||||||||
Investor A Shares | ||||||||||||
Shares sold | 2,332,739 | $ 23,347,542 | 1,168,727 | $ 11,651,976 | ||||||||
Shares issued to shareholders in reinvestment of dividends | 13,930 | 139,240 | 11,803 | 117,921 | ||||||||
Total issued | 2,346,669 | 23,486,782 | 1,180,530 | 11,769,897 | ||||||||
Shares redeemed | (672,559) | (6,721,313) | (385,226) | (3,860,050) | ||||||||
Net increase | 1,674,110 | $ 16,765,469 | 795,304 | $ 7,909,847 | ||||||||
Investor A1 Shares | ||||||||||||
Shares sold | 35,559 | $ 354,918 | 134,833 | $ 1,345,652 | ||||||||
Shares issued to shareholders in reinvestment of dividends | 76,793 | 768,196 | 185,071 | 1,846,524 | ||||||||
Total issued | 112,352 | 1,123,114 | 319,904 | 3,192,176 | ||||||||
Shares redeemed | (2,218,307) | (22,241,549) | (2,104,956) | (20,951,820) | ||||||||
Net decrease | (2,105,955) | $ (21,118,435) | (1,785,052) | $ (17,759,644) | ||||||||
Investor B Shares | ||||||||||||
Shares sold | 135,255 | $ 1,353,383 | 66,520 | $ 662,554 | ||||||||
Shares issued to shareholders in reinvestment of dividends | 8,509 | 85,038 | 21,958 | 218,871 | ||||||||
Total issued | 143,764 | 1,438,421 | 88,478 | 881,425 | ||||||||
Shares redeemed | (139,027) | (1,386,775) | (479,536) | (4,783,875) | ||||||||
Net increase (decrease) | 4,737 | $ 51,646 | (391,058) | $ (3,902,450) | ||||||||
Investor C Shares | ||||||||||||
Shares sold | 2,433,086 | $ 24,313,122 | 710,129 | $ 7,088,444 | ||||||||
Shares issued to shareholders in reinvestment of dividends | 10,638 | 106,348 | 7,861 | 78,483 | ||||||||
Total issued | 2,443,724 | 24,419,470 | 717,990 | 7,166,927 | ||||||||
Shares redeemed | (303,067) | (3,022,468) | (190,416) | (1,900,796) | ||||||||
Net increase | 2,140,657 | $ 21,397,002 | 527,574 | $ 5,266,131 |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
85 |
Notes to Financial Statements (continued) | ||||||||||||
Six Months Ended | Year Ended | |||||||||||
December 31, 2008 | June 30, 2008 | |||||||||||
BlackRock Municipal Insured Fund | Shares | Amount | Shares | Amount | ||||||||
Institutional Shares | ||||||||||||
Shares sold | 1,322,148 | $ 9,096,179 | 1,777,861 | $ 13,543,665 | ||||||||
Shares issued to shareholders in reinvestment of dividends | ||||||||||||
and distributions | 850,122 | 5,920,600 | 1,623,461 | 12,287,529 | ||||||||
Total issued | 2,172,270 | 15,016,779 | 3,401,322 | 25,831,194 | ||||||||
Shares redeemed | (5,429,149) | (37,575,621) | (8,693,490) | (66,023,825) | ||||||||
Net decrease | (3,256,879) | $ (22,558,842) | (5,292,168) | $ (40,192,631) | ||||||||
Investor A Shares | ||||||||||||
Shares sold | 2,267,957 | $ 15,524,990 | 2,991,401 | $ 22,777,021 | ||||||||
Shares issued to shareholders in reinvestment of dividends | ||||||||||||
and distributions | 282,411 | 1,964,530 | 499,420 | 3,777,445 | ||||||||
Total issued | 2,550,368 | 17,489,520 | 3,490,821 | 26,554,466 | ||||||||
Shares redeemed | (2,198,464) | (14,933,682) | (3,145,331) | (23,994,753) | ||||||||
Net increase | 351,904 | $ 2,555,838 | 345,490 | $ 2,559,713 | ||||||||
Investor B Shares | ||||||||||||
Shares sold | 60,872 | $ 410,444 | 192,937 | $ 1,476,246 | ||||||||
Shares issued to shareholders in reinvestment of dividends | ||||||||||||
and distributions | 40,550 | 282,547 | 89,770 | 679,437 | ||||||||
Total issued | 101,422 | 692,991 | 282,707 | 2,155,683 | ||||||||
