UNITEDSTATES
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04375
Name of Fund: BlackRock New York Municipal Bond Fund of BlackRock Multi-State Municipal
Series Trust
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock New
York Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, 55 East 52nd
Street, New York, NY 10055
Registrant’s telephone number, including area code: (800) 441-7762
Date of fiscal year end: 06/30/2010
Date of reporting period: 06/30/2010
Item 1 – Report to Stockholders
Annual Report
JUNE 30, 2010
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 | |
Dear Shareholder | 3 |
Annual Report: | |
Fund Summaries | 4 |
About Fund Performance | 14 |
Disclosure of Expenses | 15 |
The Benefits and Risks of Leveraging | 16 |
Derivative Financial Instruments | 16 |
Financial Statements: | |
Schedules of Investments | 17 |
Statements of Assets and Liabilities | 43 |
Statements of Operations | 45 |
Statements of Changes in Net Assets | 46 |
Financial Highlights | 51 |
Notes to Financial Statements | 70 |
Report of Independent Registered Public Accounting Firm | 80 |
Important Tax Information | 80 |
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements | 81 |
Officers and Directors | 85 |
Additional Information | 88 |
Mutual Fund Family | 90 |
2 ANNUAL REPORT
JUNE 30, 2010
Dear Shareholder
Although overall global economic and financial conditions have generally improved over the past year, the past several months have seen high levels of mar-
ket volatility and diminishing investor confidence sparked by the sovereign debt crisis in Europe and mixed economic data that have raised concerns over
the possibility that some economies could slide back into recession. Despite the uneven nature of recent market conditions, we continue to believe that the
“Great Recession” likely ended at some point last summer, thanks primarily to massive fiscal and monetary stimulus, and that the global economy remains
in recovery mode for most regions of the world. Regarding the US economy, we believe it is unlikely that the United States will experience a “double dip”
recession, although we acknowledge that subpar growth is likely to persist for some time.
Global equity markets bottomed in early 2009 and since that time have moved unevenly higher as investors were lured back into the markets by depressed
valuations, desire for higher yields and improvements in corporate earnings prospects. Volatility levels, however, have remained elevated — primarily as a
result of uneven economic data and lingering deflation issues (especially in Europe). As the period drew to a close, equity markets had endured a signifi-
cant correction that drove stock prices into negative territory on a year-to-date basis in almost every market. Over a 12-month basis, however, global equi-
ties posted positive returns thanks to improving corporate revenues and profits and a reasonably strong macro backdrop. From a geographic perspective,
US equities have significantly outpaced their international counterparts over the past six and twelve months, as the domestic economic recovery has been
more pronounced and as credit-related issues have held European markets down. Within the United States, smaller cap stocks have noticeably outper-
formed large caps.
In fixed income markets, yields have been moving unevenly over the past six and twelve months as improving economic conditions have been acting to
push Treasury yields higher (and prices correspondingly lower), while concerns over ongoing deflation threats have acted as a counterweight. As the period
drew to a close, however, Treasury yields fell sharply as investors flocked to the “safe haven” asset class in the face of escalating uncertainty. As a result, US
Treasuries became one of the world’s best-performing asset classes on a six-month basis. High yield bonds have also continued to perform well, thanks in
large part to ongoing high levels of investor demand. Meanwhile, municipal bonds performed in line with their taxable counterparts on a 12-month basis,
but slightly underperformed over the last six months as investors rotated to the relative safety of Treasuries.
Regarding cash investments, yields on money market securities remain near all-time lows (producing returns only marginally above zero percent), with
the Federal Open Market Committee reiterating that economic circumstances are likely to necessitate an accommodative interest rate stance for an
“extended period.”
Against this backdrop, the major market averages posted the following returns: | ||
Total Returns as of June 30, 2010 | 6-month | 12-month |
US equities (S&P 500 Index) | (6.65)% | 14.43% |
Small cap US equities (Russell 2000 Index) | (1.95) | 21.48 |
International equities (MSCI Europe, Australasia, Far East Index) | (13.23) | 5.92 |
3-month Treasury bill (BofA Merrill Lynch 3-Month Treasury Bill Index) | 0.05 | 0.16 |
US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index) | 9.36 | 8.20 |
Taxable fixed income (Barclays Capital US Aggregate Bond Index) | 5.33 | 9.50 |
Tax-exempt fixed income (Barclays Capital Municipal Bond Index) | 3.31 | 9.61 |
High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index) | 4.45 | 26.66 |
Past performance is no guarantee of future results. Index performance shown for illustrative purposes only. You cannot invest directly in an index.
Although conditions are certainly better than they were a couple of years ago, global financial markets continue to face high volatility and questions about
the strength and sustainability of the recovery abound. Through periods of uncertainty, as ever, BlackRock’s full resources are dedicated to the management
of our clients’ assets. For additional market perspective and investment insight, visit www.blackrock.com/shareholdermagazine, where you’ll find the most
recent issue of our award-winning Shareholder® magazine, as well as its quarterly companion newsletter, Shareholder Perspectives. As always, we thank
you for entrusting BlackRock with your investments, and we look forward to your continued partnership in the months and years ahead.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
THIS PAGE NOT PART OF YOUR FUND REPORT
3
Fund Summary as of June 30, 2010 | BlackRock Short-Term Municipal Fund |
Portfolio Management Commentary |
How did the Fund perform?
•Effective October 28, 2009, the Fund changed its primary benchmark
from the Barclays Capital Municipal Bond Index to the S&P/Investortools
Main Municipal Bond Index and also added the S&P/Investortools
Limited Maturity Municipal Bond Index as a secondary benchmark. The
S&P/Investortools benchmarks provide a closer representation of the
Fund’s investable universe than the Barclays Capital Municipal Bond Index
and more accurately reflect the investment strategy of the Fund.
•For the 12-month period, the Fund underperformed its primary benchmark,
the S&P/Investortools Main Municipal Bond Index, its secondary bench-
mark, the S&P/Investortools Limited Maturity Municipal Bond Index, and its
former benchmarks, the Barclays Capital Municipal Bond Index and the
Barclays Capital 3-Year General Obligation Bond Index. The following dis-
cussion of relative performance pertains to the Fund’s secondary bench-
mark, the S&P/Investortools Limited Maturity Municipal Bond Index.
What factors influenced performance?
•As the Fund has a shorter permissible weighted average maturity than the
index, it will generally underperform during periods of falling interest rates
and outperform during periods of rising rates. During this reporting period,
yields on municipal securities fell while the yield curve remained steep.
Against this backdrop, the Fund’s shorter average portfolio duration con-
tributed to its underperformance of the index. Our bias toward higher qual-
ity also detracted, as lower-rated issues outperformed for the period.
•Conversely, the Fund’s fully invested position and exposure to issues with
maturities of 3 and 4 years, which outperformed shorter-term issues, made
positive contributions to performance.
Describe recent portfolio activity.
•During the reporting period, we focused on maintaining minimal cash
reserves given the unattractive yields offered by liquidity instruments.
Investor demand for short-term municipal bonds forced yields on securities
with maturities under five years to historic lows. We sought to capitalize on
the steepness of the curve by purchasing lower-quality, higher-yielding
issues in the 3- to 4-year portion of the curve, although supply was limited
and generally in high demand. Also during the period, we increased the
Fund’s exposure to essential service revenue bonds, including issues from
monopolistic service providers such as public power and electric utilities,
airports and health care. Based on guidance from our internal credit
research team, we were also able to identify other suitable investment
opportunities in various sectors throughout the period.
Describe Fund positioning at period end.
•At period end, the Fund remained positioned for a prolonged period of low
short-term interest rates. We continue to maintain minimal cash reserves
while seeking investment opportunities that offer higher yields with a com-
pelling credit profile. The Fund’s duration remains slightly below neutral and
average credit quality remains high, reflecting our efforts to limit portfolio
volatility and credit risk. While we do not expect interest rates to rise in the
foreseeable future, we remain cautious about “reaching for yield” in the
current environment.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.
Portfolio Information
Percent of | |
Sector Allocation | Long-Term Investments |
State | 34% |
County/City/Special District/School District | 27 |
Utilities | 12 |
Education | 7 |
Corporate | 7 |
Transportation | 7 |
Health | 6 |
Percent of | |
Credit Quality Allocation1 | Long-Term Investments |
AAA/Aaa | 34% |
AA/Aa | 46 |
A | 13 |
BBB/Baa | 5 |
Not Rated2 | 2 |
1 Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service
(“Moody’s”) ratings.
2 The investment advisor has deemed certain of these non-rated securities to be
of investment grade quality. As of June 30, 2010, the market value of these securities
was $22,291,997, representing 2% of the Fund’s long-term investments.
4 ANNUAL REPORT
JUNE 30, 2010
BlackRock Short-Term Municipal Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge transaction costs and other operating expenses, including advisory fees, if any. Institutional Shares do not have a sales charge.
2 The Fund invests primarily in investment grade municipal bonds or in municipal notes having a maturity of less than four years. The Fund will maintain a dollar
weighted maturity of no more than two years.
3 This unmanaged index consists of long-term revenue bonds, pre-refunded bonds, general obligation bonds and insured bonds.
4 This unmanaged index consists of state and local government obligation bonds that mature in three to four years, rated Baa or better.
5 The S&P/Investortools Main Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing,
Inc. that are priced daily. Bonds in the S&P/Investortools Main Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining
maturity of not less than 1 month. Effective October 28, 2009, the Fund now uses this index as its primary benchmark rather than Barclays Capital Municipal Bond
Index as Fund management believes it more accurately reflects the Fund’s investment strategies.
6 The S&P/Investortools Limited Maturity Municipal Bond Index includes all bonds in the S&P/Investortools Main Municipal Bond Index with a remaining maturity of
less than 4 years.
Performance Summary for the Period Ended June 30, 2010
Average Annual Total Returns7 | ||||||||
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 | 0.67% | 0.58% | 2.04% | N/A | 3.13% | N/A | 3.05% | N/A |
Institutional | 0.68 | 0.59 | 2.04 | N/A | 3.13 | N/A | 3.05 | N/A |
Investor A | 0.38 | 0.55 | 1.86 | (1.19)% | 2.89 | 2.27% | 2.80 | 2.49% |
Investor A1 | 0.55 | 0.53 | 1.91 | 0.89 | 3.03 | 2.82 | 2.95 | 2.84 |
Investor B | 0.27 | 0.38 | 1.62 | 0.62 | 2.74 | 2.74 | 2.67 | 2.67 |
Investor C | 0.00 | 0.06 | 0.97 | (0.03) | 2.10 | 2.10 | 2.02 | 2.02 |
Barclays Capital 3-Year General Obligation | ||||||||
Bond Index | — | 1.45 | 4.35 | N/A | 4.21 | N/A | 4.28 | N/A |
Barclays Capital Municipal Bond Index | — | 3.31 | 9.61 | N/A | 4.40 | N/A | 5.63 | N/A |
S&P/Investortools Main Municipal Bond Index | — | 3.33 | 10.31 | N/A | 4.17 | N/A | 5.60 | N/A |
S&P/Investortools Limited Maturity Municipal | ||||||||
Bond Index | — | 1.22 | 3.42 | N/A | 3.84 | N/A | 3.76 | N/A |
7 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 14 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
Actual | Hypothetical9 | ||||||
Beginning | Ending | Beginning | Ending | Annualized | |||
Account Value | Account Value | Expenses Paid | Account Value | Account Value | Expenses Paid | Expense | |
January 1, 2010 | June 30, 2010 | During the Period8 | January 1, 2010 | June 30, 2010 | During the Period8 | Ratio | |
BlackRock | $1,000 | $1,005.80 | $1.99 | $1,000 | $1,022.82 | $2.01 | 0.40% |
Institutional | $1,000 | $1,005.90 | $1.99 | $1,000 | $1,022.82 | $2.01 | 0.40% |
Investor A | $1,000 | $1,005.50 | $3.38 | $1,000 | $1,021.43 | $3.41 | 0.68% |
Investor A1 | $1,000 | $1,005.30 | $2.59 | $1,000 | $1,022.22 | $2.61 | 0.52% |
Investor B | $1,000 | $1,003.80 | $4.02 | $1,000 | $1,020.78 | $4.06 | 0.81% |
Investor C | $1,000 | $1,000.60 | $7.24 | $1,000 | $1,017.56 | $7.30 | 1.46% |
8 For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period shown). Expenses are net of waiver.
9 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.
See “Disclosure of Expenses” on page 15 for further information on how expenses were calculated.
ANNUAL REPORT JUNE 30, 2010 5
Fund Summary as of June 30, 2010 BlackRock Municipal Insured Fund
Portfolio Management Commentary
How did the Fund perform?
•Effective October 28, 2009, the Fund changed its primary benchmark
from the Barclays Capital Municipal Bond Index to the S&P/Investortools
Main Municipal Bond Index and also added the S&P/Investortools
Customized Insured Municipal Bond Index as a secondary benchmark. The
S&P/Investortools benchmarks provide a closer representation of the
Fund’s investable universe than the Barclays Capital Municipal Bond Index
and more accurately reflect the investment strategy of the Fund.
•Fund returns for the 12-month period underperformed that of the
S&P/Investortools Main Municipal Bond Index, its primary benchmark,
and the S&P/Investortools Customized Insured Municipal Bond Index,
its secondary benchmark. The Fund’s Investor A and Institutional Shares
outperformed the former benchmark, the Barclays Capital Municipal Bond
Index, while the Investor B, Investor C and Investor C1 Shares underper-
formed. The following discussion of performance is relative to the Fund’s
secondary benchmark, the S&P/Investortools Customized Insured
Municipal Bond Index.
What factors influenced performance?
•The Fund’s low exposure to the education sector, which performed well,
detracted from comparative performance for the period. Relative results
also were hindered by the Fund’s zero-coupon positions, which generally
underperformed, and by its exposure to select securities in weaker-perform-
ing geographic areas, particularly California and Michigan.
•On the positive side, the Fund’s modestly constructive posture toward the
market (i.e., a slightly long duration) contributed to performance as bench-
mark yields in the municipal market declined over the 12-month period. In
addition, the yield curve flattened, which was beneficial given the Fund’s
exposure to the longer end of the curve. Finally, spreads generally tightened
during the period, helping some of the Fund’s weaker underlying holdings
to perform well.
Describe recent portfolio activity.
•We focused on upgrading overall portfolio quality, especially early in the
period, in recognition of the difficult economic realities facing municipal
issuers across the country. Additionally, municipal insurance providers con-
tinued to face ratings pressure and market liquidity, while much improved
from the previous reporting period, remained significantly better for higher-
quality issuers. Our focus on quality pertains to both the insurer (when
applicable) and the underlying credit. Given that health care-related
issuance was particularly heavy, we took the opportunity to purchase
several new positions that we believed were attractively priced and of
high quality.
•In the second half of the reporting period, changes followed the same
theme, but were generally minimal. Notably, the popularity of the Build
America Bond (“BAB”) program dramatically decreased new issuance of
tax-exempt paper, especially in the longer end of the yield curve. The
decline in new tax-exempt issuance reduced the number and volume of
opportunistic trades for the Fund. Also during the latter half of the reporting
period, both Moody’s and Fitch implemented their Global Ratings Scale.
This “recalibration” of ratings generally resulted in a one- to two-notch
increase in ratings, primarily in the tax-backed and essential service sec-
tors. As a result, many of the Fund’s holdings were recalibrated upwards.
Describe Fund positioning at period end.
•At period end, the Fund continued to exhibit a modestly constructive
stance toward the market and a bias toward the longer end of the yield
curve. The curve remains very steep, with short-term rates under 1% and
longer-term rates above 4%. The Fund’s cash reserves are generally at a
minimum, given near-zero yields on these securities and the outlook for no
change in Fed policy, coupled with declining tax-exempt issuance as BABs
continue to divert municipal supply to the taxable 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.
Portfolio Information
Percent of | |
Sector Allocation | Long-Term Investments |
County/City/Special District/School District | 34% |
Transportation | 22 |
State | 14 |
Utilities | 14 |
Health | 7 |
Housing | 5 |
Corporate | 4 |
Percent of | |
Credit Quality Allocation1 | Long-Term Investments |
AAA/Aaa | 36% |
AA/Aa | 23 |
A | 30 |
BBB/Baa | 1 |
BB/Ba | 1 |
Not Rated2 | 9 |
1 Using the higher of S&P’s or Moody’s ratings.
2 The investment advisor has deemed certain of these non-rated securities to be
of investment grade quality. As of June 30, 2010, the market value of these securities
was $14,117,953 representing 2% of the Fund’s long-term investments.
6 ANNUAL REPORT
JUNE 30, 2010
BlackRock Municipal Insured Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge transaction costs and other operating expenses, including advisory fees, if any. Institutional Shares do not have a sales charge.
2 The Fund invests primarily in investment grade municipal bonds covered by portfolio insurance guaranteeing the timely payment of principal at maturity and inter-
est. The Fund will usually invest in municipal bonds that have a maturity of five years or longer.
3 This unmanaged index consists of long-term revenue bonds, pre-refunded bonds, general obligation bonds and insured bonds.
4 The S&P/Investortools Main Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing,
Inc. that are priced daily. Bonds in the S&P/Investortools Main Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining
maturity of not less than 1 month. Effective October 28, 2009, the Fund now uses this index as its benchmark rather than Barclays Capital Municipal Bond Index
as Fund management believes it more accurately reflects the Fund’s investment strategies.
5 The S&P/Investortools Customized Insured Municipal Bond Index includes insured bonds in the S&P/Investortools Main Municipal Bond Index, excluding those that
are pre-refunded, escrowed to maturity, or insured by ACA Financial Guaranty Corporation.
Performance Summary for the Period Ended June 30, 2010
Average Annual Total Returns6 | ||||||||
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 | 4.04% | 3.26% | 10.04% | N/A | 3.62% | N/A | 5.27% | N/A |
Investor A | 3.62 | 3.13 | 9.76 | 5.09% | 3.35 | 2.46% | 5.01 | 4.55% |
Investor B | 3.28 | 2.73 | 9.20 | 5.20 | 2.82 | 2.49 | 4.46 | 4.46 |
Investor C | 3.02 | 2.74 | 9.09 | 8.09 | 2.61 | 2.61 | 4.24 | 4.24 |
Investor C1 | 3.22 | 2.84 | 9.30 | 8.30 | 2.78 | 2.78 | 4.43 | 4.43 |
Barclays Capital Municipal Bond Index | — | 3.31 | 9.61 | N/A | 4.40 | N/A | 5.63 | N/A |
S&P/Investortools Main Municipal Bond Index | — | 3.33 | 10.31 | N/A | 4.17 | N/A | 5.60 | N/A |
S&P/Investortools Customized Insured | ||||||||
Municipal Bond Index | — | 3.27 | 10.13 | N/A | 4.10 | N/A | 5.76 | N/A |
6 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 14 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
Actual | Hypothetical8 | ||||||||
Expenses Paid | Including Interest Expense | Excluding Interest Expense | |||||||
During the Period | and Fees | and Fees | |||||||
Beginning | Ending | Including | Excluding | Beginning | Ending | Ending | |||
Account Value Account Value | Interest | Interest | Account Value Account Value Expenses Account Value | Expenses | |||||
January 1, | June 30, | Expense | Expense | January 1, | June 30, | Paid During | June 30, | Paid During | |
2010 | 2010 | and Fees7 | and Fees8 | 2010 | 2010 | the Period7 | 2010 | the Period8 | |
Institutional | $1,000.00 | $1,032.60 | $2.57 | $2.32 | $1,000.00 | $1,022.27 | $2.56 | $1,022.52 | $2.31 |
Investor A | $1,000.00 | $1,031.30 | $3.88 | $3.63 | $1,000.00 | $1,020.98 | $3.86 | $1,021.23 | $3.61 |
Investor B | $1,000.00 | $1,027.30 | $6.43 | $6.18 | $1,000.00 | $1,018.45 | $6.41 | $1,018.70 | $6.16 |
Investor C | $1,000.00 | $1,027.40 | $7.69 | $7.44 | $1,000.00 | $1,017.21 | $7.65 | $1,017.46 | $7.40 |
Investor C1 | $1,000.00 | $1,028.40 | $6.69 | $6.44 | $1,000.00 | $1,018.20 | $6.66 | $1,018.45 | $6.41 |
7 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.51% for Institutional, 0.77% for Investor A, 1.28% for Investor B, 1.53% for Investor C
and 1.33% for Investor C1), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
8 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.46% for Institutional, 0.72% for Investor A, 1.23% for Investor B, 1.48% for Investor C
and 1.28% for Investor C1), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Expenses are net of waiver,
excluding interest expense and fees.
9 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.
See “Disclosure of Expenses” on page 15 for further information on how expenses were calculated.
ANNUAL REPORT JUNE 30, 2010 7
Fund Summary as of June 30, 2010 BlackRock National Municipal Fund
Portfolio Management Commentary
How did the Fund perform?
•Effective October 28, 2009, the Fund changed its primary benchmark from
the Barclays Capital Municipal Bond Index to the S&P/Investortools Main
Municipal Bond Index. The S&P/Investortools benchmark provides a closer
representation of the Fund’s investable universe than the Barclays Capital
Municpal Bond Index and more accurately reflects the investment strategy
of the Fund.
•For the 12-month period, the Fund’s Investor A and Institutional Shares
outperformed the benchmark, the S&P/Investortools Main Municipal Bond
Index, while the Investor B, Investor C and Investor C1 Shares underper-
formed. All share classes outperformed the former benchmark, the Barclays
Capital Municipal Bond Index. The following discussion of performance
is relative to the Fund’s benchmark, the S&P/Investortools Main Municipal
Bond Index.
What factors influenced performance?
•The Fund benefited from its relatively lower cash reserves throughout much
of the period. The more fully invested posture helped to increase income
and interest accrual, contributing to total return. Assets previously held in
cash reserves were committed to longer-dated securities, which offered
better income accrual than short-term cash equivalents. In particular, expo-
sure to maturities of 25 years and longer helped the Fund to achieve better
value from the steep yield curve. A larger exposure to inverse floating rate
securities also benefited performance, allowing the Fund to take advantage
of the steep curve and historically low short-term borrowing rates to gener-
ate incremental income.
•Tightening credit spreads during the year led to improved valuations on
lower-rated sectors. The Fund benefited from its exposure to airline credits.
That said, not all lower-quality sectors and geographic regions participated
equally in the price improvement. For example, the Fund’s holdings in
California did not depreciate, but also did not improve in valuation to the
same degree as other regions. Similarly, the Fund’s very small exposure
(less than 1% of total assets) to tobacco securities did not decline
significantly over the past 12 months, but also did not enjoy the same
degree of spread tightening as other high yield sectors. These detracted
from relative performance, as did our allocation, albeit modest, to low-
yielding cash reserves.
Describe recent portfolio activity.
•The Fund extended its duration in the second half of 2009. At that time,
BlackRock’s Municipal Investment Strategy Group had shifted its guidance
to a long duration posture, prompting our efforts position the Fund in a
more neutral stance. Accordingly, we committed a portion of the Fund’s
cash equivalent reserves to securities with maturities of 25 years and
longer to take advantage of the historically steep yield curve.
•We looked to capitalize on the tightening in credit quality spreads by selling
select lower-rated holdings that had outperformed. For example, we sold
the Fund’s position in Puerto Rico zero-coupon bonds, taking advantage of
an elevated level of liquidity for a sector and credit that had little sponsor-
ship in past periods. Similar sales were executed in high yield sectors that
had benefited from renewed investor interest, leading to higher prices at
tighter spreads.
Describe Fund positioning at period end.
•At period end, the Fund’s duration was neutral relative to the benchmark.
Efforts to further extend duration are being tempered by historically low
absolute yields for tax-exempt securities. Cash equivalent reserves, at 5%,
were slightly elevated at period-end. This was a recent change in strategy
aimed at protecting gains realized as rates dropped and spreads tightened.
At this juncture, we believe spreads are likely to remain stable, at least as
long as supply/demand in the municipal market remains favorable.
However, we are seeking to use the new liquidity provided by positive high
yield fund flows to sell holdings that had a limited audience in recent past
markets.
•Generally, our efforts remain focused on maximizing income accrual, while
managing volatility in the net asset value within a high-quality asset mix.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.
Portfolio Information | |||
Percent of | Percent of | ||
Sector Allocation | Long-Term Investments | Credit Quality Allocation1 | Long-Term Investments |
County/City/Special District/School District | 21% | AAA/Aaa | 18% |
Health | 21 | AA/Aa | 31 |
Utilities | 19 | A | 33 |
Transportation | 15 | BBB/Baa | 8 |
State | 9 | BB/Ba | 1 |
Corporate | 9 | B | 1 |
Education | 3 | CCC/Caa | 1 |
Housing | 3 | Not Rated2 | 7 |
1 Using the higher of S&P’s or Moody’s ratings.
2 The investment advisor has deemed certain of these non-rated securities to be
of investment grade quality. The market value of these securities was $78,367,770
representing 3% of the Fund’s long-term investments.
8 ANNUAL REPORT
JUNE 30, 2010
BlackRock National Municipal Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge transaction costs and other operating expenses, including advisory fees, if any. Institutional Shares do not have a sales charge.
2 The Fund invests primarily in long-term municipal bonds rated in any rating category or in unrated municipal bonds.
3 This unmanaged index consists of long-term revenue bonds, pre-refunded bonds, general obligation bonds and insured bonds.
4 The S&P/Investortools Main Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing,
Inc. that are priced daily. Bonds in the S&P/Investortools Main Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining
maturity of not less than 1 month. Effective October 28, 2009, the Fund now uses this index as its benchmark rather than Barclays Capital Municipal Bond Index
as Fund management believes it more accurately reflects the Fund’s investment strategies.
Performance Summary for the Period Ended June 30, 2010
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 | |
Institutional | 4.08% | 4.12% | 11.16% | N/A | 3.96% | N/A | 5.70% | N/A |
Investor A | 3.66 | 4.00 | 10.77 | 6.06% | 3.69 | 2.80% | 5.43 | 4.97% |
Investor B | 3.33 | 3.73 | 10.21 | 6.21 | 3.16 | 2.82 | 4.89 | 4.89 |
Investor C | 3.07 | 3.61 | 9.95 | 8.95 | 2.91 | 2.91 | 4.64 | 4.64 |
Investor C1 | 3.29 | 3.72 | 10.28 | 9.28 | 3.14 | 3.14 | 4.85 | 4.85 |
Barclays Capital Municipal Bond Index | — | 3.31 | 9.61 | N/A | 4.40 | N/A | 5.63 | N/A |
S&P/Investortools Main Municipal Bond Index | — | 3.33 | 10.31 | N/A | 4.17 | N/A | 5.60 | N/A |
5 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 14 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
Actual | Hypothetical8 | ||||||||
Expenses Paid | Including Interest Expense | Excluding Interest Expense | |||||||
During the Period | and Fees | and Fees | |||||||
Beginning | Ending | Including | Excluding | Beginning | Ending | Ending | |||
Account Value Account Value | Interest | Interest | Account Value Account Value Expenses Account Value | Expenses | |||||
January 1, | June 30, | Expense | Expense | January 1, | June 30, | Paid During | June 30, | Paid During | |
2010 | 2010 | and Fees6 | and Fees7 | 2010 | 2010 | the Period6 | 2010 | the Period7 | |
Institutional | $1,000.00 | $1,041.20 | $3.19 | $2.99 | $1,000.00 | $1,021.68 | $3.16 | $1,021.87 | $2.96 |
Investor A | $1,000.00 | $1,040.00 | $4.45 | $4.25 | $1,000.00 | $1,020.44 | $4.41 | $1,020.63 | $4.21 |
Investor B | $1,000.00 | $1,037.30 | $7.02 | $6.87 | $1,000.00 | $1,017.91 | $6.95 | $1,018.06 | $6.81 |
Investor C | $1,000.00 | $1,036.10 | $8.18 | $8.03 | $1,000.00 | $1,016.77 | $8.10 | $1,016.92 | $7.95 |
Investor C1 | $1,000.00 | $1,037.20 | $7.17 | $7.02 | $1,000.00 | $1,017.76 | $7.10 | $1,017.91 | $6.95 |
6 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.63% for Institutional, 0.88% for Investor A, 1.39% for Investor B, 1.62% for Investor C
and 1.42% for Investor C1), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
7 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.59% for Institutional, 0.84% 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 181/365 (to reflect the one-half year period shown). Expenses are net of waiver,
excluding interest expense and fees.
8 Hypothetical 5% annual return before expenses is calculated by pro-rating the number of days in the most recent fiscal half-year divided by 365.
See “Disclosure of Expenses” on page 15 for further information on how expenses were calculated.
ANNUAL REPORT JUNE 30, 2010 9
Fund Summary as of June 30, 2010 BlackRock High Yield Municipal Fund
Portfolio Management Commentary
How did the Fund perform?
•Effective October 28, 2009, the Fund changed its primary benchmark
from the Barclays Capital Municipal Bond Index to the S&P/Investortools
Main Municipal Bond Index and also added the S&P Investortools Cust-
omized High Yield Municipal Bond Index as a secondary benchmark.
The S&P/Investortools Main Municipal Bond Index provides a closer rep-
resentation of the Fund’s investable universe than the Barclays Capital
Municipal Bond Index and more accurately reflects the investment strategy
of the Fund.
•For the 12-month period, returns for the Fund’s Investor A and Institutional
Shares outperformed the S&P/Investortools Main Municipal Bond Index,
the Fund’s primary benchmark, the Barclays Capital Municipal Bond Index
and the Barclays Capital High Yield Municipal Bond Index, but underper-
formed the S&P/Investortools Customized High Yield Municipal Bond Index,
the Fund’s secondary benchmark. The Fund’s Class C Shares outperformed
the S&P/Investortools Main Municipal Bond Index and the Barclays Capital
Municipal Bond Index, but underperformed the Barclays Capital High Yield
Municipal Bond Index and the S&P/Investortools Customized High Yield
Municipal Bond Index. The following discussion of performance is relative
to the Fund’s secondary benchmark, the S&P/Investortools Customized
High Yield Municipal Bond Index.
What factors influenced performance?
•Factors that contributed to positive performance during the fiscal year
included the Fund’s above-market duration stance, emphasis on longer-
dated securities, and sector concentrations in health care, housing and
industrial development bonds. The Fund also benefited from its under-
weight exposure to tobacco credits.
•Factors that detracted from Fund performance included underweight expo-
sures to the lower end of the credit spectrum, as well as below-benchmark
weightings in Puerto Rico.
Describe recent portfolio activity.
•Portfolio activity has been focused on some modest repositioning geared
toward boosting the Fund’s dividend yield. This has been accomplished pri-
marily through increased exposure to tender option bond trusts, a strategy
designed to generate incremental yield via a modest degree of leverage. In
addition, wider credit spreads in the municipal marketplace have afforded
us the opportunity to capitalize on several attractive investment opportuni-
ties in the new-issue market.
Describe Fund positioning at period end.
•We continue to believe that credit spreads remain attractive. This is particu-
larly true for longer-dated bonds, where our investments are mostly concen-
trated. As such, portfolio duration at period-end remained somewhat higher
than that of the Fund’s peers, while credit quality and sector exposures
remain similar to the profile in place for much of the year.
•The Fund’s cash reserves were minimal at period end, as cash equivalent
investment alternatives provide poor returns at this time, offering little
incentive for investment.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.
Portfolio Information
Percent of | |
Sector Allocation | Long-Term Investments |
Health | 33% |
Corporate | 16 |
Transportation | 12 |
County/City/Special District/School District | 11 |
State | 7 |
Housing | 6 |
Utilities | 6 |
Education | 5 |
Tobacco | 4 |
Percent of | |
Credit Quality Allocation1 | Long-Term Investments |
AAA/Aaa | 4% |
AA/Aa | 13 |
A | 18 |
BBB/Baa | 30 |
BB/Ba | 4 |
B | 4 |
CCC/Caa | 2 |
Not Rated2 | 25 |
1 Using the higher of S&P’s or Moody’s ratings.
2 The investment advisor has deemed certain of these non-rated securities to be
of investment grade quality. As of June 30, 2010, the market value of these securities
was $9,670,489 representing 7% of the Fund’s long-term investments.
10 ANNUAL REPORT
JUNE 30, 2010
BlackRock High Yield Municipal Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge transaction costs and other operating expenses, including advisory fees, if any. 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 long-term revenue bonds, pre-refunded bonds, general obligation bonds and insured bonds.
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 The S&P/Investortools Main Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing,
Inc. that are priced daily. Bonds in the S&P/Investortools Main Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining
maturity of not less than 1 month. Effective October 28, 2009, the Fund now uses this index as its primary benchmark rather than Barclays Capital Municipal Bond
Index as Fund management believes it more accurately reflects the Fund’s investment strategies.
6 The S&P/Investortools Customized High Yield Municipal Bond Index is a blended subset of the S&P/Investortools Main Municipal Bond Index that includes non-
insured bonds rated below BBB– or non-rated (85%) and bonds rated BBB (15%), excluding those that are in default, are pre-refunded, or are escrowed to maturity.
7 Commencement of Operations.
Performance Summary for the Period Ended June 30, 2010
Average Annual Total Returns8 | ||||||
1 Year | Since Inception9 | |||||
Standardized | 6-Month | w/o sales | w/sales | w/o sales | w/sales | |
30-Day Yields | Total Returns | charge | charge | charge | charge | |
Institutional | 5.39% | 6.35% | 22.88% | N/A | 1.14% | N/A |
Investor A | 4.89 | 6.21 | 22.58 | 17.37% | 0.85 | (0.27)% |
Investor C | 4.31 | 5.66 | 21.61 | 20.61 | 0.12 | 0.12 |
Barclays Capital High Yield Municipal Bond Index | — | 7.29 | 21.90 | N/A | 1.51 | N/A |
Barclays Capital Municipal Bond Index | — | 3.31 | 9.61 | N/A | 5.08 | N/A |
S&P/Investortools Main Municipal Bond Index | — | 3.33 | 10.31 | N/A | 4.66 | N/A |
S&P/Investortools Customized High Yield Municipal Bond Index | — | 6.83 | 24.00 | N/A | 1.74 | N/A |
8 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 14 for a detailed description of share classes, including any related sales charges and fees.
9 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.
Expense Example
Actual | Hypothetical12 | ||||||||
Expenses Paid | Including Interest Expense | Excluding Interest Expense | |||||||
During the Period | and Fees | and Fees | |||||||
Beginning | Ending | Including | Excluding | Beginning | Ending | Ending | |||
Account Value Account Value | Interest | Interest | Account Value Account Value Expenses | Account Value | Expenses | ||||
January 1, | June 30, | Expense | Expense | January 1, | June 30, | Paid During | June 30, | Paid During | |
2010 | 2010 | and Fees10 | and Fees11 | 2010 | 2010 | the Period10 | 2010 | the Period11 | |
Institutional | $1,000.00 | $1,063.50 | $4.09 | $3.94 | $1,000.00 | $1,020.83 | $4.01 | $1,020.98 | $3.86 |
Investor A | $1,000.00 | $1,062.10 | $5.47 | $5.27 | $1,000.00 | $1,019.49 | $5.36 | $1,019.69 | $5.16 |
Investor C | $1,000.00 | $1,056.60 | $9.48 | $9.33 | $1,000.00 | $1,015.58 | $9.30 | $1,015.73 | $9.15 |
10 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.80% for Institutional, 1.07% for Investor A and 1.86% for Investor C), multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
11 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 and 1.83% for Investor C), multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown). Expenses are net of waiver, excluding interest expense and fees.
12 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.
See “Disclosure of Expenses” on page 15 for further information on how expenses were calculated.
ANNUAL REPORT JUNE 30, 2010 11
Fund Summary as of June 30, 2010 BlackRock New York Municipal Bond Fund
Portfolio Management Commentary
How did the Fund perform?
•Effective October 28, 2009, the Fund changed its primary benchmark
from the Barclays Capital Municipal Bond Index to the S&P/Investortools
Main Municipal Bond Index and also added the S&P Investortools New York
Municipal Bond Index as a secondary benchmark. The S&P/Investortools
benchmarks provide a closer representation of the New York Fund’s invest-
able universe than the Barclays Capital Municipal Bond Index and more
accurately reflects the investment strategy of the Fund.
•For the 12-month period, the Fund outperformed its primary benchmark,
the S&P/Investortools Main Municipal Bond Index, its secondary bench-
mark, the S&P/Investortools New York Municipal Bond Index, and its former
benchmark, the Barclays Capital Municipal Bond Index. The following dis-
cussion of performance is relative to the Fund’s secondary benchmark, the
S&P/Investortools New York Municipal Bond Index.
What factors influenced performance?
•For the majority of the period, the Fund had a slightly long duration bias
and was weighted toward the long end of the yield curve. This positioning
enabled the Fund to benefit from elevated prices on tax-exempt bonds that
resulted from continued demand amid a declining supply of new issues
due to the Build America Bond program. Many of the Fund’s older holdings
that had suffered during the credit crisis performed well during the period,
as liquidity returned to the municipal market and investors favored tax-
exempt cash flow over the more volatile returns of the equity market. An
above-average yield resulting from the concentration of holdings on the
longer end of the curve and the retention of core higher yielding housing
and corporate credits also contributed positively to total return.
•Detracting from performance during the period was the Fund’s high
concentration in high-coupon short-term callable bonds, which tended
to underperform the market due to their shorter duration and
negative convexity.
Describe recent portfolio activity.
•Throughout the year, we actively participated when new issues became
available in order to add attractively structured bonds, improve call protec-
tion and, in most cases, achieve higher yields than were available in the
secondary market. Recognizing the growing importance of individual
investors in driving demand, we intentionally structured many of these new-
issue purchases to appeal to buyers in the secondary market. While this
activity was not significant enough to alter the Fund’s overall holdings pro-
file or extend the Fund beyond its targeted duration range, it did enable the
Fund to reap the rewards of holding higher-beta (higher sensitivity to mar-
ket volatility) bonds, which outperformed as municipal bonds rallied. Many
of the new-issue purchases were funded by the sale of older bonds with
more negative convexity that we believed had already seen the bulk of their
potential return.
Describe Fund positioning at period end.
•The Fund ended the period with a neutral-to-slightly long duration bias
relative to the S&P/Investortools New York Municipal Bond Index.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These
views are not intended to be a forecast of future events and are no guarantee of future results.
Portfolio Information
Percent of | |
Sector Allocation | Long-Term Investments |
Transportation | 15% |
Health | 15 |
Education | 14 |
County/City/Special District/School District | 14 |
Corporate | 12 |
State | 12 |
Housing | 8 |
Utilities | 7 |
Tobacco | 3 |
Percent of | |
Credit Quality Allocation1 | Long-Term Investments |
AAA/Aaa | 10% |
AA/Aa | 21 |
A | 38 |
BBB/Baa | 11 |
BB/Ba | 4 |
B | 1 |
CCC/Caa | 2 |
Not Rated2 | 13 |
1 Using the higher of S&P’s or Moody’s ratings.
2 The investment advisor has deemed certain of these non-rated securities to be
of investment grade quality. As of June 30, 2010, the market value of these securities
was $11,252,527 representing 4% of the Fund’s long-term investments.
12 ANNUAL REPORT JUNE 30, 2010
BlackRock New York Municipal Bond Fund
Total Return Based on a $10,000 Investment
1 Assuming maximum sales charge transaction costs and other operating expenses, including advisory fees, if any. Institutional Shares do not have a sales charge.
2 The Fund invests primarily in a portfolio of investment grade New York municipal bonds. The Fund expects to maintain an average weighted maturity of greater than
ten years.
3 This unmanaged index consists of long-term revenue bonds, pre-refunded bonds, general obligation bonds and insured bonds.
4 The S&P/Investortools Main Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing,
Inc. that are priced daily. Bonds in the S&P/Investortools Main Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining
maturity of not less than 1 month. Effective October 28, 2009, the Fund now uses this index as its benchmark rather than Barclays Capital Municipal Bond Index
as Fund management believes it more accurately reflects the Fund’s investment strategies.
5 The S&P/Investortools New York Municipal Bond Index includes all New York bonds in the S&P/Investortools Main Municipal Bond Index.
Performance Summary for the Period Ended June 30, 2010
Average Annual Total Returns6 | ||||||||
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 | 4.01% | 3.82% | 12.74% | N/A | 3.58% | N/A | 5.04% | N/A |
Investor A | 3.59 | 3.59 | 12.33 | 7.56% | 3.29 | 2.40% | 4.77 | 4.31% |
Investor A1 | 3.75 | 3.67 | 12.49 | 7.99 | 3.47 | 2.62 | 4.93 | 4.51 |
Investor B | 3.50 | 3.56 | 12.15 | 8.15 | 3.03 | 2.69 | 4.50 | 4.50 |
Investor C | 3.00 | 3.31 | 11.62 | 10.62 | 2.53 | 2.53 | 3.99 | 3.99 |
Investor C1 | 3.41 | 3.41 | 12.06 | 11.06 | 2.94 | 2.94 | 4.40 | 4.40 |
Barclays Capital Municipal Bond Index | — | 3.31 | 9.61 | N/A | 4.40 | N/A | 5.63 | N/A |
S&P/Investortools Main Municipal Bond Index | — | 3.33 | 10.31 | N/A | 4.17 | N/A | 5.60 | N/A |
S&P/Investortools New York Municipal Bond Index | — | 3.27 | 9.70 | N/A | 4.46 | N/A | 5.69 | N/A |
6 Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund
Performance” on page 14 for a detailed description of share classes, including any related sales charges and fees.
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Expense Example
Actual | Hypothetical9 | ||||||||
Expenses Paid | Including Interest Expense | Excluding Interest Expense | |||||||
During the Period | and Fees | and Fees | |||||||
Beginning | Ending | Including | Excluding | Beginning | Ending | Ending | |||
Account Value Account Value | Interest | Interest | Account Value Account Value Expenses Account Value Expenses | ||||||
January 1, | June 30, | Expense | Expense | January 1, | June 30, | Paid During | June 30, | Paid During | |
2010 | 2010 | and Fees7 | and Fees8 | 2010 | 2010 | the Period7 | 2010 | the Period8 | |
Institutional | $1,000.00 | $1,038.20 | $3.84 | $3.79 | $1,000.00 | $1,021.03 | $3.81 | $1,021.08 | $3.76 |
Investor A | $1,000.00 | $1,035.90 | $5.20 | $5.10 | $1,000.00 | $1,019.74 | $5.16 | $1,019.79 | $5.06 |
Investor A1 | $1,000.00 | $1,036.70 | $4.39 | $4.39 | $1,000.00 | $1,020.44 | $4.36 | $1,020.49 | $4.36 |
Investor B | $1,000.00 | $1,035.60 | $6.51 | $6.46 | $1,000.00 | $1,018.40 | $6.46 | $1,018.45 | $6.41 |
Investor C | $1,000.00 | $1,033.10 | $8.92 | $8.87 | $1,000.00 | $1,016.02 | $8.85 | $1,016.07 | $8.80 |
Investor C1 | $1,000.00 | $1,034.10 | $6.91 | $6.86 | $1,000.00 | $1,018.01 | $6.85 | $1,018.06 | $6.81 |
7 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.76% for Institutional, 1.03% for Investor A, 0.87% for Investor A1, 1.29% for Investor B,
1.77% for Investor C and 1.37% for Investor C1), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
8 For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.75% for Institutional, 1.01% for Investor A, 0.87% for Investor A1, 1.28% for Investor B,
1.76% for Investor C and 1.36% for Investor C1), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).
Expenses are net of waiver, excluding interest expense and fees.
9 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.
See “Disclosure of Expenses” on page 15 for further information on how expenses were calculated.
ANNUAL REPORT JUNE 30, 2010 13
About Fund Performance
•BlackRock and Institutional Shares (BlackRock Shares are available only
in BlackRock Short-Term Municipal Fund) are not subject to any sales
charge. These shares bear no ongoing distribution or service fees and are
available only to eligible investors. Prior to October 2, 2006, BlackRock
Share performance results are those of the Institutional Shares.
•Investor A Shares incur a maximum initial sales charge (front-end load)
of 4.25% for all Funds except BlackRock Short-Term Municipal Fund which
incurs a 3.00% maximum initial sales charge and all Funds incur a service
fee of 0.25% per year (but no distribution fee). Prior to the Investor A
Shares inception date of October 2, 2006 (for all Funds except BlackRock
High Yield Municipal Fund, BlackRock Municipal Insured Fund and
BlackRock National Municipal Fund), Investor A Share performance results
are those of the Institutional Shares (which have no distribution or service
fees) restated to reflect Investor A Share fees.
•Investor A1 Shares (available only in BlackRock Short-Term Municipal
Fund and BlackRock New York Municipal Bond Fund) incur a maximum
initial sales charge (front-end load) of 1.00% for BlackRock Short-Term
Municipal Fund and 4.00% for BlackRock New York Municipal Fund; and
a service fee of 0.10% per year (but no distribution fee).
•Investor B Shares (available to all Funds except BlackRock High Yield
Municipal Fund) are subject to the following maximum contingent deferred
sales charges:
Maximum Contingent | |
Deferred Sales Charges | |
BlackRock Short-Term Municipal Fund | 1%, declining to 0% after 3 years |
BlackRock Municipal Insured Fund | 4%, declining to 0% after 6 years |
BlackRock National Municipal Fund | 4%, declining to 0% after 6 years |
BlackRock New York Municipal Bond Fund | 4%, declining to 0% after 6 years |
In addition, these shares are subject to distribution and service fees per | |
year as follows: |
Distribution | Service | |
Fee | Fee | |
BlackRock Short-Term Municipal Fund | 0.20% | 0.15% |
BlackRock Municipal Insured Fund | 0.50% | 0.25% |
BlackRock National Municipal Fund | 0.50% | 0.25% |
BlackRock New York Municipal Bond Fund | 0.25% | 0.25% |
For BlackRock Short-Term Municipal Fund and BlackRock New York
Municipal Bond Fund, the shares automatically convert to Investor A1
Shares after approximately 10 years. For BlackRock Municipal Insured
Fund and BlackRock National Municipal Fund, the shares automatically
convert to Investor A Shares after approximately 10 years. (There is no
initial sales charge for automatic sales conversions.)
•Investor C Shares are subject to a 1.00% contingent deferred sales
charge if redeemed within one year of purchase. In addition, these shares
are subject to a distribution fee of 0.75% per year and a service fee of
0.25% per year. Prior to the Investor C Shares inception date of October 2,
2006 (for all Funds except BlackRock High Yield Municipal Fund), Investor
C Share performance results are those of Institutional Shares (which have
no distribution or service fees) restated to reflect Investor C Share fees.
•Investor C1 Shares (available to all Funds except BlackRock High Yield
Municipal Fund and BlackRock Short-Term Municipal Fund) are subject
to a 1.00% contingent deferred sales charge if redeemed within one year
of purchase.
In addition, these shares are subject to distribution and service fees per
year as follows:
Distribution | Service | |
Fee | Fee | |
BlackRock Municipal Insured Fund | 0.55% | 0.25% |
BlackRock National Municipal Fund | 0.55% | 0.25% |
BlackRock New York Municipal Bond Fund | 0.35% | 0.25% |
Investor A1, Investor B and Investor C1 Shares of each Fund are only avail-
able through exchanges, dividend reinvestment by existing shareholders or
for purchase by certain qualified employee benefit plans.
Performance information reflects past performance and does not guarantee
future results. Current performance may be lower or higher than the per-
formance data quoted. Refer to www.blackrock.com/funds to obtain per-
formance data current to the most recent month-end. Performance results
do not reflect the deduction of taxes that a shareholder would pay on fund
distributions or the redemption of fund shares. Figures shown in each of
the performance tables on the previous pages assume reinvestment of all
dividends and capital gain distributions, if any, at net asset value on the
payable date.
The Funds’ investment advisor 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 origi-
nal 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.
