UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04375
Name of Fund: BlackRock Multi-State Municipal Series Trust
BlackRock Florida Municipal Bond Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock Pennsylvania Municipal Bond Fund
Fund Address: P.O. Box 9011
Princeton, NJ 08543-9011
Name and address of agent for service: Robert C. Doll, Jr., Chief Executive
Officer, BlackRock Multi-State Municipal Series Trust, 800 Scudders Mill
Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton,
NJ 08543-9011
Registrant's telephone number, including area code: (800) 441-7762
Date of fiscal year end: 07/31/07
Date of reporting period: 08/01/06 - 07/31/07
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
Annual Reports BLACKROCK
July 31, 2007
BlackRock Florida Municipal Bond Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock Pennsylvania Municipal Bond Fund
OF BLACKROCK MULTI-STATE MUNICIPAL SERIES TRUST
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
BlackRock Florida Municipal Bond Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock Pennsylvania Municipal Bond Fund
Important Tax Information
All of the net investment income distributions paid monthly by BlackRock Florida
Municipal Bond Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock
Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust
during the taxable year ended July 31, 2007 qualify as tax-exempt interest
dividends for federal income tax purposes.
2 ANNUAL REPORTS JULY 31, 2007
A Letter to Shareholders
Dear Shareholder
As the July reporting period closed, financial markets were rattled by ongoing
problems in the credit markets, particularly those associated with the subprime
mortgage industry. While this has been an issue for much of 2007, recent
headlines and some high-profile credit collapses reignited concerns that credit
problems could spill over into the broader economy and derail global financial
markets. Although volatility has reared its head throughout the year, the
fundamental market and economic backdrop has been little changed. U.S. economic
activity has decelerated, led by a slowdown in the housing market, but economies
outside the United States remain robust, which has been a boon for U.S. exports.
Through July, the Federal Reserve Board had kept the target short-term interest
rate on hold at 5.25%.
For the most part, equities continued to find support in robust
merger-and-acquisition activity, a healthy global economy, tame inflation,
relatively low interest rates, still-positive earnings growth and attractive
valuations. These tailwinds generally prevailed over such headwinds as the
weakening U.S. economy, slowing housing market, escalating geopolitical concerns
and high energy prices, leading the Standard & Poor's (S&P) 500 Index and the
Dow Jones Industrial Average to post new record highs in mid-July before
succumbing to the latest market correction.
Meanwhile, mixed economic signals and the credit market debacle have made for a
volatile backdrop for fixed income, with investors fleeing from bonds associated
with the housing and credit markets in favor of higher-quality Treasury bonds.
As a result, the 10-year Treasury yield, which touched 5.30% in June (its
highest level in five years), fell to nearly 4.75% by period-end. Prices
correspondingly rose, reflecting the investor flight to quality. Against this
backdrop, financial markets posted mixed results for the six-month period ended
July 31, 2007, but continued to exhibit relative strength when measured over the
past year:
Total Returns as of July 31, 2007 6-month 12-month
==============================================================================================================
U.S. equities (S&P 500 Index) +2.10% +16.13%
- --------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) -2.47 +12.12
- --------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) +8.38 +23.91
- --------------------------------------------------------------------------------------------------------------
Fixed income (Lehman Brothers U.S. Aggregate Bond Index) +1.86 + 5.58
- --------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) +1.17 + 4.27
- --------------------------------------------------------------------------------------------------------------
High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Cap Index) -1.75 + 6.44
- --------------------------------------------------------------------------------------------------------------
Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
We expect market volatility to linger through the remainder of 2007. As you
navigate the uncertainties, we encourage you to review your investment goals
with your financial professional and to make portfolio changes, as needed. For
more market insight, we invite you to visit www.blackrock.com/funds. We thank
you for entrusting BlackRock with your investment assets, and we look forward to
continuing to serve you in the months and years ahead.
Sincerely,
/s/ Robert C. Doll, Jr.
Robert C. Doll, Jr.
Fund President and Trustee
THIS PAGE NOT PART OF YOUR FUND REPORT
ANNUAL REPORTS JULY 31, 2007 3
A Discussion With Your Funds' Portfolio Managers
The Funds provided competitive returns relative to their respective Lipper
category averages for the fiscal year, as we remained focused on protecting net
asset value and enhancing yield in the portfolios.
Discuss the recent market environment relative to municipal bonds.
Long-term bond yields ended the 12-month period slightly lower (and prices
modestly higher), but exhibited considerable volatility along the way.
As the 12-month period began, bond prices were improving (and yields falling)
amid a backdrop of weakening U.S. economic growth. The bond price improvement
accelerated in response to the Federal Reserve Board's (the Fed) decision on
August 8, 2006 to keep its target interest rate on hold at 5.25% after 17
consecutive interest rate hikes since mid-2004. The rally continued in the fall
amid moderating oil prices and slower gross domestic product (GDP) growth. By
the end of November 2006, 30-year U.S. Treasury bond yields had fallen to 4.56%,
a decline of 51 basis points (.51%) from July 31.
In early 2007, bond yields began to rise (and prices fall) due to strong
competition from improving U.S. equity markets, continued moderate employment
growth, higher bond yields overseas and growing investor conviction that the Fed
would keep rates steady for the remainder of 2007. By the end of May, the
30-year Treasury yield was back up to 5.06%, but fell to 4.92% by the end of
July amid renewed fears that ongoing problems in the subprime mortgage sector
could spill over to other financial markets. This resulted in a significant
"flight-to-quality" rally in the bond market and in the U.S. Treasury market in
particular.
Year-over-year, the yield on the 30-year Treasury bond fell 15 basis points,
while 10-year Treasury note yields declined 21 basis points to 4.78%. Movements
in tax-exempt bond yields generally mimicked those seen in the taxable market.
As measured by Municipal Market Data, yields on 30-year, Aaa-rated municipal
bonds declined 10 basis points over the past year to 4.37%, while 10-year,
AAA-rated issues saw their yields inch down 2 basis points to 3.97%.
Investor demand for municipal product remained strong throughout the past 12
months. Statistics from the Investment Company Institute indicate that
tax-exempt mutual funds received over $14.2 billion in net new cash flows in the
first six months of 2007, an increase of more than 118% compared to the same
period in 2006. Demand softened somewhat in June and July as the increase in
bond yields made individual municipal bond purchases attractive compared to the
relatively stable yields generated by tax-exempt mutual funds. Weekly fund flows
for long-term municipal bond funds, as measured by AMG Data, averaged $224
million during these months, down from a weekly average of $415 million in April
of this year. Still, 2007's average weekly flows remain almost twice those seen
a year ago. In the past three months, investors received approximately $100
billion from bond maturities, coupon income and the proceeds from various early
redemptions. These monies helped support the strong demand for tax-exempt
products in recent months.
Municipal bond volume appears to be on pace to set a new annual issuance record.
During the three months ended July 2007, municipalities issued over $125 billion
in new tax-exempt securities, an increase of 16.7% relative to levels a year
earlier. Over the past six months, issuance has exceeded $232 billion, a 23%
increase versus year-ago levels. Over the past year, more than $439 billion in
new tax-exempt bonds was marketed, an increase of 19% compared to a year ago.
Thus far in 2007, issuance is running more than 6% ahead of 2005's record pace.
Underwritings exceeding $1 billion in size continued to dominate the new-issue
calendar, although the recent market volatility has resulted in the postponement
of a number of additional deals of this magnitude. Nevertheless, these deals
continued to meet with positive demand from various investor classes, making
their placement relatively easy with minimal, if any, market disruption.
The market's technical position appears reasonably balanced, as heavy new
issuance has been met with continued strong demand. We expect that both
traditional and non-traditional investors will continue to be drawn to the
municipal market given relatively stable tax-exempt yield ratios and the
steepness of the municipal curve compared to the taxable curve. It is likely
that the recent rise in bond yields will put some pressure on refunding
issuance, which is up 58% so far this year. Any decline in the recent pace of
issuance can only be supportive of the municipal market's performance in the
coming months.
4 ANNUAL REPORTS JULY 31, 2007
BlackRock Florida Municipal Bond Fund
Describe conditions in the State of Florida.
The State of Florida ended the period with ratings of Aa1, AAA and AA+ as
assigned by Moody's, Standard & Poor's and Fitch, respectively, all with stable
trends. Florida's net tax-supported debt ranks 20th in the nation on a
per-capita basis and 19th as a percentage of personal income, according to
Moody's. The state's 2006 per-capita personal income of $35,798 was 20th in the
nation, according to the U.S. Department of Commerce, and approximated the
national average of $36,276. Florida's July 2007 unemployment rate was 3.9%,
which compared favorably to the U.S. rate of 4.6%.
Led by continuing weakness in the housing market, Florida's fiscal year 2006 -
2007 revenues missed projections and the state now expects to report an
operating deficit of $400 million for the year. As a result, appropriations for
fiscal year 2007 - 2008 were immediately reduced by an additional 4% as new
revenue forecasts are finalized. Property-tax reform remains a key credit factor
for local governments in Florida, as most will be required to make significant
budget adjustments going forward.
How did the Fund perform during the fiscal year?
For the 12-month period ended July 31, 2007, BlackRock Florida Municipal Bond
Fund's Institutional, Investor A, Investor A1, Investor B, Investor C and
Investor C1 Shares had total returns of +3.88%, +3.53%, +3.78%, +3.36%, +2.74%
and +3.26%, respectively. (Fund results shown do not reflect sales charges and
would be lower if sales charges were included. Complete performance information
can be found on pages 10 - 18 of this report to shareholders.) For the same
period, the Lehman Brothers Municipal Bond Index returned +4.27% and the Lipper
Florida Municipal Debt Funds category posted an average return of +3.44%. The
Lehman Index measures the performance of municipal bonds in all 50 states,
whereas the Lipper category tracks funds that limit their investment to those
securities exempt from taxation in the State of Florida.
The Fund provided strong relative returns and a competitive yield relative to
its Lipper category average during the 12-month period. Performance was driven
by our focus on the long end of the yield curve, which outperformed as the curve
flattened in the first half of the year. Our exposure to non-investment-grade
and lower-rated issues also contributed to performance in the first six months
as credit spreads (versus higher-quality municipal issues of comparable
maturity) tightened. Both of these dynamics shifted in the latter half of the
period as the curve resteepened somewhat and turmoil in the credit markets
caused spreads to widen. During this time, our exposure to A-rated hospital
issues contributed to performance, as did our relatively neutral posture on
interest rate risk. Our neutral duration meant that the Fund held more steady
than competitor funds that had assumed a short or long bias in what was a
volatile period for interest rates.
What changes were made to the portfolio during the period?
We continued our efforts to increase the level of income provided to
shareholders while muting the Fund's net asset value volatility. To that end, we
generally targeted premium-coupon bonds in the 20-year to 30-year maturity range
whenever they became available. We continued to find the most attractive
risk/reward trade-off here, although opportunities were somewhat limited as new
municipal issuance in the State of Florida increased less than 3% over the 12
months and few of the new issues met our desired investment characteristics.
Much of the supply came in the form of refinancings and/or with coupons below
5%. We wanted to avoid giving up bonds booked in the portfolio at higher yields
relative to those available in the current low interest rate environment.
Having said that, market volatility in the second half of the year did present
some opportunities for the portfolio. In the March - April timeframe, we added
some uninsured hospital bonds to the portfolio as spreads widened and we were
able to purchase these at relatively attractive prices. We also were able to
obtain secondary insurance for one of these bonds, which serves to enhance its
value in the marketplace. In May and June, we saw long-term yields reach levels
not seen since July 2006. The rise in yields (and fall in prices) allowed us to
sell some prerefunded bonds in the four-year to six-year maturity range and
purchase bonds in the 20-year to 30-year part of the yield curve. This also
presented an opportunity to extend from a neutral to slightly long portfolio
duration, reflecting a modestly constructive view of the market.
How would you characterize the Fund's position at the close of the period?
The Fund ended the period fully invested and with a neutral to slightly long
duration, reflecting a shift we made after rates rose dramatically in the second
quarter of 2007. With rates at historic lows for some time, we were finding
limited opportunities to enhance the portfolio's structure. However,
ANNUAL REPORTS JULY 31, 2007 5
A Discussion With Your Funds' Portfolio Managers (continued)
heightened volatility toward period-end translated into increased opportunities.
Still, our mainline strategy is unchanged: We generally remain focused on
longer-dated Florida issues, which we believe offer greater potential for yield
enhancement as the curve resteepens. We will continue to exercise patience as we
look for 20-year to 30-year bonds with coupons in the area of 5%.
Robert D. Sneeden
Portfolio Manager
BlackRock Florida Municipal Bond Fund
BlackRock New Jersey Municipal Bond Fund
Describe conditions in the State of New Jersey.
The State of New Jersey is rated Aa3, AA and AA- by Moody's, Standard & Poor's
and Fitch, respectively, all with stable outlooks. New Jersey ranks fourth in
both debt per capita and debt as a percent of personal income, according to
Moody's. It ranked second in per-capita personal income in 2006 (preliminary),
according to the U.S. Department of Commerce. New Jersey's July 2007
unemployment rate was 4.6%, consistent with the national rate. Late in June, New
Jersey lawmakers approved a $33.5 billion fiscal year 2008 budget that increases
spending by $2.7 billion, mainly for property-tax relief. The $2.7 billion
increase is primarily financed by roughly $1.4 billion in reserves and deferrals
available at fiscal year-end 2007 and $1.1 billion of projected revenue growth
in fiscal year 2008. Continuing credit issues include budgetary pressures from
retiree health care costs and pensions, especially as the amounts and uses of
past pension contributions are now in question.
How did the Fund perform during the fiscal year?
For the 12-month period ended July 31, 2007, BlackRock New Jersey Municipal Bond
Fund's Institutional, Service, Investor A, Investor A1, Investor B, Investor B1,
Investor C and Investor C1 Shares had total returns of +3.80%, +3.55%, +3.55%,
+3.60%, +2.77%, +3.19%, +2.68% and +3.18%, respectively. (Fund results shown do
not reflect sales charges and would be lower if sales charges were included.
Complete performance information can be found on pages 10 - 18 of this report to
shareholders.) For the same period, the Lehman Brothers Municipal Bond Index
returned +4.27% and the Fund's comparable Lipper category of New Jersey
Municipal Debt Funds posted an average return of +3.68%. Unlike the Lehman
Index, which measures the performance of municipal bonds nationally, the Lipper
category consists of funds that limit their investment to securities exempt from
taxation in the State of New Jersey.
Rapidly changing market conditions made for fairly erratic performance during
the annual period. The second half, in particular, was marked by ongoing turmoil
in the subprime lending business, which triggered significant volatility in
fixed income assets overall; municipals were no exception. Despite the difficult
backdrop, the Fund generally tracked the performance of its Lipper category
average. In the first six months, increased exposure to longer-duration
municipal bonds contributed positively to both total return and distributable
income, as these issues generally outperformed their shorter-maturity peers
during the period and their characteristically higher yields allowed us to
maintain the Fund's slightly above-average distribution rate. The Fund's
investments in higher yielding municipal securities also aided returns during
this period as contracting credit spreads made for a favorable environment.
The Fund's high yield exposure and comparatively longer-maturity profile proved
disadvantageous in the second half of the fiscal year, largely due to a widening
in credit spreads and a significant pick-up in market volatility, especially in
the fourth fiscal quarter (May - July). The ensuing rise in interest rates led
to the underperformance of certain sector holdings of the Fund, namely housing
and hospitals, which also negatively impacted the portfolio's total return.
Further challenging performance throughout the period was the calling away of
some of the Fund's higher-coupon bonds. In an environment where we cannot
replace those higher yields, this occurrence dampened the distribution of the
Fund.
What changes were made to the portfolio during the period?
Portfolio activity reflected our efforts to improve distributable income for
shareholders and to increase the Fund's capital appreciation potential. A dearth
of new issuance, coupled with the low absolute yields available, prompted us to
largely retain the Fund's seasoned holdings, which consist of premium coupons
with high credit quality and attractive book yields.
For the annual period, new issuance of New Jersey municipal bonds was down 1%
versus the prior fiscal year. This figure somewhat overstates the actual supply
available to the Fund, however, as it takes into account the state's refunding
of $3.6 billion in bonds issued as part of the tobacco industry settlement (in
January). Excluding the tobacco settlement bonds, new issuance was down a more
considerable 31%.
6 ANNUAL REPORTS JULY 31, 2007
Still, we came across several opportunities to add new names and to enhance
credit structures within the portfolio. Our participation in the abovementioned
tobacco transaction provided a gain for the Fund via the price appreciation
associated with the prerefunding of existing holdings, and allowed us to
maintain our exposure to this sector. Other purchases during the annual period
consisted primarily of new-issue housing bonds, new-issue uninsured hospital
bonds and out-of-favor coupons (particularly discounted bonds), each of which
offers above-market yield and enhances the portfolio's liquidity and potential
for capital appreciation. We also added a few zero-coupon bonds, including
Puerto Rico zeros. In addition to housing and hospitals, we found attractive
credits in higher education (colleges and universities), and this remains a
sector of interest.
In contrast, we continued to trim the portfolio's short-term holdings, in
particular shorter-dated pre-refunded bonds and high-coupon, short-call bonds.
The rationale is that these bonds are priced with a premium, but as they come
close to their call date, their value depreciates at an accelerating pace.
(Generally, we prefer to sell once the bonds are within a three-year window to
their call date.) While this move temporarily hurts the Fund's distributable
income, we believe it is a worthwhile trade-off to protect the portfolio's
future total return potential. In redeploying the proceeds of these sales and
initiating new purchases, we focused primarily on the long end of the municipal
yield curve via the abovementioned credits.
How would you characterize the Fund's position at the close of the period?
We maintained a fully invested portfolio throughout and ended the annual period
with a slightly longer duration than that of our comparable Lipper peer group.
Going forward, we intend to maintain our focus on enhancing the Fund's yield and
capital appreciation potential, while taking advantage of above-average interest
rate volatility to execute relative value trades within both the institutional
and retail sectors. We continue to believe that individual security selection
and yield will be the key drivers of the Fund's future performance. Accordingly,
we expect to prudently add duration and exposure to the long end of the
municipal yield curve (in favor of higher yields and greater opportunity to
generate incremental income for the portfolio), while being mindful of the
increased volatility that has entered the market.
Timothy T. Browse, CFA
Portfolio Manager
BlackRock New Jersey Municipal Bond Fund
ANNUAL REPORTS JULY 31, 2007 7
A Discussion With Your Funds' Portfolio Managers (concluded)
BlackRock Pennsylvania Municipal Bond Fund
Describe conditions in the Commonwealth of Pennsylvania.
At period-end, the Commonwealth of Pennsylvania was rated Aa2, AA and AA by
Moody's, Standard & Poor's and Fitch, respectively, all with stable trends.
Pennsylvania ranks 24th in both debt per capita and debt as a percent of
personal income, according to Moody's. Pennsylvania's per-capita income of
$36,680 ranked 18th in the nation, according to the U.S. Department of Commerce.
Pennsylvania's July 2007 unemployment rate was 4.3%, compared to the U.S. rate
of 4.6%. State employment numbers continue to post incremental gains in contrast
to a declining labor force.
Pennsylvania's fiscal year 2007 revenue collections reportedly exceeded official
estimates by $650 million, primarily thanks to strong corporate and personal
income-tax receipts. Negotiations surrounding the 2007 - 2008 budget were
punctuated by a politically dramatic one-day furlough of 24,000 non-essential
state workers. The $27.3 billion budget would be 3.5% larger than the prior
year's budget, which is below the 5% - 6% growth rate seen in recent years.
Expanded property-tax rebates initially will be financed by the Commonwealth's
lottery surplus; however, legalized slot gambling revenues have begun to flow
into Pennsylvania's coffers, with year-to-date gaming revenues of $427 million.
Casino openings will accelerate over the next couple of years with the
development and construction of newly licensed casino operator projects.
Homeowners in Pennsylvania are expected to see reductions in their school
property-tax bills estimated at a rough average of $200 per household.
Pennsylvania law now requires most school districts to ask voters this year
whether they want to see property taxes cut further by increasing local income
taxes, and also requires school boards to obtain voter approval for tax
increases in excess of inflation. This could present challenges for local
budgeting.
How did the Fund perform during the fiscal year?
For the 12-month period ended July 31, 2007, BlackRock Pennsylvania Municipal
Bond Fund's Institutional, Service, Investor A, Investor A1, Investor B,
Investor B1, Investor C and Investor C1 Shares had total returns of +4.01%,
+3.75%, +3.76%, +3.81%, +3.06%, +3.49%, +3.07% and +3.29%, respectively. (Fund
results shown do not reflect sales charges and would be lower if sales charges
were included. Complete performance information can be found on pages 10 - 18 of
this report to shareholders.) For the same period, the benchmark Lehman Brothers
Municipal Bond Index, which measures the performance of municipal bonds
nationwide, returned +4.27%. Fund returns were competitive with the +3.57%
average return of the Lipper Pennsylvania Municipal Debt Funds category for the
12-month period. The Lipper category consists of funds that limit their
investment to those securities exempt from taxation in Pennsylvania.
Fund performance continued to benefit from our focus on the long end of the
yield curve, which outperformed the shorter end as the curve flattened, as well
as from the portfolio's advantageous income component compared to its peers. In
fact, the Fund increased its average coupon to above the industry average as a
result of its merger with the former BlackRock Pennsylvania Municipal Bond
Portfolio in October. Also additive to performance were our positions in
lower-rated issues, which registered strong price performance as credit spreads
in the municipal bond market continued to contract in the first six months.
Bond calls detracted from performance during the year, as we were not able to
replace our higher-yielding credits with similar coupons in the prevailing
low-interest-rate environment.
What changes were made to the portfolio during the period?
We did not significantly alter the portfolio's composition or adjust our
underlying strategy during the fiscal year. For the most part, we maintained our
focus on protecting the Fund's net asset value and providing shareholders with
above-average income. We continued to emphasize longer-dated bonds, typically in
the 25-year to 30-year maturity range, as the yield curve flattened. Given the
historically low yields in the municipal market, and lack of attractive new
issuance, we found little incentive to restructure the portfolio.
8 ANNUAL REPORTS JULY 31, 2007
Having said that, we did take steps to increase the port-folio's duration, which
had fallen below the Lipper peer group average when the Fund absorbed the former
BlackRock Pennsylvania Municipal Portfolio in October. This involved purchasing
securities with longer maturities and selling those with shorter maturities. In
doing so, we participated in some "tax-swap" transactions, whereby we were
willing to take losses on the sale of select bonds in order to offset present
and future capital gains, which are taxable to our shareholders. This also meant
that we were swapping into bonds with higher yields, thereby allowing us to
establish a new book yield for the portfolio.
Issuance of new municipal bonds in Pennsylvania municipalities increased 22%
over the 12-month period, although most of the new bonds came with shorter
maturities and lower yields than we were targeting. We maintained ample exposure
to bonds issued by the Commonwealth of Puerto Rico, which are tax-exempt in all
50 states. In our view, the case for continued investment in Puerto Rico bonds
remains strong.
How would you characterize the Fund's position at the close of the period?
We ended the period with a fully invested portfolio and a slightly long duration
relative to our peers, the result of our efforts to extend duration since last
fall. Municipal yields and credit spreads remain near their all-time lows and
the slope of the yield curve is historically very flat. As such, we believe
longer-dated securities offer the best relative value at this time.
We continue to look for maturities in the 25-year area and to favor a neutral to
slightly long portfolio duration, which offers the benefit of incremental yield.
Ultimately, we believe that above-average yields can provide for competitive
Fund returns over time. This reflects our core strategy of seeking to enhance
yield for shareholders while also protecting the Fund's underlying value.
William R. Bock
Portfolio Manager
BlackRock Pennsylvania Municipal Bond Fund
August 17, 2007
ANNUAL REPORTS JULY 31, 2007 9
Performance Data
About Fund Performance
Effective October 2, 2006, BlackRock Florida Municipal Bond Funds' Class A,
Class B, Class C and Class I Shares were redesignated Investor A1, Investor B,
Investor C1 and Institutional Shares, respectively. BlackRock New Jersey
Municipal Bond Fund's and BlackRock Pennsylvania Municipal Bond Fund's Class A,
Class B, Class C and Class I Shares were redesignated Investor A1, Investor B1,
Investor C1 and Institutional Shares, respectively. Also effective October 2,
2006, BlackRock Florida Municipal Bond Fund's Investor A Shares and Investor C
Shares commenced operations. BlackRock New Jersey Municipal Bond Fund's and
BlackRock Pennsylvania Municipal Bond Fund's Service Shares, Investor A Shares,
Investor B Shares and Investor C Shares commenced operations. As previously
communicated to shareholders, new sales charge schedules came into effect at the
same time.
Performance information reflects past performance and does not guarantee future
results. Current performance may be lower or higher than the performance data
quoted. Refer to www.blackrock.com to obtain performance data current to the
most recent month-end. Performance results do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or the redemption of fund
shares. Figures shown in each of the following tables assume reinvestment of all
dividends and capital gain distributions, if any, at net asset value on the
payable date. Investment return and principal value of shares will fluctuate so
that shares, when redeemed, may be worth more or less than their original cost.
Dividends paid to each class of shares will vary because of the different levels
of service, distribution and transfer agency fees applicable to each class,
which are deducted from the income available to be paid to shareholders. The
Funds' Investment Adviser agreed to reimburse a portion of its fee. Without such
reimbursement, the Funds' performance may have been lower.
BlackRock Florida Municipal Bond Fund
o Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fee and are available only
to eligible investors.
o Investor A Shares incur a maximum initial sales charge (front-end load) of
4.25% and a service fee of 0.25% per year (but no distribution fee). Prior
to October 2, 2006, Investor A Share performance results are those of
Institutional Shares (which have no distribution or service fees) restated
to reflect Investor A Share fees.
o Investor A1 Shares incur a maximum initial sales charge (front-end load)
of 4% and a service fee of 0.10% per year (but no distribution fee).
o Investor B Shares are subject to a maximum contingent deferred sales
charge of 4%, declining to 0% after six years. In addition, Investor B
Shares are subject to a distribution fee of 0.25% per year and a service
fee of 0.25% per year. These shares automatically convert to Investor A
Shares after approximately 10 years. (There is no initial sales charge for
automatic share conversions.)
o Investor C Shares are subject to a distribution fee of 0.75% per year and
a service fee of 0.25% per year. In addition, Investor C Shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase. Prior to October 2, 2006, Investor C Share performance
results are those of Institutional Shares (which have no distribution or
service fees) restated to reflect Investor C Share fees.
o Investor C1 Shares are subject to a distribution fee of 0.35% per year and
a service fee of 0.25% per year. In addition, Investor C1 Shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase.
10 ANNUAL REPORTS JULY 31, 2007
Performance Data (continued)
BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal
Bond Fund
o Institutional Shares are not subject to any sales charge. Institutional
Shares bear no ongoing distribution or service fees and are available only
to eligible investors.
o Service Shares are not subject to any sales charge. Service Shares are
subject to a service fee of 0.25% per year (but no distribution fee) and
are available only to eligible investors. Prior to October 2, 2006,
Service Share performance results are those of Institutional Shares (which
have no distribution or service fees) restated to reflect Service Share
fees.
o Investor A Shares incur a maximum initial sales charge (front-end load) of
4.25% and a service fee of 0.25% per year (but no distribution fee). Prior
to October 2, 2006, Investor A Share performance results are those of
Institutional Shares (which have no distribution or service fees) restated
to reflect Investor A Share fees.
o Investor A1 Shares incur a maximum initial sales charge (front-end load)
of 4% and a service fee of 0.10% per year (but no distribution fee).
o Investor B Shares are subject to a maximum contingent deferred sales
charge of 4.50% declining to 0% after six years. In addition, Investor B
Shares are subject to a distribution fee of 0.75% per year and a service
fee of 0.25% per year. These shares automatically convert to Investor A
Shares after approximately 10 years. (There is no initial sales charge for
automatic share conversions.) Prior to October 2, 2006, Investor B Share
performance results are those of Institutional Shares (which have no
distribution or service fees) restated to reflect Investor B Share fees.
o Investor B1 Shares are subject to a maximum contingent deferred sales
charge of 4% declining to 0% after six years. In addition, Investor B1
Shares are subject to a distribution fee of 0.25% per year and a service
fee of 0.25% per year. These shares automatically convert to Investor A
Shares after approximately 10 years. (There is no initial sales charge for
automatic share conversions.)
o Investor C Shares are subject to a distribution fee of 0.75% per year and
a service fee of 0.25% per year. In addition, Investor C Shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase. Prior to October 2, 2006, Investor C Share performance
results are those of the Institutional Shares (which have no distribution
or service fees) restated to reflect Investor C Share fees.
o Investor C1 Shares are subject to a distribution fee of 0.35% per year and
a service fee of 0.25% per year. In addition, Investor C1 Shares are
subject to a 1% contingent deferred sales charge if redeemed within one
year of purchase.