Shares redeemed and automatic conversion of shares | (991,800) | (6,910,685) | (1,710,506) | (13,019,421) | ||||||||
Net decrease | (890,378) | $ (6,217,694) | (1,427,799) | $ (10,863,738) | ||||||||
Investor C Shares | ||||||||||||
Shares sold | 1,035,598 | $ 7,182,192 | 1,416,686 | $ 10,764,923 | ||||||||
Shares issued to shareholders in reinvestment of dividends | ||||||||||||
and distributions | 26,531 | 184,098 | 25,281 | 190,501 | ||||||||
Total issued | 1,062,129 | 7,366,290 | 1,441,967 | 10,955,424 | ||||||||
Shares redeemed | (653,399) | (4,439,280) | (190,707) | (1,443,003) | ||||||||
Net increase | 408,730 | $ 2,927,010 | 1,251,260 | $ 9,512,421 | ||||||||
Investor C1 Shares | ||||||||||||
Shares sold | 91 | $ 731 | 259 | $ 1,870 | ||||||||
Shares issued to shareholders in reinvestment of dividends | ||||||||||||
and distributions | 62,767 | 436,843 | 124,398 | 941,214 | ||||||||
Total issued | 62,858 | 437,574 | 124,657 | 943,084 | ||||||||
Shares redeemed | (759,373) | (5,239,863) | (1,078,193) | (8,190,073) | ||||||||
Net decrease | (696,515) | $ (4,802,289) | (953,536) | $ (7,246,989) |
86 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Notes to Financial Statements (continued) | ||||||||||
Six Months Ended | Year Ended | |||||||||
December 31, 2008 | June 30, 2008 | |||||||||
BlackRock National Municipal Fund | Shares | Amount | Shares | Amount | ||||||
Institutional Shares | ||||||||||
Shares sold | 11,482,017 | $106,328,492 | 16,005,655 | $ 163,209,896 | ||||||
Shares issued to shareholders in reinvestment of dividends | 1,616,493 | 15,185,109 | 3,009,671 | 30,615,058 | ||||||
Total issued | 13,098,510 | 121,513,601 | 19,015,326 | 193,824,954 | ||||||
Shares redeemed | (21,558,632) | (198,396,645) | (14,764,890) | (150,139,405) | ||||||
Net increase (decrease) | (8,460,122) | $ (76,883,044) | 4,250,436 | $ 43,685,549 | ||||||
Investor A Shares | ||||||||||
Shares sold and automatic conversion of shares | 21,941,769 | $202,254,159 | 18,700,872 | $ 190,592,280 | ||||||
Shares issued to shareholders in reinvestment of dividends | 635,353 | 5,955,128 | 919,230 | 9,340,480 | ||||||
Total issued | 22,577,122 | 208,209,287 | 19,620,102 | 199,932,760 | ||||||
Shares redeemed | (12,035,472) | (110,848,448) | (5,822,235) | (59,464,427) | ||||||
Net increase | 10,541,650 | $ 97,360,839 | 13,797,867 | $ 140,468,333 | ||||||
Investor B Shares | ||||||||||
Shares sold | 298,287 | $ 2,759,223 | 235,464 | $ 2,398,074 | ||||||
Shares issued to shareholders in reinvestment of dividends | 66,804 | 626,837 | 146,494 | 1,491,864 | ||||||
Total issued | 365,091 | 3,386,060 | 381,958 | 3,889,938 | ||||||
Shares redeemed and automatic conversion of shares | (1,439,901) | (13,538,858) | (3,112,742) | (31,809,975) | ||||||
Net decrease | (1,074,810) | $ (10,152,798) | (2,730,784) | $ (27,920,037) | ||||||
Investor C Shares | ||||||||||
Shares sold | 6,709,695 | $ 62,983,129 | 7,587,682 | $ 77,320,500 | ||||||
Shares issued to shareholders in reinvestment of dividends | 185,755 | 1,734,480 | 175,685 | 1,781,872 | ||||||
Total issued | 6,895,450 | 64,717,609 | 7,763,367 | 79,102,372 | ||||||
Shares redeemed | (2,731,507) | (25,442,587) | (1,379,487) | (14,088,908) | ||||||
Net increase | 4,163,943 | $ 39,275,022 | 6,383,880 | $ 65,013,464 | ||||||
Investor C1 Shares | ||||||||||