14 ANNUAL REPORT
JUNE 30, 2010
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, service
and distribution fees including 12b-1 fees, and other Fund expenses.
The expense examples on the previous pages (which are based on a
hypothetical investment of $1,000 invested on January 1, 2010 and held
through June 30, 2010) are intended to assist shareholders both in calcu-
lating 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
Fund and share class under the headings entitled “Expenses Paid During
the Period.”
The tables also provide information about hypothetical account values and
hypothetical expenses based on 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 different
funds. If these transactional expenses were included, shareholder expenses
would have been higher.
ANNUAL REPORT
JUNE 30, 2010
15
The Benefits and Risks of Leveraging
The Funds may utilize leverage to seek to enhance the yield and net asset
value (“NAV”). However, these objectives cannot be achieved in all interest
rate environments.
The Funds may leverage their assets through the use of tender option bond
(“TOB”) programs, as described in Note 1 of the Notes to Financial
Statements. TOB investments generally will provide the Funds with eco-
nomic benefits in periods of declining short-term interest rates, but
expose the Funds to risks during periods of rising short-term interest rates.
Additionally, fluctuations in the market value of municipal bonds deposited
into the TOB trust may adversely affect each Fund’s NAVs per share.
In general, the concept of leveraging is based on the premise that the
financing 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
leverage) are invested in higher-yielding portfolio investments, each Fund
will benefit from the incremental net income.
Furthermore, the value of the Funds’ investments generally varies inversely
with the direction of long-term interest rates, although other factors can
influence the value of portfolio investments. As a result, changes in interest
rates can influence the Funds’ NAV positively or negatively in addition to
the impact on the Funds’ performance from leverage.
The use of leverage may enhance opportunities for increased income to
the Funds, but as described above, it also creates risks as short- or long-
term interest rates fluctuate. Leverage also will generally cause greater
changes in a Fund’s NAV and dividend rate than a comparable portfolio
without leverage. If the income derived from securities 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 inop-
portune times or at distressed values in order to comply with regulatory
requirements applicable to the use of leverage or as required by the terms
of leverage instruments, which may cause a Fund to incur losses. The use
of leverage may limit 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 and may reduce investment returns.
Derivative Financial Instruments
The Funds may invest in various derivative instruments, including financial
futures contracts, as specified in Note 2 of the Notes to Financial State-
ments, which may constitute forms of economic leverage. Such instruments
are used to obtain exposure to a market without owning or taking physical
custody of securities or to hedge market and/or interest rate risks. Such
derivative instruments involve risks, including the imperfect correlation
between the value of a derivative instrument and the underlying asset,
possible default of the counterparty to the transaction or illiquidity of
the derivative instrument. A Fund’s ability to successfully use a derivative
instrument depends on the investment advisor’s ability to accurately pre-
dict 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 distressed values, may limit the amount of
appreciation a Fund can realize on an investment, may result in lower
dividends paid to shareholders or may cause a Fund to hold a security
that it might otherwise sell. The Funds’ investments in these instruments
are discussed in detail in the Notes to Financial Statements.
16 ANNUAL REPORT
JUNE 30, 2010
Schedule of Investments June 30, 2010 BlackRock Short-Term Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Alaska — 0.8% | ||
City of Anchorage Alaska, GO, Refunding, Series B | ||
(NPFGC), 5.50%, 7/01/11 | $ 8,885 | $ 9,338,046 |
Arizona — 1.0% | ||
Arizona State Transportation Board, RB, Maricopa County | ||
Regional Area Road, 5.00%, 7/01/12 | 3,250 | 3,529,500 |
Salt River Project Agricultural Improvement & Power | ||
District, Refunding RB, Salt River Project, Series A, | ||
5.00%, 1/01/12 | 3,160 | 3,372,131 |
Yavapai County IDA, RB, Waste Management Inc. | ||
Project, Series A, Mandatory Put Bonds, AMT, | ||
2.88%, 3/01/28 (a) | 5,000 | 4,980,300 |
11,881,931 | ||
California — 5.2% | ||
California Infrastructure & Economic Development Bank, | ||
Refunding RB, J. Paul, Series A-4, Mandatory | ||
Put Bonds, 1.65%, 10/01/47 (a) | 5,500 | 5,542,240 |
California Pollution Control Financing Authority, | ||
Refunding RB, USA Waste Services Inc., Series A, | ||
Mandatory Put Bonds, AMT, 2.00%, 6/01/11 (a) | 13,520 | 13,524,867 |
California State Department of Water Resources, | ||
Refunding RB, Series L, 5.00%, 5/01/12 | 10,000 | 10,760,700 |
California Statewide Communities Development Authority, | ||
RB, Kaiser Permanente, Series A: | ||
5.00%, 4/01/13 | 5,000 | 5,426,300 |
5.00%, 4/01/14 | 1,000 | 1,098,780 |
City & County of San Francisco California, GO, Refunding, | ||
Series 2008-R1, 5.00%, 6/15/11 | 5,000 | 5,222,250 |
San Francisco City & County Airports Commission, | ||
Refunding RB, Second Series B, Mandatory Put Bonds, | ||
0.75%, 9/15/10 (a) | 3,000 | 3,001,470 |
State of California, GO, Refunding, 5.00%, 5/01/13 | 4,235 | 4,637,664 |
State of California, GO, Various Purpose: | ||
5.00%, 3/01/12 | 2,420 | 2,578,631 |
5.00%, 3/01/13 | 6,885 | 7,515,391 |
59,308,293 | ||
Colorado — 0.9% | ||
Adams 12 Five Star Schools, GO, Refunding, Series A | ||
(AGM), 5.00%, 12/15/11 | 4,190 | 4,460,758 |
Colorado Health Facilities Authority, Refunding RB, | ||
Catholic Healthcare, Series B, Mandatory Put Bonds, | ||
5.00%, 7/01/39 (a) | 5,000 | 5,404,550 |
9,865,308 |
Par | ||
Municipal Bonds | (000) | Value |
Connecticut — 3.6% | ||
Connecticut Municipal Electric Energy Cooperative, | ||
Refunding RB, Series A (AGC), 5.00%, 1/01/14 | $ 2,115 | $ 2,372,840 |
Connecticut State Development Authority, RB, | ||
Connecticut Light & Power, Series A, Mandatory | ||
Put Bonds, AMT, 1.40%, 10/01/10 (a) | 7,600 | 7,598,252 |
State of Connecticut, GO, Economic Recovery, Series A, | ||
5.00%, 1/01/13 | 11,500 | 12,670,355 |
State of Connecticut, RB, Transportation Infrastructure, | ||
Series A, 2.50%, 12/01/10 | 15,275 | 15,413,391 |
State of Connecticut, Refunding RB, Transportation | ||
Infrastructure, Series B, 2.50%, 12/01/10 | 3,215 | 3,244,128 |
41,298,966 | ||
Delaware — 2.3% | ||
State of Delaware, GO, Refunding: | ||
5.00%, 3/01/11 | 10,000 | 10,314,900 |
Series 2009C, 5.00%, 10/01/13 | 7,700 | 8,715,014 |
University of Delaware, RB, Series A, Mandatory | ||
Put Bonds, 2.00%, 11/01/37 (a) | 4,000 | 4,034,560 |
University of Delaware, Refunding RB, Series B, | ||
2.00%, 11/01/10 | 3,375 | 3,394,575 |
26,459,049 | ||
District of Columbia — 0.4% | ||
Metropolitan Washington Airports Authority, Refunding RB, | ||
Series A, AMT (AMBAC), 5.00%, 10/01/10 | 4,665 | 4,714,262 |
Florida — 4.8% | ||
County of Escambia Florida, Refunding RB, Gulf | ||
Power Co. Project, First Series, Mandatory Put Bonds, | ||
2.00%, 4/01/39 (a) | 9,000 | 9,041,490 |
Florida State Board of Education, GO, Refunding: | ||
Cap Outlay, Series D, 5.00%, 6/01/11 | 7,445 | 7,756,871 |
Public Education, Series C, 5.00%, 6/01/12 | 5,000 | 5,411,500 |
Public Education, Series G (NPFGC), 5.25%, 6/01/11 | 5,600 | 5,847,408 |
Florida State Department of Environmental Protection, | ||
RB, Florida Forever, Series A, 5.00%, 7/01/13 | 4,675 | 5,201,966 |
Florida State Department of Environmental Protection, | ||
Refunding RB, Series C, 4.00%, 7/01/12 | 8,500 | 9,037,625 |
Florida State Department of Transportation, | ||
Refunding RB, Department of Transportation, | ||
Series A, 5.00%, 7/01/12 | 4,575 | 4,954,084 |
Jacksonville Electric Authority Florida, RB, Issue Three, | ||
Series One, 4.00%, 10/01/11 | 2,320 | 2,416,350 |
Jacksonville Electric Authority Florida, Refunding RB, | ||
Issue Two, 17th Series, 5.25%, 10/01/12 | 5,000 | 5,260,400 |
54,927,694 |
Portfolio Abbreviations | |||||
To simplify the listings of portfolio holdings in the | COP | Certificates of Participation | ISD | Independent School District | |
Schedules of Investments, the names and descriptions of | EDA | Economic Development Authority | LRB | Lease Revenue Bonds | |
many of the securities have been abbreviated according | EDC | Economic Development Corp. | M/F | Multi-Family | |
to the following list: | ERB | Education Revenue Bonds | MRB | Mortgage Revenue Bonds | |
ERS | Extendible Reset Securities | NPFGC | National Public Finance Guarantee Corp. | ||
ACA | ACA Financial Guaranty Corp. | FGIC | Financial Guaranty Insurance Co. | PCRB | Pollution Control Revenue Bonds |
AGC | Assured Guaranty Corp. | FHA | Federal Housing Administration | PILOT | Payment in Lieu of Taxes |
AGM | Assured Guaranty Municipal Corp. | GO | General Obligation Bonds | PSF-GTD | Permanent School Fund Guaranteed |
AMBAC | American Municipal Bond Assurance Corp. | HDA | Housing Development Agency | RB | Revenue Bonds |
AMT | Alternative Minimum Tax (subject to) | HFA | Housing Finance Agency | S/F | Single-Family |
ARB | Airport Revenue Bonds | HRB | Housing Revenue Bonds | SAN | State Aid Notes |
BAN | Bond Anticipation Notes | HUD | U.S. Department of Housing and Urban | SONYMA | State of New York Mortgage Agency |
BHAC | Berkshire Hathaway Assurance Corp. | Development | TE | Tax-Exempt | |
CAB | Capital Appreciation Bonds | IDA | Industrial Development Authority | TECP | Tax-Exempt Commercial Paper |
CIFG | CDC IXIS Financial Guaranty | IDB | Industrial Development Board | VRDN | Variable Rate Demand Notes |
IDRB | Industrial Development Revenue Bonds |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 17
Schedule of Investments (continued) BlackRock Short-Term Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Georgia — 3.3% | ||
Burke County Development Authority, Refunding RB, | ||
Georgia Power Co. Plant Vogtle Project, Mandatory | ||
Put Bonds, 5.05%, 11/01/48 (a) | $ 6,000 | $ 6,317,820 |
Henry County School District, GO, Series A, | ||
5.00%, 4/01/11 | 15,000 | 15,527,250 |
Private Colleges & Universities Authority, Refunding RB, | ||
Emory University, Series A, 5.25%, 9/01/11 | 10,280 | 10,858,970 |
State of Georgia, GO, Series G, 4.00%, 11/01/11 | 5,000 | 5,239,800 |
37,943,840 | ||
Hawaii — 0.8% | ||
State of Hawaii, GO, Series CU (NPFGC), | ||
5.55%, 10/01/10 (b) | 4,960 | 5,026,365 |
State of Hawaii, Refunding RB, Series B, AMT, | ||
5.00%, 7/01/13 | 4,000 | 4,331,720 |
9,358,085 | ||
Illinois — 1.5% | ||
Illinois Finance Authority, RB, University of Chicago, | ||
Series B, 5.00%, 7/01/13 | 2,000 | 2,236,700 |
Illinois Finance Authority, Refunding RB, University of | ||
Chicago, Series A, 5.25%, 7/01/11 (b) | 5,000 | 5,300,100 |
State of Illinois, GO: | ||
First Series (NPFGC), 5.13%, 10/01/12 | 5,000 | 5,354,950 |
Series B, 5.00%, 3/01/13 | 4,000 | 4,296,360 |
17,188,110 | ||
Indiana — 0.8% | ||
Indiana Bond Bank, RB, State Revolving Fund Program, | ||
Series B, 5.30%, 8/01/10 (b) | 3,750 | 3,803,662 |
Indiana Finance Authority, RB, Ascension Health Credit | ||
Group, Mandatory Put Bonds (a): | ||
Series A1, 3.63%, 11/15/36 | 4,135 | 4,271,331 |
Series A3, 5.00%, 11/01/27 | 1,000 | 1,043,200 |
9,118,193 | ||
Iowa — 0.3% | ||
Iowa Higher Education Loan Authority, RB, Private | ||
College Facility: | ||
4.00%, 12/01/12 | 1,500 | 1,618,545 |
4.00%, 12/01/13 | 1,150 | 1,264,298 |
2,882,843 | ||
Kansas — 0.5% | ||
Kansas State Department of Transportation, | ||
Refunding RB, Series A, 5.00%, 9/01/12 | 5,000 | 5,477,550 |
Kentucky — 0.6% | ||
Kentucky Asset Liability Commission, Refunding RB, | ||
Project Notes, Series A (AMBAC), 5.00%, 7/15/10 | 2,000 | 2,003,660 |
Kentucky Economic Development Finance Authority, | ||
Refunding RB, Baptist Healthcare System, Series A, | ||
5.00%, 8/15/12 | 2,650 | 2,850,340 |
Kentucky State Property & Buildings Commission, | ||
Refunding RB, Project No. 87 (NPFGC), | ||
5.00%, 3/01/12 | 2,000 | 2,140,380 |
6,994,380 | ||
Louisiana — 1.1% | ||
State of Louisiana, GO, Refunding, Series B, | ||
5.00%, 4/15/12 | 4,220 | 4,542,788 |
State of Louisiana, GO, Series A, 5.00%, 5/01/13 | 7,075 | 7,850,420 |
12,393,208 |
Municipal Bonds | (000) | Value |
Maine — 1.4% | ||
Maine Municipal Bond Bank, RB, Series D, | ||
5.00%, 11/01/12 | $ 1,460 | $ 1,607,679 |
Maine Municipal Bond Bank, Refunding RB, Series F: | ||
3.00%, 11/01/10 | 7,670 | 7,741,024 |
4.00%, 11/01/11 | 6,000 | 6,284,460 |
15,633,163 | ||
Maryland — 2.6% | ||
County of Baltimore Maryland, GO, Refunding, | ||
Metropolitan District, 4.00%, 8/01/11 | 2,525 | 2,627,237 |
State of Maryland, GO, Refunding, State and Local | ||
Facilities Loan, First Series B, 5.25%, 2/15/12 | 8,980 | 9,685,110 |
State of Maryland, GO, State & Local Facilities Loan, | ||
2nd Series: | ||
5.00%, 8/01/10 | 7,770 | 7,801,779 |
5.00%, 7/15/11 | 3,815 | 4,001,287 |
University System of Maryland, Refunding RB, Auxiliary | ||
Facility & Tuition, Series C, 4.00%, 10/01/11 | 4,695 | 4,904,162 |
29,019,575 | ||
Massachusetts — 2.9% | ||
Commonwealth of Massachusetts, GO, Consolidated | ||
Loan, Series A, 5.00%, 8/01/12 | 1,180 | 1,284,631 |
Commonwealth of Massachusetts, GO, Refunding, | ||
Consolidated Loan, Series D (NPFGC), | ||
6.00%, 11/01/13 | 5,000 | 5,783,000 |
Massachusetts Bay Transportation Authority, | ||
Refunding RB, General Transportation System, | ||
Series A (FGIC), 5.80%, 3/01/12 | 3,745 | 4,068,418 |
Massachusetts Health & Educational Facilities | ||
Authority, Refunding RB, Partners Health, Series C, | ||
5.75%, 7/01/11 (b) | 7,600 | 8,089,364 |
Massachusetts State Department of Transportation, | ||
Refunding RB, Senior Series B, 5.00%, 1/01/14 | 12,155 | 13,434,800 |
32,660,213 | ||
Michigan — 1.3% | ||
City of Detroit Michigan, RB, Second Lien, Series B | ||
(FGIC), 5.50%, 7/01/11 (b) | 5,000 | 5,311,050 |
Michigan Municipal Bond Authority, Refunding RB, SAN, | ||
Series B, 5.00%, 3/21/11 | 5,000 | 5,004,300 |
State of Michigan, Refunding RB, Series B (AGM), | ||
5.00%, 9/01/10 | 4,120 | 4,151,106 |
14,466,456 | ||
Minnesota — 2.1% | ||
State of Minnesota, GO: | ||
5.00%, 8/01/11 | 3,675 | 3,859,926 |
Highway & Various Purpose, 5.00%, 8/01/11 | 2,900 | 3,046,247 |
Series H, 5.00%, 11/01/12 | 15,000 | 16,537,200 |
23,443,373 | ||
Missouri — 1.1% | ||
Missouri State Health & Educational Facilities Authority, | ||
RB, Ascension Health Senior Credit, Series C-4, | ||
Mandatory Put Bonds, 1.25%, 11/15/26 (a) | 12,000 | 12,009,960 |
Nebraska — 0.4% | ||
Central Plains Energy Project, RB, Project No. 1, | ||
0.67%, 12/01/10 (a) | 1,225 | 1,214,281 |
Nebraska Public Power District, Refunding RB, General, | ||
Series B-1 (NPFGC), 5.00%, 1/01/14 | 3,000 | 3,345,030 |
4,559,311 |
See Notes to Financial Statements.
18 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (continued) BlackRock Short-Term Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Nevada — 2.3% | ||
Clark County School District, GO, Refunding, Series B: | ||
Limited Tax, 4.00%, 6/15/11 | $10,000 | $ 10,304,500 |
(NPFGC), 5.00%, 6/15/12 | 6,000 | 6,460,380 |
County of Clark Nevada, GO, Refunding, Public Safety, | ||
Series A (AGM), 5.00%, 6/01/11 | 6,345 | 6,601,402 |
Truckee Meadows Water Authority, RB, Series A (AGM), | ||
5.13%, 7/01/11 (b) | 2,590 | 2,716,366 |
26,082,648 | ||
New Hampshire — 0.1% | ||
State of New Hampshire, GO, Refunding, Capital | ||
Improvement, Series B, 4.00%, 3/01/12 | 1,000 | 1,059,210 |
New Jersey — 2.5% | ||
County of Essex New Jersey, GO, Improvement, Series A, | ||
5.00%, 8/01/13 | 2,290 | 2,542,747 |
Gloucester County Improvement Authority, Refunding RB, | ||
Waste Management Inc. Project, Series A, Mandatory | ||
Put Bonds, 2.63%, 12/01/29 (a) | 4,625 | 4,651,501 |
New Jersey Building Authority, Refunding RB, Series B | ||
(AMBAC), 5.25%, 12/15/10 | 4,790 | 4,891,644 |
New Jersey Transportation Trust Fund Authority, RB, | ||
Transportation System, Series A, 5.75%, 6/15/11 (c) | 3,000 | 3,156,930 |
New Jersey Transportation Trust Fund Authority, | ||
Refunding RB, Transportation System, Series B | ||
(NPFGC), 5.25%, 12/15/12 | 4,990 | 5,511,156 |
State of New Jersey, GO, Refunding, 4.00%, 8/01/12 | 7,115 | 7,591,349 |
28,345,327 | ||
New Mexico — 1.2% | ||
New Mexico Finance Authority, Refunding RB, | ||
Senior Lien, Series A: | ||
5.00%, 6/15/11 | 4,000 | 4,175,600 |
5.00%, 6/15/13 | 8,000 | 8,930,240 |
13,105,840 | ||
New York — 9.6% | ||
City of New York New York, GO, Refunding: | ||
Series A, 5.00%, 8/01/11 | 1,000 | 1,049,410 |
Series B, 5.25%, 8/01/11 | 4,000 | 4,208,440 |
Series B (NPFGC), 5.75%, 8/01/13 | 3,050 | 3,339,475 |
Series C, 5.00%, 8/01/13 | 8,225 | 9,157,962 |
Series H, 5.00%, 8/01/12 | 3,400 | 3,695,188 |
County of Westchester New York, GO, Series B, | ||
3.00%, 6/01/12 | 8,785 | 9,218,188 |
Metropolitan Transportation Authority, RB, Transportation, | ||
Series B, Mandatory Put Bonds, 5.00%, 11/15/16 (a) | 4,000 | 4,208,480 |
New York City Transitional Finance Authority, RB, | ||
Series C, 5.50%, 2/15/12 | 6,000 | 6,471,900 |
New York City Transitional Finance Authority, | ||
Refunding RB, Future Tax Secured, Sub-Series D-2, | ||
5.00%, 11/01/12 | 20,315 | 22,311,964 |
New York State Dormitory Authority, Refunding RB, | ||
State University Educational Facilities, 3rd General | ||
Resolution, Series B, Mandatory Put Bonds, | ||
5.25%, 11/15/23 (a) | 6,000 | 6,452,160 |
New York State Environmental Facilities Corp., RB, | ||
Waste Management Inc. Project, Series A, Mandatory | ||
Put Bonds, 2.50%, 7/01/17 (a) | 5,000 | 5,015,850 |
New York State Local Government Services Corp., | ||
Refunding RB, Senior Lien, Series A, 5.00%, 4/01/11 | 3,000 | 3,107,220 |
New York State Thruway Authority, RB, BAN: | ||
3.00%, 7/15/11 | 2,860 | 2,938,507 |
4.00%, 7/15/11 | 9,000 | 9,329,040 |
Par | ||
Municipal Bonds | (000) | Value |
New York (concluded) | ||
New York State Thruway Authority, Refunding RB, | ||
Series A, 5.00%, 4/01/12 | $ 5,000 | $ 5,371,550 |
New York State Urban Development Corp., Refunding RB, | ||
Service Contract, Series A-1, 5.00%, 1/01/13 | 7,320 | 7,986,706 |
State of New York, GO, Refunding, Series C, | ||
5.00%, 4/15/12 | 5,285 | 5,698,763 |
109,560,803 | ||
North Carolina — 2.9% | ||
County of Wake North Carolina, GO, Refunding: | ||
5.00%, 3/01/11 | 6,650 | 6,859,408 |
Series C, 5.00%, 3/01/12 | 5,185 | 5,578,438 |
Mecklenburg County North Carolina, GO, Refunding, | ||
Series C, 5.00%, 2/01/13 | 9,400 | 10,419,994 |
State of North Carolina, GO, Public Improvement, | ||
Series A, 5.00%, 3/01/13 | 9,000 | 10,004,130 |
32,861,970 | ||
Ohio — 2.1% | ||
Ohio Air Quality Development Authority, Refunding | ||
PCRB, FirstEnergy, Series D, Mandatory Put Bonds, | ||
4.75%, 8/01/29 (a) | 10,000 | 10,557,100 |
Ohio State University, Refunding RB, Series A, | ||
5.00%, 12/01/12 | 4,000 | 4,406,800 |
Ohio State Water Development Authority, RB, Water | ||
Quality, Loan Fund, 5.00%, 12/01/11 | 5,000 | 5,320,550 |
State of Ohio, GO, Common Schools, Series A, | ||
5.00%, 3/15/11 (c) | 3,875 | 4,004,309 |
24,288,759 | ||
Oregon — 0.2% | ||
Oregon State Department of Administrative Services, | ||
COP, Refunding, Series A (AGM), 5.00%, 5/01/11 | 1,725 | 1,790,481 |
Pennsylvania — 6.6% | ||
Bethlehem Area School District, GO, Refunding, Series A | ||
(NPFGC), 5.00%, 9/01/10 | 4,000 | 4,027,000 |
City of Philadelphia Pennsylvania, Refunding RB, Series A | ||
(AGM), 5.00%, 6/15/13 | 9,000 | 9,940,860 |
Commonwealth of Pennsylvania, GO: | ||
First Series, 5.00%, 3/15/13 | 7,455 | 8,277,286 |
First Series A, 5.00%, 2/15/13 | 8,280 | 9,168,941 |
Commonwealth of Pennsylvania, GO, Refunding: | ||
5.00%, 7/15/12 | 2,500 | 2,723,475 |
Second Series (NPFGC), 5.00%, 10/01/11 | 2,500 | 2,641,600 |
Second Series (NPFGC), 5.00%, 7/01/12 | 13,000 | 14,142,440 |
Pennsylvania Economic Development Financing | ||
Authority, RB: | ||
Convention Center Project, Series A, 5.00%, 6/15/12 | 4,000 | 4,298,800 |
Waste Management Inc. Project, 2.75%, 9/01/13 | 4,250 | 4,272,780 |
Waste Management Inc. Project, Mandatory | ||
Put Bonds, 2.63%, 12/01/33 (a) | 3,500 | 3,509,940 |
Pennsylvania Higher Educational Facilities Authority, RB, | ||
Series AH, 4.00%, 6/15/11 | 3,650 | 3,771,946 |
Pennsylvania Intergovernmental Cooperation Authority, | ||
Special Tax Bonds, Refunding, Philadelphia Funding | ||
Program, 5.00%, 6/15/13 | 3,085 | 3,435,302 |
University of Pittsburgh Pennsylvania, Refunding RB, | ||
Panthers-Pitt Asset Notes, 5.00%, 8/01/10 | 5,000 | 5,020,150 |
75,230,520 | ||
Rhode Island — 0.1% | ||
State of Rhode Island, GO, Refunding, Consolidated | ||
Capital Development Loan, Series A, 5.00%, 7/15/11 | 1,000 | 1,046,430 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 19
Schedule of Investments (continued) BlackRock Short-Term Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
South Carolina — 0.8% | ||
South Carolina State Public Service Authority, | ||
Refunding RB, Series A, 5.00%, 1/01/12 | $ 3,000 | $ 3,196,710 |
State of South Carolina, GO, State Highway, Series B, | ||
4.50%, 4/01/12 | 6,000 | 6,241,020 |
9,437,730 | ||
Tennessee — 1.4% | ||
County of Shelby Tennessee, GO, Refunding, Series A | ||
(AMBAC), 5.00%, 4/01/12 | 4,000 | 4,312,960 |
Metropolitan Government of Nashville & Davidson | ||
County Tennessee, GO, 5.00%, 4/01/12 (b) | 2,000 | 2,158,320 |
Metropolitan Government of Nashville & Davidson | ||
County Tennessee, Refunding RB (NPFGC), | ||
5.00%, 1/01/14 | 8,110 | 9,146,134 |
15,617,414 | ||
Texas — 10.8% | ||
City of Dallas Texas, GO, 5.00%, 2/15/12 | 4,775 | 5,118,275 |
City of San Antonio Texas, RB, Junior Lien, System, | ||
Mandatory Put Bonds (a): | ||
3.63%, 12/01/10 (b) | 145 | 147,031 |
3.63%, 12/01/27 | 4,855 | 4,868,497 |
County of Williamson Texas, GO (AGM), | ||
5.13%, 2/15/11 (b) | 9,835 | 10,134,181 |
Dallas ISD, GO, Refunding: | ||
4.00%, 2/15/11 | 6,000 | 6,133,740 |
4.50%, 2/15/12 | 6,000 | 6,370,020 |
Harris County Cultural Education Facilities Finance Corp., | ||
Refunding RB, Methodist Hospital System: | ||
5.00%, 6/01/12 | 3,450 | 3,697,055 |
5.00%, 6/01/13 | 10,000 | 10,956,900 |
Harris County Health Facilities Development Corp., | ||
Refunding RB, St. Luke’s Episcopal Hospital, Series A, | ||
5.38%, 8/15/11 (b) | 5,500 | 5,813,610 |
Lower Colorado River Authority, Refunding RB, | ||
5.00%, 5/15/13 | 6,000 | 6,630,840 |
Matagorda County Navigation District No. 1, | ||
Refunding RB, AEP Texas Central Co. Project, | ||
Mandatory Put Bonds, 5.13%, 6/01/30 (a) | 5,000 | 5,147,450 |
North Texas Tollway Authority, RB, System, Mandatory | ||
Put Bonds (a): | ||
First Tier Put, Series L-1, 5.50%, 1/01/38 | 11,000 | 11,240,900 |
First Tier, Series L-2, 6.00%, 1/01/38 | 3,700 | 4,053,831 |
Plano ISD, GO, Refunding, School Building (PSF-GTD), | ||
5.00%, 2/15/11 | 5,000 | 5,147,250 |
State of Texas, GO, Refunding, Public Finance Authority: | ||
5.00%, 10/01/12 | 11,170 | 12,254,830 |
Series A, 4.00%, 10/01/11 | 3,750 | 3,916,087 |
Series A, 5.00%, 10/01/12 | 3,500 | 3,841,565 |
Tarrant County Cultural Education Facilities Finance | ||
Corp., Refunding RB, Texas Health Resources, | ||
Series A, 5.00%, 2/15/11 | 4,275 | 4,382,858 |
Texas A&M University, RB, Financing System, Series D, | ||
5.00%, 5/15/13 | 3,325 | 3,702,587 |
Texas A&M University, Refunding RB, Financing System, | ||
Series B, 5.00%, 5/15/12 | 4,000 | 4,328,480 |
University of Texas, Refunding RB, Financing System, | ||
Series B, 5.00%, 8/15/10 | 5,000 | 5,029,500 |
122,915,487 | ||
Utah — 0.8% | ||
City of Riverton Utah, RB, IHC Health Services Inc., | ||
5.00%, 8/15/13 | 1,400 | 1,544,284 |
State of Utah, GO, Series C, 3.00%, 7/01/12 | 7,500 | 7,879,350 |
9,423,634 |
Par | ||
Municipal Bonds | (000) | Value |
Virginia — 8.1% | ||
Commonwealth of Virginia, GO, 4.00%, 6/01/11 | $ 4,725 | $ 4,885,697 |
County of Fairfax Virginia, GO, Refunding, Public | ||
Improvement, Series A, 5.25%, 4/01/12 | 3,940 | 4,271,590 |
County of Fairfax Virginia, GO, Series D: | ||
4.00%, 10/01/11 | 8,380 | 8,759,782 |
5.00%, 10/01/13 | 10,000 | 11,325,000 |
Louisa IDA, RB, Virginia Electric & Power Co. Project, | ||
Series A, Mandatory Put Bonds, AMT (a): | ||
1.38%, 9/01/30 | 7,000 | 7,000,490 |
2.50%, 3/01/31 | 20,000 | 20,012,000 |
Virginia College Building Authority, RB, 21st Century | ||
College & Equipment, Series F-1, 4.00%, 2/01/12 | 7,200 | 7,600,680 |
Virginia Public Building Authority, RB: | ||
Series A-1, 5.00%, 8/01/11 | 9,560 | 10,041,059 |
Series B, 5.00%, 8/01/12 | 7,185 | 7,845,661 |
Virginia Public School Authority, RB, School Educational | ||
Technology Notes, Series IX, 5.00%, 4/15/12 | 4,065 | 4,390,403 |
Virginia Public School Authority, Refunding RB, Series A, | ||
5.00%, 8/01/12 | 1,000 | 1,091,950 |
Virginia Resources Authority, Refunding RB, Series A, | ||
4.00%, 10/01/12 | 4,145 | 4,464,207 |
91,688,519 | ||
Washington — 4.6% | ||
City of Seattle Washington, GO, Refunding, Limited Tax, | ||
Series B, 5.00%, 8/01/13 | 5,000 | 5,616,500 |
City of Seattle Washington, Refunding RB, Improvement, | ||
Series B, 5.00%, 2/01/14 | 10,000 | 11,271,600 |
City of Tacoma Washington, Refunding RB, Series A | ||
(AGM), 5.63%, 1/01/11 (b) | 2,900 | 3,007,242 |
Energy Northwest, Refunding RB, Project No. 3, Series A | ||
(Syncora), 5.50%, 7/01/11 | 15,000 | 15,764,850 |
State of Washington, GO, Refunding, Various Purpose, | ||
Series R-A (AMBAC), 5.00%, 1/01/11 | 9,260 | 9,478,444 |
State of Washington, GO, Series D, 4.00%, 1/01/11 | 6,560 | 6,681,819 |
51,820,455 | ||
Total Long-Term Investments | ||
(Cost — $1,054,450,458) — 93.8% | 1,065,217,036 | |
Short-Term Securities | ||
Connecticut — 1.4% | ||
State of Connecticut, GO, BAN, Series B, | ||
4.00%, 6/01/11 | 15,185 | 15,690,813 |
Illinois — 1.7% | ||
Regional Transit Authority, Refunding RB, VRDN, ERS, | ||
Series B, 0.65%, 2/26/11 (d) | 20,000 | 20,000,000 |
Kentucky — 2.0% | ||
Jefferson County Kentucky, TECP, 0.70%, 7/07/10 | 22,500 | 22,500,000 |
Shares | ||
Money Market Fund — 2.2% | ||
FFI Institutional Tax-Exempt Fund, | ||
0.21% (e)(f) | 24,582,016 | 24,582,016 |
Total Short-Term Securities | ||
(Cost — $82,650,921) — 7.3% | 82,772,829 | |
Total Investments (Cost — $1,137,101,379*) — 101.1% | 1,147,989,865 | |
Liabilities in Excess of Other Assets — (1.1)% | (12,516,153) | |
Net Assets — 100.0% | $1,135,473,712 |
See Notes to Financial Statements.
20 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (concluded) BlackRock Short-Term Municipal Fund
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2010, as computed for federal income tax purposes, were as follows:
Aggregate cost | $1,137,101,379 |
Gross unrealized appreciation | $ 11,272,199 |
Gross unrealized depreciation | (383,713) |
Net unrealized appreciation | $ 10,888,486 |
(a) Variable rate security. Rate shown is as of report date.
(b) US government securities, held in escrow, are used to pay interest on this security as
well as to retire the bond in full at the date indicated, typically at a premium to par.
(c) Security is collateralized by Municipal or US Treasury obligations.
(d) Variable rate security. Rate shown is as of report date and maturity shown is the
date the principal owed can be recovered through demand.
(e) Investments in companies considered to be an affiliate of the Fund during the
year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:
Shares Held | Shares Held | |||
at June 30, | Net | at June 30, | ||
Affiliate | 2009 | Activity | 2010 | Income |
FFI Institutional | ||||
Tax-Exempt Fund | 39,113,596 | (14,531,580) | 24,582,016 | $105,319 |
(f) Represents the current yield as of report date.
•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 assets
and liabilities
•Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
•Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies 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 June 30, 2010 in determining
the fair valuation of the Fund’s investments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Assets: | ||||
Investments in | ||||
Securities:1 | ||||
Long-Term | ||||
Investments . | — | $1,065,217,036 | — | $1,065,217,036 |
Short-Term | ||||
Securities | $ 24,582,016 | 58,190,813 | — | 82,772,829 |
Total | $ 24,582,016 | $1,123,407,849 | — | $1,147,989,865 |
1 See above Schedule of Investments for values in each state or
political subdivision.
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 21
Schedule of Investments June 30, 2010 BlackRock Municipal Insured Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Alabama — 0.8% | ||
Birmingham Special Care Facilities Financing Authority, | ||
RB, Children’s Hospital (AGC), 6.00%, 6/01/39 | $ 1,350 | $ 1,465,951 |
Lauderdale County & Florence Health Care Authority | ||
Alabama, Refunding RB, Coffee Health Group, Series A | ||
(NPFGC), 6.00%, 7/01/29 | 4,695 | 4,565,512 |
6,031,463 | ||
Alaska — 1.0% | ||
Borough of Matanuska-Susitna Alaska, RB, Goose Creek | ||
Correctional Center (AGC): | ||
6.00%, 9/01/28 | 2,000 | 2,297,760 |
6.00%, 9/01/32 | 5,000 | 5,638,150 |
7,935,910 | ||
Arizona — 0.4% | ||
State of Arizona, COP, Department of Administration, | ||
Series A (AGM): | ||
5.00%, 10/01/27 | 2,375 | 2,415,304 |
5.25%, 10/01/28 | 1,025 | 1,055,965 |
3,471,269 | ||
California — 14.7% | ||
Antelope Valley Community College District, GO, Election | ||
of 2004, Series B (NPFGC), 5.25%, 8/01/39 | 1,050 | 1,076,156 |
Arcadia Unified School District California, GO, CAB, | ||
Election of 2006, Series A (AGM), 4.96%, 8/01/39 (a) | 2,800 | 406,168 |
Cabrillo Community College District California, GO, | ||
CAB, Election of 2004, Series B (NPFGC), | ||
5.18%, 8/01/37 (a) | 4,100 | 699,583 |
California Health Facilities Financing Authority, | ||
Refunding RB, St. Joseph Health System, Series A, | ||
5.75%, 7/01/39 | 1,000 | 1,039,140 |
City of San Jose California, GO, Libraries, Parks, and | ||
Public Safety Project (NPFGC), 5.00%, 9/01/30 | 3,700 | 3,813,368 |
City of San Jose California, Refunding RB, Series A, AMT | ||
(AMBAC), 5.50%, 3/01/32 | 6,285 | 6,350,804 |
Coast Community College District California, GO, | ||
Refunding, CAB, Election of 2002, Series C (AGM): | ||
5.58%, 8/01/13 (b) | 6,475 | 5,335,076 |
5.40%, 8/01/36 (a) | 5,800 | 1,082,338 |
Fresno Unified School District California, GO, Election | ||
of 2001: | ||
Series D (NPFGC), 5.00%, 8/01/27 | 5,170 | 5,250,911 |
Series E (AGM), 5.00%, 8/01/30 | 1,500 | 1,531,470 |
Hesperia Public Financing Authority California, | ||
Tax Allocation Bonds, Redevelopment & Housing | ||
Projects, Series A (Syncora), 5.50%, 9/01/27 | 10,000 | 9,118,100 |
Los Angeles Municipal Improvement Corp., RB, Series B1 | ||
(NPFGC), 4.75%, 8/01/37 | 11,050 | 10,454,073 |
Modesto Schools Infrastructure Financing Agency, | ||
Special Tax Bonds (AMBAC), 5.50%, 9/01/36 | 8,965 | 8,221,712 |
Mount Diablo Unified School District California, GO, | ||
Election of 2002 (NPFGC), 5.00%, 7/01/27 | 12,040 | 12,116,574 |
Norwalk-La Mirada Unified School District California, GO, | ||
Refunding, CAB, Election of 2002, Series E (AGC), | ||
6.47%, 8/01/38 (a) | 4,900 | 808,353 |
Orange County Sanitation District, COP, Series B (AGM), | ||
5.00%, 2/01/31 | 1,380 | 1,442,900 |
Palm Springs Financing Authority, Refunding RB, | ||
Convention Center Project, Series A (NPFGC), | ||
5.50%, 11/01/35 | 6,190 | 6,255,428 |
Ramona Unified School District California, COP, | ||
Refunding, CAB (NPFGC), 5.12%, 5/01/32 (b) | 10,500 | 8,602,020 |
Par | ||
Municipal Bonds | (000) | Value |
California (concluded) | ||
Rialto Unified School District California, GO, CAB, | ||
Series A (NPFGC), 6.24%, 6/01/25 (a) | $11,685 | $ 4,712,561 |
Roseville Joint Union High School District California, GO, | ||
Election of 2004, Series A (NPFGC), 5.00%, 8/01/29 | 5,000 | 5,101,500 |
Sacramento Unified School District California, GO, | ||
Election of 1999, Series B (NPFGC), 5.00%, 7/01/26 | 5,015 | 5,083,605 |
San Diego Community College District California, GO, | ||
Election of 2002 (AGM), 5.00%, 5/01/30 | 2,685 | 2,744,956 |
San Jose Unified School District Santa Clara County | ||
California, GO, Election of 2002, Series B (NPFGC), | ||
5.00%, 8/01/29 | 3,650 | 3,765,486 |
Tahoe-Truckee Unified School District, GO, School Facility | ||
Improvement District 2, Election of 2002, Series A | ||
(NPFGC), 5.25%, 8/01/29 | 2,535 | 2,644,081 |
Tustin Unified School District California, Special Tax | ||
Bonds, Senior Lien, Community Facilities District 97-1, | ||
Series A (AGM), 5.00%, 9/01/32 | 7,980 | 7,947,681 |
University of California, RB, Series O, 5.75%, 5/15/34 | 1,450 | 1,626,422 |
117,230,466 | ||
Colorado — 2.5% | ||
City of Aurora Colorado, COP (AMBAC), | ||
6.00%, 12/01/10 (c) | 19,250 | 19,711,230 |
Florida — 7.3% | ||
Collier County School Board, COP (AGM), | ||
5.00%, 2/15/23 | 2,000 | 2,062,940 |
County of Broward Florida, RB, Series A, | ||
5.25%, 10/01/34 | 1,450 | 1,508,957 |
County of Duval Florida, COP, Master Lease Program | ||
(AGM), 5.00%, 7/01/33 | 7,050 | 7,066,497 |
County of Miami-Dade Florida, GO, Building Better | ||
Communities Program, Series B-1, 5.75%, 7/01/33 | 2,400 | 2,586,384 |
County of Miami-Dade Florida, RB: | ||
Jackson Health System (AGC), 5.75%, 6/01/39 | 4,885 | 5,144,394 |
Miami International Airport, Series A, AMT (AGC), | ||
5.50%, 10/01/26 | 7,000 | 7,176,610 |
Miami International Airport, Series A, AMT (AGC), | ||
5.50%, 10/01/27 | 5,495 | 5,600,284 |
Water & Sewer System (AGM), 5.00%, 10/01/39 | 7,150 | 7,381,231 |
County of Miami-Dade Florida, Refunding RB, Miami | ||
International Airport, AMT (AGC), 5.00%, 10/01/40 | 7,380 | 7,101,257 |
Hillsborough County Aviation Authority Florida, RB, | ||
Series A, AMT (AGC), 5.38%, 10/01/33 | 5,000 | 5,037,650 |
Miami-Dade County School Board, COP, Refunding, | ||
Series B (AGC), 5.25%, 5/01/31 | 2,500 | 2,582,475 |
Sarasota County Public Hospital District, RB, Sarasota | ||
Memorial Hospital Project, Series A, 5.63%, 7/01/39 | 500 | 516,940 |
South Florida Water Management District, COP (AGC), | ||
5.00%, 10/01/22 | 3,500 | 3,673,565 |
Tampa Bay Water Utility System Florida, RB (AMBAC), | ||
10.40%, 10/01/10 (c) | 465 | 476,007 |
57,915,191 | ||
Georgia — 4.4% | ||
Gwinnett County Hospital Authority, Refunding RB, | ||
Gwinnett Hospital System, Series D (AGM), | ||
5.50%, 7/01/41 | 475 | 483,089 |
Municipal Electric Authority of Georgia, RB, Series Y | ||
(AMBAC): | ||
6.40%, 1/01/11 (c) | 90 | 92,779 |
6.40%, 1/01/13 | 8,420 | 9,007,548 |
6.40%, 1/01/13 (d) | 490 | 527,534 |
Municipal Electric Authority of Georgia, Refunding RB, | ||
Series EE (AMBAC), 7.00%, 1/01/25 | 20,000 | 25,283,800 |
35,394,750 |
See Notes to Financial Statements.