ANNUAL REPORTS JULY 31, 2007 11
Performance Data (continued)
Recent Performance Results
6-Month 12-Month 10-Year Standardized
As of July 31, 2007 Total Return Total Return Total Return 30-Day Yield
==================================================================================================================================
BlackRock Florida Municipal Bond Fund Institutional Shares* +0.67% +3.88% +61.18% 4.07%
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund Investor A Shares* +0.55 +3.53 +57.08 3.71
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund Investor A1 Shares* +0.62 +3.78 +59.59 3.83
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund Investor B Shares* +0.42 +3.36 +53.26 3.57
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund Investor C Shares* +0.16 +2.74 +45.75 3.07
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund Investor C1 Shares* +0.37 +3.26 +51.76 3.49
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund Institutional Shares* +0.39 +3.80 +57.94 4.11
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund Service Shares* +0.27 +3.55 +54.06 3.86
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund Investor A Shares* +0.27 +3.55 +54.06 3.69
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund Investor A1 Shares* +0.34 +3.60 +56.54 3.85
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund Investor B Shares* -0.10 +2.77 +42.96 3.11
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund Investor B1 Shares* +0.14 +3.19 +50.17 3.61
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund Investor C Shares* -0.20 +2.68 +42.83 3.11
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund Investor C1 Shares* +0.09 +3.18 +48.84 3.51
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund Institutional Shares* +1.02 +4.01 +61.06 4.20
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund Service Shares* +0.81 +3.75 +57.11 3.95
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund Investor A Shares* +0.91 +3.76 +57.12 3.92
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund Investor A1 Shares* +0.97 +3.81 +59.48 3.93
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund Investor B Shares* +0.60 +3.06 +45.90 4.17
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund Investor B1 Shares* +0.77 +3.49 +53.13 3.70
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund Investor C Shares* +0.52 +3.07 +45.92 3.20
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund Investor C1 Shares* +0.72 +3.29 +51.61 3.60
- ----------------------------------------------------------------------------------------------------------------------------------
Lehman Brothers Municipal Bond Index** +1.17 +4.27 +66.51 --
- ----------------------------------------------------------------------------------------------------------------------------------
* Investment results shown do not reflect sales charges; results would be
lower if a sales charge was included. Cumulative total investment returns
are based on changes in net asset values for the periods shown, and assume
reinvestment of all dividends and capital gains distributions at net asset
value on the payable date.
** This unmanaged Index consists of revenue bonds, prerefunded bonds, general
obligation bonds and insured bonds, all of which mature within 30 years.
12 ANNUAL REPORTS JULY 31, 2007
Performance Data (continued) BlackRock Florida Municipal Bond Fund
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Institutional,
Investor A & Investor A1 Shares compared to growth of an investment in the
Lehman Brothers Municipal Bond Index. Values are from July 1997 to July 2007:
BR Florida Municipal BR Florida Municipal BR Florida Municipal Lehman Brothers
Bond Fund Bond Fund Bond Fund Municipal Bond
Institutional Shares*+ Investor A Shares*+ Investor A1 Shares*+ Index++
7/97 $10,000 $ 9,575 $ 9,600 $10,000
7/98 $10,558 $10,084 $10,126 $10,599
7/99 $10,725 $10,218 $10,275 $10,904
7/00 $10,904 $10,363 $10,436 $11,374
7/01 $11,963 $11,341 $11,450 $12,521
7/02 $12,670 $11,982 $12,115 $13,361
7/03 $13,160 $12,414 $12,558 $13,842
7/04 $13,979 $13,154 $13,339 $14,643
7/05 $15,124 $14,196 $14,404 $15,573
7/06 $15,517 $14,528 $14,763 $15,970
7/07 $16,118 $15,041 $15,321 $16,651
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
+ The Fund invests primarily in long-term investment grade obligations
issued by or on behalf of the State of Florida, its political
subdivisions, agencies and instrumentalities and obligations of other
qualifying issuers.
++ This unmanaged Index consists of revenue bonds, prerefunded bonds, general
obligation bonds and insured bonds, all of which mature within 30 years.
Past performance is not indicative of future results.
Average Annual Total Return
Return
================================================================================
Institutional Shares
================================================================================
One Year Ended 7/31/07 +3.88%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.93
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.89
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 7/31/07 +3.53% -0.87%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.65 +3.75
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.62 +4.17
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge**
================================================================================
Investor A1 Shares
================================================================================
One Year Ended 7/31/07 +3.78% -0.37%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.81 +3.96
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.79 +4.36
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 4.25%.
** Assuming maximum sales charge of 4%.
ANNUAL REPORTS JULY 31, 2007 13
Performance Data (continued) BlackRock Florida Municipal Bond Fund
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Investor B,
Investor C & Investor C1 Shares compared to growth of an investment in the
Lehman Brothers Municipal Bond Index. Values are from July 1997 to July 2007:
BR Florida Municipal BR Florida Municipal BR Florida Municipal Lehman Brothers
Bond Fund Bond Fund Bond Fund Municipal Bond
Investor B Shares*+ Investor C Shares*+ Investor C1 Shares*+ Index++
7/97 $10,000 $10,000 $10,000 $10,000
7/98 $10,505 $10,453 $10,494 $10,599
7/99 $10,617 $10,514 $10,596 $10,904
7/00 $10,740 $10,583 $10,707 $11,374
7/01 $11,724 $11,496 $11,689 $12,521
7/02 $12,354 $12,055 $12,293 $13,361
7/03 $12,767 $12,397 $12,691 $13,842
7/04 $13,494 $13,038 $13,413 $14,643
7/05 $14,525 $13,966 $14,411 $15,573
7/06 $14,828 $14,186 $14,696 $15,970
7/07 $15,326 $14,575 $15,176 $16,651
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
+ The Fund invests primarily in long-term investment grade obligations
issued by or on behalf of the State of Florida, its political
subdivisions, agencies and instrumentalities and obligations of other
qualifying issuers.
++ This unmanaged Index consists of revenue bonds, prerefunded bonds, general
obligation bonds and insured bonds, all of which mature within 30 years.
Past performance is not indicative of future results.
Average Annual Total Return
Return Return
Without CDSC With CDSC***
================================================================================
Investor B Shares*
================================================================================
One Year Ended 7/31/07 +3.36% -0.62%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.41 +4.07
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.36 +4.36
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC***
================================================================================
Investor C Shares**
================================================================================
One Year Ended 7/31/07 +2.74% +1.74%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +3.87 +3.87
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +3.84 +3.84
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC***
================================================================================
Investor C1 Shares**
================================================================================
One Year Ended 7/31/07 +3.26% +2.27%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.30 +4.30
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.26 +4.26
- --------------------------------------------------------------------------------
* Maximum contingent deferred sales charge is 4% and is reduced to 0% after
six years.
** Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
*** Assuming payment of applicable contingent deferred sales charge.
14 ANNUAL REPORTS JULY 31, 2007
Performance Data (continued) BlackRock New Jersey Municipal Bond Fund
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Institutional,
Service, Investor A & Investor A1 Shares compared to growth of an investment in
the Lehman Brothers Municipal Bond Index. Values are from July 1997 to July
2007:
BR New Jersey BR New Jersey BR New Jersey BR New Jersey Lehman Brothers
Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund Municipal Bond
Institutional Shares*+ Service Shares*+ Investor A Shares*+ Investor A1 Shares*+ Index++
7/97 $10,000 $10,000 $ 9,575 $ 9,600 $10,000
7/98 $10,548 $10,522 $10,075 $10,125 $10,599
7/99 $10,708 $10,655 $10,202 $10,259 $10,904
7/00 $10,755 $10,675 $10,221 $10,304 $11,374
7/01 $11,885 $11,768 $11,268 $11,365 $12,521
7/02 $12,399 $12,246 $11,726 $11,844 $13,361
7/03 $12,740 $12,551 $12,018 $12,171 $13,842
7/04 $13,420 $13,188 $12,627 $12,795 $14,643
7/05 $14,707 $14,417 $13,804 $14,008 $15,573
7/06 $15,216 $14,878 $14,246 $14,506 $15,970
7/07 $15,794 $15,406 $14,751 $15,028 $16,651
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
+ The Fund invests primarily in long-term investment grade obligations
issued by or on behalf of the State of New Jersey, its political
subdivisions, agencies and instrumentalities and obligations of other
qualifying issuers.
++ This unmanaged Index consists of revenue bonds, prerefunded bonds, general
obligation bonds and insured bonds, all of which mature within 30 years.
Past performance is not indicative of future results.
Average Annual Total Return
Return
================================================================================
Institutional Shares
================================================================================
One Year Ended 7/31/07 +3.80%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.96
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.68
- --------------------------------------------------------------------------------
Return
================================================================================
Service Shares
================================================================================
One Year Ended 7/31/07 +3.55%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.70
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.42
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 7/31/07 +3.55% -0.85%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.70 +3.79
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.42 +3.96
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge**
================================================================================
Investor A1 Shares
================================================================================
One Year Ended 7/31/07 +3.60% -0.54%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.88 +4.02
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.58 +4.16
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 4.25%.
** Assuming maximum sales charge of 4%.
ANNUAL REPORTS JULY 31, 2007 15
Performance Data (continued) BlackRock New Jersey Municipal Bond Fund
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Investor B,
Investor B1, Investor C & Investor C1 Shares compared to growth of an investment
in the Lehman Brothers Municipal Bond Index. Values are from July 1997 to July
2007:
BR New Jersey BR New Jersey BR New Jersey BR New Jersey Lehman Brothers
Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund Municipal Bond
Investor B Shares*+ Investor B1 Shares*+ Investor C Shares*+ Investor C1 Shares*+ Index++
7/97 $10,000 $10,000 $10,000 $10,000 $10,000
7/98 $10,443 $10,495 $10,443 $10,494 $10,599
7/99 $10,497 $10,600 $10,497 $10,589 $10,904
7/00 $10,438 $10,593 $10,438 $10,571 $11,374
7/01 $11,421 $11,647 $11,421 $11,601 $12,521
7/02 $11,797 $12,089 $11,797 $12,029 $13,361
7/03 $12,001 $12,372 $12,001 $12,298 $13,842
7/04 $12,515 $12,954 $12,515 $12,877 $14,643
7/05 $13,581 $14,125 $13,581 $14,027 $15,573
7/06 $13,911 $14,553 $13,911 $14,425 $15,970
7/07 $14,296 $15,017 $14,283 $14,884 $16,651
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
+ The Fund invests primarily in long-term investment grade obligations
issued by or on behalf of the State of New Jersey, its political
subdivisions, agencies and instrumentalities and obligations of other
qualifying issuers.
++ This unmanaged Index consists of revenue bonds, prerefunded bonds, general
obligation bonds and insured bonds, all of which mature within 30 years.
Past performance is not indicative of future results.
Average Annual Total Return
Return Return
Without CDSC With CDSC++
================================================================================
Investor B Shares*
================================================================================
One Year Ended 7/31/07 +2.77% -1.70%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +3.92 +3.57
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +3.64 +3.64
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC++
================================================================================
Investor B1 Shares**
================================================================================
One Year Ended 7/31/07 +3.19% -0.78%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.43 +4.09
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.15 +4.15
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC++
================================================================================
Investor C Shares+
================================================================================
One Year Ended 7/31/07 +2.68% +1.68%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +3.90 +3.90
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +3.63 +3.63
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC++
================================================================================
Investor C1 Shares+
================================================================================
One Year Ended 7/31/07 +3.18% +2.19%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.35 +4.35
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.06 +4.06
- --------------------------------------------------------------------------------
* Maximum contingent deferred sales charge is 4.50% and is reduced to 0%
after six years.
** Maximum contingent deferred sales charge is 4% and is reduced to 0% after
six years.
+ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
++ Assuming payment of applicable contingent deferred sales charge.
16 ANNUAL REPORTS JULY 31, 2007
Performance Data (continued) BlackRock Pennsylvania Municipal Bond Fund
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Institutional,
Service, Investor A & Investor A1 Shares compared to growth of an investment in
the Lehman Brothers Municipal Bond Index. Values are from July 1997 to July
2007:
BR Pennsylvania BR Pennsylvania BR Pennsylvania BR Pennsylvania Lehman Brothers
Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund Municipal Bond
Institutional Shares*+ Service Shares*+ Investor A Shares*+ Investor A1 Shares*+ Index++
7/97 $10,000 $10,000 $ 9,575 $ 9,600 $10,000
7/98 $10,599 $10,573 $10,123 $10,174 $10,599
7/99 $10,748 $10,694 $10,240 $10,307 $10,904
7/00 $11,011 $10,929 $10,465 $10,540 $11,374
7/01 $12,072 $11,952 $11,444 $11,543 $12,521
7/02 $12,869 $12,710 $12,170 $12,292 $13,361
7/03 $13,343 $13,146 $12,587 $12,746 $13,842
7/04 $14,085 $13,842 $13,253 $13,429 $14,643
7/05 $15,095 $14,797 $14,168 $14,390 $15,573
7/06 $15,486 $15,143 $14,499 $14,748 $15,970
7/07 $16,106 $15,711 $15,045 $15,310 $16,651
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
+ The Fund invests primarily in long-term investment grade obligations
issued by or on behalf of the Commonwealth of Pennsylvania, its political
subdivisions, agencies and instrumentalities and obligations of other
qualifying issuers.
++ This unmanaged Index consists of revenue bonds, prerefunded bonds, general
obligation bonds and insured bonds, all of which mature within 30 years.
Past performance is not indicative of future results.
Average Annual Total Return
Return
================================================================================
Institutional Shares
================================================================================
One Year Ended 7/31/07 +4.01%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.59
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.88
- --------------------------------------------------------------------------------
Return
================================================================================
Service Shares
================================================================================
One Year Ended 7/31/07 +3.75%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.33
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.62
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge*
================================================================================
Investor A Shares
================================================================================
One Year Ended 7/31/07 +3.76% -0.65%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.33 +3.43
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.62 +4.17
- --------------------------------------------------------------------------------
Return Without Return With
Sales Charge Sales Charge**
================================================================================
Investor A1 Shares
================================================================================
One Year Ended 7/31/07 +3.81% -0.34%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.49 +3.64
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.78 +4.35
- --------------------------------------------------------------------------------
* Assuming maximum sales charge of 4.25%.
** Assuming maximum sales charge of 4%.
ANNUAL REPORTS JULY 31, 2007 17
Performance Data (concluded) BlackRock Pennsylvania Municipal Bond Fund
Total Return Based on a $10,000 Investment
A line graph depicting the growth of an investment in the Fund's Investor B,
Investor B1, Investor C & Investor C1 Shares compared to growth of an investment
in the Lehman Brothers Municipal Bond Index. Values are from July 1997 to July
2007:
BR Pennsylvania BR Pennsylvania BR Pennsylvania BR Pennsylvania Lehman Brothers
Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund Municipal Bond
Investor B Shares*+ Investor B1 Shares*+ Investor C Shares*+ Investor C1 Shares*+ Index++
7/97 $10,000 $10,000 $10,000 $10,000 $10,000
7/98 $10,494 $10,555 $10,494 $10,544 $10,599
7/99 $10,536 $10,639 $10,536 $10,618 $10,904
7/00 $10,687 $10,845 $10,687 $10,812 $11,374
7/01 $11,600 $11,829 $11,600 $11,782 $12,521
7/02 $12,244 $12,547 $12,244 $12,484 $13,361
7/03 $12,569 $12,945 $12,569 $12,868 $13,842
7/04 $13,136 $13,596 $13,136 $13,500 $14,643
7/05 $13,939 $14,497 $13,939 $14,381 $15,573
7/06 $14,158 $14,797 $14,158 $14,678 $15,970
7/07 $14,590 $15,313 $14,592 $15,161 $16,651
* Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
+ The Fund invests primarily in long-term investment grade obligations
issued by or on behalf of the Commonwealth of Pennsylvania, its political
subdivisions, agencies and instrumentalities and obligations of other
qualifying issuers.
++ This unmanaged Index consists of revenue bonds, prerefunded bonds, general
obligation bonds and insured bonds, all of which mature within 30 years.
Past performance is not indicative of future results.
Average Annual Total Return
Return Return
Without CDSC With CDSC++
================================================================================
Investor B Shares*
================================================================================
One Year Ended 7/31/07 +3.06% -1.42%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +3.57 +3.22
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +3.85 +3.85
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC++
================================================================================
Investor B1 Shares**
================================================================================
One Year Ended 7/31/07 +3.49% -0.49%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +4.07 +3.72
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.35 +4.35
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC++
================================================================================
Investor C Shares+
================================================================================
One Year Ended 7/31/07 +3.07% +2.07%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +3.57 +3.57
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +3.85 +3.85
- --------------------------------------------------------------------------------
Return Return
Without CDSC With CDSC++
================================================================================
Investor C1 Shares+
================================================================================
One Year Ended 7/31/07 +3.29% +2.30%
- --------------------------------------------------------------------------------
Five Years Ended 7/31/07 +3.96 +3.96
- --------------------------------------------------------------------------------
Ten Years Ended 7/31/07 +4.25 +4.25
- --------------------------------------------------------------------------------
* Maximum contingent deferred sales charge is 4.50% and is reduced to 0%
after six years.
** Maximum contingent deferred sales charge is 4% and is reduced to 0% after
six years.
+ Maximum contingent deferred sales charge is 1% and is reduced to 0% after
one year.
++ Assuming payment of applicable contingent deferred sales charge.
18 ANNUAL REPORTS JULY 31, 2007
Disclosure of Expenses
Shareholders of each Fund may incur the following charges: (a) expenses related
to transactions, including sales charges, redemption fees and exchange fees; and
(b) operating expenses including advisory fees, distribution fees including
12b-1 fees, and other Fund expenses. The following example (which is based on a
hypothetical investment of $1,000 invested on February 1, 2007 and held through
July 31, 2007) is 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 first table below provides 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 in the first line under the
heading entitled "Expenses Paid During the Period."
The second table below provides information about hypothetical account values
and hypothetical expenses based on each Fund's actual expense ratio and an
assumed rate of return of 5% per year before expenses. In order to assist
shareholders in comparing the ongoing expenses of investing in these Funds and
other funds, compare the 5% hypothetical example with the 5% hypothetical
examples that appear in other funds' shareholder reports.
The expenses shown in the table are intended to highlight shareholders' ongoing
costs only and do not reflect any transactional expenses, such as sales charges,
redemption fees or exchange fees. Therefore, the second table is 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.
BlackRock Florida Municipal Bond Fund
Including Interest Expense and Fees
Expenses Paid
During the
Beginning Ending Period*
Account Value Account Value February 1, 2007
February 1, 2007 July 31, 2007 to July 31, 2007
========================================================================================================================
Actual
========================================================================================================================
Institutional $1,000 $ 1,006.70 $ 6.02
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,005.50 $ 7.11
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,006.20 $ 6.47
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 1,004.20 $ 8.50
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 1,001.60 $ 11.02
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,003.70 $ 8.94
========================================================================================================================
Hypothetical (5% annual return before expenses)**
========================================================================================================================
Institutional $1,000 $ 1,018.80 $ 6.06
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,017.71 $ 7.15
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,018.35 $ 6.51
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 1,016.32 $ 8.55
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 1,013.79 $ 11.08
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,015.87 $ 9.00
- ------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.21% for Institutional, 1.43% for Investor A, 1.30%
for Investor A1, 1.71% for Investor B, 2.22% for Investor C and 1.80% for
Investor C1), multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
ANNUAL REPORTS JULY 31, 2007 19
Disclosure of Expenses (continued) BlackRock Florida Municipal Bond Fund
Excluding Interest Expense and Fees
Expenses Paid
During the
Beginning Ending Period*
Account Value Account Value February 1, 2007
February 1, 2007 July 31, 2007 to July 31, 2007
========================================================================================================================
Actual
========================================================================================================================
Institutional $1,000 $ 1,006.70 $ 4.38
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,005.50 $ 5.52
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,006.20 $ 4.83
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 1,004.20 $ 6.81
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 1,001.60 $ 9.43
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,003.70 $ 7.25
========================================================================================================================
Hypothetical (5% annual return before expenses)**
========================================================================================================================
Institutional $1,000 $ 1,020.44 $ 4.41
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,019.30 $ 5.56
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,019.99 $ 4.86
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 1,018.01 $ 6.85
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 1,015.38 $ 9.49
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,017.56 $ 7.30
- ------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.88% for Institutional, 1.11% for Investor A, .97%
for Investor A1, 1.37% for Investor B, 1.90% for Investor C and 1.46% for
Investor C1), multiplied by the average account value over the period,
multiplied by 181/365 (to reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying
the number of days in the most recent fiscal half year divided by 365.
20 ANNUAL REPORTS JULY 31, 2007
Disclosure of Expenses (continued) BlackRock New Jersey Municipal Bond Fund
Including Interest Expense and Fees
Expenses Paid
During the
Beginning Ending Period*
Account Value Account Value February 1, 2007
February 1, 2007 July 31, 2007 to July 31, 2007
========================================================================================================================
Actual
========================================================================================================================
Institutional $1,000 $ 1,003.90 $ 4.72
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $ 1,002.70 $ 5.96
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,002.70 $ 5.96
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,003.40 $ 5.27
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 999.00 $ 9.67
- ------------------------------------------------------------------------------------------------------------------------
Investor B1 $1,000 $ 1,001.40 $ 7.25
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 998.00 $ 9.66
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,000.90 $ 7.69
========================================================================================================================
Hypothetical (5% annual return before expenses)**
========================================================================================================================
Institutional $1,000 $ 1,020.09 $ 4.76
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $ 1,018.85 $ 6.01
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,018.85 $ 6.01
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,019.54 $ 5.31
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 1,015.13 $ 9.74
- ------------------------------------------------------------------------------------------------------------------------
Investor B1 $1,000 $ 1,017.56 $ 7.30
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 1,015.13 $ 9.74
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,017.11 $ 7.75
- ------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.95% for Institutional, 1.20% for Service, 1.20% for
Investor A, 1.06% for Investor A1, 1.95% for Investor B, 1.46% for
Investor B1, 1.95% for Investor C and 1.55% for Investor C1), multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
ANNUAL REPORTS JULY 31, 2007 21
Disclosure of Expenses (continued) BlackRock New Jersey Municipal Bond Fund
Excluding Interest Expense and Fees
Expenses Paid
During the
Beginning Ending Period*
Account Value Account Value February 1, 2007
February 1, 2007 July 31, 2007 to July 31, 2007
========================================================================================================================
Actual
========================================================================================================================
Institutional $1,000 $ 1,003.90 $ 2.98
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $ 1,002.70 $ 4.22
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,002.70 $ 4.22
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,003.40 $ 3.48
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 999.00 $ 7.93
- ------------------------------------------------------------------------------------------------------------------------
Investor B1 $1,000 $ 1,001.40 $ 5.41
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 998.00 $ 7.93
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,000.90 $ 5.90
========================================================================================================================
Hypothetical (5% annual return before expenses)**
========================================================================================================================
Institutional $1,000 $ 1,021.82 $ 3.01
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $ 1,020.58 $ 4.26
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,020.58 $ 4.26
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,021.33 $ 3.51
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 1,016.87 $ 8.00
- ------------------------------------------------------------------------------------------------------------------------
Investor B1 $1,000 $ 1,019.39 $ 5.46
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 1,016.87 $ 8.00
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,018.90 $ 5.96
- ------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.60% for Institutional, .85% for Service, .85% for
Investor A, .70% for Investor A1, 1.60% for Investor B, 1.09% for Investor
B1, 1.60% for Investor C and 1.19% for Investor C1), multiplied by the
average account value over the period, multiplied by 181/365 (to reflect
the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying
the number of days in the most recent fiscal half year divided by 365.
22 ANNUAL REPORTS JULY 31, 2007
Disclosure of Expenses (continued) BlackRock Pennsylvania Municipal Bond Fund
Including Interest Expense and Fees
Expenses Paid
During the
Beginning Ending Period*
Account Value Account Value February 1, 2007
February 1, 2007 July 31, 2007 to July 31, 2007
========================================================================================================================
Institutional $1,000 $ 1,010.20 $ 5.53
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $ 1,008.10 $ 6.77
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,009.10 $ 6.63
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,009.70 $ 6.18
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 1,006.00 $ 9.80
- ------------------------------------------------------------------------------------------------------------------------
Investor B1 $1,000 $ 1,007.70 $ 8.26
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 1,005.20 $ 10.34
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,007.20 $ 8.66
========================================================================================================================
Hypothetical (5% annual return before expenses)**
========================================================================================================================
Institutional $1,000 $ 1,019.30 $ 5.56
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $ 1,018.06 $ 6.81
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,018.20 $ 6.66
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,018.65 $ 6.21
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 1,015.03 $ 9.84
- ------------------------------------------------------------------------------------------------------------------------
Investor B1 $1,000 $ 1,016.57 $ 8.30
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 1,014.49 $ 10.39
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,016.17 $ 8.70
- ------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.11% for Institutional, 1.36% for Service, 1.33% for
Investor A, 1.24% for Investor A1, 1.97% for Investor B, 1.66% for
Investor B1, 2.08% for Investor C and 1.74% for Investor C1), multiplied
by the average account value over the period, multiplied by 181/365 (to
reflect the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by multiplying
the number of days in the most recent fiscal half year divided by 365.
ANNUAL REPORTS JULY 31, 2007 23
Disclosure of Expenses (concluded) BlackRock Pennsylvania Municipal Bond Fund
Excluding Interest Expense and Fees
Expenses Paid
During the
Beginning Ending Period*
Account Value Account Value February 1, 2007
February 1, 2007 July 31, 2007 to July 31, 2007
========================================================================================================================
Institutional $1,000 $ 1,010.20 $ 2.99
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $ 1,008.10 $ 4.23
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,009.10 $ 4.13
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,009.70 $ 3.49
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 1,006.00 $ 7.21
- ------------------------------------------------------------------------------------------------------------------------
Investor B1 $1,000 $ 1,007.70 $ 5.43
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 1,005.20 $ 7.95
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,007.20 $ 5.92
========================================================================================================================
Hypothetical (5% annual return before expenses)**
========================================================================================================================
Institutional $1,000 $ 1,021.82 $ 3.01
- ------------------------------------------------------------------------------------------------------------------------
Service $1,000 $ 1,020.58 $ 4.26
- ------------------------------------------------------------------------------------------------------------------------
Investor A $1,000 $ 1,020.68 $ 4.16
- ------------------------------------------------------------------------------------------------------------------------
Investor A1 $1,000 $ 1,021.33 $ 3.51
- ------------------------------------------------------------------------------------------------------------------------
Investor B $1,000 $ 1,017.61 $ 7.25
- ------------------------------------------------------------------------------------------------------------------------
Investor B1 $1,000 $ 1,019.39 $ 5.46
- ------------------------------------------------------------------------------------------------------------------------
Investor C $1,000 $ 1,016.87 $ 8.00
- ------------------------------------------------------------------------------------------------------------------------
Investor C1 $1,000 $ 1,018.90 $ 5.96
- ------------------------------------------------------------------------------------------------------------------------
* For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (.60% for Institutional, .85% for Service, .83% for
Investor A, .70% for Investor A1, 1.45% for Investor B, 1.09% for Investor
B1, 1.60% for Investor C and 1.19% for Investor C1), multiplied by the
average account value over the period, multiplied by 181/365 (to reflect
the one-half year period shown).
** Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 365.
24 ANNUAL REPORTS JULY 31, 2007
Portfolio Information as of July 31, 2007
BlackRock Florida Municipal Bond Fund
Percent of
Distribution by Market Sector Long-Term Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds .............................. 73.9%
General Obligation Bonds ......................... 8.5
Prerefunded Bonds* ............................... 17.6
- --------------------------------------------------------------------------------
* Backed by an escrow fund.
Quality Ratings by Percent of
S&P/Moody's Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa .......................................... 58.2%
AA/Aa ............................................ 4.3
A/A .............................................. 7.9
BBB/Baa .......................................... 11.1
NR (Not Rated) ................................... 16.0
Other* ........................................... 2.5
- --------------------------------------------------------------------------------
* Includes portfolio holdings in mutual funds.
BlackRock New Jersey Municipal Bond Fund
Percent of
Distribution by Market Sector Long-Term Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds .............................. 73.5%
General Obligation Bonds ......................... 19.3
Prerefunded Bonds* ............................... 7.2
- --------------------------------------------------------------------------------
* Backed by an escrow fund.
Quality Ratings by Percent of
S&P/Moody's Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa .......................................... 57.6%
AA/Aa ............................................ 8.3
A/A .............................................. 8.9
BBB/Baa .......................................... 15.8
BB/Ba ............................................ 0.8
B/B .............................................. 1.0
CCC/Caa .......................................... 1.0
NR (Not Rated) ................................... 6.6
- --------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund
Percent of
Distribution by Market Sector Long-Term Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds .............................. 61.4%
General Obligation Bonds ......................... 34.0
Prerefunded Bonds* ............................... 4.6
- --------------------------------------------------------------------------------
* Backed by an escrow fund.
