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: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, 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: 05/31/2008
Date of reporting period: 06/01/2007 - 05/31/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
Annual Report BLACKROCK
MAY 31, 2008
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
Table of Contents
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Page
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A Letter to Shareholders ................................................. 3
Annual Report:
Fund Summaries ........................................................... 4
About Fund Performance ................................................... 10
Disclosure of Expenses ................................................... 11
Portfolio Information .................................................... 14
Financial Statements:
Schedules of Investments ............................................... 15
Statements of Assets and Liabilities ................................... 27
Statements of Operations ............................................... 29
Statements of Changes in Net Assets .................................... 30
Financial Highlights ..................................................... 33
Notes to Financial Statements ............................................ 49
Report of Independent Registered Public Accounting Firm .................. 64
Important Tax Information (Unaudited) .................................... 64
Officers and Trustees .................................................... 65
Additional Information ................................................... 69
Mutual Fund Family ....................................................... 71
2 ANNUAL REPORT MAY 31, 2008
A Letter to Shareholders
Dear Shareholder
For much of the reporting period, investors grappled with the repercussions of
the credit crisis that surfaced last summer, and with the effects of a weakening
economy and surging energy and food prices. These factors were offset by the
positive impact from robust export activity, strength in the non-financial
corporate sector and monetary and fiscal stimuli.
Amid the market turbulence, the Federal Reserve Board (the "Fed") initiated a
series of moves to restore liquidity and bolster financial market stability.
Since September 2007, the central bank slashed the target federal funds rate 325
basis points (3.25%), bringing the rate to 2.0% as of period-end. Also of
significance were its other policy decisions, which included extending use of
the discount window to broker-dealers and investment banks and backstopping the
rescue of ill-fated Bear Stearns. Notably, on April 30, the Fed dropped previous
references to downside growth risks and added more emphasis on inflationary
pressures, indicating the central bankers have likely concluded the current
cycle of monetary easing.
Nevertheless, the Fed's response to the financial crisis helped to ease credit
turmoil and investor anxiety. Since hitting a low point on March 17, following
the collapse of Bear Stearns, stocks appreciated 10% (through May 30). Most
international markets, which had outperformed U.S. stocks for some time, saw a
reversal in that trend, as the troubled credit situation and downward pressures
on growth fanned recession fears.
In fixed income markets, Treasury securities rallied (yields fell as prices
correspondingly rose), as a broad "flight-to-quality" theme persisted. The yield
on 10-year Treasury issues, which touched 5.30% in June 2007 (its highest level
in five years), fell to a low of 3.34% in March 2008 before rising to 4.06% by
May 31 as investors grew more risk tolerant and shifted out of Treasury issues
in favor of stocks and other high-quality fixed income sectors. Tax-exempt
issues underperformed throughout most of the reporting period, pressured by
problems among municipal bond insurers and the freeze in the market for auction
rate securities. However, the final two months saw a firmer tone in the
municipal market, as investors took advantage of unusually high yields.
On the whole, results for the major benchmark indexes generally reflected
heightened investor risk aversion:
Total Returns as of May 31, 2008 6-month 12-month
================================================================================================================
U.S. equities (S&P 500 Index) (4.47%) (6.70%)
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Small cap U.S. equities (Russell 2000 Index) (1.87) (10.53)
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International equities (MSCI Europe, Australasia, Far East Index) (5.21) (2.53)
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Fixed income (Lehman Brothers U.S. Aggregate Index) 1.49 6.89
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Tax-exempt fixed income (Lehman Brothers Municipal Bond Index) 1.44 3.87
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High yield bonds (Lehman Brothers U.S. Corporate High Yield 2% Issuer Capped Index) 1.81 (1.08)
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Past performance is no guarantee of future results. Index performance shown for
illustrative purposes only. You cannot invest directly in an index.
As you navigate today's volatile markets, we encourage you to review your
investment goals with your financial professional and to make portfolio changes,
as needed. For more up-to-date commentary on the economy and financial markets,
we invite you to visit www.blackrock.com/funds. As always, we thank you for
entrusting BlackRock with your investment assets, and we look forward to
continuing to serve you in the months and years ahead.
Sincerely,
/s/ Rob Kapito
Rob Kapito
President, BlackRock Advisors, LLC
3
THIS PAGE NOT PART OF YOUR FUND REPORT
Fund Summary as of May 31, 2008 BlackRock Florida Municipal Bond Fund
Portfolio Management Commentary
How did the Fund perform?
o The Fund recently changed its fiscal year end to May 31. Fund results for
the 12-month period lagged the broad-market Lehman Brothers Municipal Bond
Index and the Lipper Florida Municipal Debt Funds category average. 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 Florida.
What factors influenced performance?
o U.S. Treasury yields generally moved lower (while prices correspondingly
rose) during the year in response to weaker domestic economic growth and
declining equity valuations. The Federal Reserve Board cut short-term
interest rates seven times from 5.25% to 2.0%.
o The municipal market underperformed U.S. Treasury issues, as credit
downgrades of the monoline insurers and disruption of the auction rate
securities market weighed heavily on the sector. Long-term municipal bond
yields were acutely affected. New issuance for the period was relatively
strong, despite a 12% decline in the past six months. More recently, the
pace has increased, alongside improved investor demand.
o The Fund's relative performance was adversely affected by its
longer-maturity municipal bond holdings, which performed poorly as
interest rates rose during the period. Credit spreads widened to levels
not seen in several years. Specific sectors that detracted from
performance included uninsured healthcare, land-secured bonds and
corporate-issued municipal securities. Additionally, bonds insured by
monoline insurers FGIC, XLCA, AMBAC, MBIA and CIFG underperformed issues
insured by FSA and Assured Guaranty.
o On the positive side, the Fund's holdings in prerefunded bonds enhanced
results, as subprime mortgage problems and the failure of the auction rate
securities market spurred a flight to quality, benefiting the short end of
the municipal market.
Describe recent portfolio activity.
o During the reporting period, we took advantage of the increase in
volatility in the market to participate in some tax-loss swaps. In effect,
we were willing to take losses on the sale of selected bonds in order to
offset present and future capital gain tax liabilities for shareholders.
This also meant we were swapping into bonds with more attractive yields.
We found some compelling opportunities in the new-issue market, as well,
and acquired bonds with coupons ranging from 5.25% to 6.00%.
Describe Fund positioning at period-end.
o The Fund maintained a fully invested portfolio throughout and ended the
reporting period with a neutral duration relative to the Lipper peer
group.
The views expressed reflect the opinions of BlackRock as of the date of this
report and are subject to change based on changes in market, economic or other
conditions. These views are not intended to be a forecast of future events and
are no guarantee of future results.
4 ANNUAL REPORT MAY 31, 2008
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
and Investor A Shares compared to growth of an investment in the Lehman Brothers
Municipal Bond Index. Values are from May 1998 to May 2008:
Lehman Brothers
Municipal Bond
Institutional Shares(1,2) Investor A Shares(1,2) Index(3)
5/98 $10,000 $9,575 $10,000
5/99 $10,360 $9,895 $10,467
5/00 $9,967 $9,496 $10,377
5/01 $11,076 $10,526 $11,637
5/02 $11,820 $11,205 $12,394
5/03 $12,980 $12,275 $13,679
5/04 $13,079 $12,337 $13,674
5/05 $14,336 $13,490 $14,763
5/06 $14,668 $13,768 $15,042
5/07 $15,359 $14,368 $15,771
5/08 $15,353 $14,344 $16,381
1 Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
2 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.
3 This unmanaged Index consists of revenue bonds, pre-refunded bonds,
general obligation bonds and insured bonds.
Performance Summary for the Period Ended May 31, 2008
Average Annual Total Returns 1
--------------------------------------------------------------------
1 Year 5 Years 10 Years
-------------------- -------------------- --------------------
Standardized 6-Month w/o sales w/sales w/o sales w/sales w/o sales w/sales
30-Day Yields Total Returns charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ............... 4.36% (0.19%) (0.04%) -- 3.42% -- 4.38% --
Investor A .................. 4.01 (0.29) (0.17) (4.41%) 3.16 2.27% 4.12 3.67%
Investor A1 ................. 4.10 (0.24) (0.13) (4.12) 3.31 2.47 4.28 3.85
Investor B .................. 3.88 (0.43) (0.53) (4.35) 2.90 2.56 3.86 3.86
Investor C .................. 3.35 (0.69) (1.05) (2.00) 2.37 2.37 3.33 3.33
Investor C1 ................. 3.77 (0.49) (0.63) (1.58) 2.80 2.80 3.75 3.75
Lehman Brothers Municipal
Bond Index ................ -- 1.44 3.87 -- 3.67 -- 5.06 --
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1 Assuming maximum sales charges. See "About Fund Performance" on pages 10
and 11 for a detailed description of share classes, including any related
sales charges and fees.
Past performance is not indicative of future results.
ANNUAL REPORT MAY 31, 2008 5
Fund Summary as of May 31, 2008 BlackRock New Jersey Municipal Bond Fund
Portfolio Management Commentary
How did the Fund perform?
o The Fund recently changed its fiscal year end to May 31. The Fund
underperformed the broad-market Lehman Brothers Municipal Bond Index and
the Lipper New Jersey Municipal Debt Funds category average for the
12-month period. 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 New Jersey.
What factors influenced performance?
o U.S. Treasury yields generally moved lower (while prices correspondingly
rose) during the year in response to weaker domestic economic growth and
declining equity valuations. The Federal Reserve Board cut short-term
interest rates seven times from 5.25% to 2.0%.
o The municipal market underperformed U.S. Treasury issues, as credit
downgrades of the monoline insurers and disruption of the auction rate
securities market weighed heavily on the sector. Long-term municipal bond
yields were acutely affected. New issuance for the period was relatively
strong, despite a 12% decline in the past six months. More recently, the
pace has increased, alongside improved investor demand.
o The Fund's exposure to higher-yielding (primarily, longer-dated) holdings
detracted from relative performance, as these issues underperformed amid
substantial widening in credit spreads. The Fund's higher-quality insured
holdings -- which would typically benefit from a "flight-to-quality"
environment -- also came under pressure amid the turmoil in the monoline
insurance industry.
o On the positive side, an above-average yield helped mitigate the negative
effects of the unprecedented market volatility and contributed positively
to the Fund's total return. Additionally, we maintained a broadly
diversified portfolio with credits and coupon structures that are
attractive to the retail buyer. This proved advantageous, as strong retail
demand allowed us to sell select holdings at above-market prices.
Describe recent portfolio activity.
o Fund activity was limited during the reporting period, as a scarce supply
of new issues limited management's opportunities to restructure the
portfolio. Trading activity consisted primarily of opportunistically
feeding retail investor interest and adding higher-yielding securities in
order to increase the distribution rate of the Fund. In general, we
focused on purchasing bonds with higher credit ratings, while also looking
for select opportunities to add lower-quality investment-grade bonds at
attractively wide credit spreads.
Describe Fund positioning at period-end.
o The Fund ended the period with a slightly longer duration relative to its
Lipper peer group, a posture we believe will benefit from a recovering
municipal market, steadily slowing economy and declining yields.
The views expressed reflect the opinions of BlackRock as of the date of this
report and are subject to change based on changes in market, economic or other
conditions. These views are not intended to be a forecast of future events and
are no guarantee of future results.
6 ANNUAL REPORT MAY 31, 2008
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
and Investor A Shares compared to growth of an investment in the Lehman Brothers
Municipal Bond Index. Values are from May 1998 to May 2008:
Lehman Brothers
Municipal Bond
Institutional Shares(1,2) Investor A Shares(1,2) Index(3)
5/98 $10,000 $9,575 $10,000
5/99 $10,390 $9,923 $10,467
5/00 $9,803 $9,340 $10,377
5/01 $11,024 $10,477 $11,637
5/02 $11,654 $11,048 $12,394
5/03 $12,579 $11,895 $13,679
5/04 $12,593 $11,879 $13,674
5/05 $13,902 $13,081 $14,763
5/06 $14,368 $13,486 $15,042
5/07 $15,093 $14,131 $15,771
5/08 $15,225 $14,228 $16,381
1 Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
2 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.
3 This unmanaged Index consists of revenue bonds, pre-refunded bonds,
general obligation bonds and insured bonds.
Performance Summary for the Period Ended May 31, 2008
Average Annual Total Returns 1
--------------------------------------------------------------------
1 Year 5 Years 10 Years
-------------------- -------------------- --------------------
Standardized 6-Month w/o sales w/sales w/o sales w/sales w/o sales w/sales
30-Day Yields Total Returns charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ............... 3.92% 0.09% 0.88% -- 3.89% -- 4.29% --
Service ..................... 3.76 0.01 0.77 -- 3.64 -- 4.04 --
Investor A .................. 3.60 0.01 0.69 (3.59%) 3.65 2.75% 4.04 3.59%
Investor A1 ................. 3.75 (0.01) 0.83 (3.20) 3.80 2.96 4.20 3.77
Investor B .................. 3.08 (0.36) (0.06) (4.40) 2.88 2.53 3.27 3.27
Investor B1 ................. 3.51 (0.21) 0.43 (3.43) 3.38 3.04 3.77 3.77
Investor C .................. 3.01 (0.37) 0.03 (0.94) 2.87 2.87 3.27 3.27
Investor C1 ................. 3.41 (0.17) 0.33 (0.64) 3.28 3.28 3.67 3.67
Lehman Brothers Municipal
Bond Index ................ -- 1.44 3.87 -- 3.67 -- 5.06 --
- ------------------------------------------------------------------------------------------------------------------------------------
1 Assuming maximum sales charges. See "About Fund Performance" on pages 10
and 11 for a detailed description of share classes, including any related
sales charges and fees.
Past performance is not indicative of future results.
ANNUAL REPORT MAY 31, 2008 7
Fund Summary as of May 31, 2008 BlackRock Pennsylvania Municipal Bond Fund
Portfolio Management Commentary
How did the Fund perform?
o The Fund recently changed its fiscal year end to May 31. Fund performance
lagged the broad-market Lehman Brothers Municipal Bond Index for the
12-month period.
o The Fund's Institutional, Service, Investor A and Investor A1 shares
outperformed the Lipper Pennsylvania Municipal Debt Funds category average
for the 12-month period, while its Investor B, Investor B1, Investor C and
Investor C1 shares underperformed. 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 Pennsylvania.
What factors influenced performance?
o U.S. Treasury yields generally moved lower (while prices correspondingly
rose) during the year in response to weaker domestic economic growth and
declining equity valuations. The Federal Reserve Board cut short-term
interest rates seven times from 5.25% to 2.0%.
o The municipal market underperformed U.S. Treasury issues, as credit
downgrades of the monoline insurers and disruption of the auction rate
securities market weighed heavily on the sector. Long-term municipal bond
yields were acutely affected. New issuance for the period was relatively
strong, despite a 12% decline in the past six months. More recently, the
pace has increased, alongside improved investor demand.
o The Fund's slightly longer duration relative to its Lipper peer group
detracted from comparative results, as long-term municipal interest rates
rose during the reporting period.
o On the positive side, the Fund's performance versus its peers benefited
from a relatively higher yield. The Fund's higher yield was attributable
to its positions in derivatives (securities whose prices are dependent
upon or derived from one or more underlying assets) and its holdings in
bonds with higher coupon rates.
Describe recent portfolio activity.
o In an effort to take advantage of an improving municipal market, we
attempted to increase the Fund's duration to slightly above the level of
the Lipper peer group. A lack of new issuance in Pennsylvania did present
some challenges as it limited the supply of appropriate securities that
could have been added to the Fund.
o Nevertheless, we were able to sell certain shorter-maturity bonds, while
purchasing longer maturities that offered attractive long-term yields. In
addition, we engaged in some tax-loss swaps. In effect, we were willing to
take losses on the sale of selected 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 more attractive yields.
Describe Fund positioning at period-end.
o The Fund ended the reporting period with a slightly longer duration versus
its Lipper peer group.
The views expressed reflect the opinions of BlackRock as of the date of this
report and are subject to change based on changes in market, economic or other
conditions. These views are not intended to be a forecast of future events and
are no guarantee of future results.
8 ANNUAL REPORT MAY 31, 2008
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
and Investor A Shares compared to growth of an investment in the Lehman Brothers
Municipal Bond Index. Values are from May 1998 to May 2008:
Lehman Brothers
Municipal Bond
Institutional Shares(1,2) Investor A Shares(1,2) Index(3)
5/98 $10,000 $9,575 $10,000
5/99 $10,368 $9,903 $10,467
5/00 $10,092 $9,615 $10,377
5/01 $11,220 $10,663 $11,637
5/02 $11,962 $11,340 $12,394
5/03 $13,149 $12,435 $13,679
5/04 $13,200 $12,452 $13,674
5/05 $14,283 $13,439 $14,763
5/06 $14,613 $13,716 $15,042
5/07 $15,294 $14,319 $15,771
5/08 $15,506 $14,499 $16,381
1 Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
2 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.
3 This unmanaged Index consists of revenue bonds, pre-refunded bonds,
general obligation bonds and insured bonds.
Performance Summary for the Period Ended May 31, 2008
Average Annual Total Returns 1
--------------------------------------------------------------------
1 Year 5 Years 10 Years
-------------------- -------------------- --------------------
Standardized 6-Month w/o sales w/sales w/o sales w/sales w/o sales w/sales
30-Day Yields Total Returns charge charge charge charge charge charge
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ............... 4.26% 0.43% 1.39% -- 3.35% -- 4.48% --
Service ..................... 4.25 0.43 1.17 -- 3.12 -- 4.24 --
Investor A .................. 3.87 0.41 1.25 (3.05%) 3.12 2.23% 4.24 3.78%
Investor A1 ................. 4.01 0.48 1.30 (2.75) 3.25 2.41 4.39 3.97
Investor B .................. 4.36 0.15 0.70 (3.64) 2.39 2.05 3.48 3.48
Investor B1 ................. 3.79 0.19 0.89 (2.97) 2.83 2.50 3.96 3.96
Investor C .................. 3.28 (0.06) 0.39 (0.58) 2.35 2.35 3.46 3.46
Investor C1 ................. 3.68 0.13 0.79 (0.18) 2.73 2.73 3.86 3.86
Lehman Brothers Municipal
Bond Index ................ -- 1.44 3.87 -- 3.67 -- 5.06 --
- ------------------------------------------------------------------------------------------------------------------------------------
1 Assuming maximum sales charges. See "About Fund Performance" on pages 10
and 11 for a detailed description of share classes, including any related
sales charges and fees.
Past performance is not indicative of future results.
ANNUAL REPORT MAY 31, 2008 9
About Fund Performance
BlackRock Florida 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 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 the Investor A inception date of 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 A1
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 the Investor C inception date of 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.
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 the Service Shares
inception date of 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 the Investor A inception date of 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 seven years. (There is no initial sales charge
for automatic share conversions.) Prior to the Investor B inception date
of 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 A1
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 the Investor C inception date of 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 REPORT MAY 31, 2008
About Fund Performance (concluded)
For All Funds
Performance informance reflects past performance and does not guarantee future
results. Current performance may be lower or higher than the performance data
quoted. Refer to www.blackrock.com/funds to obtain performance data current to
the most recent month-end. Performance results do not reflect the deduction of
taxes that a shareholder would pay on fund distributions or the redemption of
fund shares. Figures shown in each of the performance tables on pages 5, 7 and 9
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 costs. 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. For BlackRock New Jersey Municipal Bond Fund and
BlackRock Pennsylvania Municipal Bond Fund, BlackRock Advisors, LLC, the Funds'
investment manager, agreed to reimburse a portion of their fee. Without such
reimbursement, the Funds' performance would have been lower.
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 expense examples on pages 12 and 13
(which are based on a hypothetical investment of $1,000 invested on December 1,
2007 and held through May 31, 2008) are intended to assist shareholders both in
calculating expenses based on an investment in each Fund and in comparing these
expenses with similar costs of investing in other mutual funds.
The tables provide information about actual account values and actual expenses.
In order to estimate the expenses a shareholder paid during the period covered
by this report, shareholders can divide their account value by $1,000 and then
multiply the result by the number corresponding to their share class under the
heading entitled "Expenses Paid During the Period."
The tables also provide information about hypothetical account values and
hypothetical expenses based on 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 tables are intended to highlight shareholders' ongoing
costs only and do not reflect any transactional expenses, such as sales charges,
redemption fees or exchange fees. Therefore, the hypothetical 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.
ANNUAL REPORT MAY 31, 2008 11
Disclosure of Expenses (continued)
BlackRock Florida Municipal Bond Fund (Including Interest Expense and Fees)
Actual Hypothetical 2
---------------------------------------------------- ----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
Dec. 1, 2007 May 31, 2008 During the Period 1 Dec. 1, 2007 May 31, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $ 998.10 $ 6.01 $ 1,000 $1,018.88 $ 6.07
Investor A ........ $ 1,000 $ 997.10 $ 6.95 $ 1,000 $1,017.94 $ 7.02
Investor A1 ....... $ 1,000 $ 997.60 $ 6.41 $ 1,000 $1,018.49 $ 6.47
Investor B ........ $ 1,000 $ 995.70 $ 8.48 $ 1,000 $1,016.40 $ 8.57
Investor C ........ $ 1,000 $ 993.10 $ 10.80 $ 1,000 $1,014.06 $ 10.92
Investor C1 ....... $ 1,000 $ 995.10 $ 8.93 $ 1,000 $1,015.95 $ 9.02
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.21 for Institutional, 1.40% for Investor A, 1.29%
for Investor A1, 1.71% for Investor B, 2.18% for Investor C and 1.80% for
Investor C1), multiplied by the average account value over the period,
multiplied by 182/366 (to reflect the one-half year period shown).
2 Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 366.
BlackRock Florida Municipal Bond Fund (Excluding Interest Expense and Fees)
Actual Hypothetical 2
---------------------------------------------------- ----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
Dec. 1, 2007 May 31, 2008 During the Period 1 Dec. 1, 2007 May 31, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $ 998.10 $ 4.42 $ 1,000 $1,020.47 $ 4.47
Investor A ........ $ 1,000 $ 997.10 $ 5.41 $ 1,000 $1,019.48 $ 5.47
Investor A1 ....... $ 1,000 $ 997.60 $ 4.87 $ 1,000 $1,020.03 $ 4.92
Investor B ........ $ 1,000 $ 995.70 $ 6.85 $ 1,000 $1,018.04 $ 6.92
Investor C ........ $ 1,000 $ 993.10 $ 9.42 $ 1,000 $1,015.45 $ 9.52
Investor C1 ....... $ 1,000 $ 995.10 $ 7.29 $ 1,000 $1,017.59 $ 7.37
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.89% for Institutional, 1.09% for Investor A, 0.98%
for Investor A1, 1.38% for Investor B, 1.90% for Investor C and 1.47% for
Investor C1), multiplied by the average account value over the period,
multiplied by 182/366 (to reflect the one-half year period shown).
2 Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 366.
BlackRock New Jersey Municipal Bond Fund (Including Interest Expense and Fees)
Actual Hypothetical 2
---------------------------------------------------- ----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
Dec. 1, 2007 May 31, 2008 During the Period 1 Dec. 1, 2007 May 31, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $1,000.90 $ 4.33 $ 1,000 $1,020.57 $ 4.37
Service ........... $ 1,000 $1,000.10 $ 5.17 $ 1,000 $1,019.73 $ 5.22
Investor A ........ $ 1,000 $1,000.10 $ 5.12 $ 1,000 $1,019.78 $ 5.17
Investor A1 ....... $ 1,000 $ 999.90 $ 4.43 $ 1,000 $1,020.47 $ 4.47
Investor B ........ $ 1,000 $ 996.40 $ 8.84 $ 1,000 $1,016.05 $ 8.92
Investor B1 ....... $ 1,000 $ 997.90 $ 6.46 $ 1,000 $1,018.44 $ 6.52
Investor C ........ $ 1,000 $ 996.30 $ 8.79 $ 1,000 $1,016.10 $ 8.87
Investor C1 ....... $ 1,000 $ 998.30 $ 6.91 $ 1,000 $1,017.99 $ 6.97
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.87% for Institutional, 1.04% for Service, 1.03% for
Investor A, 0.89% for Investor A1, 1.78% for Investor B, 1.30% for
Investor B1, 1.77% for Investor C and 1.39% for Investor C1), multiplied
by the average account value over the period, multiplied by 182/366 (to
reflect the one-half year period shown).
2 Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 366.
12 ANNUAL REPORT MAY 31, 2008
Disclosure of Expenses (concluded)
BlackRock New Jersey Municipal Bond Fund (Excluding Interest Expense and Fees)
Actual Hypothetical 2
---------------------------------------------------- ----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
Dec. 1, 2007 May 31, 2008 During the Period 1 Dec. 1, 2007 May 31, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $1,000.90 $ 3.33 $ 1,000 $1,021.57 $ 3.37
Service ........... $ 1,000 $1,000.10 $ 4.23 $ 1,000 $1,020.67 $ 4.27
Investor A ........ $ 1,000 $1,000.10 $ 4.23 $ 1,000 $1,020.67 $ 4.27
Investor A1 ....... $ 1,000 $ 999.90 $ 3.48 $ 1,000 $1,021.42 $ 3.52
Investor B ........ $ 1,000 $ 996.40 $ 7.84 $ 1,000 $1,017.04 $ 7.92
Investor B1 ....... $ 1,000 $ 997.90 $ 5.41 $ 1,000 $1,019.48 $ 5.47
Investor C ........ $ 1,000 $ 996.30 $ 7.89 $ 1,000 $1,016.99 $ 7.97
Investor C1 ....... $ 1,000 $ 998.30 $ 5.91 $ 1,000 $1,018.98 $ 5.97
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.67% for Institutional, 0.85% for Service, 0.85% for
Investor A, 0.70% for Investor A1, 1.58% for Investor B, 1.09% for
Investor B1, 1.59% for Investor C and 1.19% for Investor C1), multiplied
by the average account value over the period, multiplied by 182/366 (to
reflect the one-half year period shown).
2 Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 366.
