UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT
COMPANIES
Investment Company Act file number 811-04264
Name of Fund: BlackRock California Insured Municipal Bond Fund of
BlackRock California Municipal Series Trust
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: Donald C. Burke, Chief Executive Officer,
BlackRock California Insured Municipal Bond Fund of BlackRock California
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: 05/31/2009
Date of reporting period: 06/01/2008 - 11/30/2008
Item 1 - Report to Stockholders
EQUITIES FIXED INCOME REAL ESTATE
LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS
Semi-Annual Report BLACKROCK
NOVEMBER 30, 2008 | (UNAUDITED)
BlackRock California Insured Municipal Bond Fund
OF BLACKROCK CALIFORNIA MUNICIPAL SERIES TRUST
BlackRock Florida Municipal Bond Fund
BlackRock New Jersey Municipal Bond Fund
BlackRock Pennsylvania Municipal Bond Fund
OF BLACKROCK MULTI-STATE MUNICIPAL SERIES TRUST
BlackRock Intermediate Municipal Fund
OF BLACKROCK MUNICIPAL SERIES TRUST
NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE
Table of Contents
================================================================================
Page
- --------------------------------------------------------------------------------
A Letter to Shareholders ................................................ 3
Semi-Annual Report:
Fund Summaries .......................................................... 4
About Fund Performance .................................................. 14
Disclosure of Expenses .................................................. 16
Portfolio Information ................................................... 20
Financial Statements:
Schedules of Investments .............................................. 22
Statements of Assets and Liabilities .................................. 42
Statements of Operations .............................................. 44
Statements of Changes in Net Assets ................................... 45
Financial Highlights .................................................... 50
Notes to Financial Statements ........................................... 82
Disclosure of Investment Advisory Agreement and Subadvisory Agreement ... 96
Officers and Trustees ................................................... 100
Additional Information .................................................. 101
Mutual Fund Family ...................................................... 103
2 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
A Letter to Shareholders
Dear Shareholder
The present times may well be remembered as one of the most tumultuous periods
in financial market history. Over the past year, the bursting of the housing
bubble and the resultant credit crisis mushroomed into an all-out global
financial market meltdown, featuring the collapse of storied financial firms,
volatile swings in the world's financial markets and monumental government
responses designed to rescue the beleaguered financial system.
The U.S. economy appeared relatively resilient through the first half of 2008,
when rising food and energy prices stoked fears of inflation. The tenor changed
dramatically in the second half, as inflation pressures subsided amid plummeting
oil prices, but a uniform and rapid deterioration in key economic indicators
darkened growth prospects. Just after the close of the reporting period, the
National Bureau of Economic Research officially declared that the U.S. was in a
recession, and that it had begun in December 2007. The Federal Reserve Board
(the "Fed"), after slashing interest rates aggressively in the early months of
the year, resumed that rate-cutting campaign in the fall, bringing the target
federal funds rate to a record low range of between zero to 0.25% on December
16. More significant was the central bank's pledge that future policy moves to
revive the global economy and financial markets would comprise primarily
nontraditional and quantitative easing measures, such as capital injections,
lending programs and government guarantees.
Against this backdrop, U.S. equity markets experienced intense volatility, with
periods of downward pressure punctuated by sharp rebounds. Losses were
significant and broad-based, though non-U.S. markets decelerated at a
considerably faster pace than domestic equities -- a stark reversal of prior
years' trends, when international stocks generally outpaced U.S. stocks.
Treasury issues also traded in a volatile fashion, but rallied overall (yields
fell and prices correspondingly rose) and outperformed other fixed income assets
as investors retreated to the safest and most liquid investments. Amid spillover
from historic events in the financial sector, municipals contended with fewer
market participants, lack of liquidity, a challenging funding environment and a
backlog of new-issue supply, all of which contributed to the sector's
underperformance relative to its taxable counterparts. Similarly, economic
turmoil and badly broken credit markets plagued the high yield sector, with the
third quarter of 2008 marking one of the worst periods in history for the asset
class.
In all, an investor flight to safety prevailed, as evidenced in the six- and
12-month returns of the major benchmark indexes:
Total Returns as of November 30, 2008 6-month 12-month
==============================================================================================================
U.S. equities (S&P 500 Index) (35.20)% (38.09)%
- --------------------------------------------------------------------------------------------------------------
Small cap U.S. equities (Russell 2000 Index) (36.26) (37.46)
- --------------------------------------------------------------------------------------------------------------
International equities (MSCI Europe, Australasia, Far East Index) (44.92) (47.79)
- --------------------------------------------------------------------------------------------------------------
U.S. Treasury securities (Merrill Lynch 10-Year U.S. Treasury Index) 11.62 12.69
- --------------------------------------------------------------------------------------------------------------
Taxable fixed income (Barclays Capital U.S. Aggregate Index*) 0.24 1.74
- --------------------------------------------------------------------------------------------------------------
Tax-exempt fixed income (Barclays Capital Municipal Bond Index*) (4.98) (3.61)
- --------------------------------------------------------------------------------------------------------------
High yield bonds (Barclays Capital U.S. Corporate High-Yield 2% Issuer Capped Index*) (31.73) (30.49)
- --------------------------------------------------------------------------------------------------------------
* Formerly a Lehman Brothers index.
Past performance is no guarantee of future results. Index performance
shown for illustrative purposes only. You cannot invest directly in an
index.
Through periods of market turbulence, as ever, BlackRock's full resources are
dedicated to the management of our clients' assets. For our most current views
on the economy and financial markets, we invite you to visit
www.blackrock.com/funds. As always, we thank you for entrusting BlackRock with
your investments, and we look forward to continuing to serve you in the months
and years ahead.
Sincerely,
/s/ Rob Kapito
Rob Kapito
President, BlackRock Advisors, LLC
THIS PAGE NOT PART OF YOUR FUND REPORT 3
Fund Summary as of November 30, 2008
BlackRock California Insured Municipal Bond Fund
Portfolio Management Commentary
How did the Fund perform?
o The Fund recently changed its fiscal year end to May 31. Fund returns for
the six-month period ended November 30, 2008 lagged that of the Barclays
Capital Municipal Bond Index and the Lipper Single-State Insured Municipal
Debt Funds category average. Notably, the Lipper category consists of
funds investing in insured municipal bonds issued by individual states
other than California. As a result, Fund returns will vary from that of
the broader Lipper peer group.
What factors influenced performance?
o The Fund's performance was negatively impacted as the market stripped
insured bonds of their premium values in light of the troubles faced by
the monoline insurers backing the bonds. The Fund maintained only a 2%
exposure to inverse floaters, but this leveraged exposure underperformed,
which also detracted from results. Finally, the Fund's holdings in
zero-coupon bonds hurt performance, as these issues declined more than
coupon bonds.
o Given the declines in insured bonds, the Fund's relatively lower
percentage of these securities helped performance somewhat. Another factor
positively affecting Fund performance was a lack of exposure to uninsured
California general obligation bonds during a period when concerns over
state finances caused those bonds to underperform. Finally, the Fund
benefited from a lack of hedging.
Describe recent portfolio activity.
o The Fund's cash reserves were kept at atypically high levels -- at times
reaching 8% of total assets -- as we attempted to maintain a degree of
liquidity in the Fund. Dislocations in the short-term tax-exempt market
continued to provide opportunities for us to invest in weekly floating
rate bonds with yields as high as 7% to 10%. Toward the end of the period,
the Fund's duration was extended, partly as a result of duration extension
that occurred throughout the market. We also extended duration with new
purchases, as we took advantage of the heavy new-issue calendar and forced
selling within the secondary market.
Describe Fund positioning at period-end.
o At period-end, the Fund's duration was slightly long. Approximately 84% of
the Fund's assets was invested in insured securities; uninsured holdings
comprised largely higher-quality issues. Less than 1% of the Fund's assets
was invested in credits that were below investment grade.
o The Fund's cash reserve position was nearly 9.5% of total assets. Markets
remain extremely unsettled. We do not want to be forced to sell assets if
redemptions accelerate around year-end, which would be typical. Moreover,
an ample cash reserve affords the flexibility to bid for issues that we
believe will add to the performance potential of the Fund when markets
normalize in the future.
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 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
BlackRock California Insured 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 Barclays
Capital Municipal Bond Index. Values are from November 1998 to November 2008:
Barclays Capital
Municipal Bond
Institutional Shares(1,2) Investor A Shares(1,2) Index(3)
11/98 $10,000 $ 9,575 $10,000
11/99 $ 9,593 $ 9,162 $ 9,893
11/00 $10,485 $ 9,990 $10,702
11/01 $11,410 $10,844 $11,639
11/02 $12,013 $11,389 $12,375
11/03 $12,812 $12,116 $13,198
11/04 $13,186 $12,438 $13,736
11/05 $13,652 $12,845 $14,269
11/06 $14,433 $13,547 $15,142
11/07 $14,687 $13,742 $15,553
11/08 $13,851 $12,927 $14,991
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 California, its political
subdivisions, agencies and instrumentalities and obligations of other
qualifying issuers.
3 This unmanaged Index consists of long-term revenue bonds, pre-refunded
bonds, general obligation bonds and insured bonds.
Performance Summary for the Period Ended November 30, 2008
Average Annual Total Returns 4
-------------------------------------------------------------------
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 .................. 4.66% (6.49)% (5.69)% -- 1.57% -- 3.31% --
Investor A ..................... 4.25 (6.61) (5.93) (9.93)% 1.30 0.43% 3.05 2.60%
Investor A1 .................... 4.40 (6.53) (5.76) (9.53) 1.46 0.64 3.20 2.78
Investor B ..................... 4.16 (6.81) (6.24) (9.86) 1.05 0.71 2.78 2.78
Investor C ..................... 3.67 (6.95) (6.61) (7.52) 0.57 0.57 2.29 2.29
Investor C1 .................... 4.07 (6.76) (6.24) (7.14) 0.95 0.95 2.69 2.69
Barclays Capital Municipal
Bond Index ................... -- (4.98) (3.61) -- 2.58 -- 4.13 --
- ------------------------------------------------------------------------------------------------------------------------------------
4 Assuming maximum sales charges. See "About Fund Performance" on pages 14
and 15 for a detailed description of share classes, including any related
sales charges and fees.
Past performance is not indicative of future results.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 5
Fund Summary as of November 30, 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 returns for
the six-month period ended November 30, 2008 lagged that of the Barclays
Capital Municipal Bond Index and the Lipper Florida Municipal Debt Funds
category average. While the Barclays Index measures the performance of
municipal bonds nationally, the Lipper category consists of funds that
limit their investment to securities exempt from taxation in Florida.
What factors influenced performance?
o The six-month period saw a tremendous amount of pressure applied to spread
products throughout the municipal market, with outflows from high-yield
funds hurting sectors such as corporate-backed, health care, land-secured,
housing, tobacco and pre-paid gas bonds. More than half of the states in
the U.S. experienced declining tax revenues and additional pressures from
heightened market volatility, which resulted in spending cuts, tapping of
reserves or raising of revenues in order to achieve balanced budgets.
These problems are expected to continue into next year. As a result,
municipal bonds ended the period offering higher yields than U.S. Treasury
securities in all maturity ranges, a very unusual scenario.
o The Fund's performance was negatively impacted by its positions in insured
bonds, which were stripped of their premium values by the market in light
of the troubles faced by the monoline insurers backing the bonds. The
Fund's performance was also hindered by its positions in the health care,
housing, land-secured and corporate-backed sectors. These sectors were
adversely affected by high-yield fund outflows, as noted above, and by the
poor performance of the overall U.S. economy.
o One factor that contributed positively to the Fund's performance was its
overweight position in pre-refunded securities. With so much uncertainty
in the marketplace, investors responded with a very strong
flight-to-quality that drove up demand for pre-refunded bonds.
Describe recent portfolio activity.
o The Fund's cash reserves were kept at atypically high levels -- at times
reaching 5% of total assets -- as we attempted to maintain a degree of
liquidity in the Fund. The Fund had outflows of approximately $25 million
for the reporting period.
Describe Fund positioning at period-end.
o The Fund ended the reporting period with a neutral duration. We expect
outflows from the Fund to continue, given the current investment climate.
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 SEMI-ANNUAL REPORT NOVEMBER 30, 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 Barclays
Capital Municipal Bond Index. Values are from November 1998 to November 2008:
Barclays Capital
Municipal Bond
Institutional Shares(1,2) Investor A Shares(1,2) Index(3)
11/98 $10,000 $ 9,575 $10,000
11/99 $ 9,587 $ 9,156 $ 9,893
11/00 $10,277 $ 9,792 $10,702
11/01 $11,132 $10,580 $11,639
11/02 $11,822 $11,208 $12,375
11/03 $12,607 $11,922 $13,198
11/04 $13,216 $12,467 $13,736
11/05 $13,887 $13,067 $14,269
11/06 $14,786 $13,865 $15,142
1/07 $14,869 $13,923 $15,553
11/08 $13,310 $12,434 $14,991
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 long-term revenue bonds, pre-refunded
bonds, general obligation bonds and insured bonds.
Performance Summary for the Period Ended November 30, 2008
Average Annual Total Returns 4
-------------------------------------------------------------------
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 .................. 4.92% (10.31)% (10.48)% -- 1.09% -- 2.90% --
Investor A ..................... 4.52 (10.43) (10.70) (14.49)% 0.85 (0.03)% 2.65 2.20%
Investor A1 .................... 4.65 (10.27) (10.48) (14.06) 1.01 0.19 2.81 2.39
Investor B ..................... 4.43 (10.54) (10.92) (14.34) 0.59 0.26 2.39 2.39
Investor C ..................... 3.92 (10.69) (11.31) (12.17) 0.08 0.08 1.88 1.88
Investor C1 .................... 4.33 (10.50) (10.93) (11.79) 0.51 0.51 2.29 2.29
Barclays Capital Municipal
Bond Index ................... -- (4.98) (3.61) -- 2.58 -- 4.13 --
- ------------------------------------------------------------------------------------------------------------------------------------
4 Assuming maximum sales charges. See "About Fund Performance" on pages 14
and 15 for a detailed description of share classes, including any related
sales charges and fees.
