UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-04802
Name of Fund: BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Strategic Municipal Opportunities Fund of BlackRock 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: 05/31/2019
Date of reporting period: 11/30/2018
Item 1 – Report to Stockholders
NOVEMBER 30, 2018
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SEMI-ANNUAL REPORT (UNAUDITED) | |  |
BlackRock California Municipal Series Trust
| Ø | | BlackRock California Municipal Opportunities Fund |
BlackRock Multi-State Municipal Series Trust
| Ø | | BlackRock New Jersey Municipal Bond Fund |
| Ø | | BlackRock Pennsylvania Municipal Bond Fund |
BlackRock Municipal Series Trust
| Ø | | BlackRock Strategic Municipal Opportunities Fund |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call 1-800-441-7762 to inform BlackRock that you wish to continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC, BlackRock Fund Advisors or their affiliates, or all funds held with your financial intermediary, as applicable.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by: (i) accessing the BlackRock website at www.blackrock.com/edelivery and logging into your accounts, if you hold accounts directly with BlackRock, or (ii) contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.
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| Not FDIC Insured • May Lose Value • No Bank Guarantee |
The Markets in Review
Dear Shareholder,
In the 12 months ended November 30, 2018, ongoing strength in corporate profits sustained the equity market, while rising interest rates constrained bond returns. Though the market’s appetite for risk remained healthy for most of the reporting period, risk-taking declined sharply later in the reporting period. As a result, shorter-term, higher-quality securities led the bond market, and U.S. equities outperformed most international stock markets.
Volatility rose in emerging market stocks, as the rising U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. U.S.-China trade relations and debt concerns adversely affected the Chinese stock market, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe led to negative performance for European equities.
In fixed income markets, short-term U.S. Treasury interest rates rose the fastest, while longer-term rates slightly increased. This led to a negative return for long-term U.S. Treasuries and a substantial flattening of the yield curve. Many investors are concerned with the flattening yield curve as a harbinger of recession. However, given the extraordinary monetary measures in the last decade, we believe a more accurate barometer for the economy is the returns along the risk spectrums in stock and bond markets. Although the fundamentals in credit markets remained relatively solid, investment-grade bonds declined slightly, and high-yield bonds posted flat returns. Recent sell-offs in risk assets have flattened asset returns along the risk spectrum somewhat, which bears further scrutiny in the months ahead.
In response to rising growth and inflation, the U.S. Federal Reserve (the “Fed”) increased short-term interest rates four times during the reporting period. The Fed also continued to reduce its balance sheet, gradually reversing the unprecedented stimulus measures it enacted after the financial crisis. We believe the Fed is likely to continue to raise interest rates in the coming year. By our estimation, the Fed’s neutral interest rate, or the theoretical rate that is neither stimulative nor restrictive to the economy, is approximately 3.0%. With that perspective, the Fed’s current policy is still mildly stimulative to the U.S. economy, which leaves room for further Fed rate hikes to arrive at monetary policy that is a neutral factor for economic growth.
Volatility in the U.S. equity market spiked in October, as a wide range of risks were brought to bear on markets, ranging from rising interest rates and slowing global growth to heightened trade tensions and political turmoil in several countries, including the United States. Although fears of recession drove equity volatility higher at the end of 2018, we continue to believe the probability of recession in 2019 remains relatively low.
Economic growth and global earnings are likely to slow somewhat in 2019 — the tax cut stimulus will be less pronounced, and the lagged effects of the Fed’s four rate hikes in 2018 will gain traction in 2019. Trade frictions look more baked into asset prices than a year ago, but markets may be overlooking European political risks. Consequently, we are cautious on European equities, as European unity remains tenuous with a history offlare-ups. We continue to prefer to take risk in U.S. and emerging market equities. Within U.S. equities, we believe that companies with high-quality earnings and strong balance sheets offer the most attractive risk/rewardtrade-off. Going into 2019, we also favor short-term bonds over long-term bonds because they offer nearly equivalent yields with far lower volatility.
In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visitblackrock.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
Rob Kapito
President, BlackRock Advisors, LLC
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| Total Returns as of November 30, 2018 |
| | | 6-month | | 12-month |
U.S. large cap equities
(S&P 500® Index) | | 3.02% | | 6.27% |
U.S. small cap equities
(Russell 2000® Index) | | (5.53) | | 0.57 |
International equities
(MSCI Europe, Australasia,
Far East Index) | | (7.97) | | (7.94) |
Emerging market equities
(MSCI Emerging Markets Index) | | (9.89) | | (9.09) |
3-month Treasury bills
(ICE BofAML3-Month
U.S. Treasury Bill Index) | | 1.04 | | 1.80 |
U.S. Treasury securities
(ICE BofAML10-Year
U.S. Treasury Index) | | (0.28) | | (2.70) |
U.S. investment grade bonds
(Bloomberg Barclays U.S.
Aggregate Bond Index) | | (0.30) | | (1.34) |
Tax-exempt municipal bonds
(S&P Municipal Bond Index) | | 0.36 | | 1.16 |
U.S. high yield bonds
(Bloomberg Barclays
U.S. Corporate High Yield
2% Issuer Capped Index) | | 0.30 | | 0.36 |
| Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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| 2 | | THIS PAGEISNOT PARTOF YOUR FUND REPORT |
Table of Contents
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| Fund Summary as of November 30, 2018 | | BlackRock California Municipal Opportunities Fund |
Investment Objective
BlackRock California Municipal Opportunities Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from Federal and California income taxes.
Portfolio Management Commentary
How did the Fund perform?
For the six-month period ended November 30, 2018, the Fund underperformed its primary benchmark, the S&P® Municipal Bond Index. For the same period, the Fund outperformed its secondary benchmark, the S&P® California Municipal Bond Index, with the exception of the Fund’s Investor A Shares, which performed in line with the secondary benchmark, and the Fund’s Investor C and C1 Shares, which underperformed. The following discussion of relative performance pertains to the S&P® California Municipal Bond Index.
What factors influenced performance?
Although concerns about tighter Fed policy contributed to slightly negative returns for taxable investment-grade bonds, the national municipal bond market posted a modest gain. Tax-exempt bonds were aided by the combination of steady investor demand and low new-issue supply. In a reversal of the trend that was in place over the prior 12 months, California municipal issues narrowly underperformed the national index due to higher new issuance relative to other states.
Given that bond prices fell, income made the largest contribution to total return. The Fund’s use of leverage, while amplifying the impact of price weakness, aided returns by augmenting income.
The Fund sought to manage interest rate risk using U.S. Treasury futures. Since Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive impact on Fund performance.
The Fund benefited from its investments in higher-quality securities, especially those rated single A. Conversely, its positions in lower-quality securities lagged amid large outflows from high-yield municipal bond funds. At the sector level, overweight positions in essential-service revenue bonds, particularly those in the transportation and utilities sectors, added value. However, holdings in tobacco issues detracted. The Fund was also hurt by its holdings in longer-maturity securities, which tend to have a greater degree of interest-rate sensitivity.
Describe recent portfolio activity.
The Fund aims to deliver a balance of competitive total return and tax-free income using a tactical strategy that is designed to take advantage of credit, yield curve and interest rate trends.
The investment adviser sought to capitalize on market weakness by gradually putting cash to work. While the Fund began the period with a cash weighting of 5% of assets, this position had fallen to 1% by November 30, 2018. The investment adviser invested a portion of the cash in high-yield securities in an effort to take advantage of the sell-off in this area. The Fund’s allocation to taxable issues decreased.
The investment adviser actively managed the Fund’s interest-rate risk by adjusting the size of its position in U.S. Treasury futures as market conditions warranted. Generally speaking, it added to the position when yields fell to the lower end of their recent trading range, and it reduced the position when rates approached the upper end. The investment adviser also increased the leverage position from 6% to 8% in order to take a more aggressive posture when rates rose to top of the range. In addition, leverage became more attractive due to the widening differential between short-term borrowing rates and longer-term yields in the market.
Describe portfolio positioning at period end.
The Fund maintained a bias in favor of higher-quality California issues, as reflected in its average credit quality of AA as of November 30, 2018. The Fund held a 4.9% allocation to non-investment grade securities at the close of the period, the majority of which was invested in the tobacco sector. The Fund’s largest sector overweight positions were in transportation and utilities, and it was underweight in pre-refunded bonds and housing issues. The Fund also had a 1% position in cash and a 1.5% weighting in taxable municipal securities.
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.
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| 4 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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| Fund Summary as of November 30, 2018 (continued) | | BlackRock California Municipal Opportunities Fund |
Performance Summary for the Period Ended November 30, 2018
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Average Annual Total Returns (a)(b) | |
| | | | | | | | | | | | | | | 1 Year | | | | | | 5 Years | | | | | | 10 Years | |
| | | Standardized 30-Day Yields | | | Unsubsidized 30-Day Yields | | | 6-Month Total Returns | | | | | | w/o sales charge | | | w/sales charge | | | | | | w/o sales charge | | | w/sales charge | | | | | | w/o sales charge | | | w/sales charge | |
Institutional | | | 2.79 | % | | | 2.78 | % | | | 0.19 | % | | | | | | | 2.69 | % | | | N/A | | | | | | | | 5.09 | % | | | N/A | | | | | | | | 6.11 | % | | | N/A | |
Investor A | | | 2.43 | | | | 2.42 | | | | 0.06 | | | | | | | | 2.44 | | | | (1.92 | )% | | | | | | | 4.85 | | | | 3.95 | % | | | | | | | 5.87 | | | | 5.41 | % |
Investor A1 | | | 2.59 | | | | 2.58 | | | | 0.14 | | | | | | | | 2.59 | | | | N/A | | | | | | | | 5.00 | | | | N/A | | | | | | | | 6.02 | | | | N/A | |
Investor C | | | 1.79 | | | | 1.78 | | | | (0.31 | ) | | | | | | | 1.67 | | | | 0.67 | | | | | | | | 4.07 | | | | 4.07 | | | | | | | | 5.07 | | | | 5.07 | |
Investor C1 | | | 2.20 | | | | 2.16 | | | | (0.11 | ) | | | | | | | 2.08 | | | | N/A | | | | | | | | 4.45 | | | | N/A | | | | | | | | 5.49 | | | | N/A | |
Class K | | | 2.81 | | | | 2.80 | | | | 0.29 | | | | | | | | 2.81 | | | | N/A | | | | | | | | 5.12 | | | | N/A | | | | | | | | 6.12 | | | | N/A | |
S&P® Municipal Bond Index(c) | | | — | | | | — | | | | 0.36 | | | | | | | | 1.16 | | | | N/A | | | | | | | | 3.59 | | | | N/A | | | | | | | | 5.07 | | | | N/A | |
S&P® California Municipal Bond Index(d) | | | — | | | | — | | | | 0.04 | | | | | | | | 0.97 | | | | N/A | | | | | | | | 4.01 | | | | N/A | | | | | | | | 5.53 | | | | N/A | |
| | (a) | 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, and how performance was calculated for certain share classes. | |
| | (b) | Under normal circumstances, the Fund will invest at least 80% of its assets in California municipal bonds. The Fund’s total returns prior to January 26, 2015 are the returns of the Fund when it followed different investment strategies under the name BlackRock California Municipal Bond Fund. | |
| | (c) | The S&P® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than one month. | |
| | (d) | The S&P® California Municipal Bond Index includes all California bonds in the S&P® Municipal Bond Index. | |
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
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| Fund Summary as of November 30, 2018 | | BlackRock New Jersey Municipal Bond Fund |
Investment Objective
BlackRock New Jersey Municipal Bond Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from Federal income tax and New Jersey personal income taxes.
Portfolio Management Commentary
How did the Fund perform?
For the six-month period ended November 30, 2018, the Fund underperformed both its primary benchmark, the S&P® Municipal Bond Index, and its secondary benchmark, the Custom New Jersey Index. The following discussion of relative performance pertains to the Custom New Jersey Index.
What factors influenced performance?
Although concerns about tighter Fed policy contributed to slightly negative returns for taxable investment-grade bonds, the national municipal bond market posted a modest gain. In the early part of the period, tax-exempt securities were aided by the combination of steady investor demand and low new-issue supply. However, the market lost ground in both October and November as supply and demand conditions became less favorable and Fed Chairman Jerome Powell adopted a more hawkish tone.
New Jersey municipal issues narrowly outperformed the national index due to the higher yields available on the state’s obligations. The state’s credit rating and yield spreads continue to reflect its high unfunded pension liabilities. However, income and sales tax revenues have improved and this year’s budget season was less acrimonious than in years past.
The Fund’s yield curve positioning was a detractor to Fund performance, as bonds with maturities of 25 years and above experienced the weakest price performance. Reinvestment was a further drag on results as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.
Given that bond prices fell, income made the largest contribution to total return. In addition, the Fund sought to manage interest rate risk using Treasury futures. Since Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive impact on Fund performance.
The Fund’s overweight positions in the health care and education sectors benefited performance. However, holdings in tobacco issues underperformed. The Food and Drug Administration announced its intention to ban menthol cigarettes, which could lead to a larger-than-expected decline in consumption and reduced payments to the Master Settlement Agreement.
Describe recent portfolio activity.
The Fund’s duration rose, as market volatility presented opportunities to add new positions at attractive levels. (Duration is a measure of interest rate sensitivity.) Price declines in some positions also caused their duration to increase.
The investment adviser kept its barbell strategy largely intact as shorter-dated pre-refunded bonds continued to offer the combination of attractive income and low interest-rate sensitivity. Simultaneously, bonds with maturities of 20 years and above offered higher yields compared to shorter maturities. The Fund therefore concentrated its purchases in this area. (A barbell structure is an overweight in long- and short-term bonds, with a corresponding underweight in intermediate-term issues.)
Describe portfolio positioning at period end.
The Fund maintained a fully invested posture with a duration moderately above that of the benchmark. In addition, the Fund continued to implement dynamic risk-management strategies as a means to mitigate market volatility. The Fund’s investment adviser favored lower-rated investment-grade bonds due to their attractive yield spreads versus AAA and AA rated issues.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
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| 6 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
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| Fund Summary as of November 30, 2018 (continued) | | BlackRock New Jersey Municipal Bond Fund |
Performance Summary for the Period Ended November 30, 2018
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Average Annual Total Returns (a)(b) | |
| | | | | | | | | | | | | | | 1 Year | | | | | | 5 Years | | | | | | 10 Years | |
| | | Standardized 30-Day Yields | | | Unsubsidized 30-Day Yields | | | 6-Month Total Returns | | | | | | w/o sales charge | | | w/sales charge | | | | | | w/o sales charge | | | w/sales charge | | | | | | w/o sales charge | | | w/sales charge | |
Institutional | | | 3.08 | % | | | 2.87 | % | | | 0.10 | % | | | | | | | 1.32 | % | | | N/A | | | | | | | | 4.47 | % | | | N/A | | | | | | | | 5.73 | % | | | N/A | |
Service | | | 2.83 | | | | 2.63 | | | | (0.02 | ) | | | | | | | 1.06 | | | | N/A | | | | | | | | 4.29 | | | | N/A | | | | | | | | 5.56 | | | | N/A | |
Investor A | | | 2.65 | | | | 2.51 | | | | (0.02 | ) | | | | | | | 1.06 | | | | (3.23 | )% | | | | | | | 4.29 | | | | 3.39 | % | | | | | | | 5.57 | | | | 5.12 | % |
Investor A1 | | | 2.86 | | | | 2.72 | | | | 0.15 | | | | | | | | 1.31 | | | | N/A | | | | | | | | 4.46 | | | | N/A | | | | | | | | 5.72 | | | | N/A | |
Investor C | | | 2.08 | | | | 1.93 | | | | (0.40 | ) | | | | | | | 0.31 | | | | (0.67 | ) | | | | | | | 3.51 | | | | 3.51 | | | | | | | | 4.77 | | | | 4.77 | |
Investor C1 | | | 2.52 | | | | 2.32 | | | | (0.19 | ) | | | | | | | 0.74 | | | | N/A | | | | | | | | 3.92 | | | | N/A | | | | | | | | 5.19 | | | | N/A | |
Class K | | | 3.13 | | | | 2.98 | | | | 0.22 | | | | | | | | 1.36 | | | | N/A | | | | | | | | 4.48 | | | | N/A | | | | | | | | 5.74 | | | | N/A | |
S&P® Municipal Bond Index(c) | | | — | | | | — | | | | 0.36 | | | | | | | | 1.16 | | | | N/A | | | | | | | | 3.59 | | | | N/A | | | | | | | | 5.07 | | | | N/A | |
Custom New Jersey Index(d) | | | — | | | | — | | | | 0.68 | | | | | | | | 1.72 | | | | N/A | | | | | | | | 5.02 | | | | N/A | | | | | | | | 5.68 | | | | N/A | |
| | (a) | 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, and how performance was calculated for certain share classes. | |
| | (b) | The Fund invests primarily in a portfolio of long-term investment grade New Jersey municipal bonds. | |
| | (c) | The S&P® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than one month. | |
| | (d) | The Custom New Jersey Index is a customized benchmark that reflects the returns of the S&P® New Jersey Municipal Bond Index for periods prior to January 1, 2013, and the returns of only those New Jersey bonds in the S&P® New Jersey Municipal Bond Index that have maturities greater than 5 years for periods subsequent to January 1, 2013. | |
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
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| Fund Summary as of November 30, 2018 | | BlackRock Pennsylvania Municipal Bond Fund |
Investment Objective
BlackRock Pennsylvania Municipal Bond Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from Federal income tax and Pennsylvania personal income taxes.
Portfolio Management Commentary
How did the Fund perform?
For the six-month period ended November 30, 2018, the Fund underperformed both its primary benchmark, the S&P® Municipal Bond Index, and its secondary benchmark, the Custom Pennsylvania Index. The following discussion of relative performance pertains to the Custom Pennsylvania Index.
What factors influenced performance?
Although concerns about tighter Fed policy contributed to slightly negative returns for taxable investment-grade bonds, the national municipal bond market posted a modest gain. In the early part of the period, tax-exempt securities were aided by the combination of steady investor demand and low new-issue supply. However, the market lost ground in both October and November as supply and demand conditions became less favorable and Fed Chairman Jerome Powell adopted a more hawkish tone. In Pennsylvania, credit fundamentals improved, as the budget season was less acrimonious than in years past and the state made the first significant deposit into its rainy day fund since 2009.
Positions in housing bonds detracted from Fund performance due to their lower yields and higher interest-rate sensitivity. An underweight in state and local tax-backed issues also weighed on returns. Yield spreads on these bonds generally tightened as positive economic growth led to higher receipts from both sales and income taxes. The Fund’s yield curve positioning was an additional detractor, as bonds with maturities of 25 years and above experienced the weakest price performance. Reinvestment was a further drag on results as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates.
Given that bond prices fell, income made the largest contribution to total return. Pre-refunded bonds, which offer high yields relative to prevailing market rates, were notable contributors to the Fund’s income.
Holdings in the corporate municipal sector contributed positively. A specific issuer that previously filed for Chapter 11 bankruptcy traded materially higher in price, aiding the Fund’s return.
The Fund sought to manage interest rate risk using Treasury futures. Since Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive impact on Fund performance.
Describe recent portfolio activity.
The Fund’s duration rose, as market volatility presented opportunities to add new positions at attractive levels. (Duration is a measure of interest rate sensitivity.) Price declines in some positions also caused their duration to increase.
The investment adviser kept its barbell strategy largely intact as shorter-dated pre-refunded bonds continued to offer the combination of attractive income and low interest-rate sensitivity. Simultaneously, bonds with maturities of 20 years and above offered higher yields compared to shorter maturities. The Fund therefore concentrated its purchases in this area. (A barbell structure is an overweight in long- and short-term bonds, with a corresponding underweight in intermediate-term issues.)
Describe portfolio positioning at period end.
The Fund maintained a fully invested posture with a duration moderately above that of the benchmark. In addition, the Fund continued to implement dynamic risk-management strategies as a means to mitigate market volatility. The Fund’s investment adviser favored lower-rated investment-grade bonds due to their attractive yield spreads versus AAA and AA rated issues.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
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| 8 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
| Fund Summary as of November 30, 2018 (continued) | | BlackRock Pennsylvania Municipal Bond Fund |
Performance Summary for the Period Ended November 30, 2018
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Average Annual Total Returns (a)(b) | |
| | | | | | | | | | | | | | | 1 Year | | | | | | 5 Years | | | | | | 10 Years | |
| | | Standardized 30-Day Yields | | | Unsubsidized 30-Day Yields | | | 6-Month Total Returns | | | | | | w/o sales charge | | | w/sales charge | | | | | | w/o sales charge | | | w/sales charge | | | | | | w/o sales charge | | | w/sales charge | |
Institutional | | | 2.93 | % | | | 2.74 | % | | | (0.21 | )% | | | | | | | 0.80 | % | | | N/A | | | | | | | | 4.33 | % | | | N/A | | | | | | | | 5.45 | % | | | N/A | |
Service | | | 2.68 | | | | 2.50 | | | | (0.34 | ) | | | | | | | 0.46 | | | | N/A | | | | | | | | 4.13 | | | | N/A | | | | | | | | 5.25 | | | | N/A | |
Investor A | | | 2.57 | | | | 2.48 | | | | (0.34 | ) | | | | | | | 0.46 | | | | (3.81 | )% | | | | | | | 4.11 | | | | 3.21 | % | | | | | | | 5.23 | | | | 4.78 | % |
Investor A1 | | | 2.69 | | | | 2.58 | | | | (0.26 | ) | | | | | | | 0.71 | | | | N/A | | | | | | | | 4.29 | | | | N/A | | | | | | | | 5.41 | | | | N/A | |
Investor C | | | 1.93 | | | | 1.82 | | | | (0.71 | ) | | | | | | | (0.20 | ) | | | (1.17 | ) | | | | | | | 3.31 | | | | 3.31 | | | | | | | | 4.42 | | | | 4.42 | |
Investor C1 | | | 2.35 | | | | 2.23 | | | | (0.50 | ) | | | | | | | 0.23 | | | | N/A | | | | | | | | 3.74 | | | | N/A | | | | | | | | 4.86 | | | | N/A | |
Class K | | | 3.00 | | | | 2.89 | | | | (0.19 | ) | | | | | | | 0.84 | | | | N/A | | | | | | | | 4.34 | | | | N/A | | | | | | | | 5.45 | | | | N/A | |
S&P® Municipal Bond Index(c) | | | — | | | | — | | | | 0.36 | | | | | | | | 1.16 | | | | N/A | | | | | | | | 3.59 | | | | N/A | | | | | | | | 5.07 | | | | N/A | |
Custom Pennsylvania Index(d) | | | — | | | | — | | | | 0.19 | | | | | | | | 0.91 | | | | N/A | | | | | | | | 4.71 | | | | N/A | | | | | | | | 5.51 | | | | N/A | |
| | (a) | 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 description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes. | |
| | (b) | The Fund invests primarily in a portfolio of long-term investment grade Pennsylvania municipal bonds. | |
| | (c) | The S&P® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than one month. | |
| | (d) | The Custom Pennsylvania Index is customized benchmark that reflects the returns of the S&P® Pennsylvania Municipal Bond Index for periods prior to January 1, 2013, and the returns of only those Pennsylvania bonds in the S&P® Pennsylvania Municipal Bond Index that have maturities greater than 5 years for periods subsequent to January 1, 2013. | |
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
| | |
| Fund Summary as of November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund |
Investment Objective
BlackRock Strategic Municipal Opportunities Fund’s (the “Fund”) investment objective is to provide shareholders with a high level of income exempt from Federal income taxes.
Portfolio Management Commentary
How did the Fund perform?
For the six-month period ended November 30, 2018, the Fund underperformed its primary benchmark, the S&P® Municipal Bond Index, as well as its custom blended secondary benchmark comprised of 65% S&P® Municipal Bond Investment Grade Index, 30% S&P® Municipal Bond High Yield Index and 5% Bloomberg Barclays Taxable Municipal: U.S. Aggregate Eligible Index. The following discussion of relative performance pertains to the custom blended benchmark.
What factors influenced performance?
Although concerns about tighter Fed policy contributed to slightly negative returns for taxable investment-grade bonds, the national municipal bond market posted a modest gain. Tax-exempt bonds were aided by the combination of steady investor demand and low new-issue supply.
Security selection in the state and local tax-backed sectors was the largest detractor from Fund performance. The Fund’s performance was also hurt by its overweight position in AA rated bonds. Yield curve positioning was an additional detractor, largely due to the Fund’s positions in bonds with maturities of 20 years and above.
The Fund’s sector allocations had a positive effect on performance, led by positions in the housing, tobacco, and utilities sectors. The Fund was also helped by the investment adviser’s decision to keep the portfolio’s duration (interest rate sensitivity) below that of the benchmark. An underweight position in non-rated credits, which lagged higher-rated issues, was a further contributor.
The Fund sought to manage interest rate risk using U.S. Treasury futures. Since Treasury yields rose, as prices fell, this aspect of the Fund’s positioning had a positive impact on Fund performance. The Fund’s use of leverage, while amplifying the impact of price weakness, aided returns by augmenting income.
Describe recent portfolio activity.
The Fund opened the period with a duration of 4.65 years and closed with a duration of 6.32 years, which moved the portfolio from an underweight to an overweight relative to the benchmark. This shift reflected the investment adviser’s effort to capitalize on the market’s historical tendency to perform well in December and January.
The Fund held an allocation of approximately 59% to the long end of the yield curve (bonds with maturities of 20 years and above), up from 55% at the beginning of the time period. This increase reflected the investment adviser’s view that longer-term bonds offered more attractive valuations following a period of weak relative performance.
The Fund maintained a high-quality bias with the largest allocations to the AA and A rating tiers. About 15% of the Fund’s assets were in high yield (below-investment grade) bonds as of November 30, 2018, down from 19% at the beginning of the period. Following a long period of outperformance for high-yield issues, the investment adviser believed valuations in this area had become less compelling. The Fund’s taxable bond exposure for the period remained unchanged at 5%. At the sector level, the largest increase occurred in housing issues.
Describe portfolio positioning at period end.
The Fund was notably overweight in the housing and transportation sectors and underweight in pre-refunded/escrowed bonds and tax-backed issues. The Fund’s average credit quality remained at A+.
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.
| | |
| 10 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
| Fund Summary as of November 30, 2018 (continued) | | BlackRock Strategic Municipal Opportunities Fund |
Performance Summary for the Period Ended November 30, 2018
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | Average Annual Total Returns (a)(b) | |
| | | | | | | | | | | | | | | 1 Year | | | | | | 5 Years | | | | | | 10 Years | |
| | | Standardized 30-Day Yields | | | Unsubsidized 30-Day Yields | | | 6-Month Total Returns | | | | | | w/o sales charge | | | w/sales charge | | | | | | w/o sales charge | | | w/sales charge | | | | | | w/o sales charge | | | w/sales charge | |
Institutional | | | 3.40 | % | | | 3.35 | % | | | 0.08 | % | | | | | | | 2.68 | % | | | N/A | | | | | | | | 4.53 | % | | | N/A | | | | | | | | 5.68 | % | | | N/A | |
Investor A | | | 3.03 | | | | 2.98 | | | | 0.05 | | | | | | | | 2.46 | | | | (1.90 | )% | | | | | | | 4.32 | | | | 3.42 | % | | | | | | | 5.45 | | | | 4.99 | % |
Investor A1 | | | 3.30 | | | | 3.25 | | | | 0.04 | | | | | | | | 2.61 | | | | N/A | | | | | | | | 4.45 | | | | N/A | | | | | | | | 5.58 | | | | N/A | |
Investor C | | | 2.42 | | | | 2.37 | | | | (0.41 | ) | | | | | | | 1.68 | | | | 0.69 | | | | | | | | 3.51 | | | | 3.51 | | | | | | | | 4.64 | | | | 4.64 | |
Class K | | | 3.48 | | | | 3.43 | | | | 0.11 | | | | | | | | 2.74 | | | | N/A | | | | | | | | 4.54 | | | | N/A | | | | | | | | 5.68 | | | | N/A | |
S&P® Municipal Bond Index(c) | | | — | | | | — | | | | 0.36 | | | | | | | | 1.16 | | | | N/A | | | | | | | | 3.59 | | | | N/A | | | | | | | | 5.07 | | | | N/A | |
S&P® Municipal Bond Investment Grade Index(d) | | | — | | | | — | | | | 0.34 | | | | | | | | 0.91 | | | | N/A | | | | | | | | 3.40 | | | | N/A | | | | | | | | 4.88 | | | | N/A | |
S&P® Municipal Bond High Yield Index(d) | | | — | | | | — | | | | 0.74 | | | | | | | | 5.33 | | | | N/A | | | | | | | | 6.27 | | | | N/A | | | | | | | | 8.40 | | | | N/A | |
Bloomberg Barclays Taxable Municipal: U.S. Aggregate Eligible Index(d) | | | — | | | | — | | | | (1.74 | ) | | | | | | | (2.64 | ) | | | N/A | | | | | | | | 5.66 | | | | N/A | | | | | | | | 6.93 | | | | N/A | |
65% S&P® Municipal Bond Investment Grade Index, 30% S&P® Municipal Bond High Yield Index and 5% Bloomberg Barclays Taxable Municipal: U.S. Aggregate Eligible Index | | | — | | | | — | | | | 0.35 | | | | | | | | 2.04 | | | | N/A | | | | | | | | 4.38 | | | | N/A | | | | | | | | 6.07 | | | | N/A | |
| | (a) | 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 description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes. | |
| | (b) | Under normal circumstances, the Fund invests at least 80% of its assets in municipal bonds. The Fund’s total returns prior to January 27, 2014 are the returns of the Fund when it followed different investment strategies under the name BlackRock Intermediate Municipal Fund. | |
| | (c) | The S&P® Municipal Bond Index is composed of bonds held by managed municipal bond fund customers of Standard & Poor’s Securities Pricing, Inc. that are priced daily. Bonds in the S&P® Municipal Bond Index must have an outstanding par value of at least $2 million and a remaining maturity of not less than one month. | |
| | (d) | See “About Fund Performance” on page 14 for descriptions of the indexes. | |
N/A — Not applicable as share class and index do not have a sales charge.
Past performance is not indicative of future results.
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Portfolio Information as of November 30, 2018
BlackRock California Municipal Opportunities Fund
SECTOR ALLOCATION (a)
| | | | |
| Sector | | Percent of
Total Investments (b) | |
County/City/Special District/School District | | | 33 | % |
Utilities | | | 24 | |
Transportation | | | 14 | |
Education | | | 10 | |
Health | | | 8 | |
State | | | 7 | |
Tobacco | | | 3 | |
Corporate | | | 1 | |
CREDIT QUALITY ALLOCATION (c)
| | | | |
| Credit Rating | | Percent of
Total Investments (b) | |
AAA/Aaa | | | 14 | % |
AA/Aa | | | 60 | |
A | | | 10 | |
BBB/Baa | | | 2 | |
BB/Ba | | | 1 | |
B/B | | | 1 | |
Ca | | | 1 | |
N/R(d) | | | 11 | |
CALL/MATURITY SCHEDULE (e)
| | | | |
| | | Percent of
Total Investments (b) | |
Calendar Year Ended December 31, | | | | |
2018 | | | 1 | % |
2019 | | | 11 | |
2020 | | | 2 | |
2021 | | | 3 | |
2022 | | | 4 | |
BlackRock New Jersey Municipal Bond Fund
SECTOR ALLOCATION (a)
| | | | |
| Sector | | Percent of
Total Investments (b) | |
Transportation | | | 24 | % |
Health | | | 21 | |
Education | | | 19 | |
County/City/Special District/School District | | | 14 | |
State | | | 9 | |
Corporate | | | 6 | |
Utilities | | | 3 | |
Housing | | | 2 | |
Tobacco | | | 2 | |
CREDIT QUALITY ALLOCATION (c)
| | | | |
| Credit Rating | | Percent of
Total Investments (b) | |
AAA/Aaa | | | 2 | % |
AA/Aa | | | 32 | |
A | | | 24 | |
BBB/Baa | | | 31 | |
BB/Ba | | | 4 | |
N/R(d) | | | 7 | |
CALL/MATURITY SCHEDULE (e)
| | | | |
| | | Percent of
Total Investments (b) | |
Calendar Year Ended December 31, | | | | |
2018 | | | 1 | % |
2019 | | | 8 | |
2020 | | | 5 | |
2021 | | | 14 | |
2022 | | | 6 | |
| | (a) | For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. | |
| | (b) | Excludes short-term securities. | |
| | (c) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Inc. (“S&P”) or Moody’s Investors Service (“Moody’s”) if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. | |
| | (d) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of November 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represented less than 1% of the Fund’s long-term investments. | |
| | (e) | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. | |
| | |
| 12 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Portfolio Information as of November 30, 2018 (continued)
BlackRock Pennsylvania Municipal Bond Fund
SECTOR ALLOCATION (a)
| | | | |
| Sector | | Percent of
Total Investments (b) | |
Health | | | 25 | % |
Education | | | 23 | |
County/City/Special District/School District | | | 15 | |
Transportation | | | 13 | |
State | | | 10 | |
Utilities | | | 6 | |
Housing | | | 5 | |
Corporate | | | 3 | |
CREDIT QUALITY ALLOCATION (c)
| | | | |
| Credit Rating | | Percent of
Total Investments (b) | |
AAA/Aaa | | | — | % |
AA/Aa | | | 41 | |
A | | | 32 | |
BBB/Baa | | | 7 | |
BB/Ba | | | 2 | |
B/B | | | 0 | |
N/R(d) | | | 18 | |
CALL/MATURITY SCHEDULE (e)
| | | | |
| | | Percent of
Total Investments (b) | |
Calendar Year Ended December 31, | | | | |
2018 | | | 2 | % |
2019 | | | 12 | |
2020 | | | 15 | |
2021 | | | 14 | |
2022 | | | 3 | |
BlackRock Strategic Municipal Opportunities Fund
SECTOR ALLOCATION (a)
| | | | |
| Sector | | Percent of
Total Investments (b) | |
Transportation | | | 22 | % |
State | | | 19 | |
Utilities | | | 14 | |
Health | | | 11 | |
Housing | | | 11 | |
County/City/Special District/School District | | | 8 | |
Education | | | 7 | |
Tobacco | | | 4 | |
Corporate | | | 4 | |
CREDIT QUALITY ALLOCATION (c)
| | | | |
| Credit Rating | | Percent of
Total Investments (b) | |
AAA/Aaa | | | 11 | % |
AA/Aa | | | 38 | |
A | | | 16 | |
BBB/Baa | | | 14 | |
BB/Ba | | | 3 | |
B/B | | | 4 | |
CC | | | 1 | |
N/R(d) | | | 13 | |
CALL/MATURITY SCHEDULE (e)
| | | | |
| | | Percent of
Total Investments (b) | |
Calendar Year Ended December 31, | | | | |
2018 | | | 2 | % |
2019 | | | 3 | |
2020 | | | 2 | |
2021 | | | 4 | |
2022 | | | 7 | |
| | (a) | For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. | |
| | (b) | Excludes short-term securities. | |
| | (c) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. | |
| | (d) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of November 30, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represented 1% for BlackRock Pennsylvania Municipal Bond Fund and less than 1% for BlackRock Strategic Municipal Opportunities Fund long-term investments. | |
| | (e) | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. | |
About Fund Performance
Institutional Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors.
Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors. For each Fund, Class K Shares performance shown prior to the Class K January 25, 2018 inception date is that of Institutional Shares. The performance of the Funds’ Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.
Service Shares (available only in BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund) are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee) and are only available to certain eligible investors.
Investor A Shares are subject to a maximum initial sales charge (front-end load) of 4.25% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.
Investor A1 Shares (for all Funds except BlackRock Strategic Municipal Opportunities Fund) are subject to a maximum initial sales charge (front-end load) of 4.00% and a service fee of 0.10% per year (but no distribution fee). Investor A1 Shares for BlackRock Strategic Municipal Opportunities Fund incur a maximum initial sales charge (front-end load) of 1.00% and a service fee of 0.10% per year (but no distribution fee). The maximum initial sales charge does not apply to current eligible shareholders of Investor A1 Shares of the Funds. Certain redemptions of these shares may be subject to a CDSC where no initial sales charge was paid at the time of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders, and for BlackRock California Municipal Opportunities Fund only, fee based programs previously approved by the Fund.
Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. Effective November 8, 2018, each Fund adopted an automatic conversion feature whereby Investor C Shares held for approximately ten years will be automatically converted into Investor A Shares and, thereafter, investors will be subject to lower ongoing fees.
Investor C1 Shares (available in all Funds except BlackRock Strategic Municipal Opportunities Fund) are subject to a 1.00% CDSC if redeemed within one year of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders, and for BlackRock California Municipal Opportunities Fund only, fee based programs previously approved by the Fund. In addition, these shares are subject to a distribution fee of 0.35% per year and a service fee of 0.25% per year. Effective November 8, 2018, each Fund adopted an automatic conversion feature whereby Investor C1 Shares held for approximately ten years will be automatically converted into Investor A Shares and, thereafter, investors will be subject to lower ongoing fees.
Investor A1 and Investor C1 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans and, for BlackRock California Municipal Opportunities Fund only, fee based programs previously approved by the Fund.
Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer towww.blackrock.com to obtain performance data current to the most recent month end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date/payable date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions 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.
BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver and/or reimbursement, each Fund’s performance would have been lower. The Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 6 of the Notes to Financial Statements for additional information on waivers and/or reimbursements. The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.
The Manager voluntarily waived a portion of each Fund’s expenses. Without such waiver, each Fund’s performance would have been lower. The Manager is under no obligation to waive or to continue waiving its fees and such voluntary waiver may be reduced or discontinued at any time. See Note 6 of the Notes to Financial Statements for additional information on waivers.
Bloomberg Barclays Taxable Municipal: U.S. Aggregate Eligible Index — represents securities that are taxable, dollar-denominated, and issued by a U.S. state or territory, and have at least one year to final maturity regardless of call features, have at least $250 million par amount outstanding, and are rated investment-grade (at least BBB- by S&P or Fitch Ratings (“Fitch”) and/or Baa3 by Moody’s) by at least two of the following ratings agencies: S&P, Moody’s and Fitch.
S&P® Municipal Bond High Yield Index — a market-value-weighted index that consists of bonds in the S&P Municipal Bond Index that are nonrated or that are rated BB+ by S&P and/or Ba1 by Moody’s or lower; bonds that are prerefunded or escrowed to maturity are not included in this index.
S&P® Municipal Bond Investment Grade Index — a market-value-weighted index that consists of bonds in the S&P Municipal Bond Index that are rated at least BBB- by S&P and/or Baa3 by Moody’s.
| | |
| 14 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Shareholders of these Funds may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including12b-1 fees, acquired fund fees and expenses, and other Fund expenses. The expense examples shown below (which are based on a hypothetical investment of $1,000 invested on June 1, 2018 and held through November 30, 2018) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.
The expense examples 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 heading entitled “Expenses Paid During the Period.”
The expense examples 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 examples with the 5% hypothetical examples that appear in shareholder reports of other funds.
The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect any transactional expenses, such as sales charges, if any. Therefore, the hypothetical examples are useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.
Expense Examples
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual | | | | | | Hypothetical (c) | |
| | | | | | | | | Including
Interest
Expense
and Fees | | | Excluding
Interest
Expense
and Fees | | | | | | | | | Including
Interest
Expense
and Fees | | | Excluding
Interest
Expense
and Fees | |
BlackRock California Municipal
Opportunities Fund | | Beginning Account Value
(06/01/18) | | | Ending Account Value
(11/30/18) | | | Expenses
Paid During
the Period (a) | | | Expenses
Paid During
the Period (b) | | | | | | Beginning Account Value
(06/01/18) | | | Ending Account Value
(11/30/18) | | | Expenses
Paid During
the Period (a) | | | Ending Account Value
(11/30/18) | | | Expenses
Paid During
the Period (b) | |
Institutional | | $ | 1,000.00 | | | $ | 1,001.90 | | | $ | 2.96 | | | $ | 2.21 | | | | | | | $ | 1,000.00 | | | $ | 1,022.11 | | | $ | 2.99 | | | $ | 1,022.86 | | | $ | 2.23 | |
Investor A | | | 1,000.00 | | | | 1,000.60 | | | | 4.21 | | | | 3.46 | | | | | | | | 1,000.00 | | | | 1,020.86 | | | | 4.26 | | | | 1,021.61 | | | | 3.50 | |
Investor A1 | | | 1,000.00 | | | | 1,001.40 | | | | 3.46 | | | | 2.71 | | | | | | | | 1,000.00 | | | | 1,021.61 | | | | 3.50 | | | | 1,022.36 | | | | 2.74 | |
Investor C | | | 1,000.00 | | | | 996.90 | | | | 7.96 | | | | 7.21 | | | | | | | | 1,000.00 | | | | 1,017.10 | | | | 8.04 | | | | 1,017.85 | | | | 7.28 | |
Investor C1 | | | 1,000.00 | | | | 998.90 | | | | 5.96 | | | | 5.21 | | | | | | | | 1,000.00 | | | | 1,019.10 | | | | 6.02 | | | | 1,019.85 | | | | 5.27 | |
Class K | | | 1,000.00 | | | | 1,002.90 | | | | 2.71 | | | | 1.96 | | | | | | | | 1,000.00 | | | | 1,022.36 | | | | 2.74 | | | | 1,023.11 | | | | 1.98 | |
| | (a) | 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, 0.69% for Investor A1, 1.59% for Investor C, 1.19% for Investor C1 and 0.54% for Class K), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). | |
| | (b) | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.44% for Institutional, 0.69% for Investor A, 0.54% for Investor A1, 1.44% for Investor C, 1.04% for Investor C1 and 0.39% for Class K), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one half year period shown). | |
| | (c) | Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365. | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual | | | | | | Hypothetical (c) | |
| | | | | | | | | Including
Interest
Expense
and Fees | | | Excluding
Interest
Expense
and Fees | | | | | | | | | Including
Interest
Expense
and Fees | | | Excluding
Interest
Expense
and Fees | |
BlackRock New Jersey Municipal Bond Fund | | Beginning
Account Value
(06/01/18) | | | Ending
Account Value
(11/30/18) | | | Expenses
Paid During
the Period (a) | | | Expenses
Paid During
the Period (b) | | | | | | Beginning Account Value
(06/01/18) | | | Ending
Account Value
(11/30/18) | | | Expenses
Paid During
the Period (a) | | | Ending
Account Value
(11/30/18) | | | Expenses
Paid During
the Period (b) | |
Institutional | | $ | 1,000.00 | | | $ | 1.001.00 | | | $ | 3.26 | | | $ | 2.61 | | | | | | | $ | 1,000.00 | | | $ | 1,021.81 | | | $ | 3.29 | | | $ | 1,022.46 | | | $ | 2.64 | |
Service | | | 1,000.00 | | | | 999.80 | | | | 4.51 | | | | 3.86 | | | | | | | | 1,000.00 | | | | 1,020.56 | | | | 4.56 | | | | 1,021.21 | | | | 3.90 | |
Investor A | | | 1,000.00 | | | | 999.80 | | | | 4.51 | | | | 3.86 | | | | | | | | 1,000.00 | | | | 1,020.56 | | | | 4.56 | | | | 1,021.21 | | | | 3.90 | |
Investor A1 | | | 1,000.00 | | | | 1.001.50 | | | | 3.71 | | | | 3.11 | | | | | | | | 1,000.00 | | | | 1,021.36 | | | | 3.75 | | | | 1,021.96 | | | | 3.14 | |
Investor C | | | 1,000.00 | | | | 996.00 | | | | 8.26 | | | | 7.61 | | | | | | | | 1,000.00 | | | | 1,016.80 | | | | 8.34 | | | | 1,017.45 | | | | 7.69 | |
Investor C1 | | | 1,000.00 | | | | 998.10 | | | | 6.16 | | | | 5.51 | | | | | | | | 1,000.00 | | | | 1,018.90 | | | | 6.23 | | | | 1,019.55 | | | | 5.57 | |
Class K | | | 1,000.00 | | | | 1.002.20 | | | | 3.01 | | | | 2.36 | | | | | | | | 1,000.00 | | | | 1,022.06 | | | | 3.04 | | | | 1,022.71 | | | | 2.38 | |
| | (a) | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.65% for Institutional, 0.90% for Service, 0.90% for Investor A, 0.74% for Investor A1, 1.65% for Investor C, 1.23% for Investor C1 and 0.60% for Class K), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). | |
| | (b) | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.52% for Institutional, 0.77% for Service, 0.77% for Investor A, 0.62% for Investor A1, 1.52% for Investor C, 1.10% for Investor C1 and 0.47% for Class K), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). | |
| | (c) | Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365. | |
| | | | |
| DISCLOSURE OF EXPENSES | | | 15 | |
| | |
| Disclosure of Expenses (continued) | | |
Expense Examples(continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual | | | | | | Hypothetical (c) | |
| | | | | | | | | Including
Interest
Expense
and Fees | | | Excluding
Interest
Expense
and Fees | | | | | | | | | Including
Interest
Expense
and Fees | | | Excluding
Interest
Expense
and Fees | |
BlackRock Pennsylvania Municipal Bond Fund | | Beginning
Account Value
(06/01/18) | | | Ending
Account Value
(11/30/18) | | | Expenses
Paid During
the Period (a) | | | Expenses
Paid During
the Period (b) | | | | | | Beginning
Account Value
(06/01/18) | | | Ending
Account Value
(11/30/18) | | | Expenses
Paid During
the Period (a) | | | Ending
Account Value
(11/30/18) | | | Expenses
Paid During
the Period (b) | |
Institutional | | $ | 1,000.00 | | | $ | 997.90 | | | $ | 4.21 | | | $ | 2.7 | | | | | | | $ | 1,000.00 | | | $ | 1,020.86 | | | $ | 4.26 | | | $ | 1,022.36 | | | $ | 2.74 | |
Service | | | 1,000.00 | | | | 996.60 | | | | 5.46 | | | | 3.95 | | | | | | | | 1,000.00 | | | | 1,019.60 | | | | 5.52 | | | | 1,021.11 | | | | 4.00 | |
Investor A | | | 1,000.00 | | | | 996.60 | | | | 5.46 | | | | 3.95 | | | | | | | | 1,000.00 | | | | 1,019.60 | | | | 5.52 | | | | 1,021.11 | | | | 4.00 | |
Investor A1 | | | 1,000.00 | | | | 997.40 | | | | 4.71 | | | | 3.20 | | | | | | | | 1,000.00 | | | | 1,020.36 | | | | 4.76 | | | | 1,021.86 | | | | 3.24 | |
Investor C | | | 1,000.00 | | | | 992.90 | | | | 9.19 | | | | 7.69 | | | | | | | | 1,000.00 | | | | 1,015.84 | | | | 9.30 | | | | 1,017.35 | | | | 7.79 | |
Investor C1 | | | 1,000.00 | | | | 995.00 | | | | 7.05 | | | | 5.55 | | | | | | | | 1,000.00 | | | | 1,018.00 | | | | 7.13 | | | | 1,019.50 | | | | 5.62 | |
Class K | | | 1,000.00 | | | | 998.10 | | | | 3.96 | | | | 2.45 | | | | | | | | 1,000.00 | | | | 1,021.11 | | | | 4.00 | | | | 1,022.61 | | | | 2.48 | |
| | (a) | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.84% for Institutional, 1.09% for Service, 1.09% for Investor A, 0.94% for Investor A1, 1.84% for Investor C, 1.41% for Investor C1 and 0.79% for Class K), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). | |
| | (b) | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.54% for Institutional, 0.79% for Service, 0.79% for Investor A, 0.64% for Investor A1, 1.54% for Investor C, 1.11% for Investor C1 and 0.49% for Class K), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). | |
| | (c) | Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365. | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Actual | | | | | | Hypothetical (c) | |
| | | | | | | | | Including
Interest
Expense
and Fees | | | Excluding
Interest
Expense
and Fees | | | | | | | | | Including
Interest
Expense
and Fees | | | Excluding
Interest
Expense
and Fees | |
BlackRock Strategic Municipal Opportunities Fund | | Beginning
Account Value
(06/01/18) | | | Ending
Account Value
(11/30/18) | | | Expenses
Paid During
the Period (a) | | | Expenses
Paid During
the Period (b) | | | | | | Beginning
Account Value
(06/01/18) | | | Ending
Account Value
(11/30/18) | | | Expenses
Paid During
the Period (a) | | | Ending
Account Value
(11/30/18) | | | Expenses
Paid During
the Period (b) | |
Institutional | | $ | 1,000.00 | | | $ | 1,000.80 | | | $ | 3.81 | | | $ | 2.71 | | | | | | | $ | 1,000.00 | | | $ | 1,021.26 | | | $ | 3.85 | | | $ | 1,022.36 | | | $ | 2.74 | |
Investor A | | | 1,000.00 | | | | 1,000.50 | | | | 4.96 | | | | 3.86 | | | | | | | | 1,000.00 | | | | 1,020.10 | | | | 5.01 | | | | 1,021.21 | | | | 3.90 | |
Investor A1 | | | 1,000.00 | | | | 1,000.40 | | | | 4.21 | | | | 3.11 | | | | | | | | 1,000.00 | | | | 1,020.86 | | | | 4.26 | | | | 1,021.96 | | | | 3.14 | |
Investor C | | | 1,000.00 | | | | 995.90 | | | | 8.76 | | | | 7.66 | | | | | | | | 1,000.00 | | | | 1,016.29 | | | | 8.85 | | | | 1,017.40 | | | | 7.74 | |
Class K | | | 1,000.00 | | | | 1,001.10 | | | | 3.51 | | | | 2.41 | | | | | | | | 1,000.00 | | | | 1,021.56 | | | | 3.51 | | | | 1,022.66 | | | | 2.43 | |
| | (a) | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.76% for Institutional, 0.99% for Investor A, 0.84% for Investor A1, 1.75% for Investor C and 0.70% for Class K), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). | |
| | (b) | For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.54% for Institutional, 0.77% for Investor A, 0.62% for Investor A1, 1.53% for Investor C and 0.48% for Class K), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown). | |
| | (c) | Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365. | |
| | |
| 16 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
The Benefits and Risks of Leveraging
The Funds may utilize leverage to seek to enhance returns and NAV. However, there is no guarantee that these objectives can be achieved in all interest rate environments.
Each Fund may leverage its assets through the use of proceeds received in tender option bond (“TOB”) transactions, as described in the Notes to Financial Statements. In a TOB Trust transaction, the Funds transfer municipal bonds or other municipal securities into a special purpose entity (a “TOB Trust”). TOB investments generally provide the Funds with economic benefits in periods of declining short-term interest rates, but expose the Funds to risks during periods of rising short-term interest rates. Additionally, fluctuations in the market value of municipal bonds deposited into a TOB Trust may adversely affect the Funds’ NAV per share.
In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by each Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, such Fund’s shareholders benefit from the incremental net income.
The interest earned on securities purchased with the proceeds from leverage is distributed to the Funds’ shareholders, and the value of these portfolio holdings is reflected in the Funds’ per share NAV. However, in order to benefit shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other ongoing costs of leverage exceed a Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds had not used leverage.
Furthermore, the value of each Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can also influence the value of portfolio investments. As a result, changes in interest rates can influence each Fund’s NAV positively or negatively in addition to the impact on each Fund’s performance from leverage. Changes in the direction of interest rates are difficult to predict accurately, and there is no assurance that a Fund’s leveraging strategy will be successful.
The use of leverage also generally causes greater changes in each Fund’s NAV and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV of a Fund’s shares than if the Fund were not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of the leverage instruments, which may cause the 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. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by such Fund’s shareholders and may reduce income.