BlackRock Pennsylvania Municipal Bond Fund (Including Interest Expense and Fees)
Actual Hypothetical 2
---------------------------------------------------- ----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
Dec. 1, 2007 May 31, 2008 During the Period 1 Dec. 1, 2007 May 31, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $1,004.30 $ 4.44 $ 1,000 $1,020.47 $ 4.47
Service ........... $ 1,000 $1,004.30 $ 5.48 $ 1,000 $1,019.43 $ 5.52
Investor A ........ $ 1,000 $1,004.10 $ 5.58 $ 1,000 $1,019.33 $ 5.62
Investor A1 ....... $ 1,000 $1,004.80 $ 4.88 $ 1,000 $1,020.03 $ 4.92
Investor B ........ $ 1,000 $1,001.50 $ 8.21 $ 1,000 $1,016.70 $ 8.27
Investor B1 ....... $ 1,000 $1,001.90 $ 6.87 $ 1,000 $1,018.04 $ 6.92
Investor C ........ $ 1,000 $ 999.40 $ 9.15 $ 1,000 $1,015.75 $ 9.22
Investor C1 ....... $ 1,000 $1,001.30 $ 7.36 $ 1,000 $1,017.54 $ 7.42
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.89% for Institutional, 1.10% for Service, 1.12% for
Investor A, 0.98% for Investor A1, 1.65% for Investor B, 1.38% for
Investor B1, 1.84% for Investor C and 1.48% for Investor C1), multiplied
by the average account value over the period, multiplied by 182/366 (to
reflect the one-half year period shown).
2 Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 366.
BlackRock Pennsylvania Municipal Bond Fund (Excluding Interest Expense and Fees)
Actual Hypothetical 2
---------------------------------------------------- ----------------------------------------------------
Beginning Ending Beginning Ending
Account Value Account Value Expenses Paid Account Value Account Value Expenses Paid
Dec. 1, 2007 May 31, 2008 During the Period 1 Dec. 1, 2007 May 31, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $1,004.30 $ 3.04 $ 1,000 $1,021.87 $ 3.07
Service ........... $ 1,000 $1,004.30 $ 3.99 $ 1,000 $1,020.92 $ 4.02
Investor A ........ $ 1,000 $1,004.10 $ 4.19 $ 1,000 $1,020.72 $ 4.22
Investor A1 ....... $ 1,000 $1,004.80 $ 3.49 $ 1,000 $1,021.42 $ 3.52
Investor B ........ $ 1,000 $1,001.50 $ 6.77 $ 1,000 $1,018.14 $ 6.82
Investor B1 ....... $ 1,000 $1,001.90 $ 5.43 $ 1,000 $1,019.48 $ 5.47
Investor C ........ $ 1,000 $ 999.40 $ 7.90 $ 1,000 $1,016.99 $ 7.97
Investor C1 ....... $ 1,000 $1,001.30 $ 5.92 $ 1,000 $1,018.98 $ 5.97
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.61% for Institutional, 0.80% for Service, 0.84% for
Investor A, 0.70% for Investor A1, 1.36% for Investor B, 1.09% for
Investor B1, 1.59% for Investor C and 1.19% for Investor C1), multiplied
by the average account value over the period, multiplied by 182/366 (to
reflect the one-half year period shown).
2 Hypothetical 5% annual return before expenses is calculated by pro-rating
the number of days in the most recent fiscal half year divided by 366.
ANNUAL REPORT MAY 31, 2008 13
Portfolio Information as of May 31, 2008
BlackRock Florida Municipal Bond Fund
Percent of
Distribution by Market Sector Long-Term Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds .................................................. 85%
General Obligation Bonds ............................................. 7
Pre-refunded Bonds 1 ................................................. 8
- --------------------------------------------------------------------------------
Credit Ratings by Percent of
S&P/Moody's 2 Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa .............................................................. 36%
AA/Aa ................................................................ 4
A/A .................................................................. 16
BBB/Baa .............................................................. 14
Not Rated ............................................................ 27
Other 3 .............................................................. 3
- --------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund
Percent of
Distribution by Market Sector Long-Term Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds .................................................. 70%
General Obligation Bonds ............................................. 19
Pre-refunded Bonds 1 ................................................. 11
- --------------------------------------------------------------------------------
Quality Ratings by Percent of
S&P/Moody's 2 Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa .............................................................. 56%
AA/Aa ................................................................ 10
A/A .................................................................. 8
BBB/Baa .............................................................. 12
BB/Ba ................................................................ 1
B/B .................................................................. 1
CCC/Caa .............................................................. 1
Not Rated ............................................................ 11
- --------------------------------------------------------------------------------
BlackRock Pennsylvania Municipal Bond Fund
Percent of
Distribution by Market Sector Long-Term Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds .................................................. 69%
General Obligation Bonds ............................................. 30
Pre-refunded Bonds 1 ................................................. 1
- --------------------------------------------------------------------------------
1 Backed by an escrow fund.
Quality Ratings by Percent of
S&P/Moody's 2 Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa .............................................................. 46%
AA/Aa ................................................................ 23
A/A .................................................................. 7
BBB/Baa .............................................................. 10
BB/Ba ................................................................ 1
Not Rated ............................................................ 13
- --------------------------------------------------------------------------------
2 Using the higher of Standard & Poor's or Moody's Investors Service
ratings.
3 Includes portfolio holdings in mutual funds.
14 ANNUAL REPORT MAY 31, 2008
Schedule of Investments May 31, 2008 BlackRock Florida Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================
Florida -- 79.6%
- ---------------------------------------------------------------------------------------------
Altamonte Springs, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health
Systems -- Sunbelt), 7%, 10/01/14 (a) $ 1,095 $ 1,326,275
- ---------------------------------------------------------------------------------------------
Ballantrae, Florida, Community Development District,
Capital Improvement Revenue Bonds, 6%, 5/01/35 1,195 1,189,085
- ---------------------------------------------------------------------------------------------
Broward County, Florida, HFA, S/F Mortgage Revenue
Refunding Bonds, AMT, Series E, 5.90%,
10/01/39 (b)(c) 1,000 1,014,580
- ---------------------------------------------------------------------------------------------
Capital Trust Agency, Florida, Air Cargo Revenue
Bonds, AMT, 6.25%, 1/01/19 535 533,529
- ---------------------------------------------------------------------------------------------
Citrus County, Florida, Hospital Board Revenue
Refunding Bonds (Citrus Memorial Hospital):
6.25%, 8/15/23 900 938,799
6.375%, 8/15/32 1,500 1,546,275
- ---------------------------------------------------------------------------------------------
Cypress Lakes, Florida, Community Development
District, Special Assessment Bonds, Series A,
6%, 5/01/34 1,000 993,440
- ---------------------------------------------------------------------------------------------
Fiddlers Creek, Florida, Community Development
District Number 2, Special Assessment Revenue
Bonds, Series A, 6.375%, 5/01/35 1,500 1,402,410
- ---------------------------------------------------------------------------------------------
Florida HFA, Homeowner Mortgage Revenue Bonds,
AMT, Series 3, 6.35%, 7/01/28 (d)(e) 870 910,585
- ---------------------------------------------------------------------------------------------
Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Bonds, AMT, Series 1, 6%,
7/01/39 (b)(c) 250 254,360
- ---------------------------------------------------------------------------------------------
Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25%, 7/01/22 (f) 430 449,647
- ---------------------------------------------------------------------------------------------
Florida State Board of Education, Lottery Revenue
Bonds (g)(h):
DRIVERS, Series 222,10.61%, 7/01/17 1,383 1,629,988
PUTTERS, VRDN, Series 222Z, 1.62%, 7/01/17 1,380 1,380,000
- ---------------------------------------------------------------------------------------------
Greater Orlando Aviation Authority, Florida, Airport
Facilities Revenue Bonds (JetBlue Airways Corp.),
AMT, 6.375%, 11/15/26 1,000 818,910
- ---------------------------------------------------------------------------------------------
Harbor Bay, Florida, Community Development District,
Capital Improvement Special Assessment Revenue
Bonds, Series A, 7%, 5/01/33 960 1,000,166
- ---------------------------------------------------------------------------------------------
Heritage Harbour North Community Development
District, Florida, Capital Improvement Bonds,
6.375%, 5/01/38 500 447,340
- ---------------------------------------------------------------------------------------------
Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System),
Series C, 5.25%, 11/15/36 1,250 1,228,212
- ---------------------------------------------------------------------------------------------
Hillsborough County, Florida, Aviation Authority
Revenue Bonds, AMT, Series A, 5.50%, 10/01/38 (i) 1,310 1,323,270
- ---------------------------------------------------------------------------------------------
Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT:
Series A, 7.125%, 4/01/30 1,000 970,300
Series B, 7.125%, 4/01/30 1,750 1,698,025
- ---------------------------------------------------------------------------------------------
Hillsborough County, Florida, IDA, PCR, Refunding
(Tampa Electric Company Project), Series A,
5.65%, 5/15/18 (s) 400 404,296
- ---------------------------------------------------------------------------------------------
Jacksonville Electric Authority, Florida, Saint John's
River Power Park System Revenue Bonds, Issue Three,
Series 2, 5%, 10/01/37 700 711,445
- ---------------------------------------------------------------------------------------------
Jacksonville, Florida, Economic Development
Commission, Health Care Facilities Revenue Bonds
(Mayo Clinic -- Jacksonville):
Series A, 5.50%, 11/15/36 1,000 1,014,830
Series A, 5.50%, 11/15/36 (d) 1,000 1,041,690
Series B, 5.50%, 11/15/36 2,000 2,029,660
Series B, 5.50%, 11/15/36 (d) 410 427,093
- ---------------------------------------------------------------------------------------------
Jacksonville, Florida, Economic Development
Commission, IDR (Metropolitan Parking Solutions
Project), AMT, 5.875%, 6/01/31 (j) 2,050 1,940,140
- ---------------------------------------------------------------------------------------------
Jacksonville, Florida, Guaranteed Entitlement Revenue
Refunding and Improvement Bonds,
5.25%, 10/01/32 (h) 1,200 1,219,428
- ---------------------------------------------------------------------------------------------
Jacksonville, Florida, HFA, Homeowner Mortgage
Revenue Refunding Bonds, AMT, Series A-1, 5.625%,
10/01/39 (b)(c) 750 746,760
- ---------------------------------------------------------------------------------------------
Jacksonville, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Baptist Medical Center
Project), 5%, 8/15/37 (f) 1,000 1,005,790
- ---------------------------------------------------------------------------------------------
Lee County, Florida, HFA, S/F Mortgage Revenue
Bonds (Multi-County Program), AMT, Series A-2, 6%,
9/01/40 (b)(c) 1,000 1,039,270
- ---------------------------------------------------------------------------------------------
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of Investments,
the names of many of the securities have been abbreviated according to the list
on the 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
PUTTERS Puttable Tax-Exempt Receipts
S/F Single-Family
VRDN Variable Rate Demand Notes
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 15
Schedule of Investments (continued) BlackRock Florida Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================
Florida (continued)
- ---------------------------------------------------------------------------------------------
Manatee County, Florida, HFA, Homeowner Revenue
Bonds, AMT, Series A, 5.90%, 9/01/40 (b)(c) $ 750 $ 751,898
- ---------------------------------------------------------------------------------------------
Martin County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Martin Memorial Medical
Center), Series A, 5.875%, 11/15/12 (k) 2,320 2,601,694
- ---------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Expressway Authority, Toll
System Revenue Bonds, Series B (h):
5.25%, 7/01/26 2,495 2,577,460
5%, 7/01/33 3,450 3,420,606
- ---------------------------------------------------------------------------------------------
Miami-Dade County, Florida, HFA, Home Ownership
Mortgage Revenue Bonds, AMT, Series A, 5.55%,
10/01/49 (b)(c) 1,000 990,210
- ---------------------------------------------------------------------------------------------
Miami-Dade County, Florida, School Board, COP,
Refunding, Series B, 5.25%, 5/01/30 (i) 815 832,025
- ---------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Solid Waste System
Revenue Bonds, 5.25%, 10/01/30 (d) 1,250 1,269,675
- ---------------------------------------------------------------------------------------------
Middle Village Community Development District,
Florida, Special Assessment Bonds, Series A,
6%, 5/01/35 1,000 909,720
- ---------------------------------------------------------------------------------------------
Midtown Miami, Florida, Community Development
District, Special Assessment Revenue Bonds, Series A,
6.25%, 5/01/37 1,000 926,010
- ---------------------------------------------------------------------------------------------
Oak Creek, Florida, Community Development District,
Special Assessment Bonds, 5.80%, 5/01/35 960 857,222
- ---------------------------------------------------------------------------------------------
Orange County, Florida, Health Facilities Authority,
First Mortgage Revenue Bonds (Orlando Lutheran
Towers), 5.50%, 7/01/38 500 424,445
- ---------------------------------------------------------------------------------------------
Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional
Healthcare), 6%, 12/01/12 (k) 2,705 3,026,652
- ---------------------------------------------------------------------------------------------
Orlando, Florida, Urban Community Development
District, Capital Improvement Special
Assessment Bonds:
6.25%, 5/01/34 1,000 909,690
Series A, 6.95%, 5/01/11 (k) 930 1,030,245
- ---------------------------------------------------------------------------------------------
Osceola County, Florida, Tourist Development Tax
Revenue Bonds, Series A, 5.50%, 10/01/27 (h) 925 966,588
- ---------------------------------------------------------------------------------------------
Palm Beach County, Florida, School Board, COP,
Series A, 5%, 8/01/29 (d)(h) 1,000 1,007,850
- ---------------------------------------------------------------------------------------------
Park Place Community Development District, Florida,
Special Assessment Revenue Bonds:
6.75%, 5/01/32 500 517,470
6.375%, 5/01/34 980 967,093
- ---------------------------------------------------------------------------------------------
Pasco County, Florida, Health Facilities Authority,
Gross Revenue Bonds (Adventist Health
System -- Sunbelt), 7%, 10/01/14 (a) 2,080 2,480,629
- ---------------------------------------------------------------------------------------------
Saint Johns County, Florida, Sales Tax Revenue Bonds,
Series A, 5.25%, 10/01/28 (l) 1,000 1,030,320
- ---------------------------------------------------------------------------------------------
Saint Johns County, Florida, Water and Sewer
Revenue Bonds, CABS, 5.368%, 6/01/32 (l)(m) 2,295 601,129
- ---------------------------------------------------------------------------------------------
Santa Rosa County, Florida, School Board, COP,
Refunding, Series 2, 5.25%, 2/01/26 (h) 2,000 2,044,160
- ---------------------------------------------------------------------------------------------
South Kendall, Florida, Community Development
District, Special Assessment Bonds, Series A,
5.90%, 5/01/35 955 934,783
- ---------------------------------------------------------------------------------------------
South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital Inc.):
5.80%, 10/01/34 1,000 1,009,240
6.375%, 10/01/34 995 1,014,442
- ---------------------------------------------------------------------------------------------
Sterling Hill Community Development District, Florida,
Capital Improvement Revenue Refunding Bonds,
Series B, 5.50%, 11/01/10 185 183,180
- ---------------------------------------------------------------------------------------------
Suncoast Community Development District, Florida,
Capital Improvement Revenue Bonds, Series A,
5.875%, 5/01/34 590 576,542
- ---------------------------------------------------------------------------------------------
Tolomato Community Development District, Florida,
Special Assessment Bonds, 6.55%, 5/01/27 850 831,037
- ---------------------------------------------------------------------------------------------
University of Central Florida Athletics Association Inc.,
COP, Series A, 5.25%, 10/01/34 (h) 2,860 2,855,739
- ---------------------------------------------------------------------------------------------
University of Central Florida, COP (UCF Convocation
Center), Series A, 5%, 10/01/35 (h) 1,600 1,500,304
- ---------------------------------------------------------------------------------------------
Village Center Community Development District,
Florida, Utility Revenue Bonds, 5.125%, 10/01/28 (d) 1,000 1,024,640
- ---------------------------------------------------------------------------------------------
Vista Lakes Community Development District, Florida,
Capital Improvement Revenue Bonds, Series A,
6.75%, 5/01/12 (k) 1,405 1,576,789
- ---------------------------------------------------------------------------------------------
Volusia County, Florida, IDA, Student Housing Revenue
Bonds (Stetson University Project), Series A, 5%,
6/01/35 (n) 1,000 995,590
- ---------------------------------------------------------------------------------------------
Watergrass Community Development District, Florida,
Special Assessment Revenue Bonds, Series B,
5.125%, 11/01/14 1,000 902,390
------------
76,183,065
- ---------------------------------------------------------------------------------------------
=============================================================================================
New Jersey -- 1.0%
- ---------------------------------------------------------------------------------------------
New Jersey EDA, Cigarette Tax Revenue Bonds,
5.75%, 6/15/34 1,020 991,817
- ---------------------------------------------------------------------------------------------
=============================================================================================
Puerto Rico -- 4.9%
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Aqueduct and Sewer
Authority, Senior Lien Revenue Bonds, Series A,
6%, 7/01/44 2,200 2,326,060
- ---------------------------------------------------------------------------------------------
Puerto Rico Industrial, Tourist, Educational, Medical
and Environmental Control Facilities Revenue Bonds
(Cogeneration Facility -- AES Puerto Rico Project), AMT,
6.625%, 6/01/26 1,365 1,401,282
- ---------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series I, 5%,
7/01/36 (o) 1,000 979,270
------------
4,706,612
- ---------------------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $81,068,782) -- 85.5% 81,881,494
=============================================================================================
See Notes to Financial Statements.
16 ANNUAL REPORT MAY 31, 2008
Schedule of Investments (concluded) BlackRock Florida Municipal Bond Fund
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to Tender Par
Option Bond Trusts (p) (000) Value
=============================================================================================
Florida -- 21.7%
- ---------------------------------------------------------------------------------------------
Florida State Board of Education, Lottery Revenue
Bonds, Series B, 6.25%, 7/01/10 (h)(k) $ 7,235 $ 7,882,586
- ---------------------------------------------------------------------------------------------
Florida State Turnpike Authority, Turnpike Revenue
Bonds (Department of Transportation), Series A,
6.25%, 7/01/10 (h)(k) 5,000 5,447,600
- ---------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Aviation Revenue Bonds,
AMT, Series A, 5%, 10/01/33 (f) 1,435 1,340,092
- ---------------------------------------------------------------------------------------------
Palm Beach County Florida School Board Certificates
of Participation, Series A, 5%, 8/01/31 (f) 1,000 1,017,703
- ---------------------------------------------------------------------------------------------
South Broward, Florida, Hospital District, Hospital
Revenue Bonds, 5.625%, 5/01/32 (d) 4,640 5,123,488
- ---------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to Tender
Option Bond Trusts (Cost -- $20,361,843) -- 21.7% 20,811,469
=============================================================================================
Mutual Funds Shares Value
=============================================================================================
BlackRock Florida Insured Municipal 2008
Term Trust (q) 211,000 3,120,690
- ---------------------------------------------------------------------------------------------
Total Mutual Funds (Cost -- $3,495,538) -- 3.3% 3,120,690
=============================================================================================
=============================================================================================
Short-Term Securities
=============================================================================================
CMA Florida Municipal Money Fund, 1.02% (q)(r) 5,827 5,827
- ---------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $5,827) -- 0.0% 5,827
=============================================================================================
Total Investments (Cost -- $104,931,990*) -- 110.5% 105,819,480
Liabilities in Excess of Other Assets -- (0.2%) (198,465)
Liability for Trust Certificates, Including
Interest Expense and Fees Payable -- (10.3%) (9,894,186)
------------
Net Assets -- 100.0% $ 95,726,829
============
* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2008 as computed for federal income tax purposes, were as follows:
Aggregate cost .......................................... $ 95,690,605
============
Gross unrealized appreciation ........................... $ 2,647,397
Gross unrealized depreciation ........................... (2,326,286)
------------
Net unrealized appreciation ............................. $ 321,111
============
(a) Security is collateralized by municipal or U.S. Treasury obligations.
(b) FNMA/GNMA Collateralized.
(c) FHLMC Collateralized.
(d) MBIA Insured.
(e) FHA Insured.
(f) FSA Insured.
(g) Variable rate security. Rate shown is as of report date. Maturity shown is
the final maturity date.
(h) FGIC Insured.
(i) Assured Guaranty Insured.
(j) ACA Insured.
(k) U.S. government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(l) AMBAC Insured.
(m) Represents a zero coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(n) CIFG Insured.
(o) Commonwealth Guaranteed.
(p) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of
the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(q) 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 Sales Realized Dividend
Affiliate Cost Cost Gain Income
--------------------------------------------------------------------------
BlackRock Florida Insured
Municipal 2008 Term Trust -- -- -- $64,686
CMA Florida Municipal
Money Fund $697 1 -- -- $ 684
--------------------------------------------------------------------------
1 Represents net purchase cost.
(r) Represents the current yield as of report date.
(s) When-issued security.