Past performance is not indicative of future results.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 7
Fund Summary as of November 30, 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. Fund returns for
the six-month period ended November 30, 2008 lagged that of the Barclays
Capital Municipal Bond Index, but outperformed the Lipper New Jersey
Municipal Debt Funds category average. While the Barclays Index measures
the performance of municipal bonds nationally, the Lipper category
consists of funds that limit their investment to securities exempt from
taxation in New Jersey.
What factors influenced performance?
o The six-month period saw a tremendous amount of pressure applied to spread
products throughout the municipal market, with outflows from high-yield
funds hurting sectors such as corporate-backed, health care, land-secured,
housing, tobacco and pre-paid gas bonds. More than half of the states in
the U.S. experienced declining tax revenues and additional pressures from
heightened market volatility, which resulted in spending cuts, tapping of
reserves or raising of revenues in order to achieve balanced budgets.
These problems are expected to continue into 2009. As a result, municipal
bonds ended the period offering higher yields than U.S. Treasury
securities in all maturity ranges, which is a very unusual scenario.
o Two exceptions to the spread widening trend in the municipal market were
pre-refunded bonds and essential purpose bonds rated AA and above. Due to
the historically low returns on these bonds, we entered the period
underweight in both sectors, which hurt the Fund's performance. Exposure
to the underperforming housing and health care sectors further hampered
results.
o On the other hand, the Fund's slightly above-average distribution rate and
neutral duration position benefited performance relative to the Lipper
category average. Opportunistically selling into pockets of retail
investor demand also proved advantageous.
Describe recent portfolio activity.
o Portfolio turnover was low throughout the six months, as market
dislocations and liquidity pressures kept new issuance down in New Jersey.
This lack of new-issue supply, combined with the depressed valuations of
existing holdings, limited opportunities to restructure the portfolio.
Trading activity consisted primarily of smaller sales where retail
investor demand remained, as well as relative value trades. In making new
purchases, we sought bonds with higher-quality underlying ratings.
Describe Fund positioning at period-end.
o The Fund ended the period with a neutral duration relative to 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 SEMI-ANNUAL REPORT NOVEMBER 30, 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 Barclays
Capital Municipal Bond Index. Values are from November 1998 to November 2008:
Barclays Capital
Municipal Bond
Institutional Shares(1,2) Investor A Shares(1,2) Index(3)
11/98 $10,000 $ 9,575 $10,000
11/99 $ 9,490 $ 9,064 $ 9,893
11/00 $10,104 $ 9,626 $10,702
11/01 $10,871 $10,332 $11,639
11/02 $11,355 $10,765 $12,375
11/03 $12,205 $11,541 $13,198
11/04 $12,725 $12,003 $13,736
11/05 $13,414 $12,622 $14,269
11/06 $14,524 $13,632 $15,142
11/07 $14,630 $13,701 $15,553
11/08 $13,476 $12,586 $14,991
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 long-term revenue bonds, pre-refunded
bonds, general obligation bonds and insured bonds.
Performance Summary for the Period Ended November 30, 2008
Average Annual Total Returns 4
-------------------------------------------------------------------
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 .................. 4.83% (7.97)% (7.89)% -- 2.00% -- 3.03% --
Service ........................ 4.66 (8.06) (8.05) -- 1.77 -- 2.78 --
Investor A ..................... 4.47 (8.15) (8.14) (12.04)% 1.75 0.87% 2.77 2.33%
Investor A1 .................... 4.62 (7.98) (7.99) (11.67) 1.92 1.09 2.94 2.52
Investor B ..................... 3.90 (8.40) (8.74) (12.70) 1.01 0.67 2.02 2.02
Investor B1 .................... 4.41 (8.17) (8.37) (11.88) 1.51 1.17 2.52 2.52
Investor C ..................... 3.90 (8.50) (8.84) (9.72) 0.99 0.99 2.00 2.00
Investor C1 .................... 4.31 (8.22) (8.37) (9.25) 1.41 1.41 2.42 2.42
Barclays Capital Municipal
Bond Index ................... -- (4.98) (3.61) -- 2.58 -- 4.13 --
- ------------------------------------------------------------------------------------------------------------------------------------
4 Assuming maximum sales charges. See "About Fund Performance" on pages 14
and 15 for a detailed description of share classes, including any related
sales charges and fees.
Past performance is not indicative of future results.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 9
Fund Summary as of November 30, 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 returns for
the six-month period ended November 30, 2008 lagged that of the Barclays
Capital Municipal Bond Index, but outperformed the Lipper Pennsylvania
Municipal Debt Funds category average. While the Barclays Index measures
the performance of municipal bonds nationally, the Lipper category
consists of funds that limit their investment to securities exempt from
taxation in Pennsylvania.
What factors influenced performance?
o The six-month period saw a tremendous amount of pressure applied to spread
products throughout the municipal market, with outflows from high-yield
funds hurting sectors such as corporate-backed, health care, land-secured,
housing, tobacco and pre-paid gas bonds. More than half of the states in
the U.S. experienced declining tax revenues and additional pressures from
heightened market volatility, which resulted in spending cuts, tapping of
reserves or raising of revenues in order to achieve balanced budgets.
These problems are expected to continue into next year. As a result,
municipal bonds ended the period offering higher yields than U.S. Treasury
securities in all maturity ranges, a very unusual scenario.
o During the period, we actively moved the Fund's duration from a modestly
long position to neutral, which benefited performance by cushioning the
Fund from some of the negative price impact associated with rising rates
in the tax-exempt market.
o Despite the reduction in the Fund's duration, performance was negatively
impacted by exposure to the long end of the municipal yield curve, which
underperformed as the curve steepened. Fund performance was also hindered
by a widening in credit spreads, which negatively impacted weaker credits.
Describe recent portfolio activity.
o Other than the duration adjustment, activity in the Fund was aimed
primarily at improving credit quality and bond structures, which included
buying bonds with higher coupons to improve the income component in the
higher interest rate environment.
Describe Fund positioning at period-end.
o The Fund ended the period with a neutral duration, as well as a cash
reserve of approximately 6% of total assets, which will be invested
opportunistically as higher coupon new issues come to market.
The views expressed reflect the opinions of BlackRock as of the date of this
report and are subject to change based on changes in market, economic or other
conditions. These views are not intended to be a forecast of future events and
are no guarantee of future results.
10 SEMI-ANNUAL REPORT NOVEMBER 30, 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 Barclays
Capital Municipal Bond Index. Values are from November 1998 to November 2008:
Barclays Capital
Municipal Bond
Institutional Shares(1,2) Investor A Shares(1,2) Index(3)
11/98 $10,000 $ 9,575 $10,000
11/99 $ 9,623 $ 9,191 $ 9,893
11/00 $10,382 $ 9,891 $10,702
11/01 $11,250 $10,692 $11,639
11/02 $11,933 $11,313 $12,375
11/03 $12,787 $12,092 $13,198
11/04 $13,240 $12,490 $13,736
11/05 $13,779 $12,966 $14,269
11/06 $14,694 $13,804 $15,142
11/07 $14,868 $13,923 $15,553
11/08 $13,769 $12,864 $14,991
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 long-term revenue bonds, pre-refunded
bonds, general obligation bonds and insured bonds.
Performance Summary for the Period Ended November 30, 2008
Average Annual Total Returns 4
-------------------------------------------------------------------
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 .................. 4.73% (7.79)% (7.39)% -- 1.49% -- 3.25% --
Service ........................ 4.49 (7.98) (7.59) -- 1.25 -- 3.00 --
Investor A ..................... 4.29 (7.98) (7.60) (11.53)% 1.25 0.37% 3.00 2.55%
Investor A1 .................... 4.45 (7.91) (7.46) (11.17) 1.39 0.57 3.14 2.72
Investor B ..................... 3.75 (8.32) (8.18) (12.14) 0.53 0.19 2.25 2.25
Investor B1 .................... 4.23 (8.02) (7.85) (11.36) 0.98 0.65 2.73 2.73
Investor C ..................... 3.72 (8.24) (8.30) (9.18) 0.50 0.50 2.24 2.24
Investor C1 .................... 4.13 (8.06) (7.94) (8.82) 0.88 0.88 2.63 2.63
Barclays Capital Municipal
Bond Index ................... -- (4.98) (3.61) -- 2.58 -- 4.13 --
- ------------------------------------------------------------------------------------------------------------------------------------
4 Assuming maximum sales charges. See "About Fund Performance" on pages 14
and 15 for a detailed description of share classes, including any related
sales charges and fees.
Past performance is not indicative of future results.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 11
Fund Summary as of November 30, 2008 BlackRock Intermediate Municipal Fund
Portfolio Management Commentary
How did the Fund perform?
o The Fund recently changed its fiscal year end to May 31. Fund returns for
the six-month period ended November 30, 2008 lagged that of the Barclays
Capital Municipal Bond Index and the Lipper Intermediate Municipal Debt
Funds category average.
o The Fund focuses its investments on the intermediate portion of the
municipal yield curve; therefore, the Lipper category average provides a
truer representation of the Fund's composition and a more comparable means
for measurement.
What factors influenced performance?
o The six-month period saw a tremendous amount of pressure applied to spread
products throughout the municipal market, with outflows from high-yield
funds hurting sectors such as corporate-backed, health care, land-secured,
housing, tobacco and pre-paid gas bonds. More than half of the states in
the U.S. experienced declining tax revenues and additional pressures from
heightened market volatility, which resulted in spending cuts, tapping of
reserves or raising of revenues in order to achieve balanced budgets.
These problems are expected to continue into 2009. As a result, municipal
bonds ended the period offering higher yields than U.S. Treasury
securities in all maturity ranges, which is a very unusual scenario.
o Two exceptions to the spread widening trend in the municipal market were
pre-refunded bonds and essential purpose bonds rated AA and above. Due to
the historically low returns on these bonds, we entered the period
underweight in both sectors, which hurt the Fund's performance. Exposure
to the underperforming transportation and corporate-backed sectors further
hampered results.
o On the other hand, we maintained a slightly shorter duration versus the
Lipper category average, which benefited performance during the period.
Describe recent portfolio activity.
o Portfolio turnover was low throughout the six months, as market
dislocations and liquidity pressures kept new issuance down. This lack of
new-issue supply, combined with the depressed valuations of existing
holdings, limited opportunities to restructure the portfolio. Trading
activity primarily comprised swapping out of lower-quality issues in favor
of better-performing credits and sectors, as the market allowed. However,
toward the end of the reporting period, even this selective upgrading was
prohibited as the limited demand for higher yielding credits was
overwhelmed by distressed sellers.
Describe Fund positioning at period-end.
o The Fund ended the period with a slightly shorter duration relative to 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.
12 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
BlackRock Intermediate Municipal 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 Barclays
Capital Municipal Bond Index. Values are from November 1998 to November 2008:
Barclays Capital
Municipal Bond
Institutional Shares(1,2) Investor A Shares(1,2) Index(3)
11/98 $10,000 $9,575 $10,000
11/99 $9,890 $9,446 $9,893
11/00 $10,554 $10,055 $10,702
11/01 $11,341 $10,778 $11,639
11/02 $12,074 $11,446 $12,375
11/03 $12,899 $12,198 $13,198
11/04 $13,204 $12,455 $13,736
11/05 $13,429 $12,636 $14,269
11/06 $14,136 $13,268 $15,142
11/07 $14,533 $13,606 $15,553
11/08 $13,900 $12,984 $14,991
1 Assuming maximum sales charge, if any, transaction costs and other
operating expenses, including advisory fees.
2 The Fund invests primarily in a portfolio of investment grade obligations
whose interest is exempt from federal income taxes, with a dollar-weighted
average maturity from three to ten years.
3 This unmanaged Index consists of long-term revenue bonds, pre-refunded
bonds, general obligation bonds and insured bonds.
Performance Summary for the Period Ended November 30, 2008
Average Annual Total Returns 4
-------------------------------------------------------------------
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 .................. 4.29% (5.34)% (4.35)% -- 1.51% -- 3.35% --
Investor A ..................... 3.90 (5.55) (4.58) (8.63)% 1.26 0.38% 3.09 2.65%
Investor A1 .................... 4.16 (5.39) (4.45) (5.40) 1.41 1.20 3.26 3.15
Investor B ..................... 3.98 (5.49) (4.66) (5.59) 1.19 1.19 3.04 3.04
Investor C ..................... 3.31 (5.81) (5.30) (6.22) 0.52 0.52 2.33 2.33
Barclays Capital Municipal
Bond Index ................... -- (4.98) (3.61) -- 2.58 -- 4.13 --
- ------------------------------------------------------------------------------------------------------------------------------------
4 Assuming maximum sales charges. See "About Fund Performance" on pages 14
and 15 for a detailed description of share classes, including any related
sales charges and fees.
Past performance is not indicative of future results.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 13
About Fund Performance
BlackRock California Insured Municipal Bond Fund and 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 Shares 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 Shares 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 Shares 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 Shares 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 Shares 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.
14 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
About Fund Performance (concluded)
BlackRock Intermediate Municipal 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 Shares 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 1% 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 1%, declining to 0% after three years. In addition, Investor B
Shares are subject to a distribution fee of 0.10% per year and a service
fee of 0.20% 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 Shares 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.
For All Funds
Performance information reflects past performance and does not guarantee future
results. Current performance may be lower or higher than the performance data
quoted. Refer to www.blackrock.com/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, 9,
11 and 13 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 California Insured Municipal
Bond Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock Pennsylvania
Municipal Bond Fund and BlackRock Intermediate Municipal Fund, the Funds'
Advisor agreed to reimburse a portion of their fee. Without such reimbursement,
the Funds' performance would have been lower.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 15
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 16 - 19
(which are based on a hypothetical investment of $1,000 invested on June 1, 2008
and held through November 30, 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 examples are
useful in comparing ongoing expenses only, and will not help shareholders
determine the relative total expenses of owning different funds. If these
transactional expenses were included, shareholder expenses would have been
higher.