22 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (continued) BlackRock Municipal Insured Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Illinois — 5.9% | ||
City of Chicago Illinois, ARB, General, 3rd Lien, | ||
Series B-2, AMT (NPFGC), 6.00%, 1/01/27 | $17,690 | $ 18,343,822 |
City of Chicago Illinois, GO, Refunding, Series A (AGM), | ||
5.00%, 1/01/25 | 5,000 | 5,254,850 |
City of Chicago Illinois, RB, Series A (BHAC), | ||
5.50%, 1/01/38 | 3,000 | 3,191,190 |
County of Cook Illinois, GO, Refunding, Series A, | ||
5.25%, 11/15/33 | 2,300 | 2,408,583 |
Illinois Finance Authority, Refunding RB, Central DuPage | ||
Health, Series B, 5.50%, 11/01/39 | 4,200 | 4,354,812 |
Illinois State Toll Highway Authority, RB, Series B, | ||
5.50%, 1/01/33 | 3,125 | 3,394,594 |
Illinois State Toll Highway Authority, Refunding RB, | ||
Senior Series A-1, 5.00%, 1/01/31 (e) | 5,000 | 5,090,850 |
State of Illinois, RB, Build Illinois, Series B, | ||
5.25%, 6/15/34 | 4,500 | 4,682,520 |
46,721,221 | ||
Indiana — 0.1% | ||
Indiana Municipal Power Agency, RB, Indiana Municipal | ||
Power Agency, Series B, 5.75%, 1/01/34 | 700 | 743,022 |
Iowa — 0.7% | ||
Iowa Finance Authority, RB, Series A (AGC), | ||
5.63%, 8/15/37 | 5,600 | 5,882,912 |
Louisiana — 0.9% | ||
State of Louisiana, RB, Series A (AGM), 5.00%, 5/01/31 | 6,585 | 6,827,196 |
Maryland — 1.6% | ||
Maryland Community Development Administration, | ||
Refunding RB, Residential, Series A, AMT, | ||
5.75%, 9/01/39 | 7,460 | 7,858,961 |
Maryland Health & Higher Educational Facilities | ||
Authority, RB, University of Maryland Medical System, | ||
Series B (NPFGC), 7.00%, 7/01/22 | 4,400 | 5,161,200 |
13,020,161 | ||
Massachusetts — 3.6% | ||
Massachusetts HFA, RB, AMT (AGM): | ||
Rental Mortgage, Series C, 5.60%, 1/01/45 | 4,000 | 4,031,560 |
S/F Housing, Series 128, 4.80%, 12/01/27 (f) | 2,845 | 2,795,469 |
S/F Housing, Series 128, 4.88%, 12/01/38 (f) | 6,715 | 6,402,148 |
Massachusetts HFA, Refunding RB, Rental Housing, | ||
Series A, AMT (AGM), 5.15%, 7/01/26 | 4,785 | 4,856,679 |
Massachusetts School Building Authority, RB, Series A | ||
(AGM), 5.00%, 8/15/30 | 7,000 | 7,304,640 |
Massachusetts Water Resources Authority, Refunding RB, | ||
General, Series A (NPFGC), 5.00%, 8/01/34 | 2,800 | 2,927,232 |
28,317,728 | ||
Michigan — 2.7% | ||
City of Detroit Michigan, RB: | ||
Second Lien, Series B (AGM), 6.25%, 7/01/36 | 675 | 737,100 |
Second Lien, Series B (AGM), 7.00%, 7/01/36 | 350 | 402,990 |
Senior Lien, Series A (NPFGC), 5.00%, 7/01/30 | 1,500 | 1,468,440 |
System, Second Lien, Series B (NPFGC), | ||
5.00%, 7/01/36 | 3,500 | 3,415,440 |
City of Detroit Michigan, Refunding RB, Second Lien, | ||
Series E (BHAC), 5.75%, 7/01/31 | 4,000 | 4,252,800 |
Michigan Strategic Fund, Refunding RB, Detroit | ||
Edison Co. Project, Series A, AMT (Syncora), | ||
5.50%, 6/01/30 | 11,845 | 11,441,441 |
21,718,211 |
Par | ||
Municipal Bonds | (000) | Value |
Minnesota — 1.8% | ||
Delano ISD No. 879 Minnesota, GO, Series A (AGM), | ||
5.88%, 2/01/25 | $ 5,860 | $ 6,034,159 |
Sauk Rapids ISD No. 47 Minnesota, GO, Series A | ||
(NPFGC): | ||
5.65%, 2/01/20 | 3,735 | 3,841,112 |
5.70%, 2/01/21 | 4,440 | 4,567,428 |
14,442,699 | ||
Mississippi — 1.5% | ||
Harrison County Wastewater Management District, | ||
Refunding RB, Wastewater Treatment Facilities, | ||
Series A (FGIC), 8.50%, 2/01/13 (d) | 1,320 | 1,509,090 |
Mississippi Hospital Equipment & Facilities Authority, | ||
RB, Forrest County General Hospital Project (AGM), | ||
6.00%, 1/01/11 (c) | 10,000 | 10,381,800 |
11,890,890 | ||
Montana — 0.1% | ||
Montana Facility Finance Authority, Refunding RB, | ||
Sisters of Leavenworth, Series A, 4.75%, 1/01/40 | 1,200 | 1,181,268 |
Nevada — 1.6% | ||
City of Las Vegas Nevada, GO, Limited Tax, Performing | ||
Arts Center, 6.00%, 4/01/34 | 1,450 | 1,598,089 |
Clark County Water Reclamation District, GO, Series B, | ||
5.75%, 7/01/34 | 3,125 | 3,462,781 |
County of Clark Nevada, RB: | ||
Las Vegas-McCarran International Airport, Series A | ||
(AGC), 5.25%, 7/01/39 | 3,300 | 3,344,352 |
Southwest Gas Corp. Project, Series A, AMT (FGIC), | ||
4.75%, 9/01/36 | 25 | 21,014 |
Southwest Gas Corp. Project, Series D, AMT (NPFGC), | ||
5.25%, 3/01/38 | 2,200 | 2,019,380 |
System, Subordinate Lien, Series C (AGM), | ||
5.00%, 7/01/26 | 2,350 | 2,429,148 |
12,874,764 | ||
New Jersey — 7.8% | ||
Cape May County Industrial Pollution Control Financing | ||
Authority, Refunding RB, Atlantic City Electric Co., | ||
Series A (NPFGC), 6.80%, 3/01/21 | 6,810 | 8,346,540 |
Garden State Preservation Trust, RB, Election of 2005, | ||
Series A (AGM): | ||
5.80%, 11/01/21 | 3,125 | 3,636,563 |
5.80%, 11/01/22 | 8,310 | 9,684,142 |
5.80%, 11/01/23 | 4,340 | 5,038,436 |
New Jersey EDA, RB, Motor Vehicle Surcharge, Series A | ||
(NPFGC), 5.25%, 7/01/33 | 26,800 | 27,263,640 |
New Jersey EDA, Refunding RB, School Facilities | ||
Construction, Series N-1 (NPFGC), 5.50%, 9/01/28 | 1,400 | 1,550,276 |
New Jersey State Housing & Mortgage Finance Agency, | ||
RB, Series AA, 6.38%, 10/01/28 | 1,950 | 2,157,773 |
New Jersey Transportation Trust Fund Authority, RB, | ||
Transportation System, Series A, 5.88%, 12/15/38 | 4,255 | 4,684,712 |
62,362,082 | ||
New York — 7.0% | ||
City of New York New York, GO, Series C (Syncora), | ||
5.63%, 3/15/18 | 5 | 5,340 |
City of Niagara Falls New York, GO, Public Improvement | ||
(NPFGC), 6.90%, 3/01/24 | 5 | 5,006 |
New York City Municipal Water Finance Authority, RB, | ||
Fiscal 2009, Series A, 5.75%, 6/15/40 | 700 | 788,879 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 23
Schedule of Investments (continued) BlackRock Municipal Insured Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
New York (concluded) | ||
New York State Thruway Authority, RB, Series G (AGM), | ||
5.00%, 1/01/32 | $16,830 | $ 17,279,024 |
New York State Urban Development Corp., RB, State | ||
Personal Income Tax, State Facilities, Series A-1 | ||
(NPFGC), 5.25%, 3/15/34 | 9,900 | 10,294,218 |
Sales Tax Asset Receivable Corp., RB, Series A: | ||
(AMBAC), 5.00%, 10/15/32 | 15,650 | 16,359,571 |
(NPFGC), 5.00%, 10/15/20 | 10,000 | 10,898,000 |
55,630,038 | ||
North Carolina — 0.3% | ||
North Carolina HFA, RB, Home Ownership, Series 14A, | ||
AMT (AMBAC), 5.35%, 1/01/22 | 2,475 | 2,492,028 |
North Dakota — 0.3% | ||
North Dakota State HFA, RB, Housing Finance Program, | ||
Series C, AMT (AMBAC), 5.30%, 7/01/22 | 1,910 | 1,951,562 |
Ohio — 0.2% | ||
Ohio Higher Educational Facility Commission, | ||
Refunding RB, Summa Health System, 2010 Project | ||
(AGC), 5.25%, 11/15/40 | 1,775 | 1,779,366 |
Oregon — 0.5% | ||
Port of Portland Oregon, Refunding RB, International | ||
Airport, Series 7-B, AMT (NPFGC), 7.10%, 1/01/12 (c) | 3,865 | 4,235,112 |
Pennsylvania — 2.0% | ||
City of Philadelphia Pennsylvania, RB, 12th Series B | ||
(NPFGC), 7.00%, 5/15/20 (d) | 4,670 | 5,783,468 |
Pennsylvania Turnpike Commission, RB, CAB, | ||
Sub-Series E, 6.48%, 12/01/38 (b) | 5,300 | 3,735,652 |
Philadelphia Redevelopment Authority, RB, Neighborhood | ||
Transformation, Series A (NPFGC), 5.50%, 4/15/20 | 3,830 | 3,967,306 |
Philadelphia School District, GO, Series E, | ||
6.00%, 9/01/38 | 2,300 | 2,473,282 |
15,959,708 | ||
Puerto Rico — 1.2% | ||
Puerto Rico Sales Tax Financing Corp., RB, First | ||
Sub-Series A, 6.38%, 8/01/39 | 7,100 | 7,810,994 |
Puerto Rico Sales Tax Financing Corp., Refunding RB, | ||
CAB, Series A (NPFGC), 5.71%, 8/01/41 (a) | 11,000 | 1,564,640 |
9,375,634 | ||
Rhode Island — 0.9% | ||
Rhode Island EDC, RB, Series B (FGIC), | ||
6.00%, 7/01/10 (c) | 6,815 | 6,884,172 |
South Carolina — 0.3% | ||
South Carolina State Public Service Authority, RB, | ||
Santee Cooper, Series A, 5.50%, 1/01/38 | 2,300 | 2,498,237 |
Texas — 10.4% | ||
City of Houston Texas, COP, Series J (AMBAC), | ||
6.25%, 12/15/13 | 3,500 | 3,911,145 |
City of Houston Texas, Refunding RB, Combined, | ||
First Lien, Series A (AGC), 6.00%, 11/15/35 | 3,650 | 4,170,161 |
Dallas-Fort Worth International Airport Facilities | ||
Improvement Corp., RB, AMT: | ||
Improvement, Joint, Series B (AGM), | ||
5.25%, 11/01/22 | 2,490 | 2,560,193 |
Series A (NPFGC), 6.00%, 11/01/28 | 25,950 | 25,982,956 |
Series A (NPFGC), 5.50%, 11/01/33 | 2,000 | 2,011,920 |
Par | ||
Municipal Bonds | (000) | Value |
Texas (concluded) | ||
Lewisville ISD Texas, GO, Refunding, CAB, School | ||
Building (NPFGC), 4.67%, 8/15/24 (a) | $ 8,110 | $ 4,032,697 |
Mansfield ISD Texas, GO, School Building (PSF-GTD), | ||
5.00%, 2/15/33 | 3,000 | 3,155,130 |
North Texas Tollway Authority, Refunding RB: | ||
CAB, System, First Tier Series I (AGC), | ||
6.30%, 1/01/15 (b) | 10,000 | 7,915,600 |
First Tier, Series A, 6.00%, 1/01/28 | 1,000 | 1,085,880 |
System, First Tier (NPFGC), 5.75%, 1/01/40 | 7,700 | 7,994,217 |
System, First Tier, Series A (AMBAC), | ||
5.63%, 1/01/33 | 2,040 | 2,124,130 |
System, First Tier, Series B (NPFGC), | ||
5.75%, 1/01/40 | 9,870 | 10,247,133 |
State of Texas, GO, Water Financial Assistance, | ||
5.75%, 8/01/31 | 3,000 | 3,119,220 |
Texas Department of Housing & Community Affairs, | ||
MRB, Series A, AMT (NPFGC): | ||
5.45%, 9/01/23 | 1,795 | 1,817,689 |
5.50%, 3/01/26 | 2,285 | 2,309,107 |
82,437,178 | ||
Utah — 1.7% | ||
Utah Transit Authority, RB, Series A (AGM), | ||
5.00%, 6/15/36 | 4,000 | 4,195,200 |
Utah Transit Authority, Refunding RB, CAB, Sub-Series A | ||
(NPFGC), 5.29%, 6/15/36 (a) | 11,930 | 2,690,812 |
Utah Water Finance Agency, RB, Pooled Loan Financing | ||
Program, Series A (AMBAC): | ||
5.75%, 10/01/15 | 2,515 | 2,546,387 |
6.00%, 10/01/20 | 3,770 | 3,808,416 |
13,240,815 | ||
Vermont — 0.1% | ||
Vermont HFA, Refunding RB, Multiple Purpose, Series C, | ||
AMT (AGM), 5.50%, 11/01/38 (f) | 1,155 | 1,179,290 |
Virginia — 0.1% | ||
Fairfax County IDA Virginia, Refunding RB, Health Care, | ||
Inova Health System, Series A, 5.50%, 5/15/35 | 600 | 634,026 |
Washington — 1.2% | ||
Chelan County Public Utility District No. 1, RB, | ||
Chelan Hydro System, Series A, AMT (AMBAC), | ||
5.45%, 7/01/37 | 6,485 | 6,412,692 |
Washington Health Care Facilities Authority, RB, | ||
Providence Health & Services, Series A (e): | ||
5.00%, 10/01/39 | 1,950 | 1,926,210 |
5.25%, 10/01/39 | 1,075 | 1,088,835 |
9,427,737 | ||
Wisconsin — 2.5% | ||
City of Superior Wisconsin, Refunding RB, Midwest | ||
Energy Resources, Series E (NPFGC), 6.90%, 8/01/21 | 9,000 | 11,538,540 |
Wisconsin Health & Educational Facilities Authority, | ||
RB, Ascension Health Senior Credit Group, | ||
5.00%, 11/15/33 | 2,400 | 2,441,208 |
Wisconsin Housing & EDA, Refunding RB, AMT: | ||
Series C, 4.88%, 3/01/36 | 2,310 | 2,229,497 |
Series E, 5.50%, 9/01/38 | 3,220 | 3,441,407 |
19,650,652 | ||
Total Municipal Bonds — 88.1% | 701,047,988 |
See Notes to Financial Statements.
24 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (continued) BlackRock Municipal Insured Fund
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to | Par | |
Tender Option Bond Trusts (g) | (000) | Value |
California — 1.9% | ||
San Diego County Water Authority, COP, Refunding, | ||
Series 2008-A (AGM), 5.00%, 5/01/33 | $ 4,500 | $ 4,649,940 |
Sequoia Union High School District California, GO, | ||
Refunding, Election of 2004, Series B (AGM), | ||
5.50%, 7/01/35 | 10,055 | 10,530,063 |
15,180,003 | ||
Colorado — 0.2% | ||
Colorado Health Facilities Authority, Refunding RB, | ||
Catholic Healthcare, Series A, 5.50%, 7/01/34 | 1,580 | 1,671,505 |
District of Columbia — 1.2% | ||
Metropolitan Washington Airports Authority, RB, Series B, | ||
AMT (AGM), 5.00%, 10/01/36 | 10,000 | 9,912,507 |
Florida — 3.4% | ||
Broward County School Board Florida, COP, Series A | ||
(AGM), 5.25%, 7/01/33 | 10,000 | 10,289,400 |
City of Tallahassee Florida, RB (NPFGC), | ||
5.00%, 10/01/37 | 10,000 | 10,151,100 |
Jacksonville Electric Authority Florida, RB, Sub-Series A, | ||
5.63%, 10/01/32 | 6,300 | 6,810,426 |
27,250,926 | ||
Illinois — 0.7% | ||
City of Chicago Illinois, Refunding RB, Second Lien | ||
(AGM), 5.25%, 11/01/33 | 5,000 | 5,293,600 |
Massachusetts — 2.0% | ||
Massachusetts School Building Authority, RB, Series A | ||
(AGM), 5.00%, 8/15/30 | 15,000 | 15,652,800 |
New Jersey — 1.8% | ||
New Jersey State Turnpike Authority, RB, Series C (AGM), | ||
5.00%, 1/01/30 | 13,500 | 14,045,535 |
New York — 2.2% | ||
New York State Dormitory Authority, ERB, Series B, | ||
5.75%, 3/15/36 | 2,010 | 2,274,275 |
Sales Tax Asset Receivable Corp., RB, Series A (AMBAC), | ||
5.25%, 10/15/27 | 13,931 | 15,136,491 |
17,410,766 | ||
Ohio — 0.2% | ||
State of Ohio, RB, Cleveland Clinic Health, Series B, | ||
5.50%, 1/01/34 | 1,000 | 1,059,140 |
Texas — 2.4% | ||
Cypress-Fairbanks ISD, GO, Refunding, Schoolhouse | ||
(PSF-GTD), 5.00%, 2/15/32 | 10,000 | 10,546,700 |
Harris County Cultural Education Facilities Finance | ||
Corp., RB, Hospital, Texas Children’s Hospital Project, | ||
5.50%, 10/01/39 | 8,500 | 8,823,850 |
19,370,550 | ||
Washington — 1.3% | ||
State of Washington, GO, Series D (AGM), | ||
5.00%, 1/01/28 | 10,000 | 10,500,800 |
Municipal Bonds Transferred to | Par | ||
Tender Option Bond Trusts (g) | (000) | Value | |
Wisconsin — 0.3% | |||
Wisconsin Health & Educational Facilities Authority, | |||
Refunding RB, Froedtert & Community Health Inc., | |||
5.25%, 4/01/39 | $ 2,499 | $ 2,555,550 | |
Total Municipal Bonds Transferred to | |||
Tender Option Bond Trusts — 17.6% | 139,903,682 | ||
Investment Companies | Shares | ||
BlackRock Insured Municipal Term Trust, Inc. (h) | 204,800 | 2,064,384 | |
Total Investment Companies — 0.2% | 2,064,384 | ||
Total Long-Term Investments | |||
(Cost — $822,171,776) — 105.9% | 843,016,054 | ||
Short-Term Securities | |||
FFI Institutional Tax-Exempt Fund, 0.21% (h)(i) | 16,338,498 | 16,338,498 | |
Total Short-Term Securities | |||
(Cost — $16,338,498) — 2.1% | 16,338,498 | ||
Total Investments (Cost — $838,510,274*) — 108.0% | 859,354,552 | ||
Other Assets Less Liabilities — 0.3% | 2,386,103 | ||
Liability for Trust Certificates, Including Interest | |||
Expense and Fees Payable — (8.3)% | (65,860,148) | ||
Net Assets — 100.0% | $ 795,880,507 |
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2010, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 774,469,490 |
Gross unrealized appreciation | $ 30,015,382 |
Gross unrealized depreciation | (10,905,590) |
Net unrealized appreciation | $ 19,109,792 |
(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(b) Represents a step-up bond that pays an initial coupon rate for the first period
and then a higher coupon rate for the following periods. Rate shown reflects the
current yield.
(c) US government securities, held in escrow, are used to pay interest on this security as
well as to retire the bond in full at the date indicated, typically at a premium to par.
(d) Security is collateralized by Municipal or US Treasury Obligations.
(e) When-issued security. Unsettled when-issued transactions were as follows:
Unrealized | ||
Counterparty | Value | Appreciation |
Merrill Lynch & Co. | $8,105,895 | $ 8,583 |
(f) Variable rate security. Rate shown is as of report date.
(g) 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.
See Notes to Financial Statements. | ||
ANNUAL REPORT | JUNE 30, 2010 | 25 |
Schedule of Investments (concluded) BlackRock Municipal Insured Fund
(h) Investments in companies considered to be an affiliate of the Fund during the year, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended,
were as follows:
Shares Held | Shares Held | Value at | ||||
at June 30, | Shares | Shares | at June 30, | June 30, | ||
Affiliate | 2009 | Purchased | Sold | 2010 | 2010 | Income |
BlackRock California Insured Municipal 2008 Term Trust, Inc. | — | — | — | — | — | $ 4,057 |
BlackRock Insured Municipal 2008 Term Trust, Inc. | — | — | — | — | — | $ 4,290 |
BlackRock Insured Municipal Term Trust, Inc. | 204,800 | — | — | 204,800 | 2,064,384 | $ 85,760 |
FFI Institutional Tax-Exempt Fund | 30,927,431 | — | (14,588,933)1 | 16,338,498 | 16,338,498 | $ 40,084 |
1 Represents net shares sold.
(i) Represents the current yield as of report date.
•Financial futures contracts sold as of June 30, 2010 were as follows:
Expiration | Notional | Unrealized | ||
Contracts | Issue | Date | Value | Depreciation |
95 | 10-Year U.S. | |||
Treasury Bond | September 2010 | $11,557,135 | $ (84,818) |
•Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, which are as follows:
•Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
•Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
•Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including
the Fund’s own assumptions used in determining the fair value of investments
and derivatives)
The inputs or methodologies 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 tables summarize the inputs used as of June 30, 2010 in determining
the fair valuation of the Fund’s investments and derivatives:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |
Assets: | |||||
Investments in | |||||
Securities: | |||||
Long-Term | |||||
Investments1 . | $2,064,384 | $ 840,951,670 | — | $ 843,016,054 | |
Short-Term | |||||
Securities | 16,338,498 | — | — | 16,338,498 | |
Total | $ 18,402,882 | $ 840,951,670 | — | $ 859,354,552 |
1 See above Schedule of Investments for values in each state or political
subdivision, excluding security types in Level 1 within the table.
Derivative Financial Instruments2 | ||||
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Liabilities: | ||||
Interest rate | ||||
contracts | $ (84,818) | — | — | $ (84,818) |
2 Derivative financial instruments are financial futures contracts, which are shown
at the unrealized appreciation/depreciation on the instrument.
See Notes to Financial Statements.
26 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments June 30, 2010 BlackRock National Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Alabama — 0.8% | ||
Birmingham Special Care Facilities Financing Authority, | ||
RB, Children's Hospital (AGC), 6.00%, 6/01/39 | $10,010 | $ 10,869,759 |
Courtland IDB Alabama, RB, International Paper Co. | ||
Projects, Series A, 6.25%, 11/01/33 | 2,530 | 2,616,475 |
Courtland IDB, Refunding RB, | ||
International Paper Co., Series B, AMT, 6.25%, 8/01/25 | 750 | 758,880 |
Jefferson County Public Building Authority, RB, Warrants | ||
(AMBAC), 5.13%, 4/01/21 | 3,525 | 2,151,590 |
Selma IDB Alabama, Refunding RB, International | ||
Paper Co. Project, Series A, AMT, 6.70%, 2/01/18 | 2,500 | 2,528,150 |
18,924,854 | ||
Arizona — 2.2% | ||
Arizona Health Facilities Authority, RB, Catholic | ||
Healthcare West, Series A, 6.63%, 7/01/20 | 4,000 | 4,040,640 |
Maricopa County & Phoenix Industrial Development | ||
Authorities, Refunding RB, S/F, Series A-2, AMT | ||
(Ginnie Mae), 5.80%, 7/01/40 | 3,335 | 3,396,131 |
Maricopa County IDA Arizona, RB, Arizona Charter | ||
Schools Project, Series A, 6.75%, 7/01/29 | 3,100 | 2,135,993 |
Maricopa County Pollution Control Corp., Refunding | ||
RB, Southern California Edison Co., Series A, | ||
5.00%, 6/01/35 | 10,000 | 10,007,300 |
Peoria Improvement District No. 8401 Arizona, Special | ||
Assessment Bonds: | ||
No. 8801, 7.30%, 1/01/11 | 395 | 407,285 |
No. 8802, 7.20%, 1/01/13 | 510 | 510,092 |
Pima County IDA, IDRB, Tucson Electric Power, Series A, | ||
6.38%, 9/01/29 | 3,785 | 3,848,474 |
Pima County IDA, Refunding IDRB, Tucson Electric | ||
Power, 5.75%, 9/01/29 | 8,525 | 8,674,187 |
Pima County IDA, Refunding RB, Tucson Electric | ||
Power Co., San Juan, Series A, 4.95%, 10/01/20 | 9,330 | 9,419,008 |
Pinal County IDA Arizona, RB, San Manuel Facility | ||
Project, AMT, 6.25%, 6/01/26 | 500 | 436,565 |
Prescott Valley Improvement District Arizona, Special | ||
Assessment Bonds, Sewer Collection System Roadway | ||
Repair, 7.90%, 1/01/12 | 119 | 125,007 |
Tucson IDA, RB, Christian Care Project, Series A (Radian), | ||
6.13%, 7/01/10 (a) | 3,515 | 3,550,642 |
Vistancia Community Facilities District Arizona, GO: | ||
6.75%, 7/15/22 | 3,000 | 3,064,440 |
5.75%, 7/15/24 | 2,125 | 2,125,850 |
51,741,614 | ||
Arkansas — 0.0% | ||
City of Pine Bluff Arkansas, Refunding RB, International | ||
Paper Co. Project, Series A, AMT, 6.70%, 8/01/20 | 500 | 505,525 |
California — 14.3% | ||
California Health Facilities Financing Authority, RB, | ||
Sutter Health, Series A, 6.25%, 8/15/35 | 2,500 | 2,525,150 |
California Health Facilities Financing Authority, | ||
Refunding RB Catholic Healthcare West: | ||
Series A, 6.00%, 7/01/39 | 5,305 | 5,681,814 |
Series E, 5.63%, 7/01/25 | 15,000 | 15,986,250 |
California Rural Home Mortgage Finance Authority, | ||
Refunding RB, Mortgage-Backed Securities Program, | ||
Series A-2, AMT (Ginnie Mae), 7.00%, 9/01/29 | 5 | 5,071 |
California State Public Works Board, RB, Various | ||
Capital Projects: | ||
Sub-Series A-1, 6.00%, 3/01/35 | 5,000 | 5,132,300 |
Sub-Series I-1, 6.38%, 11/01/34 | 7,455 | 7,908,860 |
Par | ||
Municipal Bonds | (000) | Value |
California (concluded) | ||
California Statewide Communities Development | ||
Authority, RB, Health Facility, Memorial Health Services, | ||
Series A, 6.00%, 10/01/23 | $ 9,880 | $ 10,292,095 |
California Statewide Communities Development | ||
Authority, Refunding RB, Catholic Healthcare West, | ||
Series B, 5.50%, 7/01/30 | 3,000 | 3,094,860 |
Chula Vista Community Facilities District California, | ||
Special Tax Bonds, District No. 06-1, Eastlake-Woods, | ||
Improvement Area A, 6.15%, 9/01/26 | 3,215 | 3,252,390 |
City of Chula Vista California, Refunding RB, San Diego | ||
Gas & Electric, Series A, 5.88%, 2/15/34 | 4,875 | 5,370,300 |
City of Roseville California, Special Tax Bonds, Stoneridge | ||
Community Facilities No. 1, 6.30%, 9/01/11 (a) | 2,500 | 2,725,075 |
County of Sacramento California, RB, Subordinate | ||
and Passenger Facility Charges/Grant, Series C, | ||
6.00%, 7/01/39 | 12,765 | 13,685,357 |
Imperial Irrigation District, Refunding RB, System, | ||
5.13%, 11/01/38 | 10,000 | 10,317,500 |
Los Angeles Municipal Improvement Corp., RB, Real | ||
Property, Series E: | ||
6.00%, 9/01/34 | 2,460 | 2,680,514 |
6.00%, 9/01/39 | 6,000 | 6,561,180 |
Modesto Irrigation District, COP: | ||
Capital Improvements, Series A, 6.00%, 10/01/39 | 9,775 | 10,655,532 |
Series B, 5.50%, 7/01/35 | 15,000 | 15,854,250 |
Pittsburg Redevelopment Agency, Tax Allocation Bonds, | ||
Refunding, Subordinate, Los Medanos Community | ||
Project, Series A, 6.50%, 9/01/28 | 10,000 | 11,016,200 |
Pittsburg Unified School District, COP, 6.20%, 9/01/34 | 10,465 | 10,683,823 |
Port of Oakland, RB, Series K, AMT (NPFGC), | ||
5.88%, 11/01/30 | 2,950 | 2,950,236 |
San Francisco City & County Airports Commission, RB, | ||
Series E, 6.00%, 5/01/39 | 24,300 | 26,727,084 |
San Francisco City & County Airports Commission, | ||
Refunding RB, Second Series 34E, AMT (AGM), | ||
5.75%, 5/01/21 | 8,220 | 8,984,131 |
San Francisco City & County Public Utilities | ||
Commission, RB, Series B, 5.00%, 11/01/39 | 8,500 | 8,800,900 |
San Francisco City & County Redevelopment Agency, | ||
Special Tax Bonds, Community Facilities District | ||
No. 6-Mission, Series A: | ||
6.00%, 8/01/21 | 5,000 | 5,018,950 |
6.00%, 8/01/25 | 2,550 | 2,553,800 |
San Francisco Uptown Parking Corp. California, RB, | ||
Union Square (NPFGC), 6.00%, 7/01/20 | 1,075 | 1,145,617 |
San Juan Water District, COP, Series A, 6.00%, 2/01/39 | 10,000 | 11,065,600 |
Santa Margarita Water District California, Special | ||
Tax Bonds, Refunding, Facilities District No. 99-1, | ||
6.20%, 9/01/20 | 2,650 | 2,682,118 |
State of California, GO, Various Purpose: | ||
6.00%, 3/01/33 | 11,000 | 11,816,970 |
6.50%, 4/01/33 | 38,000 | 42,453,980 |
6.00%, 11/01/39 | 8,000 | 8,522,800 |
Tuolumne Wind Project Authority, RB, Tuolumne Co. | ||
Project, Series A, 5.88%, 1/01/29 | 16,130 | 17,552,021 |
University of California, RB, Series O, 5.25%, 5/15/39 | 20,695 | 22,100,190 |
University of California, Refunding RB, Series E, | ||
5.00%, 5/15/38 | 19,575 | 19,713,200 |
335,516,118 | ||
Colorado — 1.0% | ||
Colorado Health Facilities Authority, RB, Catholic Health | ||
Initiatives, Series D, 6.25%, 10/01/33 | 3,520 | 3,884,285 |
Colorado Housing & Finance Authority, RB, S/F Program, | ||
Senior Series B-3, 6.55%, 10/01/16 | 120 | 124,978 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 27
Schedule of Investments (continued) BlackRock National Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Colorado (concluded) | ||
Colorado Housing & Finance Authority, Refunding RB, | ||
S/F Program: | ||
Senior Series A-2, AMT, 7.50%, 4/01/31 | $ 160 | $ 169,978 |
Senior Series A-3, 7.35%, 10/01/30 | 65 | 68,188 |
Senior Series C-3 (FHA), 6.75%, 10/01/21 | 275 | 299,821 |
Senior Series C-3 (FHA), 7.15%, 10/01/30 | 70 | 71,383 |
Series B-2, AMT, 7.10%, 4/01/17 | 45 | 46,604 |
Series B-2, AMT, 7.25%, 10/01/31 | 435 | 446,179 |
Series C-2, AMT (FHA), 7.25%, 10/01/31 | 200 | 201,130 |
Elk Valley Public Improvement Corp., RB, Public | ||
Improvement Fee: | ||
Series A, 7.35%, 9/01/31 | 7,560 | 7,045,996 |
Series B, 7.45%, 9/01/31 | 760 | 715,570 |
Plaza Metropolitan District No. 1 Colorado, Tax Allocation | ||
Bonds Public Improvement Fee, Tax Increment: | ||
8.00%, 12/01/25 | 7,700 | 7,995,757 |
Subordinate, 8.13%, 12/01/25 | 1,910 | 1,739,284 |
22,809,153 | ||
Connecticut — 0.6% | ||
Connecticut State Development Authority, RB, Bridgeport, | ||
AMT (AMBAC), 6.15%, 4/01/35 | 1,250 | 1,252,763 |
Connecticut State Health & Educational Facility | ||
Authority, RB, Bridgeport Hospital, Series A (NPFGC), | ||
6.63%, 7/01/18 | 1,000 | 1,013,300 |
Connecticut State Health & Educational Facility Authority, | ||
Refunding RB (Radian): | ||
6.63%, 7/01/26 | 640 | 640,416 |
Eastern Connecticut Health Network, Series A, | ||
6.50%, 7/01/10 (a) | 11,350 | 11,465,429 |
Eastern Connecticut Health Network, Series A, | ||
6.50%, 7/01/10 (a) | 695 | 702,068 |
15,073,976 | ||
District of Columbia — 1.5% | ||
District of Columbia, RB, Series A, 5.50%, 12/01/30 | 17,000 | 19,097,970 |
District of Columbia Water & Sewer Authority, RB, Series A: | ||
6.00%, 10/01/35 | 7,630 | 8,567,651 |
5.50%, 10/01/39 | 6,475 | 6,962,956 |
34,628,577 | ||
Florida — 9.6% | ||
Anthem Park Community Development District, Special | ||
Assessment Bonds, 5.80%, 5/01/36 (b)(c) | 1,815 | 1,033,842 |
Ave Maria Stewardship Community Development District, | ||
Special Assessment Bonds, Series A, 5.13%, 5/01/38 | 1,900 | 1,452,683 |
County of Escambia Florida, RB, International Paper Co. | ||
Projects, Series B, 6.25%, 11/01/33 | 7,500 | 7,756,350 |
County of Lee Florida, RB, Series A, AMT (AGM), | ||
6.00%, 10/01/29 | 13,015 | 13,184,976 |
County of Miami-Dade Florida, GO, Building Better | ||
Communities Program: | ||
Series B, 6.38%, 7/01/28 | 7,750 | 8,843,215 |
Series B-1, 6.00%, 7/01/38 | 25,000 | 27,834,250 |
County of Miami-Dade Florida, RB, Water & Sewer | ||
System (AGM), 5.00%, 10/01/39 | 20,000 | 20,646,800 |
County of Miami-Dade Florida, Refunding RB: | ||
Miami International Airport, Series A-1, | ||
5.50%, 10/01/30 | 8,855 | 9,227,707 |
Series C, 6.00%, 10/01/23 | 20,000 | 22,494,800 |
Par | ||
Municipal Bonds | (000) | Value |
Florida (concluded) | ||
Fiddlers Creek Community Development District No. 2, | ||
Special Assessment Bonds (b)(c): | ||
Series A, 6.38%, 5/01/35 | $ 6,850 | $ 2,671,500 |
Series B, 5.75%, 5/01/13 | 555 | 216,450 |
Florida Housing Finance Corp., RB, Homeowner | ||
Mortgage, Series 3, AMT (NPFGC), 6.35%, 7/01/28 | 600 | 626,514 |
Florida Housing Finance Corp., Refunding RB, AMT, | ||
Homeowner Mortgage: | ||
Series 1 (Ginnie Mae), 6.00%, 7/01/39 | 4,410 | 4,576,433 |
Series 4 (AGM), 6.25%, 7/01/22 | 300 | 314,151 |
Harbor Bay Community Development District Florida, | ||
Special Assessment Bonds, Series A, 7.00%, 5/01/33 | 935 | 935,196 |
Highland Meadows Community Development District, | ||
Special Assessment Bonds, Special Assessment, | ||
Series A, 5.50%, 5/01/36 (b)(c) | 1,090 | 436,730 |
Hillsborough County IDA, RB, AMT, National Gypsum Co.: | ||
Series A, 7.13%, 4/01/30 | 6,000 | 5,634,360 |
Series B, 7.13%, 4/01/30 | 7,750 | 7,277,715 |
Jacksonville Economic Development Commission, RB: | ||
Mayo Clinic Jacksonville, Series B, 5.50%, 11/15/36 | 2,000 | 2,038,600 |
Mayo Clinic, Series A (NPFGC), 5.50%, 11/15/36 | 1,000 | 1,019,300 |
Jacksonville Electric Authority Florida, RB: | ||
Scherer 4 Project, Series A, 6.00%, 10/01/37 | 8,225 | 8,989,596 |
Sub-Series A, 5.63%, 10/01/32 | 10,525 | 11,377,735 |
Jacksonville Port Authority, RB, AMT (AGC), | ||
6.00%, 11/01/38 | 8,105 | 8,300,736 |
Lee County Housing Finance Authority, RB, | ||
Multi-County Program, Series A-2, AMT (Ginnie Mae), | ||
6.00%, 9/01/40 | 665 | 723,148 |
Lexington Oaks Community District, Special Assessment | ||
Bonds, Series A, 6.70%, 5/01/33 | 1,075 | 1,099,575 |
Miami-Dade County IDA, RB, Waste Management Inc. | ||
Project, Series 1, Mandatory Put Bonds, AMT, | ||
7.00%, 12/01/18 (d) | 2,000 | 2,038,300 |
New River Community Development District, Special | ||
Assessment Bonds, Series B, 5.00%, 5/01/13 (b)(c) | 1,000 | 479,900 |
Orange County Health Facilities Authority, RB, | ||
The Nemours Foundation Project, Series A, | ||
5.00%, 1/01/39 | 10,200 | 10,398,084 |
Orange County School Board, COP, Series A (AGC), | ||
5.50%, 8/01/34 | 11,100 | 11,817,615 |
Orlando Urban Community Development District Florida, | ||
Special Assessment Bonds, Capital Improvement, | ||
Series A, 6.95%, 5/01/11 (a) | 930 | 979,234 |
Panther Trace II Community Development District, | ||
Special Assessment Bonds, Special Assessment, | ||
5.13%, 11/01/13 | 8,645 | 7,548,036 |
Santa Rosa County School Board, COP, Refunding, | ||
Series 2 (NPFGC), 5.25%, 2/01/26 | 2,000 | 2,094,400 |
Sarasota County Public Hospital District, RB, Sarasota | ||
Memorial Hospital Project, Series A, 5.63%, 7/01/39 | 14,570 | 15,063,632 |
St. Lucie West Services District, Refunding RB, | ||
Senior Lien (NPFGC), 6.00%, 10/01/22 | 2,000 | 2,061,300 |
Sterling Hill Community Development District, | ||
Special Assessment Bonds, Refunding, Series B, | ||
5.50%, 11/01/10 | 165 | 143,451 |
Tern Bay Community Development District, Special | ||
Assessment Bonds, Refunding, Series B, | ||
5.00%, 5/01/15 (b)(c) | 1,190 | 357,000 |
Volusia County IDA, RB, Student Housing, Stetson | ||
University Project, Series A (CIFG), 5.00%, 6/01/35 | 400 | 341,716 |
Watergrass Community Development District, Special | ||
Assessment Bonds, Series B: | ||
4.88%, 11/01/10 | 2,470 | 1,998,971 |
5.13%, 11/01/14 | 1,000 | 583,140 |
224,617,141 |
See Notes to Financial Statements.
28 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (continued) BlackRock National Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Georgia — 1.9% | ||
City of Atlanta Georgia, RB, General, Series B, AMT | ||
(NPFGC), 5.63%, 1/01/30 | $20,000 | $ 20,142,200 |
DeKalb County Hospital Authority Georgia, RB, DeKalb | ||
Medical Center Inc. Project, 6.13%, 9/01/40 | 3,535 | 3,508,169 |
Fulton County Residential Care Facilities for the Elderly | ||
Authority, Refunding RB, Canterbury Court Project, | ||
Series A, 6.00%, 2/15/22 | 2,250 | 2,150,168 |
Municipal Electric Authority of Georgia, Refunding RB, | ||
Project One, Sub-Series D, 6.00%, 1/01/23 | 10,000 | 11,343,500 |
Richmond County Development Authority, RB, Recovery | ||
Zone Facility, International Paper Co., Series B, | ||
6.25%, 11/01/33 | 3,625 | 3,748,902 |
Rockdale County Development Authority, RB, Visy Paper | ||
Project, Series A, AMT, 6.13%, 1/01/34 | 5,000 | 4,668,200 |
45,561,139 | ||
Illinois — 8.8% | ||
Bolingbrook Special Service Area No. 1, Special Tax | ||
Bonds, Forest City Project, 5.90%, 3/01/27 | 1,000 | 819,490 |
Chicago Transit Authority, RB, Federal Transit | ||
Administration Section 5309, Series A (AGC), | ||
6.00%, 6/01/26 | 12,425 | 14,195,687 |
City of Chicago Illinois, ARB, General, 3rd Lien, | ||
Series B-2, AMT (Syncora), 6.00%, 1/01/29 | 55,000 | 56,818,300 |
City of Chicago Illinois, RB, Series A, AMT (Ginnie Mae), | ||
7.15%, 9/01/31 | 175 | 179,641 |
City of Chicago Illinois, Refunding RB, Second Lien, | ||
5.25%, 11/01/38 | 12,870 | 13,452,110 |
City of Chicago Illinois, Special Assessment Bonds, | ||
Lake Shore East, 6.75%, 12/01/32 | 2,000 | 1,908,980 |
Illinois Finance Authority, RB: | ||
Advocate Health Care Network, Series D, | ||
6.50%, 11/01/38 | 5,700 | 6,317,538 |
Community Rehabilitation Providers Facilities, | ||
Series A, 6.50%, 7/01/22 | 3,140 | 3,159,719 |
Roosevelt University Project, 6.50%, 4/01/39 | 8,300 | 8,643,039 |
Rush University Medical Center Obligation Group, | ||
Series A, 7.25%, 11/01/30 | 6,900 | 7,836,330 |
Rush University Medical Center Obligation Group, | ||
Series B, 7.25%, 11/01/30 | 5,280 | 5,996,496 |
Rush University Medical Center, Series C, | ||
6.38%, 11/01/29 | 2,860 | 3,070,267 |
University of Chicago, Series B, 6.25%, 7/01/38 | 20,000 | 23,011,600 |
Illinois Finance Authority, Refunding RB, Series A: | ||
Northwestern Memorial Hospital, 6.00%, 8/15/39 | 9,200 | 10,007,392 |
OSF Healthcare System, 7.00%, 11/15/27 | 3,335 | 3,497,882 |
OSF Healthcare System, 7.13%, 11/15/35 | 1,725 | 1,805,954 |
OSF Healthcare System, 6.00%, 5/15/39 | 12,750 | 12,696,960 |
State of Illinois, GO, First Series (NPFGC), | ||
5.75%, 12/01/10 (a) | 16,635 | 17,013,945 |
State of Illinois, RB, 6.00%, 6/15/20 | 3,000 | 3,013,800 |
Town of Cicero Illinois, GO, Refunding, Corporate Purpose | ||
(NPFGC), 6.00%, 12/01/28 | 1,450 | 1,467,386 |
Village of Hodgkins Illinois, RB, Metropolitan Biosolids | ||
Management LLC Project, AMT, 6.00%, 11/01/23 | 10,000 | 10,006,200 |
Village of Wheeling Illinois, Tax Allocation Bonds, North | ||
Milwaukee/Lake-Cook Tax Increment Financing | ||
Project, 6.00%, 1/01/25 | 1,540 | 1,420,850 |
206,339,566 | ||
Indiana — 3.2% | ||
Indiana Finance Authority, RB, Trinity Health, Series A, | ||
5.63%, 12/01/38 | 10,000 | 10,634,400 |
Indiana Finance Authority, Refunding RB: | ||
Improvement, U.S. Steel Corp., 6.00%, 12/01/26, | 10,500 | 10,716,405 |
Duke Energy Indiana Project, Series B, | ||
6.00%, 8/01/39 | 8,335 | 9,096,235 |
Par | ||
Municipal Bonds | (000) | Value |
Indiana (concluded) | ||
Indiana Municipal Power Agency, RB, Indiana Municipal | ||
Power Agency, Series B, 6.00%, 1/01/39 | $10,500 | $ 11,378,850 |
Indianapolis Local Public Improvement Bond Bank, | ||
Refunding RB, Waterworks Project, Series A (AGC), | ||
5.50%, 1/01/38 | 30,125 | 32,587,719 |
74,413,609 | ||
Kansas — 0.1% | ||
City of Wichita Kansas, Refunding RB, Facilities, | ||
Series III, 6.25%, 11/15/19 | 2,500 | 2,592,275 |
Sedgwick & Shawnee Counties Kansas, RB, | ||
Mortgage-Backed Securities, Series A1, AMT | ||
(Ginnie Mae), 6.95%, 6/01/29 | 755 | 808,514 |
3,400,789 | ||
Kentucky — 0.6% | ||
County of Owen Kentucky, RB, Kentucky-American | ||
Water Co. Project, Series A, 5.38%, 6/01/40 | 8,335 | 8,350,503 |
Kentucky Economic Development Finance Authority, | ||
Refunding RB, Owensboro Medical Health System, | ||
Series A, 6.38%, 6/01/40 | 5,000 | 5,127,050 |
13,477,553 | ||
Louisiana — 0.5% | ||
Louisiana HFA, RB, S/F, Series D-2, AMT (Ginnie Mae), | ||
5.80%, 6/01/20 | 190 | 197,492 |
Louisiana Local Government Environmental Facilities & | ||
Community Development Authority, RB: | ||
Westlake Chemical Corp. Projects, 6.75%, 11/01/32 | 3,500 | 3,609,620 |
Westlake Chemical Corp., Series A, 6.50%, 8/01/29 | 6,665 | 6,776,372 |
Rapides Finance Authority Louisiana, RB, International | ||
Paper Co. Project, Series A, AMT, 6.55%, 11/15/23 | 2,000 | 2,021,240 |
12,604,724 | ||
Maryland — 0.3% | ||
Maryland Community Development Administration, HRB, | ||
Series B, AMT, 6.15%, 1/01/21 | 1,000 | 1,001,270 |
Maryland Community Development Administration, RB, | ||
Waters Landing II Apartments, Series A, Mandatory | ||
Put Bonds, AMT, 5.88%, 8/01/33 (d) | 1,000 | 1,013,290 |
Maryland EDC, RB: | ||
Term Project, Series B, 5.75%, 6/01/35 | 1,500 | 1,534,050 |
Transportation Facilities Project, Series A, | ||
5.75%, 6/01/35 | 2,350 | 2,390,749 |
5,939,359 | ||
Massachusetts — 0.5% | ||
Massachusetts Educational Financing Authority, | ||
Refunding RB, Issue E, AMT (AMBAC), 5.85%, 7/01/14 | 30 | 30,005 |
Massachusetts HFA, RB, Series B, 7.00%, 12/01/38 | 5,000 | 5,585,400 |
Massachusetts Health & Educational Facilities Authority, | ||
RB (AMBAC), 6.55%, 6/23/22 | 6,350 | 6,350,000 |
11,965,405 | ||
Michigan — 1.9% | ||
County of Wayne Michigan, GO, Building Improvement, | ||
Series A, 6.75%, 11/01/39 | 2,190 | 2,313,188 |
Eastern Michigan University, Refunding RB, General | ||
(AMBAC), 6.00%, 6/01/24 | 415 | 420,623 |
Flint Hospital Building Authority Michigan, Refunding RB, | ||
Hurley Medical Center, 6.00%, 7/01/20 | 2,635 | 2,590,390 |
Michigan State Building Authority, Refunding RB, | ||
Facilities Program, Series I: | ||
6.00%, 10/15/38 | 10,875 | 11,812,316 |
6.25%, 10/15/38 | 6,250 | 6,894,813 |
Royal Oak Hospital Finance Authority Michigan, | ||
Refunding RB: | ||
William Beaumont Hospital, 8.25%, 9/01/39 | 15,195 | 18,056,674 |
William Beaumont, Series W, 6.00%, 8/01/39 | 2,640 | 2,684,167 |
44,772,171 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 29
Schedule of Investments (continued) BlackRock National Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Minnesota — 0.5% | ||
City of Eden Prairie Minnesota, RB, Rolling Hills Project, | ||
Series A (Ginnie Mae), 6.15%, 8/20/31 | $ 1,000 | $ 1,061,970 |
City of Minneapolis Minnesota, Refunding RB, Fairview | ||
Health Services, Series A, 6.75%, 11/15/32 | 4,800 | 5,344,368 |
Minneapolis & St. Paul Metropolitan Airports | ||
Commission, RB, Sub-Series D, AMT (NPFGC): | ||
5.75%, 1/01/12 | 470 | 480,664 |
5.75%, 1/01/14 | 470 | 478,418 |
5.75%, 1/01/15 | 2,060 | 2,092,095 |
Ramsey County Housing & Redevelopment Authority | ||
Minnesota, RB, Hanover Townhouses Project, AMT, | ||
6.00%, 7/01/31 | 1,110 | 1,118,780 |
10,576,295 | ||
Mississippi — 0.1% | ||
County of Warren Mississippi, Refunding RB, International | ||
Paper Co. Project, Series B, AMT, 6.75%, 8/01/21 | 1,700 | 1,718,717 |
Missouri — 0.0% | ||
City of Fenton Missouri, Tax Allocation Bonds, Refunding, | ||
Gravois Bluffs Redevelopment Project, 5.00%, 4/01/14 | 1,000 | 1,057,680 |
Multi-State — 0.1% | ||
MuniMae TE Bond Subsidiary LLC, 7.50%, 6/30/49 (e)(f) | 1,921 | 1,781,285 |
Nevada — 4.1% | ||
City of Las Vegas Nevada, GO, Limited Tax, Performing | ||
Arts Center, 6.00%, 4/01/34 | 10,000 | 11,021,300 |
City of Reno Nevada, Special Assessment Bonds, | ||
Somerset Parkway, 6.63%, 12/01/22 | 1,705 | 1,589,554 |
Clark County Water Reclamation District, GO, Series B, | ||
5.75%, 7/01/38 | 26,000 | 28,728,440 |
County of Clark Nevada, RB, Series B, 5.75%, 7/01/42 | 37,400 | 39,588,274 |
County of Clark Nevada, Special Assessment Bonds, | ||
Special Improvement District No. 142, Local | ||
Improvement, 6.38%, 8/01/23 | 1,470 | 1,401,645 |
Nevada Housing Division, RB, Multi-Unit Housing, | ||
Series A, AMT (Freddie Mac), 6.30%, 4/01/32 | 4,950 | 4,954,208 |
Sparks Redevelopment Agency Nevada, Tax Allocation | ||
Bonds, Refunding, Series A (Radian) (a): | ||
6.00%, 7/15/10 | 3,110 | 3,114,105 |
6.00%, 7/15/10 | 6,315 | 6,315,505 |
96,713,031 | ||
New Hampshire — 0.1% | ||
New Hampshire Business Finance Authority, | ||
Refunding RB, Public Service Co. of New Hampshire | ||
Project, Series C (NPFGC), 5.45%, 5/01/21 | 2,000 | 2,072,000 |
New Jersey — 1.1% | ||
New Jersey EDA, RB, Cedar Crest Village Inc. Facility, | ||
Series A, 7.25%, 11/15/11 (a) | 3,300 | 3,638,580 |
New Jersey EDA, Refunding RB, New Jersey-American | ||
Water Co. Project, Series B, AMT, 5.60%, 11/01/34 (g) | 10,500 | 10,546,410 |
New Jersey Educational Facilities Authority, Refunding RB, | ||
University of Medicine & Dentistry, Series B: | ||
7.13%, 12/01/23 | 1,870 | 2,169,406 |
7.50%, 12/01/32 | 7,200 | 8,242,200 |
New Jersey State Housing & Mortgage Finance Agency, | ||
Refunding RB, Series B (AGM), 6.25%, 11/01/26 | 640 | 640,774 |
25,237,370 | ||
New Mexico — 0.1% | ||
County of Santa Fe New Mexico, RB (AGM), | ||
6.00%, 2/01/27 | 250 | 291,400 |
New Mexico Mortgage Finance Authority, RB, | ||
S/F Mortgage Program, Series D, AMT (Fannie Mae), | ||
6.15%, 7/01/35 | 1,805 | 1,932,758 |
2,224,158 |
Par | ||
Municipal Bonds | (000) | Value |
New York — 5.4% | ||
City of New York New York, GO: | ||
Refunding, Series A (Syncora), 6.00%, 5/15/21 | $ 60 | $ 60,849 |
Series B (NPFGC), 5.88%, 8/01/15 | 1,300 | 1,318,707 |
Series E-1, 6.25%, 10/15/28 | 7,600 | 8,877,864 |
Long Island Power Authority, Refunding RB, General, | ||
Series A, 6.00%, 5/01/33 | 40,800 | 46,107,672 |
Metropolitan Transportation Authority, RB, Series 2008C, | ||
6.50%, 11/15/28 | 17,420 | 20,223,226 |
New York City Housing Development Corp., RB, Series M: | ||
6.50%, 11/01/28 | 4,300 | 4,578,124 |
6.88%, 11/01/38 | 5,700 | 6,107,664 |
New York City Industrial Development Agency, RB: | ||
British Airways Plc Project, AMT, 7.63%, 12/01/32 | 2,000 | 1,997,040 |
Special Needs Facilities Pooled Program, Series C-1, | ||
6.00%, 7/01/12 | 1,295 | 1,296,878 |
New York State Dormitory Authority, ERB, Series B, | ||
5.75%, 3/15/36 | 13,900 | 15,727,572 |
New York State Dormitory Authority, Refunding RB, | ||
Series A: | ||
Mount Sinai Health, 6.50%, 7/01/16 | 2,410 | 2,439,089 |
Mount Sinai Health, 6.50%, 7/16/10 | 1,680 | 1,700,278 |
State University Educational Facilities, | ||
7.50%, 5/15/13 | 3,000 | 3,494,970 |
Oneida County Industrial Development Agency New York, | ||
RB, Civic Facility, Faxton Hospital, Series C (Radian), | ||
6.63%, 1/01/15 | 2,285 | 2,313,471 |
Westchester County Industrial Development Agency | ||
New York, MRB, Kendal on Hudson Project, Series A, | ||
6.50%, 1/01/13 (a) | 8,095 | 9,190,577 |
Westchester County Industrial Development Agency | ||
New York, RB, Special Needs Facilities Pooled Program, | ||
Series E-1, 6.00%, 7/01/12 | 300 | 300,435 |
125,734,416 | ||
North Carolina — 0.6% | ||
Columbus County Industrial Facilities & Pollution Control | ||
Financing Authority North Carolina, RB, International | ||
Paper Co. Projects, Series B, | ||
6.25%, 11/01/33 | 3,000 | 3,102,540 |
North Carolina HFA, RB, Homeownership Ownership, | ||
Series 9A, AMT, 5.80%, 1/01/20 | 3,130 | 3,253,416 |
North Carolina Medical Care Commission, RB, | ||
First Mortgage (a): | ||
Forest at Duke Project, 6.38%, 9/01/12 | 1,000 | 1,117,260 |
Givens Estates Project, Series A, 6.50%, 7/01/13 | 2,500 | 2,928,375 |
Presbyterian Homes Project, 6.88%, 10/01/10 | 2,500 | 2,566,225 |
12,967,816 | ||
Ohio — 2.9% | ||
County of Allen Ohio, Refunding RB, Catholic Healthcare, | ||
Series B, 5.25%, 9/01/27 | 14,345 | 14,940,748 |
County of Hamilton Ohio, Refunding RB, Sub-Series A | ||
(AGM), 5.00%, 12/01/32 | 20,000 | 20,811,600 |
County of Montgomery Ohio, Refunding RB, Catholic | ||
Healthcare, Series A, 5.50%, 5/01/34 | 21,850 | 23,377,752 |
Ohio HFA, Refunding RB, Residential Mortgage Backed, | ||
Series C, AMT (Ginnie Mae), 5.90%, 9/01/35 | 650 | 669,786 |
Ohio State Water Development Authority, Refunding RB, | ||
FirstEnergy, Series A, Mandatory Put Bonds, | ||
5.88%, 6/01/33 (d) | 8,300 | 9,068,414 |
68,868,300 |
See Notes to Financial Statements.