o Forward interest rate swaps outstanding as of May 31, 2008 were as
follows:
------------------------------------------------------------------------------------
Notional
Amount Unrealized
(000) Appreciation
------------------------------------------------------------------------------------
Pay a fixed rate of 3.553% and receive a floating rate
based on 1-week SIMFA Municipal Swap Index
Broker, Lehman Brothers Special Financing
Expires June 2023 $5,400 $78,457
------------------------------------------------------------------------------------
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 17
Schedule of Investments May 31, 2008 BlackRock New Jersey Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================
New Jersey -- 76.8%
- ---------------------------------------------------------------------------------------------
Burlington County, New Jersey, Bridge Commission,
EDR, Refunding (The Evergreens Project),
5.625%, 1/01/38 $ 1,850 $ 1,701,112
- ---------------------------------------------------------------------------------------------
Camden County, New Jersey, Pollution Control
Financing Authority, Solid Waste Resource Recovery,
Revenue Refunding Bonds, AMT:
Series A, 7.50%, 12/01/10 340 340,894
Series B, 7.50%, 12/01/09 80 80,227
- ---------------------------------------------------------------------------------------------
Cape May Point, New Jersey, GO, 5.70%, 3/15/13 750 784,927
- ---------------------------------------------------------------------------------------------
Delaware River and Bay Authority, Revenue
Refunding Bonds, 5%, 1/01/28 (a) 1,000 1,015,090
- ---------------------------------------------------------------------------------------------
Delaware River Joint Toll Bridge Commission of New
Jersey and Pennsylvania, Bridge Revenue Refunding
Bonds, 5%, 7/01/24 2,450 2,495,006
- ---------------------------------------------------------------------------------------------
Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds, 5.75%, 1/01/26 (b) 15,000 15,440,850
- ---------------------------------------------------------------------------------------------
Delaware River Port Authority of Pennsylvania and
New Jersey, Revenue Refunding Bonds (Port District
Project), Series A, 5.20%, 1/01/27 (b) 350 363,177
- ---------------------------------------------------------------------------------------------
Garden State Preservation Trust of New Jersey,
Capital Appreciation Revenue Bonds, Series B,
5.24%, 11/01/27 (b)(c) 4,135 1,575,807
- ---------------------------------------------------------------------------------------------
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (b):
5.80%, 11/01/22 1,640 1,845,689
5.75%, 11/01/28 2,080 2,446,371
- ---------------------------------------------------------------------------------------------
Garden State Preservation Trust of New Jersey
Revenue Bonds, Series B, 5.17%, 11/01/24 (b)(c) 10,000 4,516,500
- ---------------------------------------------------------------------------------------------
Gloucester County, New Jersey, Improvement
Authority, Lease Revenue Bonds, Series A, 5%,
7/15/23 (a) 250 258,315
- ---------------------------------------------------------------------------------------------
Hopatcong Boro, New Jersey, GO, 5.75%,
8/01/13 (d)(e) 2,300 2,588,604
- ---------------------------------------------------------------------------------------------
Knowlton Township, New Jersey, Board of Education,
GO, 6.60%, 8/15/11 169 188,340
- ---------------------------------------------------------------------------------------------
Middlesex County, New Jersey, COP, Refunding, 5%,
8/01/22 (a) 200 206,128
- ---------------------------------------------------------------------------------------------
Middlesex County, New Jersey, Improvement
Authority, County-Guaranteed Revenue Bonds (Golf
Course Projects), 5.25%, 6/01/26 1,705 1,789,892
- ---------------------------------------------------------------------------------------------
Middlesex County, New Jersey, Improvement
Authority Revenue Bonds (New Brunswick
Apartments Rental Housing), AMT, 5.15%,
2/01/24 (f) 2,965 2,955,304
- ---------------------------------------------------------------------------------------------
Middlesex County, New Jersey, Improvement
Authority, Senior Revenue Bonds (Heldrich Center
Hotel/Conference Project), Series A:
5%, 1/01/15 1,000 952,460
5%, 1/01/20 1,000 908,730
- ---------------------------------------------------------------------------------------------
Middlesex County, New Jersey, Pollution Control
Financing Authority, Revenue Refunding Bonds
(Amerada Hess Corporation), 6.05%, 9/15/34 1,000 997,930
- ---------------------------------------------------------------------------------------------
New Jersey EDA, Cigarette Tax Revenue Bonds:
5.625%, 6/15/19 520 518,508
5.75%, 6/15/29 790 774,864
5.75%, 6/15/29 (g) 1,000 1,050,890
5.50%, 6/15/31 (h) 125 127,764
5.75%, 6/15/34 3,845 3,738,763
- ---------------------------------------------------------------------------------------------
New Jersey EDA, EDR (Masonic Charity Foundation
of New Jersey):
5.25%, 6/01/24 875 905,546
5.25%, 6/01/32 500 507,900
- ---------------------------------------------------------------------------------------------
New Jersey EDA, EDR, Refunding:
(Burlington Coat Factory), 6.125%, 9/01/10 115 115,147
(Kapkowski Road Landfill Reclamation
Improvement District Project), 6.50%, 4/01/28 2,500 2,577,425
(The Seeing Eye, Inc. Project), 5%, 12/01/24 (e) 6,500 6,724,900
- ---------------------------------------------------------------------------------------------
New Jersey EDA, EDR (The Seeing Eye, Inc.), 6.20%,
12/01/09 (d) 3,000 3,220,530
- ---------------------------------------------------------------------------------------------
New Jersey EDA, First Mortgage Revenue Bonds:
(Lions Gate Project), Series A,
5.875%, 1/01/37 1,000 880,950
(The Presbyterian Home), Series A,
6.375%, 11/01/31 1,330 1,303,001
(The Presbyterian Home), Series B,
5.75%, 11/01/31 1,630 1,624,034
- ---------------------------------------------------------------------------------------------
New Jersey EDA, First Mortgage Revenue Refunding
Bonds, Series A:
(Fellowship Village), 5.30%, 1/01/10 585 597,332
(The Winchester Gardens at Ward Homestead
Project), 5.80%, 11/01/31 1,500 1,481,760
- ---------------------------------------------------------------------------------------------
New Jersey EDA, IDR, Refunding (Newark Airport
Marriott Hotel), 7%, 10/01/14 1,250 1,257,875
- ---------------------------------------------------------------------------------------------
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A (a):
4.95%, 7/01/21 (c) 1,675 888,990
5%, 7/01/29 2,100 2,125,158
- ---------------------------------------------------------------------------------------------
New Jersey EDA, PCR (Public Service Electric & Gas
Co.), AMT, Series A, 6.40%, 5/01/32 (a) 100 100,865
- ---------------------------------------------------------------------------------------------
New Jersey EDA, Retirement Community Revenue
Bonds (Cedar Crest Village Inc. Facility), Series A,
7.25%, 11/15/11 (d) 425 488,270
- ---------------------------------------------------------------------------------------------
New Jersey EDA, Retirement Community Revenue
Refunding Bonds (Seabrook Village, Inc.):
5.25%, 11/15/26 2,000 1,773,680
5.25%, 11/15/36 600 508,740
- ---------------------------------------------------------------------------------------------
New Jersey EDA, Revenue Bonds:
(American Airlines Inc. Project), AMT,
7.10%, 11/01/31 1,075 708,232
(Motor Vehicle Commission), Series A, 3.52%,
7/01/12 (a)(c) 4,000 3,462,920
(New Jersey Performing Arts Center Project),
Series C, 5.75%, 6/15/08 (e) 780 781,115
(Newark Downtown District Management
Corporation), 5.125%, 6/15/37 350 313,401
(Saint Barnabas Medical Center Project),
Series A, 5.625%, 7/01/23 (a)(c) 4,000 1,893,280
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
18 ANNUAL REPORT MAY 31, 2008
Schedule of Investments (continued) BlackRock New Jersey Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================
New Jersey (continued)
- ---------------------------------------------------------------------------------------------
New Jersey EDA, School Facilities Construction
Revenue Bonds:
Series G, 5%, 9/01/13 (d)(e) $ 2,500 $ 2,727,625
Series O, 5.25%, 3/01/23 1,590 1,674,747
Series U, 5%, 9/01/37 (e) 1,000 1,024,490
- ---------------------------------------------------------------------------------------------
New Jersey EDA, Solid Waste Disposal Facilities
Revenue Bonds (Waste Management Inc.), AMT,
Series A, 5.30%, 6/01/15 2,000 1,992,900
- ---------------------------------------------------------------------------------------------
New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT,
6.25%, 9/15/19 3,000 2,578,980
- ---------------------------------------------------------------------------------------------
New Jersey EDA, State Contract Revenue Refunding
Bonds (Economic Fund), Series A, 5.25%,
3/15/21 (a)(c) 2,000 1,076,720
- ---------------------------------------------------------------------------------------------
New Jersey EDA, Water Facilities Revenue Bonds
(New Jersey -- American Water Company, Inc. Project),
AMT, Series A:
5.25%, 11/01/32 (e) 1,250 1,229,663
6.875%, 11/01/34 (i) 100 101,194
- ---------------------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority
Revenue Bonds:
(Avalon at Hillsborough), AMT, Series A,
6.625%, 7/01/35 500 475,875
(Children's Specialized Hospital), Series A,
5.50%, 7/01/36 460 428,338
(Hunterdon Medical Center), Series A,
5.25%, 7/01/25 750 768,825
(Hunterdon Medical Center), Series A,
5.125%, 7/01/35 1,100 1,083,313
(Kennedy Health System), 5.50%, 7/01/21 2,000 2,034,460
(Kennedy Health System), 5.625%, 7/01/31 455 459,009
(Meridian Health), Series I, 5%, 7/01/38 (g) 2,425 2,453,639
(Pascack Valley Hospital Association),
6%, 7/01/13 830 536,595
(RWJ Healthcare Corporation), Series B, 5%,
7/01/25 (h) 250 253,713
(Robert Wood Johnson University Hospital),
5.75%, 7/01/25 2,650 2,740,233
(South Jersey Hospital), 6%, 7/01/12 (d) 1,500 1,665,705
- ---------------------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds:
(Atlantic City Medical Center), 6.25%,
7/01/12 (d) 405 455,086
(Atlantic City Medical Center), 6.25%, 7/01/17 505 546,233
(Bayshore Community Hospital), 5.125%,
7/01/32 (h) 1,500 1,456,500
(Capital Health System Inc.), Series A,
5.75%, 7/01/23 600 612,942
(General Hospital Center at Passaic), 6.75%,
7/01/19 (b)(j) 125 151,315
(Hackensack University Medical Center), 5.25%,
1/01/36 (g) 3,600 3,731,544
(Saint Barnabas Health Care System), Series A,
5%, 7/01/29 3,940 3,691,031
(Saint Barnabas Health Care System), Series B,
5.92%, 7/01/30 (c) 4,500 977,085
(Saint Barnabas Health Care System), Series B,
5.72%, 7/01/36 (c) 7,360 1,028,781
(Saint Barnabas Health Care System), Series B,
5.79%, 7/01/37 (c) 7,000 904,610
(Saint Joseph's Hospital and Medical Center),
Series A, 6%, 7/01/26 (k) 150 150,276
(South Jersey Hospital System), 5%, 7/01/36 1,000 976,360
(South Jersey Hospital System), 5%, 7/01/46 3,200 3,073,216
- ---------------------------------------------------------------------------------------------
New Jersey Sports and Exposition Authority, Luxury Tax
Revenue Refunding Bonds (Convention Center),
5.50%, 3/01/21 (a) 805 900,521
- ---------------------------------------------------------------------------------------------
New Jersey Sports and Exposition Authority, State
Contract Revenue Bonds, Series A (a):
5.50%, 3/01/10 (d) 1,930 2,036,343
5.50%, 3/01/20 3,070 3,182,331
- ---------------------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority
Revenue Bonds:
(Fairleigh Dickinson University), Series D, 5.25%,
7/01/32 (l) 2,800 2,608,172
(Georgian Court College Project), Series C, 6.50%,
7/01/13 (d) 750 869,108
(Kean University), Series D, 5.25%, 7/01/13 (d)(i) 250 275,105
(Montclair State University), Series F, 5%,
7/01/11 (d)(i) 500 530,925
(New Jersey Institute of Technology), Series G,
5.25%, 7/01/19 (a) 1,000 1,043,300
(Public Library Project Grant Issue), Series A,
5.50%, 9/01/19 (e) 1,120 1,189,978
(Richard Stockton College), Series F, 5%,
7/01/31 (a) 500 509,300
(Rowan University), Series C, 5%, 7/01/14 (a)(d) 650 713,843
(Rowan University), Series C, 5.125%,
7/01/14 (a)(d) 715 790,132
- ---------------------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds:
(College of New Jersey), Series D, 5%,
7/01/35 (b) 1,000 1,032,770
(Georgian Court University), Series D,
5%, 7/01/33 500 477,295
(Ramapo College), Series I, 4.25%, 7/01/36 (e) 295 264,662
(Rowan University), Series B, 5%, 7/01/27 (g) 1,250 1,306,363
(Rowan University), Series B, 4.25%, 7/01/34 (i) 1,950 1,723,059
(Stevens Institute of Technology), Series A,
5%, 7/01/34 1,400 1,267,686
- ---------------------------------------------------------------------------------------------
New Jersey State, GO, 5.75%, 5/01/12 2,500 2,745,875
- ---------------------------------------------------------------------------------------------
New Jersey State, GO, Refunding:
Series H, 5.25%, 7/01/14 3,000 3,318,360
Series N, 5.50%, 7/15/17 (i) 3,000 3,413,100
- ---------------------------------------------------------------------------------------------
New Jersey State Higher Education Assistance
Authority, Student Loan Revenue Bonds, AMT, Series A,
5.30%, 6/01/17 (e) 15 15,166
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 19
Schedule of Investments (continued) BlackRock New Jersey Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================
New Jersey (continued)
- ---------------------------------------------------------------------------------------------
New Jersey State Highway Authority, Garden State
Parkway, Senior General Revenue Refunding Bonds,
6.20%, 1/01/10 (j) $ 545 $ 567,514
- ---------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, M/F Housing Revenue Refunding Bonds,
Series B (b):
6.15%, 11/01/20 195 199,733
6.25%, 11/01/26 940 960,661
- ---------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Bonds, AMT:
Series U, 4.95%, 10/01/32 640 606,176
Series X, 5.375%, 4/01/30 1,750 1,754,323
- ---------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Refunding Bonds,
AMT, Series T:
4.65%, 10/01/32 4,400 3,912,084
4.70%, 10/01/37 2,900 2,588,569
- ---------------------------------------------------------------------------------------------
New Jersey State Transit Corporation, COP (Federal
Transit Administration Grants), Series A, 6.125%,
9/15/09 (d)(e) 1,500 1,568,640
- ---------------------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund Authority
Revenue Bonds, Transportation System, Series A,
5.75%, 6/15/20 2,820 3,248,499
- ---------------------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds:
Series A, 4.75%, 12/15/37 (e) 3,000 2,990,490
Series C, 5.05%, 12/15/35 (c)(e) 1,380 325,335
Series D, 5%, 6/15/20 1,230 1,303,652
- ---------------------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Refunding Bonds,
Series B (a):
6.50%, 6/15/10 1,560 1,680,026
6.50%, 6/15/10 (j) 940 1,018,170
6%, 12/15/11 (d) 2,500 2,770,500
5.50%, 12/15/21 1,800 2,039,760
- ---------------------------------------------------------------------------------------------
New Jersey State Turnpike Authority, Turnpike
Revenue Bonds, Series B, 5.15%, 1/01/35 (e)(o) 1,510 1,096,547
- ---------------------------------------------------------------------------------------------
New Jersey State Turnpike Authority, Turnpike
Revenue Refunding Bonds:
Series A, 5%, 1/01/27 (i) 1,000 1,005,750
Series C, 6.50%, 1/01/16 80 91,249
Series C, 6.50%, 1/01/16 (a) 545 628,608
Series C, 6.50%, 1/01/16 (j) 420 486,650
Series C, 6.50%, 1/01/16 (a)(j) 2,955 3,423,929
- ---------------------------------------------------------------------------------------------
Newark, New Jersey, Health Care Facility Revenue
Refunding Bonds (New Community Urban Renewal),
Series A, 5.20%, 6/01/30 (m)(n) 935 955,776
- ---------------------------------------------------------------------------------------------
Newark, New Jersey, Housing Authority, Port Authority --
Port Newark Marine Terminal, Additional Rent-Backed
Revenue Refunding Bonds (City of Newark
Redevelopment Projects), 4.375%, 1/01/37 (a) 4,475 4,246,059
- ---------------------------------------------------------------------------------------------
North Hudson Sewer Authority, New Jersey, Sewer
Revenue Refunding Bonds, Series A, 5.41%,
8/01/21 (a)(c) 5,000 2,643,000
- ---------------------------------------------------------------------------------------------
Old Bridge Township, New Jersey, Board of Education,
GO, 5%, 7/15/11 (a)(d) 400 427,640
- ---------------------------------------------------------------------------------------------
Perth Amboy, New Jersey, GO (Convertible CABS),
Refunding (b)(o):
4.50%, 7/01/35 1,250 1,032,750
4.855%, 7/01/36 300 247,653
- ---------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey,
Consolidated Revenue Bonds:
85th Series, 5.20%, 9/01/18 1,000 1,111,890
93rd Series, 6.125%, 6/01/94 1,000 1,140,780
- ---------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds (JFK International Air
Terminal LLC), AMT, Series 6 (a):
6.25%, 12/01/09 7,000 7,278,040
6.25%, 12/01/11 1,750 1,879,693
5.75%, 12/01/22 2,000 2,006,820
- ---------------------------------------------------------------------------------------------
Salem County, New Jersey, Improvement Authority
Revenue Bonds (Finlaw State Office Building Project),
5.375%, 8/15/28 (b) 605 647,804
- ---------------------------------------------------------------------------------------------
South Jersey Port Corporation of New Jersey,
Revenue Refunding Bonds, AMT, 5.20%, 1/01/23 1,500 1,499,925
- ---------------------------------------------------------------------------------------------
Summit, New Jersey, GO, Refunding,
5.25%, 6/01/14 1,145 1,275,908
- ---------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of New
Jersey, Asset-Backed Revenue Bonds, 7%,
6/01/13 (d) 1,445 1,693,193
- ---------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of New
Jersey, Asset-Backed Revenue Refunding Bonds,
Series 1A, 5%, 6/01/41 3,500 2,705,290
- ---------------------------------------------------------------------------------------------
Union County, New Jersey, Improvement Authority,
Lease Revenue Bonds (Madison Redevelopment
Project), 5%, 3/01/25 (b) 500 518,400
- ---------------------------------------------------------------------------------------------
Union County, New Jersey, Utilities Authority, Senior
Lease Revenue Refunding Bonds (Ogden Martin
System of Union, Inc.), AMT, Series A, 5.50%,
6/01/10 (e) 2,000 2,072,020
- ---------------------------------------------------------------------------------------------
University of Medicine and Dentistry of New Jersey,
COP, 5%, 4/15/22 (e) 250 254,747
- ---------------------------------------------------------------------------------------------
University of Medicine and Dentistry of New Jersey,
Revenue Bonds, Series A, (e):
5.125%, 12/01/22 250 255,690
5.50%, 12/01/27 1,030 1,052,619
5%, 12/01/31 1,500 1,491,795
------------
227,881,947
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
20 ANNUAL REPORT MAY 31, 2008
Schedule of Investments (continued) BlackRock New Jersey Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================
Multi-State -- 3.9%
- ---------------------------------------------------------------------------------------------
Charter Mac Equity Issuer Trust (p):
6.625%, 6/30/49 $ 1,000 $ 1,035,760
7.60%, 11/30/50 4,000 4,343,840
- ---------------------------------------------------------------------------------------------
MuniMae TE Bond Subsidiary LLC (p):
6.875%, 6/30/49 4,000 4,122,120
7.75%, 6/30/50 2,000 2,153,880
------------
11,655,600
- ---------------------------------------------------------------------------------------------
=============================================================================================
Guam -- 0.6%
- ---------------------------------------------------------------------------------------------
Commonwealth of the Northern Mariana Islands,
Guam, GO, Series A:
6.75%, 10/01/13 (d) 600 691,674
6.75%, 10/01/33 150 153,615
- ---------------------------------------------------------------------------------------------
Guam Government Waterworks Authority, Water and
Wastewater System, Revenue Refunding Bonds,
5.875%, 7/01/35 1,000 982,260
------------
1,827,549
- ---------------------------------------------------------------------------------------------
=============================================================================================
Puerto Rico -- 10.5%
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Aqueduct and Sewer
Authority, Senior Lien Revenue Bonds, Series A,
6%, 7/01/38 2,000 2,114,600
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Bonds, Series B, 6%, 7/01/10 (d) 3,000 3,242,460
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds (d):
Series D, 5.375%, 7/01/12 1,000 1,075,510
Series K, 5%, 7/01/15 660 733,445
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Obligation Refunding Bonds
Series A (d):
5.375%, 10/01/16 1,600 1,691,696
5.50%, 10/01/17 2,000 2,120,660
5.50%, 10/01/18 2,000 2,124,480
5.50%, 10/01/19 2,600 2,723,968
5.50%, 10/01/20 1,000 1,047,680
5.375%, 10/01/24 1,000 1,043,770
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, Public Improvement, GO:
5.50%, 7/01/19 (b) 5,000 5,550,100
Series A, 5.25%, 7/01/16 (d) 310 350,942
- ---------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series HH, 5.25%, 7/01/10 (b)(d) 1,170 1,252,286
- ---------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series SS, 5%, 7/01/25 (a) 1,500 1,531,320
- ---------------------------------------------------------------------------------------------
Puerto Rico Industrial, Medical and Environmental
Pollution Control Facilities Financing Authority,
Special Facilities Revenue Bonds (American Airlines
Inc.), Series A, 6.45%, 12/01/25 1,345 907,942
- ---------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency, GO, Series A,
5%, 8/01/21 (b) 1,250 1,316,025
- ---------------------------------------------------------------------------------------------
Puerto Rico Public Finance Corporation,
Commonwealth Appropriation Revenue Bonds,
Series E, 5.50%, 2/01/12 (d) 2,000 2,147,420
------------
30,974,304
- ---------------------------------------------------------------------------------------------
=============================================================================================
U.S. Virgin Islands -- 0.7%
- ---------------------------------------------------------------------------------------------
Virgin Islands Government Refinery Facilities, Revenue
Refunding Bonds (Hovensa Coker Project), AMT,
6.50%, 7/01/21 1,400 1,436,610
- ---------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
5.875%, 7/01/22 750 738,323
------------
2,174,933
- ---------------------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $271,006,699) -- 92.5% 274,514,333
=============================================================================================
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 21
Schedule of Investments (concluded) BlackRock New Jersey Municipal Bond Fund
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to Tender Par
Option Bond Trusts (q) (000) Value
=============================================================================================
New Jersey -- 2.2%
- ---------------------------------------------------------------------------------------------
New Jersey EDA, School Facilities Construction
Revenue Bonds, Series L, 5%, 3/01/30 (b) $ 1,695 $ 1,733,849
- ---------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, Capital Fund Program Revenue Bonds,
Series A, 4.70%, 11/01/25 (b) 2,175 2,161,427
- ---------------------------------------------------------------------------------------------
New Jersey State Turnpike Authority, Turnpike Revenue
Bonds, Series C, 5%, 1/01/30 (b) 2,500 2,565,571
- ---------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to Tender
Option Bond Trusts (Cost -- $6,988,524) -- 2.2% 6,460,847
=============================================================================================
Short-Term Securities Shares Value
=============================================================================================
CMA New Jersey Municipal Money Fund,
1.35% (r)(s) 15,260,191 $ 15,260,191
- ---------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $15,260,191) -- 5.1% 15,260,191
=============================================================================================
Total Investments (Cost -- $293,255,414*) -- 99.8% 296,235,371
Other Assets Less Liabilities -- 1.5% 4,383,832
Liability for Trust Certificates, Including Interest
Expense and Fees Payable -- (1.3%) (3,877,482)
------------
Net Assets -- 100.0% $296,741,721
============
* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 288,709,231
=============
Gross unrealized appreciation .......................... $ 9,511,431
Gross unrealized depreciation .......................... (5,860,291)
-------------
Net unrealized appreciation ............................ $ 3,651,140
=============
(a) MBIA Insured.
(b) FSA Insured.
(c) Represents a zero-coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(d) U.S. government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(e) AMBAC Insured.
(f) FNMA Collateralized.
(g) Assured Guaranty Insured.
(h) Radian Insured.
(i) FGIC Insured.
(j) Security is collateralized by municipal or U.S. Treasury obligations.
(k) Connie Lee Insured.
(l) ACA Insured.
(m) GNMA Collateralized.
(n) FHA Insured.
(o) Represents a step bond. Rate shown reflects the effective yield at the
time of purchase.
(p) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration to qualified institutional investors. Unless otherwise
indicated, these securities are not considered to be illiquid.
(q) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of
the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(r) Represents the current yield as of report date.
(s) 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 12,381,554 $99,196
--------------------------------------------------------------------------
See Notes to Financial Statements.
22 ANNUAL REPORT MAY 31, 2008
Schedule of Investments May 31, 2008 BlackRock Pennsylvania Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================
Pennsylvania -- 77.3%
- ---------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, GO, Refunding,
Series C-57, 5%, 11/01/21 (a) $ 5,875 $ 6,136,849
- ---------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, Hospital
Development Authority, Health Center Revenue
Bonds (University of Pittsburgh Medical Center
Health System), Series B, 6%, 7/01/25 (b) 7,000 8,150,590
- ---------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, Hospital
Development Authority, Revenue Refunding Bonds
(West Penn Allegheny Health System), Series A,
5.375%, 11/15/40 3,120 2,643,919
- ---------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, IDA, Commercial
Development Revenue Refunding Bonds (MPB
Associates Project), 7.70%, 12/01/13 (c) 3,525 3,955,896
- ---------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, IDA, Environmental
Improvement Revenue Refunding Bonds:
5.50%, 11/01/16 1,000 1,016,250
(USX Corporation), 6.10%, 7/15/20 1,500 1,504,605
- ---------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, IDA, Lease Revenue
Refunding Bonds (Residential Resources Inc.
Project), 5.125%, 9/01/31 1,000 911,950
- ---------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, Residential Finance
Authority, S/F Mortgage Revenue Bonds, AMT,
Series TT, 5%, 5/01/35 (d) 250 233,532
- ---------------------------------------------------------------------------------------------
Bradford County, Pennsylvania, IDA, Solid Waste
Disposal Revenue Refunding Bonds (International
Paper Company Project), AMT, Series B,
5.20%, 12/01/19 1,000 950,790
- ---------------------------------------------------------------------------------------------
Bucks County, Pennsylvania, IDA, Retirement
Community Revenue Bonds (Ann's Choice Inc.),
Series A, 5.90%, 1/01/27 770 735,365
- ---------------------------------------------------------------------------------------------
Bucks County, Pennsylvania, IDA, Revenue Refunding
Bonds (Pennswood Village Project), Series A,
6%, 10/01/12 (e) 1,000 1,123,780
- ---------------------------------------------------------------------------------------------
Central Bucks School District, Pennsylvania, GO,
Refunding, 5%, 5/15/25 (r) 6,000 6,337,200
- ---------------------------------------------------------------------------------------------
Chester County, Pennsylvania, IDA, Water Facilities
Revenue Bonds (Aqua Pennsylvania, Inc. Project),
AMT, Series A, 5%, 2/01/40 (a) 3,800 3,537,686
- ---------------------------------------------------------------------------------------------
Coatesville, Pennsylvania, School District, GO, 5%,
8/01/25 (c) 13,085 13,691,490
- ---------------------------------------------------------------------------------------------
Dauphin County, Pennsylvania, General Authority,
Hospital Revenue Refunding Bonds (Hapsco
Group -- Western Pennsylvania Hospital Project),
Series B, 6.25%, 7/01/16 (b)(f) 1,000 1,117,380
- ---------------------------------------------------------------------------------------------
Delaware County, Pennsylvania, Authority Revenue
Bonds (Haverford College), 5.75%, 11/15/25 6,795 7,160,095
- ---------------------------------------------------------------------------------------------
Delaware County, Pennsylvania, Hospital Authority
Revenue Refunding Bonds (Crozer-Chester
Medical Center), 5%, 12/15/31 6,000 5,062,140
- ---------------------------------------------------------------------------------------------
Delaware County, Pennsylvania, IDA, Water Facilities
Revenue Bonds (a):
(Aqua Pennsylvania, Inc. Project), AMT, Series A,
5%, 11/01/38 3,375 3,145,736
(Aqua Pennsylvania, Inc. Project), AMT, Series C,
5%, 2/01/35 5,670 5,328,156
(Philadelphia Suburban Water), 6%, 6/01/29 3,400 3,436,958
- ---------------------------------------------------------------------------------------------
Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds (c):
5.75%, 1/01/16 8,000 8,367,200
5.75%, 1/01/22 40,000 41,331,600
(Port District Project), Series B, 5.70%, 1/01/22 8,930 9,218,796
- ---------------------------------------------------------------------------------------------
Delaware Valley Regional Finance Authority,
Pennsylvania, Local Government Revenue Bonds,
5.75%, 7/01/32 21,000 24,025,890
- ---------------------------------------------------------------------------------------------
Delaware Valley Regional Finance Authority,
Pennsylvania, Local Government Revenue Refunding
Bonds, Series A, 5.50%, 6/01/37 10,000 11,311,400
- ---------------------------------------------------------------------------------------------
East Stroudsburg, Pennsylvania, Area School
District, GO:
Refunding, 5%, 9/01/25 (c) 3,180 3,328,442
Series A, 7.75%, 9/01/27 (a) 3,700 4,486,398
- ---------------------------------------------------------------------------------------------
Fulton County, Pennsylvania, IDA, Hospital Revenue
Bonds (Fulton County Medical Center Project),
5.90%, 7/01/40 500 450,850
- ---------------------------------------------------------------------------------------------
Hollidaysburg, Pennsylvania, Area School District,
GO, Series C, 5%, 3/15/22 (c) 1,000 1,055,980
- ---------------------------------------------------------------------------------------------
Lancaster County, Pennsylvania, Hospital Authority
Revenue Bonds:
(Brethren Village Project), Series A,
6.50%, 7/01/40 1,750 1,735,878
(Masonic Homes Project), 5%, 11/01/26 1,550 1,544,389
(Masonic Homes Project), 5%, 11/01/31 3,000 2,887,710
(Masonic Homes Project), 5%, 11/01/36 3,695 3,522,554
- ---------------------------------------------------------------------------------------------
Lebanon County, Pennsylvania, Health Facilities
Authority, Health Center Revenue Bonds (Pleasant
View Retirement Project), Series A,
5.30%, 12/15/26 1,000 902,420
- ---------------------------------------------------------------------------------------------
Lehigh County, Pennsylvania, General Purpose
Authority, Revenue Refunding Bonds (Kids Peace
Corporation), 5.70%, 11/01/09 (g) 1,300 1,293,656
- ---------------------------------------------------------------------------------------------
Lehigh County, Pennsylvania, General Purpose
Hospital Revenue Bonds (Lehigh Valley Health),
Series B, 5%, 7/01/35 (c) 5,000 4,981,400
- ---------------------------------------------------------------------------------------------
Lower Merion, Pennsylvania, School District, GO:
5%, 9/01/25 3,460 3,653,898
5%, 9/01/26 3,635 3,824,493
- ---------------------------------------------------------------------------------------------
McKeesport, Pennsylvania, Area School District, GO,
Refunding, Series A, 5%, 10/01/24 (c) 6,000 6,246,180
- ---------------------------------------------------------------------------------------------
Mifflin County, Pennsylvania, Hospital Authority,
Revenue Refunding Bonds (Lewiston Hospital) (e)(h):
6.20%, 1/01/11 1,000 1,098,010
6.40%, 1/01/11 2,550 2,812,599
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 23
Schedule of Investments (continued) BlackRock Pennsylvania Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================
Pennsylvania (continued)
- ---------------------------------------------------------------------------------------------
Mifflin County, Pennsylvania, School District, GO,
7.50%, 9/01/22 (i) $ 2,300 $ 2,798,778
- ---------------------------------------------------------------------------------------------
Monroe County, Pennsylvania, Hospital Authority
Revenue Refunding Bonds (Pocono Medical Center),
5.125%, 1/01/37 4,140 3,741,318
- ---------------------------------------------------------------------------------------------
Montgomery County, Pennsylvania, Higher Education
and Health Authority, Revenue Refunding Bonds
(Holy Redeemer Health System Project), Series A,
5.25%, 10/01/27 (j) 9,000 8,977,680
- ---------------------------------------------------------------------------------------------
Montgomery County, Pennsylvania, IDA, Revenue
Refunding Bonds (Foulkeways at Gwynedd Project),
Series A, 5%, 12/01/24 1,000 932,860
- ---------------------------------------------------------------------------------------------
Montgomery County, Pennsylvania, IDA, Water
Facilities Revenue Bonds (Aqua Pennsylvania, Inc.