Derivative Financial Instruments
The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.
| | | | |
| THE BENEFITSAND RISKSOF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS | | | 17 | |
| | |
Schedule of Investments (unaudited) November 30, 2018 | | BlackRock California Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
Corporate Bonds — 1.5% | |
|
| Auto Components — 0.2% | |
General Motors Co., 5.95%, 04/01/49 | | $ | 6,597 | | | $ | 5,960,370 | |
| | | | | | | | |
| Banks — 0.1% | |
Capital One Financial Corp., 3.80%, 01/31/28 | | | 3,411 | | | | 3,133,884 | |
| | | | | | | | |
| Containers & Packaging — 0.3% | |
Westrock Co., 4.90%, 03/15/29(a) | | | 7,187 | | | | 7,221,901 | |
| | | | | | | | |
| Education — 0.3% | |
Pepperdine University, 3.95%, 12/01/57 | | | 9,385 | | | | 8,884,810 | |
University of Southern California, 3.03%, 10/01/39 | | | 298 | | | | 261,912 | |
| | | | | | | | |
| | | | | | | 9,146,722 | |
| Health Care Providers & Services — 0.5% | |
Kaiser Foundation Hospitals: | | | | | | | | |
3.50%, 04/01/22 | | | 4,880 | | | | 4,917,470 | |
4.15%, 05/01/47 | | | 335 | | | | 318,828 | |
Sutter Health, 3.70%, 08/15/28 | | | 2,854 | | | | 2,795,973 | |
Valley Children’s Hospital, Series A, 4.40%, 03/15/48 | | | 4,000 | | | | 3,784,176 | |
| | | | | | | | |
| | | | | | | 11,816,447 | |
| Pharmaceuticals — 0.1% | |
AbbVie, Inc., 4.88%, 11/14/48 | | | 2,871 | | | | 2,614,474 | |
| | | | | | | | |
Total Corporate Bonds — 1.5%
(Cost — $41,607,691) | | | | 39,893,798 | |
| | | | | |
Municipal Bonds — 84.9% | |
|
California — 83.7% | |
| County/City/Special District/School District — 32.5% | |
Alhambra Unified School District, GO, Improvement District Election 2016, Series A, 5.00%, 08/01/43 | | | 3,500 | | | | 3,982,020 | |
Butte-Glenn Community College District, GO, Election of 2016, Series A, 5.25%, 08/01/46 | | | 12,360 | | | | 14,264,058 | |
Cabrillo Unified School District, GO, Election of 2018, Series A, 5.00%, 08/01/45 | | | 5,600 | | | | 6,218,632 | |
California Infrastructure & Economic Development Bank, RB: | | | | | | | | |
Build America Bonds, 6.49%, 05/15/49 | | | 2,125 | | | | 2,713,646 | |
Goodwill Industry San Joaquin, 5.85%, 09/01/37 | | | 2,830 | | | | 2,760,552 | |
California Municipal Finance Authority, RB, Orange County Civic Center Infrastructure Improvement Program Phase I, Series A, 5.00%, 06/01/42 | | | 15,555 | | | | 17,484,287 | |
Central Union High School District-Imperial County, GO, Election of 2016, 5.25%, 08/01/46 | | | 4,240 | | | | 4,879,392 | |
City & County of San Francisco California Redevelopment Agency, Tax Allocation Bonds, Series D: | | | | | | | | |
Mission Bay South Redevelopment Project, 0.00%, 08/01/23(a)(b) | | | 1,000 | | | | 809,080 | |
Mission Bay South Redevelopment Project, 0.00%, 08/01/31(a)(b) | | | 3,000 | | | | 1,597,650 | |
3.13%, 08/01/28 | | | 1,150 | | | | 1,094,950 | |
3.25%, 08/01/29 | | | 1,000 | | | | 951,670 | |
3.38%, 08/01/30 | | | 1,250 | | | | 1,192,338 | |
City of Los Angeles California, COP, Senior, Sonnenblick Del Rio West Los Angeles (AMBAC), 6.20%, 11/01/31 | | | 4,000 | | | | 4,013,080 | |
City of Los Angeles California, RB, 4.00%, 06/27/19 | | | 72,420 | | | | 73,367,254 | |
City of Martinez California, GO, Election of 2008, Series A, 5.88%, 08/01/19(c) | | | 6,035 | | | | 6,204,765 | |
City of Monrovia, Refunding RB, Taxable, 3.89%, 05/01/33 | | | 4,300 | | | | 4,183,771 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| County/City/Special District/School District (continued) | |
City of Sacramento Caliifornia Transient Occupancy Tax Revenue, RB, Convention Center Complex, Series A, 5.00%, 06/01/43 | | $ | 10,590 | | | $ | 11,874,143 | |
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project, 6.50%, 05/01/42 | | | 2,395 | | | | 2,633,231 | |
Corona Community Facilities District, Improvement Area No.1, Special Tax Bonds, Series A: | | | | | | | | |
5.00%, 09/01/34 | | | 800 | | | | 860,928 | |
5.00%, 09/01/43 | | | 1,355 | | | | 1,438,631 | |
County of Los Angeles California Metropolitan Transportation Authority, Refunding RB, Series A, 5.00%, 07/01/42 | | | 27,660 | | | | 31,448,037 | |
County of Riverside California Public Financing Authority, RB, Capital Facilities Project, 5.25%, 11/01/45 | | | 11,200 | | | | 12,802,608 | |
County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 03/01/21(c) | | | 2,895 | | | | 3,158,850 | |
County of San Luis Obispo Community College District, GO, Refunding Series B, 4.00%, 08/01/43 | | | 5,820 | | | | 5,931,569 | |
County of Tulare California, RB, 4.31%, 06/01/33 | | | 5,500 | | | | 5,402,100 | |
Covina-Valley Unified School District, GO, Election Of 2012, Series E, 5.00%, 08/01/46 | | | 11,785 | | | | 13,358,651 | |
El Monte City School District, GO, Los Angeles Country, California Series B, 5.50%, 08/01/46 | | | 4,265 | | | | 4,986,894 | |
Elk Grove Unified School District, GO, Election of 2016, 4.00%, 08/01/46 | | | 12,640 | | | | 12,917,195 | |
Franklin-Mckinley School District, GO, Election of 2016, Series B, 5.00%, 08/01/44 | | | 4,855 | | | | 5,382,787 | |
Fremont Union High School District, GO, Refunding, Series A, 5.00%, 08/01/44 | | | 2,350 | | | | 2,670,164 | |
Glendale Community College District, GO, Election of 2016, Series A, 5.25%, 08/01/41 | | | 5,900 | | | | 6,829,722 | |
Grossmont Union High School District, GO, Election of 2016, SeriesB-2, 4.00%, 08/01/43 | | | 12,100 | | | | 12,361,481 | |
Hacienda La Puente Unified School District, GO, Election 2016, Series A, 5.25%, 08/01/42 | | | 5,000 | | | | 5,775,700 | |
Hayward Area Recreation and Park District, GO, Refunding, Series A, 5.00%, 08/01/42 | | | 5,050 | | | | 5,714,125 | |
Long Beach Unified School District, GO, Series E, 5.00%, 08/01/42 | | | 5,000 | | | | 5,633,950 | |
Los Angeles California Unified School District, GO, Election of 2008, SeriesB-1, 5.25%, 07/01/42 | | | 62,525 | | | | 72,851,629 | |
Los Angeles Community College District California, GO, Build America Bonds, 6.60%, 08/01/42 | | | 5,870 | | | | 7,919,921 | |
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 08/01/19(c) | | | 16,250 | | | | 16,720,275 | |
Los Angeles County Facilities Inc, RB, Vermont Corridor County Administration Building , Series A, 5.00%, 12/01/43 | | | 7,535 | | | | 8,476,875 | |
Los Angeles Unified School District, GO, Election of 2008: | | | | | | | | |
Series A, 5.00%, 07/01/40 | | | 25,000 | | | | 27,845,750 | |
SeriesB-1, 5.00%, 07/01/37 | | | 19,770 | | | | 22,846,410 | |
SeriesB-1, 5.00%, 07/01/38 | | | 27,900 | | | | 32,127,966 | |
Los County Angeles, RB, 4.00%, 06/28/19 | | | 30,000 | | | | 30,389,100 | |
Menifee Union School District, GO, Series B, 4.00%, 08/01/43 | | | 3,630 | | | | 3,640,164 | |
Millbrae School District, GO, SeriesB-2, 6.00%, 07/01/21(c) | | | 2,585 | | | | 2,856,270 | |
Mountain View-Whisman School District, GO, Election of 2012, Series A, 4.00%, 09/01/42 | | | 12,000 | | | | 12,340,560 | |
| | |
| 18 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock California Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| County/City/Special District/School District (continued) | |
Ohlone Community College District, GO: | | | | | | | | |
Series C, 4.00%, 08/01/41 | | $ | 5,000 | | | $ | 5,093,950 | |
Refunding, 4.00%, 08/01/41 | | | 5,000 | | | | 5,093,950 | |
Palmdale Elementary School District, GO: | | | | | | | | |
Election of 2012, Series B, 5.25%, 08/01/42 | | | 2,050 | | | | 2,379,825 | |
Election of 2016, Series A, 5.25%, 08/01/42 | | | 7,695 | | | | 8,933,049 | |
Palomar Community College District, GO, Election of 2006, Series D, 5.25%, 08/01/45 | | | 1,000 | | | | 1,148,880 | |
Pittsburg Unified School District, GO, Refunding, 4.00%, 08/01/44 | | | 11,000 | | | | 11,103,400 | |
Pomona Redevelopment Agency Successor Agency, Refunding, Tax Allocation Bonds, 3.98%, 02/01/27 | | | 4,155 | | | | 4,190,691 | |
Redwood City School District, GO, Election of 2015, 5.25%, 08/01/44 | | | 5,000 | | | | 5,847,200 | |
Riverside County, RB, 4.00%, 06/28/19 | | | 55,000 | | | | 55,719,400 | |
Riverside County Transportation Commission, Refunding RB, Series A, 5.00%, 06/01/39 | | | 2,355 | | | | 2,678,365 | |
Roseville Joint Union High School District, GO, School Facilities Improvement(e): | | | | | | | | |
4.00%, 08/01/46 | | | 2,840 | | | | 2,831,508 | |
5.00%, 08/01/46 | | | 12,960 | | | | 14,357,218 | |
San Diego Community College District, Refunding, GO,Refunding, 5.00%, 08/01/41 | | | 20,000 | | | | 22,666,400 | |
San Diego Public Facilities Financing Authority Sewer Revenue, Refunding RB, Series A, 5.00%, 05/15/38 | | | 13,595 | | | | 15,457,379 | |
San Jose California Financing Authority, LRB, Convention Center Expansion & Renovation Project, Series A, 5.75%, 05/01/42 | | | 2,010 | | | | 2,166,438 | |
San Jose Redevelopment Agency Successor Agency, Refunding, Tax Allocation Bonds, SeriesA-T, 3.25%, 08/01/29 | | | 8,730 | | | | 8,205,589 | |
San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 08/01/41 | | | 5,000 | | | | 5,433,550 | |
San Mateo County Community College District, GO, Election of 2014, Series B, 5.00%, 09/01/45 | | | 41,990 | | | | 48,107,943 | |
Santa Clara County Financing Authority, RB, Country Facilities, Series A, 4.00%, 04/01/38 | | | 8,095 | | | | 8,360,111 | |
Santa Monica Community College District, GO, Election of 2016, Series A, 5.00%, 08/01/43 | | | 10,000 | | | | 11,448,400 | |
State of California, GO: | | | | | | | | |
Refunding Various Purposes, 5.00%, 08/01/46 | | | 18,000 | | | | 20,070,180 | |
Refunding VariousPurposes-Bid Group, 5.00%, 08/01/37 | | | 45,000 | | | | 52,133,400 | |
Tracy Community Facilities District, Special Tax Bonds, Series 1: | | | | | | | | |
5.00%, 09/01/38 | | | 1,070 | | | | 1,160,490 | |
5.00%, 09/01/43 | | | 1,635 | | | | 1,764,917 | |
5.00%, 09/01/48 | | | 1,795 | | | | 1,933,448 | |
Whittier City School District, GO, Election of 2012, Series C, 5.25%, 08/01/46 | | | 5,365 | | | | 6,182,733 | |
| | | | | | | | |
| | | | | | | 859,381,245 | |
| Education — 6.1% | |
California Educational Facilities Authority, RB, Chapman University, Series A: | | | | | | | | |
3.43%, 04/01/30 | | | 1,000 | | | | 945,750 | |
3.56%, 04/01/31 | | | 2,000 | | | | 1,900,980 | |
California Educational Facilities Authority, Refunding RB, Pitzer College,
6.00%, 04/01/20(c) | | | 2,500 | | | | 2,639,175 | |
California Municipal Finance Authority, RB: | | | | | | | | |
Emerson College, 6.00%, 01/01/22(c) | | | 7,000 | | | | 7,855,400 | |
Urban Discovery Academy Project, 5.50%, 08/01/34(a) | | | 300 | | | | 294,891 | |
Vista Charter Middle School, 6.00%, 07/01/44 | | | 500 | | | | 509,680 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Education (continued) | |
California Municipal Finance Authority, Refunding RB, Emerson College, Series B, 5.00%, 01/01/42 | | $ | 7,400 | | | $ | 8,046,390 | |
California School Finance Authority, RB,
Series A(a): | | | | | | | | |
Larchmont Charter School Project, 5.00%, 06/01/33 | | | 525 | | | | 545,984 | |
Larchmont Charter School Project, 5.00%, 06/01/43 | | | 525 | | | | 535,553 | |
Larchmont Charter School Project, 5.00%, 06/01/55 | | | 1,000 | | | | 1,009,640 | |
6.00%, 07/01/51 | | | 1,500 | | | | 1,587,705 | |
Cerritos Community College District, GO, Election of 2012, Series B, 4.00%, 08/01/43 | | | 9,285 | | | | 9,468,007 | |
Menifee Union School District, GO, Series A, 5.25%, 08/01/42 | | | 7,275 | | | | 8,463,444 | |
State of California University, Refunding RB, Systemwide, Series A: | | | | | | | | |
5.00%, 11/01/41 | | | 25,600 | | | | 28,613,632 | |
5.00%, 11/01/42 | | | 25,915 | | | | 29,127,942 | |
5.00%, 11/01/43 | | | 10,165 | | | | 11,582,916 | |
University of California, RB: | | | | | | | | |
Build America Bonds, 6.30%, 05/15/50 | | | 3,790 | | | | 4,435,247 | |
Series AM, 5.25%, 05/15/44 | | | 11,495 | | | | 12,871,181 | |
Series AV, 5.25%, 05/15/42 | | | 11,860 | | | | 13,626,547 | |
Series AV, 5.25%, 05/15/47 | | | 4,080 | | | | 4,666,378 | |
University of California, Refunding RB, Limited Project, Series O, 5.00%, 05/15/40 | | | 11,675 | | | | 13,241,902 | |
| | | | | | | | |
| | | | | | | 161,968,344 | |
| Health — 7.6% | |
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series B, 6.25%, 08/01/19(c) | | | 3,775 | | | | 3,889,156 | |
California Health Facilities Financing Authority, RB: | | | | | | | | |
Cedars Sinai Medical Center, Series A, 5.00%, 08/15/34 | | | 10,010 | | | | 11,421,910 | |
Cedars Sinai Medical Center, Series A, 5.00%, 08/15/35 | | | 4,000 | | | | 4,552,760 | |
Cedars-Sinai Medical Center, Series A, 5.00%, 08/15/36 | | | 2,415 | | | | 2,733,394 | |
Children’s Hospital, Series A, 5.25%, 11/01/41 | | | 7,000 | | | | 7,595,140 | |
Scripps Health, Series A, 5.00%, 11/15/40 | | | 7,530 | | | | 8,131,120 | |
Sutter Health, Series A, 5.00%, 11/15/38 | | | 12,420 | | | | 13,922,696 | |
Sutter Health, Series A, 5.00%, 11/15/41 | | | 10,200 | | | | 11,160,432 | |
Sutter Health, Series A, 5.00%, 11/15/46 | | | 15,955 | | | | 17,303,197 | |
Sutter Health, Series B, 6.00%, 08/15/20(c) | | | 9,775 | | | | 10,476,650 | |
California Health Facilities Financing Authority, Refunding RB: | | | | | | | | |
Catholic Healthcare West, Series A, 6.00%, 07/01/19(c) | | | 2,075 | | | | 2,127,145 | |
Catholic Healthcare West, Series A, 6.00%, 07/01/19(c) | | | 6,000 | | | | 6,150,780 | |
Cedars Sinai Medical Center, Series B, 5.00%, 08/15/35 | | | 18,500 | | | | 21,056,515 | |
Stanford Health Care, Series A, 5.00%, 11/15/37 | | | 2,000 | | | | 2,295,200 | |
Sutter Health, Series B, 5.00%, 11/15/46 | | | 8,000 | | | | 8,731,360 | |
California Statewide Communities Development Authority, RB(a): | | | | | | | | |
Lancer Educational student Housing Project, Series A, 5.00%, 06/01/46 | | | 4,100 | | | | 4,303,565 | |
Loma Linda University Medical Center, 5.50%, 12/01/58 | | | 11,375 | | | | 12,091,397 | |
California Statewide Communities Development Authority, Refunding RB: | | | | | | | | |
Adventist Health System/West Series A, 5.00%, 03/01/42 | | | 7,500 | | | | 8,376,150 | |
Lancer Educational student Housing Project, Series A, 5.00%, 06/01/36(a) | | | 2,900 | | | | 3,078,408 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 19 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock California Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Health (continued) | |
Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41 | | $ | 5,000 | | | $ | 5,410,550 | |
Marin Healthcare District, GO, Election of 2013, Series A, 5.00%, 08/01/41 | | | 21,335 | | | | 24,365,210 | |
State of California Public Works Board, Refunding RB, Various Capital Projects, Series C, 5.00%, 11/01/34 | | | 11,000 | | | | 12,547,700 | |
| | | | | | | | |
| | | | | | | 201,720,435 | |
| State — 6.2% | |
State of California, GO, Build America Bonds, Various Purpose, 7.60%, 11/01/40 | | | 2,000 | | | | 2,869,800 | |
State of California, GO, Refunding: | | | | | | | | |
Various Purpose, 5.25%, 10/01/39 | | | 10,140 | | | | 11,569,334 | |
Various Purpose, 5.00%, 10/01/47 | | | 12,000 | | | | 13,317,240 | |
5.00%, 11/01/37 | | | 13,265 | | | | 15,216,812 | |
State of California, GO, Various Purposes: | | | | | | | | |
5.00%, 11/01/47 | | | 24,145 | | | | 27,209,484 | |
6.00%, 04/01/19(c) | | | 5,685 | | | | 5,767,262 | |
6.50%, 04/01/19(c) | | | 7,000 | | | | 7,112,350 | |
5.75%, 04/01/31 | | | 10,000 | | | | 10,121,600 | |
6.50%, 04/01/33 | | | 5,925 | | | | 6,012,157 | |
6.00%, 04/01/38 | | | 10,395 | | | | 10,531,486 | |
Refunding Various Purpose, 5.00%, 10/01/39 | | | 11,310 | | | | 12,672,968 | |
State of California Public Works Board, LRB: | | | | | | | | |
Department of Education, Riverside Campus Project, Series B, 6.50%, 04/01/19(c) | | | 10,000 | | | | 10,160,500 | |
Department of General Services, Buildings 8 & 9, Series A, 6.25%, 04/01/19(c) | | | 3,060 | | | | 3,106,757 | |
Various Capital Projects, Series I, 5.25%, 11/01/32 | | | 1,115 | | | | 1,248,421 | |
Various Capital Projects, Series I, 5.50%, 11/01/33 | | | 2,315 | | | | 2,615,070 | |
Various Capital Projects,Sub-Series I-1, 6.38%, 11/01/19(c) | | | 1,725 | | | | 1,798,951 | |
State of California Public Works Board, Refunding RB, Various Capital Projects, Series C, 5.00%, 11/01/33 | | | 20,000 | | | | 22,889,800 | |
| | | | | | | | |
| | | | | | | 164,219,992 | |
| Tobacco — 3.2% | |
County of California Tobacco Securitization Agency, Refunding RB, Series A: | | | | | | | | |
Asset-Backed, Merced County, 5.13%, 06/01/38 | | | 1,000 | | | | 1,002,200 | |
Asset-Backed, Merced County, 5.25%, 06/01/45 | | | 4,765 | | | | 4,775,483 | |
Golden Gate Tobacco Funding Corp.,
5.00%, 06/01/36 | | | 2,410 | | | | 2,336,230 | |
Golden Gate Tobacco Funding Corp.,
5.00%, 06/01/47 | | | 2,595 | | | | 2,469,220 | |
County of Los Angeles California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.(f): | | | | | | | | |
5.70%, 06/01/46 | | | 8,590 | | | | 8,591,976 | |
5.60%, 06/01/36 | | | 1,980 | | | | 1,980,950 | |
Golden State Tobacco Securitization Corp., Refunding RB: | | | | | | | | |
Series A-1, 3.50%, 06/01/36 | | | 17,020 | | | | 16,657,474 | |
Series A-1, 5.00%, 06/01/47 | | | 16,690 | | | | 16,005,376 | |
Series A-2, 5.00%, 06/01/47 | | | 9,945 | | | | 9,519,056 | |
Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, SeniorSeries A-1: | | | | | | | | |
5.00%, 06/01/37 | | | 8,450 | | | | 8,432,847 | |
5.13%, 06/01/46 | | | 12,640 | | | | 12,605,619 | |
| | | | | | | | |
| | | | | | | 84,376,431 | |
| Transportation — 9.3% | |
Bay Area Toll Authority, RB, Build America Bonds, San Francisco Toll Bridge,Series S-1, 7.04%, 04/01/50 | | | 4,720 | | | | 6,666,717 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Transportation (continued) | |
Burbank-Glendale-Pasadena California Airport Authority, ARB, Series B, 5.56%, 07/01/32 | | $ | 1,000 | | | $ | 1,121,560 | |
City & County of San Francisco Airport Commission, Refunding RB, AMT, San Francisco International Airport, Series D, 5.00%, 05/01/43 | | | 11,275 | | | | 12,499,352 | |
City & County of San Francisco California Airports Commission, ARB: | | | | | | | | |
Second Series E, 6.00%, 05/01/19(c) | | | 1,170 | | | | 1,190,990 | |
Second Series E, 6.00%, 05/01/39 | | | 13,980 | | | | 14,209,691 | |
Special Facility Lease, SFO Fuel, Series A, AMT (AGM), 6.10%, 01/01/20 | | | 465 | | | | 466,381 | |
City of Long Beach California Harbor Revenue, ARB, Green Bonds, Series B, AMT, 5.00%, 05/15/43 | | | 3,335 | | | | 3,685,809 | |
City of Los Angeles California Department of Airports, ARB: | | | | | | | | |
Sub-Series A, AMT, 5.00%, 05/15/42 | | | 3,500 | | | | 3,856,370 | |
Los Angeles International Airports, Series A, AMT, 5.25%, 05/15/38 | | | 5,200 | | | | 5,945,316 | |
Los Angeles International Airports, Series A, AMT, 5.00%, 05/15/44 | | | 1,650 | | | | 1,826,154 | |
Sub-Series B, 5.00%, 05/15/42 | | | 11,915 | | | | 13,358,621 | |
Subordinate, Series C, AMT, 5.00%, 05/15/35 | | | 4,875 | | | | 5,498,318 | |
City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport: | | | | | | | | |
5.00%, 05/15/43 | | | 10,000 | | | | 11,427,500 | |
AMT, 5.00%, 05/15/43 | | | 5,000 | | | | 5,582,950 | |
Senior, Series A, 5.00%, 05/15/40 | | | 37,690 | | | | 39,199,485 | |
City of Los Angeles Department of Airports, ARB, Subordinate, Series C, AMT, 5.00%, 05/15/36 | | | 8,265 | | | | 9,289,695 | |
City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, AMT: | | | | | | | | |
Series A, 5.00%, 03/01/41 | | | 23,000 | | | | 25,270,560 | |
Series A-1, 5.75%, 03/01/34 | | | 6,720 | | | | 7,197,523 | |
Series A-1, 6.25%, 03/01/34 | | | 2,920 | | | | 3,172,492 | |
County of Sacramento California Airport System Revenue, Refunding RB: | | | | | | | | |
Series B, 5.00%, 07/01/38 | | | 1,000 | | | | 1,140,030 | |
AMT, Series C, 5.00%, 07/01/36 | | | 5,645 | | | | 6,344,359 | |
County of San Diego Regional Airport Authority, ARB, Subordinate, Series B, AMT, 5.00%, 07/01/42 | | | 4,500 | | | | 4,945,905 | |
Los Angeles County Metropolitan Transportation Authority, RB, Green Bond, Series A, 5.00%, 07/01/38 | | | 8,815 | | | | 10,129,493 | |
Norman Y Mineta San Jose International Airport SJC, Refunding RB,Series A-2, 5.25%, 03/01/34 | | | 5,960 | | | | 6,345,850 | |
Riverside County Transportation Commission, Refunding RB, Sales Tax, Series B, 5.00%, 06/01/38 | | | 16,815 | | | | 19,305,302 | |
San Diego County Regional Airport Authority, ARB, Consolidated Rental Car Facility Project, Series B, 5.59%, 07/01/43 | | | 4,710 | | | | 5,084,869 | |
San Joaquin County Transportation Authority, Refunding RB, Measure K Sale Tax Revenue, 5.00%, 03/01/41 | | | 17,955 | | | | 20,301,359 | |
| | | | | | | | |
| | | | | | | 245,062,651 | |
| Utilities — 18.8% | |
City & County of San Francisco Public Utilities Commission Wastewater Revenue, RB, Series B, 5.00%, 10/01/38 | | | 10,110 | | | | 11,625,186 | |
City & County of San Francisco Public Utilities Commission Wastewater Revenue, Refunding RB, Sewer System, Series B, 4.00%, 10/01/42 | | | 20,945 | | | | 21,101,040 | |
City of Los Angeles California Department of Water & Power, RB: | | | | | | | | |
Build America Bonds, 6.60%, 07/01/50 | | | 1,400 | | | | 1,919,274 | |
Power System, Series A, 5.00%, 07/01/42 | | | 9,250 | | | | 10,402,735 | |
Series A, 5.00%, 07/01/41 | | | 27,950 | | | | 31,162,573 | |
Series A, 5.00%, 07/01/43 | | | 1,000 | | | | 1,136,590 | |
Series C, 5.00%, 07/01/42 | | | 5,000 | | | | 5,656,650 | |
| | |
| 20 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock California Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Utilities (continued) | |
City of Los Angeles California Department of Water & Power, Refunding RB: | | | | | | | | |
Series A, 5.00%, 07/01/34 | | $ | 22,750 | | | $ | 25,578,052 | |
Series A, 5.00%, 07/01/46 | | | 15,365 | | | | 17,055,150 | |
Series B, 5.00%, 07/01/43 | | | 15,000 | | | | 17,145,300 | |
Water System, Series A, 5.25%, 07/01/39 | | | 8,000 | | | | 8,492,800 | |
City of Los Angeles California Wastewater System Revenue, Refunding RB, Green Bond,Sub-Series A: | | | | | | | | |
5.00%, 06/01/37 | | | 9,050 | | | | 10,492,298 | |
5.00%, 06/01/43 | | | 10,000 | | | | 11,420,900 | |
5.25%, 06/01/47 | | | 22,890 | | | | 26,414,602 | |
City of Petaluma California Wastewater Revenue, Refunding RB, 6.00%, 05/01/21(c) | | | 5,625 | | | | 6,179,288 | |
City of Riverside California Electric Revenue, RB, Build America Bond, 7.61%, 10/01/40 | | | 2,500 | | | | 3,540,375 | |
City of Sacramento California Water Revenue, RB, 5.00%, 09/01/42 | | | 6,465 | | | | 7,311,010 | |
City of San Francisco California Public Utilities Commission Water Revenue, Refunding RB, Green Bond, Series D, 5.00%, 11/01/32 | | | 20,000 | | | | 23,515,800 | |
City of San Juan California Water District, COP, Series A, 6.00%, 02/01/19(c) | | | 5,700 | | | | 5,740,071 | |
Country of California Santa Barbara, COP, AMT, Series B: | | | | | | | | |
5.00%, 12/01/37 | | | 7,600 | | | | 8,452,796 | |
5.00%, 12/01/38 | | | 5,000 | | | | 5,543,050 | |
East Bay California Municipal Utility District Water System Revenue, RB, Green Bond, Series A, 5.00%, 06/01/45 | | | 8,750 | | | | 9,899,662 | |
Eastern Municipal Water District Financing Authority, RB, Series D, 5.25%, 07/01/42 | | | 18,500 | | | | 21,620,580 | |
Imperial Irrigation District Electric System Revenue, Refunding RB,Series B-2, 5.00%, 11/01/41 | | | 5,675 | | | | 6,340,734 | |
Irvine Ranch Water District, Special Assessment Bonds: | | | | | | | | |
5.25%, 02/01/41 | | | 16,855 | | | | 19,554,834 | |
Build America Bonds, Series B, 6.62%, 05/01/40 | | | 4,000 | | | | 5,134,560 | |
Los Angeles Department of Water, Refunding RB, Series A: | | | | | | | | |
5.00%, 07/01/41 | | | 17,110 | | | | 19,294,947 | |
5.25%, 07/01/44 | | | 10,650 | | | | 12,180,192 | |
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 07/01/40 | | | 15,585 | | | | 17,526,735 | |
Metropolitan Water District of Southern California, Refunding RB: | | | | | | | | |
5.00%, 01/01/38(e) | | | 7,000 | | | | 8,113,280 | |
5.00%, 01/01/39(e) | | | 3,625 | | | | 4,191,878 | |
Series A, 5.00%, 10/01/35 | | | 5,000 | | | | 5,439,100 | |
Northern California Power Agency, RB, Build America Bonds, Series B, 7.31%, 06/01/40 | | | 2,150 | | | | 2,786,121 | |
San Diego County Water Authority Financing Corp., Refunding RB: | | | | | | | | |
Green Bonds, Series A, 5.00%, 05/01/32 | | | 10,330 | | | | 11,921,750 | |
Series B, 5.00%, 05/01/38 | | | 20,405 | | | | 23,102,337 | |
San Diego Public Facilities Financing Authority Water Revenue, Refunding RB, Series B, 5.00%, 08/01/38 | | | 16,460 | | | | 18,749,092 | |
Southern California Water Replenishment District, RB, 5.00%, 08/01/43(e) | | | 5,000 | | | | 5,695,100 | |
State of California Department of Water Resources, Refunding RB, Central Valley Project Water System Revenue Bonds, Series AW, 4.00%, 12/01/34 | | | 26,885 | | | | 28,619,620 | |
Vista Joint Powers Financing Authority, Refunding LRB, Lease, 5.25%, 05/01/37 | | | 15,000 | | | | 17,100,450 | |
| | | | | | | | |
| | | | | | | 497,156,512 | |
| | | | | | | | |
Total Municipal Bonds in California | | | | 2,213,885,610 | |
| | | | | | | | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
Puerto Rico — 1.2% | |
| State — 0.2% | |
Commonwealth of Puerto Rico, GO, Refunding, Series A(g)(h): | | | | | | | | |
Public Improvement, 5.50%, 07/01/39 | | $ | 1,470 | | | $ | 852,600 | |
8.00%, 07/01/35 | | | 3,820 | | | | 2,210,825 | |
Commonwealth of Puerto Rico, GO, ,
6.00%, 07/01/38(g)(h) | | | 1,630 | | | | 945,400 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Refunding RB, Series C(g)(h): | | | | | | | | |
First Subordinate, 5.75%, 08/01/57 | | | 1,265 | | | | 1,010,419 | |
Senior Lien, 5.00%, 08/01/40 | | | 2,115 | | | | 1,692,000 | |
| | | | | | | | |
| | | | | | | 6,711,244 | |
| Utilities — 1.0% | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A: | | | | | | | | |
5.75%, 07/01/37 | | | 3,065 | | | | 2,927,075 | |
6.00%, 07/01/44 | | | 5,815 | | | | 5,582,400 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 07/01/38 | | | 11,935 | | | | 11,457,600 | |
Puerto Rico Electric Power Authority, RB(g)(h): | | | | | | | | |
Series A, 5.00%, 07/01/29 | | | 2,810 | | | | 1,770,300 | |
Series A, 7.00%, 07/01/33 | | | 920 | | | | 595,700 | |
Series A, 5.00%, 07/01/42 | | | 2,820 | | | | 1,776,600 | |
Series A, 7.00%, 07/01/43 | | | 955 | | | | 618,362 | |
Series TT, 5.00%, 07/01/25 | | | 480 | | | | 302,400 | |
Series XX, 5.25%, 07/01/40 | | | 1,940 | | | | 1,222,200 | |
Puerto Rico Electric Power Authority, Refunding RB, Series ZZ, 5.25%, 07/01/21(g)(h) | | | 250 | | | | 157,500 | |
| | | | | | | | |
| | | | | | | 26,410,137 | |
| | | | | | | | |
Total Municipal Bonds in Puerto Rico | | | | 33,121,381 | |
| | | | | | | | |
Total Municipal Bonds — 84.9%
(Cost — $2,242,280,587) | | | | 2,247,006,991 | |
| | | | | | | | |
Municipal Bonds Transferred to Tender Option Bond Trusts(i) — 19.5% | |
|
California — 19.5% | |
| County/City/Special District/School District — 2.7% | |
County of Santa Clara California, GO, Election of 2008, Series B, 4.00%, 08/01/42 | | | 14,995 | | | | 15,144,323 | |
Grossmont-Cuyamaca Community College District, GO, Election of 2008, Series B, 5.00%, 08/01/44(j) | | | 30,215 | | | | 34,576,266 | |
Los Angeles California Unified School District, GO, Election of 2008,Series B-1, 5.25%, 07/01/42(d) | | | 17,685 | | | | 20,605,819 | |
| | | | | | | | |
| | | | | | | 70,326,408 | |
| Education — 4.6% | |
California State University, Refunding RB, Systemwide, Series A: | | | | | | | | |
5.00%, 11/01/42 | | | 10,000 | | | | 11,239,800 | |
5.00%, 11/01/43 | | | 35,250 | | | | 40,167,023 | |
University of California, RB, Limited Project, Series M, 5.00%, 05/15/42 | | | 20,000 | | | | 22,376,300 | |
University of California, Refunding RB, Series AZ,
5.00%, 05/15/43 | | | 41,740 | | | | 47,319,177 | |
| | | | | | | | |
| | | | | | | 121,102,300 | |
| Health — 0.6% | |
California Health Facilities Financing Authority, Refunding RB, Sutter Health, Series A, 5.00%, 11/15/38 | | | 15,000 | | | | 16,814,925 | |
| | | | | | | | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 21 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock California Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| State — 0.8% | |
State of California, GO, Refunding, Various Purpose, 5.25%, 10/01/39 | | $ | 18,150 | | | $ | 20,708,424 | |
| | | | | | | | |
| Transportation — 5.5% | |
City & County of San Francisco California, Refunding ARB, Series A, AMT, 5.25%, 05/01/42 | | | 40,370 | | | | 45,316,940 | |
City & County of San Francisco California Airports Commission, Refunding ARB, Series A, AMT, 5.00%, 05/01/42 | | | 26,950 | | | | 29,663,595 | |
City & County of San Francisco California Airports Commission, Refunding RB, San Francisco International Airport, Series B, AMT, 5.00%, 05/01/41 | | | 22,475 | | | | 24,567,774 | |
City of Los Angeles California Department of Airports, RB, AMT: | | | | | | | | |
Los Angeles International Airport, Series B, 5.00%, 05/15/41 | | | 18,717 | | | | 20,479,770 | |
Sub-Series A, 5.00%, 05/15/42 | | | 23,625 | | | | 26,030,338 | |
| | | | | | | | |
| | | | 146,058,417 | |
| Utilities — 5.3% | |
City & County of San Francisco California Public Utilities Commission Wastewater Revenue, RB, Series B, 5.00%, 10/01/43 | | | 41,405 | | | | 47,031,870 | |
East Bay Municipal Utility District Water System Revenue, RB, Green Bond, Series A, 5.00%, 06/01/42 | | | 27,045 | | | | 30,742,438 | |
Eastern Municipal Water District Financing Authority, RB, Series D, 5.00%, 07/01/47 | | | 36,105 | | | | 40,949,259 | |
Irvine Ranch Water District, 5.00%, 03/01/46 | | | 19,330 | | | | 21,753,015 | |
| | | | | | | | |
| | | | 140,476,582 | |
| | | | | |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 19.5%
(Cost — $524,262,290) | | | | 515,487,056 | |
| | | | | |
Total Long-Term Investments — 105.9%
(Cost — $2,808,150,568) | | | | 2,802,387,845 | |
| | | | | |
| | | | | | | | |
| Security | |
Shares | | | Value | |
| Short-Term Securities — 1.9% | |
BlackRock Liquidity Funds California Money Fund, Institutional Class, 1.26%(k)(l) | | | 51,009,221 | | | $ | 51,019,423 | |
Total Short-Term Securities — 1.9%
(Cost — $51,019,423) | | | | 51,019,423 | |
| | | | | |
| |
Total Investments — 107.8%
(Cost — $2,859,169,991) | | | | 2,853,407,268 | |
Other Assets Less Liabilities — 0.9% | | | | 22,720,830 | |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (8.7)% | | | | (230,104,173 | ) |
| | | | | |
Net Assets — 100.0% | | | $ | 2,646,023,925 | |
| | | | | |
| (a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (c) | U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (d) | All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement(s), which expires on January 1, 2026 is $9,322,126. See Note 4 of the Notes to Financial Statements for details. |
| (e) | When-issued security. |
| (f) | Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end. |
| (g) | Non-income producing security. |
| (h) | Issuer filed for bankruptcy and/or is in default. |
| (i) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (j) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
| (k) | Annualized7-day yield as of period end. |
| (l) | During the six months ended November 30, 2018, investments in issuers considered to be affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliate | | Shares
Held at
05/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares
Held at
11/30/18 | | | Value at
11/30/18 | | | Income | | | Net
Realized
Gain (Loss) (a) | | | Change in
Unrealized
Appreciation
(Depreciation) | |
BlackRock Liquidity Funds California Money Fund, Institutional Class | | | — | | | | 51,009,221 | (b) | | | — | | | | 51,009,221 | | | $ | 51,019,423 | | | $ | 87,422 | | | $ | — | | | $ | — | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | 148,286,820 | | | | | | | | (148,286,820 | )(c) | | | — | | | | — | | | | 935,295 | | | | 15,111 | | | | (11,753 | ) |
iShares California Muni Bond ETF | | | — | | | | 875,000 | | | | (875,000 | ) | | | — | | | | — | | | | 184,090 | | | | (656,616 | ) | | | — | |
iShares National Municipal Bond Fund | | | 250,000 | | | | 380,000 | | | | (630,000 | ) | | | — | | | | — | | | | 556,880 | | | | (953,177 | ) | | | (195,000 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 51,019,423 | | | $ | 1,763,687 | | | $ | (1,594,682 | ) | | $ | (206,753 | ) |
| | | | | | | | | | | | | | | | | |
| | (a) | Includes net capital gain distributions, if applicable. | |
| | (b) | Represents net shares purchased. | |
| | (c) | Represents net shares sold. | |
For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sectorsub-classifications for reporting ease.
| | |
| 22 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock California Municipal Opportunities Fund |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| | | | | | | | | | | | | | | | |
| Description | | Number of
Contracts | | | Expiration
Date | | | Notional
Amount (000) | | | Value/
Unrealized
Appreciation
(Depreciation) | |
Short Contracts: | | | | | | | | | | | | | | | | |
10-Year U.S. Treasury Note | �� | | 2,793 | | | | 03/20/19 | | | $ | 333,633 | | | $ | (814,597 | ) |
Long U.S. Treasury Bond | | | 4,152 | | | | 03/20/19 | | | | 580,891 | | | | (2,571,338 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (3,385,935 | ) |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Commodity
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Foreign
Currency
Exchange
Contracts | | | Interest
Rate
Contracts | | | Other
Contracts | | | Total | |
Liabilities — Derivative Financial Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized depreciation(a) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 3,385,935 | | | $ | — | | | $ | 3,385,935 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes cumulative appreciation (depreciation) on futures contracts if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. | |
For the six months ended November 30, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Commodity
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Foreign
Currency
Exchange
Contracts | | | Interest
Rate
Contracts | | | Other
Contracts | | | Total | |
Net Realized Gain (Loss) from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 12,852,718 | | | $ | — | | | $ | 12,852,718 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 5,591,119 | | | $ | — | | | $ | 5,591,119 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | |
Average notional value of contracts — long | | $ | — | (a) |
Average notional value of contracts — short | | | 799,798,797 | |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
| | (a) | Derivative not held atquarter-end. The amount shown in the Statements of Operations reflects the results of activity during the period. | |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.
The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | |
Investments: | |
Long-Term Investments(a) | | $ | — | | | $ | 2,802,387,845 | | | $ | — | | | $ | 2,802,387,845 | |
Short-Term Securities | | | 51,019,423 | | | | — | | | | — | | | | 51,019,423 | |
| | | | | | | | | | | | | | | | |
| | $ | 51,019,423 | | | $ | 2,802,387,845 | | | $ | — | | | $ | 2,853,407,268 | |
| | | | | | | | | | | | | | | | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 23 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock California Municipal Opportunities Fund |
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Derivative Financial Instruments(b) | |
Liabilities: | |
Interest rate contracts | | $ | (3,385,935 | ) | | $ | — | | | $ | — | | | $ | (3,385,935 | ) |
| | | | | | | | | | | | | | | | |
| | (a) | See above Schedule of Investments for values in each sector. | |
| | (b) | Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument. | |
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $229,542,157 are categorized as Level 2 within the disclosure hierarchy.
During the six months ended November 30, 2018, there were no transfers between levels.
See notes to financial statements.
| | |
| 24 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) November 30, 2018 | | BlackRock New Jersey Municipal Bond Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
Municipal Bonds — 92.9% | |
|
New Jersey — 92.6% | |
| Corporate — 5.9% | |
New Jersey EDA, RB: | | | | | | | | |
Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29 | | $ | 3,500 | | | $ | 3,769,920 | |
Continental Airlines, Inc. Project, Series B, AMT, 5.63%, 11/15/30 | | | 1,000 | | | | 1,117,600 | |
Provident Group-Kean Properties, Series A, 5.00%, 07/01/47 | | | 265 | | | | 276,981 | |
Series A, 5.00%, 06/15/42 | | | 4,545 | | | | 4,700,802 | |
New Jersey EDA, Refunding RB: | | | | | | | | |
New Jersey American Water Co., Inc. Project, Series A, AMT, 5.70%, 10/01/39 | | | 1,445 | | | | 1,480,128 | |
New Jersey American Water Co., Inc. Project, Series B, AMT, 5.60%, 11/01/34 | | | 1,000 | | | | 1,038,390 | |
New Jersey American Water Co., Inc. Project, Series D, AMT, 4.88%, 11/01/29 | | | 1,000 | | | | 1,032,980 | |
Provident Group-Monteclair Properties LLC (AGM), 5.00%, 06/01/37 | | | 2,760 | | | | 2,997,774 | |
Sub Series A, 5.00%, 07/01/33 | | | 125 | | | | 132,604 | |
Sub Series A, 4.00%, 07/01/34 | | | 165 | | | | 158,649 | |
| | | | | | | | |
| | | | | | | 16,705,828 | |
| County/City/Special District/School District — 10.8% | |
Carlstadt School District, GO, Refunding, 4.00%, 05/01/30 | | | 1,415 | | | | 1,467,709 | |
Casino Reinvestment Development Authority, Refunding RB: | | | | | | | | |
5.25%, 11/01/39 | | | 1,020 | | | | 1,074,937 | |
5.25%, 11/01/44 | | | 1,590 | | | | 1,671,392 | |
(AGM), 4.00%, 11/01/34 | | | 500 | | | | 504,475 | |
City of Bayonne New Jersey, GO, Refunding, Qualified General Improvement (BAM), 5.00%, 07/01/39 | | | 660 | | | | 715,427 | |
City of Perth Amboy New Jersey, GO, CAB, Refunding (AGM): | | | | | | | | |
5.00%, 07/01/35 | | | 600 | | | | 600,810 | |
5.00%, 07/01/36 | | | 145 | | | | 145,190 | |
County of Essex New Jersey Improvement Authority, LRB, Newark Project, Series A (AGM), 5.00%, 11/01/20 | | | 501 | | | | 520,243 | |
County of Essex New Jersey Improvement Authority, RB: | | | | | | | | |
AMT, 5.25%, 07/01/45(a) | | | 1,000 | | | | 1,002,350 | |
Newark Project, Series A (AGM), 6.00%, 11/01/30 | | | 1,090 | | | | 1,161,886 | |
County of Essex New Jersey Improvement Authority, Refunding RB, Project Consolidation (NPFGC), 5.50%, 10/01/29 | | | 1,500 | | | | 1,849,470 | |
County of Hudson New Jersey Improvement Authority, RB, Harrison Parking Facility Project, Series C, 5.25%, 01/01/19(b) | | | 3,900 | | | | 3,910,140 | |
County of Union New Jersey Utilities Authority, Refunding RB, Covanta Union, Inc., Series A, AMT, 4.75%, 12/01/31 | | | 1,250 | | | | 1,322,387 | |
New Jersey EDA, RB: | | | | | | | | |
Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 04/01/31 | | | 2,000 | | | | 2,217,860 | |
Series EEE, 5.00%, 06/15/43 | | | 2,155 | | | | 2,225,533 | |
New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 04/01/28 | | | 2,500 | | | | 2,847,550 | |
New Jersey Sports & Exposition Authority, Refunding RB, (NPFGC), 5.50%, 03/01/21(d) | | | 805 | | | | 865,150 | |
Township of Egg Harbor New Jersey School District, GO, Refunding, (AGM), 5.75%, 07/15/25 | | | 2,000 | | | | 2,402,440 | |
Township of Irvington New Jersey, GO, Refunding, Series A (AGM), 5.00%, 07/15/31 | | | 2,445 | | | | 2,697,837 | |
Township of Sparta New Jersey Board of Education, GO, Refunding, 5.00%, 02/15/36 | | | 1,350 | | | | 1,497,501 | |
| | | | | | | | |
| | | | | | | 30,700,287 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Education — 17.8% | |
County of Atlantic New Jersey Improvement Authority, RB, Stockton University Atlantic City, Series A (AGM), 4.00%, 07/01/46 | | $ | 1,250 | | | $ | 1,258,350 | |
County of Gloucester New Jersey Improvement Authority, RB, Rowan University General Capital Improvement Projects: | | | | | | | | |
5.00%, 07/01/44 | | | 530 | | | | 574,239 | |
Series A, 5.00%, 07/01/34 | | | 1,855 | | | | 2,044,099 | |
New Jersey EDA, RB: | | | | | | | | |
Foundation Academy Charter School Project, Series A, 5.00%, 07/01/50 | | | 200 | | | | 206,474 | |
Golden Door Charter School Project, Series A, 6.25%, 11/01/38(a)(c) | | | 210 | | | | 221,073 | |
Golden Door Charter School Project, Series A, 6.50%, 11/01/52(a)(c) | | | 1,210 | | | | 1,277,724 | |
Golden Door Charter School Project, Series A, 5.13%, 11/01/29(a)(c) | | | 100 | | | | 100,574 | |
Hatikvah International Academy Charter School Project, Series A, 5.00%, 07/01/27(a) | | | 170 | | | | 173,318 | |
Hatikvah International Academy Charter School Project, Series A, 5.25%, 07/01/37(a) | | | 470 | | | | 468,322 | |
Hatikvah International Academy Charter School Project, Series A, 5.38%, 07/01/47(a) | | | 815 | | | | 809,662 | |
Rutgers — The State University of New Jersey, College Avenue Redevelopment Project, 5.00%, 06/15/38 | | | 2,000 | | | | 2,196,980 | |
School Facilities Construction (AGC), 5.50%, 12/15/18(b) | | | 525 | | | | 525,604 | |
School Facilities Construction (AGC), 5.50%, 12/15/34 | | | 10 | | | | 10,025 | |
Series AAA, 5.00%, 06/15/41 | | | 1,990 | | | | 2,064,307 | |
Team Academy Charter School Project, 6.00%, 10/01/43 | | | 1,000 | | | | 1,079,170 | |
New Jersey EDA, Refunding RB: | | | | | | | | |
Greater Brunswick Charter School, Inc. Project, Series A, 4.75%, 08/01/24(a) | | | 300 | | | | 301,755 | |
Greater Brunswick Charter School, Inc. Project, Series A, 5.63%, 08/01/34(a) | | | 250 | | | | 249,593 | |
Greater Brunswick Charter School, Inc. Project, Series A, 5.88%, 08/01/44(a) | | | 430 | | | | 425,743 | |
School Facilities Construction, Series PP,
4.00%, 06/15/30 | | | 4,875 | | | | 4,838,876 | |
Teaneck Community Charter School Project, Series A, 3.50%, 09/01/22(a) | | | 125 | | | | 122,758 | |
Teaneck Community Charter School Project, Series A, 5.00%, 09/01/37(a) | | | 315 | | | | 304,196 | |
Teaneck Community Charter School Project, Series A, 5.13%, 09/01/52(a) | | | 1,000 | | | | 950,000 | |
New Jersey Educational Facilities Authority, RB: | | | | | | | | |
Higher Educational Capital Improvement Fund, Series A, 5.00%, 09/01/33 | | | 1,750 | | | | 1,842,645 | |
Rider University Issue, Series F, 4.00%, 07/01/42 | | | 940 | | | | 868,250 | |
Rider University Issue, Series F, 5.00%, 07/01/47 | | | 1,670 | | | | 1,754,268 | |
New Jersey Educational Facilities Authority, Refunding RB: | | | | | | | | |
Kean University, Series A, 5.25%, 09/01/19(b) | | | 1,705 | | | | 1,747,710 | |
Kean University, Series A (AGC), 5.50%,
09/01/19(b) | | | 1,000 | | | | 1,026,880 | |
Kean University, Series H, 4.00%, 07/01/39 | | | 715 | | | | 735,935 | |
Montclair State University, Series A, 5.00%, 07/01/33 | | | 2,005 | | | | 2,206,021 | |
Montclair State University, Series B, 5.00%, 07/01/32 | | | 2,465 | | | | 2,778,794 | |
Ramapo College, Series B, 5.00%, 07/01/42 | | | 560 | | | | 599,659 | |
Stockton University, Series A, 5.00%, 07/01/41 | | | 230 | | | | 245,005 | |
University of Medicine & Dentistry, Series B, 7.50%, 06/01/19(b) | | | 2,500 | | | | 2,569,050 | |
William Paterson University (AGC), 5.00%, 07/01/38 | | | 240 | | | | 240,446 | |
William Paterson University, Series C, 4.00%, 07/01/35 | | | 1,500 | | | | 1,541,790 | |
New Jersey Higher Education Student Assistance Authority, RB, Student Loan, AMT,Sub-Series C, 4.00%, 12/01/48 | | | 700 | | | | 672,700 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 25 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock New Jersey Municipal Bond Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Education (continued) | |
New Jersey Higher Education Student Assistance Authority, Refunding RB: | | | | | | | | |
Series 1, AMT, 5.75%, 12/01/28 | | $ | 505 | | | $ | 534,750 | |
Series 1A, 5.00%, 12/01/25 | | | 50 | | | | 51,197 | |
Series 1A, 5.00%, 12/01/26 | | | 320 | | | | 327,616 | |
New Jersey Institute of Technology, RB, Series A: | | | | | | | | |
5.00%, 07/01/22(b) | | | 460 | | | | 506,543 | |
5.00%, 07/01/22(b) | | | 280 | | | | 308,330 | |
5.00%, 07/01/32 | | | 1,040 | | | | 1,120,246 | |
5.00%, 07/01/40 | | | 5,000 | | | | 5,544,000 | |
5.00%, 07/01/42 | | | 635 | | | | 679,075 | |
New Jersey State Turnpike Authority, RB, Series E, 5.00%, 01/01/45 | | | 2,000 | | | | 2,157,980 | |
| | | | | | | | |
| | | | | | | 50,261,732 | |
| Health — 18.9% | |
County of Burlington New Jersey Bridge Commission, Refunding RB, The Evergreens Project, 5.63%, 01/01/38 | | | 3,175 | | | | 2,982,373 | |
New Jersey Health Care Facilities Financing Authority, RB: | | | | | | | | |
Greystone Park Psychiatric Hospital Project, Series A, 5.00%, 09/15/29 | | | 2,000 | | | | 2,130,440 | |
Inspira Health Obligated Group, 5.00%, 07/01/42 | | | 4,660 | | | | 5,100,230 | |
Robert Wood Johnson University Hospital, Series A, 5.25%, 07/01/35 | | | 1,460 | | | | 1,605,898 | |
Robert Wood Johnson University Hospital, Series A, 5.00%, 07/01/39 | | | 1,150 | | | | 1,253,845 | |
Robert Wood Johnson University Hospital, Series A, 5.00%, 07/01/43 | | | 1,535 | | | | 1,657,140 | |
Robert Wood Johnson University Hospital, Series A, 5.50%, 07/01/43 | | | 920 | | | | 1,015,146 | |
Virtua Health, Series A (AGC), 5.50%, 07/01/38 | | | 3,620 | | | | 3,692,328 | |
New Jersey Health Care Facilities Financing Authority, Refunding RB: | | | | | | | | |
AHS Hospital Corp., 6.00%, 07/01/21(b) | | | 2,985 | | | | 3,279,202 | |
AHS Hospital Corp., 4.00%, 07/01/41 | | | 1,000 | | | | 996,580 | |
General Hospital Center at Passaic (AGM), 6.75%, 07/01/19(d) | | | 30 | | | | 30,845 | |
Hackensack Meridian Health Obligated Group, Series A, 5.00%, 07/01/37 | | | 6,000 | | | | 6,729,600 | |
Holy Name Medical Center, 5.00%, 07/01/25 | | | 500 | | | | 518,595 | |
Hunterdon Medical Center, 5.00%, 07/01/31 | | | 300 | | | | 326,922 | |
Hunterdon Medical Center, 5.00%, 07/01/45 | | | 2,650 | | | | 2,813,744 | |
Inspira Health Obligated Group, Series A, 3.00%, 07/01/32 | | | 785 | | | | 719,562 | |
Meridian Health System Obligated Group, 5.00%, 07/01/27 | | | 1,500 | | | | 1,632,840 | |
Princeton Healthcare System, 5.00%, 07/01/34 | | | 1,000 | | | | 1,112,930 | |
Princeton Healthcare System, 5.00%, 07/01/39 | | | 4,060 | | | | 4,454,307 | |
Robert Wood Johnson University Hospital, 5.00%, 01/01/20(b) | | | 1,500 | | | | 1,548,090 | |
RWJ Barnabas Health Obligated Group, Series A, 4.00%, 07/01/32 | | | 2,300 | | | | 2,385,031 | |
RWJ Barnabas Health Obligated Group, Series A, 5.00%, 07/01/43 | | | 1,290 | | | | 1,426,817 | |
St. Barnabas Health Care System, Series A, 5.63%, 07/01/21(b) | | | 1,540 | | | | 1,675,351 | |
St. Barnabas Health Care System, Series A, 5.00%, 07/01/25 | | | 2,230 | | | | 2,422,694 | |
St. Luke’s Warren Hospital Obligated Group, 5.00%, 08/15/34 | | | 460 | | | | 492,333 | |
Virtua Health, 5.00%, 07/01/29 | | | 285 | | | | 314,834 | |
New Jersey Health Care System Facilities Financing Authority, Refunding RB, St. Barnabas Health Care, Series A, 5.00%, 07/01/24 | | | 1,000 | | | | 1,088,560 | |
| | | | | | | | |
| | | | | | | 53,406,237 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Housing — 2.6% | |
New Jersey EDA, Refunding RB, Provident Group-Montclair Properties LLC (AGM), 5.00%, 06/01/42 | | $ | 690 | | | $ | 742,233 | |
New Jersey Housing & Mortgage Finance Agency, Refunding RB, Series A: | | | | | | | | |
M/F Housing, 4.00%, 11/01/48 | | | 150 | | | | 149,477 | |
M/F Housing, 4.10%, 11/01/53 | | | 100 | | | | 100,071 | |
S/F Housing, 3.75%, 10/01/35 | | | 1,815 | | | | 1,805,961 | |
Newark Housing Authority, RB, M/F Housing, Series A: | | | | | | | | |
5.00%, 12/01/30 | | | 1,640 | | | | 1,816,595 | |
4.38%, 12/01/33 | | | 2,515 | | | | 2,638,059 | |
| | | | | | | | |
| | | | | | | 7,252,396 | |
| State — 9.8% | |
Garden State Preservation Trust, RB (AGM): | | | | | | | | |
CAB, Series B, 0.00%, 11/01/27(e) | | | 4,135 | | | | 3,119,113 | |
CAB, Series B, 0.00%, 11/01/24(e) | | | 10,000 | | | | 8,470,200 | |
Election of 2005, Series A, 5.75%, 11/01/28 | | | 2,565 | | | | 3,009,591 | |
New Jersey EDA, RB: | | | | | | | | |
CAB, Motor Vehicle Surcharge, Series A (NPFGC), 0.00%, 07/01/21(e) | | | 1,675 | | | | 1,555,305 | |
School Facilities Construction (AGC), 6.00%, 12/15/18(b) | | | 985 | | | | 986,271 | |
School Facilities Construction (AGC), 6.00%, 12/15/18(b) | | | 15 | | | | 15,020 | |
School Facilities Construction Bonds, Series DDD, 5.00%, 06/15/42 | | | 3,000 | | | | 3,089,610 | |
School Facilities Construction, Series KK, 5.00%, 03/01/38 | | | 1,070 | | | | 1,104,154 | |
New Jersey EDA, Refunding RB: | | | | | | | | |
CAB, Economic Fund, Series A (NPFGC), 0.00%, 03/15/21(e) | | | 2,000 | | | | 1,873,740 | |
Cigarette Tax, 5.00%, 06/15/22 | | | 1,700 | | | | 1,820,734 | |
Cigarette Tax, 5.00%, 06/15/29 | | | 640 | | | | 672,269 | |
State of New Jersey, COP, Equipment Lease Purchase, Series A(b): | | | | | | | | |
5.25%, 06/15/19 | | | 1,000 | | | | 1,017,970 | |
5.25%, 06/15/19 | | | 1,110 | | | | 1,129,947 | |
| | | | | | | | |
| | | | | | | 27,863,924 | |
| Tobacco — 2.1% | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.25%, 06/01/46 | | | 915 | | | | 969,708 | |
Sub-Series B, 5.00%, 06/01/46 | | | 5,085 | | | | 5,091,458 | |
| | | | | | | | |
| | | | | | | 6,061,166 | |
| Transportation — 22.0% | |
Delaware River Port Authority, RB, Series D, 5.00%, 01/01/20(b) | | | 1,875 | | | | 1,936,125 | |
Delaware River Port Authority of Pennsylvania & New Jersey, RB, 5.00%, 01/01/40 | | | 1,500 | | | | 1,621,140 | |
New Jersey EDA, RB, AMT, Goethals Bridge Replacement Project: | | | | | | | | |
(AGM), 5.13%, 07/01/42 | | | 1,000 | | | | 1,064,880 | |
5.13%, 01/01/39 | | | 1,000 | | | | 1,066,790 | |
Private Activity Bond, 5.38%, 01/01/43 | | | 905 | | | | 966,323 | |
New Jersey State Turnpike Authority, Refunding RB: | | | | | | | | |
Series A (BHAC), 5.25%, 01/01/30 | | | 1,000 | | | | 1,225,310 | |
Series B, 5.00%, 01/01/34 | | | 1,600 | | | | 1,821,504 | |
Series E, 5.00%, 01/01/32 | | | 1,350 | | | | 1,551,258 | |
Series I, 5.00%, 01/01/20(b) | | | 2,500 | | | | 2,582,850 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
CAB, Transportation System, Series A, 0.00%, 12/15/32(e) | | | 10,000 | | | | 5,268,500 | |
CAB, Transportation System, Series A, 0.00%, 12/15/35(e) | | | 8,900 | | | | 3,974,473 | |
CAB, Transportation System, Series A, 0.00%, 12/15/38(e) | | | 10,000 | | | | 3,777,300 | |
Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/30 | | | 1,250 | | | | 1,374,813 | |
Series B, 5.25%, 06/15/26 | | | 1,500 | | | | 1,586,130 | |
| | |
| 26 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock New Jersey Municipal Bond Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Transportation (continued) | |
Transportation Program Bonds, Series AA,
5.00%, 06/15/32 | | $ | 1,860 | | | $ | 1,941,914 | |
Transportation Program, Series AA, 5.25%, 06/15/31 | | | 2,000 | | | | 2,144,060 | |
Transportation Program, Series AA, 5.00%, 06/15/45 | | | 1,000 | | | | 1,037,170 | |
Transportation System, Series A, 6.00%, 06/15/35 | | | 3,185 | | | | 3,424,257 | |
Transportation System, Series B, 5.00%, 06/15/42 | | | 600 | | | | 618,480 | |
New Jersey Transportation Trust Fund Authority, Refunding RB: | | | | | | | | |
Federal Highway Reimbursement, Series A, 5.00%, 06/15/31 | | | 2,730 | | | | 2,990,333 | |
Transportation System, Series A, 5.00%, 12/15/32 | | | 1,775 | | | | 1,914,746 | |
Transportation System, Series A, 5.00%, 12/15/35 | | | 1,005 | | | | 1,067,431 | |
Transportation System, Series B (NPFGC), 5.50%, 12/15/21 | | | 1,800 | | | | 1,947,114 | |
Port Authority of New York & New Jersey, ARB: | | | | | | | | |
Consolidated, 93rd Series, 6.13%, 06/01/94 | | | 1,000 | | | | 1,167,610 | |
JFK International Air Terminal LLC, Special Project, Series 6, AMT (NPFGC), 5.75%, 12/01/22 | | | 1,645 | | | | 1,706,276 | |
Special Project, JFK International Air Terminal LLC Project, Series 8, 6.00%, 12/01/42 | | | 1,000 | | | | 1,064,570 | |
Port Authority of New York & New Jersey, Refunding ARB, Consolidated, AMT: | | | | | | | | |
178th Series, 5.00%, 12/01/43 | | | 285 | | | | 307,401 | |
186th Series, 5.00%, 10/15/44 | | | 3,000 | | | | 3,225,030 | |
Port Authority of New York & New Jersey, Refunding RB, Consolidated 205th series, 5.00%, 11/15/42 | | | 1,975 | | | | 2,218,596 | |
South Jersey Port Corp., Refunding ARB, Marine Terminal, Series B, AMT, 5.00%, 01/01/48 | | | 2,380 | | | | 2,503,498 | |
South Jersey Transportation Authority, Refunding RB, Transportation System, Series A: | | | | | | | | |
5.00%, 11/01/28 | | | 295 | | | | 312,573 | |
5.00%, 11/01/29 | | | 295 | | | | 311,576 | |
5.00%, 11/01/32 | | | 440 | | | | 472,265 | |
5.00%, 11/01/33 | | | 250 | | | | 267,783 | |
5.00%, 11/01/34 | | | 250 | | | | 266,825 | |
5.00%, 11/01/39 | | | 1,500 | | | | 1,591,140 | |
| | | | | | | | |
| | | | | | | 62,318,044 | |
| Utilities — 2.7% | |
County of Gloucester New Jersey Pollution Control Financing Authority, Refunding RB, Keystone Urban Renewal Project, Series A, AMT, 5.00%, 12/01/24 | | | 500 | | | | 527,495 | |
New Jersey Environmental Infrastructure Trust, RB, Series B, AMT, 5.00%, 09/01/28 | | | 1,355 | | | | 1,443,021 | |
North Hudson New Jersey Sewerage Authority, Refunding RB, Series A (NPFGC), 0.00%, 08/01/21(d)(e) | | | 5,000 | | | | 4,710,050 | |
Passaic Valley Water Commission, RB, Series A, 6.00%, 12/15/20(b) | | | 980 | | | | 1,056,391 | |
| | | | | | | | |
| | | | | | | 7,736,957 | |
| | | | | | | | |
Total Municipal Bonds in New Jersey | | | | 262,306,571 | |
| | | | | | | | |
|
Puerto Rico — 0.3% | |
| Tobacco — 0.3% | |
Children’s Trust Fund, Refunding RB, Tobacco SettlementAsset-Backed Bonds, 5.63%, 05/15/43 | | | 970 | | | | 971,804 | |
| | | | | | | | |
Total Municipal Bonds in Puerto Rico | | | | 971,804 | |
| | | | | | | | |
Total Municipal Bonds — 92.9%
(Cost — $253,452,373) | | | | 263,278,375 | |
| | | | | | | | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
Municipal Bonds Transferred to Tender Option Bond Trusts(f) — 9.9% | |
|
New Jersey — 9.9% | |
| County/City/Special District/School District — 3.7% | |
County of Hudson New Jersey Improvement Authority, RB, Hudson County Vocational-Technical Schools Project, 5.25%, 05/01/51 | | $ | 1,440 | | | $ | 1,600,139 | |
County of Union New Jersey Utilities Authority, Refunding RB, Series A, AMT: | | | | | | | | |
County Deficiency Agreement, 5.00%, 06/15/41 | | | 2,000 | | | | 2,129,030 | |
Resource Recovery Facility, Covanta Union, Inc.,
5.25%, 12/01/31 | | | 6,300 | | | | 6,790,549 | |
| | | | | | | | |
| | | | | | | 10,519,718 | |
| Education — 1.0% | |
Rutgers — The State University of New Jersey, Refunding RB, Series L, 5.00%, 05/01/43 | | | 2,500 | | | | 2,736,438 | |
| | | | | | | | |
| Health — 2.6% | |
New Jersey Health Care Facilities Financing Authority, RB, Inspira Health Obligated Group, 4.00%, 07/01/47 | | | 7,332 | | | | 7,309,538 | |
| | | | | | | | |
| Transportation — 2.6% | |
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36(g) | | | 5,001 | | | | 5,226,116 | |
Port Authority of New York & New Jersey, Refunding ARB: | | | | | | | | |
194th Series, 5.25%, 10/15/55 | | | 1,455 | | | | 1,624,537 | |
Consolidated, 169th Series, AMT, 5.00%, 10/15/41 | | | 495 | | | | 525,421 | |
| | | | | | | | |
| | | | | | | 7,376,074 | |
| | | | | | | | |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 9.9%
(Cost — $27,233,166) | | | | 27,941,768 | |
| | | | | | | | |
Total Long-Term Investments — 102.8%
(Cost — $280,685,539) | | | | 291,220,143 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
| Short-Term Securities — 2.0% | |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.55%(h)(i) | | | 5,827,061 | | | $ | 5,827,644 | |
| | | | | | | | |
Total Short-Term Securities — 2.0%
(Cost — $5,827,549) | | | | 5,827,644 | |
| | | | | | | | |
| |
Total Investments — 104.8%
(Cost — $286,513,088) | | | | 297,047,787 | |
Other Assets Less Liabilities — 1.0% | | | | 2,900,870 | |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (5.8)% | | | | (16,513,746 | ) |
| | | | | | | | |
Net Assets — 100.0% | | | $ | 283,434,911 | |
| | | | | |
| (a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (b) | U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (c) | When-issued security. |
| (d) | Security is collateralized by municipal bonds or U.S. Treasury obligations. |
| (f) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (g) | All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreement, which expires on June 15, 2019, is $3,884,927. |
| (h) | Annualized7-day yield as of period end. |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 27 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock New Jersey Municipal Bond Fund |
| (i) | During the six months ended November 30, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliate | | Shares
Held at
05/31/18 | | | Net
Activity | | | Shares
Held at
11/30/18 | | | Value at
11/30/18 | | | Income | | | Net
Realized
Gain (Loss) (a) | | | Change in
Unrealized
Appreciation
(Depreciation) | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | 4,956,992 | | | | 870,069 | | | | 5,827,061 | | | $ | 5,827,644 | | | $ | 64,665 | | | $ | 397 | | | $ | (401 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes net capital gain distributions, if applicable. | |
For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sectorsub-classifications for reporting ease.