30 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (continued) BlackRock National Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Oregon — 0.0% | ||
City of Portland Oregon, HRB, Lovejoy Station | ||
Apartments Project, AMT (NPFGC), 5.90%, 7/01/23 | $ 500 | $ 500,485 |
Oregon State Housing & Community Services | ||
Department, Refunding RB, S/F Mortgage Program, | ||
Series A: | ||
6.40%, 7/01/18 | 15 | 15,030 |
AMT, 6.20%, 7/01/27 | 15 | 15,015 |
530,530 | ||
Pennsylvania — 3.7% | ||
Cumberland County Municipal Authority, RB, Diakon | ||
Lutheran, 6.38%, 1/01/39 | 8,975 | 9,148,756 |
Cumberland County Municipal Authority, Refunding RB, | ||
Diakon Lutheran, 6.50%, 1/01/39 | 2,245 | 2,274,342 |
Dauphin County General Authority, Refunding RB, | ||
Pinnacle Health System Project, Series A: | ||
6.00%, 6/01/29 | 7,400 | 7,807,074 |
6.00%, 6/01/36 | 2,750 | 2,861,485 |
Delaware County IDA Pennsylvania, Refunding RB, | ||
Resource Recovery Facility, Series A, 6.10%, 7/01/13 | 5,255 | 5,260,518 |
Lancaster County Hospital Authority, RB, Brethren Village | ||
Project, Series A: | ||
6.25%, 7/01/26 | 1,160 | 1,161,949 |
6.50%, 7/01/40 | 1,000 | 975,540 |
Pennsylvania Economic Development Financing | ||
Authority, RB: | ||
Allegheny Energy Supply Co., 7.00%, 7/15/39 | 10,000 | 11,177,900 |
American Water Co. Project, 6.20%, 4/01/39 | 2,475 | 2,675,945 |
Pennsylvania HFA, Refunding RB, S/F Mortgage, | ||
Series 62A, AMT, 5.45%, 10/01/29 | 3,000 | 3,001,500 |
Philadelphia Authority for Industrial Development, RB, | ||
Commercial Development, AMT, 7.75%, 12/01/17 | 1,265 | 1,266,455 |
Philadelphia Redevelopment Authority, RB, Neighborhood | ||
Transformation, Series A (NPFGC), 5.30%, 4/15/26 | 36,210 | 37,038,847 |
Sayre Health Care Facilities Authority, Refunding RB, | ||
Guthrie Health, Series A, 5.88%, 12/01/31 | 1,085 | 1,100,168 |
85,750,479 | ||
Puerto Rico — 2.5% | ||
Commonwealth of Puerto Rico, GO, Refunding, Public | ||
Improvement, Series B, 6.50%, 7/01/37 | 15,000 | 16,546,500 |
Puerto Rico Industrial Tourist Educational Medical & | ||
Environmental Control Facilities Financing | ||
Authority, RB, Hospital De La Concepcion, | ||
Series A, 6.13%, 11/15/25 | 4,000 | 4,091,520 |
Puerto Rico Sales Tax Financing Corp., RB, First | ||
Sub-Series A, 6.50%, 8/01/44 | 20,000 | 22,199,000 |
Puerto Rico Sales Tax Financing Corp., Refunding RB, | ||
First Sub-Series C, 6.00%, 8/01/39 | 15,800 | 16,832,688 |
59,669,708 | ||
Rhode Island — 0.8% | ||
Rhode Island Health & Educational Building Corp., RB, | ||
Hospital Financing, LifeSpan Obligation, Series A (AGC), | ||
7.00%, 5/15/39 | 6,250 | 7,197,625 |
Rhode Island Health & Educational Building Corp., | ||
Refunding RB, Public Schools Financing Program, | ||
Series E (AGC), 6.00%, 5/15/29 | 11,070 | 12,196,705 |
19,394,330 | ||
South Carolina — 0.4% | ||
Medical University Hospital Authority, Refunding RB, | ||
Series A (a): | ||
6.38%, 8/15/12 | 5,400 | 6,067,980 |
6.50%, 8/15/12 | 2,450 | 2,759,533 |
8,827,513 |
Par | ||
Municipal Bonds | (000) | Value |
Tennessee — 0.8% | ||
Chattanooga IDB Tennessee, RB (AMBAC): | ||
5.75%, 10/01/17 | $ 4,485 | $ 4,527,787 |
5.75%, 10/01/18 | 3,740 | 3,773,286 |
Memphis-Shelby County Airport Authority, RB, AMT: | ||
Series B, 5.75%, 7/01/25 | 2,000 | 2,094,480 |
Series D (AMBAC), 6.00%, 3/01/24 | 715 | 723,108 |
Shelby County Health Educational & Housing Facilities | ||
Board, Refunding RB, Methodist Healthcare (a): | ||
6.50%, 9/01/12 | 2,920 | 3,290,957 |
6.50%, 9/01/12 | 4,380 | 4,936,435 |
19,346,053 | ||
Texas — 12.7% | ||
Austin Texas Convention Enterprises Inc., RB, First Tier, | ||
Series A (a): | ||
6.60%, 1/01/11 | 5,300 | 5,467,374 |
6.70%, 1/01/11 | 2,300 | 2,373,784 |
Bexar County Health Facilities Development Corp. Texas, | ||
Refunding RB, Army Retirement Residence Project, | ||
6.30%, 7/01/12 (a) | 1,750 | 1,950,602 |
Brazos River Authority, Refunding RB, TXU Electric Co. | ||
Project, Series C, Mandatory Put Bonds, AMT, | ||
5.75%, 5/01/36 (d) | 20,000 | 19,128,200 |
Brazos River Harbor Navigation District, Refunding RB, | ||
Dow Chemical Co. Project, Series A7, AMT, | ||
6.63%, 5/15/33 | 6,865 | 6,979,234 |
Central Texas Housing Finance Corp., RB, AMT | ||
(Ginnie Mae), 8.20%, 6/28/17 | 105 | 109,574 |
City of Dallas Texas, Refunding RB, 5.00%, 10/01/39 (g) | 15,250 | 16,074,872 |
City of Houston Texas, RB, Subordinate Lien, Series A, | ||
AMT (AGM), 5.63%, 7/01/30 | 1,150 | 1,150,253 |
City of Houston Texas, Refunding RB, Combined, | ||
First Lien, Series A (AGC): | ||
6.00%, 11/15/35 | 23,900 | 27,305,989 |
5.38%, 11/15/38 | 26,160 | 28,255,416 |
County of Montgomery Texas, GO, Series 08-B, | ||
5.13%, 3/01/31 | 5,000 | 5,310,500 |
Dallas-Fort Worth International Airport Facilities | ||
Improvement Corp., RB, Series A, AMT (NPFGC), | ||
6.00%, 11/01/24 | 30,000 | 30,046,200 |
Dallas-Fort Worth International Airport Facilities | ||
Improvement Corp., Refunding RB, American | ||
Airlines Inc. Project, AMT, 5.50%, 11/01/30 | 5,000 | 3,450,100 |
Gregg County Health Facilities Development Corp. | ||
Texas, RB, Good Shepherd Medical Center Project | ||
(Radian) (a): | ||
6.38%, 10/01/10 | 3,500 | 3,587,535 |
6.88%, 10/01/10 | 1,000 | 1,026,260 |
Gulf Coast Waste Disposal Authority, Refunding RB, | ||
Series A, AMT, 6.10%, 8/01/24 | 4,000 | 4,009,640 |
Harris County Cultural Education Facilities Finance Corp., | ||
Refunding RB, St. Luke's, 5.63%, 2/15/25 | 10,000 | 10,737,100 |
Harris County Health Facilities Development Corp., | ||
Refunding RB, Memorial Hermann Healthcare | ||
System, B, 7.25%, 12/01/35 | 3,900 | 4,413,747 |
La Vernia Higher Education Finance Corp., RB, KIPP Inc., | ||
6.25%, 8/15/39 | 1,000 | 1,035,040 |
Matagorda County Navigation District No. 1 Texas, | ||
Refunding RB, Central Power & Light Co. Project, | ||
Series A, 6.30%, 11/01/29 | 7,300 | 7,915,390 |
North Texas Tollway Authority, RB, Toll, 2nd Tier, Series F, | ||
6.13%, 1/01/31 | 16,825 | 17,875,216 |
Port of Bay City Authority Texas, RB, Hoechst Celanese | ||
Corp. Project, AMT, 6.50%, 5/01/26 | 7,495 | 7,457,525 |
San Jacinto College District, GO, Limited Tax, | ||
5.13%, 2/15/38 | 8,510 | 8,894,312 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 31
Schedule of Investments (continued) BlackRock National Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Texas (concluded) | ||
Southeast Texas Housing Finance Corp., RB, Series B, | ||
AMT (Ginnie Mae), 8.50%, 11/01/25 | $ 15 | $ 15,282 |
Tarrant County Cultural Education Facilities Finance | ||
Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45 | 40,000 | 41,913,600 |
Tarrant County Cultural Education Facilities Finance | ||
Corp., Refunding RB, Northwest Senior Housing, | ||
Edgemere Project, Series A, 6.00%, 11/15/26 | 2,200 | 2,222,990 |
Texas Private Activity Bond Surface Transportation Corp., | ||
RB, Senior Lien: | ||
LBJ Infrastructure, 7.00%, 6/30/40 | 20,000 | 20,125,600 |
Note Mobility, 6.88%, 12/31/39 | 20,350 | 20,682,926 |
299,514,261 | ||
Utah — 0.6% | ||
City of Riverton Utah, RB, IHC Health Services Inc., | ||
5.00%, 8/15/41 | 13,250 | 13,452,990 |
Virginia — 0.5% | ||
Tobacco Settlement Financing Corp. Virginia, | ||
Refunding RB, Senior Series B1, 5.00%, 6/01/47 | 20,000 | 12,848,400 |
Washington — 0.7% | ||
Seattle Housing Authority Washington, HRB, | ||
Replacement Housing Projects, 6.13%, 12/01/32 | 4,445 | 4,174,744 |
Seattle Housing Authority Washington, RB, | ||
Newholly Project, AMT, 6.25%, 12/01/35 | 2,750 | 2,367,503 |
Washington Health Care Facilities Authority, Refunding RB, | ||
Catholic Health Initiatives, Series D, 6.38%, 10/01/36 | 10,000 | 10,990,500 |
17,532,747 | ||
Wisconsin — 2.0% | ||
State of Wisconsin, Refunding RB, Series A, | ||
6.00%, 5/01/36 | 21,000 | 23,193,660 |
Wisconsin Health & Educational Facilities Authority, RB: | ||
Health Facilities, SSM Health Care, Series A, | ||
5.25%, 6/01/34 | 8,335 | 8,594,719 |
SynergyHealth Inc., 6.00%, 11/15/23 | 5,240 | 5,430,264 |
Wisconsin Health & Educational Facilities Authority, | ||
Refunding RB, Froedtert & Community Health Inc., | ||
5.25%, 4/01/39 | 10,000 | 10,224,500 |
Wisconsin Housing & EDA, RB, Series C, AMT, | ||
6.00%, 9/01/36 | 535 | 557,882 |
48,001,025 | ||
Wyoming — 0.5% | ||
County of Sweetwater Wyoming, Refunding RB, Idaho | ||
Power Co. Project, 5.25%, 7/15/26 | 10,000 | 10,571,800 |
Total Municipal Bonds — 88.0% | 2,066,682,177 | |
Municipal Bonds Transferred to | ||
Tender Option Bond Trusts (h) | ||
Arizona — 1.6% | ||
Salt River Project Agricultural Improvement & Power | ||
District, RB, Series A: | ||
5.00%, 1/01/38 | 10,000 | 10,425,300 |
Salt River Project, 5.00%, 1/01/37 | 13,217 | 13,633,713 |
Salt River Project Agricultural Improvement & Power | ||
District, Refunding RB, Salt River Project, Series A, | ||
5.00%, 1/01/35 | 13,700 | 14,151,963 |
38,210,976 | ||
Arkansas — 0.9% | ||
University of Arkansas, RB, Various Facilities, UAMS | ||
Campus (NPFGC), 5.00%, 3/01/36 | 21,290 | 21,934,235 |
Municipal Bonds Transferred | Par | ||
to Tender Option Bond Trusts (h) | (000) | Value | |
California — 5.0% | |||
Los Angeles Department of Airports, Refunding RB, | |||
Senior, Los Angeles International Airport, Series A, | |||
5.00%, 5/15/40 | $19,510 | $ 19,766,947 | |
Metropolitan Water District of Southern California, RB, | |||
Series A, 5.00%, 1/01/39 | 10,000 | 10,537,800 | |
Metropolitan Water District of Southern California, | |||
Refunding RB: | |||
Series B, 5.00%, 7/01/35 | 9,998 | 10,434,100 | |
Series C, 5.00%, 7/01/35 | 13,375 | 14,098,720 | |
San Diego Community College District California, | |||
GO (AGM): | |||
Election of 2002, 5.00%, 5/01/30 | 20,000 | 20,446,600 | |
Election of 2006, 5.00%, 8/01/32 | 18,000 | 18,595,440 | |
San Francisco City & County Public Utilities Commission, | |||
Refunding RB, Series A, 5.13%, 11/01/39 | 23,000 | 24,249,590 | |
118,129,197 | |||
Indiana — 0.9% | |||
Indiana Finance Authority, RB, Sisters of St. Francis | |||
Health, 5.25%, 11/01/39 | 20,640 | 20,973,542 | |
Nebraska — 0.5% | |||
Omaha Public Power District, RB, Series A, | |||
5.00%, 2/01/43 | 10,000 | 10,345,200 | |
New York — 1.3% | |||
New York State Environmental Facilities Corp., | |||
Refunding RB, Revolving Funds, New York City | |||
Municipal Water Project, Series K, 5.00%, 6/15/28 | 30,000 | 31,300,200 | |
Pennsylvania — 0.9% | |||
Pennsylvania HFA, Refunding RB, Series 105C, | |||
5.00%, 10/01/39 | 19,470 | 19,855,701 | |
Texas — 2.4% | |||
City of Houston Texas, Refunding RB, Combined, | |||
First Lien, Series A (NPFGC), 5.13%, 5/15/28 | 20,000 | 20,829,200 | |
City of San Antonio Texas, RB Refunding: | |||
5.00%, 2/01/32 | 23,819 | 24,983,048 | |
5.00%, 2/01/32 | 181 | 189,592 | |
Dallas Area Rapid Transit, Refunding RB, Senior Lien | |||
(AMBAC), 5.00%, 12/01/36 | 10,535 | 10,873,017 | |
56,874,857 | |||
Total Municipal Bonds Transferred to | |||
Tender Option Bond Trusts — 13.5% | 317,623,908 | ||
Total Long-Term Investments | |||
(Cost — $2,299,957,546) — 101.5% | 2,384,306,085 | ||
Short-Term Securities | Shares | ||
FFI Institutional Tax-Exempt Fund, 0.21% (i)(j) | 115,316,742 | 115,316,742 | |
Total Short-Term Securities | |||
(Cost — $115,316,742) — 4.9% | 115,316,742 | ||
Total Investments (Cost — $2,415,274,288*) — 106.4% | 2,499,622,827 | ||
Other Assets Less Liabilities — 0.1% | 3,909,348 | ||
Liability for Trust Certificates, Including Interest | |||
Expense and Fees Payable — (6.5)% | (153,431,362) | ||
Net Assets — 100.0% | $2,350,100,813 |
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2010, as computed for federal income tax purposes, were as follows:
Aggregate cost | $2,261,156,358 |
Gross unrealized appreciation | $ 100,657,486 |
Gross unrealized depreciation | (15,550,663) |
Net unrealized appreciation | $ 85,106,823 |
See Notes to Financial Statements.
32 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (concluded) BlackRock National Municipal Fund
(a) US government securities, held in escrow, are used to pay interest on this security as
well as to retire the bond in full at the date indicated, typically at a premium to par.
(b) Issuer filed for bankruptcy and/or is in default of interest payments.
(c) Non-income producing security.
(d) Variable rate security. Rate shown is as of report date.
(e) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
(f) Security represents a beneficial interest in a trust. The collateral deposited into the
trust is federally tax-exempt revenue bonds issued by various state or local govern-
ments, or their respective agencies or authorities. The security is subject to remarket-
ing prior to its stated maturity.
(g) When-issued security. Unsettled when-issued transactions were as follows:
Unrealized | ||
Counterparty | Value | Appreciation |
Morgan Stanley | $10,546,410 | $ 46,410 |
Siebert Brandford | $16,074,872 | $ 94,573 |
(h) 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.
(i) Represents the current yield as of report date.
(j) Investments in companies considered to be an affiliate of the Fund during the year,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, are as follows:
Shares Held | Shares Held | |||
at June 30, | Net | at June 30, | ||
Affiliate | 2009 | Activity | 2010 | Income |
BlackRock Florida | ||||
Insured Municipal | ||||
2008 Term Trust, Inc. | — | — | — | $ 3,313 |
FFI Institutional | ||||
Tax-Exempt Fund | 84,654,839 | 30,661,903 | 115,316,742 | $198,019 |
•Financial futures contracts sold as of June 30, 2010 were as follows:
Expiration | Notional | Unrealized | ||
Contracts | Issue | Date | Value | Depreciation |
250 | 10 Year US | |||
Treasury Bond | September 2010 | $30,243,591 | $(393,128) |
•Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, which are as follows:
•Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
•Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
•Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund's own assumptions used in determining the fair value of investments
and derivatives)
The inputs or methodologies used for valuing securities are not necessarily an
indication 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 tables summarize the inputs used as of June 30, 2010 in determining
the fair valuation of the Fund's investments and derivatives:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Assets: | ||||
Investments in | ||||
Securities: | ||||
Long-Term | ||||
Investments1 . | — | $2,384,306,085 | — | $2,384,306,085 |
Short-Term | ||||
Securities | $ 115,316,742 | — | — | 115,316,742 |
Total | $ 115,316,742 | $2,384,306,085 | — | $2,499,622,827 |
1 See above Schedule of Investments for values in each state or
political subdivision.
Derivative Financial Instruments2 | ||||
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Liabilities: | ||||
Interest rate | ||||
contracts | $ (393,128) | — | — | $ (393,128) |
2 Derivative financial instruments are financial futures contracts, which are
shown at the unrealized appreciation/depreciation on the instrument.
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 33
Schedule of Investments June 30, 2010 BlackRock High Yield Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Alabama — 1.2% | �� | |
County of Jefferson Alabama, RB, Series A: | ||
5.25%, 1/01/17 | $ 1,000 | $ 908,600 |
5.25%, 1/01/20 | 500 | 438,865 |
4.75%, 1/01/25 | 260 | 205,990 |
1,553,455 | ||
Arizona — 5.3% | ||
Maricopa County IDA Arizona, RB, Arizona Charter | ||
Schools Project, Series A: | ||
6.63%, 7/01/20 | 140 | 108,339 |
6.75%, 7/01/29 | 300 | 206,709 |
Phoenix IDA Arizona, Refunding RB, America West | ||
Airlines Inc. Project, AMT, 6.30%, 4/01/23 | 1,000 | 766,110 |
Pima County IDA, IDRB, Tucson Electric Power, Series A, | ||
6.38%, 9/01/29 | 780 | 793,081 |
Pima County IDA, RB, American Charter Schools | ||
Foundation, Series A, 5.63%, 7/01/38 | 685 | 603,382 |
Pima County IDA, Refunding IDRB, Tucson Electric Power, | ||
5.75%, 9/01/29 | 290 | 295,075 |
Pima County IDA, Refunding RB, Arizona Charter Schools | ||
Project, Series O, 5.25%, 7/01/31 | 285 | 228,684 |
Queen Creek Improvement District No. 1, Special | ||
Assessment Bonds, 5.00%, 1/01/32 | 500 | 482,130 |
Salt Verde Financial Corp., RB, Senior: | ||
5.00%, 12/01/32 | 750 | 672,630 |
5.00%, 12/01/37 | 3,180 | 2,762,275 |
University Medical Center Corp. Arizona, RB, | ||
6.25%, 7/01/29 | 180 | 191,455 |
7,109,870 | ||
Arkansas — 0.5% | ||
Benton County Public Facilities Board, Refunding RB, | ||
BCCSO Project, Series A, 6.00%, 6/01/40 | 750 | 724,710 |
California — 9.8% | ||
California Health Facilities Financing Authority, | ||
Refunding RB, Series A: | ||
Catholic Healthcare West, 6.00%, 7/01/39 | 265 | 283,823 |
St. Joseph Health System, 5.75%, 7/01/39 | 1,000 | 1,039,140 |
California Pollution Control Financing Authority, RB, | ||
Waste Management Inc. Project, Series C, AMT, | ||
5.13%, 11/01/23 | 750 | 749,872 |
California Pollution Control Financing Authority, | ||
Refunding RB, AMT: | ||
Pacific Gas, Series C (AMBAC), 4.75%, 12/01/23 | 500 | 485,580 |
Waste Management Inc. Project, Series B, | ||
5.00%, 7/01/27 | 1,000 | 995,470 |
California Statewide Communities Development | ||
Authority, RB, John Muir Health, 5.13%, 7/01/39 | 425 | 412,208 |
California Statewide Communities Development | ||
Authority, Refunding RB: | ||
American Baptist Homes of the West, | ||
6.25%, 10/01/39 | 575 | 571,113 |
Senior Living, Southern California, 6.63%, 11/15/24 | 650 | 690,723 |
City of Chula Vista California, Refunding RB, San Diego | ||
Gas & Electric, Series A, 5.88%, 2/15/34 | 500 | 550,800 |
City of Roseville California, Special Tax Bonds, | ||
Fiddyment Ranch Community Facilities District No. 1, | ||
5.25%, 9/01/36 | 465 | 384,234 |
Lammersville School District Community Facilities | ||
District, Special Tax Bonds, District No. 2002, | ||
Mountain House, 5.13%, 9/01/35 | 500 | 394,650 |
Oakland Unified School District Alameda County | ||
California, GO, Election of 2006, Series A, | ||
6.13%, 8/01/29 | 1,000 | 1,053,670 |
Par | |||
Municipal Bonds | (000) | Value | |
California (concluded) | |||
State of California, GO: | |||
4.50%, 10/01/36 | $ 740 | $ 642,394 | |
Various Purpose, 6.00%, 3/01/33 | 1,400 | 1,503,978 | |
Various Purpose, 5.50%, 11/01/39 | 2,500 | 2,534,425 | |
Temecula Public Financing Authority, Special Tax Bonds, | |||
Refunding, Harveston, Sub-Series B, 5.10%, 9/01/36 | 500 | 378,920 | |
Temecula Valley Unified School District Community | |||
Facilities District, Special Tax Bonds, District | |||
No. 2005-1, 5.00%, 9/01/36 | 565 | 458,407 | |
13,129,407 | |||
Connecticut — 1.2% | |||
Harbor Point Infrastructure Improvement District, | |||
Tax Allocation Bonds, Harbor Point Project, Series A, | |||
7.88%, 4/01/39 | 1,050 | 1,109,651 | |
Mohegan Tribe of Indians of Connecticut, RB, Public | |||
Improvement, Priority Distribution, 6.25%, 1/01/31 | 605 | 496,021 | |
1,605,672 | |||
Delaware — 0.5% | |||
Delaware State Housing Authority, Refunding RB, | |||
M/F Mortgage, Series C (HUD), 7.38%, 1/01/15 | 735 | 735,132 | |
District of Columbia — 3.7% | |||
District of Columbia, RB, Methodist Home District of | |||
Columbia, Series A: | |||
7.38%, 1/01/30 | 310 | 314,662 | |
7.50%, 1/01/39 | 500 | 507,980 | |
District of Columbia Tobacco Settlement Financing Corp., | |||
Refunding RB, Asset-Backed, 6.50%, 5/15/33 | 1,510 | 1,445,870 | |
Metropolitan Washington Airports Authority, RB: | |||
CAB, 2nd Senior Lien, Series B (AGC), | |||
6.54%, 10/01/30 (a) | 3,005 | 891,614 | |
First Senior Lien, Series A, 5.00%, 10/01/39 | 85 | 87,146 | |
First Senior Lien, Series A, 5.25%, 10/01/44 | 1,610 | 1,675,704 | |
4,922,976 | |||
Florida — 6.0% | |||
County of Miami-Dade Florida, Refunding RB, Miami | |||
International Airport, Series A-1, 5.38%, 10/01/41 | 315 | 319,060 | |
Florida Housing Finance Corp., HRB, Willow Lake | |||
Apartments, Series J-1, AMT (AMBAC), 5.35%, 7/01/27 | 2,400 | 2,235,144 | |
Highland Meadows Community Development District, | |||
Special Assessment Bonds, Special Assessment, | |||
Series A, 5.50%, 5/01/36 (b)(c) | 490 | 196,328 | |
Hillsborough County IDA, RB: | |||
National Gypsum Co., Series B, AMT, 7.13%, 4/01/30 | 1,250 | 1,173,825 | |
Tampa General Hospital Project, 5.25%, 10/01/41 | 1,000 | 959,920 | |
Jacksonville Economic Development Commission, RB, | |||
Gerdau Ameristeel US Inc., AMT, 5.30%, 5/01/37 | 300 | 243,318 | |
Lee County IDA Florida, RB, Series A, Lee Charter | |||
Foundation, 5.38%, 6/15/37 | 570 | 458,366 | |
New River Community Development District, Special | |||
Assessment Bonds, Series B, 5.00%, 5/01/13 (b)(c) | 500 | 239,950 | |
Santa Rosa Bay Bridge Authority, RB, 6.25%, 7/01/28 | 500 | 272,725 | |
Sarasota County Health Facilities Authority, | |||
Refunding RB, Village On The Isle Project: | |||
5.50%, 1/01/27 | 210 | 191,108 | |
5.50%, 1/01/32 | 190 | 168,557 | |
Sumter Landing Community Development District | |||
Florida, RB, Sub-Series B, 5.70%, 10/01/38 | 825 | 664,612 | |
Tolomato Community Development District, | |||
Special Assessment Bonds, Special Assessment, | |||
6.65%, 5/01/40 | 700 | 571,732 | |
Watergrass Community Development District, Special | |||
Assessment Bonds, Series A, 5.38%, 5/01/39 | 650 | 332,670 | |
8,027,315 |
See Notes to Financial Statements.
34 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (continued) BlackRock High Yield Municipal Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
Georgia — 3.3% | ||
Clayton County Development Authority, RB, Delta | ||
Air Lines Inc. Project, Series A, 8.75%, 6/01/29 | $ 635 | $ 673,811 |
County of Clayton Georgia, Tax Allocation Bonds, | ||
Ellenwood Project, 7.50%, 7/01/33 | 690 | 662,345 |
DeKalb County Hospital Authority Georgia, RB, DeKalb | ||
Medical Center Inc. Project, 6.13%, 9/01/40 | 1,240 | 1,230,589 |
Gainesville & Hall County Development Authority, | ||
Refunding RB, Acts Retirement Life Community, | ||
Series A-2, 6.63%, 11/15/39 | 220 | 228,452 |
Richmond County Development Authority, RB, | ||
International Paper Co. Projects, Series A, AMT, | ||
5.00%, 8/01/30 | 1,000 | 885,180 |
Rockdale County Development Authority, RB, Visy Paper | ||
Project, Series A, AMT, 6.13%, 1/01/34 | 600 | 560,184 |
Thomasville Hospital Authority, RB, Anticipation | ||
Certificates, John D. Archbold, 5.38%, 11/01/40 | 145 | 141,910 |
4,382,471 | ||
Guam — 0.8% | ||
Guam Government Waterworks Authority, Refunding RB, | ||
Water, 6.00%, 7/01/25 | 235 | 240,283 |
Territory of Guam, GO, Series A: | ||
6.00%, 11/15/19 | 100 | 103,691 |
6.75%, 11/15/29 | 150 | 160,629 |
7.00%, 11/15/39 | 160 | 173,794 |
Territory of Guam, RB, Section 30, Series A, | ||
5.63%, 12/01/29 | 440 | 449,495 |
1,127,892 | ||
Idaho — 0.2% | ||
Power County Industrial Development Corp., RB, | ||
FMC Corp. Project, AMT, 6.45%, 8/01/32 | 265 | 266,550 |
Illinois — 3.5% | ||
City of Chicago Illinois, Refunding RB, American | ||
Airlines Inc. Project, 5.50%, 12/01/30 | 1,000 | 732,040 |
Illinois Finance Authority, RB: | ||
MJH Education Assistance IV LLC, Sub-Series A, | ||
5.13%, 6/01/35 (b)(c) | 90 | 49,499 |
Roosevelt University Project, 6.50%, 4/01/44 | 830 | 860,835 |
Illinois Finance Authority, Refunding RB: | ||
Central DuPage Health, Series B, 5.50%, 11/01/39 | 1,000 | 1,036,860 |
Friendship Village of Schaumbu, 7.13%, 2/15/39 | 1,000 | 999,880 |
Swedish Covenant, Series A, 6.00%, 8/15/38 | 1,000 | 1,001,360 |
4,680,474 | ||
Indiana — 1.0% | ||
Indiana Finance Authority, Refunding RB, Improvement, | ||
U.S. Steel Corp., 6.00%, 12/01/26 | 430 | 438,862 |
Indiana Health Facility Financing Authority, Refunding RB, | ||
Methodist Hospital Inc.: | ||
5.38%, 9/15/22 | 185 | 172,648 |
5.50%, 9/15/31 | 525 | 449,400 |
Vigo County Hospital Authority Indiana, RB, Union | ||
Hospital Inc. (d): | ||
5.70%, 9/01/37 | 155 | 143,338 |
5.75%, 9/01/42 | 190 | 174,190 |
1,378,438 | ||
Iowa — 0.3% | ||
Iowa Finance Authority, Refunding RB, Development, | ||
Care Initiatives Project, Series A, 5.00%, 7/01/19 | 500 | 425,075 |
Kansas — 0.6% | ||
City of Lenexa Kansas, Refunding RB, 5.50%, 5/15/39 | 940 | 768,488 |
Par | ||
Municipal Bonds | (000) | Value |
Kentucky — 0.8% | ||
Kentucky Economic Development Finance Authority, | ||
Refunding RB, Owensboro Medical Health System, | ||
Series A, 6.38%, 6/01/40 | $ 1,050 | $ 1,076,681 |
Louisiana — 0.8% | ||
Louisiana Local Government Environmental Facilities & | ||
Community Development Authority, RB, Westlake | ||
Chemical Corp. Projects, 6.75%, 11/01/32 | 1,000 | 1,031,320 |
Maine — 0.6% | ||
Town of Jay Maine, Refunding RB, International Paper Co. | ||
Project, Series A, AMT, 4.90%, 11/01/17 | 750 | 750,705 |
Maryland — 3.9% | ||
County of Howard Maryland, Refunding RB, Vantage | ||
House Facility, Series A, 5.25%, 4/01/33 | 500 | 387,460 |
Gaithersburg Maryland, Refunding RB, Asbury Maryland | ||
Obligation, Series B, 6.00%, 1/01/23 | 750 | 778,590 |
Maryland EDC, RB: | ||
Term Project, Series B, 5.75%, 6/01/35 | 1,500 | 1,534,050 |
Transportation Facilities Project, Series A, | ||
5.75%, 6/01/35 | 265 | 269,595 |
Maryland Health & Higher Educational Facilities | ||
Authority, RB, Washington Christian Academy, | ||
5.25%, 7/01/18 | 250 | 107,495 |
Maryland Health & Higher Educational Facilities | ||
Authority, Refunding RB: | ||
Doctor’s Community Hospital, 5.75%, 7/01/38 | 890 | 843,862 |
University of Maryland Medical System, | ||
5.00%, 7/01/34 | 280 | 281,210 |
Maryland State Energy Financing Administration, RB, | ||
Cogeneration, AES Warrior Run, AMT, 7.40%, 9/01/19 | 1,000 | 1,000,350 |
5,202,612 | ||
Massachusetts — 0.6% | ||
Massachusetts Development Finance Agency, RB, | ||
Linden Ponds Inc. Facility, Series A, 5.75%, 11/15/35 | 500 | 368,325 |
Massachusetts Development Finance Agency, | ||
Refunding RB, Eastern Nazarene College, | ||
5.63%, 4/01/29 | 500 | 421,405 |
789,730 | ||
Michigan — 1.7% | ||
Advanced Technology Academy, RB, 6.00%, 11/01/37 | 275 | 248,446 |
County of Wayne Michigan, GO, Building Improvement, | ||
Series A, 6.75%, 11/01/39 | 175 | 184,844 |
Garden City Hospital Finance Authority Michigan, | ||
Refunding RB, Garden City Hospital Obligation, | ||
Series A, 5.00%, 8/15/38 | 310 | 207,024 |
Michigan State Hospital Finance Authority, Refunding RB, | ||
Hospital, Henry Ford Health, 5.75%, 11/15/39 | 585 | 574,376 |
Royal Oak Hospital Finance Authority Michigan, | ||
Refunding RB, William Beaumont Hospital, | ||
8.25%, 9/01/39 | 915 | 1,087,322 |
2,302,012 | ||
Mississippi — 1.1% | ||
Mississippi Business Finance Corp., Refunding RB, | ||
System Energy Resource Inc. Project, 5.90%, 5/01/22 | 1,500 | 1,501,845 |
Missouri — 0.8% | ||
City of Kansas City Missouri, Tax Allocation Bonds, | ||
Kansas City MainCor Project, Series A, 5.25%, 3/01/18 | 600 | 592,512 |
Kirkwood IDA Missouri, RB, Aberdeen Heights, Series A, | ||
8.25%, 5/15/39 | 435 | 434,930 |
1,027,442 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 35
Schedule of Investments (continued) BlackRock High Yield Municipal Fund
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Multi-State — 0.2% | |||
MuniMae TE Bond Subsidiary LLC, | |||
7.50%, 6/30/49 (d)(e) | $ 288 | $ 267,193 | |
Nevada — 2.2% | |||
County of Clark Nevada, RB: | |||
Series B, 5.75%, 7/01/42 | 2,800 | 2,963,828 | |
Southwest Gas Corp. Project, Series A, AMT (FGIC), | |||
4.75%, 9/01/36 | 20 | 16,811 | |
2,980,639 | |||
New Hampshire — 1.0% | |||
New Hampshire Health & Education Facilities Authority, | |||
Refunding RB: | |||
Dartmouth-Hitchcock, 6.00%, 8/01/38 | 435 | 460,569 | |
Havenwood-Heritage Heights, Series A, | |||
5.40%, 1/01/30 | 950 | 841,149 | |
1,301,718 | |||
New Jersey — 4.5% | |||
Burlington County Bridge Commission, Refunding RB, | |||
The Evergreens Project, 5.63%, 1/01/38 | 750 | 647,633 | |
New Jersey EDA, RB: | |||
Cigarette Tax, 5.50%, 6/15/24 | 675 | 665,104 | |
Continental Airlines Inc. Project, AMT, 6.63%, 9/15/12 | 490 | 491,279 | |
Continental Airlines Inc. Project, AMT, 6.40%, 9/15/23 | 1,000 | 947,870 | |
New Jersey EDA, Refunding RB, Seabrook Village Inc. | |||
Facility, 5.25%, 11/15/36 | 500 | 407,090 | |
New Jersey Educational Facilities Authority, Refunding RB, | |||
University of Medicine & Dentistry, Series B, | |||
7.13%, 12/01/23 | 580 | 672,864 | |
New Jersey Health Care Facilities Financing | |||
Authority, RB, Pascack Valley Hospital Association, | |||
6.63%, 7/01/36 (b)(c) | 650 | 7 | |
New Jersey Health Care Facilities Financing Authority, | |||
Refunding RB: | |||
South Jersey Hospital, 5.00%, 7/01/46 | 125 | 119,155 | |
St. Joseph’s Healthcare System, 6.63%, 7/01/38 | 725 | 748,359 | |
Tobacco Settlement Financing Corp. New Jersey, | |||
Refunding RB, Series 1A, 5.00%, 6/01/41 | 2,090 | 1,363,662 | |
6,063,023 | |||
New York — 4.7% | |||
Brooklyn Arena Local Development Corp., RB, Barclays | |||
Center Project, 6.38%, 7/15/43 | 1,315 | 1,358,198 | |
Chautauqua County Industrial Development Agency, RB, | |||
NRG Dunkirk Power Project, 5.88%, 4/01/42 | 1,115 | 1,139,352 | |
Genesee County Industrial Development Agency | |||
New York, Refunding RB, United Memorial Medical | |||
Center Project, 5.00%, 12/01/32 | 500 | 407,530 | |
Hudson Yards Infrastructure Corp., RB, Series A, | |||
5.00%, 2/15/47 | 1,000 | 974,050 | |
New York City Industrial Development Agency, RB, AMT: | |||
American Airlines Inc., JFK International Airport, | |||
8.00%, 8/01/28 | 235 | 245,638 | |
JetBlue Airways Corp. Project, 5.13%, 5/15/30 | 750 | 579,570 | |
New York Liberty Development Corp., RB, National Sports | |||
Museum Project, Series A, 6.13%, 2/15/19 (b)(c) | 1,000 | 10 | |
Westchester County Industrial Development Agency | |||
New York, MRB, Kendal on Hudson Project, Series A, | |||
6.38%, 1/01/24 | 1,250 | 1,234,663 | |
Yonkers Industrial Development Agency New York, | |||
RB, Sarah Lawrence College Project, Series A, | |||
6.00%, 6/01/41 | 410 | 428,097 | |
6,367,108 |
Par | |||
Municipal Bonds | (000) | Value | |
North Carolina — 1.2% | |||
North Carolina Medical Care Commission, Refunding RB: | |||
Carolina Village Project, 6.00%, 4/01/38 | $ 1,000 | $ 850,300 | |
First Mortgage, Deerfield, Series A, 6.00%, 11/01/33 | 800 | 788,080 | |
1,638,380 | |||
North Dakota — 0.2% | |||
County of Ward North Dakota, Refunding RB, Trinity | |||
Obligated Group, 5.13%, 7/01/29 | 250 | 222,798 | |
Ohio — 0.4% | |||
Buckeye Tobacco Settlement Financing Authority, RB, | |||
Asset-Backed, Senior Series A-2, 6.50%, 6/01/47 | 760 | 596,266 | |
Pennsylvania — 3.8% | |||
Allegheny County Hospital Development Authority, | |||
Refunding RB, Health System, West Penn, Series A, | |||
5.38%, 11/15/40 | 2,140 | 1,612,469 | |
Cumberland County Municipal Authority, RB, Diakon | |||
Lutheran, 6.38%, 1/01/39 | 2,335 | 2,380,206 | |
Montgomery County Higher Education & Health Authority, | |||
Refunding RB, Abington Memorial Hospital, Series A, | |||
5.13%, 6/01/33 | 225 | 222,448 | |
New Morgan IDA Pennsylvania, RB, New Morgan | |||
Landfill Co., Inc. Project, AMT, 6.50%, 4/01/19 | 515 | 515,335 | |
Pennsylvania Higher Educational Facilities Authority, | |||
Refunding RB, Allegheny Delaware Valley Obligation, | |||
Series A (NPFGC), 5.88%, 11/15/21 | 335 | 324,323 | |
5,054,781 | |||
Puerto Rico — 2.6% | |||
Commonwealth of Puerto Rico, GO, Refunding, Public | |||
Improvement, Series C, 6.00%, 7/01/39 | 1,560 | 1,646,518 | |
Puerto Rico Electric Power Authority, RB, Series WW, | |||
5.50%, 7/01/38 | 1,000 | 1,018,780 | |
Puerto Rico Sales Tax Financing Corp., RB, First | |||
Sub-Series A, 6.50%, 8/01/44 | 750 | 832,462 | |
3,497,760 | |||
Rhode Island — 0.7% | |||
Rhode Island Housing & Mortgage Finance Corp., | |||
RB, Homeownership Opportunity, Series 53B, AMT, | |||
5.00%, 10/01/46 | 1,000 | 949,500 | |
South Carolina — 1.0% | |||
City of Myrtle Beach South Carolina, Tax Allocation | |||
Bonds, Myrtle Beach Air Force Base, Series A, | |||
5.25%, 10/01/26 | 500 | 367,700 | |
Connector 2000 Association Inc., RB, CAB, Senior | |||
Series B, 9.68%, 1/01/15 (a)(b)(c) | 1,000 | 128,000 | |
South Carolina Jobs-EDA, Refunding RB: | |||
First Mortgage, Lutheran Homes, 5.50%, 5/01/28 | 600 | 525,084 | |
Palmetto Health, 5.50%, 8/01/26 | 290 | 287,784 | |
1,308,568 | |||
Tennessee — 0.9% | |||
Tennessee Energy Acquisition Corp., RB, Series A, | |||
5.25%, 9/01/26 | 1,250 | 1,194,800 | |
Texas — 12.6% | |||
Alliance Airport Authority Texas, Refunding RB, | |||
FedEx Corp. Project, AMT, 4.85%, 4/01/21 | 2,295 | 2,243,340 | |
Bexar County Health Facilities Development Corp., RB, | |||
Army Retirement Residence Project, 6.20%, 7/01/45 | 1,320 | 1,332,725 | |
Brazos River Authority, RB, TXU Electric, Series A, AMT, | |||
8.25%, 10/01/30 | 750 | 414,690 | |
Central Texas Regional Mobility Authority, RB: | |||
CAB, 7.48%, 1/01/28 (a) | 3,000 | 969,330 | |
CAB, 7.56%, 1/01/29 (a) | 500 | 150,375 | |
CAB, 7.65%, 1/01/30 (a) | 1,330 | 364,393 | |
Senior Lien, 5.75%, 1/01/25 | 295 | 298,661 |
See Notes to Financial Statements.