Project), Series A, 5.25%, 7/01/42 3,900 3,794,271
- ---------------------------------------------------------------------------------------------
Northumberland County, Pennsylvania, IDA, Water
Facilities Revenue Refunding Bonds (Aqua
Pennsylvania Inc. Project), AMT, 5.05%,
10/01/39 (a) 2,500 2,346,800
- ---------------------------------------------------------------------------------------------
Pennsylvania Convention Center Authority Revenue
Bonds, Series A, 6.70%, 9/01/16 (a)(f) 1,000 1,156,090
- ---------------------------------------------------------------------------------------------
Pennsylvania Economic Development Financing
Authority, Solid Waste Disposal Revenue Bonds
(Waste Management Inc. Project), AMT, Series A,
5.10%, 10/01/27 300 261,507
- ---------------------------------------------------------------------------------------------
Pennsylvania HFA, S/F Mortgage Revenue
Refunding Bonds, AMT:
Series 63A, 5.50%, 4/01/30 (k) 13,155 3,610,258
Series 66A, 5.65%, 4/01/29 1,045 1,068,910
Series 73A, 5.45%, 10/01/32 2,000 2,056,540
Series 96A, 4.70%, 10/01/37 6,500 5,741,385
Series 97A, 4.65%, 10/01/31 6,700 5,994,825
Series 99A, 5.25%, 10/01/32 4,800 4,683,696
- ---------------------------------------------------------------------------------------------
Pennsylvania State, GO:
First Series, 5%, 10/01/26 5,000 5,224,900
Second Series A, 5%, 8/01/24 6,000 6,338,460
- ---------------------------------------------------------------------------------------------
Pennsylvania State Higher Educational Facilities
Authority Revenue Bonds:
5%, 6/15/25 (b) 3,140 3,260,231
5%, 6/15/26 (b) 3,300 3,412,728
(Lafayette College Project), 6%, 5/01/30 155 161,307
- ---------------------------------------------------------------------------------------------
Pennsylvania State Higher Educational Facilities
Authority, Revenue Refunding Bonds:
(University of the Sciences in Philadelphia),
5%, 11/01/32 (l) 5,000 5,151,350
(Widener University), 5.375%, 7/15/29 500 499,655
- ---------------------------------------------------------------------------------------------
Pennsylvania State, IDA, EDR, Refunding, 5.50%,
7/01/16 (j) 8,000 8,649,600
- ---------------------------------------------------------------------------------------------
Pennsylvania State Public School Building Authority,
College Revenue Bonds (Montgomery County
Community College), 5%, 5/01/27 (c) 1,790 1,866,737
- ---------------------------------------------------------------------------------------------
Pennsylvania State Public School Building Authority,
Revenue Refunding Bonds (The School District of
Philadelphia Project), Series B, 5%, 6/01/24 (c) 9,000 9,418,590
- ---------------------------------------------------------------------------------------------
Pennsylvania State Turnpike Commission, Oil
Franchise Tax Revenue Bonds, Series C, 5%,
12/01/32 (b) 11,000 11,335,500
- ---------------------------------------------------------------------------------------------
Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds:
Series A, 5%, 12/01/26 (j) 3,310 3,435,946
Series A1, 5%, 6/01/33 (l) 3,000 3,100,200
- ---------------------------------------------------------------------------------------------
Pennsylvania State University, Revenue Refunding
Bonds Series A:
5%, 8/15/28 6,045 6,289,883
5%, 8/15/29 2,000 2,076,220
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Airport Revenue Bonds
(Philadelphia Airport System), AMT, Series A, 5%,
6/15/32 (c) 15,000 14,372,250
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Authority for IDR
(American College of Physicians:
5.50%, 6/15/20 6,370 6,487,208
5.50%, 6/15/25 8,315 8,412,202
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Authority for Industrial
Development, Industrial and Commercial Revenue
Bonds (Girard Estate Coal Mining Project) (f):
5.375%, 11/15/12 3,945 3,953,797
5.50%, 11/15/16 1,650 1,653,911
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Authority for Industrial
Development, Senior Living Revenue Bonds:
(Rieder House Project), Series A,
6.10%, 7/01/33 500 498,565
(Saligman House Project), Series C,
6.10%, 7/01/33 500 498,565
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Gas Works Revenue
Bonds, 12th Series B, 7%, 5/15/20 (b)(f) 1,745 2,092,761
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Hospitals & Higher
Education Facilities Authority, Hospital Revenue
Refunding Bonds:
(Presbyterian Medical Center), 6.65%,
12/01/19 (f) 3,000 3,601,920
(Temple University Health System), Series A,
5.50%, 7/01/30 5,535 5,224,265
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Parking Authority, Airport
Parking Revenue Bonds:
5.40%, 9/01/15 (j) 5,900 5,965,490
5.625%, 9/01/17 (c) 4,495 4,680,329
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Qualified Redevelopment
Authority Revenue Bonds, AMT, Series B, 5%,
4/15/27 (a) 415 398,798
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, School District, GO,
Refunding, Series A, 5%, 8/01/15 (j) 9,105 9,814,826
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Water and Wastewater
Revenue Bonds, Series A, 5%, 7/01/27 (c) 6,500 6,710,990
- ---------------------------------------------------------------------------------------------
See Notes to Financial Statements.
24 ANNUAL REPORT MAY 31, 2008
Schedule of Investments (continued) BlackRock Pennsylvania Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
=============================================================================================
Pennsylvania (concluded)
- ---------------------------------------------------------------------------------------------
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare
System), Series A, 5.875%, 12/01/31 $ 320 $ 327,798
- ---------------------------------------------------------------------------------------------
Scranton, Pennsylvania, School District, GO, Series A,
5%, 7/15/38 (c) 5,430 5,571,614
- ---------------------------------------------------------------------------------------------
Souderton, Pennsylvania, Area School District, GO,
5%, 11/15/22 (a) 4,390 4,589,130
- ---------------------------------------------------------------------------------------------
South Fork Municipal Authority, Pennsylvania,
Hospital Revenue Refunding Bonds (Good
Samaritan Medical Center), Series B, 5.375%,
7/01/16 (b) 4,000 4,008,320
- ---------------------------------------------------------------------------------------------
Southcentral General Authority, Pennsylvania,
Revenue Refunding Bonds (Wellspan Health
Obligated), 5.625%, 5/15/26 (f) 315 333,119
- ---------------------------------------------------------------------------------------------
Susquehanna Area Regional Airport Authority,
Pennsylvania, Airport System Revenue Bonds, AMT,
Series A, 6.50%, 1/01/38 2,400 2,410,848
- ---------------------------------------------------------------------------------------------
Washington County, Pennsylvania, Capital Funding
Authority Revenue Bonds (Capital Projects and
Equipment Program), 6.15%, 12/01/29 (j) 915 909,602
- ---------------------------------------------------------------------------------------------
Washington County, Pennsylvania, IDA, PCR (West
Penn Power), Refunding, Series G, 6.05%,
4/01/14 (j) 2,500 2,507,325
- ---------------------------------------------------------------------------------------------
West Chester, Pennsylvania, Area School District, GO,
Series A (c):
5%, 5/15/18 7,715 8,322,402
5/15/22 7,550 7,923,348
- ---------------------------------------------------------------------------------------------
Wilkes-Barre, Pennsylvania, Financing Authority,
Revenue Refunding Bonds (Wilkes University
Project), 5%, 3/01/37 1,604,124
------------
444,519,842
- ---------------------------------------------------------------------------------------------
=============================================================================================
Multi-State -- 9.0%
- ---------------------------------------------------------------------------------------------
Charter Mac Equity Issuer Trust (n):
6.625%, 6/30/49 25,000 25,894,000
7.60%, 11/30/50 10,000 10,859,600
- ---------------------------------------------------------------------------------------------
MuniMae TE Bond Subsidiary LLC (n):
6.875%, 6/30/49 4,000 4,122,120
7.75%, 6/30/50 10,000 10,769,400
------------
51,645,120
- ---------------------------------------------------------------------------------------------
=============================================================================================
Guam -- 0.6%
- ---------------------------------------------------------------------------------------------
Commonwealth of the Northern Mariana Islands,
Guam, GO, Series A, 6.75%, 10/01/13 (e) 500 576,395
- ---------------------------------------------------------------------------------------------
Guam Economic Development and Commerce
Authority, Tobacco Settlement Asset Backed Revenue
Refunding Bonds, 5.625%, 6/01/47 1,750 1,682,013
- ---------------------------------------------------------------------------------------------
Guam Government Waterworks Authority, Water and
Wastewater System, Revenue Refunding Bonds,
6%, 7/01/25 1,000 1,011,660
------------
3,270,068
- ---------------------------------------------------------------------------------------------
=============================================================================================
Puerto Rico -- 9.5%
- ---------------------------------------------------------------------------------------------
Children's Trust Fund Project of Puerto Rico, Tobacco
Settlement Revenue Refunding Bonds,
5.375%, 5/15/33 1,170 1,110,716
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Aqueduct and Sewer
Authority, Senior Lien Revenue Bonds, Series A,
6%, 7/01/38 3,600 3,806,280
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Bonds, Series G, 5%, 7/01/33 685 663,094
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Obligation Refunding Bonds,
Series A:
5.375%, 10/1/2016 1,600 1,691,696
5.50%, 10/1/2017 2,000 2,120,660
5.50%, 10/1/2018 2,000 2,124,480
5.50%, 10/1/2019 2,750 2,881,120
5.50%, 10/1/2020 1,000 1,047,680
5.375%, 10/01/24 1,000 1,043,770
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax Revenue Bonds, Series B,
5%, 7/01/41 7,700 7,493,255
- ---------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, Public Improvement,
GO, Refunding, Series A:
5.50%, 7/01/20 (b) 7,500 8,008,875
5.25%, 7/01/37 8,000 7,917,200
- ---------------------------------------------------------------------------------------------
Puerto Rico Ports Authority, Special Facilities
Revenue Bonds (American Airlines), AMT, Series A,
6.25%, 6/01/26 750 481,163
- ---------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds:
Series D, 5.375%, 7/01/33 2,940 2,946,791
Series N, 5%, 7/01/37 (m) 4,700 4,594,109
- ---------------------------------------------------------------------------------------------
Puerto Rico Sales Tax Financing Corporation, Sales
Tax Revenue Refunding Bonds, Series A,
5.25%, 8/01/57 6,915 6,866,180
------------
54,797,069
- ---------------------------------------------------------------------------------------------
=============================================================================================
U.S. Virgin Islands -- 0.4%
- ---------------------------------------------------------------------------------------------
Virgin Islands Government Refinery Facilities,
Revenue Refunding Bonds (Hovensa Coker Project),
AMT, 6.50%, 7/01/21 1,000 1,026,150
- ---------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
6.125%, 7/01/22 500 499,500
- ---------------------------------------------------------------------------------------------
Virgin Islands Water and Power Authority, Electric
System Revenue Bonds, Series A, 5%, 7/01/31 1,000 960,270
------------
2,485,920
- ---------------------------------------------------------------------------------------------
Total Municipal Bonds
(Cost -- $550,961,549) -- 96.8% 556,718,019
=============================================================================================
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 25
Schedule of Investments (concluded) BlackRock Pennsylvania Municipal Bond Fund
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to Tender Par
Option Bond Trusts (o) (000) Value
=============================================================================================
Pennsylvania -- 2.8%
- ---------------------------------------------------------------------------------------------
Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds, Series A, 5.50%, 12/01/31 (j) $ 1,600 $ 1,698,416
- ---------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Airport Revenue Bonds,
AMT, Series A, 5%, 6/15/37 (c) 15,000 14,251,200
- ---------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to Tender
Option Bond Trusts (Cost -- $17,255,977) -- 2.8% 15,949,616
=============================================================================================
Short-Term Securities Shares Value
=============================================================================================
CMA Pennsylvania Municipal Money Fund,
1.10% (p)(q) 11,269,648 $ 11,269,648
- ---------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $11,269,648) -- 2.0% 11,269,648
=============================================================================================
Total Investments (Cost -- $579,487,174*) -- 101.6% 583,937,283
Liabilities in Excess of Other Assets -- (0.1%) (510,098)
Liability for Trust Certificates, Including Interest
Expense and Fees Payable -- (1.5%) (8,411,466)
------------
Net Assets -- 100.0% $575,015,719
============
* The cost and unrealized appreciation (depreciation) of investments as of
May 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost .......................................... $ 570,781,079
=============
Gross unrealized appreciation ........................... $ 15,014,616
Gross unrealized depreciation ........................... (10,158,412)
-------------
Net unrealized appreciation ............................. $ 4,856,204
=============
(a) FGIC Insured.
(b) MBIA Insured.
(c) FSA Insured.
(d) FNMA/GNMA Collateralized.
(e) U.S. government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(f) Security is collateralized by municipal or U.S. Treasury obligations.
(g) ACA Insured.
(h) Radian Insured.
(i) XL Capital Insured.
(j) AMBAC Insured.
(k) Represents a zero-coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(l) Assured Guaranty Insured.
(m) Commonwealth Guaranteed
(n) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration to qualified institutional investors. Unless otherwise
indicated, these securities are not considered to be illiquid.
(o) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as collateral in a financing transaction. See Note 1 of
the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
(p) Investments in companies considered to be an affiliate of the Fund, for
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 (5,461,704) $602,261
--------------------------------------------------------------------------
(q) Represents the current yield as of report date.
(r) When-issued security.
o Forward interest rate swaps outstanding as of May 31, 2008 were as
follows:
-----------------------------------------------------------------------------------------
Notional
Amount Unrealized
(000) Appreciation
-----------------------------------------------------------------------------------------
Pay a fixed rate of 3.643% and receive a floating rate
based on 1-week Securities Industry and Financial
Markets Association Municipal Swap Index Rate
Broker, Goldman Sachs & Co.
Expires August 2023 $25,000 $140,750
Pay a fixed rate of 3.689% and receive a floating rate
based on 1-week Securities Industry and Financial
Markets Association Municipal Swap Index
Broker, Citibank N.A.
Expires June 2028 $10,000 130,320
Pay a fixed rate of 3.737% and receive a floating rate
based on 1-week Securities Industry and Financial
Markets Association Municipal Swap Index Rate
Broker, Citibank N.A.
Expires August 2028 $ 5,000 46,775
-----------------------------------------------------------------------------------------
Total $317,845
========
See Notes to Financial Statements.
26 ANNUAL REPORT MAY 31, 2008
Statements of Assets and Liabilities
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
May 31, 2008 Bond Fund Bond Fund Bond Fund
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments at value -- unaffiliated 1 .......................................... $ 102,692,963 $ 280,975,180 $ 572,667,635
Investments at value -- affiliated 2 ............................................ 3,126,517 15,260,191 11,269,648
Cash ............................................................................ 140,069 98,650 1,210
Unrealized appreciation on swaps ................................................ 78,457 -- 317,845
Interest receivable ............................................................. 1,379,029 4,834,618 9,242,528
Investments sold receivable ..................................................... -- 263,799 8,854,200
Capital shares sold receivable .................................................. 107,635 573,964 291,906
Dividends receivable ............................................................ 4,220 -- --
Prepaid expenses ................................................................ 6,305 16,307 23,514
Other assets .................................................................... 110 -- 25,985
-----------------------------------------------
Total assets .................................................................... 107,535,305 302,022,709 602,694,471
-----------------------------------------------
===================================================================================================================================
Accrued Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Investments purchased payable ................................................... 1,403,657 -- 15,724,416
Income dividends payable ........................................................ 336,040 974,178 2,092,840
Capital shares redeemed payable ................................................. 40,433 161,748 1,001,095
Interest expense and fees payable ............................................... 86,422 2,482 111,466
Investment advisory fees payable ................................................ 46,104 125,442 267,933
Distribution fees payable ....................................................... 18,579 39,708 29,472
Officer fees payable ............................................................ 3,104 3,003 3,591
Other affiliates payable ........................................................ 7,841 12,855 15,900
Other accrued expenses payable .................................................. 58,532 86,572 132,039
-----------------------------------------------
Total accrued liabilities ....................................................... 2,000,712 1,405,988 19,378,752
-----------------------------------------------
===================================================================================================================================
Other Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Trust certificates 3 ............................................................ 9,807,764 3,875,000 8,300,000
-----------------------------------------------
Total Liabilities ............................................................... 11,808,476 5,280,988 27,678,752
-----------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets ...................................................................... $ 95,726,829 $ 296,741,721 $ 575,015,719
===============================================
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional Shares, $0.10 par value ........................................... $ 184,382 $ 1,743,084 $ 4,491,789
Service Shares, $0.10 par value ................................................. -- 112,328 22,552
Investor A Shares, $0.10 par value .............................................. 36,711 209,136 266,781
Investor A1 Shares, $0.10 par value ............................................. 480,520 369,262 236,520
Investor B Shares, $0.10 par value .............................................. 129,855 66,680 31,932
Investor B1 Shares, $0.10 par value ............................................. -- 120,222 92,497
Investor C Shares, $0.10 par value .............................................. 23,692 101,768 66,326
Investor C1 Shares, $0.10 par value ............................................. 116,884 157,590 117,996
Paid-in capital in excess of par ................................................ 97,089,867 302,428,025 603,495,795
Undistributed net investment income ............................................. 650,547 919,154 870,350
Accumulated net realized loss ................................................... (3,951,576) (12,465,485) (39,444,773)
Net unrealized appreciation/depreciation ........................................ 965,947 2,979,957 4,767,954
-----------------------------------------------
Net assets ...................................................................... $ 95,726,829 $ 296,741,721 $ 575,015,719
===============================================
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 27
Statements of Assets and Liabilities (concluded)
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
May 31, 2008 Bond Fund Bond Fund Bond Fund
===================================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional:
Net assets ................................................................... $ 18,181,702 $ 179,560,472 $ 484,860,718
===============================================
Shares of beneficial interest outstanding .................................... 1,843,815 17,430,844 44,917,894
===============================================
Net asset value .............................................................. $ 9.86 $ 10.30 $ 10.79
===============================================
Service:
Net assets ................................................................... -- $ 11,569,392 $ 2,434,843
===============================================
Shares of beneficial interest outstanding .................................... -- 1,123,276 225,519
===============================================
Net asset value .............................................................. -- $ 10.30 $ 10.80
===============================================
Investor A:
Net assets ................................................................... $ 3,611,137 $ 21,563,569 $ 28,827,395
===============================================
Shares of beneficial interest outstanding .................................... 367,110 2,091,359 2,667,810
===============================================
Net asset value .............................................................. $ 9.84 $ 10.31 $ 10.81
===============================================
Investor A1:
Net assets ................................................................... $ 47,297,299 $ 38,082,299 $ 25,559,935
===============================================
Shares of beneficial interest outstanding .................................... 4,805,201 3,692,624 2,365,203
===============================================
Net asset value .............................................................. $ 9.84 $ 10.31 $ 10.81
===============================================
Investor B:
Net assets ................................................................... $ 12,803,959 $ 6,868,672 $ 3,447,392
===============================================
Shares of beneficial interest outstanding .................................... 1,298,552 666,799 319,317
===============================================
Net asset value .............................................................. $ 9.86 $ 10.30 $ 10.80
===============================================
Investor B1:
Net assets ................................................................... -- $ 12,385,851 $ 9,983,585
===============================================
Shares of beneficial interest outstanding .................................... -- 1,202,215 924,968
===============================================
Net asset value .............................................................. -- $ 10.30 $ 10.79
===============================================
Investor C:
Net assets ................................................................... $ 2,329,082 $ 10,479,702 $ 7,165,959
===============================================
Shares of beneficial interest outstanding .................................... 236,919 1,017,684 663,258
===============================================
Net asset value .............................................................. $ 9.83 $ 10.30 $ 10.80
===============================================
Investor C1:
Net assets ................................................................... $ 11,503,650 $ 16,231,764 $ 12,735,892
===============================================
Shares of beneficial interest outstanding .................................... 1,168,842 1,575,897 1,179,959
===============================================
Net asset value .............................................................. $ 9.84 $ 10.30 $ 10.79
===============================================
1 Investments at cost -- unaffiliated ........................................ $ 101,430,625 $ 277,995,223 $ 568,217,526
===============================================
2 Investments at cost -- affiliated .......................................... $ 3,501,365 $ 15,260,191 $ 11,269,648
===============================================
3 Represents short-term floating rate certificates issued by tender option
bond trusts.
See Notes to Financial Statements.
28 ANNUAL REPORT MAY 31, 2008
Statements of Operations
Period August 1, 2007 to May 31, 2008 Year Ended July 31, 2007
---------------------------------------- ------------------------------------------
BlackRock BlackRock BlackRock BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania Florida New Jersey Pennsylvania
Municipal Municipal Municipal Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund Bond Fund Bond Fund Bond Fund
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest .................................. $ 5,140,528 $ 12,866,275 $ 27,405,330 $ 6,556,166 $ 14,010,368 $ 26,995,111
Dividends from affiliates ................. 65,370 99,196 602,261 95,096 126,307 230,607
---------------------------------------- ------------------------------------------
Total income .............................. 5,205,898 12,965,471 28,007,591 6,651,262 14,136,675 27,225,718
---------------------------------------- ------------------------------------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory ....................... 471,024 1,331,157 2,661,489 647,349 1,401,820 2,670,321
Service -- Service ........................ -- 25,642 5,859 -- 26,706 6,932
Service -- Investor A ..................... 7,203 36,583 58,192 4,566 23,568 54,304
Service -- Investor A1 .................... 41,247 32,407 22,386 54,414 40,705 27,781
Service and distribution -- Investor B .... 61,161 64,358 37,168 104,538 75,545 49,549
Service and distribution -- Investor B1 ... -- 58,581 47,953 -- 93,223 78,850
Service and distribution -- Investor C .... 14,613 70,874 47,178 5,114 37,316 21,073
Service and distribution -- Investor C1 ... 66,408 88,991 70,586 104,953 118,393 95,699
Transfer agent -- Institutional ........... 9,470 10,268 18,644 10,210 15,836 31,745
Transfer agent -- Service ................. -- 6,919 25 -- 10,270 1,273
Transfer agent -- Investor A .............. 569 3,924 9,647 724 4,007 13,224
Transfer agent -- Investor A1 ............. 16,375 17,803 13,604 20,907 19,232 13,945
Transfer agent -- Investor B .............. 5,981 2,390 -- 8,578 4,843 5,234
Transfer agent -- Investor B1 ............. -- 7,167 5,009 -- 9,646 9,055
Transfer agent -- Investor C .............. 782 2,771 2,207 343 2,022 1,537
Transfer agent -- Investor C1 ............. 4,267 5,383 5,438 6,477 6,737 6,454
Accounting services ....................... 54,663 95,064 156,497 74,558 111,953 168,867
Professional .............................. 64,771 65,308 60,427 78,943 77,632 76,948
Printing .................................. 29,869 42,669 32,085 49,425 68,812 73,879
Registration .............................. 24,330 23,940 25,069 23,368 20,960 29,550
Officer and Trustees ...................... 18,228 22,152 29,246 14,202 16,565 20,722
Custodian ................................. 7,441 15,351 26,026 10,098 18,119 40,179
Miscellaneous ............................. 23,892 42,519 45,218 35,692 49,718 48,934
---------------------------------------- ------------------------------------------
Total expenses excluding interest expense
and fees ................................ 922,294 2,072,221 3,379,953 1,254,459 2,253,628 3,546,055
Interest expense and fees 1 ............... 269,685 436,307 1,444,217 374,802 871,823 2,191,053
---------------------------------------- ------------------------------------------
Total expenses ............................ 1,191,979 2,508,528 4,824,170 1,629,261 3,125,451 5,737,108
Less fees waived by advisor ............... (245) (151,613) (158,245) (23) (263,622) (243,078)
Less fees paid indirectly ................. (186) (277) (821) -- -- --
---------------------------------------- ------------------------------------------
Total expenses after fees waived and
paid indirectly ......................... 1,191,548 2,356,638 4,665,104 1,629,238 2,861,829 5,494,030
---------------------------------------- ------------------------------------------
Net investment income ..................... 4,014,350 10,608,833 23,342,487 5,022,024 11,274,846 21,731,688
---------------------------------------- ------------------------------------------
===================================================================================================================================
Realized and Unrealized Gain (Loss)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from:
Investments ......................... (1,170,242) (993,051) 1,076,574 1,036,895 386,649 6,289,888
Futures and swaps ................... (229,865) 115,634 (6,242,253) (122,874) -- 1,196,093
---------------------------------------- ------------------------------------------
(1,400,107) (877,417) (5,165,679) 914,021 386,649 7,485,981
---------------------------------------- ------------------------------------------
Net change in unrealized
appreciation/depreciation on:
Investments ......................... (2,768,148) (6,768,935) (12,323,268) (1,531,419) (5,192,639) (15,790,877)
Swaps ............................... 78,457 -- 964,413 -- -- (590,057)
---------------------------------------- ------------------------------------------
(2,689,691) (6,768,935) (11,358,855) (1,531,419) (5,192,639) (16,380,934)
---------------------------------------- ------------------------------------------
Total realized and unrealized loss ........ (4,089,798) (7,646,352) (16,524,534) (617,398) (4,805,990) (8,894,953)
---------------------------------------- ------------------------------------------
Net Increase (Decrease) in Net Assets
Resulting from Operations ............... $ (75,448) $ 2,962,481 $ 6,817,953 $ 4,404,626 $ 6,468,856 $ 12,836,735
========================================= ==========================================
1 Related to tender option bond trusts.
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 29
Statements of Changes in Net Assets BlackRock Florida Municipal Bond Fund
Period
August 1,
2007 to Year Ended July 31,
May 31, ------------------------------
Increase (Decrease) in Net Assets: 2008 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ........................................................... $ 4,014,350 $ 5,022,024 $ 5,414,484
Net realized gain (loss) ........................................................ (1,400,107) 914,021 (283,326)
Net change in unrealized appreciation/depreciation .............................. (2,689,691) (1,531,419) (2,051,210)
-----------------------------------------------
Net increase (decrease) in net assets resulting from operations ................. (75,448) 4,404,626 3,079,948
-----------------------------------------------
===================================================================================================================================
Dividends to Shareholders From
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional ................................................................ (756,628) (968,556) (1,004,021)
Investor A ................................................................... (125,034) (73,647) --
Investor A1 .................................................................. (1,843,502) (2,290,947) (2,586,269)
Investor B ................................................................... (496,972) (796,933) (1,185,478)
Investor C ................................................................... (51,974) (16,531) --
Investor C1 .................................................................. (439,491) (649,197) (638,716)
-----------------------------------------------
Decrease in net assets resulting from dividends to shareholders ................. (3,713,601) (4,795,811) (5,414,484)
-----------------------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets derived from beneficial interest transactions ........ (10,516,063) (15,475,630) (3,569,331)
-----------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets .................................................... (14,305,112) (15,866,815) (5,903,867)
Beginning of period ............................................................. 110,031,941 125,898,756 131,802,623
===============================================
End of period ................................................................... $ 95,726,829 $ 110,031,941 $ 125,898,756
===============================================
End of period undistributed net investment income ............................... $ 650,547 $ 349,798 $ 123,585
===============================================
See Notes to Financial Statements.