Quality Ratings by Percent of
S&P/Moody's Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa .......................................... 61.3%
AA/Aa ............................................ 13.7
A/A .............................................. 5.1
BBB/Baa .......................................... 12.7
BB/Ba ............................................ 0.6
CCC/Caa .......................................... 0.1
NR (Not Rated) ................................... 6.5
- --------------------------------------------------------------------------------
ANNUAL REPORTS JULY 31, 2007 25
Schedule of Investments as of July 31, 2007
BlackRock Florida Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
California -- 0.5%
- --------------------------------------------------------------------------------
$ 500 Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Refunding
Bonds, Senior Series A-1, 5.75% due 6/01/2047 $ 515
================================================================================
Florida -- 82.4%
- --------------------------------------------------------------------------------
1,095 Altamonte Springs, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health Systems --
Sunbelt), 7% due 10/01/2014 (i) 1,303
- --------------------------------------------------------------------------------
1,210 Ballantrae, Florida, Community Development District,
Capital Improvement Revenue Bonds, 6%
due 5/01/2035 1,259
- --------------------------------------------------------------------------------
1,000 Cape Coral, Florida, Special Obligation Revenue Bonds,
5% due 10/01/2033 (g) 1,034
- --------------------------------------------------------------------------------
545 Capital Trust Agency, Florida, Air Cargo Revenue Bonds,
AMT, 6.25% due 1/01/2019 572
- --------------------------------------------------------------------------------
Citrus County, Florida, Hospital Board Revenue
Refunding Bonds (Citrus Memorial Hospital):
900 6.25% due 8/15/2023 963
1,500 6.375% due 8/15/2032 1,610
- --------------------------------------------------------------------------------
1,000 Collier County, Florida, School Board, COP, 5%
due 2/15/2027 (f) 1,038
- --------------------------------------------------------------------------------
1,000 Cypress Lakes, Florida, Community Development
District, Special Assessment Bonds, Series A, 6%
due 5/01/2034 1,036
- --------------------------------------------------------------------------------
1,500 Fiddlers Creek, Florida, Community Development
District Number 2, Special Assessment Revenue Bonds,
Series A, 6.375% due 5/01/2035 1,550
- --------------------------------------------------------------------------------
940 Florida HFA, Homeowner Mortgage Revenue Bonds,
AMT, Series 3, 6.35% due 7/01/2028 (e)(g) 973
- --------------------------------------------------------------------------------
1,000 Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Bonds, AMT, Series 3, 5.15%
due 7/01/2038 (o)(p) 1,004
- --------------------------------------------------------------------------------
475 Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25% due 7/01/2022 (f) 491
- --------------------------------------------------------------------------------
1,383 Florida State Board of Education, Lottery Revenue
Bonds, DRIVERS, Series 222, 8.544%
due 7/01/2017 (d)(n) 1,592
- --------------------------------------------------------------------------------
965 Harbor Bay, Florida, Community Development District,
Capital Improvement Special Assessment Revenue
Bonds, Series A, 7% due 5/01/2033 1,030
- --------------------------------------------------------------------------------
2,000 Hernando County, Florida, School Board, COP, 5%
due 7/01/2035 (g) 2,053
- --------------------------------------------------------------------------------
1,250 Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25% due 11/15/2036 1,264
- --------------------------------------------------------------------------------
Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT:
1,000 Series A, 7.125% due 4/01/2030 1,065
1,750 Series B, 7.125% due 4/01/2030 1,864
- --------------------------------------------------------------------------------
Jacksonville, Florida, Economic Development
Commission, Health Care Facilities Revenue Bonds
(Mayo Clinic -- Jacksonville):
1,000 Series A, 5.50% due 11/15/2036 1,053
1,000 Series A, 5.50% due 11/15/2036 (g) 1,059
2,000 Series B, 5.50% due 11/15/2036 2,105
410 Series B, 5.50% due 11/15/2036 (g) 434
- --------------------------------------------------------------------------------
2,050 Jacksonville, Florida, Economic Development
Commission, IDR (Metropolitan Parking Solutions
Project), AMT, 5.875% due 6/01/2031 (a) 2,202
- --------------------------------------------------------------------------------
1,000 Jacksonville, Florida, Economic Development
Commission, Revenue Refunding Bonds (Anheuser
Busch Company Project), AMT, Series B, 4.75%
due 3/01/2047 929
- --------------------------------------------------------------------------------
1,200 Jacksonville, Florida, Guaranteed Entitlement Revenue
Refunding and Improvement Bonds, 5.25%
due 10/01/2032 (d) 1,253
- --------------------------------------------------------------------------------
Jacksonville, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Baptist Medical Center Project):
1,000 5% due 8/15/2037 (f) 1,029
1,000 VRDN, 3.66% due 8/15/2021 (m) 1,000
- --------------------------------------------------------------------------------
1,520 Jacksonville, Florida, Sales Tax Revenue Bonds, 5%
due 10/01/2027 (g) 1,565
- --------------------------------------------------------------------------------
500 Lee County, Florida, Hospital Board of Directors,
Hospital Revenue Bonds (Memorial Health System),
VRDN, Series B, 3.72% due 4/01/2027 (m) 500
- --------------------------------------------------------------------------------
1,200 Lee County, Florida, IDA, Health Care Facilities, Revenue
Refunding Bonds (Shell Point/Alliance Obligor Group),
5.125% due 11/15/2036 1,155
- --------------------------------------------------------------------------------
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of Investments,
we have abbreviated the names of many of the securities according to the list at
right.
AMT Alternative Minimum Tax (subject to)
CABS Capital Appreciation Bonds
COP Certificates of Participation
DRIVERS Derivative Inverse Tax-Exempt Receipts
EDA Economic Development Authority
EDR Economic Development Revenue Bonds
GO General Obligation Bonds
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
M/F Multi-Family
PCR Pollution Control Revenue Bonds
RITR Residual Interest Trust Receipts
S/F Single-Family
VRDN Variable Rate Demand Notes
26 ANNUAL REPORTS JULY 31, 2007
Schedule of Investments (continued)
BlackRock Florida Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Florida (continued)
- --------------------------------------------------------------------------------
$ 1,000 Marco Island, Florida, Utility System Revenue Bonds,
5% due 10/01/2033 (g) $ 1,028
- --------------------------------------------------------------------------------
1,200 Marion County, Florida, Hospital District, Revenue
Refunding Bonds (Monroe Regional Medical Center),
5% due 10/01/2029 1,198
- --------------------------------------------------------------------------------
2,320 Martin County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Martin Memorial Medical
Center), Series A, 5.875% due 11/15/2012 (l) 2,544
- --------------------------------------------------------------------------------
3,435 Miami-Dade County, Florida, Aviation Revenue Bonds,
AMT, Series A, 5% due 10/01/2033 (f) 3,472
- --------------------------------------------------------------------------------
Miami-Dade County, Florida, Expressway Authority, Toll
System Revenue Bonds, Series B (d):
2,495 5.25% due 7/01/2026 2,649
3,450 5% due 7/01/2033 3,547
- --------------------------------------------------------------------------------
1,000 Miami-Dade County, Florida, HFA, Home Ownership
Mortgage Revenue Bonds, AMT, Series A, 5.55%
due 10/01/2049 (o)(p) 1,046
- --------------------------------------------------------------------------------
1,250 Miami-Dade County, Florida, Solid Waste System
Revenue Bonds, 5.25% due 10/01/2030 (g) 1,323
- --------------------------------------------------------------------------------
1,000 Middle Village Community Development District,
Florida, Special Assessment Bonds, Series A, 6%
due 5/01/2035 1,029
- --------------------------------------------------------------------------------
1,000 Midtown Miami, Florida, Community Development
District, Special Assessment Revenue Bonds, Series A,
6.25% due 5/01/2037 1,018
- --------------------------------------------------------------------------------
975 Oak Creek, Florida, Community Development District,
Special Assessment Bonds, 5.80% due 5/01/2035 989
- --------------------------------------------------------------------------------
975 Old Palm Community Development District, Florida,
Special Assessment Bonds (Palm Beach Gardens),
Series A, 5.90% due 5/01/2035 995
- --------------------------------------------------------------------------------
500 Orange County, Florida, Health Facilities Authority, First
Mortgage Revenue Bonds (Orlando Lutheran Towers),
5.50% due 7/01/2038 486
- --------------------------------------------------------------------------------
2,705 Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional Healthcare),
6% due 12/01/2012 (l) 2,972
- --------------------------------------------------------------------------------
1,000 Orange County, Florida, School Board, COP, Series A,
5% due 8/01/2032 (d) 1,032
- --------------------------------------------------------------------------------
1,500 Orlando and Orange County, Florida, Expressway
Authority Revenue Bonds, Series B, 5%
due 7/01/2035 (b) 1,539
- --------------------------------------------------------------------------------
1,000 Orlando, Florida, Greater Orlando Aviation Authority,
Airport Facilities Revenue Bonds (JetBlue Airways Corp.),
AMT, 6.375% due 11/15/2026 1,040
- --------------------------------------------------------------------------------
Orlando, Florida, Urban Community Development
District, Capital Improvement Special Assessment Bonds:
1,000 6.25% due 5/01/2034 1,054
930 Series A, 6.95% due 5/01/2033 988
- --------------------------------------------------------------------------------
925 Osceola County, Florida, Tourist Development Tax
Revenue Bonds, Series A, 5.50% due 10/01/2027 (d) 978
- --------------------------------------------------------------------------------
Palm Beach County, Florida, School Board COP, Series A:
1,000 5% due 8/01/2029 (d) 1,025
1,000 5% due 8/01/2031 (f) 1,030
- --------------------------------------------------------------------------------
1,000 Palm Coast, Florida, Utility System Revenue Bonds, 5%
due 10/01/2027 (g) 1,028
- --------------------------------------------------------------------------------
Park Place Community Development District, Florida,
Special Assessment Revenue Bonds:
500 6.75% due 5/01/2032 529
985 6.375% due 5/01/2034 1,040
- --------------------------------------------------------------------------------
2,080 Pasco County, Florida, Health Facilities Authority, Gross
Revenue Bonds (Adventist Health System -- Sunbelt), 7%
due 10/01/2014 (i) 2,447
- --------------------------------------------------------------------------------
1,000 Pinellas County, Florida, Health Facilities Authority
Revenue Bonds (BayCare Health System Inc.), 5.75%
due 5/15/2013 (l) 1,093
- --------------------------------------------------------------------------------
1,300 Polk County, Florida, Public Facilities Revenue Bonds,
5% due 12/01/2033 (g) 1,340
- --------------------------------------------------------------------------------
45 Reunion East Community Development District, Florida,
Special Assessment, Series B, 5.90% due 11/01/2007 45
- --------------------------------------------------------------------------------
1,000 Saint Johns County, Florida, Sales Tax Revenue Bonds,
Series A, 5.25% due 10/01/2028 (b) 1,054
- --------------------------------------------------------------------------------
900 South Florida Water Management District, COP, 5%
due 10/01/2036 (b) 925
- --------------------------------------------------------------------------------
970 South Kendall, Florida, Community Development
District, Special Assessment Bonds, Series A, 5.90%
due 5/01/2035 1,000
- --------------------------------------------------------------------------------
South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital Inc.):
1,000 5.80% due 10/01/2034 1,028
995 6.375% due 10/01/2034 1,069
- --------------------------------------------------------------------------------
310 Sterling Hill, Florida, Community Development District,
Capital Improvement Revenue Refunding Bonds,
Series B, 5.50% due 11/01/2010 310
- --------------------------------------------------------------------------------
105 Stoneybrook West, Florida, Community Development
District, Special Assessment Revenue Bonds, Series B,
6.45% due 5/01/2010 107
- --------------------------------------------------------------------------------
2,860 University of Central Florida (UCF) Athletics Association
Inc., COP, Series A, 5.25% due 10/01/2034 (d) 2,990
- --------------------------------------------------------------------------------
1,000 University of North Florida, Capital Improvement
Revenue Bonds (Housing Project), 5%
due 11/01/2032 (d) 1,037
- --------------------------------------------------------------------------------
1,000 Village Center Community Development District,
Florida, Utility Revenue Bonds, 5.125%
due 10/01/2028 (g) 1,037
- --------------------------------------------------------------------------------
1,425 Vista Lakes Community Development District, Florida,
Capital Improvement Revenue Bonds, Series A, 6.75%
due 5/01/2012 (l) 1,585
- --------------------------------------------------------------------------------
1,000 Volusia County, Florida, IDA, Student Housing Revenue
Bonds (Stetson University Project), Series A, 5%
due 6/01/2035 (c) 1,032
- --------------------------------------------------------------------------------
1,000 Watergrass Community Development District, Florida,
Special Assessment Revenue Bonds, Series B, 5.125%
due 11/01/2014 990
- --------------------------------------------------------------------------------
================================================================================
New Jersey -- 2.4%
- --------------------------------------------------------------------------------
New Jersey EDA, Cigarette Tax Revenue Bonds:
1,500 5.50% due 6/15/2024 1,558
1,020 5.75% due 6/15/2034 1,081
- --------------------------------------------------------------------------------
ANNUAL REPORTS JULY 31, 2007 27
Schedule of Investments (concluded)
BlackRock Florida Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Puerto Rico -- 2.2%
- --------------------------------------------------------------------------------
$ 1,365 Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Revenue Bonds
(Cogeneration Facility -- AES Puerto Rico Project), AMT,
6.625% due 6/01/2026 $ 1,459
- --------------------------------------------------------------------------------
1,000 Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I, 5%
due 7/01/2036 1,017
- --------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $92,725) -- 87.5% 96,283
================================================================================
Municipal Bonds Held in Trust (q)
================================================================================
Florida -- 20.3%
- --------------------------------------------------------------------------------
7,235 Florida State Board of Education, Lottery Revenue
Bonds, Series B, 6.25% due 7/01/2010 (d)(l) 7,784
- --------------------------------------------------------------------------------
5,000 Florida State Turnpike Authority, Turnpike Revenue
Bonds (Department of Transportation), Series A, 6.25%
due 7/01/2010 (d)(l) 5,380
- --------------------------------------------------------------------------------
2,000 Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, Series A, 5% due 10/01/2040 (h) 2,028
- --------------------------------------------------------------------------------
2,000 Santa Rosa County, Florida, School Board,
COP, Revenue Refunding Bonds, Series 2,
5.25% due 2/01/2026 (d) 2,113
- --------------------------------------------------------------------------------
4,640 South Broward, Florida, Hospital District,
Hospital Revenue Bonds, 5.625%
due 5/01/2032 (g) 5,026
- --------------------------------------------------------------------------------
Total Municipal Bonds Held in Trust
(Cost -- $21,799) -- 20.3% 22,331
================================================================================
Shares
Held Mutual Funds
================================================================================
211 BlackRock Florida Insured Municipal 2008
Term Trust (j) 3,062
- --------------------------------------------------------------------------------
Total Mutual Funds
(Cost -- $3,496) -- 2.8% 3,062
================================================================================
Short-Term Securities
================================================================================
5 CMA Florida Municipal Money Fund,
3.03% (j)(k) 5
- --------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $5) -- 0.0% 5
================================================================================
Total Investments
(Cost -- $118,025*) -- 110.6% 121,681
Liabilities in Excess of Other Assets -- (1.0%) (1,146)
Liability for Trust Certificates, Including Interest
Expense Payable -- (9.6%) (10,503)
--------
Net Assets -- 100.0% $110,032
========
* The cost and unrealized appreciation (depreciation) of investments as of
July 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ....................................... $ 108,494
=========
Gross unrealized appreciation ........................ $ 3,501
Gross unrealized depreciation ........................ (752)
---------
Net unrealized appreciation .......................... $ 2,749
=========
(a) ACA Insured.
(b) AMBAC Insured.
(c) CIFG Insured.
(d) FGIC Insured.
(e) FHA Insured.
(f) FSA Insured.
(g) MBIA Insured.
(h) XL Capital Insured.
(i) Escrowed to maturity.
(j) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
- -------------------------------------------------------------------------------
Purchase Sale Realized Dividend
Affiliate Cost Cost Gain Income
- -------------------------------------------------------------------------------
BlackRock Florida Insured
Municipal 2008 Term Trust -- -- -- $95
CMA Florida Municipal
Money Fund --+@ -- -- --+
- -------------------------------------------------------------------------------
+ Amount is less than $1,000.
@ Represents net purchase cost.
(k) Represents the current yield as of July 31, 2007.
(l) Prerefunded.
(m) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(n) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(o) FHLMC Collateralized.
(p) FNMA/GNMA Collateralized.
(q) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1(c)
to Financial Statements for details of municipal bonds held in trust.
See Notes to Financial Statements.
28 ANNUAL REPORTS JULY 31, 2007
Schedule of Investments as of July 31, 2007
BlackRock New Jersey Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
New Jersey -- 79.6%
- --------------------------------------------------------------------------------
$ 2,000 Bergen County, New Jersey, Improvement Authority,
School District, GO (Wyckoff Township Board of
Education Project), 5% due 4/01/2032 $ 2,082
- --------------------------------------------------------------------------------
Camden County, New Jersey, Pollution Control
Financing Authority, Solid Waste Resource Recovery,
Revenue Refunding Bonds, AMT:
340 Series A, 7.50% due 12/01/2010 344
135 Series B, 7.50% due 12/01/2009 137
- --------------------------------------------------------------------------------
875 Cape May Point, New Jersey, GO, 5.70%
due 3/15/2013 899
- --------------------------------------------------------------------------------
1,000 Delaware River and Bay Authority, Revenue Refunding
Bonds, 5% due 1/01/2028 (j) 1,038
- --------------------------------------------------------------------------------
2,450 Delaware River Joint Toll Bridge Commission of New
Jersey and Pennsylvania, Bridge Revenue Refunding
Bonds, 5% due 7/01/2024 2,518
- --------------------------------------------------------------------------------
350 Delaware River Port Authority of Pennsylvania and
New Jersey, Revenue Refunding Bonds (Port District
Project), Series A, 5.20% due 1/01/2027 (h) 363
- --------------------------------------------------------------------------------
4,135 Garden State Preservation Trust of New Jersey, CABS,
Revenue Bonds, Series B, 5.24% due 11/01/2027 (h)(r) 1,601
- --------------------------------------------------------------------------------
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (h):
1,640 5.80% due 11/01/2022 1,836
2,080 5.75% due 11/01/2028 2,459
- --------------------------------------------------------------------------------
10,000 Garden State Preservation Trust of New Jersey, Revenue
Bonds, Series B, 5.17% due 11/01/2024 (h)(r) 4,540
- --------------------------------------------------------------------------------
250 Gloucester County, New Jersey, Improvement Authority,
Lease Revenue Bonds, Series A, 5% due 7/15/2023 (j) 259
- --------------------------------------------------------------------------------
2,300 Hopatcong Boro, New Jersey, GO, 5.75%
due 8/01/2013 (b)(o) 2,530
- --------------------------------------------------------------------------------
169 Knowlton Township, New Jersey, Board of Education,
GO, 6.60% due 8/15/2011 187
- --------------------------------------------------------------------------------
200 Middlesex County, New Jersey, COP, Refunding, 5%
due 8/01/2022 (j) 206
- --------------------------------------------------------------------------------
1,705 Middlesex County, New Jersey, Improvement Authority,
County-Guaranteed Revenue Bonds (Golf Course
Projects), 5.25% due 6/01/2026 1,806
- --------------------------------------------------------------------------------
2,970 Middlesex County, New Jersey, Improvement Authority
Revenue Bonds (New Brunswick Apartments Rental
Housing), AMT, 5.15% due 2/01/2024 (g) 2,989
- --------------------------------------------------------------------------------
Middlesex County, New Jersey, Improvement Authority,
Senior Revenue Bonds (Heldrich Center Hotel/
Conference Project), Series A:
1,000 5% due 1/01/2015 1,002
1,000 5% due 1/01/2020 986
- --------------------------------------------------------------------------------
1,000 Middlesex County, New Jersey, Pollution Control
Financing Authority, Revenue Refunding Bonds
(Amerada Hess Corporation), 6.05% due 9/15/2034 1,063
- --------------------------------------------------------------------------------
New Jersey EDA, Cigarette Tax Revenue Bonds:
520 5.625% due 6/15/2019 538
790 5.75% due 6/15/2029 841
1,000 5.75% due 6/15/2029 (c) 1,097
125 5.50% due 6/15/2031 131
3,845 5.75% due 6/15/2034 4,076
- --------------------------------------------------------------------------------
New Jersey EDA, EDR (Masonic Charity Foundation of
New Jersey):
875 5.25% due 6/01/2024 916
500 5.25% due 6/01/2032 523
- --------------------------------------------------------------------------------
New Jersey EDA, EDR, Refunding:
150 (Burlington Coat Factory), 6.125% due 9/01/2010 150
2,500 (Kapkowski Road Landfill Reclamation Improvement
District Project), 6.50% due 4/01/2028 2,969
6,500 (The Seeing Eye, Inc. Project), 5% due 12/01/2024 (b) 6,786
- --------------------------------------------------------------------------------
3,000 New Jersey EDA, EDR (The Seeing Eye, Inc.), 6.20%
due 12/01/2009 (o) 3,208
- --------------------------------------------------------------------------------
New Jersey EDA, First Mortgage Revenue Bonds:
1,000 (Lions Gate Project), Series A, 5.875%
due 1/01/2037 1,019
1,330 (The Presbyterian Home), Series A, 6.375%
due 11/01/2031 1,395
1,630 (The Presbyterian Home), Series B, 5.75%
due 11/01/2031 1,632
- --------------------------------------------------------------------------------
New Jersey EDA, First Mortgage Revenue Refunding
Bonds, Series A:
585 (Fellowship Village), 5.30% due 1/01/2010 595
1,500 (The Winchester Gardens at Ward Homestead
Project), 5.80% due 11/01/2031 1,554
- --------------------------------------------------------------------------------
1,250 New Jersey EDA, IDR, Refunding (Newark Airport
Marriott Hotel), 7% due 10/01/2014 1,290
- --------------------------------------------------------------------------------
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A (j):
1,675 4.95% due 7/01/2021 (r) 902
2,100 5% due 7/01/2029 2,173
- --------------------------------------------------------------------------------
100 New Jersey EDA, PCR (Public Service Electric & Gas Co.),
AMT, Series A, 6.40% due 5/01/2032 (j) 101
- --------------------------------------------------------------------------------
New Jersey EDA, Retirement Community Revenue
Refunding Bonds:
425 (Cedar Crest Village Inc. Facility), Series A, 7.25%
due 11/15/2011 (o) 482
1,500 (Seabrook Village, Inc.), 5.25% due 11/15/2026 1,498
1,100 (Seabrook Village, Inc.), 5.25% due 11/15/2036 1,089
- --------------------------------------------------------------------------------
New Jersey EDA, Revenue Bonds:
1,075 (American Airlines Inc. Project), AMT, 7.10%
due 11/01/2031 1,077
4,000 (Motor Vehicle Commission), Series A, 3.52%
due 7/01/2012 (j)(r) 3,284
2,280 (New Jersey Performing Arts Center Project),
Series C, 5.75% due 6/15/2008 (b) 2,306
350 (Newark Downtown District Management
Corporation), 5.125% due 6/15/2037 348
4,000 (Saint Barnabas Medical Center Project), Series A,
5.625% due 7/01/2023 (j)(r) 1,939
- --------------------------------------------------------------------------------
ANNUAL REPORTS JULY 31, 2007 29
Schedule of Investments (continued)
BlackRock New Jersey Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
New Jersey (continued)
- --------------------------------------------------------------------------------
$ 50 New Jersey EDA, Revenue Refunding Bonds (Health
Village 96 Project), 6% due 5/01/2016 $ 50
- --------------------------------------------------------------------------------
New Jersey EDA, School Facilities Construction
Revenue Bonds:
2,500 Series G, 5% due 9/01/2013 (b)(o) 2,652
1,700 Series L, 5% due 3/01/2030 (h) 1,761
1,590 Series O, 5.25% due 3/01/2023 1,690
- --------------------------------------------------------------------------------
1,250 New Jersey EDA, Sewer Facilities Revenue Refunding
Bonds (Anheuser Busch), AMT, 4.95% due 3/01/2047 1,228
- --------------------------------------------------------------------------------
2,000 New Jersey EDA, Solid Waste Disposal Facilities
Revenue Bonds (Waste Management Inc.), AMT,
Series A, 5.30% due 6/01/2015 2,033
- --------------------------------------------------------------------------------
3,000 New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT, 6.25%
due 9/15/2019 3,086
- --------------------------------------------------------------------------------
2,000 New Jersey EDA, State Contract Revenue Refunding
Bonds (Economic Fund), Series A, 5.25%
due 3/15/2021 (j)(r) 1,091
- --------------------------------------------------------------------------------
100 New Jersey EDA, Water Facilities Revenue Bonds
(New Jersey -- American Water Company, Inc. Project),
AMT, Series A, 6.875% due 11/01/2034 (e) 101
- --------------------------------------------------------------------------------
New Jersey EDA, Water Facilities Revenue
Refunding Bonds:
100 (United Water of New Jersey Inc. Project), VRDN,
Series A, 3.64% due 11/01/2026 (b)(p) 100
1,000 (United Water of New Jersey, Inc.), Series B, 4.50%
due 11/01/2025 (b) 996
- --------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority
Revenue Bonds:
500 (Avalon at Hillsborough), AMT, Series A, 6.625%
due 7/01/2035 505
460 (Children's Specialized Hospital), Series A, 5.50%
due 7/01/2036 472
750 (Hunterdon Medical Center), Series A, 5.25%
due 7/01/2025 774
1,100 (Hunterdon Medical Center), Series A, 5.125%
due 7/01/2035 1,114
2,000 (Kennedy Health System), 5.50% due 7/01/2021 2,057
455 (Kennedy Health System), 5.625% due 7/01/2031 469
830 (Pascack Valley Hospital Association), 6%
due 7/01/2013 665
1,040 (RWJ Healthcare Corporation), Series B, 5%
due 7/01/2035 (k) 1,041
2,650 (Robert Wood Johnson University Hospital), 5.75%
due 7/01/2025 2,752
1,500 (South Jersey Hospital), 6% due 7/01/2012 (o) 1,633
- --------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds:
405 (Atlantic City Medical Center), 6.25%
due 7/01/2012 (o) 447
505 (Atlantic City Medical Center), 6.25%
due 7/01/2017 547
1,500 (Bayshore Community Hospital), 5.125%
due 7/01/2032 (k) 1,533
600 (Capital Health System Inc.), Series A, 5.75%
due 7/01/2023 628
- --------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds (concluded):
125 (General Hospital Center at Passaic), 6.75%
due 7/01/2019 (h)(l) 149
3,940 (Saint Barnabas Health Care System), Series A, 5%
due 7/01/2029 3,898
7,360 (Saint Barnabas Health Care System), Series B,
5.72% due 7/01/2036 (r) 1,469
7,000 (Saint Barnabas Health Care System), Series B,
5.79% due 7/01/2037 (r) 1,322
150 (Saint Joseph's Hospital and Medical Center),
Series A, 6% due 7/01/2026 (d) 152
1,000 (South Jersey Hospital System), 5% due 7/01/2036 982
3,200 (South Jersey Hospital System), 5% due 7/01/2046 3,097
- --------------------------------------------------------------------------------
805 New Jersey Sports and Exposition Authority, Luxury Tax
Revenue Refunding Bonds (Convention Center), 5.50%
due 3/01/2021 (j) 904
- --------------------------------------------------------------------------------
New Jersey Sports and Exposition Authority, State
Contract Revenue Bonds (j):
5,000 Series A, 5.50% due 3/01/2020 5,192
200 VRDN, Series C, 3.56% due 9/01/2024 (p) 200
- --------------------------------------------------------------------------------
800 New Jersey State Educational Facilities Authority, Higher
Education, Capital Improvement Revenue Bonds,
Series A, 5.125% due 9/01/2012 (b)(o) 847
- --------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority
Revenue Bonds:
3,000 (Fairleigh Dickinson University), Series D, 5.25%
due 7/01/2032 (a) 3,042
750 (Georgian Court College Project), Series C, 6.50%
due 7/01/2013 (o) 850
250 (Kean University), Series D, 5.25%
due 7/01/2013 (e)(o) 268
500 (Kean University), Series D, 5% due 7/01/2032 (e) 524
500 (Kean University), Series D, 5% due 7/01/2039 (e) 523
500 (Montclair State University), Series F, 5%
due 7/01/2011 (e)(o) 522
1,000 (New Jersey Institute of Technology), Series G,
5.25% due 7/01/2019 (j) 1,043
1,120 (Public Library Project Grant Issue), Series A, 5.50%
due 9/01/2019 (b) 1,195
500 (Richard Stockton College), Series F, 5%
due 7/01/2031 (j) 522
1,000 (Rider University), Series A, 5.125%
due 7/01/2028 (k) 1,014
30 (Rowan University), Series C, 5% due 7/01/2011 (e)(o) 32
650 (Rowan University), Series C, 5%
due 7/01/2014 (j)(o) 693
715 (Rowan University), Series C, 5.125%
due 7/01/2014 (j)(o) 768
70 (Rowan University), Series C, 5% due 7/01/2031 (e) 72
350 (Rowan University), Series G, 4.50%
due 7/01/2031 (j) 347
1,850 (Stevens Institute of Technology), Series A, 5%
due 7/01/2034 1,851
- --------------------------------------------------------------------------------
30 ANNUAL REPORTS JULY 31, 2007
Schedule of Investments (continued)
BlackRock New Jersey Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
New Jersey (continued)
- --------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds:
$ 500 (Georgian Court University), Series D, 5%
due 7/01/2033 $ 501
3,650 (New Jersey Institute of Technology), Series B, 5%
due 7/01/2016 (b) 3,858
1,000 (Ramapo College), Series I, 4.25%
due 7/01/2036 (b) 953
2,200 (Rowan University), Series B, 4.25%
due 7/01/2034 (e) 2,084
- --------------------------------------------------------------------------------
2,500 New Jersey State, GO, 5.75% due 5/01/2012 2,701
- --------------------------------------------------------------------------------
New Jersey State, GO, Refunding:
3,000 Series H, 5.25% due 7/01/2014 3,236
3,000 Series N, 5.50% due 7/15/2017 (e) 3,356
- --------------------------------------------------------------------------------
15 New Jersey State Higher Education Assistance Authority,
Student Loan Revenue Bonds, AMT, Series A, 5.30%
due 6/01/2017 (b) 15
- --------------------------------------------------------------------------------
750 New Jersey State Highway Authority, Garden State
Parkway, Senior General Revenue Refunding Bonds,
6.20% due 1/01/2010 (l) 777
- --------------------------------------------------------------------------------
2,175 New Jersey State Housing and Mortgage Finance
Agency, Capital Fund Program Revenue Bonds, Series A,
4.70% due 11/01/2025 (h) 2,183
- --------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, M/F Housing Revenue Refunding Bonds,
Series B (h):
195 6.15% due 11/01/2020 202
940 6.25% due 11/01/2026 973
- --------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Refunding Bonds,
AMT, Series T:
4,400 4.65% due 10/01/2032 4,142
2,900 4.70% due 10/01/2037 2,726
- --------------------------------------------------------------------------------
2,500 New Jersey State Transit Corporation, COP (Federal
Transit Administration Grants), Series A, 6.125%
due 9/15/2009 (b)(o) 2,618
- --------------------------------------------------------------------------------
2,820 New Jersey State Transportation Trust Fund Authority
Revenue Bonds, Transportation System, Series A, 5.75%
due 6/15/2020 3,188
- --------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds:
2,500 Series A, 6% due 6/15/2010 (o) 2,650
1,380 Series C, 5.05% due 12/15/2035 (b)(r) 357
1,230 Series D, 5% due 6/15/2020 1,283
3,000 Series D, 5% due 6/15/2020 (h) 3,149
- --------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Refunding Bonds,
Series B (j):
1,560 due 6/15/2010 1,673
940 due 6/15/2010 (l) 1,009
2,500 due 12/15/2011 (o) 2,720
1,800 due 12/15/2021 2,036
- --------------------------------------------------------------------------------
New Jersey State Turnpike Authority, Turnpike
Revenue Bonds:
1,510 Series B, 5.15% due 1/01/2035 (b)(r) 1,076
2,500 Series C, 5% due 1/01/2030 (h) 2,594
- --------------------------------------------------------------------------------
New Jersey State Turnpike Authority, Turnpike Revenue
Refunding Bonds:
400 Series A, 5% due 1/01/2019 (e) 417
1,000 Series A, 5% due 1/01/2027 (e) 1,034
80 Series C, 6.50% due 1/01/2016 90
2,955 Series C, 6.50% due 1/01/2016 (j)(l) 3,368
545 Series C, 6.50% due 1/01/2016 (j) 619
420 Series C, 6.50% due 1/01/2016 (l) 478
- --------------------------------------------------------------------------------
945 Newark, New Jersey, Health Care Facility Revenue
Refunding Bonds (New Community Urban Renewal),
Series A, 5.20% due 6/01/2030 (f)(i) 988
- --------------------------------------------------------------------------------
5,750 Newark, New Jersey, Housing Authority, Port
Authority -- Port Newark Marine Terminal, Additional
Rent-Backed Revenue Refunding Bonds (City of Newark
Redevelopment Projects), 4.375% due 1/01/2037 (j) 5,529