BlackRock California Insured 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
June 1, 2008 November 30, 2008 During the Period 1 June 1, 2008 November 30, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $ 935.10 $ 3.92 $ 1,000 $1,020.95 $ 4.09
Investor A ........ $ 1,000 $ 933.90 $ 4.98 $ 1,000 $1,019.85 $ 5.20
Investor A1 ....... $ 1,000 $ 934.70 $ 4.26 $ 1,000 $1,020.60 $ 4.45
Investor B ........ $ 1,000 $ 931.90 $ 6.28 $ 1,000 $1,018.50 $ 6.56
Investor C ........ $ 1,000 $ 930.50 $ 8.59 $ 1,000 $1,016.10 $ 8.97
Investor C1 ....... $ 1,000 $ 932.40 $ 6.67 $ 1,000 $1,018.10 $ 6.96
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.81% for Institutional, 1.03% for Investor A, 0.88%
for Investor A1, 1.30% for Investor B, 1.78% for Investor C and 1.38% for
Investor C1), multiplied by the average account value over the period,
multiplied by 182/364 (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 364.
BlackRock California Insured 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
June 1, 2008 November 30, 2008 During the Period 1 June 1, 2008 November 30, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional 3 ... $ 1,000 $ 935.10 $ 3.43 $ 1,000 $1,021.45 $ 3.59
Investor A 3 ...... $ 1,000 $ 933.90 $ 4.54 $ 1,000 $1,020.30 $ 4.75
Investor A1 3 ..... $ 1,000 $ 934.70 $ 3.82 $ 1,000 $1,021.05 $ 3.99
Investor B 3 ...... $ 1,000 $ 931.90 $ 5.84 $ 1,000 $1,018.95 $ 6.11
Investor C 3 ...... $ 1,000 $ 930.50 $ 8.16 $ 1,000 $1,016.55 $ 8.52
Investor C1 3 ..... $ 1,000 $ 932.40 $ 6.23 $ 1,000 $1,018.55 $ 6.51
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.71% for Institutional, 0.94% for Investor A, 0.79%
for Investor A1, 1.21% for Investor B, 1.69% for Investor C and 1.29% for
Investor C1), multiplied by the average account value over the period,
multiplied by 182/364 (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 364.
3 Expenses are net of waiver, excluding interest expense and fees.
16 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
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
June 1, 2008 November 30, 2008 During the Period 1 June 1, 2008 November 30, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $ 896.90 $ 4.93 $ 1,000 $1,019.80 $ 5.25
Investor A ........ $ 1,000 $ 895.70 $ 5.88 $ 1,000 $1,018.80 $ 6.26
Investor A1 ....... $ 1,000 $ 897.30 $ 5.27 $ 1,000 $1,019.45 $ 5.60
Investor B ........ $ 1,000 $ 894.60 $ 7.20 $ 1,000 $1,017.40 $ 7.67
Investor C ........ $ 1,000 $ 893.10 $ 9.56 $ 1,000 $1,014.90 $ 10.18
Investor C1 ....... $ 1,000 $ 895.00 $ 7.67 $ 1,000 $1,016.90 $ 8.17
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (1.04% for Institutional, 1.24% for Investor A, 1.11%
for Investor A1, 1.52% for Investor B, 2.02% for Investor C and 1.62% for
Investor C1), multiplied by the average account value over the period,
multiplied by 182/364 (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 364.
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
June 1, 2008 November 30, 2008 During the Period 1 June 1, 2008 November 30, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $ 896.90 $ 4.22 $ 1,000 $1,020.55 $ 4.50
Investor A ........ $ 1,000 $ 895.70 $ 5.21 $ 1,000 $1,019.50 $ 5.55
Investor A1 ....... $ 1,000 $ 897.30 $ 4.60 $ 1,000 $1,020.15 $ 4.90
Investor B ........ $ 1,000 $ 894.60 $ 6.54 $ 1,000 $1,018.10 $ 6.96
Investor C ........ $ 1,000 $ 893.10 $ 8.85 $ 1,000 $1,015.65 $ 9.42
Investor C1 ....... $ 1,000 $ 895.00 $ 6.96 $ 1,000 $1,017.65 $ 7.41
- ------------------------------------------------------------------------------------------------------------------------------------
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 Investor A, 0.97%
for Investor A1, 1.38% for Investor B, 1.87% for Investor C and 1.47% for
Investor C1), multiplied by the average account value over the period,
multiplied by 182/364 (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 364.
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
June 1, 2008 November 30, 2008 During the Period 1 June 1, 2008 November 30, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $ 920.30 $ 3.41 $ 1,000 $1,021.45 $ 3.59
Service ........... $ 1,000 $ 919.40 $ 4.94 $ 1,000 $1,019.85 $ 5.20
Investor A ........ $ 1,000 $ 918.50 $ 4.75 $ 1,000 $1,020.05 $ 5.00
Investor A1 ....... $ 1,000 $ 920.20 $ 4.13 $ 1,000 $1,020.71 $ 4.34
Investor B ........ $ 1,000 $ 916.00 $ 8.48 $ 1,000 $1,016.15 $ 8.92
Investor B1 ....... $ 1,000 $ 918.30 $ 6.09 $ 1,000 $1,018.65 $ 6.41
Investor C ........ $ 1,000 $ 915.00 $ 8.33 $ 1,000 $1,016.30 $ 8.77
Investor C1 ....... $ 1,000 $ 917.80 $ 6.42 $ 1,000 $1,018.30 $ 6.76
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.71% for Institutional, 1.03% for Service, 0.99% for
Investor A, 0.86% for Investor A1, 1.77% for Investor B, 1.27% for
Investor B1, 1.74% for Investor C and 1.34% for Investor C1), multiplied
by the average account value over the period, multiplied by 182/364 (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 364.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 17
Disclosure of Expenses (continued)
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
June 1, 2008 November 30, 2008 During the Period 1 June 1, 2008 November 30, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $ 920.30 $ 3.22 $ 1,000 $1,021.65 $ 3.39
Service ........... $ 1,000 $ 919.40 $ 4.08 $ 1,000 $1,020.75 $ 4.29
Investor A ........ $ 1,000 $ 918.50 $ 4.08 $ 1,000 $1,020.75 $ 4.29
Investor A1 ....... $ 1,000 $ 920.20 $ 3.36 $ 1,000 $1,021.50 $ 3.54
Investor B ........ $ 1,000 $ 916.00 $ 7.66 $ 1,000 $1,017.00 $ 8.07
Investor B1 ....... $ 1,000 $ 918.30 $ 5.28 $ 1,000 $1,019.50 $ 5.55
Investor C ........ $ 1,000 $ 915.00 $ 7.66 $ 1,000 $1,017.00 $ 8.07
Investor C1 ....... $ 1,000 $ 917.80 $ 5.75 $ 1,000 $1,019.00 $ 6.06
- ------------------------------------------------------------------------------------------------------------------------------------
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, 1.60% for Investor B, 1.10% for
Investor B1, 1.60% for Investor C and 1.20% for Investor C1), multiplied
by the average account value over the period, multiplied by 182/364 (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 364.
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
June 1, 2008 November 30, 2008 During the Period 1 June 1, 2008 November 30, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $ 922.10 $ 3.27 $ 1,000 $1,021.60 $ 3.44
Service ........... $ 1,000 $ 920.20 $ 4.61 $ 1,000 $1,020.20 $ 4.85
Investor A ........ $ 1,000 $ 920.20 $ 4.70 $ 1,000 $1,020.10 $ 4.95
Investor A1 ....... $ 1,000 $ 920.90 $ 4.03 $ 1,000 $1,020.80 $ 4.24
Investor B ........ $ 1,000 $ 916.80 $ 8.39 $ 1,000 $1,016.25 $ 8.82
Investor B1 ....... $ 1,000 $ 919.80 $ 5.95 $ 1,000 $1,018.80 $ 6.26
Investor C ........ $ 1,000 $ 917.60 $ 8.25 $ 1,000 $1,016.40 $ 8.67
Investor C1 ....... $ 1,000 $ 919.40 $ 6.33 $ 1,000 $1,018.40 $ 6.66
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.68% for Institutional, 0.96% for Service, 0.98% for
Investor A, 0.84% for Investor A1, 1.75% for Investor B, 1.24% for
Investor B1, 1.72% for Investor C and 1.32% for Investor C1), multiplied
by the average account value over the period, multiplied by 182/364 (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 364.
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
June 1, 2008 November 30, 2008 During the Period 1 June 1, 2008 November 30, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $ 922.10 $ 2.93 $ 1,000 $1,021.95 $ 3.08
Service ........... $ 1,000 $ 920.20 $ 4.08 $ 1,000 $1,020.75 $ 4.29
Investor A ........ $ 1,000 $ 920.20 $ 4.08 $ 1,000 $1,020.75 $ 4.29
Investor A1 ....... $ 1,000 $ 920.90 $ 3.36 $ 1,000 $1,021.50 $ 3.54
Investor B ........ $ 1,000 $ 916.80 $ 7.57 $ 1,000 $1,017.10 $ 7.97
Investor B1 ....... $ 1,000 $ 919.80 $ 5.28 $ 1,000 $1,019.50 $ 5.55
Investor C ........ $ 1,000 $ 917.60 $ 7.67 $ 1,000 $1,017.00 $ 8.07
Investor C1 ....... $ 1,000 $ 919.40 $ 5.76 $ 1,000 $1,019.00 $ 6.06
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.61% for Institutional, 0.85% for Service, 0.85% for
Investor A, 0.70% for Investor A1, 1.58% for Investor B, 1.10% for
Investor B1, 1.60% for Investor C and 1.20% for Investor C1), multiplied
by the average account value over the period, multiplied by 182/364 (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 364.
18 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Disclosure of Expenses (concluded)
BlackRock Intermediate Municipal 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
June 1, 2008 November 30, 2008 During the Period 1 June 1, 2008 November 30, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional ..... $ 1,000 $ 946.60 $ 3.84 $ 1,000 $1,021.05 $ 3.99
Investor A ........ $ 1,000 $ 944.50 $ 4.96 $ 1,000 $1,019.90 $ 5.15
Investor A1 ....... $ 1,000 $ 946.10 $ 4.33 $ 1,000 $1,020.55 $ 4.50
Investor B ........ $ 1,000 $ 945.10 $ 5.40 $ 1,000 $1,019.45 $ 5.60
Investor C ........ $ 1,000 $ 941.90 $ 8.64 $ 1,000 $1,016.10 $ 8.97
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.79% for Institutional, 1.02% for Investor A, 0.89%
for Investor A1, 1.11% for Investor B and 1.78% for Investor C),
multiplied by the average account value over the period, multiplied by
182/364 (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 364.
BlackRock Intermediate Municipal 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
June 1, 2008 November 30, 2008 During the Period 1 June 1, 2008 November 30, 2008 During the Period 1
- ------------------------------------------------------------------------------------------------------------------------------------
Institutional 3 ... $ 1,000 $ 946.60 $ 3.50 $ 1,000 $1,021.40 $ 3.64
Investor A 3 ...... $ 1,000 $ 944.50 $ 4.62 $ 1,000 $1,020.25 $ 4.80
Investor A1 3 ..... $ 1,000 $ 946.10 $ 3.94 $ 1,000 $1,020.95 $ 4.09
Investor B 3 ...... $ 1,000 $ 945.10 $ 5.06 $ 1,000 $1,019.80 $ 5.25
Investor C 3 ...... $ 1,000 $ 941.90 $ 8.30 $ 1,000 $1,016.45 $ 8.62
- ------------------------------------------------------------------------------------------------------------------------------------
1 For each class of the Fund, expenses are equal to the annualized expense
ratio for the class (0.72% for Institutional, 0.95% for Investor A, 0.81%
for Investor A1, 1.04% for Investor B and 1.71% for Investor C),
multiplied by the average account value over the period, multiplied by
182/364 (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 364.
3 Expenses are net of waiver, excluding interest expense and fees.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 19
Portfolio Information as of November 30, 2008
BlackRock California Insured Municipal Bond Fund
Percent of
Distribution by Market Sector Long-Term Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds ................................................... 67%
General Obligation Bonds .............................................. 27
Pre-refunded Bonds 1 .................................................. 6
- --------------------------------------------------------------------------------
Quality Ratings by Percent of
S&P/Moody's 2 Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa ............................................................... 46%
AA/Aa ................................................................. 40
A/A ................................................................... 12
Not Rated ............................................................. 2
- --------------------------------------------------------------------------------
BlackRock Florida Municipal Bond Fund
Percent of
Distribution by Market Sector Long-Term Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds ................................................... 78%
Pre-refunded Bonds 1 .................................................. 18
Mutual Fund ........................................................... 4
- --------------------------------------------------------------------------------
Quality Ratings by Percent of
S&P/Moody's 2 Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa ............................................................... 33%
AA/Aa ................................................................. 31
A/A ................................................................... 1
BBB/Baa ............................................................... 9
Not Rated ............................................................. 22
Other 3 ............................................................... 4
- --------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund
Percent of
Distribution by Market Sector Long-Term Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds ................................................... 84%
General Obligation Bonds .............................................. 4
Pre-refunded Bonds1 ................................................... 12
- --------------------------------------------------------------------------------
Quality Ratings by Percent of
S&P/Moody's 2 Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa ............................................................... 28%
AA/Aa ................................................................. 37
A/A ................................................................... 15
BBB/Baa ............................................................... 13
BB/Ba ................................................................. 1
B/B ................................................................... 1
Not Rated ............................................................. 5
- --------------------------------------------------------------------------------
1 Backed by an escrow fund.
2 Using the higher of Standard & Poor's ("S&P's") or Moody's Investors
Service ("Moody's") ratings.