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| | | | | | | | | | | | | | | | |
| Description | | Number of
Contracts | | | Expiration
Date | | | Notional
Amount (000) | | | Value /
Unrealized
Appreciation
(Depreciation) | |
Short Contracts: | | | | | | | | | | | | | | | | |
10-Year U.S. Treasury Note | | | 138 | | | | 03/20/19 | | | $ | 16,485 | | | $ | (42,674 | ) |
Long U.S. Treasury Bond | | | 108 | | | | 03/20/19 | | | | 15,110 | | | | (67,423 | ) |
5-Year U.S. Treasury Note | | | 87 | | | | 03/29/19 | | | | 9,828 | | | | (11,707 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (121,804 | ) |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Commodity
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Foreign
Currency
Exchange
Contracts | | | Interest
Rate
Contracts | | | Other
Contracts | | | Total | |
Liabilities — Derivative Financial Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized depreciation(a) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 121,804 | | | $ | — | | | $ | 121,804 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes cumulative appreciation (depreciation) on futures contracts if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. | |
For the six months ended November 30, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Commodity
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Foreign
Currency
Exchange
Contracts | | | Interest
Rate
Contracts | | | Other
Contracts | | | Total | |
Net Realized Gain (Loss) from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 27,511 | | | $ | — | | | $ | 27,511 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 79,471 | | | $ | — | | | $ | 79,471 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | |
Average notional value of contracts — short | | $ | 25,816,695 | |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
| | |
| 28 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock New Jersey Municipal Bond Fund |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.
The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | | | | | | | | | | | | | | | | |
Investments: | | | | | | | | | | | | | | | | |
Long-Term Investments(a) | | $ | — | | | $ | 291,220,143 | | | $ | — | | | $ | 291,220,143 | |
Short-Term Securities | | | 5,827,644 | | | | — | | | | — | | | | 5,827,644 | |
| | | | | | | | | | | | | | | | |
| | $ | 5,827,644 | | | $ | 291,220,143 | | | $ | — | | | $ | 297,047,787 | |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments(b) | | | | | | | | | | | | | | | | |
Liabilities: | | | | | | | | | | | | | | | | |
Interest rate contracts | | $ | (121,804 | ) | | $ | — | | | $ | — | | | $ | (121,804 | ) |
| | | | | | | | | | | | | | | | |
| | (a) | See above Schedule of Investments for values in each sector, state or political subdivision. | |
| | (b) | Derivative financial instruments are futures contracts which are valued at the unrealized depreciation on the instrument. | |
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB TrustCertificates of $16,418,726 are categorized as Level 2 within the disclosure hierarchy.
During the six months ended November 30, 2018, there were no transfers between levels.
See notes to financial statements.
| | | | |
| SCHEDULES OF INVESTMENTS | | | 29 | |
| | |
Schedule of Investments (unaudited) November 30, 2018 | | BlackRock Pennsylvania Municipal Bond Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
Municipal Bonds — 86.7% | |
|
Pennsylvania — 86.4% | |
| Corporate — 3.5% | |
County of Delaware Pennsylvania IDA, Refunding RB, Covanta Project, 5.00%, 07/01/43 | | $ | 5,000 | | | $ | 5,021,600 | |
Pennsylvania Economic Development Financing Authority, RB: | | | | | | | | |
American Water Co. Project, 6.20%, 04/01/39 | | | 3,490 | | | | 3,533,974 | |
Aqua Pennsylvania, Inc. Project, Series A, 5.00%, 10/01/39 | | | 3,000 | | | | 3,062,730 | |
Shippingport Project, Series A, 3.75%, 12/01/40(a) | | | 3,915 | | | | 2,691,562 | |
Pennsylvania Economic Development Financing Authority, Refunding RB, AMT: | | | | | | | | |
Aqua Pennsylvania, Inc. Project, Series A, 5.00%, 12/01/34 | | | 1,540 | | | | 1,605,789 | |
National Gypsum Co., 5.50%, 11/01/44 | | | 1,355 | | | | 1,396,910 | |
| | | | | | | | |
| | | | | | | 17,312,565 | |
| County/City/Special District/School District — 16.0% | |
Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project, 5.00%, 05/01/42(b) | | | 330 | | | | 343,556 | |
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A: | | | | | | | | |
5.00%, 05/01/35 | | | 2,310 | | | | 2,385,075 | |
5.00%, 05/01/42 | | | 3,900 | | | | 3,994,224 | |
Altoona Area School District, GO: | | | | | | | | |
5.00%, 12/01/36 | | | 215 | | | | 234,986 | |
5.00%, 12/01/45 | | | 1,000 | | | | 1,078,800 | |
Altoona Area School District, GOL, Series A (AGM), 5.00%, 12/01/36(c) | | | 2,895 | | | | 3,163,338 | |
Bethlehem Area School District, GO, (BAM), Series A: | | | | | | | | |
5.00%, 08/01/34 | | | 2,390 | | | | 2,662,723 | |
5.00%, 08/01/35 | | | 1,790 | | | | 1,990,838 | |
Boyertown Area School District, GO: | | | | | | | | |
5.00%, 10/01/36 | | | 890 | | | | 969,646 | |
5.00%, 10/01/38 | | | 1,335 | | | | 1,449,690 | |
County of Allegheny Pennsylvania IDA, Refunding RB, Residential Resource, Inc. Project, 5.13%, 09/01/31 | | | 290 | | | | 290,183 | |
County of Chester IDA, Special Assessment Bonds, Woodlands At Greystone Project(b): | | | | | | | | |
5.00%, 03/01/38 | | | 525 | | | | 521,115 | |
5.13%, 03/01/48 | | | 1,050 | | | | 1,042,829 | |
County of Delaware Springfield School District, GO, 5.00%, 03/01/40 | | | 1,710 | | | | 1,918,124 | |
County of Lycoming Pennsylvania Water & Sewer Authority, RB, (AGM), 5.00%, 11/15/19(d) | | | 825 | | | | 848,884 | |
County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bonds, 7.00%, 07/01/32 | | | 1,795 | | | | 2,001,353 | |
County of Washington Redevelopment Authority, Refunding, Tax Allocation Bonds: | | | | | | | | |
4.00%, 07/01/23 | | | 850 | | | | 845,767 | |
5.00%, 07/01/28 | | | 600 | | | | 613,572 | |
County of York Pennsylvania, GO, Refunding, 5.00%, 09/01/20(d) | | | 2,500 | | | | 2,628,100 | |
Dallastown Area School District, GO, Refunding, 5.00%, 04/15/34 | | | 1,835 | | | | 2,048,355 | |
Fox Chapel Area School District, GO: | | | | | | | | |
5.00%, 02/01/39 | | | 4,100 | | | | 4,594,788 | |
5.00%, 02/01/42 | | | 6,365 | | | | 7,094,556 | |
School District of Philadelphia, Refunding, GOL, Series F,
5.00 %, 09/01/37 | | | 1,815 | | | | 1,968,658 | |
Springfield School District/Delaware County, GO: | | | | | | | | |
5.00%, 03/01/36 | | | 1,445 | | | | 1,637,994 | |
5.00%, 03/01/37 | | | 1,480 | | | | 1,672,637 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| County/City/Special District/School District (continued) | |
State Public School Building Authority, RB, Community College, Allegheny County Project (AGM), 5.00%, 07/15/34 | | $ | 5,070 | | | $ | 5,392,553 | |
State Public School Building Authority, Refunding RB, Harrisburg School District Project, Series A (AGC), 5.00%, 05/15/19(d) | | | 2,715 | | | | 2,753,852 | |
Philadelphia School District (AGM), 5.00%, 06/01/33 | | | 5,000 | | | | 5,511,600 | |
Township of Bristol Pennsylvania School District, GO: | | | | | | | | |
5.25%, 06/01/43 | | | 5,980 | | | | 6,478,672 | |
(BAM), 5.00%, 06/01/42 | | | 2,550 | | | | 2,776,109 | |
Township of Falls Pennsylvania, Refunding RB, Water & Sewer Authority, 5.00%, 12/01/37 | | | 2,115 | | | | 2,268,401 | |
Township of Lower Paxton Pennsylvania, GO, 5.00%, 04/01/42 | | | 630 | | | | 693,189 | |
West Shore School District Pennsylvania, GOL: | | | | | | | | |
5.00%, 11/15/43 | | | 2,265 | | | | 2,482,123 | |
5.00%, 11/15/48 | | | 1,975 | | | | 2,158,043 | |
| | | | | | | | |
| | | | | | | 78,514,333 | |
| Education — 21.2% | |
County of Adams Pennsylvania IDA, Refunding RB, Gettysburg College: | | | | | | | | |
5.00%, 08/15/24 | | | 580 | | | | 606,100 | |
5.00%, 08/15/25 | | | 765 | | | | 799,036 | |
5.00%, 08/15/26 | | | 760 | | | | 793,417 | |
County of Cumberland Pennsylvania Municipal Authority, RB, AICUP Financing Program, Dickinson College Project, 5.00%, 11/01/19(d) | | | 1,000 | | | | 1,027,310 | |
County of Delaware Pennsylvania Authority, RB, Villanova University: | | | | | | | | |
5.00%, 08/01/40 | | | 1,795 | | | | 1,995,322 | |
5.00%, 08/01/45 | | | 3,695 | | | | 4,095,649 | |
County of Delaware Pennsylvania Authority, Refunding RB: | | | | | | | | |
Cabrini University, 5.00%, 07/01/47 | | | 3,870 | | | | 4,037,068 | |
Haverford College, 5.00%, 11/15/35 | | | 1,100 | | | | 1,138,786 | |
Villanova University, 5.25%, 12/01/19(d) | | | 600 | | | | 619,290 | |
County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jeferson University, Series A: | | | | | | | | |
5.00%, 09/01/48 | | | 2,500 | | | | 2,715,500 | |
5.00%, 09/01/37 | | | 1,365 | | | | 1,509,963 | |
County of Northampton Pennsylvania General Purpose Authority, Refunding RB: | | | | | | | | |
Lafayette College, 4.00%, 11/01/38 | | | 6,000 | | | | 6,065,040 | |
Moravian College, 5.00%, 10/01/36 | | | 890 | | | | 953,564 | |
County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/36 | | | 5,000 | | | | 5,577,800 | |
Pennsylvania Higher Educational Facilities Authority, RB, Thomas Jefferson University, 5.00%, 03/01/20(d) | | | 11,000 | | | | 11,394,130 | |
Pennsylvania Higher Educational Facilities Authority,RB,Series AT-1, 4.00%, 06/15/34 | | | 5,790 | | | | 5,922,186 | |
Pennsylvania Higher Educational Facilities Authority, Refunding RB: | | | | | | | | |
Drexel University, 4.00%, 05/01/36 | | | 500 | | | | 500,290 | |
Drexel University, Series A, 5.25%, 05/01/21(d) | | | 6,720 | | | | 7,222,656 | |
Drexel University, Series A, 5.25%, 05/01/41 | | | 420 | | | | 444,763 | |
La Salle University, 5.00%, 05/01/37 | | | 1,595 | | | | 1,622,083 | |
La Salle University, 5.00%, 05/01/42 | | | 2,655 | | | | 2,686,807 | |
State System of Higher Education, Series AL, 5.00%, 06/15/35 | | | 1,425 | | | | 1,480,960 | |
Thomas Jefferson University, 5.00%, 09/01/45 | | | 3,000 | | | | 3,267,180 | |
University of Science in Philadelphia, 5.00%, 11/01/36 | | | 5,165 | | | | 5,569,110 | |
University Properties, Inc. Student Housing Project, Series A, 5.00%, 07/01/35 | | | 450 | | | | 463,419 | |
Widener University, Series A, 5.25%, 07/15/33 | | | 2,420 | | | | 2,570,282 | |
| | |
| 30 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Pennsylvania Municipal Bond Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Education (continued) | |
Widener University, Series A, 5.50%, 07/15/38 | | $ | 365 | | | $ | 387,210 | |
Pennsylvania State University, RB: | | | | | | | | |
5.00%, 03/01/40 | | | 10,000 | | | | 10,318,200 | |
5.00%, 09/01/48 | | | 2,615 | | | | 2,976,602 | |
Philadelphia Authority for Industrial Development, RB, University of Sciences, 5.00%, 11/01/42 | | | 3,525 | | | | 3,843,025 | |
Philadelphia Authority for Industrial Development, Refunding RB: | | | | | | | | |
1st Series, 5.00%, 04/01/45 | | | 3,330 | | | | 3,593,703 | |
La Salle University, 4.00%, 05/01/42 | | | 4,780 | | | | 4,295,356 | |
Township of East Hempfield Pennsylvania IDA, RB, Student Services, Inc., Student Housing Project at Millersville University of Pennsylvania: | | | | | | | | |
5.00%, 07/01/35 | | | 765 | | | | 794,078 | |
5.00%, 07/01/35 | | | 630 | | | | 656,838 | |
5.00%, 07/01/45 | | | 450 | | | | 463,504 | |
5.00%, 07/01/47 | | | 1,180 | | | | 1,215,931 | |
| | | | | | | | |
| | | | | | | 103,622,158 | |
| Health — 18.6% | |
City of Pottsville Pennsylvania Hospital Authority, Refunding RB, Lehigh Valley Health, Series B, 5.00%, 07/01/41 | | | 5,000 | | | | 5,416,250 | |
County of Allegheny Hospital Development Authority, Refunding RB, Allegheny Health Network Obligated Group Issue, Series A: | | | | | | | | |
4.00%, 04/01/37 | | | 4,300 | | | | 4,229,652 | |
5.00%, 04/01/47 | | | 1,950 | | | | 2,083,750 | |
County of Bucks Pennsylvania IDA, Refunding RB, Pennswood Village Project, 5.00%, 10/01/37 | | | 1,560 | | | | 1,667,765 | |
County of Centre Pennsylvania Hospital Authority, RB, Mount Nittany Medical Center Project, 7.00%, 11/15/21(d) | | | 4,110 | | | | 4,671,179 | |
County of Chester Health & Education Facilities Authority, Refunding RB: | | | | | | | | |
Main Line Health System, Series A, 5.00%, 10/01/52 | | | 3,595 | | | | 3,912,654 | |
Simpson Senior Services Project, 5.00%, 12/01/35 | | | 1,000 | | | | 999,950 | |
Simpson Senior Services Project, Series A, 5.25%, 12/01/45 | | | 1,500 | | | | 1,516,605 | |
County of Cumberland Pennsylvania Municipal Authority, Refunding RB: | | | | | | | | |
Asbury Pennsylvania Obligated Group,
5.25%, 01/01/41 | | | 2,540 | | | | 2,569,312 | |
Diakon Lutheran Social Ministries, 5.00%, 01/01/38 | | | 4,400 | | | | 4,608,516 | |
County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran, 6.38%, 01/01/39 | | | 400 | | | | 401,360 | |
County of Dauphin General Authority, Refunding RB, Pinnacle Health System Project, 6.00%, 06/01/19(d) | | | 2,385 | | | | 2,433,463 | |
County of Dauphin General Authority, Refunding RB, Pinnacle Health System Project, 6.00%, 06/01/29 | | | 2,615 | | | | 2,662,096 | |
County of Lancaster Pennsylvania Hospital Authority, Refunding RB: | | | | | | | | |
Brethren Village Project, 5.25%, 07/01/41 | | | 1,500 | | | | 1,552,260 | |
Masonic Villages of The Grand Lodge of Pennsylvania Project, 5.00%, 11/01/28 | | | 790 | | | | 867,934 | |
Masonic Villages of The Grand Lodge of Pennsylvania Project, 5.00%, 11/01/35 | | | 925 | | | | 990,841 | |
County of Montgomery Pennsylvania Higher Education & Health Authority, Refunding RB, Abington Memorial Hospital Obligated Group, Series A, 5.13%, 06/01/19(d) | | | 3,255 | | | | 3,305,648 | |
County of Montgomery Pennsylvania IDA, RB, Acts Retirement-Life Communities,Series A-1, 6.25%, 11/15/19(d) | | | 480 | | | | 499,502 | |
County of Montgomery Pennsylvania IDA, Refunding RB: | | | | | | | | |
Acts Retirement-Life Communities, 5.00%, 11/15/27 | | | 1,385 | | | | 1,466,660 | |
Acts Retirement-Life Communities, 5.00%, 11/15/28 | | | 895 | | | | 944,771 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Health (continued) | |
Whitemarsh Continuing Care Retirement Community, 5.25%, 01/01/40 | | $ | 5,000 | | | $ | 4,857,100 | |
County of Northampton Pennsylvania General Purpose Authority, Refunding RB: | | | | | | | | |
St. Luke’s University Health Network Project, 5.00%, 08/15/46 | | | 1,350 | | | | 1,454,449 | |
St. Lukes University Health Network, 5.00%, 08/15/48 | | | 1,875 | | | | 2,037,731 | |
DuBois Hospital Authority, Refunding RB, Penn Highlands Healthcare, 4.00%, 07/15/48 | | | 3,440 | | | | 3,222,317 | |
Geisinger Authority Pennsylvania, Refunding RB, Health System,Series A-2, 5.00%, 02/15/39 | | | 5,950 | | | | 6,569,157 | |
Lancaster IDA, Refunding RB, Garden Spot Village Project: | | | | | | | | |
5.38%, 05/01/28 | | | 730 | | | | 783,283 | |
5.75%, 05/01/35 | | | 1,285 | | | | 1,386,322 | |
Moon Industrial Development Authority, Refunding RB, 6.00%, 07/01/45 | | | 4,000 | | | | 4,171,560 | |
Pennsylvania Higher Educational Facilities Authority, Refunding RB, University of Pittsburgh Medical Center, Series E, 5.00%, 05/15/31 | | | 4,800 | | | | 4,985,280 | |
Philadelphia Authority for Industrial Development, Refunding RB, Children’s Hospital of Philadelphia, 4.00%, 07/01/35 | | | 2,450 | | | | 2,516,003 | |
Philadelphia Hospitals & Higher Education Facilities Authority, Refunding RB: | | | | | | | | |
Jefferson Health System of Chester Philadelphia, Series B, 5.00%, 05/15/20(d) | | | 6,000 | | | | 6,252,780 | |
Presbyterian Medical Center, 6.65%, 12/01/19(e) | | | 470 | | | | 481,313 | |
South Fork Municipal Authority, Refunding RB, Conemaugh Valley Memorial Hospital, Series B (AGC), 5.38%, 07/01/20(d) | | | 3,590 | | | | 3,768,854 | |
Southcentral Pennsylvania General Authority, Refunding RB, Wellspan Health Obligation Group, Series A, 6.00%, 06/01/29 | | | 1,780 | | | | 1,780,000 | |
| | | | | | | | |
| | | | | | | 91,066,317 | |
| Housing — 4.6% | |
Pennsylvania HFA, RB: | | | | | | | | |
Brinton Manor Apartments & Brinton Towers, M/F Housing, Series A, 4.25%, 10/01/35 | | | 600 | | | | 547,260 | |
Brinton Manor Apartments & Brinton Towers, M/F Housing, Series A, 4.50%, 10/01/40 | | | 600 | | | | 545,532 | |
S/F Housing Mortgage,Series 114-C, 3.65%, 10/01/37 | | | 3,720 | | | | 3,615,989 | |
S/F Housing Mortgage,Series 118-B, 4.05%, 10/01/40 | | | 3,000 | | | | 3,011,520 | |
S/F Housing Mortgage,Series 2015-117-B,
4.05%, 10/01/40 | | | 2,400 | | | | 2,408,544 | |
Pennsylvania Housing Finance Agency, RB, S/F Housing Mortgage,Series 123-B, 4.00%, 10/01/42 | | | 3,480 | | | | 3,474,536 | |
Philadelphia IDA, RB, Series A: | | | | | | | | |
3.50%, 12/01/36 | | | 1,210 | | | | 1,132,923 | |
4.00%, 12/01/46 | | | 5,740 | | | | 5,443,299 | |
4.00%, 12/01/51 | | | 2,260 | | | | 2,077,641 | |
| | | | | | | | |
| | | | | | | 22,257,244 | |
| State — 3.7% | |
Commonwealth Financing Authority, RB: | | | | | | | | |
Series B (AGC), 5.00%, 06/01/31 | | | 3,420 | | | | 3,463,878 | |
Tobacco Master Settlement Payment, 5.00%, 06/01/33 | | | 1,000 | | | | 1,110,870 | |
Tobacco Master Settlement Payment, 5.00%, 06/01/35 | | | 2,205 | | | | 2,427,110 | |
Pennsylvania Economic Development Financing Authority, RB, AMT, 5.00%, 06/30/42 | | | 10,500 | | | | 10,970,400 | |
| | | | | | | | |
| | | | | | | 17,972,258 | |
| Transportation — 13.3% | |
City of Philadelphia Pennsylvania, ARB, Series A, 5.00%, 06/15/40 | | | 14,000 | | | | 14,489,860 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 31 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Pennsylvania Municipal Bond Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Transportation (continued) | |
City of Philadelphia Pennsylvania, GO, Refunding, Series A, 5.00%, 08/01/37 | | $ | 2,140 | | | $ | 2,331,145 | |
City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB, AMT, Series B: | | | | | | | | |
5.00%, 07/01/37 | | | 1,800 | | | | 1,971,108 | |
5.00%, 07/01/47 | | | 2,545 | | | | 2,747,658 | |
Delaware River Joint Toll Bridge Commission, RB, Bridge System, 5.00%, 07/01/42 | | | 2,500 | | | | 2,789,400 | |
Delaware River Port Authority, RB, Series D, 5.00%, 01/01/20(d) | | | 7,500 | | | | 7,744,500 | |
Pennsylvania Economic Development Financing Authority, Refunding RB, Amtrak Project, Series A, AMT, 5.00%, 11/01/41 | | | 1,510 | | | | 1,593,714 | |
Pennsylvania Turnpike Commission, RB: | | | | | | | | |
CAB,Sub-Series A-3, 0.00%, 12/01/42(f) | | | 6,740 | | | | 2,317,279 | |
CAB,Sub-Series A-3 (AGM), 0.00%, 12/01/40(f) | | | 2,225 | | | | 856,225 | |
Series A, 5.25%, 12/01/44 | | | 1,500 | | | | 1,711,575 | |
Series A-1, 5.00%, 12/01/41 | | | 100 | | | | 108,302 | |
Sub-Series A, 5.13%, 12/01/20(d) | | | 1,285 | | | | 1,362,768 | |
Sub-Series B, 5.25%, 12/01/48 | | | 3,215 | | | | 3,599,546 | |
Sub-Series B-1, 5.00%, 06/01/42 | | | 3,705 | | | | 3,942,083 | |
Pennsylvania Turnpike Commission, Refunding RB: | | | | | | | | |
2nd Series, Turnpike Subordinate, 5.00%, 12/01/36 | | | 1,925 | | | | 2,076,729 | |
Sub-Series A-1, 5.25%, 12/01/45 | | | 4,730 | | | | 5,120,462 | |
Southeastern Pennsylvania Transportation Authority, RB, Capital Grant Receipts: | | | | | | | | |
5.00%, 06/01/21(d) | | | 7,295 | | | | 7,813,310 | |
Susquehanna Area Regional Airport Authority, Refunding RB, AMT, 5.00%, 01/01/38 | | | 2,200 | | | | 2,343,572 | |
| | | | | | | | |
| | | | | | | 64,919,236 | |
| Utilities — 5.5% | |
City of Philadelphia Pennsylvania Gas Works, RB: | | | | | | | | |
12th Series B (NPFGC), 7.00%, 05/15/20(e) | | | 390 | | | | 407,102 | |
9th Series, 5.25%, 08/01/20(d) | | | 1,280 | | | | 1,346,624 | |
9th Series, 5.25%, 08/01/40 | | | 2,020 | | | | 2,115,001 | |
City of Philadelphia Pennsylvania Gas Works, Refunding RB: | | | | | | | | |
5.00%, 08/01/30 | | | 700 | | | | 779,429 | |
5.00%, 08/01/31 | | | 900 | | | | 999,270 | |
5.00%, 08/01/32 | | | 1,200 | | | | 1,329,312 | |
5.00%, 08/01/33 | | | 600 | | | | 662,388 | |
5.00%, 08/01/34 | | | 1,050 | | | | 1,155,210 | |
City of Philadelphia Pennsylvania Water & Wastewater, RB: | | | | | | | | |
Series A, 5.25%, 10/01/52 | | | 1,190 | | | | 1,323,946 | |
Series C (AGM), 5.00%, 08/01/40 | | | 2,650 | | | | 2,751,177 | |
City of Philadelphia Pennsylvania Water & Wastewater Revenue, RB, Series A, 5.00%, 10/01/43 | | | 4,960 | | | | 5,486,851 | |
County of Allegheny Pennsylvania Sanitary Authority, RB, Sewer Improvement (BAM), 5.25%, 12/01/41 | | | 2,090 | | | | 2,316,723 | |
County of Allegheny Pennsylvania Sanitary Authority, Refunding RB, Sewer Improvement (AGM), 5.00%, 06/01/40 | | | 1,000 | | | | 1,046,490 | |
County of Delaware Pennsylvania Regional Water Quality Control Authority, RB, Sewer Improvements, 5.00%, 05/01/23(d) | | | 980 | | | | 1,095,973 | |
Pennsylvania Economic Development Financing Authority, RB, Philadelphia Biosolids Facility, 6.25%, 01/01/32 | | | 3,895 | | | | 4,012,318 | |
| | | | | | | | |
| | | | | | | 26,827,814 | |
| | | | | | | | |
Total Municipal Bonds in Pennsylvania | | | | 422,491,925 | |
| | | | | | | | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Puerto Rico — 0.3% | |
| Tobacco — 0.3% | |
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43 | | $ | 1,675 | | | $ | 1,678,115 | |
| | | | | | | | |
Total Municipal Bonds in Puerto Rico | | | | 1,678,115 | |
| | | | | | | | |
Total Municipal Bonds — 86.7%
(Cost — $418,948,734) | | | | 424,170,040 | |
| | | | | | | | |
Municipal Bonds Transferred to Tender Option Bond
Trusts(g) — 27.3% | |
|
Pennsylvania — 27.3% | |
| Education — 6.0% | |
County of Northampton General Purpose Authority, Refunding RB, Lafayette College, 5.00%, 11/01/47 | | | 6,100 | | | | 6,760,157 | |
Pennsylvania Higher Educational Facilities Authority, RB, University of Pennsylvania Health System, Series A, 5.75%, 08/15/21(d) | | | 9,280 | | | | 10,160,997 | |
Philadelphia Authority for Industrial Development, RB, Philadelphia College of osteopathic Medicine, 4.00%, 12/01/48(h) | | | 8,090 | | | | 7,881,925 | |
University of Pittsburgh Pennsylvania, RB, The Commonwealth System of Higher Education, Capital Project, Series B, 5.00%, 03/15/19(d) | | | 4,448 | | | | 4,488,687 | |
| | | | | | | | |
| | | | | | | 29,291,766 | |
| Health — 10.1% | |
County of Berks Pennsylvania Municipal Authority, Refunding RB, Reading Hospital & Medical Center Project, Series A3: | | | | | | | | |
5.50%, 11/01/19(d) | | | 5,000 | | | | 5,148,550 | |
5.50%, 11/01/31 | | | 5,000 | | | | 5,148,550 | |
Geisinger Authority Pennsylvania, RB, Health System: | | | | | | | | |
Series A, 5.13%, 06/01/19(d) | | | 7,460 | | | | 7,577,905 | |
Series A, 5.25%, 06/01/19(d) | | | 6,000 | | | | 6,098,490 | |
Series A-1, 5.13%, 06/01/41 | | | 12,570 | | | | 13,324,389 | |
Pennsylvania Economic Development Financing Authority, RB, University of Pittsburgh Medical Center, Series B, 4.00%, 03/15/40 | | | 2,000 | | | | 1,997,610 | |
Philadelphia Hospitals & Higher Education Facilities Authority, RB, The Children’s Hospital of Philadelphia Project, Series C, 5.00%, 07/01/41 | | | 9,380 | | | | 9,886,239 | |
| | | | | | | | |
| | | | | | | 49,181,733 | |
| Housing — 1.1% | |
Pennsylvania HFA, Refunding RB, S/F Mortgage, Series 114A, AMT, 3.70%, 10/01/42 | | | 5,610 | | | | 5,352,548 | |
| | | | | | | | |
| State — 7.8% | |
Commonwealth of Pennsylvania, GO, 1st Series: | | | | | | | | |
4.00%, 03/01/38(h) | | | 11,000 | | | | 11,092,675 | |
5.00%, 03/15/19(d) | | | 10,797 | | | | 10,894,781 | |
General Authority of Southcentral Pennsylvania, Refunding RB, Wellspan Health Obligated Group, Series A,
5.00%, 06/01/44 | | | 5,000 | | | | 5,331,775 | |
Pennsylvania Turnpike Commission, RB, Oil Franchise Tax, Remarketing, Series C (NPFGC), 5.00%, 12/01/18(d) | | | 11,000 | | | | 11,000,000 | |
| | | | | | | | |
| | | | | | | 38,319,231 | |
| Transportation — 1.2% | |
Pennsylvania Turnpike Commission, RB,Sub-Series A, 5.50%, 12/01/42 | | | 2,520 | | | | 2,849,053 | |
Pennsylvania Turnpike Commission, Refunding RB, SubSeries B-2 (AGM), 5.00%, 06/01/35 | | | 2,900 | | | | 3,179,212 | |
| | | | | | | | |
| | | | | | | 6,028,265 | |
| | |
| 32 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Pennsylvania Municipal Bond Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Utilities — 1.1% | |
County of Westmoreland Pennsylvania Municipal Authority, Refunding RB, (BAM), 5.00%, 08/15/42 | | $ | 5,007 | | | $ | 5,429,230 | |
| | | | | | | | |
Total Municipal Bonds Transferred to Tender Option Bond
Trusts —27.3%
(Cost — $131,432,295) | | | | 133,602,773 | |
| | | | | | | | |
Total Long-Term Investments — 114.0%
(Cost — $550,381,029) | | | | 557,772,813 | |
| | | | | | | | |
| | |
| | | Shares | | | | |
| Short-Term Securities — 0.7% | |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.55%(i)(j) | | | 3,555,744 | | | | 3,556,100 | |
| | | | | | | | |
Total Short-Term Securities — 0.7%
(Cost — $3,556,100) | | | | 3,556,100 | |
| | | | | | | | |
Total Investments — 114.7%
(Cost — $553,937,129) | | | | 561,328,913 | |
Liabilities in Excess of Other Assets — (0.1)% | | | | (388,559 | ) |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.6)% | | | | (71,644,785 | ) |
| | | | | | | | |
Net Assets — 100.0% | | | $ | 489,295,569 | |
| | | | | |
| (a) | Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end. |
| (b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (c) | When-issued security. |
| (d) | U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (e) | Security is collateralized by municipal bonds or U.S. Treasury obligations. |
| (g) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (h) | All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreement, which expire between March 1, 2026 to June 1, 2039, is $9,771,527. See Note 4 of the Notes to Financial Statements for details. |
| (i) | Annualized7-day yield as of period end. |
| (j) | During the period ended November 30, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliate | | Shares
Held at
05/31/18 | | | Net
Activity | | | Shares
Held at
11/30/18 | | | Value at
11/30/18 | | | Income | | | Net
Realized
Gain (Loss) (a) | | | Change in
Unrealized
Appreciation
(Depreciation) | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | 8,267,642 | | | | (4,711,898 | ) | | | 3,555,744 | | | $ | 3,556,100 | | | $ | 27,867 | | | $ | 1,204 | | | $ | (827 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes net capital gain distributions, if applicable. | |
For Fund compliance purposes, the Fund’s sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sectorsub-classifications for reporting ease.
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| | | | | | | | | | | | | | | | |
| Description | | Number of
Contracts | | | Expiration
Date | | | Notional
Amount (000) | | | Value
Unrealized
Appreciation
(Depreciation) | |
Short Contracts: | | | | | | | | | | | | | | | | |
10-Year U.S. Treasury Note | | | 206 | | | | 03/20/19 | | | $ | 24,607 | | | $ | (63,321 | ) |
Long U.S. Treasury Bond | | | 222 | | | | 03/20/19 | | | | 31,059 | | | | (138,517 | ) |
5-Year U.S. Treasury Note | | | 83 | | | | 03/29/19 | | | | 9,376 | | | | (8,784 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (210,622 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 33 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Pennsylvania Municipal Bond Fund |
Derivative Financial Instruments Outstanding as of Period End
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Commodity
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Foreign
Currency
Exchange
Contracts | | | Interest
Rate
Contracts | | | Other
Contracts | | | Total | |
Liabilities — Derivative Financial Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized depreciation(a) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 210,622 | | | $ | — | | | $ | 210,622 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes cumulative appreciation (depreciation) on futures contracts if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. | |
For the six months ended November 30, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Commodity
Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Foreign
Currency
Exchange
Contracts | | | Interest
Rate
Contracts | | | Other
Contracts | | | Total | |
| Net Realized Gain (Loss) from: | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 237,202 | | | $ | — | | | $ | 237,202 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 146,992 | | | $ | — | | | $ | 146,992 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | |
Average notional value of contracts — short | | $ | 44,397,660 | |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.
The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | |
Investments: | |
Long-Term Investments(a) | | $ | — | | | $ | 557,772,813 | | | $ | — | | | $ | 557,772,813 | |
Short-Term Securities | | | 3,556,100 | | | | — | | | | — | | | | 3,556,100 | |
| | | | | | | | | | | | | | | | |
| | $ | 3,556,100 | | | $ | 557,772,813 | | | $ | — | | | $ | 561,328,913 | |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments(b) | |
Liabilities: | |
Interest rate contracts | | $ | (210,622 | ) | | $ | — | | | $ | — | | | $ | (210,622 | ) |
| | | | | | | | | | | | | | | | |
| | (a) | See above Schedule of Investments for values in each sector. | |
| | (b) | Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument. | |
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $71,297,070 are categorized as Level 2 within the disclosure hierarchy.
During the six months ended November 30, 2018, there were no transfers between levels.
See notes to financial statements.
| | |
| 34 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
Corporate Bonds — 1.7% | |
| Auto Components — 0.3% | |
General Motors Co., 5.95%, 04/01/49 | | $ | 23,739 | | | $ | 21,448,116 | |
| | | | | | | | |
| Banks — 0.1% | |
Capital One Financial Corp., 3.80%, 01/31/28 | | | 13,401 | | | | 12,312,276 | |
| | | | | | | | |
| Containers & Packaging — 0.3% | |
Westrock Co., 4.90%, 03/15/29(a) | | | 25,075 | | | | 25,196,768 | |
| | | | | | | | |
| Diversified Financial Services — 0.0% | |
Western Group Housing LP, 6.75%, 03/15/57(a) | | | 2,480 | | | | 2,940,681 | |
| | | | | | | | |
| Education — 0.1% | |
Boston University, Series CC, 4.06%, 10/01/48 | | | 1,420 | | | | 1,384,403 | |
George Washington University, Series 2018, 4.13%, 09/15/48 | | | 1,635 | | | | 1,562,535 | |
Pepperdine University, 3.95%, 12/01/57 | | | 9,835 | | | | 9,310,827 | |
Wesleyan University, 4.78%, 07/01/16 | | | 354 | | | | 338,617 | |
| | | | | | | | |
| | | | | | | 12,596,382 | |
| Health Care Providers & Services — 0.8% | |
AHS Hospital Corp., 5.02%, 07/01/45 | | | 5,310 | | | | 5,643,087 | |
Kaiser Foundation Hospitals, 4.15%, 05/01/47 | | | 705 | | | | 670,966 | |
Montefiore Obligated Group,Series 18-C, 5.25%, 11/01/48 | | | 3,551 | | | | 3,418,911 | |
Novant Health, Inc., 5.85%, 11/01/19 | | | 5,055 | | | | 5,169,929 | |
PeaceHealth Obligated Group, 4.79%, 11/15/48 | | | 12,586 | | | | 12,664,263 | |
Providence St Joseph Health Obligated Group, 3.93%, 10/01/48 | | | 6,446 | | | | 5,817,791 | |
SSM Health Care Corp., Series 2018, 3.69%, 06/01/23 | | | 9,811 | | | | 9,765,383 | |
Sutter Health, 3.70%, 08/15/28 | | | 5,417 | | | | 5,306,863 | |
Toledo Hospital, 5.75%, 11/15/38 | | | 24,735 | | | | 25,905,428 | |
| | | | | | | | |
| | | | | | | 74,362,621 | |
| Pharmaceuticals — 0.1% | |
AbbVie, Inc., 4.88%, 11/14/48 | | | 10,329 | | | | 9,406,097 | |
| | | | | | | | |
Total Corporate Bonds — 1.7%
(Cost — $164,556,980) | | | | 158,262,941 | |
| | | | | | | | |
|
Municipal Bonds — 92.6% | |
| Alabama — 0.5% | |
Alabama Special Care Facilities Financing Authority-Birmingham, RB, Methodist Home For The Aging: | | | | | | | | |
5.75%, 06/01/35 | | | 1,200 | | | | 1,287,500 | |
5.75%, 06/01/45 | | | 2,145 | | | | 2,285,841 | |
6.00%, 06/01/50 | | | 2,700 | | | | 2,910,654 | |
Auburn University, RB, Series A: | | | | | | | | |
5.00%, 06/01/43 | | | 5,000 | | | | 5,623,500 | |
5.00%, 06/01/48 | | | 10,000 | | | | 11,184,600 | |
County of Jefferson Alabama Sewer, Refunding RB,Sub-Lien, Series D: | | | | | | | | |
7.00%, 10/01/51 | | | 3,000 | | | | 3,559,260 | |
6.50%, 10/01/53 | | | 15,110 | | | | 17,581,089 | |
UAB Medicine Finance Authority, Refunding RB, 5.00%, 09/01/30 | | | 5,000 | | | | 5,657,150 | |
| | | | | | | | |
| | | | 50,089,594 | |
| Alaska — 0.5% | |
Alaska Housing Finance Corp., RB, S/F, Series A: | | | | | | | | |
3.70%, 12/01/38 | | | 4,310 | | | | 4,238,152 | |
3.75%, 12/01/40 | | | 2,655 | | | | 2,600,387 | |
Alaska Municipal Bond Bank Authority, RB, Series Three, 5.00%, 08/01/48 | | | 10,000 | | | | 10,743,200 | |
City of Valdez Alaska, Refunding RB, BP Pipelines Project, Series B, 5.00%, 01/01/21 | | | 5,000 | | | | 5,271,950 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Alaska (continued) | |
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A: | | | | | | | | |
4.63%, 06/01/23(b) | | $ | 640 | | | $ | 640,058 | |
5.00%, 06/01/46 | | | 8,000 | | | | 7,511,760 | |
State of Alaska International Airports System, Refunding RB, Series B: | | | | | | | | |
5.00%, 10/01/32 | | | 5,000 | | | | 5,612,800 | |
5.00%, 10/01/34 | | | 5,000 | | | | 5,583,350 | |
| | | | | | | | |
| | | | 42,201,657 | |
| Arizona — 2.0% | |
Arizona Health Facilities Authority, Refunding RB: | | | | | | | | |
5.00%, 12/01/39 | | | 5,000 | | | | 5,382,750 | |
Banner Health, Series B, 2.42%, 01/01/37(c) | | | 20,000 | | | | 19,016,800 | |
Phoenix Children’s Hospital, Series A, 5.00%, 02/01/42 | | | 5,000 | | | | 5,250,150 | |
Arizona State University, RB, Green Bonds, Series B, 5.00%, 07/01/42 | | | 5,000 | | | | 5,553,550 | |
City of Mesa Arizona Utility System Revenue, RB, 5.00%, 07/01/42(b) | | | 5,000 | | | | 5,660,500 | |
City of Phoenix Arizona IDA, RB, Series A(a): | | | | | | | | |
Legacy Traditional Schools Project, 6.50%, 07/01/34 | | | 965 | | | | 1,045,838 | |
Legacy Traditional Schools Projects, 6.75%, 07/01/44 | | | 1,690 | | | | 1,831,419 | |
City of Phoenix Arizona IDA, Refunding RB(a): | | | | | | | | |
Basis Schools, Inc. Projects, 5.00%, 07/01/35 | | | 2,795 | | | | 2,822,950 | |
Basis Schools, Inc. Projects, 5.00%, 07/01/45 | | | 6,155 | | | | 6,083,356 | |
Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/35 | | | 1,775 | | | | 1,792,750 | |
Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/46 | | | 1,950 | | | | 1,924,065 | |
Legacy Traditional School Projects, 5.00%, 07/01/35 | | | 2,205 | | | | 2,227,050 | |
Legacy Traditional School Projects, 5.00%, 07/01/45 | | | 1,495 | | | | 1,494,925 | |
City of Phoenix Civic Improvement Corp., Refunding RB: | | | | | | | | |
Junior Lien Airport, Series D, 5.00%, 07/01/37 | | | 10,000 | | | | 11,239,800 | |
Series B, 5.00%, 07/01/38 | | | 5,000 | | | | 5,628,850 | |
City of Phoenix Industrial Development Authority, RB, Legacy Traditional Schools Projects, Series A(a): | | | | | | | | |
5.00%, 07/01/36 | | | 7,315 | | | | 7,454,205 | |
5.00%, 07/01/41 | | | 10,075 | | | | 10,134,644 | |
McAllister Academic Village LLC, Refunding RB, Arizona State University: | | | | | | | | |
5.00%, 07/01/30 | | | 5,000 | | | | 5,729,950 | |
5.00%, 07/01/32 | | | 5,000 | | | | 5,698,050 | |
5.00%, 07/01/34 | | | 5,000 | | | | 5,654,050 | |
Salt River Project Agricultural Improvement & Power District, Refunding RB: | | | | | | | | |
Salt River Project Electric System, 5.00%, 01/01/36 | | | 5,000 | | | | 5,765,450 | |
Salt River Project Electric System, Series A, 5.00%, 01/01/39 | | | 5,000 | | | | 5,711,200 | |
Series A, 5.00%, 12/01/45 | | | 50,000 | | | | 55,302,500 | |
| | | | | | | | |
| | | | 178,404,802 | |
| California — 6.7% | |
Bay Area Toll Authority, RB, Build America Bonds, San Francisco Toll Bridge, SeriesS-1, 7.04%, 04/01/50 | | | 5,825 | | | | 8,227,463 | |
California County Tobacco Securitization Agency, RB, Asset-Backed, Series A: | | | | | | | | |
Alameda County Securitization Corp., 6.00%, 06/01/42 | | | 885 | | | | 892,717 | |
Los Angeles County Securitization Corp., 5.25%, 06/01/21 | | | 2,650 | | | | 2,653,100 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 35 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| California (continued) | |
California Educational Facilities Authority, RB, Chapman University, Series A: | | | | | | | | |
2.98%, 04/01/25 | | $ | 1,655 | | | $ | 1,587,277 | |
3.08%, 04/01/26 | | | 2,400 | | | | 2,292,216 | |
3.18%, 04/01/27 | | | 2,875 | | | | 2,736,914 | |
California Educational Facilities Authority, Refunding RB, Series A, 5.00%, 12/01/44 | | | 2,000 | | | | 2,224,360 | |
California Health Facilities Financing Authority, RB, Sutter Health, Series A, 5.00%, 11/15/48 | | | 10,335 | | | | 11,317,342 | |
California Health Facilities Financing Authority, Childrens Hospital, RB,El Camino Hospital: | | | | | | | | |
5.00%, 02/01/36 | | | 5,000 | | | | 5,558,400 | |
5.00%, 02/01/37 | | | 5,000 | | | | 5,545,900 | |
California Health Facilities Financing Authority, Refunding RB: | | | | | | | | |
Children’s Hospital Los Angeles, 4.50%, 07/01/20(d) | | | 8,215 | | | | 8,418,896 | |
Series A, 5.00%, 08/15/42 | | | 5,000 | | | | 5,442,250 | |
Series A, 5.00%, 08/15/47 | | | 10,000 | | | | 10,812,600 | |
California Infrastructure & Economic Development Bank, RB, UCSF 2130 Third Street, 5.00%, 05/15/52 | | | 25,000 | | | | 27,943,000 | |
California Municipal Finance Authority, ARB, Senior Lien-Linxs APM Project, AMT, 5.00%, 12/31/47 | | | 17,540 | | | | 18,746,226 | |
California Municipal Finance Authority, RB: | | | | | | | | |
Caritas Affordable Housing Inc., 5.88%, 08/15/49 | | | 1,000 | | | | 1,062,130 | |
Sycamore Academy Project, 5.38%, 07/01/34(a) | | | 1,000 | | | | 1,001,150 | |
Sycamore Academy Project, 5.63%, 07/01/44(a) | | | 2,760 | | | | 2,765,741 | |
Urban Discovery Academy Project, 6.00%, 08/01/44(a) | | | 330 | | | | 330,594 | |
Urban Discovery Academy Project, 6.13%, 08/01/49(a) | | | 285 | | | | 286,525 | |
Vista Charter Middle School, 6.00%, 07/01/44 | | | 1,960 | | | | 1,997,946 | |
California Municipal Finance Authority, Refunding RB, Eisenhower Medical Center, Series A, 5.00%, 07/01/47 | | | 10,000 | | | | 10,766,100 | |
California Pollution Control Financing Authority, RB, Poseidon Resources (Channel Side) LP Desalination Project, AMT(a): | | | | | | | | |
5.00%, 07/01/30 | | | 4,000 | | | | 4,175,240 | |
5.00%, 07/01/37 | | | 25,000 | | | | 25,807,500 | |
5.00%, 11/21/45 | | | 25,000 | | | | 25,673,500 | |
California Pollution Control Financing Authority, Refunding RB, Waste Management, Inc., SeriesA-1, AMT, 3.38%, 07/01/25 | | | 10,000 | | | | 10,002,700 | |
California School Finance Authority, RB, Alta Public Schools Project, Series A(a): | | | | | | | | |
6.50%, 11/01/34 | | | 1,015 | | | | 1,045,755 | |
6.75%, 11/01/45 | | | 1,395 | | | | 1,444,899 | |
California State Public Works Board, Refunding ARB, Various Capital Projects, Series A, 5.00%, 11/01/26 | | | 7,830 | | | | 9,209,333 | |
California Statewide Communities Development Authority, RB: | | | | | | | | |
5.00%, 02/01/45 | | | 10,000 | | | | 10,642,600 | |
Kaiser Permanente, Series A, 5.00%, 04/01/42 | | | 5,000 | | | | 5,310,200 | |
Loma Linda University Medical Center, Series A, 5.00%, 12/01/41(a) | | | 4,205 | | | | 4,317,484 | |
Loma Linda University Medical Center, Series A, 5.00%, 12/01/46(a) | | | 4,665 | | | | 4,772,015 | |
Loma Linda University Medical Center, Series A, 5.25%, 12/01/56(a) | | | 7,175 | | | | 7,436,313 | |
University of California, Irvine East Campus Apartment, Series A, 5.00%, 05/15/47 | | | 5,000 | | | | 5,407,450 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| California (continued) | |
California Statewide Communities Development Authority, Refunding RB, Series A, 5.25%, 11/01/44(a) | | $ | 1,250 | | | $ | 1,294,837 | |
California Statewide Financing Authority, RB, Asset-Backed, Tobacco Settlement: | | | | | | | | |
Series A, 6.00%, 05/01/37 | | | 585 | | | | 585,094 | |
Series A, 6.00%, 05/01/43 | | | 3,800 | | | | 3,751,816 | |
Series B, 6.00%, 05/01/37 | | | 265 | | | | 265,042 | |
Series B, 6.00%, 05/01/43 | | | 7,425 | | | | 7,330,851 | |
Chabot-Las Positas Community College District, GO, Refunding, 2016 Crossover, 5.00%, 08/01/29 | | | 5,000 | | | | 5,582,150 | |
City & County of San Francisco California Airports Commission, Refunding ARB, AMT: | | | | | | | | |
5.25%, 05/01/48 | | | 10,000 | | | | 11,273,100 | |
San Francisco International Airport, Series B, 5.00%, 05/01/46 | | | 25,000 | | | | 27,182,750 | |
San Francisco International Airport, Series C, 5.00%, 05/01/46 | | | 5,000 | | | | 5,518,500 | |
City & County of San Francisco California Redevelopment Agency, Tax Allocation Bonds, Mission Bay South Redevelopment Project, Series D(a): | | | | | | | | |
3.00%, 08/01/21 | | | 3,825 | | | | 3,839,497 | |
0.00%, 08/01/26(e) | | | 1,170 | | | | 813,630 | |
0.00%, 08/01/43(e) | | | 20,000 | | | | 5,586,000 | |
City of Irvine California, Community Facilities DistrictNo. 2013-3, Great Park Improvement Area No. 1, 5.00%, 09/01/49 | | | 1,500 | | | | 1,576,185 | |
City of Los Angeles California Department of Water & Power, RB, Build America Bonds, 6.60%, 07/01/50 | | | 3,600 | | | | 4,935,276 | |
City of Los Angeles Department of Airports, ARB, Los Angeles International Airports, Series A, AMT, 5.25%, 05/15/48 | | | 5,000 | | | | 5,621,500 | |
City of Los Angeles Department of Airports, RB, AMT,Sub-Series A: | | | | | | | | |
5.00%, 05/15/28 | | | 5,000 | | | | 5,717,700 | |
5.00%, 05/15/32 | | | 5,000 | | | | 5,615,400 | |
City of Los Angeles Department of Airports, Refunding ARB, Los Angeles International Airport, AMT, 5.00%, 05/15/26 | | | 9,535 | | | | 11,051,256 | |
City of San Francisco California Public Utilities Commission Wastewater Revenue, RB, Green Bond, Series A: | | | | | | | | |
5.00%, 10/01/31 | | | 5,000 | | | | 5,739,100 | |
5.00%, 10/01/32 | | | 5,000 | | | | 5,725,650 | |
City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A, AMT, 5.00%, 03/01/47 | | | 10,000 | | | | 10,941,100 | |
City of San Jose California Airport Revenue, Refunding ARB, AMT, Series A, 5.00%, 03/01/23 | | | 5,000 | | | | 5,490,300 | |
County of Los Angeles California Tobacco Securitization Agency, RB, Asset-Backed, Los Angeles County Securitization Corp.: | | | | | | | | |
5.70%, 06/01/46 | | | 21,800 | | | | 21,805,014 | |
5.60%, 06/01/36 | | | 8,150 | | | | 8,153,912 | |
County of Tulare California, RB, 4.31%, 06/01/33 | | | 500 | | | | 491,100 | |
Golden State Tobacco Securitization Corp., Refunding RB: | | | | | | | | |
Asset-Backed, Series A (AGM), 5.00%, 06/01/40 | | | 5,000 | | | | 5,555,000 | |
SeriesA-1, 5.00%, 06/01/27 | | | 5,000 | | | | 5,531,350 | |
SeriesA-1, 5.00%, 06/01/25 | | | 5,000 | | | | 5,489,950 | |
SeriesA-1, 5.00%, 06/01/28 | | | 5,000 | | | | 5,492,900 | |
SeriesA-1, 5.00%, 06/01/29 | | | 5,000 | | | | 5,466,150 | |
SeriesA-1, 5.00%, 06/01/47 | | | 4,960 | | | | 4,756,541 | |
SeriesA-1, 5.25%, 06/01/47 | | | 16,670 | | | | 16,534,139 | |
SeriesA-2, 5.00%, 06/01/47 | | | 12,535 | | | | 11,998,126 | |
| | |
| 36 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| California (continued) | |
Irvine Ranch Water District, Special Assessment Bonds, Build America Bonds, Series B, 6.62%, 05/01/40 | | $ | 8,900 | | | $ | 11,424,396 | |
Natomas Unified School District, GO, Refunding, (BAM), 5.00%, 08/01/32 | | | 5,000 | | | | 5,692,000 | |
Northern California Gas Authority No. 1, RB, Series B, 2.33%, 07/01/27 | | | 5,000 | | | | 4,846,350 | |
Port of Oakland, Refunding RB, AMT, Series O, 5.00%, 05/01/23 | | | 5,000 | | | | 5,311,600 | |
Sacramento County Sanitation Districts Financing Authority, Refunding RB, Series B (NPFGC), 2.37%, 12/01/35 | | | 50,000 | | | | 48,253,000 | |
Sacramento County Water Financing Authority, RB, Series B (NPFGC), 2.39%, 06/01/34 | | | 10,000 | | | | 9,772,700 | |
San Diego County Water Authority Financing Corp., Refunding RB, Green Bonds, Series A: | | | | | | | | |
5.00%, 05/01/32 | | | 5,000 | | | | 5,770,450 | |
5.00%, 05/01/33 | | | 5,000 | | | | 5,753,050 | |
State of California, GO, Build America Bonds, Various Purpose, 7.60%, 11/01/40 | | | 7,125 | | | | 10,223,662 | |
State of California Public Works Board, LRB, Various Capital Projects, Series A, 5.00%, 04/01/37 | | | 5,000 | | | | 5,369,250 | |
Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, SeniorSeries A-1: | | | | | | | | |
5.00%, 06/01/37 | | | 12,735 | | | | 12,709,148 | |
5.13%, 06/01/46 | | | 7,440 | | | | 7,419,763 | |
University of California, Refunding RB, General, Series AI, 5.00%, 05/15/38 | | | 5,000 | | | | 5,469,850 | |
| | | | | | | | |
| | | | 612,579,971 | |
| Colorado — 1.6% | |
Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47(a) | | | 5,125 | | | | 5,101,476 | |
City & County of Denver Colorado, RB,Series A-1, 5.00%, 08/01/48 | | | 10,000 | | | | 11,003,700 | |
City & County of Denver Colorado Airport System Revenue, Refunding ARB, AMT,Sub-System, Series A, 5.25%, 12/01/48 | | | 25,000 | | | | 27,966,750 | |
City of Aurora Colorado Water Revenue, Refunding RB, Green Bond: | | | | | | | | |
5.00%, 08/01/41 | | | 25,000 | | | | 27,845,000 | |
5.00%, 08/01/46 | | | 5,000 | | | | 5,557,150 | |
City of Colorado Springs Colorado Utilities System Revenue, Refunding RB,Series A-2, 5.00%, 11/15/47 | | | 5,000 | | | | 5,599,950 | |
City of Lakewood Colorado Plaza Metropolitan District No. 1, Refunding, Tax Allocation Bonds, 4.00%, 12/01/23(a) | | | 1,000 | | | | 1,018,100 | |
Colorado Educational & Cultural Facilities Authority, RB: | | | | | | | | |
Charter Littleton Preparatory School, 5.00%, 12/01/22 | | | 105 | | | | 108,213 | |
Loveland Classical Schools, 5.00%, 07/01/46(a) | | | 2,000 | | | | 1,950,260 | |
Colorado Educational & Cultural Facilities Authority, Refunding RB: | | | | | | | | |
5.00%, 11/01/44 | | | 885 | | | | 835,882 | |
5.13%, 11/01/49 | | | 765 | | | | 727,997 | |
Colorado Health Facilities Authority, RB, The Evangelical Lutheran Good Samaritan Society Project, Series R: | | | | | | | | |
5.00%, 06/01/20 | | | 1,000 | | | | 1,035,490 | |
5.00%, 06/01/22 | | | 1,000 | | | | 1,072,010 | |