Shares sold | 11,663 | $ 113,252 | 35,604 | $ 365,498 | ||||||
Shares issued to shareholders in reinvestment of dividends | 154,099 | 1,446,596 | 321,359 | 3,272,418 | ||||||
Total issued | 165,762 | 1,559,848 | 356,963 | 3,637,916 | ||||||
Shares redeemed | (1,580,215) | (14,665,994) | (2,368,864) | (24,204,318) | ||||||
Net decrease | (1,414,453) | $ (13,106,146) | (2,011,901) | $ (20,566,402) |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
87 |
Notes to Financial Statements (continued) | ||||||||||||
Six Months Ended | Year Ended | |||||||||||
December 31, 2008 | June 30, 2008 | |||||||||||
BlackRock High Yield Municipal Fund | Shares | Amount | Shares | Amount | ||||||||
Institutional Shares | ||||||||||||
Shares sold | 1,111,063 | $ 8,184,421 | 5,299,302 | $ 48,686,114 | ||||||||
Shares issued to shareholders in reinvestment of dividends | ||||||||||||
and distributions | 3,285 | 24,433 | 4,317 | 39,399 | ||||||||
Total issued | 1,114,348 | 8,208,854 | 5,303,619 | 48,725,513 | ||||||||
Shares redeemed | (2,777,124) | (20,567,819) | (3,372,274) | (30,775,895) | ||||||||
Net increase (decrease) | (1,662,776) | $ (12,358,965) | 1,931,345 | $ 17,949,618 | ||||||||
Investor A Shares | ||||||||||||
Shares sold | 143,749 | $ 1,057,060 | 388,902 | $ 3,588,193 | ||||||||
Shares issued to shareholders in reinvestment of dividends | ||||||||||||
and distributions | 9,842 | 76,174 | 20,824 | 190,141 | ||||||||
Total issued | 153,591 | 1,133,234 | 409,726 | 3,778,334 | ||||||||
Shares redeemed | (596,990) | (4,515,271) | (250,883) | (2,323,475) | ||||||||
Net increase (decrease) | (443,399) | $ (3,382,037) | 158,843 | $ 1,454,859 | ||||||||
Investor C Shares | ||||||||||||
Shares sold | 125,798 | $ 978,155 | 249,094 | $ 2,283,008 | ||||||||
Shares issued to shareholders in reinvestment of dividends | ||||||||||||
and distributions | 8,385 | 62,247 | 11,628 | 105,769 | ||||||||
Total issued | 134,183 | 1,040,402 | 260,722 | 2,388,777 | ||||||||
Shares redeemed | (142,866) | (1,030,908) | (178,727) | (1,679,281) | ||||||||
Net increase (decrease) | (8,683) | $ 9,494 | 81,995 | $ 709,496 |
88 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Notes to Financial Statements (continued) | ||||||||||||
Six Months Ended | Period October 1, 2007 | Year Ended | ||||||||||
December 31, 2008 | to June 30, 2008 | September 30, 2007 | ||||||||||
BlackRock New York Municipal Bond Fund | Shares | Amount | Shares | Amount | Shares | Amount | ||||||
Institutional | ||||||||||||
Shares sold | 162,999 | $ 1,583,110 | 653,852 | $ 6,941,064 | 563,362 | $ 6,200,599 | ||||||
Shares issued to shareholders in reinvestment | ||||||||||||
of dividends | 21,639 | 209,518 | 21,250 | 224,915 | 22,248 | 244,891 | ||||||
Total issued | 184,638 | 1,792,628 | 675,102 | 7,165,979 | 585,610 | 6,445,490 | ||||||
Shares redeemed | (374,871) | (3,578,438) | (322,656) | (3,438,545) | (199,561) | (2,176,094) | ||||||
Net increase (decrease) | (190,233) | $ (1,785,810) | 352,446 | $ 3,727,434 | 386,049 | $ 4,269,396 | ||||||
Six Months Ended | Period October 1, 2007 | Period October 2, 2006* | ||||||||||
December 31, 2008 | to June 30, 2008 | to September 30, 2007 | ||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||
Investor A | ||||||||||||
Shares sold | 651,283 | $ 6,415,376 | 1,128,404 | $ 12,098,355 | 1,159,552 | $ 12,798,513 | ||||||