3 Includes portfolio holdings in mutual funds.
20 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Portfolio Information (concluded)
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
- --------------------------------------------------------------------------------
Quality Ratings by Percent of
S&P/Moody's 2 Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa ............................................................... 32%
AA/Aa ................................................................. 43
A/A ................................................................... 15
BBB/Baa ............................................................... 8
BB/Ba ................................................................. 1
Not Rated ............................................................. 1
- --------------------------------------------------------------------------------
BlackRock Intermediate Municipal Fund
Percent of
Distribution by Market Sector Long-Term Investments
- --------------------------------------------------------------------------------
Other Revenue Bonds ................................................... 75%
General Obligation Bonds .............................................. 18
Mutual Funds .......................................................... 3
Pre-refunded Bonds 1 .................................................. 4
- --------------------------------------------------------------------------------
Quality Ratings by Percent of
S&P/Moody's 2 Long-Term Investments
- --------------------------------------------------------------------------------
AAA/Aaa ............................................................... 33%
AA/Aa ................................................................. 33
A/A ................................................................... 10
BBB/Baa ............................................................... 13
BB/Ba ................................................................. 1
Not Rated ............................................................. 10
- --------------------------------------------------------------------------------
1 Backed by an escrow fund.
2 Using the higher of S&P's or Moody's ratings.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 21
Schedule of Investments November 30, 2008 (Unaudited)
BlackRock California Insured Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
California -- 91.3%
- ----------------------------------------------------------------------------------------------------
Alameda, California, Public Financing Authority, Local
Agency Special Tax Revenue Bonds (Community
Facility Number 1), Series A, 7%, 8/01/19 $ 3,750 $ 3,750,150
- ----------------------------------------------------------------------------------------------------
Bakersfield, California, Wastewater Revenue Bonds,
Series A, 5%, 9/15/32 (a) 10,000 8,926,300
- ----------------------------------------------------------------------------------------------------
Bay Area Government Association, California, Tax
Allocation Revenue Refunding Bonds (California
Redevelopment Agency Pool), Series A,
6%, 12/15/24 (a) 770 778,655
- ----------------------------------------------------------------------------------------------------
Bay Area Toll Authority, California, Toll Bridge Revenue
Refunding Bonds (San Francisco Bay Area), Series F,
5%, 4/01/31 4,500 4,157,910
- ----------------------------------------------------------------------------------------------------
Butte-Glenn Community College District, California,
GO (Election of 2002), Series B, 4.85%,
8/01/29 (b)(c) 2,355 621,037
- ----------------------------------------------------------------------------------------------------
Cajon Valley, California, Unified Elementary School
District, GO (Election of 2000), Series E,
5%, 8/01/31 (a) 2,665 2,470,535
- ----------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority
Revenue Bonds, Series A:
(Kaiser Permanente), 5.50%, 6/01/22 (a)(d) 20,000 20,428,600
(Sutter Health), 6.25%, 8/15/35 2,080 1,993,929
- ----------------------------------------------------------------------------------------------------
California Health Facilities Financing Authority,
Revenue Refunding Bonds (Providence Health and
Services), Series C, 6.50%, 10/01/33 3,670 3,693,158
- ----------------------------------------------------------------------------------------------------
California State Department of Water Resources,
Water System Revenue Refunding Bonds (Central
Valley Project), Series AE, 5%, 12/01/28 2,500 2,390,350
- ----------------------------------------------------------------------------------------------------
California State University, Systemwide Revenue
Bonds, Series A, 5%, 11/01/39 (a) 5,000 4,339,900
- ----------------------------------------------------------------------------------------------------
California Statewide Communities Development
Authority, Health Facility Revenue Bonds (Memorial
Health Services), Series A, 6%, 10/01/23 2,475 2,434,237
- ----------------------------------------------------------------------------------------------------
California Statewide Communities Development
Authority Revenue Bonds:
(Adventist), Series B, 5%, 3/01/37 (e) 2,650 2,275,184
(Sutter Health), Series D, 5.05%, 8/15/38 (a) 2,500 2,213,125
- ----------------------------------------------------------------------------------------------------
Campbell, California, Union School District, GO
(Election of 2002), Series D, 5%, 8/01/35 (a) 2,335 2,123,963
- ----------------------------------------------------------------------------------------------------
Contra Costa County, California, Public Financing
Authority, Lease Revenue Refunding Bonds (Various
Capital Facilities), Series A, 5.35%, 8/01/24 (b) 5,585 5,572,825
- ----------------------------------------------------------------------------------------------------
Corona, California, COP, Refunding
(Corona Community) (f):
8%, 3/01/10 2,065 2,230,200
8%, 3/01/11 2,230 2,535,131
8%, 3/01/12 2,410 2,852,910
8%, 3/01/13 2,605 3,199,148
8%, 3/01/14 2,810 3,546,838
- ----------------------------------------------------------------------------------------------------
Duarte, California, Unified School District, Capital
Appreciation, GO (Election of 1998), Series E,
4.96%, 11/01/30 (a)(c) 4,805 1,187,027
- ----------------------------------------------------------------------------------------------------
Eureka, California, Unified School District, GO
(Election of 2002) (b)(c):
5.18%, 8/01/29 2,545 659,410
5.26%, 8/01/32 2,760 577,585
5.27%, 8/01/35 2,990 507,044
- ----------------------------------------------------------------------------------------------------
Glendale, California, Unified School District, GO,
Series F, 5%, 9/01/28 (b) 2,000 1,887,160
- ----------------------------------------------------------------------------------------------------
Glendale, California, Water Revenue Bonds,
5%, 2/01/32 (a) 6,825 6,279,956
- ----------------------------------------------------------------------------------------------------
Hollister, California, Joint Powers Finance Authority,
Wastewater Revenue Refunding Bonds (Refining and
Improvement Project), Series 1 (a):
5%, 6/01/32 6,330 5,654,779
5%, 6/01/37 5,000 4,370,200
- ----------------------------------------------------------------------------------------------------
Huntington Beach, California, Union High School
District, GO (Election of 2004) (b)(g):
5.02%, 8/01/33 (c) 5,000 974,100
5%, 8/01/35 3,000 2,672,280
- ----------------------------------------------------------------------------------------------------
La Quinta, California, Financing Authority, Local
Agency Revenue Bonds, Series A, 5.125%, 9/01/34 (h) 6,000 4,834,740
- ----------------------------------------------------------------------------------------------------
Long Beach, California, Harbor Revenue Refunding
Bonds, AMT, Series B, 5.20%, 5/15/27 (b) 3,445 2,965,732
- ----------------------------------------------------------------------------------------------------
Los Angeles, California, COP (Sonnenblick Del Rio
West Los Angeles), 6.20%, 11/01/31 (h) 4,000 4,027,320
- ----------------------------------------------------------------------------------------------------
Los Angeles, California, Harbor Department Revenue
Refunding Bonds, 7.60%, 10/01/18 (b)(d) 3,820 4,463,555
- ----------------------------------------------------------------------------------------------------
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedules of Investments,
the names and descriptions 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
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
S/F Single-Family
VRDN Variable Rate Demand Notes
See Notes to Financial Statements.
22 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Schedule of Investments (continued)
BlackRock California Insured Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
California (continued)
- ----------------------------------------------------------------------------------------------------
Los Angeles, California, Wastewater System Revenue
Refunding Bonds, Series A, 5%, 6/01/32 (b) $ 4,000 $ 3,620,640
- ----------------------------------------------------------------------------------------------------
Los Angeles, California, Water and Power Revenue
Bonds (Power System), Sub-Series A-1,
5%, 7/01/35 (a) 2,000 1,789,300
- ----------------------------------------------------------------------------------------------------
Los Angeles County, California, Metropolitan
Transportation Authority, Sales Tax Revenue
Refunding Bonds:
Proposition A, First Tier Senior-Series A,
5%, 7/01/35 (h) 4,000 3,603,640
Proposition C, VRDN, Second Senior Series A,
7%, 7/01/20 (b)(i)(j) 20,000 20,000,000
- ----------------------------------------------------------------------------------------------------
Los Angeles County, California, Sanitation Districts
Financing Authority, Revenue Refunding Bonds
(Capital Projects -- District Number 14), Sub-Series B,
5%, 10/01/29 (b)(f) 3,000 2,613,420
- ----------------------------------------------------------------------------------------------------
Los Gatos, California, Unified School District, GO
(Election of 2001), Series C, 5%, 8/01/30 (b)(g) 4,275 3,934,838
- ----------------------------------------------------------------------------------------------------
Los Rios, California, Community College District, GO
(Election of 2002), Series B, 5%, 8/01/27 (b) 2,000 1,884,040
- ----------------------------------------------------------------------------------------------------
Madera, California, Unified School District, GO
(Election 2002), 5%, 8/01/28 (a) 2,220 2,074,745
- ----------------------------------------------------------------------------------------------------
Montebello, California, Unified School District, GO
(Election of 1998), 5.02%, 8/01/28 (b)(c)(g) 2,355 658,858
- ----------------------------------------------------------------------------------------------------
Murrieta Valley, California, Unified School District,
Public Financing Authority, Special Tax Revenue
Bonds, Series A, 5.125%, 9/01/26 (e) 5,500 4,772,240
- ----------------------------------------------------------------------------------------------------
Oakland, California, Sewer Revenue Bonds, Series A,
5%, 6/15/28 (a) 3,565 3,304,719
- ----------------------------------------------------------------------------------------------------
Palm Springs, California, Financing Authority, Lease
Revenue Refunding Bonds (Convention Center
Project), Series A, 5.50%, 11/01/29 (b) 1,500 1,343,835
- ----------------------------------------------------------------------------------------------------
Palomar Pomerado Health Care District, California, GO
(Election of 2004), Series A, 5.125%, 8/01/37 (b) 1,850 1,715,209
- ----------------------------------------------------------------------------------------------------
Peralta, California, Community College District, GO:
(Election of 2000), Series C, 5%, 8/01/29 (b) 5,485 5,154,803
(Election of 2007), Series B, 5%, 8/01/37 (a) 2,000 1,803,240
- ----------------------------------------------------------------------------------------------------
Port of Oakland, California, Revenue Bonds, AMT,
Series K (b)(i):
5.75%, 11/01/16 3,100 3,000,924
5.875%, 11/01/17 2,290 2,208,018
- ----------------------------------------------------------------------------------------------------
Port of Oakland, California, Revenue Refunding Bonds,
AMT, Series L, 5.375%, 11/01/27 (b)(g) 12,710 10,099,493
- ----------------------------------------------------------------------------------------------------
Rancho Santiago, California, Community College
District, GO, 5.125%, 9/01/29 (a) 5,000 4,914,950
- ----------------------------------------------------------------------------------------------------
Riverside, California, Unified School District, GO
(Election of 2001), Series B, 5%, 8/01/30 (b) 4,295 3,903,339
- ----------------------------------------------------------------------------------------------------
Sacramento, California, Unified School District, GO
(Election of 2002) (b):
5%, 7/01/27 3,400 3,237,684
5%, 7/01/30 9,230 8,562,486
- ----------------------------------------------------------------------------------------------------
Sacramento County, California, Airport System
Revenue Bonds, Senior Series A, 5%, 7/01/32 (a) 5,675 5,068,343
- ----------------------------------------------------------------------------------------------------
Sacramento County, California, Sanitation District
Financing Authority, Revenue Bonds (Sacramento
Regional County Sanitation District),
5%, 12/01/36 (g) 7,600 6,725,772
- ----------------------------------------------------------------------------------------------------
Saddleback Valley, California, Unified School District,
GO, 5%, 8/01/29 (a) 1,820 1,716,879
- ----------------------------------------------------------------------------------------------------
San Diego, California, Certificates of Undivided
Interest, Water Utility Fund, Net System Revenue
Bonds, 5%, 8/01/21 (b)(g) 5,000 4,853,000
- ----------------------------------------------------------------------------------------------------
San Diego County, California, Water Authority, Water
Revenue Bonds, COP, Series A (a):
5%, 5/01/27 5,000 4,674,050
5%, 5/01/31 4,000 3,605,800
- ----------------------------------------------------------------------------------------------------
San Diego County, California, Water Authority, Water
Revenue Refunding Bonds, COP, Series A,
5%, 5/01/33 (a) 4,250 3,748,203
- ----------------------------------------------------------------------------------------------------
San Francisco, California, Bay Area Rapid Transit
District, Sales Tax Revenue Refunding Bonds,
5.125%, 7/01/36 (h) 345 319,587
- ----------------------------------------------------------------------------------------------------
San Francisco, California, City and County Airport
Commission, International Airport Revenue Refunding
Bonds, AMT, 2nd Series, 6.75%, 5/01/19 1,575 1,604,169
- ----------------------------------------------------------------------------------------------------
San Francisco, California, City and County Airport
Commission, International Airport, Special Facilities
Lease Revenue Bonds (SFO Fuel Company LLC), AMT,
Series A, 6.10%, 1/01/20 (a) 1,250 1,180,475
- ----------------------------------------------------------------------------------------------------
San Jose-Evergreen, California, Community College
District, GO (Election of 2004), Series B,
5.50%, 9/01/31 (a)(c) 5,000 1,226,800
- ----------------------------------------------------------------------------------------------------
San Juan, California, Unified School District, GO
(Election of 2002), 5%, 8/01/28 (b) 3,500 3,219,895
- ----------------------------------------------------------------------------------------------------
San Mateo County, California, Community College
District, GO (Election of 2005), Series B,
4.549%, 9/01/23 (b)(c) 6,720 2,777,174
- ----------------------------------------------------------------------------------------------------
San Mateo County, California, Joint Powers Authority,
Lease Revenue Refunding Bonds (Capital Projects),
Series A, 5.125%, 7/15/28 (a) 2,240 2,088,845
- ----------------------------------------------------------------------------------------------------
San Mateo County, California, Joint Powers Financing
Authority, Lease Revenue Refunding Bonds (Youth
Services Campus), Series A, 5%, 7/15/33 1,575 1,393,859
- ----------------------------------------------------------------------------------------------------
Santa Margarita, California, Water District, Special Tax
Refunding Bonds (Community Facilities District
Number 99), Series 1, 6.20%, 9/01/20 1,230 1,076,853
- ----------------------------------------------------------------------------------------------------
Santa Monica, California, Redevelopment Agency, Tax
Allocation Bonds (Earthquake Recovery
Redevelopment Project), 6%, 7/01/09 (f)(h) 4,000 4,159,600
- ----------------------------------------------------------------------------------------------------
Santa Rosa, California, High School District, GO
(Election of 2002), 5%, 8/01/28 (b) 1,000 919,970
- ----------------------------------------------------------------------------------------------------
Sonoma County, California, Junior College District, GO
(Election of 2002), Refunding, Series B,
5%, 8/01/28 (a) 6,700 6,392,738
- ----------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 23
Schedule of Investments (continued)
BlackRock California Insured Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
California (concluded)
- ----------------------------------------------------------------------------------------------------
South Tahoe, California, Joint Powers Financing
Authority, Lease Revenue Refunding Bonds,
5.125%, 10/01/25 (b) $ 4,865 $ 4,244,469
- ----------------------------------------------------------------------------------------------------
Southern California HFA, S/F Mortgage Revenue
Bonds, AMT, Series A, 5.80%, 12/01/49 (k)(l)(m) 2,900 2,691,374
- ----------------------------------------------------------------------------------------------------
Stockton, California, Public Financing Authority, Water
Revenue Bonds (Water System Capital Improvement
Projects), Series A, 5%, 10/01/31 (b) 1,400 1,260,742
- ----------------------------------------------------------------------------------------------------
Tamalpais, California, Union High School District, GO
(Election of 2006), 5%, 8/01/29 (b) 4,600 4,339,364
- ----------------------------------------------------------------------------------------------------
Turlock, California, Public Finance Authority, Sewer
Revenue Bonds, Series A, 5%, 9/15/26 (b)(g) 1,650 1,530,458
- ----------------------------------------------------------------------------------------------------
Wasco, California, Union High School District, GO,
Series A (e):
5%, 8/01/31 1,005 917,203
5%, 8/01/32 1,085 981,665
- ----------------------------------------------------------------------------------------------------
West Contra Costa, California, Unified School
District, GO (Election of 2005), Series B,
5.625%, 8/01/35 (n) 5,000 4,982,450
------------
295,495,131
====================================================================================================
====================================================================================================
Puerto Rico -- 1.4%
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, Public Improvement, GO,
Refunding, 5.70%, 7/01/20 (b) 5,000 4,629,500
- ----------------------------------------------------------------------------------------------------
Total Municipal Bonds -- 92.7% 300,124,631
====================================================================================================
Municipal Bonds Transferred to Par
Tender Option Bond Trusts (o) (000) Value
====================================================================================================
California -- 5.2%
- ----------------------------------------------------------------------------------------------------
Alameda County, California, Joint Powers Authority,
Lease Revenue Refunding Bonds, 5%, 12/01/34 (a) $ 1,200 $ 1,060,476
- ----------------------------------------------------------------------------------------------------
San Diego County, California, Water Authority, Water
Revenue Bonds, COP, Series A, 5%, 5/01/30 (a) 7,350 6,675,564
- ----------------------------------------------------------------------------------------------------
San Francisco, California, Bay Area Rapid Transit
District, Sales Tax Revenue Refunding Bonds, Series A,
5%, 7/01/30 (b) 5,270 4,876,436
- ----------------------------------------------------------------------------------------------------
Vista, California, Unified School District, GO, Series A,
5%, 8/01/25 (a) 4,199 4,097,933
- ----------------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts -- 5.2% 16,710,409
====================================================================================================
====================================================================================================
Mutual Fund Shares
====================================================================================================
BlackRock California Insured Municipal 2008 Term
Trust, Inc. (p) 68,500 1,025,445
- ----------------------------------------------------------------------------------------------------
Total Mutual Fund -- 0.3% 1,025,445
====================================================================================================
Total Long-Term Investments
(Cost $343,121,231) -- 98.2% 317,860,485
====================================================================================================
====================================================================================================
Short-Term Securities
====================================================================================================
CMA California Municipal Money Fund,
0.51% (p)(q) 12,518,638 12,518,638
- ----------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $12,518,638) -- 3.9% 12,518,638
====================================================================================================
Total Investments (Cost -- $355,639,869*) -- 102.1% 330,379,123
Other Assets Less Liabilities -- 1.3% 4,303,056
Liability for Trust Certificates, Including
Interest Expense and Fees Payable -- (3.4)% (11,008,236)
------------
Net Assets -- 100.0% $323,673,943
============
See Notes to Financial Statements.