- --------------------------------------------------------------------------------
5,000 North Hudson Sewer Authority, New Jersey, Sewer
Revenue Refunding Bonds, Series A, 5.41%
due 8/01/2021 (j)(r) 2,682
- --------------------------------------------------------------------------------
1,475 Northern Burlington County Regional School District,
New Jersey, GO, Refunding, 4.25% due 3/01/2030 (j) 1,415
- --------------------------------------------------------------------------------
400 Old Bridge Township, New Jersey, Board of Education,
GO, 5% due 7/15/2011 (j)(o) 418
- --------------------------------------------------------------------------------
1,250 Perth Amboy, New Jersey, GO (Convertible CABS),
Refunding, 4.50% due 7/01/2035 (h)(r) 1,009
- --------------------------------------------------------------------------------
Port Authority of New York and New Jersey,
Consolidated Revenue Bonds:
1,000 85th Series, 5.20% due 9/01/2018 1,074
1,000 93rd Series, 6.125% due 6/01/2094 1,164
- --------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds (JFK International Air
Terminal LLC), AMT, Series 6 (j):
7,000 6.25% due 12/01/2009 7,363
1,750 6.25% due 12/01/2011 1,905
2,000 5.75% due 12/01/2022 2,050
- --------------------------------------------------------------------------------
200 Port Authority of New York and New Jersey, Special
Obligation Revenue Refunding Bonds (Versatile
Structure Obligation), VRDN, Series 3, 3.64%
due 6/01/2020 (p) 200
- --------------------------------------------------------------------------------
605 Salem County, New Jersey, Improvement Authority
Revenue Bonds (Finlaw State Office Building Project),
5.375% due 8/15/2028 (h) 660
- --------------------------------------------------------------------------------
1,500 South Jersey Port Corporation of New Jersey, Revenue
Refunding Bonds, AMT, 5.20% due 1/01/2023 1,532
- --------------------------------------------------------------------------------
1,145 Summit, New Jersey, GO, Refunding, 5.25%
due 6/01/2014 1,242
- --------------------------------------------------------------------------------
1,445 Tobacco Settlement Financing Corporation of New
Jersey, Asset-Backed Revenue Bonds, 7%
due 6/01/2013 (o) 1,673
- --------------------------------------------------------------------------------
4,000 Tobacco Settlement Financing Corporation of New
Jersey, Revenue Refunding Bonds, Series 1A, 5%
due 6/01/2041 3,683
- --------------------------------------------------------------------------------
ANNUAL REPORTS JULY 31, 2007 31
Schedule of Investments (continued)
BlackRock New Jersey Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
New Jersey (concluded)
- --------------------------------------------------------------------------------
$ 500 Union County, New Jersey, Improvement Authority,
Lease Revenue Bonds (Madison Redevelopment
Project), 5% due 3/01/2025 (h) $ 517
- --------------------------------------------------------------------------------
2,000 Union County, New Jersey, Utilities Authority, Senior
Lease Revenue Refunding Bonds (Ogden Martin System
of Union, Inc.), AMT, Series A, 5.50% due 6/01/2010 (b) 2,082
- --------------------------------------------------------------------------------
250 University of Medicine and Dentistry of New Jersey,
COP, 5% due 4/15/2022 (b) 259
- --------------------------------------------------------------------------------
University of Medicine and Dentistry of New Jersey,
Revenue Bonds, Series A (b):
250 5.125% due 12/01/2022 261
1,030 5.50% due 12/01/2027 1,095
1,500 5% due 12/01/2031 1,549
- --------------------------------------------------------------------------------
================================================================================
Guam -- 0.6%
- --------------------------------------------------------------------------------
Commonwealth of the Northern Mariana Islands,
Guam, GO, Series A:
600 6.75% due 10/01/2013 (o) 691
150 6.75% due 10/01/2033 164
- --------------------------------------------------------------------------------
1,000 Guam Government Waterworks Authority, Water and
Wastewater System, Revenue Refunding Bonds,
5.875% due 7/01/2035 1,057
- --------------------------------------------------------------------------------
================================================================================
Puerto Rico -- 10.5%
- --------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation
Revenue Bonds (o):
3,000 Series B, 6% due 7/01/2010 3,206
1,000 Series D, 5.375% due 7/01/2012 1,069
660 Series K, 5% due 7/01/2015 709
- --------------------------------------------------------------------------------
6,000 Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax Revenue Bonds, Series A, 5%
due 1/01/2008 (b)(o) 6,092
- --------------------------------------------------------------------------------
Puerto Rico Commonwealth, Public Improvement, GO:
5,000 5.50% due 7/01/2019 (h) 5,614
500 5.25% due 7/01/2030 525
- --------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, Power
Revenue Bonds:
1,170 Series HH, 5.25% due 7/01/2010 (h)(o) 1,229
4,000 Series TT, 5% due 7/01/2032 4,107
- --------------------------------------------------------------------------------
1,345 Puerto Rico Industrial, Medical and Environmental
Pollution Control Facilities Financing Authority, Special
Facilities Revenue Bonds (American Airlines Inc.),
Series A, 6.45% due 12/01/2025 1,366
- --------------------------------------------------------------------------------
1,250 Puerto Rico Municipal Finance Agency, GO, Series A,
5% due 8/01/2021 (h) 1,317
- --------------------------------------------------------------------------------
3,740 Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Revenue Bonds, Series E, 5.50%
due 2/01/2012 (o) 3,995
- --------------------------------------------------------------------------------
1,200 Puerto Rico Sales Tax Financing Corporation, Sales Tax
Revenue Refunding Bonds, Series A, 5.25%
due 8/01/2057 1,257
- --------------------------------------------------------------------------------
================================================================================
U.S. Virgin Islands -- 0.8%
- --------------------------------------------------------------------------------
1,400 Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT, 6.50%
due 7/01/2021 1,502
- --------------------------------------------------------------------------------
750 Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
5.875% due 7/01/2022 786
- --------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $258,239) -- 91.5% 266,769
================================================================================
Municipal Bonds Held in Trust (q)
================================================================================
New Jersey -- 7.2%
- --------------------------------------------------------------------------------
15,000 Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds, 5.75% due 1/01/2026 (h) 15,595
- --------------------------------------------------------------------------------
5,540 New Jersey State Housing and Mortgage Financing
Agency, M/F Revenue Bonds, AMT, Series A, 4.85%
due 11/01/2030 (e) 5,390
- --------------------------------------------------------------------------------
================================================================================
Puerto Rico -- 3.7%
- --------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Obligation Refunding Bonds, Series A:
1,600 5.375% due 10/01/2016 1,689
2,000 5.50% due 10/01/2017 2,116
2,000 5.50% due 10/01/2018 2,116
2,600 5.50% due 10/01/2019 2,740
1,000 5.50% due 10/01/2020 1,054
1,000 5.375% due 10/01/2024 1,050
- --------------------------------------------------------------------------------
Total Municipal Bonds Held in Trust
(Cost -- $31,242) -- 10.9% 31,750
================================================================================
Corporate Bonds
================================================================================
Multi-State -- 4.0%
- --------------------------------------------------------------------------------
Charter Mac Equity Issuer Trust (s):
1,000 6.625% due 6/30/2049 1,037
4,000 7.60% due 11/30/2050 4,329
- --------------------------------------------------------------------------------
Munimae TE Bond Subsidiary LLC (s):
4,000 6.875% due 6/30/2049 4,165
2,000 7.75% due 6/30/2050 2,169
- --------------------------------------------------------------------------------
Total Corporate Bonds
(Cost -- $10,989) -- 4.0% 11,700
================================================================================
Shares
Held Short-Term Securities
================================================================================
2,879 CMA New Jersey Municipal Money Fund,
2.99% (m)(n) 2,879
- --------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $2,879) -- 1.0% 2,879
================================================================================
Total Investments (Cost -- $303,349*) -- 107.4% 313,098
Liabilities in Excess of Other Assets -- (0.3%) (961)
Liability for Trust Certificates, Including
Interest Expense Payable -- (7.1%) (20,569)
--------
Net Assets -- 100.0% $291,568
========
32 ANNUAL REPORTS JULY 31, 2007
Schedule of Investments (concluded)
BlackRock New Jersey Municipal Bond Fund (in Thousands)
* The cost and unrealized appreciation (depreciation) of investments as of
July 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ....................................... $ 282,269
=========
Gross unrealized appreciation ........................ $ 12,781
Gross unrealized depreciation ........................ (2,370)
---------
Net unrealized appreciation .......................... $ 10,411
=========
(a) ACA Insured.
(b) AMBAC Insured.
(c) Assured Guaranty Insured.
(d) Connie Lee Insured.
(e) FGIC Insured.
(f) FHA Insured.
(g) FNMA Collateralized.
(h) FSA Insured.
(i) GNMA Collateralized.
(j) MBIA Insured.
(k) Radian Insured.
(l) Escrowed to maturity.
(m) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
----------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
----------------------------------------------------------------------
CMA New Jersey Municipal Money Fund 1,627 $126
----------------------------------------------------------------------
(n) Represents the current yield as of July 31, 2007.
(o) Prerefunded.
(p) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(q) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1(c)
to Financial Statements for details of municipal bonds held in trust.
(r) Represents a zero coupon bond; the interest rate shown reflects the
effective yield at the time of purchase.
(s) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
See Notes to Financial Statements.
ANNUAL REPORTS JULY 31, 2007 33
Schedule of Investments as of July 31, 2007
BlackRock Pennsylvania Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Pennsylvania -- 72.8%
- --------------------------------------------------------------------------------
Allegheny County, Pennsylvania, GO, Refunding,
Series C-57 (f):
$10,355 5.25% due 11/01/2014 $ 11,211
11,880 5% due 11/01/2016 12,600
5,875 5% due 11/01/2021 6,155
- --------------------------------------------------------------------------------
Allegheny County, Pennsylvania, Hospital Development
Authority, Health Center Revenue Bonds (University of
Pittsburgh Medical Center Health System):
3,120 Series A, 5.375% due 11/15/2040 3,055
7,000 Series B, 6% due 7/01/2025 (j) 8,272
- --------------------------------------------------------------------------------
3,975 Allegheny County, Pennsylvania, IDA, Commercial
Development Revenue Refunding Bonds (MPB Associates
Project), 7.70% due 12/01/2013 (h) 4,430
- --------------------------------------------------------------------------------
Allegheny County, Pennsylvania, IDA, Environmental
Improvement Revenue Refunding Bonds:
1,000 5.50% due 11/01/2016 1,051
1,500 (USX Corporation), 6.10% due 7/15/2020 1,532
- --------------------------------------------------------------------------------
1,000 Allegheny County, Pennsylvania, IDA, Lease Revenue
Refunding Bonds (Residential Resources Inc. Project),
5.125% due 9/01/2031 1,002
- --------------------------------------------------------------------------------
1,000 Allegheny County, Pennsylvania, Redevelopment
Authority, Tax Increment Revenue Bonds (Waterfront
Project), Series A, 6.30% due 12/15/2010 (k) 1,077
- --------------------------------------------------------------------------------
260 Allegheny County, Pennsylvania, Residential Finance
Authority, S/F Mortgage Revenue Bonds, AMT, Series TT,
5% due 5/01/2035 (g) 257
- --------------------------------------------------------------------------------
6,685 Berks County, Pennsylvania, GO, 5.375%
due 11/15/2028 (b) 6,792
- --------------------------------------------------------------------------------
1,000 Bradford County, Pennsylvania, IDA, Solid Waste
Disposal Revenue Refunding Bonds (International
Paper Company Project), AMT, Series B, 5.20%
due 12/01/2019 1,006
- --------------------------------------------------------------------------------
770 Bucks County, Pennsylvania, IDA, Retirement Community
Revenue Bonds (Ann's Choice Inc.), Series A, 5.90%
due 1/01/2027 782
- --------------------------------------------------------------------------------
1,000 Bucks County, Pennsylvania, IDA, Revenue Refunding
Bonds (Pennswood Village Project), Series A, 6%
due 10/01/2012 (k) 1,101
- --------------------------------------------------------------------------------
500 Chester County, Pennsylvania, Health and Education
Facilities Authority, Revenue Refunding Bonds (Devereux
Foundation), 5% due 11/01/2031 500
- --------------------------------------------------------------------------------
13,085 Coatesville, Pennsylvania, School District, GO, 5%
due 8/01/2025 (h) 13,769
- --------------------------------------------------------------------------------
9,215 Commonwealth Financing Authority, Pennsylvania,
Revenue Bonds, Series A, 5% due 6/01/2025 (h) 9,650
- --------------------------------------------------------------------------------
1,785 Dauphin County, Pennsylvania, General Authority,
Health System Revenue Refunding Bonds (Pinnacle
Health System), 5.50% due 5/15/2017 (j) 1,805
- --------------------------------------------------------------------------------
1,000 Dauphin County, Pennsylvania, General Authority,
Hospital Revenue Refunding Bonds (Hapsco Group --
Western Pennsylvania Hospital Project), Series B,
6.25% due 7/01/2016 (e)(j) 1,098
- --------------------------------------------------------------------------------
6,795 Delaware County, Pennsylvania, Authority Revenue
Bonds (Haverford College), 5.75% due 11/15/2025 7,215
- --------------------------------------------------------------------------------
3,735 Delaware County, Pennsylvania, Health Facilities
Authority Revenue Bonds (Mercy Health Corporation
Project), 5.75% due 12/15/2020 (e) 3,915
- --------------------------------------------------------------------------------
1,000 Delaware County, Pennsylvania, Hospital Authority
Revenue Bonds (Crozer-Chester Medical Center),
6.25% due 12/15/2011 (k) 1,107
- --------------------------------------------------------------------------------
6,000 Delaware County, Pennsylvania, Hospital Authority
Revenue Refunding Bonds (Crozer-Chester Medical
Center), 5% due 12/15/2031 5,884
- --------------------------------------------------------------------------------
3,400 Delaware County, Pennsylvania, IDA, Water Facility
Revenue Bonds (Philadelphia Suburban Water), 6%
due 6/01/2029 (f) 3,539
- --------------------------------------------------------------------------------
Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds (h):
8,000 5.75% due 1/01/2016 8,344
8,930 (Port District Project), Series B, 5.70%
due 1/01/2022 9,274
- --------------------------------------------------------------------------------
1,000 Delaware Valley Regional Finance Authority,
Pennsylvania, Local Government Revenue Bonds,
5.75% due 7/01/2032 1,161
- --------------------------------------------------------------------------------
10,000 Delaware Valley Regional Finance Authority,
Pennsylvania, Local Government Revenue Refunding
Bonds, Series A, 5.50% due 6/01/2037 11,488
- --------------------------------------------------------------------------------
5,030 Erie County, Pennsylvania, Hospital Authority Revenue
Bonds (Hamot Health Foundation), 5%
due 11/01/2037 (c) 5,180
- --------------------------------------------------------------------------------
500 Fulton County, Pennsylvania, IDA, Hospital Revenue
Bonds (Fulton County Medical Center Project),
5.90% due 7/01/2040 509
- --------------------------------------------------------------------------------
500 Harrisburg, Pennsylvania, Authority, School Revenue
Refunding Bonds (The School District of Harrisburg
Project), VRDN, 3.61% due 12/01/2027 (b)(m) 500
- --------------------------------------------------------------------------------
Lancaster County, Pennsylvania, Hospital Authority
Revenue Bonds (Lancaster General Hospital Project):
1,000 5.50% due 9/15/2013 (k) 1,086
4,600 Series A, 5% due 3/15/2036 4,624
- --------------------------------------------------------------------------------
Lancaster County, Pennsylvania, Hospital Authority
Revenue Bonds (Masonic Homes Project):
1,550 5% due 11/01/2026 1,564
3,000 5% due 11/01/2031 3,004
3,695 5% due 11/01/2036 3,678
- --------------------------------------------------------------------------------
1,000 Lebanon County, Pennsylvania, Health Facilities
Authority, Health Center Revenue Bonds (Pleasant
View Retirement Project), Series A, 5.30%
due 12/15/2026 1,000
- --------------------------------------------------------------------------------
2,250 Lehigh County, Pennsylvania, General Purpose Authority,
Hospital Revenue Refunding Bonds (Saint Lukes Hospital
of Bethlehem), 5.375% due 8/15/2013 (k) 2,412
- --------------------------------------------------------------------------------
1,895 Lehigh County, Pennsylvania, General Purpose Authority,
Revenue Refunding Bonds (Kids Peace Corporation),
5.70% due 11/01/2009 (a) 1,931
- --------------------------------------------------------------------------------
9,580 Lower Merion, Pennsylvania, School District, GO,
5% due 9/01/2032 10,028
- --------------------------------------------------------------------------------
6,480 Lycoming County, Pennsylvania, Hospital Authority,
Revenue Refunding Bonds (Divine Providence Hospital),
5.375% due 11/15/2010 (d) 6,505
- --------------------------------------------------------------------------------
6,000 McKeesport, Pennsylvania, Area School District, GO,
Refunding, Series A, 5% due 10/01/2024 (h) 6,278
- --------------------------------------------------------------------------------
34 ANNUAL REPORTS JULY 31, 2007
Schedule of Investments (continued)
BlackRock Pennsylvania Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Pennsylvania (continued)
- --------------------------------------------------------------------------------
Mifflin County, Pennsylvania, Hospital Authority,
Revenue Refunding Bonds (Lewiston Hospital) (k)(l):
$ 1,000 6.20% due 1/01/2011 $ 1,083
2,550 6.40% due 1/01/2011 2,779
- --------------------------------------------------------------------------------
2,300 Mifflin County, Pennsylvania, School District, GO,
7.50% due 9/01/2022 (q) 2,919
- --------------------------------------------------------------------------------
4,140 Monroe County, Pennsylvania, Hospital Authority
Revenue Refunding Bonds (Pocono Medical Center),
5.125% due 1/01/2037 4,087
- --------------------------------------------------------------------------------
9,000 Montgomery County, Pennsylvania, Higher Education
and Health Authority, Revenue Refunding Bonds (Holy
Redeemer Health System Project), Series A, 5.25%
due 10/01/2027 (b) 9,105
- --------------------------------------------------------------------------------
1,000 Montgomery County, Pennsylvania, IDA, Revenue
Refunding Bonds (Foulkeways at Gwynedd Project),
Series A, 5% due 12/01/2024 996
- --------------------------------------------------------------------------------
5,000 Northampton County, Pennsylvania, General Purpose
Authority, Higher Education Revenue Refunding Bonds
(Lehigh University), 4.50% due 11/15/2036 (j) 4,834
- --------------------------------------------------------------------------------
2,500 Northumberland County, Pennsylvania, IDA, Water
Facilities Revenue Refunding Bonds (Aqua Pennsylvania
Inc. Project), AMT, 5.05% due 10/01/2039 (f) 2,542
- --------------------------------------------------------------------------------
1,000 Pennsbury, Pennsylvania, School District, GO, Refunding,
5.50% due 7/15/2012 (f)(k) 1,074
- --------------------------------------------------------------------------------
1,000 Pennsylvania Convention Center Authority Revenue
Bonds, Series A, 6.70% due 9/01/2016 (e)(f) 1,140
- --------------------------------------------------------------------------------
300 Pennsylvania Economic Development Financing
Authority, Solid Waste Disposal Revenue Bonds (Waste
Management Inc. Project), AMT, Series A, 5.10%
due 10/01/2027 294
- --------------------------------------------------------------------------------
Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT:
13,155 Series 63A, 5.50% due 4/01/2030 (s) 3,680
1,045 Series 66A, 5.65% due 4/01/2029 1,059
2,000 Series 73A, 5.45% due 10/01/2032 2,063
600 Series 92-A, 4.75% due 4/01/2031 576
6,700 Series 97A, 4.65% due 10/01/2031 6,298
- --------------------------------------------------------------------------------
Pennsylvania State Department of General Services,
COP, Refunding (h):
2,745 5% due 5/01/2014 2,860
2,815 5% due 11/01/2014 2,933
2,890 5.25% due 5/01/2015 3,039
2,965 5.25% due 11/01/2015 3,118
1,885 5.25% due 5/01/2016 1,982
- --------------------------------------------------------------------------------
Pennsylvania State, GO, Refunding, Third Series
5.375% due 7/01/2016:
15,000 5.375% due 7/01/2016 (j) 16,545
3,000 5.375% due 7/01/2017 (h) 3,322
- --------------------------------------------------------------------------------
15,395 Pennsylvania State, GO, Second Series, 5.50%
due 1/01/2014 16,772
- --------------------------------------------------------------------------------
5,000 Pennsylvania State Higher Education Assistance
Agency, Capital Acquisition Revenue Bonds,
5.875% due 12/15/2010 (j)(k) 5,324
- --------------------------------------------------------------------------------
Pennsylvania State Higher Educational Facilities
Authority Revenue Bonds:
3,140 5% due 6/15/2025 (j) 3,302
3,300 5% due 6/15/2026 (j) 3,460
3,465 5% due 6/15/2027 (j) 3,627
155 (Lafayette College Project), 6% due 5/01/2030 163
- --------------------------------------------------------------------------------
500 Pennsylvania State Higher Educational Facilities
Authority, Revenue Refunding Bonds (Widener
University), 5.375% due 7/15/2029 515
- --------------------------------------------------------------------------------
8,000 Pennsylvania State IDA, EDR, Refunding, 5.50%
due 7/01/2016 (b) 8,617
- --------------------------------------------------------------------------------
9,000 Pennsylvania State Public School Building Authority,
Revenue Refunding Bonds (The School District of
Philadelphia Project), Series B, 5% due 6/01/2024 (h) 9,430
- --------------------------------------------------------------------------------
1,980 Pennsylvania State Turnpike Commission, Oil Franchise
Tax Revenue Refunding Bonds, Sub-Series B, 5%
due 12/01/2023 (b) 2,082
- --------------------------------------------------------------------------------
5,000 Pennsylvania State Turnpike Commission, Turnpike
Revenue Refunding Bonds, Series T, 5.50%
due 12/01/2013 (f) 5,457
- --------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Authority for IDR (American
College of Physicians):
6,370 5.50% due 6/15/2020 6,548
8,315 5.50% due 6/15/2025 8,554
- --------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Authority for Industrial
Development, Industrial and Commercial Revenue
Bonds (Girard Estate Coal Mining Project) (e):
3,945 5.375% due 11/15/2012 3,950
1,650 5.50% due 11/15/2016 1,652
- --------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Authority for Industrial
Development, Senior Living Revenue Bonds:
500 (Rieder House Project), Series A, 6.10%
due 7/01/2033 523
500 (Saligman House Project), Series C, 6.10%
due 7/01/2033 523
- --------------------------------------------------------------------------------
980 Philadelphia, Pennsylvania, GO, Series B, 5.90%
due 11/15/2009 (f) 982
- --------------------------------------------------------------------------------
1,835 Philadelphia, Pennsylvania, Gas Works Revenue Bonds,
12th Series B, 7% due 5/15/2020 (e)(j) 2,156
- --------------------------------------------------------------------------------
4,000 Philadelphia, Pennsylvania, Gas Works Revenue
Refunding Bonds, 1998 General Ordinance, 7th Series,
5% due 10/01/2037 (b) 4,129
- --------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Hospitals and Higher
Education Facilities Authority, Hospital Revenue
Refunding Bonds:
3,000 (Presbyterian Medical Center), 6.65%
due 12/01/2019 (e) 3,540
6,000 (Temple University Health System), Series A,
5.50% due 7/01/2030 6,119
- --------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Parking Authority, Airport
Parking Revenue Bonds:
1,390 5.625% due 9/01/2013 (h) 1,445
5,900 5.40% due 9/01/2015 (b) 5,965
4,495 5.625% due 9/01/2017 (h) 4,680
4,430 5.625% due 9/01/2018 (h) 4,617
- --------------------------------------------------------------------------------
415 Philadelphia, Pennsylvania, Qualified Redevelopment
Authority Revenue Bonds, AMT, Series B, 5%
due 4/15/2027 (f) 425
- --------------------------------------------------------------------------------
1,845 Pocono Mountain School District, Pennsylvania, GO,
Series C, 5% due 9/01/2034 (h) 1,922
- --------------------------------------------------------------------------------
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare System),
Series A:
1,080 5.875% due 12/01/2011 (k) 1,174
320 5.875% due 12/01/2031 336
- --------------------------------------------------------------------------------
ANNUAL REPORTS JULY 31, 2007 35
Schedule of Investments (continued)
BlackRock Pennsylvania Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Pennsylvania (concluded)
- --------------------------------------------------------------------------------
$ 4,000 South Fork Municipal Authority, Pennsylvania, Hospital
Revenue Refunding Bonds (Good Samaritan Medical
Center), Series B, 5.375% due 7/01/2016 (j) $ 4,044
- --------------------------------------------------------------------------------
315 Southcentral General Authority, Pennsylvania, Revenue
Refunding Bonds (Wellspan Health Obligated),
5.625% due 5/15/2026 (e) 335
- --------------------------------------------------------------------------------
6,340 Washington County, Pennsylvania, Capital Funding
Authority Revenue Bonds (Capital Projects and
Equipment Program), 6.15% due 12/01/2029 (b) 6,764
- --------------------------------------------------------------------------------
2,500 Washington County, Pennsylvania, IDA, PCR (West
Penn Power), Refunding, Series G, 6.05%
due 4/01/2014 (b) 2,504
- --------------------------------------------------------------------------------
1,200 Washington County, Pennsylvania, Redevelopment
Authority, Tax Allocation Revenue Bonds (Victory Centre
Project-Tanger), Series A, 5.45% due 7/01/2035 1,210
- --------------------------------------------------------------------------------
West Chester, Pennsylvania, Area School District, GO,
Series A (h):
3,785 5% due 5/15/2016 4,037
3,885 5% due 5/15/2017 4,134
7,715 5% due 5/15/2018 8,165
7,550 5% due 5/15/2022 7,909
- --------------------------------------------------------------------------------
1,800 Wilkes-Barre, Pennsylvania, Financing Authority,
Revenue Refunding Bonds (Wilkes University Project),
5% due 3/01/2037 1,781
- --------------------------------------------------------------------------------
================================================================================
Guam -- 0.3%
- --------------------------------------------------------------------------------
500 Commonwealth of the Northern Mariana Islands, Guam,
GO, Series A, 6.75% due 10/01/2013 (k) 576
- --------------------------------------------------------------------------------
1,000 Guam Government Waterworks Authority, Water and
Wastewater System, Revenue Refunding Bonds,
6% due 7/01/2025 1,078
- --------------------------------------------------------------------------------
================================================================================
Puerto Rico -- 13.3%
- --------------------------------------------------------------------------------
1,220 Children's Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds, 5.375%
due 5/15/2033 1,236
- --------------------------------------------------------------------------------
Puerto Rico Commonwealth, GO, Refunding:
10,000 5.50% due 7/01/2012 (f)(k) 10,760
2,000 RITR, Class R, Series 3, 7.503%
due 7/01/2016 (j)(n) 2,213
- --------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue Bonds,
Series G:
1,315 5% due 7/01/2013 (k) 1,396
685 5% due 7/01/2033 697
- --------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds, Series M:
6,300 5% due 7/01/2037 6,458
4,835 5% due 7/01/2046 4,913
- --------------------------------------------------------------------------------
7,700 Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax Revenue Bonds, Series B, 5%
due 7/01/2041 7,815
- --------------------------------------------------------------------------------
Puerto Rico Commonwealth, Public Improvement, GO,
Refunding, Series A (j):
11,830 5.50% due 7/01/2016 13,168
7,500 5.50% due 7/01/2020 8,456
- --------------------------------------------------------------------------------
5,260 Puerto Rico Commonwealth, Public Improvement, GO,
Series A, 5% due 7/01/2034 5,352
- --------------------------------------------------------------------------------
750 Puerto Rico Ports Authority, Special Facilities Revenue
Bonds (American Airlines), AMT, Series A, 6.25%
due 6/01/2026 751
- --------------------------------------------------------------------------------
2,940 Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series D,
5.375% due 7/01/2033 3,055
- --------------------------------------------------------------------------------
9,340 Puerto Rico Public Finance Corporation, Commonwealth
Appropriation Revenue Bonds, Series E, 5.50%
due 2/01/2012 (k) 9,976
- --------------------------------------------------------------------------------
1,390 Puerto Rico Sales Tax Financing Corporation, Sales Tax
Revenue Refunding Bonds, Series A, 5.25%
due 8/01/2057 1,456
- --------------------------------------------------------------------------------
================================================================================
U.S. Virgin Islands -- 0.5%
- --------------------------------------------------------------------------------
1,000 Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT,
6.50% due 7/01/2021 1,073
- --------------------------------------------------------------------------------
500 Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
6.125% due 7/01/2022 540
- --------------------------------------------------------------------------------
1,000 Virgin Islands Water and Power Authority, Electric
System Revenue Bonds, Series A, 5% due 7/01/2031 999
- --------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $494,156) -- 86.9% 506,539
================================================================================
Municipal Bonds Held in Trust (r)
================================================================================
Pennsylvania -- 13.8%
- --------------------------------------------------------------------------------
40,000 Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds, 5.75% due 1/01/2022 (h) 41,596
- --------------------------------------------------------------------------------
20,010 Delaware Valley Regional Finance Authority, Pennsylvania,
Local Government Revenue Bonds, 5.75%
due 7/01/2032 23,237
- --------------------------------------------------------------------------------
3,000 Luzerne County, Pennsylvania, IDA, Water Facility
Revenue Refunding Bonds (Pennsylvania American
Water Company Project), AMT, Series A, 5.10%
due 9/01/2034 (b) 3,069
- --------------------------------------------------------------------------------
5,000 Pennsylvania State Public School Building Authority,
School Lease Revenue Bonds (The School District
of Philadelphia Project), 5.25% due 6/01/2013 (h) 5,355
- --------------------------------------------------------------------------------
Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds, Series A:
5,000 5.25% due 12/01/2019 (j) 5,451
1,600 5.50% due 12/01/2031 (b) 1,733
- --------------------------------------------------------------------------------
================================================================================
Puerto Rico -- 1.9%
- --------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Obligation Refunding Bonds, Series A:
1,600 5.375% due 10/01/2016 1,689
2,000 5.50% due 10/01/2017 2,116
2,000 5.50% due 10/01/2018 2,116
2,760 5.50% due 10/01/2019 2,910
1,000 5.50% due 10/01/2020 1,054
1,000 5.375% due 10/01/2024 1,050
- --------------------------------------------------------------------------------
Total Municipal Bonds Held in Trust
(Cost -- $90,551) -- 15.7% 91,376
================================================================================
36 ANNUAL REPORTS JULY 31, 2007
Schedule of Investments (concluded)
BlackRock Pennsylvania Municipal Bond Fund (in Thousands)
Face
Amount Municipal Bonds Value
================================================================================
Multi-State -- 8.9%
- --------------------------------------------------------------------------------
Charter Mac Equity Issuer Trust (o):
$25,000 6.625% due 6/30/2049 $ 25,927
10,000 7.60% due 11/30/2050 10,823
- --------------------------------------------------------------------------------
Munimae TE Bond Subsidiary LLC (o):
4,000 6.875% due 6/30/2049 4,165
10,000 7.75% due 6/30/2050 10,846
- --------------------------------------------------------------------------------
Total Corporate Bonds
(Cost -- $48,196) -- 8.9% 51,761
================================================================================
Shares Value
Held Short-Term Securities
================================================================================
16,731 CMA Pennsylvania Municipal Money Fund,
3.03% (i)(p) $ 16,731
- --------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $16,731) -- 2.8% 16,731
================================================================================
Total Investments (Cost -- $649,634*) -- 114.3% 666,407
Liabilities in Excess of Other Assets -- (4.2%) (24,732)
Liability for Trust Certificates, Including Interest
Expense Payable -- (10.1%) (58,701)
--------
Net Assets -- 100.0% $582,974
========
* The cost and unrealized appreciation (depreciation) of investments as of
July 31, 2007, as computed for federal income tax purposes, were as
follows:
Aggregate cost ....................................... $ 590,912
=========
Gross unrealized appreciation ........................ $ 20,698
Gross unrealized depreciation ........................ (3,613)
---------
Net unrealized appreciation .......................... $ 17,085
=========
(a) ACA Insured.