36 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (continued) BlackRock High Yield Municipal Fund
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
Texas (concluded) | |||
City of Houston Texas, RB: | |||
Senior Lien, Series A, 5.50%, 7/01/39 | $ 120 | $ 128,322 | |
Special Facilities, Continental Airlines, Series E, | |||
AMT, 6.75%, 7/01/21 | 630 | 618,521 | |
Special Facilities, Continental Airlines, Series E, | |||
AMT, 7.38%, 7/01/22 | 500 | 503,355 | |
Dallas-Fort Worth International Airport Facilities | |||
Improvement Corp., Refunding RB, American | |||
Airlines Inc. Project, AMT, 5.50%, 11/01/30 | 1,000 | 690,020 | |
Danbury Higher Education Authority Inc., RB, | |||
A.W. Brown Fellowship Charter, Series A (ACA), | |||
5.00%, 8/15/26 | 355 | 406,578 | |
Matagorda County Navigation District No. 1 Texas, | |||
Refunding RB, Central Power & Light Co. Project, | |||
Series A, 6.30%, 11/01/29 | 290 | 314,447 | |
North Texas Tollway Authority, RB, Toll, 2nd Tier, Series F, | |||
6.13%, 1/01/31 | 1,150 | 1,221,783 | |
Tarrant County Cultural Education Facilities Finance | |||
Corp., RB: | |||
CC Young Memorial Home, Series A, 8.00%, 2/15/38 | 330 | 327,845 | |
Senior Living Center Project, Series A, | |||
8.25%, 11/15/44 | 800 | 795,352 | |
Tarrant County Cultural Education Facilities Finance | |||
Corp., Refunding RB, Northwest Senior Housing, | |||
Edgemere Project, Series A, 6.00%, 11/15/36 | 1,500 | 1,429,410 | |
Texas Private Activity Bond Surface Transportation | |||
Corp., RB, Senior Lien: | |||
LBJ Infrastructure, 7.00%, 6/30/40 | 1,320 | 1,328,290 | |
Note Mobility, 6.88%, 12/31/39 | 1,740 | 1,768,466 | |
Texas State Public Finance Authority, Refunding, ERB, | |||
KIPP Inc., Series A (ACA): | |||
5.00%, 2/15/28 | 680 | 626,749 | |
5.00%, 2/15/36 | 1,000 | 879,380 | |
16,812,032 | |||
Virginia — 4.9% | |||
Albemarle County IDA, Refunding RB, Westminster- | |||
Canterbury, 5.00%, 1/01/31 | 900 | 806,355 | |
Chesterfield County EDA, Refunding RB, Virginia | |||
Electric & Power, Series A, 5.00%, 5/01/23 | 1,000 | 1,071,460 | |
City of Norfolk Virginia, Refunding RB, Series B (AMBAC), | |||
5.50%, 2/01/31 | 260 | 256,209 | |
Fairfax County EDA, Refunding RB: | |||
Goodwin House Inc., 5.13%, 10/01/37 | 1,000 | 963,670 | |
Goodwin House Inc., 5.13%, 10/01/42 | 300 | 286,995 | |
Retirement, Greenspring, Series A, 4.88%, 10/01/36 | 500 | 420,850 | |
Lexington IDA, Refunding MRB, Kendal at Lexington, | |||
Series A, 5.38%, 1/01/28 | 210 | 177,404 | |
Tobacco Settlement Financing Corp. Virginia, | |||
Refunding RB, Senior Series B1, 5.00%, 6/01/47 | 2,770 | 1,779,503 | |
Watkins Centre Community Development Authority, RB, | |||
5.40%, 3/01/20 | 750 | 727,965 | |
6,490,411 | |||
Wisconsin —1.2% | |||
Wisconsin Health & Educational Facilities Authority, RB, | |||
Wheaton Franciscan Healthcare, 5.25%, 8/15/34 | 1,565 | 1,421,802 | |
Wisconsin Health & Educational Facilities Authority, | |||
Refunding RB, St. John’s Communities Inc., Series A: | |||
7.25%, 9/15/29 | 75 | 76,937 | |
7.63%, 9/15/39 | 145 | 150,873 | |
1,649,612 | |||
Total Municipal Bonds — 90.3% | 120,914,861 |
Municipal Bonds Transferred to | Par | |
Tender Option Bond Trusts (f) | (000) | Value |
California — 1.7% | ||
Bay Area Toll Authority, Refunding RB, San Francisco | ||
Bay Area, Series F-1, 5.63%, 4/01/44 | $ 480 | $ 522,748 |
Los Angeles Department of Airports, Refunding RB, | ||
Senior, Los Angeles International Airport, Series A, | ||
5.00%, 5/15/40 | 1,680 | 1,702,126 |
2,224,874 | ||
District of Columbia —0.8% | ||
District of Columbia Water & Sewer Authority, RB, | ||
Series A, 6.00%, 10/01/35 | 950 | 1,066,901 |
New York — 1.3% | ||
New York State Dormitory Authority, ERB, Series F, | ||
5.00%, 3/15/35 | 1,710 | 1,760,284 |
Ohio — 3.2% | ||
County of Allen Ohio, Refunding RB, Catholic Healthcare, | ||
Series A, 5.25%, 6/01/38 | 2,200 | 2,245,958 |
State of Ohio, Refunding RB, Cleveland Clinic Health, | ||
Series A, 5.50%, 1/01/39 | 2,000 | 2,099,640 |
4,345,598 | ||
South Carolina — 1.5% | ||
South Carolina State Housing Finance & Development | ||
Authority, Refunding RB, Series B-1, 5.55%, 7/01/39 | 1,949 | 2,013,205 |
Virginia — 1.6% | ||
Virginia HDA, RB, Sub-Series H-1 (NPFGC), | ||
5.38%, 7/01/36 | 2,110 | 2,124,812 |
Wisconsin — 1.7% | ||
Wisconsin Health & Educational Facilities Authority, | ||
Refunding RB, Froedtert & Community Health Inc., | ||
5.25%, 4/01/39 | 2,179 | 2,228,440 |
Total Municipal Bonds Transferred to | ||
Tender Option Bond Trusts — 11.8% | 15,764,114 | |
Total Long-Term Investments | ||
(Cost — $140,033,049) — 102.1% | 136,678,975 | |
Short-Term Securities | Shares | |
FFI Institutional Tax-Exempt Fund, 0.21% (g)(h) | 1,632,976 | 1,632,976 |
Total Short-Term Securities | ||
(Cost — $1,632,976) — 1.2% | 1,632,976 | |
Total Investments (Cost — $141,666,025*) — 103.3% | 138,311,951 | |
Other Assets Less Liabilities — 2.6% | 3,419,063 | |
Liability for Trust Certificates, Including Interest | ||
Expense and Fees Payable — (5.9)% | (7,920,136) | |
Net Assets — 100.0% | $ 133,810,878 |
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2010, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 133,600,253 |
Gross unrealized appreciation | $ 4,637,234 |
Gross unrealized depreciation | (7,839,402) |
Net unrealized depreciation | $ (3,202,168) |
(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(b) Issuer filed for bankruptcy and/or is in default of interest payments.
(c) Non-income producing security.
(d) Security exempt from registration under Rule 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration to qualified
institutional investors.
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 37
Schedule of Investments (concluded) BlackRock High Yield Municipal Fund
(e) Security represents a beneficial interest in a trust. The collateral deposited into the
trust is federally tax-exempt revenue bonds issued by various state or local govern-
ments, or their respective agencies or authorities. The security is subject to remarket-
ing prior to its stated maturity.
(f) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Fund acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(g) Investments in companies considered to be an affiliate of the Fund during the year,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:
Shares Held | Shares Held | |||
at June 30, | Net | at June 30, | ||
Affiliate | 2009 | Activity | 2010 | Income |
FFI Institutional | ||||
Tax-Exempt Fund | 1,500,503 | 132,473 | 1,632,976 | $ 6,262 |
(h) Represents the current yield as of report date.
•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 assets
and liabilities
•Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
•Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including
the Fund’s own assumptions used in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an
indication 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 June 30, 2010 in determining
the fair valuation of the Fund’s investments:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Assets: | ||||
Investments in | ||||
Securities: | ||||
Long-Term | ||||
Investments1 . | — | $ 136,678,975 | — | $ 136,678,975 |
Short-Term | ||||
Securities | $ 1,632,976 | — | — | 1,632,976 |
Total | $ 1,632,976 | $ 136,678,975 | — | $ 138,311,951 |
1 See above Schedule of Investments for values in each state or
political classification.
See Notes to Financial Statements.
38 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments June 30, 2010 BlackRock New York Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par | |||
Municipal Bonds | (000) | Value | |
New York — 83.8% | |||
Corporate — 10.5% | |||
Chautauqua County Industrial Development Agency, RB, | |||
NRG Dunkirk Power Project, 5.88%, 4/01/42 | $ 1,000 | $ 1,021,840 | |
Essex County Industrial Development Agency New York, | |||
RB, International Paper Co. Project, Series A, AMT, | |||
6.63%, 9/01/32 | 350 | 365,302 | |
Jefferson County Industrial Development Agency | |||
New York, Refunding RB, Solid Waste, Series A, AMT, | |||
5.20%, 12/01/20 | 250 | 247,220 | |
New York City Industrial Development Agency, RB, AMT: | |||
1990 American Airlines Inc. Project, 5.40%, 7/01/20 | 3,500 | 2,726,955 | |
American Airlines Inc., JFK International Airport, | |||
7.75%, 8/01/31 | 2,000 | 2,060,180 | |
British Airways Plc Project, 5.25%, 12/01/32 | 1,000 | 741,080 | |
Continental Airlines Inc. Project, 8.00%, 11/01/12 | 945 | 939,415 | |
Continental Airlines Inc. Project, Mandatory | |||
Put Bonds, 8.38%, 11/01/16 | 250 | 245,890 | |
New York City Industrial Development Agency, | |||
Refunding RB, Terminal One Group Association Project, | |||
AMT, 5.50%, 1/01/24 | 2,500 | 2,548,650 | |
New York Liberty Development Corp., RB, Goldman | |||
Sachs Headquarters: | |||
5.25%, 10/01/35 | 5,100 | 5,125,194 | |
5.50%, 10/01/37 | 405 | 421,714 | |
New York State Energy Research & Development | |||
Authority, Refunding RB, Central Hudson Gas, Series A | |||
(AMBAC), 5.45%, 8/01/27 | 2,000 | 2,004,940 | |
Suffolk County Industrial Development Agency New York, | |||
RB, KeySpan, Port Jefferson, AMT, 5.25%, 6/01/27 | 1,360 | 1,331,590 | |
Suffolk County Industrial Development Agency New York, | |||
Refunding RB, Ogden Martin System Huntington, AMT | |||
(AMBAC), 6.25%, 10/01/12 | 7,155 | 7,762,960 | |
27,542,930 | |||
County/City/Special District/School District — 12.7% | |||
Amherst Development Corp., RB, UBF Faculty-Student | |||
Housing Corp., Series A (AGM), 4.63%, 10/01/40 | 555 | 542,146 | |
Brooklyn Arena Local Development Corp., RB, Barclays | |||
Center Project, 6.38%, 7/15/43 | 200 | 206,570 | |
City of New York New York, GO, Sub-Series I-1, | |||
5.38%, 4/01/36 | 2,650 | 2,853,785 | |
Hudson Yards Infrastructure Corp., RB, Series A: | |||
5.00%, 2/15/47 | 3,250 | 3,165,662 | |
(FGIC), 5.00%, 2/15/47 | 1,000 | 974,050 | |
(NPFGC), 4.50%, 2/15/47 | 930 | 839,539 | |
New York City Industrial Development Agency, RB, PILOT: | |||
CAB, Yankee Stadium (AGC), 6.00%, 3/01/42 (a) | 5,000 | 761,850 | |
CAB, Yankee Stadium (AGC), 6.44%, 3/01/43 (a) | 2,000 | 286,260 | |
Queens Baseball Stadium (AGC), 6.50%, 1/01/46 | 700 | 775,068 | |
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/36 | 1,970 | 1,744,790 | |
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39 | 1,250 | 1,097,225 | |
Queens Baseball Stadium (AMBAC), 5.00%, 1/01/46 | 2,750 | 2,380,098 | |
New York City Transitional Finance Authority, RB: | |||
Fiscal 2008, Series S-1, 4.50%, 1/15/38 | 500 | 489,930 | |
Fiscal 2009, Series S-1, 5.63%, 7/15/38 | 200 | 219,418 | |
Fiscal 2009, Series S-3, 5.25%, 1/15/39 | 2,100 | 2,233,602 | |
Series S-2 (NPFGC), 4.50%, 1/15/31 | 1,250 | 1,249,975 | |
New York Convention Center Development Corp., RB, | |||
Hotel Unit Fee Secured (AMBAC): | |||
5.00%, 11/15/35 | 4,450 | 4,460,146 | |
5.00%, 11/15/44 | 990 | 990,406 | |
New York State Dormitory Authority, RB, State University | |||
Dormitory Facilities, Series A: | |||
5.25%, 7/01/29 | 5 | 5,414 | |
5.00%, 7/01/39 | 750 | 783,720 |
Par | |||
Municipal Bonds | (000) | Value | |
New York (continued) | |||
County/City/Special District/School District (concluded) | |||
Niagara County Industrial Development Agency, | |||
Refunding RB, Series A, Mandatory Put Bonds, AMT, | |||
5.45%, 11/15/26 | $ 3,975 | $ 4,078,787 | |
North Country Development Authority, Refunding RB | |||
(AGM), 6.00%, 5/15/15 | 760 | 841,563 | |
Sachem Central School District of Holbrook New York, | |||
GO, Series B (NPFGC): | |||
5.00%, 10/15/25 | 1,000 | 1,127,630 | |
5.00%, 10/15/29 | 1,300 | 1,465,919 | |
33,573,553 | |||
Education — 13.5% | |||
City of Troy New York, Refunding RB, Rensselaer | |||
Polytechnic, Series A, 5.13%, 9/01/40 | 3,375 | 3,426,907 | |
Hempstead Town Industrial Development Agency, RB, | |||
Adelphi University Civic Facility: | |||
5.75%, 6/01/22 | 1,700 | 1,752,785 | |
5.50%, 6/01/32 | 2,250 | 2,279,700 | |
Madison County Industrial Development Agency | |||
New York, RB, Commons II LLC, Student Housing, | |||
Series A (CIFG), 5.00%, 6/01/33 | 400 | 380,604 | |
Nassau County Industrial Development Agency, | |||
Refunding RB, New York Institute Of Technology Project, | |||
Series A, 4.75%, 3/01/26 | 1,000 | 985,810 | |
New York City Industrial Development Agency, RB: | |||
Lycee Francais de New York Project, | |||
Series A (ACA), 5.50%, 6/01/15 | 250 | 265,315 | |
Lycee Francais de New York Project, | |||
Series A (ACA), 5.38%, 6/01/23 | 195 | 199,508 | |
Series C, 6.80%, 6/01/28 | 2,500 | 2,622,250 | |
New York City Industrial Development Agency, | |||
Refunding RB, Polytechnic University Project (ACA), | |||
5.25%, 11/01/37 | 750 | 679,470 | |
New York Liberty Development Corp., RB, National Sports | |||
Museum Project, Series A, 6.13%, 2/15/19 (b)(c) | 1,000 | 10 | |
New York State Dormitory Authority, RB: | |||
5.83%, 7/01/39 (d) | 1,150 | 959,595 | |
Mount Sinai School of Medicine, 5.13%, 7/01/39 | 1,800 | 1,804,500 | |
Mount Sinai School of Medicine at NYU (NPFGC), | |||
4.50%, 7/01/37 | 335 | 303,158 | |
New York University, Series 1 (AMBAC), | |||
5.50%, 7/01/40 | 1,000 | 1,177,520 | |
Rochester Institute of Technology, Series A, | |||
6.00%, 7/01/33 | 1,000 | 1,101,280 | |
Rochester University, Series A, 5.13%, 7/01/14 (e) | 1,500 | 1,739,625 | |
Rochester University, Series A, 5.25%, 7/01/23 | 250 | 262,680 | |
University of Rochester, Series A, 5.13%, 7/01/39 | 1,015 | 1,060,766 | |
Vassar College, 5.00%, 7/01/49 | 825 | 856,919 | |
New York State Dormitory Authority, Refunding RB: | |||
Brooklyn Law School, 5.75%, 7/01/33 | 475 | 512,715 | |
Teachers College, 5.50%, 3/01/39 | 850 | 894,192 | |
Schenectady County Industrial Development Agency, | |||
Refunding RB, Union College Project, 5.00%, 7/01/31 | 2,900 | 2,998,658 | |
Suffolk County Industrial Development Agency, | |||
Refunding RB, New York Institute of Technology Project, | |||
5.00%, 3/01/26 | 750 | 752,115 | |
Trust for Cultural Resources, RB, Series A: | |||
Carnegie Hall, 4.75%, 12/01/39 | 1,550 | 1,554,619 | |
Carnegie Hall, 5.00%, 12/01/39 | 1,325 | 1,354,918 | |
Juilliard School, 5.00%, 1/01/39 | 1,050 | 1,114,166 | |
Utica Industrial Development Agency New York, RB: | |||
Munson-Williams-Proctor Arts Institute, | |||
5.38%, 7/15/20 | 1,000 | 1,020,860 | |
Munson-Williams-Proctor Arts Institute, | |||
5.40%, 7/15/30 | 1,210 | 1,224,399 | |
Utica College Project, Series A, 5.75%, 8/01/28 | 1,470 | 1,317,679 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 39
Schedule of Investments (continued) BlackRock New York Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
New York (continued) | ||
Education (concluded) | ||
Yonkers Industrial Development Agency New York, | ||
RB, Sarah Lawrence College Project, Series A, | ||
6.00%, 6/01/41 | $ 1,000 | $ 1,044,140 |
35,646,863 | ||
Health — 14.8% | ||
Dutchess County Industrial Development Agency | ||
New York, RB, St. Francis Hospital, Series B, | ||
7.25%, 3/01/19 | 900 | 911,718 |
Erie County Industrial Development Agency, RB, | ||
Episcopal Church Home, Series A: | ||
5.88%, 2/01/18 | 1,265 | 1,265,607 |
6.00%, 2/01/28 | 375 | 375,019 |
Genesee County Industrial Development Agency New York, | ||
Refunding RB, United Memorial Medical Center Project: | ||
5.00%, 12/01/27 | 500 | 428,230 |
5.00%, 12/01/32 | 1,080 | 880,265 |
Nassau County Industrial Development Agency, | ||
Refunding RB, Special Needs Facilities Pooled Program, | ||
Series F-1 (ACA), 4.90%, 7/01/21 | 525 | 444,355 |
New York City Industrial Development Agency, RB: | ||
A Very Special Place Inc. Project, Series A, | ||
6.13%, 1/01/13 | 275 | 273,212 |
A Very Special Place Inc. Project, Series A, | ||
7.00%, 1/01/33 | 1,600 | 1,540,512 |
PSCH Inc. Project, 6.38%, 7/01/33 | 6,000 | 5,282,040 |
Special Needs Facilities Pooled Program, Series A-1, | ||
6.50%, 7/01/17 | 1,000 | 985,460 |
Special Needs Facilities Pooled Program, Series C-1, | ||
6.50%, 7/01/17 | 2,540 | 2,503,068 |
New York City Industrial Development Agency, Refunding | ||
RB, Special Needs Facilities Pooled Program (ACA): | ||
Series A-1, 4.38%, 7/01/20 | 1,000 | 817,760 |
Series A-1, 4.50%, 7/01/30 | 210 | 148,733 |
Series C-1, 5.10%, 7/01/31 | 525 | 399,394 |
New York State Dormitory Authority, RB: | ||
Hudson Valley Hospital (BHAC), 5.00%, 8/15/36 | 750 | 783,765 |
NYU Hospital Center, Series B, 5.63%, 7/01/37 | 530 | 544,644 |
New York & Presbyterian Hospital (AGM), | ||
5.00%, 8/15/36 | 1,000 | 1,015,570 |
New York State Association for Retarded | ||
Children, Inc., Series B (AMBAC), 6.00%, 7/01/32 | 700 | 747,110 |
North Shore-Long Island Jewish Health System, | ||
Series A, 5.50%, 5/01/37 | 1,675 | 1,718,466 |
North Shore-Long Island Jewish Health System, | ||
Series A, 5.75%, 5/01/37 | 1,725 | 1,800,089 |
New York State Dormitory Authority, Refunding RB: | ||
Mount Sinai Hospital, Series A, 5.00%, 7/01/26 | 1,635 | 1,675,090 |
North Shore-Long Island Jewish Health System, | ||
Series E, 5.50%, 5/01/33 | 1,000 | 1,025,230 |
Orange County Industrial Development Agency | ||
New York, RB, Special Needs Facilities Pooled Program, | ||
Series G-1 (ACA), 4.90%, 7/01/21 | 845 | 715,200 |
Suffolk County Industrial Development Agency | ||
New York, RB: | ||
Huntington Hospital Project, Series B, | ||
5.88%, 11/01/32 | 2,000 | 2,011,720 |
Special Needs Facilities Pooled Program, Series D-1, | ||
6.50%, 7/01/17 | 135 | 133,037 |
Special Needs Facilities Pooled Program, Series D-1 | ||
(ACA), 4.90%, 7/01/21 | 330 | 279,309 |
Sullivan County Industrial Development Agency | ||
New York, RB, Special Needs Facilities Pooled Program, | ||
Series H-1 (ACA), 4.90%, 7/01/21 | 330 | 279,309 |
Par | |||
Municipal Bonds | (000) | Value | |
New York (continued) | |||
Health (concluded) | |||
Tompkins County Industrial Development Agency New York, | |||
Refunding RB, Continuing Care Retirement Community, | |||
Kendal at Ithaca Project, Series A-2: | |||
5.75%, 7/01/18 | $ 900 | $ 900,675 | |
6.00%, 7/01/24 | 1,000 | 1,000,320 | |
Westchester County Industrial Development Agency | |||
New York, MRB, Kendal on Hudson Project, Series A: | |||
6.50%, 1/01/13 (e) | 5,200 | 5,903,768 | |
6.38%, 1/01/24 | 1,000 | 987,730 | |
Westchester County Industrial Development Agency | |||
New York, RB, Special Needs Facilities Pooled Program, | |||
Series E-1 (ACA), 4.90%, 7/01/21 | 350 | 296,236 | |
Yonkers Industrial Development Agency New York, RB, | |||
Sacred Heart Associations Project, Series A, AMT | |||
(SONYMA), 5.00%, 10/01/37 | 1,000 | 950,010 | |
39,022,651 | |||
Housing — 6.2% | |||
Monroe County Industrial Development Agency, | |||
IDRB, Southview Towers Project, AMT (SONYMA), | |||
6.25%, 2/01/31 | 1,000 | 1,010,750 | |
New York City Housing Development Corp., RB: | |||
The Animal Medical Center, Series A, | |||
5.50%, 12/01/33 | 2,485 | 2,488,230 | |
Series A, AMT, 5.50%, 11/01/34 | 2,500 | 2,519,300 | |
Series C, AMT, 5.05%, 11/01/36 | 1,220 | 1,160,269 | |
New York Mortgage Agency, Refunding RB, AMT: | |||
Series 133, 4.95%, 10/01/21 | 395 | 401,032 | |
Series 143, 4.90%, 10/01/37 | 1,860 | 1,786,883 | |
New York State HFA, RB, AMT, Series A: | |||
Division Street (SONYMA), 5.10%, 2/15/38 | 875 | 875,858 | |
Highland Avenue Senior Apartments (SONYMA), | |||
5.00%, 2/15/39 | 2,000 | 1,859,520 | |
Kensico Terrace Apartments (SONYMA), | |||
4.90%, 2/15/38 | 645 | 618,587 | |
M/F Housing, Watergate II, 4.75%, 2/15/34 | 580 | 556,893 | |
Yonkers Economic Development Corp., Refunding RB, | |||
Riverview II (Freddie Mac), 4.50%, 5/01/25 | 3,000 | 2,999,820 | |
16,277,142 | |||
State — 6.5% | |||
New York Municipal Bond Bank Agency, RB, Series C, | |||
5.25%, 12/01/22 | 1,000 | 1,051,260 | |
New York State Dormitory Authority, LRB, Municipal | |||
Health Facilities, Sub-Series 2-4, 4.75%, 1/15/30 | 2,100 | 2,101,281 | |
New York State Dormitory Authority, RB, Mental Health | |||
Services Facilities Improvement, Series A (AGM), | |||
5.00%, 2/15/22 | 1,000 | 1,076,500 | |
New York State Dormitory Authority, Refunding RB, | |||
Upstate Community Colleges, Series B, 5.25%, 7/01/21 | 1,565 | 1,691,390 | |
New York State Thruway Authority, Refunding RB, | |||
Series A-1, 5.00%, 4/01/29 | 1,000 | 1,062,540 | |
New York State Urban Development Corp., RB, | |||
State Personal Income Tax, Series B, 5.00%, 3/15/37 | 2,000 | 2,077,160 | |
New York State Urban Development Corp., Refunding RB: | |||
Clarkson Center for Advance Materials, | |||
5.50%, 1/01/20 | 1,685 | 1,945,130 | |
University Facilities Grants, 5.50%, 1/01/19 | 3,500 | 4,052,790 | |
State of New York, GO, Series A, 5.00%, 2/15/39 | 1,950 | 2,037,399 | |
17,095,450 | |||
Tobacco — 2.4% | |||
Chautauqua Tobacco Asset Securitization Corp. | |||
New York, RB, 6.75%, 7/01/40 | 1,000 | 1,001,660 | |
Nassau County Tobacco Settlement Corp., Refunding RB, | |||
Asset-Backed, Senior Series A-3, 5.00%, 6/01/35 | 2,000 | 1,560,580 |
See Notes to Financial Statements.
40 ANNUAL REPORT JUNE 30, 2010
Schedule of Investments (continued) BlackRock New York Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
New York (concluded) | ||
Tobacco (concluded) | ||
New York Counties Tobacco Trust I, RB, Tobacco Pass Thru, | ||
Series B: | ||
6.50%, 6/01/35 | $ 750 | $ 740,835 |
6.63%, 6/01/42 | 490 | 486,747 |
Niagara County Tobacco Asset Securitization Corp. | ||
New York, RB, Asset-Backed, 6.25%, 5/15/40 | 1,000 | 947,040 |
Tobacco Settlement Financing Corp. New York, RB, | ||
Asset-Backed, Series A-1 (AMBAC), 5.25%, 6/01/20 | 1,455 | 1,555,904 |
6,292,766 | ||
Transportation — 12.8% | ||
Hudson Yards Infrastructure Corp., RB: | ||
(AGC), 5.00%, 2/15/47 | 1,000 | 1,019,250 |
Series A (AGM), 5.00%, 2/15/47 | 500 | 509,625 |
Metropolitan Transportation Authority, RB: | ||
Series 2008C, 6.50%, 11/15/28 | 1,760 | 2,043,219 |
Series A, 4.50%, 11/15/38 | 2,700 | 2,628,099 |
Series A, 5.63%, 11/15/39 | 500 | 541,400 |
Series B, 4.50%, 11/15/37 | 1,000 | 975,350 |
New York State Thruway Authority, RB, Series G (AGM), | ||
5.00%, 1/01/30 | 1,000 | 1,033,030 |
Onondaga County Industrial Development Agency | ||
New York, RB, AMT, Air Cargo: | ||
Senior, 6.13%, 1/01/32 | 3,950 | 3,642,650 |
Subordinate, 7.25%, 1/01/32 | 1,365 | 1,269,000 |
Port Authority of New York & New Jersey, RB: | ||
Consolidated 116th Series, 4.13%, 9/15/32 | 1,500 | 1,458,630 |
Special Project, JFK International Air Terminal, | ||
Series 6, AMT (NPFGC), 6.25%, 12/01/10 | 5,250 | 5,311,057 |
Special Project, JFK International Air Terminal, | ||
Series 6, AMT (NPFGC), 6.25%, 12/01/11 | 2,555 | 2,642,407 |
Special Project, JFK International Air Terminal, | ||
Series 6, AMT (NPFGC), 6.25%, 12/01/13 | 2,575 | 2,727,105 |
Special Project, JFK International Air Terminal, | ||
Series 6, AMT (NPFGC), 6.25%, 12/01/14 | 2,620 | 2,778,091 |
Port Authority of New York & New Jersey, Refunding RB, | ||
Consolidated, 132nd Series, 5.00%, 9/01/25 | 1,000 | 1,059,000 |
Triborough Bridge & Tunnel Authority, Refunding RB | ||
(NPFGC), 5.25%, 11/15/23 | 3,900 | 4,152,954 |
33,790,867 | ||
Utilities — 4.4% | ||
Long Island Power Authority, RB, General, Series C (CIFG), | ||
5.25%, 9/01/29 | 3,000 | 3,323,610 |
Long Island Power Authority, Refunding RB, Series A: | ||
5.50%, 4/01/24 | 1,250 | 1,374,638 |
5.75%, 4/01/39 | 300 | 329,364 |
General, 6.00%, 5/01/33 | 2,450 | 2,768,720 |
New York City Municipal Water Finance Authority, RB: | ||
Fiscal 2008, Series A, 5.00%, 6/15/38 | 1,570 | 1,626,865 |
Fiscal 2009, Series A, 5.75%, 6/15/40 | 500 | 563,485 |
Series D, 4.75%, 6/15/38 | 770 | 774,351 |
Series FF-2, 5.50%, 6/15/40 | 800 | 888,320 |
11,649,353 | ||
Total Municipal Bonds in New York | 220,891,575 | |
Guam — 1.5% | ||
State — 0.4% | ||
Territory of Guam, GO, Series A, 7.00%, 11/15/39 | 970 | 1,053,624 |
Tobacco — 0.3% | ||
Guam Economic Development & Commerce Authority, | ||
Refunding RB, Tobacco Settlement Asset-Backed, | ||
5.63%, 6/01/47 | 1,075 | 894,980 |
Par | ||
Municipal Bonds | (000) | Value |
Guam (concluded) | ||
Utilities — 0.8% | ||
Guam Government Waterworks Authority, Refunding RB, | ||
Water, 5.88%, 7/01/35 | $ 2,000 | $ 2,014,960 |
Total Municipal Bonds in Guam | 3,963,564 | |
Puerto Rico — 10.8% | ||
Corporate — 0.3% | ||
Puerto Rico Industrial Medical & Environmental Pollution | ||
Control Facilities Financing Authority, RB, Special | ||
Facilities, American Airlines, Series A, 6.45%, 12/01/25 | 1,000 | 803,640 |
County/City/Special District/School District — 0.8% | ||
Puerto Rico Sales Tax Financing Corp., RB, First | ||
Sub-Series A (AGM), 5.00%, 8/01/40 | 1,000 | 1,000,710 |
Puerto Rico Sales Tax Financing Corp., Refunding RB, | ||
CAB, Series A (NPFGC), 5.77%, 8/01/41 (a) | 7,500 | 1,066,800 |
2,067,510 | ||
Education — 0.4% | ||
Puerto Rico Industrial Tourist Educational Medical & | ||
Environmental Control Facilities Financing Authority, | ||
RB, University Plaza Project, Series A (NPFGC), | ||
5.00%, 7/01/33 | 1,000 | 972,040 |
Housing — 1.1% | ||
Puerto Rico Housing Finance Authority, Refunding RB, | ||
Subordinate, Capital Fund Modernization, | ||
5.13%, 12/01/27 | 3,000 | 3,002,910 |
State — 5.3% | ||
Commonwealth of Puerto Rico, GO, Public | ||
Improvement (NPFGC): | ||
5.75%, 7/01/19 | 4,900 | 4,900,637 |
5.75%, 7/01/21 | 4,075 | 4,075,530 |
Commonwealth of Puerto Rico, GO, Refunding, | ||
Public Improvement: | ||
Series A-4 (AGM), 5.25%, 7/01/30 | 725 | 739,072 |
Series C, 6.00%, 7/01/39 | 700 | 738,822 |
Puerto Rico Commonwealth Infrastructure Financing | ||
Authority, RB, CAB, Series A (a): | ||
(AMBAC), 4.99%, 7/01/44 | 1,100 | 103,532 |
(FGIC), 4.77%, 7/01/42 | 7,470 | 812,960 |
Puerto Rico Public Buildings Authority, RB, Government | ||
Facilities, Series I, 5.25%, 7/01/14 (e) | 55 | 63,215 |
Puerto Rico Sales Tax Financing Corp., RB, First | ||
Sub-Series A, 5.75%, 8/01/37 | 2,500 | 2,596,600 |
14,030,368 | ||
Tobacco — 0.3% | ||
Children’s Trust Fund, Refunding RB, Asset-Backed, | ||
5.63%, 5/15/43 | 1,000 | 860,190 |
Transportation — 2.4% | ||
Puerto Rico Highway & Transportation Authority, RB, | ||
Series Y (AGM), 6.25%, 7/01/21 | 1,000 | 1,115,880 |
Puerto Rico Highway & Transportation Authority, | ||
Refunding RB, Series AA-1 (AGM), 4.95%, 7/01/26 | 5,000 | 5,051,100 |
6,166,980 | ||
Utilities — 0.2% | ||
Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, | ||
Series A, 6.00%, 7/01/38 | 500 | 522,920 |
Total Municipal Bonds in Puerto Rico | 28,426,558 |
See Notes to Financial Statements.
ANNUAL REPORT JUNE 30, 2010 41
Schedule of Investments (concluded) BlackRock New York Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par | ||
Municipal Bonds | (000) | Value |
U.S. Virgin Islands — 1.8% | ||
Corporate — 1.8% | ||
United States Virgin Islands, Refunding RB, Senior | ||
Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21 $ 4,500 | $ 4,566,150 | |
Total Municipal Bonds in the U.S. Virgin Islands | 4,566,150 | |
Total Municipal Bonds — 97.9% | 257,847,847 | |
Municipal Bonds Transferred to | ||
Tender Option Bond Trusts (f) | ||
New York — 3.7% | ||
County/City/Special District/School District — 1.3% | ||
City of New York New York, GO, Series J, 5.00%, 5/15/23 | 1,800 | 1,910,664 |
New York State Dormitory Authority, RB, State University | ||
Dormitory Facilities, Series A, 5.25%, 7/01/29 | 1,350 | 1,461,672 |
3,372,336 | ||
Housing — 0.9% | ||
New York Mortgage Agency, Refunding RB, Series 101, | ||
AMT, 5.40%, 4/01/32 | 2,319 | 2,327,239 |
Utilities — 1.5% | ||
New York City Municipal Water Finance Authority, | ||
Refunding RB, Series A, 4.75%, 6/15/30 | 4,000 | 4,095,120 |
Total Municipal Bonds Transferred to | ||
Tender Option Bond Trusts — 3.7% | 9,794,695 | |
Total Long-Term Investments | ||
(Cost — $262,751,414) — 101.6% | 267,642,542 | |
Short-Term Securities | Shares | |
BIF New York Municipal Money Fund, 0.00% (g)(h) | 366,652 | 366,652 |
Total Short-Term Securities | ||
(Cost — $366,652) — 0.1% | 366,652 | |
Total Investments (Cost — $263,118,066*) — 101.7% | 268,009,194 | |
Other Assets Less Liabilities — 0.0% | 243,427 | |
Liability for Trust Certificates, Including Interest | ||
Expense and Fees Payable — (1.7)% | (4,737,719) | |
Net Assets — 100.0% | $ 263,514,902 |
* The cost and unrealized appreciation (depreciation) of investments as of June 30,
2010, as computed for federal income tax purposes, were as follows:
Aggregate cost | $ 258,208,219 |
Gross unrealized appreciation | $ 11,201,848 |
Gross unrealized depreciation | (6,135,976) |
Net unrealized appreciation | $ 5,065,872 |
(a) Represents a zero-coupon bond. Rate shown reflects the current yield as of
report date.
(b) Issuer filed for bankruptcy and/or is in default of interest payments.
(c) Non-income producing security.
(d) Represents a step-up bond that pays an initial coupon rate for the first period and
then a higher coupon rate for the following periods. Rate shown reflects the current
yield as of report date.
(e) US government securities, held in escrow, are used to pay interest on this security as
well as to retire the bond in full at the date indicated, typically at a premium to par.
(f) Securities represent bonds transferred to a tender option bond trust in exchange for
which the Fund acquired residual interest certificates. These securities serve as col-
lateral in a financing transaction. See Note 1 of the Notes to Financial Statements
for details of municipal bonds transferred to tender option bond trusts.
(g) Investments in companies considered to be an affiliate of the Fund during the year,
for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as
amended, were as follows:
Shares Held | Shares Held | |||
at June 30, | Net | at June 30, | ||
Affiliate | 2009 | Activity | 2010 | Income |
BIF New York | ||||
Municipal | ||||
Money Fund | 2,809,967 | (2,443,315) | 366,652 | $ 657 |
(h) Represents the current yield as of report date.
•For Fund compliance purposes, the Fund’s industry classifications refer to any one
or more of the industry sub-classifications used by one or more widely recognized
market indexes or rating group indexes, and/or as defined by Fund management.
This definition may not apply for purposes of this report, which may combine such
industry sub-classifications for reporting ease.
•Financial futures contracts sold as of June 30, 2010 were as follows:
Expiration | Notional | Unrealized | ||
Contracts | Issue | Date | Value | Depreciation |
34 | 10-Year U.S. | |||
Treasury Bond | September 2010 | $4,165,988 | $ (606) |
•Fair Value Measurements — Various inputs are used in determining the fair value of
investments and derivatives, which are as follows:
•Level 1 — price quotations in active markets/exchanges for identical assets
and liabilities
•Level 2 — other observable inputs (including, but not limited to: quoted prices for
similar assets or liabilities in markets that are active, quoted prices for identical
or similar assets or liabilities in markets that are not active, inputs other than
quoted prices that are observable for the assets or liabilities (such as interest
rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and
default rates) or other market-corroborated inputs)
•Level 3 — unobservable inputs based on the best information available in the
circumstances, to the extent observable inputs are not available (including the
Fund’s own assumptions used in determining the fair value of investments
and derivatives)
The inputs or methodologies used for valuing securities are not necessarily an
indication 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 Statments.
The following tables summarize the inputs used as of June 30, 2010 in determining
the fair valuation of the Fund’s investments and derivatives:
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Assets: | ||||
Investments in | ||||
Securities: | ||||
Long-Term | ||||
Investments1 . | – | $ 267,642,542 | — | $ 267,642,542 |
Short-Term | ||||
Securities | $ 366,652 | – | — | 366,652 |
Total | $ 366,652 | $ 267,642,542 | — | $ 268,009,194 |
1 See above Schedule of Investments for values in each sector.
Derivative Financial Instruments2 | ||||
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total |
Liabilities: | ||||
Interest rate | ||||
contracts | $ (606) | — | — | $ (606) |
2 Derivative financial instruments are financial futures contracts which are shown
at the unrealized appreciation/depreciation on the instrument.
See Notes to Financial Statements.
42 ANNUAL REPORT JUNE 30, 2010
Statements of Assets and Liabilities | |||||
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | |
Short-Term | Municipal | National | High Yield | New York | |
Municipal | Insured | Municipal | Municipal | Municipal | |
June 30, 2010 | Fund | Fund | Fund | Fund | Bond Fund |
Assets | |||||
Investments at value — unaffiliated1 | $1,123,407,849 | $ 840,951,670 | $2,384,306,085 | $ 136,678,975 | $ 267,642,542 |
Investments at value — affiliated2 | 24,582,016 | 18,402,882 | 115,316,742 | 1,632,976 | 366,652 |
Cash | 10,445 | 14,235 | 2,861,267 | — | — |
Cash collateral for financial futures contracts | — | 148,200 | 506,000 | 100,000 | 52,000 |
Interest receivable | 13,001,057 | 14,127,642 | 33,695,702 | 2,331,131 | 4,412,748 |
Capital shares sold receivable | 3,245,482 | 1,320,111 | 10,465,712 | 942,550 | 680,139 |
Investments sold receivable | — | 753,200 | 3,082,535 | 1,110,973 | 1,115,000 |
Income receivable — affiliated | — | 3,072 | — | — | — |
Prepaid expenses | 59,613 | 29,818 | 95,445 | 30,599 | 33,720 |
Total assets | 1,164,306,462 | 875,750,830 | 2,550,329,488 | 142,827,204 | 274,302,801 |
Accrued Liabilities | |||||
Investments purchased payable | 20,000,000 | 10,636,239 | 36,105,976 | — | 5,000,000 |
Capital shares redeemed payable | 7,438,518 | 403,237 | 2,834,430 | 435,223 | 89,199 |
Income dividends payable | 825,337 | 2,405,295 | 6,044,653 | 519,297 | 732,482 |
Interest expense and fees payable | — | 84,878 | 71,716 | 6,270 | 2,616 |
Investment advisory fees payable | 239,933 | 234,449 | 903,816 | 59,783 | 118,330 |
Distribution fees payable | 168,070 | 108,034 | 490,035 | 16,443 | 45,384 |
Officer's and Directors’ fees payable | 1,085 | 1,161 | 1,708 | 497 | 577 |
Other affiliates payable | 15,990 | 21,747 | 75,176 | 1,880 | 5,834 |
Margin variation payable | — | 100,938 | 3,908 | — | 531 |
Other accrued expenses payable | 143,817 | 99,075 | 334,774 | 63,067 | 57,843 |
Other liabilities | — | — | 2,837 | — | — |
Total accrued liabilities | 28,832,750 | 14,095,053 | 46,869,029 | 1,102,460 | 6,052,796 |
Other Liabilities | |||||
Trust certificates3 | — | 65,775,270 | 153,359,646 | 7,913,866 | 4,735,103 |
Total liabilities | 28,832,750 | 79,870,323 | 200,228,675 | 9,016,326 | 10,787,899 |
Net Assets | $1,135,473,712 | $ 795,880,507 | $2,350,100,813 | $ 133,810,878 | $ 263,514,902 |
Net Assets Consist of | |||||
Paid-in capital | $1,132,618,279 | $ 788,781,972 | $2,332,701,716 | $ 146,080,302 | $ 269,486,023 |
Undistributed net investment income | 484,369 | 2,416,717 | 2,532,137 | 316,237 | 732,806 |
Accumulated net realized loss | (8,517,422) | (16,077,642) | (69,088,451) | (9,231,587) | (11,594,449) |
Net unrealized appreciation/depreciation | 10,888,486 | 20,759,460 | 83,955,411 | (3,354,074) | 4,890,522 |
Net Assets | $1,135,473,712 | $ 795,880,507 | $2,350,100,813 | $ 133,810,878 | $ 263,514,902 |
1 Investments at cost — unaffiliated | $1,112,519,363 | $ 819,990,931 | $2,299,957,546 | $ 140,033,049 | $ 262,751,414 |
2 Investments at cost — affiliated | $ 24,582,016 | $ 18,519,343 | $ 115,316,742 | $ 1,632,976 | $ 366,652 |
3 | Represents short-term floating rate certificates issued by tender option bond trusts. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
43
Statements of Assets and Liabilities (concluded) | |||||
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | |
Short-Term | Municipal | National | High Yield | New York | |
Municipal | Insured | Municipal | Municipal | Municipal | |
June 30, 2010 | Fund | Fund | Fund | Fund | Bond Fund |
Net Asset Value | |||||
BlackRock: | |||||
Net assets | $ 17,244,259 | — | — | — | — |
Shares outstanding, $0.10 par value4 | 1,692,626 | — | — | — | — |
Net asset value | $ 10.19 | — | — | — | — |
Institutional: | |||||
Net assets | $ 628,194,038 | $ 505,547,418 | $1,103,380,647 | $ 94,145,938 | $ 23,841,068 |
Shares outstanding, $0.10 par value5 | 61,697,540 | 67,220,004 | 108,303,593 | 11,114,019 | 2,260,796 |
Net asset value | $ 10.18 | $ 7.52 | $ 10.19 | $ 8.47 | $ 10.55 |
Investor A: | |||||
Net assets | $ 297,335,898 | $ 196,325,448 | $ 820,008,545 | $ 25,105,128 | $ 37,736,128 |
Shares outstanding, $0.10 par value6 | 29,185,237 | 26,115,602 | 80,448,053 | 2,969,047 | 3,575,681 |
Net asset value | $ 10.19 | $ 7.52 | $ 10.19 | $ 8.46 | $ 10.55 |
Investor A1: | |||||
Net assets | $ 66,404,162 | — | — | — | $ 162,305,488 |
Shares outstanding, $ 0.10 par value7 | 6,516,579 | — | — | — | 15,380,055 |
Net asset value | $ 10.19 | — | — | — | $ 10.55 |
Investor B: | |||||
Net assets | $ 8,502,916 | $ 16,987,441 | $ 46,152,048 | — | $ 9,644,635 |
Shares outstanding, $0.10 par value8 | 834,991 | 2,260,520 | 4,531,741 | — | 914,239 |
Net asset value | $ 10.18 | $ 7.51 | $ 10.18 | — | $ 10.55 |
Investor C: | |||||
Net assets | $ 117,792,439 | $ 43,504,980 | $ 292,132,498 | $ 14,559,812 | $ 17,596,539 |
Shares outstanding, $ 0.10 par value9 | 11,565,485 | 5,780,196 | 28,658,566 | 1,718,483 | 1,668,064 |
Net asset value | $ 10.18 | $ 7.53 | $ 10.19 | $ 8.47 | $ 10.55 |
Investor C1: | |||||
Net assets | — | $ 33,515,220 | $ 88,427,075 | — | $ 12,391,044 |
Shares outstanding, $0.10 par value10 | — | 4,458,575 | 8,678,367 | — | 1,174,285 |
Net asset value | — | $ 7.52 | $ 10.19 | — | $ 10.55 |
4 Authorized shares — BlackRock | 150 Million | — | — | — | — |
5 Authorized shares — Institutional | 150 Million | 500 Million | 375 Million | 100 Million | Unlimited |
6 Authorized shares — Investor A | 150 Million | 500 Million | 375 Million | 100 Million | Unlimited |
7 Authorized shares — Investor A1 | 150 Million | — | — | — | Unlimited |
8 Authorized shares — Investor B | 150 Million | 375 Million | 375 Million | — | Unlimited |
9 Authorized shares — Investor C | 150 Million | 375 Million | 375 Million | 100 Million | Unlimited |
10 Authorized shares — Investor C1 | — | 375 Million | 375 Million | — | Unlimited |
See Notes to Financial Statements.
44 ANNUAL REPORT
JUNE 30, 2010
Statements of Operations | |||||
BlackRock | BlackRock | BlackRock | BlackRock | BlackRock | |
Short-Term | Municipal | National | High Yield | New York | |
Municipal | Insured | Municipal | Municipal | Municipal | |
Year Ended June 30, 2010 | Fund | Fund | Fund | Fund | Bond Fund |
Investment Income | |||||
Interest | $ 18,787,063 | $ 42,261,354 | $ 114,734,514 | $ 6,334,757 | $ 14,011,819 |
Dividends — affiliated | 105,319 | 134,191 | 201,332 | 6,262 | 657 |
Total income | 18,892,382 | 42,395,545 | 114,935,846 | 6,341,019 | 14,012,476 |
Expenses | |||||
Investment advisory | 3,317,493 | 2,870,299 | 10,179,081 | 540,603 | 1,395,022 |
Service — Investor A | 553,373 | 489,252 | 1,819,611 | 42,202 | 77,663 |
Service — Investor A1 | 73,869 | — | — | — | 162,638 |
Service and distribution — Investor B | 31,537 | 143,944 | 389,699 | — | 53,778 |
Service and distribution — Investor C | 1,060,286 | 362,284 | 2,490,238 | 97,171 | 157,806 |
Service and distribution — Investor C1 | — | 278,419 | 745,912 | — | 74,823 |
Transfer agent — BlackRock | 153 | — | — | — | — |
Transfer agent — Institutional | 455,481 | 172,413 | 614,849 | 12,727 | 6,546 |
Transfer agent — Investor A | 48,052 | 83,375 | 430,555 | 5,263 | 13,246 |
Transfer agent — Investor A1 | 32,827 | — | — | — | 77,553 |
Transfer agent — Investor B | 6,186 | 11,416 | 40,213 | — | 6,531 |
Transfer agent — Investor C | 56,421 | 15,524 | 127,386 | 6,456 | 5,927 |
Transfer agent — Investor C1 | — | 17,789 | 54,762 | — | 5,205 |
Accounting services | 276,726 | 225,803 | 543,535 | 44,506 | 131,272 |
Registration | 161,476 | 72,211 | 148,075 | 56,267 | 68,241 |
Printing | 54,143 | 44,928 | 109,696 | 7,142 | 47,422 |
Professional | 56,669 | 67,860 | 104,295 | 41,381 | 93,201 |
Custodian | 58,829 | 49,951 | 108,249 | 13,455 | 16,811 |
Officer and Directors | 39,416 | 36,293 | 67,654 | 18,881 | 22,762 |
Miscellaneous | 73,227 | 67,052 | 131,751 | 37,805 | 51,667 |
Total expenses excluding interest expense and fees | 6,356,164 | 5,008,813 | 18,105,561 | 923,859 | 2,468,114 |
Interest expense and fees1 | — | 429,907 | 573,343 | 38,510 | 21,471 |
Total expenses | 6,356,164 | 5,438,720 | 18,678,904 | 962,369 | 2,489,585 |
Less fees waived by advisor | (77,512) | (17,856) | (76,778) | (2,306) | (7,641) |
Less transfer agent fees waived and/or reimbursed — class specific | (454,571) | — | — | — | — |
Total expenses after fees waived | 5,824,081 | 5,420,864 | 18,602,126 | 960,063 | 2,481,944 |
Net investment income | 13,068,301 | 36,974,681 | 96,333,720 | 5,380,956 | 11,530,532 |
Realized and Unrealized Gain (Loss) | |||||
Net realized gain (loss) from: | |||||
Investments | 494,322 | 67,947 | (2,433,516) | (829,277) | 838,192 |
Financial futures contracts | — | 41,072 | 369,458 | (33,148) | (904) |
494,322 | 109,019 | (2,064,058) | (862,425) | 837,288 | |
Net change in unrealized appreciation/depreciation on: | |||||
Investments | 3,555,853 | 37,510,230 | 121,073,442 | 12,678,898 | 16,849,394 |
Financial futures contracts | — | (84,818) | (393,128) | — | (606) |
3,555,853 | 37,425,412 | 120,680,314 | 12,678,898 | 16,848,788 | |
Total realized and unrealized gain | 4,050,175 | 37,534,431 | 118,616,256 | 11,816,473 | 17,686,076 |
Net Increase in Net Assets Resulting from Operations | $ 17,118,476 | $ 74,509,112 | $ 214,949,976 | $ 17,197,429 | $ 29,216,608 |
1 Related to tender option bond trusts. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
45
Statements of Changes in Net Assets | BlackRock Short-Term Municipal Fund | |
Year Ended June 30, | ||
Increase (Decrease) in Net Assets: | 2010 | 2009 |
Operations | ||
Net investment income | $ 13,068,301 | $ 10,546,430 |
Net realized gain | 494,322 | 261,019 |
Net change in unrealized appreciation/depreciation | 3,555,853 | 5,682,308 |
Net increase in net assets resulting from operations | 17,118,476 | 16,489,757 |
Dividends to Shareholders From | ||
Net investment income: | ||
BlackRock | (126,369) | (41,504) |
Institutional | (8,667,629) | (6,430,095) |
Investor A | (2,658,864) | (844,176) |
Investor A1 | (1,043,367) | (2,516,657) |
Investor B | (101,560) | (251,687) |
Investor C | (470,373) | (462,311) |
Decrease in net assets resulting from dividends to shareholders | (13,068,162) | (10,546,430) |
Capital Share Transactions | ||
Net increase in net assets derived from capital share transactions | 446,346,568 | 362,727,917 |
Net Assets | ||
Total increase in net assets | 450,396,882 | 368,671,244 |
Beginning of year | 685,076,830 | 316,405,586 |
End of year | $ 1,135,473,712 | $ 685,076,830 |
Undistributed net investment income | $ 484,369 | $ 484,230 |
See Notes to Financial Statements.