24 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Schedule of Investments (concluded)
BlackRock California Insured Municipal Bond Fund
* The cost and unrealized appreciation (depreciation) of investments as of
November 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 344,495,518
=============
Gross unrealized appreciation .......................... $ 3,900,252
Gross unrealized depreciation .......................... (28,950,170)
-------------
Net unrealized depreciation ............................ $ (25,049,918)
=============
(a) FSA Insured.
(b) MBIA Insured.
(c) Represents a zero-coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(d) Security is collateralized by Municipal or U.S. Treasury Obligations.
(e) Assured Guaranty Insured.
(f) 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.
(g) FGIC Insured.
(h) AMBAC Insured.
(i) Variable rate security. Rate shown is as of report date. Maturity shown is
the final maturity date.
(j) Security may have a maturity of more than one year at the time of
issuance, but has variable rate and demand features that qualify it as a
short-term security.
(k) FHLMC Collateralized.
(l) FNMA Collateralized.
(m) GNMA Collateralized.
(n) BHAC Insured.
(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
Purchase Sale Realized
Affiliate Cost Cost Gain Income
--------------------------------------------------------------------------
BlackRock California
Insured Municipal
2008 Term Trust, Inc. -- -- -- $ 11,893
CMA California Municipal
Money Fund $3,225,962 -- -- $126,774
--------------------------------------------------------------------------
(q) Represents the current yield as of report date.
o Effective June 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are
used in determining the fair value of investments, which are as follows:
o Level 1 -- price quotations in active markets/exchanges for
identical securities
o Level 2 -- other observable inputs (including, but not limited to:
quoted prices for similar assets or liabilities in markets that are
not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves,
volatilities, prepayment speeds, loss severities, credit risks, and
default rates) or other market-corroborated inputs)
o Level 3 -- unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs are
not available (including the Fund's own assumption used in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
For information about the Fund's policy regarding valuation of investments
and other significant accounting policies, please refer to Note 1 of the
Notes to Financial Statements.
The following table summarizes the inputs used as of November 30, 2008 in
determining the fair valuation of the Fund's investments:
--------------------------------------------------------------------------
Investments in
Valuation Inputs Securities
--------------------------------------------------------------------------
Level 1 .................................................. $ 13,544,083
Level 2 .................................................. 316,835,040
Level 3 .................................................. --
--------------------------------------------------------------------------
Total $330,379,123
============
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 25
Schedule of Investments November 30, 2008 (Unaudited)
BlackRock Florida Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
California -- 2.6%
- ----------------------------------------------------------------------------------------------------
Los Angeles County, California, Metropolitan
Transportation Authority, Sales Tax Revenue Refunding
Bonds, Proposition C, VRDN, Second Senior Series A,
7%, 7/01/20 (a)(b)(c) $2,000 $ 2,000,000
====================================================================================================
====================================================================================================
Florida -- 83.8%
- ----------------------------------------------------------------------------------------------------
Altamonte Springs, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health Systems --
Sunbelt), 7%, 10/01/14 (d) 1,095 1,329,352
- ----------------------------------------------------------------------------------------------------
Ballantrae, Florida, Community Development District,
Capital Improvement Revenue Bonds, 6%, 5/01/35 1,195 892,294
- ----------------------------------------------------------------------------------------------------
Broward County, Florida, HFA, S/F Mortgage
Revenue Refunding Bonds, AMT, Series E,
5.90%, 10/01/39 (e)(f)(g) 1,000 948,340
- ----------------------------------------------------------------------------------------------------
Broward County, Florida, School Board, COP, Series A,
5.25%, 7/01/33 (h) 1,200 1,092,144
- ----------------------------------------------------------------------------------------------------
Capital Trust Agency, Florida, Air Cargo Revenue
Bonds, AMT, 6.25%, 1/01/19 535 456,890
- ----------------------------------------------------------------------------------------------------
Citrus County, Florida, Hospital Board Revenue
Refunding Bonds (Citrus Memorial Hospital):
6.25%, 8/15/23 865 791,795
6.375%, 8/15/32 1,500 1,290,480
- ----------------------------------------------------------------------------------------------------
Cypress Lakes, Florida, Community Development
District, Special Assessment Bonds, Series A,
6%, 5/01/34 1,000 749,470
- ----------------------------------------------------------------------------------------------------
Fiddlers Creek, Florida, Community Development
District Number 2, Special Assessment Revenue
Bonds, Series A, 6.375%, 5/01/35 1,500 1,038,240
- ----------------------------------------------------------------------------------------------------
Florida HFA, Homeowner Mortgage Revenue Bonds,
AMT, Series 3, 6.35%, 7/01/28 (a)(i) 820 838,770
- ----------------------------------------------------------------------------------------------------
Florida Housing Finance Corporation, Homeowner
Mortgage Revenue Refunding Bonds, AMT, Series 4,
6.25%, 7/01/22 (h) 400 408,004
- ----------------------------------------------------------------------------------------------------
Florida State Board of Education, Lottery Revenue
Bonds, Series B, 6.25%, 7/01/10 (j)(k) 5,000 5,397,700
- ----------------------------------------------------------------------------------------------------
Greater Orlando Aviation Authority, Florida, Airport
Facilities Revenue Bonds (JetBlue Airways Corp.),
AMT, 6.375%, 11/15/26 1,000 642,580
- ----------------------------------------------------------------------------------------------------
Harbor Bay, Florida, Community Development District,
Capital Improvement Special Assessment Revenue
Bonds, Series A, 7%, 5/01/33 960 821,357
- ----------------------------------------------------------------------------------------------------
Heritage Harbour North Community Development
District, Florida, Capital Improvement Bonds,
6.375%, 5/01/38 500 346,195
- ----------------------------------------------------------------------------------------------------
Hillsborough County, Florida, Aviation Authority
Revenue Bonds, AMT, Series A, 5.50%, 10/01/38 (l) 1,310 1,030,092
- ----------------------------------------------------------------------------------------------------
Hillsborough County, Florida, IDA, Exempt Facilities
Revenue Bonds (National Gypsum Company), AMT:
Series A, 7.125%, 4/01/30 1,000 627,310
Series B, 7.125%, 4/01/30 1,750 1,097,512
- ----------------------------------------------------------------------------------------------------
Hillsborough County, Florida, IDA, PCR, Refunding
(Tampa Electric Company Project), Series A,
5.65%, 5/15/18 400 374,972
- ----------------------------------------------------------------------------------------------------
Jacksonville Electric Authority, Florida, Saint John's
River Power Park System Revenue Bonds, Issue Three,
Series 2, 5%, 10/01/37 575 507,972
- ----------------------------------------------------------------------------------------------------
Jacksonville, Florida, Economic Development
Commission, Health Care Facilities Revenue Bonds
(Mayo Clinic -- Jacksonville):
Series A, 5.50%, 11/15/36 1,000 859,290
Series A, 5.50%, 11/15/36 (a) 1,000 859,290
Series B, 5.50%, 11/15/36 (a) 410 352,309
Series B, 5.50%, 11/15/36 2,000 1,718,580
- ----------------------------------------------------------------------------------------------------
Jacksonville, Florida, Economic Development
Commission, IDR (Metropolitan Parking Solutions
Project), AMT, 5.875%, 6/01/31 (m) 2,050 1,694,346
- ----------------------------------------------------------------------------------------------------
Jacksonville, Florida, Guaranteed Entitlement
Revenue Refunding and Improvement Bonds,
5.25%, 10/01/32 (a)(k) 1,200 1,115,220
- ----------------------------------------------------------------------------------------------------
Jacksonville, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Baptist Medical Center
Project), 5%, 8/15/37 (h) 1,000 857,700
- ----------------------------------------------------------------------------------------------------
Jacksonville, Florida, Port Authority Revenue Bonds,
AMT, 6%, 11/01/38 (l) 1,170 1,017,584
- ----------------------------------------------------------------------------------------------------
Lee County, Florida, HFA, S/F Mortgage Revenue
Bonds (Multi-County Program), AMT, Series A-2,
6%, 9/01/40 (e)(f)(g) 1,000 982,590
- ----------------------------------------------------------------------------------------------------
Manatee County, Florida, HFA, Homeowner Revenue
Bonds, AMT, Series A, 5.90%, 9/01/40 (e)(f)(g) 750 682,410
- ----------------------------------------------------------------------------------------------------
Martin County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Martin Memorial Medical
Center), Series A, 5.875%, 11/15/12 (j) 2,320 2,612,714
- ----------------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Aviation Revenue Bonds,
AMT, Series A, 5%, 10/01/33 (h) 1,435 1,073,366
- ----------------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport),
AMT, Series A, 5.50%, 10/01/41 (h) 1,400 1,097,376
- ----------------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Expressway Authority,
Toll System Revenue Bonds, Series B,
5.25%, 7/01/26 (a)(k) 2,495 2,384,521
- ----------------------------------------------------------------------------------------------------
Miami-Dade County, Florida, HFA, Home Ownership
Mortgage Revenue Bonds, AMT, Series A,
5.55%, 10/01/49 (e)(f)(g) 1,000 859,460
- ----------------------------------------------------------------------------------------------------
Miami-Dade County, Florida, School Board, COP,
Refunding, Series B, 5.25%, 5/01/30 (l) 815 748,227
- ----------------------------------------------------------------------------------------------------
Miami-Dade County, Florida, Solid Waste System
Revenue Bonds, 5.25%, 10/01/30 (a) 1,250 1,123,988
- ----------------------------------------------------------------------------------------------------
Middle Village Community Development District, Florida,
Special Assessment Bonds, Series A, 6%, 5/01/35 1,000 691,690
- ----------------------------------------------------------------------------------------------------
Midtown Miami, Florida, Community Development
District, Special Assessment Revenue Bonds, Series A,
6.25%, 5/01/37 1,000 648,310
- ----------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
26 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Schedule of Investments (continued) BlackRock Florida Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
Florida (concluded)
- ----------------------------------------------------------------------------------------------------
Oak Creek, Florida, Community Development District,
Special Assessment Bonds, 5.80%, 5/01/35 $ 960 $ 662,640
- ----------------------------------------------------------------------------------------------------
Orange County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Orlando Regional
Healthcare), 6%, 12/01/12 (j) 2,705 3,037,147
- ----------------------------------------------------------------------------------------------------
Orlando, Florida, Urban Community Development
District, Capital Improvement Special
Assessment Bonds:
6.25%, 5/01/34 1,000 700,830
Series A, 6.95%, 5/01/11 (j) 930 1,022,786
- ----------------------------------------------------------------------------------------------------
Osceola County, Florida, Tourist Development Tax
Revenue Bonds, Series A, 5.50%, 10/01/27 (a)(k) 925 833,592
- ----------------------------------------------------------------------------------------------------
Palm Beach County, Florida, School Board, COP,
Series A, 5%, 8/01/31 (h) 1,000 899,710
- ----------------------------------------------------------------------------------------------------
Park Place Community Development District, Florida,
Special Assessment Revenue Bonds:
6.75%, 5/01/10 (j) 500 536,410
6.375%, 5/01/34 980 736,156
- ----------------------------------------------------------------------------------------------------
Pasco County, Florida, Health Facilities Authority, Gross
Revenue Bonds (Adventist Health System -- Sunbelt),
7%, 10/01/14 (d) 2,080 2,461,784
- ----------------------------------------------------------------------------------------------------
Saint Johns County, Florida, Sales Tax Revenue Bonds,
Series A, 5.25%, 10/01/28 (n) 1,000 927,810
- ----------------------------------------------------------------------------------------------------
Saint Johns County, Florida, Water and Sewer Revenue
Bonds, CABS, 5.368%, 6/01/32 (n)(o) 2,295 486,356
- ----------------------------------------------------------------------------------------------------
Santa Rosa County, Florida, School Board, COP,
Refunding, Series 2, 5.25%, 2/01/26 (a)(k) 2,000 1,737,800
- ----------------------------------------------------------------------------------------------------
South Kendall, Florida, Community Development
District, Special Assessment Bonds, Series A,
5.90%, 5/01/35 955 699,079
- ----------------------------------------------------------------------------------------------------
South Lake County, Florida, Hospital District Revenue
Bonds (South Lake Hospital Inc.):
5.80%, 10/01/34 1,000 768,880
6.375%, 10/01/34 995 808,378
- ----------------------------------------------------------------------------------------------------
Suncoast Community Development District, Florida,
Capital Improvement Revenue Bonds, Series A,
5.875%, 5/01/34 590 434,494
- ----------------------------------------------------------------------------------------------------
University of Central Florida Athletics Association Inc.,
COP, Series A, 5.25%, 10/01/34 (a)(k) 2,860 2,242,926
- ----------------------------------------------------------------------------------------------------
University of Central Florida, COP (UCF Convocation
Center), Series A, 5%, 10/01/35 (a)(k) 1,600 1,006,864
- ----------------------------------------------------------------------------------------------------
Vista Lakes Community Development District, Florida,