Shares issued to shareholders in reinvestment | ||||||||||||
of dividends | 23,869 | 230,361 | 26,141 | 276,958 | 11,371 | 124,414 | ||||||
Total issued | 675,152 | 6,645,737 | 1,154,545 | 12,375,313 | 1,170,923 | 12,922,927 | ||||||
Shares redeemed | (415,270) | (3,943,999) | (699,518) | (7,416,904) | (68,236) | (742,952) | ||||||
Net increase | 259,882 | $ 2,701,738 | 455,027 | $ 4,958,409 | 1,102,687 | $ 12,179,975 | ||||||
* Commencement of Operations. | ||||||||||||
Six Months Ended | Period October 1, 2007 | Year Ended | ||||||||||
December 31, 2008 | to June 30, 2008 | September 30, 2007** | ||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||
Investor A1 | ||||||||||||
Shares sold | 152,192 | $ 1,533,204 | 285,153 | $ 3,042,406 | 493,948 | $ 5,431,046 | ||||||
Shares issued to shareholders in reinvestment | ||||||||||||
of dividends | 255,714 | 2,476,971 | 357,383 | 3,789,957 | 501,703 | 5,534,705 | ||||||
Total issued | 407,906 | 4,010,175 | 642,536 | 6,832,363 | 995,651 | 10,965,751 | ||||||
Shares redeemed | (1,130,540) | (10,883,854) | (2,443,975) | (25,874,500) | (2,256,844) | (24,905,480) | ||||||
Net decrease | (722,634) | $ (6,873,679) | (1,801,439) | $ (19,042,137) | (1,261,193) | $ (13,939,729) | ||||||
Investor B | ||||||||||||
Shares sold | 7,780 | $ 72,804 | 37,649 | $ 404,726 | 62,337 | $ 688,504 | ||||||
Shares issued to shareholders in reinvestment | ||||||||||||
of dividends | 16,345 | 158,487 | 27,365 | 290,345 | 53,584 | 591,518 | ||||||
Total issued | 24,125 | 231,291 | 65,014 | 695,071 | 115,921 | 1,280,022 | ||||||
Shares redeemed | (303,346) | (2,979,017) | (609,592) | (6,510,070) | (932,308) | (10,266,350) | ||||||
Net decrease | (279,221) | $ (2,747,726) | (544,578) | $ (5,814,999) | (816,387) | $ (8,986,328) | ||||||
** Effective October 2, 2006, Class A Shares were redesignated Investor A1 Shares. |
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
89 |
Notes to Financial Statements (concluded) | ||||||||||||
Six Months Ended | Period October 1, 2007 | Period October 2, 2006* | ||||||||||
December 31, 2008 | to June 30, 2008 | to September 30, 2007 | ||||||||||
BlackRock New York | ||||||||||||
Municipal Bond Fund (concluded) | Shares | Amount | Shares | Amount | Shares | Amount | ||||||
Investor C | ||||||||||||
Shares sold | 255,065 | $ 2,485,668 | 445,757 | $ 4,757,549 | 426,707 | $ 4,696,020 | ||||||
Shares issued to shareholders in reinvestment | ||||||||||||
of dividends | 14,370 | 138,530 | 13,218 | 139,705 | 4,448 | 48,645 | ||||||
Total issued | 269,435 | 2,624,198 | 458,975 | 4,897,254 | 431,155 | 4,744,665 | ||||||
Shares redeemed | (45,705) | (459,405) | (62,073) | (662,001) | (5,985) | (65,594) | ||||||
Net increase | 223,730 | $ 2,164,793 | 396,902 | $ 4,235,253 | 425,170 | $ 4,679,071 | ||||||
* Commencement of operations. | ||||||||||||
Six Months Ended | Period October 1, 2007 | Year Ended | ||||||||||
December 31, 2008 | to June 30, 2008 | September 30, 2007** | ||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||
Investor C1 | ||||||||||||
Shares sold | 18 | $ 228 | 1,102 | $ 11,515 | 128 | $ 1,415 | ||||||
Shares issued to shareholders in reinvestment | ||||||||||||
of dividends | 19,705 | 190,722 | 27,507 | 291,749 | 39,561 | 436,364 | ||||||