5.00%, 06/01/24 | | | 1,235 | | | | 1,355,919 | |
5.00%, 06/01/26 | | | 1,000 | | | | 1,111,320 | |
5.00%, 06/01/28 | | | 1,500 | | | | 1,661,730 | |
5.00%, 06/01/29 | | | 1,315 | | | | 1,448,670 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Colorado (continued) | |
Colorado Health Facilities Authority, Refunding RB: | | | | | | | | |
Catholic Health Initiatives, Series A, 5.00%, 02/01/21 | | $ | 5,000 | | | $ | 5,258,400 | |
Catholic Health Initiatives, Series A, 5.25%, 02/01/31 | | | 5,000 | | | | 5,237,700 | |
NCMC, Inc. Project, 5.00%, 05/15/28 | | | 5,000 | | | | 5,671,050 | |
Colorado High Performance Transportation Enterprise, RB,C-470 Express Lanes, 5.00%, 12/31/56 | | | 10,000 | | | | 10,484,800 | |
Colorado Housing & Finance Authority, RB, S/F, Mortgage Class I Bond (Ginnie Mae): | | | | | | | | |
3.60%, 11/01/38 | | | 5,000 | | | | 4,833,900 | |
3.70%, 11/01/42 | | | 5,000 | | | | 4,800,150 | |
Public Authority for Colorado Energy, RB, 6.25%, 11/15/28 | | | 5,000 | | | | 6,151,450 | |
Rampart Range Metropolitan District No. 1, Refunding RB, (AGM), 5.00%, 12/01/47 | | | 5,000 | | | | 5,480,800 | |
| | | | | | | | |
| | | | 143,317,867 | |
| Connecticut — 0.8% | |
Connecticut Housing Finance Authority, RB: | | | | | | | | |
M/F,Series B-1, 4.10%, 11/15/39 | | | 2,250 | | | | 2,286,225 | |
M/F,Series B-1, 4.15%, 11/15/44 | | | 5,420 | | | | 5,492,520 | |
S/F, Series A, 3.85%, 05/15/45 | | | 5,800 | | | | 5,621,824 | |
Connecticut Housing Finance Authority, Refunding RB: | | | | | | | | |
M/F, SubSeries F-1, 3.90%, 11/15/44 | | | 1,500 | | | | 1,487,865 | |
M/F,Sub-Series C-1, 3.63%, 11/15/38 | | | 9,775 | | | | 9,444,116 | |
M/F,Sub-Series F-1, 4.00%, 11/15/49 | | | 2,000 | | | | 1,999,900 | |
M/F,Sub-Series F-1, 4.05%, 11/15/54 | | | 2,000 | | | | 2,004,820 | |
S/F Housing,Sub-Series B-1, 4.00%, 05/15/45 | | | 5,000 | | | | 4,999,800 | |
SubSeries C-1,M/F, 3.95%, 05/15/38 | | | 2,225 | | | | 2,257,819 | |
Connecticut State Health & Educational Facility Authority, RB, Hartford Healthcare Obligated Group, Series F, 5.00%, 07/01/45 | | | 5,000 | | | | 5,271,450 | |
Mohegan Tribal Finance Authority, RB, 7.00%, 02/01/45(a) | | | 8,655 | | | | 8,762,409 | |
Mohegan Tribe of Indians of Connecticut, RB, Series A, 6.75%, 02/01/45(a) | | | 5,552 | | | | 5,899,735 | |
Mohegan Tribe of Indians of Connecticut, Refunding RB, Public Improvement, Priority Distribution, Series C(a): | | | | | | | | |
5.75%, 02/01/24 | | | 3,320 | | | | 3,477,766 | |
5.75%, 02/01/25 | | | 3,755 | | | | 3,947,068 | |
6.25%, 02/01/30 | | | 4,930 | | | | 5,342,838 | |
| | | | | | | | |
| | | | 68,296,155 | |
| Delaware — 0.1% | |
County of New Castle Delaware, GO, Refunding, Go, Refunding, 5.00%, 10/01/45 | | | 10,000 | | | | 11,140,700 | |
| | | | | | | | |
| District of Columbia — 2.0% | |
District of Columbia, GO: | | | | | | | | |
Series A, 5.00%, 06/01/41 | | | 10,000 | | | | 11,092,200 | |
Series D, 5.00%, 06/01/41 | | | 5,000 | | | | 5,577,950 | |
Series D, 5.00%, 06/01/42 | | | 10,000 | | | | 11,202,800 | |
District of Columbia, Refunding RB, Georgetown University Issue, 5.00%, 04/01/42 | | | 5,000 | | | | 5,503,350 | |
District of Columbia Water & Sewer Authority, RB, Series A: | | | | | | | | |
Green Bond, 5.00%, 10/01/49 | | | 25,000 | | | | 28,002,750 | |
Subordinate Lien, 5.00%, 10/01/48 | | | 10,000 | | | | 10,891,800 | |
District of Columbia Water & Sewer Authority, Refunding RB: | | | | | | | | |
Series B, 5.00%, 10/01/49 | | | 25,000 | | | | 28,002,750 | |
Subordinate Lien, Series C, 5.00%, 10/01/39 | | | 10,000 | | | | 11,140,400 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 37 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| District of Columbia (continued) | |
Metropolitan Washington Airports Authority, Refunding ARB, AMT: | | | | | | | | |
5.00%, 10/01/24 | | $ | 5,000 | | | $ | 5,652,350 | |
5.00%, 10/01/27 | | | 5,000 | | | | 5,818,100 | |
Series A, 5.00%, 10/01/24 | | | 5,000 | | | | 5,652,350 | |
Series A, 5.00%, 10/01/30 | | | 5,000 | | | | 5,482,100 | |
Series A, 5.00%, 10/01/48 | | | 10,000 | | | | 11,003,800 | |
Dulles Toll Road Revenue, Dulles Metrorail Project, Series A, 5.00%, 10/01/53 | | | 10,000 | | | | 10,298,500 | |
Metropolitan Washington Airports Authority, Refunding RB, Series A, AMT, 5.00%, 10/01/32 | | | 10,000 | | | | 11,210,700 | |
Metropolitan Washington Airports Authority Dulles Toll Road Revenue, ARB, Dulles Toll Road Revenue, Build America Bonds, 7.46%, 10/01/46 | | | 4,015 | | | | 5,655,730 | |
Washington Metropolitan Area Transit Authority, RB, Series B, 5.00%, 07/01/35 | | | 5,000 | | | | 5,690,250 | |
| | | | | | | | |
| | | | 177,877,880 | |
| Florida — 3.5% | |
Babcock Ranch Community Independent Special District, Special Assessment Bonds: | | | | | | | | |
4.75%, 11/01/26 | | | 400 | | | | 404,680 | |
5.00%, 11/01/31 | | | 500 | | | | 500,265 | |
5.25%, 11/01/46 | | | 3,490 | | | | 3,459,532 | |
Capital Trust Agency, Inc., RB: | | | | | | | | |
1st Mortgage, Silver Creek St. Augustine Project, Series A, 8.00%, 01/01/34(g)(h) | | | 550 | | | | 385,000 | |
1st Mortgage, Silver Creek St. Augustine Project, Series A, 8.25%, 01/01/44(g)(h) | | | 940 | | | | 658,000 | |
1st Mortgage, Silver Creek St. Augustine Project, Series A, 8.25%, 01/01/49(g)(h) | | | 3,010 | | | | 2,107,000 | |
Silver Creek St. Augustine Project, Series A, 5.75%, 01/01/50(g)(h) | | | 395 | | | | 375,250 | |
Silver Creek St. Augustine Project, Series B, 7.00%, 01/01/35(c)(g)(h) | | | 1,390 | | | | 1,320,236 | |
University Bridge LLC Student Housing Project, Series A, 5.25%, 12/01/58(a) | | | 21,920 | | | | 21,383,179 | |
Celebration Pointe Community Development District, Special Assessment Bonds: | | | | | | | | |
4.75%, 05/01/24 | | | 295 | | | | 298,354 | |
5.00%, 05/01/34 | | | 750 | | | | 748,373 | |
5.13%, 05/01/45 | | | 1,030 | | | | 1,018,928 | |
Charlotte County Industrial Development Authority, RB, AMT, Town & Country Utilities Project,
5.50%, 10/01/36 (a) | | | 3,500 | | | | 3,346,560 | |
City of Jacksonville Florida, RB, Jacksonville University Project, Series B, 5.00%, 06/01/53(a) | | | 3,250 | | | | 3,301,545 | |
City of Tampa Florida, RB, Baycare Health System Issue, Series A, 5.00%, 11/15/46 | | | 10,000 | | | | 10,911,800 | |
County of Brevard Florida Health Facilities Authority, Refunding RB, Series A, 5.00%, 04/01/31 | | | 5,000 | | | | 5,395,000 | |
County of Collier Florida IDA, Refunding RB, Arlington of Naples Project, Series A, 8.25%, 05/15/49(a) | | | 1,000 | | | | 959,710 | |
County of Hillsborough Florida Aviation Authority, ARB, Tampa International Airport, Series F, 5.00%, 10/01/48 | | | 10,000 | | | | 11,195,600 | |
County of Hillsborough Florida District Port Authority, ARB, Tampa Port Authority Project, Series B, AMT, 5.00%, 06/01/46 | | | 10,000 | | | | 10,737,900 | |
County of Miami-Dade Florida Aviation, Refunding RB, Series B, AMT, 5.00%, 10/01/40 | | | 10,000 | | | | 10,905,700 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Florida (continued) | |
County of Miami-Dade Florida Aviation Revenue, Refunding RB: | | | | | | | | |
AMT, Series A, 5.00%, 10/01/36 | | $ | 5,000 | | | $ | 5,399,250 | |
Series B, AMT, 5.00%, 10/01/19 | | | 5,000 | | | | 5,117,400 | |
Taxable, Series C, 4.06%, 10/01/31 | | | 11,120 | | | | 11,133,122 | |
County of Miami-Dade Florida Educational Facilities Authority, RB, Series A, 5.00%, 04/01/53 | | | 25,000 | | | | 27,194,250 | |
County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, Series B, 5.07%, 04/01/50 | | | 6,125 | | | | 6,591,602 | |
County of Miami-Dade Florida School Board, GO, Series A, 5.00%, 03/15/44 | | | 10,000 | | | | 11,048,800 | |
County of Miami-Dade Florida Transit System, Refunding RB, (AGM), 5.00%, 07/01/42 | | | 10,000 | | | | 10,778,700 | |
County of Orange Florida Health Facilities Authority, Refunding RB, Presbyterian Retirement Communities Project, 5.00%, 08/01/28 | | | 5,000 | | | | 5,373,800 | |
County of Palm Beach Florida Health Facilities Authority, Refunding RB, Sinai Residences Boca Raton Project, 7.50%, 06/01/49 | | | 1,000 | | | | 1,124,830 | |
County of Putnam Florida Development Authority, Refunding RB, Seminole Project, Series A, 5.00%, 03/15/42 | | | 10,000 | | | | 10,909,300 | |
Crossings at Fleming Island Community Development District, Refunding, Special Assessment Bonds, 6.50%, 05/01/44 | | | 2,390 | | | | 2,453,192 | |
Florida Department of Management Services, COP, Refunding, Series A(b): | | | | | | | | |
5.00%, 11/01/27 | | | 10,000 | | | | 11,890,600 | |
5.00%, 11/01/28 | | | 10,000 | | | | 11,996,500 | |
5.00%, 11/01/29 | | | 10,000 | | | | 12,101,700 | |
Florida Development Finance Corp., RB, Renaissance Charter School, Series A: | | | | | | | | |
5.75%, 06/15/29 | | | 365 | | | | 381,480 | |
6.00%, 06/15/34 | | | 440 | | | | 459,290 | |
6.13%, 06/15/44 | | | 1,685 | | | | 1,745,963 | |
Florida Higher Educational Facilities Financial Authority, Refunding RB, 5.00%, 04/01/27 | | | 5,000 | | | | 5,344,550 | |
Florida Housing Finance Corp., Refunding RB, S/F, Homeowner Mortgage, Series 2, AMT (Ginnie Mae, Fannie Mae & Freddie Mac)(b): | | | | | | | | |
4.05%, 07/01/38 | | | 5,000 | | | | 5,052,750 | |
4.20%, 01/01/45 | | | 10,000 | | | | 10,097,300 | |
Florida’s Turnpike Enterprise, GO, Department of Transportation, Series A, 5.00%, 07/01/26(b) | | | 6,610 | | | | 7,765,825 | |
Greater Orlando Aviation Authority, ARB, PrioritySub-Series A, AMT, 5.00%, 10/01/42 | | | 10,000 | | | | 10,917,400 | |
Lakewood Ranch Stewardship District Special Assessment Bonds: | | | | | | | | |
4.25%, 05/01/25 | | | 565 | | | | 567,028 | |
4.88%, 05/01/35 | | | 1,175 | | | | 1,166,434 | |
4.88%, 05/01/45 | | | 2,420 | | | | 2,324,410 | |
Village of Lakewood Ranch Sector Projects, 4.00%, 05/01/21 | | | 785 | | | | 788,682 | |
Village of Lakewood Ranch Sector Projects, 4.25%, 05/01/26 | | | 1,125 | | | | 1,118,610 | |
Village of Lakewood Ranch Sector Projects, 5.13%, 05/01/46 | | | 6,340 | | | | 6,225,183 | |
Live Oak Lake Community Development District, Special Assessment Bonds: | | | | | | | | |
4.50%, 05/01/36 | | | 2,400 | | | | 2,253,504 | |
4.63%, 05/01/47 | | | 4,500 | | | | 4,111,740 | |
Mid-Bay Bridge Authority, Refunding RB, Series A, 5.00%, 10/01/35 | | | 5,000 | | | | 5,420,000 | |
| | |
| 38 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Florida (continued) | |
Midtown Miami Community Development District, Refunding, Special Assessment Bonds, Series B, 5.00%, 05/01/37 | | $ | 1,870 | | | $ | 1,925,763 | |
Sarasota County Health Facilities Authority, RB, Sunnyside Village Project(b): | | | | | | | | |
5.00%, 05/15/38 | | | 1,040 | | | | 1,111,001 | |
5.00%, 05/15/48 | | | 1,275 | | | | 1,353,833 | |
South Miami Health Facilities Authority, Refunding RB, Baptist Health South Florida, 5.00%, 08/15/47 | | | 10,000 | | | | 11,006,300 | |
State of Florida Department of Transportation, RB, 5.00%, 07/01/36 | | | 5,000 | | | | 5,469,150 | |
Sterling Hill Community Development District, Refunding, Special Assessment Bonds, Series B,
5.50%, 11/01/15 (g)(h) | | | 143 | | | | 91,229 | |
Sumter Landing Community Development District, RB, Taxable Senior Recreational, Series 2016, 4.17%, 10/01/47 | | | 2,030 | | | | 1,966,928 | |
Tolomato Community Development District, Refunding, Special Assessment Bonds(f): | | | | | | | | |
Convertible CAB, Series A3, 6.61%, 05/01/40 | | | 355 | | | | 346,689 | |
Convertible CAB, Series A4, 6.61%, 05/01/40 (b) | | | 190 | | | | 154,711 | |
Series 2015-2, 6.61%, 05/01/40(b) | | | 490 | | | | 321,082 | |
Tolomato Community Development District: | | | | | | | | |
Series 1, 6.61%, 05/01/40(b)(f)(g)(h) | | | 800 | | | | 637,152 | |
Series 3, 6.61%, 05/01/40(b)(g)(h) | | | 535 | | | | 5 | |
Special Assessment, Series 3, 6.38%, 05/01/17(g)(h) | | | 425 | | | | 4 | |
Trout Creek Community Development District, Special Assessment Bonds: | | | | | | | | |
5.50%, 05/01/35 | | | 2,355 | | | | 2,372,545 | |
5.63%, 05/01/45 | | | 3,670 | | | | 3,680,533 | |
Village Center Community Development District, Refunding RB, 5.02%, 11/01/36 | | | 1,500 | | | | 1,547,070 | |
Village Community Development District No. 10, Special Assessment Bonds, Sumter County, 4.50%, 05/01/23 | | | 2,000 | | | | 2,095,140 | |
| | | | | | | | |
| | | | 322,344,942 | |
| Georgia — 2.1% | |
City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, Series B, 5.00%, 11/01/47 | | | 5,000 | | | | 5,614,350 | |
County of Georgia Housing & Finance Authority, RB, S/F Housing, Series A, 3.95%, 12/01/43 | | | 3,820 | | | | 3,825,463 | |
Georgia Housing & Finance Authority, RB, S/F: | | | | | | | | |
Series A, 3.60%, 12/01/33(b) | | | 2,500 | | | | 2,509,100 | |
Series A, 3.85%, 12/01/38(b) | | | 6,600 | | | | 6,633,264 | �� |
Series B, 3.80%, 12/01/33 | | | 3,000 | | | | 3,045,720 | |
Series B, 4.05%, 12/01/38 | | | 8,000 | | | | 8,102,400 | |
Series B, 4.15%, 12/01/43 | | | 18,000 | | | | 18,202,140 | |
Series B, 4.20%, 12/01/48 | | | 23,000 | | | | 23,240,580 | |
Series B-1, 3.65%, 06/01/44 | | | 9,490 | | | | 9,094,077 | |
Series C, 3.75%, 06/01/48 | | | 2,500 | | | | 2,413,350 | |
Metropolitan Atlanta Rapid Transit Authority, RB: | | | | | | | | |
Series A, 5.00%, 07/01/41 | | | 10,000 | | | | 11,003,400 | |
Series A, 5.00%, 07/01/42 | | | 10,000 | | | | 10,997,200 | |
Series A, 5.00%, 07/01/43 | | | 10,000 | | | | 10,991,000 | |
Series A, 5.00%, 07/01/44 | | | 10,000 | | | | 10,978,600 | |
Series A, 5.00%, 07/01/45 | | | 10,000 | | | | 10,972,400 | |
Series B, 5.00%, 07/01/44 | | | 10,000 | | | | 11,095,600 | |
Series B, 5.00%, 07/01/45 | | | 10,000 | | | | 11,088,500 | |
Municipal Electric Authority of Georgia, Refunding RB, Project One, Series A, 5.00%, 01/01/35 | | | 5,000 | | | | 5,353,400 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Georgia (continued) | |
Municipal Electric Authority of Georgia Plant Vogtle Units 3 & 4, Refunding RB, Build America Bonds, Series A, 6.66%, 04/01/57 | | $ | 16,894 | | | $ | 19,491,283 | |
State of Georgia, GO, Series A, 5.00%, 07/01/30 | | | 5,000 | | | | 5,997,200 | |
| | | | | | | | |
| | | | 190,649,027 | |
| Guam — 0.0% | |
Territory of Guam, GO, Series A, 6.00%, 11/15/19 | | | 125 | | | | 127,843 | |
| | | | | | | | |
| Hawaii — 0.1% | |
State of Hawaii Airports System, ARB, Series A, AMT, 5.00%, 07/01/45 | | | 5,000 | | | | 5,475,600 | |
| | | | | | | | |
| Illinois — 5.9% | |
Chicago Board of Education, GO, Series H, 5.00%, 12/01/46 | | | 5,000 | | | | 4,896,700 | |
Chicago Board of Education, GO, Refunding: | | | | | | | | |
Series C, 5.00%, 12/01/26 | | | 5,000 | | | | 5,169,650 | |
Series C, 5.00%, 12/01/27 | | | 4,585 | | | | 4,746,117 | |
Series C, 5.00%, 12/01/34 | | | 5,590 | | | | 5,662,670 | |
Series B, 4.00%, 12/01/35 | | | 11,230 | | | | 9,911,036 | |
Series C, 5.00%, 12/01/23(b) | | | 4,145 | | | | 4,307,152 | |
Series C, 5.00%, 12/01/24(b) | | | 4,280 | | | | 4,449,402 | |
Series C, 5.00%, 12/01/25(b) | | | 1,440 | | | | 1,499,054 | |
Series C, 5.00%, 12/01/26(b) | | | 2,945 | | | | 3,064,361 | |
Chicago Board of Education, GO, Dedicated Revenues: | | | | | | | | |
Series A, 5.00%, 12/01/42 | | | 50,165 | | | | 49,474,729 | |
Series C, 5.25%, 12/01/39 | | | 7,050 | | | | 7,100,337 | |
Series D, 5.00%, 12/01/46(b) | | | 10,615 | | | | 10,212,904 | |
Series D, 5.00%, 12/01/46(b) | | | 27,465 | | | | 26,620,177 | |
Refunding Series F, 5.00%, 12/01/23 | | | 7,220 | | | | 7,504,035 | |
Chicago O’Hare International Airport, Refunding RB, AMT: | | | | | | | | |
Series A, 5.00%, 01/01/20 | | | 5,000 | | | | 5,151,650 | |
Series A, 5.00%, 01/01/26 | | | 10,000 | | | | 10,828,100 | |
Series B, 5.00%, 01/01/24 | | | 5,000 | | | | 5,351,300 | |
City of Chicago Illinois, GO, Refunding: | | | | | | | | |
Series A, 6.00%, 01/01/38 | | | 11,020 | | | | 12,214,899 | |
Series C, 5.00%, 01/01/40 | | | 5,000 | | | | 5,002,950 | |
Illinois Finance Authority, Refunding RB: | | | | | | | | |
Lutheran Home & Services Obligated Group, 5.50%, 05/15/30 | | | 1,000 | | | | 1,029,000 | |
Lutheran Home & Services Obligated Group, 5.63%, 05/15/42 | | | 2,500 | | | | 2,544,100 | |
Mercy Health System Obligation, 5.00%, 12/01/21 | | | 5,000 | | | | 5,328,200 | |
Mercy Health System Obligation, 5.00%, 12/01/23 | | | 5,000 | | | | 5,494,250 | |
Mercy Health System Obligation, 5.00%, 12/01/46 | | | 5,000 | | | | 5,329,550 | |
Presence Health Network, Series C, 5.00%, 02/15/23 | | | 5,000 | | | | 5,536,450 | |
Presence Health Network, Series C, 5.00%, 02/15/25 | | | 5,000 | | | | 5,719,250 | |
Presence Health Network, Series C, 5.00%, 02/15/26 | | | 5,000 | | | | 5,784,250 | |
Illinois Housing Development Authority, Refunding RB, Housing,Sub-Series A-1: | | | | | | | | |
3.70%, 07/01/34 | | | 2,025 | | | | 2,029,009 | |
3.85%, 01/01/36 | | | 640 | | | | 634,445 | |
Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project Bonds, Series A(b): | | | | | | | | |
0.00%, 12/15/54(e) | | | 63,985 | | | | 9,922,794 | |
0.00%, 12/15/56(e) | | | 53,465 | | | | 7,476,546 | |
5.00%, 06/15/57 | | | 14,590 | | | | 15,006,253 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 39 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Illinois (continued) | |
Northern Illinois Municipal Power Agency, Refunding RB, Series A: | | | | | | | | |
5.00%, 12/01/27 | | $ | 5,000 | | | $ | 5,679,900 | |
5.00%, 12/01/30 | | | 5,000 | | | | 5,559,250 | |
5.00%, 12/01/41 | | | 5,000 | | | | 5,376,600 | |
Railsplitter Tobacco Settlement Authority, RB: | | | | | | | | |
5.00%, 06/01/22 | | | 5,000 | | | | 5,399,800 | |
5.00%, 06/01/23 | | | 5,000 | | | | 5,492,250 | |
5.00%, 06/01/24 | | | 10,000 | | | | 11,134,200 | |
5.00%, 06/01/25 | | | 10,000 | | | | 11,266,000 | |
State of Illinois, GO, 5.10%, 06/01/33 | | | 15,000 | | | | 14,220,600 | |
State of Illinois, GO, Refunding, 5.00%, 02/01/21 | | | 25,000 | | | | 25,772,000 | |
State of Illinois, GO: | | | | | | | | |
Series B, 5.00%, 11/01/19 | | | 25,000 | | | | 25,541,500 | |
Series D, 5.00%, 11/01/20 | | | 25,000 | | | | 25,920,000 | |
Series D, 5.00%, 11/01/22 | | | 25,000 | | | | 26,162,500 | |
Series D, 5.00%, 11/01/23 | | | 25,000 | | | | 26,308,000 | |
Series D, 5.00%, 11/01/24 | | | 25,000 | | | | 26,424,250 | |
Series D, 5.00%, 11/01/25 | | | 25,000 | | | | 26,495,250 | |
Series D, 5.00%, 11/01/26 | | | 25,000 | | | | 26,540,500 | |
Series D, 5.00%, 11/01/27 | | | 5,000 | | | | 5,294,550 | |
| | | | | | | | |
| | | | 533,588,470 | |
| Indiana — 0.3% | |
City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT, 5.88%, 01/01/24 | | | 510 | | | | 556,226 | |
Indiana Finance Authority, RB, Series A: | | | | | | | | |
1st Lien, 5.00%, 10/01/45 | | | 10,000 | | | | 10,793,000 | |
Green Bond, CWA Authority Project, 5.00%, 10/01/41 | | | 4,290 | | | | 4,702,398 | |
Green Bond, 5.00%, 02/01/35 | | | 5,000 | | | | 5,786,300 | |
Private Activity Bond, Ohio River Bridges East End Crossing Project, AMT, 5.25%, 01/01/51 | | | 5,000 | | | | 5,256,650 | |
Indiana Finance Authority, Refunding RB, US Steel Corp. Project, 6.00%, 12/01/19 | | | 3,025 | | | | 3,088,858 | |
Indiana Housing & Community Development Authority, RB, S/F, Series A (Ginnie Mae), 3.90%, 07/01/43 | | | 1,420 | | | | 1,424,274 | |
| | | | | | | | |
| | | | 31,607,706 | |
| Iowa — 0.6% | |
Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project: | | | | | | | | |
Series B, 5.25%, 12/01/50(c) | | | 16,855 | | | | 17,882,481 | |
Midwestern Disaster Area, 5.50%, 12/01/22 | | | 10 | | | | 10,011 | |
Midwestern Disaster Area, 5.25%, 12/01/25 | | | 11,350 | | | | 11,986,167 | |
Midwestern Disaster Area, 5.88%, 12/01/26(a) | | | 9,080 | | | | 9,540,719 | |
Iowa Tobacco Settlement Authority, Refunding RB, Asset-Backed: | | | | | | | | |
CAB, Series B, 5.60%, 06/01/34 | | | 2,580 | | | | 2,580,645 | |
Series C, 5.50%, 06/01/42 | | | 2,000 | | | | 1,989,540 | |
Series C, 5.63%, 06/01/46 | | | 10,150 | | | | 10,072,759 | |
| | | | | | | | |
| | | | 54,062,322 | |
| Kansas — 0.1% | |
University of Kansas Hospital Authority, Refunding RB, Improvement KU Health System, 5.00%, 09/01/45 | | | 5,000 | | | | 5,380,350 | |
| | | | | | | | |
| Kentucky — 1.2% | |
Kentucky Asset Liability Commission, Refunding RB, Series B, 2.25%, 11/01/25 | | | 10,000 | | | | 9,768,300 | |
Kentucky Economic Development Finance Authority, RB: | | | | | | | | |
Baptist Healthcare System, Series B, 5.00%, 08/15/33 | | | 5,000 | | | | 5,380,500 | |
Owensboro Health, Inc., Series A, 5.25%, 06/01/50 | | | 25,000 | | | | 25,878,000 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Kentucky (continued) | |
Kentucky Economic Development Finance Authority, Refunding RB: | | | | | | | | |
Owensboro Health, Inc., Series A, 5.00%, 06/01/28 | | $ | 6,105 | | | $ | 6,613,668 | |
Owensboro Health, Inc., Series A, 5.00%, 06/01/29 | | | 3,500 | | | | 3,773,490 | |
Owensboro Health, Inc., Series A, 5.25%, 06/01/41 | | | 5,000 | | | | 5,254,750 | |
Owensboro Health, Inc., Series B, 5.00%, 06/01/40 | | | 5,000 | | | | 5,202,250 | |
Taxable, Baptist Healthcare System, 5.08%, 08/15/48 | | | 15,000 | | | | 14,865,150 | |
Kentucky Public Energy Authority, RB, Series A, 4.00%, 04/01/48(c) | | | 25,000 | | | | 26,161,250 | |
Westvaco Corp., RB, MeadWestvaco Corp., 7.67%, 01/15/27(a) | | | 3,100 | | | | 3,498,878 | |
| | | | | | | | |
| | | | 106,396,236 | |
| Louisiana — 0.4% | |
East Baton Rouge Sewerage Commission, Refunding RB, Series B, 5.00%, 02/01/39 | | | 10,000 | | | | 10,964,500 | |
Juban Crossing Economic Development District, Refunding RB, General Infrastructure Project, Series C, 7.00%, 09/15/44(a) | | | 5,920 | | | | 6,043,669 | |
Louisiana Public Facilities Authority, RB, Provident Group - Flagship Properties LLC, Series A, 5.00%, 07/01/56 | | | 5,000 | | | | 5,259,900 | |
State of Louisiana Gasoline & Fuels Tax Revenue, Refunding RB, 1st Lien, Series A, 5.00%, 05/01/41 | | | 10,000 | | | | 11,057,300 | |
| | | | | | | | |
| | | | 33,325,369 | |
| Maine — 0.3% | |
Maine Health & Higher Educational Facilities Authority, Refunding RB, Bowdoin College, Series A, 5.00%, 07/01/39 | | | 3,280 | | | | 3,328,446 | |
Maine State Housing Authority, RB: | | | | | | | | |
M/F, Series F, 3.65%, 11/15/42 | | | 1,110 | | | | 1,052,113 | |
S/F, Series A, 3.75%, 11/15/38 | | | 1,500 | | | | 1,481,280 | |
S/F, Series B, 3.65%, 11/15/37 | | | 1,100 | | | | 1,098,493 | |
S/F, Series B, 3.85%, 11/15/43 | | | 3,680 | | | | 3,587,632 | |
Maine State Housing Authority, Refunding RB: | | | | | | | | |
M/F,Series A-3, 3.63%, 11/15/39 | | | 4,445 | | | | 4,289,603 | |
M/F,Series A-3, 3.75%, 11/15/44 | | | 5,000 | | | | 4,822,750 | |
Series C-1, AMT, 4.00%, 11/15/34 | | | 7,125 | | | | 7,217,482 | |
| | | | | | | | |
| | | | 26,877,799 | |
| Maryland — 2.1% | |
County of Anne Arundel Maryland Consolidated, RB, Special Taxing District, Villages at Two Rivers Project: | | | | | | | | |
5.13%, 07/01/36 | | | 600 | | | | 595,512 | |
5.25%, 07/01/44 | | | 1,220 | | | | 1,203,201 | |
County of Frederick Maryland, RB, Jefferson Technology Park Project, Series B, 7.13%, 07/01/43(a) | | | 2,840 | | | | 3,004,294 | |
County of Howard Maryland, GO, Refunding, Series C, 5.00%, 02/15/26 | | | 18,455 | | | | 21,701,973 | |
County of Howard Maryland, Tax Allocation Bonds, Annapolis Junction Town Center Project, 6.10%, 02/15/44 | | | 1,170 | | | | 1,182,308 | |
County of Montgomery Maryland, GO, Refunding, Consol Public Improvement, Series A, 5.00%, 11/01/29 | | | 5,000 | | | | 6,032,450 | |
County of Prince George’s Maryland, GO, Consol Public Improvement, Series A, 5.00%, 07/15/31 | | | 5,000 | | | | 5,926,000 | |
Maryland Community Development Administration, RB, M/F, Series D, 4.20%, 01/01/56 | | | 4,220 | | | | 4,240,973 | |
| | |
| 40 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Maryland (continued) | |
Maryland Community Development Administration, Refunding RB, S/F, Series A, 3.85%, 09/01/33 | | $ | 25,000 | | | $ | 25,295,500 | |
Maryland EDC, RB, Purple Line Light Rail Project, AMT: | | | | | | | | |
5.00%, 03/31/24 | | | 25,000 | | | | 26,441,250 | |
5.00%, 09/30/26 | | | 10,000 | | | | 10,509,200 | |
5.00%, 03/31/41 | | | 10,000 | | | | 10,521,300 | |
5.00%, 03/31/46 | | | 21,650 | | | | 22,705,004 | |
5.00%, 03/31/51 | | | 10,000 | | | | 10,455,300 | |
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25 | | | 1,140 | | | | 1,175,101 | |
Maryland Stadium Authority, RB: | | | | | | | | |
Baltimore City Public School, 5.00%, 05/01/41 | | | 10,000 | | | | 11,005,400 | |
Construction & Revitalization, 5.00%, 05/01/35 | | | 10,000 | | | | 11,391,100 | |
Construction & Revitalization, 5.00%, 05/01/42 | | | 5,000 | | | | 5,592,400 | |
Washington Suburban Sanitary Commission, GO, Refunding, 5.00%, 06/01/24 | | | 10,780 | | | | 12,351,401 | |
| | | | | | | | |
| | | | 191,329,667 | |
| Massachusetts — 6.0% | |
Commonwealth of Massachusetts, GO: | | | | | | | | |
Green Bond, Series B, 5.00%, 04/01/47 | | | 5,000 | | | | 5,556,450 | |
Series A, 5.00%, 01/01/38 | | | 5,000 | | | | 5,666,000 | |
Series A, 5.00%, 01/01/44 | | | 25,000 | | | | 27,996,750 | |
Series A, 5.00%, 01/01/46 | | | 5,000 | | | | 5,591,050 | |
Series A, 5.00%, 01/01/48 | | | 5,000 | | | | 5,578,700 | |
Series F, 5.00%, 11/01/40 | | | 25,000 | | | | 28,133,250 | |
Series F, 5.00%, 11/01/41 | | | 5,000 | | | | 5,618,450 | |
Commonwealth of Massachusetts Transportation Fund Revenue, RB, Rail Enhancement & Accelerated Bridge Programs, Series A: | | | | | | | | |
5.00%, 06/01/42 | | | 10,000 | | | | 11,210,700 | |
5.00%, 06/01/47 | | | 5,000 | | | | 5,581,850 | |
5.00%, 06/01/48 | | | 25,000 | | | | 28,113,750 | |
Massachusetts Bay Transportation Authority, Refunding RB,Sub-Series A-2: | | | | | | | | |
5.00%, 07/01/37 | | | 5,000 | | | | 5,642,150 | |
5.00%, 07/01/38 | | | 5,000 | | | | 5,626,250 | |
5.00%, 07/01/39 | | | 5,000 | | | | 5,614,300 | |
Massachusetts Clean Water Trust, RB, Green Bonds, Series 20, 5.00%, 02/01/35 | | | 5,000 | | | | 5,618,100 | |
Massachusetts Development Finance Agency, RB: | | | | | | | | |
Boston Medical Center, Series D, 5.00%, 07/01/44 | | | 10,000 | | | | 10,546,100 | |
Caregroup, SeriesJ-2, 5.00%, 07/01/43 | | | 15,000 | | | | 16,121,700 | |
Caregroup, SeriesJ-2, 5.00%, 07/01/48 | | | 25,000 | | | | 26,740,500 | |
Caregroup, SeriesJ-2, 5.00%, 07/01/53 | | | 25,000 | | | | 26,556,250 | |
UMass Darthmouth Student Housing Project, 5.00%, 10/01/32 | | | 2,525 | | | | 2,734,752 | |
UMass Darthmouth Student Housing Project, 5.00%, 10/01/33 | | | 1,860 | | | | 2,001,955 | |
UMass Darthmouth Student Housing Project, 5.00%, 10/01/34 | | | 3,020 | | | | 3,235,296 | |
UMass Darthmouth Student Housing Project, 5.00%, 10/01/38 | | | 13,665 | | | | 14,446,638 | |
UMass Darthmouth Student Housing Project, 5.00%, 10/01/43 | | | 6,725 | | | | 7,049,145 | |
UMass Darthmouth Student Housing Project, 5.00%, 10/01/48 | | | 10,000 | | | | 10,441,400 | |
UMass Darthmouth Student Housing Project, 5.00%, 10/01/54 | | | 10,000 | | | | 10,336,700 | |
Massachusetts Development Finance Agency, Refunding RB: | | | | | | | | |
Caregroup, SeriesH-1, 5.00%, 07/01/23 | | | 5,000 | | | | 5,496,200 | |
Caregroup, SeriesH-1, 5.00%, 07/01/24 | | | 5,000 | | | | 5,571,850 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Massachusetts (continued) | |
Caregroup, SeriesH-1, 5.00%, 07/01/25 | | $ | 5,000 | | | $ | 5,638,900 | |
Caregroup, Series I, 5.00%, 07/01/27 | | | 5,000 | | | | 5,601,950 | |
Emmanuel College Issue, Series A, 5.00%, 10/01/43 | | | 10,000 | | | | 10,548,700 | |
Foxborough Regional Charter School Issue, 5.00%, 07/01/37 | | | 1,260 | | | | 1,316,221 | |
New Bridge Charles, Inc., 4.00%, 10/01/32(a) | | | 2,560 | | | | 2,399,027 | |
New Bridge Charles, Inc., 4.13%, 10/01/42(a) | | | 8,225 | | | | 7,125,729 | |
New Bridge Charles, Inc., 5.00%, 10/01/57(a) | | | 4,090 | | | | 4,107,096 | |
UMass Memorial Health Care Obligated Group Issue, Series K, 5.00%, 07/01/38 | | | 5,000 | | | | 5,401,650 | |
Umass Memorial Healthcare, 5.00%, 07/01/44 | | | 10,000 | | | | 10,693,200 | |
Woods Hole Oceanographic Institution Issue, 5.00%, 06/01/43 | | | 5,000 | | | | 5,622,750 | |
Woods Hole Oceanographic Institution Issue, 5.00%, 06/01/48 | | | 5,000 | | | | 5,597,000 | |
Worchester Polytechnic Institutes, Series B, 5.00%, 09/01/45 | | | 10,000 | | | | 11,023,200 | |
Massachusetts Educational Financing Authority, RB, AMT: | | | | | | | | |
Issue I, 5.00%, 01/01/24 | | | 5,000 | | | | 5,495,050 | |
Series A, 5.00%, 01/01/22 | | | 10,000 | | | | 10,653,800 | |
Massachusetts Housing Finance Agency, RB, M/F, Series C: | | | | | | | | |
4.13%, 12/01/45 | | | 1,505 | | | | 1,512,540 | |
4.25%, 06/01/55 | | | 1,470 | | | | 1,484,715 | |
Massachusetts Housing Finance Agency, Refunding RB: | | | | | | | | |
M/F, Series A, 4.60%, 12/01/55 | | | 2,340 | | | | 2,387,034 | |
S/F Housing, Series 163, AMT (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 12/01/33 | | | 4,460 | | | | 4,520,790 | |
S/F, Series 172, 3.65%, 12/01/35 | | | 3,450 | | | | 3,455,106 | |
Massachusetts Port Authority, RB, Delta Air Lines, Inc. Project, Series A, AMT (AMBAC), 5.00%, 01/01/27 | | | 1,000 | | | | 1,018,670 | |
Massachusetts Port Authority, Refunding ARB, AMT, Series B, 5.00%, 07/01/43 | | | 25,000 | | | | 27,232,500 | |
Massachusetts School Building Authority, Refunding RB, Series A, 5.25%, 02/15/48 | | | 50,000 | | | | 56,869,500 | |
Massachusetts State College Building Authority, Refunding RB, Series A, 5.00%, 05/01/37 | | | 5,000 | | | | 5,554,300 | |
Massachusetts Water Resources Authority, Refunding RB, Series C: | | | | | | | | |
General, 5.00%, 08/01/35 | | | 5,000 | | | | 5,664,850 | |
Green Bond, 5.00%, 08/01/40 | | | 25,000 | | | | 27,908,000 | |
Metropolitan Boston Transit Parking Corp., Refunding RB, 5.00%, 07/01/41 | | | 10,000 | | | | 10,524,900 | |
University of Massachusetts Building Authority, Refunding RB, Senior, Series 1, 5.00%, 11/01/44 | | | 10,000 | | | | 10,984,300 | |
| | | | | | | | |
| | | | 543,167,714 | |
| Michigan — 1.8% | |
City of Detroit Michigan Sewage Disposal System Revenue, Refunding RB, Water & Sewerage Department: | | | | | | | | |
Senior Lien, Series A, 5.00%, 07/01/23 | | | 5,000 | | | | 5,416,000 | |
Series D (AGM), 2.21%, 07/01/32 | | | 5,000 | | | | 4,769,900 | |
Coldwater Community Schools, GO,(Q-SBLF), 5.00%, 05/01/47 | | | 5,000 | | | | 5,593,650 | |
County of Monroe Michigan EDC, Refunding RB, Detroit Edison Co. Project, Series AA (NPFGC), 6.95%, 09/01/22 | | | 15,170 | | | | 17,589,463 | |
Great Lakes Water Authority Water Supply System Revenue, Refunding RB, Senior Lien, Series C, 5.25%, 07/01/33 | | | 5,000 | | | | 5,720,950 | |
Michigan Finance Authority, RB, Beaumont Health Credit Group, Series A, 5.00%, 11/01/44 | | | 5,000 | | | | 5,370,700 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 41 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Michigan (continued) | |
Michigan Finance Authority, Refunding RB: | | | | | | | | |
Government Loan Program, Series C, 5.00%, 07/01/34 | | $ | 4,000 | | | $ | 4,351,440 | |
Government Loan Program, Series C, 5.00%, 07/01/35 | | | 4,000 | | | | 4,334,600 | |
Henry Ford Health System, 5.00%, 11/15/37 | | | 5,000 | | | | 5,415,900 | |
Local Government Loan Program, Series B, 5.00%, 07/01/44 | | | 5,000 | | | | 5,290,650 | |
Local Government Loan Program, SeriesD-6 (NPFGC), 5.00%, 07/01/21 | | | 5,000 | | | | 5,333,350 | |
Trinity Health Credit Group, Series A, 5.00%, 12/01/47 | | | 25,000 | | | | 26,637,750 | |
Michigan State Building Authority, Refunding RB, Facility Program, Series I, 5.00%, 04/15/38 | | | 4,675 | | | | 5,201,078 | |
Michigan State Housing Development Authority, RB: | | | | | | | | |
M/F Housing, Series A, 4.30%, 10/01/40 | | | 4,250 | | | | 4,311,030 | |
M/F, Series A, 4.00%, 10/01/43 | | | 1,940 | | | | 1,915,828 | |
S/F, 3.95%, 12/01/40 | | | 4,415 | | | | 4,417,163 | |
S/F, Series A, 3.95%, 12/01/35 | | | 1,045 | | | | 1,056,683 | |
Michigan State Housing Development Authority, Refunding RB, M/F, Rental Housing, Series D: | | | | | | | | |
3.95%, 10/01/37 | | | 3,180 | | | | 3,188,713 | |
4.00%, 10/01/42 | | | 3,495 | | | | 3,484,201 | |
4.50%, 10/01/48 | | | 8,090 | | | | 8,194,199 | |
Michigan Tobacco Settlement Finance Authority, RB, Series A, 7.31%, 06/01/34 | | | 10,425 | | | | 10,074,512 | |
Michigan Tobacco Settlement Finance Authority, Refunding RB, Series A, 6.88%, 06/01/42 | | | 2,375 | | | | 2,379,156 | |
Royal Oak Hospital Finance Authority Michigan, Refunding RB, Beaumont Health Credit Group, Series D, 5.00%, 09/01/39 | | | 5,000 | | | | 5,355,550 | |
State of Michigan Housing Development Authority, RB, M/F Housing, Series A, 4.05%, 10/01/48 | | | 5,000 | | | | 4,923,100 | |
University of Michigan, Refunding RB, Series A: | | | | | | | | |
5.00%, 04/01/42 | | | 10,000 | | | | 11,282,900 | |
5.00%, 04/01/47 | | | 5,000 | | | | 5,619,400 | |
| | | | | | | | |
| | | | 167,227,866 | |
| Minnesota — 0.7% | |
City of Brooklyn Park Minnesota, RB, Athlos Leadership Academy Project: | | | | | | | | |
5.50%, 07/01/35 | | | 665 | | | | 674,483 | |
5.50%, 07/01/40 | | | 750 | | | | 752,835 | |
Series A, 5.75%, 07/01/46 | | | 1,220 | | | | 1,235,897 | |
City of Deephaven Minnesota, Refunding RB, Series A, 5.50%, 07/01/50 | | | 2,500 | | | | 2,586,175 | |
City of Minneapolis Minnesota, RB, Hiawatha Academies Project, Series A, 5.00%, 07/01/47 | | | 3,000 | | | | 2,809,560 | |
County of Hennepin Minnesota Sales Tax Revenue, Refunding RB, Ballpark Project, Series A, 5.00%, 12/15/29 | | | 5,000 | | | | 5,601,400 | |
Minneapolis-St. Paul Metropolitan Airports Commission, Refunding RB, Senior, Series A, 5.00%, 01/01/28 | | | 5,000 | | | | 5,854,800 | |
Minnesota Housing Finance Agency, Refunding RB, S/F, Residential Housing, Series B (Ginnie Mae, Fannie Mae & Freddie Mac), 3.10%, 07/01/35 | | | 1,920 | | | | 1,817,030 | |
St. Paul Housing & Redevelopment Authority, Refunding RB, Hmong College Prep Academy Project, Series A: | | | | | | | | |
5.75%, 09/01/46 | | | 1,805 | | | | 1,851,262 | |
6.00%, 09/01/51 | | | 2,710 | | | | 2,804,579 | |
State of Minnesota, GO, Series A: | | | | | | | | |
5.00%, 08/01/31 | | | 5,000 | | | | 5,933,550 | |
5.00%, 08/01/32 | | | 5,000 | | | | 5,913,050 | |
5.00%, 08/01/33 | | | 5,000 | | | | 5,881,500 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Minnesota (continued) | |
5.00%, 08/01/34 | | $ | 5,000 | | | $ | 5,852,850 | |
5.00%, 08/01/35 | | | 5,000 | | | | 5,848,800 | |
5.00%, 08/01/36 | | | 5,000 | | | | 5,804,800 | |
5.00%, 08/01/38 | | | 5,000 | | | | 5,775,400 | |
| | | | | | | | |
| | | | 66,997,971 | |
| Mississippi — 0.1% | |
Mississippi Hospital Equipment & Facilities Authority, RB, Baptist Memorial Health Corp., Series A, 5.00%, 09/01/46 | | | 10,000 | | | | 10,496,600 | |
| | | | | | | | |
| Missouri — 0.7% | |
City of State Louis Missouri Airport Revenue, RB, Series C (AGM): | | | | | | | | |
5.00%, 07/01/47 | | | 5,000 | | | | 5,540,300 | |
5.00%, 07/01/42 | | | 5,000 | | | | 5,561,650 | |
City of State Louis Missouri Airport Revenue, Refunding ARB, Series A (AGM): | | | | | | | | |
5.00%, 07/01/22 | | | 5,000 | | | | 5,482,400 | |
5.00%, 07/01/23 | | | 5,000 | | | | 5,587,550 | |
5.00%, 07/01/25 | | | 5,000 | | | | 5,761,850 | |
5.00%, 07/01/24 | | | 5,000 | | | | 5,676,900 | |
County of Saint Louis Missouri IDA, Refunding RB, Nazareth Living Center Project, 5.13%, 08/15/45 | | | 1,800 | | | | 1,822,752 | |
Health & Educational Facilities Authority of the State of Missouri, RB, Taxable, Washington University, Series A, 3.65%, 08/15/57 | | | 4,295 | | | | 3,886,202 | |
Kansas City Missouri IDA, Refunding RB, Kansas City United Methodist Church(a): | | | | | | | | |
5.75%, 11/15/36 | | | 8,055 | | | | 7,216,152 | |
6.00%, 11/15/46 | | | 5,125 | | | | 4,528,040 | |
6.00%, 11/15/51 | | | 2,060 | | | | 1,796,114 | |
Metropolitan State Louis Sewer District, Refunding RB, Series A, 5.00%, 05/01/42 | | | 5,000 | | | | 5,630,900 | |
Missouri Housing Development Commission, RB, S/F, Special Homeowners, Series B (Ginnie Mae, Fannie Mae & Freddie Mac): | | | | | | | | |
3.63%, 11/01/34 | | | 415 | | | | 414,245 | |
3.75%, 11/01/39 | | | 2,080 | | | | 2,047,323 | |
| | | | | | | | |
| | | | 60,952,378 | |
| Montana — 0.0% | |
Montana State Board of Housing, RB, S/F, SeriesB-2, 3.60%, 12/01/47 | | | 940 | | | | 874,285 | |
| | | | | | | | |
| Nebraska — 0.4% | |
Nebraska Investment Finance Authority, RB, S/F, Series C: | | | | | | | | |
3.45%, 09/01/33 | | | 7,205 | | | | 7,163,499 | |
3.75%, 09/01/38 | | | 9,345 | | | | 9,318,741 | |
Nebraska Investment Finance Authority, Refunding RB, (Ginnie Mae, Fannie Mae & Freddie Mac), S/F: | | | | | | | | |
3.85%, 03/01/38 | | | 1,050 | | | | 1,051,564 | |
3.75%, 09/01/35 | | | 4,250 | | | | 4,262,920 | |
Omaha Public Power District, Refunding RB: | | | | | | | | |
Series A, 5.00%, 02/01/42 | | | 10,000 | | | | 11,216,700 | |
System, Series C, 5.00%, 02/01/43 | | | 5,000 | | | | 5,514,500 | |
| | | | | | | | |
| | | | 38,527,924 | |
| Nevada — 1.8% | |
City of North Las Vegas Nevada, GO, Build America Bonds, 6.57%, 06/01/40 | | | 5,175 | | | | 5,570,681 | |
County of Clark Department of Aviation, Refunding RB, JuniorSub-Lien, AMT, Series C, 5.00%, 07/01/21 | | | 10,000 | | | | 10,630,500 | |
| | |
| 42 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Nevada (continued) | |
County of Clark Nevada, GO, Stadium Improvement, Series A: | | | | | | | | |
5.00%, 06/01/43 | | $ | 25,000 | | | $ | 28,053,000 | |
5.00%, 05/01/48 | | | 50,000 | | | | 55,801,500 | |
County of Clark School District, GO, Refunding, Series A, 5.00%, 06/15/23 | | | 5,000 | | | | 5,517,150 | |
County of Clark School District Nevada, GO, Refunding, Series A, 5.00%, 06/15/22 | | | 5,000 | | | | 5,429,200 | |
Las Vegas Convention & Visitors Authority, RB, Series B, 5.00%, 07/01/43 | | | 25,000 | | | | 27,558,000 | |
Las Vegas Nevada Special Improvement District 607, Refunding, Special Assessment Bonds, Local Improvement: | | | | | | | | |
5.00%, 06/01/23 | | | 340 | | | | 359,288 | |
5.00%, 06/01/24 | | | 215 | | | | 226,154 | |
Las Vegas Valley Water District, Refunding, GOL, Water Improvement, Series A, 5.00%, 06/01/46 | | | 25,000 | | | | 27,512,000 | |
State of Nevada Department of Business & Industry, RB, Somerset Academy, Series A(a): | | | | | | | | |
4.50%, 12/15/29 | | | 350 | | | | 346,994 | |
5.00%, 12/15/38 | | | 565 | | | | 565,322 | |
5.00%, 12/15/48 | | | 690 | | | | 679,443 | |
| | | | | | | | |
| | | | 168,249,232 | |
| New Hampshire — 0.2% | |
New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project(a): | | | | | | | | |
Series B, 4.63%, 11/01/42 | | | 7,900 | | | | 7,489,121 | |
Series C, AMT, 4.88%, 11/01/42 | | | 2,995 | | | | 2,882,358 | |
New Hampshire Health and Education Facilities Authority Authority, RB, Cathlic Medical Center Issue, 5.00%, 07/01/44 | | | 5,000 | | | | 5,361,600 | |
| | | | | | | | |
| | | | 15,733,079 | |
| New Jersey — 3.7% | |
Casino Reinvestment Development Authority, Refunding RB, 5.25%, 11/01/39 | | | 5,000 | | | | 5,269,300 | |
County of Essex New Jersey Improvement Authority, RB, AMT, 5.25%, 07/01/45(a) | | | 7,105 | | | | 7,121,697 | |
County of Gloucester New Jersey Pollution Control Financing Authority, Refunding RB, Keystone Urban Renewal Project, Series A, AMT, 5.00%, 12/01/24 | | | 1,500 | | | | 1,582,485 | |
New Jersey EDA, ARB, Continental Airlines, Inc. Project, 5.13%, 09/15/23 | | | 4,660 | | | | 4,987,784 | |
New Jersey EDA, RB: | | | | | | | | |
Goethals Bridge Replacement Project, AMT, Private Activity Bond, 5.38%, 01/01/43 | | | 8,325 | | | | 8,889,102 | |
Series A, 5.00%, 11/01/27 | | | 5,000 | | | | 5,528,400 | |
New Jersey EDA, Refunding RB: | | | | | | | | |
Series A, 5.00%, 07/01/23 | | | 5,000 | | | | 5,466,900 | |
Series B, 5.00%, 11/01/20 | | | 5,000 | | | | 5,235,250 | |
Series B, 5.00%, 11/01/21 | | | 5,000 | | | | 5,326,050 | |
Series B, 5.00%, 11/01/22 | | | 5,000 | | | | 5,407,950 | |
Series B, 5.00%, 11/01/23 | | | 5,000 | | | | 5,459,200 | |
Series B, 5.00%, 11/01/24 | | | 5,000 | | | | 5,492,050 | |
Series B, 5.00%, 11/01/25 | | | 5,000 | | | | 5,516,150 | |
Series B, 5.00%, 11/01/26 | | | 5,000 | | | | 5,543,950 | |
Sub-Series A (BAM), 5.00%, 07/01/27 | | | 5,000 | | | | 5,707,400 | |
Transit Corp. Projects, Series B, 5.00%, 11/01/19 | | | 5,000 | | | | 5,116,900 | |
New Jersey Health Care Facilities Financing Authority, Refunding RB: | | | | | | | | |
Hackensack Meridian Health Obligated Group Issue, Series A, 5.00%, 07/01/39 | | | 5,000 | | | | 5,579,850 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| New Jersey (continued) | |
Hackensack Meridian Health Obligated Group Issue, Series A, 5.00%, 07/01/52 | | $ | 5,000 | | | $ | 5,444,500 | |
Hospital Asset Transformation Program, 5.00%, 10/01/23 | | | 5,000 | | | | 5,432,200 | |
St. Barnabas Health Care System, Series A, 5.00%, 07/01/25 | | | 1,000 | | | | 1,086,410 | |
St. Barnabas Health Care, Series A, 5.00%, 07/01/23 | | | 1,100 | | | | 1,200,969 | |
New Jersey Health Care System Facilities Financing Authority, Refunding RB, St. Barnabas Health Care, Series A, 5.00%, 07/01/24 | | | 3,100 | | | | 3,374,536 | |
New Jersey Higher Education Student Assistance Authority, RB, Senior Student Loan, Series 1A, AMT: | | | | | | | | |
5.00%, 12/01/21 | | | 5,000 | | | | 5,323,750 | |
5.00%, 12/01/22 | | | 5,000 | | | | 5,407,350 | |
5.00%, 12/01/23 | | | 5,000 | | | | 5,479,650 | |
New Jersey Infrastructure Bank, RB, Environmental Infrastructural,Series B-1, AMT: | | | | | | | | |
5.00%, 09/01/26 | | | 390 | | | | 450,629 | |
4.00%, 09/01/36 | | | 450 | | | | 459,459 | |
4.00%, 09/01/42 | | | 1,480 | | | | 1,490,108 | |
4.00%, 09/01/47 | | | 2,015 | | | | 2,019,413 | |
New Jersey Transportation Trust Fund Authority, RB: | | | | | | | | |
Build America Bonds, Series B, 6.88%, 12/15/39 | | | 11,700 | | | | 11,870,001 | |
Build America Bonds, Series B, 6.56%, 12/15/40 | | | 9,000 | | | | 10,637,010 | |
Build America Bonds, Series C, 6.10%, 12/15/28 | | | 2,500 | | | | 2,599,125 | |
Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/20 | | | 10,000 | | | | 10,383,800 | |
Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/21 | | | 5,000 | | | | 5,291,550 | |
Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/22 | | | 5,000 | | | | 5,381,800 | |
Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/23 | | | 5,000 | | | | 5,458,950 | |
Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/27 | | | 5,000 | | | | 5,589,350 | |
Federal Highway Reimbursement Revenue Notes, Series A, 5.00%, 06/15/28 | | | 5,000 | | | | 5,557,600 | |
New Jersey Transportation Trust Fund Authority, Refunding RB: | | | | | | | | |
(NPFGC), 5.25%, 12/15/21 | | | 5,000 | | | | 5,372,500 | |
Transportation System, Series A, 5.00%, 12/15/36 | | | 25,000 | | | | 26,417,250 | |
Transportation System, Series A, 5.00%, 12/15/32 | | | 15,000 | | | | 16,180,950 | |
Transportation System, Series A, 5.00%, 12/15/34 | | | 25,000 | | | | 26,676,250 | |
Transportation System, Series A, 5.00%, 12/15/35 | | | 24,045 | | | | 25,538,676 | |
Transportation System, Series B (NPFGC), 5.50%, 12/15/21 | | | 5,000 | | | | 5,408,650 | |
South Jersey Port Corp., ARB, Marine Terminal, Series B, AMT, 5.00%, 01/01/42 | | | 15,000 | | | | 15,867,600 | |
South Jersey Port Corp., RB,Sub-Marine Terminal, Series A, 5.00%, 01/01/49 | | | 5,000 | | | | 5,337,450 | |
South Jersey Port Corp., Refunding ARB, Marine Terminal, Series B, AMT, 5.00%, 01/01/48 | | | 15,000 | | | | 15,778,350 | |
| | | | | | | | |
| | | | 335,746,254 | |
| New Mexico — 0.0% | |
New Mexico Mortgage Finance Authority, RB, S/F (Ginnie Mae, Fannie Mae & Freddie Mac), 3.70%, 09/01/42 | | | 3,785 | | | | 3,656,916 | |
| | | | | | | | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 43 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| New York — 15.2% | |
Build NYC Resource Corp., Refunding RB, Pratt Paper, Inc. Project, AMT, 5.00%, 01/01/35(a) | | $ | 400 | | | $ | 420,712 | |
Chautauqua Tobacco Asset Securitization Corp., Refunding RB, 5.00%, 06/01/48 | | | 5,000 | | | | 4,879,450 | |
City of New York, GO,Sub-Series F-1: | | | | | | | | |
5.00%, 04/01/40 | | | 5,000 | | | | 5,613,250 | |
5.00%, 04/01/45 | | | 25,000 | | | | 27,897,250 | |
City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.25%, 11/01/43(b) | | | 14,000 | | | | 14,235,480 | |
City of New York, GO,Sub-Series F-1, 5.00%, 04/01/43 | | | 25,000 | | | | 27,939,500 | |
City of New York Water & Sewer System, RB, Series DD, 5.00%, 06/15/47 | | | 5,000 | | | | 5,535,800 | |
City of New York Transitional Finance Authority Building Aid Revenue, RB, Fiscal 2015,Series S-1, 5.00%, 07/15/40 | | | 5,000 | | | | 5,461,150 | |
City Of New York Transitional Finance Authority Building Aid Revenue, RB, Fiscal 2015,Series S-1, 5.00%, 07/15/40 | | | 5,000 | | | | 5,498,050 | |
City of New York Water & Sewer System, Refunding RB, 2nd Generation Resolution, Fiscal 2018, Series FF, 5.00%, 06/15/40 | | | 10,000 | | | | 11,310,500 | |
Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A: | | | | | | | | |
6.25%, 06/01/41(a) | | | 27,600 | | | | 28,273,164 | |
5.00%, 06/01/42 | | | 28,915 | | | | 27,057,211 | |
5.00%, 06/01/45 | | | 6,930 | | | | 6,422,378 | |
Counties of New York Tobacco Trust VI, Refunding RB, Tobacco Settlement Pass-Through,Series A-2B, 5.00%, 06/01/51 | | | 3,630 | | | | 3,659,294 | |
County of Dutchess New York Industrial Development Agency, Refunding RB, Bard College Civic Facility,Series A-1, 5.00%, 08/01/46 | | | 14,795 | | | | 13,888,510 | |
County of Nassau New York Tobacco Settlement Corp., Refunding RB, Series A1, 6.83%, 06/01/21 | | | 2,602 | | | | 2,561,224 | |
County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien, Remarketing, Series A, 5.00%, 11/01/23 | | | 5,000 | | | | 5,311,600 | |
County of Westchester New York Local Development Corp., Refunding RB, Westchester Medical Center Obligation, 5.00%, 11/01/46 | | | 5,000 | | | | 5,239,750 | |
Dutchess County Local Development Corp., RB, Health Quest System, Inc., Series B, 5.00%, 07/01/46 | | | 25,000 | | | | 26,963,250 | |
Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 06/01/45 | | | 18,765 | | | | 17,892,990 | |