Capital Improvement Revenue Bonds, Series A,
6.75%, 5/01/12 ( (j) 1,405 1,565,493
- ----------------------------------------------------------------------------------------------------
Volusia County, Florida, IDA, Student Housing Revenue
Bonds (Stetson University Project), Series A,
5%, 6/01/35 (p) 1,000 731,100
- ----------------------------------------------------------------------------------------------------
Watergrass Community Development District, Florida,
Special Assessment Revenue Bonds, Series B,
5.125%, 11/01/14 1,000 776,460
------------
65,137,135
====================================================================================================
====================================================================================================
Puerto Rico -- 4.0%
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Aqueduct and Sewer
Authority, Senior Lien Revenue Bonds, Series A,
6%, 7/01/44 2,200 1,904,298
- ----------------------------------------------------------------------------------------------------
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 1,189,325
------------
3,093,623
====================================================================================================
Total Municipal Bonds -- 90.4% 70,230,758
====================================================================================================
====================================================================================================
Municipal Bonds Transferred to
Tender Option Bond Trusts (q)
====================================================================================================
Florida -- 6.6%
- ----------------------------------------------------------------------------------------------------
South Broward, Florida, Hospital District, Hospital
Revenue Bonds, 5.625%, 5/01/32 (a) 4,640 5,164,413
- ----------------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts -- 6.6% 4,640 5,164,413
====================================================================================================
====================================================================================================
Mutual Fund Shares
====================================================================================================
BlackRock Florida Insured Municipal 2008
Term Trust (r) 211,000 3,152,340
- ----------------------------------------------------------------------------------------------------
Total Mutual Fund -- 4.0% 3,152,340
====================================================================================================
Total Long-Term Investments
(Cost -- $85,866,428) -- 101.0% 78,547,511
====================================================================================================
====================================================================================================
Short-Term Securities
====================================================================================================
CMA Florida Municipal Money Fund, 0.84% (r)(s) 516,894 516,894
- ----------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $516,894) -- 0.7% 516,894
====================================================================================================
Total Investments (Cost -- $89,383,322*) -- 101.7% 79,064,405
Other Assets Less Liabilities -- 1.3% 986,324
Liability for Trust Certificates, Including
Interest Expense and Fees Payable -- (3.0)% (2,324,746)
------------
Net Assets -- 100.0% $ 77,725,983
============
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 27
Schedule of Investments (concluded) BlackRock Florida Municipal Bond Fund
* The cost and unrealized appreciation (depreciation) of investments as of
November 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost .......................................... $ 87,589,010
============
Gross unrealized appreciation ........................... $ 1,977,545
Gross unrealized depreciation ........................... (12,822,150)
------------
Net unrealized depreciation ............................. $(10,844,605)
============
(a) MBIA Insured.
(b) Variable rate security. Rate shown is as of report date. Maturity shown is
the final maturity date.
(c) Security may have a maturity of more than one year at the time of
issuance, but has variable rate and demand features that qualify it as a
short-term security.
(d) Security is collateralized by Municipal or U.S. Treasury Obligations.
(e) FNMA Collateralized.
(f) FHLMC Collateralized.
(g) GNMA Collateralized.
(h) FSA Insured.
(i) FHA Insured.
(j) 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.
(k) FGIC Insured.
(l) Assured Guaranty Insured.
(m) ACA Insured.
(n) AMBAC Insured.
(o) Represents a zero-coupon bond. Rate shown reflects the effective yield at
time of purchase.
(p) CIFG Insured.
(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) 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
Affiliate Cost Cost Gain Income
--------------------------------------------------------------------------
BlackRock Florida Insured
Municipal 2008
Term Trust -- -- -- $ 6,330
CMA Florida Municipal
Money Fund $511,067 -- -- $10,809
--------------------------------------------------------------------------
(s) Represents the current yield as of report date.
o Effective June 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are
used in determining the fair value of investments, which are as follows:
o Level 1 -- price quotations in active markets/exchanges for
identical securities
o Level 2 -- other observable inputs (including, but not limited to:
quoted prices for similar assets or liabilities in markets that are
not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves,
volatilities, prepayment speeds, loss severities, credit risks, and
default rates) or other market-corroborated inputs)
o Level 3 -- unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs are
not available (including the Fund's own assumption used in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
For information about the Fund's policy regarding valuation of investments
and other significant accounting policies, please refer to Note 1 of the
Notes to Financial Statements.
The following table summarizes the inputs used as of November 30, 2008 in
determining the fair valuation of the Fund's investments:
--------------------------------------------------------------------------
Investments in
Valuation Inputs Securities
--------------------------------------------------------------------------
Level 1 .................................................... $ 3,669,234
Level 2 .................................................... 75,395,171
Level 3 .................................................... --
--------------------------------------------------------------------------
Total $79,064,405
===========
See Notes to Financial Statements.
28 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Schedule of Investments November 30, 2008 (Unaudited)
BlackRock New Jersey Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
New Jersey -- 81.0%
- ----------------------------------------------------------------------------------------------------
Burlington County, New Jersey, Bridge Commission,
EDR, Refunding (The Evergreens Project),
5.625%, 1/01/38 $ 1,850 $ 1,217,022
- ----------------------------------------------------------------------------------------------------
Camden County, New Jersey, Pollution Control
Financing Authority, Solid Waste Resource Recovery,
Revenue Refunding Bonds, AMT:
Series A, 7.50%, 12/01/10 340 340,425
Series B, 7.50%, 12/01/09 25 25,042
- ----------------------------------------------------------------------------------------------------
Cape May Point, New Jersey, GO, 5.70%, 3/15/13 750 776,505
- ----------------------------------------------------------------------------------------------------
Delaware River Joint Toll Bridge Commission of
New Jersey and Pennsylvania, Bridge Revenue
Refunding Bonds, 5%, 7/01/24 2,450 2,312,922
- ----------------------------------------------------------------------------------------------------
Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds, 5.75%, 1/01/26 (a) 15,000 15,030,450
- ----------------------------------------------------------------------------------------------------
Delaware River Port Authority of Pennsylvania and
New Jersey, Revenue Refunding Bonds (Port District
Project), Series A, 5.20%, 1/01/27 (a) 350 335,877
- ----------------------------------------------------------------------------------------------------
Garden State Preservation Trust of New Jersey,
Capital Appreciation Revenue Bonds, Series B,
5.24%, 11/01/27 (a)(b) 4,135 1,343,379
- ----------------------------------------------------------------------------------------------------
Garden State Preservation Trust of New Jersey, Open
Space and Farmland Preservation Revenue Bonds,
Series A (a):
5.80%, 11/01/22 1,640 1,724,919
5.75%, 11/01/28 2,080 2,188,971
- ----------------------------------------------------------------------------------------------------
Garden State Preservation Trust of New Jersey
Revenue Bonds, Series B, 5.17%, 11/01/24 (a)(b) 10,000 4,041,900
- ----------------------------------------------------------------------------------------------------
Gloucester County, New Jersey, Improvement
Authority, Lease Revenue Bonds, Series A,
5%, 7/15/23 (c) 250 244,655
- ----------------------------------------------------------------------------------------------------
Hopatcong Boro, New Jersey, GO, 5.75%,
8/01/13 (d)(e) 1,300 1,482,195
- ----------------------------------------------------------------------------------------------------
Knowlton Township, New Jersey, Board of Education,
GO, 6.60%, 8/15/11 169 186,425
- ----------------------------------------------------------------------------------------------------
Middlesex County, New Jersey, COP, Refunding,
5%, 8/01/22 (c) 200 194,770
- ----------------------------------------------------------------------------------------------------
Middlesex County, New Jersey, Improvement Authority,
County-Guaranteed Revenue Bonds (Golf Course
Projects), 5.25%, 6/01/26 1,705 1,721,214
- ----------------------------------------------------------------------------------------------------
Middlesex County, New Jersey, Improvement
Authority Revenue Bonds (New Brunswick Apartments
Rental Housing), AMT, 5.15%, 2/01/24 (f) 2,965 2,572,375
- ----------------------------------------------------------------------------------------------------
Middlesex County, New Jersey, Improvement Authority,
Senior Revenue Bonds (Heldrich Center Hotel/
Conference Project), Series A, 5%, 1/01/15 1,000 835,300
- ----------------------------------------------------------------------------------------------------
Middlesex County, New Jersey, Pollution Control
Financing Authority, Revenue Refunding Bonds
(Amerada Hess Corporation), 6.05%, 9/15/34 1,000 778,960
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, Cigarette Tax Revenue Bonds:
5.625%, 6/15/19 520 423,462
5.75%, 6/15/29 790 568,642
5.75%, 6/15/29 (g) 1,000 774,820
5.50%, 6/15/31 (h) 125 85,756
5.75%, 6/15/34 3,845 2,674,351
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, EDR (Masonic Charity Foundation
of New Jersey):
5.25%, 6/01/24 875 786,494
5.25%, 6/01/32 500 422,570
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, EDR, Refunding:
(Burlington Coat Factory), 6.125%, 9/01/10 80 80,062
(Kapkowski Road Landfill Reclamation
Improvement District Project), 6.50%, 4/01/28 2,500 1,997,050
(The Seeing Eye, Inc. Project), 5%, 12/01/24 (e) 6,500 6,373,705
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, EDR (The Seeing Eye, Inc.),
6.20%, 12/01/09 (d) 3,000 3,200,310
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, First Mortgage Revenue
Bonds, Series A:
(Lions Gate Project), 5.875%, 1/01/37 1,000 677,160
(The Presbyterian Home), 6.375%, 11/01/31 1,330 989,453
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, First Mortgage Revenue
Refunding Bonds, Series A:
(Fellowship Village), 5.30%, 1/01/10 585 575,096
(The Winchester Gardens at Ward Homestead
Project), 5.80%, 11/01/31 1,500 1,121,535
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, IDR, Refunding (Newark Airport
Marriott Hotel), 7%, 10/01/14 1,250 1,186,975
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, Motor Vehicle Surcharge
Revenue Bonds, Series A (c):
4.95%, 7/01/21 (b) 1,675 803,296
5%, 7/01/29 2,100 1,876,287
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, PCR (Public Service Electric &
Gas Co.), AMT, Series A, 6.40%, 5/01/32 (c) 100 93,024
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, Retirement Community Revenue
Bonds (Cedar Crest Village Inc. Facility), Series A,
7.25%, 11/15/11 (d) 425 478,580
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, Retirement Community Revenue
Refunding Bonds (Seabrook Village, Inc.):
5.25%, 11/15/26 2,000 1,351,320
5.25%, 11/15/36 600 369,858
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, Revenue Bonds:
(American Airlines Inc. Project), AMT,
7.10%, 11/01/31 1,075 452,145
(Motor Vehicle Commission), Series A,
3.52%, 7/01/12 (b)(c) 4,000 3,473,280
(Newark Downtown District Management
Corporation), 5.125% 6/15/37 350 239,918
(Saint Barnabas Medical Center Project),
Series A, 5.625%, 7/01/23 (b)(c) 4,000 1,641,080
- ----------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 29
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 $ 2,771,550
Series L, 5%, 3/01/30 (a) 1,700 1,600,159
Series O, 5.25%, 3/01/23 1,590 1,600,653
Series U, 5%, 9/01/37 (e) 1,000 910,680
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, Solid Waste Disposal Facilities
Revenue Bonds (Waste Management Inc.), AMT,
Series A, 5.30%, 6/01/15 2,000 1,698,900
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, Special Facility Revenue Bonds
(Continental Airlines Inc. Project), AMT,
6.25%, 9/15/19 3,000 1,829,190
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, State Contract Revenue Refunding
Bonds (Economic Fund), Series A, 5.25%,
3/15/21 (b)(c) 2,000 1,003,920
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, Water Facilities Revenue Bonds
(New Jersey -- American Water Company, Inc. Project),
AMT, Series A:
5.25%, 11/01/32 (e) 1,250 931,587
6.875%, 11/01/34 (i) 100 101,178
- ----------------------------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority
Revenue Bonds:
(Avalon at Hillsborough), AMT, Series A,
6.625%, 7/01/35 500 363,115
(Children's Specialized Hospital), Series A,
5.50%, 7/01/36 460 338,712
(Hunterdon Medical Center), Series A,
5.25%, 7/01/25 750 614,040
(Hunterdon Medical Center), Series A,
5.125%, 7/01/35 1,100 796,829
(Kennedy Health System), 5.50%, 7/01/21 2,000 1,873,760
(Kennedy Health System), 5.625%, 7/01/31 455 389,512
(Meridian Health), Series I, 5%, 7/01/38 (g) 1,925 1,723,221
(Pascack Valley Hospital Association),
6%, 7/01/13 (j) 830 27,805
(RWJ Healthcare Corporation), Series B,
5%, 7/01/25 (h) 250 191,407
(Robert Wood Johnson University Hospital),
5.75%, 7/01/25 1,000 924,470
(South Jersey Hospital System), 6%, 7/01/12 (d) 1,500 1,677,585
- ----------------------------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds:
(Atlantic City Medical Center), 6.25%,
7/01/12 (d) 405 451,680
(Atlantic City Medical Center), 6.25%, 7/01/17 505 511,752