46 ANNUAL REPORT
JUNE 30, 2010
Statements of Changes in Net Assets | BlackRock Municipal Insured Fund | |
Year Ended June 30, | ||
Increase (Decrease) in Net Assets: | 2010 | 2009 |
Operations | ||
Net investment income | $ 36,974,681 | $ 35,872,354 |
Net realized gain (loss) | 109,019 | (11,716,243) |
Net change in unrealized appreciation/depreciation | 37,425,412 | (16,194,069) |
Net increase in net assets resulting from operations | 74,509,112 | 7,962,042 |
Dividends and Distributions to Shareholders From | ||
Net investment income: | ||
Institutional | (24,523,908) | (24,580,002) |
Investor A | (8,923,096) | (7,725,521) |
Investor B | (776,512) | (1,066,720) |
Investor C | (1,381,082) | (715,523) |
Investor C1 | (1,392,487) | (1,505,786) |
Net realized gain: | ||
Institutional | — | (135,419) |
Investor A | — | (43,983) |
Investor B | — | (7,022) |
Investor C | — | (4,233) |
Investor C1 | — | (9,875) |
Decrease in net assets resulting from dividends and distributions to shareholders | (36,997,085) | (35,794,084) |
Capital Share Transactions | ||
Net decrease in net assets derived from capital share transactions | (7,051,731) | (10,639,417) |
Net Assets | ||
Total increase (decrease) in net assets | 30,460,296 | (38,471,459) |
Beginning of year | 765,420,211 | 803,891,670 |
End of year | $ 795,880,507 | $ 765,420,211 |
Undistributed net investment income | $ 2,416,717 | $ 2,435,923 |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
47
Statements of Changes in Net Assets | BlackRock National Municipal Fund | |
Year Ended June 30, | ||
Increase (Decrease) in Net Assets: | 2010 | 2009 |
Operations | ||
Net investment income | $ 96,333,720 | $ 84,226,707 |
Net realized loss | (2,064,058) | (44,213,737) |
Net change in unrealized appreciation/depreciation | 120,680,314 | (13,588,746) |
Net increase in net assets resulting from operations | 214,949,976 | 26,424,224 |
Dividends to Shareholders From | ||
Net investment income: | ||
Institutional | (48,071,614) | (44,444,789) |
Investor A | (32,665,327) | (25,627,959) |
Investor B | (2,064,417) | (2,565,400) |
Investor C | (9,329,434) | (5,636,702) |
Investor C1 | (3,673,746) | (4,241,791) |
Decrease in net assets resulting from dividends to shareholders | (95,804,538) | (82,516,641) |
Capital Share Transactions | ||
Net increase in net assets derived from capital share transactions | 311,714,029 | 237,565,684 |
Net Assets | ||
Total increase in net assets | 430,859,467 | 181,473,267 |
Beginning of year | 1,919,241,346 | 1,737,768,079 |
End of year | $ 2,350,100,813 | $ 1,919,241,346 |
Undistributed net investment income | $ 2,532,137 | $ 2,091,449 |
See Notes to Financial Statements.
48 ANNUAL REPORT
JUNE 30, 2010
Statements of Changes in Net Assets | BlackRock High Yield Municipal Fund | |
Year Ended June 30, | ||
Increase (Decrease) in Net Assets: | 2010 | 2009 |
Operations | ||
Net investment income | $ 5,380,956 | $ 3,850,262 |
Net realized loss | (862,425) | (5,814,984) |
Net change in unrealized appreciation/depreciation | 12,678,898 | (7,179,773) |
Net increase (decrease) in net assets resulting from operations | 17,197,429 | (9,144,495) |
Dividends to Shareholders From | ||
Net investment income: | ||
Institutional | (4,001,250) | (3,251,544) |
Investor A | (889,571) | (230,702) |
Investor C | (440,107) | (225,400) |
Decrease in net assets resulting from dividends to shareholders | (5,330,928) | (3,707,646) |
Capital Share Transactions | ||
Net increase (decrease) in net assets derived from capital share transactions | 65,759,877 | (13,207,313) |
Net Assets Applicable to Shareholders | ||
Total increase (decrease) in net assets | 77,626,378 | (26,059,454) |
Beginning of year | 56,184,500 | 82,243,954 |
End of year | $ 133,810,878 | $ 56,184,500 |
Undistributed net investment income | $ 316,237 | $ 267,333 |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
49
Statements of Changes in Net Assets | BlackRock New York Municipal Bond Fund | |
Year Ended June 30, | ||
Increase (Decrease) in Net Assets: | 2010 | 2009 |
Operations | ||
Net investment income | $ 11,530,532 | $ 11,186,594 |
Net realized gain (loss) | 837,288 | (2,346,287) |
Net change in unrealized appreciation/depreciation | 16,848,788 | (11,844,896) |
Net increase (decrease) in net assets resulting from operations | 29,216,608 | (3,004,589) |
Dividends to Shareholders From | ||
Net investment income: | ||
Institutional | (994,195) | (824,866) |
Investor A | (1,383,566) | (868,191) |
Investor A1 | (7,515,339) | (7,903,455) |
Investor B | (454,361) | (647,873) |
Investor C | (588,088) | (406,304) |
Investor C1 | (514,636) | (569,047) |
Decrease in net assets resulting from dividends to shareholders | (11,450,185) | (11,219,736) |
Capital Share Transactions | ||
Net increase (decrease) in net assets derived from capital share transactions | 11,855,642 | (4,379,640) |
Net Assets Applicable to Shareholders | ||
Total increase (decrease) in net assets | 29,622,065 | (18,603,965) |
Beginning of year | 233,892,837 | 252,496,802 |
End of year | $ 263,514,902 | $ 233,892,837 |
Undistributed net investment income | $ 732,806 | $ 660,010 |
See Notes to Financial Statements.
50 ANNUAL REPORT
JUNE 30, 2010
Financial Highlights | BlackRock Short-Term Municipal Fund | |||
BlackRock | ||||
Period | ||||
October 2, 20061 | ||||
Year Ended June 30, | to June 30, | |||
2010 | 2009 | 2008 | 2007 | |
Per Share Operating Performance | ||||
Net asset value, beginning of period | $ 10.14 | $ 9.98 | $ 9.89 | $ 9.93 |
Net investment income2 | 0.15 | 0.26 | 0.33 | 0.25 |
Net realized and unrealized gain (loss) | 0.06 | 0.17 | 0.09 | (0.04) |
Net increase from investment operations | 0.21 | 0.43 | 0.42 | 0.21 |
Dividends from net investment income | (0.16) | (0.27) | (0.33) | (0.25) |
Net asset value, end of period | $ 10.19 | $ 10.14 | $ 9.98 | $ 9.89 |
Total Investment Return3 | ||||
Based on net asset value | 2.04% | 4.36% | 4.26% | 2.09%4 |
Ratios to Average Net Assets | ||||
Total expenses | 0.41% | 0.45% | 0.42% | 0.45%5 |
Total expenses after fees waived | 0.40% | 0.44% | 0.39% | 0.35%5 |
Net investment income | 1.42% | 2.65% | 3.28% | 3.34%5 |
Supplemental Data | ||||
Net assets, end of period (000) | $ 17,244 | $ 2,424 | $ 1,822 | $ 2,457 |
Portfolio turnover | 36% | 21% | 33% | 110% |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Where applicable, total investment returns include the reinvestment of dividends and distributions. |
4 | Aggregate total investment return. |
5 | Annualized. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
51
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund | ||||
Institutional | |||||
Year Ended June 30, | |||||
2010 | 2009 | 2008 | 2007 | 2006 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 10.13 | $ 9.97 | $ 9.88 | $ 9.88 | $ 9.99 |
Net investment income1 | 0.15 | 0.27 | 0.33 | 0.32 | 0.27 |
Net realized and unrealized gain (loss) | 0.06 | 0.17 | 0.09 | 0.002 | (0.11) |
Net increase from investment operations | 0.21 | 0.44 | 0.42 | 0.32 | 0.16 |
Dividends from net investment income | (0.16) | (0.28) | (0.33) | (0.32) | (0.27) |
Net asset value, end of year | $ 10.18 | $ 10.13 | $ 9.97 | $ 9.88 | $ 9.88 |
Total Investment Return3 | |||||
Based on net asset value | 2.04% | 4.45% | 4.31% | 3.32% | 1.57% |
Ratios to Average Net Assets | |||||
Total expenses | 0.48% | 0.47% | 0.49% | 0.48% | 0.45% |
Total expenses after fees waived | 0.40% | 0.35% | 0.35% | 0.38% | 0.44% |
Net investment income | 1.50% | 2.68% | 3.30% | 3.27% | 2.66% |
Supplemental Data | |||||
Net assets, end of year (000) | $ 628,194 | $403,143 | $181,624 | $131,061 | $149,333 |
Portfolio turnover | 36% | 21% | 33% | 110% | 83% |
1 | Based on average shares outstanding. |
2 | Amount is less than $0.01 per share. |
3 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
See Notes to Financial Statements.
52 ANNUAL REPORT
JUNE 30, 2010
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund | ||||
Investor A | |||||
Period | |||||
October 2, 20061 | |||||
Year Ended June 30, | to June 30, | ||||
2010 | 2009 | 2008 | 2007 | ||
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 10.13 | $ 9.98 | $ 9.88 | $ 9.93 | |
Net investment income2 | 0.12 | 0.21 | 0.30 | 0.23 | |
Net realized and unrealized gain (loss) | 0.07 | 0.19 | 0.11 | (0.05) | |
Net increase from investment operations | 0.19 | 0.40 | 0.41 | 0.18 | |
Dividends from net investment income | (0.13) | (0.25) | (0.31) | (0.23) | |
Net asset value, end of period | $ 10.19 | $ 10.13 | $ 9.98 | $ 9.88 | |
Total Investment Return3 | |||||
Based on net asset value | 1.86% | 4.08% | 4.15% | 1.79%4 | |
Ratios to Average Net Assets | |||||
Total expenses | 0.68% | 0.72% | 0.79% | 1.06%5 | |
Total expenses after fees waived | 0.67% | 0.60% | 0.60% | 0.61%5 | |
Net investment income | 1.20% | 2.26% | 3.03% | 3.12%5 | |
Supplemental Data | |||||
Net assets, end of period (000) | $ 297,336 | $ 121,355 | $ 9,403 | $ 1,456 | |
Portfolio turnover | 36% | 21% | 33% | 110% |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
4 | Aggregate total investment return. |
5 | Annualized. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
53
Financial Highlights (continued) | BlackRock Short-Term Municipal Fund | |||||||||||
Investor A1 | Investor B | |||||||||||
Year Ended June 30, | Year Ended June 30, | |||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2010 | 2009 | 2008 | 2007 | 2006 | |||
Per Share Operating Performance | ||||||||||||
Net asset value, beginning of year | $ 10.14 | $ 9.98 | $ 9.89 | $ 9.89 | $ 10.00 | $ 10.13 | $ 9.97 | $ 9.88 | $ 9.88 | $ 10.00 | ||
Net investment income1 | 0.14 | 0.27 | 0.32 | 0.32 | 0.26 | 0.11 | 0.24 | 0.30 | 0.29 | 0.23 | ||
Net realized and unrealized gain (loss) | 0.05 | 0.16 | 0.09 | (0.01) | (0.11) | 0.05 | 0.16 | 0.08 | (0.00)2 | (0.12) | ||
Net increase from investment operations | 0.19 | 0.43 | 0.41 | 0.31 | 0.15 | 0.16 | 0.40 | 0.38 | 0.29 | 0.11 | ||
Dividends from net investment income | (0.14) | (0.27) | (0.32) | (0.31) | (0.26) | (0.11) | (0.24) | (0.29) | (0.29) | (0.23) | ||
Net asset value, end of year | $ 10.19 | $ 10.14 | $ 9.98 | $ 9.89 | $ 9.89 | $ 10.18 | $ 10.13 | $ 9.97 | $ 9.88 | $ 9.88 | ||
Total Investment Return3 | ||||||||||||
Based on net asset value | 1.91% | 4.34% | 4.20% | 3.21% | 1.47% | 1.62% | 4.08% | 3.94% | 2.95% | 1.11% | ||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.55% | 0.58% | 0.59% | 0.58% | 0.55% | 0.82% | 0.85% | 0.85% | 0.85% | 0.81% | ||
Total expenses after fees waived | 0.52% | 0.45% | 0.45% | 0.48% | 0.54% | 0.81% | 0.70% | 0.70% | 0.74% | 0.80% | ||
Net investment income | 1.41% | 2.70% | 3.22% | 3.18% | 2.55% | 1.13% | 2.41% | 2.97% | 2.90% | 2.28% | ||
Supplemental Data | ||||||||||||
Net assets, end of year (000) | $ 66,404 | $ 78,606 | $105,580 | $122,281 | $ 99,293 | $ 8,503 | $ 9,917 | $ 10,612 | $ 14,380 | $ 23,769 | ||
Portfolio turnover | 36% | 21% | 33% | 110% | 83% | 36% | 21% | 33% | 110% | 83% |
1 | Based on average shares outstanding. |
2 | Amount is less than $(0.01) per share. |
3 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
See Notes to Financial Statements.
54 ANNUAL REPORT
JUNE 30, 2010
Financial Highlights (concluded) | BlackRock Short-Term Municipal Fund | ||||
Investor C | |||||
Period | |||||
October 2, 20061 | |||||
Year Ended June 30, | to June 30, | ||||
2010 | 2009 | 2008 | 2007 | ||
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 10.13 | $ 9.97 | $ 9.88 | $ 9.93 | |
Net investment income2 | 0.05 | 0.15 | 0.23 | 0.17 | |
Net realized and unrealized gain (loss) | 0.05 | 0.19 | 0.09 | (0.05) | |
Net increase from investment operations | 0.10 | 0.34 | 0.32 | 0.12 | |
Dividends from net investment income | (0.05) | (0.18) | (0.23) | (0.17) | |
Net asset value, end of period | $ 10.18 | $ 10.13 | $ 9.97 | $ 9.88 | |
Total Investment Return3 | |||||
Based on net asset value | 0.97% | 3.41% | 3.27% | 1.23%4 | |
Ratios to Average Net Assets | |||||
Total expenses | 1.46% | 1.52% | 1.78% | 2.06%5 | |
Total expenses after fees waived | 1.45% | 1.35% | 1.35% | 1.36%5 | |
Net investment income | 0.44% | 1.56% | 2.28% | 2.37%5 | |
Supplemental Data | |||||
Net assets, end of period (000) | $ 117,792 | $ 69,632 | $ 7,365 | $ 2,084 | |
Portfolio turnover | 36% | 21% | 33% | 110% |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
4 | Aggregate total investment return. |
5 | Annualized. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
55
Financial Highlights | BlackRock Municipal Insured Fund | |||||||||||
Institutional | Investor A | |||||||||||
Year Ended June 30, | Year Ended June 30, | |||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2010 | 2009 | 2008 | 2007 | 2006 | |||
Per Share Operating Performance | ||||||||||||
Net asset value, beginning of year | $ 7.17 | $ 7.42 | $ 7.67 | $ 7.69 | $ 8.00 | $ 7.17 | $ 7.41 | $ 7.67 | $ 7.68 | $ 8.00 | ||
Net investment income1 | 0.36 | 0.35 | 0.33 | 0.32 | 0.35 | 0.34 | 0.33 | 0.31 | 0.33 | 0.33 | ||
Net realized and unrealized gain (loss) | 0.35 | (0.25) | (0.23) | 0.03 | (0.28) | 0.35 | (0.24) | (0.24) | 0.01 | (0.29) | ||
Net increase from investment operations | 0.71 | 0.10 | 0.10 | 0.35 | 0.07 | 0.69 | 0.09 | 0.07 | 0.34 | 0.04 | ||
Dividends and distributions from: | ||||||||||||
Net investment income | (0.36) | (0.35) | (0.34) | (0.33) | (0.35) | (0.34) | (0.33) | (0.32) | (0.31) | (0.33) | ||
Net realized gain | — | (0.00)2 | (0.01) | (0.04) | (0.03) | — | (0.00)2 | (0.01) | (0.04) | (0.03) | ||
Total dividends and distributions | (0.36) | (0.35) | (0.35) | (0.37) | (0.38) | (0.34) | (0.33) | (0.33) | (0.35) | (0.36) | ||
Net asset value, end of year | $ 7.52 | $ 7.17 | $ 7.42 | $ 7.67 | $ 7.69 | $ 7.52 | $ 7.17 | $ 7.41 | $ 7.67 | $ 7.68 | ||
Total Investment Return3 | ||||||||||||
Based on net asset value | 10.04% | 1.52% | 1.37% | 4.60% | 0.82% | 9.76% | 1.39% | 0.96% | 4.47% | 0.44% | ||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.52% | 0.67% | 0.85% | 0.87% | 0.74% | 0.78% | 0.93% | 1.11% | 1.13% | 0.99% | ||
Total expenses after fees waived | 0.52% | 0.66% | 0.84% | 0.87% | 0.74% | 0.78% | 0.92% | 1.10% | 1.12% | 0.99% | ||
Total expenses after fees waived and | ||||||||||||
excluding interest expense and fees4 | 0.46% | 0.47% | 0.46% | 0.47% | 0.45% | 0.72% | 0.73% | 0.72% | 0.72% | 0.70% | ||
Net investment income | 4.82% | 4.93% | 4.38% | 4.42% | 4.40% | 4.56% | 4.67% | 4.12% | 4.17% | 4.15% | ||
Supplemental Data | ||||||||||||
Net assets, end of year (000) | $505,547 | $493,427 | $545,130 | $604,691 | $639,687 | $196,325 | $189,614 | $169,010 | $172,236 | $172,083 | ||
Portfolio turnover | 14% | 15% | 40% | 36% | 41% | 14% | 15% | 40% | 36% | 41% |
1 | Based on average shares outstanding. |
2 | Amount is less than $(0.01) per share. |
3 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
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. |
See Notes to Financial Statements.
56 ANNUAL REPORT
JUNE 30, 2010
Financial Highlights (continued) | BlackRock Municipal Insured Fund | ||||
Investor B | |||||
Year Ended June 30, | |||||
2010 | 2009 | 2008 | 2007 | 2006 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 7.16 | $ 7.41 | $ 7.67 | $ 7.68 | $ 7.99 |
Net investment income1 | 0.30 | 0.29 | 0.27 | 0.29 | 0.29 |
Net realized and unrealized gain (loss) | 0.35 | (0.25) | (0.24) | 0.01 | (0.28) |
Net increase from investment operations | 0.65 | 0.04 | 0.03 | 0.30 | 0.01 |
Dividends and distributions from: | |||||
Net investment income | (0.30) | (0.29) | (0.28) | (0.27) | (0.29) |
Net realized gain | — | (0.00)2 | (0.01) | (0.04) | (0.03) |
Total dividends and distributions | (0.30) | (0.29) | (0.29) | (0.31) | (0.32) |
Net asset value, end of year | $ 7.51 | $ 7.16 | $ 7.41 | $ 7.67 | $ 7.68 |
Total Investment Return3 | |||||
Based on net asset value | 9.20% | 0.73% | 0.45% | 3.95% | 0.05% |
Ratios to Average Net Assets | |||||
Total expenses | 1.30% | 1.45% | 1.61% | 1.63% | 1.50% |
Total expenses after fees waived | 1.29% | 1.44% | 1.61% | 1.63% | 1.50% |
Total expenses after fees waived and excluding interest expense and fees4 | 1.24% | 1.25% | 1.23% | 1.23% | 1.21% |
Net investment income | 4.04% | 4.15% | 3.61% | 3.67% | 3.64% |
Supplemental Data | |||||
Net assets, end of year (000) | $ 16,987 | $ 20,504 | $ 33,422 | $ 45,533 | $ 66,477 |
Portfolio turnover | 14% | 15% | 40% | 36% | 41% |
1 | Based on average shares outstanding. |
2 | Amount is less than $(0.01) per share. |
3 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
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. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
57
Financial Highlights (concluded) | BlackRock Municipal Insured Fund | |||||||||
Investor C | Investor C1 | |||||||||
Period | ||||||||||
October 2, | ||||||||||
Year Ended June 30, | 20061 to | Year Ended June 30, | ||||||||
June 30, | ||||||||||
2010 | 2009 | 2008 | 2007 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
Per Share Operating Performance | ||||||||||
Net asset value, beginning of period | $ 7.17 | $ 7.42 | $ 7.68 | $ 7.88 | $ 7.16 | $ 7.41 | $ 7.67 | $ 7.68 | $ 8.00 | |
Net investment income2 | 0.28 | 0.28 | 0.25 | 0.17 | 0.30 | 0.29 | 0.27 | 0.28 | 0.28 | |
Net realized and unrealized gain (loss) | 0.36 | (0.26) | (0.24) | (0.14) | 0.36 | (0.25) | (0.24) | 0.02 | (0.29) | |
Net increase(decrease) from investment operations | 0.64 | 0.02 | 0.01 | 0.03 | 0.66 | 0.04 | 0.03 | 0.30 | (0.01) | |
Dividends and distributions from: | ||||||||||
Net investment income | (0.28) | (0.27) | (0.26) | (0.19) | (0.30) | (0.29) | (0.28) | (0.27) | (0.28) | |
Net realized gain | — | (0.00)3 | (0.01) | (0.04) | — | (0.00)2 | (0.01) | (0.04) | (0.03) | |
Total dividends and distributions | (0.28) | (0.27) | (0.27) | (0.23) | (0.30) | (0.29) | (0.29) | (0.31) | (0.31) | |
Net asset value, end of period | $ 7.53 | $ 7.17 | $ 7.42 | $ 7.68 | $ 7.52 | $ 7.16 | $ 7.41 | $ 7.67 | $ 7.68 | |
Total Investment Return4 | ||||||||||
Based on net asset value | 9.09% | 0.51% | 0.22% | 0.34%5 | 9.30% | 0.69% | 0.41% | 3.90% | (0.12)% | |
Ratios to Average Net Assets | ||||||||||
Total expenses | 1.53% | 1.68% | 1.85% | 1.90%6 | 1.34% | 1.49% | 1.66% | 1.68% | 1.55% | |
Total expenses after fees waived | 1.53% | 1.67% | 1.84% | 1.90%6 | 1.34% | 1.48% | 1.65% | 1.68% | 1.55% | |
Total expenses after fees waived and | ||||||||||
excluding interest expense and fees7 | 1.47% | 1.48% | 1.46% | 1.51%6 | 1.28% | 1.29% | 1.27% | 1.28% | 1.26% | |
Net investment income | 3.81% | 3.92% | 3.37% | 3.37%6 | 4.00% | 4.11% | 3.57% | 3.63% | 3.59% | |
Supplemental Data | ||||||||||
Net assets, end of period (000) | $ 43,505 | $ 27,375 | $ 13,674 | $ 4,542 | $ 33,515 | $ 34,500 | $ 42,655 | $ 51,452 | $ 61,046 | |
Portfolio turnover | 14% | 15% | 40% | 36% | 14% | 15% | 40% | 36% | 41% |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Amount is less than $(0.01) per share. |
4 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Annualized. |
7 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
58 ANNUAL REPORT
JUNE 30, 2010
Financial Highlights | BlackRock National Municipal Fund | |||||||||||
Institutional | Investor A | |||||||||||
Year Ended June 30, | Year Ended June 30, | |||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2010 | 2009 | 2008 | 2007 | 2006 | |||
Per Share Operating Performance | ||||||||||||
Net asset value, beginning of year | $ 9.61 | $ 9.95 | $ 10.39 | $ 10.36 | $ 10.66 | $ 9.62 | $ 9.96 | $ 10.39 | $ 10.37 | $ 10.67 | ||
Net investment income1 | 0.48 | 0.48 | 0.48 | 0.49 | 0.51 | 0.45 | 0.46 | 0.45 | 0.46 | 0.49 | ||
Net realized and unrealized gain (loss) | 0.57 | (0.35) | (0.44) | 0.05 | (0.30) | 0.57 | (0.35) | (0.43) | 0.03 | (0.30) | ||
Net increase from investment operations | 1.05 | 0.13 | 0.04 | 0.54 | 0.21 | 1.02 | 0.11 | 0.02 | 0.49 | 0.19 | ||
Dividends and distributions | ||||||||||||
from net investment income | (0.47) | (0.47) | (0.48) | (0.51) | (0.51) | (0.45) | (0.45) | (0.45) | (0.47) | (0.49) | ||
Net asset value, end of year | $ 10.19 | $ 9.61 | $ 9.95 | $ 10.39 | $ 10.36 | $ 10.19 | $ 9.62 | $ 9.96 | $ 10.39 | $ 10.37 | ||
Total Investment Return2 | ||||||||||||
Based on net asset value | 11.16% | 1.56% | 0.35% | 5.06% | 2.02% | 10.77% | 1.32% | 0.22% | 4.71% | 1.77% | ||
Ratios to Average Net Assets | ||||||||||||
Total expenses | 0.62% | 0.67% | 0.79% | 1.00% | 0.85% | 0.87% | 0.91% | 1.02% | 1.24% | 1.10% | ||
Total expenses after fees waived | 0.62% | 0.65% | 0.78% | 0.99% | 0.84% | 0.87% | 0.90% | 1.01% | 1.24% | 1.09% | ||
Total expenses after fees waived and | ||||||||||||
excluding interest expense and fees3 | 0.59% | 0.60% | 0.60% | 0.59% | 0.58% | 0.84% | 0.84% | 0.82% | 0.84% | 0.83% | ||
Net investment income | 4.76% | 5.10% | 4.69% | 4.66% | 4.87% | 4.52% | 4.87% | 4.46% | 4.43% | 4.61% | ||
Supplemental Data | ||||||||||||
Net assets, end of year (000) | $1,103,381 | $934,807 | $977,642 | $976,153 | $890,984 | $820,009 | $635,090 | $472,018 | $349,225 | $283,814 | ||
Portfolio turnover | 70% | 65% | 61% | 46% | 56% | 70% | 65% | 61% | 46% | 56% |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
3 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
59
Financial Highlights (continued) | BlackRock National Municipal Fund | ||||
Investor B | |||||
Year Ended June 30, | |||||
2010 | 2009 | 2008 | 2007 | 2006 | |
Per Share Operating Performance | |||||
Net asset value, beginning of year | $ 9.61 | $ 9.95 | $ 10.38 | $ 10.36 | $ 10.66 |
Net investment income1 | 0.40 | 0.41 | 0.40 | 0.41 | 0.43 |
Net realized and unrealized gain (loss) | 0.57 | (0.35) | (0.43) | 0.02 | (0.30) |
Net increase (decrease) from investment operations | 0.97 | 0.06 | (0.03) | 0.43 | 0.13 |
Dividends from net investment income | (0.40) | (0.40) | (0.40) | (0.41) | (0.43) |
Net asset value, end of year | $ 10.18 | $ 9.61 | $ 9.95 | $ 10.38 | $ 10.36 |
Total Investment Return2 | |||||
Based on net asset value | 10.21% | 0.79% | (0.30)% | 4.18% | 1.25% |
Ratios to Average Net Assets | |||||
Total expenses | 1.39% | 1.43% | 1.54% | 1.75% | 1.61% |
Total expenses after fees waived | 1.38% | 1.41% | 1.53% | 1.75% | 1.60% |
Total expenses after fees waived and excluding interest expense and fees3 | 1.36% | 1.36% | 1.35% | 1.34% | 1.34% |
Net investment income | 3.99% | 4.35% | 3.94% | 3.92% | 4.11% |
Supplemental Data | |||||
Net assets, end of year (000) | $ 46,152 | $ 58,079 | $ 69,859 | $ 101,260 | $ 134,177 |
Portfolio turnover | 70% | 65% | 61% | 46% | 56% |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
3 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
60 ANNUAL REPORT
JUNE 30, 2010
Financial Highlights (concluded) | BlackRock National Municipal Fund | |||||||||
Investor C | Investor C1 | |||||||||
Period | ||||||||||
October 2, | ||||||||||
Year Ended June 30, | 20061 to | Year Ended June 30, | ||||||||
June 30, | ||||||||||
2010 | 2009 | 2008 | 2007 | 2010 | 2009 | 2008 | 2007 | 2006 | ||
Per Share Operating Performance | ||||||||||
Net asset value, beginning of period | $ 9.62 | $ 9.96 | $ 10.39 | $ 10.57 | $ 9.61 | $ 9.95 | $ 10.39 | $ 10.36 | $ 10.66 | |
Net investment income2 | 0.38 | 0.39 | 0.37 | 0.25 | 0.40 | 0.41 | 0.40 | 0.41 | 0.43 | |
Net realized and unrealized gain (loss) | 0.57 | (0.35) | (0.43) | (0.16) | 0.57 | (0.35) | (0.44) | 0.04 | (0.29) | |
Net increase (decrease) from investment operations | 0.95 | 0.04 | (0.06) | 0.09 | 0.97 | 0.06 | (0.04) | 0.45 | 0.14 | |
Dividends from net investment income | (0.38) | (0.38) | (0.37) | (0.27) | (0.39) | (0.40) | (0.40) | (0.42) | (0.44) | |
Net asset value, end of period | $ 10.19 | $ 9.62 | $ 9.96 | $ 10.39 | $ 10.19 | $ 9.61 | $ 9.95 | $ 10.39 | $ 10.36 | |
Total Investment Return3 | ||||||||||
Based on net asset value | 9.95% | 0.56% | (0.57)% | 0.96%4 | 10.28% | 0.76% | (0.44)% | 4.23% | 1.20% | |
Ratios to Average Net Assets | ||||||||||
Total expenses | 1.61% | 1.66% | 1.82% | 2.05%5 | 1.42% | 1.46% | 1.58% | 1.80% | 1.65% | |
Total expenses after fees waived | 1.61% | 1.65% | 1.81% | 2.05%5 | 1.42% | 1.44% | 1.57% | 1.80% | 1.65% | |
Total expenses after fees waived and | ||||||||||
excluding interest expense and fees6 | 1.58% | 1.59% | 1.62% | 1.65%5 | 1.39% | 1.39% | 1.39% | 1.39% | 1.39% | |
Net investment income | 3.77% | 4.12% | 3.66% | 3.59%5 | 3.96% | 4.32% | 3.90% | 3.88% | 4.05% | |
Supplemental Data | ||||||||||
Net assets, end of period (000) | $292,132 | $195,475 | $103,504 | $ 41,676 | $ 88,427 | $ 95,790 | $114,746 | $140,653 | $139,447 | |
Portfolio turnover | 70% | 65% | 61% | 46% | 70% | 65% | 61% | 46% | 56% |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
4 | Aggregate total investment return. |
5 | Annualized. |
6 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
61
Financial Highlights | BlackRock High Yield Municipal Fund | ||||||||
Institutional | Investor A | ||||||||
Period | Period | ||||||||
August 1, | August 1, | ||||||||
Year Ended June 30, | 20061 | Year Ended June 30, | 20061 | ||||||
to June 30, | to June 30, | ||||||||
2010 | 2009 | 2008 | 2007 | 2010 | 2009 | 2008 | 2007 | ||
Per Share Operating Performance | |||||||||
Net asset value, beginning of period | $ 7.29 | $ 8.68 | $ 9.96 | $ 10.00 | $ 7.28 | $ 8.67 | $ 9.95 | $ 10.00 | |
Net investment income2 | 0.46 | 0.48 | 0.44 | 0.39 | 0.43 | 0.44 | 0.41 | 0.32 | |
Net realized and unrealized gain (loss) | 1.18 | (1.40) | (1.26) | (0.03) | 1.18 | (1.39) | (1.26) | 0.01 | |
Net increase (decrease) from investment operations | 1.64 | (0.92) | (0.82) | 0.36 | 1.61 | (0.95) | (0.85) | 0.33 | |
Dividends and distributions from: | |||||||||
Net investment income | (0.46) | (0.47) | (0.44) | (0.40) | (0.43) | (0.44) | (0.41) | (0.38) | |
Net realized gain | — | — | (0.02) | (0.00)3 | — | — | (0.02) | (0.00)3 | |
Total dividends and distributions | (0.46) | (0.47) | (0.46) | (0.40) | (0.43) | (0.44) | (0.43) | (0.38) | |
Net asset value, end of period | $ 8.47 | $ 7.29 | $ 8.68 | $ 9.96 | $ 8.46 | $ 7.28 | $ 8.67 | $ 9.95 | |
Total Investment Return4 | |||||||||
Based on net asset value | 22.88% | (10.40)% | (8.38)% | 3.59%5 | 22.58% | (10.67)% | (8.62)% | 3.26%5 | |
Ratios to Average Net Assets | |||||||||
Total expenses | 0.83% | 0.93% | 0.84% | 0.96%6 | 1.09% | 1.18% | 1.08% | 1.19%6 | |
Total expenses after fees waived | 0.83% | 0.92% | 0.81% | 0.62%6 | 1.09% | 1.17% | 1.05% | 0.89%6 | |
Total expenses after fees waived and excluding interest expense and fees7 | 0.79% | 0.89% | 0.78% | 0.62%6 | 1.05% | 1.14% | 1.03% | 0.89%6 | |
Net investment income | 5.63% | 6.52% | 4.76% | 4.35%6 | 5.33% | 6.13% | 4.52% | 4.16%6 | |
Supplemental Data | |||||||||
Net assets, end of period (000) | $ 94,146 | $ 45,997 | $ 71,203 | $ 62,464 | $ 25,105 | $ 4,798 | $ 6,513 | $ 5,892 | |
Portfolio turnover | 32% | 39% | 33% | 16% | 32% | 39% | 33% | 16% |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Amount is less than $(0.01) per share. |
4 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Annualized. |
7 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
62 ANNUAL REPORT
JUNE 30, 2010
Financial Highlights (concluded) | BlackRock High Yield Municipal Fund | ||||
Investor C | |||||
Period | |||||
August 1, 20061 | |||||
Year Ended June 30, | to June 30, | ||||
2010 | 2009 | 2008 | 2007 | ||
Per Share Operating Performance | |||||
Net asset value, beginning of period | $ 7.29 | $ 8.68 | $ 9.97 | $ 10.00 | |
Net investment income2 | 0.37 | 0.41 | 0.34 | 0.30 | |
Net realized and unrealized gain (loss) | 1.18 | (1.41) | (1.27) | (0.02) | |
Net increase (decrease) from investment operations | 1.55 | (1.00) | (0.93) | 0.28 | |
Dividends and distributions from: | |||||
Net investment income | (0.37) | (0.39) | (0.34) | (0.31) | |
Net realized gain | — | — | (0.02) | (0.00)3 | |
Total dividends and distributions | (0.37) | (0.39) | (0.36) | (0.31) | |
Net asset value, end of period | $ 8.47 | $ 7.29 | $ 8.68 | $ 9.97 | |
Total Investment Return4 | |||||
Based on net asset value | 21.61% | (11.33)% | (9.40)% | 2.84%5 | |
Ratios to Average Net Assets | |||||
Total expenses | 1.88% | 1.97% | 1.85% | 1.84%6 | |
Total expenses after fees waived | 1.88% | 1.97% | 1.82% | 1.53%6 | |
Total expenses after fees waived and excluding interest expense and fees7 | 1.84% | 1.94% | 1.80% | 1.53%6 | |
Net investment income | 4.58% | 5.59% | 3.76% | 3.50%6 | |
Supplemental Data | |||||
Net assets, end of period (000) | $ 14,560 | $ 5,389 | $ 4,527 | $ 4,378 | |
Portfolio turnover | 32% | 39% | 33% | 16% |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Amount is less than $(0.01) per share. |
4 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
5 | Aggregate total investment return. |
6 | Annualized. |
7 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
63
Financial Highlights | BlackRock New York Municipal Bond Fund | ||||||
Institutional | |||||||
Period | |||||||
October 1, | |||||||
Year Ended June 30, | 2007 to | Year Ended September 30, | |||||
June 30, | |||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
Per Share Operating Performance | |||||||
Net asset value, beginning of period | $ 9.81 | $ 10.38 | $ 10.84 | $ 11.10 | $ 11.05 | $ 11.03 | |
Net investment income1 | 0.49 | 0.48 | 0.36 | 0.49 | 0.51 | 0.54 | |
Net realized and unrealized gain (loss) | 0.74 | (0.56) | (0.46) | (0.26) | 0.04 | 0.02 | |
Net increase (decrease) from investment operations | 1.23 | (0.08) | (0.10) | 0.23 | 0.55 | 0.56 | |
Dividends and distributions from net investment income | (0.49) | (0.49) | (0.36) | (0.49) | (0.50) | (0.54) | |
Net asset value, end of period | $ 10.55 | $ 9.81 | $ 10.38 | $ 10.84 | $ 11.10 | $ 11.05 | |
Total Investment Return2 | |||||||
Based on net asset value | 12.74% | (0.60)% | (0.91)%3 | 2.12% | 5.19% | 5.15% | |
Ratios to Average Net Assets | |||||||
Total expenses | 0.76% | 0.78% | 0.82%4 | 0.85% | 0.90% | 0.89% | |
Total expenses, after fees waived | 0.76% | 0.77% | 0.81%4 | 0.85% | 0.90% | 0.89% | |
Total expenses after fees waived and excluding interest expense and fees5 | 0.75% | 0.76% | 0.74%4 | 0.73% | 0.74% | 0.74% | |
Net investment income | 4.77% | 5.01% | 4.56%4 | 4.51% | 4.64% | 4.89% | |
Supplemental Data | |||||||
Net assets, end of period (000) | $ 23,841 | $ 19,105 | $ 17,949 | $ 14,927 | $ 10,995 | $ 10,593 | |
Portfolio turnover | 19% | 30% | 16% | 19% | 46% | 24% |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
64 ANNUAL REPORT
JUNE 30, 2010
Financial Highlights (continued) | BlackRock New York Municipal Bond Fund | |||
Investor A | ||||
Period | Period | |||
October 1, | October 2, | |||
2007 | 20061 to | |||
Year Ended June 30, | to June 30, | September 30, | ||
2010 | 2009 | 2008 | 2007 | |
Per Share Operating Performance | ||||
Net asset value, beginning of period | $ 9.82 | $ 10.39 | $ 10.85 | $ 11.10 |
Net investment income2 | 0.47 | 0.46 | 0.34 | 0.46 |
Net realized and unrealized gain (loss) | 0.72 | (0.57) | (0.46) | (0.25) |
Net increase (decrease) from investment operations | 1.19 | (0.11) | (0.12) | 0.21 |
Dividends from net investment income | (0.46) | (0.46) | (0.34) | (0.46) |
Net asset value, end of period | $ 10.55 | $ 9.82 | $ 10.39 | $ 10.85 |
Total Investment Return3 | ||||
Based on net asset value | 12.33% | (0.85)% | (1.10)%4 | 1.93%4 |
Ratios to Average Net Assets | ||||
Total expenses | 1.02% | 1.05% | 1.07%5 | 1.10%5 |
Total expenses after fees waived | 1.02% | 1.04% | 1.06%5 | 1.10%5 |
Total expenses after fees waived and excluding interest expense and fees6 | 1.01% | 1.02% | 0.99%5 | 0.99%5 |
Net investment income | 4.50% | 4.77% | 4.31%5 | 4.27%5 |
Supplemental Data | ||||
Net assets, end of period (000) | $ 37,736 | $ 20,528 | $ 16,181 | $ 11,964 |
Portfolio turnover | 19% | 30% | 16% | 19% |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
4 | Aggregate total investment return. |
5 | Annualized. |
6 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
65
Financial Highlights (continued) | BlackRock New York Municipal Bond Fund | |||||
Investor A1 | ||||||
Period | ||||||
October 1, | ||||||
Year Ended June 30, | 2007 to | Year Ended September 30, | ||||
June 30, | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 9.82 | $ 10.39 | $ 10.85 | $ 11.10 | $ 11.05 | $ 11.03 |
Net investment income1 | 0.48 | 0.48 | 0.36 | 0.49 | 0.50 | 0.53 |
Net realized and unrealized gain (loss) | 0.73 | (0.57) | (0.47) | (0.26) | 0.04 | 0.02 |
Net increase (decrease) from investment operations | 1.21 | (0.09) | (0.11) | 0.23 | 0.54 | 0.55 |
Dividends and distributions from net investment income | (0.48) | (0.48) | (0.35) | (0.48) | (0.49) | (0.53) |
Net asset value, end of period | $ 10.55 | $ 9.82 | $ 10.39 | $ 10.85 | $ 11.10 | $ 11.05 |
Total Investment Return2 | ||||||
Based on net asset value | 12.49% | (0.70)% | (0.99)%3 | 2.11% | 5.08% | 5.05% |
Ratios to Average Net Assets | ||||||
Total expenses | 0.88% | 0.89% | 0.92%4 | 0.95% | 1.00% | 0.99% |
Total expenses after fees waived | 0.87% | 0.88% | 0.91%4 | 0.95% | 0.99% | 0.99% |
Total expenses after fees waived and excluding interest expense and fees5 | 0.86% | 0.87% | 0.84%4 | 0.83% | 0.84% | 0.84% |
Net investment income | 4.65% | 4.90% | 4.45%4 | 4.40% | 4.52% | 4.79% |
Supplemental Data | ||||||
Net assets, end of period (000) | $ 162,305 | $ 157,706 | $ 177,080 | $ 204,497 | $ 223,322 | $ 141,319 |
Portfolio turnover | 19% | 30% | 16% | 19% | 46% | 24% |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
66 ANNUAL REPORT
JUNE 30, 2010
Financial Highlights (continued) | BlackRock New York Municipal Bond Fund | |||||
Investor B | ||||||
Period | ||||||
October 1, | ||||||
Year Ended June 30, | 2007 to | Year Ended September 30, | ||||
June 30, | ||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |
Per Share Operating Performance | ||||||
Net asset value, beginning of period | $ 9.81 | $ 10.38 | $ 10.84 | $ 11.10 | $ 11.06 | $ 11.04 |
Net investment income1 | 0.44 | 0.44 | 0.33 | 0.44 | 0.45 | 0.49 |
Net realized and unrealized gain (loss) | 0.74 | (0.57) | (0.47) | (0.26) | 0.04 | 0.01 |
Net increase (decrease) from investment operations | 1.18 | (0.13) | (0.14) | 0.18 | 0.49 | 0.50 |
Dividends and distributions from net investment income | (0.44) | (0.44) | (0.32) | (0.44) | (0.45) | (0.48) |
Net asset value, end of period | $ 10.55 | $ 9.81 | $ 10.38 | $ 10.84 | $ 11.10 | $ 11.06 |
Total Investment Return2 | ||||||
Based on net asset value | 12.15% | (1.11)% | (1.29)%3 | 1.60% | 4.56% | 4.62% |
Ratios to Average Net Assets | ||||||
Total expenses | 1.29% | 1.30% | 1.31%4 | 1.36% | 1.41% | 1.40% |
Total expenses after fees waived | 1.28% | 1.29% | 1.31%4 | 1.36% | 1.41% | 1.40% |
Total expenses after fees waived and excluding interest | ||||||
expense and fees5 | 1.28% | 1.27% | 1.24%4 | 1.24% | 1.25% | 1.25% |
Net investment income | 4.25% | 4.48% | 4.06%4 | 3.99% | 4.14% | 4.38% |
Supplemental Data | ||||||
Net assets, end of period (000) | $ 9,645 | $ 11,770 | $ 18,535 | $ 25,264 | $ 34,921 | $ 45,506 |
Portfolio turnover | 19% | 30% | 16% | 19% | 46% | 24% |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
67
Financial Highlights (continued) | BlackRock New York Municipal Bond Fund | |||
Investor C | ||||
Period | Period | |||
October 1, | October 2, | |||
2007 | 20061 to | |||
Year Ended June 30, | to June 30, | September 30, | ||
2010 | 2009 | 2008 | 2007 | |
Per Share Operating Performance | ||||
Net asset value, beginning of period | $ 9.81 | $ 10.38 | $ 10.84 | $ 11.10 |
Net investment income2 | 0.39 | 0.39 | 0.28 | 0.37 |
Net realized and unrealized gain (loss) | 0.74 | (0.56) | (0.46) | (0.25) |
Net increase (decrease) from investment operations | 1.13 | (0.17) | (0.18) | 0.12 |
Dividends from net investment income | (0.39) | (0.40) | (0.28) | (0.38) |
Net asset value, end of period | $ 10.55 | $ 9.81 | $ 10.38 | $ 10.84 |
Total Investment Return3 | ||||
Based on net asset value | 11.62% | (1.59)% | (1.65)%4 | 1.08%4 |
Ratios to Average Net Assets | ||||
Total expenses | 1.77% | 1.79% | 1.82%5 | 1.85%5 |
Total expenses after fees waived | 1.76% | 1.78% | 1.81%5 | 1.85%5 |
Total expenses after fees waived and excluding interest expense and fees6 | 1.75% | 1.76% | 1.74%5 | 1.74%5 |
Net investment income | 3.76% | 4.03% | 3.57%5 | 3.52%5 |
Supplemental Data | ||||
Net assets, end of period (000) | $ 17,597 | $ 12,294 | $ 8,535 | $ 4,611 |
Portfolio turnover | 19% | 30% | 16% | 19% |
1 | Commencement of operations. |
2 | Based on average shares outstanding. |
3 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
4 | Aggregate total investment return. |
5 | Annualized. |
6 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
68 ANNUAL REPORT
JUNE 30, 2010
Financial Highlights (concluded) | BlackRock New York Municipal Bond Fund | ||||||
Investor C1 | |||||||
Period | |||||||
October 1, | |||||||
Year Ended June 30, | 2007 to | Year Ended September 30, | |||||
June 30, | |||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | ||
Per Share Operating Performance | |||||||
Net asset value, beginning of period | $ 9.81 | $ 10.39 | $ 10.85 | $ 11.10 | $ 11.06 | $ 11.04 | |
Net investment income1 | 0.43 | 0.43 | 0.32 | 0.43 | 0.44 | 0.48 | |
Net realized and unrealized gain (loss) | 0.74 | (0.58) | (0.47) | (0.25) | 0.04 | 0.01 | |
Net increase (decrease) from investment operations | 1.17 | (0.15) | (0.15) | 0.18 | 0.48 | 0.49 | |
Dividends and distributions from net investment income | (0.43) | (0.43) | (0.31) | (0.43) | (0.44) | (0.47) | |
Net asset value, end of period | $ 10.55 | $ 9.81 | $ 10.39 | $ 10.85 | $ 11.10 | $ 11.06 | |
Total Investment Return2 | |||||||
Based on net asset value | 12.06% | (1.29)% | (1.35)%3 | 1.61% | 4.46% | 4.52% | |
Ratios to Average Net Assets | |||||||
Total expenses | 1.37% | 1.38% | 1.41%4 | 1.45% | 1.51% | 1.50% | |
Total expenses after fees waived | 1.37% | 1.37% | 1.40%4 | 1.45% | 1.50% | 1.50% | |
Total expenses after fees waived and excluding interest expense and fees5 | 1.36% | 1.36% | 1.33%4 | 1.33% | 1.35% | 1.35% | |
Net investment income | 4.16% | 4.41% | 3.97%4 | 3.91% | 4.03% | 4.28% | |
Supplemental Data | |||||||
Net assets, end of period (000) | $ 12,391 | $ 12,491 | $ 14,217 | $ 16,364 | $ 18,984 | $ 17,080 | |
Portfolio turnover | 19% | 30% | 16% | 19% | 46% | 24% |
1 | Based on average shares outstanding. |
2 | Where applicable, total investment returns exclude the effect of any sales charges and include the reinvestment of dividends and distributions. |
3 | Aggregate total investment return. |
4 | Annualized. |
5 | Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts. |
See Notes to Financial Statements.