Total issued | 19,723 | 190,950 | 28,609 | 303,264 | 39,689 | 437,779 | ||||||
Shares redeemed | (74,363) | (692,705) | (168,317) | (1,794,619) | (240,915) | (2,663,364) | ||||||
Net decrease | (54,640) | $ (501,755) | (139,708) | $ (1,491,355) | (201,226) | $ (2,225,585) | ||||||
** Effective October 2, 2006, Class C Shares were redesignated Investor C1 Shares. | ||||||||||||
8. Subsequent Events: |
On January 1, 2009, Bank of America Corporation announced that it had completed its acquisition of Merrill Lynch, one of the principal owners of
BlackRock, Inc.
On February 23, 2009 (the “Reorganization Date”), BlackRock National Municipal Fund of BlackRock Municipal Bond Fund, Inc. (“National Municipal”)
acquired all of the assets and certain stated liabilities of BlackRock Florida Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust
(“Florida Municipal”). The reorganization was pursuant to an Agreement and plan of Reorganization, which was approved by the shareholders of
Florida Municipal on January 20, 2009. Under the Agreement and Plan of Reorganization, 201,716 Investor A Shares, and 4,540,365 Investor A1 Shares,
978,873 Investor B Shares, 265,991 Investor C Shares, 973,990 Investor C1 Shares and 1,391,348 Institutional Shares of Florida Municipal were
exchanged for 4,478,243 Investor A Shares, 926,855 Investor B Shares, 250,847 Investor C Shares, 920,024 Investor C1 Shares, and 1,316,862
Institutional Shares, respectively, of National Municipal. The conversion ratio for Investor A Shares, Investor A1 Shares, Investor B Shares, Investor C
Shares, Investor C1 Shares and Institutional Shares were 0.943518, 0.944400, 0.946859, 0.943066, 0.944593 and 0.946465, respectively. The
assets of Florida Municipal, which consisted of securities and related receivables less liabilities were converted on a tax free basis. On the Reorganization
Date, the net assets of National Municipal were valued at $1,783,003,795 (including net assets of $74,311,909 for Florida Municipal, which included
$6,897,370 of net unrealized depreciation).
90 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
Officers and Directors/Trustees
Robert M. Hernandez, Chairman of the Board, Director/Trustee and
Member of the Audit Committee
Fred G. Weiss, Vice Chair of the Board, Chairman of the Audit Committee
and Director/Trustee
James H. Bodurtha, Director/Trustee
Bruce R. Bond, Director/Trustee
Donald W. Burton, Director/Trustee
Richard S. Davis, Fund President1 and Director/Trustee
Stuart E. Eizenstat, Director/Trustee
Laurence D. Fink, Director/Trustee
Kenneth A. Froot, Director/Trustee
Henry Gabbay, Director/Trustee
John F. O’Brien, Director/Trustee
Roberta Cooper Ramo, Director/Trustee
Jean Margo Reid, Director/Trustee
David H. Walsh, Director/Trustee
Richard R. West, Director/Trustee and Member of the Audit Committee
Donald C. Burke, Fund President2 and Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian . Kindelan, Chief Compliance Officer of the Fund
Howard B. Surloff, Secretary
1 Fund President for BlackRock New York Municipal Bond Fund
2 Fund President for BlackRock Municipal Bond Fund, Inc.
Custodians
For BlackRock Municipal Bond Fund, Inc.:
The Bank of New York Mellon
New York, NY 10286
For BlackRock New York Municipal Bond Fund:
State Street Bank and Trust Company
Boston, MA 02101
Transfer Agent
PNC Global Investment Servicing (U.S.) Inc.