30 ANNUAL REPORT MAY 31, 2008
Statements of Changes in Net Assets (continued)
BlackRock New Jersey Municipal Bond Fund
Period
August 1,
2007 to Year Ended July 31,
May 31, ------------------------------
Increase (Decrease) in Net Assets: 2008 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ........................................................... $ 10,608,833 $ 11,274,846 $ 4,241,248
Net realized gain (loss) ........................................................ (877,417) 386,649 729,694
Net change in unrealized appreciation/depreciation .............................. (6,768,935) (5,192,639) (1,489,053)
-----------------------------------------------
Net increase in net assets resulting from operations ............................ 2,962,481 6,468,856 3,481,889
-----------------------------------------------
===================================================================================================================================
Dividends and Distributions to Shareholders From
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional ................................................................ (6,489,421) (6,280,908) (1,215,782)
Service ...................................................................... (442,839) (438,542) --
Investor A ................................................................... (630,770) (387,416) --
Investor A1 .................................................................. (1,444,832) (1,713,234) (1,482,198)
Investor B ................................................................... (230,613) (253,977) --
Investor B1 .................................................................. (477,471) (710,416) (875,086)
Investor C ................................................................... (252,430) (125,242) --
Investor C1 .................................................................. (587,563) (731,637) (622,496)
Net realized gain:
Institutional ................................................................ -- -- (9,352)
Service ...................................................................... -- -- --
Investor A ................................................................... -- -- --
Investor A1 .................................................................. -- -- (12,456)
Investor B ................................................................... -- -- --
Investor B1 .................................................................. -- -- (8,754)
Investor C ................................................................... -- -- --
Investor C1 .................................................................. -- -- (6,080)
-----------------------------------------------
Decrease in net assets resulting from dividends and distributions to shareholders (10,555,939) (10,641,372) (4,232,204)
-----------------------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from beneficial interest transactions ........ 12,766,888 181,194,576 12,420,544
-----------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets .................................................... 5,173,430 177,022,060 11,670,229
Beginning of period ............................................................. 291,568,291 114,546,231 102,876,002
===============================================
End of period ................................................................... $ 296,741,721 $ 291,568,291 $ 114,546,231
===============================================
End of period undistributed net investment income ............................... $ 919,154 $ 866,260 $ 231,672
===============================================
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 31
Statements of Changes in Net Assets (concluded)
BlackRock Pennsylvania Municipal Bond Fund
Period
August 1,
2007 to Year Ended July 31,
May 31, ------------------------------
Increase (Decrease) in Net Assets: 2008 2007 2006
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ........................................................... $ 23,342,487 $ 21,731,688 $ 2,999,712
Net realized gain (loss) ........................................................ (5,165,679) 7,485,981 333,738
Net change in unrealized appreciation/depreciation .............................. (11,358,855) (16,380,934) (1,698,932)
-----------------------------------------------
Net increase in net assets resulting from operations ............................ 6,817,953 12,836,735 1,634,518
-----------------------------------------------
===================================================================================================================================
Dividends and Distributions to Shareholders From
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional ................................................................ (19,696,051) (17,510,802) (458,664)
Service ...................................................................... (106,748) (115,809) --
Investor A ................................................................... (1,064,148) (905,101) --
Investor A1 .................................................................. (1,055,910) (1,190,963) (1,147,819)
Investor B ................................................................... (147,441) (172,868) --
Investor B1 .................................................................. (414,612) (613,015) (831,770)
Investor C ................................................................... (178,893) (71,891) --
Investor C1 .................................................................. (496,646) (603,987) (555,476)
Net realized gain:
Institutional ................................................................ (1,219,445) -- --
Service ...................................................................... (6,171) -- --
Investor A ................................................................... (67,888) -- --
Investor A1 .................................................................. (65,987) -- --
Investor B ................................................................... (10,955) -- --
Investor B1 .................................................................. (28,552) -- --
Investor C ................................................................... (12,508) -- --
Investor C1 .................................................................. (35,142) -- --
-----------------------------------------------
Decrease in net assets resulting from dividends and distributions to shareholders (24,607,097) (21,184,436) (2,993,729)
-----------------------------------------------
===================================================================================================================================
Beneficial Interest Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets derived from beneficial interest transactions ........ 9,831,195 518,881,095 244,580
-----------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ......................................... (7,957,949) 510,533,394 (1,114,631)
Beginning of period ............................................................. 582,973,668 72,440,274 73,554,905
===============================================
End of period ................................................................... $ 575,015,719 $ 582,973,668 $ 72,440,274
===============================================
End of period undistributed net investment income ............................... $ 870,350 $ 688,365 $ 73,316
===============================================
See Notes to Financial Statements.
32 ANNUAL REPORT MAY 31, 2008
Financial Highlights Institutional
BlackRock Florida Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.23 $ 10.28 $ 10.47 $ 10.15 $ 10.06 $ 10.20
------------------------------------------------------------------------------
Net investment income 1 .................... 0.41 0.47 0.46 0.49 0.53 0.53
Net realized and unrealized gain (loss) .... (0.40) (0.08) (0.23) 0.32 0.09 (0.14)
------------------------------------------------------------------------------
Net increase from investment operations .... 0.01 0.39 0.23 0.81 0.62 0.39
------------------------------------------------------------------------------
Dividends from net investment income ....... (0.38) (0.44) (0.42) (0.49) (0.53) (0.53)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 9.86 $ 10.23 $ 10.28 $ 10.47 $ 10.15 $ 10.06
==============================================================================
==============================================================================================================================
Total Investment Return 2
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 0.12% 3 3.88% 2.60% 8.19% 6.24% 3.87%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 4 ...................... 0.86% 5 0.84% 0.78% 0.79% 0.78% 0.77%
==============================================================================
Total expenses, after fees waived and
paid indirectly ......................... 1.18% 5 1.16% 1.02% 1.04% 0.89% 0.93%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly .................... 1.18% 5 1.16% 1.02% 1.04% 0.89% 0.93%
==============================================================================
Total expenses ............................. 1.18% 5 1.16% 1.02% 1.04% 0.89% 0.93%
==============================================================================
Net investment income ...................... 4.88% 5 4.49% 4.40% 4.78% 5.15% 5.18%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 18,182 $ 21,357 $ 23,603 $ 20,647 $ 19,681 $ 22,053
==============================================================================
Portfolio turnover ......................... 19% 22% 45% 49% 28% 41%
==============================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of any sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
5 Annualized.
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 33
Financial Highlights (continued) Institutional
BlackRock New Jersey Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.58 $ 10.64 $ 10.73 $ 10.24 $ 10.21 $ 10.43
------------------------------------------------------------------------------
Net investment income 1 .................... 0.39 0.51 0.45 0.48 0.52 0.50
Net realized and unrealized gain (loss) .... (0.28) (0.11) (0.09) 0.48 0.02 (0.21)
------------------------------------------------------------------------------
Net increase from investment operations .... 0.11 0.40 0.36 0.96 0.54 0.29
------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ................. (0.39) (0.46) (0.45) (0.47) (0.51) (0.51)
Net realized gain ..................... -- -- -- 2 -- -- --
------------------------------------------------------------------------------
Total dividends and distributions .......... (0.39) (0.46) (0.45) (0.47) (0.51) (0.51)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 10.30 $ 10.58 $ 10.64 $ 10.73 $ 10.24 $ 10.21
==============================================================================
==============================================================================================================================
Total Investment Return 3
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 1.08% 4 3.80% 3.46% 9.60% 5.35% 2.75%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 5 ...................... 0.66% 6 0.61% 0.81% 0.83% 0.81% 0.83%
==============================================================================
Total expenses, after fees waived and
paid indirectly ......................... 0.84% 6 0.95% 0.93% 1.03% 0.97% 1.03%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly .................... 0.84% 6 0.95% 0.93% 1.03% 0.97% 1.03%
==============================================================================
Total expenses ............................. 0.86% 6 1.04% 0.93% 1.04% 0.98% 1.03%
==============================================================================
Net investment income ...................... 4.50% 6 4.60% 4.26% 4.54% 4.93% 4.88%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $179,560 $173,234 $ 33,316 $ 25,325 $ 15,166 $ 23,582
==============================================================================
Portfolio turnover ......................... 11% 15% 16% 48% 27% 34%
==============================================================================
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effect of any sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
34 ANNUAL REPORT MAY 31, 2008
Financial Highlights (continued) Institutional
BlackRock Pennsylvania Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 11.13 $ 11.18 $ 11.39 $ 11.12 $ 11.03 $ 11.16
------------------------------------------------------------------------------
Net investment income 1 .................... 0.44 0.52 0.50 0.51 0.52 0.54
Net realized and unrealized gain (loss) .... (0.31) (0.08) (0.21) 0.27 0.08 (0.13)
------------------------------------------------------------------------------
Net increase from investment operations .... 0.13 0.44 0.29 0.78 0.60 0.41
------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ................. (0.44) (0.49) (0.50) (0.51) (0.51) (0.54)
Net realized gain ..................... (0.03) -- -- -- -- --
------------------------------------------------------------------------------
Total dividends and distributions .......... (0.47) (0.49) (0.50) (0.51) (0.51) (0.54)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 10.79 $ 11.13 $ 11.18 $ 11.39 $ 11.12 $ 11.03
==============================================================================
==============================================================================================================================
Total Investment Return 2
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 1.18% 3 4.01% 2.59% 7.17% 5.57% 3.69%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 4 ...................... 0.60% 5 0.60% 0.88% 0.91% 0.88% 0.88%
==============================================================================
Total expenses, after fees waived and
paid indirectly ......................... 0.90% 5 1.05% 1.22% 1.13% 0.96% 1.00%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly .................... 0.90% 5 1.05% 1.22% 1.13% 0.96% 1.00%
==============================================================================
Total expenses ............................. 0.92% 5 1.09% 1.23% 1.14% 0.98% 1.01%
==============================================================================
Net investment income ...................... 4.84% 5 4.51% 4.44% 4.55% 4.60% 4.81%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $484,861 $486,395 $ 11,410 $ 9,939 $ 10,536 $ 11,296
==============================================================================
Portfolio turnover ......................... 44% 46% 23% 32% 58% 30%
==============================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of any sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
5 Annualized.
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 35
Financial Highlights (continued) Service
BlackRock New Jersey BlackRock Pennsylvania
Municipal Bond Fund Municipal Bond Fund
----------------------------- -----------------------------
Period Period
August 1, Period August 1, Period
2007 to October 2, 2006 1 2007 to October 2, 2006 1
May 31, to July 31, May 31, to July 31,
2008 2007 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .............................. $ 10.58 $ 10.84 $ 11.13 $ 11.35
------------------------------------------------------------
Net investment income 2 ........................................... 0.38 0.37 0.42 0.38
Net realized and unrealized loss .................................. (0.28) (0.26) (0.30) (0.21)
------------------------------------------------------------
Net increase from investment operations ........................... 0.10 0.11 0.12 0.17
------------------------------------------------------------
Dividends and distributions from:
Net investment income ........................................ (0.38) (0.37) (0.42) (0.39)
Net realized gain ............................................ -- _ (0.03) --
------------------------------------------------------------
Total dividends and distributions ................................. (0.38) (0.37) (0.45) (0.39)
------------------------------------------------------------
Net asset value, end of period .................................... $ 10.30 $ 10.58 $ 10.80 $ 11.13
============================================================
===================================================================================================================================
Total Investment Return
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .......................................... 0.92% 3 0.96% 3 1.09% 3 1.48% 3
============================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 5 ............................................. 0.85% 4 0.85% 4 0.82% 4 0.84% 4
============================================================
Total expenses, after fees waived and
paid indirectly ................................................ 1.03% 4 1.19% 4 1.12% 4 1.29% 4
============================================================
Total expenses, after fees waived and before
fees paid indirectly ........................................... 1.03% 4 1.19% 4 1.12% 4 1.29% 4
============================================================
Total expenses .................................................... 1.17% 4 1.37% 4 1.17% 4 1.37% 4
============================================================
Net investment income ............................................. 4.32% 4 4.36% 4 4.57% 4 4.27% 4
============================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ................................... $ 11,569 $ 12,849 $ 2,435 $ 3,316
============================================================
Portfolio turnover ................................................ 11% 15% 44% 46%
============================================================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Aggregate total investment return.
4 Annualized.
5 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
See Notes to Financial Statements.
36 ANNUAL REPORT MAY 31, 2008
Financial Highlights (continued) Investor A
BlackRock Florida BlackRock New Jersey BlackRock Pennsylvania
Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund
------------------------- ------------------------- ------------------------
Period Period Period Period Period Period
August 1, October 2, August 1, October 2, August 1, October 2,
2007 to 2006 1 2007 to 2006 1 2007 to 2006 1
May 31, to July 31, May 31, to July 31, May 31, to July 31,
2008 2007 2008 2007 2008 2007
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.20 $ 10.40 $ 10.59 $ 10.85 $ 11.14 $ 11.36
--------------------------------------------------------------------------------
Net investment income 2 .................... 0.39 0.33 0.37 0.36 0.42 0.38
Net realized and unrealized loss ........... (0.39) (0.18) (0.27) (0.25) (0.30) (0.21)
--------------------------------------------------------------------------------
Net increase from investment operations .... -- 0.15 0.10 0.11 0.12 0.17
--------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ................. (0.36) (0.35) (0.38) (0.37) (0.42) (0.39)
Net realized gain ..................... -- -- -- -- (0.03) --
--------------------------------------------------------------------------------
Total dividends and distributions .......... (0.36) (0.35) (0.38) (0.37) (0.45) (0.39)
--------------------------------------------------------------------------------
Net asset value, end of period ............. $ 9.84 $ 10.20 $ 10.31 $ 10.59 $ 10.81 $ 11.14
================================================================================
================================================================================================================================
Total Investment Return 3
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 0.03% 4 1.42% 4 0.93% 4 0.97% 4 1.07% 4 1.49% 4
================================================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 6 ...................... 1.08% 5 1.10% 5 0.84% 5 0.85% 5 0.84% 5 0.83% 5
================================================================================
Total expenses, after fees waived and
paid indirectly ......................... 1.39% 5 1.42% 5 1.02% 5 1.19% 5 1.14% 5 1.28% 5
================================================================================
Total expenses, after fees waived and before
fees paid indirectly .................... 1.40% 5 1.42% 5 1.02% 5 1.19% 5 1.14% 5 1.28% 5
================================================================================
Total expenses ............................. 1.40% 5 1.42% 5 1.13% 5 1.32% 5 1.21% 5 1.39% 5
================================================================================
Net investment income ...................... 4.68% 5 4.25% 5 4.32% 5 4.37% 5 4.59% 5 4.28% 5
================================================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 3,611 $ 3,248 $ 21,564 $ 15,693 $ 28,827 $ 27,782
================================================================================
Portfolio turnover ......................... 19% 22% 11% 15% 44% 46%
================================================================================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Total investment returns exclude the effect of sales charges.
4 Aggregate total investment return.
5 Annualized.
6 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 37
Financial Highlights (continued) Investor A1
BlackRock Florida Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.21 $ 10.26 $ 10.45 $ 10.14 $ 10.04 $ 10.19
------------------------------------------------------------------------------
Net investment income 1 .................... 0.40 0.45 0.45 0.48 0.52 0.52
Net realized and unrealized gain (loss) .... (0.40) (0.06) (0.20) 0.31 0.10 (0.15)
------------------------------------------------------------------------------
Net increase from investment operations .... -- 0.39 0.25 0.79 0.62 0.37
------------------------------------------------------------------------------
Dividends from net investment income ....... (0.37) (0.44) (0.44) (0.48) (0.52) (0.52)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 9.84 $ 10.21 $ 10.26 $ 10.45 $ 10.14 $ 10.04
==============================================================================
==============================================================================================================================
Total Investment Return 2
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 0.05% 3 3.78% 2.49% 7.98% 6.24% 3.66%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 4 ........................ 0.95% 5 0.93% 0.88% 0.89% 0.87% 0.88%
==============================================================================
Total expenses, after fees waived and
paid indirectly ........................... 1.26% 5 1.25% 1.12% 1.14% 0.99% 1.03%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly ...................... 1.26% 5 1.25% 1.12% 1.14% 0.99% 1.03%
==============================================================================
Total expenses ............................. 1.26% 5 1.25% 1.12% 1.14% 0.99% 1.03%
==============================================================================
Net investment income ...................... 4.80% 5 4.42% 4.30% 4.68% 5.05% 5.08%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 47,297 $ 51,685 $ 59,210 $ 59,586 $ 57,521 $ 57,610
==============================================================================
Portfolio turnover ......................... 19% 22% 45% 49% 28% 41%
==============================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
5 Annualized.
See Notes to Financial Statements.
38 ANNUAL REPORT MAY 31, 2008
Financial Highlights (continued) Investor A1
BlackRock New Jersey Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.59 $ 10.66 $ 10.73 $ 10.24 $ 10.22 $ 10.43
------------------------------------------------------------------------------
Net investment income 1 .................... 0.39 0.48 0.44 0.47 0.51 0.50
Net realized and unrealized gain (loss) .... (0.28) (0.10) (0.07) 0.48 0.01 (0.21)
------------------------------------------------------------------------------
Net increase from investment operations .... 0.11 0.38 0.37 0.95 0.52 0.29
------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ................. (0.39) (0.45) (0.44) (0.46) (0.50) (0.50)
Net realized gain ..................... -- -- -- 2 -- -- --
------------------------------------------------------------------------------
Total dividends and distributions .......... (0.39) (0.45) (0.44) (0.46) (0.50) (0.50)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 10.31 $ 10.59 $ 10.66 $ 10.73 $ 10.24 $ 10.22
==============================================================================
==============================================================================================================================
Total Investment Return 3
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 1.05% 4 3.60% 3.55% 9.49% 5.14% 2.76%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 5 ...................... 0.70% 6 0.74% 0.91% 0.93% 0.91% 0.93%
==============================================================================
Total expenses, after fees waived and
paid indirectly ......................... 0.88% 6 1.08% 1.03% 1.13% 1.08% 1.13%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly .................... 0.88% 6 1.08% 1.03% 1.13% 1.08% 1.13%
==============================================================================
Total expenses ............................. 1.01% 6 1.19% 1.03% 1.14% 1.08% 1.13%
==============================================================================
Net investment income ...................... 4.47% 6 4.46% 4.16% 4.45% 4.85% 4.79%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 38,082 $ 39,546 $ 40,676 $ 34,618 $ 32,863 $ 27,868
==============================================================================
Portfolio turnover ......................... 11% 15% 16% 48% 27% 34%
==============================================================================
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effect of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 39
Financial Highlights (continued) Investor A1
BlackRock Pennsylvania Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 11.14 $ 11.20 $ 11.41 $ 11.13 $ 11.05 $ 11.17
------------------------------------------------------------------------------
Net investment income 1 .................... 0.44 0.50 0.49 0.50 0.51 0.53
Net realized and unrealized gain (loss) .... (0.31) (0.07) (0.26) 0.28 0.08 (0.12)
------------------------------------------------------------------------------
Net increase from investment operations .... 0.13 0.43 0.23 0.78 0.59 0.41
------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ................. (0.43) (0.49) (0.44) (0.50) (0.51) (0.53)
Net realized gain ..................... (0.03) -- -- -- -- --
------------------------------------------------------------------------------
Total dividends and distributions .......... (0.46) (0.49) (0.44) (0.50) (0.51) (0.53)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 10.81 $ 11.14 $ 11.20 $ 11.41 $ 11.13 $ 11.05
==============================================================================
==============================================================================================================================
Total Investment Return 2
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 1.19% 3 3.81% 2.49% 7.16% 5.37% 3.69%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 4 ...................... 0.70% 5 0.76% 0.98% 1.01% 0.98% 0.98%
==============================================================================
Total expenses, after fees waived and
paid indirectly ......................... 0.99% 5 1.21% 1.32% 1.23% 1.06% 1.10%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly .................... 0.99% 5 1.21% 1.32% 1.23% 1.06% 1.10%
==============================================================================
Total expenses ............................. 1.08% 5 1.28% 1.33% 1.24% 1.08% 1.11%
==============================================================================
Net investment income ...................... 4.74% 5 4.40% 4.34% 4.45% 4.50% 4.69%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 25,560 $ 27,931 $ 26,987 $ 26,024 $ 25,432 $ 23,460
==============================================================================
Portfolio turnover ......................... 44% 46% 23% 32% 58% 30%
==============================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
5 Annualized.
See Notes to Financial Statements.
40 ANNUAL REPORT MAY 31, 2008
Financial Highlights (continued) Investor B
BlackRock Florida Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.23 $ 10.28 $ 10.47 $ 10.15 $ 10.06 $ 10.20
------------------------------------------------------------------------------
Net investment income 1 .................... 0.37 0.41 0.40 0.44 0.48 0.48
Net realized and unrealized gain (loss) .... (0.40) (0.07) (0.19) 0.32 0.09 (0.14)
------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................... (0.03) 0.34 0.21 0.76 0.57 0.34
------------------------------------------------------------------------------
Dividends from net investment income ....... (0.34) (0.39) (0.40) (0.44) (0.48) (0.48)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 9.86 $ 10.23 $ 10.28 $ 10.47 $ 10.15 $ 10.06
==============================================================================
==============================================================================================================================
Total Investment Return 2
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... (0.29%) 3 3.36% 2.08% 7.65% 5.70% 3.35%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 4 ...................... 1.35% 5 1.33% 1.29% 1.30% 1.28% 1.28%
==============================================================================
Total expenses, after fees waived and
paid indirectly ......................... 1.67% 5 1.65% 1.52% 1.55% 1.40% 1.43%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly .................... 1.67% 5 1.65% 1.52% 1.55% 1.40% 1.43%
==============================================================================
Total expenses ............................. 1.67% 5 1.65% 1.52% 1.55% 1.40% 1.44%
==============================================================================
Net investment income ...................... 4.39% 5 4.00% 3.90% 4.29% 4.64% 4.67%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 12,804 $ 16,955 $ 25,614 $ 35,340 $ 41,705 $ 61,098
==============================================================================
Portfolio turnover ......................... 19% 22% 45% 49% 28% 41%
==============================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
5 Annualized.
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 41
Financial Highlights (continued) Investor B
BlackRock New Jersey BlackRock Pennsylvania
Municipal Bond Fund Municipal Bond Fund
------------------------- --------------------------
Period Period Period Period
August 1, October 2, August 1, October 2,
2007 to 2006 1 2007 to 2006 1
May 31, to July 31, May 31, to July 31,
2008 2007 2008 2007
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................ $ 10.58 $ 10.84 $ 11.13 $ 11.35
---------------------------------------------------------
Net investment income 2 ............................................. 0.31 0.31 0.37 0.33
Net realized and unrealized loss .................................... (0.28) (0.27) (0.31) (0.22)
---------------------------------------------------------
Net increase from investment operations ............................. 0.03 0.04 0.06 0.11
---------------------------------------------------------
Dividends and distributions from:
Net investment income .......................................... (0.31) (0.30) (0.36) (0.33)
Net realized gain .............................................. -- -- (0.03) --
---------------------------------------------------------
Total dividends and distributions ................................... (0.31) (0.30) (0.39) (0.33)
---------------------------------------------------------
Net asset value, end of period ...................................... $ 10.30 $ 10.58 $ 10.80 $ 11.13
=========================================================
==================================================================================================================================
Total Investment Return 3
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................ 0.31% 4 0.34% 4 0.57% 4 0.93% 4
=========================================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 6 ............................................... 1.57% 5 1.60% 5 1.45% 5 1.51% 5
=========================================================
Total expenses, after fees waived and
paid indirectly .................................................. 1.75% 5 1.94% 5 1.74% 5 1.96% 5
=========================================================
Total expenses, after fees waived and before
fees paid indirectly ............................................. 1.75% 5 1.94% 5 1.74% 5 1.96% 5
=========================================================
Total expenses ...................................................... 1.89% 5 2.09% 5 1.86% 5 2.19% 5
=========================================================
Net investment income ............................................... 3.59% 5 3.61% 5 3.99% 5 3.60% 5
=========================================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ..................................... $ 6,869 $ 8,622 $ 3,447 $ 5,206
=========================================================
Portfolio turnover .................................................. 11% 15% 44% 46%
=========================================================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Total investment returns exclude the effect of sales charges.
4 Aggregate total investment return.
5 Annualized.
6 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
See Notes to Financial Statements.