(b) AMBAC Insured.
(c) CIFG Insured.
(d) Connie Lee Insured.
(e) Escrowed to maturity.
(f) FGIC Insured.
(g) FNMA/GNMA Collateralized.
(h) FSA Insured.
(i) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net Dividend
Affiliate Activity Income
--------------------------------------------------------------------------
CMA Pennsylvania Municipal Money Fund 15,480 $231
--------------------------------------------------------------------------
(j) MBIA Insured.
(k) Prerefunded.
(l) Radian Insured.
(m) Security may have a maturity of more than one year at time of issuance,
but has variable rate and demand features that qualify it as a short-term
security. The rate disclosed is that currently in effect. This rate
changes periodically based upon prevailing market rates.
(n) The rate disclosed is that currently in effect. This rate changes
periodically and inversely based upon prevailing market rates.
(o) The security may be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act of 1933.
(p) Represents the current yield as of July 31, 2007.
(q) XL Capital Insured.
(r) Securities represent underlying bonds transferred to a separate
securitization trust established in a tender option bond transaction in
which the Fund may have acquired the residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1(c)
to Financial Statements for details of municipal bonds held in trust.
(s) Represents a zero coupon bond; the interest rate shown reflects the
effective at the time of purchase.
o Forward interest rate swaps outstanding as of July 31, 2007 were as
follows:
- ------------------------------------------------------------------------------------
Unrealized
Notional Appreciation
Amount (Depreciation)
- ------------------------------------------------------------------------------------
Pay a fixed rate of 5.524% and receive a floating rate
based on 1-week Bond Market Association Rate
Broker, JPMorgan Chase
Expires September 2017 $ 2,000 $ (10)
Pay a fixed rate of 4.031% and receive a floating rate
based on 1-week Bond Market Association Rate
Broker, JPMorgan Chase
Expires September 2017 $10,000 (95)
Pay a fixed rate of 4.002% and receive a floating rate
based on 1-week Bond Market Association Rate
Broker, JPMorgan Chase
Expires October 2017 $ 8,500 (58)
Pay a fixed rate of 4.064% and receive a floating rate
based on 1-week Bond Market Association Rate
Broker, JPMorgan Chase
Expires October 2017 $20,000 (234)
Pay a fixed rate of 4.033% and receive a floating rate
based on 1-week Bond Market Association Rate
Broker, Morgan Stanley Capital Services, Inc.
Expires October 2017 $10,000 (95)
Pay a fixed rate of 3.968% and receive a floating rate
based on Bond Market Association Rate
Broker, Citibank N.A.
Expires November 2017 $ 3,000 (14)
Pay a fixed rate of 3.899% and receive a floating rate
based on 1-week Bond Market Association Rate
Broker, JPMorgan Chase
Expires August 2019 $ 3,000 21
Pay a fixed rate of 4.304% and receive a floating rate
based on 1-week Bond Market Association Rate
Broker, Citibank N.A.
Expires September 2027 $10,000 (162)
- ------------------------------------------------------------------------------------
Total $(647)
=====
See Notes to Financial Statements.
ANNUAL REPORTS JULY 31, 2007 37
Statements of Assets and Liabilities
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
As of July 31, 2007 Bond Fund Bond Fund Bond Fund
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments in unaffiliated securities, at value* .......... $ 118,614,323 $ 310,219,772 $ 649,675,824
Investments in affiliated securities, at value** ........... 3,066,740 2,878,637 16,731,352
Cash ....................................................... -- 199,866 609,437
Unrealized appreciation on forward interest rate swaps ..... -- -- 20,886
Receivables:
Interest ............................................... 1,402,287 2,859,727 5,914,782
Securities sold ........................................ 30,000 -- 2,023,334
Beneficial interest sold ............................... 122,844 182,080 464,993
Swaps .................................................. -- -- 59,000
Dividends from affiliates .............................. 7,913 -- --
Prepaid expenses and other assets .......................... 5,477 13,129 17,041
-------------------------------------------------
Total assets ............................................... 123,249,584 316,353,211 675,516,649
-------------------------------------------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Bank overdraft ............................................. 2,135 -- --
Unrealized depreciation on forward interest rate swaps ..... -- -- 667,454
Trust certificates ......................................... 10,437,500 20,418,050 58,410,000
Payables:
Securities purchased ................................... 2,071,140 2,830,610 29,781,602
Dividends to shareholders .............................. 365,583 944,563 2,088,810
Beneficial interest redeemed ........................... 148,735 188,792 842,712
Interest expense ....................................... 65,808 151,135 291,085
Investment adviser ..................................... 51,459 112,267 252,408
Distributor ............................................ 21,375 42,869 30,279
Other affiliates ....................................... 9,065 18,778 24,296
Accrued expenses and other liabilities ..................... 44,843 77,856 154,335
-------------------------------------------------
Total liabilities .......................................... 13,217,643 24,784,920 92,542,981
-------------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets ................................................. $ 110,031,941 $ 291,568,291 $ 582,973,668
=================================================
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Undistributed investment income -- net ..................... $ 349,798 $ 866,260 $ 688,365
Accumulated realized capital losses -- net ................. (5,204,719) (14,185,881) (32,832,499)
Unrealized appreciation -- net ............................. 3,655,638 9,748,892 16,126,809
-------------------------------------------------
Total accumulated losses -- net ............................ (1,199,283) (3,570,729) (16,017,325)
-------------------------------------------------
Institutional Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................... 208,763 1,637,755 4,370,695
Service Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................... -- 121,498 29,792
Investor A Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................... 31,832 148,232 249,378
Investor A1 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................... 506,134 373,440 250,700
Investor B Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................... 165,739 81,512 46,770
Investor B1 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................... -- 148,629 115,531
Investor C Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................... 13,831 68,596 37,355
Investor C1 Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized .................... 150,590 176,322 137,722
Paid-in capital in excess of par ........................... 110,154,335 292,383,036 593,753,050
-------------------------------------------------
Net assets ................................................. $ 110,031,941 $ 291,568,291 $ 582,973,668
=================================================
38 ANNUAL REPORTS JULY 31, 2007
Statements of Assets and Liabilities (concluded)
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
As of July 31, 2007 Bond Fund Bond Fund Bond Fund
==================================================================================================================================
Net Asset Value
- ----------------------------------------------------------------------------------------------------------------------------------
Institutional:
Net assets .............................................. $ 21,356,786 $173,234,448 $486,395,259
================================================
Shares of beneficial interest outstanding ............... 2,087,628 16,377,551 43,706,954
================================================
Net asset value ......................................... $ 10.23 $ 10.58 $ 11.13
================================================
Service:
Net assets .............................................. -- $ 12,849,230 $ 3,316,223
================================================
Shares of beneficial interest outstanding ............... -- 1,214,977 297,915
================================================
Net asset value ......................................... -- $ 10.58 $ 11.13
================================================
Investor A:
Net assets .............................................. $ 3,248,414 $ 15,692,644 $ 27,781,847
================================================
Shares of beneficial interest outstanding ............... 318,323 1,482,322 2,493,779
================================================
Net asset value ......................................... $ 10.20 $ 10.59 $ 11.14
================================================
Investor A1:
Net assets .............................................. $ 51,684,915 $ 39,545,521 $ 27,931,044
================================================
Shares of beneficial interest outstanding ............... 5,061,342 3,734,397 2,507,001
================================================
Net asset value ......................................... $ 10.21 $ 10.59 $ 11.14
================================================
Investor B:
Net assets .............................................. $ 16,954,507 $ 8,621,608 $ 5,205,851
================================================
Shares of beneficial interest outstanding ............... 1,657,391 815,120 467,698
================================================
Net asset value ......................................... $ 10.23 $ 10.58 $ 11.13
================================================
Investor B1:
Net assets .............................................. -- $ 15,723,166 $ 12,855,916
================================================
Shares of beneficial interest outstanding ............... -- 1,486,287 1,155,309
================================================
Net asset value ......................................... -- $ 10.58 $ 11.13
================================================
Investor C:
Net assets .............................................. $ 1,410,693 $ 7,253,498 $ 4,160,393
================================================
Shares of beneficial interest outstanding ............... 138,309 685,961 373,553
================================================
Net asset value ......................................... $ 10.20 $ 10.57 $ 11.14
================================================
Investor C1:
Net assets .............................................. $ 15,376,626 $ 18,648,176 $ 15,327,135
================================================
Shares of beneficial interest outstanding ............... 1,505,898 1,763,223 1,377,224
================================================
Net asset value ......................................... $ 10.21 $ 10.58 $ 11.13
================================================
* Identified cost for unaffiliated securities ........... $114,524,757 $300,470,880 $632,902,447
================================================
** Identified cost for affiliated securities ............. $ 3,500,668 $ 2,878,637 $ 16,731,352
================================================
See Notes to Financial Statements.
ANNUAL REPORTS JULY 31, 2007 39
Statements of Operations
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
For the Year Ended July 31, 2007 Bond Fund Bond Fund Bond Fund
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest ................................................... $ 6,556,166 $ 14,010,368 $ 26,995,111
Dividends from affiliates .................................. 95,096 126,307 230,607
-------------------------------------------------
Total income ............................................... 6,651,262 14,136,675 27,225,718
-------------------------------------------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory fees ................................... 647,349 1,401,820 2,670,321
Interest expense and fees .................................. 374,802 871,823 2,191,053
Accounting services ........................................ 74,558 111,953 168,867
Service and distribution fees -- Investor C1 ............... 104,953 118,393 95,699
Professional fees .......................................... 78,943 77,632 76,948
Service and distribution fees -- Investor B ................ 104,538 75,545 49,549
Printing and shareholder reports ........................... 49,425 68,812 73,879
Service and distribution fees -- Investor B1 ............... -- 93,223 78,850
Service fees -- Investor A1 ................................ 54,414 40,705 27,781
Service fees -- Investor A ................................. 4,566 23,568 54,304
Registration fees .......................................... 23,368 20,960 29,550
Custodian fees ............................................. 10,098 18,119 40,179
Service and distribution fees -- Investor C ................ 5,114 37,316 21,073
Transfer agent fees -- Institutional ....................... 10,210 15,836 31,745
Pricing fees ............................................... 11,206 22,779 21,868
Transfer agent fees -- Investor A1 ......................... 20,907 19,232 13,945
Trustees' fees and expenses ................................ 14,202 16,565 20,722
Service fees -- Service .................................... -- 26,706 6,932
Transfer agent fees -- Investor C1 ......................... 6,477 6,737 6,454
Transfer agent fees -- Investor B1 ......................... -- 9,646 9,055
Transfer agent fees -- Investor B .......................... 8,578 4,843 5,234
Transfer agent fees -- Investor A .......................... 724 4,007 13,224
Transfer agent fees -- Service ............................. -- 10,270 1,273
Transfer agent fees -- Investor C .......................... 343 2,022 1,537
Other ...................................................... 24,486 26,939 27,066
-------------------------------------------------
Total expenses before waiver and/or reimbursement .......... 1,629,261 3,125,451 5,737,108
Waiver and/or reimbursement of expenses .................... (23) (263,622) (243,078)
-------------------------------------------------
Total expenses after waiver and/or reimbursement ........... 1,629,238 2,861,829 5,494,030
-------------------------------------------------
Investment income -- net ................................... 5,022,024 11,274,846 21,731,688
-------------------------------------------------
===================================================================================================================================
Realized & Unrealized Gain (Loss) -- Net
- -----------------------------------------------------------------------------------------------------------------------------------
Realized gain (loss) on:
Investments -- net ..................................... 1,036,895 386,649 6,289,888
Swaps -- net ........................................... (122,874) -- 1,196,093
-------------------------------------------------
Total realized gain -- net ................................. 914,021 386,649 7,485,981
-------------------------------------------------
Change in unrealized appreciation/depreciation on:
Investments -- net ..................................... (1,531,419) (5,192,639) (15,790,877)
Swaps -- net ........................................... -- -- (590,057)
-------------------------------------------------
Total change in unrealized appreciation/depreciation -- net (1,531,419) (5,192,639) (16,380,934)
-------------------------------------------------
Total realized and unrealized loss -- net .................. (617,398) (4,805,990) (8,894,953)
-------------------------------------------------
Net Increase in Net Assets Resulting from Operations ....... $ 4,404,626 $ 6,468,856 $ 12,836,735
=================================================
See Notes to Financial Statements.
40 ANNUAL REPORTS JULY 31, 2007
Statements of Changes in Net Assets BlackRock Florida Municipal Bond Fund
For the Year Ended
July 31,
-------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ........................................................... $ 5,022,024 $ 5,414,484
Realized gain (loss) -- net ........................................................ 914,021 (283,326)
Change in unrealized appreciation/depreciation -- net .............................. (1,531,419) (2,051,210)
-------------------------------
Net increase in net assets resulting from operations ............................... 4,404,626 3,079,948
-------------------------------
===================================================================================================================================
Dividends to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net:
Institutional .................................................................. (968,556) (1,004,021)
Investor A ..................................................................... (73,647) --
Investor A1 .................................................................... (2,290,947) (2,586,269)
Investor B ..................................................................... (796,933) (1,185,478)
Investor C ..................................................................... (16,531) --
Investor C1 .................................................................... (649,197) (638,716)
-------------------------------
Net decrease in net assets resulting from dividends to shareholders ................ (4,795,811) (5,414,484)
-------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets derived from beneficial interest transactions ........... (15,475,630) (3,569,331)
-------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets ....................................................... (15,866,815) (5,903,867)
Beginning of year .................................................................. 125,898,756 131,802,623
-------------------------------
End of year* ....................................................................... $ 110,031,941 $ 125,898,756
===============================
* Undistributed investment income -- net ....................................... $ 349,798 $ 123,585
===============================
See Notes to Financial Statements.
ANNUAL REPORTS JULY 31, 2007 41
Statements of Changes in Net Assets BlackRock New Jersey Municipal Bond Fund
For the Year Ended
July 31,
-------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ............................................................ $ 11,274,846 $ 4,241,248
Realized gain -- net ................................................................ 386,649 729,694
Change in unrealized appreciation/depreciation -- net ............................... (5,192,639) (1,489,053)
-------------------------------
Net increase in net assets resulting from operations ................................ 6,468,856 3,481,889
-------------------------------
===================================================================================================================================
Dividends & Distributions to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net:
Institutional ................................................................... (6,280,908) (1,215,782)
Service ......................................................................... (438,542) --
Investor A ...................................................................... (387,416) --
Investor A1 ..................................................................... (1,713,234) (1,482,198)
Investor B ...................................................................... (253,977) --
Investor B1 ..................................................................... (710,416) (875,086)
Investor C ...................................................................... (125,242) --
Investor C1 ..................................................................... (731,637) (622,496)
Realized gain -- net:
Institutional ................................................................... -- (9,352)
Investor A1 ..................................................................... -- (12,456)
Investor B1 ..................................................................... -- (8,754)
Investor C1 ..................................................................... -- (6,080)
-------------------------------
Net decrease in net assets resulting from dividends and distributions to shareholders (10,641,372) (4,232,204)
-------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from beneficial interest transactions ............ 181,194,576 12,420,544
-------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets ........................................................ 177,022,060 11,670,229
Beginning of year ................................................................... 114,546,231 102,876,002
-------------------------------
End of year* ........................................................................ $ 291,568,291 $ 114,546,231
===============================
* Undistributed investment income -- net ........................................ $ 866,260 $ 231,672
===============================
See Notes to Financial Statements.
42 ANNUAL REPORTS JULY 31, 2007
Statements of Changes in Net Assets BlackRock Pennsylvania Municipal Bond Fund
For the Year Ended
July 31,
-------------------------------
Increase (Decrease) in Net Assets: 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net ........................................................... $ 21,731,688 $ 2,999,712
Realized gain -- net ............................................................... 7,485,981 333,738
Change in unrealized appreciation/depreciation -- net .............................. (16,380,934) (1,698,932)
-------------------------------
Net increase in net assets resulting from operations ............................... 12,836,735 1,634,518
-------------------------------
===================================================================================================================================
Dividends to Shareholders
- -----------------------------------------------------------------------------------------------------------------------------------
Investment income -- net:
Institutional .................................................................. (17,510,802) (458,664)
Service ........................................................................ (115,809) --
Investor A ..................................................................... (905,101) --
Investor A1 .................................................................... (1,190,963) (1,147,819)
Investor B ..................................................................... (172,868) --
Investor B1 .................................................................... (613,015) (831,770)
Investor C ..................................................................... (71,891) --
Investor C1 .................................................................... (603,987) (555,476)
-------------------------------
Net decrease in net assets resulting from dividends to shareholders ................ (21,184,436) (2,993,729)
-------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from beneficial interest transactions ........... 518,881,095 244,580
-------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ............................................ 510,533,394 (1,114,631)
Beginning of year .................................................................. 72,440,274 73,554,905
-------------------------------
End of year* ....................................................................... $ 582,973,668 $ 72,440,274
===============================
* Undistributed investment income -- net ....................................... $ 688,365 $ 73,316
===============================
See Notes to Financial Statements.
ANNUAL REPORTS JULY 31, 2007 43
Financial Highlights
BlackRock Florida Municipal Bond Fund
----------------------------------------------------------------
Institutional
----------------------------------------------------------------
For the Year Ended July 31,
The following per share data and ratios have been derived ----------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ............................ $ 10.28 $ 10.47 $ 10.15 $ 10.06 $ 10.20
----------------------------------------------------------------
Investment income -- net** .................................... .47 .46 .49 .53 .53
Realized and unrealized gain (loss) -- net .................... (.08) (.23) .32 .09 (.14)
----------------------------------------------------------------
Total from investment operations .............................. .39 .23 .81 .62 .39
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................................. (.44) (.42) (.49) (.53) (.53)
Realized gain -- net ...................................... -- -- -- -- --
----------------------------------------------------------------
Total dividends and distributions ............................. (.44) (.42) (.49) (.53) (.53)
----------------------------------------------------------------
Net asset value, end of year .................................. $ 10.23 $ 10.28 $ 10.47 $ 10.15 $ 10.06
================================================================
===================================================================================================================================
Total Investment Return*
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ............................ 3.88% 2.60% 8.19% 6.24% 3.87%
================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and
excluding interest expense and fees ......................... .84% .78% .79% .78% .77%
================================================================
Expenses, net of waiver and/or reimbursement .................. 1.16% 1.02% 1.04% .89% .93%
================================================================
Expenses ...................................................... 1.16% 1.02% 1.04% .89% .93%
================================================================
Investment income -- net ...................................... 4.49% 4.40% 4.78% 5.15% 5.18%
================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ........................ $ 21,357 $ 23,603 $ 20,647 $ 19,681 $ 22,053
================================================================
Portfolio turnover ............................................ 22% 45% 49% 28% 41%
================================================================
* Total investment returns exclude the effect of any sales charges.
** Based on average shares outstanding.
@ Amount is less than $(.01) per share.
See Notes to Financial Statements.
44 ANNUAL REPORTS JULY 31, 2007
Financial Highlights (continued)
BlackRock New Jersey Municipal Bond Fund
----------------------------------------------------------------
Institutional
----------------------------------------------------------------
For the Year Ended July 31,
The following per share data and ratios have been derived ----------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ............................ $ 10.64 $ 10.73 $ 10.24 $ 10.21 $ 10.43
----------------------------------------------------------------
Investment income -- net** .................................... .51 .45 .48 .52 .50
Realized and unrealized gain (loss) -- net .................... (.11) (.09) .48 .02 (.21)
----------------------------------------------------------------
Total from investment operations .............................. .40 .36 .96 .54 .29
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................................. (.46) (.45) (.47) (.51) (.51)
Realized gain -- net ...................................... -- --@ -- -- --
----------------------------------------------------------------
Total dividends and distributions ............................. (.46) (.45) (.47) (.51) (.51)
----------------------------------------------------------------
Net asset value, end of year .................................. $ 10.58 $ 10.64 $ 10.73 $ 10.24 $ 10.21
================================================================
===================================================================================================================================
Total Investment Return*
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ............................ 3.80% 3.46% 9.60% 5.35% 2.75%
================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and
excluding interest expense and fees ......................... .61% .81% .83% .81% .83%
================================================================
Expenses, net of waiver and/or reimbursement .................. .95% .93% 1.03% .97% 1.03%
================================================================
Expenses ...................................................... 1.04% .93% 1.04% .98% 1.03%
================================================================
Investment income -- net ...................................... 4.60% 4.26% 4.54% 4.93% 4.88%
================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ........................ $173,234 $ 33,316 $ 25,325 $ 15,166 $ 23,582
================================================================
Portfolio turnover ............................................ 15% 16% 48% 27% 34%
================================================================
BlackRock Pennsylvania Municipal Bond Fund
----------------------------------------------------------------
Institutional
----------------------------------------------------------------
For the Year Ended July 31,
The following per share data and ratios have been derived ----------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ............................ $ 11.18 $ 11.39 $ 11.12 $ 11.03 $ 11.16
----------------------------------------------------------------
Investment income -- net** .................................... .52 .50 .51 .52 .54
Realized and unrealized gain (loss) -- net .................... (.08) (.21) .27 .08 (.13)
----------------------------------------------------------------
Total from investment operations .............................. .44 .29 .78 .60 .41
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................................. (.49) (.50) (.51) (.51) (.54)
Realized gain -- net ...................................... -- -- -- -- --
----------------------------------------------------------------
Total dividends and distributions ............................. (.49) (.50) (.51) (.51) (.54)
----------------------------------------------------------------
Net asset value, end of year .................................. $ 11.13 $ 11.18 $ 11.39 $ 11.12 $ 11.03
================================================================
===================================================================================================================================
Total Investment Return*
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ............................ 4.01% 2.59% 7.17% 5.57% 3.69%
================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and
excluding interest expense and fees ......................... .60% .88% .91% .88% .88%
================================================================
Expenses, net of waiver and/or reimbursement .................. 1.05% 1.22% 1.13% .96% 1.00%
================================================================
Expenses ...................................................... 1.09% 1.23% 1.14% .98% 1.01%
================================================================
Investment income -- net ...................................... 4.51% 4.44% 4.55% 4.60% 4.81%
================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ........................ $486,395 $ 11,410 $ 9,939 $ 10,536 $ 11,296
================================================================
Portfolio turnover ............................................ 46% 23% 32% 58% 30%
================================================================
ANNUAL REPORTS JULY 31, 2007 45
Financial Highlights (continued)
BlackRock BlackRock
New Jersey Pennsylvania
Municipal Municipal
Bond Fund Bond Fund
----------------------------
Service
----------------------------
The following per share data and ratios have been derived For the Period Oct. 2, 2006+
from information provided in the financial statements. to July 31, 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ..................................................... $ 10.84 $ 11.35
----------------------------
Investment income -- net** ............................................................... .37 .38
Realized and unrealized loss -- net ...................................................... (.26) (.21)
----------------------------
Total from investment operations ......................................................... .11 .17
----------------------------
Less dividends from investment income -- net ............................................. (.37) (.39)
----------------------------
Net asset value, end of period ........................................................... $ 10.58 $ 11.13
----------------------------
===================================================================================================================================
Total Investment Return
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ....................................................... .96%@ 1.48%@
============================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and excluding interest expense and fees ..... .85%* .84%*
============================
Expenses, net of waiver and/or reimbursement ............................................. 1.19%* 1.29%*
============================
Expenses ................................................................................. 1.37%* 1.37%*
============================
Investment income -- net ................................................................. 4.36%* 4.27%*
============================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ................................................. $ 12,849 $ 3,316
============================
Portfolio turnover ....................................................................... 15% 46%
============================
* Annualized.
** Based on average shares outstanding.
+ Commencement of operations.
@ Aggregate total investment return.
See Notes to Financial Statements.
46 ANNUAL REPORTS JULY 31, 2007
Financial Highlights (continued)
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
----------------------------------------
Investor A
----------------------------------------
The following per share data and ratios have been derived For the Period October 2, 2006+
from information provided in the financial statements. to July 31, 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...................................... $ 10.40 $ 10.85 $ 11.36
----------------------------------------
Investment income -- net*** ............................................... .33 .36 .38
Realized and unrealized loss -- net ....................................... (.18) (.25) (.21)
----------------------------------------
Total from investment operations .......................................... .15 .11 .17
----------------------------------------
Less dividends from investment income -- net .............................. (.35) (.37) (.39)
----------------------------------------
Net asset value, end of period ............................................ $ 10.20 $ 10.59 $ 11.14
========================================
===================================================================================================================================
Total Investment Return**
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ........................................ 1.42%@ .97%@ 1.49%@
========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and excluding
interest expense and fees ............................................... 1.10%* .85%* .83%*
========================================
Expenses, net of waiver and/or reimbursement .............................. 1.42%* 1.19%* 1.28%*
========================================
Expenses .................................................................. 1.42%* 1.32%* 1.39%*
========================================
Investment income -- net .................................................. 4.25%* 4.37%* 4.28%*
========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .................................. $ 3,248 $ 15,693 $ 27,782
========================================
Portfolio turnover ........................................................ 22% 15% 46%
========================================
* Annualized.