Wilmington, DE 19809
Accounting Agent
State Street Bank and Trust Company
Princeton, NJ 08540
Independent Registered Public
Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Willkie Farr & Gallagher LLP
New York, NY 10019
Address for All Funds
BlackRock Municipal Bond Fund, Inc.
BlackRock New York Municipal Bond Fund of
BlackRock Multi-State Municipal Series Trust
100 Bellevue Parkway
Wilmington, DE 19809
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
91 |
Additional Information
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 infor-
mation 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 appli-
cations, forms or other documents; (ii) information about your trans-
actions 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 pro-
cedures relating to the proper storage and disposal of such information.
Availability of Additional Information
Electronic copies of most financial reports and prospectuses are available
on the Funds’ website 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) Click on the applicable link and follow the steps to sign up
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 it is intended to reduce expenses
and eliminate duplicate mailings of shareholder documents. Mailings of
your shareholder documents may be householded indefinitely unless you
instruct us otherwise. If you do not want the mailing of these documents
to be combined with those for other members of your household, please
contact the Funds at (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 toll-free (800) 441-7762;
(2) at www.blackrock.com; and (3) on the Securities and Exchange
Commission’s (the “SEC”) website at http://www.sec.gov.
92 SEMI-ANNUAL REPORT DECEMBER 31, 2008 |
Additional Information (concluded)
Availability of Additional Information (concluded)
Availability of Proxy Voting Record
Information about how the Funds vote proxies relating to securities
held in the Funds’ portfolio during the most recent 12-month period
ended December 31 is available upon request and without charge
(1) at www.blackrock.com or by calling (800) 441-7762 and (2) on
the SEC’s website at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Funds file their complete schedules 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 the operation of the Public
Reference Room 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.
Shareholder Privileges
Account Information
Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST to get infor-
mation about your account balances, recent transactions and share
prices. You can also reach us on the Web at 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 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.
SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
93 |
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 All-Cap Energy & Resources Portfolio | BlackRock Global Opportunities Portfolio | BlackRock Mid-Cap Value Equity Portfolio | ||
BlackRock Asset Allocation Portfolio† | BlackRock Global SmallCap Fund | BlackRock Mid Cap Value Opportunities Fund | ||
BlackRock Aurora Portfolio | BlackRock Health Sciences Opportunities Portfolio | BlackRock Natural Resources Trust | ||
BlackRock Balanced Capital Fund† | BlackRock Healthcare Fund | BlackRock Pacific Fund | ||
BlackRock Basic Value Fund | BlackRock Index Equity Portfolio* | BlackRock Science & Technology | ||
BlackRock Capital Appreciation Portfolio | BlackRock International Fund | Opportunities Portfolio | ||
BlackRock Energy & Resources Portfolio | BlackRock International Diversification Fund | BlackRock Small Cap Core Equity Portfolio | ||
BlackRock Equity Dividend Fund | BlackRock International Index Fund | BlackRock Small Cap Growth Equity Portfolio | ||
BlackRock EuroFund | BlackRock International Opportunities Portfolio | BlackRock Small Cap Growth Fund II | ||
BlackRock Focus Growth Fund | BlackRock International Value Fund | BlackRock Small Cap Index Fund | ||
BlackRock Focus Value Fund | BlackRock Large Cap Core Fund | BlackRock Small Cap Value Equity Portfolio* | ||
BlackRock Fundamental Growth Fund | BlackRock Large Cap Core Plus Fund | BlackRock Small/Mid-Cap Growth Portfolio | ||