42 ANNUAL REPORT MAY 31, 2008
Financial Highlights (continued) Investor B1
BlackRock New Jersey Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.58 $ 10.65 $ 10.73 $ 10.24 $ 10.22 $ 10.43
------------------------------------------------------------------------------
Net investment income 1 .................... 0.36 0.44 0.40 0.43 0.46 0.46
Net realized and unrealized gain (loss) .... (0.29) (0.10) (0.09) 0.48 0.02 (0.22)
------------------------------------------------------------------------------
Net increase from investment operations .... 0.07 0.34 0.31 0.91 0.48 0.24
------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ................. (0.35) (0.41) (0.39) (0.42) (0.46) (0.45)
Net realized gain ..................... -- -- -- 2 -- -- --
------------------------------------------------------------------------------
Total dividends and distributions .......... (0.35) (0.41) (0.39) (0.42) (0.46) (0.45)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 10.30 $ 10.58 $ 10.65 $ 10.73 $ 10.24 $ 10.22
==============================================================================
==============================================================================================================================
Total Investment Return 3
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 0.71% 4 3.19% 3.03% 9.04% 4.71% 2.34%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 5 ...................... 1.10% 6 1.14% 1.33% 1.34% 1.32% 1.34%
==============================================================================
Total expenses, after fees waived and
paid indirectly ......................... 1.28% 6 1.48% 1.44% 1.54% 1.48% 1.54%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly .................... 1.28% 6 1.48% 1.44% 1.54% 1.48% 1.54%
==============================================================================
Total expenses ............................. 1.41% 6 1.60% 1.44% 1.55% 1.49% 1.54%
==============================================================================
Net investment income ...................... 4.07% 6 4.05% 3.75% 4.06% 4.44% 4.37%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 12,386 $ 15,723 $ 20,920 $ 26,893 $ 31,781 $ 44,968
==============================================================================
Portfolio turnover ......................... 11% 15% 16% 48% 27% 34%
==============================================================================
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effect of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 43
Financial Highlights (continued) Investor B1
BlackRock Pennsylvania Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 11.13 $ 11.18 $ 11.39 $ 11.12 $ 11.03 $ 11.16
------------------------------------------------------------------------------
Net investment income 1 .................... 0.40 0.45 0.44 0.46 0.46 0.49
Net realized and unrealized gain (loss) .... (0.32) (0.06) (0.21) 0.27 0.09 (0.14)
------------------------------------------------------------------------------
Net increase from investment operations .... 0.08 0.39 0.23 0.73 0.55 0.35
------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ................. (0.39) (0.44) (0.44) (0.46) (0.46) (0.48)
Net realized gain ..................... (0.03) -- -- -- -- --
------------------------------------------------------------------------------
Total dividends and distributions .......... (0.42) (0.44) (0.44) (0.46) (0.46) (0.48)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 10.79 $ 11.13 $ 11.18 $ 11.39 $ 11.12 $ 11.03
==============================================================================
==============================================================================================================================
Total Investment Return 2
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 0.76% 3 3.49% 2.07% 6.63% 5.04% 3.18%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 4 ....................... 1.10% 5 1.17% 1.39% 1.42% 1.38% 1.39%
==============================================================================
Total expenses, after fees waived and
paid indirectly .......................... 1.39% 5 1.62% 1.73% 1.64% 1.47% 1.51%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly ..................... 1.39% 5 1.62% 1.73% 1.64% 1.47% 1.51%
==============================================================================
Total expenses ............................. 1.47% 5 1.70% 1.74% 1.65% 1.48% 1.52%
==============================================================================
Net investment income ...................... 4.34% 5 4.00% 3.93% 4.05% 4.09% 4.31%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 9,984 $ 12,856 $ 18,402 $ 23,965 $ 28,749 $ 43,099
==============================================================================
Portfolio turnover ......................... 44% 46% 23% 32% 58% 30%
==============================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
5 Annualized.
See Notes to Financial Statements.
44 ANNUAL REPORT MAY 31, 2008
Financial Highlights (continued) Investor C
BlackRock Florida BlackRock New Jersey BlackRock Pennsylvania
Municipal Bond Fund Municipal Bond Fund Municipal Bond Fund
------------------------- ------------------------- ------------------------
Period Period Period Period Period Period
August 1, October 2, August 1, October 2, August 1, October 2,
2007 to 2006 1 2007 to 2006 1 2007 to 2006 1
May 31, to July 31, May 31, to July 31, May 31, to July 31,
2008 2007 2008 2007 2008 2007
================================================================================================================================
Per Share Operating Performance
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.20 $ 10.40 $ 10.57 $ 10.84 $ 11.14 $ 11.35
--------------------------------------------------------------------------------
Net investment income 2 .................... 0.33 0.26 0.31 0.30 0.35 0.30
Net realized and unrealized loss ........... (0.41) (0.18) (0.27) (0.27) (0.31) (0.19)
--------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................... (0.08) 0.08 0.04 0.03 0.04 0.11
--------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ................. (0.29) (0.28) (0.31) (0.30) (0.35) (0.32)
Net realized gain ..................... -- -- -- -- (0.03) --
--------------------------------------------------------------------------------
Total dividends and distributions .......... (0.29) (0.28) (0.31) (0.30) (0.38) (0.32)
--------------------------------------------------------------------------------
Net asset value, end of period ............. $ 9.83 $ 10.20 $ 10.30 $ 10.57 $ 10.80 $ 11.14
================================================================================
================================================================================================================================
Total Investment Return 3
- --------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... (0.72%) 4 0.78% 4 0.40% 4 0.25% 4 0.34% 4 0.95% 4
================================================================================
================================================================================================================================
Ratios to Average Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 6 ....................... 1.87% 5 1.89% 5 1.58% 5 1.60% 5 1.59% 5 1.60% 5
================================================================================
Total expenses, after fees waived and
paid indirectly .......................... 2.19% 5 2.21% 5 1.76% 5 1.94% 5 1.89% 5 2.04% 5
================================================================================
Total expenses, after fees waived and before
fees paid indirectly ..................... 2.19% 5 2.21% 5 1.76% 5 1.94% 5 1.89% 5 2.04% 5
================================================================================
Total expenses ............................. 2.19% 5 2.21% 5 1.89% 5 2.09% 5 1.96% 5 2.15% 5
================================================================================
Net investment income ...................... 3.90% 5 3.47% 5 3.57% 5 3.63% 5 3.83% 5 3.53% 5
================================================================================
================================================================================================================================
Supplemental Data
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 2,329 $ 1,411 $ 10,480 $ 7,253 $ 7,166 $ 4,160
================================================================================
Portfolio turnover ......................... 19% 22% 11% 15% 44% 46%
================================================================================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Total investment returns exclude the effect of sales charges.
4 Aggregate total investment return.
5 Annualized.
6 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
See Notes to Financial Statements.
ANNUAL REPORT MAY 31, 2008 45
Financial Highlights (continued) Investor C1
BlackRock Florida Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.21 $ 10.26 $ 10.45 $ 10.14 $ 10.04 $ 10.18
------------------------------------------------------------------------------
Net investment income 1 .................... 0.36 0.41 0.39 0.43 0.47 0.47
Net realized and unrealized gain (loss) .... (0.40) (0.08) (0.19) 0.31 0.10 (0.14)
------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................... (0.04) 0.33 0.20 0.74 0.57 0.33
------------------------------------------------------------------------------
Dividends from net investment income ....... (0.33) (0.38) (0.39) (0.43) (0.47) (0.47)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 9.84 $ 10.21 $ 10.26 $ 10.45 $ 10.14 $ 10.04
==============================================================================
==============================================================================================================================
Total Investment Return 2
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... (0.37%) 3 3.26% 1.98% 7.44% 5.70% 3.24%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 4 ....................... 1.44% 5 1.44% 1.39% 1.40% 1.38% 1.38%
==============================================================================
Total expenses, after fees waived and
paid indirectly .......................... 1.76% 5 1.75% 1.62% 1.65% 1.50% 1.54%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly ..................... 1.76% 5 1.75% 1.62% 1.65% 1.50% 1.54%
==============================================================================
Total expenses ............................. 1.76% 5 1.75% 1.62% 1.65% 1.50% 1.54%
==============================================================================
Net investment income ...................... 4.30% 5 3.91% 3.80% 4.17% 4.54% 4.57%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 11,504 $ 15,377 $ 17,472 $ 16,229 $ 13,381 $ 14,759
==============================================================================
Portfolio turnover ......................... 19% 22% 45% 49% 28% 41%
==============================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
5 Annualized.
See Notes to Financial Statements.
46 ANNUAL REPORT MAY 31, 2008
Financial Highlights (continued) Investor C1
BlackRock New Jersey Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 10.58 $ 10.64 $ 10.73 $ 10.24 $ 10.21 $ 10.42
------------------------------------------------------------------------------
Net investment income 1 .................... 0.35 0.43 0.39 0.41 0.45 0.45
Net realized and unrealized gain (loss) .... (0.28) (0.09) (0.10) 0.49 0.02 (0.22)
------------------------------------------------------------------------------
Net increase from investment operations .... 0.07 0.34 0.29 0.90 0.47 0.23
------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ................. (0.35) (0.40) (0.38) (0.41) (0.44) (0.44)
Net realized gain ..................... -- -- -- 2 -- -- --
------------------------------------------------------------------------------
Total dividends and distributions .......... (0.35) (0.40) (0.38) (0.41) (0.44) (0.44)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 10.30 $ 10.58 $ 10.64 $ 10.73 $ 10.24 $ 10.21
==============================================================================
==============================================================================================================================
Total Investment Return 3
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 0.63% 4 3.18% 2.83% 8.94% 4.71% 2.24%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 5 ....................... 1.20% 6 1.24% 1.42% 1.44% 1.42% 1.44%
==============================================================================
Total expenses, after fees waived and
paid indirectly .......................... 1.37% 6 1.58% 1.53% 1.64% 1.58% 1.63%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly ..................... 1.37% 6 1.58% 1.53% 1.64% 1.58% 1.63%
==============================================================================
Total expenses ............................. 1.49% 6 1.68% 1.54% 1.65% 1.59% 1.64%
==============================================================================
Net investment income ...................... 3.97% 6 3.95% 3.65% 3.94% 4.34% 4.28%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 16,232 $ 18,648 $ 19,634 $ 16,040 $ 14,903 $ 15,505
==============================================================================
Portfolio turnover ......................... 11% 15% 16% 48% 27% 34%
==============================================================================
1 Based on average shares outstanding.
2 Amount is less than $(0.01) per share.
3 Total investment returns exclude the effect of sales charges.
4 Aggregate total investment return.
5 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
ANNUAL REPORT MAY 31, 2008 47
See Notes to Financial Statements.
Financial Highlights (concluded) Investor C1
BlackRock Pennsylvania Municipal Bond Fund
------------------------------------------------------------------------------
Period
August 1,
2007 to Year Ended July 31,
May 31, ----------------------------------------------------------------
2008 2007 2006 2005 2004 2003
==============================================================================================================================
Per Share Operating Performance
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ....... $ 11.13 $ 11.19 $ 11.39 $ 11.12 $ 11.03 $ 11.16
------------------------------------------------------------------------------
Net investment income 1 .................... 0.39 0.44 0.43 0.45 0.45 0.47
Net realized and unrealized gain (loss) .... (0.32) (0.07) (0.20) 0.26 0.09 (0.13)
------------------------------------------------------------------------------
Net increase from investment operations .... 0.07 0.37 0.23 0.71 0.54 0.34
------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ................. (0.38) (0.43) (0.43) (0.44) (0.45) (0.47)
Net realized gain ..................... (0.03) -- -- -- -- --
------------------------------------------------------------------------------
Total dividends and distributions .......... (0.41) (0.43) (0.43) (0.44) (0.45) (0.47)
------------------------------------------------------------------------------
Net asset value, end of period ............. $ 10.79 $ 11.13 $ 11.19 $ 11.39 $ 11.12 $ 11.03
==============================================================================
==============================================================================================================================
Total Investment Return 2
- ------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................... 0.68% 3 3.29% 2.06% 6.53% 4.93% 3.07%
==============================================================================
==============================================================================================================================
Ratios to Average Net Assets
- ------------------------------------------------------------------------------------------------------------------------------
Total expenses, after fees waived and paid
indirectly and excluding interest
expense and fees 4 ....................... 1.20% 5 1.26% 1.48% 1.52% 1.49% 1.49%
==============================================================================
Total expenses, after fees waived and
paid indirectly .......................... 1.49% 5 1.71% 1.82% 1.74% 1.57% 1.61%
==============================================================================
Total expenses, after fees waived and before
fees paid indirectly ..................... 1.49% 5 1.71% 1.82% 1.74% 1.57% 1.61%
==============================================================================
Total expenses ............................. 1.56% 5 1.77% 1.84% 1.75% 1.59% 1.62%
==============================================================================
Net investment income ...................... 4.24% 5 3.90% 3.83% 3.94% 3.99% 4.18%
==============================================================================
==============================================================================================================================
Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ............ $ 12,736 $ 15,327 $ 15,642 $ 13,626 $ 13,260 $ 13,309
==============================================================================
Portfolio turnover ......................... 44% 46% 23% 32% 58% 30%
==============================================================================
1 Based on average shares outstanding.
2 Total investment returns exclude the effect of sales charges.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
5 Annualized.
See Notes to Financial Statements.
48 ANNUAL REPORT MAY 31, 2008
Notes to Financial Statements
1. Significant Accounting Policies:
BlackRock Florida Municipal Bond Fund, BlackRock New Jersey Municipal Bond Fund
and BlackRock Pennsylvania Municipal Bond Fund (the "Funds" or each a "Fund"),
each a series of BlackRock Multi-State Municipal Series Trust (the "Trust"), are
registered under the Investment Company Act of 1940, as amended (the "1940
Act"), as non-diversified, open-end management investment companies. The Funds'
financial statements are prepared in conformity with accounting principles
generally accepted in the United States of America, which may require the use of
management accruals and estimates. Actual results may differ from these
estimates. The Funds recently changed their fiscal year end to May 31. Each Fund
offers multiple classes of shares. Institutional and Service Shares are sold
only to certain eligible investors. Investor A Shares are generally sold with a
front-end sales charge. Investor A1, Investor B, Investor B1 and Investor C1
Shares are not generally available except for dividend and capital gains
investment. 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 material changes to the
Investor A and Investor A1 distribution plans).
The following is a summary of significant accounting policies followed by the
Funds:
Valuation of Investments: Municipal investments (including commitments to
purchase such investments on a "when-issued" basis) are valued on the basis of
prices provided by dealers or pricing services selected under the supervision of
the Trust's Board of Trustees (the "Board"). In determining the value of a
particular investment, pricing services may use certain information with respect
to transactions in such investments, quotations from bond dealers, pricing
matrixes, market transactions in comparable investments and various
relationships between investments. Swap agreements are valued by quoted fair
values received daily by the Trust's pricing service or through brokers.
Financial futures contracts are traded on exchanges and are valued at their last
sale price. Short-term securities are valued at amortized cost.
In the event that application of these methods of valuation results in a price
for an investment which is deemed not to be representative of the market value
of such investment, the investment will be valued by a method approved by the
Board as reflecting fair value ("Fair Value Assets"). When determining the price
for Fair Value Assets the investment advisor and/or the sub-advisor seeks to
determine the price that each Fund might reasonably expect to receive from the
current sale of that asset in an arm's-length transaction. Fair value
determinations shall be based upon all available factors that the investment
advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets
is subsequently reported to the Board or a committee thereof.
Derivative Financial Instruments: The Funds may engage in various portfolio
investment strategies to increase the return of the Fund and to hedge, or
protect, their exposure to interest rate movements and movements in the
securities markets. Losses may arise if the value of the contract decreases due
to an unfavorable change in the price of the underlying security or if the
counterparty does not perform under contract.
o Financial futures contracts -- The Funds 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 Funds deposit, and maintains as
collateral such initial margin as required by the exchange on which the
transaction is effected. Pursuant to the contract, the Funds agree to
receive from or pay to the broker an amount of cash equal to the daily
fluctuation in value of the contract. Such receipts or payments are known
as margin variation and are recognized by the Funds as unrealized gains or
losses. When the contract is closed, the Funds record a realized gain or
loss equal to the difference between the value of the contract at the time
it was opened and the value at the time it was closed.
o Forward interest rate swaps -- The Funds may enter into forward interest
rate swaps. In a forward interest rate swap, the Fund and the counterparty
agree to make periodic net payments on a specified notional contract
amount, commencing on a specified future effective date, unless terminated
earlier. These periodic payments received or made by the Fund are recorded
in the accompanying Statements 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). When the swap is
terminated, the Funds will record a realized gain or loss equal to the
difference between the proceeds from (or cost of) the closing transaction
and the Funds' basis in the contract, if any. The Funds generally intend
to close each forward interest rate swap before the accrual date specified
in the agreement and therefore avoid entering into the interest rate swap
underlying each forward interest rate swap.
Forward Commitments and When-Issued Delayed Delivery Securities: The Funds may
purchase securities on a when-issued basis and may purchase or sell securities
on a forward commitment basis. Settlement of such transactions normally occurs
within a month or more after the purchase or sale commitment is made. The Funds
may purchase securities under such conditions only with the intention of
actually acquiring them, but may enter into a separate agreement to sell the
securities before the settlement date.
ANNUAL REPORT MAY 31, 2008 49
Notes to Financial Statements (continued)
Since the value of securities purchased may fluctuate prior to settlement, the
Funds may be required to pay more at settlement than the security is worth. In
addition, the purchaser is not entitled to any of the interest earned prior to
settlement. Upon making a commitment to purchase a security on a when-issued
basis, the Funds will hold liquid assets worth at least the equivalent of the
amount due.
Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds leverage
their assets through the use of tender option bond trusts ("TOBs"). A TOB is
established by a third party sponsor forming a special purpose entity, into
which one or more funds, or an agent on behalf of the funds, transfers municipal
securities. Other funds managed by the investment advisor may also contribute
municipal securities to a TOB into which the Funds have contributed securities.
A TOB typically issues two classes of beneficial interests: short-term floating
rate certificates, which are sold to third party investors, and residual
certificates ("TOB Residuals"), which are generally issued to the participating
funds that made the transfer or to affiliates of the Funds. The TOB Residuals
held by a Fund include the right of the Fund (1) to cause the holders of a
proportional share of the floating rate certificates to tender their
certificates at par, and (2) to transfer, within seven days, a corresponding
share of the municipal securities from the TOB to the Fund. The cash received by
the TOB from the sale of the short-term floating rate certificates, less
transaction expenses, is paid to the Fund, which typically invests the cash in
additional municipal securities. Each Fund's transfer of the municipal
securities to a TOB is accounted for as a secured borrowing, therefore the
municipal securities deposited into a TOB are presented in the Funds' Schedule
of Investments and the proceeds from the transaction are reported as a liability
of the Fund. Similarly, proceeds from residual certificates issued to
affiliates, if any, from the transaction are included in liability for trust
certificates.
Interest income from the underlying security is recorded by the Funds on an
accrual basis. Interest expense incurred on the secured borrowing and other
expenses related to remarketing, administration and trustee services to a TOB
are reported as expenses of the Funds. The floating rate certificates have
interest rates that generally reset weekly and their holders have the option to
tender certificates to the TOB for redemption at par at each reset date. At May
31, 2008, the aggregate value of the underlying municipal securities transferred
to TOBs, the related liability for trust certificates and the range of interest
rates on the trust certificates were as follows:
- --------------------------------------------------------------------------------
Underlying
Municipal Liability
Bonds for
Transferred Trust Range of
to TOBs Certificates Interest Rates
- --------------------------------------------------------------------------------
BlackRock Florida Municipal
Bond Fund ...................... $20,811,469 $9,807,764 1.67% - 3.058%
BlackRock New Jersey Municipal
Bond Fund ...................... $ 6,460,847 $3,875,000 1.67% - 2.291%
BlackRock Pennsylvania Municipal
Bond Fund ...................... $15,949,616 $8,300,000 2.84% - 3.147%
- --------------------------------------------------------------------------------
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'
investment in TOBs likely will adversely affect the Funds' net investment income
and dividends to shareholders. Fluctuations in the market value of municipal
securities deposited into the TOB may adversely affect the Funds' net asset
values per share.
Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally
issued at a significant discount from face value and do not provide for periodic
interest payments. Zero-coupon bonds may experience greater volatility in market
value than similar maturity debt obligations which provide for regular interest
payments.
Segregation: In cases in which the 1940 Act and the interpretive positions of
the Securities and Exchange Commission ("SEC") require that each Fund segregate
assets in connection with certain investments (e.g., when-issued securities or
swaps), each Fund will, consistent with certain interpretive letters issued by
the SEC, designate on its books and records cash or other liquid debt securities
having a market value at least equal to the amount that would otherwise be
required to be physically segregated.
Investment Transactions and Investment Income: Investment 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. Income and realized and unrealized
gains and losses are allocated daily to each class based on its relative net
assets.
Dividends and Distributions: Dividends from net investment income are declared
daily and paid monthly. Distributions of capital gains are recorded on the
ex-dividend dates.
Income Taxes: It is the Funds' policy to comply with the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute substantially all of their taxable income to their shareholders.
Therefore, no federal income tax provision is required.
Effective January 31, 2008, the Funds implemented Financial Accounting Standards
Board ("FASB") Interpretation No. 48, "Accounting for Uncertainty in Income
Taxes -- an interpretation of FASB Statement No. 109" ("FIN 48"). 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 investment companies, before being
measured and recognized in the financial statements. The investment advisor has
evaluated the application of FIN 48 to the Funds, and has determined that the
adoption of FIN 48 does not have a material impact on the Funds' financial
statements.
50 ANNUAL REPORT MAY 31, 2008
Notes to Financial Statements (continued)
The Funds file U.S. federal and various state and local tax returns. No income
tax returns are currently under examination. The statute of limitations on the
Funds' U.S. federal tax returns remains open for the years ended July 31, 2005
through July 31, 2007. The statutes of limitations on the Funds' state and local
tax returns may remain open for an additional year depending upon the
jurisdiction.
Recent Accounting Pronouncements: In 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. The impact on the Funds' financial
statement disclosures, if any, is currently being assessed.
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. 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. The impact on the Funds' financial statement disclosures, if any,
is currently being assessed.
In March 2008, Statement of Financial Accounting Standards No. 161, "Disclosures
about Derivative Instruments and Hedging Activities -- an amendment of FASB
Statement No. 133" ("FAS 161"), was issued and is effective effective for fiscal
years beginning after November 15, 2008. FAS 161 is intended to improve
financial reporting for derivative instruments by requiring enhanced disclosure
that enables investors to understand how and why an entity uses derivatives, how
derivatives are accounted for, and how derivative instruments affect an entity's
results of operations and financial position. The impact on the Funds' financial
statement disclosures, if any, is currently being assessed.
Other: Expenses directly related to the Funds' or their classes are charged to
the Fund or class. Other operating expenses shared by several funds are
pro-rated among those funds on the basis of relative net assets or other
appropriate methods. Other expenses of the Funds are allocated daily to each
class based on its relative net assets.
2. Investment Advisory Agreement and Other Transactions with Affiliates:
The Funds have entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the "Advisor"), an indirect, wholly owned subsidiary of
BlackRock, Inc., to provide investment advisory and administration services.
Merrill Lynch & Co., Inc. ("Merrill Lynch") and The PNC Financial Services
Group, Inc. ("PNC") are principal owners of BlackRock, Inc.
The Funds have 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 Advisor is responsible for the management of each Funds' 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 the Advisor a monthly fee based upon the average daily value of the Fund's
net assets at the following annual rates: 0.55% of the Funds' average daily net
assets not exceeding $500 million; 0.525% of average daily net assets in excess
of $500 million but not exceeding $1 billion; and 0.50% of average daily net
assets in excess of $1 billion.
The Advisor, with respect to BlackRock New Jersey Municipal Bond Fund, has
voluntarily agreed to waive 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: 0.85% (for Service and Investor A Shares), 0.70
(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).
The Advisor with respect to BlackRock Pennsylvania Municipal Bond Fund, has
voluntarily 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) in order to limit expenses as follows: 0.85% (for
Service and Investor A Shares), 0.70 (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 period August 1, 2007 to May 31, 2008, the fees and waivers, which are
included in fees waived by advisor on the Statements of Operations were as
follows:
- --------------------------------------------------------------------------------
Fees Fees Waived
Earned by Advisor
- --------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund ........ $1,331,157 $133,079
BlackRock Pennsylvania Municipal Bond Fund ...... $2,661,489 $ 54,214
- --------------------------------------------------------------------------------
The Advisor may reduce or discontinue these arrangements at any time without
notice. The Advisor has also agreed to waive its advisory fees by the amount of
investment advisory fees each Fund pays to the Advisor indirectly through its
investment in affiliated money market funds. These amounts are included in fees
waived by the Advisor on the Statements of Operations. For the period August 1,
2007 to May 31, 2008, the amounts were as follow:
- --------------------------------------------------------------------------------
Fees Waived
by Advisor
- --------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund ........................... $ 245
BlackRock New Jersey Municipal Bond Fund ........................ $ 18,534
BlackRock Pennsylvania Municipal Bond Fund ...................... $104,031
- --------------------------------------------------------------------------------
ANNUAL REPORT MAY 31, 2008 51
Notes to Financial Statements (continued)
The Advisor has entered into a separate sub-advisory agreement with BlackRock
Investment Management, LLC ("BIM"), an affiliate of the Advisor, under which the
Advisor pays BIM for services it provides, a monthly fee that is a percentage of
the investment advisory fee paid by the Funds to the Advisor.
For the period August 1, 2007 to May 31, 2008, each Fund reimbursed the Advisor
for certain accounting services, which are included in accounting services in
the Statements of Operations. The reimbursements were as follows:
- --------------------------------------------------------------------------------
Reimbursement
to Advisor
- --------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund .......................... $1,481
BlackRock New Jersey Municipal Bond Fund ....................... $4,178
BlackRock Pennsylvania Municipal Bond Fund ..................... $8,391
- --------------------------------------------------------------------------------
Pursuant to the terms of the custody agreement, custodian fees may be reduced by
amounts calculated on uninvested cash balances ("custody credits"), which are on
the Statements of Operations as fees paid indirectly.
Pursuant to the Distribution Plans adopted by each Fund in accordance with Rule
12b-1 under the 1940 Act, each Fund pays the Distributor ongoing service and
distribution fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of the shares as follows:
- --------------------------------------------------------------------------------
Service Fees
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------
Service ....................... -- 0.25% 0.25%
Investor A .................... 0.25% 0.25% 0.25%
Investor A1 ................... 0.10% 0.10% 0.10%
Investor B .................... 0.25% 0.25% 0.25%
Investor B1 ................... -- 0.25% 0.25%
Investor C .................... 0.25% 0.25% 0.25%
Investor C1 ................... 0.25% 0.25% 0.25%
- --------------------------------------------------------------------------------
Distribution Fees
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------
Investor B .................... 0.25% 0.75% 0.75%
Investor B1 ................... -- 0.25% 0.25%
Investor C .................... 0.75% 0.75% 0.75%
Investor C1 ................... 0.35% 0.35% 0.35%
- --------------------------------------------------------------------------------
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 the Distributor provide shareholder servicing
and distribution services to each Fund. The ongoing service and/or distribution
fee compensates the Distributor and each broker-dealer for providing shareholder
servicing and/or distribution-related services to Service, Investor A, Investor
A1, Investor B, Investor B1, Investor C and Investor C1 shareholders.