ANNUAL REPORT
JUNE 30, 2010
69
Notes to Financial Statements
1. Organization and Significant Accounting Policies:
BlackRock Short-Term Municipal Fund (“Short-Term Municipal”), BlackRock
Municipal Insured Fund (“Municipal Insured”), BlackRock National
Municipal Fund (“National Municipal”) and BlackRock High Yield Municipal
Fund (“High Yield Municipal”) of BlackRock Municipal Bond Fund, Inc.
(“The Bond Fund”) and BlackRock New York Municipal Bond Fund (“New
York Municipal”) of BlackRock Multi-State Municipal Series Trust (collec-
tively, the “Funds” or individually as the “Fund”) are registered under the
Investment Company Act of 1940, as amended (the “1940 Act”), as diver-
sified, open-end management investment companies. The Bond Fund is
organized as a Maryland corporation. BlackRock Multi-State Municipal
Series Trust is organized as a Massachusetts business trust. The Funds’
financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America ("US GAAP"), which
may require management to make estimates and assumptions that affect
the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates. The Boards of Directors and the
Boards of Trustees of the Funds are referred to throughout this report as
the “Board of Directors” or the “Board”. Each Fund offers multiple classes
of shares. BlackRock and Institutional Shares are sold without a sales
charge and only to certain eligible investors. Investor A Shares are generally
sold with a front-end sales charge. Investor A1, Investor B and Investor C1
are not generally available except for dividend and capital gains reinvest-
ment. Investor B, Investor C and Investor C1 Shares may be subject to a
contingent deferred sales charge. All classes of shares have identical vot-
ing, dividend, liquidation and other rights and the same terms and condi-
tions, except that Investor A, Investor A1, Investor B, Investor C and Investor
C1 Shares bear certain expenses related to the shareholder servicing of
such shares, and Investor B, Investor C and Investor C1 Shares also bear
certain expenses related to the distribution of such shares. For Short-Term
Municipal and New York Municipal, Investor B Shares automatically convert
to Investor A1 Shares after approximately 10 years. For Municipal Insured
and National Municipal, Investor B Shares automatically convert to Investor
A Shares after approximately 10 years. Investor A1, Investor B and Investor
C1 Shares are only available through exchanges, dividend reinvestment by
existing shareholders or for purchase by certain qualified employee benefits
plans. Each class has exclusive voting rights with respect to matters relat-
ing to its shareholder servicing and distribution expenditures (except that
Investor B shareholders may vote on material changes to the Investor A and
Investor A1 distribution plan).
The following is a summary of significant accounting policies followed by
the Funds:
Valuation: The Funds' policy is to fair value their financial instruments at
market value using independent dealers or pricing services selected under
the supervision of the Board of Directors. Municipal investments (including
commitments to purchase such investments on a “when-issued” basis) are
valued on the basis of prices provided by dealers or pricing services. In
determining the value of a particular investment, pricing services may use
certain information with respect to transactions in such investments, quota-
tions from dealers, pricing matrixes, market transactions in comparable
investments and information with respect to various relationships between
investments. Financial futures contracts traded on exchanges are valued at
their last sale price. Short-term securities with remaining maturities of 60
days or less may be 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 or is not available, the investment will
be valued in accordance with a policy approved by the Board as reflecting
fair value ("Fair Value Assets"). When determining the price for Fair Value
Assets, the investment advisor and/or the sub-advisor seeks to determine
the price that each Fund might reasonably expect to receive from the cur-
rent sale of that asset in an arm’s-length transaction. Fair value determina-
tions shall be based upon all available factors that the investment advisor
and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is
subsequently reported to the Board or a committee thereof.
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 trans-
actions normally occurs within a month or more after the purchase or sale
commitment is made. The Funds may purchase securities under such con-
ditions 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. When purchasing a security on a delayed deliv-
ery basis, the Funds assume the rights and risks of ownership of the secu-
rity, including the risk of price and yield fluctuations. In the event of default
by the counterparty, the Funds' maximum amount of loss is the unrealized
appreciation of unsettled when-issued transactions, which is shown on the
Schedules of Investments, if any.
Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds
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 bonds. Other funds managed by the investment advisor
may also contribute municipal bonds to a TOB into which a Fund has con-
tributed bonds. A TOB typically issues two classes of beneficial interests:
short-term floating rate certificates, which are sold to third party investors,
and residual certificates (“TOB Residuals”), which are generally issued to
the participating funds that made the transfer. The TOB Residuals held by a
Fund include the right of a Fund (1) to cause the holders of a proportional
share of the short-term floating rate certificates to tender their certificates
at par, including during instances of a rise in short-term interest rates, and
(2) to transfer, within seven days, a corresponding share of the municipal
bonds from the TOB to a Fund. The TOB may also be terminated without the
consent of a Fund upon the occurrence of certain events as defined in the
TOB agreements. Such termination events may include the bankruptcy or
default of the municipal bond, a substantial downgrade in credit quality of
the municipal bond, the inability of the TOB to obtain quarterly or annual
renewal of the liquidity support agreement, a substantial decline in market
value of the municipal bond or the inability to remarket the short-term
floating rate certificates to third party investors.
The cash received by the TOB from the sale of the short-term floating rate
certificates, less transaction expenses, is paid to a Fund, which typically
invests the cash in additional municipal bonds. Each Fund's transfer of
the municipal bonds to a TOB is accounted for as a secured borrowing,
therefore the municipal bonds deposited into a TOB are presented in the
Funds' Schedules of Investments and the proceeds from the issuance of
the short-term floating rate certificates are shown as trust certificates in
the Statements of Assets and Liabilities.
70 ANNUAL REPORT
JUNE 30, 2010
Notes to Financial Statements (continued)
Interest income from the underlying municipal bonds is recorded by the
Funds on an accrual basis. Interest expense incurred on the secured bor-
rowing and other expenses related to remarketing, administration and
trustee services to a TOB are shown as interest expense and fees in the
Statements of Operations. The short-term floating rate certificates have
interest rates that generally reset weekly and their holders have the option
to tender certificates to the TOB for redemption at par at each reset date.
At June 30, 2010, the aggregate value of the underlying municipal bonds
transferred to TOBs, the related liability for trust certificates and the range
of interest rates on the liability for trust certificates were as follows:
Underlying | |||
Municipal | |||
Bonds | Liability for | Range of | |
Transferred | Trust | Interest | |
to TOBs | Certificates | Rates | |
Municipal Insured | $139,903,682 | $ 65,775,270 | 0.23% — |
0.59% | |||
National Municipal | $317,623,908 | $153,359,646 | 0.22% — |
0.43% | |||
High Yield Municipal | $ 15,764,114 | $ 7,913,866 | 0.24% — |
0.34% | |||
New York Municipal | $ 9,794,695 | $ 4,735,103 | 0.25% — |
0.37% |
For the year ended June 30, 2010, the Funds' average trust certificates
outstanding and the daily weighted average interest rate, including fees,
were as follows:
Average Trust | Daily Weighted | |
Certificates | Average | |
Outstanding | Interest Rate | |
Municipal Insured | $60,892,162 | 0.71% |
National Municipal | $74,704,104 | 0.77% |
High Yield Municipal. | $ 4,518,225 | 0.85% |
New York Municipal | $ 2,624,917 | 0.82% |
Should short-term interest rates rise, the Funds' investments in TOBs
may adversely affect the Funds' net investment income and dividends to
shareholders. Also, fluctuations in the market value of municipal bonds
deposited into the TOB may adversely affect the Funds' 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 the Funds either deliver collateral or segregate assets in con-
nection with certain investments (e.g., financial futures contracts) the
Funds will, consistent with SEC rules and/or certain interpretive letters
issued by the SEC, segregate collateral or designate on their books and
records cash or other liquid securities having a market value at least equal
to the amount that would otherwise be required to be physically segre-
gated. Furthermore, based on requirements and agreements with certain
exchanges and third party broker-dealers, each party has requirements to
deliver/deposit securities as collateral for certain investments.
Investment Transactions and Investment Income: For financial reporting
purposes, investment transactions are recorded on the dates the trans-
actions are entered into (the trade dates). Realized gains and losses
on investment transactions are determined on the identified cost basis.
Interest income, including amortization of premium and accretion of dis-
count on debt securities, is recognized on the accrual basis. Dividend
income is recorded on the ex-dividend dates. 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. The amount and timing of dividends and distribu-
tions are determined in accordance with federal income tax regulations,
which may differ from US GAAP.
Income Taxes: It is each Fund's policy to comply with the requirements of
the Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute substantially all of its taxable
income to its shareholders. Therefore, no federal income tax provision
is required.
The Funds file US federal and various state and local tax returns. No
income tax returns are currently under examination. The statute of limita-
tions on the Funds' US federal tax returns remains open for each of the
four years ended June 30, 2010, except for New York Municipal. The statute
of limitations on New York Municipal’s US federal tax returns remains open
for each of the years ended September 30, 2006 and September 30,
2007, the period ended June 30, 2008 and the years ended June 30,
2009 and June 30, 2010. The statutes of limitations on the Funds' state
and local tax returns may remain open for an additional year depending
upon the jurisdiction. There are no uncertain tax positions that require
recognition of a tax liability.
Other: Expenses directly related to each Fund or its classes are charged to
that Fund or class. Other operating expenses shared by several funds are
pro rated among those funds on the basis of relative net assets or other
appropriate methods. Other expenses of the Fund are allocated daily to
each class based on its relative net assets. The Funds have an arrange-
ment with the custodian whereby fees may be reduced by credits earned
on uninvested cash balances, which if applicable are shown as fees paid
indirectly in the Statements of Operations. The custodian imposes fees on
overdrawn cash balances, which can be offset by accumulated credits
earned or may result in additional custody charges.
2. Derivative Financial Instruments:
The Funds engage in various portfolio investment strategies using derivative
contracts both to increase the returns of the Funds and to economically
hedge, or protect, their exposure to certain risks such as interest rate risk.
These contracts may be transacted on an exchange. Losses may arise if
the value of the contract decreases due to an unfavorable change in the
market rates or values of the underlying instrument, or if the counter-
party does not perform under the contract. Counterparty risk related to
exchange-traded financial futures contracts is minimal because of the pro-
tection against defaults provided by the exchange on which they trade.
Financial Futures Contracts: The Funds purchase or sell financial futures
contracts and options on financial futures contracts to gain exposure to, or
economically hedge against, changes in interest rates (interest rate risk).
Financial futures contracts are contracts for delayed delivery of securities at
ANNUAL REPORT
JUNE 30, 2010
71
Notes to Financial Statements (continued)
a specific future date and at a specific price. Pursuant to the contract, the
Funds agree to receive from or pay to the broker an amount of cash equal
to the daily fluctuation in value of the contract. Such receipts or payments
are known as margin variation and are recognized by the Funds as unreal-
ized gains or losses. When the contract is closed, the Funds record a real-
ized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed. The use
of financial futures transactions involves the risk of an imperfect correlation
in the movements in the price of financial futures contracts, interest rates
and the underlying assets.
Derivative Instruments Categorized by Risk Exposure:
Fair Values of Derivative Instruments as of June 30, 2010
Liability Derivatives | ||||
Municipal | National | New York | ||
Insured | Municipal | Municipal | ||
Fund | Fund | Bond Fund | ||
Statements of Assets and | ||||
Liabilities Location | Value | |||
Net unrealized | ||||
Interest rate | appreciation/ | |||
contracts | depreciation* | $84,818 | $393,128 | $606 |
* Includes cumulative appreciation/depreciation of financial futures contracts as
reported in the Schedules of Investments. Only current day's margin variation is
reported within the Statements of Assets and Liabilities.
The Effect of Derivative Instruments on the Statements of Operations
Year Ended June 30, 2010
Net Realized Gain (Loss) from
Municipal National | High Yield | New York | ||
Insured | Municipal | Municipal | Municipal | |
Fund | Fund | Fund | Bond Fund | |
Interest rate contracts: | ||||
Financial futures contracts: | $41,072 | $369,458 | $(33,148) | $ (904) |
Net Change in Unrealized Depreciation on | ||||
Municipal | National | New York | ||
Insured | Municipal | Municipal | ||
Fund | Fund | Bond Fund | ||
Interest rate contracts: | ||||
Financial futures contracts: | $(84,818) $(393,128) | $ (606) |
For the year ended June 30, 2010, the average quarterly balance of
outstanding derivative financial instruments were as follows:
Municipal | National | High Yield | New York | |
Insured | Municipal | Municipal | Municipal | |
Fund | Fund | Fund | Bond Fund | |
Financial futures contracts: | ||||
Average number of | ||||
contracts purchased | 6 | 23 | 18 | 4 |
Average number of | ||||
contracts sold | 31 | 231 | 24 | 41 |
Average notional value | ||||
of contracts purchased | $ 690,013 | $ 2,645,051 | $2,022,187 | $ 460,009 |
Average notional value | ||||
of contracts sold | $3,711,714 | $27,692,132 | $2,849,905 | $4,898,203 |
3. Investment Advisory Agreement and Other Transactions
with Affiliates:
The PNC Financial Services Group, Inc. ("PNC"), Bank of America
Corporation ("BAC") and Barclays Bank PLC ("Barclays") are the largest
stockholders of BlackRock, Inc. ("BlackRock"). Due to the ownership
structure, PNC is an affiliate of the Funds for 1940 Act purposes, but BAC
and Barclays are not.
Each Fund entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the “Manager”), the Funds' investment advisor, an indirect,
wholly owned subsidiary of BlackRock, to provide investment advisory and
administration services. The Manager is responsible for the management
of each Fund's portfolio and provides the necessary personnel, facilities,
equipment and certain other services necessary to the operations of each
Fund. For such services, each Fund pays the Manager a monthly fee at the
following annual rates of each Fund’s average daily net assets as follows:
Aggregate of Average | Rate of Advisory Fee | ||
Daily Net Assets of the | Short-Term | Municipal | National |
Three Combined Funds1 | Municipal | Insured | Municipal |
Not exceeding $250 million | 0.400% | 0.400% | 0.500% |
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 | 0.350% | 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 percentage applica-
ble to a breakpoint level is determined by dividing the amount of the aggregate aver-
age daily net assets of the three combined Funds that falls within that breakpoint
level by the aggregate average daily net assets of the three combined Funds. The
amount of the fee for a Fund at each breakpoint level is determined by multiplying
the average daily net assets of that Fund by the uniform percentage applicable to
that breakpoint level and multiplying the product by the advisory fee rate.
For Short-Term Municipal, the Manager voluntarily agreed to waive or reim-
burse fees and expenses, excluding interest expense, dividend expense,
acquired fund fees and expenses and certain other fund expenses, in order
to limit expenses. The expense limitations as a percentage of net assets
are as follows:
Institutional | 0.40% |
Investor A | 0.69% |
Investor A1 | 0.52% |
Investor B | 0.81% |
Investor C | 1.55% |
These voluntary waivers and reimbursements may be reduced or discontin-
ued at any time.
As a result, the Manager waived or reimbursed the following amounts which
are shown as transfer agent fees waived and/or reimbursed — class specific
in the Statements of Operations:
Institutional | $438,119 |
Investor A | $ 763 |
Investor A1 | $ 15,080 |
Investor B | $ 609 |
In addition, for Short-Term Municipal, the Manager waived $30,255, which
is included in fees waived by advisor in the Statements of Operations.
High Yield Municipal’s rates are as follows: | |
Portion of Average Daily Net Assets | Rate |
Not exceeding $250 million | 0.550% |
In excess of $250 million, but not exceeding $500 million | 0.525% |
In excess of $500 million | 0.500% |
72 ANNUAL REPORT
JUNE 30, 2010
Notes to Financial Statements (continued)
New York Municipal’s rates are as follows: | |
Portion of Average Daily Net Assets | Rate |
Not exceeding $500 million | 0.550% |
In excess of $500 million, but not exceeding $1 billion | 0.525% |
In excess of $1 billion | 0.500% |
The Manager voluntarily agreed to waive its advisory fees by the amount of
investment advisory fees each Fund pays to the Manager indirectly through
its investment in affiliated money market funds; however the Manager does
not waive its advisory fees by the amount of investment advisory fees paid
through its investment in other affiliated investment companies, if any.
These amounts are included in fees waived by advisor in the Statements of
Operations. For the year ended June 30, 2010, the amounts waived were
as follows:
Short-Term Municipal | $47,257 |
Municipal Insured | $17,856 |
National Municipal | $76,778 |
High Yield Municipal | $ 2,306 |
New York Municipal | $ 7,641 |
The Manager entered into a separate sub-advisory agreement with
BlackRock Investment Management, LLC (“BIM”), an affiliate of the
Manager. The Manager pays BIM for services it provides, a monthly fee
that is a percentage of the investment advisory fees paid by each Fund
to the Manager.
For the year ended June 30, 2010, each Fund reimbursed the Manager for
certain accounting services, which are included in accounting services in
the Statements of Operations. The reimbursements were as follows:
Short-Term Municipal | $19,933 |
Municipal Insured | $16,261 |
National Municipal | $41,834 |
High Yield Municipal | $ 1,962 |
New York Municipal | $ 4,840 |
The Funds entered into a Distribution Agreement and Distribution Plan with
BlackRock Investments, LLC (”BRIL“), an affiliate of BlackRock. Pursuant to
the Distribution Plan and in accordance with Rule 12b-1 under the 1940
Act, each Fund pay BRIL 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 of each Fund as follows:
Service Fees | |||||
Short-Term | Municipal | National | High Yield | New York | |
Municipal | Insured | Municipal | Municipal | Municipal | |
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 | |||||
Short-Term | Municipal | National | High Yield | New York | |
Municipal | Insured | Municipal | Municipal | Municipal | |
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 BRIL, broker-dealers and BRIL provide
shareholder servicing and distribution services to each Fund. The ongoing
service and/or distribution fee compensates BRIL and each broker-dealer
for providing shareholder servicing and/or distribution related services to
Investor A, Investor A1, Investor B, Investor C and Investor C1 shareholders.
For the year ended June 30, 2010, affiliates earned underwriting discounts,
direct commissions and dealer concessions on sales of the Funds' Investor
A Shares as follows:
Short-Term | Municipal | National | High Yield | New York | |
Municipal | Insured | Municipal | Municipal | Municipal | |
Investor A | $51,210 | $33,056 | $191,301 | $15,812 | $11,368 |
For the year ended June 30, 2010, affiliates received contingent deferred
sales charges relating to transactions in Investor B, Investor C and Investor
C1 Shares as follows:
Short-Term | Municipal | National | High Yield | New York | |
Municipal | Insured | Municipal | Municipal | Municipal | |
Investor B | $ 2,623 | $3,241 | $22,551 | — | $ 993 |
Investor C | $71,989 | $7,390 | $66,268 | $3,614 | $1,486 |
Investor C1 | — | $ 578 | $ 1,419 | — | $ 101 |
Furthermore, affiliates received contingent deferred sale charges relating to
transactions subject to front-end sales charge waivers as follows:
Short-Term | Municipal | National | High Yield | New York | |
Municipal | Insured | Municipal | Municipal | Municipal | |
Investor A | $59,935 | $5,130 | $88,630 | $67,494 | — |
PNC Global Investment Servicing (U.S.) Inc. ("PNCGIS"), an indirect, wholly
owned subsidiary of PNC and an affiliate of the Manager, serves as transfer
agent and dividend disbursing agent. Effective July 1, 2010, PNCGIS was
sold to The Bank of New York Mellon Corporation and is no longer consid-
ered an affiliate of the Manager. At the close of the sale, PNCGIS changed
its name to BNY Mellon Investment Servicing (US) Inc. Transfer agency fees
borne by each Fund are comprised of those fees charged for all share-
holder communications including mailing of shareholder reports, dividend
and distribution notices, and proxy materials for shareholder meetings, as
well as per account and per transaction fees related to servicing and main-
tenance of shareholder accounts, including the issuing, redeeming and
transferring of shares, 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 administra-
tive 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 year ended June 30, 2010, the
following Funds paid the following in return for these services which is
included in transfer agent — class specific in the Statements of Operations:
Short-Term Municipal | $305,184 |
Municipal Insured | $ 25 |
National Municipal | $ 1,694 |
The Manager maintains a call center, which is responsible for providing cer-
tain shareholder services to the Funds, such as responding to shareholder
inquiries and processing transactions based upon instructions from share-
holders with respect to the subscription and redemption of Fund shares.
ANNUAL REPORT
JUNE 30, 2010
73
Notes to Financial Statements (continued)
For the year ended June 30, 2010, the Funds reimbursed the Manager the
following amounts for costs incurred in running the call center, which are
included in transfer agent — class specific in the Statements of Operations.
Call Center Fees | |||||
Short-Term | Municipal | National | High Yield | New York | |
Municipal | Insured | Municipal | Municipal | Municipal | |
BlackRock | $ 45 | — | — | — | — |
Institutional | $2,981 | $6,055 | $18,035 | $316 | $ 139 |
Investor A | $2,879 | $2,783 | $13,154 | $325 | $ 418 |
Investor A1 | $ 784 | — | — | — | $2,450 |
Investor B | $ 132 | $ 226 | $ 795 | — | $ 133 |
Investor C | $1,503 | $ 441 | $ 3,289 | $219 | $ 260 |
Investor C1 | — | $ 460 | $ 1,086 | — | $ 147 |
Certain officers and/or directors/trustees of the Funds are officers and/or
directors of BlackRock or its affiliates. The Funds reimburse the Manager for
compensation paid to the Funds' Chief Compliance Officer.
4. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended June 30, 2010, were as follows:
Purchases | Sales | |
Short-Term Municipal | $ 783,966,371 | $ 330,049,968 |
Municipal Insured | $ 139,293,463 | $ 113,558,999 |
National Municipal | $2,005,203,644 | $1,429,162,040 |
High Yield Municipal | $ 101,610,630 | $ 32,459,811 |
New York Municipal | $ 67,172,800 | $ 48,666,672 |
5. Income Tax Information:
Reclassifications: US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax report-
ing. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of June 30, 2010 attributa-
ble to amortization methods on fixed income securities, the tax classification of distributions received from a regulated investment company and the
expiration of capital loss carryforwards were reclassified to the following accounts:
Municipal | National | High Yield | New York | |||
Insured | Municipal | Municipal | Municipal | |||
Paid-in capital | — | $(444,566) | — | — | ||
Undistributed net investment income | $ 3,198 | $ (88,494) | $(1,124) | $(7,551) | ||
Accumulated net realized loss | $(3,198) | $ 533,060 | $ 1,124 | $ 7,551 | ||
The tax character of distributions paid during the fiscal years ended June 30, 2010 and June 30, 2009 were as follows: | ||||||
Short-Term | Municipal | National | High Yield | New York | ||
Municipal | Insured | Municipal | Municipal | Municipal | ||
Tax-exempt income | 6/30/10 | $13,068,162 | $36,997,085 | $95,804,538 | $5,278,832 | $11,450,185 |
6/30/09 | 10,546,430 | 35,417,924 | 82,516,641 | 3,707,646 | 11,219,736 | |
Ordinary income | 6/30/10 | — | — | — | 52,096 | — |
6/30/09 | — | 175,638 | — | — | — | |
Long-term capital gains | 6/30/10 | — | — | — | — | — |
6/30/09 | — | 200,522 | — | — | — | |
Total distributions | 6/30/10 | $13,068,162 | $36,997,085 | $95,804,538 | $5,330,928 | $11,450,185 |
6/30/09 | $10,546,430 | $35,794,084 | $82,516,641 | $3,707,646 | $11,219,736 | |
As of June 30, 2010 the tax components of accumulated net earnings (losses) were as follows: | ||||||
Short-Term | Municipal | National | High Yield | New York | ||
Municipal | insured | Municipal | Municipal | Municipal | ||
Undistributed tax-exempt income | $ 484,225 | $ 2,249,146 | $ 1,254,526 | $ 131,849 | $ 289,724 | |
Undistributed ordinary income | 144 | 140 | 40,216 | 55,912 | 27,962 | |
Capital loss carryforwards | (8,517,422) | (13,071,040) | (64,232,210) | (8,682,503) | (11,322,743) | |
Net unrealized gains (losses)* | 10,888,486 | 17,920,289 | 80,336,565 | (3,774,682) | 5,033,936 | |
Total | $ 2,855,433 | $ 7,098,535 | $ 17,399,097 | $ (12,269,424) | $ (5,971,121) |
* The differences between book-basis and tax-basis net unrealized gains (losses) is attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on
straddles, the difference between book and tax for premiums and discounts on fixed income securities, the deferral of post-October capital losses for tax purposes, book-tax dif-
ferences in the accrual of income on securities in default, the realization for tax purposes of unrealized gains (losses) on certain futures contracts, the timing and recognition of
partnership income and the tax treatment of residual interests in tender option bond trusts.
As of June 30, 2010, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates: | |||||
Expires | Short-Term | Municipal | National | High Yield | New York |
June 30, | Municipal | Insured | Municipal | Municipal | Municipal |
2011 | — | — | $ 942,957 | — | — |
2012 | — | — | 1,591,140 | — | — |
2013 | $ 1,096,327 | — | 48,027 | — | $ 8,935,207 |
2014 | 4,110,940 | — | — | — | — |
2015 | 2,987,949 | — | 259,851 | — | — |
2016 | 322,206 | — | 1,320,166 | $ 258,523 | — |
2017 | — | $ 6,021,988 | 19,350,079 | 3,758,709 | 2,020,225 |
2018 | — | 7,049,052 | 40,719,990 | 4,665,271 | 367,311 |
Total | $ 8,517,422 | $13,071,040 | $64,232,210 | $ 8,682,503 | $11,322,743 |
74 ANNUAL REPORT
JUNE 30, 2010
Notes to Financial Statements (continued)
6. Borrowings:
The Funds, along with certain other funds managed by the Manager and its
affiliates, are a party to a $500 million credit agreement with a group of
lenders, which was renewed until November 2010. The Funds may borrow
under the credit agreement to fund shareholder redemptions. Prior to its
renewal, the credit agreement had the following terms: 0.02% upfront fee
on the aggregate commitment amount which was allocated to each Fund
based on its net assets as of October 31, 2008; a commitment fee of
0.08% per annum based on each Fund's pro rata share of the unused por-
tion of the credit agreement, which is included in miscellaneous in the
Statements of Operations, and interest 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, the higher of (i) 1.50% and (ii) 50% of the CDX Index
(as defined in the credit agreement) on amounts borrowed. Effective
November 2009, the credit agreement was renewed with the following
terms: 0.02% upfront fee on the aggregate commitment amount which was
allocated to each Fund based on its net assets as of October 31, 2009, a
commitment fee of 0.10% per annum based on each Fund's pro rata
share of the unused portion of the credit agreement, which is included in
miscellaneous in the Statements of Operations, and interest at a rate equal
to the higher of (a) the one-month LIBOR plus 1.25% per annum and (b)
the Fed Funds rate plus 1.25% per annum on amounts borrowed. The
Funds did not borrow under the credit agreement during the year ended
June 30, 2010.
7. Concentration, Market and Credit Risk:
New York Municipal invests a substantial amount of its assets in issuers
located in a single state or limited number of states. Please see New York
Municipal’s Schedule of Investments for concentrations in specific states.
Many municipalities insure repayment of their bonds, which may reduce the
potential for loss due to credit risk. The market value of these bonds may
fluctuate for other reasons, including market perception of the value of
such insurance, and there is no guarantee that the insurer will meet its
obligation.
In the normal course of business, the Funds invest in securities and enter
into transactions where risks exist due to fluctuations in the market (market
risk) or failure of the issuer of a security to meet all its obligations (issuer
credit risk). The value of securities held by the Funds may decline in
response to certain events, including those directly involving the issuers
whose securities are owned by the Funds; conditions affecting the general
economy; overall market changes; local, regional or global political, social
or economic instability; and currency and interest rate and price fluctua-
tions. Similar to issuer credit risk, the Funds may be exposed to counter-
party credit risk, or the risk that an entity with which the Funds have
unsettled or open transactions may fail to or be unable to perform on its
commitments. The Funds manage counterparty credit risk by entering into
transactions only with counterparties that they believe have the financial
resources to honor their obligations and by monitoring the financial stability
of those counterparties. Financial assets, which potentially expose the
Funds to market, issuer and counterparty credit risks, consist principally of
financial instruments and receivables due from counterparties. The extent
of the Funds’ exposure to market, issuer and counterparty credit risks with
respect to these financial assets is generally approximated by their value
recorded in the Funds’ Statements of Assets and Liabilities, less any collat-
eral held by the Funds.
8. Reorganization:
On February 23, 2009 (the “Reorganization Date”), 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, 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
ratios 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 $2,960,415 of accumulated net realized loss
and $6,897,370 of net unrealized depreciation).
9. Capital Share Transactions: | |||||
Transactions in capital shares for each class were as follows: | |||||
Year Ended | Year Ended | ||||
June 30, 2010 | June 30, 2009 | ||||
Short-Term Municipal | Shares | Amount | Shares | Amount | |
BlackRock | |||||
Shares sold | 1,582,401 | $ 16,127,185 | 112,538 | $1,139,685 | |
Shares issued to shareholders in reinvestment of dividends | 12,328 | 125,546 | 4,126 | 41,504 | |
Total issued | 1,594,729 | 16,252,731 | 116,664 | 1,181,189 | |
Shares redeemed | (141,213) | (1,436,769) | (60,135) | (603,478) | |
Net increase | 1,453,516 | $ 14,815,962 | 56,529 | $ 577,711 |
ANNUAL REPORT
JUNE 30, 2010
75
Notes to Financial Statements (continued) | ||||
Year Ended | Year Ended | |||
June 30, 2010 | June 30, 2009 | |||
Short-Term Municipal (concluded) | Shares | Amount | Shares | Amount |
Institutional | ||||
Shares sold | 52,363,133 | $532,717,993 | 30,230,793 | $304,895,708 |
Shares issued to shareholders in reinvestment of dividends | 377,255 | 3,839,445 | 290,901 | 2,927,276 |
Total issued | 52,740,388 | 536,557,438 | 30,521,694 | 307,822,984 |
Shares redeemed | (30,848,241) | (313,950,174) | (8,933,649) | (89,726,234) |
Net increase | 21,892,147 | $222,607,264 | 21,588,045 | $218,096,750 |
Investor A | ||||
Shares sold and automatic conversion of shares | 28,575,477 | $290,988,619 | 12,990,356 | $131,223,446 |
Shares issued to shareholders in reinvestment of dividends | 204,464 | 2,081,727 | 60,059 | 606,385 |
Total issued | 28,779,941 | 293,070,346 | 13,050,415 | 131,829,831 |
Shares redeemed | (11,570,462) | (117,804,897) | (2,017,284) | (20,331,780) |
Net increase | 17,209,479 | $175,265,449 | 11,033,131 | $111,498,051 |
Investor A1 | ||||
Shares sold | 54,166 | $ 551,863 | 60,500 | $ 607,223 |
Shares issued to shareholders in reinvestment of dividends | 59,182 | 602,778 | 133,753 | 1,345,087 |
Total issued | 113,348 | 1,154,641 | 194,253 | 1,952,310 |
Shares redeemed | (1,351,733) | (13,766,456) | (3,019,589) | (30,352,718) |
Net decrease | (1,238,385) | $ (12,611,815) | (2,825,336) | $ (28,400,408) |
Investor B | ||||
Shares sold | 73,159 | $ 744,817 | 187,443 | $ 1,880,888 |
Shares issued to shareholders in reinvestment of dividends | 6,889 | 70,104 | 15,683 | 157,656 |
Total issued | 80,048 | 814,921 | 203,126 | 2,038,544 |
Shares redeemed and automatic conversion of shares | (224,138) | (2,280,979) | (288,235) | (2,896,017) |
Net decrease | (144,090) | $ (1,466,058) | (85,106) | $ (857,473) |
Investor C | ||||
Shares sold | 8,054,247 | $ 81,953,486 | 7,199,561 | $ 72,540,245 |
Shares issued to shareholders in reinvestment of dividends | 33,652 | 342,474 | 33,190 | 334,681 |
Total issued | 8,087,899 | 82,295,960 | 7,232,751 | 72,874,926 |
Shares redeemed | (3,395,705) | (34,560,194) | (1,097,941) | (11,061,640) |
Net increase | 4,692,194 | $ 47,735,766 | 6,134,810 | $ 61,813,286 |
Municipal Insured | ||||
Institutional | ||||
Shares sold | 3,442,209 | $ 25,773,152 | 3,226,075 | $ 22,737,812 |
Shares issued to shareholders in reinvestment | ||||
of dividends and distributions | 1,603,346 | 11,976,884 | 1,638,695 | 11,558,683 |
Total issued | 5,045,555 | 37,750,036 | 4,864,770 | 34,296,495 |
Shares redeemed | (6,661,286) | (49,761,757) | (9,542,574) | (67,131,852) |
Net decrease | (1,615,731) | $ (12,011,721) | (4,677,804) | $ (32,835,357) |
76 ANNUAL REPORT
JUNE 30, 2010
Notes to Financial Statements (continued) | ||||
Year Ended | Year Ended | |||
June 30, 2010 | June 30, 2009 | |||
Municipal Insured (concluded) | Shares | Amount | Shares | Amount |
Investor A | ||||
Shares sold and automatic conversion of shares | 4,807,352 | $ 35,778,191 | 8,790,059 | $ 62,362,833 |
Shares issued to shareholders in reinvestment | ||||
of dividends and distributions | 609,674 | 4,552,842 | 564,951 | 3,984,551 |
Total issued | 5,417,026 | 40,331,033 | 9,355,010 | 66,347,384 |
Shares redeemed | (5,763,518) | (42,864,852) | (5,692,511) | (40,102,046) |
Net increase (decrease) | (346,492) | $ (2,533,819) | 3,662,499 | $ 26,245,338 |
Investor B | ||||
Shares sold | 51,725 | $ 386,429 | 113,395 | $ 784,859 |
Shares issued to shareholders in reinvestment | ||||
of dividends and distributions | 43,534 | 324,831 | 68,122 | 479,326 |
Total issued | 95,259 | 711,260 | 181,517 | 1,264,185 |
Shares redeemed and automatic conversion of shares | (697,429) | (5,192,938) | (1,829,244) | (12,870,403) |
Net decrease | (602,170) | $ (4,481,678) | (1,647,727) | $ (11,606,218) |
Investor C | ||||
Shares sold | 2,722,025 | $ 20,321,090 | 2,824,349 | $ 19,963,381 |
Shares issued to shareholders in reinvestment | ||||
of dividends and distributions | 118,621 | 887,801 | 64,122 | 453,360 |
Total issued | 2,840,646 | 21,208,891 | 2,888,471 | 20,416,741 |
Shares redeemed | (876,537) | (6,569,384) | (915,117) | (6,318,880) |
Net increase | 1,964,109 | $ 14,639,507 | 1,973,354 | $ 14,097,861 |
Investor C1 | ||||
Shares sold | 1,530 | $ 11,444 | 308 | $ 2,275 |
Shares issued to shareholders in reinvestment | ||||
of dividends and distributions | 100,282 | 748,709 | 117,062 | 824,595 |
Total issued | 101,812 | 760,153 | 117,370 | 826,870 |
Shares redeemed | (458,405) | (3,424,173) | (1,057,067) | (7,367,911) |
Net decrease | (356,593) | $ (2,664,020) | (939,697) | $ (6,541,041) |
National Municipal | ||||
Institutional | ||||
Shares sold | 23,929,880 | $240,734,514 | 23,391,888 | $218,856,130 |
Shares issued resulting from reorganization | — | — | 1,316,862 | 12,395,093 |
Shares issued to shareholders in reinvestment of dividends | 3,264,368 | 32,795,888 | 3,176,077 | 29,957,092 |
Total issued | 27,194,248 | 273,530,402 | 27,884,827 | 261,208,315 |
Shares redeemed | (16,149,886) | (162,180,381) | (28,855,272) | (267,330,650) |
Net increase (decrease) | 11,044,362 | $111,350,021 | (970,445) | $ (6,122,335) |
Investor A | ||||
Shares sold and automatic conversion of shares | 25,587,832 | $257,098,651 | 31,859,146 | $295,936,080 |
Shares issued resulting from reorganization | — | — | 4,478,243 | 42,172,421 |
Shares issued to shareholders in reinvestment of dividends | 1,751,962 | 17,621,515 | 1,318,677 | 12,433,840 |
Total issued | 27,339,794 | 274,720,166 | 37,656,066 | 350,542,341 |
Shares redeemed | (12,935,435) | (129,790,408) | (19,016,556) | (176,818,811) |
Net increase | 14,404,359 | $144,929,758 | 18,639,510 | $173,723,530 |
ANNUAL REPORT
JUNE 30, 2010
77
Notes to Financial Statements (continued) | |||||
Year Ended | Year Ended | ||||
June 30, 2010 | June 30, 2009 | ||||
National Municipal (concluded) | Shares | Amount | Shares | Amount | |
Investor B | |||||
Shares sold | 115,773 | $ 1,161,245 | 480,937 | $ 4,471,892 | |
Shares issued resulting from reorganization | — | — | 926,855 | 8,720,800 | |
Shares issued to shareholders in reinvestment of dividends | 95,845 | 960,773 | 128,385 | 1,209,747 | |
Total issued | 211,618 | 2,122,018 | 1,536,177 | 14,402,439 | |
Shares redeemed and automatic conversion of shares | (1,724,753) | (17,212,430) | (2,513,202) | (23,671,120) | |
Net decrease | (1,513,135) | $ (15,090,412) | (977,025) | $ (9,268,681) | |
Investor C | |||||
Shares sold | 12,581,518 | $126,083,884 | 13,770,386 | $129,633,926 | |
Shares issued resulting from reorganization | — | — | 250,847 | 2,362,454 | |
Shares issued to shareholders in reinvestment of dividends | 660,323 | 6,642,068 | 429,597 | 4,047,957 | |
Total issued | 13,241,841 | 132,725,952 | 14,450,830 | 136,044,337 | |
Shares redeemed | (4,909,381) | (49,343,444) | (4,518,696) | (42,305,488) | |
Net increase | 8,332,460 | $ 83,382,508 | 9,932,134 | $ 93,738,849 | |
Investor C1 | |||||
Shares sold | 6,202 | $ 61,511 | 14,271 | $ 137,739 | |
Shares issued resulting from reorganization | — | — | 920,024 | 8,661,141 | |
Shares issued to shareholders in reinvestment of dividends | 220,956 | 2,218,142 | 282,963 | 2,666,650 | |
Total issued | 227,158 | 2,279,653 | 1,217,258 | 11,465,530 | |
Shares redeemed | (1,513,481) | (15,137,499) | (2,780,257) | (25,971,209) | |
Net decrease | (1,286,323) | $ (12,857,846) | (1,562,999) | $ (14,505,679) | |
High Yield Municipal | |||||
Institutional | |||||
Shares sold | 6,465,527 | $ 52,954,961 | 2,789,461 | $ 19,603,534 | |
Shares issued to shareholders in reinvestment | |||||
of dividends and distributions | 107,697 | 900,772 | 8,324 | 59,586 | |
Total issued | 6,573,224 | 53,855,733 | 2,797,785 | 19,663,120 | |
Shares redeemed | (1,767,419) | (14,445,195) | (4,689,484) | (33,516,161) | |
Net increase (decrease) | 4,805,805 | $ 39,410,538 | (1,891,699) | $ (13,853,041) | |
Investor A | |||||
Shares sold and automatic conversion of shares | 3,588,086 | $ 28,712,678 | 527,679 | $ 3,714,601 | |
Shares issued to shareholders in reinvestment | |||||
of dividends and distributions | 67,920 | 560,971 | 16,677 | 124,025 | |
Total issued | 3,656,006 | 29,273,649 | 544,356 | 3,838,626 | |
Shares redeemed | (1,346,044) | (10,935,891) | (636,324) | (4,783,763) | |
Net increase (decrease) | 2,309,962 | $ 18,337,758 | (91,968) | $ (945,137) | |
Investor C | |||||
Shares sold | 1,174,052 | $ 9,607,134 | 411,739 | $ 2,966,901 | |
Shares issued to shareholders in reinvestment | |||||
of dividends and distributions | 31,696 | 260,753 | 19,240 | 137,887 | |
Total issued | 1,205,748 | 9,867,887 | 430,979 | 3,104,788 | |
Shares redeemed | (226,312) | (1,856,306) | (213,248) | (1,513,923) | |
Net increase | 979,436 | $ 8,011,581 | 217,731 | $ 1,590,865 |
78 ANNUAL REPORT
JUNE 30, 2010
Notes to Financial Statements (concluded) | |||||
Year Ended | Year Ended | ||||
June 30, 2010 | June 30, 2009 | ||||
New York Municipal | Shares | Amount | Shares | Amount | |
Institutional | |||||
Shares sold | 886,783 | $ 9,279,487 | 771,195 | $ 7,406,346 | |
Shares issued to shareholders in reinvestment of dividends | 50,961 | 529,695 | 46,073 | 445,241 | |
Total issued | 937,744 | 9,809,182 | 817,268 | 7,851,587 | |
Shares redeemed | (624,770) | (6,490,743) | (598,776) | (5,721,947) | |
Net increase | 312,974 | $ 3,318,439 | 218,492 | $ 2,129,640 | |
Investor A | |||||
Shares sold and automatic conversion of shares | 2,099,796 | $ 21,588,976 | 1,167,689 | $ 11,352,956 | |
Shares issued to shareholders in reinvestment of dividends | 97,249 | 1,014,531 | 52,001 | 501,759 | |
Total issued | 2,197,045 | 22,603,507 | 1,219,690 | 11,854,715 | |
Shares redeemed | (712,498) | (7,337,173) | (686,270) | (6,557,951) | |
Net increase | 1,484,547 | $ 15,266,334 | 533,420 | $ 5,296,764 | |
Investor A1 | |||||
Shares sold | 172,822 | $ 1,789,159 | 328,409 | $ 3,216,644 | |
Shares issued to shareholders in reinvestment of dividends | 443,216 | 4,607,722 | 501,203 | 4,844,260 | |
Total issued | 616,038 | 6,396,881 | 829,612 | 8,060,904 | |
Shares redeemed | (1,302,313) | (13,478,561) | (1,812,255) | (17,442,375) | |
Net decrease | (686,275) | $ (7,081,680) | (982,643) | $ (9,381,471) | |
Investor B | |||||
Shares sold | 4,270 | $ 43,229 | 20,430 | $ 194,698 | |
Shares issued to shareholders in reinvestment of dividends | 19,786 | 205,456 | 29,317 | 283,368 | |
Total issued | 24,056 | 248,685 | 49,747 | 478,066 | |
Shares redeemed and automatic conversion of shares | (309,285) | (3,191,369) | (635,356) | (6,152,213) | |
Net decrease | (285,229) | $ (2,942,684) | (585,609) | $ (5,674,147) | |
Investor C | |||||
Shares sold | 704,190 | $ 7,313,334 | 504,698 | $ 4,881,220 | |
Shares issued to shareholders in reinvestment of dividends | 31,573 | 328,646 | 29,471 | 283,932 | |
Total issued | 735,763 | 7,641,980 | 534,169 | 5,165,152 | |
Shares redeemed | (320,565) | (3,353,350) | (103,375) | (1,017,741) | |
Net increase | 415,198 | $ 4,288,630 | 430,794 | $ 4,147,411 | |
Investor C1 | |||||
Shares sold | 98 | $ 1,002 | 771 | $ 7,603 | |
Shares issued to shareholders in reinvestment of dividends | 29,872 | 310,513 | 37,880 | 365,898 | |
Total issued | 29,970 | 311,515 | 38,651 | 373,501 | |
Shares redeemed | (128,288) | (1,304,912) | (134,896) | (1,271,338) | |
Net decrease | (98,318) | $ (993,397) | (96,245) | $ (897,837) | |
10. Subsequent Events: |
Management has evaluated the impact of all subsequent events on each Fund through the date the financial statements were issued and has determined
that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.
ANNUAL REPORT
JUNE 30, 2010
79
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Directors of BlackRock
Municipal Bond Fund, Inc. and the Shareholders and Board
of Trustees of BlackRock Multi-State Municipal Series Trust
(collectively the “Funds”):
We have audited the accompanying statements of assets and liabilities,
including the schedules of investments, of BlackRock Municipal Bond
Fund, Inc., comprised of BlackRock Short-Term Municipal Fund, BlackRock
Municipal Insured Fund, BlackRock National Municipal Fund, and
BlackRock High Yield Municipal Fund, as of June 30, 2010, and the related
statements of operations for the year then ended, the statements
of changes in net assets for the each of the two years in the period then
ended, and the financial highlights for each of the periods presented. We
have also audited the accompanying statement of assets and liabilities,
including the schedule of investments, of BlackRock New York Municipal
Bond Fund, one of the funds constituting BlackRock Multi-State Municipal
Series Trust, as of June 30, 2010, and the related statement of operations
for the year then ended, the statements of changes in net assets for each
of the two years in the period then ended, and the financial highlights for
each of the periods presented. These financial statements and financial
highlights are the responsibility of the Funds’ management. Our responsibil-
ity is to express an opinion on these financial statements and financial
highlights based on our audits.