Long Island Power Authority, RB, 5.00%, 09/01/35 | | | 12,000 | | | | 13,665,720 | |
Metropolitan Transportation Authority, RB,Sub-Series A-1, 5.00%, 11/15/45 | | | 5,000 | | | | 5,369,700 | |
Metropolitan Transportation Authority, Refunding RB: | | | | | | | | |
Cllimate Bond Certified, Green Bond, SeriesB-1, 5.00%, 11/15/33 | | | 5,000 | | | | 5,745,700 | |
Cllimate Bond Certified, Green Bond, SeriesB-1, 5.00%, 11/15/35 | | | 5,000 | | | | 5,699,500 | |
Cllimate Bond Certified, Green Bond, SeriesB-2, 5.00%, 11/15/34 | | | 5,000 | | | | 5,720,450 | |
Green Bond, SeriesB-1, 5.00%, 11/15/46 | | | 5,015 | | | | 5,547,543 | |
Green Bonds, Climate Bond Certified, Series B, 5.00%, 11/15/24 | | | 5,000 | | | | 5,654,250 | |
Green Bonds, SeriesC-1, 5.00%, 11/15/24 | | | 10,000 | | | | 11,308,500 | |
Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56 | | | 10,000 | | | | 10,578,000 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| New York (continued) | |
New York City Housing Development Corp., RB, M/F: | | | | | | | | |
SeriesA-1, 3.95%, 11/15/44 | | $ | 15,000 | | | $ | 15,235,800 | |
SeriesC-1-A, 3.50%, 11/01/33 | | | 5,000 | | | | 5,003,150 | |
SeriesC-1-A, 3.70%, 11/01/38 | | | 10,000 | | | | 9,902,300 | |
SeriesC-1-A, 4.20%, 11/01/44 | | | 10,000 | | | | 10,217,700 | |
SeriesC-1-A, 3.95%, 11/01/48 | | | 25,000 | | | | 24,825,500 | |
SeriesG-1, 3.90%, 05/01/45 | | | 10,000 | | | | 9,999,700 | |
SeriesG-1, 4.00%, 05/01/48 | | | 5,000 | | | | 5,002,050 | |
Sustainable Neighborhood, 3.85%, 11/01/43 | | | 10,000 | | | | 9,873,400 | |
New York City Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A: | | | | | | | | |
M/F, 4.38%, 11/01/33 | | | 1,110 | | | | 1,112,176 | |
M/F, 4.00%, 11/01/43 | | | 11,600 | | | | 11,676,328 | |
M/F, 4.05%, 11/01/48 | | | 13,080 | | | | 13,131,143 | |
4.15%, 11/01/38(b) | | | 27,780 | | | | 28,267,261 | |
3.80%, 11/01/47 | | | 1,000 | | | | 970,900 | |
New York City Transitional Finance Authority Building Aid Revenue, Refunding RB, SeriesS-3, 5.00%, 07/15/36 | | | 10,000 | | | | 11,390,400 | |
New York City Transitional Finance Authority Future Tax Secured Revenue, RB: | | | | | | | | |
Multi-Modal Bonds, 5.25%, 08/01/37 | | | 25,000 | | | | 29,092,500 | |
Sub-SeriesF-1, 5.00%, 05/01/31 | | | 5,000 | | | | 5,758,250 | |
Sub-SeriesF-1, 5.00%, 05/01/33 | | | 5,000 | | | | 5,710,250 | |
New York City Water & Sewer System, RB,Series 2018-CC-1, 5.00%, 06/15/48 | | | 15,000 | | | | 16,681,950 | |
New York City Water & Sewer System, Refunding RB, Second Generation Resolution, 5.00%, 06/15/39 | | | 10,000 | | | | 11,336,600 | |
New York Liberty Development Corp., Refunding RB: | | | | | | | | |
3 World Trade Center Project, Class 1, 5.00%, 11/15/44(a) | | | 49,285 | | | | 50,299,285 | |
3 World Trade Center Project, Class 2, 5.15%, 11/15/34(a) | | | 240 | | | | 249,578 | |
3 World Trade Center Project, Class 2, 5.38%, 11/15/40(a) | | | 570 | | | | 595,154 | |
3 World Trade Center Project, Class 3, 7.25%, 11/15/44(a) | | | 1,655 | | | | 1,908,761 | |
4 World Trade Center Project, 5.00%, 11/15/44 | | | 10,000 | | | | 10,591,900 | |
New York State Dormitory Authority, RB: | | | | | | | | |
Bid Group 2, Series A, 5.00%, 03/15/37 | | | 5,000 | | | | 5,678,800 | |
Bid Group 3, Series A, 5.00%, 03/15/41 | | | 25,000 | | | | 28,096,000 | |
New York University Hospitals Center, Series A, 5.00%, 07/01/43 | | | 5,000 | | | | 5,478,150 | |
Series B, 2.70%, 03/15/22 | | | 21,160 | | | | 20,895,077 | |
New York State Dormitory Authority, Refunding RB: | | | | | | | | |
Bid Group 4, Series E, 5.00%, 03/15/48 | | | 100,000 | | | | 112,064,000 | |
St. John’s University, Series A, 5.00%, 07/01/32 | | | 5,000 | | | | 5,614,800 | |
Yeshiva University, 5.00%, 09/01/38 | | | 730 | | | | 731,898 | |
New York State Environmental Facilities Corp., RB, Revolving Funds, New York City Municipal Water Finance Authority Projects, Series E, 5.00%, 06/15/47 | | | 5,000 | | | | 5,599,800 | |
New York State Housing Finance Agency, RB: | | | | | | | | |
Green Bond, Series F (SONYMA), 3.90%, 11/01/48 | | | 6,905 | | | | 6,784,991 | |
M/F, Affordable Housing, Series C (HUD), 4.10%, 11/01/45 | | | 4,000 | | | | 4,029,120 | |
M/F, Affordable Housing, Series D (SONYMA), 3.85%, 11/01/43 | | | 1,000 | | | | 985,770 | |
M/F, Affordable Housing, Series F (Ginnie Mae, Fannie Mae & Freddie Mac) (SONYMA), 4.10%, 11/01/45 | | | 2,000 | | | | 2,014,560 | |
| | |
| 44 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| New York (continued) | |
M/F, Affordable Housing, Series F (Ginnie Mae, Fannie Mae & Freddie Mac) (SONYMA), 3.90%, 05/01/47 | | $ | 3,585 | | | $ | 3,566,573 | |
M/F, Affordable Housing, Series F (Ginnie Mae, Fannie Mae & Freddie Mac) (SONYMA), 4.20%, 05/01/50 | | | 1,000 | | | | 1,006,210 | |
M/F, Affordable Housing, Series G (Ginnie Mae, Fannie Mae & Freddie Mac) (SONYMA), 3.90%, 11/01/44 | | | 7,110 | | | | 7,109,645 | |
M/F, Series B, 4.25%, 11/01/50 | | | 5,000 | | | | 5,044,050 | |
New York State Urban Development Corp., Refunding RB: | | | | | | | | |
Series B, 2.86%, 03/15/24 | | | 15,000 | | | | 14,635,350 | |
State Personal Income Tax, Series A, 5.00%, 03/15/35 | | | 10,000 | | | | 11,088,100 | |
New York Transportation Development Corp., ARB, AMT: | | | | | | | | |
Delta Air Lines Inc., LaGuardia Airport Terminal C&D Redevelopment Project, 5.00%, 01/01/24 | | | 10,000 | | | | 10,959,500 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/25 | | | 10,000 | | | | 11,073,700 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/26 | | | 10,000 | | | | 11,097,900 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/27 | | | 10,000 | | | | 11,158,700 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/28 | | | 10,000 | | | | 11,206,900 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/29 | | | 10,000 | | | | 11,149,200 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/30 | | | 18,275 | | | | 20,270,082 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/31 | | | 13,000 | | | | 14,355,640 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/32 | | | 23,000 | | | | 25,286,430 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/33 | | | 10,000 | | | | 10,945,700 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/34 | | | 10,000 | | | | 10,905,500 | |
Delta Air Lines, Inc. LaGuardia Airport Terminals C&D Redevelopment Project, 5.00%, 01/01/36 | | | 14,610 | | | | 15,804,806 | |
LaGuardia Airport Terminal B Redevelopment Project, Series A, 5.00%, 07/01/34 | | | 5,000 | | | | 5,329,800 | |
LaGuardia Airport Terminal B Redevelopment Project, Series A, 5.00%, 07/01/41 | | | 10,000 | | | | 10,515,400 | |
LaGuardia Airport Terminal B Redevelopment Project, Series A, 5.00%, 07/01/46 | | | 50,000 | | | | 52,424,000 | |
LaGuardia Airport Terminal B Redevelopment Project, Series A, 5.25%, 01/01/50 | | | 50,000 | | | | 52,940,500 | |
New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT: | | | | | | | | |
5.00%, 08/01/26 | | | 21,810 | | | | 22,711,407 | |
5.00%, 08/01/31 | | | 34,305 | | | | 35,405,161 | |
Niagara Area Development Corp., Refunding RB, Covanta Project, Series A, AMT, 4.75%, 11/01/42(a) | | | 5,280 | | | | 5,061,302 | |
Port Authority of New York & New Jersey, ARB: | | | | | | | | |
192nd Series, 4.81%, 10/15/65 | | | 6,675 | | | | 6,994,466 | |
Consolidated, 168th Series, 4.93%, 10/01/51 | | | 6,140 | | | | 6,706,108 | |
Port Authority of New York & New Jersey, Refunding ARB: | | | | | | | | |
AMT, Series 207, 5.00%, 09/15/24 | | | 10,000 | | | | 11,308,700 | |
AMT, Series 207, 5.00%, 09/15/25 | | | 25,000 | | | | 28,540,000 | |
Consolidated, 205th Series, 5.00%, 11/15/47 | | | 5,000 | | | | 5,588,050 | |
State of New York Dormitory Authority, RB: | | | | | | | | |
Bid Group 3, Series A, 5.00%, 03/15/39 | | | 5,000 | | | | 5,653,150 | |
Bid Group 3, Series A, 5.00%, 03/15/42 | | | 25,000 | | | | 28,074,750 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| New York (continued) | |
Bid Group 3, Series A, 5.00%, 03/15/43 | | $ | 25,000 | | | $ | 28,053,750 | |
Series B, 5.00%, 02/15/33 | | | 5,000 | | | | 5,710,950 | |
Series B, 5.00%, 02/15/36 | | | 5,000 | | | | 5,641,900 | |
Series B, 5.00%, 02/15/37 | | | 5,000 | | | | 5,625,800 | |
State of New York Dormitory Authority, Refunding RB: | | | | | | | | |
Columbia University, Series B, 5.00%, 10/01/38 | | | 10,000 | | | | 11,563,100 | |
General Purpose, Series A, 5.00%, 02/15/38 | | | 5,525 | | | | 6,165,071 | |
New York University, Series A, 5.00%, 07/01/42 | | | 5,000 | | | | 5,405,250 | |
Touro College & University, Series B, 5.75%, 01/01/29 | | | 990 | | | | 1,011,632 | |
State of New York Mortgage Agency, RB, S/F, Series 188, 3.85%, 10/01/44 | | | 3,800 | | | | 3,732,626 | |
TSASC, Inc., Refunding RB, Series B, 5.00%, 06/01/48 | | | 3,635 | | | | 3,457,612 | |
Utility Debt Securitization Authority, Refunding RB, Restructuring, 5.00%, 12/15/39 | | | 10,000 | | | | 11,385,100 | |
Westchester County Healthcare Corp., Refunding RB, Senior Lien, Series B, 5.13%, 11/01/20 | | | 5,000 | | | | 5,250,550 | |
| | | | | | | | |
| | | | 1,379,074,999 | |
| North Carolina — 0.8% | |
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University, Series B, 5.00%, 10/01/41 | | | 5,000 | | | | 5,570,350 | |
North Carolina Department of Transportation, RB, AMT,I-77 Hot Lanes Project, 5.00%, 06/30/54 | | | 10,000 | | | | 10,443,300 | |
North Carolina Housing Finance Agency, RB, S/F: | | | | | | | | |
Series38-B, 3.85%, 07/01/37 | | | 5,000 | | | | 5,006,750 | |
Series39-B (Ginnie Mae, Fannie Mae & Freddie Mac), 3.63%, 07/01/33(b) | | | 2,750 | | | | 2,769,140 | |
North Carolina Medical Care Commission, RB, 1st Mortgage, Galloway Ridge Project, Series A: | | | | | | | | |
4.50%, 01/01/19 | | | 520 | | | | 520,603 | |
4.75%, 01/01/21 | | | 270 | | | | 274,871 | |
5.00%, 01/01/22 | | | 290 | | | | 295,588 | |
North Carolina Medical Care Commission, Refunding RB: | | | | | | | | |
1st Mortgage, Galloway Ridge Project, Series A, 5.25%, 01/01/41 | | | 2,470 | | | | 2,517,227 | |
Vidant Health, 5.00%, 06/01/33 | | | 5,000 | | | | 5,500,900 | |
Vidant Health, 5.00%, 06/01/45 | | | 5,000 | | | | 5,357,350 | |
Raleigh Durham Airport Authority, Refunding RB, Series A, AMT: | | | | | | | | |
5.00%, 05/01/34 | | | 5,000 | | | | 5,621,850 | |
5.00%, 05/01/35 | | | 5,000 | | | | 5,606,600 | |
State of North Carolina, GO, Public Improvements Project, Series A: | | | | | | | | |
5.00%, 06/01/20 | | | 10,000 | | | | 10,453,800 | |
5.00%, 06/01/30 | | | 10,000 | | | | 11,970,000 | |
Town of Mooresville North Carolina, Special Assessment Bonds, 5.38%, 03/01/40(a) | | | 2,100 | | | | 1,991,598 | |
| | | | | | | | |
| | | | 73,899,927 | |
| North Dakota — 0.2% | |
County of Cass North Dakota, Refunding RB, Essentia Health Obligated Group, Series B, 5.25%, 02/15/58 | | | 5,000 | | | | 5,318,300 | |
North Dakota Housing Finance Agency, RB, S/F, Housing finance Program Bonds-Home Mortgage Finance Program: | | | | | | | | |
Series A, 3.55%, 07/01/33(b) | | | 4,500 | | | | 4,506,525 | |
Series A, 3.75%, 07/01/38(b) | | | 4,710 | | | | 4,664,737 | |
Series D (FHA), 3.55%, 07/01/40 | | | 2,240 | | | | 2,129,434 | |
| | | | | | | | |
| | | | 16,618,996 | |
| Ohio — 2.3% | |
American Municipal Power, Inc., Refunding RB, Series B: | | | | | | | | |
Build America Bonds, 6.45%, 02/15/44 | | | 10,000 | | | | 12,408,700 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 45 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Ohio (continued) | |
Prairie State Energy Campus Project, 5.00%, 02/15/34(c)(f) | | $ | 5,000 | | | $ | 5,030,150 | |
Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term,Series A-2: | | | | | | | | |
5.75%, 06/01/34 | | | 2,500 | | | | 2,335,250 | |
5.88%, 06/01/47 | | | 69,470 | | | | 65,741,545 | |
6.50%, 06/01/47 | | | 11,100 | | | | 10,975,014 | |
County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Series A, 5.00%, 08/01/22 | | | 5,000 | | | | 5,422,350 | |
County of Franklin Ohio Sales Tax Revenue, RB, Various Purpose: | | | | | | | | |
5.00%, 06/01/43 | | | 10,000 | | | | 11,349,500 | |
5.00%, 06/01/48 | | | 10,000 | | | | 11,306,000 | |
County of Gallia Ohio, Refunding RB, Holzer Health System Obligated Group, 8.00%, 07/01/42 | | | 7,290 | | | | 7,904,401 | |
Northeast Ohio Medical University Foundation, RB, 5.00%, 12/01/42 | | | 10,000 | | | | 10,138,500 | |
Northeast Ohio Regional Sewer District, Refunding RB, 5.00%, 11/15/49 | | | 10,000 | | | | 10,911,000 | |
Ohio Housing Finance Agency, RB, S/F, (Ginnie Mae, Fannie Mae & Freddie Mac): | | | | | | | | |
Mortagage Backed Securities Program, Series D 3.63%, 09/01/47 | | | 4,950 | | | | 4,650,525 | |
Series A 3.95%, 09/01/43 | | | 6,750 | | | | 6,794,415 | |
Ohio Turnpike & Infrastructure Commission, RB, Senior Lien, Series A, 5.00%, 02/15/48 | | | 10,000 | | | | 10,693,100 | |
Ohio University, RB, General Receipts, Athens, 5.59%, 12/01/14 | | | 900 | | | | 969,255 | |
State of Ohio, GO, Refunding, Common Schools, Series B, 5.00%, 09/15/25 | | | 12,645 | | | | 14,750,772 | |
State of Ohio, RB, AMT, Portsmouth Bypass Project: | | | | | | | | |
5.00%, 12/31/23 | | | 1,295 | | | | 1,414,775 | |
5.00%, 06/30/22 | | | 2,190 | | | | 2,350,330 | |
5.00%, 06/30/21 | | | 1,975 | | | | 2,085,086 | |
5.00%, 12/31/22 | | | 1,550 | | | | 1,674,837 | |
5.00%, 06/30/23 | | | 1,305 | | | | 1,417,452 | |
University of Cincinnati, RB, Series C, 5.00%, 06/01/41 | | | 5,000 | | | | 5,507,550 | |
| | | | | | | | |
| | | | 205,830,507 | |
| Oklahoma — 0.6% | |
City of Oklahoma Water Utilities Trust, Refunding RB, 5.00%, 07/01/45 | | | 10,000 | | | | 11,284,200 | |
Oklahoma Development Finance Authority, RB, OU Medicine Project: | | | | | | | | |
Series B, 5.50%, 08/15/52 | | | 11,620 | | | | 12,573,073 | |
Series C, 5.45%, 08/15/28 | | | 6,081 | | | | 6,366,381 | |
Oklahoma Turnpike Authority, Refunding RB, Series B, 5.00%, 01/01/26 | | | 5,000 | | | | 5,842,350 | |
Tulsa Airports Improvement Trust, Refunding RB, American Airlines, Inc., AMT, 5.00%, 06/01/35(c) | | | 17,820 | | | | 18,987,210 | |
| | | | | | | | |
| | | | 55,053,214 | |
| Oregon — 0.4% | |
County of Multnomah Oregon Hospital Facilities Authority, Refunding RB, Mirabella at South Waterfront, 5.50%, 10/01/49 | | | 865 | | | | 903,873 | |
Port of Portland Oregon Airport Revenue, RB, AMT, Series 24B: | | | | | | | | |
5.00%, 07/01/47 | | | 5,000 | | | | 5,520,450 | |
5.00%, 07/01/47 | | | 5,000 | | | | 5,428,850 | |
Portland Community College District, GO, Taxable Pension: | | | | | | | | |
4.36%, 06/01/31 | | | 2,000 | | | | 2,023,380 | |
4.44%, 06/01/32 | | | 3,500 | | | | 3,537,520 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Oregon (continued) | |
State of Oregon, GO, Refunding ArticleXI-Q, Series F, 5.00%, 05/01/39 | | $ | 5,000 | | | $ | 5,598,950 | |
State of Oregon Housing & Community Services Department, RB, M/F Housing, AMT, Series B (Ginnie Mae, Fannie Mae & Freddie Mac): | | | | | | | | |
4.00%, 07/01/37 | | | 1,420 | | | | 1,430,764 | |
4.13%, 07/01/43 | | | 1,325 | | | | 1,333,705 | |
State of Oregon State Facilities Authority, Refunding RB, University of Portland Project, Series A, 5.00%, 04/01/45 | | | 5,000 | | | | 5,472,900 | |
University of Oregon, RB, Series A, 5.00%, 04/01/46 | | | 5,000 | | | | 5,517,150 | |
Yamhill County Hospital Authority, Refunding RB, Friendsview Retirement Community: | | | | | | | | |
5.00%, 11/15/46 | | | 1,000 | | | | 1,029,700 | |
5.00%, 11/15/51 | | | 730 | | | | 749,235 | |
| | | | | | | | |
| | | | 38,546,477 | |
| Pennsylvania — 3.9% | |
Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project, 5.00%, 05/01/33(a) | | | 1,250 | | | | 1,326,013 | |
City of Philadelphia Pennsylvania, Refunding ARB, Series A, AMT, 5.00%, 06/15/21 | | | 5,000 | | | | 5,310,500 | |
City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB: | | | | | | | | |
AMT, Series B, 5.00%, 07/01/21 | | | 5,000 | | | | 5,323,000 | |
AMT, Series B, 5.00%, 07/01/29 | | | 5,000 | | | | 5,648,500 | |
AMT, Series B, 5.00%, 07/01/30 | | | 5,000 | | | | 5,612,850 | |
AMT, Series B, 5.00%, 07/01/42 | | | 5,000 | | | | 5,418,800 | |
Series A, 5.00%, 07/01/47 | | | 5,000 | | | | 5,489,850 | |
Series B, AMT, 5.00%, 07/01/47 | | | 10,000 | | | | 10,796,300 | |
City of Philadelphia Pennsylvania Hospitals & Higher Education Facilities Authority, RB, Temple University Health System, Series A: | | | | | | | | |
5.63%, 07/01/36 | | | 4,045 | | | | 4,293,929 | |
5.63%, 07/01/42 | | | 1,675 | | | | 1,767,996 | |
Commonwealth Financing Authority, RB: | | | | | | | | |
Plancon Program, Series A, 3.86%, 06/01/38 | | | 4,120 | | | | 3,925,824 | |
Series A, 4.14%, 06/01/38 | | | 3,945 | | | | 3,848,071 | |
Tobacco Master Settlement payment, 5.00%, 06/01/20 | | | 3,220 | | | | 3,342,907 | |
Tobacco Master Settlement payment, 5.00%, 06/01/21 | | | 2,000 | | | | 2,121,040 | |
Tobacco Master Settlement payment, 5.00%, 06/01/22 | | | 2,875 | | | | 3,105,891 | |
Tobacco Master Settlement payment, 5.00%, 06/01/23 | | | 5,000 | | | | 5,485,600 | |
County of Allegheny Hospital Development Authority, Refunding RB, Allegheny Health Network Obligated Group Issue, Series A, 5.00%, 04/01/47 | | | 10,000 | | | | 10,685,900 | |
County of Berks IDA, Refunding RB, Tower Health Projects: | | | | | | | | |
5.00%, 11/01/26 | | | 5,000 | | | | 5,707,550 | |
5.00%, 11/01/47 | | | 10,000 | | | | 10,711,400 | |
5.00%, 11/01/50 | | | 5,000 | | | | 5,350,050 | |
County of Chester Health & Education Facilities Authority, Refunding RB, Simpson Senior Services Project, Series A: | | | | | | | | |
5.00%, 12/01/22 | | | 895 | | | | 936,788 | |
5.00%, 12/01/23 | | | 985 | | | | 1,030,980 | |
5.00%, 12/01/24 | | | 1,035 | | | | 1,083,479 | |
5.00%, 12/01/25 | | | 1,075 | | | | 1,122,666 | |
5.25%, 12/01/45 | | | 1,500 | | | | 1,516,605 | |
| | |
| 46 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Pennsylvania (continued) | |
County of Lancaster Pennsylvania Hospital Authority, Refunding RB, St. Anne’s Retirement Community, 5.00%, 04/01/33 | | $ | 1,575 | | | $ | 1,590,246 | |
County of Montgomery Pennsylvania IDA, Refunding RB, Whitemarsh Continuing Care Retirement Community Project, 5.38%, 01/01/50 | | | 4,815 | | | | 4,704,592 | |
County of Northampton Pennsylvania General Purpose Authority, Refunding RB, St. Luke’s University Health Network Project, 5.00%, 08/15/46 | | | 5,000 | | | | 5,386,850 | |
County of Northampton Pennsylvania IDA, Route 33 Project, Tax Allocation Bonds, 7.00%, 07/01/32 | | | 2,170 | | | | 2,419,463 | |
Delaware Valley Regional Finance Authority, Refunding RB, Series C, 2.49%, 06/01/27(c) | | | 25,000 | | | | 24,241,000 | |
General Authority of Southcentral Pennsylvania, Refunding RB, Wellspan Health Obligation Group, Series A, 5.00%, 06/01/44 | | | 10,000 | | | | 10,664,300 | |
Pennsylvania Economic Development Financing Authority, RB: | | | | | | | | |
AMT, 5.00%, 06/30/42 | | | 5,000 | | | | 5,224,000 | |
Build America Bonds, Series B, 6.53%, 06/15/39 | | | 5,000 | | | | 6,200,300 | |
PA Bridges Finco LP, AMT, 5.00%, 12/31/34 | | | 5,000 | | | | 5,337,200 | |
Pennsylvania Bridge Finco LP, 5.00%, 12/31/29 | | | 5,000 | | | | 5,425,700 | |
Pennsylvania Rapid Bridge Replacement, 5.00%, 12/31/38 | | | 5,000 | | | | 5,257,000 | |
Pennsylvania Rapid Bridge Replacement Project, 5.00%, 12/31/20 | | | 1,980 | | | | 2,065,556 | |
Pennsylvania Rapid Bridge Replacement Project, AMT, 5.00%, 06/30/20 | | | 5,000 | | | | 5,167,950 | |
Pennsylvania Rapid Bridge Replacement Project, AMT, 5.00%, 06/30/21 | | | 5,000 | | | | 5,258,350 | |
Pennsylvania Rapid Bridge Replacement Project, AMT, 5.00%, 12/31/21 | | | 5,000 | | | | 5,299,100 | |
Pennsylvania Rapid Bridge Replacement Project, AMT, 5.00%, 06/30/22 | | | 4,495 | | | | 4,794,142 | |
Pennsylvania Rapid Bridge Replacement Project, AMT, 5.00%, 12/31/30 | | | 2,460 | | | | 2,649,248 | |
S/F Housing,Series 127-B, 3.88%, 10/01/38 | | | 4,760 | | | | 4,761,476 | |
Series A, Waste Management, Inc. Project, AMT, 2.63%, 11/01/21 | | | 7,500 | | | | 7,442,775 | |
Pennsylvania Economic Development Financing Authority, Refunding RB, National Gypsum Co., AMT, 5.50%, 11/01/44 | | | 3,250 | | | | 3,350,522 | |
Pennsylvania Housing Finance Agency, RB: | | | | | | | | |
S/F,Series 123-B, 3.45%, 10/01/32 | | | 5,000 | | | | 4,950,950 | |
S/F, Series 125B, 3.65%, 10/01/42 | | | 5,030 | | | | 4,798,218 | |
S/F,Series 127-B, 3.95%, 04/01/42 | | | 4,000 | | | | 3,963,680 | |
S/F, Series B, 3.95%, 10/01/40 | | | 3,100 | | | | 3,086,391 | |
Series 123B, 3.90%, 10/01/37 | | | 5,000 | | | | 5,023,250 | |
Pennsylvania Housing Finance Agency, Refunding RB, Series 121, 2.80%, 10/01/31 | | | 11,770 | | | | 10,947,395 | |
Pennsylvania State University, RB, 5.00%, 09/01/43 | | | 10,000 | | | | 11,430,800 | |
Pennsylvania Turnpike Commission, RB: | | | | | | | | |
Series A, 5.25%, 12/01/44 | | | 25,000 | | | | 28,526,250 | |
Series A-1, 5.00%, 12/01/47 | | | 10,000 | | | | 10,843,300 | |
Series B, 5.00%, 12/01/43 (b) | | | 5,000 | | | | 5,477,550 | |
Series B, 5.00%, 12/01/48 | | | 10,000 | | | | 10,903,000 | |
Pennsylvania Turnpike Commission, Refunding RB, Motor License Fund, Enhanced Turnpike Subordinate, 5.00%, 12/01/38 | | | 5,000 | | | | 5,469,300 | |
Philadelphia Authority for Industrial Development, Refunding RB, Thomas Jefferson University, Series A: | | | | | | | | |
5.00%, 09/01/35 | | | 5,000 | | | | 5,495,350 | |
5.00%, 09/01/36 | | | 5,000 | | | | 5,478,100 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Pennsylvania (continued) | |
Pittsburgh Water & Sewer Authority, Refunding RB, Series A (AGM), 5.00%, 09/01/26 | | $ | 5,000 | | | $ | 5,817,350 | |
Susquehanna Area Regional Airport Authority, ARB, Series A, AMT, 5.00%, 01/01/27 | | | 3,100 | | | | 3,331,167 | |
| | | | | | | | |
| | | | 353,744,310 | |
| Puerto Rico — 1.3% | |
Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43 | | | 5,925 | | | | 5,936,021 | |
Commonwealth of Puerto Rico, GO, Refunding, Series A(g)(h): | | | | | | | | |
Public Improvement, 5.50%, 07/01/39 | | | 6,100 | | | | 3,538,000 | |
8.00%, 07/01/35 | | | 16,450 | | | | 9,520,437 | |
Commonwealth of Puerto Rico, GO, 6.00%, 07/01/38(g)(h) | | | 6,950 | | | | 4,031,000 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, RB, Senior Lien, Series A: | | | | | | | | |
5.75%, 07/01/37 | | | 10,930 | | | | 10,438,150 | |
6.00%, 07/01/44 | | | 22,990 | | | | 22,070,400 | |
Commonwealth of Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 07/01/38 | | | 33,295 | | | | 31,963,200 | |
Puerto Rico Electric Power Authority, RB : | | | | | | | | |
Series A, 7.00%, 07/01/33(g)(h) | | | 3,360 | | | | 2,175,600 | |
Series A, 5.00%, 07/01/42(g)(h) | | | 19,670 | | | | 12,392,100 | |
Series A, 7.00%, 07/01/43 | | | 3,350 | | | | 2,169,125 | |
Series WW, 5.50%, 07/01/20 | | | 1,000 | | | | 630,000 | |
Series XX, 5.25%, 07/01/40(g)(h) | | | 7,100 | | | | 4,473,000 | |
Puerto Rico Electric Power Authority, Refunding RB, Series DDD, 5.00%, 07/01/20 | | | 680 | | | | 428,400 | |
Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, Refunding RB, Series C: | | | | | | | | |
First Subordinate, 5.75%, 08/01/57 | | | 4,435 | | | | 3,542,456 | |
Senior Lien, 5.00%, 08/01/40 | | | 7,425 | | | | 5,940,000 | |
| | | | | | | | |
| | | | 119,247,889 | |
| Rhode Island — 0.4% | |
Rhode Island Health & Educational Building Corp., Refunding RB, Brown University, 5.00%, 09/01/43 | | | 10,000 | | | | 10,932,900 | |
Rhode Island Housing & Mortgage Finance Corp., RB, M/F,Series 3-B (FHA): | | | | | | | | |
3.70%, 10/01/34 | | | 1,550 | | | | 1,542,591 | |
3.88%, 10/01/39 | | | 1,610 | | | | 1,586,156 | |
Rhode Island Housing & Mortgage Finance Corp., Refunding RB, Homeownership Opportunity, S/F Housing, (Ginnie Mae, Fannie Mae & Freddie Mac): | | | | | | | | |
Series 69-B 3.95%, 10/01/43 | | | 5,000 | | | | 4,968,450 | |
Series 69-B 3.55%, 10/01/33 | | | 5,000 | | | | 4,959,950 | |
Series 69-B 3.85%, 10/01/38 | | | 5,000 | | | | 4,979,200 | |
Tobacco Settlement Financing Corp., Refunding RB: | | | | | | | | |
Series A, 5.00%, 06/01/40 | | | 5,000 | | | | 5,116,750 | |
Series B, 4.50%, 06/01/45 | | | 5,000 | | | | 4,600,700 | |
| | | | | | | | |
| | | | 38,686,697 | |
| South Carolina — 1.8% | |
County of Lexington South Carolina Health Services District Inc., RB, Lexington Medical Center, 5.00%, 11/01/41 | | | 10,000 | | | | 10,634,000 | |
County of Spartanburg School District No. 7, GO, Refunding Series B (SCSDE), 5.00%, 03/01/48 | | | 10,000 | | | | 11,308,800 | |
South Carolina Jobs-Economic Development Authority, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/38(b) | | | 10,000 | | | | 10,804,300 | |
South Carolina Ports Authority, ARB, AMT, 5.00%, 07/01/48 | | | 5,450 | | | | 5,915,975 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 47 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| South Carolina (continued) | |
South Carolina Public Service Authority, RB: | | | | | | | | |
Build America Bonds, Series C, 6.45%, 01/01/50 | | $ | 1,475 | | | $ | 1,771,681 | |
Build America Bonds, Series F (AGM), 6.45%, 01/01/50 | | | 5,545 | | | | 6,854,618 | |
Santee Cooper, Series F (AGM), 5.74%, 01/01/30 | | | 5,000 | | | | 5,599,350 | |
Series A, 5.00%, 12/01/49 | | | 10,000 | | | | 10,388,700 | |
South Carolina Public Service Authority, Refunding RB: | | | | | | | | |
Obligations, Series B, 5.00%, 12/01/41 | | | 10,000 | | | | 10,636,000 | |
Santee Cooper, Series D, 5.00%, 12/01/43 | | | 10,000 | | | | 10,286,700 | |
South Carolina State Housing Finance & Development Authority, RB, S/F, Series A: | | | | | | | | |
3.75%, 07/01/43 | | | 6,080 | | | | 5,974,330 | |
3.80%, 01/01/49 | | | 6,350 | | | | 6,204,966 | |
South Carolina State Housing Finance & Development Authority, Refunding RB, S/F (Ginnie Mae, Fannie Mae & Freddie Mac), 3.80%, 07/01/34 | | | 8,000 | | | | 8,051,840 | |
Spartanburg Regional Health Services District, Refunding RB, Series A, 5.00%, 04/15/48 | | | 10,000 | | | | 10,710,800 | |
State of South Carolina Ports Authority, ARB, AMT, 5.00%, 07/01/55 | | | 5,000 | | | | 5,365,550 | |
State of South Carolina Public Service Authority, RB, Series E: | | | | | | | | |
5.00%, 12/01/48 | | | 10,000 | | | | 10,361,400 | |
5.50%, 12/01/53 | | | 5,000 | | | | 5,299,200 | |
State of South Carolina Public Service Authority, Refunding RB: | | | | | | | | |
Santee Cooper, Series A, 5.75%, 12/01/23(d) | | | 5,000 | | | | 5,824,450 | |
Series A, 5.00%, 12/01/50 | | | 10,000 | | | | 10,415,800 | |
Series C, 5.00%, 12/01/46 | | | 10,000 | | | | 10,446,800 | |
| | | | | | | | |
| | | | 162,855,260 | |
| South Dakota — 0.2% | |
South Dakota Housing Development Authority, RB: | | | | | | | | |
M/F, Homeowner Mortgage, Series A, 3.55%, 11/01/33(b) | | | 4,500 | | | | 4,484,385 | |
M/F, Homeowner Mortgage, Series A, 3.80%, 11/01/38(b) | | | 1,070 | | | | 1,069,957 | |
M/F, Homeowner Mortgage, Series A, 3.90%, 05/01/42(b) | | | 2,530 | | | | 2,510,721 | |
S/F, Series B, 4.05%, 11/01/38(b) | | | 6,415 | | | | 6,505,580 | |
S/F, Series B, 4.15%, 05/01/42(b) | | | 5,000 | | | | 5,077,750 | |
| | | | | | | | |
| | | | 19,648,393 | |
| Tennessee — 1.0% | |
County of Knox Tennessee Health Educational & Housing Facility Board, RB, University Health System, Inc.: | | | | | | | | |
5.00%, 04/01/23 | | | 1,000 | | | | 1,079,180 | |
5.00%, 04/01/24 | | | 1,000 | | | | 1,090,530 | |
5.00%, 04/01/25 | | | 1,000 | | | | 1,100,570 | |
5.00%, 04/01/27 | | | 1,400 | | | | 1,551,648 | |
5.00%, 04/01/28 | | | 1,000 | | | | 1,101,650 | |
County of Memphis-Shelby Tennessee Industrial Development Board, Refunding, Tax Allocation Bonds, Subordinate Tax Increment, Series C, 7.00%, 07/01/45 | | | 4,200 | | | | 4,284,252 | |
County of Nashville & Davidson Metropolitan Government, GO, Refunding, 5.00%, 07/01/27 | | | 5,000 | | | | 5,955,050 | |
County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/40 | | | 5,000 | | | | 5,372,600 | |
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/46 | | | 10,000 | | | | 10,676,700 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Tennessee (continued) | |
Tennessee Energy Acquisition Corp., RB, Gas Project, Series A, 4.00%, 05/01/48(c) | | $ | 25,000 | | | $ | 25,889,250 | |
Tennessee Housing Development Agency, RB, S/F: | | | | | | | | |
3.65%, 07/01/45 | | | 11,795 | | | | 11,197,111 | |
Series 4-B, 3.45%, 07/01/40 | | | 1,650 | | | | 1,556,148 | |
Tennessee Housing Development Agency, Refunding RB, S/F, Issue 4: | | | | | | | | |
4.00%, 07/01/43 | | | 10,000 | | | | 10,090,800 | |
4.05%, 01/01/49 | | | 13,205 | | | | 13,304,566 | |
| | | | | | | | |
| | | | 94,250,055 | |
| Texas — 9.5% | |
Arlington Higher Education Finance Corp., RB, Series A, 7.13%, 03/01/44 | | | 1,250 | | | | 1,264,187 | |
Central Texas Turnpike System, Refunding RB, Series C, 5.00%, 08/15/42 | | | 5,000 | | | | 5,265,200 | |
City of Arlington Texas, Special Tax Bonds, Senior Lien, Series A, 5.00%, 02/15/48 | | | 10,000 | | | | 10,919,300 | |
City of Austin Texas Airport System Revenue, ARB, Series A, 5.00%, 11/15/41 | | | 5,000 | | | | 5,497,000 | |
City of Austin Texas Water & Wastewater System Revenue, Refunding RB, 5.00%, 11/15/43 | | | 10,000 | | | | 10,955,700 | |
City of Houston Texas Airport System, ARB,Series B-1, AMT, 5.00%, 07/15/35 | | | 7,400 | | | | 7,870,196 | |
City of Houston Texas Airport System, Refunding ARB, AMT: | | | | | | | | |
Special Facilities, Continental Airlines, Inc., Series A, 6.50%, 07/15/30 | | | 1,000 | | | | 1,078,160 | |
Special Facilities, Continental Airlines, Inc., Series A, 6.63%, 07/15/38 | | | 3,000 | | | | 3,213,480 | |
Subordinate Lien, Series A, 5.00%, 07/01/23 | | | 10,000 | | | | 10,789,300 | |
United Airlines, Inc. Terminal E Project, 5.00%, 07/01/29 | | | 13,000 | | | | 13,952,250 | |
United Airlines, Inc., Airport Improvement Projects, Series C, 5.00%, 07/15/20 | | | 15,950 | | | | 16,458,645 | |
City of Houston Texas Airport System Revenue, Refunding ARB, Subordinate, Series A, AMT: | | | | | | | | |
5.00%, 07/01/34 | | | 5,050 | | | | 5,647,566 | |
5.00%, 07/01/41 | | | 5,000 | | | | 5,489,050 | |
City of Houston Texas Airport System Revenue, Refunding RB,Sub-Series D: | | | | | | | | |
5.00%, 07/01/36 | | | 10,000 | | | | 11,343,600 | |
5.00%, 07/01/37 | | | 5,000 | | | | 5,655,150 | |
5.00%, 07/01/38 | | | 5,000 | | | | 5,638,850 | |
City of Houston Texas Combined Utility System Revenue, Refunding RB, Subordinate First Lien, Series D, 5.00%, 11/15/43 | | | 10,000 | | | | 11,245,800 | |
County of Bexar Texas, GO, Refunding, 5.00%, 06/15/43 | | | 10,000 | | | | 11,041,800 | |
County of Harris Texas, Refunding RB, Senior Lien, Series A, 5.00%, 08/15/41 | | | 5,040 | | | | 5,590,368 | |
County of Harris Texas Cultural Education Facilities Finance Corp., Refunding RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, 4.00%, 01/01/23 (b) | | | 985 | | | | 999,785 | |
Cypress-Fairbanks Independent School District, GO,(PSF-GTD): | | | | | | | | |
5.00%, 02/15/32 | | | 5,000 | | | | 5,816,000 | |
5.00%, 02/15/33 | | | 5,000 | | | | 5,799,400 | |
Dallas Texas Area Rapid Transit, Refunding RB, Series A, 5.00%, 12/01/48 | | | 10,000 | | | | 10,981,300 | |
Dallas-Fort Worth International Airport, ARB, AMT: | | | | | | | | |
Series A, 5.00%, 11/01/45 | | | 5,000 | | | | 5,157,600 | |
Series C, 5.13%, 11/01/43 | | | 5,000 | | | | 5,394,400 | |
Series H, 5.00%, 11/01/45 | | | 10,000 | | | | 10,429,500 | |
| | |
| 48 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Texas (continued) | |
Dallas-Fort Worth International Airport, Refunding ARB, Series D, AMT, 5.00%, 11/01/21 | | $ | 5,000 | | | $ | 5,355,050 | |
Decatur Hospital Authority, Refunding RB, 5.25%, 09/01/44 | | | 1,880 | | | | 1,976,933 | |
Denton Independent School District, GO, School Building(PSF-GTD), 5.00%, 08/15/43 | | | 10,000 | | | | 11,194,200 | |
Duncanville Independent School District, GO, School Building(PSF-GTD), 5.00%, 02/15/45 | | | 10,000 | | | | 10,936,600 | |
Grand Parkway Transportation Corp., RB, Subordinate Tier Toll Revenue Bonds, TELA Supported, Series A: | | | | | | | | |
5.00%, 10/01/43 | | | 25,000 | | | | 27,931,750 | |
5.00%, 10/01/48 | | | 25,000 | | | | 27,776,500 | |
Mission EDC, Refunding RB, Senior Lien, Natural Gasoline Project, AMT, 4.63%, 10/01/31(a) | | | 15,615 | | | | 15,813,623 | |
New Hope Cultural Education Facilities Finance Corp., Refunding RB, Series A: | | | | | | | | |
Children Health System, 5.00%, 08/15/47 | | | 5,745 | | | | 6,300,656 | |
Jubilee Academic, 5.00%, 08/15/36(a) | | | 4,055 | | | | 4,021,790 | |
Jubilee Academic, 5.00%, 08/15/46(a) | | | 4,055 | | | | 3,884,731 | |
North Texas Tollway Authority, Refunding RB: | | | | | | | | |
1st Tier-Series A, 5.00%, 01/01/36 | | | 5,000 | | | | 5,547,500 | |
1st Tier-Series A, 5.00%, 01/01/43 | | | 25,000 | | | | 27,562,750 | |
2nd Tier-Series B, 5.00%, 01/01/43 | | | 5,000 | | | | 5,438,450 | |
2nd Tier-Series B, 5.00%, 01/01/48 | | | 25,000 | | | | 27,063,500 | |
Capital Appreciation, 1st Tier-Series I, 6.20%, 01/01/42 | | | 10,000 | | | | 11,805,700 | |
Pearland Independent School District, GO, Refunding,(PSF-GTD), 5.25%, 02/15/32 | | | 10,000 | | | | 11,495,500 | |
Red River Health Facilities Development Corp., MRB, Eden Home, Inc. Project, 5.63%, 12/15/22(g)(h) | | | 2,570 | | | | 1,599,825 | |
San Antonio Water System, Refunding RB, Junior Lien, Series C, 5.00%, 05/15/46 | | | 10,000 | | | | 11,029,200 | |
State of Texas, GO, Transportation Commission Highway Improvement: | | | | | | | | |
5.00%, 04/01/41 | | | 5,000 | | | | 5,563,900 | |
5.00%, 04/01/44 | | | 10,000 | | | | 10,879,700 | |
5.00%, 04/01/46 | | | 10,000 | | | | 11,027,500 | |
Texas Department of Housing & Community Affairs, RB, Series A (Ginnie Mae), S/F: | | | | | | | | |
Housing Mortgage, 4.25%, 09/01/43 | | | 2,000 | | | | 2,033,520 | |
4.13%, 09/01/38 | | | 3,000 | | | | 3,047,220 | |
4.25%, 09/01/48 | | | 3,350 | | | | 3,391,339 | |
Texas Municipal Gas Acquisition & Supply Corp. I, RB, Senior Lien: | | | | | | | | |
Series B, 2.26%, 12/15/26(c) | | | 23,015 | | | | 22,797,969 | |
Series D, 6.25%, 12/15/26 | | | 46,480 | | | | 53,431,549 | |
Texas Municipal Gas Acquisition & Supply Corp. III, RB: | | | | | | | | |
5.00%, 12/15/26 | | | 5,000 | | | | 5,423,000 | |
5.00%, 12/15/28 | | | 5,000 | | | | 5,385,750 | |
Natural Gas Utility Improvements, 5.00%, 12/15/20 | | | 5,000 | | | | 5,256,850 | |
Natural Gas Utility Improvements, 5.00%, 12/15/23 | | | 10,000 | | | | 10,923,000 | |
Natural Gas Utility Improvements, 5.00%, 12/15/24 | | | 10,000 | | | | 10,908,600 | |
Natural Gas Utility Improvements, 5.00%, 12/15/25 | | | 10,000 | | | | 10,875,300 | |
Natural Gas Utility Improvements, 5.00%, 12/15/29 | | | 5,000 | | | | 5,373,250 | |
Natural Gas Utility Improvements, 5.00%, 12/15/30 | | | 5,000 | | | | 5,358,800 | |
Natural Gas Utility Improvements, 5.00%, 12/15/31 | | | 5,000 | | | | 5,349,500 | |
Natural Gas Utility Improvements, 5.00%, 12/15/32 | | | 10,000 | | | | 10,684,300 | |
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, AMT, Blueridge Transportation Group: | | | | | | | | |
5.00%, 12/31/40 | | | 10,000 | | | | 10,466,300 | |
5.00%, 12/31/45 | | | 19,635 | | | | 20,489,515 | |
5.00%, 12/31/50 | | | 5,000 | | | | 5,208,300 | |
5.00%, 12/31/55 | | | 10,000 | | | | 10,385,700 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Texas (continued) | |
Texas Water Development Board, RB: | | | | | | | | |
Series A, 5.00%, 10/15/47 | | $ | 5,000 | | | $ | 5,611,550 | |
Series B, Water Improvement, Series B, 5.00%, 10/15/38 | | | 25,000 | | | | 28,699,500 | |
Series B, Water Improvement, Series B, 5.00%, 04/15/49 | | | 100,000 | | | | 112,563,000 | |
State Water Implementation Fund, Series A, 5.00%, 10/15/43 | | | 25,000 | | | | 28,260,500 | |
State Water Implementation Fund, Series A, 5.00%, 10/15/45 | | | 10,000 | | | | 11,086,300 | |
State Water Implementation Revenue, 5.00%, 10/15/41 | | | 5,000 | | | | 5,576,700 | |
Town of Flower Mound Texas, Special Assessment Bonds, Riverwalk Public Improvement District No. 1, 6.75%, 09/01/43 | | | 2,000 | | | | 2,006,900 | |
University of Houston, Refunding RB, Series A: | | | | | | | | |
5.00%, 02/15/33 | | | 5,000 | | | | 5,626,400 | |
5.00%, 02/15/34 | | | 5,000 | | | | 5,603,600 | |
5.00%, 02/15/35 | | | 5,000 | | | | 5,583,400 | |
University of Texas System, RB, Series D, 5.00%, 08/15/25 | | | 7,000 | | | | 8,142,120 | |
| | | | | | | | |
| | | | 863,248,677 | |
| Utah — 0.2% | |
City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/47 | | | 5,000 | | | | 5,428,500 | |
Salt Lake City Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/42 | | | 5,000 | | | | 5,445,500 | |
Salt Lake City Corp. Airport Revenue, RB, AMT, Series A, 5.25%, 07/01/48 | | | 5,000 | | | | 5,559,150 | |
Utah State Charter School Finance Authority, RB, Early Light Academy(a): | | | | | | | | |
5.00%, 07/15/34 | | | 530 | | | | 506,717 | |
5.13%, 07/15/49 | | | 4,830 | | | | 4,508,902 | |
| | | | | | | | |
| | | | 21,448,769 | |
| Vermont — 0.1% | |
Vermont Housing Finance Agency, Refunding RB, S/F, Multiple Purpose, Series B: | | | | | | | | |
3.70%, 11/01/29 | | | 2,635 | | | | 2,676,370 | |
4.00%, 11/01/34 | | | 2,355 | | | | 2,385,332 | |
| | | | | | | | |
| | | | 5,061,702 | |
| Virginia — 3.1% | |
Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A: | | | | | | | | |
5.38%, 03/01/36 | | | 1,050 | | | | 1,072,690 | |
5.50%, 03/01/46 | | | 6,210 | | | | 6,344,012 | |
Cherry Hill Virginia Community Development Authority, Special Assessment Bonds, Potomac Shores Project(a): | | | | | | | | |
5.15%, 03/01/35 | | | 1,000 | | | | 1,012,150 | |
5.40%, 03/01/45 | | | 2,000 | | | | 2,025,160 | |
Chesapeake Bay Bridge & Tunnel District, RB, 1st General Resolution Revenue: | | | | | | | | |
5.00%, 07/01/46 | | | 10,000 | | | | 10,762,700 | |
5.00%, 07/01/51 | | | 10,000 | | | | 10,674,600 | |
County of Hanover Virginia EDA, Refunding RB, Covenant Woods: | | | | | | | | |
5.00%, 07/01/38 | | | 125 | | | | 127,705 | |
5.00%, 07/01/48 | | | 365 | | | | 369,811 | |
5.00%, 07/01/51 | | | 410 | | | | 414,543 | |
Series A, 4.00%, 07/01/22 | | | 800 | | | | 811,048 | |
Residential Care Facility, Series A, 5.00%, 07/01/47 | | | 1,985 | | | | 1,997,823 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 49 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Virginia (continued) | |
County of Henrico Virginia EDA, Refunding RB, United Methodist Homes: | | | | | | | | |
5.00%, 06/01/22 | | $ | 625 | | | $ | 661,250 | |
5.00%, 06/01/23 | | | 420 | | | | 442,798 | |
Dulles Town Center Community Development Authority, Refunding, Special Assessment Bonds, Dulles Town Center Project, 4.00%, 03/01/23 | | | 1,000 | | | | 988,430 | |
Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A: | | | | | | | | |
5.00%, 07/01/48 | | | 25,000 | | | | 28,240,750 | |
5.50%, 07/01/57 | | | 25,000 | | | | 29,116,500 | |
Lower Magnolia Green Community Development Authority, Special Assessment Bonds(a): | | | | | | | | |
5.00%, 03/01/35 | | | 2,895 | | | | 2,875,690 | |
5.00%, 03/01/45 | | | 2,970 | | | | 2,893,522 | |
Tobacco Settlement Financing Corp., Refunding RB, SeriesA-1, 6.71%, 06/01/46 | | | 25,650 | | | | 23,854,500 | |
University of Virginia, Refunding RB, Series B, 5.00%, 04/01/44 | | | 10,000 | | | | 11,312,700 | |
Virginia College Building Authority, RB, Marymount University Project, Series B, 5.00%, 07/01/45(a) | | | 3,340 | | | | 3,395,978 | |
Virginia HDA, RB, M/F Housing, Rental Housing, Series B, 4.00%, 06/01/53(b) | | | 1,780 | | | | 1,737,636 | |
Virginia Housing Development Authority, RB, M/F: | | | | | | | | |
Rental Housing, Series A, 3.50%, 06/01/33(b) | | | 1,335 | | | | 1,334,987 | |
Rental Housing, Series A, 3.63%, 06/01/38(b) | | | 3,730 | | | | 3,676,064 | |
Rental Housing, Series A, 3.75%, 06/01/43(b) | | | 4,590 | | | | 4,489,112 | |
Rental Housing, Series A, 3.88%, 06/01/48(b) | | | 5,535 | | | | 5,425,186 | |
Rental Housing, Series A, 4.05%, 08/01/49 | | | 2,345 | | | | 2,356,842 | |
Rental Housing, Series D, 3.80%, 10/01/43 | | | 8,805 | | | | 8,556,083 | |
Rental Housing, Series D, 3.90%, 10/01/48 | | | 4,485 | | | | 4,376,508 | |
Series A, 3.65%, 03/01/43 | | | 5,000 | | | | 4,774,700 | |
Series A, 3.88%, 03/01/45 | | | 6,150 | | | | 6,074,785 | |
Series A, 4.13%, 12/01/46(b) | | | 5,180 | | | | 5,193,520 | |
Series A, 3.75%, 03/01/48 | | | 5,000 | | | | 4,827,250 | |
Series A, 4.15%, 12/01/49(b) | | | 5,865 | | | | 5,895,615 | |
Series A, 3.80%, 03/01/53 | | | 5,000 | | | | 4,698,800 | |
Series C, 3.85%, 08/01/53 | | | 4,110 | | | | 3,898,746 | |
Virginia Port Authority, Refunding RB, AMT, Series B, 5.00%, 07/01/41 | | | 5,000 | | | | 5,459,300 | |
Virginia Small Business Financing Authority, RB, Transform 66 P3 Project, AMT: | | | | | | | | |
5.00%, 12/31/47 | | | 5,000 | | | | 5,237,600 | |
5.00%, 12/31/49 | | | 10,000 | | | | 10,446,100 | |
5.00%, 12/31/52 | | | 25,000 | | | | 26,042,500 | |
5.00%, 12/31/56 | | | 25,000 | | | | 25,970,250 | |
Wise County Virginia IDA, RB, Virginia Electric and Power Co., Series A, 1.88%, 11/01/40(c) | | | 5,000 | | | | 4,964,650 | |
| | | | | | | | |
| | | | 284,830,594 | |
| Washington — 3.0% | |
Central Puget Sound Regional Transit Authority, RB, Green Bond,Series S-1, 5.00%, 11/01/41 | | | 15,000 | | | | 16,748,550 | |
Central Puget Sound Regional Transit Authority, Refunding RB, Green Bond,Series S-1, 5.00%, 11/01/50 | | | 50,000 | | | | 55,161,500 | |
Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A, 5.25%, 09/01/32 | | | 2,255 | | | | 2,277,663 | |
Mason County Public Hospital District No.1, RB, 5.00%, 12/01/48 | | | 10,510 | | | | 11,214,800 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Washington (continued) | |
Port of Seattle Washington, ARB, International Lien, AMT: | | | | | | | | |
Series C, 5.00%, 05/01/20 | | $ | 5,000 | | | $ | 5,195,850 | |
Series C, 5.00%, 05/01/21 | | | 5,000 | | | | 5,315,200 | |
Series C, 5.00%, 05/01/22 | | | 5,000 | | | | 5,424,850 | |
Series C, 5.00%, 05/01/27 | | | 5,000 | | | | 5,724,150 | |
Series D, 5.00%, 05/01/24 | | | 5,000 | | | | 5,581,100 | |
Series D, 5.00%, 05/01/25 | | | 5,000 | | | | 5,661,800 | |
Series D, 5.00%, 05/01/26 | | | 5,000 | | | | 5,698,500 | |
Seattle Housing Authority, Refunding RB, M/F, 3.50%, 12/01/35 | | | 1,500 | | | | 1,458,705 | |
State of Washington, GO: | | | | | | | | |
Refunding, Series C, 5.00%, 07/01/30 | | | 10,000 | | | | 11,243,100 | |
Series A-1, 5.00%, 08/01/40 | | | 5,000 | | | | 5,538,950 | |
Series C, 5.00%, 02/01/39 | | | 10,000 | | | | 11,337,900 | |
Series C, 5.00%, 02/01/41 | | | 10,000 | | | | 11,290,100 | |
Washington Health Care Facilities Authority, RB, Catholic Healthcare, Series A, 5.00%, 02/01/41 | | | 10,000 | | | | 10,264,300 | |
Washington Health Care Facilities Authority, Refunding RB, Providence Health Services, Series C, 5.00%, 10/01/44 | | | 5,000 | | | | 5,359,450 | |
Washington State Convention Center Public Facilities District, RB: | | | | | | | | |
5.00%, 07/01/48 | | | 10,000 | | | | 10,911,200 | |
5.00%, 07/01/58 | | | 50,000 | | | | 54,133,500 | |
5.00%, 07/01/58 | | | 25,000 | | | | 26,778,500 | |
| | | | | | | | |
| | | | 272,319,668 | |
| West Virginia — 1.0% | |
State of West Virginia, GO, State Road, Series B, Group 2: | | | | | | | | |
5.00%, 06/01/40(b) | | | 10,000 | | | | 11,320,500 | |
5.00%, 12/01/40(b) | | | 10,000 | | | | 11,325,700 | |
5.00%, 12/01/41(b) | | | 10,000 | | | | 11,302,400 | |
West Virginia Hospital Finance Authority, Refunding RB, West Virginia United Health System Obligated Group: | | | | | | | | |
5.00%, 06/01/23 | | | 5,000 | | | | 5,515,900 | |
5.00%, 06/01/24 | | | 5,000 | | | | 5,598,400 | |
West Virginia Housing Development Fund, RB, S/F: | | | | | | | | |
Housing Finance, Series A (HUD), 3.85%, 11/01/43 | | | 1,000 | | | | 974,910 | |
Series B, 3.95%, 11/01/34 | | | 8,335 | | | | 8,472,444 | |
West Virginia Housing Development Fund, Refunding RB, AMT, Series A, 3.70%, 11/01/29 | | | 1,280 | | | | 1,302,605 | |
West Virginia Tobacco Settlement Finance Authority, RB, Series A, 7.47%, 06/01/47 | | | 17,105 | | | | 16,591,850 | |
West Virginia United Health System Obligated Group, Series 2018, 4.92%, 06/01/48 | | | 20,000 | | | | 19,806,879 | |
| | | | | | | | |
| | | | 92,211,588 | |
| Wisconsin — 1.3% | |
Public Finance Authority, ARB, Denver International Airport Great Hall Project, AMT: | | | | | | | | |
5.00%, 09/30/37 | | | 5,000 | | | | 5,401,450 | |
5.00%, 09/30/49 | | | 20,000 | | | | 21,278,800 | |
Public Finance Authority, RB(a): | | | | | | | | |
Alabama Proton Therapy Center, Series A, 6.25%, 10/01/31 | | | 1,285 | | | | 1,321,571 | |
Alabama Proton Therapy Center, Series A, 7.00%, 10/01/47 | | | 1,285 | | | | 1,318,808 | |
Delray Beach Radiation Therapy, 7.00%, 11/01/46 | | | 5,085 | | | | 5,318,859 | |
Public Finance Authority, Refunding RB: | | | | | | | | |
Celanese Project, Series C, AMT, 4.30%, 11/01/30(a) | | | 3,000 | | | | 3,032,160 | |
Celanese Project, Series D, 4.05%, 11/01/30(a) | | | 3,175 | | | | 3,136,487 | |
National Gypsum Co., AMT, 4.00%, 08/01/35 | | | 4,840 | | | | 4,499,071 | |
| | |
| 50 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Wisconsin (continued) | |
State of Wisconsin, GO, Series B: | | | | | | | | |
5.00%, 05/01/32 | | $ | 5,000 | | | $ | 5,658,700 | |
5.00%, 05/01/33 | | | 5,000 | | | | 5,646,150 | |
5.00%, 05/01/34 | | | 5,000 | | | | 5,639,900 | |
5.00%, 05/01/36 | | | 5,000 | | | | 5,614,950 | |
State of Wisconsin, Refunding RB, Series C, 3.15%, 05/01/27 | | | 5,435 | | | | 5,236,188 | |
Wisconsin Health & Educational Facilities Authority, RB, Series B, Marshfield Clinic: | | | | | | | | |
Health System, 5.00%, 02/15/42 | | | 10,000 | | | | 10,544,200 | |
Health System, 5.00%, 02/15/46 | | | 5,000 | | | | 5,252,100 | |
5.00%, 02/15/40 | | | 10,000 | | | | 10,512,800 | |
Wisconsin Health & Educational Facilities Authority, Refunding RB: | | | | | | | | |
Ascension Health Credit Group, Series A, 5.00%, 11/15/35 | | | 10,000 | | | | 11,100,600 | |
Thedacare, Inc., 5.00%, 12/15/44 | | | 5,000 | | | | 5,278,600 | |
| | | | | | | | |
| | | | 115,791,394 | |
| Wyoming — 0.1% | |