(Bayshore Community Hospital), 5.125%,
7/01/32 (h) 1,500 1,073,820
(Capital Health System Inc.), Series A, 5.75%,
7/01/23 600 528,078
(General Hospital Center at Passaic), 6.75%,
7/01/19 (a)(k) 125 146,790
(Hackensack University Medical Center), 5.25%,
1/01/36 (g) 3,600 3,317,148
(Saint Barnabas Health Care System), Series A,
5%, 7/01/29 3,940 2,774,390
(Saint Barnabas Health Care System), Series B,
5.92%, 7/01/30 (b) 4,500 718,515
- ----------------------------------------------------------------------------------------------------
New Jersey Health Care Facilities Financing Authority,
Revenue Refunding Bonds (concluded):
(Saint Barnabas Health Care System), Series B,
5.72%, 7/01/36 (b) 7,360 703,984
(Saint Barnabas Health Care System), Series B,
5.79%, 7/01/37 (b) 7,000 608,230
(South Jersey Hospital System), 5%, 7/01/36 1,000 760,970
(South Jersey Hospital System), 5%, 7/01/46 3,200 2,326,496
- ----------------------------------------------------------------------------------------------------
New Jersey Sports and Exposition Authority, Luxury Tax
Revenue Refunding Bonds (Convention Center),
5.50%, 3/01/21 (c) 805 791,484
- ----------------------------------------------------------------------------------------------------
New Jersey Sports and Exposition Authority, State
Contract Revenue Bonds, Series A, 5.50%,
3/01/10 (c)(d) 5,000 5,157,281
- ----------------------------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority
Revenue Bonds:
(Fairleigh Dickinson University), Series D, 5.25%,
7/01/32 (l) 2,800 1,875,244
(Georgian Court College Project), Series C, 6.50%,
7/01/13 (d) 750 877,935
(Kean University), Series D, 5.25%, 7/01/13 (d)(i) 250 278,837
(Montclair State University), Series F, 5%,
7/01/11 (d)(i) 500 533,765
(New Jersey Institute of Technology), Series G,
5.25%, 7/01/19 (c) 1,000 1,011,280
(Public Library Project Grant Issue), Series A,
5.50%, 9/01/19 (e) 1,120 1,149,176
(Richard Stockton College), Series F, 5%,
7/01/31 (c) 500 432,460
(Rider University), Series C, 5%, 7/01/37 (h) 2,400 1,826,760
(Rowan University), Series C, 5%, 7/01/14 (c)(d) 650 723,522
(Rowan University), Series C, 5.125%,
7/01/14 (c)(d) 715 800,471
- ----------------------------------------------------------------------------------------------------
New Jersey State Educational Facilities Authority,
Revenue Refunding Bonds:
(College of New Jersey), Series D, 5%,
7/01/35 (a) 1,000 916,180
(Georgian Court University), Series D, 5%,
7/01/33 500 394,170
(Ramapo College), Series I, 4.25%, 7/01/36 (e) 295 210,674
(Rowan University), Series B, 5%, 7/01/27 (g) 1,250 1,214,575
(Rowan University), Series B, 4.25%, 7/01/34 (i) 1,950 1,454,680
(Stevens Institute of Technology), Series A, 5%,
7/01/34 1,400 998,018
(William Paterson University), Series C, 5%,
7/01/38 (g) 3,200 2,941,120
- ----------------------------------------------------------------------------------------------------
New Jersey State, GO, 5.75%, 5/01/12 2,500 2,728,950
- ----------------------------------------------------------------------------------------------------
New Jersey State, GO, Refunding:
Series H, 5.25%, 7/01/14 3,000 3,299,610
Series N, 5.50%, 7/15/17 (c)(i) 3,000 3,311,040
- ----------------------------------------------------------------------------------------------------
New Jersey State Higher Education Assistance
Authority, Student Loan Revenue Bonds, AMT,
Series A, 5.30%, 6/01/17 (e) 15 14,557
- ----------------------------------------------------------------------------------------------------
New Jersey State Highway Authority, Garden State
Parkway, Senior General Revenue Refunding Bonds,
6.20%, 1/01/10 (k) 545 560,996
- ----------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
30 SEMI-ANNUAL REPORT NOVEMBER 30, 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 State Housing and Mortgage Finance Agency, M/F Housing Revenue
Refunding Bonds, Series B (a):
6.15%, 11/01/20 $ 195 $ 196,659
6.25%, 11/01/26 940 944,503
- ----------------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency Revenue Bonds, Series AA, 6.50%,
10/01/38 2,250 2,295,608
- ----------------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Bonds, AMT:
Series U, 4.90%, 10/01/27 2,500 1,974,775
Series U, 4.95%, 10/01/32 640 486,323
Series X, 4.85%, 4/01/16 2,000 2,003,780
- ----------------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, S/F Housing Revenue Refunding Bonds,
AMT, Series T:
4.65%, 10/01/32 4,400 3,145,428
4.70%, 10/01/37 2,900 1,994,881
- ----------------------------------------------------------------------------------------------------
New Jersey State Transit Corporation, COP (Federal
Transit Administration Grants), Series A, 6.125%,
9/15/09 (d)(e) 1,500 1,553,385
- ----------------------------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund Authority
Revenue Bonds, Transportation System, Series A,
5.75%, 6/15/20 2,820 2,987,762
- ----------------------------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Bonds:
Series A, 4.75%, 12/15/37 (e) 3,000 2,494,290
Series C, 5.05%, 12/15/35 (b)(e) 1,380 233,358
Series D, 5%, 6/15/20 1,230 1,221,132
- ----------------------------------------------------------------------------------------------------
New Jersey State Transportation Trust Fund Authority,
Transportation System Revenue Refunding Bonds,
Series B (c):
6.50%, 6/15/10 1,560 1,656,034
6.50%, 6/15/10 (k) 940 1,007,483
6%, 12/15/11 (d) 2,500 2,786,075
5.50%, 12/15/21 1,800 1,845,828
- ----------------------------------------------------------------------------------------------------
New Jersey State Turnpike Authority, Turnpike
Revenue Bonds:
Series B, 5.15%, 1/01/35 (b)(e) 1,510 929,783
Series C, 5%, 1/01/30 (a) 2,500 2,380,925
- ----------------------------------------------------------------------------------------------------
New Jersey State Turnpike Authority, Turnpike
Revenue Refunding Bonds:
Series A, 5%, 1/01/27 (c)(i) 1,000 911,040
Series C, 6.50%, 1/01/16 80 88,850
Series C, 6.50%, 1/01/16 (c) 545 629,110
Series C, 6.50%, 1/01/16 (k) 420 479,392
Series C, 6.50%, 1/01/16 (c)(k) 2,955 3,375,193
- ----------------------------------------------------------------------------------------------------
Newark, New Jersey, Health Care Facility Revenue
Refunding Bonds (New Community Urban Renewal),
Series A, 5.20%, 6/01/30 (m)(n) 930 859,766
- ----------------------------------------------------------------------------------------------------
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 (c) 4,000 3,184,400
- ----------------------------------------------------------------------------------------------------
North Hudson Sewer Authority, New Jersey, Sewer
Revenue Refunding Bonds, Series A, 5.41%,
8/01/21 (b)(c) 5,000 2,362,850
- ----------------------------------------------------------------------------------------------------
Old Bridge Township, New Jersey, Board of Education,
GO, 5%, 7/15/11 (c)(d) 400 430,112
- ----------------------------------------------------------------------------------------------------
Perth Amboy, New Jersey, GO (Convertible CABS),
Refunding (a)(o):
4.50%, 7/01/35 1,250 875,575
4.855%, 7/01/36 300 208,821
- ----------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey,
Consolidated Revenue Bonds:
85th Series, 5.20%, 9/01/18 1,000 1,068,580
93rd Series, 6.125%, 6/01/94 1,000 1,036,050
- ----------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey,
Consolidated Revenue Refunding Bonds, AMT,
147th Series, 4.75%, 4/15/37 5,000 3,559,150
- ----------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey, Special
Obligation Revenue Bonds (JFK International Air
Terminal LLC), AMT, Series 6 (c):
6.25%, 12/01/09 7,000 7,091,070
6.25%, 12/01/11 1,750 1,764,403
5.75%, 12/01/22 2,000 1,681,340
- ----------------------------------------------------------------------------------------------------
Salem County, New Jersey, Improvement Authority
Revenue Bonds (Finlaw State Office Building
Project), 5.375%, 8/15/28 (a) 605 608,079
- ----------------------------------------------------------------------------------------------------
South Jersey Port Corporation of New Jersey, Revenue
Refunding Bonds, AMT, 5.20%, 1/01/23 1,500 1,288,170
- ----------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of
New Jersey, Asset-Backed Revenue Bonds,
7%, 6/01/13 (d) 1,445 1,705,071
- ----------------------------------------------------------------------------------------------------
Tobacco Settlement Financing Corporation of
New Jersey, Asset-Backed Revenue Refunding
Bonds, Series 1A, 5%, 6/01/41 3,500 1,902,460
- ----------------------------------------------------------------------------------------------------
Union County, New Jersey, Improvement Authority,
Lease Revenue Bonds (Madison Redevelopment
Project), 5%, 3/01/25 (a) 500 489,615
- ----------------------------------------------------------------------------------------------------
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 2,012,940
- ----------------------------------------------------------------------------------------------------
University of Medicine and Dentistry of New Jersey,
COP, 5%, 4/15/22 (e) 250 242,630
- ----------------------------------------------------------------------------------------------------
University of Medicine and Dentistry of New Jersey,
Revenue Bonds, Series A (e):
5.125%, 12/01/22 250 245,468
5.50%, 12/01/27 1,030 929,936
5%, 12/01/31 1,500 1,228,665
------------
211,259,194
====================================================================================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 31
Schedule of Investments (continued) BlackRock New Jersey Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
Multi-State -- 4.4%
- ----------------------------------------------------------------------------------------------------
Charter Mac Equity Issuer Trust (p)(q):
6.625%, 6/30/49 $ 1,000 $ 1,019,880
7.60%, 11/30/50 4,000 4,267,360
- ----------------------------------------------------------------------------------------------------
MuniMae TE Bond Subsidiary LLC (p)(q):
6.875%, 6/30/49 4,000 4,015,160
7.75%, 6/30/50 2,000 2,021,340
------------
11,323,740
====================================================================================================
====================================================================================================
Guam -- 0.6%
- ----------------------------------------------------------------------------------------------------
Commonwealth of the Northern Mariana Islands,
Guam, GO, Series A:
6.75%, 10/01/13 (d) 600 695,844
6.75%, 10/01/33 150 120,168
====================================================================================================
Guam Government Waterworks Authority, Water and
Wastewater System, Revenue Refunding Bonds,
5.875%, 7/01/35 1,000 719,360
------------
1,535,372
====================================================================================================
====================================================================================================
Puerto Rico -- 10.3%
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Aqueduct and Sewer
Authority, Senior Lien Revenue Bonds, Series A,
6%, 7/01/38 2,000 1,771,740
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Bonds, Series B, 6%, 7/01/10 (d) 3,000 3,206,250
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Refunding Bonds, Series D, 5.375%, 7/01/12 (d) 1,000 1,087,740
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Obligation Refunding Bonds,
Series A:
5.375%, 10/01/16 1,600 1,673,904
5.50%, 10/01/17 2,000 2,093,060
5.50%, 10/01/18 2,000 2,047,840
5.50%, 10/01/19 1,650 1,680,657
5.50%, 10/01/20 1,000 1,018,580
5.375%, 10/01/24 1,000 1,006,590
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, Public Improvement, GO:
5.50%, 7/01/19 (a) 5,000 5,102,350
Series A, 5.25%, 7/01/16 (d) 310 352,300
- ----------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series HH, 5.25%, 7/01/10 (a)(d) 1,170 1,245,746
- ----------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, Power Revenue
Refunding Bonds, Series SS, 5%, 7/01/25 (c) 1,500 1,213,245
- ----------------------------------------------------------------------------------------------------
Puerto Rico Housing Financing Authority, Capital
Funding Program, Subordinate Revenue Refunding
Bonds, 5.125%, 12/01/27 1,600 1,478,320
- ----------------------------------------------------------------------------------------------------
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 1,345 552,593
- ----------------------------------------------------------------------------------------------------
Puerto Rico Municipal Finance Agency, GO, Series A,
5%, 8/01/21 (a) 1,250 1,173,725
------------
26,704,640
====================================================================================================
====================================================================================================
U.S. Virgin Islands -- 0.6%
- ----------------------------------------------------------------------------------------------------
Virgin Islands Government Refinery Facilities,
Revenue Refunding Bonds (Hovensa Coker Project),
AMT, 6.50%, 7/01/21 1,400 1,073,072
- ----------------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
5.875%, 7/01/22 750 541,170
------------
1,614,242
====================================================================================================
Total Municipal Bonds -- 96.9% 252,437,188
====================================================================================================
====================================================================================================
Municipal Bonds Transferred to
Tender Option Bond Trusts (r)
====================================================================================================
New Jersey -- 0.7%
- ----------------------------------------------------------------------------------------------------
New Jersey State Housing and Mortgage Finance
Agency, Capital Fund Program Revenue Bonds,
Series A, 4.70%, 11/01/25 (a) 2,175 1,910,673
- ----------------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts -- 0.7% 1,910,673
====================================================================================================
Total Long-Term Investments
(Cost -- $280,865,123) -- 97.6% 254,347,861
====================================================================================================
====================================================================================================
Short-Term Securities Shares
====================================================================================================
CMA New Jersey Municipal Money Fund,
1.06% (s)(t) 2,406,301 2,406,301
- ----------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $2,406,301) -- 0.9% 2,406,301
====================================================================================================
Total Investments (Cost -- $283,271,424*) -- 98.5% 256,754,162
Other Assets Less Liabilities -- 1.9% 4,998,747
Liability for Trust Certificates, Including
Interest Expense and Fees Payable -- (0.4)% (1,077,677)
------------
Net Assets -- 100.0% $260,675,232
============
See Notes to Financial Statements.