** Total investment returns exclude the effect of sales changes.
*** Based on average shares outstanding.
+ Commencement of operations.
@ Aggregate total investment return.
See Notes to Financial Statements.
ANNUAL REPORTS JULY 31, 2007 47
Financial Highlights (continued)
BlackRock Florida Municipal Bond Fund
-----------------------------------------------------------------
Investor A1
-----------------------------------------------------------------
For the Year Ended July 31,
The following per share data and ratios have been derived -----------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ........................... $ 10.26 $ 10.45 $ 10.14 $ 10.04 $ 10.19
-----------------------------------------------------------------
Investment income -- net** ................................... .45 .45 .48 .52 .52
Realized and unrealized gain (loss) -- net ................... (.06) (.20) .31 .10 (.15)
-----------------------------------------------------------------
Total from investment operations ............................. .39 .25 .79 .62 .37
-----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ................................. (.44) (.44) (.48) (.52) (.52)
Realized gain -- net ..................................... -- -- -- -- --
-----------------------------------------------------------------
Total dividends and distributions ............................ (.44) (.44) (.48) (.52) (.52)
-----------------------------------------------------------------
Net asset value, end of year ................................. $ 10.21 $ 10.26 $ 10.45 $ 10.14 $ 10.04
=================================================================
===================================================================================================================================
Total Investment Return*
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ........................... 3.78% 2.49% 7.98% 6.24% 3.66%
=================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and
excluding interest expense and fees ........................ .93% .88% .89% .87% .88%
=================================================================
Expenses, net of waiver and/or reimbursement ................. 1.25% 1.12% 1.14% .99% 1.03%
=================================================================
Expenses ..................................................... 1.25% 1.12% 1.14% .99% 1.03%
=================================================================
Investment income -- net ..................................... 4.42% 4.30% 4.68% 5.05% 5.08%
=================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ....................... $ 51,685 $ 59,210 $ 59,586 $ 57,521 $ 57,610
=================================================================
Portfolio turnover ........................................... 22% 45% 49% 28% 41%
=================================================================
* Total investment returns exclude the effect of sales charges.
** Based on average shares outstanding.
@ Amount is less than $(.01) per share.
See Notes to Financial Statements.
48 ANNUAL REPORTS JULY 31, 2007
Financial Highlights (continued)
BlackRock New Jersey Municipal Bond Fund
----------------------------------------------------------------
Investor A1
----------------------------------------------------------------
The following per share data and ratios have been derived For the Year Ended July 31,
The following per share data and ratios have been derived ----------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ............................ $ 10.66 $ 10.73 $ 10.24 $ 10.22 $ 10.43
----------------------------------------------------------------
Investment income -- net** .................................... .48 .44 .47 .51 .50
Realized and unrealized gain (loss) -- net .................... (.10) (.07) .48 .01 (.21)
----------------------------------------------------------------
Total from investment operations .............................. .38 .37 .95 .52 .29
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................................. (.45) (.44) (.46) (.50) (.50)
Realized gain -- net ...................................... -- --@ -- -- --
----------------------------------------------------------------
Total dividends and distributions ............................. (.45) (.44) (.46) (.50) (.50)
----------------------------------------------------------------
Net asset value, end of year .................................. $ 10.59 $ 10.66 $ 10.73 $ 10.24 $ 10.22
================================================================
===================================================================================================================================
Total Investment Return*
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ............................ 3.60% 3.55% 9.49% 5.14% 2.76%
================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and
excluding interest expense and fees ......................... .74% .91% .93% .91% .93%
================================================================
Expenses, net of waiver and/or reimbursement .................. 1.08% 1.03% 1.13% 1.08% 1.13%
================================================================
Expenses ...................................................... 1.19% 1.03% 1.14% 1.08% 1.13%
================================================================
Investment income -- net ...................................... 4.46% 4.16% 4.45% 4.85% 4.79%
================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ........................ $ 39,546 $ 40,676 $ 34,618 $ 32,863 $ 27,868
================================================================
Portfolio turnover ............................................ 15% 16% 48% 27% 34%
================================================================
BlackRock Pennsylvania Municipal Bond Fund
----------------------------------------------------------------
Investor A1
----------------------------------------------------------------
For the Year Ended July 31,
The following per share data and ratios have been derived ----------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ............................ $ 11.20 $ 11.41 $ 11.13 $ 11.05 $ 11.17
----------------------------------------------------------------
Investment income -- net** .................................... .50 .49 .50 .51 .53
Realized and unrealized gain (loss) -- net .................... (.07) (.26) .28 .08 (.12)
----------------------------------------------------------------
Total from investment operations .............................. .43 .23 .78 .59 .41
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................................. (.49) (.44) (.50) (.51) (.53)
Realized gain -- net ...................................... -- -- -- -- --
----------------------------------------------------------------
Total dividends and distributions ............................. (.49) (.44) (.50) (.51) (.53)
----------------------------------------------------------------
Net asset value, end of year .................................. $ 11.14 $ 11.20 $ 11.41 $ 11.13 $ 11.05
================================================================
===================================================================================================================================
Total Investment Return*
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ............................ 3.81% 2.49% 7.16% 5.37% 3.69%
================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and
excluding interest expense and fees ......................... .76% .98% 1.01% .98% .98%
================================================================
Expenses, net of waiver and/or reimbursement .................. 1.21% 1.32% 1.23% 1.06% 1.10%
================================================================
Expenses ...................................................... 1.28% 1.33% 1.24% 1.08% 1.11%
================================================================
Investment income -- net ...................................... 4.40% 4.34% 4.45% 4.50% 4.69%
================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ........................ $ 27,931 $ 26,987 $ 26,024 $ 25,432 $ 23,460
================================================================
Portfolio turnover ............................................ 46% 23% 32% 58% 30%
================================================================
ANNUAL REPORTS JULY 31, 2007 49
Financial Highlights (continued)
BlackRock Florida Municipal Bond Fund
----------------------------------------------------------------
Investor B
----------------------------------------------------------------
For the Year Ended July 31,
The following per share data and ratios have been derived ----------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ....................... $ 10.28 $ 10.47 $ 10.15 $ 10.06 $ 10.20
----------------------------------------------------------------
Investment income -- net** ............................... .41 .40 .44 .48 .48
Realized and unrealized gain (loss) -- net ............... (.07) (.19) .32 .09 (.14)
----------------------------------------------------------------
Total from investment operations ......................... .34 .21 .76 .57 .34
----------------------------------------------------------------
Less dividends from investment income -- net ............. (.39) (.40) (.44) (.48) (.48)
----------------------------------------------------------------
Net asset value, end of year ............................. $ 10.23 $ 10.28 $ 10.47 $ 10.15 $ 10.06
================================================================
===================================================================================================================================
Total Investment Return*
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ....................... 3.36% 2.08% 7.65% 5.70% 3.35%
================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and excluding
interest expense and fees .............................. 1.33% 1.29% 1.30% 1.28% 1.28%
================================================================
Expenses, net of waiver and/or reimbursement ............. 1.65% 1.52% 1.55% 1.40% 1.43%
================================================================
Expenses ................................................. 1.65% 1.52% 1.55% 1.40% 1.44%
================================================================
Investment income -- net ................................. 4.00% 3.90% 4.29% 4.64% 4.67%
================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ................... $ 16,955 $ 25,614 $ 35,340 $ 41,705 $ 61,098
================================================================
Portfolio turnover ....................................... 22% 45% 49% 28% 41%
================================================================
* Total investment returns exclude the effect of sales charges.
** Based on average shares outstanding.
See Notes to Financial Statements.
50 ANNUAL REPORTS JULY 31, 2007
Financial Highlights (continued)
BlackRock BlackRock
New Jersey Pennsylvania
Municipal Municipal
Bond Fund Bond Fund
-------------------------------
Investor B
-------------------------------
The following per share data and ratios have been derived For the Period Oct. 2, 2006+
from information provided in the financial statements. to July 31, 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............................................... $ 10.84 $ 11.35
-------------------------------
Investment income -- net*** ........................................................ .31 .33
Realized and unrealized loss -- net ................................................ (.27) (.22)
-------------------------------
Total from investment operations ................................................... .04 .11
-------------------------------
Less dividends from investment income -- net ....................................... (.30) (.33)
-------------------------------
Net asset value, end of period ..................................................... $ 10.58 $ 11.13
===============================
===================================================================================================================================
Total Investment Return**
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ................................................. .34%@ .93%@
===============================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and excluding interest expense and fees 1.60%* 1.51%*
===============================
Expenses, net of waiver and/or reimbursement ....................................... 1.94%* 1.96%*
===============================
Expenses ........................................................................... 2.09%* 2.19%*
===============================
Investment income -- net ........................................................... 3.61%* 3.60%*
===============================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) ........................................... $ 8,622 $ 5,206
===============================
Portfolio turnover ................................................................. 15% 46%
===============================
* Annualized.
** Total investment returns exclude the effect of sales charges.
*** Based on average shares outstanding.
+ Commencement of operations.
@ Aggregate total investment return.
See Notes to Financial Statements.
ANNUAL REPORTS JULY 31, 2007 51
Financial Highlights (continued)
BlackRock New Jersey Municipal Bond Fund
----------------------------------------------------------------
Investor B1
The following per share data ----------------------------------------------------------------
and ratios have been derived For the Year Ended July 31,
from information provided in ----------------------------------------------------------------
the financial statements. 2007 2006 2005 2004 2003
================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 10.65 $ 10.73 $ 10.24 $ 10.22 $ 10.43
----------------------------------------------------------------
Investment income -- net** ................. .44 .40 .43 .46 .46
Realized and unrealized gain (loss) -- net . (.10) (.09) .48 .02 (.22)
----------------------------------------------------------------
Total from investment operations ........... .34 .31 .91 .48 .24
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ............... (.41) (.39) (.42) (.46) (.45)
Realized gain -- net ................... -- --+ -- -- --
----------------------------------------------------------------
Total dividends and distributions .......... (.41) (.39) (.42) (.46) (.45)
----------------------------------------------------------------
Net asset value, end of year ............... $ 10.58 $ 10.65 $ 10.73 $ 10.24 $ 10.22
================================================================
================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 3.19% 3.03% 9.04% 4.71% 2.34%
================================================================
================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement
and excluding interest expense and fees .. 1.14% 1.33% 1.34% 1.32% 1.34%
================================================================
Expenses, net of waiver
and/or reimbursement ..................... 1.48% 1.44% 1.54% 1.48% 1.54%
================================================================
Expenses ................................... 1.60% 1.44% 1.55% 1.49% 1.54%
================================================================
Investment income -- net ................... 4.05% 3.75% 4.06% 4.44% 4.37%
================================================================
================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $ 15,723 $ 20,920 $ 26,893 $ 31,781 $ 44,968
================================================================
Portfolio turnover ......................... 15% 16% 48% 27% 34%
================================================================
BlackRock Pennsylvania Municipal Bond Fund
----------------------------------------------------------------
Investor B1
The following per share data ----------------------------------------------------------------
and ratios have been derived For the Year Ended July 31,
from information provided in ----------------------------------------------------------------
the financial statements. 2007 2006 2005 2004 2003
================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ......... $ 11.18 $ 11.39 $ 11.12 $ 11.03 $ 11.16
----------------------------------------------------------------
Investment income -- net** ................. .45 .44 .46 .46 .49
Realized and unrealized gain (loss) -- net . (.06) (.21) .27 .09 (.14)
----------------------------------------------------------------
Total from investment operations ........... .39 .23 .73 .55 .35
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net ............... (.44) (.44) (.46) (.46) (.48)
Realized gain -- net ................... -- -- -- -- --
----------------------------------------------------------------
Total dividends and distributions .......... (.44) (.44) (.46) (.46) (.48)
----------------------------------------------------------------
Net asset value, end of year ............... $ 11.13 $ 11.18 $ 11.39 $ 11.12 $ 11.03
================================================================
================================================================================================================
Total Investment Return*
- ----------------------------------------------------------------------------------------------------------------
Based on net asset value per share ......... 3.49% 2.07% 6.63% 5.04% 3.18%
================================================================
================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement
and excluding interest expense and fees .. 1.17% 1.39% 1.42% 1.38% 1.39%
================================================================
Expenses, net of waiver
and/or reimbursement ..................... 1.62% 1.73% 1.64% 1.47% 1.51%
================================================================
Expenses ................................... 1.70% 1.74% 1.65% 1.48% 1.52%
================================================================
Investment income -- net ................... 4.00% 3.93% 4.05% 4.09% 4.31%
================================================================
================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ..... $ 12,856 $ 18,402 $ 23,965 $ 28,749 $ 43,099
================================================================
Portfolio turnover ......................... 46% 23% 32% 58% 30%
================================================================
* Total investment returns exclude the effect of sales charges.
** Based on average shares outstanding.
+ Amount is less than $(.01) per share.
See Notes to Financial Statements.
52 ANNUAL REPORTS JULY 31, 2007
Financial Highlights (continued)
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
----------------------------------------
Investor C
----------------------------------------
The following per share data and ratios have been derived For the Period October 2, 2006+
from information provided in the financial statements. to July 31, 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...................................... $ 10.40 $ 10.84 $ 11.35
----------------------------------------
Investment income -- net*** ............................................... .26 .30 .30
Realized and unrealized loss -- net ....................................... (.18) (.27) (.19)
----------------------------------------
Total from investment operations .......................................... .08 .03 .11
----------------------------------------
Less dividends from investment income -- net .............................. (.28) (.30) (.32)
----------------------------------------
Net asset value, end of period ............................................ $ 10.20 $ 10.57 $ 11.14
========================================
===================================================================================================================================
Total Investment Return**
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ........................................ .78%@ .25%@ .95%@
========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and excluding
interest expense and fees ............................................... 1.89%* 1.60%* 1.60%*
========================================
Expenses, net of waiver and/or reimbursement .............................. 2.21%* 1.94%* 2.04%*
========================================
Expenses .................................................................. 2.21%* 2.09%* 2.15%*
========================================
Investment income -- net .................................................. 3.47%* 3.63%* 3.53%*
========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) .................................. $ 1,411 $ 7,253 $ 4,160
========================================
Portfolio turnover ........................................................ 22% 15% 46%
========================================
* Annualized.
** Total investment returns exclude the effect of sales charges.
*** Based on average shares outstanding.
+ Commencement of operations.
@ Aggregate total investment return.
See Notes to Financial Statements.
ANNUAL REPORTS JULY 31, 2007 53
Financial Highlights (continued)
BlackRock Florida Municipal Bond Fund
----------------------------------------------------------------
Investor C1
----------------------------------------------------------------
For the Year Ended July 31,
The following per share data and ratios have been derived ----------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ............................ $ 10.26 $ 10.45 $ 10.14 $ 10.04 $ 10.18
----------------------------------------------------------------
Investment income -- net** .................................... .41 .39 .43 .47 .47
Realized and unrealized gain (loss) -- net .................... (.08) (.19) .31 .10 (.14)
----------------------------------------------------------------
Total from investment operations .............................. .33 .20 .74 .57 .33
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................................. (.38) (.39) (.43) (.47) (.47)
Realized gain -- net ...................................... -- -- -- -- --
----------------------------------------------------------------
Total dividends and distributions ............................. (.38) (.39) (.43) (.47) (.47)
----------------------------------------------------------------
Net asset value, end of year .................................. $ 10.21 $ 10.26 $ 10.45 $ 10.14 $ 10.04
================================================================
===================================================================================================================================
Total Investment Return*
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ............................ 3.26% 1.98% 7.44% 5.70% 3.24%
================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and
excluding interest expense and fees ......................... 1.44% 1.39% 1.40% 1.38% 1.38%
================================================================
Expenses, net of waiver and/or reimbursement .................. 1.75% 1.62% 1.65% 1.50% 1.54%
================================================================
Expenses ...................................................... 1.75% 1.62% 1.65% 1.50% 1.54%
================================================================
Investment income -- net ...................................... 3.91% 3.80% 4.17% 4.54% 4.57%
================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ........................ $ 15,377 $ 17,472 $ 16,229 $ 13,381 $ 14,759
================================================================
Portfolio turnover ............................................ 22% 45% 49% 28% 41%
================================================================
* Total investment returns exclude the effect of sales charges.
** Based on average shares outstanding.
@ Amount is less than $(.01) per share.
See Notes to Financial Statements.
54 ANNUAL REPORTS JULY 31, 2007
Financial Highlights (concluded)
BlackRock New Jersey Municipal Bond Fund
----------------------------------------------------------------
Investor C1
----------------------------------------------------------------
For the Year Ended July 31,
The following per share data and ratios have been derived ----------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ............................ $ 10.64 $ 10.73 $ 10.24 $ 10.21 $ 10.42
----------------------------------------------------------------
Investment income -- net** .................................... .43 .39 .41 .45 .45
Realized and unrealized gain (loss) -- net .................... (.09) (.10) .49 .02 (.22)
----------------------------------------------------------------
Total from investment operations .............................. .34 .29 .90 .47 .23
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................................. (.40) (.38) (.41) (.44) (.44)
Realized gain -- net ...................................... -- --@ -- -- --
----------------------------------------------------------------
Total dividends and distributions ............................. (.40) (.38) (.41) (.44) (.44)
----------------------------------------------------------------
Net asset value, end of year .................................. $ 10.58 $ 10.64 $ 10.73 $ 10.24 $ 10.21
================================================================
===================================================================================================================================
Total Investment Return*
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ............................ 3.18% 2.83% 8.94% 4.71% 2.24%
================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and
excluding interest expense and fees ......................... 1.24% 1.42% 1.44% 1.42% 1.44%
================================================================
Expenses, net of waiver and/or reimbursement .................. 1.58% 1.53% 1.64% 1.58% 1.63%
================================================================
Expenses ...................................................... 1.68% 1.54% 1.65% 1.59% 1.64%
================================================================
Investment income -- net ...................................... 3.95% 3.65% 3.94% 4.34% 4.28%
================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ........................ $ 18,648 $ 19,634 $ 16,040 $ 14,903 $ 15,505
================================================================
Portfolio turnover ............................................ 15% 16% 48% 27% 34%
================================================================
BlackRock Pennsylvania Municipal Bond Fund
----------------------------------------------------------------
Investor C1
----------------------------------------------------------------
For the Year Ended July 31,
The following per share data and ratios have been derived ----------------------------------------------------------------
from information provided in the financial statements. 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of year ............................ $ 11.19 $ 11.39 $ 11.12 $ 11.03 $ 11.16
----------------------------------------------------------------
Investment income -- net** .................................... .44 .43 .45 .45 .47
Realized and unrealized gain (loss) -- net .................... (.07) (.20) .26 .09 (.13)
----------------------------------------------------------------
Total from investment operations .............................. .37 .23 .71 .54 .34
----------------------------------------------------------------
Less dividends and distributions:
Investment income -- net .................................. (.43) (.43) (.44) (.45) (.47)
Realized gain -- net ...................................... -- -- -- -- --
----------------------------------------------------------------
Total dividends and distributions ............................. (.43) (.43) (.44) (.45) (.47)
----------------------------------------------------------------
Net asset value, end of year .................................. $ 11.13 $ 11.19 $ 11.39 $ 11.12 $ 11.03
================================================================
===================================================================================================================================
Total Investment Return*
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value per share ............................ 3.29% 2.06% 6.53% 4.93% 3.07%
================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses, net of waiver and/or reimbursement and
excluding interest expense and fees ......................... 1.26% 1.48% 1.52% 1.49% 1.49%
================================================================
Expenses, net of waiver and/or reimbursement .................. 1.71% 1.82% 1.74% 1.57% 1.61%
================================================================
Expenses ...................................................... 1.77% 1.84% 1.75% 1.59% 1.62%
================================================================
Investment income -- net ...................................... 3.90% 3.83% 3.94% 3.99% 4.18%
================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (in thousands) ........................ $ 15,327 $ 15,642 $ 13,626 $ 13,260 $ 13,309
================================================================
Portfolio turnover ............................................ 46% 23% 32% 58% 30%
================================================================
ANNUAL REPORTS JULY 31, 2007 55
Notes to Financial Statements
1. Significant Accounting Policies:
On September 29, 2006, Merrill Lynch Multi-State Municipal Series Trust
(consisting of Merrill Lynch Florida Municipal Bond Fund, Merrill Lynch New
Jersey Municipal Bond Fund and Merrill Lynch Pennsylvania Municipal Bond Fund)
was renamed BlackRock Multi-State Municipal Series Trust (the "Trust"),
consisting of BlackRock Florida Municipal Bond Fund, BlackRock New Jersey
Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund (the "Funds"
or individually as the "Fund"), respectively. The Funds are registered under the
Investment Company Act of 1940, as amended, as non-diversified, open-end
management investment companies. The Funds' financial statements are prepared in
conformity with U.S. generally accepted accounting principles, which may require
the use of management accruals and estimates. Actual results may differ from
these estimates. Each Fund offers multiple classes of shares. Effective October
2, 2006, BlackRock Florida Municipal Bond Fund's Class A, Class B, Class C and
Class I Shares were redesignated Investor A1, Investor B, Investor C1 and
Institutional Shares, respectively. BlackRock New Jersey Municipal Bond Fund's
and BlackRock Pennsylvania Municipal Bond Fund's Class A, Class B, Class C and
Class I Shares were redesignated Investor A1, Investor B1, Investor C1 and
Institutional Shares, respectively. Also effective October 2, 2006, BlackRock
Florida Municipal Bond Fund's Investor A and Investor C Shares commenced
operations. BlackRock New Jersey Municipal Bond Fund's and BlackRock
Pennsylvania Municipal Bond Fund's Service, Investor A, Investor B and Investor
C Shares commenced operations. Institutional and Service Shares are sold only to
certain eligible investors. Investor A and Investor A1 Shares are sold with a
front-end sales charge. Shares of Investor B, Investor B1, Investor C and
Investor C1 may be subject to a contingent deferred sales charge. All classes of
shares have identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that Service, Investor A, Investor A1,
Investor B, Investor B1, Investor C and Investor C1 Shares bear certain expenses
related to the shareholder servicing of such shares, and Investor B, Investor
B1, Investor C and Investor C1 Shares also bear certain expenses related to the
distribution of such shares. Each class has exclusive voting rights with respect
to matters relating to its shareholder servicing and distribution expenditures
(except that Investor B and Investor B1 shareholders may vote on certain changes
to the Investor A distribution plan). Income, expenses (other than expenses
attributable to a specific class) and realized and unrealized gains and losses
are allocated daily to each class based on its relative net assets. The
following is a summary of significant accounting policies followed by the Funds.
(a) Valuation of investments -- Municipal bonds are traded primarily in the
over-the-counter ("OTC") markets and are valued at the last available bid price
in the OTC market or on the basis of values as obtained by a pricing service.
Pricing services use valuation matrixes that incorporate both dealer-supplied
valuations and valuation models. The procedures of the pricing service and its
valuations are reviewed by the officers of the Funds under the general direction
of the Board of Trustees. Such valuations and procedures are reviewed
periodically by the Board of Trustees of the Trust. Financial futures contracts
and options thereon, which are traded on exchanges, are valued at their closing
prices as of the close of such exchanges. Options written or purchased are
valued at the last sale price in the case of exchange-traded options. Options
traded in the OTC market are valued at the last asked price (options written) or
the last bid price (options purchased). Swap agreements are valued by quoted
fair values received daily by the Funds' pricing service. Investments in
open-end investment companies are valued at their net asset value each business
day. Securities and other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or under the
direction of the Board of Trustees of the Trust.
(b) Derivative financial instruments -- Each Fund may engage in various
portfolio investment strategies both to increase their returns and to hedge, or
protect, their exposure to interest rate movements and movements in the
securities markets. Losses may arise due to changes in the value of the contract
due to an unfavorable change in the price of the underlying security or index,
or if the counterparty does not perform under the contract. The counterparty for
certain instruments may pledge cash or securities as collateral.
o Financial futures contracts -- Each Fund may purchase or sell financial
futures contracts and options on such financial futures contracts.
Financial futures contracts are contracts for delayed delivery of
securities at a specific future date and at a specific price or yield.
Upon entering into a contract, the Fund deposits and maintains as
collateral such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the
56 ANNUAL REPORTS JULY 31, 2007
Notes to Financial Statements (continued)
contract, the Fund agrees to receive from or pay to the broker an amount
of cash equal to the daily fluctuation in value of the contract. Such
receipts or payments are known as variation margin and are recorded by the
Fund as unrealized gains or losses. When the contract is closed, the Fund
records a realized gain or loss equal to the difference between the value
of the contract at the time it was opened and the value at the time it was
closed.
o Forward interest rate swaps -- Each Fund may enter into forward interest
rate swaps. In a forward interest rate swap, the Fund and the counterparty
agree to pay or receive interest on a specified notional contract amount,
commencing on a specified future effective date, unless terminated
earlier. When the agreement is closed, the Fund records a realized gain or
loss in an amount equal to the value of the agreement.
o Swaps -- Each Fund may enter into swap agreements, which are OTC contracts
in which the Fund and a counterparty agree to make periodic net payments
on a specified notional amount. The net payments can be made for a set
period of time or may be triggered by a pre-determined credit event. The
net periodic payments may be based on a fixed or variable interest rate;
the change in market value of a specified security, basket of securities,
or index; or the return generated by a security. These periodic payments
received or made by the Fund are recorded in the accompanying Statement of
Operations as realized gains or losses, respectively. Gains or losses are
also realized upon termination of the swap agreements. Swaps are
marked-to-market daily and changes in value are recorded as unrealized
appreciation (depreciation). Risks include changes in the returns of the
underlying instruments, failure of the counterparties to perform under the
contracts' terms and the possible lack of liquidity with respect to the
swap agreements.
(c) Municipal bonds held in trust -- Each Fund invests in leveraged residual
certificates ("TOB Residuals") issued by tender option bond trusts ("TOBs"). A
TOB is established by a third party sponsor forming a special purpose entity,
into which a Fund, or an agent on behalf of the Fund, transfers municipal
securities. A TOB typically issues two classes of beneficial interests:
short-term floating rate certificates, which are sold to third party investors,
and residual certificates, which are generally issued to the Fund which made the
transfer or to affiliates of the Fund. Each Fund's transfers of the municipal
securities to a TOB do not qualify for sale treatment under Statement of
Financial Accounting Standards No. 140 "Accounting for Transfers and Servicing
of Financial Assets and Extinguishments of Liabilities," therefore the municipal
securities deposited into a TOB are presented in the Funds' schedules of
investments and the proceeds from the transactions are reported as a liability
for trust certificates of the Funds. Similarly, proceeds from residual
certificates issued to affiliates, if any, from the transaction are included in
the liability for trust certificates. Interest income from the underlying
security is recorded by the Funds on an accrual basis. Interest expense incurred
on the secured borrowing and other expenses related to remarketing,
administration and trustee services to a TOB are reported as expenses of a Fund.
The floating rate certificates have interest rates that generally reset weekly
and their holders have the option to tender certificates to the TOB for
redemption at par at each reset date. The residual interests held by the Funds
include the right of the Funds (1) to cause the holders of a proportional share
of floating rate certificates to tender their certificates at par, and (2) to
transfer a corresponding share of the municipal securities from the TOB to the
Funds. At July 31, 2007, the aggregate value of the underlying municipal
securities transferred to TOBs and the related liability for trust certificates
were:
- --------------------------------------------------------------------------------
Range of
Interest Underlying
Liability Rates on the Municipal
for Liability of Bonds
Trust Trust Transferred
Certificates Certificates to TOB's
- --------------------------------------------------------------------------------
BlackRock
Florida Municipal
Bond Fund ................... $10,437,500 3.675% - 3.74% $22,331,350
BlackRock
New Jersey
Municipal
Bond Fund ................... $20,418,050 3.652% - 3.686% $31,750,416
BlackRock
Pennsylvania
Municipal
Bond Fund ................... $58,410,000 3.652% - 3.701% $91,376,117
- --------------------------------------------------------------------------------
Financial transactions executed through TOBs generally will underperform the
market for fixed rate municipal bonds in a rising interest rate environment, but
tend to outperform the market for fixed rate bonds when interest rates decline
or remain relatively stable. Should short-term interest rates rise, the Funds'
investments in TOB Residuals likely will adversely affect the Funds' investment
income -- net and distributions to shareholders. Fluctuations in the market
value of municipal securities deposited into the TOB may adversely affect the
Funds' net asset value per share.
While the Fund's investment policies and restrictions expressly permit
investments in inverse floating rate securities such as
ANNUAL REPORTS JULY 31, 2007 57
Notes to Financial Statements (continued)
TOB Residuals, they generally do not allow the Funds to borrow money for
purposes of making investments. The Funds' management believes that the Funds'
restrictions on borrowings do not apply to the secured borrowings deemed to have
occurred for accounting purposes.
(d) Income taxes -- It is each Fund's policy to comply with the requirements of
the Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of its taxable income to its shareholders.
Therefore, no federal income tax provision is required.
(e) Security transactions and investment income -- Security transactions are
recorded on the dates the transactions are entered into (the trade dates).
Realized gains and losses on security transactions are determined on the
identified cost basis. Dividend income is recorded on the ex-dividend dates.
Interest income is recognized on the accrual basis. The Funds amortize all
premiums and discounts on debt securities.
(f) Prepaid registration fees -- Prepaid registration fees are charged to
expense as the related shares are issued.
(g) Dividends and distributions -- Dividends from net investment income are
declared daily and paid monthly. Distributions of capital gains are recorded on
the ex-dividend dates.
(h) Expenses -- Certain expenses have been allocated to the individual funds in
the Trust on a pro rata basis based upon the respective aggregate net asset
value of each fund included in the Trust.