Wyoming Community Development Authority, RB, S/F, Series 3, 3.70%, 06/01/39 | | | 3,940 | | | | 3,824,085 | |
Wyoming Community Development Authority, Refunding RB: | | | | | | | | |
Series 2, 3.88%, 06/01/34 | | | 1,990 | | | | 2,011,174 | |
Series 3, 4.13%, 12/01/44 | | | 5,360 | | | | 5,456,587 | |
| | | | | | | | |
| | | | 11,291,846 | |
| | | | | | | | |
Total Municipal Bonds — 92.6%
(Cost — $8,497,247,153) | | | | 8,420,365,138 | |
| | | | | | | | |
|
Municipal Bonds Transferred to Tender Option Bond Trusts(j) | |
| Alaska — 0.1% | |
Alaska Housing Finance Corp., RB, S/F, Series A, 3.70%, 12/01/38 | | | 10,000 | | | | 9,832,500 | |
| | | | | | | | |
| Arizona — 0.4% | |
Arizona State University, Refunding RB, Arizona State University System Board of Regents, Series A, 5.00%, 07/01/22(d) | | | 10,000 | | | | 10,977,853 | |
City of Phoenix Arizona Civic Improvement Corp, ARB, AMT, Series A, 5.00%, 07/01/47 | | | 10,000 | | | | 10,918,150 | |
Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 12/01/45 | | | 10,000 | | | | 11,060,500 | |
| | | | | | | | |
| | | | 32,956,503 | |
| California — 3.3% | |
California Educational Facilities Authority, 5.00%, 10/01/46 | | | 10,000 | | | | 11,103,762 | |
California Educational Facilities Authority, RB, California Institute of Technology, 5.00%, 09/01/45 | | | 10,490 | | | | 11,748,058 | |
California Health Facilities Financing Authority, RB, Series A: | | | | | | | | |
Lucile Salter Packard Children’s Hospital at Stanford, 5.00%, 08/15/43 | | | 10,000 | | | | 10,782,555 | |
Stanford Hospital and Clinics, 5.00%, 08/15/51 | | | 10,000 | | | | 10,706,100 | |
Sutter Health, 5.00%, 08/15/52 | | | 10,000 | | | | 10,676,000 | |
California Health Facilities Financing Authority, Refunding RB, Kaiser Permanente,Sub-SeriesA-2, 5.00%, 11/01/47 | | | 10,000 | | | | 12,334,900 | |
California Infrastructure & Economic Development Bank, RB: | | | | | | | | |
5.00%, 05/15/47 | | | 10,000 | | | | 11,259,900 | |
5.00%, 05/15/52 | | | 10,000 | | | | 11,177,200 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| California (continued) | |
California Public Finance Authority, Refunding RB, Sharp Healthcare, Series A, 5.00%, 08/01/47 | | $ | 10,000 | | | $ | 11,142,350 | |
California State Infrastructure Authority, RB, 5.00%, 11/01/41 | | | 10,000 | | | | 10,983,948 | |
Chaffey Joint Union High School District, GO, Election of 2012, Series C, 5.25%, 08/01/47 | | | 10,000 | | | | 11,446,800 | |
Chino Valley Unified School District, GO, Election 2016, Series A, 5.25%, 08/01/47 | | | 10,000 | | | | 11,450,625 | |
City & County of San Francisco California Airports Commission, Refunding ARB, San Francisco International Airport, Series A, AMT, 5.00%, 05/01/44 | | | 10,000 | | | | 10,775,385 | |
City of Los Angeles California Department of Airports, ARB, Series A, AMT, 5.00%, 05/15/45 | | | 10,000 | | | | 10,861,061 | |
City of Los Angeles California Department of Airports, Refunding ARB, Series B, 5.00%, 05/15/35 | | | 10,000 | | | | 10,852,757 | |
City of Los Angeles California Department of Water & Power, RB, Series B, 5.00%, 07/01/43 | | | 10,000 | | | | 10,817,200 | |
City of Los Angeles Department of Airports, ARB, Los Angeles International Airports, Series A, AMT, 5.25%, 05/15/48 | | | 10,000 | | | | 11,242,975 | |
City of San Francisco California Public Utilities Commission Water Revenue, RB, 5.00%, 11/01/37 | | | 10,000 | | | | 10,859,394 | |
Coachella Valley Unified School District/CA, GO, Election 2005, Series F (BAM), 5.00%, 08/01/46 | | | 10,000 | | | | 11,052,400 | |
County of Ventura California Public Financing Authority, Refunding RB, Series A: | | | | | | | | |
5.00%, 11/01/38 | | | 8,450 | | | | 9,236,073 | |
5.00%, 11/01/43 | | | 8,530 | | | | 9,307,708 | |
East Bay Municipal Utility District Water System Revenue, RB, Green Bond, Series A, 5.00%, 06/01/42 | | | 10,000 | | | | 11,367,150 | |
Fresno Unified School District, GO, 5.00%, 08/01/44 | | | 10,000 | | | | 11,143,425 | |
Manteca California Unified School District, GO, 5.00%, 08/01/40 | | | 10,000 | | | | 11,312,686 | |
Port of Los Angeles California, Refunding RB, Harbor Department, Series A, AMT, 5.00%, 08/01/44 | | | 10,000 | | | | 10,897,850 | |
San Marcos Unified School District, GO, Election of 2010, Series C, 5.00%, 08/01/40 | | | 10,000 | | | | 10,965,880 | |
State of California, GO, Various Purposes, 5.00%, 04/01/43 | | | 10,000 | | | | 10,821,350 | |
| | | | | | | | |
| | | | 296,325,492 | |
| Connecticut — 0.2% | |
Connecticut Housing Finance Authority, RB, S/F, Series A, 3.85%, 05/15/45 | | | 10,000 | | | | 9,692,825 | |
State of Connecticut Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45 | | | 10,000 | | | | 10,900,525 | |
| | | | | | | | |
| | | | 20,593,350 | |
| District of Columbia — 0.4% | |
District of Columbia Water & Sewer Authority, RB, Green Bonds, Series A, 5.00%, 10/01/52 | | | 10,000 | | | | 11,082,325 | |
District of Columbia Water & Sewer Authority, RB,Sub-Lien, Series A, 5.00%, 10/01/44 | | | 10,000 | | | | 10,906,900 | |
Metropolitan Washington Airports Authority, ARB, AMT, 5.00%, 10/01/42 | | | 10,000 | | | | 10,980,375 | |
| | | | | | | | |
| | | | 32,969,600 | |
| Florida — 0.7% | |
East Central Regional Wastewater Treatment Facilities Operation Board, Refunding RB, 5.00%, 10/01/44 | | | 10,000 | | | | 11,122,650 | |
Florida Housing Finance Corp., RB, S/F, (Ginnie Mae, Fannie Mae & Freddie Mac): | | | | | | | | |
Series 1 3.80%, 07/01/43(a)(c) | | | 10,000 | | | | 9,673,449 | |
Series 1 3.70%, 07/01/38(a)(c) | | | 10,000 | | | | 9,944,600 | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 51 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Florida (continued) | |
Gainesville & Hall County Hospital Authority, Refunding RB, Northeast Georgia Health Systems, Inc. Project, Series A, 5.50%, 08/15/54 | | $ | 10,000 | | | $ | 11,228,350 | |
Greater Orlando Aviation Authority, AMT, Series A, 5.00%, 10/01/46 | | | 10,000 | | | | 10,846,600 | |
Tampa Bay Water Utility System, RB, 5.00%, 10/01/38 | | | 10,000 | | | | 11,053,500 | |
| | | | | | | | |
| | | | 63,869,149 | |
| Georgia — 0.8% | |
City of Atlanta Georgia Water & Wastewater Revenue, Refunding RB, 5.00%, 11/01/40 | | | 20,000 | | | | 22,102,748 | |
Clarke County Hospital Authority, Refunding RB, Piedmont Heathcare, Inc. Project, Series A, 5.00%, 07/01/46 | | | 10,000 | | | | 10,749,825 | |
County of Georgia Cobb Developmental Authority, RB, Georgia Tech Cobb Research Campus, Series A, 5.00%, 06/01/49 | | | 10,000 | | | | 11,116,950 | |
Georgia Housing & Finance Authority, RB, S/F: | | | | | | | | |
Series B, 3.55%, 12/01/42 | | | 10,000 | | | | 9,324,602 | |
Series B1, 3.65%, 06/01/44 | | | 9,820 | | | | 9,410,310 | |
Georgia Housing & Finance Authority, Refunding RB, S/F,Series A-1, 3.80%, 12/01/40 | | | 10,000 | | | | 9,926,250 | |
| | | | | | | | |
| | | | 72,630,685 | |
| Illinois — 0.1% | |
Illinois State Toll Highway Authority, RB, Series B, 5.00%, 01/01/36 | | | 10,000 | | | | 10,961,050 | |
| | | | | | | | |
| Indiana — 0.2% | |
Indiana Housing & Community Development Authority, RB, S/F, Series A, 3.90%, 07/01/43 | | | 10,000 | | | | 10,029,300 | |
Indiana State Finance Authority, Refunding RB, Franciscan Alliance, Inc., 5.00%, 11/01/41 | | | 10,000 | | | | 10,860,700 | |
| | | | | | | | |
| | | | 20,890,000 | |
| Iowa — 0.1% | |
Iowa Finance Authority, Refunding RB, Green Bonds, 5.00%, 08/01/42 | | | 10,000 | | | | 11,274,825 | |
| | | | | | | | |
| Louisiana — 0.2% | |
New Orleans Aviation Board, Series B, AMT: | | | | | | | | |
5.00%, 01/01/40 | | | 10,000 | | | | 10,643,675 | |
General Apartment, 5.00%, 01/01/48 | | | 10,000 | | | | 10,717,600 | |
| | | | | | | | |
| | | | 21,361,275 | |
| Maine — 0.1% | |
Maine State Housing Authority, RB, S/F, Series B, 3.75%, 11/15/38(a)(c) | | | 10,000 | | | | 9,944,200 | |
| | | | | | | | |
| Maryland — 0.4% | |
City of Baltimore Maryland, RB, Series A, 5.00%, 07/01/43 | | | 10,000 | | | | 10,961,211 | |
Maryland Health & Higher Educational Facilities Authority, RB, Johns Hopkins Health, Series C, 5.00%, 05/15/43 | | | 10,000 | | | | 10,866,497 | |
Maryland Stadium Authority, RB, Construction & Revitalization, 5.00%, 05/01/47 | | | 10,000 | | | | 11,133,925 | |
| | | | | | | | |
| | | | 32,961,633 | |
| Massachusetts — 0.2% | |
Commonwealth of Massachusetts, GO, Series A, 5.00%, 03/01/46 | | | 10,000 | | | | 10,937,550 | |
Massachusetts Development Finance Agency, RB, Partners Healthcare System Issue, SeriesM-4, 5.00%, 07/01/44 | | | 10,000 | | | | 10,635,231 | |
| | | | | | | | |
| | | | 21,572,781 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Michigan — 0.6% | |
Michigan Finance Authority, Refunding RB, Trinity Health Corp., Series 2016, 5.00%, 12/01/45 | | $ | 10,000 | | | $ | 10,859,500 | |
Michigan State Housing Development Authority, RB, Series A: | | | | | | | | |
M/F, 3.80%, 10/01/38(a)(c) | | | 10,000 | | | | 9,767,800 | |
M/F, 4.15%, 10/01/53(a)(c)(i) | | | 20,000 | | | | 19,853,150 | |
S/F, 3.95%, 12/01/35 | | | 9,220 | | | | 9,323,056 | |
| | | | | | | | |
| | | | | | | 49,803,506 | |
| Minnesota — 0.1% | |
Western Minnesota Municipal Power Agency, RB, Series A, 5.00%, 01/01/46 | | | 10,000 | | | | 10,876,836 | |
| | | | | | | | |
| Missouri — 0.5% | |
Health & Educational Facilities Authority of the State of Missouri, RB, BJC Health System, 5.00%, 01/01/44 | | | 10,000 | | | | 10,648,425 | |
Metropolitan St. Louis Sewer District, RB, Series B: | | | | | | | | |
5.00%, 05/01/43 | | | 10,000 | | | | 10,972,400 | |
5.00%, 05/01/45 | | | 10,000 | | | | 11,087,850 | |
Metropolitan State Louis Sewer District, Refunding RB, Series A, 5.00%, 05/01/47 | | | 10,000 | | | | 11,210,225 | |
| | | | | | | | |
| | | | 43,918,900 | |
| Nebraska — 0.2% | |
Nebraska Investment Finance Authority, RB, S/F, Series C: | | | | | | | | |
3.45%, 09/01/33 | | | 10,000 | | | | 9,942,425 | |
3.75%, 09/01/38 | | | 10,000 | | | | 9,971,900 | |
| | | | | | | | |
| | | | 19,914,325 | |
| Nevada — 0.1% | |
Las Vegas Valley Water District, GO, Series B, 5.00%, 06/01/37 | | | 10,000 | | | | 10,776,700 | |
| | | | | | | | |
| New York — 1.8% | |
City of New York Water & Sewer System, RB, 2nd General Resolution, Fiscal 2017, Series DD, 5.00%, 06/15/47 | | | 20,000 | | | | 22,143,250 | |
City of New York Water & Sewer System, Refunding RB, 2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 06/15/47 | | | 10,000 | | | | 10,987,200 | |
Metropolitan Transportation Authority, RB, Green Bonds, Series A, 5.00%, 11/15/42 | | | 10,000 | | | | 11,142,750 | |
Metropolitan Transportation Authority, Refunding RB: | | | | | | | | |
Green Bond, SeriesB-1, 5.00%, 11/15/46 | | | 10,000 | | | | 11,061,875 | |
SeriesC-1, 5.25%, 11/15/56 | | | 10,000 | | | | 10,893,325 | |
New York City Housing Development Corp., RB, M/F: | | | | | | | | |
SeriesA-1, 3.95%, 11/15/44 | | | 10,000 | | | | 10,157,150 | |
SeriesC-1-A, 4.00%, 11/01/53(a)(c) | | | 10,000 | | | | 9,925,200 | |
SeriesC-1-A, 4.13%, 05/01/58(a)(c)(i) | | | 10,000 | | | | 9,990,000 | |
SeriesG-1, 3.90%, 05/01/45 | | | 10,000 | | | | 9,999,700 | |
New York State Dormitory Authority, RB, Series A: | | | | | | | | |
Bid Group 4, 5.00%, 03/15/45(a)(c) | | | 10,000 | | | | 11,179,350 | |
5.00%, 03/15/39 | | | 10,000 | | | | 11,000,331 | |
New York State Dormitory Authority, Refunding RB, Series E, 5.00%, 02/15/39 | | | 10,000 | | | | 10,992,325 | |
Port Authority of New York & New Jersey, RB, 5.00%, 10/15/41 | | | 10,000 | | | | 11,074,025 | |
Utility Debt Securitization Authority, Refunding RB, 5.00%, 12/15/37 | | | 10,000 | | | | 11,232,200 | |
| | | | | | | | |
| | | | 161,778,681 | |
| North Carolina — 0.6% | |
City of Charlotte North Carolina Airport Revenue, ARB, Series A: | | | | | | | | |
5.00%, 07/01/42 | | | 10,000 | | | | 11,202,000 | |
5.00%, 07/01/47 | | | 10,000 | | | | 11,158,975 | |
| | |
| 52 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| North Carolina (continued) | |
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke University Project, Series B, 5.00%, 10/01/55 | | $ | 10,000 | | | $ | 11,084,181 | |
North Carolina Housing Finance Agency, RB, S/F Housing,Series 39-B (Ginnie Mae, Fannie Mae & Freddie Mac): | | | | | | | | |
3.85%, 07/01/38 | | | 10,000 | | | | 10,056,275 | |
4.00%, 01/01/48 | | | 10,000 | | | | 10,020,750 | |
| | | | | | | | |
| | | | 53,522,181 | |
| Ohio — 0.1% | |
University of Cincinnati, Refunding RB, Series A, 5.00%, 06/01/44 | | | 10,000 | | | | 11,164,950 | |
| | | | | | | | |
| Oklahoma — 0.1% | |
Oklahoma Turnpike Authority, RB, 2nd Series C, 5.00%, 01/01/47 | | | 10,000 | | | | 11,036,125 | |
| | | | | | | | |
| Oregon — 0.2% | |
Oregon State Facilities Authority, Refunding RB, Reed College Project, Series A, 5.00%, 07/01/47 | | | 10,000 | | | | 11,143,250 | |
University of Oregon, RB, Series A, 5.00%, 04/01/48 | | | 10,000 | | | | 11,211,500 | |
| | | | | | | | |
| | | | 22,354,750 | |
| Pennsylvania — 0.9% | |
County of Lancaster Pennsylvania Hospital Authority, RB, 5.00%, 08/15/46 | | | 10,000 | | | | 10,829,175 | |
County of Montgomery Maryland, RB, Trinity Health Credit Group, Series MD, 5.00%, 12/01/45 | | | 10,000 | | | | 10,997,275 | |
General Authority of Southcentral Pennsylvania, Refunding RB, Wellspan Health Obligated Group, Series A, 5.00%, 06/01/44 | | | 10,000 | | | | 10,664,268 | |
Pennsylvania Housing Finance Agency, RB, S/F: | | | | | | | | |
Series 125B, 3.65%, 10/01/42(a)(c)(i) | | | 20,000 | | | | 18,986,239 | |
Series 127B, 3.55%, 10/01/33 | | | 10,000 | | | | 9,852,100 | |
Philadelphia Authority for Industrial Development Hospital, RB, The Children’s Hospital of Philadelphia Project, Series A, 5.00%, 07/01/42 | | | 20,000 | | | | 21,668,625 | |
| | | | | | | | |
| | | | 82,997,682 | |
| South Carolina — 0.1% | |
City of Charleston South Carolina Waterworks & Sewer System Revenue, Refunding RB, 5.00%, 01/01/21(d) | | | 10,000 | | | | 10,602,050 | |
| | | | | | | | |
| Tennessee — 0.5% | |
Rutherford County Health & Educational Facilities Board, RB, Ascension Health, Series C, 5.00%, 11/15/47 | | | 10,000 | | | | 10,619,175 | |
Tennessee Housing Development Agency, RB, S/F: | | | | | | | | |
Issue 2C, 3.65%, 07/01/45 | | | 563 | | | | 530,643 | |
Issue 3, 3.85%, 07/01/43(a)(c) | | | 10,000 | | | | 9,751,150 | |
Issue 3, 3.95%, 01/01/49(a)(c) | | | 10,000 | | | | 9,878,225 | |
Tennessee Housing Development Agency, Refunding RB, S/F, Issue 2, 3.85%, 07/01/42 | | | 10,000 | | | | 9,772,175 | |
| | | | | | | | |
| | | | 40,551,368 | |
| Texas — 0.7% | |
Alamo Texas Regional Mobility Authority, RB, Senior Lien, 5.00%, 06/15/46 | | | 10,000 | | | | 10,879,975 | |
City of San Antonio Texas Electric and Gas Systems, RB, Junior Lien, 5.00%, 02/01/48 | | | 10,000 | | | | 10,723,675 | |
County of Harris Texas, Refunding RB, Senior Lien, Series A, 5.00%, 08/15/47 | | | 10,000 | | | | 11,040,125 | |
Midlothian Independent School District, GO,(PSF-GTD), 5.00%, 02/15/47 | | | 10,000 | | | | 11,071,275 | |
Tarrant Regional Water District, Refunding RB, 5.00%, 03/01/52 | | | 10,000 | | | | 10,651,650 | |
| | | | | | | | |
| Security | | Par
(000) | | | Value | |
| Texas (continued) | |
Texas Water Development Board, RB, Series A, 5.00%, 10/15/47 | | $ | 10,000 | | | $ | 11,223,125 | |
| | | | | | | | |
| | | | 65,589,825 | |
| Utah — 0.4% | |
City of Salt Lake Corp. Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/47 | | | 10,000 | | | | 10,857,025 | |
Salt Lake City Corp. Airport Revenue, RB, Series B, 5.00%, 07/01/47 | | | 10,000 | | | | 11,057,225 | |
Utah State Transit Authority Sales Tax, RB, 5.00%, 06/15/38 | | | 10,000 | | | | 11,108,091 | |
| | | | | | | | |
| | | | 33,022,341 | |
| Virginia — 0.8% | |
Chesapeake Bay Bridge & Tunnel District, RB, 1st Tier General Resolution Revenue (AGM), 5.00%, 07/01/41 | | | 10,000 | | | | 11,121,750 | |
City of Norfolk Virginia Water Revenue, Refunding RB, 5.00%, 11/01/42 | | | 10,000 | | | | 11,319,850 | |
County of Fairfax Water Authority, Refunding RB, 5.00%, 04/01/46 | | | 10,000 | | | | 11,249,425 | |
County Of Faitfax Industrial Development Authirity, RB, Inova Health Systems Project, Series A, 5.00%, 05/15/44 | | | 10,000 | | | | 10,829,000 | |
University of Virginia, Refunding RB, SeriesA-2, 5.00%, 04/01/45 | | | 10,000 | | | | 11,144,900 | |
Virginia Housing Development Authority, RB, M/F, Rental Housing, Series D: | | | | | | | | |
3.90%, 10/01/48(a)(c) | | | 10,000 | | | | 9,758,150 | |
4.00%, 10/01/53(a)(c) | | | 10,000 | | | | 9,929,699 | |
| | | | | | | | |
| | | | 75,352,774 | |
| Washington — 0.7% | |
King County Housing Authority, Refunding RB, Ballinger Commons Apartments, 3.50%, 05/01/38 | | | 10,000 | | | | 9,432,669 | |
Port of Seattle Washington, GO, 5.00%, 01/01/42 | | | 10,000 | | | | 11,191,775 | |
State of Washington, GO, Series A: | | | | | | | | |
5.00%, 02/01/33 | | | 10,000 | | | | 11,171,350 | |
5.00%, 08/01/38 | | | 10,000 | | | | 10,937,833 | |
Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services, Series D, 5.00%, 10/01/38 | | | 10,000 | | | | 10,814,671 | |
Washington State Convention Center Public Facilities District, RB, 5.00%, 07/01/58(a)(c) | | | 10,000 | | | | 10,826,700 | |
| | | | | | | | |
| | | | 64,374,998 | |
| Wisconsin — 0.4% | |
Wisconsin Health & Educational Facilities Authority, RB, Ascension Health, Series D, 5.00%, 11/15/41 | | | 10,000 | | | | 10,634,225 | |
Wisconsin Health & Educational Facilities Authority, Refunding RB: | | | | | | | | |
Froedtert & Community Health, Inc., Obligated Group, Series A, 5.00%, 04/01/42 | | | 10,000 | | | | 10,579,087 | |
Thedacare Inc., 5.00%, 12/15/44 | | | 10,000 | | | | 10,556,475 | |
| | | | | | | | |
| | | | 31,769,787 | |
| | | | | | | | |
Total Municipal Bonds Transferred to Tender Option Bond Trusts — 16.0%
(Cost — $1,465,054,554) | | | | 1,457,550,822 | |
| | | | | | | | |
| | | | |
| SCHEDULES OF INVESTMENTS | | | 53 | |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund (Percentages shown are based on Net Assets) |
| | | | | | | | |
| | |
| | | Shares | | | Value | |
Investment Companies — 0.2% | |
SPDR Nuveen S&P High Yield Municipal Bond ETF | | | 100,000 | | | $ | 5,562,000 | |
VanEck Vectors High-Yield Municipal Index ETF | | | 150,000 | | | | 9,127,500 | |
| | | | | | | | |
Total Investment Companies — 0.2%
(Cost — $14,623,500) | | | | 14,689,500 | |
| | | | | | | | |
Total Long-Term Investments — 110.5%
(Cost — $10,141,482,187) | | | | 10,050,868,401 | |
| | | | | | | | |
|
Short-Term Securities — 0.9% | |
BlackRock Liquidity Funds, MuniCash, Institutional Class, 1.55%(k)(l) | | | 84,596,098 | | | | 84,604,558 | |
| | | | | | | | |
Total Short-Term Securities — 0.9%
(Cost — $84,604,451) | | | | 84,604,558 | |
| | | | | | | | |
| |
Total Investments — 111.4%
(Cost — $10,226,086,638) | | | | 10,135,472,959 | |
Liabilities in Excess of Other Assets — (0.8)% | | | | (73,834,231 | ) |
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (10.6)% | | | | (964,882,014 | ) |
| | | | | | | | |
Net Assets — 100.0% | | | $ | 9,096,756,714 | |
| | | | | | | | |
| (a) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (b) | When-issued security. |
| (c) | Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end. |
| (d) | U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (f) | Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end. |
| (g) | Non-income producing security. |
| (h) | Issuer filed for bankruptcy and/or is in default. |
| (i) | All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire between October 1, 2035 to November 1, 2048, is $23,112,813. |
| (j) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (k) | Annualized7-day yield as of period end. |
| (l) | During the six months ended November 30, 2018, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Affiliate Persons and/or Related Parties | | Shares Held at
05/31/18 | | | Shares Purchased | | | Shares Sold | | | Shares
Held at
11/30/18 | | | Value at
11/30/18 | | |
Income | | | Net
Realized
Gain (Loss) (a) | | | Change in
Unrealized
Appreciation
(Depreciation) | |
BlackRock Liquidity Funds, MuniCash, Institutional Class | | | 107,978,271 | | | | — | | | | (23,382,173 | )(b) | | | 84,596,098 | | | $ | 84,604,558 | | | $ | 1,165,490 | | | $ | (3,545 | ) | | $ | (2,811 | ) |
iShares National Municipal Bond Fund | | | 2,500,000 | | | | 700,000 | | | | (3,200,000 | ) | | | — | | | | — | | | | 2,799,288 | | | | (3,064,303 | ) | | | (1,202,825 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 84,604,558 | | | $ | 3,964,778 | | | $ | (3,067,848 | ) | | $ | (1,205,636 | ) |
| | | | | | | | | | | | | | | | | |
| | (a) | Includes net capital gain distributions, if applicable. | |
| | (b) | Represents net shares sold | |
For Fund compliance purposes, the sector classifications refer to one or more of the sectorsub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sectorsub-classifications for reporting ease.
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| | | | | | | | | | | | | | | | |
| Description | | Number of Contracts | | | Expiration
Date | | | Notional
Amount (000) | | | Value/
Unrealized
Appreciation
(Depreciation) | |
Short Contracts: | | | | | | | | | | | | | | | | |
10-Year U.S. Treasury Note | | | 7,873 | | | | 03/20/19 | | | $ | 940,454 | | | $ | (2,343,977 | ) |
Long U.S. Treasury Bond | | | 15,463 | | | | 03/20/19 | | | | 2,163,370 | | | | (9,590,303 | ) |
5-Year U.S. Treasury Note | | | 2,113 | | | | 03/29/19 | | | | 238,686 | | | | (304,993 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | $ | (12,239,273 | ) |
| | | | | | | | | | | | | | | | |
| | |
| 54 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
| | |
Schedule of Investments (unaudited) (continued) November 30, 2018 | | BlackRock Strategic Municipal Opportunities Fund |
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Commodity Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Foreign
Currency
Exchange
Contracts | | | Interest Rate Contracts | | | Other
Contracts | | | Total | |
Liabilities — Derivative Financial Instruments | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized appreciation(a) | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 12,239,273 | | | $ | — | | | $ | 12,239,273 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (a) | Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities. | |
For the six months ended November 30, 2018, the effect of derivative financial instruments in the Statements of Operations was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Commodity Contracts | | | Credit
Contracts | | | Equity
Contracts | | | Foreign
Currency
Exchange
Contracts | | | Interest Rate Contracts | | | Other
Contracts | | | Total | |
Net Realized Gain (Loss) from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 46,736,670 | | | $ | — | | | $ | 46,736,670 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Change in Unrealized Appreciation (Depreciation) on: | | | | | | | | | | | | | | | | | | | |
Futures contracts | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 23,699,708 | | | $ | — | | | $ | 23,699,708 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| | | | |
Futures contracts: | |
Average notional value of contracts — short | | $ | 3,008,032,361 | |
For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.
The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:
| | | | | | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | | | Total | |
Assets: | |
Investments: | |
Long-Term Investments(a) | | $ | 14,689,500 | | | $ | 10,036,178,901 | | | $ | — | | | $ | 10,050,868,401 | |
Short-Term Securities | | | 84,604,558 | | | | — | | | | — | | | | 84,604,558 | |
| | | | | | | | | | | | | | | | |
| | $ | 99,294,058 | | | $ | 10,036,178,901 | | | $ | — | | | $ | 10,135,472,959 | |
| | | | | | | | | | | | | | | | |
Derivative Financial Instruments (b) | |
Liabilities: | |
Interest rate contracts | | $ | (12,239,273 | ) | | $ | — | | | $ | — | | | $ | (12,239,273 | ) |
| | | | | | | | | | | | | | | | |
| | (a) | See above Schedule of Investments for values in each sector, state or political subdivision. | |
| | (b) | Derivative financial instruments are futures contracts which are valued at the unrealized appreciation (depreciation) on the instrument. | |
The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $960,842,452are categorized as Level 2 within the disclosure hierarchy.
During the six months ended November 30, 2018, there were no transfers between levels.
See notes to financial statements.
| | | | |
| SCHEDULES OF INVESTMENTS | | | 55 | |
Statements of Assets and Liabilities (unaudited)
November 30, 2018
| | | | | | | | | | | | | | | | |
| | | BlackRock
California Municipal
Opportunities Fund | | | BlackRock New
Jersey Municipal
Bond Fund | | | BlackRock
Pennsylvania
Municipal
Bond Fund | | | BlackRock
Strategic Municipal
Opportunities Fund | |
|
ASSETS | |
Investments at value — unaffiliated(a) | | $ | 2,802,387,845 | | | $ | 291,220,143 | | | $ | 557,772,813 | | | $ | 10,050,868,401 | |
Investments at value — affiliated(b) | | | 51,019,423 | | | | 5,827,644 | | | | 3,556,100 | | | | 84,604,558 | |
Cash | | | 140,627 | | | | — | | | | — | | | | — | |
Cash pledged for futures contracts | | | 12,609,900 | | | | 457,000 | | | | 791,750 | | | | 45,721,800 | |
Receivables: | |
Investments sold | | | 42,119,049 | | | | 355,000 | | | | 435,000 | | | | 151,234,947 | |
Interest — unaffiliated | | | 31,144,991 | | | | 4,467,321 | | | | 8,058,968 | | | | 132,009,119 | |
Capital shares sold | | | 10,443,212 | | | | 1,491,738 | | | | 959,073 | | | | 36,908,147 | |
From the Manager | | | 19,899 | | | | — | | | | — | | | | 82,470 | |
Dividends — affiliated | | | 102 | | | | 7,331 | | | | 8,079 | | | | 94,229 | |
Deferred offering costs | | | 6,450 | | | | 6,450 | | | | 6,450 | | | | 6,450 | |
Prepaid expenses | | | 64,565 | | | | 26,268 | | | | 25,059 | | | | 404,937 | |
| | | | | | | | | | | | | | | | |
Total assets | | | 2,949,956,063 | | | | 303,858,895 | | | | 571,613,292 | | | | 10,501,935,058 | |
| | | | | | | | | | | | | | | | |
|
ACCRUED LIABILITIES | |
Bank overdraft | | | — | | | | — | | | | — | | | | 3,919 | |
Payables: | |
Investments purchased | | | 57,232,018 | | | | 1,597,013 | | | | 7,755,854 | | | | 381,150,911 | |
Capital shares redeemed | | | 10,463,767 | | | | 1,430,398 | | | | 1,278,938 | | | | 35,433,334 | |
Variation margin on futures contracts | | | 2,079,816 | | | | 66,012 | | | | 121,752 | | | | 7,455,071 | |
Income dividend distributions | | | 2,028,158 | | | | 423,088 | | | | 923,552 | | | | 8,893,116 | |
Investment advisory fees | | | 767,918 | | | | 86,658 | | | | 168,596 | | | | 3,337,125 | |
Interest expense and fees | | | 562,016 | | | | 95,020 | | | | 347,715 | | | | 4,039,562 | |
Service and distribution fees | | | 273,442 | | | | 41,522 | | | | 45,910 | | | | 561,133 | |
Recoupment of past waived fees | | | 126,340 | | | | — | | | | — | | | | — | |
Board realignment and consolidation | | | 19,899 | | | | 6,193 | | | | 8,858 | | | | 82,470 | |
Offering costs | | | 8,384 | | | | 13,767 | | | | 11,991 | | | | 5,218 | |
Trustees’ and Officer’s fees | | | 4,485 | | | | 3,174 | | | | 3,502 | | | | 10,448 | |
Other affiliates | | | 3,898 | | | | 806 | | | | 1,334 | | | | 13,347 | |
Other accrued expenses | | | 819,840 | | | | 241,607 | | | | 352,651 | | | | 3,350,238 | |
| | | | | | | | | | | | | | | | |
Total accrued liabilities | | | 74,389,981 | | | | 4,005,258 | | | | 11,020,653 | | | | 444,335,892 | |
| | | | | | | | | | | | | | | | |
|
OTHER LIABILITIES | |
TOB Trust Certificates | | | 229,542,157 | | | | 16,418,726 | | | | 71,297,070 | | | | 956,541,952 | |
Loan for TOB Trust Certificates | | | — | | | | — | | | | — | | | | 4,300,500 | |
| | | | | | | | | | | | | | | | |
Total other liabilities | | | 229,542,157 | | | | 16,418,726 | | | | 71,297,070 | | | | 960,842,452 | |
| | | | | | | | | | | | | | | | |
Total liabilities | | | 303,932,138 | | | | 20,423,984 | | | | 82,317,723 | | | | 1,405,178,344 | |
| | | | | | | | | | | | | | | | |
| | | | |
NET ASSETS | | $ | 2,646,023,925 | | | $ | 283,434,911 | | | $ | 489,295,569 | | | $ | 9,096,756,714 | |
| | | | | | | | | | | | | | | | |
|
NET ASSETS CONSIST OF | |
Paid-in capital | | $ | 2,616,508,684 | | | $ | 275,882,217 | | | $ | 493,297,490 | | | $ | 9,078,223,829 | |
Accumulated earnings (loss) | | | 29,515,241 | | | | 7,552,694 | | | | (4,001,921 | ) | | | 18,532,885 | |
| | | | | | | | | | | | | | | | |
| | | | |
NET ASSETS | | $ | 2,646,023,925 | | | $ | 283,434,911 | | | $ | 489,295,569 | | | $ | 9,096,756,714 | |
| | | | | | | | | | | | | | | | |
| | | | |
(a) Investments at cost — unaffiliated | | $ | 2,808,150,568 | | | $ | 280,685,539 | | | $ | 550,381,029 | | | $ | 10,141,482,187 | |
(b) Investments at cost — affiliated | | $ | 51,019,423 | | | $ | 5,827,549 | | | $ | 3,556,100 | | | $ | 84,604,451 | |
See notes to financial statements.
| | |
| 56 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Assets and Liabilities (unaudited) (continued)
November 30, 2018
| | | | | | | | | | | | | | | | |
| | | BlackRock
California Municipal
Opportunities Fund | | | BlackRock New
Jersey Municipal
Bond Fund | | | BlackRock
Pennsylvania
Municipal
Bond Fund | | | BlackRock
Strategic Municipal
Opportunities Fund | |
|
NET ASSET VALUE | |
|
Institutional | |
Net assets | | $ | 1,580,682,403 | | | $ | 153,502,919 | | | $ | 345,758,862 | | | $ | 7,098,738,534 | |
| | | | | | | | | | | | | | | | |
Shares outstanding(c) | | | 125,214,518 | | | | 14,130,790 | | | | 32,192,399 | | | | 612,830,992 | |
| | | | | | | | | | | | | | | | |
Net asset value | | $ | 12.62 | | | $ | 10.86 | | | $ | 10.74 | | | $ | 11.58 | |
| | | | | | | | | | | | | | | | |
|
Service | |
Net assets | | $ | — | | | $ | 7,628,614 | | | $ | 1,181,536 | | | $ | — | |
| | | | | | | | | | | | | | | | |
Shares outstanding(c) | | | — | | | | 702,264 | | | | 109,893 | | | | — | |
| | | | | | | | | | | | | | | | |
Net asset value | | $ | — | | | $ | 10.86 | | | $ | 10.75 | | | $ | — | |
| | | | | | | | | | | | | | | | |
|
Investor A | |
Net assets | | $ | 775,898,644 | | | $ | 72,341,791 | | | $ | 99,368,700 | | | $ | 1,605,012,739 | |
| | | | | | | | | | | | | | | | |
Shares outstanding(c) | | | 61,519,026 | | | | 6,653,989 | | | | 9,241,606 | | | | 138,621,657 | |
| | | | | | | | | | | | | | | | |
Net asset value | | $ | 12.61 | | | $ | 10.87 | | | $ | 10.75 | | | $ | 11.58 | |
| | | | | | | | | | | | | | | | |
|
Investor A1 | |
Net assets | | $ | 113,004,471 | | | $ | 19,599,321 | | | $ | 10,599,046 | | | $ | 28,166,912 | |
| | | | | | | | | | | | | | | | |
Shares outstanding(c) | | | 8,952,287 | | | | 1,802,126 | | | | 985,378 | | | | 2,432,117 | |
| | | | | | | | | | | | | | | | |
Net asset value | | $ | 12.62 | | | $ | 10.88 | | | $ | 10.76 | | | $ | 11.58 | |
| | | | | | | | | | | | | | | | |
|
Investor C | |
Net assets | | $ | 136,097,841 | | | $ | 28,517,967 | | | $ | 29,516,590 | | | $ | 280,870,477 | |
| | | | | | | | | | | | | | | | |
Shares outstanding(c) | | | 10,780,295 | | | | 2,625,914 | | | | 2,745,699 | | | | 24,248,563 | |
| | | | | | | | | | | | | | | | |
Net asset value | | $ | 12.62 | | | $ | 10.86 | | | $ | 10.75 | | | $ | 11.58 | |
| | | | | | | | | | | | | | | | |
|
Investor C1 | |
Net assets | | $ | 196,226 | | | $ | 21,627 | | | $ | 154,386 | | | $ | — | |
| | | | | | | | | | | | | | | | |
Shares outstanding(c) | | | 15,549 | | | | 1,991 | | | | 14,377 | | | | — | |
| | | | | | | | | | | | | | | | |
Net asset value | | $ | 12.62 | | | $ | 10.86 | | | $ | 10.74 | | | $ | — | |
| | | | | | | | | | | | | | | | |
|
Class K | |
Net assets | | $ | 40,144,340 | | | $ | 1,822,672 | | | $ | 2,716,449 | | | $ | 83,968,052 | |
| | | | | | | | | | | | | | | | |
Shares outstanding(c) | | | 3,178,947 | | | | 167,847 | | | | 252,992 | | | | 7,248,546 | |
| | | | | | | | | | | | | | | | |
Net asset value | | $ | 12.63 | | | $ | 10.86 | | | $ | 10.74 | | | $ | 11.58 | |
| | | | | | | | | | | | | | | | |
|
(c) Unlimited number of shares authorized, $0.10 par value | |
See notes to financial statements.
Statements of Operations (unaudited)
Six Months Ended November 30, 2018
| | | | | | | | | | | | | | | | |
| | | BlackRock
California Municipal
Opportunities Fund | | | BlackRock
New Jersey
Municipal
Bond Fund | | | BlackRock
Pennsylvania
Municipal
Bond Fund | | | BlackRock
Strategic Municipal
Opportunities Fund | |
|
INVESTMENT INCOME | |
Interest — unaffiliated | | $ | 37,134,908 | | | $ | 6,224,928 | | | $ | 12,084,610 | | | $ | 159,745,948 | |
Dividends — affiliated | | | 1,763,687 | | | | 64,665 | | | | 27,867 | | | | 3,964,778 | |
Dividends — unaffiliated | | | — | | | | — | | | | — | | | | 269,979 | |
| | | | | | | | | | | | | | | | |
Total investment income | | | 38,898,595 | | | | 6,289,593 | | | | 12,112,477 | | | | 163,980,705 | |
| | | | | | | | | | | | | | | | |
|
EXPENSES | |
Investment advisory | | | 4,473,025 | | | | 757,717 | | | | 1,304,008 | | | | 21,386,097 | |
Service and distribution — class specific | | | 1,601,364 | | | | 265,117 | | | | 289,190 | | | | 3,350,254 | |
Transfer agent — class specific | | | 511,427 | | | | 127,415 | | | | 308,501 | | | | 2,712,405 | |
Accounting services | | | 188,078 | | | | 40,874 | | | | 64,328 | | | | 536,114 | |
Registration | | | 87,714 | | | | 14,982 | | | | 13,958 | | | | 455,975 | |
Professional | | | 49,383 | | | | 35,151 | | | | 37,890 | | | | 121,572 | |
Custodian | | | 37,449 | | | | 4,563 | | | | 7,938 | | | | 108,513 | |
Offering | | | 21,083 | | | | 21,083 | | | | 21,083 | | | | 21,083 | |
Trustees and Officer | | | 18,990 | | | | 8,775 | | | | 9,903 | | | | 49,968 | |
Printing | | | 12,696 | | | | 15,534 | | | | 18,828 | | | | 29,925 | |
Board realignment and consolidation | | | 14,986 | | | | 4,797 | | | | 6,859 | | | | 62,107 | |
Miscellaneous | | | 23,868 | | | | 19,726 | | | | 20,701 | | | | 132,852 | |
Recoupment of past waived and/or reimbursed fees — class specific | | | 116,205 | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Total expenses excluding interest expense and fees | | | 7,156,268 | | | | 1,315,734 | | | | 2,103,187 | | | | 28,966,865 | |
Interest expense and fees(a) | | | 1,881,108 | | | | 178,141 | | | | 738,449 | | | | 9,331,369 | |
| | | | | | | | | | | | | | | | |
Total expenses | | | 9,037,376 | | | | 1,493,875 | | | | 2,841,636 | | | | 38,298,234 | |
Less: | | | | | | | | | | | | | | | | |
Fees waived and/or reimbursed by the Manager | | | (228,917 | ) | | | (233,488 | ) | | | (269,802 | ) | | | (2,675,615 | ) |
Transfer agent fees waived and/or reimbursed — class specific | | | (5,515 | ) | | | (55,671 | ) | | | (183,948 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed | | | 8,802,944 | | | | 1,204,716 | | | | 2,387,886 | | | | 35,622,619 | |
| | | | | | | | | | | | | | | | |
Net investment income | | | 30,095,651 | | | | 5,084,877 | | | | 9,724,591 | | | | 128,358,086 | |
| | | | | | | | | | | | | | | | |
|
REALIZED AND UNREALIZED GAIN (LOSS) | |
Net realized gain (loss) from: | |
Investments — unaffiliated | | | (4,229,003 | ) | | | (470,801 | ) | | | 503,009 | | | | (9,582,606 | ) |
Investments — affiliated | | | (1,594,682 | ) | | | 397 | | | | 1,204 | | | | (3,067,848 | ) |
Futures contracts | | | 12,852,718 | | | | 27,511 | | | | 237,202 | | | | 46,736,670 | |
| | | | | | | | | | | | | | | | |
| | | 7,029,033 | | | | (442,893 | ) | | | 741,415 | | | | 34,086,216 | |
| | | | | | | | | | | | | | | | |
Net change in unrealized appreciation (depreciation) on: | |
Investments — unaffiliated | | | (38,667,815 | ) | | | (4,622,120 | ) | | | (11,925,663 | ) | | | (178,532,852 | ) |
Investments — affiliated | | | (206,753 | ) | | | (401 | ) | | | (827 | ) | | | (1,205,636 | ) |
Futures contracts | | | 5,591,119 | | | | 79,471 | | | | 146,992 | | | | 23,699,708 | |
| | | | | | | | | | | | | | | | |
| | | (33,283,449 | ) | | | (4,543,050 | ) | | | (11,779,498 | ) | | | (156,038,780 | ) |
| | | | | | | | | | | | | | | | |
Net realized and unrealized loss | | | (26,254,416 | ) | | | (4,985,943 | ) | | | (11,038,083 | ) | | | (121,952,564 | ) |
| | | | | | | | | | | | | | | | |
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | | $ | 3,841,235 | | | $ | 98,934 | | | $ | (1,313,492 | ) | | $ | 6,405,522 | |
| | | | | | | | | | | | | | | | |
| (a) | Related to TOB Trusts. |
See notes to financial statements.
| | |
| 58 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets
| | | | | | | | |
| | | BlackRock California Municipal
Opportunities Fund | |
| | | Six Months Ended
11/30/18
(unaudited) | | | Year Ended
05/31/18 | |
|
INCREASE (DECREASE) IN NET ASSETS | |
|
OPERATIONS | |
Net investment income | | $ | 30,095,651 | | | $ | 41,350,990 | |
Net realized gain | | | 7,029,033 | | | | 45,057,540 | |
Net change in unrealized appreciation (depreciation) | | | (33,283,449 | ) | | | (18,478,872 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 3,841,235 | | | | 67,929,658 | |
| | | | | | | | |
|
DISTRIBUTIONS(a)(b) | |
Institutional | | | (18,780,669 | ) | | | (26,318,008 | ) |
Investor A | | | (8,329,829 | ) | | | (14,115,090 | ) |
Investor A1 | | | (1,464,301 | ) | | | (3,591,749 | ) |
Investor C | | | (1,051,097 | ) | | | (2,341,538 | ) |
Investor C1 | | | (21,013 | ) | | | (63,344 | ) |
Class K | | | (574,364 | ) | | | (64,324 | ) |
| | | | | | | | |
Decrease in net assets resulting from distributions to shareholders | | | (30,221,273 | ) | | | (46,494,053 | ) |
| | | | | | | | |
|
CAPITAL SHARE TRANSACTIONS | |
Net increase in net assets derived from capital share transactions | | | 569,218,666 | | | | 789,622,883 | |
| | | | | | | | |
|
NET ASSETS(b) | |
Total increase in net assets | | | 542,838,628 | | | | 811,058,488 | |
Beginning of period | | | 2,103,185,297 | | | | 1,292,126,809 | |
| | | | | | | | |
End of period | | $ | 2,646,023,925 | | | $ | 2,103,185,297 | |
| | | | | | | | |
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (b) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
Statements of Changes in Net Assets (continued)
| | | | | | | | |
| | | BlackRock New Jersey Municipal
Bond Fund | |
| | | Six Months Ended
11/30/18
(unaudited) | | | Year Ended
05/31/18 | |
| | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | |
|
OPERATIONS | |
Net investment income | | $ | 5,084,877 | | | $ | 9,846,571 | |
Net realized gain (loss) | | | (442,893 | ) | | | 1,809,015 | |
Net change in unrealized appreciation (depreciation) | | | (4,543,050 | ) | | | (2,081,650 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 98,934 | | | | 9,573,936 | |
| | | | | | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS(a)(b) | |
Institutional | | | (2,892,969 | ) | | | (5,466,207 | ) |
Service | | | (134,967 | ) | | | (279,012 | ) |
Investor A | | | (1,293,737 | ) | | | (2,579,621 | ) |
Investor A1 | | | (364,492 | ) | | | (756,468 | ) |
Investor C | | | (399,681 | ) | | | (759,230 | ) |
Investor C1 | | | (18,406 | ) | | | (41,155 | ) |
Class K | | | (34,315 | ) | | | (13,422 | ) |
| | | | | | | | |
Decrease in net assets resulting from distributions to shareholders | | | (5,138,567 | ) | | | (9,895,115 | ) |
| | | | | | | | |
|
CAPITAL SHARE TRANSACTIONS | |
Net increase in net assets derived from capital share transactions | | | 2,061,238 | | | | 4,258,527 | |
| | | | | | | | |
|
NET ASSETS(b) | |
Total increase (decrease) in net assets | | | (2,978,395 | ) | | | 3,937,348 | |
Beginning of period | | | 286,413,306 | | | | 282,475,958 | |
| | | | | | | | |
End of period | | $ | 283,434,911 | | | $ | 286,413,306 | |
| | | | | | | | |
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (b) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
| | |
| 60 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statements of Changes in Net Assets (continued)
| | | | | | | | |
| | | BlackRock Pennsylvania Municipal
Bond Fund | |
| | | Six Months Ended
11/30/18
(unaudited) | | | Year Ended
05/31/18 | |
| | |
INCREASE (DECREASE) IN NET ASSETS | | | | | | | | |
|
OPERATIONS | |
Net investment income | | $ | 9,724,591 | | | $ | 19,326,577 | |
Net realized gain | | | 741,415 | | | | 1,185,927 | |
Net change in unrealized (depreciation) | | | (11,779,498 | ) | | | (11,247,491 | ) |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | (1,313,492 | ) | | | 9,265,013 | |
| | | | | | | | |
|
DISTRIBUTIONS(a)(b) | |
Institutional | | | (7,154,344 | ) | | | (13,256,749 | ) |
Service | | | (31,423 | ) | | | (58,703 | ) |
Investor A | | | (1,818,583 | ) | | | (4,371,905 | ) |
Investor A1 | | | (253,631 | ) | | | (578,208 | ) |
Investor C | | | (470,206 | ) | | | (1,019,422 | ) |
Investor C1 | | | (23,772 | ) | | | (54,763 | ) |
Class K | | | (51,155 | ) | | | (19,222 | ) |
| | | | | | | | |
Decrease in net assets resulting from distributions to shareholders | | | (9,803,114 | ) | | | (19,358,972 | ) |
| | | | | | | | |
|
CAPITAL SHARE TRANSACTIONS | |
Net increase (decrease) in net assets derived from capital share transactions | | | (6,035,664 | ) | | | 35,884,999 | |
| | | | | | | | |
|
NET ASSETS(b) | |
Total increase (decrease) in net assets | | | (17,152,270 | ) | | | 25,791,040 | |
Beginning of period | | | 506,447,839 | | | | 480,656,799 | |
| | | | | | | | |
End of period | | $ | 489,295,569 | | | $ | 506,447,839 | |
| | | | | | | | |
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (b) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
Statements of Changes in Net Assets (continued)
| | | | | | | | |
| | | BlackRock Strategic Municipal
Opportunities Fund | |
| | | Six Months Ended
11/30/18
(unaudited) | | | Year Ended
05/31/18 | |
|
INCREASE (DECREASE) IN NET ASSETS | |
|
OPERATIONS | |
Net investment income | | $ | 128,358,086 | | | $ | 161,179,703 | |
Net realized gain | | | 34,086,216 | | | | 144,732,946 | |
Net change in unrealized appreciation (depreciation) | | | (156,038,780 | ) | | | (52,826,778 | ) |
| | | | | | | | |
Net increase in net assets resulting from operations | | | 6,405,522 | | | | 253,085,871 | |
| | | | | | | | |
|
DISTRIBUTIONS TO SHAREHOLDERS(a)(b) | |
Institutional | | | (102,403,759 | ) | | | (122,949,305 | ) |
Investor A | | | (22,345,081 | ) | | | (31,688,920 | ) |
Investor A1 | | | (433,486 | ) | | | (826,386 | ) |
Investor C | | | (2,928,385 | ) | | | (4,744,212 | ) |
Class K | | | (1,149,129 | ) | | | (286,704 | ) |
| | | | | | | | |
Decrease in net assets resulting from distributions to shareholders | | | (129,259,840 | ) | | | (160,495,527 | ) |
| | | | | | | | |
|
CAPITAL SHARE TRANSACTIONS | |
Net increase in net assets derived from capital share transactions | | | 1,623,928,830 | | | | 2,658,424,815 | |
| | | | | | | | |
|
NET ASSETS(b) | |
Total increase in net assets | | | 1,501,074,512 | | | | 2,751,015,159 | |
Beginning of period | | | 7,595,682,202 | | | | 4,844,667,043 | |
| | | | | | | | |
End of period | | $ | 9,096,756,714 | | | $ | 7,595,682,202 | |
| | | | | | | | |
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (b) | Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year RegulationS-X presentation changes. Refer to Note 12 for this prior year information. |
See notes to financial statements.
| | |
| 62 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Statement of Cash Flows (unaudited)
Six Months Ended November 30, 2018
| | | | |
| | | BlackRock
Pennsylvania
Municipal Bond
Fund | |
|
CASH PROVIDED BY OPERATING ACTIVITIES | |
Net decrease in net assets resulting from operations | | $ | (1,313,492 | ) |
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities: | |
Proceeds from sales of long-term investments and principal paydowns | | | 64,243,373 | |
Purchases of long-term investments | | | (65,464,676 | ) |
Net proceeds from sales of short-term securities | | | 4,712,746 | |
Amortization of premium and accretion of discount on investments and other fees | | | 1,092,229 | |
Net realized gain on investments | | | (504,214 | ) |
Net unrealized appreciation on investments | | | 11,926,490 | |
| (Increase) Decrease in Assets: | |
Receivables: | |
Interest — unaffiliated | | | (150,965 | ) |
Dividends — affiliated | | | 8,430 | |
Prepaid expenses | | | (10,801 | ) |
Deferred offering costs | | | 21,084 | |
| Increase (Decrease) in Liabilities: | |
Payables: | |
Investment advisory fees | | | 799 | |
Board realignment and consolidation | | | 6,860 | |
Interest expense and fees | | | 52,880 | |
Other affiliates | | | (2 | ) |
Service and distribution fees | | | (4,278 | ) |
Trustees’ and Officer’s | | | 837 | |
Variation margin on futures contracts | | | 41,721 | |
Other accrued expenses | | | 148,390 | |
| | | | |
Net cash provided by operating activities | | | 14,807,411 | |
| | | | |
|
CASH USED FOR FINANCING ACTIVITIES | |
Proceeds from issuance of capital shares | | | 61,942,532 | |
Payments on redemption of capital shares | | | (72,438,987 | ) |
Payments for offering costs | | | (3,649 | ) |
Proceeds from TOB Trust Certificates | | | 4,048,288 | |
Repayments of TOB Trust Certificates | | | (2,949,892 | ) |
Cash dividends paid to shareholders | | | (5,152,359 | ) |
| | | | |
Net cash used for financing activities | | | (14,554,067 | ) |
| | | | |
|
CASH | |
Net increase in restricted and unrestricted cash and foreign currency | | | 253,344 | |
Restricted and unrestricted cash and foreign currency at beginning of period | | | 538,406 | |
| | | | |
Restricted and unrestricted cash and foreign currency at end of period | | $ | 791,750 | |
| | | | |
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |
Cash paid during the period for interest expense | | $ | 685,569 | |
| | | | |
| |
NON-CASH FINANCING ACTIVITIES | | | | |
Capital shares issued in reinvestment of distributions paid to shareholders | | $ | 4,555,368 | |
| | | | |
| |
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENT OF ASSETS AND LIABILITIES | | | | |
Cash pledged: | | | | |
Futures contracts | | $ | 791,750 | |
| |
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD TO THE STATEMENT OF ASSETS AND LIABILITIES | | | | |
Cash | | $ | 170,656 | |
Cash pledged: | | | | |
Futures contracts | | | 367,750 | |
| | $ | 538,406 | |
| | | | |
See notes to financial statements.