For the period August 1, 2007 to May 31, 2008, the Distributor earned
underwriting discounts, direct commissions and dealer concessions on sales of
each of the Funds' Investor A Shares as follows:
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------
Investor A 1 .................. $11,867 $27,625 $49,063
- --------------------------------------------------------------------------------
1 Includes amounts paid to Hilliard Lyons, which was considered an affiliate
for a portion of the year.
For the period August 1, 2007 to May 31, 2008, affiliates received contingent
deferred sales charges relating to transactions in 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 1 .................. $7,725 $7,628 $2,258
Investor B1 1 ................. $ -- $7,045 $2,647
Investor C 1 .................. $ 1 $1,071 $1,092
Investor C1 1 ................. $ 403 $ -- $ 476
- --------------------------------------------------------------------------------
1 Includes amounts paid to Hilliard Lyons, which was considered an affiliate
for a portion of the year.
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 1 .................. -- $104 --
- --------------------------------------------------------------------------------
1 Includes amounts paid to Hilliard Lyons, which was considered an affiliate
for a portion of the year.
52 ANNUAL REPORT MAY 31, 2008
Notes to Financial Statements (continued)
Pursuant to written agreements, certain affiliates provide the Funds with
sub-accounting, recordkeeping, sub-transfer agency and other administrative
services with respect to sub-accounts they service. For these services, these
affiliates receive an annual fee per shareholder account, which will vary
depending on share class. For the period August 1, 2007 to May 31, 2008, the
Funds paid the following amounts in return for these services:
- --------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund ............................... $26,284
BlackRock New Jersey Municipal Bond Fund ............................ $29,802
BlackRock Pennsylvania Municipal Bond Fund .......................... $25,621
- --------------------------------------------------------------------------------
PNC Global Investment Servicing (U.S.) Inc., formerly PFPC Inc., an indirect,
wholly owned subsidiary of PNC and an affiliate of the Advisor, is the Funds'
transfer agent. Each class of the Funds bear the costs of transfer agent fees
associated with such respective classes. Transfer agency fees borne by each
class of the Funds are comprised of those fees charged for all shareholder
communications including shareholder reports, dividend and distribution notices,
and proxy materials for shareholders meetings, as well as per account and per
transaction fees related to servicing and maintenance of shareholder accounts,
including the issuing, redeeming and transferring of shares of each class of the
Funds, 12b-1 fee calculation, check writing, anti-money laundering services, and
customer identification services.
The Advisor 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. For the period
August 1, 2007 to May 31, 2008, the following amounts have been accrued by the
Funds to reimburse the Advisor for costs incurred running the call center, which
are a component of the transfer agent fees in the accompanying Statements of
Operations.
- --------------------------------------------------------------------------------
Call Center Fees
- --------------------------------------------------------------------------------
BlackRock BlackRock BlackRock
Florida New Jersey Pennsylvania
Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund
- --------------------------------------------------------------------------------
Institutional ................. $ 128 $ 511 $1,395
Service ....................... -- $ 546 $ 40
Investor A .................... $ 27 $ 231 $ 440
Investor A1 ................... $ 472 $ 454 $ 370
Investor B .................... $ 142 $ 143 $ 80
Investor B1 ................... -- $ 144 $ 115
Investor C .................... $ 20 $ 75 $ 65
Investor C1 ................... $ 106 $ 120 $ 95
- --------------------------------------------------------------------------------
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
period August 1, 2007 to May 31, 2008 were as follows:
- --------------------------------------------------------------------------------
Purchases Sales
- --------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund .......... $ 21,521,683 $ 33,439,526
BlackRock New Jersey Municipal Bond Fund ....... $ 32,175,451 $ 53,541,857
BlackRock Pennsylvania Municipal Bond Fund ..... $256,333,129 $318,547,554
- --------------------------------------------------------------------------------
4. Beneficial Interest Transactions:
There are an unlimited number of shares authorized for each class of the Funds.
Transactions in shares of beneficial interest for each class were as follows:
Period August 1, 2007 Year Ended
to May 31, 2008 July 31, 2007
---------------------------- ----------------------------
BlackRock Florida Municipal Bond Fund Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 231,501 $ 2,323,254 291,385 $ 3,030,158
Shares issued to shareholders in reinvestment of dividends 30,667 305,633 36,193 375,732
---------------------------- ----------------------------
Total issued ............................................. 262,168 2,628,887 327,578 3,405,890
Shares redeemed .......................................... (505,981) (5,071,650) (535,478) (5,561,470)
---------------------------- ----------------------------
Net decrease ............................................. (243,813) $ (2,442,763) (207,900) $ (2,155,580)
============================ ============================
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Class I*
- -----------------------------------------------------------------------------------------------------------------------------------
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
============================
* Effective October 2, 2006, Class I Shares were redesignated Institutional
Shares.
ANNUAL REPORT MAY 31, 2008 53
Notes to Financial Statements (continued)
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
---------------------------- ----------------------------
BlackRock Florida Municipal Bond Fund (continued) Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 90,586 $ 913,634 335,598 $ 3,480,112
Shares issued to shareholders in reinvestment of dividends 11,244 111,781 5,488 56,511
---------------------------- ----------------------------
Total issued ............................................. 101,830 1,025,415 341,086 3,536,623
Shares redeemed .......................................... (53,043) (533,097) (22,763) (233,843)
---------------------------- ----------------------------
Net increase ............................................. 48,787 $ 492,318 318,323 $ 3,302,780
============================ ============================
+ Commencement of operations.
Period August 1, 2007 Year Ended
to May 31, 2008 July 31, 2007
---------------------------- ------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic conversion of shares ........... 178,553 $ 1,794,466 354,742 $ 3,666,377
Shares issued to shareholders in reinvestment of dividends 58,452 581,543 75,542 782,889
---------------------------- ------------------------------
Total issued ............................................. 237,005 2,376,009 430,284 4,449,266
Shares redeemed .......................................... (493,146) (4,939,463) (1,137,514) (11,821,822)
---------------------------- ------------------------------
Net decrease ............................................. (256,141) $ (2,563,454) (707,230) $ (7,372,556)
============================ ==============================
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1
- -----------------------------------------------------------------------------------------------------------------------------------
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
============================
Period August 1, 2007 Year Ended
to May 31, 2008 July 31, 2007
---------------------------- ----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 10,674 $ 107,591 19,231 $ 199,151
Shares issued to shareholders in reinvestment of dividends 16,925 168,857 27,451 285,087
---------------------------- ----------------------------
Total issued ............................................. 27,599 276,448 46,682 484,238
Shares redeemed and automatic conversion of shares ....... (386,438) (3,882,846) (880,448) (9,135,947)
---------------------------- ----------------------------
Net decrease ............................................. (358,839) $ (3,606,398) (833,766) $ (8,651,709)
============================ ============================
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B
- -----------------------------------------------------------------------------------------------------------------------------------
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)
============================
54 ANNUAL REPORT MAY 31, 2008
Notes to Financial Statements (continued)
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
---------------------------- ----------------------------
BlackRock Florida Municipal Bond Fund (concluded) Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 116,586 $ 1,160,123 139,623 $ 1,445,646
Shares issued to shareholders in reinvestment of dividends 2,208 21,891 691 7,109
---------------------------- ----------------------------
Total issued ............................................. 118,794 1,182,014 140,314 1,452,755
Shares redeemed .......................................... (20,184) (200,358) (2,005) (20,901)
---------------------------- ----------------------------
Net increase ............................................. 98,610 $ 981,656 138,309 $ 1,431,854
============================ ============================
+ Commencement of operations.
Period August 1, 2007 Year Ended
to May 31, 2008 July 31, 2007
---------------------------- ----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 295 $ 2,928 90,509 $ 934,432
Shares issued to shareholders in reinvestment of dividends 19,312 192,311 26,319 272,746
---------------------------- ----------------------------
Total issued ............................................. 19,607 195,239 116,828 1,207,178
Shares redeemed .......................................... (356,663) (3,572,661) (313,232) (3,237,597)
---------------------------- ----------------------------
Net decrease ............................................. (337,056) $ (3,377,422) (196,404) $ (2,030,419)
============================ ============================
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C1
- -----------------------------------------------------------------------------------------------------------------------------------
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
============================
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
------------------------------ -------------------------------
BlackRock New Jersey Municipal Bond Fund Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 3,069,723 $ 31,839,653 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
and distributions ...................................... 49,499 508,610 47,250 503,184
------------------------------ -------------------------------
Total issued ............................................. 3,119,222 32,348,263 27,777,769 298,163,783
Shares redeemed .......................................... (2,065,929) (21,547,014) (14,530,074) (155,327,851)
------------------------------ -------------------------------
Net increase ............................................. 1,053,293 $ 10,801,249 13,247,695 $ 142,835,932
============================== ===============================
+ Commencement of operations.
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Class I*
- -----------------------------------------------------------------------------------------------------------------------------------
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
============================
* Effective October 2, 2006, Class I Shares were redesignated Institutional
Shares.
ANNUAL REPORT MAY 31, 2008 55
Notes to Financial Statements (continued)
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
---------------------------- -----------------------------
BlackRock New Jersey Municipal Bond Fund (continued) Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Service
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 8,300 $ 87,651 321,331 $ 3,432,330
Shares issued resulting from reorganization .............. -- -- 1,277,790 13,770,748
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 26,298 272,950 25,159 270,682
---------------------------- -----------------------------
Total issued ............................................. 34,598 360,601 1,624,280 17,473,760
Shares redeemed .......................................... (126,299) (1,318,527) (409,303) (4,376,910)
---------------------------- -----------------------------
Net increase (decrease) .................................. (91,701) $ (957,926) 1,214,977 $ 13,096,850
============================ =============================
+ Commencement of operations.
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
---------------------------- -----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic conversion of shares ........... 866,474 $ 9,032,690 982,922 $ 10,622,153
Shares issued resulting from reorganization .............. -- -- 642,864 6,934,573
Shares issued to shareholders in reinvestment dividends
and distributions ...................................... 32,583 337,989 21,040 226,230
---------------------------- -----------------------------
Total issued ............................................. 899,057 9,370,679 1,646,826 17,782,956
Shares redeemed .......................................... (290,020) (3,016,387) (164,504) (1,759,132)
---------------------------- -----------------------------
Net increase ............................................. 609,037 $ 6,354,292 1,482,322 $ 16,023,824
============================ =============================s
+ Commencement of operations.
Period August 1, 2007 Year Ended
to May 31, 2008 July 31, 2007
---------------------------- ----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic conversion of shares ........... 189,807 $ 1,986,286 333,806 $ 3,578,707
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 72,762 756,703 86,895 937,248
---------------------------- ----------------------------
Total issued ............................................. 262,569 2,742,989 420,701 4,515,955
Shares redeemed .......................................... (304,342) (3,175,782) (503,201) (5,422,697)
---------------------------- ----------------------------
Net decrease ............................................. (41,773) $ (432,793) (82,500) $ (906,742)
============================ ============================
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1
- -----------------------------------------------------------------------------------------------------------------------------------
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
============================
56 ANNUAL REPORT MAY 31, 2008
Notes to Financial Statements (continued)
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
---------------------------- -----------------------------
BlackRock New Jersey Municipal Bond Fund (continued) Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 13,627 $ 140,745 31,037 $ 334,569
Shares issued resulting from reorganization .............. -- -- 955,090 10,293,000
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 18,912 196,404 20,550 221,281
---------------------------- -----------------------------
Total issued ............................................. 32,539 337,149 1,006,677 10,848,850
Shares redeemed and automatic conversion of shares ....... (180,860) (1,881,597) (191,557) (2,062,283)
---------------------------- -----------------------------
Net increase (decrease) .................................. (148,321) $ (1,544,448) 815,120 $ 8,786,567
============================ =============================
+ Commencement of operations.
Period August 1, 2007 Year Ended
to May 31, 2008 July 31, 2007
---------------------------- ----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 13 $ 124 22,341 $ 233,261
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 20,664 214,695 30,286 326,520
---------------------------- ----------------------------
Total issued ............................................. 20,677 214,819 52,627 559,781
Shares redeemed and automatic conversion of shares ....... (304,749) (3,188,968) (531,370) (5,716,037)
---------------------------- ----------------------------
Net decrease ............................................. (284,072) $ (2,974,149) (478,743) $ (5,156,256)
============================ ============================
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B1
- -----------------------------------------------------------------------------------------------------------------------------------
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)
============================
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
---------------------------- -----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 434,298 $ 4,546,033 596,823 $ 6,437,766
Shares issued resulting from reorganization .............. -- -- 139,982 1,508,301
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 17,195 178,130 8,672 92,924
---------------------------- -----------------------------
Total issued ............................................. 451,493 4,724,163 745,477 8,038,991
Shares redeemed .......................................... (119,770) (1,251,738) (59,516) (635,360)
---------------------------- -----------------------------
Net increase ............................................. 331,723 $ 3,472,425 685,961 $ 7,403,631
============================ =============================
+ Commencement of operations.
ANNUAL REPORT MAY 31, 2008 57
Notes to Financial Statements (continued)
Period August 1, 2007 Year Ended
to May 31, 2008 July 31, 2007
---------------------------- ----------------------------
BlackRock New Jersey Municipal Bond Fund (concluded) Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 27 $ 245 80,325 $ 856,962
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 34,254 355,298 43,167 465,414
---------------------------- ----------------------------
Total issued ............................................. 34,281 355,543 123,492 1,322,376
Shares redeemed .......................................... (221,607) (2,307,305) (204,930) (2,211,606)
---------------------------- ----------------------------
Net decrease ............................................. (187,326) $ (1,951,762) (81,438) $ (889,230)
============================ ============================
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C1
- -----------------------------------------------------------------------------------------------------------------------------------
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
============================
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
------------------------------ -------------------------------
BlackRock Pennsylvania Municipal Bond Fund Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 10,753,019 $ 117,721,243 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
and distributions ...................................... 70,280 764,663 51,078 575,901
------------------------------ -------------------------------
Total issued ............................................. 10,823,299 118,485,906 91,763,362 1,032,546,466
Shares redeemed .......................................... (9,612,359) (105,087,171) (49,076,517) (550,101,506)
------------------------------ -------------------------------
Net increase ............................................. 1,210,940 $ 13,398,735 42,686,845 $ 482,444,960
============================== ===============================
+ Commencement of operations.
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Class I*
- -----------------------------------------------------------------------------------------------------------------------------------
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
============================
* Effective October 2, 2006, Class I Shares were redesignated Institutional
Shares.
58 ANNUAL REPORT MAY 31, 2008
Notes to Financial Statements (continued)
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
---------------------------- -----------------------------
BlackRock Pennsylvania Municipal Bond Fund (continued) Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Service
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 2,740 $ 29,004 266,284 $ 2,996,184
Shares issued resulting from reorganization .............. -- -- 352,040 3,981,223
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 5,611 61,073 4,636 52,252
---------------------------- -----------------------------
Total issued ............................................. 8,351 90,077 622,960 7,029,659
Shares redeemed .......................................... (80,747) (888,980) (325,045) (3,660,436)
---------------------------- -----------------------------
Net increase (decrease) .................................. (72,396) $ (798,903) 297,915 $ 3,369,223
============================ =============================
+ Commencement of operations.
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
---------------------------- -----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic conversion of shares ........... 440,691 $ 4,833,165 340,268 $ 3,841,878
Shares issued resulting from reorganization .............. -- -- 2,414,744 27,333,039
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 88,386 962,685 69,146 779,778
---------------------------- -----------------------------
Total issued ............................................. 529,077 5,795,850 2,824,158 31,954,695
Shares redeemed .......................................... (355,046) (3,892,107) (330,379) (3,733,251)
---------------------------- -----------------------------
Net increase ............................................. 174,031 $ 1,903,743 2,493,779 $ 28,221,444
============================ =============================
+ Commencement of operations.
Period August 1, 2007 Year Ended
to May 31, 2008 July 31, 2007
---------------------------- ----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic conversion of shares ........... 143,471 $ 1,582,152 269,866 $ 3,040,865
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 52,853 575,894 58,218 657,469
---------------------------- ----------------------------
Total issued ............................................. 196,324 2,158,046 328,084 3,698,334
Shares redeemed .......................................... (338,122) (3,692,708) (231,123) (2,606,866)
---------------------------- ----------------------------
Net increase (decrease) .................................. (141,798) $ (1,534,662) 96,961 $ 1,091,468
============================ ============================
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1
- -----------------------------------------------------------------------------------------------------------------------------------
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
============================
ANNUAL REPORT MAY 31, 2008 59
Notes to Financial Statements (continued)
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
---------------------------- -----------------------------
BlackRock Pennsylvania Municipal Bond Fund (continued) Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 5,394 $ 60,111 16,950 $ 191,566
Shares issued resulting from reorganization .............. -- -- 622,139 7,035,673
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 12,635 137,539 13,672 154,119
---------------------------- -----------------------------
Total issued ............................................. 18,029 197,650 652,761 7,381,358
Shares redeemed and automatic conversion of shares ....... (166,410) (1,819,279) (185,063) (2,085,361)
---------------------------- -----------------------------
Net increase (decrease) .................................. (148,381) $ (1,621,629) 467,698 $ 5,295,997
============================ =============================
+ Commencement of operations.
Period August 1, 2007 Year Ended
to May 31, 2008 July 31, 2007
---------------------------- ----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 26 $ 603 1,997 $ 25,143
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 19,365 210,883 26,808 302,593
---------------------------- ----------------------------
Total issued ............................................. 19,391 211,486 28,805 327,736
Shares redeemed and automatic conversion of shares ....... (249,732) (2,740,575) (518,854) (5,848,065)
---------------------------- ----------------------------
Net decrease ............................................. (230,341) $ (2,529,089) (490,049) $ (5,520,329)
============================ ============================
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B1
- -----------------------------------------------------------------------------------------------------------------------------------
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)
============================
Period August 1, 2007 Period October 2, 2006+
to May 31, 2008 to July 31, 2007
---------------------------- -----------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 352,840 $ 3,859,791 252,006 $ 2,834,147
Shares issued resulting from reorganization .............. -- -- 142,420 1,611,617
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 13,534 147,325 5,227 58,812
---------------------------- -----------------------------
Total issued ............................................. 366,374 4,007,116 399,653 4,504,576
Shares redeemed .......................................... (76,669) (837,041) (26,100) (293,499)
---------------------------- -----------------------------
Net increase ............................................. 289,705 $ 3,170,075 373,553 $ 4,211,077
============================ =============================
+ Commencement of operations.
60 ANNUAL REPORT MAY 31, 2008
Notes to Financial Statements (continued)
Period August 1, 2007 Year Ended
to May 31, 2008 July 31, 2007
---------------------------- ----------------------------
BlackRock Pennsylvania Municipal Bond Fund (concluded) Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold .............................................. 2,124 $ 22,732 53,806 $ 610,382
Shares issued to shareholders in reinvestment of dividends
and distributions ...................................... 29,611 322,296 32,544 367,187
---------------------------- ----------------------------
Total issued ............................................. 31,735 345,028 86,350 977,569
Shares redeemed .......................................... (229,000) (2,502,103) (107,580) (1,210,314)
---------------------------- ----------------------------
Net decrease ............................................. (197,265) $ (2,157,075) (21,230) $ (232,745)
============================ ============================s
Year Ended
July 31, 2006
----------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C1
- -----------------------------------------------------------------------------------------------------------------------------------
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
Advisor and its affiliates, is party to a $500,000,000 credit agreement with a
group of lenders. 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
Prospectuses and Statements of Additional Information, subject to various other
legal, regulatory or contractual limits. On November 21, 2007, the credit
agreement was renewed for one year under substantially the same terms. The Funds
pay a commitment fee of 0.06% per annum based on the Funds' pro rata share of
the unused portion of the credit agreement, which is included in miscellaneous
in the Statements of Operations. Amounts borrowed under the credit agreement
bear interest at a rate equal to, at each fund's election, the federal funds
rate plus 0.35% or a base rate as defined in the credit agreement. The Funds did
not borrow under the credit agreement during the period August 1, 2007 to May
31, 2008.
6. Income Tax Information:
Reclassifications:
BlackRock Florida Municipal Bond Fund
Accounting principles generally accepted in the United States of America require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. Accordingly, during the current
year, $2,653,250 has been reclassified between paid-in capital in excess of par
and accumulated net realized loss as a result of a permanent difference
attributable to the expiration of capital loss carryforwards. These
reclassifications have no effect on net assets or net asset values per share.
BlackRock New Jersey Municipal Bond Fund
Accounting principles generally accepted in the United States of America require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. Accordingly, during the current
year, $2,597,813 has been reclassified between paid-in capital in excess of par
and accumulated net realized losses as a result of a permanent difference
attributable to the expiration of capital loss carryforwards. These
reclassifications have no effect on net assets or net asset values per share.
BlackRock Pennsylvania Municipal Bond Fund
Accounting principles generally accepted in the United States of America require
that certain components of net assets be adjusted to reflect permanent
differences between financial and tax reporting. Accordingly, during the current
year, $53 has been reclassified between accumulated net realized loss and
undistributed net investment income as a result of reclassification of
distributions. These reclassifications have no effect on net assets or net asset
values per share.
ANNUAL REPORT MAY 31, 2008 61
Notes to Financial Statements (continued)
Black Rock Florida Municipal Bond Fund
The tax character of distributions paid during the period August 1, 2007 to May
31, 2008 and the years ended July 31, 2007 and July 31, 2006 was as follows:
- --------------------------------------------------------------------------------
8/01/2007 -
5/31/2008 7/31/2007 7/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income .................. $3,713,601 $4,795,811 $5,414,484
--------------------------------------
Total taxable distributions .......... $3,713,601 $4,795,811 $5,414,484
--------------------------------------
As of May 31, 2008, the components of accumulated losses on a tax basis were as
follows:
- -----------------------------------------------------------------------------
Undistributed tax-exempt income .............................. $ 123,464
Undistributed long-term net capital gains .................... --
-----------
Total undistributed net earnings ............................. 123,464
Capital loss carryforward .................................... (1,426,206)*
Net unrealized losses ........................................ (1,032,340)**
-----------
Total net accumulated losses ................................. $(2,335,082)
===========
* On May 31, 2008, the Fund had a capital loss carryforward of $1,426,206,
of which $1,118,328 expires in 2009, $48,027 expires in 2014 and $259,851
expires in 2016. This amount will be available to offset future realized
capital gains.
** The difference between book-basis and tax-basis net unrealized losses is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the deferral of post-October capital
losses for tax purposes and the difference between book and tax treatment
of residual interests on tender option bond trusts.
Black Rock New Jersey Municipal Bond Fund
The tax character of distributions paid during the period August 1, 2007 to May
31, 2008 and the years ended July 31, 2007 and July 31, 2006 was as follows:
- --------------------------------------------------------------------------------
8/01/2007 -
5/31/2008 7/31/2007 7/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income ............... $10,341,301 $10,641,372 $ 4,195,562
Ordinary income ................. 214,638 -- 36,642
-----------------------------------------
Total taxable distributions ....... $10,555,939 $10,641,372 $ 4,232,204
-----------------------------------------
As of May 31, 2008, the components of accumulated losses on a tax basis were as
follows:
- -----------------------------------------------------------------------------
Undistributed tax-exempt income ............................. $ 314,265
Undistributed long-term net capital gains ................... --
------------
Total undistributed net earnings ............................ 314,265
Capital loss carryforward ................................... (11,248,237)*
Net unrealized gains ........................................ 2,367,598**
------------
Total net accumulated losses ................................ $ (8,566,374)
============
* On May 31, 2008, the Fund had a capital loss carryforward of $11,248,237,
of which $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 future realized capital
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, the deferral of post-October losses
for tax purposes and the difference between book and tax treatment of
residual interests on tender option bond trusts.
Black Rock Pennsylvania Municipal Bond Fund
The tax character of distributions paid during the period August 1, 2007 to May
31, 2008 and the years ended July 31, 2007 and July 31, 2006 was as follows:
- --------------------------------------------------------------------------------
8/01/2007 -
5/31/2008 7/31/2007 7/31/2006
- --------------------------------------------------------------------------------
Distributions paid from:
Tax-exempt income ............... $21,544,593 $21,184,436 $ 2,993,729
Ordinary income ................. 1,615,909 -- --
Net long-term capital gains ..... 1,446,595 -- --
-----------------------------------------
Total taxable distributions ....... $24,607,097 $21,184,436 $ 2,993,729
-----------------------------------------
62 ANNUAL REPORT MAY 31, 2008
Notes to Financial Statements (concluded)
As of May 31, 2008, the components of accumulated losses on a tax basis were as
follows:
- -----------------------------------------------------------------------------
Undistributed tax-exempt income ............................. $ 236,034
Undistributed long-term net capital gains ................... --
------------
Total undistributed net earnings ............................ 236,034
Capital loss carryforward ................................... (32,801,272)*
Net unrealized losses ....................................... (1,241,231)**
------------
Total net accumulated losses ................................ $(33,806,469)
============
* On May 31, 2008, the Fund had a capital loss carryforward of $32,801,272,
of which $7,349,820 expires in 2009, $15,329,699 expires in 2010 and
$10,121,753 expires in 2012. This amount will be available to offset
future realized capital gains.
** The difference between book-basis and tax-basis net unrealized losses is
attributable primarily to the tax deferral of losses on wash sales, the
tax deferral of losses on straddles, the difference between book and tax
amortization methods for premiums and discounts on fixed income
securities, the deferral of post-October losses for tax purposes and the
difference between book and tax treatment of residual interests on tender
option bond trusts.
7. Concentration Risk:
Each Fund's investments are concentrated in certain states, which may be
affected by adverse financial, social, environmental, economic, regulatory and
political factors.
Many municipalities insure repayment of their bonds, which reduces the risk of
loss due to issuer default. The market value of these bonds may fluctuate for
other reasons and there is no assurance that the insurer will meet its
obligation.