(i) Bank overdraft -- BlackRock Florida Municipal Bond Fund recorded a bank
overdraft which resulted from management estimates of available cash.
(j) Recent accounting pronouncements -- In July 2006, the Financial Accounting
Standards Board ("FASB") issued Interpretation No. 48 ("FIN 48"), "Accounting
for Uncertainty in Income Taxes -- an interpretation of FASB Statement No. 109."
FIN 48 prescribes the minimum recognition threshold a tax position must meet in
connection with accounting for uncertainties in income tax positions taken or
expected to be taken by an entity, including mutual funds, before being measured
and recognized in the financial statements. Adoption of FIN 48 is required for
the last net asset value calculation in the first required financial statement
reporting period for fiscal years beginning after December 15, 2006. The impact
on each of the Funds' financial statements, if any, is currently being assessed.
In September 2006, Statement of Financial Accounting Standards No. 157, "Fair
Value Measurements" ("FAS 157"), was issued and is effective for fiscal years
beginning after November 15, 2007. FAS 157 defines fair value, establishes a
framework for measuring fair value and expands disclosures about fair value
measurements. Management is currently evaluating the implication of FAS 157. At
this time, its impact on the Funds' financial statements has not been
determined.
In addition, in February 2007, Statement of Financial Accounting Standards No.
159, "The Fair Value Option for Financial Assets and Financial Liabilities"
("FAS 159"), was issued and is effective for fiscal years beginning after
November 15, 2007. Early adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provisions of FAS 157. FAS 159 permits entities to choose to
measure many financial instruments and certain other items at fair value that
are not currently required to be measured at fair value. FAS 159 also
establishes presentation and disclosure requirements designed to facilitate
comparisons between entities that choose different measurement attributes for
similar types of assets and liabilities. At this time, management is evaluating
the implications of FAS 159 and its impact on the Fund's financial statements,
if any, has not been determined.
(k) Reclassification -- BlackRock New Jersey Municipal Bond Fund
U.S. generally accepted accounting principles require that certain components of
net assets be adjusted to reflect permanent differences between financial and
tax reporting. Accordingly, during the current year, $480,404 has been
reclassified between paid-in capital in excess of par and accumulated net
realized capital losses as a result of a permanent difference attributable to
the expiration of capital loss carryovers. This reclassification has no effect
on net assets or net asset values per share.
2. Investment Advisory Agreement and Transactions with Affiliates:
On September 29, 2006, BlackRock, Inc. and Merrill Lynch & Co., Inc. ("Merrill
Lynch") combined Merrill Lynch's investment management business, Merrill Lynch
Investment Managers, L.P. ("MLIM"), and its affiliates, including Fund Asset
Management, L.P. ("FAM"), with BlackRock, Inc. to create a new independent
company. Merrill Lynch has a 49.8% economic interest and a 45% voting interest
in the combined company and The PNC Financial Services Group, Inc.
58 ANNUAL REPORTS JULY 31, 2007
Notes to Financial Statements (continued)
("PNC"), has approximately a 34% economic and voting interest. The new company
operates under the BlackRock name and is governed by a board of directors with a
majority of independent members.
On July 31, 2006 (for BlackRock New Jersey Municipal Bond Fund and BlackRock
Pennsylvania Municipal Bond Fund) and August 31, 2006 (for BlackRock Florida
Municipal Bond Fund), shareholders of each Fund approved a new Investment
Advisory Agreement with BlackRock Advisors, Inc., an indirect, wholly owned
subsidiary of BlackRock, Inc. BlackRock Advisors, Inc. was reorganized into a
limited liability company and renamed BlackRock Advisors, LLC (the "Manager").
The new Investment Advisory Agreement between each Fund and the Manager became
effective on September 29, 2006. Prior to September 29, 2006, FAM was the Funds'
manager. The general partner of FAM is an indirect, wholly owned subsidiary of
Merrill Lynch, which is the limited partner. The Funds have also entered into
separate Distribution Agreements and Distribution Plans with FAM Distributors,
Inc. ("FAMD") and BlackRock Distributors, Inc. and its affiliates ("BDI")
(collectively, the "Distributor"). FAMD is a wholly owned subsidiary of Merrill
Lynch Group, Inc., and BDI is an affiliate of BlackRock, Inc.
The Manager is responsible for the management of each Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain other
services necessary to the operation of the Funds. For such services, each Fund
pays a monthly fee based upon the average daily value of the Fund's net assets
at the following annual rates: .55% of the Fund's average daily net assets not
exceeding $500 million; .525% of average daily net assets in excess of $500
million but not exceeding $1 billion; and .50% of average daily net assets in
excess of $1 billion.
Effective October 16, 2006, the Manager, with respect to BlackRock New Jersey
Municipal Bond Fund, contractually agreed to waive or reimburse fees or expenses
in order to limit expenses as a percentage of average daily net assets allocated
to each class (excluding interest expense) as follows: .60% (for Institutional
Shares), .90% (for Service and Investor A Shares), 1.74% (for Investor B Shares)
and 1.75% (for Investor C Shares), until February 1, 2007. In addition to this
contractual waiver, the Manager has voluntarily agreed to waive fees or expenses
in order to limit expenses (excluding interest expense) as follows: .85% (for
Service and Investor A Shares), .70% (for Investor A1 Shares), 1.60% (for
Investor B and Investor C Shares), 1.10% (for Investor B1 Shares) and 1.20% (for
Investor C1 Shares).
In addition, effective October 16, 2006, the Manager, with respect to BlackRock
Pennsylvania Municipal Bond Fund, has contractually agreed to waive or reimburse
fees or expenses in order to limit expenses as a percentage of average daily net
assets allocated to each class (excluding interest expense) as follows: .60%
(for Institutional Shares), .90% (for Service Shares), .96% (for Investor A
Shares) and 1.65% (for Investor B and Investor C Shares), until February 1,
2007. In addition to this contractual waiver, the Manager has voluntarily agreed
to waive or reimburse fees or expenses (excluding interest expense) in order to
limit expenses as follows: .85% (for Service and Investor A Shares), .70% (for
Investor A1 Shares), 1.60% (for Investor B and Investor C Shares), 1.10% (for
Investor B1 Shares) and 1.20% (for Investor C1 Shares). For the year ended July
31, 2007, the fees and waivers were as follows:
- --------------------------------------------------------------------------------
Fees Fees
Earned Waived
- --------------------------------------------------------------------------------
BlackRock New Jersey
Municipal Bond Fund .............................. $1,401,820 $ 245,191
BlackRock Pennsylvania
Municipal Bond Fund .............................. $2,670,321 $ 206,384
- --------------------------------------------------------------------------------
In addition, the Manager has entered into a sub-advisory agreement with
BlackRock Investment Management, LLC ("BIM"), an affiliate of the Manager, under
which the Manager pays BIM for services it provides a monthly fee that is a
percentage of the management fee paid by each Fund to the Manager.
The Manager (and previously FAM) has agreed to reimburse its advisory fee for
each Fund by the amount of advisory fee each Fund pays to the Manager (and
previously FAM) indirectly through each Fund's investment as described below.
For the year ended July 31, 2007, the reimbursements were as follows:
- --------------------------------------------------------------------------------
For the For the
Period Period
Aug. 1, Sept. 29,
2006 to 2006 to
Sept. 29, July 31,
2006 2007
Reimbursed Reimbursed by
Investment by FAM the Manager
- --------------------------------------------------------------------------------
BlackRock Florida CMA Florida
Municipal Bond Municipal Money
Fund ............ Fund $ 4 $ 19
BlackRock New CMA New Jersey
Jersey Municipal Municipal Money
Bond Fund ....... Fund $ 522 $17,909
BlackRock
Pennsylvania CMA Pennsylvania
Municipal Bond Municipal
Fund ............ Money Fund $ 425 $36,269
- --------------------------------------------------------------------------------
ANNUAL REPORTS JULY 31, 2007 59
Notes to Financial Statements (continued)
Pursuant to the Distribution Plans adopted by each Fund in accordance with Rule
12b-1 under the Investment Company Act of 1940, each Fund pays the Distributor
ongoing service and distribution fees. The fees are accrued daily and paid
monthly at annual rates based upon the average daily net assets of the shares as
follows:
- --------------------------------------------------------------------------------
Service Fees
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------
Service ........................ -- .25% .25%
Investor A ..................... .25% .25% .25%
Investor A1 .................... .10% .10% .10%
Investor B ..................... .25% .25% .25%
Investor B1 .................... -- .25% .25%
Investor C ..................... .25% .25% .25%
Investor C1 .................... .25% .25% .25%
- --------------------------------------------------------------------------------
Distribution Fees
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------
Investor B ..................... .25% .75% .75%
Investor B1 .................... -- .25% .25%
Investor C ..................... .75% .75% .75%
Investor C1 .................... .35% .35% .35%
- --------------------------------------------------------------------------------
Pursuant to sub-agreements with each Distributor, broker- dealers, including
Merrill Lynch, Pierce, Fenner & Smith Incorporated ("MLPF&S"), a wholly owned
subsidiary of Merrill Lynch, and each Distributor provide shareholder servicing
and distribution services to each Fund. The ongoing service fee compensates the
Distributor and each broker-dealer (including MLPF&S) for providing shareholder
servicing to Service, Investor A, Investor A1, Investor B, Investor B1, Investor
C and Investor C1 shareholders. The ongoing distribution fee compensates the
Distributor and the broker-dealers for providing shareholder and
distribution-related services to Investor B, Investor B1, Investor C and
Investor C1 shareholders.
For the year ended July 31, 2007, FAMD, the Funds' sole Distributor until
September 29, 2006, and BDI earned underwriting discounts and direct commissions
and MLPF&S and BDI earned dealer concessions on sales of each of the Funds'
Investor A and Investor A1 Shares as follows:
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------
Investor A:
FAMD ..................... $ 2,159 $ 3,130 $ 2,304
MLPF&S ................... $24,905 $29,478 $28,147
BDI ...................... -- $ 1,089 $ 6,191
- --------------------------------------------------------------------------------
Investor A1:
FAMD ..................... $ 23 $ 682 $ 214
MLPF&S ................... $ 385 $5,598 $ 1,650
BDI ...................... -- $3,381 $ 2,892
- --------------------------------------------------------------------------------
For the year ended July 31, 2007, affiliates received contingent deferred sales
charges relating to Investor B, Investor B1, Investor C and Investor C1 Shares
as follows:
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------
Investor B .................. $15,476 $16,108 $ 6,229
Investor B1 ................. -- $ 6,214 $ 8,001
Investor C .................. $ 1 $ 970 $ 902
Investor C1 ................. $ 1,489 $ 737 $ 95
- --------------------------------------------------------------------------------
In addition, affiliates received contingent deferred sales charges relating to
transactions subject to front-end sales charge waivers relating to Investor A
Shares as follows:
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------
Investor A .................. -- $3,258 --
- --------------------------------------------------------------------------------
60 ANNUAL REPORTS JULY 31, 2007
Notes to Financial Statements (continued)
The Manager maintains a call center, which is responsible for providing certain
shareholder services to the Funds, such as responding to shareholder inquiries
and processing transactions based upon instructions from shareholders with
respect to the subscription and redemption of the Funds' shares. During the
period September 29, 2006 to July 31, 2007, the following amounts have been
accrued by the Funds to reimburse the Manager for costs incurred running the
call center, which are a component of the transfer agent fees in the
accompanying Statements of Operations.
- --------------------------------------------------------------------------------
Call Center Fees
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------
Institutional .................. $ 280 $1,080 $3,420
Service ........................ -- $1,250 $ 110
Investor A ..................... $ 40 $ 300 $ 980
Investor A1 .................... $1,070 $ 890 $ 690
Investor B ..................... $ 450 $ 300 $ 270
Investor B1 .................... -- $ 330 $ 450
Investor C ..................... $ 20 $ 60 $ 70
Investor C1 .................... $ 170 $ 290 $ 150
- --------------------------------------------------------------------------------
For the year ended July 31, 2007, each Fund reimbursed FAM and the Manager for
certain accounting services. The reimbursements were as follows:
- --------------------------------------------------------------------------------
For the Period For the Period
Aug. 1, Sept. 29,
2006 to 2006 to
Sept. 29, 2006 July 31, 2007
Reimbursed Reimbursed to
to FAM the Manager
- --------------------------------------------------------------------------------
BlackRock Florida
Municipal Bond Fund ......... $ 531 $1,836
BlackRock New Jersey
Municipal Bond Fund ......... $ 524 $4,697
BlackRock Pennsylvania
Municipal Bond Fund ......... $ 313 $9,481
- --------------------------------------------------------------------------------
Effective September 29, 2006, PFPC Inc., an indirect, wholly owned subsidiary of
PNC and an affiliate of the Manager, became the Funds' transfer agent. Prior to
September 29, 2006, the Funds' transfer agent was Financial Data Services, Inc.
("FDS"), a wholly owned subsidiary of Merrill Lynch.
Prior to September 29, 2006, certain officers and/or trustees of the Trust were
officers and/or directors of FAM, FDS, FAMD, Merrill Lynch, MLIM and/or MLIM,
LLC.
Commencing September 29, 2006, certain officers and/or trustees of the Trust are
officers and/or directors of BlackRock, Inc. or its affiliates.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the
year ended July 31, 2007 were as follows:
- --------------------------------------------------------------------------------
Purchases Sales
- --------------------------------------------------------------------------------
BlackRock Florida Municipal
Bond Fund .............................. $ 28,686,939 $ 39,788,992
BlackRock New Jersey Municipal
Bond Fund .............................. $ 69,013,570 $ 39,668,209
BlackRock Pennsylvania Municipal
Bond Fund .............................. $232,048,164 $240,772,241
- --------------------------------------------------------------------------------
4. Beneficial Interest Transactions:
Net increase (decrease) in net assets derived from beneficial interest
transactions was as follows:
- --------------------------------------------------------------------------------
For the For the
Year Ended Year Ended
July 31, July 31,
2007 2006
- --------------------------------------------------------------------------------
BlackRock Florida Municipal
Bond Fund ............................ $ (15,475,630) $ (3,569,331)
BlackRock New Jersey Municipal
Bond Fund ............................ $ 181,194,576 $ 12,420,544
BlackRock Pennsylvania Municipal
Bond Fund ............................ $ 518,881,095 $ 244,580
- --------------------------------------------------------------------------------
Transactions in shares of beneficial interest for each class were as follows:
- --------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 291,385 $ 3,030,158
Shares issued to shareholders in
reinvestment of dividends .................... 36,193 375,732
---------------------------
Total issued ................................... 327,578 3,405,890
Shares redeemed ................................ (535,478) (5,561,470)
---------------------------
Net decrease ................................... (207,900) $(2,155,580)
===========================
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 795,565 $ 8,233,760
Shares issued to shareholders in
reinvestment of dividends .................... 34,571 357,839
---------------------------
Total issued ................................... 830,136 8,591,599
Shares redeemed ................................ (507,208) (5,255,153)
---------------------------
Net increase ................................... 322,928 $ 3,336,446
===========================
ANNUAL REPORTS JULY 31, 2007 61
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
Investor A Shares for the
Period October 2, 2006+ to Dollar
July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 335,598 $ 3,480,112
Shares issued to shareholders in
reinvestment of dividends .................... 5,488 56,511
---------------------------
Total issued ................................... 341,086 3,536,623
Shares redeemed ................................ (22,763) (233,843)
---------------------------
Net increase ................................... 318,323 $ 3,302,780
===========================
+ Commencement of operations.
- --------------------------------------------------------------------------------
Investor A1 Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 329,891 $ 3,409,766
Automatic conversion of shares ................. 24,851 256,611
Shares issued to shareholders in
reinvestment of dividends .................... 75,542 782,889
---------------------------
Total issued ................................... 430,284 4,449,266
Shares redeemed ................................ (1,137,514) (11,821,822)
---------------------------
Net decrease ................................... (707,230) $(7,372,556)
===========================
- --------------------------------------------------------------------------------
Investor A1 Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 527,848 $ 5,463,162
Automatic conversion of shares ................. 243,585 2,516,457
Shares issued to shareholders in
reinvestment of dividends .................... 91,450 945,045
---------------------------
Total issued ................................... 862,883 8,924,664
Shares redeemed ................................ (796,776) (8,221,713)
---------------------------
Net increase ................................... 66,107 $ 702,951
===========================
- --------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 19,231 $ 199,151
Shares issued to shareholders in
reinvestment of dividends .................... 27,451 285,087
---------------------------
Total issued ................................... 46,682 484,238
---------------------------
Automatic conversion of shares ................. (24,804) (256,611)
Shares redeemed ................................ (855,644) (8,879,336)
---------------------------
Total redeemed ................................. (880,448) (9,135,947)
---------------------------
Net decrease ................................... (833,766) $(8,651,709)
===========================
- --------------------------------------------------------------------------------
Investor B Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 57,971 $ 601,017
Shares issued to shareholders in
reinvestment of dividends .................... 33,304 344,967
---------------------------
Total issued ................................... 91,275 945,984
---------------------------
Automatic conversion of shares ................. (243,160) (2,516,457)
Shares redeemed ................................ (733,191) (7,590,028)
---------------------------
Total redeemed ................................. (976,351) (10,106,485)
---------------------------
Net decrease ................................... (885,076) $(9,160,501)
===========================
- --------------------------------------------------------------------------------
Investor C Shares for the
Period October 2, 2006+ to Dollar
July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 139,623 $ 1,445,646
Shares issued to shareholders in
reinvestment of dividends .................... 691 7,109
---------------------------
Total issued ................................... 140,314 1,452,755
Shares redeemed ................................ (2,005) (20,901)
---------------------------
Net increase ................................... 138,309 $ 1,431,854
===========================
+ Commencement of operations.
- --------------------------------------------------------------------------------
Investor C1 Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 90,509 $ 934,432
Shares issued to shareholders in
reinvestment of dividends .................... 26,319 272,746
---------------------------
Total issued ................................... 116,828 1,207,178
Shares redeemed ................................ (313,232) (3,237,597)
---------------------------
Net decrease ................................... (196,404) $(2,030,419)
===========================
- --------------------------------------------------------------------------------
Investor C1 Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 573,431 $ 5,936,278
Shares issued to shareholders in
reinvestment of dividends .................... 25,304 261,367
---------------------------
Total issued ................................... 598,735 6,197,645
Shares redeemed ................................ (449,648) (4,645,872)
---------------------------
Net increase ................................... 149,087 $ 1,551,773
===========================
- --------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 15,107,431 $161,596,332
Shares issued resulting
from reorganization .......................... 12,623,088 136,064,267
Shares issued to shareholders in
reinvestment of dividends .................... 47,250 503,184
-----------------------------
Total issued ................................... 27,777,769 298,163,783
Shares redeemed ................................ (14,530,074) (155,327,851)
-----------------------------
Net increase ................................... 13,247,695 $142,835,932
=============================
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 964,976 $10,272,414
Shares issued to shareholders in
reinvestment of dividends
and distributions ............................ 34,893 370,812
---------------------------
Total issued ................................... 999,869 10,643,226
Shares redeemed ................................ (230,789) (2,453,141)
---------------------------
Net increase ................................... 769,080 $ 8,190,085
===========================
62 ANNUAL REPORTS JULY 31, 2007
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund (continued)
- --------------------------------------------------------------------------------
Service Shares for the
Period October 2, 2006+ to Dollar
July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 321,331 $ 3,432,330
Shares issued resulting from
reorganization ............................... 1,277,790 13,770,748
Shares issued to shareholders in
reinvestment of dividends .................... 25,159 270,682
---------------------------
Total issued ................................... 1,624,280 17,473,760
Shares redeemed ................................ (409,303) (4,376,910)
---------------------------
Net increase ................................... 1,214,977 $13,096,850
===========================
+ Commencement of operations.
- --------------------------------------------------------------------------------
Investor A Shares for the Period
October 2, 2006+ to Dollar
July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 982,922 $10,622,153
Shares issued resulting
from reorganization .......................... 642,864 6,934,573
Shares issued to shareholders in
reinvestment of dividends .................... 21,040 226,230
---------------------------
Total issued ................................... 1,646,826 17,782,956
Shares redeemed ................................ (164,504) (1,759,132)
---------------------------
Net increase ................................... 1,482,322 $16,023,824
===========================
+ Commencement of operations.
- --------------------------------------------------------------------------------
Investor A1 Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 284,091 $ 3,045,802
Automatic conversion of shares ................. 49,715 532,905
Shares issued to shareholders in
reinvestment of dividends .................... 86,895 937,248
---------------------------
Total issued ................................... 420,701 4,515,955
Shares redeemed ................................ (503,201) (5,422,697)
---------------------------
Net decrease ................................... (82,500) $ (906,742)
===========================
- --------------------------------------------------------------------------------
Investor A1 Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 208,943 $ 2,220,603
Automatic conversion of shares ................. 143,613 1,527,300
Shares issued resulting from
reorganization ............................... 563,945 5,972,178
Shares issued to shareholders in
reinvestment of dividends
and distributions ............................ 74,164 788,558
---------------------------
Total issued ................................... 990,665 10,508,639
Shares redeemed ................................ (398,716) (4,231,990)
---------------------------
Net increase ................................... 591,949 $ 6,276,649
===========================
- --------------------------------------------------------------------------------
Investor B Shares for the Period
October 2, 2006+ to Dollar
July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 31,037 $ 334,569
Shares issued resulting from
reorganization ............................... 955,090 10,293,000
Shares issued to shareholders in
reinvestment of dividends
and distributions ............................ 20,550 221,281
---------------------------
Total issued ................................... 1,006,677 10,848,850
Shares redeemed ................................ (191,557) (2,062,283)
---------------------------
Net increase ................................... 815,120 $ 8,786,567
===========================
+ Commencement of operations.
- --------------------------------------------------------------------------------
Investor B1 Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 22,341 $ 233,261
Shares issued to shareholders in
reinvestment of dividends .................... 30,286 326,520
---------------------------
Total issued ................................... 52,627 559,781
---------------------------
Automatic conversion of shares ................. (49,761) (532,905)
Shares redeemed ................................ (481,609) (5,183,132)
---------------------------
Total redeemed ................................. (531,370) (5,716,037)
---------------------------
Net decrease ................................... (478,743) $(5,156,256)
===========================
- --------------------------------------------------------------------------------
Investor B1 Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 75,601 $ 803,353
Shares issued to shareholders in
reinvestment of dividends
and distributions ............................ 36,197 384,750
---------------------------
Total issued ................................... 111,798 1,188,103
---------------------------
Automatic conversion of shares ................. (143,732) (1,527,300)
Shares redeemed ................................ (509,703) (5,409,374)
---------------------------
Total redeemed ................................. (653,435) (6,936,674)
---------------------------
Net decrease ................................... (541,637) $(5,748,571)
===========================
- --------------------------------------------------------------------------------
Investor C Shares for the Period
October 2, 2006+ to Dollar
July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 596,823 $ 6,437,766
Shares issued resulting from
reorganization ............................... 139,982 1,508,301
Shares issued to shareholders in
reinvestment of dividends .................... 8,672 92,924
---------------------------
Total issued ................................... 745,477 8,038,991
Shares redeemed ................................ (59,516) (635,360)
---------------------------
Net increase ................................... 685,961 $ 7,403,631
===========================
+ Commencement of operations.
ANNUAL REPORTS JULY 31, 2007 63
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund (concluded)
- --------------------------------------------------------------------------------
Investor C1 Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 80,325 $ 856,962
Shares issued to shareholders in
reinvestment of dividends .................... 43,167 465,414
---------------------------
Total issued ................................... 123,492 1,322,376
Shares redeemed ................................ (204,930) (2,211,606)
---------------------------
Net decrease ................................... (81,438) $ (889,230)
===========================
- --------------------------------------------------------------------------------
Investor C1 Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 486,689 $ 5,166,459
Shares issued to shareholders in
reinvestment of dividends
and distributions ............................ 31,114 330,567
---------------------------
Total issued ................................... 517,803 5,497,026
Shares redeemed ................................ (168,574) (1,794,645)
---------------------------
Net increase ................................... 349,229 $ 3,702,381
===========================
- --------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 45,132,346 $505,293,421
Shares issued resulting from
reorganization ............................... 46,579,938 526,677,144
Shares issued to shareholders in
reinvestment of dividends .................... 51,078 575,901
-----------------------------
Total issued ................................... 91,763,362 1,032,546,466
Shares redeemed ................................ (49,076,517) (550,101,506)
-----------------------------
Net increase ................................... 42,686,845 $ 482,444,960
=============================
- --------------------------------------------------------------------------------
Institutional Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 258,690 $ 2,907,065
Shares issued to shareholders in
reinvestment of dividends .................... 19,170 215,636
---------------------------
Total issued ................................... 277,860 3,122,701
Shares redeemed ................................ (130,146) (1,461,780)
---------------------------
Net increase ................................... 147,714 $ 1,660,921
===========================
- --------------------------------------------------------------------------------
Service Shares for the Period
October 2, 2006+ to Dollar
July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 266,284 $ 2,996,184
Shares issued resulting from
reorganization ............................... 352,040 3,981,223
Shares issued to shareholders in
reinvestment of dividends .................... 4,636 52,252
---------------------------
Total issued ................................... 622,960 7,029,659
Shares redeemed ................................ (325,045) (3,660,436)
---------------------------
Net increase ................................... 297,915 $ 3,369,223
===========================
+ Commencement of operations.
- --------------------------------------------------------------------------------
Investor A Shares for the
Period October 2, 2006+ to Dollar
July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 340,268 $ 3,841,878
Shares issued resulting from
reorganization ............................... 2,414,744 27,333,039
Shares issued to shareholders in
reinvestment of dividends .................... 69,146 779,778
---------------------------
Total issued ................................... 2,824,158 31,954,695
Shares redeemed ................................ (330,379) (3,733,251)
---------------------------
Net increase ................................... 2,493,779 $28,221,444
===========================
+ Commencement of operations.
- --------------------------------------------------------------------------------
Investor A1 Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 237,782 $ 2,679,413
Automatic conversion of shares ................. 32,084 361,452
Shares issued to shareholders in
reinvestment of dividends .................... 58,218 657,469
---------------------------
Total issued ................................... 328,084 3,698,334
Shares redeemed ................................ (231,123) (2,606,866)
---------------------------
Net increase ................................... 96,961 $ 1,091,468
===========================
- --------------------------------------------------------------------------------
Investor A1 Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 186,476 $ 2,100,586
Automatic conversion of shares ................. 175,276 1,971,520
Shares issued to shareholders in
reinvestment of dividends .................... 53,112 598,166
---------------------------
Total issued ................................... 414,864 4,670,272
Shares redeemed ................................ (286,415) (3,220,475)
---------------------------
Net increase ................................... 128,449 $ 1,449,797
===========================
- --------------------------------------------------------------------------------
Investor B Shares for the
Period October 2, 2006+ to Dollar
July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 16,950 $ 191,566
Shares issued resulting from
reorganization ............................... 622,139 7,035,673
Shares issued to shareholders in
reinvestment of dividends .................... 13,672 154,119
---------------------------
Total issued ................................... 652,761 7,381,358
Shares redeemed ................................ (185,063) (2,085,361)
---------------------------
Net increase ................................... 467,698 $ 5,295,997
===========================
+ Commencement of operations.
- --------------------------------------------------------------------------------
Investor B1 Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 1,997 $ 25,143
Shares issued to shareholders in
reinvestment of dividends .................... 26,808 302,593
---------------------------
Total issued ................................... 28,805 327,736
---------------------------
Automatic conversion of shares ................. (32,125) (361,452)
Shares redeemed ................................ (486,729) (5,486,613)
---------------------------
Total redeemed ................................. (518,854) (5,848,065)
---------------------------
Net decrease ................................... (490,049) $(5,520,329)
===========================
64 ANNUAL REPORTS JULY 31, 2007
Notes to Financial Statements (continued)
- --------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund (concluded)
- --------------------------------------------------------------------------------
Investor B1 Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 22,583 $ 256,222
Shares issued to shareholders in
reinvestment of dividends .................... 37,037 416,986
---------------------------
Total issued ................................... 59,620 673,208
---------------------------
Automatic conversion of shares ................. (175,472) (1,971,520)
Shares redeemed ................................ (342,329) (3,848,140)
---------------------------
Total redeemed ................................. (517,801) (5,819,660)
---------------------------
Net decrease ................................... (458,181) $(5,146,452)
===========================
- --------------------------------------------------------------------------------
Investor C Shares for the
Period October 2, 2006+ to Dollar
July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 252,006 $ 2,834,147
Shares issued resulting from
reorganization ............................... 142,420 1,611,617
Shares issued to shareholders in
reinvestment of dividends .................... 5,227 58,812
---------------------------
Total issued ................................... 399,653 4,504,576
Shares redeemed ................................ (26,100) (293,499)
---------------------------
Net increase ................................... 373,553 $ 4,211,077
===========================
+ Commencement of operations.