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock California Municipal Opportunities Fund | |
| | | Institutional | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 12.76 | | | | | | | $ | 12.60 | | | $ | 12.73 | | | $ | 12.33 | | | $ | 12.22 | | | $ | 12.54 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.17 | | | | | | | | 0.34 | | | | 0.36 | | | | 0.39 | | | | 0.43 | | | | 0.47 | |
Net realized and unrealized gain (loss) | | | (0.15 | ) | | | | | | | 0.20 | | | | (0.13 | ) | | | 0.40 | | | | 0.11 | | | | (0.22 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase from investment operations | | | 0.02 | | | | | | | | 0.54 | | | | 0.23 | | | | 0.79 | | | | 0.54 | | | | 0.25 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions(b) | |
From net investment income | | | (0.16 | ) | | | | | | | (0.34 | ) | | | (0.36 | ) | | | (0.39 | ) | | | (0.43 | ) | | | (0.47 | ) |
From net realized gain | | | — | | | | | | | | (0.04 | ) | | | — | | | | — | | | | — | | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.16 | ) | | | | | | | (0.38 | ) | | | (0.36 | ) | | | (0.39 | ) | | | (0.43 | ) | | | (0.57 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value,end of period | | $ | 12.62 | | | | | | | $ | 12.76 | | | $ | 12.60 | | | $ | 12.73 | | | $ | 12.33 | | | $ | 12.22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | 0.19 | %(d) | | | | | | | 4.37 | % | | | 1.88 | % | | | 6.54 | % | | | 4.46 | % | | | 2.31 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(f) | |
Total expenses | | | 0.61 | %(e) | | | | | | | 0.57 | % | | | 0.61 | % | | | 0.68 | %(g) | | | 0.73 | % | | | 0.81 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.59 | %(e) | | | | | | | 0.54 | % | | | 0.54 | % | | | 0.66 | % | | | 0.68 | % | | | 0.81 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(h) | | | 0.44 | %(e) | | | | | | | 0.44 | % | | | 0.46 | % | | | 0.62 | % | | | 0.64 | % | | | 0.73 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.61 | %(e) | | | | | | | 2.68 | % | | | 2.88 | % | | | 3.10 | % | | | 3.49 | % | | | 3.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 1,580,682 | | | | | | | $ | 1,190,045 | | | $ | 611,571 | | | $ | 494,888 | | | $ | 315,431 | | | $ | 206,904 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 229,542 | | | | | | | $ | 141,267 | | | $ | 60,642 | | | $ | 40,310 | | | $ | 69,453 | | | $ | 23,653 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 67 | % | | | | | | | 129 | % | | | 142 | % | | | 119 | % | | | 70 | % | | | 33 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.03 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (g) | Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio. |
| (h) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 64 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock California Municipal Opportunities Fund (continued) | |
| | | Investor A | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 12.75 | | | | | | | $ | 12.58 | | | $ | 12.71 | | | $ | 12.32 | | | $ | 12.21 | | | $ | 12.53 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.15 | | | | | | | | 0.31 | | | | 0.33 | | | | 0.36 | | | | 0.40 | | | | 0.45 | |
Net realized and unrealized gain (loss) | | | (0.14 | ) | | | | | | | 0.21 | | | | (0.13 | ) | | | 0.40 | | | | 0.11 | | | | (0.23 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase from investment operations | | | 0.01 | | | | | | | | 0.52 | | | | 0.20 | | | | 0.76 | | | | 0.51 | | | | 0.22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions(b) | |
From net investment income | | | (0.15 | ) | | | | | | | (0.31 | ) | | | (0.33 | ) | | | (0.37 | ) | | | (0.40 | ) | | | (0.44 | ) |
From net realized gain | | | — | | | | | | | | (0.04 | ) | | | — | | | | — | | | | — | | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.15 | ) | | | | | | | (0.35 | ) | | | (0.33 | ) | | | (0.37 | ) | | | (0.40 | ) | | | (0.54 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 12.61 | | | | | | | $ | 12.75 | | | $ | 12.58 | | | $ | 12.71 | | | $ | 12.32 | | | $ | 12.21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | 0.06 | %(d) | | | | | | | 4.19 | % | | | 1.63 | % | | | 6.23 | % | | | 4.25 | % | | | 2.13 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(f) | |
Total expenses | | | 0.86 | %(e) | | | | | | | 0.81 | % | | | 0.85 | %(g) | | | 0.93 | % | | | 0.95 | % | | | 0.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.84 | %(e) | | | | | | | 0.79 | % | | | 0.79 | % | | | 0.88 | % | | | 0.88 | % | | | 0.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(h) | | | 0.69 | %(e) | | | | | | | 0.69 | % | | | 0.71 | % | | | 0.84 | % | | | 0.84 | % | | | 0.91 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.36 | %(e) | | | | | | | 2.45 | % | | | 2.64 | % | | | 2.87 | % | | | 3.28 | % | | | 3.79 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 775,899 | | | | | | | $ | 631,410 | | | $ | 438,543 | | | $ | 364,093 | | | $ | 178,774 | | | $ | 111,545 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 229,542 | | | | | | | $ | 141,267 | | | $ | 60,642 | | | $ | 40,310 | | | $ | 69,453 | | | $ | 23,653 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 67 | % | | | | | | | 129 | % | | | 142 | % | | | 119 | % | | | 70 | % | | | 33 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.03 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (g) | Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio. |
| (h) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock California Municipal Opportunities Fund (continued) | |
| | | Investor A1 | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 12.76 | | | | | | | $ | 12.59 | | | $ | 12.72 | | | $ | 12.33 | | | $ | 12.23 | | | $ | 12.54 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.16 | | | | | | | | 0.33 | | | | 0.35 | | | | 0.38 | | | | 0.42 | | | | 0.46 | |
Net realized and unrealized gain (loss) | | | (0.14 | ) | | | | | | | 0.21 | | | | (0.13 | ) | | | 0.39 | | | | 0.10 | | | | (0.21 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase from investment operations | | | 0.02 | | | | | | | | 0.54 | | | | 0.22 | | | | 0.77 | | | | 0.52 | | | | 0.25 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions(b) | |
From net investment income | | | (0.16 | ) | | | | | | | (0.33 | ) | | | (0.35 | ) | | | (0.38 | ) | | | (0.42 | ) | | | (0.46 | ) |
From net realized gain | | | — | | | | | | | | (0.04 | ) | | | — | | | | — | | | | — | | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.16 | ) | | | | | | | (0.37 | ) | | | (0.35 | ) | | | (0.38 | ) | | | (0.42 | ) | | | (0.56 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 12.62 | | | | | | | $ | 12.76 | | | $ | 12.59 | | | $ | 12.72 | | | $ | 12.33 | | | $ | 12.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | 0.14 | %(d) | | | | | | | 4.35 | % | | | 1.78 | % | | | 6.35 | % | | | 4.29 | % | | | 2.36 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(f) | |
Total expenses | | | 0.71 | %(e) | | | | | | | 0.66 | % | | | 0.70 | % | | | 0.79 | % | | | 0.81 | % | | | 0.84 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.69 | %(e) | | | | | | | 0.64 | % | | | 0.64 | % | | | 0.77 | % | | | 0.77 | % | | | 0.84 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(g) | | | 0.54 | %(e) | | | | | | | 0.54 | % | | | 0.56 | % | | | 0.72 | % | | | 0.73 | % | | | 0.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.52 | %(e) | | | | | | | 2.61 | % | | | 2.78 | % | | | 3.06 | % | | | 3.39 | % | | | 3.94 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 113,004 | | | | | | | $ | 118,780 | | | $ | 126,274 | | | $ | 139,805 | | | $ | 143,879 | | | $ | 154,845 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 229,542 | | | | | | | $ | 141,267 | | | $ | 60,642 | | | $ | 40,310 | | | $ | 69,453 | | | $ | 23,653 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 67 | % | | | | | | | 129 | % | | | 142 | % | | | 119 | % | | | 70 | % | | | 33 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.03 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (g) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 66 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock California Municipal Opportunities Fund (continued) | |
| | | Investor C | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 12.76 | | | | | | | $ | 12.60 | | | $ | 12.73 | | | $ | 12.33 | | | $ | 12.23 | | | $ | 12.54 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.10 | | | | | | | | 0.22 | | | | 0.24 | | | | 0.27 | | | | 0.31 | | | | 0.36 | |
Net realized and unrealized gain (loss) | | | (0.14 | ) | | | | | | | 0.20 | | | | (0.13 | ) | | | 0.40 | | | | 0.10 | | | | (0.21 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.04 | ) | | | | | | | 0.42 | | | | 0.11 | | | | 0.67 | | | | 0.41 | | | | 0.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions(b) | |
From net investment income | | | (0.10 | ) | | | | | | | (0.22 | ) | | | (0.24 | ) | | | (0.27 | ) | | | (0.31 | ) | | | (0.36 | ) |
From net realized gain | | | — | | | | | | | | (0.04 | ) | | | — | | | | — | | | | — | | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.10 | ) | | | | | | | (0.26 | ) | | | (0.24 | ) | | | (0.27 | ) | | | (0.31 | ) | | | (0.46 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 12.62 | | | | | | | $ | 12.76 | | | $ | 12.60 | | | $ | 12.73 | | | $ | 12.33 | | | $ | 12.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | (0.31 | )%(d) | | | | | | | 3.33 | % | | | 0.87 | % | | | 5.51 | % | | | 3.38 | % | | | 1.44 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(f) | |
Total expenses | | | 1.62 | %(e) | | | | | | | 1.57 | % | | | 1.61 | %(g) | | | 1.70 | % | | | 1.72 | % | | | 1.75 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 1.59 | %(e) | | | | | | | 1.54 | % | | | 1.54 | % | | | 1.64 | % | | | 1.64 | % | | | 1.75 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(h) | | | 1.44 | %(e) | | | | | | | 1.44 | % | | | 1.46 | % | | | 1.60 | % | | | 1.60 | % | | | 1.67 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 1.61 | %(e) | | | | | | | 1.70 | % | | | 1.89 | % | | | 2.14 | % | | | 2.52 | % | | | 3.03 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 136,098 | | | | | | | $ | 124,032 | | | $ | 112,978 | | | $ | 103,993 | | | $ | 67,789 | | | $ | 65,203 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 229,542 | | | | | | | $ | 141,267 | | | $ | 60,642 | | | $ | 40,310 | | | $ | 69,453 | | | $ | 23,653 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 67 | % | | | | | | | 129 | % | | | 142 | % | | | 119 | % | | | 70 | % | | | 33 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.03 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (g) | Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio. |
| (h) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock California Municipal Opportunities Fund (continued) | |
| | | Investor C1 | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 12.76 | | | | | | | $ | 12.60 | | | $ | 12.73 | | | $ | 12.33 | | | $ | 12.23 | | | $ | 12.54 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.14 | | | | | | | | 0.27 | | | | 0.29 | | | | 0.32 | | | | 0.36 | | | | 0.40 | |
Net realized and unrealized gain (loss) | | | (0.15 | ) | | | | | | | 0.20 | | | | (0.13 | ) | | | 0.40 | | | | 0.10 | | | | (0.21 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.01 | ) | | | | | | | 0.47 | | | | 0.16 | | | | 0.72 | | | | 0.46 | | | | 0.19 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions(b) | |
From net investment income | | | (0.13 | ) | | | | | | | (0.27 | ) | | | (0.29 | ) | | | (0.32 | ) | | | (0.36 | ) | | | (0.40 | ) |
From net realized gain | | | — | | | | | | | | (0.04 | ) | | | — | | | | — | | | | — | | | | (0.10 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.13 | ) | | | | | | | (0.31 | ) | | | (0.29 | ) | | | (0.32 | ) | | | (0.36 | ) | | | (0.50 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 12.62 | | | | | | | $ | 12.76 | | | $ | 12.60 | | | $ | 12.73 | | | $ | 12.33 | | | $ | 12.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | (0.11 | )%(d) | | | | | | | 3.75 | % | | | 1.27 | % | | | 5.90 | % | | | 3.76 | % | | | 1.85 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(f) | |
Total expenses | | | 1.22 | %(e) | | | | | | | 1.17 | % | | | 1.21 | % | | | 1.30 | % | | | 1.32 | % | | | 1.34 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 1.19 | %(e) | | | | | | | 1.14 | % | | | 1.14 | % | | | 1.27 | % | | | 1.27 | % | | | 1.34 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(g) | | | 1.04 | %(e) | | | | | | | 1.04 | % | | | 1.06 | % | | | 1.23 | % | | | 1.23 | % | | | 1.26 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.16 | %(e) | | | | | | | 2.10 | % | | | 2.27 | % | | | 2.56 | % | | | 2.89 | % | | | 3.44 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 196 | | | | | | | $ | 2,478 | | | $ | 2,760 | | | $ | 15,180 | | | $ | 15,873 | | | $ | 17,320 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 229,542 | | | | | | | $ | 141,267 | | | $ | 60,642 | | | $ | 40,310 | | | $ | 69,453 | | | $ | 23,653 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 67 | % | | | | | | | 129 | % | | | 142 | % | | | 119 | % | | | 70 | % | | | 33 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds. |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.03 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (g) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 68 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | |
| | | BlackRock California Municipal
Opportunities Fund (continued) | |
| |
| | | Class K | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Period from
01/25/18 (a) to 05/31/18 | |
| | | | |
Net asset value, beginning of period | | $ | 12.76 | | | | | | | $ | 12.71 | |
| | | | | | | | | | | | |
Net investment income(b) | | | 0.17 | | | | | | | | 0.11 | |
Net realized and unrealized gain (loss) | | | (0.13 | ) | | | | | | | 0.06 | |
| | | | | | | | | | | | |
Net increase from investment operations | | | 0.04 | | | | | | | | 0.17 | |
| | | | | | | | | | | | |
Distributions from net investment income(c) | | | (0.17 | ) | | | | | | | (0.12 | ) |
| | | | | | | | | | | | |
| | | |
Net asset value, end of period | | $ | 12.63 | | | | | | | $ | 12.76 | |
| | | | | | | | | | | | |
|
Total Return(d) | |
Based on net asset value | | | 0.29 | %(e) | | | | | | | 1.31 | %(e) |
| | | | | | | | | | | | |
|
Ratios to Average Net Assets(g) | |
Total expenses | | | 0.56 | %(f) | | | | | | | 0.54 | %(f)(h) |
| | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.54 | %(f) | | | | | | | 0.49 | %(f) |
| | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(i) | | | 0.39 | %(f) | | | | | | | 0.39 | %(f) |
| | | | | | | | | | | | |
Net investment income | | | 2.66 | %(f) | | | | | | | 2.76 | %(f) |
| | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 40,144 | | | | | | | $ | 36,441 | |
| | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 229,542 | | | | | | | $ | 141,267 | |
| | | | | | | | | | | | |
Portfolio turnover rate | | | 67 | % | | | | | | | 129 | % |
| | | | | | | | | | | | |
| (a) | Commencement of operations. |
| (b) | Based on average shares outstanding. |
| (c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (d) | Where applicable, assumes the reinvestment of distributions. |
| (e) | Aggregate total return. |
| (g) | Excludes expenses incurred indirectly as a result of investments in underlying funds. |
| | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Period from 01/25/18 (a) to 05/31/18 | | | | |
Investments in underlying funds | | | 0.03 | % | | | | | | | 0.01 | % | | | | |
| | | | | | | | | | | | | | | | |
| (h) | Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.54%. |
| (i) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock New Jersey Municipal Bond Fund | |
| |
| | | Institutional | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
| | | | | | | | |
Net asset value, beginning of period | | $ | 11.05 | | | | | | | $ | 11.05 | | | $ | 11.38 | | | $ | 11.01 | | | $ | 11.09 | | | $ | 11.22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.20 | | | | | | | | 0.40 | | | | 0.39 | | | | 0.40 | | | | 0.41 | | | | 0.43 | |
Net realized and unrealized gain (loss) | | | (0.19 | ) | | | | | | | 0.00 | (b) | | | (0.33 | ) | | | 0.37 | | | | (0.08 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase from investment operations | | | 0.01 | | | | | | | | 0.40 | | | | 0.06 | | | | 0.77 | | | | 0.33 | | | | 0.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(c) | | | (0.20 | ) | | | | | | | (0.40 | ) | | | (0.39 | ) | | | (0.40 | ) | | | (0.41 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Net asset value, end of period | | $ | 10.86 | | | | | | | $ | 11.05 | | | $ | 11.05 | | | $ | 11.38 | | | $ | 11.01 | | | $ | 11.09 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(d) | |
Based on net asset value | | | 0.10 | %(e) | | | | | | | 3.69 | % | | | 0.56 | % | | | 7.13 | % | | | 2.93 | % | | | 2.89 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(g) | |
Total expenses | | | 0.87 | %(f) | | | | | | | 0.84 | % | | | 0.80 | % | | | 0.81 | % | | | 0.84 | % | | | 0.83 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.65 | %(f) | | | | | | | 0.64 | % | | | 0.66 | % | | | 0.75 | % | | | 0.77 | % | | | 0.79 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(h) | | | 0.52 | %(f) | | | | | | | 0.54 | % | | | 0.61 | % | | | 0.72 | % | | | 0.74 | % | | | 0.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.68 | %(f) | | | | | | | 3.60 | % | | | 3.51 | % | | | 3.58 | % | | | 3.62 | % | | | 4.04 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 153,503 | | | | | | | $ | 152,759 | | | $ | 141,585 | | | $ | 135,174 | | | $ | 115,135 | | | $ | 109,182 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 16,419 | | | | | | | $ | 16,419 | | | $ | 9,281 | | | $ | 9,281 | | | $ | 7,231 | | | $ | 7,231 | |
| | | | | | | | | | | | | �� | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 11 | % | | | | | | | 16 | % | | | 21 | % | | | 7 | % | | | 14 | % | | | 12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Amount is less than $0.005 per share. |
| (c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (d) | Where applicable, assumes the reinvestment of distributions. |
| (e) | Aggregate total return. |
| (g) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | | | | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | — | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (h) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 70 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock New Jersey Municipal Bond Fund (continued) | |
| | | Service | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 11.05 | | | | | | | $ | 11.05 | | | $ | 11.38 | | | $ | 11.01 | | | $ | 11.09 | | | $ | 11.22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.18 | | | | | | | | 0.37 | | | | 0.36 | | | | 0.38 | | | | 0.39 | | | | 0.42 | |
Net realized and unrealized gain (loss) | | | (0.18 | ) | | | | | | | (0.00 | )(b) | | | (0.32 | ) | | | 0.38 | | | | (0.08 | ) | | | (0.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase from investment operations | | | — | | | | | | | | 0.37 | | | | 0.04 | | | | 0.76 | | | | 0.31 | | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(c) | | | (0.19 | ) | | | | | | | (0.37 | ) | | | (0.37 | ) | | | (0.39 | ) | | | (0.39 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.86 | | | | | | | $ | 11.05 | | | $ | 11.05 | | | $ | 11.38 | | | $ | 11.01 | | | $ | 11.09 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(d) | |
Based on net asset value | | | (0.02 | )%(e) | | | | | | | 3.43 | % | | | 0.36 | % | | | 7.00 | % | | | 2.83 | % | | | 2.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(g) | |
Total expenses | | | 1.10 | %(f) | | | | | | | 1.09 | % | | | 1.05 | % | | | 1.05 | % | | | 1.04 | % | | | 1.04 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.90 | %(f) | | | | | | | 0.89 | % | | | 0.86 | % | | | 0.87 | % | | | 0.86 | % | | | 0.90 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(h) | | | 0.77 | %(f) | | | | | | | 0.79 | % | | | 0.82 | % | | | 0.84 | % | | | 0.84 | % | | | 0.87 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.35 | %(f) | | | | | | | 3.35 | % | | | 3.27 | % | | | 3.43 | % | | | 3.53 | % | | | 3.94 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 7,629 | | | | | | | $ | 7,921 | | | $ | 9,594 | | | $ | 10,514 | | | $ | 17,654 | | | $ | 17,881 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 16,419 | | | | | | | $ | 16,419 | | | $ | 9,281 | | | $ | 9,281 | | | $ | 7,231 | | | $ | 7,231 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 11 | % | | | | | | | 16 | % | | | 21 | % | | | 7 | % | | | 14 | % | | | 12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Amount is greater than $(0.005) per share. |
| (c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (d) | Where applicable, assumes the reinvestment of distributions. |
| (e) | Aggregate total return. |
| (g) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | | | | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | — | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (h) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock New Jersey Municipal Bond Fund (continued) | |
| | | Investor A | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 11.06 | | | | | | | $ | 11.06 | | | $ | 11.39 | | | $ | 11.02 | | | $ | 11.10 | | | $ | 11.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.19 | | | | | | | | 0.37 | | | | 0.37 | | | | 0.38 | | | | 0.39 | | | | 0.42 | |
Net realized and unrealized gain (loss) | | | (0.19 | ) | | | | | | | (0.00 | )(b) | | | (0.33 | ) | | | 0.38 | | | | (0.08 | ) | | | (0.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase from investment operations | | | — | | | | | | | | 0.37 | | | | 0.04 | | | | 0.76 | | | | 0.31 | | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(c) | | | (0.19 | ) | | | | | | | (0.37 | ) | | | (0.37 | ) | | | (0.39 | ) | | | (0.39 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.87 | | | | | | | $ | 11.06 | | | $ | 11.06 | | | $ | 11.39 | | | $ | 11.02 | | | $ | 11.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(d) | |
Based on net asset value | | | (0.02 | )%(e) | | | | | | | 3.43 | % | | | 0.36 | % | | | 6.99 | % | | | 2.83 | % | | | 2.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(g) | |
Total expenses | | | 1.07 | %(f) | | | | | | | 1.02 | % | | | 0.99 | % | | | 0.99 | % | | | 0.98 | % | | | 0.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.90 | %(f) | | | | | | | 0.89 | % | | | 0.86 | % | | | 0.87 | % | | | 0.86 | % | | | 0.90 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(h) | | | 0.77 | %(f) | | | | | | | 0.79 | % | | | 0.82 | % | | | 0.84 | % | | | 0.84 | % | | | 0.87 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.41 | %(f) | | | | | | | 3.35 | % | | | 3.29 | % | | | 3.44 | % | | | 3.52 | % | | | 3.93 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 72,342 | | | | | | | $ | 72,565 | | | $ | 77,920 | | | $ | 81,164 | | | $ | 66,469 | | | $ | 45,073 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 16,419 | | | | | | | $ | 16,419 | | | $ | 9,281 | | | $ | 9,281 | | | $ | 7,231 | | | $ | 7,231 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 11 | % | | | | | | | 16 | % | | | 21 | % | | | 7 | % | | | 14 | % | | | 12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Amount is greater than $(0.005) per share. |
| (c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (d) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (e) | Aggregate total return. |
| (g) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | | | | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | — | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (h) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 72 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock New Jersey Municipal Bond Fund (continued) | |
| | | Investor A1 | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 11.06 | | | | | | | $ | 11.07 | | | $ | 11.39 | | | $ | 11.02 | | | $ | 11.10 | | | $ | 11.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.20 | | | | | | | | 0.39 | | | | 0.38 | | | | 0.40 | | | | 0.41 | | | | 0.43 | |
Net realized and unrealized gain (loss) | | | (0.18 | ) | | | | | | | (0.01 | ) | | | (0.32 | ) | | | 0.37 | | | | (0.08 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase from investment operations | | | 0.02 | | | | | | | | 0.38 | | | | 0.06 | | | | 0.77 | | | | 0.33 | | | | 0.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(b) | | | (0.20 | ) | | | | | | | (0.39 | ) | | | (0.38 | ) | | | (0.40 | ) | | | (0.41 | ) | | | (0.43 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.88 | | | | | | | $ | 11.06 | | | $ | 11.07 | | | $ | 11.39 | | | $ | 11.02 | | | $ | 11.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | 0.15 | %(d) | | | | | | | 3.49 | % | | | 0.59 | % | | | 7.12 | % | | | 2.95 | % | | | 2.93 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(f) | |
Total expenses | | | 0.90 | %(e) | | | | | | | 0.87 | % | | | 0.83 | % | | | 0.83 | % | | | 0.83 | % | | | 0.83 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.74 | %(e) | | | | | | | 0.74 | % | | | 0.72 | % | | | 0.75 | % | | | 0.74 | % | | | 0.75 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(g) | | | 0.62 | %(e) | | | | | | | 0.64 | % | | | 0.68 | % | | | 0.72 | % | | | 0.72 | % | | | 0.72 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.56 | %(e) | | | | | | | 3.50 | % | | | 3.43 | % | | | 3.57 | % | | | 3.65 | % | | | 4.09 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 19,599 | | | | | | | $ | 20,534 | | | $ | 22,697 | | | $ | 26,092 | | | $ | 29,707 | | | $ | 31,338 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 16,419 | | | | | | | $ | 16,419 | | | $ | 9,281 | | | $ | 9,281 | | | $ | 7,231 | | | $ | 7,231 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 11 | % | | | | | | | 16 | % | | | 21 | % | | | 7 | % | | | 14 | % | | | 12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | | | | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | — | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (g) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock New Jersey Municipal Bond Fund (continued) | |
| | | Investor C | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 11.05 | | | | | | | $ | 11.05 | | | $ | 11.38 | | | $ | 11.00 | | | $ | 11.08 | | | $ | 11.21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.15 | | | | | | | | 0.29 | | | | 0.28 | | | | 0.30 | | | | 0.31 | | | | 0.34 | |
Net realized and unrealized gain (loss) | | | (0.19 | ) | | | | | | | 0.00 | (b) | | | (0.33 | ) | | | 0.38 | | | | (0.08 | ) | | | (0.14 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.04 | ) | | | | | | | 0.29 | | | | (0.05 | ) | | | 0.68 | | | | 0.23 | | | | 0.20 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(c) | | | (0.15 | ) | | | | | | | (0.29 | ) | | | (0.28 | ) | | | (0.30 | ) | | | (0.31 | ) | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.86 | | | | | | | $ | 11.05 | | | $ | 11.05 | | | $ | 11.38 | | | $ | 11.00 | | | $ | 11.08 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(d) | |
Based on net asset value | | | (0.40 | )%(e) | | | | | | | 2.65 | % | | | (0.41 | )% | | | 6.28 | % | | | 2.04 | % | | | 1.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(g) | |
Total expenses | | | 1.81 | %(f) | | | | | | | 1.78 | % | | | 1.73 | % | | | 1.73 | % | | | 1.73 | % | | | 1.73 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 1.65 | %(f) | | | | | | | 1.64 | % | | | 1.62 | % | | | 1.64 | % | | | 1.63 | % | | | 1.67 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(h) | | | 1.52 | %(f) | | | | | | | 1.54 | % | | | 1.57 | % | | | 1.61 | % | | | 1.61 | % | | | 1.64 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.65 | %(f) | | | | | | | 2.60 | % | | | 2.53 | % | | | 2.67 | % | | | 2.75 | % | | | 3.16 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 28,518 | | | | | | | $ | 29,509 | | | $ | 29,276 | | | $ | 30,810 | | | $ | 28,614 | | | $ | 26,429 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 16,419 | | | | | | | $ | 16,419 | | | $ | 9,281 | | | $ | 9,281 | | | $ | 7,231 | | | $ | 7,231 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 11 | % | | | | | | | 16 | % | | | 21 | % | | | 7 | % | | | 14 | % | | | 12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Amount is less than $0.005 per share. |
| (c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (d) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (e) | Aggregate total return. |
| (g) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | | | | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | — | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (h) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 74 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock New Jersey Municipal Bond Fund (continued) | |
| | | Investor C1 | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 11.05 | | | | | | | $ | 11.05 | | | $ | 11.38 | | | $ | 11.01 | | | $ | 11.09 | | | $ | 11.22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.16 | | | | | | | | 0.34 | | | | 0.33 | | | | 0.34 | | | | 0.35 | | | | 0.38 | |
Net realized and unrealized gain (loss) | | | (0.18 | ) | | | | | | | (0.00 | )(b) | | | (0.33 | ) | | | 0.37 | | | | (0.08 | ) | | | (0.13 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.02 | ) | | | | | | | 0.34 | | | | — | | | | 0.71 | | | | 0.27 | | | | 0.25 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(c) | | | (0.17 | ) | | | | | | | (0.34 | ) | | | (0.33 | ) | | | (0.34 | ) | | | (0.35 | ) | | | (0.38 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.86 | | | | | | | $ | 11.05 | | | $ | 11.05 | | | $ | 11.38 | | | $ | 11.01 | | | $ | 11.09 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(d) | |
Based on net asset value | | | (0.19 | )%(e) | | | | | | | 3.08 | % | | | (0.01 | )% | | | 6.59 | % | | | 2.43 | % | | | 2.41 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets(g) | |
Total expenses | | | 1.39 | %(f) | | | | | | | 1.37 | % | | | 1.32 | % | | | 1.32 | % | | | 1.33 | % | | | 1.32 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 1.23 | %(f) | | | | | | | 1.22 | % | | | 1.23 | % | | | 1.26 | % | | | 1.25 | % | | | 1.26 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(h) | | | 1.10 | %(f) | | | | | | | 1.12 | % | | | 1.18 | % | | | 1.23 | % | | | 1.23 | % | | | 1.23 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.91 | %(f) | | | | | | | 3.02 | % | | | 2.92 | % | | | 3.05 | % | | | 3.14 | % | | | 3.58 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 22 | | | | | | | $ | 1,350 | | | $ | 1,403 | | | $ | 7,815 | | | $ | 7,981 | | | $ | 8,594 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 16,419 | | | | | | | $ | 16,419 | | | $ | 9,281 | | | $ | 9,281 | | | $ | 7,231 | | | $ | 7,231 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 11 | % | | | | | | | 16 | % | | | 21 | % | | | 7 | % | | | 14 | % | | | 12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Amount is greater than $(0.005) per share. |
| (c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (d) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (e) | Aggregate total return. |
| (g) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | | | | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | — | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | | | | — | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (h) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | |
| | | BlackRock New Jersey Municipal
Bond Fund (continued) | |
| |
| | | Class K | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Period from
01/25/18 (a) to 05/31/18 | |
| | | | |
Net asset value, beginning of period | | $ | 11.04 | | | | | | | $ | 11.11 | |
| | | | | | | | | | | | |
Net investment income(b) | | | 0.20 | | | | | | | | 0.14 | |
Net realized and unrealized loss | | | (0.18 | ) | | | | | | | (0.07 | ) |
| | | | | | | | | | | | |
Net increase from investment operations | | | 0.02 | | | | | | | | 0.07 | |
| | | | | | | | | | | | |
Distributions from net investment income(c) | | | (0.20 | ) | | | | | | | (0.14 | ) |
| | | | | | | | | | | | |
| | | |
Net asset value, end of period | | $ | 10.86 | | | | | | | $ | 11.04 | |
| | | | | | | | | | | | |
|
Total Return(d) | |
Based on net asset value | | | 0.22 | %(e) | | | | | | | 0.66 | %(e) |
| | | | | | | | | | | | |
|
Ratios to Average Net Assets(g) | |
Total expenses | | | 0.76 | %(f) | | | | | | | 0.74 | %(f)(h) |
| | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.60 | %(f) | | | | | | | 0.57 | %(f) |
| | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(i) | | | 0.47 | %(f) | | | | | | | 0.47 | %(f) |
| | | | | | | | | | | | |
Net investment income | | | 3.72 | %(f) | | | | | | | 3.88 | %(f) |
| | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 1,823 | | | | | | | $ | 1,776 | |
| | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 16,419 | | | | | | | $ | 16,419 | |
| | | | | | | | | | | | |
Portfolio turnover rate | | | 11 | % | | | | | | | 16 | % |
| | | | | | | | | | | | |
| (a) | Commencement of operations. |
| (b) | Based on average shares outstanding. |
| (c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (d) | Where applicable, assumes the reinvestment of distributions. |
| (e) | Aggregate total return. |
| (g) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | Period from
01/25/18 (a) to 05/31/18 | | | | |
Investments in underlying funds | | 0.01% | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | |
| (h) | Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.74%. |
| (i) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 76 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock Pennsylvania Municipal Bond Fund | |
| | | Institutional | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 10.98 | | | | | | | $ | 11.21 | | | $ | 11.58 | | | $ | 11.31 | | | $ | 11.21 | | | $ | 11.54 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.22 | | | | | | | | 0.45 | | | | 0.46 | | | | 0.46 | | | | 0.46 | | | | 0.47 | |
Net realized and unrealized gain (loss) | | | (0.24 | ) | | | | | | | (0.23 | ) | | | (0.37 | ) | | | 0.27 | | | | 0.10 | | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.02 | ) | | | | | | | 0.22 | | | | 0.09 | | | | 0.73 | | | | 0.56 | | | | 0.14 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(b) | | | (0.22 | ) | | | | | | | (0.45 | ) | | | (0.46 | ) | | | (0.46 | ) | | | (0.46 | ) | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.74 | | | | | | | $ | 10.98 | | | $ | 11.21 | | | $ | 11.58 | | | $ | 11.31 | | | $ | 11.21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | (0.21 | )%(d) | | | | | | | 2.02 | % | | | 0.81 | % | | | 6.59 | % | | | 5.02 | % | | | 1.50 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets | |
Total expenses | | | 1.04 | %(e) | | | | | | | 0.97 | % | | | 0.95 | % | | | 0.87 | % | | | 0.87 | % | | | 0.87 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.84 | %(e) | | | | | | | 0.78 | % | | | 0.78 | % | | | 0.79 | % | | | 0.78 | % | | | 0.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f) | | | 0.54 | %(e) | | | | | | | 0.55 | % | | | 0.61 | % | | | 0.71 | % | | | 0.71 | % | | | 0.71 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.99 | %(e) | | | | | | | 4.06 | % | | | 4.05 | % | | | 4.04 | % | | | 4.01 | % | | | 4.39 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 345,759 | | | | | | | $ | 356,315 | | | $ | 298,557 | | | $ | 327,314 | | | $ | 321,896 | | | $ | 311,954 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 71,297 | | | | | | | $ | 70,199 | | | $ | 59,064 | | | $ | 49,627 | | | $ | 46,127 | | | $ | 46,127 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 10 | % | | | | | | | 17 | % | | | 18 | % | | �� | 19 | % | | | 18 | % | | | 11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock Pennsylvania Municipal Bond Fund (continued) | |
| | | Service | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 10.99 | | | | | | | $ | 11.22 | | | $ | 11.59 | | | $ | 11.31 | | | $ | 11.22 | | | $ | 11.54 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)(a) | | | 0.20 | | | | | | | | 0.42 | | | | 0.43 | | | | 0.44 | | | | 0.44 | | | | 0.45 | |
Net realized and unrealized gain (loss) | | | (0.24 | ) | | | | | | | (0.23 | ) | | | (0.37 | ) | | | 0.28 | | | | 0.09 | | | | (0.32 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.04 | ) | | | | | | | 0.19 | | | | 0.06 | | | | 0.72 | | | | 0.53 | | | | 0.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(b) | | | (0.20 | ) | | | | | | | (0.42 | ) | | | (0.43 | ) | | | (0.44 | ) | | | (0.44 | ) | | | (0.45 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.75 | | | | | | | $ | 10.99 | | | $ | 11.22 | | | $ | 11.59 | | | $ | 11.31 | | | $ | 11.22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | (0.34 | )%(d) | | | | | | | 1.76 | % | | | 0.59 | % | | | 6.50 | % | | | 4.73 | % | | | 1.41 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets | |
Total expenses | | | 1.28 | %(e) | | | | | | | 1.19 | % | | | 1.13 | % | | | 1.12 | % | | | 1.04 | % | | | 1.04 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 1.09 | %(e) | | | | | | | 1.03 | % | | | 1.00 | % | | | 0.97 | % | | | 0.96 | % | | | 0.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f) | | | 0.79 | %(e) | | | | | | | 0.80 | % | | | 0.83 | % | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.74 | %(e) | | | | | | | 3.81 | % | | | 3.84 | % | | | 3.85 | % | | | 3.83 | % | | | 4.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 1,182 | | | | | | | $ | 1,783 | | | $ | 1,427 | | | $ | 1,217 | | | $ | 8,636 | | | $ | 7,422 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 71,297 | | | | | | | $ | 70,199 | | | $ | 59,064 | | | $ | 49,627 | | | $ | 46,127 | | | $ | 46,127 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 10 | % | | | | | | | 17 | % | | | 18 | % | | | 19 | % | | | 18 | % | | | 11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 78 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock Pennsylvania Municipal Bond Fund (continued) | |
| | | Investor A | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 10.99 | | | | | | | $ | 11.22 | | | $ | 11.59 | | | $ | 11.32 | | | $ | 11.23 | | | $ | 11.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.21 | | | | | | | | 0.42 | | | | 0.43 | | | | 0.44 | | | | 0.44 | | | | 0.46 | |
Net realized and unrealized gain (loss) | | | (0.25 | ) | | | | | | | (0.23 | ) | | | (0.37 | ) | | | 0.27 | | | | 0.09 | | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.04 | ) | | | | | | | 0.19 | | | | 0.06 | | | | 0.71 | | | | 0.53 | | | | 0.13 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(b) | | | (0.20 | ) | | | | | | | (0.42 | ) | | | (0.43 | ) | | | (0.44 | ) | | | (0.44 | ) | | | (0.45 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.75 | | | | | | | $ | 10.99 | | | $ | 11.22 | | | $ | 11.59 | | | $ | 11.32 | | | $ | 11.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | (0.34 | )%(d) | | | | | | | 1.76 | % | | | 0.59 | % | | | 6.40 | % | | | 4.73 | % | | | 1.41 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets | |
Total expenses | | | 1.20 | %(e) | | | | | | | 1.16 | % | | | 1.11 | % | | | 1.04 | % | | | 1.02 | % | | | 1.02 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 1.09 | %(e) | | | | | | | 1.03 | % | | | 1.00 | % | | | 0.97 | % | | | 0.96 | % | | | 0.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f) | | | 0.79 | %(e) | | | | | | | 0.80 | % | | | 0.83 | % | | | 0.89 | % | | | 0.89 | % | | | 0.89 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.74 | %(e) | | | | | | | 3.82 | % | | | 3.83 | % | | | 3.85 | % | | | 3.83 | % | | | 4.20 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 99,369 | | | | | | | $ | 98,414 | | | $ | 130,405 | | | $ | 88,994 | | | $ | 64,720 | | | $ | 55,500 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 71,297 | | | | | | | $ | 70,199 | | | $ | 59,064 | | | $ | 49,627 | | | $ | 46,127 | | | $ | 46,127 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 10 | % | | | | | | | 17 | % | | | 18 | % | | | 19 | % | | | 18 | % | | | 11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock Pennsylvania Municipal Bond Fund (continued) | |
| | | Investor A1 | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 11.00 | | | | | | | $ | 11.22 | | | $ | 11.60 | | | $ | 11.33 | | | $ | 11.23 | | | $ | 11.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.21 | | | | | | | | 0.44 | | | | 0.45 | | | | 0.46 | | | | 0.46 | | | | 0.47 | |
Net realized and unrealized gain (loss) | | | (0.24 | ) | | | | | | | (0.22 | ) | | | (0.38 | ) | | | 0.27 | | | | 0.10 | | | | (0.32 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.03 | ) | | | | | | | 0.22 | | | | 0.07 | | | | 0.73 | | | | 0.56 | | | | 0.15 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(b) | | | (0.21 | ) | | | | | | | (0.44 | ) | | | (0.45 | ) | | | (0.46 | ) | | | (0.46 | ) | | | (0.47 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.76 | | | | | | | $ | 11.00 | | | $ | 11.22 | | | $ | 11.60 | | | $ | 11.33 | | | $ | 11.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | (0.26 | )%(d) | | | | | | | 2.01 | % | | | 0.66 | % | | | 6.57 | % | | | 5.00 | % | | | 1.57 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets | |
Total expenses | | | 1.06 | %(e) | | | | | | | 0.98 | % | | | 0.94 | % | | | 0.87 | % | | | 0.86 | % | | | 0.86 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.94 | %(e) | | | | | | | 0.88 | % | | | 0.85 | % | | | 0.81 | % | | | 0.80 | % | | | 0.80 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f) | | | 0.64 | %(e) | | | | | | | 0.65 | % | | | 0.68 | % | | | 0.73 | % | | | 0.73 | % | | | 0.73 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.89 | %(e) | | | | | | | 3.96 | % | | | 3.99 | % | | | 4.02 | % | | | 4.00 | % | | | 4.37 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 10,599 | | | | | | | $ | 13,763 | | | $ | 15,266 | | | $ | 16,030 | | | $ | 16,548 | | | $ | 17,823 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 71,297 | | | | | | | $ | 70,199 | | | $ | 59,064 | | | $ | 49,627 | | | $ | 46,127 | | | $ | 46,127 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 10 | % | | | | | | | 17 | % | | | 18 | % | | | 19 | % | | | 18 | % | | | 11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 80 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock Pennsylvania Municipal Bond Fund (continued) | |
| | | Investor C | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 10.99 | | | | | | | $ | 11.22 | | | $ | 11.59 | | | $ | 11.32 | | | $ | 11.22 | | | $ | 11.55 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.16 | | | | | | | | 0.34 | | | | 0.35 | | | | 0.35 | | | | 0.35 | | | | 0.37 | |
Net realized and unrealized gain (loss) | | | (0.24 | ) | | | | | | | (0.23 | ) | | | (0.37 | ) | | | 0.27 | | | | 0.10 | | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.08 | ) | | | | | | | 0.11 | | | | (0.02 | ) | | | 0.62 | | | | 0.45 | | | | 0.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(b) | | | (0.16 | ) | | | | | | | (0.34 | ) | | | (0.35 | ) | | | (0.35 | ) | | | (0.35 | ) | | | (0.37 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.75 | | | | | | | $ | 10.99 | | | $ | 11.22 | | | $ | 11.59 | | | $ | 11.32 | | | $ | 11.22 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | (0.71 | )%(d) | | | | | | | 1.01 | % | | | (0.17 | )% | | | 5.57 | % | | | 4.01 | % | | | 0.53 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets | |
Total expenses | | | 1.96 | %(e) | | | | | | | 1.87 | % | | | 1.84 | % | | | 1.76 | % | | | 1.75 | % | | | 1.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 1.84 | %(e) | | | | | | | 1.78 | % | | | 1.76 | % | | | 1.76 | % | | | 1.74 | % | | | 1.75 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f) | | | 1.54 | %(e) | | | | | | | 1.55 | % | | | 1.59 | % | | | 1.68 | % | | | 1.68 | % | | | 1.67 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.99 | %(e) | | | | | | | 3.06 | % | | | 3.08 | % | | | 3.07 | % | | | 3.04 | % | | | 3.42 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 29,517 | | | | | | | $ | 32,105 | | | $ | 33,427 | | | $ | 34,195 | | | $ | 28,972 | | | $ | 24,647 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 71,297 | | | | | | | $ | 70,199 | | | $ | 59,064 | | | $ | 49,627 | | | $ | 46,127 | | | $ | 46,127 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 10 | % | | | | | | | 17 | % | | | 18 | % | | | 19 | % | | | 18 | % | | | 11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock Pennsylvania Municipal Bond Fund (continued) | |
| | | Investor C1 | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 10.98 | | | | | | | $ | 11.21 | | | $ | 11.58 | | | $ | 11.31 | | | $ | 11.21 | | | $ | 11.54 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.19 | | | | | | | | 0.39 | | | | 0.39 | | | | 0.40 | | | | 0.39 | | | | 0.42 | |
Net realized and unrealized gain (loss) | | | (0.24 | ) | | | | | | | (0.23 | ) | | | (0.37 | ) | | | 0.27 | | | | 0.10 | | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.05 | ) | | | | | | | 0.16 | | | | 0.02 | | | | 0.67 | | | | 0.49 | | | | 0.08 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Distributions from net investment income(b) | | | (0.19 | ) | | | | | | | (0.39 | ) | | | (0.39 | ) | | | (0.40 | ) | | | (0.39 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 10.74 | | | | | | | $ | 10.98 | | | $ | 11.21 | | | $ | 11.58 | | | $ | 11.31 | | | $ | 11.21 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Total Return(c) | |
Based on net asset value | | | (0.50 | )%(d) | | | | | | | 1.42 | % | | | 0.23 | % | | | 6.01 | % | | | 4.45 | % | | | 0.95 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Ratios to Average Net Assets | |
Total expenses | | | 1.52 | %(e) | | | | | | | 1.47 | % | | | 1.44 | % | | | 1.36 | % | | | 1.35 | % | | | 1.35 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 1.41 | %(e) | | | | | | | 1.36 | % | | | 1.36 | % | | | 1.34 | % | | | 1.33 | % | | | 1.33 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(f) | | | 1.11 | %(e) | | | | | | | 1.13 | % | | | 1.19 | % | | | 1.26 | % | | | 1.26 | % | | | 1.26 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.41 | %(e) | | | | | | | 3.48 | % | | | 3.47 | % | | | 3.49 | % | | | 3.46 | % | | | 3.84 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 154 | | | | | | | $ | 1,580 | | | $ | 1,575 | | | $ | 4,528 | | | $ | 4,735 | | | $ | 5,460 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 71,297 | | | | | | | $ | 70,199 | | | $ | 59,064 | | | $ | 49,627 | | | $ | 46,127 | | | $ | 46,127 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 10 | % | | | | | | | 17 | % | | | 18 | % | | | 19 | % | | | 18 | % | | | 11 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 82 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | |
| | | BlackRock Pennsylvania Municipal
Bond Fund (continued) | |
| |
| | | Class K | |
| | | Six Months Ended 11/30/18
(unaudited) | | | | | | Period from 01/25/18 (a) to 05/31/18 | |
| | | | |
Net asset value, beginning of period | | $ | 10.98 | | | | | | | $ | 11.07 | |
| | | | | | | | | | | | |
Net investment income(b) | | | 0.22 | | | | | | | | 0.15 | |
Net realized and unrealized loss | | | (0.24 | ) | | | | | | | (0.09 | ) |
| | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.02 | ) | | | | | | | 0.06 | |
| | | | | | | | | | | | |
Distributions from net investment income(c) | | | (0.22 | ) | | | | | | | (0.15 | ) |
| | | | | | | | | | | | |
| | | |
Net asset value, end of period | | $ | 10.74 | | | | | | | $ | 10.98 | |
| | | | | | | | | | | | |
|
Total Return(d) | |
Based on net asset value | | | (0.19 | )%(e) | | | | | | | 0.60 | %(e) |
| | | | | | | | | | | | |
|
Ratios to Average Net Assets | |
Total expenses | | | 0.90 | %(f) | | | | | | | 0.84 | %(f)(g) |
| | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.79 | %(f) | | | | | | | 0.72 | %(f) |
| | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(h) | | | 0.49 | %(f) | | | | | | | 0.49 | %(f) |
| | | | | | | | | | | | |
Net investment income | | | 4.04 | %(f) | | | | | | | 4.41 | %(f) |
| | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 2,716 | | | | | | | $ | 2,488 | |
| | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 71,297 | | | | | | | $ | 70,199 | |
| | | | | | | | | | | | |
Portfolio turnover rate | | | 10 | % | | | | | | | 17 | % |
| | | | | | | | | | | | |
| (a) | Commencement of operations. |
| (b) | Based on average shares outstanding. |
| (c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (d) | Where applicable, assumes the reinvestment of distributions. |
| (e) | Aggregate total return. |
| (g) | Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.84%. |
| (h) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock Strategic Municipal Opportunities Fund | |
| | | Institutional | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 11.75 | | | | | | | $ | 11.57 | | | $ | 11.79 | | | $ | 11.24 | | | $ | 11.35 | | | $ | 11.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.18 | | | | | | | | 0.33 | | | | 0.31 | | | | 0.31 | | | | 0.32 | | | | 0.32 | |
Net realized and unrealized gain (loss) | | | (0.17 | ) | | | | | | | 0.18 | | | | (0.07 | ) | | | 0.55 | | | | (0.07 | ) | | | 0.04 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase from investment operations | | | 0.01 | | | | | | | | 0.51 | | | | 0.24 | | | | 0.86 | | | | 0.25 | | | | 0.36 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions(b) | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.18 | ) | | | | | | | (0.33 | ) | | | (0.31 | ) | | | (0.31 | ) | | | (0.32 | ) | | | (0.33 | ) |
From net realized gain | | | — | | | | | | | | — | | | | (0.15 | ) | | | — | | | | (0.04 | ) | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.18 | ) | | | | | | | (0.33 | ) | | | (0.46 | ) | | | (0.31 | ) | | | (0.36 | ) | | | (0.42 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 11.58 | | | | | | | $ | 11.75 | | | $ | 11.57 | | | $ | 11.79 | | | $ | 11.24 | | | $ | 11.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total Return(c) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Based on net asset value | | | 0.08 | %(d) | | | | | | | 4.47 | % | | | 2.13 | % | | | 7.76 | % | | | 2.13 | % | | | 3.28 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios to Average Net Assets(f) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 0.83 | %(e) | | | | | | | 0.81 | % | | | 0.74 | % | | | 0.72 | % | | | 0.69 | % | | | 0.73 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.76 | %(e) | | | | | | | 0.75 | % | | | 0.69 | % | | | 0.67 | % | | | 0.64 | % | | | 0.68 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(g) | | | 0.54 | %(e) | | | | | | | 0.57 | % | | | 0.57 | % | | | 0.59 | % | | | 0.59 | % | | | 0.65 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.09 | %(e) | | | | | | | 2.83 | % | | | 2.71 | % | | | 2.69 | % | | | 2.82 | % | | | 2.95 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | $ | 7,098,739 | | | | | | | $ | 5,791,442 | | | $ | 3,512,455 | | | $ | 3,197,986 | | | $ | 2,186,540 | | | $ | 953,869 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 956,542 | | | | | | | $ | 767,480 | | | $ | 526,645 | | | $ | 412,485 | | | $ | 298,790 | | | $ | 130,985 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 26 | % | | | | | | | 145 | % | | | 171 | % | | | 174 | % | | | 185 | % | | | 200 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (g) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 84 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock Strategic Municipal Opportunities Fund (continued) | |
| | | Investor A | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 11.74 | | | | | | | $ | 11.56 | | | $ | 11.78 | | | $ | 11.23 | | | $ | 11.35 | | | $ | 11.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.17 | | | | | | | | 0.31 | | | | 0.29 | | | | 0.28 | | | | 0.28 | | | | 0.30 | |
Net realized and unrealized gain (loss) | | | (0.16 | ) | | | | | | | 0.18 | | | | (0.07 | ) | | | 0.55 | | | | (0.07 | ) | | | 0.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase from investment operations | | | 0.01 | | | | | | | | 0.49 | | | | 0.22 | | | | 0.83 | | | | 0.21 | | | | 0.33 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions(b) | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.17 | ) | | | | | | | (0.31 | ) | | | (0.29 | ) | | | (0.28 | ) | | | (0.29 | ) | | | (0.30 | ) |
From net realized gain | | | — | | | | | | | | — | | | | (0.15 | ) | | | — | | | | (0.04 | ) | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.17 | ) | | | | | | | (0.31 | ) | | | (0.44 | ) | | | (0.28 | ) | | | (0.33 | ) | | | (0.39 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 11.58 | | | | | | | $ | 11.74 | | | $ | 11.56 | | | $ | 11.78 | | | $ | 11.23 | | | $ | 11.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total Return(c) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Based on net asset value | | | 0.05 | %(d) | | | | | | | 4.26 | % | | | 1.92 | % | | | 7.62 | % | | | 1.81 | % | | | 3.04 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios to Average Net Assets(f) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 1.06 | %(e) | | | | | | | 1.02 | % | | | 0.95 | % | | | 0.94 | % | | | 0.92 | % | | | 0.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.99 | %(e) | | | | | | | 0.96 | % | | | 0.90 | % | | | 0.89 | % | | | 0.87 | % | | | 0.91 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(g) | | | 0.77 | %(e) | | | | | | | 0.78 | % | | | 0.78 | % | | | 0.80 | % | | | 0.82 | % | | | 0.88 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.86 | %(e) | | | | | | | 2.63 | % | | | 2.50 | % | | | 2.47 | % | | | 2.59 | % | | | 2.73 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | $ | 1,605,013 | | | | | | | $ | 1,441,879 | | | $ | 1,049,555 | | | $ | 1,111,770 | | | $ | 801,753 | | | $ | 283,506 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 956,542 | | | | | | | $ | 767,480 | | | $ | 526,645 | | | $ | 412,485 | | | $ | 298,790 | | | $ | 130,985 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 26 | % | | | | | | | 145 | % | | | 171 | % | | | 174 | % | | | 185 | % | | | 200 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (g) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock Strategic Municipal Opportunities Fund (continued) | |
| | | Investor A1 | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 11.75 | | | | | | | $ | 11.56 | | | $ | 11.79 | | | $ | 11.23 | | | $ | 11.35 | | | $ | 11.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.18 | | | | | | | | 0.32 | | | | 0.31 | | | | 0.30 | | | | 0.31 | | | | 0.32 | |
Net realized and unrealized gain (loss) | | | (0.18 | ) | | | | | | | 0.19 | | | | (0.09 | ) | | | 0.56 | | | | (0.09 | ) | | | 0.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase from investment operations | | | — | | | | | | | | 0.51 | | | | 0.22 | | | | 0.86 | | | | 0.22 | | | | 0.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions from(b) | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.17 | ) | | | | | | | (0.32 | ) | | | (0.30 | ) | | | (0.30 | ) | | | (0.30 | ) | | | (0.32 | ) |
From net realized gain | | | — | | | | | | | | — | | | | (0.15 | ) | | | — | | | | (0.04 | ) | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total dividends and distributions | | | (0.17 | ) | | | | | | | (0.32 | ) | | | (0.45 | ) | | | (0.30 | ) | | | (0.34 | ) | | | (0.41 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 11.58 | | | | | | | $ | 11.75 | | | $ | 11.56 | | | $ | 11.79 | | | $ | 11.23 | | | $ | 11.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total Return(c) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Based on net asset value | | | 0.04 | %(d) | | | | | | | 4.49 | % | | | 1.98 | % | | | 7.78 | % | | | 1.94 | % | | | 3.19 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios to Average Net Assets(f) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 0.90 | %(e) | | | | | | | 0.88 | % | | | 0.81 | % | | | 0.79 | % | | | 0.78 | % | | | 0.81 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.84 | %(e) | | | | | | | 0.83 | % | | | 0.76 | % | | | 0.74 | % | | | 0.73 | % | | | 0.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(g) | | | 0.62 | %(e) | | | | | | | 0.64 | % | | | 0.64 | % | | | 0.66 | % | | | 0.68 | % | | | 0.73 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 3.02 | %(e) | | | | | | | 2.77 | % | | | 2.64 | % | | | 2.65 | % | | | 2.70 | % | | | 2.89 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | $ | 28,167 | | | | | | | $ | 29,233 | | | $ | 30,691 | | | $ | 33,472 | | | $ | 34,264 | | | $ | 37,708 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 956,542 | | | | | | | $ | 767,480 | | | $ | 526,645 | | | $ | 412,485 | | | $ | 298,790 | | | $ | 130,985 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 26 | % | | | | | | | 145 | % | | | 171 | % | | | 174 | % | | | 185 | % | | | 200 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (g) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 86 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | BlackRock Strategic Municipal Opportunities Fund (continued) | |
| | | Investor C | |
| | | Six Months Ended
11/30/18
(unaudited) | | | Year Ended May 31, | |
| | | | | | 2018 | | | 2017 | | | 2016 | | | 2015 | | | 2014 | |
Net asset value, beginning of period | | $ | 11.75 | | | | | | | $ | 11.56 | | | $ | 11.79 | | | $ | 11.23 | | | $ | 11.35 | | | $ | 11.41 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(a) | | | 0.12 | | | | | | | | 0.22 | | | | 0.20 | | | | 0.20 | | | | 0.20 | | | | 0.22 | |
Net realized and unrealized gain (loss) | | | (0.17 | ) | | | | | | | 0.19 | | | | (0.08 | ) | | | 0.56 | | | | (0.08 | ) | | | 0.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from investment operations | | | (0.05 | ) | | | | | | | 0.41 | | | | 0.12 | | | | 0.76 | | | | 0.12 | | | | 0.25 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions(b) | | | | | | | | | | | | | | | | | | | | | |
From net investment income | | | (0.12 | ) | | | | | | | (0.22 | ) | | | (0.20 | ) | | | (0.20 | ) | | | (0.20 | ) | | | (0.22 | ) |
From net realized gain | | | — | | | | | | | | — | | | | (0.15 | ) | | | — | | | | (0.04 | ) | | | (0.09 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.12 | ) | | | | | | | (0.22 | ) | | | (0.35 | ) | | | (0.20 | ) | | | (0.24 | ) | | | (0.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value, end of period | | $ | 11.58 | | | | | | | $ | 11.75 | | | $ | 11.56 | | | $ | 11.79 | | | $ | 11.23 | | | $ | 11.35 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Total Return(c) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Based on net asset value | | | (0.41 | )%(d) | | | | | | | 3.54 | % | | | 1.05 | % | | | 6.80 | % | | | 1.03 | % | | | 2.26 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Ratios to Average Net Assets(f) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses | | | 1.81 | %(e) | | | | | | | 1.79 | % | | | 1.72 | % | | | 1.70 | % | | | 1.69 | % | | | 1.72 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 1.75 | %(e) | | | | | | | 1.73 | % | | | 1.67 | % | | | 1.65 | % | | | 1.64 | % | | | 1.66 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(g) | | | 1.53 | %(e) | | | | | | | 1.55 | % | | | 1.55 | % | | | 1.57 | % | | | 1.58 | % | | | 1.64 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 2.10 | %(e) | | | | | | | 1.86 | % | | | 1.73 | % | | | 1.72 | % | | | 1.80 | % | | | 1.98 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | |
Supplemental Data | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | $ | 280,870 | | | | | | | $ | 269,156 | | | $ | 251,966 | | | $ | 262,800 | | | $ | 205,674 | | | $ | 120,840 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 956,542 | | | | | | | $ | 767,480 | | | $ | 526,645 | | | $ | 412,485 | | | $ | 298,790 | | | $ | 130,985 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Portfolio turnover rate | | | 26 | % | | | | | | | 145 | % | | | 171 | % | | | 174 | % | | | 185 | % | | | 200 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (a) | Based on average shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. |
| (d) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Year Ended May 31, | |
| | | | | | 2018 | | | | | | 2017 | | | | | | 2016 | | | | | | 2015 | | | | | | 2014 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | 0.01 | % | | | | | | | — | % | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (g) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
Financial Highlights (continued)
(For a share outstanding throughout each period)
| | | | | | | | | | | | |
| | | BlackRock Strategic Municipal
Opportunities Fund (continued) | |
| | | Class K | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Period from
01/25/18 (a) to 05/31/18 | |
Net asset value, beginning of period | | $ | 11.75 | | | | | | | $ | 11.73 | |
| | | | | | | | | | | | |
Net investment income(b) | | | 0.18 | | | | | | | | 0.11 | |
Net realized and unrealized gain (loss) | | | (0.17 | ) | | | | | | | 0.02 | |
| | | | | | | | | | | | |
Net increase from investment operations | | | 0.01 | | | | | | | | 0.13 | |
| | | | | | | | | | | | |
Distributions from net investment income(c) | | | (0.18 | ) | | | | | | | (0.11 | ) |
| | | | | | | | | | | | |
Net asset value, end of period | | $ | 11.58 | | | | | | | $ | 11.75 | |
| | | | | | | | | | | | |
|
Total Return(d) | |
Based on net asset value | | | 0.11 | %(e) | | | | | | | 1.16 | %(e) |
| | | | | | | | | | | | |
|
Ratios to Average Net Assets(f) | |
Total expenses | | | 0.76 | %(g) | | | | | | | 0.74 | %(g)(h) |
| | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly | | | 0.70 | %(g) | | | | | | | 0.68 | %(g) |
| | | | | | | | | | | | |
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees(i) | | | 0.48 | %(g) | | | | | | | 0.50 | %(g) |
| | | | | | | | | | | | |
Net investment income | | | 3.16 | %(g) | | | | | | | 3.20 | %(g) |
| | | | | | | | | | | | |
|
Supplemental Data | |
Net assets, end of period (000) | | $ | 83,968 | | | | | | | $ | 63,971 | |
| | | | | | | | | | | | |
Borrowings outstanding, end of period (000) | | $ | 956,542 | | | | | | | $ | 767,480 | |
| | | | | | | | | | | | |
Portfolio turnover rate | | | 26 | % | | | | | | | 145 | % |
| | | | | | | | | | | | |
| (a) | Commencement of operations. |
| (b) | Based on average shares outstanding. |
| (c) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (d) | Where applicable, assumes the reinvestment of distributions. |
| (e) | Aggregate total return. |
| (f) | Excludes expenses incurred indirectly as a result of investments in underlying funds. |
| | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18
(unaudited) | | | | | | Period from
01/25/18 (a) to 05/31/18 | | | | |
Investments in underlying funds | | | 0.01 | % | | | | | | | 0.01 | % | | | | |
| | | | | | | | | | | | | | | | |
| (h) | Offering costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.74%. |
| (i) | Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details. |
See notes to financial statements.
| | |
| 88 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (unaudited)
BlackRock California Municipal Series Trust, BlackRock Multi-State Municipal Series Trust and BlackRock Municipal Series Trust (each, a “Trust” and collectively, the “Trusts”) are each registered under the Investment Company Act of 1940, as amended (the “1940 Act”), asopen-end management investment companies. Each Trust is organized as a Massachusetts business trust. The following are referred to herein collectively as the “Funds” and individually as a “Fund”:
| | | | | | |
| Registrant Name | | Fund Name | | Herein Referred To As | | Diversification
Classification |
BlackRock California Municipal Series Trust | | BlackRock California Municipal Opportunities Fund | | California Municipal Opportunities | | Diversified |
BlackRock Multi-State Municipal Series Trust | | BlackRock New Jersey Municipal Bond Fund | | New Jersey Municipal Bond | | Non-diversified |
| | BlackRock Pennsylvania Municipal Bond Fund | | Pennsylvania Municipal Bond | | Non-diversified |
BlackRock Municipal Series Trust | | BlackRock Strategic Municipal Opportunities Fund | | Strategic Municipal Opportunities | | Diversified |
Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional, Service and Class K Shares are sold only to certain eligible investors. Investor A and Investor C Shares are generally available through financial intermediaries. Investor A1 and C1 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans and, for California Municipal Opportunities only, fee based programs previously approved by the Fund. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures. Effective November 8, 2018, each Fund adopted an automatic conversion feature whereby Investor C and C1 Shares held for approximately ten years will be automatically converted into Investor A Shares, and, thereafter, investors will be subject to lower ongoing fees.
| | | | | | | | | | |
| Share Class | | Initial Sales Charge | | | CDSC | | | Conversion Privilege |
Institutional, Service and Class K(a) Shares | | | No | | | | No | | | None |
Investor A Shares | | | Yes | | | | No | (b) | | None |
Investor A1 Shares | | | No | (c) | | | No | (d) | | None |
Investor C Shares | | | No | | | | Yes | | | To Investor A Shares after approximately 10 years |
Investor C1 Shares | | | No | | | | No | (e) | | To Investor A Shares after approximately 10 years |
| | (a) | Commenced operations on January 25, 2018. | |
| | (b) | Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase. | |
| | (c) | Investor A1 Shares are subject to a maximum sales charge on purchases. The sales charge does not apply to dividend and capital gain reinvestments by existing shareholders and new purchases for certain employer-sponsored retirement plans or, for California Municipal Opportunities only, fee based programs previously approved by the Fund, which are currently the only investors who may invest in Investor A1 Shares. | |
| | (d) | Investor A1 Shares may be subject to CDSC for certain redemptions where no initial sales charge was paid at the time of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders, and for California Municipal Opportunities only, fee based programs previously approved by the Fund. | |
| | (e) | A CDSC of 1.00% is assessed on certain redemptions of Investor C1 Shares made within one year after purchase. The CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders, and for California Municipal Opportunities only, fee based programs previously approved by the Fund. | |
The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex ofopen-end funds referred to as the Equity-Bond Complex.
| 2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition:For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the “trade dates”). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on theex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.