BlackRock Global Allocation Fund† | BlackRock Large Cap Growth Fund | BlackRock S&P 500 Index Fund | ||
BlackRock Global Dynamic Equity Fund | BlackRock Large Cap Value Fund | BlackRock U.S. Opportunities Portfolio | ||
BlackRock Global Emerging Markets Fund | BlackRock Latin America Fund | BlackRock Utilities and Telecommunications Fund | ||
BlackRock Global Financial Services Fund | BlackRock Mid-Cap Growth Equity Portfolio | BlackRock Value Opportunities Fund | ||
BlackRock Global Growth Fund | ||||
Fixed Income Funds | ||||
BlackRock Emerging Market Debt Portfolio | BlackRock Inflation Protected Bond Portfolio | BlackRock Short-Term Bond Fund | ||
BlackRock Enhanced Income Portfolio | BlackRock Intermediate Bond Portfolio II | BlackRock Strategic Income Portfolio | ||
BlackRock GNMA Portfolio | BlackRock Intermediate Government | BlackRock Total Return Fund | ||
BlackRock Government Income Portfolio | Bond Portfolio | BlackRock Total Return Portfolio II | ||
BlackRock High Income Fund | BlackRock International Bond Portfolio | BlackRock World Income Fund | ||
BlackRock High Yield Bond Portfolio | BlackRock Long Duration Bond Portfolio | |||
BlackRock Income Portfolio | BlackRock Low Duration Bond Portfolio | |||
BlackRock Income Builder Portfolio | BlackRock Managed Income Portfolio | |||
Municipal Bond Funds | ||||
BlackRock AMT-Free Municipal Bond Portfolio | BlackRock Intermediate Municipal Fund | BlackRock New York Municipal Bond Fund | ||
BlackRock California Insured Municipal Bond Fund | BlackRock Kentucky Municipal Bond Portfolio | BlackRock Ohio Municipal Bond Portfolio | ||
BlackRock Delaware Municipal Bond Portfolio | BlackRock Municipal Insured Fund | BlackRock Pennsylvania Municipal Bond Fund | ||
BlackRock Florida Municipal Bond Fund | BlackRock National Municipal Fund | BlackRock Short-Term Municipal Fund | ||
BlackRock High Yield Municipal Fund | BlackRock New Jersey Municipal Bond Fund | |||
Target Risk & Target Date Funds | ||||
BlackRock Prepared Portfolios | BlackRock Lifecycle Prepared Portfolios | |||
Conservative Prepared Portfolio | Prepared Portfolio 2010 | Prepared Portfolio 2030 | ||
Moderate Prepared Portfolio | Prepared Portfolio 2015 | Prepared Portfolio 2035 | ||
Growth Prepared Portfolio | Prepared Portfolio 2020 | Prepared Portfolio 2040 | ||
Aggressive Growth Prepared Portfolio | Prepared Portfolio 2025 | Prepared Portfolio 2045 | ||
Prepared Portfolio 2050 | ||||
* See the prospectus for information on specific limitations on investments in the fund. | ||||
† Mixed asset fund. |
BlackRock mutual funds are currently distributed by BlackRock Investments, Inc. 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) 882-0052 or from your financial advisor. The prospectus should be read carefully before investing.
94 SEMI-ANNUAL REPORT |
DECEMBER 31, 2008 |
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 return 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.
#MBNYMB-SAR-12/08
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 – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures. Item 11 – Controls and Procedures 11(a) – The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15(d)-15(b) under the Securities Exchange Act of 1934, as amended. 11(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting. Item 12 – Exhibits attached hereto 12(a)(1) – Code of Ethics – Not Applicable to this semi-annual report 12(a)(2) – Certifications – Attached hereto 12(a)(3) – Not Applicable 12(b) – Certifications – Attached hereto |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BlackRock Municipal Bond Fund, Inc. By: /s/ Donald C. Burke Donald C. Burke Chief Executive Officer of BlackRock Municipal Bond Fund, Inc. Date: February 23, 2009 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Donald C. Burke Donald C. Burke Chief Executive Officer (principal executive officer) of BlackRock Municipal Bond Fund, Inc. Date: February 23, 2009 By: /s/ Neal J. Andrews Neal J. Andrews Chief Financial Officer (principal financial officer) of BlackRock Municipal Bond Fund, Inc. Date: February 23, 2009 |