ANNUAL REPORT MAY 31, 2008 63
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, three of the portfolios constituting BlackRock Multi-State Municipal
Series Trust (the "Trust"), as of May 31, 2008, and the related statements of
operations for the period August 1, 2007 to May 31, 2008 and for the year ended
July 31, 2007, the statements of changes in net assets for the period August 1,
2007 to May 31, 2008 and for each of the two years in the period ended July 31,
2007, and the financial highlights for each of the respective periods presented.
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 May 31, 2008, 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 May 31,
2008, the results of their operations for the period August 1, 2007 to May 31,
2008 and for the year ended July 31, 2007, the changes in their net assets for
the period August 1, 2007 to May 31, 2008 and for each of the two years in the
period ended July 31, 2007, and the financial highlights for each of the
respective periods presented, in conformity with accounting principles generally
accepted in the United States of America.
Deloitte & Touche LLP
Princeton, New Jersey
July 28, 2008
Important Tax Information (Unaudited)
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 period ended May 31, 2008 qualify as tax-exempt interest
dividends for federal income tax purposes.
BlackRock New Jersey Municipal Bond Fund paid an ordinary income distribution of
$0.007850 per share to shareholders of record on December 19, 2007.
The following table summarizes the taxable per share distributions paid by
BlackRock Pennsylvania Municipal Bond Fund during the taxable period ended May
31, 2008:
- --------------------------------------------------------------------------------
Record Payable Ordinary Long-Term
Date Date Income Capital Gains
- --------------------------------------------------------------------------------
12/19/2007 12/21/2007 $0.030333 $0.027163
- --------------------------------------------------------------------------------
64 ANNUAL REPORT MAY 31, 2008
Officers and Trustees
Number of
Length of BlackRock-
Position(s) Time Advised Funds
Name, Address Held with Served as a Principal Occupation(s) and Portfolios Public
and Year of Birth the Funds Trustee 2 During Past Five Years Overseen Directorships
====================================================================================================================================
Non-Interested Trustees 1
- ------------------------------------------------------------------------------------------------------------------------------------
James H. Bodurtha Trustee Since 1995 Director, The China Business 37 Funds None
40 East 52nd Street Group, Inc. (consulting firm) 104 Portfolios
New York, NY 10022 since 1996 and formerly
1944 Executive Vice President thereof
from 1996 to 2003; Chairman of
the Board, Berkshire Holding
Corporation since 1980.
- ------------------------------------------------------------------------------------------------------------------------------------
Bruce R. Bond Trustee Since 2007 Formerly Trustee and Member of 37 Funds None
40 East 52nd Street the Governance Committee, State 104 Portfolios
New York, NY 10022 Street Research Mutual Funds
1946 from 1997 to 2005; Formerly
Board Member of Governance,
Audit and Finance Committee,
Avaya Inc. (computer equipment)
from 2003 to 2007.
- ------------------------------------------------------------------------------------------------------------------------------------
Donald W. Burton Trustee Since 2007 Managing General Partner, The 37 Funds Knology, Inc.
40 East 52nd Street Burton Partnership, LP (an 104 Portfolios (telecommunications);
New York, NY 10022 investment partnership) since Capital Southwest
1944 1979; Managing General Partner, (financial)
The South Atlantic Venture Funds
since 1983; Member of the
Investment Advisory Council of
the Florida State Board of
Administration from 2001 to
2007.
- ------------------------------------------------------------------------------------------------------------------------------------
Honorable Trustee Since 2007 Partner and Head of 37 Funds UPS Corporation
Stuart E. Eizenstat International Practice, 104 Portfolios (delivery service)
40 East 52nd Street Covington and Burling (law firm)
New York, NY 10022 since 2001; International
1943 Advisory Board Member, The Coca
Cola Company since 2002;
Advisory Board Member BT
Americas (telecommunications)
since 2004; Member of the Board
of Directors, Chicago Climate
Exchange (environmental) since
2006; Member of the
International Advisory Board GML
(energy) since 2003.
- ------------------------------------------------------------------------------------------------------------------------------------
Kenneth A. Froot Trustee Since 2005 Professor, Harvard University 37 Funds None
40 East 52nd Street since 1992. 104 Portfolios
New York, NY 10022
1957
- ------------------------------------------------------------------------------------------------------------------------------------
Robert M. Hernandez Chairman of Since 2007 Formerly Director, Vice Chairman 37 Funds ACE Limited
40 East 52nd Street the Board, and Chief Financial Officer of 104 Portfolios (insurance company);
New York, NY 10022 Trustee and USX Corporation (energy and Eastman Chemical
1944 Member of steel business) from 1991 to Company (chemical);
the Audit 2001. RTI International
Committee Metals, Inc. (metals);
TYCO Electronics
(electronics)
- ------------------------------------------------------------------------------------------------------------------------------------
John F. O'Brien Trustee Since 2007 Trustee, Woods Hole 37 Funds Cabot Corporation
40 East 52nd Street Oceanographic Institute since 104 Portfolios (chemicals); LKQ
New York, NY 10022 2003; Formerly Director, Corporation (auto
1943 Allmerica Financial Corporation parts manufacturing);
from 1995 to 2003; Formerly TJX Companies, Inc.
Director, ABIOMED from 1989 to (retailer)
2006; Formerly Director,
Ameresco, Inc. (energy solutions
company) from 2006 to 2007.
- ------------------------------------------------------------------------------------------------------------------------------------
ANNUAL REPORT MAY 31, 2008 65
Officers and Trustees (continued)
Number of
Length of BlackRock-
Position(s) Time Advised Funds
Name, Address Held with Served as a Principal Occupation(s) and Portfolios Public
and Year of Birth the Funds Trustee 2 During Past Five Years Overseen Directorships
====================================================================================================================================
Non-Interested Trustees 1 (concluded)
- ------------------------------------------------------------------------------------------------------------------------------------
Roberta Cooper Ramo Trustee Since 2000 Shareholder, Modrall, Sperling, 37 Funds None
40 East 52nd Street Roehl, Harris & Sisk, P.A. (law 104 Portfolios
New York, NY 10022 firm) since 1993; Chairman of
1942 the Board, Cooper's Inc.,
(retail) since 2000; Director of
ECMC Group (service provider to
students, schools and lenders)
since 2001; President Elect, The
American Law Institute,
(non-profit), 2007; Formerly
President, American Bar
Association from 1995 to 1996.
- ------------------------------------------------------------------------------------------------------------------------------------
Jean Margo Reid Trustee Since 2007 Self-employed consultant since 37 Funds None
40 East 52nd Street 2001; Director and Secretary, 104 Portfolios
New York, NY 10022 SCB, Inc. (holding company)
1945 since 1998; Director and
Secretary, SCB Partners, Inc.
(holding company) since 2000;
Formerly Director, Covenant
House (non-profit) from 2001 to
2004.
- ------------------------------------------------------------------------------------------------------------------------------------
David H. Walsh Trustee Since 2007 Director, National Museum of 37 Funds None
40 East 52nd Street Wildlife Art since 2007; 104 Portfolios
New York, NY 10022 Director, Ruckleshaus Institute
1941 and Haub School of Natural
Resources at the University of
Wyoming since 2006; Director,
The American Museum of Fly
Fishing since 1997; Formerly
Consultant with Putnam
Investments from 1993 to 2003;
Formerly Director, The National
Audubon Society from 1998 to
2005.
- ------------------------------------------------------------------------------------------------------------------------------------
Fred G. Weiss Chairman of Since 2007 Managing Director, FGW 37 Funds Watson Pharmaceutical
40 East 52nd Street the Audit Associates (consulting and 104 Portfolios Inc.
New York, NY 10022 Committee investment company) since 1997;
1941 and Trustee Director, Michael J. Fox
Foundation for Parkinson's
Research since 2000; Formerly
Director of BTG International
Plc (a global technology
commercialization company) from
2001 to 2007.
- ------------------------------------------------------------------------------------------------------------------------------------
Richard R. West Trustee and Since 2007 Dean Emeritus, New York 37 Funds Bowne & Co., Inc.
40 East 52nd Street Member of University's Leonard N. Stern 104 Portfolios (financial printers);
New York, NY 10022 the Audit School of Business Vornado Realty Trust
1938 Committee Administration since 1995. (real estate company);
Alexander's Inc.
(real estate company)
---------------------------------------------------------------------------------------------------------
1 Trustees serve until their resignation, removal or death, or until December 31 of the year in which
they turn 72.
2 Following the combination of Merrill Lynch Investment Managers, L.P. ("MLIM") and BlackRock, Inc.
("BlackRock") in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were
realigned and consolidated into three new Fund boards in 2007. As a result, although the chart
shows certain trustees as joining the Fund's board in 2007, each trustee first became a member of
the board of trustees of other legacy MLIM or legacy BlackRock Funds as follows: James H. Bodurtha
since 1995; Bruce R. Bond since 2005; Donald W. Burton since 2002; Stuart E. Eizenstat since 2001;
Kenneth A. Froot since 2005; Robert M. Hernandez since 1996; John F. O'Brien since 2004; Roberta
Cooper Ramo since 2000; Jean Margo Reid since 2004; David H. Walsh since 2003; Fred G. Weiss since
1998; and Richard R. West since 1978.
66 ANNUAL REPORT MAY 31, 2008
Officers and Trustees (continued)
Number of
Length of BlackRock-
Position(s) Time Advised Funds
Name, Address Held with Served as a Principal Occupation(s) and Portfolios Public
and Year of Birth the Funds Trustee During Past Five Years Overseen Directorships
====================================================================================================================================
Interested Trustees 1
- ------------------------------------------------------------------------------------------------------------------------------------
Richard S. Davis Fund Since 2007 Managing Director, BlackRock, 185 Funds None
40 East 52nd Street President Inc. since 2005; Formerly Chief 295 Portfolios
New York, NY 10022 and Executive Officer, State Street
1945 Trustee Research & Management Company
from 2000 to 2005; Formerly
Chairman of the Board of
Trustees, State Street Research
Mutual Funds from 2000 to 2005;
Formerly Chairman, SSR Realty
from 2000 to 2004.
- ------------------------------------------------------------------------------------------------------------------------------------
Laurence D. Fink Trustee Since 2007 Chairman and Chief Executive 37 Funds None
40 East 52nd Street Officer of BlackRock, Inc. since 104 Portfolios
New York, NY 10022 its formation in 1998 and of
1952 BlackRock, Inc.'s predecessor
entities since 1988 and Chairman
of the Executive and Management
Committees; Formerly Managing
Director, The First Boston
Corporation, Member of its
Management Committee, Co-head of
its Taxable Fixed Income
Division and Head of its
Mortgage and Real Estate
Products Group; Chairman of the
Board of several of BlackRock's
alternative investment vehicles;
Director of several of
BlackRock's offshore funds;
Member of the Board of Trustees
of New York University, Chair of
the Financial Affairs Committee
and a member of the Executive
Committee, the Ad Hoc Committee
on Board Governance, and the
Committee on Trustees;
Co-Chairman of the NYU Hospitals
Center Board of Trustees,
Chairman of the
Development/Trustee Stewardship
Committee and Chairman of the
Finance Committee; Trustee, The
Boys' Club of New York.
- ------------------------------------------------------------------------------------------------------------------------------------
Henry Gabbay Trustee Since 2007 Consultant, BlackRock, Inc. 184 Funds None
40 East 52nd Street since 2007; Formerly Managing 294 Portfolios
New York, NY 10022 Director, BlackRock, Inc. from
1947 1989 to 2007; Formerly Chief
Administrative Officer,
BlackRock Advisors, LLC from
1998 to 2007; Formerly President
of BlackRock Funds and BlackRock
Bond Allocation Target Shares
from 2005 to 2007 and Treasurer
of certain closed-end Funds in
the BlackRock fund complex from
1989 to 2006.
---------------------------------------------------------------------------------------------------------
1 Messrs. Davis, Fink and Gabbay are all "interested persons," as defined in the Investment Company
Act of 1940, of the Funds based on their 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.
ANNUAL REPORT MAY 31, 2008 67
Officers and Trustees (concluded)
Position(s) Length of
Name, Address Held with Time
and Year of Birth the Funds Served Principal Occupation(s) During Past Five Years
====================================================================================================================================
Fund Officers 1
- ------------------------------------------------------------------------------------------------------------------------------------
Donald C. Burke Chief Since 2007 Managing Director of BlackRock, Inc. since 2006; Formerly Managing Director of
40 East 52nd Street Executive Merrill Lynch Investment Managers, L.P. ("MLIM") and Fund Asset Management,
New York, NY 10022 Officer L.P. ("FAM") in 2006; First Vice President thereof from 1997 to 2005;
1960 Treasurer thereof from 1999 to 2006 and Vice President thereof from 1990 to
1997.
- ------------------------------------------------------------------------------------------------------------------------------------
Anne F. Ackerley Vice Since 2007 Managing Director of BlackRock, Inc. since 2000; Chief Operating Officer of
40 East 52nd Street President BlackRock's U.S. Retail Group since 2006; Head of BlackRock's Mutual Fund
New York, NY 10022 Group from 2000 to 2006; Merrill Lynch & Co., Inc. from 1984 to 1986 and from
1962 1988 to 2000, most recently as First Vice President and Operating Officer of
the Mergers and Acquisitions Group.
- ------------------------------------------------------------------------------------------------------------------------------------
Neal J. Andrews Chief Since 2007 Managing Director of BlackRock, Inc. since 2006; Formerly Senior Vice
40 East 52nd Street Financial President and Line of Business Head of Fund Accounting and Administration at
New York, NY 10022 Officer PFPC Inc. from 1992 to 2006.
1966
- ------------------------------------------------------------------------------------------------------------------------------------
Jay M. Fife Treasurer Since 2007 Managing Director of BlackRock, Inc. since 2007 and Director in 2006;
40 East 52nd Street Formerly Assistant Treasurer of the MLIM/FAM-advised Funds from 2005 to
New York, NY 10022 2006; Director of MLIM Fund Services Group from 2001 to 2006.
1970
- ------------------------------------------------------------------------------------------------------------------------------------
Brian P. Kindelan Chief Since 2007 Chief Compliance Officer of the BlackRock-advised Funds since 2007;
40 East 52nd Street Compliance Anti-Money Laundering Officer of the Funds since 2007; Managing Director and
New York, NY 10022 Officer of Senior Counsel of BlackRock, Inc. since 2005; Director and Senior Counsel of
1959 the Fund BlackRock Advisors, Inc. from 2001 to 2004 and Vice President and Senior
Counsel thereof from 1998 to 2000; Formerly Senior Counsel of The PNC Bank
Corp. from 1995 to 1998.
- ------------------------------------------------------------------------------------------------------------------------------------
Howard Surloff Secretary Since 2007 Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at
40 East 52nd Street BlackRock, Inc. since 2006; Formerly General Counsel (U.S.) of Goldman Sachs
New York, NY 10022 Asset Management, L.P. from 1993 to 2006.
1965
---------------------------------------------------------------------------------------------------------
1 Officers of the Trust serve at the pleasure of the Board of Trustees.
---------------------------------------------------------------------------------------------------------
Further information about the Funds' Officers and Trustees is available in the Funds' Statement of
Additional Information, which can be obtained without charge by calling (800) 441-7762.
- ------------------------------------------------------------------------------------------------------------------------------------
Custodian
State Street Bank and
Trust Company
Boston, MA 02101
Transfer Agent
PNC Global Investment
Servicing (U.S.) Inc.
Wilmington, DE 19809
Accounting Agent
State Street Bank and
Trust Company
Princeton, NJ 08540
Independent Registered Public
Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540
Legal Counsel
Willkie Farr & Gallagher LLP
New York, NY 10019
Address of the Funds
100 Bellevue Parkway
Wilmington, DE 19809
68 ANNUAL REPORT MAY 31, 2008
Additional Information
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund
investors and individual clients (collectively, "Clients") and to safeguarding
their non-public personal information. The following information is provided to
help you understand what personal information BlackRock collects, how we protect
that information and why in certain cases we share such information with select
parties.
If you are located in a jurisdiction where specific laws, rules or regulations
require BlackRock to provide you with additional or different privacy-related
rights beyond what is set forth below, then BlackRock will comply with those
specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you
from different sources, including the following: (i) information we receive from
you or, if applicable, your financial intermediary, on applications, forms or
other documents; (ii) information about your transactions with us, our
affiliates, or others; (iii) information we receive from a consumer reporting
agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any
non-public personal information about its Clients, except as permitted by law or
as is necessary to respond to regulatory requests or to service Client accounts.
These non-affiliated third parties are required to protect the confidentiality
and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to
provide you with information about other BlackRock products or services that may
be of interest to you. In addition, BlackRock restricts access to non-public
personal information about its Clients to those BlackRock employees with a
legitimate business need for the information. BlackRock maintains physical,
electronic and procedural safeguards that are designed to protect the non-public
personal information of its Clients, including procedures relating to the proper
storage and disposal of such information.
Availability of Additional Information
Electronic copies of most financial reports and prospectuses are available on
the Funds' website or shareholders can sign up for e-mail notifications of
quarterly statements, annual and semi-annual reports and prospectuses by
enrolling in the Funds' electronic delivery program.
To enroll:
Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:
Please contact your financial advisor. Please note that not all investment
advisors, banks or brokerages may offer this service.
Shareholders Who Hold Accounts Directly with BlackRock:
1) Access the BlackRock website at http://www.blackrock.com/edelivery
2) Click on the applicable link and follow the steps to sign up
3) Log into your account
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.
ANNUAL REPORT MAY 31, 2008 69
Additional Information (concluded)
Availability of Additional Information (concluded)
Availability of Proxy Voting Policies and Procedures A description of the
policies and procedures that the Funds use to determine how to vote proxies
relating to portfolio securities is available (1) without charge, upon request,
by calling toll-free (800) 441-7762; (2) at www.blackrock.com; and (3) on the
Securities and Exchange Commission's (the "SEC") website at http://www.sec.gov.
Availability of Proxy Voting Record
Information about how the Funds vote proxies relating to securities held in the
Funds' portfolios during the most recent 12-month period ended June 30 is
available upon request and without charge (1) at www.blackrock.com or by calling
(800) 441-7762 and (2) on the SEC's website at http://www.sec.gov.
Availability of Quarterly Portfolio Schedule
The Funds file their complete schedule of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms
N-Q are available on the SEC's website at http://www.sec.gov and may also be
reviewed and copied at the SEC's Public Reference Room in Washington, D.C.
Information on the operation of the Public Reference Room may be obtained by
calling (800) SEC-0330. The Funds' Forms N-Q may also be obtained upon request
and without charge by calling (800) 441-7762.
Shareholder Privileges
Account Information
Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST to get information about
your account balances, recent transactions and share prices. You can also reach
us on the web at www.blackrock.com/funds.
Automatic Investment Plans
Investor Class shareholders who want to invest regularly can arrange to have $50
or more automatically deducted from their checking or savings account and
invested in any of the BlackRock funds.
Systematic Withdrawal Plans
Investor Class shareholders can establish a systematic withdrawal plan and
receive periodic payments of $50 or more from their BlackRock funds, as long as
their account is at least $10,000.
Retirement Plans
Shareholders may make investments in conjunction with Traditional, Rollover,
Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.
70 ANNUAL REPORT MAY 31, 2008
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 Asset Allocation Portfolio+
BlackRock Aurora Portfolio
BlackRock Balanced Capital Fund+
BlackRock Basic Value Fund
BlackRock Capital Appreciation Portfolio
BlackRock Equity Dividend Fund
BlackRock EuroFund
BlackRock Focus Growth Fund
BlackRock Focus Value Fund
BlackRock Fundamental Growth Fund
BlackRock Global Allocation Fund+
BlackRock Global Dynamic Equity Fund
BlackRock Global Emerging Markets 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 Health Sciences Opportunities Portfolio*
BlackRock Healthcare Fund
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio
BlackRock International Value Fund
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 Commodity Strategies Fund
BlackRock Emerging Market Debt Portfolio
BlackRock Enhanced Income Portfolio
BlackRock GNMA Portfolio
BlackRock Government Income Portfolio
BlackRock High Income Fund
BlackRock High Yield Bond Portfolio
BlackRock Income Portfolio
BlackRock Income Builder Portfolio
BlackRock Inflation Protected Bond Portfolio
BlackRock Intermediate Bond Portfolio II
BlackRock Intermediate Government Bond Portfolio
BlackRock International Bond Portfolio
BlackRock Long Duration Bond Portfolio
BlackRock Low Duration Bond Portfolio
BlackRock Managed Income Portfolio
BlackRock Short-Term Bond Fund
BlackRock Strategic Income Portfolio
BlackRock Total Return Fund
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.
ANNUAL REPORT MAY 31, 2008 71
These reports 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
Trust's current prospectus. Past performance results shown in this report should
not be considered a representation of future performance. Investment returns and
principal value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Statements and other information
herein are as dated and are subject to change.
BLACKROCK
#MBFLNJPA-5/08
Item 2 - Code of Ethics - The registrant (or the "Fund") has adopted a code
of ethics, as of the end of the period covered by this report,
applicable to the registrant's principal executive officer,
principal financial officer and principal accounting officer, or
persons performing similar functions. During the period covered by
this report, there have been no amendments to or waivers granted
under the code of ethics. A copy of the code of ethics is available
without charge at www.blackrock.com.
Item 3 - Audit Committee Financial Expert - The registrant's board of
directors or trustees, as applicable (the "board of directors") has
determined that (i) the registrant has the following audit committee
financial experts serving on its audit committee and (ii) each audit
committee financial expert is independent:
Joe Grills (not reappointed to the Audit Committee,
effective November 1, 2007)
Robert M. Hernandez (term began, effective November 1, 2007)
Robert S. Salomon, Jr. (term ended, effective November 1, 2007)
Fred G. Weiss (term began, effective November 1, 2007)
Richard R. West (term began, effective November 1, 2007)
Under applicable securities laws, a person determined to be an audit
committee financial expert will not be deemed an "expert" for any
purpose, including without limitation for the purposes of Section 11
of the Securities Act of 1933, as a result of being designated or
identified as an audit committee financial expert. The designation
or identification as an audit committee financial expert does not
impose on such person any duties, obligations, or liabilities
greater than the duties, obligations, and liabilities imposed on
such person as a member of the audit committee and board of
directors in the absence of such designation or identification.
Item 4 - Principal Accountant Fees and Services
- ----------------------------------------------------------------------------------------------------------------------------------
(a) Audit Fees (b) Audit-Related Fees(1) (c) Tax Fees(2) (d) All Other Fees(3)
- ----------------------------------------------------------------------------------------------------------------------------------
Current Previous Current Previous Current Previous Current Previous
Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal Fiscal Year Fiscal
Entity Name End Year End End Year End End Year End End Year End
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock Florida
Municipal Bond Fund $25,900 $51,350 $0 $0 $6,100 $6,100 $1,049 $1,042
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock New
Jersey Municipal
Bond Fund $25,900 $51,350 $0 $0 $6,100 $6,100 $1,049 $1,042
- ----------------------------------------------------------------------------------------------------------------------------------
BlackRock
Pennsylvania
Municipal Bond Fund $24,800 $50,350 $0 $0 $6,100 $6,100 $1,049 $1,042
- ----------------------------------------------------------------------------------------------------------------------------------
1 The nature of the services include assurance and related services
reasonably related to the performance of the audit of financial statements
not included in Audit Fees.
2 The nature of the services include tax compliance, tax advice and tax
planning.
3 The nature of the services include a review of compliance procedures and
attestation thereto.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The registrant's audit committee (the "Committee") has adopted
policies and procedures with regard to the pre-approval of services.
Audit, audit-related and tax compliance services provided to the
registrant on an annual basis require specific pre-approval by the
Committee. The Committee also must approve other non-audit services
provided to the registrant and those non-audit services provided to
the registrant's affiliated service providers that relate directly
to the operations and the financial reporting of the registrant.
Certain of these non-audit services that the Committee believes are
a) consistent with the SEC's auditor independence rules and b)
routine and recurring services that will not impair the independence
of the independent accountants may be approved by the Committee
without consideration on a specific case-by-case basis ("general
pre-approval"). The term of any general pre-approval is 12 months
from the date of the pre-approval, unless the Committee provides for
a different period. Tax or other non-audit services provided to the
registrant which have a direct impact on the operation or financial
reporting of the registrant will only be deemed pre-approved
provided that any individual project does not exceed $10,000
attributable to the registrant or $50,000 for all of the registrants
the Committee oversees. For this purpose, multiple projects will be
aggregated to determine if they exceed the previously mentioned cost
levels.
Any proposed services exceeding the pre-approved cost levels
will require specific pre-approval by the Committee, as will any
other services not subject to general pre-approval (e.g.,
unanticipated but permissible services). The Committee is informed
of each service approved subject to general pre-approval at the next
regularly scheduled in-person board meeting. At this meeting, an
analysis of such services is presented to the Committee for
ratification. The Committee may delegate to one or more of its
members the authority to approve the provision of and fees for any
specific engagement of permitted non-audit services, including
services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through
(d) were approved by the audit committee pursuant to paragraph
(c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) Affiliates' Aggregate Non-Audit Fees:
--------------------------------------------------------------------
Current Fiscal Previous Fiscal
Entity Name Year End Year End
--------------------------------------------------------------------
BlackRock Florida Municipal
Bond Fund $294,649 $713,975
--------------------------------------------------------------------
BlackRock New Jersey
Municipal Bond Fund $294,649 $713,975
--------------------------------------------------------------------
BlackRock Pennsylvania
Municipal Bond Fund $294,649 $713,975
--------------------------------------------------------------------
(h) The registrant's audit committee has considered and determined
that the provision of non-audit services that were rendered to the
registrant's investment adviser (not including any non-affiliated
sub-adviser whose role is primarily portfolio management and is
subcontracted with or overseen by the registrant's investment
adviser), and any entity controlling, controlled by, or under common
control with the investment adviser that provides ongoing services
to the registrant that were not pre-approved pursuant to paragraph
(c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant's independence.
Regulation S-X Rule 2-01(c)(7)(ii) - $287,500, 0%
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Investments
(a) The registrant's Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual
period covered since the previous Form N-CSR filing.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the board of directors recommended by shareholders when
a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations 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 Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the second fiscal quarter of the period covered
by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over
financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - See Item 2
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Multi-State Municipal Series Trust
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer of
BlackRock Multi-State Municipal Series Trust
Date: July 18, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock Multi-State Municipal Series Trust
Date: July 18, 2008
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Multi-State Municipal Series Trust
Date: July 18, 2008