Segregation and Collateralization:In cases where a Fund enters into certain investments (e.g., futures contracts) or certain borrowings (e.g., TOB Trust transactions) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowings to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.
Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on theex-dividend date and made at least annually. The portion of distributions, if any, that exceeds a Fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute anon-taxable return of capital. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 89 | |
Notes to Financial Statements (unaudited) (continued)
Offering Costs: Offering costs are amortized over a12-month period beginning with the commencement of operations of a class of shares.
Recent Accounting Standards: In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit,non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently evaluating the impact of this guidance to the Funds.
In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Funds.
Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.
Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Funds and other shared expenses prorated to the Funds are allocated daily to each class based on their relative net assets or other appropriate methods.
| 3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: The Funds’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of each Fund (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:
| | • | | Fixed-income securities for which market quotations are readily available are generally valued using the last available bid prices or current market quotations provided by independent dealers or third party pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more independent brokers or dealers as obtained from a third party pricing service. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value. |
| | • | | Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. |
| | • | | Exchange-traded funds (“ETFs”) traded on a recognized securities exchange are valued at the official closing price each day, if available. For ETFs traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. ETFs traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price. |
| | • | | Investments inopen-end U.S. mutual funds are valued at net asset value (“NAV”) each business day. |
| | • | | Futures contracts traded on exchanges are valued at their last sale price. |
If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in anarm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.
| | |
| 90 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:
| | • | | Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access. |
| | • | | 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 each Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/ornon-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.
Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
| 4. | SECURITIES AND OTHER INVESTMENTS |
Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.
Forward Commitments and When-Issued Delayed Delivery Securities: Certain funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A fund may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a fund may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.
Municipal Bonds Transferred to TOB Trusts: Certain funds leverage their assets through the use of “TOB Trust” transactions. The funds transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a fund provide the fund with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a fund has contributed bonds. If multiple BlackRock advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds ratably in proportion to their participation in the TOB Trust.
TOB Trusts are supported by a liquidity facility provided by a third party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.
The TOB Trust may be collapsed without the consent of a fund, upon the occurrence of a termination event as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Funds) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.
While a fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a fund to borrow money for purposes of making investments. Each fund’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a fund. A fund typically invests the cash received in additional municipal bonds.
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 91 | |
Notes to Financial Statements (unaudited) (continued)
Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a fund’s Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a fund’s payable to the holder of the TOB Trust Certificates or the Liquidity Provider, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates or Loan for TOB Trust Certificates, approximates its fair value.
Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a fund on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts tonon-bank sponsored TOB Trusts, a fund incurrednon-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of deferred offering costs in the Statements of Operations.
Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:
| | | | | | | | | | | | | | | | |
| | | Interest Expense | | | Liquidity Fees | | | Other Expenses | | | Total | |
California Municipal Opportunities | | $ | 1,369,630 | | | $ | 397,358 | | | $ | 114,120 | | | $ | 1,881,108 | |
New Jersey Municipal Bond | | | 123,112 | | | | 32,907 | | | | 22,122 | | | | 178,141 | |
Pennsylvania Municipal Bond | | | 523,462 | | | | 173,749 | | | | 41,238 | | | | 738,449 | |
Strategic Municipal Opportunities | | | 6,683,301 | | | | 2,021,624 | | | | 626,444 | | | | 9,331,369 | |
For the six months ended November 30, 2018, the following table is a summary of each Fund’s TOB Trusts:
| | | | | | | | | | | | | | | | | | | | |
| | | Underlying
Municipal Bonds
Transferred to
TOB Trusts (a) | | | Liability for
TOB Trust
Certificates (b) | | | Range of
Interest Rates
on TOB Trust
Certificates at
Period End | | | Average
TOB Trust
Certificates
Outstanding | | | Daily Weighted
Average Rate
of Interest and
Other Expenses
on TOB Trusts | |
California Municipal Opportunities | | $ | 515,487,056 | | | $ | 229,542,157 | | | | 1.64% — 1.94% | | | $ | 184,333,226 | | | | 2.03 | % |
New Jersey Municipal Bond | | | 27,941,768 | | | | 16,418,726 | | | | 1.69 — 1.84 | | | | 16,418,726 | | | | 2.17 | |
Pennsylvania Municipal Bond | | | 133,602,773 | | | | 71,297,070 | | | | 1.69 — 1.92 | | | | 70,778,001 | | | | 2.08 | |
Strategic Municipal Opportunities | | | 1,457,550,822 | | | | 960,842,452 | | | | 1.65 — 1.94 | | | | 913,112,519 | | | | 2.04 | |
| | (a) | The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the funds, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the funds, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts. | |
| | (b) | TOB Trusts may be structured on anon-recourse or recourse basis. When a fund invests in TOB Trusts on anon-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a fund invests in a TOB Trust on a recourse basis, a fund enters into a reimbursement agreement with the Liquidity Provider where a fund is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a fund invests in a recourse TOB Trust, a fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a fund at November 30, 2018, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a Fund at November 30, 2018. | |
For the six months ended November 30, 2018, the following table is a summary of each Fund’s Loan for TOB Trust Certificates:
| | | | | | | | | | | | | | | | |
| | | Loans Outstanding
at Period End | | | Range of
Interest Rates
on Loans at
Period End | | | Average
Loans
Outstanding | | | Daily Weighted Average Rate
of Interest and
Other Expenses
on Loans | |
California Municipal Opportunities | | $ | — | | | | — | | | $ | 609,453 | | | | 0.68 | % |
New Jersey Municipal Bond | | | — | | | | — | | | | — | | | | — | |
Pennsylvania Municipal Bond | | | — | | | | — | | | | — | | | | — | |
Strategic Municipal Opportunities | | | 4,300,500 | | | | 0.25% — 0.50 | % | | | 714,283 | | | | 0.80 | |
| 5. | DERIVATIVE FINANCIAL INSTRUMENTS |
The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchangeover-the-counter (“OTC”).
Futures Contracts:Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk), and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
| | |
| 92 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
Futures contracts are agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. 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 market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.
| 6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory:Each Trust, on behalf of its Funds, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser, an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory and administrative services. The Manager is responsible for the management of each Fund’s portfolio and provides the 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 an annual rate equal to the following percentages of the average daily value of each Fund’s net assets:
| | | | | | | | | | | | | | | | |
| | | Investment Advisory Fees | |
| Average Daily Net Assets | | California
Municipal
Opportunities | | | New Jersey
Municipal
Bond | | | Pennsylvania
Municipal
Bond | | | Strategic
Municipal
Opportunities | |
First $1 Billion | | | 0.38 | % | | | 0.52 | % | | | 0.52 | % | | | 0.55 | % |
$1 Billion — $3 Billion | | | 0.36 | | | | 0.49 | | | | 0.49 | | | | 0.52 | |
$3 Billion — $5 Billion | | | 0.34 | | | | 0.47 | | | | 0.47 | | | | 0.50 | |
$5 Billion — $10 Billion | | | 0.33 | | | | 0.45 | | | | 0.45 | | | | 0.48 | |
Greater than $10 Billion | | | 0.32 | | | | 0.44 | | | | 0.44 | | | | 0.47 | |
Service and Distribution Fees:Each Trust, on behalf of its Funds, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule12b-1 under the 1940 Act, each Fund pays 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 relevant share class of each Fund as follows:
| | | | | | | | | | | | | | | | |
| | | Service Fees | |
| | | California
Municipal
Opportunities | | | New Jersey
Municipal
Bond | | | Pennsylvania
Municipal
Bond | | | Strategic
Municipal
Opportunities | |
Service | | | N/A | | | | 0.25 | % | | | 0.25 | % | | | N/A | |
Investor A | | | 0.25 | % | | | 0.25 | | | | 0.25 | | | | 0.25 | % |
Investor A1 | | | 0.10 | | | | 0.10 | | | | 0.10 | | | | 0.10 | |
Investor C | | | 0.25 | | | | 0.25 | | | | 0.25 | | | | 0.25 | |
Investor C1 | | | 0.25 | | | | 0.25 | | | | 0.25 | | | | — | |
| | | | | | | | | | | | | | | | |
| | | Distribution Fees | |
| | | California
Municipal
Opportunities | | | New Jersey
Municipal
Bond | | | Pennsylvania
Municipal
Bond | | | Strategic
Municipal
Opportunities | |
Investor C | | | 0.75 | % | | | 0.75 | % | | | 0.75 | % | | | 0.75 | % |
Investor C1 | | | 0.35 | | | | 0.35 | | | | 0.35 | | | | N/A | |
BRIL and broker-dealers, pursuant tosub-agreements with BRIL, provide shareholder servicing and distribution services to the Funds. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.
For the six months ended November 30, 2018, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:
| | | | | | | | | | | | | | | | | | | | | | | | |
| Service and Distribution Fees | | Service | | | Investor A | | | Investor A1 | | | Investor C | | | Investor C1 | | | Total | |
California Municipal Opportunities | | $ | — | | | $ | 880,399 | | | $ | 58,256 | | | $ | 656,243 | | | $ | 6,466 | | | $ | 1,601,364 | |
New Jersey Municipal Bond | | | 9,760 | | | | 93,563 | | | | 10,086 | | | | 148,112 | | | | 3,596 | | | | 265,117 | |
Pennsylvania Municipal Bond. | | | 2,089 | | | | 120,421 | | | | 6,475 | | | | 156,021 | | | | 4,184 | | | | 289,190 | |
Strategic Municipal Opportunities. | | | — | | | | 1,947,309 | | | | 14,331 | | | | 1,388,614 | | | | — | | | | 3,350,254 | |
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 93 | |
Notes to Financial Statements (unaudited) (continued)
Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds withsub-accounting, recordkeeping,sub-transfer agency and other administrative services with respect tosub-accounts they service. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the six months ended November 30, 2018, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:
| | | | | | | | | | | | | | | | | | | | |
| | | Institutional | | | Service | | | Investor A | | | Class C | | | Total | |
New Jersey Municipal Bond | | $ | 67,066 | | | $ | — | | | $ | — | | | $ | — | | | $ | 67,066 | |
Pennsylvania Municipal Bond | | | 231,669 | | | | — | | | | — | | | | 43 | | | | 231,712 | |
Strategic Municipal Opportunities | | | 463,482 | | | | — | | | | 20 | | | | — | | | | 463,502 | |
The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the six months ended November 30, 2018, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional | | | Service | | | Investor A | | | Investor A1 | | | Investor C | | | Investor C1 | | | Class K | | | Total | |
California Municipal Opportunities | | $ | 1,046 | | | $ | — | | | $ | 1,150 | | | $ | 918 | | | $ | 318 | �� | | $ | 58 | | | $ | 12 | | | $ | 3,502 | |
New Jersey Municipal Bond | | | 245 | | | | 540 | | | | 360 | | | | 409 | | | | 146 | | | | 58 | | | | — | | | | 1,758 | |
Pennsylvania Municipal Bond | | | 369 | | | | 58 | | | | 482 | | | | 470 | | | | 467 | | | | 9 | | | | — | | | | 1,855 | |
Strategic Municipal Opportunities | | | 11,812 | | | | — | | | | 4,590 | | | | 117 | | | | 2,048 | | | | — | | | | — | | | | 18,567 | |
For the six months ended November 30, 2018, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional | | | Service | | | Investor A | | | Investor A1 | | | Investor C | | | Investor C1 | | | Class K | | | Total | |
California Municipal Opportunities | | $ | 275,414 | | | $ | — | | | $ | 179,326 | | | $ | 20,883 | | | $ | 35,265 | | | $ | 347 | | | $ | 192 | | | $ | 511,427 | |
New Jersey Municipal Bond | | | 85,579 | | | | 3,737 | | | | 24,790 | | | | 4,498 | | | | 8,584 | | | | 209 | | | | 18 | | | | 127,415 | |
Pennsylvania Municipal Bond | | | 264,222 | | | | 1,111 | | | | 27,872 | | | | 4,173 | | | | 10,887 | | | | 164 | | | | 72 | | | | 308,501 | |
Strategic Municipal Opportunities | | | 2,256,263 | | | | — | | | | 376,548 | | | | 6,413 | | | | 72,137 | | | | — | | | | 1,044 | | | | 2,712,405 | |
Other Fees: For the six months ended November 30, 2018, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:
| | | | | | | | | | | | | | | | |
| | | California
Municipal
Opportunities | | | New Jersey
Municipal
Bond | | | Pennsylvania
Municipal
Bond | | | Strategic
Municipal
Opportunities | |
Investor A | | $ | 9,611 | | | $ | 3,263 | | | $ | 1,491 | | | $ | — | |
For the six months ended November 30, 2018, affiliates received CDSCs as follows:
| | | | | | | | | | | | | | | | |
| | | California
Municipal
Opportunities | | | New Jersey
Municipal
Bond | | | Pennsylvania
Municipal
Bond | | | Strategic
Municipal
Opportunities | |
Investor A | | $ | 26,217 | | | $ | 9,962 | | | $ | 5,194 | | | $ | — | |
Investor C | | | 8,251 | | | | 1,210 | | | | 1,395 | | | | — | |
Expense Limitations, Waivers, Reimbursements, and Recoupments:With respect to Strategic Municipal Opportunities, theManager contractually agreed to waive a portion of its investment advisory fees equal to the annual rate of 0.05% of the Fund’s average daily net assets through September 30, 2019. The agreement may be terminated upon 90 days’ notice by a majority trustees of BlackRock Municipal Series Trust who are not ‘‘interested persons’’ of the Fund, as defined in the 1940 Act (‘‘Independent Trustees”) or by a vote of a majority of the outstanding voting securities of the Fund. For the six months ended November 30, 2018, the Manager waived $2,128,489which is included in fees waived and/or reimbursed by the Manager in the Statements of Operations.
With respect to each Fund, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended November 30, 2018, the amounts waived were as follows:
| | | | | | | | | | | | | | | | |
| | | California
Municipal
Opportunities | | | New Jersey
Municipal
Bond | | | Pennsylvania
Municipal
Bond | | | Strategic
Municipal
Opportunities | |
Amount waived | | $ | 71,013 | | | $ | 4,369 | | | $ | 1,842 | | | $ | 81,734 | |
The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through September 30, 2019. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of a Fund. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations.
| | |
| 94 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
For the six months ended November 30, 2018, the amount waived in investment advisory fees pursuant to these arrangements were as follows:
| | | | | | | | |
| | | California
Municipal
Opportunities | | | Strategic
Municipal
Opportunities | |
Amount waived | | $ | 102,706 | | | $ | 403,285 | |
The Funds have begun to incur expenses in connection with a proposed realignment and consolidation of the boards of trustees of certain BlackRock-advised funds. The Manager has voluntarily agreed to reimburse certain Funds for all or a portion of such expenses, which amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations.
For the six months ended November 30, 2018, the amounts reimbursed were as follows:
| | | | | | | | |
| | | California
Municipal
Opportunities | | | Strategic
Municipal
Opportunities | |
Amount reimbursed | | $ | 14,986 | | | $ | 62,107 | |
With respect to California Municipal Opportunities, New Jersey Municipal Bond and Pennsylvania Municipal Bond, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, that constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business (“expense limitation”). The current expense limitations as a percentage of average daily net assets are as follows:
| | | | | | | | | | | | |
| Share Class | | California
Municipal
Opportunities | | | New Jersey
Municipal
Bond | | | Pennsylvania
Municipal
Bond | |
Institutional | | | 0.44 | % | | | 0.52 | % | | | 0.54 | % |
Service | | | — | | | | 0.77 | | | | 0.79 | |
Investor A | | | 0.69 | | | | 0.77 | | | | 0.79 | |
Investor A1 | | | 0.54 | | | | 0.62 | | | | 0.64 | |
Investor C | | | 1.44 | | | | 1.52 | | | | 1.54 | |
Investor C1 | | | 1.04 | | | | 1.12 | | | | 1.14 | |
Class K(a) | | | 0.39 | | | | 0.47 | | | | 0.49 | |
| | (a) | Effective January 25, 2018, implemented contractual cap upon launch through September 30, 2019. | |
With respect to New Jersey Municipal Bond and Pennsylvania Municipal Bond, prior to December 29, 2017, the expense limitations as a percentage of average daily net assets were as follows:
| | | | |
Institutional | | | 0.55 | % |
Service | | | 0.80 | |
Investor A | | | 0.80 | |
Investor A1 | | | 0.65 | |
Investor C | | | 1.55 | |
Investor C1 | | | 1.15 | |
The Manager has agreed not to reduce or discontinue these contractual expense limitations through September 30, 2019, unless approved by the Board, including a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the applicable Fund.
In addition, the following Funds had a waiver of investment advisory fees, which are included in fees waived and/or reimbursed by Manager in the Statements of Operations. For the six months ended November 30, 2018, the amounts as follows:
| | | | | | | | | | | | |
| | | California
Municipal
Opportunities | | | New Jersey
Municipal
Bond | | | Pennsylvania
Municipal
Bond | |
Amount waived | | $ | 40,212 | | | $ | 229,119 | | | $ | 267,960 | |
For the six months ended November 30, 2018, the Funds reimbursed the Manager for certain accounting services, which are included in accounting services in the Statements of Operations. The reimbursements were as follows:
| | | | | | | | | | | | | | | | |
| | | California
Municipal
Opportunities | | | New Jersey
Municipal
Bond | | | Pennsylvania
Municipal
Bond | | | Strategic
Municipal
Opportunities | |
Amount reimbursed | | $ | 9,987 | | | $ | 1,560 | | | $ | 2,688 | | | $ | 35,988 | |
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 95 | |
Notes to Financial Statements (unaudited) (continued)
For the six months ended November 30, 2018, the amounts included in transfer agent fees waived and/or reimbursed — class specific in the Statements of Operations were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Institutional | | | Service | | | Investor A | | | Investor A1 | | | Investor C | | | Investor C1 | | | Class K | | | Total | |
California Municipal Opportunities | | $ | 246 | | | $ | — | | | $ | 2,530 | | | $ | — | | | $ | 2,541 | | | $ | 23 | | | $ | 175 | | | $ | 5,515 | |
New Jersey Municipal Bond | | | 46,591 | | | | 1,785 | | | | 6,079 | | | | — | | | | 1,178 | | | | 21 | | | | 17 | | | | 55,671 | |
Pennsylvania Municipal Bond | | | 175,354 | | | | 693 | | | | 3,787 | | | | 937 | | | | 3,094 | | | | 12 | | | | 71 | | | | 183,948 | |
With respect to the contractual expense limitation, if during California Municipal Opportunities’ fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:
| | (1) | The Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year; and |
| | (2) | The Manager or an affiliate continues to serve as the Fund’s investment adviser or administrator. |
This repayment applies only to the contractual expense limitation on net expenses for California Municipal Opportunities and does not apply to the contractual investment advisory fee waiver described above or any voluntary waivers that may be in effect from time to time.
For the six months ended November 30, 2018, the Manager recouped the following class specific waivers and/or reimbursements previously recorded by California Municipal Opportunities:
| | | | |
Institutional | | $ | 98,631 | |
Investor A | | | 6,347 | |
Investor A1 | | | 9,519 | |
Investor C | | | 1,517 | |
Investor C1 | | | 191 | |
On November 30, 2018, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement for California Municipal Opportunities are as follows:
| | | | | | | | | | | | |
| | | Expiring May 31, | |
| | | 2019 | | | 2020 | | | 2021 | |
Fund Level | | $ | 2,422 | | | $ | 166,101 | | | $ | 40,212 | |
Institutional | | | 18,720 | | | | 101,444 | | | | 246 | |
Investor A | | | 23,850 | | | | 7,210 | | | | 2,530 | |
Investor A1 | | | — | | | | 3,506 | | | | — | |
Investor C | | | 21,792 | | | | 10,578 | | | | 2,541 | |
Investor C1 | | | 831 | | | | 599 | | | | 23 | |
Class K | | | — | | | | — | | | | 175 | |
Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow under the Interfund Lending Program.
A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.
During the six months ended November 30, 2018, the Funds did not participate in the Interfund Lending Program.
Trustees and Officers: Certain Trustees and/or officers of the Funds are trustees and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.
For the six months ended November 30, 2018, purchases and sales of investments, excluding short-term securities, were as follows:
| | | | | | | | | | | | | | | | |
| | | California Municipal Opportunities | | | New Jersey Municipal Bond | | | Pennsylvania Municipal Bond | | | Strategic Municipal Opportunities | |
Purchases | | $ | 2,451,072,803 | | | $ | 35,894,057 | | | $ | 56,472,172 | | | $ | 4,328,125,026 | |
Sales | | | 1,588,398,565 | | | | 33,277,624 | | | | 62,927,460 | | | | 2,372,053,796 | |
| | |
| 96 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
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 U.S. federal income tax provision is required.
Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for each of the four years ended May 31, 2018. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.
Management has analyzed tax laws and regulations and their application to the Funds as of November 30, 2018, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.
As of May 31, 2018, the Funds had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:
| | | | | | | | |
| Expires May 31, | | New Jersey Municipal
Bond | | | Pennsylvania Municipal
Bond | |
No expiration date(a) | | $ | 2,583,403 | | | $ | 11,432,887 | |
2019 | | | 243,757 | | | | 720,781 | |
| | | | | | | | |
| | $ | 2,827,160 | | | $ | 12,153,668 | |
| | | | | | | | |
| | (a) | Must be utilized prior to losses subject to expiration. | |
As of November 30, 2018, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:
| | | | | | | | | | | | | | | | |
| | | California Municipal
Opportunities | | | New Jersey Municipal
Bond | | | Pennsylvania Municipal
Bond | | | Strategic
Municipal Opportunities | |
Tax cost | | $ | 2,632,097,329 | | | $ | 270,710,803 | | | $ | 482,582,367 | | | $ | 9,271,276,314 | |
| | | | | | | | | | | | | | | | |
Gross unrealized appreciation | | $ | 20,862,701 | | | $ | 12,277,375 | | | $ | 13,225,045 | | | $ | 64,756,641 | |
Gross unrealized depreciation | | | (32,480,854 | ) | | | (2,480,921 | ) | | | (5,986,190 | ) | | | (173,641,721 | ) |
| | | | | | | | | | | | | | | | |
Net unrealized appreciation/(depreciation) | | $ | (11,618,153 | ) | | $ | 9,796,454 | | | $ | 7,238,855 | | | $ | (108,885,080 | ) |
| | | | | | | | | | | | | | | | |
Each Trust, on behalf of its Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of(a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2019 unless extended or renewed. Prior to April 19, 2018, the aggregate commitment amount was $2.1 billion and the fee was 0.12% per annum. Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statements of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the six months ended November 30, 2018, the Funds did not borrow under the credit agreement.
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.
Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Fund’s ability to buy or sell bonds. As a result, a Fund may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Fund needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.
In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Each Fund’s prospectus provides details of the risks to which each Fund is subject.
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 97 | |
Notes to Financial Statements (unaudited) (continued)
Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolio’s current earnings rate.
The Funds may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Funds reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Fund.
A Fund structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.
Should short-term interest rates rise, the Funds’ investments in the TOB Trusts 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 Trust may adversely affect the Funds’ NAVs per share.
The SEC and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Funds’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.
TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Funds, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.
Counterparty Credit Risk:The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes 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 approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.
A derivative contract may suffer amark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists inexchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.
Concentration Risk:Each Fund invests a substantial amount of its assets in issuers located in a single state or limited number of states. This may subject each Fund to the risk that economic, political or social issues impacting a particular state or group of states could have an adverse and disproportionate impact on the income from, or the value or liquidity of, the Funds’ respective portfolios. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.
As of period end, California Municipal Opportunities invested a significant portion of its assets in securities in the county, city, health, special district and school district sector. New Jersey Municipal Bond, Pennsylvania Municipal Bond and Strategic Municipal Opportunities invested a significant portion of their assets in securities in the transportation sector. Changes in economic conditions affecting such sectors would have a greater impact on the Funds and could affect the value, income and/or liquidity of positions in such securities.
Certain Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates. The Federal Reserve has begun to raise the Federal Funds rate, and each increase results in more pronounced interest rate risk in the current market environment.
| | |
| 98 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
| 11. | CAPITAL SHARE TRANSACTIONS |
Transactions in capital shares for each class were as follows:
| | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18 | | | Year Ended
05/31/18 | |
| BlackRock California Municipal Opportunities Fund | | Shares | | | Amount | | | Shares | | | Amount | |
Institutional | | | | | | | | | | | | | | | | |
Shares sold | | | 49,854,375 | | | $ | 632,271,501 | | | | 62,704,887 | | | $ | 795,369,501 | |
Shares issued in reinvestment of distributions | | | 1,191,219 | | | | 15,095,327 | | | | 1,712,582 | | | | 21,717,935 | |
Shares redeemed | | | (19,094,974 | ) | | | (241,041,466 | ) | | | (19,709,216 | ) | | | (249,993,714 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 31,950,620 | | | $ | 406,325,362 | | | | 44,708,253 | | | $ | 567,093,722 | |
| | | | | | | | | | | | | | | | |
| | | | |
Investor A | | | | | | | | | | | | | | | | |
Shares sold and automatic conversion of shares | | | 19,322,310 | | | $ | 244,947,564 | | | | 23,708,717 | | | $ | 300,459,601 | |
Shares issued in reinvestment of distributions | | | 598,248 | | | | 7,573,454 | | | | 1,017,860 | | | | 12,895,140 | |
Shares redeemed | | | (7,930,604 | ) | | | (100,522,019 | ) | | | (10,047,996 | ) | | | (127,293,969 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 11,989,954 | | | $ | 151,998,999 | | | | 14,678,581 | | | $ | 186,060,772 | |
| | | | | | | | | | | | | | | | |
| | | | |
Investor A1 | | | | | | | | | | | | | | | | |
Shares sold | | | 124 | | | $ | 1,578 | | | | 6,682 | | | $ | 85,173 | |
Shares issued in reinvestment of distributions | | | 66,727 | | | | 845,828 | | | | 158,985 | | | | 2,014,908 | |
Shares redeemed | | | (423,715 | ) | | | (5,361,782 | ) | | | (882,640 | ) | | | (11,202,856 | ) |
| | | | | | | | | | | | | | | | |
Net decrease | | | (356,864 | ) | | $ | (4,514,376 | ) | | | (716,973 | ) | | $ | (9,102,775 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Investor C | | | | | | | | | | | | | | | | |
Shares sold | | | 2,032,049 | | | $ | 25,797,715 | | | | 2,785,365 | | | $ | 35,314,252 | |
Shares issued in reinvestment of distributions | | | 73,589 | | | | 932,765 | | | | 164,405 | | | | 2,084,839 | |
Shares redeemed and automatic conversion of shares | | | (1,045,635 | ) | | | (13,248,638 | ) | | | (2,199,443 | ) | | | (27,882,829 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 1,060,003 | | | $ | 13,481,842 | | | | 750,327 | | | $ | 9,516,262 | |
| | | | | | | | | | | | | | | | |
| | | | |
Investor C1 | | | | | | | | | | | | | | | | |
Shares sold | | | — | | | $ | 68 | | | | 3 | | | $ | 43 | |
Shares issued in reinvestment of distributions | | | 1,611 | | | | 20,428 | | | | 4,988 | | | | 63,236 | |
Shares redeemed and automatic conversion of shares | | | (180,276 | ) | | | (2,263,548 | ) | | | (29,918 | ) | | | (378,853 | ) |
| | | | | | | | | | | | | | | | |
Net decrease | | | (178,665 | ) | | $ | (2,243,052 | ) | | | (24,927 | ) | | $ | (315,574 | ) |
| | | | | | | | | | | | | | | | |
| | |
| | | | | | Period from
01/25/18 (a)
to 05/31/18 | |
Class K | |
Shares sold | | | 1,362,691 | | | $ | 17,259,148 | | | | 2,886,027 | | | $ | 36,762,023 | |
Shares issued in reinvestment of distributions | | | 43,610 | | | | 552,843 | | | | 4,983 | | | | 63,455 | |
Shares redeemed | | | (1,082,582 | ) | | | (13,642,100 | ) | | | (35,782 | ) | | | (455,002 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 323,719 | | | $ | 4,169,891 | | | | 2,855,228 | | | $ | 36,370,476 | |
| | | | | | | | | | | | | | | | |
Total Net Increase | | | 44,788,767 | | | $ | 569,218,666 | | | | 62,250,489 | | | $ | 789,622,883 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18 | | | Year Ended
05/31/18 | |
| BlackRock New Jersey Municipal Bond Fund | | Shares | | | Amount | | | Shares | | | Amount | |
Institutional | | | | | | | | | | | | | | | | |
Shares sold | | | 1,510,141 | | | $ | 16,552,582 | | | | 2,986,027 | | | $ | 33,221,276 | |
Shares issued in reinvestment of distributions | | | 148,331 | | | | 1,624,529 | | | | 263,189 | | | | 2,913,995 | |
Shares redeemed | | | (1,353,757 | ) | | | (14,741,019 | ) | | | (2,231,251 | ) | | | (24,676,792 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 304,715 | | | $ | 3,436,092 | | | | 1,017,965 | | | $ | 11,458,479 | |
| | | | | | | | | | | | | | | | |
| | | | |
Service | | | | | | | | | | | | | | | | |
Shares sold | | | 1,966 | | | $ | 21,680 | | | | 64,813 | | | $ | 723,671 | |
Shares issued in reinvestment of distributions | | | 11,380 | | | | 124,630 | | | | 21,946 | | | | 243,003 | |
Shares redeemed | | | (27,977 | ) | | | (305,292 | ) | | | (237,786 | ) | | | (2,635,790 | ) |
| | | | | | | | | | | | | | | | |
Net decrease | | | (14,631 | ) | | $ | (158,982 | ) | | | (151,027 | ) | | $ | (1,669,116 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 99 | |
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18 | | | Year Ended
05/31/18 | |
| BlackRock New Jersey Municipal Bond Fund (continued) | | Shares | | | Amount | | | Shares | | | Amount | |
| | | | |
Investor A | | | | | | | | | | | | | | | | |
Shares sold and automatic conversion of shares | | | 1,469,199 | | | $ | 16,056,570 | | | | 1,690,680 | | | $ | 18,817,701 | |
Shares issued in reinvestment of distributions | | | 108,728 | | | | 1,191,612 | | | | 215,836 | | | | 2,392,225 | |
Shares redeemed | | | (1,486,707 | ) | | | (16,172,816 | ) | | | (2,386,935 | ) | | | (26,536,296 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 91,220 | | | $ | 1,075,366 | | | | (480,419 | ) | | $ | (5,326,370 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Investor A1 | | | | | | | | | | | | | | | | |
Shares sold | | | 11 | | | $ | 133 | | | | 5,619 | | | $ | 62,731 | |
Shares issued in reinvestment of distributions | | | 21,539 | | | | 236,225 | | | | 42,546 | | | | 471,430 | |
Shares redeemed | | | (75,796 | ) | | | (829,153 | ) | | | (242,642 | ) | | | (2,686,771 | ) |
| | | | | | | | | | | | | | | | |
Net decrease | | | (54,246 | ) | | $ | (592,795 | ) | | | (194,477 | ) | | $ | (2,152,610 | ) |
| | | | | | | | | | | | | | | | |
| | | | |
Investor C | | | | | | | | | | | | | | | | |
Shares sold | | | 288,568 | | | $ | 3,161,378 | | | | 600,631 | | | $ | 6,658,287 | |
Shares issued in reinvestment of distributions | | | 30,647 | | | | 335,595 | | | | 57,477 | | | | 636,275 | |
Shares redeemed and automatic conversion of shares | | | (365,002 | ) | | | (3,975,373 | ) | | | (635,629 | ) | | | (7,060,246 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (45,787 | ) | | $ | (478,400 | ) | | | 22,479 | | | $ | 234,316 | |
| | | | | | | | | | | | | | | | |
| | | | |
Investor C1 | | | | | | | | | | | | | | | | |
Shares sold | | | — | | | $ | (125 | ) | | | 2 | | | $ | 18 | |
Shares issued in reinvestment of distributions | | | 1,651 | | | | 18,095 | | | | 3,714 | | | | 41,116 | |
Shares redeemed and automatic conversion of shares | | | (121,862 | ) | | | (1,315,422 | ) | | | (8,454 | ) | | | (93,933 | ) |
| | | | | | | | | | | | | | | | |
Net decrease | | | (120,211 | ) | | $ | (1,297,452 | ) | | | (4,738 | ) | | $ | (52,799 | ) |
| | | | | | | | | | | | | | | | |
| | |
| | | | | | Period from
01/25/18 (a)
05/31/18 | |
Class K | | | | | | | | | | | | | | | | |
Shares sold | | | 24,150 | | | $ | 266,214 | | | | 167,712 | | | $ | 1,842,979 | |
Shares issued in reinvestment of distributions | | | 2,761 | | | | 30,235 | | | | 1,109 | | | | 12,192 | |
Shares redeemed | | | (19,843 | ) | | | (219,040 | ) | | | (8,042 | ) | | | (88,544 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 7,068 | | | $ | 77,409 | | | | 160,779 | | | $ | 1,766,627 | |
| | | | | | | | | | | | | | | | |
Total Net Increase | | | 168,128 | | | $ | 2,061,238 | | | | 370,562 | | | $ | 4,258,527 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18 | | | Year Ended
05/31/18 | |
| BlackRock Pennsylvania Municipal Bond Fund | | Shares | | | Amount | | | Shares | | | Amount | |
Institutional | |
Shares sold | | | 4,061,661 | | | $ | 43,864,830 | | | | 10,292,937 | | | $ | 114,183,689 | |
Shares issued in reinvestment of distributions | | | 243,013 | | | | 2,634,870 | | | | 385,158 | | | | 4,259,533 | |
Shares redeemed | | | (4,564,261 | ) | | | (49,137,003 | ) | | | (4,864,889 | ) | | | (53,782,174 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (259,587 | ) | | $ | (2,637,303 | ) | | | 5,813,206 | | | $ | 64,661,048 | |
| | | | | | | | | | | | | | | | |
|
Service | |
Shares sold | | | 959 | | | $ | 10,451 | | | | 64,724 | | | $ | 715,640 | |
Shares issued in reinvestment of distributions | | | 2,837 | | | | 30,804 | | | | 5,211 | | | | 57,766 | |
Shares redeemed | | | (56,135 | ) | | | (601,948 | ) | | | (34,872 | ) | | | (387,104 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (52,339 | ) | | $ | (560,693 | ) | | | 35,063 | | | $ | 386,302 | |
| | | | | | | | | | | | | | | | |
|
Investor A | |
Shares sold and automatic conversion of shares | | | 1,511,453 | | | $ | 16,320,897 | | | | 2,832,504 | | | $ | 31,578,196 | |
Shares issued in reinvestment of distributions | | | 150,773 | | | | 1,635,894 | | | | 352,373 | | | | 3,913,032 | |
Shares redeemed | | | (1,374,323 | ) | | | (14,938,108 | ) | | | (5,853,729 | ) | | | (65,335,757 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | 287,903 | | | $ | 3,018,683 | | | | (2,668,852 | ) | | $ | (29,844,529 | ) |
| | | | | | | | | | | | | | | | |
|
Investor A1 | |
Shares sold | | | — | | | $ | 10 | | | | 1,145 | | | $ | 12,791 | |
Shares issued in reinvestment of distributions | | | 12,908 | | | | 140,159 | | | | 26,510 | | | | 294,145 | |
Shares redeemed | | | (279,117 | ) | | | (3,003,583 | ) | | | (136,134 | ) | | | (1,510,949 | ) |
| | | | | | | | | | | | | | | | |
Net decrease | | | (266,209 | ) | | $ | (2,863,414 | ) | | | (108,479 | ) | | $ | (1,204,013 | ) |
| | | | | | | | | | | | | | | | |
| | |
| 100 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
| | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18 | | | Year Ended
05/31/18 | |
| BlackRock Pennsylvania Municipal Bond Fund (continued) | | Shares | | | Amount | | | Shares | | | Amount | |
|
Investor C | |
Shares sold | | | 139,071 | | | $ | 1,507,039 | | | | 398,592 | | | $ | 4,438,550 | |
Shares issued in reinvestment of distributions | | | 38,804 | | | | 421,070 | | | | 83,407 | | | | 924,849 | |
Shares redeemed and automatic conversion of shares | | | (353,771 | ) | | | (3,821,625 | ) | | | (540,400 | ) | | | (5,993,761 | ) |
| | | | | | | | | | | | | | | | |
Net decrease | | | (175,896 | ) | | $ | (1,893,516 | ) | | | (58,401 | ) | | $ | (630,362 | ) |
| | | | | | | | | | | | | | | | |
|
Investor C1 | |
Shares sold | | | 5 | | | $ | (332 | ) | | | — | | | $ | 5 | |
Shares issued in reinvestment of distributions | | | 2,106 | | | | 22,859 | | | | 4,873 | | | | 53,973 | |
Shares redeemed and automatic conversion of shares | | | (131,646 | ) | | | (1,405,486 | ) | | | (1,488 | ) | | | (16,603 | ) |
| | | | | | | | | | | | | | | | |
Net increase (decrease) | | | (129,535 | ) | | $ | (1,382,959 | ) | | | 3,385 | | | $ | 37,375 | |
| | | | | | | | | | | | | | | | |
| | |
| | | | | | Period from
01/25/18 (a)
to 05/31/18 | |
Class K | | | | | | | | | | | | | | | | |
Shares sold | | | 50,323 | | | $ | 542,191 | | | | 229,838 | | | $ | 2,514,155 | |
Shares issued in reinvestment of distributions | | | 4,297 | | | | 46,560 | | | | 1,637 | | | | 17,912 | |
Shares redeemed | | | (28,262 | ) | | | (305,213 | ) | | | (4,841 | ) | | | (52,889 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 26,358 | | | $ | 283,538 | | | | 226,634 | | | $ | 2,479,178 | |
| | | | | | | | | | | | | | | | |
Total Net Increase (Decrease) | | | (569,305 | ) | | $ | (6,035,664 | ) | | | 3,242,556 | | | $ | 35,884,999 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | Six Months Ended
11/30/18 | | | Year Ended
05/31/18 | |
| BlackRock Strategic Municipal Opportunities Fund | | Shares | | | Amount | | | Shares | | | Amount | |
Institutional | |
Shares sold | | | 180,604,982 | | | $ | 2,106,945,215 | | | | 246,959,050 | | | $ | 2,883,901,310 | |
Shares issued in reinvestment of distributions | | | 6,510,182 | | | | 75,881,245 | | | | 7,736,733 | | | | 90,194,483 | |
Shares redeemed | | | (67,231,629 | ) | | | (780,556,417 | ) | | | (65,457,559 | ) | | | (763,801,344 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 119,883,535 | | | $ | 1,402,270,043 | | | | 189,238,224 | | | $ | 2,210,294,449 | |
| | | | | | | | | | | | | | | | |
|
Investor A | |
Shares sold and automatic conversion of shares | | | 32,696,080 | | | $ | 381,387,641 | | | | 50,862,911 | | | $ | 593,342,404 | |
Shares issued in reinvestment of distributions | | | 1,750,193 | | | | 20,390,870 | | | | 2,491,600 | | | | 29,024,685 | |
Shares redeemed | | | (18,606,550 | ) | | | (216,065,350 | ) | | | (21,362,682 | ) | | | (249,126,409 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 15,839,723 | | | $ | 185,713,161 | | | | 31,991,829 | | | $ | 373,240,680 | |
| | | | | | | | | | | | | | | | |
|
Investor A1 | |
Shares sold | | | 12 | | | $ | 136 | | | | 1,629 | | | $ | 19,104 | |
Shares issued in reinvestment of distributions | | | 23,370 | | | | 272,401 | | | | 43,179 | | | | 502,806 | |
Shares redeemed | | | (79,976 | ) | | | (933,056 | ) | | | (210,354 | ) | | | (2,452,599 | ) |
| | | | | | | | | | | | | | | | |
Net decrease | | | (56,594 | ) | | $ | (660,519 | ) | | | (165,546 | ) | | $ | (1,930,689 | ) |
| | | | | | | | | | | | | | | | |
|
Investor C | |
Shares sold | | | 3,535,748 | | | $ | 41,279,336 | | | | 5,485,639 | | | $ | 64,003,026 | |
Shares issued in reinvestment of distributions | | | 222,561 | | | | 2,593,972 | | | | 360,679 | | | | 4,202,630 | |
Shares redeemed and automatic conversion of shares | | | (2,421,465 | ) | | | (28,220,022 | ) | | | (4,722,846 | ) | | | (55,051,676 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 1,336,844 | | | $ | 15,653,286 | | | | 1,123,472 | | | $ | 13,153,980 | |
| | | | | | | | | | | | | | | | |
| | | |
| | | | | | | | | Period from
01/25/18 (a)
to 05/31/18 | |
Class K | |
Shares sold | | | 2,630,547 | | | $ | 30,561,663 | | | | 5,591,102 | | | $ | 65,377,205 | |
Shares issued in reinvestment of distributions | | | 82,105 | | | | 956,955 | | | | 19,055 | | | | 222,912 | |
Shares redeemed | | | (908,840 | ) | | | (10,565,759 | ) | | | (165,423 | ) | | | (1,933,722 | ) |
| | | | | | | | | | | | | | | | |
Net increase | | | 1,803,812 | | | $ | 20,952,859 | | | | 5,444,734 | | | $ | 63,666,395 | |
| | | | | | | | | | | | | | | | |
Total Net Increase | | | 138,807,320 | | | $ | 1,623,928,830 | | | | 227,632,713 | | | $ | 2,658,424,815 | |
| | | | | | | | | | | | | | | | |
| | (a) | Commencement of operations. | |
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 101 | |
Notes to Financial Statements (unaudited) (continued)
As of November 30, 2018, shares owned by BlackRock HoldCo 2, Inc., an affiliate of the Funds, were as follows:
| | | | |
| | | Class K | |
California Municipal Opportunities | | | 15,811 | |
New Jersey Municipal Bond | | | 18,124 | |
Pennsylvania Municipal Bond | | | 18,204 | |
Strategic Municipal Opportunities | | | 17,136 | |
| 12. | REGULATIONS-X AMENDMENTS |
On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act ReleaseNo. 33-10532, Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to RegulationS-X in this shareholder report. The amendments impacted certain disclosure presentation on the Statements of Assets and Liabilities, Statements of Changes in Net Assets and Notes to Financial Statements.
Prior year distribution information and undistributed net investment income in the Statements of Changes in Net Assets has been modified to conform to the current year presentation in accordance with the RegulationS-X changes.
Distributions for the year ended May 31, 2018 were classified as follows:
| | | | | | | | | | |
| | | Class | | Net Investment Income | | | Net Realized Gain | |
California Municipal Opportunities | | Institutional | | $ | 23,475,635 | | | $ | 2,842,373 | |
| | Investor A | | | 12,510,916 | | | | 1,604,174 | |
| | Investor A1 | | | 3,201,830 | | | | 389,919 | |
| | Investor C | | | 1,977,683 | | | | 363,855 | |
| | Investor C1 | | | 55,063 | | | | 8,281 | |
| | Class K | | | 64,324 | | | | — | |
New Jersey Municipal Bond | | Institutional | | | 5,466,207 | | | | — | |
| | Service | | | 279,012 | | | | — | |
| | Investor A | | | 2,579,621 | | | | — | |
| | Investor A1 | | | 756,468 | | | | — | |
| | Investor C | | | 759,230 | | | | — | |
| | Investor C1 | | | 41,155 | | | | — | |
| | Class K | | | 13,422 | | | | — | |
Pennsylvania Municipal Bond | | Institutional | | | 13,256,749 | | | | — | |
| | Service | | | 58,703 | | | | — | |
| | Investor A | | | 4,371,905 | | | | — | |
| | Investor A1 | | | 578,208 | | | | — | |
| | Investor C | | | 1,019,422 | | | | — | |
| | Investor C1 | | | 54,763 | | | | — | |
| | Class K | | | 19,222 | | | | — | |
Strategic Municipal Opportunities | | Institutional | | | 122,949,305 | | | | — | |
| | Investor A | | | 31,688,920 | | | | — | |
| | Investor A1 | | | 826,386 | | | | — | |
| | Investor C | | | 4,744,212 | | | | — | |
| | | Class K | | | 286,704 | | | | — | |
Undistributed net investment income as of May 31, 2018 is as follows:
| | | | |
| | | Undistributed Net Investment Income | |
California Municipal Opportunities | | $ | 627,546 | |
New Jersey Municipal Bond | | | 873,153 | |
Pennsylvania Municipal Bond | | | 740,460 | |
Strategic Municipal Opportunities | | | 1,894,810 | |
| | |
| 102 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Notes to Financial Statements (unaudited) (continued)
Management’s evaluation of the impact of all subsequent events on the Funds’ financial statements was completed through the date the financial statements were issued and the following items were noted:
Certain Funds paid net investment income, short-term capital gain and long-term capital gain distributions in the following amounts per share on December 10, 2018 to the shareholders of record on December 6, 2018.
| | | | | | | | | | | | |
| | | Net Investment Income | | | Short-Term Capital Gain | | | Long-Term Capital Gain | |
California Municipal Opportunities | | | | | | | | | | | | |
Institutional | | $ | — | | | $ | 0.078577 | | | $ | 0.160172 | |
Investor A | | | — | | | | 0.078577 | | | | 0.160172 | |
Investor A1 | | | — | | | | 0.078577 | | | | 0.160172 | |
Investor C | | | — | | | | 0.078577 | | | | 0.160172 | |
Investor C1 | | | — | | | | 0.078577 | | | | 0.160172 | |
Class K | | | — | | | | 0.078577 | | | | 0.160172 | |
New Jersey Municipal Bond | | | | | | | | | | | | |
Institutional | | | 0.000444 | | | | — | | | | — | |
Service | | | 0.000444 | | | | — | | | | — | |
Investor A | | | 0.000444 | | | | — | | | | — | |
Investor A1 | | | 0.000444 | | | | — | | | | — | |
Investor C | | | 0.000444 | | | | — | | | | — | |
Investor C1 | | | 0.000444 | | | | — | | | | — | |
Class K | | | | | | | | | | | | |
Strategic Municipal Opportunities | | | | | | | | | | | | |
Institutional | | | — | | | | 0.038704 | | | | 0.156083 | |
Investor A | | | — | | | | 0.038704 | | | | 0.156083 | |
Investor A1 | | | — | | | | 0.038704 | | | | 0.156083 | |
Investor C | | | — | | | | 0.038704 | | | | 0.156083 | |
Class K | | | — | | | | 0.038704 | | | | 0.156083 | |
| | | | |
| NOTESTO FINANCIAL STATEMENTS | | | 103 | |
Trustee and Officer Information
Robert M. Hernandez, Chair of the Board and Trustee
James H. Bodurtha, Trustee
Bruce R. Bond, Trustee
Honorable Stuart E. Eizenstat, Trustee
Henry Gabbay, Trustee
Lena G. Goldberg, Trustee
Henry R. Keizer, Trustee
John F. O’Brien, Trustee
Donald C. Opatrny, Trustee
Robert Fairbairn, Trustee
John M. Perlowski, Trustee, President and Chief Executive Officer
Jennifer McGovern, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Charles Park, Chief Compliance Officer
John MacKessy, Anti-Money Laundering Compliance Officer
Benjamin Archibald, Secretary
At a special meeting of shareholders held on November 21, 2018, each Fund’s shareholders elected Trustees who took office on January 1, 2019. The newly elected Trustees include three former Trustees and eight individuals who served as directors/trustees of the funds in the BlackRock Closed-End Complex. Information regarding the individuals who began serving as Trustees effective January 1, 2019 can be found in the proxy statement for the special meeting of shareholders, which is available on the SEC’s EDGAR Database at http://www.sec.gov.
Investment Adviser
BlackRock Advisors, LLC
Wilmington, DE 19809
Accounting Agent and Custodian
State Street Bank and Trust Company
Boston, MA 02111
Transfer Agent
BNY Mellon Investment Servicing (US) Inc.
Wilmington, DE 19809
Distributor
BlackRock Investments, LLC
New York, NY 10022
Legal Counsel
Willkie Farr & Gallagher LLP
New York, NY 10019
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116
Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809
| | |
| 104 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Additional Information
Proxy Results
A Special Meeting of Shareholders was held on November 21, 2018 for shareholders of record on September 24, 2018, to elect a Board of Trustees of each Trust. The newly elected Trustees will take office effective January 1, 2019.
Shareholders approved the Trustees* of BlackRock California Municipal Series Trust with voting results as follows:
| | | | | | | | | | | | |
| | | Votes For | | | Votes Withheld | | | Votes Abstained | |
Michael J. Castellano | | | 185,547,790 | | | | 519,068 | | | | 6,234,982 | |
Richard E. Cavanagh | | | 185,666,730 | | | | 693,583 | | | | 5,941,527 | |
Cynthia L. Egan | | | 186,288,300 | | | | 728,712 | | | | 5,284,828 | |
Frank J. Fabozzi | | | 185,540,209 | | | | 516,798 | | | | 6,244,833 | |
Robert Fairbairn | | | 185,565,562 | | | | 497,292 | | | | 6,238,986 | |
Henry Gabbay | | | 185,473,716 | | | | 583,184 | | | | 6,244,940 | |
R. Glenn Hubbard | | | 185,443,320 | | | | 650,756 | | | | 6,207,764 | |
W. Carl Kester | | | 185,445,123 | | | | 619,459 | | | | 6,237,258 | |
Catherine A. Lynch | | | 186,451,683 | | | | 544,714 | | | | 5,305,443 | |
John M. Perlowski | | | 185,577,252 | | | | 659,979 | | | | 6,064,609 | |
Karen P. Robards | | | 186,490,119 | | | | 561,258 | | | | 5,250,463 | |
| | * | Denotes Trust-wide proposal and voting results. | |
Shareholders approved the Trustees* of BlackRock Multi-State Municipal Series Trust with voting results as follows:
| | | | | | | | | | | | |
| | | Votes For | | | Votes Withheld | | | Votes Abstained | |
Michael J. Castellano | | | 161,432,243 | | | | 1,814,802 | | | | 2,287,585 | |
Richard E. Cavanagh | | | 161,222,058 | | | | 2,490,004 | | | | 1,822,568 | |
Cynthia L. Egan | | | 161,934,892 | | | | 1,773,352 | | | | 1,826,386 | |
Frank J. Fabozzi | | | 161,740,916 | | | | 1,876,747 | | | | 1,916,967 | |
Robert Fairbairn | | | 161,986,129 | | | | 1,787,046 | | | | 1,761,455 | |
Henry Gabbay | | | 161,835,704 | | | | 1,931,629 | | | | 1,767,297 | |
R. Glenn Hubbard | | | 162,033,761 | | | | 1,742,117 | | | | 1,758,753 | |
W. Carl Kester | | | 161,795,288 | | | | 1,907,982 | | | | 1,831,360 | |
Catherine A. Lynch | | | 162,027,489 | | | | 1,678,713 | | | | 1,828,428 | |
John M. Perlowski | | | 161,517,439 | | | | 2,335,501 | | | | 1,681,691 | |
Karen P. Robards | | | 162,168,558 | | | | 1,751,859 | | | | 1,614,213 | |
| | * | Denotes Trust-wide proposal and voting results. | |
Shareholders approved the Trustees* of BlackRock Municipal Series Trust with voting results as follows:
| | | | | | | | | | | | |
| | | Votes For | | | Votes Withheld | | | Votes Abstained | |
Michael J. Castellano | | | 719,202,949 | | | | 2,110,941 | | | | 8,028,035 | |
Richard E. Cavanagh | | | 718,945,300 | | | | 2,320,739 | | | | 8,075,887 | |
Cynthia L. Egan | | | 718,846,191 | | | | 3,083,271 | | | | 7,412,463 | |
Frank J. Fabozzi | | | 718,527,373 | | | | 2,793,350 | | | | 8,021,203 | |
Robert Fairbairn | | | 718,900,188 | | | | 2,255,467 | | | | 8,186,270 | |
Henry Gabbay | | | 719,165,505 | | | | 2,200,681 | | | | 7,975,740 | |
R. Glenn Hubbard | | | 719,336,253 | | | | 2,389,845 | | | | 7,615,827 | |
W. Carl Kester | | | 719,024,483 | | | | 2,230,940 | | | | 8,086,503 | |
Catherine A. Lynch | | | 719,019,288 | | | | 3,052,787 | | | | 7,269,850 | |
John M. Perlowski | | | 718,726,747 | | | | 2,643,635 | | | | 7,971,544 | |
Karen P. Robards | | | 718,945,382 | | | | 2,945,272 | | | | 7,451,271 | |
| | * | Denotes Trust-wide proposal and voting results. | |
The above Trustees, referred to as the BlackRock Fixed-Income Board, have also been elected to serve as trustees for other BlackRock-advisednon-index fixed-income mutual funds and all of the BlackRock-advisedclosed-end funds.
| | | | |
| ADDITIONAL INFORMATION | | | 105 | |
Additional Information (continued)
General Information
Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds, may be found on BlackRock’s website, which can be accessed athttp://www.blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.
Householding
The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at(800) 441-7762.
Availability of Quarterly Schedule of Investments
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on FormN-Q. The Funds’ FormsN-Q are available on the SEC’s website at http://www.sec.gov. The Funds’ FormsN-Q may also be obtained upon request and without charge by calling(800) 441-7762.
Availability of Proxy Voting Policies and Procedures
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge, (1) by calling(800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent12-month period ended June 30 is available upon request and without charge (1) athttp://www.blackrock.com; or by calling(800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.
BlackRock’s 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. Visithttp://www.blackrock.com for more information.
Shareholder Privileges
Account Information
Call us at(800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web athttp://www.blackrock.com.
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.
| | |
| 106 | | 2018 BLACKROCK SEMI-ANNUAL REPORTTO SHAREHOLDERS |
Additional Information (continued)
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 theirnon-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.
BlackRock obtains or verifies personalnon-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose tonon-affiliated third parties anynon-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. Thesenon-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access tonon-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 thenon-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.
Glossary of Terms Used in this Report
| | |
| Portfolio Abbreviations |
| |
| AGC | | Assured Guarantee Corp. |
| AGM | | Assured Guaranty Municipal Corp. |
| AMBAC | | American Municipal Bond Assurance Corp. |
| AMT | | Alternative Minimum Tax (subject to) |
| ARB | | Airport Revenue Bonds |
| BAM | | Build America Mutual Assurance Co. |
| BAN | | Bond Anticipation Notes |
| BHAC | | Berkshire Hathaway Assurance Corp. |
| CAB | | Capital Appreciation Bonds |
| COP | | Certificates of Participation |
| EDA | | Economic Development Authority |
| EDC | | Economic Development Corp. |
| ETF | | Exchange-Traded Fund |
| GO | | General Obligation Bonds |
| | |
| Portfolio Abbreviations(continued) |
| |
| GTD | | Guaranteed |
| HFA | | Housing Finance Agency |
| IDA | | Industrial Development Authority |
| LRB | | Lease Revenue Bonds |
| M/F | | Multi-Family |
| MRB | | Mortgage Revenue Bonds |
| NPFGC | | National Public Finance Guarantee Corp. |
| OTC | | Over-the-Counter |
| PSF | | Permanent School Fund |
| RB | | Revenue Bonds |
| S&P | | S&P Global Ratings |
| S/F | | Single-Family |
| SONYMA | | State of New York Mortgage Agency |
| SPDR | | Standard & Poor’s Depository Receipts |
| | | | |
| ADDITIONAL INFORMATION / GLOSSARYOF TERMS USEDINTHIS REPORT | | | 107 | |
This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of a Fund unless preceded or accompanied by the Fund’s current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.
| | |
| MUNI4-11/18-SAR | |  |
| | |
Item 2 – | | Code of Ethics – Not Applicable to this semi-annual report |
| |
Item 3 – | | Audit Committee Financial Expert – Not Applicable to this semi-annual report |
| |
Item 4 – | | Principal Accountant Fees and Services – Not Applicable to this semi-annual report |
| |
Item 5 – | | Audit Committee of Listed Registrants – Not Applicable |
| |
Item 6 – | | Investments |
| | (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form. |
| | (b) Not Applicable due to no such divestments during the semi-annual period covered since the previousForm N-CSR filing. |
| |
Item 7 – | | Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies – Not Applicable |
| |
Item 8 – | | Portfolio Managers ofClosed-End Management Investment Companies – Not Applicable |
| |
Item 9 – | | Purchases of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers – Not Applicable |
| |
Item 10 – | | Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures. |
| |
Item 11 – | | Controls and Procedures |
| |
| | (a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required byRule 30a-3(b) under the 1940 Act and Rule15d-15(b) under the Securities Exchange Act of 1934, as amended. |
| |
| | (b) – There were no changes in the registrant’s internal control over financial reporting (as defined inRule 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 – | | Disclosure of Securities Lending Activities forClosed-End Management Investment Companies – Not Applicable |
| |
Item 13 – | | Exhibits attached hereto |
| |
| | (a)(1) – Code of Ethics – Not Applicable to this semi-annual report |
| |
| | (a)(2) – Certifications – Attached hereto |
| |
| | (a)(3) – Not Applicable |
| |
| | (a)(4) – Not Applicable |
| |
| | (b) – Certifications – Attached hereto |
2
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | |
| BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust |
| | |
By: | | /s/ John M. Perlowski | | |
| | John M. Perlowski | | |
| | Chief Executive Officer (principal executive officer) of | | |
| | BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust |
Date: February 4, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | | | |
By: | | /s/ John M. Perlowski | | |
| | John M. Perlowski | | |
| | Chief Executive Officer (principal executive officer) of | | |
| | BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust |
Date: February 4, 2019
| | | | |
By: | | /s/ Neal J. Andrews | | |
| | Neal J. Andrews | | |
| | Chief Financial Officer (principal financial officer) of | | |
| | BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust |
Date: February 4, 2019
3