- --------------------------------------------------------------------------------
Investor C1 Shares for the Year Dollar
Ended July 31, 2007 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 53,806 $ 610,382
Shares issued to shareholders in
reinvestment of dividends .................... 32,544 367,187
---------------------------
Total issued ................................... 86,350 977,569
Shares redeemed ................................ (107,580) (1,210,314)
---------------------------
Net decrease ................................... (21,230) $ (232,745)
===========================
- --------------------------------------------------------------------------------
Investor C1 Shares for the Year Dollar
Ended July 31, 2006 Shares Amount
- --------------------------------------------------------------------------------
Shares sold .................................... 271,153 $ 3,052,105
Shares issued to shareholders in
reinvestment of dividends .................... 28,373 319,214
---------------------------
Total issued ................................... 299,526 3,371,319
Shares redeemed ................................ (97,038) (1,091,005)
---------------------------
Net increase ................................... 202,488 $ 2,280,314
===========================
5. Short-Term Borrowings:
The Trust, on behalf of the Funds, along with certain other funds managed by the
Manager and its affiliates, is party to a $500,000,000 credit agreement with a
group of lenders, which expires November 2007. The Funds may borrow under the
credit agreement to fund shareholder redemptions and for other lawful purposes
other than for leverage. The Funds may borrow up to the maximum amount allowable
under the Funds' current prospectus and statement of additional information,
subject to various other legal, regulatory or contractual limits. If amounts are
borrowed, the Funds will pay a commitment fee of .06% per annum based on the
Funds' pro rata share of the unused portion of the credit agreement. Amounts
borrowed under the credit agreement bear interest at a rate equal to, at each
fund's election, the federal funds rate plus .35% or a base rate as defined in
the credit agreement. The Funds did not borrow under the credit agreement during
the year ended July 31, 2007.
6. Distributions to Shareholders:
BlackRock Florida Municipal Bond Fund
The tax character of distributions paid during the fiscal years ended July 31,
2007 and July 31, 2006 was as follows:
- --------------------------------------------------------------------------------
7/31/2007 7/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income ............................ $ 4,795,811 $ 5,414,484
----------------------------
Total distributions ............................ $ 4,795,811 $ 5,414,484
============================
As of July 31, 2007, the components of accumulated losses on a tax basis were as
follows:
- --------------------------------------------------------------------------------
Undistributed tax-exempt income -- net ....................... $ 123,464
Undistributed long-term capital gains -- net ................. --
-----------
Total undistributed earnings -- net .......................... 123,464
Capital loss carryforward .................................... (3,819,605)*
Unrealized gains -- net ...................................... 2,496,858**
-----------
Total accumulated losses -- net .............................. $(1,199,283)
===========
* On July 31, 2007, the Fund had a net capital loss carryforward of
$3,819,605, of which $2,653,250 expires in 2008, $1,118,328 expires in
2009 and $48,027 expires in 2014. This amount will be available to offset
like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles and the difference between the book
and tax treatment of residual interests in tender option bond trusts.
BlackRock New Jersey Municipal Bond Fund
The tax character of distributions paid during the fiscal years ended July 31,
2007 and July 31, 2006 was as follows:
- --------------------------------------------------------------------------------
7/31/2007 7/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income ...................... $10,641,372 $ 4,195,562
Ordinary income ........................ -- 36,642
----------------------------
Total distributions ............................ $10,641,372 $ 4,232,204
============================
ANNUAL REPORTS JULY 31, 2007 65
Notes to Financial Statements (concluded)
As of July 31, 2007, the components of accumulated losses on a tax basis were as
follows:
- --------------------------------------------------------------------------------
Undistributed tax-exempt income -- net ...................... $ 204,096
Undistributed long-term capital gains -- net ................ --
------------
Total undistributed earnings -- net ......................... 204,096
Capital loss carryforward ................................... (13,900,412)*
Unrealized gains -- net ..................................... 10,125,587**
------------
Total accumulated losses -- net ............................. $ (3,570,729)
============
* On July 31, 2007, the Fund had a net capital loss carryforward of
$13,900,412, of which $2,652,175 expires in 2008, $5,171,785 expires in
2009, $2,530,579 expires in 2010, $2,693,662 expires in 2011, $724,595
expires in 2012 and $127,616 expires in 2014. This amount will be
available to offset like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on straddles, the
difference between book and tax amortization methods for premiums and
discounts on fixed income securities and the difference between the book
and tax treatment of residual interests in tender option bond trusts.
BlackRock Pennsylvania Municipal Bond Fund
The tax character of distributions paid during the fiscal years ended July 31,
2007 and July 31, 2006 was as follows:
- --------------------------------------------------------------------------------
7/31/2007 7/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income ...................... $21,184,436 $ 2,993,729
----------------------------
Total distributions ............................ $21,184,436 $ 2,993,729
============================
As of July 31, 2007, the components of accumulated losses on a tax basis were as
follows:
- --------------------------------------------------------------------------------
Undistributed tax-exempt income -- net ...................... $ 67,542
Undistributed ordinary income -- net ........................ 52,925
Undistributed long-term capital gains -- net ................ 1,446,596
------------
Total undistributed earnings -- net ......................... 1,567,063
Capital loss carryforward ................................... (33,757,476)*
Unrealized gains -- net ..................................... 16,173,088**
------------
Total accumulated losses -- net ............................. $(16,017,325)
============
* On July 31, 2007, the Fund had a net capital loss carryforward of
$33,757,476, of which $8,306,024 expires in 2009, $15,329,699 expires in
2010 and $10,121,753 expires in 2012. This amount will be available to
offset like amounts of any future taxable gains.
** The difference between book-basis and tax-basis net unrealized gains is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income securities
and the difference between the book and tax treatment of residual
interests in tender option bond trusts.
7. Acquisition of BlackRock New Jersey Municipal Bond Portfolio:
On October 16, 2006, BlackRock New Jersey Municipal Bond Fund ("New Jersey")
acquired all of the net assets of BlackRock New Jersey Municipal Bond Portfolio
of BlackRock FundsSM ("New Jersey Portfolio") pursuant to a plan of
reorganization. The acquisition was accomplished by a tax-free exchange of
14,779,831 shares of beneficial interest of New Jersey Portfolio for 15,638,814
shares of beneficial interest of New Jersey. New Jersey Portfolio's net assets
on that date of $168,570,889, including $1,114 of undistributed net investment
income, $7,814,395 of accumulated net realized losses and $9,619,775 of net
unrealized appreciation were combined with those of New Jersey. The aggregate
net assets immediately after the acquisition amounted to $284,238,836.
8. Acquisition of BlackRock Pennsylvania Municipal Bond Portfolio:
On October 16, 2006, BlackRock Pennsylvania Municipal Bond Fund ("Pennsylvania")
acquired all of the net assets of BlackRock Pennsylvania Municipal Bond
Portfolio of BlackRock FundsSM ("Pennsylvania Portfolio") pursuant to a plan of
reorganization. The acquisition was accomplished by a tax-free exchange of
55,239,351 shares of beneficial interest of Pennsylvania Portfolio for
50,111,281 shares of beneficial interest of Pennsylvania. Pennsylvania
Portfolio's net assets on that date of $566,638,696, including $67,797 of
undistributed net investment income, $39,792,392 of accumulated net realized
losses and $29,003,543 of net unrealized appreciation were combined with those
of Pennsylvania. The aggregate net assets immediately after the acquisition
amounted to $639,941,230.
66 ANNUAL REPORTS JULY 31, 2007
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of
BlackRock Multi-State Municipal Series Trust:
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of BlackRock Florida Municipal Bond Fund,
BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal
Bond Fund (formerly Merrill Lynch Florida Municipal Bond Fund, Merrill Lynch New
Jersey Municipal Bond Fund and Merrill Lynch Pennsylvania Municipal Bond Fund,
respectively), three of the portfolios constituting BlackRock Multi-State
Municipal Series Trust (formerly Merrill Lynch Multi-State Municipal Series
Trust) (the "Trust"), as of July 31, 2007, and the related statements of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. The Trust
is not required to have, nor were we engaged to perform, an audit of its
internal control over financial reporting. Our audits included consideration of
internal control over financial reporting as a basis for designing audit
procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the Trust's internal control over
financial reporting. Accordingly, we express no such opinion. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. Our procedures included confirmation
of securities owned as of July 31, 2007, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the respective financial
positions of BlackRock Florida Municipal Bond Fund, BlackRock New Jersey
Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund as of July
31, 2007, the results of their operations for the year then ended, the changes
in their net assets for each of the two years in the period then ended, and
their financial highlights for each of the five years in the period then ended,
in conformity with accounting principles generally accepted in the United States
of America.
Deloitte & Touche LLP
Princeton, New Jersey
September 26, 2007
ANNUAL REPORTS JULY 31, 2007 67
Officers and Trustees
Number of
Funds and
Portfolios in
Position(s) Length of Fund Complex Other Public
Name, Address Held with Time Overseen by Directorships
and Year of Birth Trust Served Principal Occupation(s) During Past 5 Years Trustee Held by Trustee
====================================================================================================================================
Interested Trustee
- ------------------------------------------------------------------------------------------------------------------------------------
Robert C. Doll, Jr.* Fund 2005 to Vice Chairman and Director of BlackRock, 120 Funds None
P.O. Box 9011 President present Inc., Global Chief Investment Officer for 161 Portfolios
Princeton, NJ 08543-9011 and Equities, Chairman of the BlackRock Retail
1954 Trustee Operating Committee, and member of the
BlackRock Executive Committee since 2006;
President of the funds advised by Merrill
Lynch Investment Managers, L.P. ("MLIM") and
its affiliates ("MLIM/FAM-advised funds")
from 2005 to 2006 and Chief Investment
Officer thereof from 2001 to 2006; President
of MLIM and Fund Asset Management, L.P.
("FAM") from 2001 to 2006; Co-Head (Americas
Region) thereof from 2000 to 2001 and Senior
Vice President from 1999 to 2001; President
and Director of Princeton Services, Inc.
("Princeton Services") and President of
Princeton Administrators, L.P. ("Princeton
Administrators") from 2001 to 2006; Chief
Investment Officer of OppenheimerFunds, Inc.
in 1999 and Executive Vice President thereof
from 1991 to 1999.
---------------------------------------------------------------------------------------------------------
* Mr. Doll is a director, trustee or member of an advisory board of certain other investment
companies for which BlackRock Advisors, LLC and its affiliates act as investment adviser. Mr. Doll
is an "interested person," as defined in the Investment Company Act, of the Fund based on his
positions with BlackRock, Inc. and its affiliates. Trustees serve until their resignation, removal
or death, or until December 31 of the year in which they turn 72. As Fund President, Mr. Doll
serves at the pleasure of the Board of Trustees.
====================================================================================================================================
Independent Trustees*
- ------------------------------------------------------------------------------------------------------------------------------------
James H. Bodurtha** Trustee 1995 to Director, The China Business Group, Inc. 37 Funds None
P.O. Box 9095 present since 1996 and Executive Vice President 57 Portfolios
Princeton, NJ 08543-9095 thereof from 1996 to 2003; Chairman of the
1944 Board, Berkshire Holding Corporation since
1980; Partner, Squire, Sanders & Dempsey
from 1980 to 1993.
- ------------------------------------------------------------------------------------------------------------------------------------
Kenneth A. Froot Trustee 2005 to Professor, Harvard University since 1992; 37 Funds None
P.O. Box 9095 present Professor, Massachusetts Institute of 57 Portfolios
Princeton, NJ 08543-9095 Technology from 1986 to 1992.
1957
- ------------------------------------------------------------------------------------------------------------------------------------
68 ANNUAL REPORTS JULY 31, 2007
Officers and Trustees (continued)
Number of
Funds and
Portfolios in
Position(s) Length of Fund Complex Other Public
Name, Address Held with Time Overseen by Directorships
and Year of Birth Trust Served Principal Occupation(s) During Past 5 Years Trustee Held by Trustee
====================================================================================================================================
Independent Trustees* (continued)
- ------------------------------------------------------------------------------------------------------------------------------------
Joe Grills** Trustee 2002 to Member of the Committee of Investment of 37 Funds Kimco Realty
P.O. Box 9095 present Employee Benefit Assets of the Association 57 Portfolios Corporation
Princeton, NJ 08543-9095 of Financial Professionals ("CIEBA") since
1935 1986; Member of CIEBA's Executive Committee
since 1988 and its Chairman from 1991 to
1992; Assistant Treasurer of International
Assistant Treasurer of International
Business Machines Corporation ("IBM") and
Chief Investment Officer of IBM Retirement
Funds from 1986 to 1993; Member of the
Investment Advisory Committee of the State
of New York Common Retirement Fund from 1989
to 2006; Member of the Investment Advisory
Committee of the Howard Hughes Medical
Institute from 1997 to 2000; Director, Duke
University Management Company from 1992 to
2004, Vice Chairman thereof from 1998 to
2004, and Director Emeritus thereof since
2004; Director, LaSalle Street Fund from
1995 to 2001; Director, Kimco Realty
Corporation since 1997; Member of the
Investment Advisory Committee of the
Virginia Retirement System since 1998, Vice
Chairman thereof from 2002 to 2005, and
Chairman thereof since 2005; Director,
Montpelier Foundation since 1998, its Vice
Chairman from 2000 to 2006, and Chairman,
thereof, since 2006; Member of the
Investment Committee of the Woodberry Forest
School since 2000; Member of the Investment
Committee of the National Trust for Historic
Preservation since 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Herbert I. London Trustee 1987 to Professor Emeritus, New York University 37 Funds None
P.O. Box 9095 present since 2005; John M. Olin Professor of 57 Portfolios
Princeton, NJ 08543-9095 Humanities, New York University from 1993 to
1939 2005; and Professor thereof from 1980 to
2005; President, Hudson Institute since 1997
and Trustee thereof since 1980; Dean,
Gallatin Division of New York University
from 1976 to 1993; Distinguished Fellow,
Herman Kahn Chair, Hudson Institute from
1984 to 1985; Chairman of the Board of
Directors of Vigilant Research, Inc. since
2006; Member of the Board of Directors for
Grantham University since 2006; Director of
AIMS since 2006; Director of Reflex Security
since 2006; Director of InnoCentive, Inc.
since 2006; Director of Cerego, LLC since
2005; Director, Damon Corp. from 1991 to
1995; Overseer, Center for Naval Analyses
from 1983 to 1993.
- ------------------------------------------------------------------------------------------------------------------------------------
Roberta Cooper Ramo Trustee 2000 to Shareholder, Modrall, Sperling, Roehl, 37 Funds None
P.O. Box 9095 present Harris & Sisk, P.A. since 1993; President, 57 Portfolios
Princeton, NJ 08543-9095 American Bar Association from 1995 to 1996
1942 and Member of the Board of Governors thereof
from 1994 to 1997; Shareholder, Poole, Kelly
and Ramo, Attorneys at Law P.C. from 1977 to
1993; Director of ECMC Group (service
provider to students, schools and lenders)
since 2001; Director, United New Mexico Bank
(now Wells Fargo) from 1983 to 1988;
Director, First National Bank of New Mexico
(now Wells Fargo) from 1975 to 1976; Vice
President, American Law Institute since
2004.
- ------------------------------------------------------------------------------------------------------------------------------------
ANNUAL REPORTS JULY 31, 2007 69
Officers and Trustees (concluded)
Number of
Funds and
Portfolios in
Position(s) Length of Fund Complex Other Public
Name, Address Held with Time Overseen by Directorships
and Year of Birth Trust Served Principal Occupation(s) During Past 5 Years Trustee Held by Trustee
====================================================================================================================================
Independent Trustees* (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
Robert S. Salomon, Jr. Trustee 2002 to Principal of STI Management (investment 37 Funds None
P.O. Box 9095 present adviser) from 1994 to 2005; Chairman and CEO 57 Portfolios
Princeton, NJ 08543-9095 of Salomon Brothers Asset Management Inc.
1936 from 1992 to 1995; Chairman of Salomon
Brothers Equity Mutual Funds from 1992 to
1995; regular columnist with Forbes Magazine
from 1992 to 2002; Director of Stock
Research and U.S. Equity Strategist at
Salomon Brothers Inc. from 1975 to 1991;
Trustee, Commonfund from 1980 to 2001.
---------------------------------------------------------------------------------------------------------
* Trustees serve until their resignation, removal or death, or until December 31 of the year in which
they turn 72.
** Co-Chairman of the Board of Trustees and the Audit Committee.
- ------------------------------------------------------------------------------------------------------------------------------------
Position(s) Length of
Name, Address Held with Time
and Year of Birth Trust Served Principal Occupation(s) During Past 5 Years
====================================================================================================================================
Trust Officers*
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. Burke Vice 1993 to Managing Director of BlackRock, Inc. since 2006; Managing Director of Merrill
P.O. Box 9011 President present Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management, L.P. ("FAM")
Princeton, NJ 08543-9011 and and 1999 in 2006; First Vice President of MLIM and FAM from 1997 to 2005 and Treasurer
1960 Treasurer to present thereof from 1999 to 2006; Vice President of MLIM and FAM from 1990 to 1997.
- ------------------------------------------------------------------------------------------------------------------------------------
Karen ClarkChief Fund 2007 to Managing Director of BlackRock, Inc. and Chief Compliance Officer of certain
P.O. Box 9011 Compliance present BlackRock-advised funds since 2007; Director of BlackRock, Inc. from 2005 to
Princeton, NJ 08543-9011 Officer 2007; Principal and Senior Compliance Officer, State Street Global Advisors,
1965 from 2001 to 2005; Principal Consultant, PricewaterhouseCoopers, LLP from 1998
to 2001; and Branch Chief, Division of Investment Management and Office of
Compliance Inspections and Examinations, U.S. Securities and Exchange
Commission, from 1993 to 1998.
- ------------------------------------------------------------------------------------------------------------------------------------
Alice A. Pellegrino Secretary 2004 to Director of BlackRock, Inc. from 2006 to 2007; Director (Legal Advisory) of MLIM
P.O. Box 9011 2007 from 2002 to 2006; Vice President of MLIM from 1999 to 2002; Attorney associated
Princeton, NJ 08543-9011 with MLIM from 1997 to 1999; Secretary of MLIM, FAM, FAM Distributors, Inc. and
1960 Princeton Services from 2004 to 2006.
---------------------------------------------------------------------------------------------------------
* Officers of the Trust serve at the pleasure of the Board of Trustees.
- ------------------------------------------------------------------------------------------------------------------------------------
Further information about the Fund's Officers and Trustees is available in the Fund's Statement of
Additional Information, which can be obtained without charge by calling 1-800-441-7762.
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, MA 02101
Transfer Agent
PFPC Inc.
Wilmington, DE 19809
Address of the Funds
P.O. Box 9011
Princeton, NJ 08543-9011
70 ANNUAL REPORTS JULY 31, 2007
BlackRock Funds
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund
investors and individual clients (collectively, "Clients") and to safeguarding
their non-public personal information. The following information is provided to
help you understand what personal information BlackRock collects, how we protect
that information and why in certain cases we share such information with select
parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you
from different sources, including the following: (i) information we receive from
you or, if applicable, your financial intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our Web sites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that may
be of interest to you. In addition, BlackRock restricts access to non-public
personal information about its Clients to those BlackRock employees with a
legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public
personal information of its Clients, including procedures relating to the proper
storage and disposal of such information.
ANNUAL REPORTS JULY 31, 2007 71
BlackRock Funds (concluded)
Availability of Additional Information
Electronic copies of most financial reports and prospectuses are available on
the Funds' Web site or shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Funds' electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment
advisers, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock Web site at http://www.blackrock.com/edelivery
2) Select eDelivery under the More Information section
3) Log into your account
The Funds will mail only one copy of shareholder documents, including
prospectuses, annual and semi-annual reports and proxy statements, to
shareholders with multiple accounts at the same address. This practice is
commonly called "householding" and it is intended to reduce expenses and
eliminate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you instruct us
otherwise. If you do not want the mailing of these documents to be combined with
those for other members of your household, please contact the Funds at (800)
441-7762.
Availability of Proxy Voting Policies and Procedures
The Funds have delegated proxy voting responsibilities to BlackRock and its
affiliates, subject to the general oversight of the Funds' Board of Trustees. A
description of the policies and procedures that BlackRock and its affiliates use
to determine how to vote proxies relating to portfolio securities is available
without charge, upon request, on our Web site at www.blackrock.com, by calling
(800) 441-7762, or on the Web site of the Securities and Exchange Commission
(the"Commission") at http://www.sec.gov.
Availability of Proxy Voting Record
Information on how proxies relating to the Funds' voting securities were voted
(if any) by BlackRock during the most recent 12-month period ended June 30 is
available, upon request and without charge, on our Web site at
www.blackrock.com, by calling (800) 441-7762 or on the Web site of the
Commission at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Funds file their complete schedules of portfolio holdings for the first and
third quarters of their fiscal years with the Commission on Form N-Q. The Funds'
Forms N-Q are available on the Commission's Web site at http://www.sec.gov and
may be reviewed and copied at the Commission's Public Reference Room in
Washington, D.C. Information regarding the operation of the Public Reference
Room may be obtained by calling (800) SEC-0330. The Funds' Forms N-Q may also be
obtained upon request, without charge, by calling (800) 441-7762.
72 ANNUAL REPORTS JULY 31, 2007
Shareholder Privileges
Account Information
Call us at (800) 441-7762 8:00 AM - 6:00 PM EST to get information about your
account balances, recent transactions and share prices. You can also reach us on
the Web at 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 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.
ANNUAL REPORTS JULY 31, 2007 73
A World-Class Mutual Fund Family
BlackRock offers a diverse lineup of open-end mutual funds crossing all
investment styles and managed by experts in equity, fixed income and tax-exempt
investing.
Equity Funds
BlackRock All-Cap Global Resources Portfolio
BlackRock Aurora Portfolio
BlackRock Asset Allocation Portfolio+
BlackRock Balanced Capital Fund+
BlackRock Basic Value Fund
BlackRock Capital Appreciation Portfolio
BlackRock Developing Capital Markets Fund
BlackRock Equity Dividend Fund
BlackRock EuroFund
BlackRock Focus Twenty Fund
BlackRock Focus Value Fund
BlackRock Fundamental Growth Fund
BlackRock Global Allocation Fund+
BlackRock Global Dynamic Equity Fund
BlackRock Global Financial Services Fund
BlackRock Global Growth Fund
BlackRock Global Opportunities Portfolio
BlackRock Global Resources Portfolio*
BlackRock Global Science & Technology Opportunities Portfolio
BlackRock Global SmallCap Fund
BlackRock Healthcare Fund
BlackRock Health Sciences Opportunities Portfolio
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio*
BlackRock International Value Fund
BlackRock Investment Trust
BlackRock Large Cap Core Fund
BlackRock Large Cap Growth Fund
BlackRock Large Cap Value Fund
BlackRock Latin America Fund
BlackRock Mid-Cap Growth Equity Portfolio
BlackRock Mid-Cap Value Equity Portfolio
BlackRock Mid Cap Value Opportunities Fund
BlackRock Natural Resources Trust
BlackRock Pacific Fund
BlackRock Small Cap Core Equity Portfolio
BlackRock Small Cap Growth Equity Portfolio
BlackRock Small Cap Growth Fund II
BlackRock Small Cap Index Fund
BlackRock Small Cap Value Equity Portfolio*
BlackRock Small/Mid-Cap Growth Portfolio
BlackRock S&P 500 Index Fund
BlackRock Technology Fund
BlackRock U.S. Opportunities Portfolio
BlackRock Utilities and Telecommunications Fund
BlackRock Value Opportunities Fund
Fixed Income Funds
BlackRock Bond Fund
BlackRock Commodity Strategies Fund
BlackRock Enhanced Income Portfolio
BlackRock GNMA Portfolio
BlackRock Government Income Portfolio
BlackRock High Income Fund
BlackRock High Yield Bond Portfolio
BlackRock Inflation Protected Bond Portfolio
BlackRock Intermediate Bond Portfolio II
BlackRock Intermediate Government Bond Portfolio
BlackRock International Bond Portfolio
BlackRock Low Duration Bond Portfolio
BlackRock Managed Income Portfolio
BlackRock Short-Term Bond Fund
BlackRock Total Return Portfolio
BlackRock Total Return Portfolio II
BlackRock World Income Fund
Municipal Bond Funds
BlackRock AMT-Free Municipal Bond Portfolio
BlackRock California Insured Municipal Bond Fund
BlackRock Delaware Municipal Bond Portfolio
BlackRock Florida Municipal Bond Fund
BlackRock High Yield Municipal Fund
BlackRock Intermediate Municipal Fund
BlackRock Kentucky Municipal Bond Portfolio
BlackRock Municipal Insured Fund
BlackRock National Municipal Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock New York Municipal Bond Fund
BlackRock Ohio Municipal Bond Portfolio
BlackRock Pennsylvania Municipal Bond Fund
BlackRock Short-Term Municipal Fund
Target Risk & Target Date Funds
BlackRock Prepared Portfolios
Conservative Prepared Portfolio
Moderate Prepared Portfolio
Growth Prepared Portfolio
Aggressive Growth Prepared Portfolio
BlackRock Lifecycle Prepared Portfolios
Prepared Portfolio 2010
Prepared Portfolio 2015
Prepared Portfolio 2020
Prepared Portfolio 2025
Prepared Portfolio 2030
Prepared Portfolio 2035
Prepared Portfolio 2040
Prepared Portfolio 2045
Prepared Portfolio 2050
* See the prospectus for information on specific limitations on investments
in the fund.
+ Mixed asset fund.
BlackRock mutual funds are distributed by BlackRock Distributors, Inc. and
certain funds are also distributed by FAM Distributors, Inc. You should consider
the investment objectives, risks, charges and expenses of the funds under
consideration carefully before investing. Each fund's prospectus contains this
and other information and is available at www.blackrock.com or by calling
800-882-0052 or from your financial advisor. The prospectus should be read
carefully before investing.
74 ANNUAL REPORTS JULY 31, 2007
These reports are transmitted to shareholders only. They are not authorized for
use as an offer of sale or a solicitation of an offer to buy shares of the Funds
unless accompanied or preceded by the Funds' current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment returns and principal value of
shares will fluctuate so that shares, when redeemed, may be worth more or less
than their original cost. Statements and other information herein are as dated
and are subject to change.
BLACKROCK
#MBFLNJPA-7/07
Item 2 - Code of Ethics - The registrant has adopted a code of ethics, as of
the end of the period covered by this report, that applies to the
registrant's principal executive officer, principal financial
officer and principal accounting officer, or persons performing
similar functions. A copy of the code of ethics is available without
charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors has determined that (i) the registrant has the following
audit committee financial experts serving on its audit committee and
(ii) each audit committee financial expert is independent: (1) Joe
Grills and (2) Robert S. Salomon, Jr.
Item 4 - Principal Accountant Fees and Services
(a) Audit Fees (b) Audit-Related Fees(1) (c) Tax Fees(2) (d) All Other Fees
Current Previous Current Previous Current Previous Current Previous
Fiscal Fiscal Year Fiscal Fiscal Fiscal Year Fiscal Fiscal Fiscal Year
Entity Name Year End End Year End Year End End Year End Year End End
----------- -------- ----------- -------- -------- ----------- -------- -------- -----------
BlackRock
Florida
Municipal Bond
Fund $51,350 $26,500 $0 $0 $6,100 $6,000 $0 $0
BlackRock
New Jersey
Municipal Bond
Fund $51,350 $26,500 $0 $12,900 $6,100 $6,000 $0 $0
BlackRock
Pennsylvania
Municipal Bond
Fund $50,350 $25,500 $0 $12,900 $6,100 $6,000 $0 $0
1 The nature of the services include assurance and related services reasonably
related to the performance of the audit of financial statements not included in
Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax
planning.
(e)(1) The registrant's audit committee (the "Committee") has adopted policies
and procedures with regard to the pre-approval of services. Audit, audit-related
and tax compliance services provided to the registrant on an annual basis
require specific pre-approval by the Committee. The Committee also must approve
other non-audit services provided to the registrant and those non-audit services
provided to the registrant's affiliated service providers that relate directly
to the operations and the financial reporting of the registrant. Certain of
these non-audit services that the Committee believes are a) consistent with the
SEC's auditor independence rules and b) routine and recurring services that will
not impair the independence of the independent accountants may be approved by
the Committee without consideration on a specific case-by-case basis ("general
pre-approval"). However, such services will only be deemed pre-approved provided
that any individual project does not exceed $5,000 attributable to the
registrant or $50,000 for all of the registrants the Committee oversees. Any
proposed services exceeding the pre-approved cost levels will require specific
pre-approval by the Committee, as will any other services not subject to general
pre-approval (e.g., unanticipated but permissible services). The Committee is
informed of each service approved subject to general pre-approval at the next
regularly scheduled in-person board meeting.
(e)(2) 0%
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
Entity Name Current Fiscal Year End Previous Fiscal Year End
----------- ----------------------- ------------------------
BlackRock Florida Municipal Bond Fund $712,933 $2,192,750
BlackRock New Jersey Municipal Bond $712,933 $2,205,650
Fund
BlackRock Pennsylvania Municipal Bond $712,933 $2,205,650
Fund
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser and any entity controlling,
controlled by, or under common control with the investment adviser
that provides ongoing services to the registrant that were not
pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of
Regulation S-X is compatible with maintaining the principal
accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $225,000, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Schedule of Investments - The registrant's Schedule of Investments
is included as part of the Report to Stockholders filed under Item 1
of this form.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating Committee will consider nominees to the
Board recommended by shareholders when a vacancy becomes available.
Shareholders who wish to recommend a nominee should send nominations
which include biographical information and set forth the
qualifications of the proposed nominee to the registrant's
Secretary. There have been no material changes to these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
15d-15(b) under the Securities and Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter
of the period covered by this report that have materially affected,
or are reasonably likely to materially affect, the registrant's
internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Multi-State Municipal Series Trust
By: /s/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Multi-State Municipal Series Trust
Date: September 20, 2007
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/ Robert C. Doll, Jr.
-----------------------
Robert C. Doll, Jr.,
Chief Executive Officer (principal executive officer) of
BlackRock Multi-State Municipal Series Trust
Date: September 20, 2007
By: /s/ Donald C. Burke
-----------------------
Donald C. Burke,
Chief Financial Officer (principal financial officer) of
BlackRock Multi-State Municipal Series Trust
Date: September 20, 2007