We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial highlights are free of
material misstatement. The Funds are not required to have, nor were we
engaged to perform, an audit of their internal control over financial report-
ing. Our audits included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Funds’ internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and signifi-
cant estimates made by management, as well as evaluating the overall
financial statement presentation. Our procedures included confirmation
of securities owned as of June 30, 2010, by correspondence with the
custodians and brokers; where replies were not received from brokers, we
performed other auditing procedures. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
BlackRock Short-Term Municipal Fund, BlackRock Municipal Insured Fund,
BlackRock National Municipal Fund and BlackRock High Yield Municipal
Fund of BlackRock Municipal Bond Fund, Inc. as of June 30, 2010, the
results of their operations for the year then ended, the changes in their net
assets for each of the two years in the period then ended, and the financial
highlights for each of the periods presented, in conformity with accounting
principles generally accepted in the United States of America. Additionally,
in our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of BlackRock New York Municipal Bond Fund of BlackRock Multi-State
Municipal Series Trust as of June 30, 2010, the results of its operations for
the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the peri-
ods presented, in conformity with accounting principles generally accepted
in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
August 26, 2010
Important Tax Information (Unaudited)
The following table summarizes the taxable per share distributions paid by
BlackRock Municipal High Yield Fund of BlackRock Municipal Bond Fund,
Inc. during the taxable year ended June 30, 2010.
Record | Payable | Ordinary |
Date | Date | Income |
12/17/2009 | 12/18/2009 | $0.005096 |
All of the other net investment income distributions paid monthly by the Fund
qualify as tax-exempt interest dividends for federal income tax purposes.
All of the net investment income distributions paid monthly by BlackRock
Short-Term Municipal Fund, BlackRock Municipal Insured Fund, and
BlackRock National Municipal Fund of BlackRock Municipal Bond Fund,
Inc., and BlackRock New York Municipal Bond Fund of BlackRock Multi-
State Municipal Series Trust during the taxable years ended June 30, 2010
qualify as tax-exempt interest dividends for federal income tax purposes.
80 ANNUAL REPORT
JUNE 30, 2010
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements
The Board of Directors of BlackRock High Yield Municipal Fund (the “High
Yield Fund”), BlackRock Municipal Insured Fund (the “Insured Fund”),
BlackRock National Municipal Fund (the “National Fund”) and BlackRock
Short-Term Municipal Fund (the “Short-Term Fund”), each a series of
BlackRock Municipal Bond Fund, Inc. (the “Corporation”), and the Board
of Trustees of the BlackRock New York Municipal Bond Fund (the “New York
Fund,” along with the High Yield Fund, Insured Fund, National Fund, and
Short-Term Fund, each a “Fund,” and collectively, the “Funds”), a series of
BlackRock Multi-State Municipal Series Trust (the “Trust”), (collectively, the
“Board,” and the members of which are referred to as “Board Members”)
met on April 13, 2010 and May 11 – 12, 2010 to consider the approval of
the Corporation’s, on behalf of the High Yield Fund, the Insured Fund, the
National Fund and the Short-Term Fund, and the Trust’s, on behalf of the
New York Fund, investment advisory agreements (collectively, the “Advisory
Agreements”) with BlackRock Advisors, LLC (the “Manager”), each Fund’s
investment advisor. The Board also considered the approval of the sub-
advisory agreements (collectively, the “Sub-Advisory Agreements”) between
the Manager and BlackRock Investment Management, LLC (the “Sub-
Advisor”), with respect to each Fund. The Manager and the Sub-Advisor
are referred to herein as “BlackRock.” The Advisory Agreements and the
Sub-Advisory Agreements are referred to herein as the “Agreements.”
Activities and Composition of the Board
The Board consists of fourteen individuals, eleven of whom are not “inter-
ested persons” of the Corporation or the Trust as defined in the Investment
Company Act of 1940, as amended (the “1940 Act”) (the “Independent
Board Members”). The Board Members are responsible for the oversight
of the operations of the Funds and perform the various duties imposed on
the directors of investment companies by the 1940 Act. The Independent
Board Members have retained independent legal counsel to assist them
in connection with their duties. The Chairman of the Board is an Inde-
pendent Board Member. The Board has established five standing commit-
tees: an Audit Committee, a Governance and Nominating Committee, a
Compliance Committee, a Performance Oversight Committee and an
Executive Committee, each of which is composed of Independent Board
Members (except for the Performance Oversight Committee and the
Executive Committee, each of which also has one interested Board
Member) and is chaired by Independent Board Members. The Board
also has one ad hoc committee, the Joint Product Pricing Committee,
which consists of Independent Board Members and directors/trustees
of the boards of certain other BlackRock-managed funds, who are not
“interested persons” of their respective funds.
The Agreements
Pursuant to the 1940 Act, the Board is required to consider the contin-
uation of the Agreements on an annual basis. In connection with this
process, the Board assessed, among other things, the nature, scope
and quality of the services provided to each Fund by the personnel of
BlackRock and its affiliates, including investment management, administra-
tive and shareholder services, oversight of fund accounting and custody,
marketing services and assistance in meeting applicable legal and
regulatory requirements.
From time to time throughout the year, the Board, acting directly and
through its committees, considers at each of its meetings factors that are
relevant to its annual consideration of the renewal of the Agreements,
including the services and support provided by BlackRock to each Fund
and its shareholders. Among the matters the Board considered were: (a)
investment performance for one-, three- and five-year periods, as applica-
ble, against peer funds, and applicable benchmarks, if any, as well as sen-
ior management and portfolio managers’ analysis of the reasons for any
over performance or underperformance against its peers and/or bench-
mark, as applicable; (b) fees, including advisory, administration, if applica-
ble, and other amounts paid to BlackRock and its affiliates by each Fund
for services, such as transfer agency, marketing and distribution, call center
and fund accounting; (c) Fund operating expenses; (d) the resources
devoted to and compliance reports relating to each Fund’s investment
objective, policies and restrictions, (e) each Fund’s compliance with its
Code of Ethics and compliance policies and procedures; (f) the nature,
cost and character of non-investment management services provided by
BlackRock and its affiliates; (g) BlackRock’s and other service providers’
internal controls; (h) BlackRock’s implementation of the proxy voting poli-
cies approved by the Board; (i) execution quality of portfolio transactions;
(j) BlackRock’s implementation of each Fund’s valuation and liquidity pro-
cedures; (k) an analysis of contractual and actual management fees for
products with similar investment objectives across the open-end fund,
closed-end fund and institutional account product channels; and
(l) periodic updates on BlackRock’s business.
Board Considerations in Approving the Agreements
The Approval Process: Prior to the April 13, 2010 meeting, the Board
requested and received materials specifically relating to the Agreements.
The Board is engaged in a process with BlackRock to periodically review
the nature and scope of the information provided to better assist its
deliberations. The materials provided in connection with the April meeting
included (a) information independently compiled and prepared by Lipper,
Inc. (“Lipper”) on Fund fees and expenses, and the investment per-
formance of each Fund as compared with a peer group of funds as de-
termined by Lipper and, for the National Fund and the Short-Term Fund,
a customized peer group selected by BlackRock (collectively, “Peers”);
(b) information on the profitability of the Agreements to BlackRock and a
discussion of fall-out benefits to BlackRock and its affiliates and significant
shareholders; (c) a general analysis provided by BlackRock concerning
investment advisory fees charged to other clients, such as institutional
clients and closed-end funds, under similar investment mandates, as well
as the performance of such other clients, as applicable; (d) the impact of
economies of scale; (e) a summary of aggregate amounts paid by each
Fund to BlackRock; (f) sales and redemption data regarding each Fund’s
shares; and (g) if applicable, a comparison of management fees to similar
BlackRock open-end funds, as classified by Lipper.
At an in-person meeting held on April 13, 2010, the Board reviewed
materials relating to its consideration of the Agreements. As a result of
the discussions that occurred during the April 13, 2010 meeting, the
Board presented BlackRock with questions and requests for additional
information and BlackRock responded to these requests with additional
written information in advance of the May 11 – 12, 2010 Board meeting.
At an in-person meeting held on May 11 – 12, 2010, the Board, including
the Independent Board Members, unanimously approved the continuation
ANNUAL REPORT
JUNE 30, 2010
81
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)
of the Advisory Agreements between the Manager and the Corporation, on
behalf of the High Yield Fund, the Insured Fund, the National Fund and the
Short-Term Fund, and the Trust, on behalf of the New York Fund, and the
Sub-Advisory Agreements between the Manager and the Sub-Advisor with
respect to each Fund, each for a one-year term ending June 30, 2011.
In approving the continuation of the Agreements, the Board considered:
(a) | the nature, extent and quality of the services provided by BlackRock; |
(b) | the investment performance of each Fund and BlackRock; (c) the |
advisory fee and the cost of the services and profits to be realized by
BlackRock and its affiliates from their relationship with each Fund;
(d) economies of scale; and (e) other factors deemed relevant by the
Board Members.
The Board also considered other matters it deemed important to the
approval process, such as payments made to BlackRock or its affiliates
relating to the distribution of Fund shares, services related to the valuation
and pricing of Fund portfolio holdings, direct and indirect benefits to
BlackRock and its affiliates and significant shareholders from their rela-
tionship with each Fund and advice from independent legal counsel with
respect to the review process and materials submitted for the Board’s
review. The Board noted the willingness of BlackRock personnel to engage
in open, candid discussions with the Board. The Board did not identify any
particular information as controlling, and each Board Member may have
attributed different weights to the various items considered.
A. Nature, Extent and Quality of the Services Provided by BlackRock:
The Board, including the Independent Board Members, reviewed the
nature, extent and quality of services provided by BlackRock, including the
investment advisory services and the resulting performance of each Fund.
Throughout the year, the Board compared Fund performance to the per-
formance of a comparable group of mutual funds, and the performance
of a relevant benchmark, if any. The Board met with BlackRock’s senior
management personnel responsible for investment operations, including
the senior investment officers. The Board also reviewed the materials
provided by each Fund’s portfolio management team discussing Fund
performance and the Fund’s investment objective, strategies and outlook.
The Board considered, among other factors, the number, education
and experience of BlackRock’s investment personnel generally and each
Fund’s portfolio management team, investments by portfolio managers
in the funds they manage, BlackRock’s portfolio trading capabilities,
BlackRock’s use of technology, BlackRock’s commitment to compliance
and BlackRock’s approach to training and retaining portfolio managers
and other research, advisory and management personnel. The Board also
reviewed a general description of BlackRock’s compensation structure with
respect to each Fund’s portfolio management team and BlackRock’s ability
to attract and retain high-quality talent.
In addition to advisory services, the Board considered the quality of the
administrative and non-investment advisory services provided to each
Fund. BlackRock and its affiliates and significant shareholders provide
each Fund with certain administrative, transfer agency, shareholder and
other services (in addition to any such services provided to a Fund by
third parties) and officers and other personnel as are necessary for the
operations of the Fund. In addition to investment advisory services,
BlackRock and its affiliates provide each Fund with other services,
including (i) preparing disclosure documents, such as the prospectus,
the statement of additional information and periodic shareholder reports;
(ii) assisting with daily accounting and pricing; (iii) overseeing and coordi-
nating the activities of other service providers; (iv) organizing Board meet-
ings and preparing the materials for such Board meetings; (v) providing
legal and compliance support; and (vi) performing other administrative
functions necessary for the operation of the Fund, such as tax reporting,
fulfilling regulatory filing requirements, and call center services. The Board
reviewed the structure and duties of BlackRock’s fund administration,
accounting, legal and compliance departments and considered
BlackRock’s policies and procedures for assuring compliance with
applicable laws and regulations.
B. The Investment Performance of each Fund and BlackRock: The Board,
including the Independent Board Members, also reviewed and considered
the performance history of each Fund. In preparation for the April 13, 2010
meeting, the Board was provided with reports, independently prepared by
Lipper, which included a comprehensive analysis of each Fund’s perform-
ance. The Board also reviewed a narrative and statistical analysis of the
Lipper data that was prepared by BlackRock, which analyzed various fac-
tors that affect Lipper’s rankings. In connection with its review, the Board
received and reviewed information regarding the investment performance
of each Fund as compared to a representative group of similar funds as
determined by Lipper and to all funds in the Fund’s applicable Lipper cate-
gory and, for the National Fund and the Short-Term Fund, a customized
peer group selected by BlackRock. The Board was provided with a descrip-
tion of the methodology used by Lipper to select peer funds. The Board
regularly reviews the performance of each Fund throughout the year. The
Board attaches more importance to performance over relatively long
periods of time, typically three to five years.
The Board noted that the High Yield Fund ranked in the first, fourth, and
fourth quartiles against its Lipper Performance Composite for the one-year,
three-year and since inception periods reported, respectively. The Board
and BlackRock reviewed the reasons for the High Yield Fund’s underperfor-
mance during the three-year and since-inception periods compared with its
Peers. The Board was informed that, among other things, despite a sharp
rebound in relative performance over the last year, the High Yield Fund’s
performance ranking since inception, as well as the past three years,
remains heavily influenced by the periodic upheavals experienced by the
municipal securities market during the latter half of 2007 and throughout
much of 2008.
The Board noted that the Insured Fund ranked in the first, second, and first
quartiles against its Lipper Performance Composite for the one-, three- and
five-year periods reported, respectively.
The Board noted that the National Fund ranked in the second, second, and
first quartiles against its Customized Lipper Peer Group Composite for the
one-, three- and five-year periods reported, respectively.
The Board noted that the Short-Term Fund ranked in the fourth, third,
and fourth quartiles against its Customized Lipper Peer Group for the
one-, three- and five-year periods reported, respectively. The Board and
82 ANNUAL REPORT
JUNE 30, 2010
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)
BlackRock reviewed the reasons for the Short-Term Fund’s underperfor-
mance during these periods compared with its Peers. The Board was
informed that, among other things, the Short-Term Fund is more conserv-
atively positioned from both a duration and credit perspective than many
of its Peers.
The Board noted that the New York Fund ranked in the second, third,
and third quartiles against its Lipper Performance Composite for the
one-, three- and five-year periods reported, respectively. The Board and
BlackRock reviewed the reasons for the New York Fund’s underperformance
during the three- and five-year periods compared with its Peers. The Board
was informed that, among other things, the New York Fund began 2008
with an overweight in higher yielding credits and underweighted in AA and
AAA bonds. These holdings, as well as the New York Fund’s longer dated
positions, significantly underperformed the market as the credit markets
suffered severe dislocation and liquidity within the municipal securities
market disappeared.
The Board and BlackRock discussed BlackRock’s strategy for improving
the High Yield Fund’s, the Short-Term Fund’s and the New York Fund’s per-
formance and BlackRock’s commitment to providing the resources neces-
sary to assist each of these Fund’s portfolio managers and to improve the
Fund's performance.
The Board noted that BlackRock has made changes to the organization of
the overall fixed income group management structure designed to result in
a strengthened leadership team with clearer accountability.
C. Consideration of the Advisory Fees and the Cost of the Services
and Profits to be Realized by BlackRock and its Affiliates from their
Relationship with each Fund: The Board, including the Independent Board
Members, reviewed each Fund’s contractual advisory fee rate compared
with the other funds in its Lipper category. It also compared each Fund’s
total expenses, as well as actual management fees, to those of other funds
in its Lipper category. The Board considered the services provided and the
fees charged by BlackRock to other types of clients with similar investment
mandates, including separately managed institutional accounts.
The Board received and reviewed statements relating to BlackRock’s finan-
cial condition and profitability with respect to the services it provided each
Fund. The Board was also provided with a profitability analysis that detailed
the revenues earned and the expenses incurred by BlackRock for services
provided to each Fund. The Board reviewed BlackRock’s profitability with
respect to each Fund and other funds the Board currently oversees for the
year ended December 31, 2009 compared to available aggregate prof-
itability data provided for the year ended December 31, 2008. The Board
reviewed BlackRock’s profitability with respect to other fund complexes
managed by the Manager and/or its affiliates. The Board reviewed
BlackRock’s assumptions and methodology of allocating expenses in the
profitability analysis, noting the inherent limitations in allocating costs
among various advisory products. The Board recognized that profitability
may be affected by numerous factors including, among other things, fee
waivers and expense reimbursements by the Manager, the types of funds
managed, expense allocations and business mix, and the difficulty of
comparing profitability as a result of those factors.
The Board noted that, in general, individual fund or product line profitability
of other advisors is not publicly available. Nevertheless, to the extent such
information was available, the Board considered BlackRock’s operating
margin, in general, compared to the operating margin for leading invest-
ment management firms whose operations include advising open-end
funds, among other product types. That data indicates that operating mar-
gins for BlackRock with respect to its registered funds are generally consis-
tent with margins earned by similarly situated publicly traded competitors.
In addition, the Board considered, among other things, certain third party
data comparing BlackRock’s operating margin with that of other publicly-
traded asset management firms. That third party data indicates that larger
asset bases do not, in themselves, translate to higher profit margins.
In addition, the Board considered the cost of the services provided to
each Fund by BlackRock, and BlackRock’s and its affiliates’ profits relating
to the management and distribution of each Fund and the other funds
advised by BlackRock and its affiliates. As part of its analysis, the Board
reviewed BlackRock’s methodology in allocating its costs to the manage-
ment of each Fund. The Board also considered whether BlackRock has the
financial resources necessary to attract and retain high quality investment
management personnel to perform its obligations under the Agreements
and to continue to provide the high quality of services that is expected
by the Board.
The Board noted that the High Yield Fund’s contractual advisory fee rate
was lower than or equal to the median contractual advisory fee rate paid
by the High Yield Fund's Peers, in each case, before taking into account
any expense reimbursements or fee waivers. The Board also noted that the
High Yield Fund has an advisory fee arrangement that includes breakpoints
that adjust the fee rate downward as the size of the High Yield Fund
increases above certain contractually specified levels.
The Board noted that the Insured Fund’s contractual advisory fee rate was
lower than or equal to the median contractual advisory fee rate paid by the
Insured Fund's Peers, in each case, before taking into account any expense
reimbursements or fee waivers. The Board also noted that the Insured Fund
has an advisory fee arrangement that includes breakpoints that adjust the
fee rate downward as the aggregate assets of the Insured Fund, combined
with the assets of the National Fund and the Short-Term Fund increase
above certain contractually specified levels.
The Board noted that the National Fund’s contractual advisory fee rate was
above the median contractual advisory fee rate paid by the National Fund’s
Peers, in each case, before taking into account any expense reimburse-
ments or fee waivers. The Board also noted, however, that the National
Fund’s actual management fee rate (a combination of the advisory fee
rate and the administration fee rate), after giving effect to any expense
reimbursements or fee waivers by BlackRock, was reasonable relative
to the median actual management fee rate paid by the National Fund’s
Peers, after giving effect to any expense reimbursements or fee waivers.
The Board further noted that the National Fund has an advisory fee
arrangement that includes breakpoints that adjust the fee rate downward
as the aggregate assets of the National Fund, combined with the assets
of the Insured Fund and the Short-Term Fund, increase above certain
contractually specified levels.
ANNUAL REPORT
JUNE 30, 2010
83
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)
The Board noted that the Short-Term Fund’s contractual advisory fee rate
was lower than or equal to the median contractual advisory fee rate paid
by the Short-Term Fund's Peers, in each case, before taking into account
any expense reimbursements or fee waivers. The Board also noted that the
Short-Term Fund has an advisory fee arrangement that includes break-
points that adjust the fee rate downward as the aggregate assets of the
Short-Term Fund, combined with the assets of the Insured Fund and the
National Fund, increase above certain contractually specified levels. The
Board further noted that BlackRock has voluntarily agreed to waive fees or
reimburse expenses in order to limit, to a specified amount, the Short-Term
Fund’s total net expenses on a class-by-class basis, as applicable.
The Board noted that the New York Fund’s contractual advisory fee rate
was above the median contractual advisory fee rate paid by the New York
Fund’s Peers, in each case, before taking into account any expense reim-
bursements or fee waivers. The Board also noted, however, that the New
York Fund’s contractual management fee rate (a combination of the advi-
sory fee rate and the administration fee rate) was reasonable relative to
the median contractual management fee rate paid by the New York Fund’s
Peers, in each case, before taking into account any expense reimburse-
ments or fee waivers. The Board further noted that the New York Fund has
an advisory fee arrangement that includes breakpoints that adjust the fee
rate downward as the size of the New York Fund increases above certain
contractually specified levels.
D. Economies of Scale: The Board, including the Independent Board
Members, considered the extent to which economies of scale might be
realized as the assets of each Fund increase. The Board also considered
the extent to which each Fund benefits from such economies and whether
there should be changes in the advisory fee rate or structure in order to
enable each Fund to participate in these economies of scale, for example
through the use of revised breakpoints in the advisory fee based upon
the asset level of a Fund or the combined asset level of several Funds,
as applicable.
E. Other Factors Deemed Relevant by the Board Members: The Board,
including the Independent Board Members, also took into account other
ancillary or “fall-out” benefits that BlackRock or its affiliates and signifi-
cant shareholders may derive from their respective relationships with
each Fund, both tangible and intangible, such as BlackRock’s ability to
leverage its investment professionals who manage other portfolios, an
increase in BlackRock’s profile in the investment advisory community, and
the engagement of BlackRock’s affiliates and significant shareholders as
service providers to the Fund, including for administrative, transfer agency
and distribution services. The Board also considered BlackRock’s overall
operations and its efforts to expand the scale of, and improve the quality
of, its operations. The Board also noted that BlackRock may use and bene-
fit from third party research obtained by soft dollars generated by certain
mutual fund transactions to assist in managing all or a number of its other
client accounts. The Board further noted that BlackRock completed the
acquisition of a complex of exchange-traded funds (“ETFs”) on December
1, 2009, and that BlackRock’s funds may invest in such ETFs without any
offset against the management fees payable by the funds to BlackRock.
In connection with its consideration of the Agreements, the Board also
received information regarding BlackRock’s brokerage and soft dollar prac-
tices. The Board received reports from BlackRock which included informa-
tion on brokerage commissions and trade execution practices throughout
the year.
The Board noted the competitive nature of the open-end fund marketplace,
and that shareholders are able to redeem their Fund shares if they believe
that the Fund’s fees and expenses are too high or if they are dissatisfied
with the performance of the Fund.
Conclusion
The Board, including the Independent Board Members, unanimously
approved the continuation of the Advisory Agreements between the
Manager and the Corporation, on behalf of the High Yield Fund, the Insured
Fund, the National Fund and the Short-Term Fund, and the Trust, on behalf
of the New York Fund, for a one-year term ending June 30, 2011 and the
Sub-Advisory Agreements between the Manager and the Sub-Advisor, with
respect to each Fund, for a one-year term ending June 30, 2011. As part
of its approval, the Board considered the detailed review of BlackRock’s fee
structure, as it applies to each Fund, being conducted by the ad hoc Joint
Product Pricing Committee. Based upon its evaluation of all of the afore-
mentioned factors in their totality, the Board, including the Independent
Board Members, was satisfied that the terms of the Agreements were fair
and reasonable and in the best interest of each Fund and its shareholders.
In arriving at a decision to approve the Agreements, the Board did not
identify any single factor or group of factors as all-important or controlling,
but considered all factors together, and different Board Members may
have attributed different weights to the various factors considered. The
Independent Board Members were also assisted by the advice of inde-
pendent legal counsel in making this determination. The contractual fee
arrangements for each Fund reflect the results of several years of review
by the Board Members and predecessor Board Members, and discussions
between such Board Members (and predecessor Board Members) and
BlackRock. Certain aspects of the arrangements may be the subject of
more attention in some years than in others, and the Board Members’
conclusions may be based in part on their consideration of these
arrangements in prior years.
84 ANNUAL REPORT
JUNE 30, 2010
Officers and Directors | |||||
Number of BlackRock- | |||||
Advised Registered | |||||
Length | Investment Companies | ||||
Position(s) | of Time | (“RICs”) Consisting of | |||
Name, Address | Held with | Served as | Investment Portfolios | Public | |
and Year of Birth | Funds | a Director2 | Principal Occupation(s) During Past 5 Years | (“Portfolios”) Overseen | Directorships |
Non-Interested Directors1 | |||||
Robert M. Hernandez | Chairman of the | Since | Director, Vice Chairman and Chief Financial Officer of USX | 36 RICs consisting of | ACE Limited |
55 East 52nd Street | Board, Director | 2007 | Corporation (energy and steel business) from 1991 to 2001. | 97 Portfolios | (insurance company); |
New York, NY 10055 | and Member of | Eastman Chemical | |||
1944 | the Audit | Company (chemical); | |||
Committee | RTI International | ||||
Metals, Inc. (metals); | |||||
TYCO Electronics | |||||
(electronics) | |||||
Fred G. Weiss | Vice Chairman | Since | Managing Director, FGW Associates (consulting and investment | 36 RICs consisting of | Watson |
55 East 52nd Street | of the Board, | 2007 | company) since 1997; Director, Michael J. Fox Foundation for | 97 Portfolios | Pharmaceutical, Inc. |
New York, NY 10055 | Chairman of the | Parkinson’s Research since 2000; Director, BTG International | |||
1941 | Audit Committee | Plc (a global technology commercialization company) from | |||
and Director | 2001 to 2007. | ||||
James H. Bodurtha | Director | Since | Director, The China Business Group, Inc. (consulting firm) since | 36 RICs consisting of | None |
55 East 52nd Street | 1995 | 1996 and Executive Vice President thereof from 1996 to 2003; | 97 Portfolios | ||
New York, NY 10055 | Chairman of the Board, Berkshire Holding Corporation since 1980. | ||||
1944 | |||||
Bruce R. Bond | Director | Since | Trustee and Member of the Governance Committee, State Street | 36 RICs consisting of | None |
55 East 52nd Street | 2007 | Research Mutual Funds from 1997 to 2005; Board Member | 97 Portfolios | ||
New York, NY 10055 | of Governance, Audit and Finance Committee, Avaya Inc. | ||||
1946 | (computer equipment) from 2003 to 2007. | ||||
Donald W. Burton | Director | Since | Managing General Partner, The Burton Partnership, LP (an | 36 RICs consisting of | Knology, Inc. (tele- |
55 East 52nd Street | 2007 | investment partnership) since 1979; Managing General Partner, | 97 Portfolios | communications); | |
New York, NY 10055 | The South Atlantic Venture Funds since 1983; Member of the | Capital Southwest | |||
1944 | Investment Advisory Council of the Florida State Board of | (financial) | |||
Administration from 2001 to 2007. | |||||
Stuart E. Eizenstat | Director | Since | Partner and Head of International Practice, Covington and | 36 RICs consisting of | Alcatel-Lucent (tele- |
55 East 52nd Street | 2007 | Burling (law firm) since 2001; International Advisory Board | 97 Portfolios | communications); | |
New York, NY 10055 | Member, The Coca Cola Company since 2002; Advisory Board | Global Specialty | |||
1943 | Member, BT Americas (telecommunications) since 2004; | Metallurgical (metal- | |||
Member of the Board of Directors, Chicago Climate Exchange | lurgical industry); | ||||
(environmental) since 2006; Member of the International | UPS Corp. | ||||
Advisory Board GML (energy) since 2003. | (delivery service) | ||||
Kenneth A. Froot | Director | Since | Professor, Harvard University since 1992. | 36 RICs consisting of | None |
55 East 52nd Street | 2005 | 97 Portfolios | |||
New York, NY 10055 | |||||
1957 | |||||
John F. O’Brien | Director | Since | Chairman and Director, Woods Hole Oceanographic Institute | 36 RICs consisting of | Cabot Corp. |
55 East 52nd Street | 2007 | since 2009 and Trustee thereof from 2003 to 2009; Director, | 97 Portfolios | (chemicals); LKQ | |
New York, NY 10055 | Allmerica Financial Corporation from 1995 to 2003; Director, | Corp. (auto parts | |||
1943 | ABIOMED from 1989 to 2006; Director, Ameresco, Inc. | manufacturing); | |||
(energy solutions company) from 2006 to 2007; Vice Chairman | TJX Companies, Inc. | ||||
and Director, Boston Lyric Opera from 2002 to 2007. | (retailer) | ||||
Roberta Cooper Ramo | Director | Since | Shareholder, Modrall, Sperling, Roehl, Harris & Sisk, P.A. (law | 36 RICs consisting of | None |
55 East 52nd Street | 2000 | firm) since 1993; Chairman of the Board, Cooper’s Inc., (retail) | 97 Portfolios | ||
New York, NY 10055 | since 2000; Director of ECMC Group (service provider to | ||||
1942 | students, schools and lenders) since 2001; President, The | ||||
American Law Institute (non-profit) since 2008; President, | |||||
American Bar Association from 1995 to 1996. |
ANNUAL REPORT
JUNE 30, 2010
85
Officers and Directors (continued) | |||||
Number of BlackRock- | |||||
Advised Registered | |||||
Length | Investment Companies | ||||
Position(s) | of Time | (“RICs”) Consisting of | |||
Name, Address | Held with | Served as | Investment Portfolios | Public | |
and Year of Birth | Funds | a Director2 | Principal Occupation(s) During Past 5 Years | (“Portfolios”) Overseen | Directorships |
Non-Interested Directors1 (concluded) | |||||
David H. Walsh | Director | Since | Director, National Museum of Wildlife Art since 2007; Director, | 36 RICs consisting of | None |
55 East 52nd Street | 2007 | Ruckleshaus Institute and Haub School of Natural Resources | 97 Portfolios | ||
New York, NY 10055 | at the University of Wyoming from 2006 to 2008; Trustee, | ||||
1941 | University of Wyoming Foundation since 2008; Director, The | ||||
American Museum of Fly Fishing since 1997; Director, The | |||||
National Audubon Society from 1998 to 2005. | |||||
Richard R. West | Director | Since | Dean Emeritus, New York University’s Leonard N. Stern School | 36 RICs consisting of | Bowne & Co., Inc. |
55 East 52nd Street | and Member | 1981 | of Business Administration since 1995. | 97 Portfolios | (financial printers); |
New York, NY 10055 | of the Audit | Vornado Realty Trust | |||
1938 | Committee | (real estate company); | |||
Alexander’s Inc.(real | |||||
estate company) | |||||
1 Directors serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. | |||||
2 Date shown is the earliest date a person has served for the Funds covered by this annual report. Following the combination of Merrill Lynch Investment | |||||
Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned | |||||
and consolidated into three new Fund boards in 2007. As a result, although the chart shows certain directors as joining the Funds’ board in 2007, each | |||||
director first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: James H. Bodurtha, 1995; Bruce R. Bond, 2005; | |||||
Donald W. Burton, 2002; Stuart E. Eizenstat, 2001; Kenneth A. Froot, 2005; Robert M. Hernandez, 1996; John F. O’Brien, 2004; Roberta Cooper Ramo, | |||||
2000; David H. Walsh, 2003; Fred G. Weiss, 1998; and Richard R. West, 1978. | |||||
Interested Directors3 | |||||
Richard S. Davis | Director | Since | Managing Director, BlackRock, Inc. since 2005; Chief Executive | 169 RICs consisting of | None |
55 East 52nd Street | 2007 | Officer, State Street Research & Management Company from | 291 Portfolios | ||
New York, NY 10055 | 2000 to 2005; Chairman of the Board of Trustees, State Street | ||||
1945 | Research Mutual Funds from 2000 to 2005. | ||||
Laurence D. Fink | Director | Since | Chairman and Chief Executive Officer of BlackRock, Inc. since its | 36 RICs consisting of | None |
55 East 52nd Street | 2007 | formation in 1998 and of BlackRock, Inc.’s predecessor entities | 97 Portfolios | ||
New York, NY 10055 | since 1988 and Chairman of the Executive and Management | ||||
1952 | Committees; Formerly Managing Director, The First Boston Corp- | ||||
oration, Member of its Management Committee, Co-head of its | |||||
Taxable Fixed Income Division and Head of its Mortgage and Real | |||||
Estate Products Group; Chairman of the Board of several of | |||||
BlackRock’s alternative investment vehicles; Director of several of | |||||
BlackRock’s offshore funds; Member of the Board of Trustees of | |||||
New York University, Chair of the Financial Affairs Committee and | |||||
a member of the Executive Committee, the Ad Hoc Committee on | |||||
Board Governance, and the Committee on Trustees; Co-Chairman | |||||
of the NYU Hospitals Center Board of Trustees, Chairman of the | |||||
Development/Trustee Stewardship Committee and Chairman of | |||||
the Finance Committee; Trustee, The Boys’ Club of New York. | |||||
Henry Gabbay | Director | Since | Consultant, BlackRock, Inc. from 2007 to 2008; Managing | 169 RICs consisting of | None |
55 East 52nd Street | 2007 | Director, BlackRock, Inc. from 1989 to 2007; Chief | 291 Portfolios | ||
New York, NY 10055 | Administrative Officer, BlackRock Advisors, LLC from 1998 to | ||||
1947 | 2007; President of BlackRock Funds and BlackRock Bond | ||||
Allocation Target Shares from 2005 to 2007 and Treasurer of | |||||
certain closed-end funds in the BlackRock fund complex from | |||||
1989 to 2006. |
3 Messrs. Davis and Fink are both “interested persons,” as defined in the Investment Company Act of 1940, of the Funds based on their positions with
BlackRock, Inc. and its affiliates. Mr. Gabbay is an "interested person" of the Funds based on his former positions with BlackRock, Inc. and its affiliated as well
as his ownership of BlackRock, Inc. and The PNC Financial Services Group, Inc. securities. Directors serve until their resignation, removal or death, or until
December 31 of the year in which they turn 72.
86 ANNUAL REPORT
JUNE 30, 2010
Officers and Directors (concluded) | ||||||
Position(s) | ||||||
Name, Address | Held with | Length of | ||||
and Year of Birth | Funds | Time Served | Principal Occupation(s) During Past 5 Years | |||
Officers1 | ||||||
Anne Ackerley | President | Since | Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised funds from 2007 to | |||
55 East 52nd Street | and Chief | 20092 | 2009; Chief Operating Officer of BlackRock’s Global Client Group (GCG) since 2009; Chief Operating Officer of | |||
New York, NY 10055 | Executive | BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006. | ||||
1962 | Officer | |||||
Jeffrey Holland, CFA | Vice | Since | Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2006 to 2009; Chief Operating Officer | |||
55 East 52nd Street | President | 2009 | of BlackRock’s U.S. Retail Group since 2009; Co-head of Product Development and Management for BlackRock’s U.S. | |||
New York, NY 10055 | Retail Group from 2007 to 2009; Product Manager of Raymond James & Associates from 2003 to 2006. | |||||
1971 | ||||||
Brendan Kyne | Vice | Since | Managing Director of BlackRock, Inc. since 2010; Director of BlackRock, Inc. from 2008 to 2009; Head of Product | |||
55 East 52nd Street | President | 2009 | Development and Management for BlackRock's U.S. Retail Group since 2009, Co-head thereof from 2007 to 2009; | |||
New York, NY 10055 | Vice President of BlackRock, Inc. from 2005 to 2008. | |||||
1977 | ||||||
Brian Schmidt | Vice | Since | Managing Director of BlackRock, Inc. since 2004; Various positions with U.S. Trust Company from 1991 to 2003 | |||
55 East 52nd Street | President | 2009 | including Director from 2001 to 2003 and Senior Vice President from 1998 to 2003; Vice President, Chief Financial | |||
New York, NY 10055 | Officer and Treasurer of Excelsior Funds, Inc., Excelsior Tax-Exempt Funds, Inc. and Excelsior Funds Trust from 2001 | |||||
1958 | to 2003. | |||||
Neal Andrews | Chief | Since | Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund | |||
55 East 52nd Street | Financial | 2007 | Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006. | |||
New York, NY 10055 | Officer | |||||
1966 | ||||||
Jay Fife | Treasurer | Since | Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch | |||
55 East 52nd Street | 2007 | Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director | ||||
New York, NY 10055 | of MLIM Fund Services Group from 2001 to 2006. | |||||
1970 | ||||||
Brian Kindelan | Chief | Since | Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of | |||
55 East 52nd Street | Compliance | 2007 | BlackRock, Inc. since 2005. | |||
New York, NY 10055 | Officer | |||||
1959 | ||||||
Howard Surloff | Secretary | Since | Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General | |||
55 East 52nd Street | 2007 | Counsel (U.S.) of Goldman Sachs Asset Management, L.P. from 1993 to 2006. | ||||
New York, NY 10055 | ||||||
1965 | ||||||
1 Officers of the Funds serve at the pleasure of the Board. | ||||||
2 Ms. Ackerley has been President and Chief Executive Officer since 2009 and Vice President from 2007 to 2009. | ||||||
Further information about the Funds’ Officers and Trustees is available in the Funds’ Statement of Additional Information, which can be obtained without | ||||||
charge by calling (800) 441-7762. | ||||||
Investment Advisor | Custodians | Accounting Agent | Legal Counsel | Address of Funds | ||
BlackRock Advisors, LLC | The Bank of | State Street Bank | Willkie Farr & Gallagher LLP | 100 Bellevue Parkway | ||
Wilmington, DE 19809 | New York Mellon3 | and Trust Company | New York, NY 10019 | Wilmington, DE 19809 | ||
New York, NY 10286 | Princeton, NJ 08540 | |||||
Sub-Advisor | Independent Registered | |||||
BlackRock Investment | State Street Bank | Distributor | Public Accounting Firm | |||
and Trust Company4 | ||||||
Management, LLC | BlackRock Investments, LLC | Deloitte & Touche LLP | ||||
Plainsboro, NJ 08536 | Boston, MA 02111 | New York, NY 10022 | Princeton, NJ 08540 |
Transfer Agent
BNY Mellon Investment
Servicing (US) Inc.
Wilmington, DE 19809
3 | For BlackRock Municipal Bond Fund, Inc. |
4 | For BlackRock Multi-State Municipal Series Trust. |
ANNUAL REPORT
JUNE 30, 2010
87
Additional Information
General Information
Electronic Delivery
Electronic copies of most financial reports and prospectuses are available
on the Fund’s website or shareholders can sign up for e-mail notifications
of quarterly statements, annual and semi-annual reports and prospectuses
by enrolling in the Fund’s electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisors, Banks or
Brokerages:
Please contact your financial advisor. Please note that not all investment
advisors, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock website at
http://www.blackrock.com/edelivery
2) Select “eDelivery” under the “More Information” section
3) Log into your account
Householding
The Funds will mail only one copy of shareholder documents, including
prospectuses, annual and semi-annual reports and proxy statements, to
shareholders with multiple accounts at the same address. This practice is
commonly called “householding” and 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 con-
tact the Fund at (800) 441-7762.
Availability of Quarterly Portfolio Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the
Securities and Exchange Commission (the “SEC”) for the first and third
quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are avail-
able 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.
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 avail-
able (1) without charge, upon request, by calling (800) 441-7762;
(2) at http://www.blackrock.com; and (3) on the SEC’s website at
http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Funds voted proxies relating to securities
held in the Funds’ portfolio during the most recent 12-month period
ended June 30 is available upon request and without charge (1) at
http://www.blackrock.com or by calling (800) 441-7762 and (2) on the
SEC’s website at http://www.sec.gov.
Shareholder Privileges
Account Information
Call us at (800) 441-7762 8:00 AM to 6:00 PM EST on any business
day to get information about your account balances, recent transactions
and share prices. You can also reach us on the Web at
http://www.blackrock.com/funds.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to
have $50 or more automatically deducted from their checking or savings
account and invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as
long as their account balance is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
88 ANNUAL REPORT
JUNE 30, 2010
Additional Information (concluded)
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and
former fund investors and individual clients (collectively, “Clients”) and
to safeguarding their non-public personal information. The following 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 applica-
tions, forms or other documents; (ii) information about your transactions
with us, our affiliates, or others; (iii) information we receive from a con-
sumer 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 con-
fidentiality 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.
ANNUAL REPORT
JUNE 30, 2010
89
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 SmallCap Fund | BlackRock Natural Resources Trust | ||
BlackRock Asset Allocation Portfolio† | BlackRock Health Sciences Opportunities Portfolio | BlackRock Pacific Fund | ||
BlackRock Balanced Capital Fund† | BlackRock Healthcare Fund | BlackRock Science & Technology | ||
BlackRock Basic Value Fund | BlackRock Index Equity Portfolio* | Opportunities Portfolio | ||
BlackRock Capital Appreciation Fund | BlackRock International Fund | BlackRock Small Cap Core Equity Portfolio | ||
BlackRock Energy & Resources Portfolio | BlackRock International Index Fund | BlackRock Small Cap Growth Equity Portfolio | ||
BlackRock Equity Dividend Fund | BlackRock International Opportunities Portfolio | BlackRock Small Cap Growth Fund II | ||
BlackRock EuroFund | BlackRock International Value Fund | BlackRock Small Cap Index Fund | ||
BlackRock Focus Growth Fund | BlackRock Large Cap Core Fund | BlackRock Small/Mid-Cap Growth Portfolio | ||
BlackRock Focus Value Fund | BlackRock Large Cap Core Plus Fund | BlackRock S&P 500 Index Fund | ||
BlackRock Global Allocation Fund† | BlackRock Large Cap Growth Fund | BlackRock U.S. Opportunities Portfolio | ||
BlackRock Global Dynamic Equity Fund | BlackRock Large Cap Value Fund | BlackRock Utilities and Telecommunications Fund | ||
BlackRock Global Emerging Markets Fund | BlackRock Latin America Fund | BlackRock Value Opportunities Fund | ||
BlackRock Global Financial Services Fund | BlackRock Mid-Cap Growth Equity Portfolio | BlackRock World Gold Fund | ||
BlackRock Global Growth Fund | BlackRock Mid-Cap Value Equity Portfolio | |||
BlackRock Global Opportunities Portfolio | BlackRock Mid Cap Value Opportunities Fund | |||
Fixed Income Funds | ||||
BlackRock Bond Portfolio | BlackRock Income Builder Portfolio† | BlackRock Multi-Sector Bond Portfolio | ||
BlackRock Emerging Market Debt Portfolio | BlackRock Inflation Protected Bond Portfolio | BlackRock Short-Term Bond Fund | ||
BlackRock Floating Rate Income Portfolio | BlackRock Intermediate Government | BlackRock Strategic Income | ||
BlackRock GNMA Portfolio | Bond Portfolio | Opportunities Portfolio | ||
BlackRock Government Income Portfolio | BlackRock International Bond Portfolio | BlackRock Total Return Fund | ||
BlackRock High Income Fund | BlackRock Long Duration Bond Portfolio | BlackRock Total Return Portfolio II | ||
BlackRock High Yield Bond Portfolio | BlackRock Low Duration Bond Portfolio | BlackRock World Income Fund | ||
BlackRock Income Portfolio† | BlackRock Managed Income Portfolio | |||
Municipal Bond Funds | ||||
BlackRock AMT-Free Municipal Bond Portfolio | BlackRock Kentucky Municipal Bond Portfolio | BlackRock New York Municipal Bond Fund | ||
BlackRock California Municipal Bond Fund | BlackRock Municipal Insured Fund | BlackRock Ohio Municipal Bond Portfolio | ||
BlackRock High Yield Municipal Fund | BlackRock National Municipal Fund | BlackRock Pennsylvania Municipal Bond Fund | ||
BlackRock Intermediate Municipal Fund | BlackRock New Jersey Municipal Bond Fund | BlackRock Short-Term Municipal Fund | ||
Target Risk & Target Date Funds† | ||||
BlackRock Prepared Portfolios | BlackRock Lifecycle Prepared Portfolios | BlackRock LifePath Portfolios | ||
Conservative Prepared Portfolio | 2010 | 2035 | Retirement | 2040 |
Moderate Prepared Portfolio | 2015 | 2040 | 2020 | 2045 |
Growth Prepared Portfolio | 2020 | 2045 | 2025 | 2050 |
Aggressive Growth Prepared Portfolio | 2025 | 2050 | 2030 | 2055 |
2030 | 2035 |
* | 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, LLC. You should consider the investment objectives, risks, charges and
expenses of the funds under consideration carefully before investing. Each fund’s prospectus contains this and other information and is available at
www. | blackrock.com or by calling (800) 441-7762 or from your financial advisor. The prospectus should be read carefully before investing. |
90 ANNUAL REPORT
JUNE 30, 2010
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.
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Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end
of the period covered by this report, applicable to the registrant’s principal executive officer,
principal financial officer and principal accounting officer, or persons performing similar
functions. During the period covered by this report, there have been no amendments to or
waivers granted under the code of ethics. A copy of the code of ethics is available without
charge at www.blackrock.com.
Item 3 – Audit Committee Financial Expert – The registrant’s board of directors or trustees, as
applicable (the “board of directors”), has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent:
Robert M. Hernandez
Fred G. Weiss
Richard R. West
Under applicable securities laws, a person determined to be an audit committee financial
expert will not be deemed an “expert” for any purpose, including without limitation for the
purposes of Section 11 of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation or identification as an
audit committee financial expert does not impose on such person any duties, obligations, or
liabilities greater than the duties, obligations, and liabilities imposed on such person as a
member of the audit committee and board of directors in the absence of such designation or
identification.
Item 4 – Principal Accountant Fees and Services
(a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||
Current | Previous | Current | Previous | Current | Previous | Current | Previous | |
Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | Fiscal Year | |
Entity Name | End | End | End | End | End | End | End | End |
BlackRock New | ||||||||
York Municipal | ||||||||
Bond Fund of | $28,200 | $28,200 | $0 | $0 | $6,100 | $6,100 | $66 | $1,028 |
BlackRock Multi- | ||||||||
State Municipal | ||||||||
Series Trust |
1 The nature of the services include assurance and related services reasonably related to the performance of the audit of
financial statements not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax planning.
3 The nature of the services include a review of compliance procedures and attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant’s audit committee (the “Committee”) has adopted policies and
procedures with regard to the pre-approval of services. Audit, audit-related and tax
compliance services provided to the registrant on an annual basis require specific pre-
approval by the Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to the registrant’s affiliated
service providers that relate directly to the operations and the financial reporting of the
registrant. Certain of these non-audit services that the Committee believes are a) consistent
with the SEC’s auditor independence rules and b) routine and recurring services that will
not impair the independence of the independent accountants may be approved by the
Committee without consideration on a specific case-by-case basis (“general pre-approval”).
The term of any general pre-approval is 12 months from the date of the pre-approval, unless
the Committee provides for a different period. Tax or other non-audit services provided to
the registrant which have a direct impact on the operation or financial reporting of the
registrant will only be deemed pre-approved provided that any individual project does not
exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose,
multiple projects will be aggregated to determine if they exceed the previously mentioned
cost levels.
Any proposed services exceeding the pre-approved cost levels will require specific
pre-approval by the Committee, as will any other services not subject to general pre-
approval (e.g., unanticipated but permissible services). The Committee is informed of each
service approved subject to general pre-approval at the next regularly scheduled in-person
board meeting. At this meeting, an analysis of such services is presented to the Committee
for ratification. The Committee may delegate to the Committee Chairman the authority to
approve the provision of and fees for any specific engagement of permitted non-audit
services, including services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by
the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable | ||
(g) Affiliates’ Aggregate Non-Audit Fees: | ||
Current Fiscal Year | Previous Fiscal Year | |
Entity Name | End | End |
BlackRock New York | ||
Municipal Bond Fund of | ||
BlackRock Multi-State | $16,943 | $409,628 |
Municipal Series Trust |
(h) The registrant’s audit committee has considered and determined that the provision of
non-audit services that were rendered to the registrant’s investment adviser (not including
any non-affiliated sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant’s investment adviser), and any entity
controlling, controlled by, or under common control with the investment adviser that
provides ongoing services to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal
accountant’s independence.
Regulation S-X Rule 2-01(c)(7)(ii) – $10,777, 0%
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 – See Item 2 |
12(a)(2) – Certifications – Attached hereto |
12(a)(3) – Not Applicable |
12(b) – Certifications – Attached hereto |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment
Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
BlackRock New York Municipal Bond Fund of BlackRock Multi-State Municipal Series
Trust
By: /s/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer of
BlackRock New York Municipal Bond Fund of BlackRock Multi-State Municipal
Series Trust
Date: September 2, 2010
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/ Anne F. Ackerley
Anne F. Ackerley
Chief Executive Officer (principal executive officer) of
BlackRock New York Municipal Bond Fund of BlackRock Multi-State Municipal
Series Trust
Date: September 2, 2010
By: /s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock New York Municipal Bond Fund of BlackRock Multi-State Municipal
Series Trust
Date: September 2, 2010