32 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Schedule of Investments (concluded) BlackRock New Jersey Municipal Bond Fund
* The cost and unrealized appreciation (depreciation) of investments as of
November 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 281,906,247
=============
Gross unrealized appreciation .......................... $ 4,876,339
Gross unrealized depreciation .......................... (31,103,424)
-------------
Net unrealized depreciation ............................ $ (26,227,085)
=============
(a) FSA Insured.
(b) Represents a zero-coupon bond. The rate shown reflects the effective yield
at the time of purchase.
(c) MBIA Insured.
(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) Issuer filed for bankruptcy and/or is in default of interest payments.
(k) Security is collateralized by Municipal or U.S. Treasury Obligations.
(l) ACA Insured.
(m) FHA Insured.
(n) GNMA Collateralized.
(o) Represents a step bond. The 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.
(q) Security represents a beneficial interest in a trust. The collateral
deposited into the trust is federally tax-exempt revenue bonds issued by
various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity.
(r) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as a 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.
(s) Represents the current yield as of report date.
(t) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net
Affiliate Activity Income
--------------------------------------------------------------------------
CMA New Jersey Municipal Money Fund (12,853,890) $42,241
--------------------------------------------------------------------------
o Effective June 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are
used in determining the fair value of investments, which are as follows:
o Level 1 -- price quotations in active markets/exchanges for
identical securities
o Level 2 -- other observable inputs (including, but not limited to:
quoted prices for similar assets or liabilities in markets that are
not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves,
volatilities, prepayment speeds, loss severities, credit risks, and
default rates) or other market-corroborated inputs)
o Level 3 -- unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs are
not available (including the Fund's own assumption used in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
For information about the Fund's policy regarding valuation of investments
and other significant accounting policies, please refer to Note 1 of the
Notes to Financial Statements.
The following table summarizes the inputs used as of November 30, 2008 in
determining the fair valuation of the Fund's investments:
--------------------------------------------------------------------------
Investments in
Valuation Inputs Securities
--------------------------------------------------------------------------
Level 1 ................................................... $ 2,406,301
Level 2 ................................................... 254,347,861
Level 3 ................................................... --
--------------------------------------------------------------------------
Total $256,754,162
============
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 33
Schedule of Investments November 30, 2008 (Unaudited)
BlackRock Pennsylvania Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
Pennsylvania -- 74.8%
- ----------------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, GO, Refunding,
Series C-57, 5%, 11/01/21 (a)(b) $ 5,875 $ 5,898,676
- ----------------------------------------------------------------------------------------------------
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 7,043,470
- ----------------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, Hospital
Development Authority, Revenue Refunding Bonds
(West Penn Allegheny Health System), Series A,
5.375%, 11/15/40 3,120 1,729,915
- ----------------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, IDA, Commercial
Development Revenue Refunding Bonds (MPB
Associates Project), 7.70%, 12/01/13 (c) 3,525 3,887,264
- ----------------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, IDA, Environmental
Improvement Revenue Refunding Bonds:
5.50%, 11/01/16 1,000 864,790
(USX Corporation), 6.10%, 7/15/20 1,500 1,270,530
- ----------------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, IDA, Lease Revenue
Refunding Bonds (Residential Resources Inc.
Project), 5.125%, 9/01/31 905 640,034
- ----------------------------------------------------------------------------------------------------
Allegheny County, Pennsylvania, Residential Finance
Authority, S/F Mortgage Revenue Bonds, AMT,
Series TT, 5%, 5/01/35 (d)(e) 245 185,399
- ----------------------------------------------------------------------------------------------------
Bradford County, Pennsylvania, IDA, Solid Waste
Disposal Revenue Refunding Bonds (International
Paper Company Project), AMT, Series B,
5.20%, 12/01/19 1,000 690,050
- ----------------------------------------------------------------------------------------------------
Bucks County, Pennsylvania, IDA, Retirement
Community Revenue Bonds (Ann's Choice Inc.),
Series A, 5.90%, 1/01/27 770 546,939
- ----------------------------------------------------------------------------------------------------
Bucks County, Pennsylvania, IDA, Revenue
Refunding Bonds (Pennswood Village Project),
Series A, 6%, 10/01/12 (f) 1,000 1,128,240
- ----------------------------------------------------------------------------------------------------
Central Bucks School District, Pennsylvania, GO,
Refunding, 5%, 5/15/25 6,000 5,900,760
- ----------------------------------------------------------------------------------------------------
Chester County, Pennsylvania, IDA, Water Facilities
Revenue Bonds (Aqua Pennsylvania, Inc. Project),
AMT, Series A, 5%, 2/01/40 (a)(b) 3,800 2,538,704
- ----------------------------------------------------------------------------------------------------
Coatesville, Pennsylvania, School District, GO,
5%, 8/01/25 (c) 10,085 9,817,344
- ----------------------------------------------------------------------------------------------------
Dauphin County, Pennsylvania, General Authority,
Hospital Revenue Refunding Bonds (Hapsco
Group -- Western Pennsylvania Hospital Project),
Series B, 6.25%, 7/01/16 (b)(g) 1,000 1,114,990
- ----------------------------------------------------------------------------------------------------
Delaware County, Pennsylvania, Authority Revenue
Bonds (Haverford College), 5.75%, 11/15/25 6,795 7,018,623
- ----------------------------------------------------------------------------------------------------
Delaware County, Pennsylvania, Hospital Authority
Revenue Refunding Bonds (Crozer-Chester Medical
Center), 5%, 12/15/31 6,000 3,777,240
- ----------------------------------------------------------------------------------------------------
Delaware County, Pennsylvania, IDA, Water Facilities
Revenue Bonds (a)(b):
(Aqua Pennsylvania, Inc. Project), AMT, Series A,
5%, 11/01/38 2,375 1,608,635
(Aqua Pennsylvania, Inc. Project), AMT, Series C,
5%, 2/01/35 5,670 3,927,666
(Philadelphia Suburban Water), 6%, 6/01/29 3,400 2,885,852
- ----------------------------------------------------------------------------------------------------
Delaware River Port Authority of Pennsylvania and
New Jersey Revenue Bonds (c):
5.75%, 1/01/16 8,000 8,244,800
5.75%, 1/01/22 40,000 40,576,000
(Port District Project), Series B, 5.70%,
1/01/22 8,930 9,019,836
- ----------------------------------------------------------------------------------------------------
Delaware Valley Regional Finance Authority,
Pennsylvania, Local Government Revenue Bonds,
5.75%, 7/01/32 21,000 20,238,120
- ----------------------------------------------------------------------------------------------------
Delaware Valley Regional Finance Authority,
Pennsylvania, Local Government Revenue Refunding
Bonds, Series A, 5.50%, 6/01/37 10,000 9,858,300
- ----------------------------------------------------------------------------------------------------
East Stroudsburg, Pennsylvania, Area School District,
GO, Series A, 7.75%, 9/01/27 (a)(b) 3,700 4,205,864
- ----------------------------------------------------------------------------------------------------
Fulton County, Pennsylvania, IDA, Hospital Revenue
Bonds (Fulton County Medical Center Project),
5.90%, 7/01/40 500 337,285
- ----------------------------------------------------------------------------------------------------
Lancaster County, Pennsylvania, Hospital Authority
Revenue Bonds:
(Brethren Village Project), Series A,
6.50%, 7/01/40 1,750 1,296,645
(Masonic Homes Project), 5%, 11/01/26 1,550 1,205,683
(Masonic Homes Project), 5%, 11/01/31 3,000 2,192,490
(Masonic Homes Project), 5%, 11/01/36 3,695 2,604,347
- ----------------------------------------------------------------------------------------------------
Lancaster, Pennsylvania, Higher Education Authority,
College Revenue Bonds (Franklin & Marshall College
Project), 5%, 4/15/37 2,930 2,543,416
- ----------------------------------------------------------------------------------------------------
Lebanon County, Pennsylvania, Health Facilities
Authority, Health Center Revenue Bonds (Pleasant
View Retirement Project), Series A, 5.30%, 12/15/26 1,000 681,380
- ----------------------------------------------------------------------------------------------------
Lehigh County, Pennsylvania, General Purpose
Authority, Revenue Refunding Bonds (Kids Peace
Corporation), 5.70%, 11/01/09 (h) 670 664,633
- ----------------------------------------------------------------------------------------------------
Mifflin County, Pennsylvania, Hospital Authority,
Revenue Refunding Bonds (Lewiston Hospital) (f)(i):
6.20%, 1/01/11 1,000 1,091,290
6.40%, 1/01/11 2,550 2,793,168
- ----------------------------------------------------------------------------------------------------
Mifflin County, Pennsylvania, School District, GO,
7.50%, 9/01/22 (j) 2,300 2,616,066
- ----------------------------------------------------------------------------------------------------
Monroe County, Pennsylvania, Hospital Authority
Revenue Refunding Bonds (Pocono Medical Center),
5.125%, 1/01/37 4,140 2,871,297
- ----------------------------------------------------------------------------------------------------
Montgomery County, Pennsylvania, Higher Education
and Health Authority, Revenue Refunding Bonds
(Holy Redeemer Health System Project), Series A,
5.25%, 10/01/27 (k) 9,000 7,389,000
- ----------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
34 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Schedule of Investments (continued) BlackRock Pennsylvania Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
Pennsylvania (continued)
- ----------------------------------------------------------------------------------------------------
Montgomery County, Pennsylvania, IDA, Revenue
Refunding Bonds (Foulkeways at Gwynedd Project),
Series A, 5%, 12/01/24 $ 1,000 $ 762,300
- ----------------------------------------------------------------------------------------------------
Montgomery County, Pennsylvania, IDA, Water
Facilities Revenue Bonds (Aqua Pennsylvania, Inc.
Project), Series A, 5.25%, 7/01/42 3,900 2,722,239
- ----------------------------------------------------------------------------------------------------
Northumberland County, Pennsylvania, IDA,
Water Facilities Revenue Refunding Bonds
(Aqua Pennsylvania Inc. Project), AMT, 5.05%,
10/01/39 (a)(b) 2,500 1,691,400
- ----------------------------------------------------------------------------------------------------
Pennsylvania Convention Center Authority Revenue
Bonds, Series A, 6.70%, 9/01/16 (a)(g) 1,000 1,153,110
- ----------------------------------------------------------------------------------------------------
Pennsylvania Economic Development Financing
Authority, Solid Waste Disposal Revenue Bonds
(Waste Management Inc. Project), AMT, Series A,
5.10%, 10/01/27 300 198,522
- ----------------------------------------------------------------------------------------------------
Pennsylvania HFA, S/F Mortgage Revenue
Refunding Bonds, AMT:
Series 63A, 5.50%, 4/01/30 (l) 13,155 2,772,811
Series 66A, 5.65%, 4/01/29 1,045 1,044,937
Series 73A, 5.45%, 10/01/32 2,000 1,913,980
Series 96A, 4.70%, 10/01/37 6,500 4,453,865
Series 97A, 4.65%, 10/01/31 6,700 4,798,138
Series 99A, 5.25%, 10/01/32 4,800 3,865,200
Series 103C, 5.40%, 10/01/33 4,700 4,253,688
- ----------------------------------------------------------------------------------------------------
Pennsylvania State, GO:
First Series, 5%, 10/01/26 5,000 4,935,800
Second Series A, 5%, 8/01/24 6,000 6,003,780
- ----------------------------------------------------------------------------------------------------
Pennsylvania State Higher Educational Facilities
Authority Revenue Bonds:
5%, 6/15/26 (b) 3,300 3,090,978
(Lafayette College Project), 6%, 5/01/30 155 158,619
- ----------------------------------------------------------------------------------------------------
Pennsylvania State Higher Educational Facilities
Authority, Revenue Refunding Bonds (University of
the Sciences in Philadelphia), 5%, 11/01/32 (m) 5,000 4,545,800
- ----------------------------------------------------------------------------------------------------
Pennsylvania State, IDA, EDR, Refunding (k):
5.50%, 7/01/12 (f) 305 338,025
5.50%, 7/01/16 7,695 8,184,479
- ----------------------------------------------------------------------------------------------------
Pennsylvania State Public School Building Authority,
College Revenue Bonds (Montgomery County
Community College), 5%, 5/01/27 (c) 1,790 1,715,071
- ----------------------------------------------------------------------------------------------------
Pennsylvania State Public School Building Authority,
Revenue Refunding Bonds (The School District of
Philadelphia Project), Series B, 5%, 6/01/24 (c) 9,000 8,339,490
- ----------------------------------------------------------------------------------------------------
Pennsylvania State Turnpike Commission, Oil
Franchise Tax Revenue Bonds, Series C, 5%,
12/01/32 (b) 11,000 10,053,120
- ----------------------------------------------------------------------------------------------------
Pennsylvania State Turnpike Commission, Turnpike
Revenue Bonds, Series A (k):
5%, 12/01/26 3,310 3,026,863
5.50%, 12/01/31 1,600 1,602,416
5%, 12/01/34 1,995 1,717,575
- ----------------------------------------------------------------------------------------------------
Pennsylvania State University, Revenue Refunding
Bonds, Series A:
5%, 8/15/28 5,045 4,819,287
5%, 8/15/29 2,000 1,886,540
- ----------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Airport Revenue Bonds,
AMT, Series A (c):
5%, 6/15/37 15,000 10,814,400
(Philadelphia Airport System), 5%, 6/15/32 10,000 7,440,300
- ----------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Authority for IDR
(American College of Physicians):
5.50%, 6/15/20 6,370 6,362,229
5.50%, 6/15/25 8,315 8,043,016
- ----------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Authority for Industrial
Development, Industrial and Commercial Revenue
Bonds (Girard Estate Coal Mining Project) (g):
5.375%, 11/15/12 3,945 3,954,705
5.50%, 11/15/16 1,650 1,654,158
- ----------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Authority for Industrial
Development, Senior Living Revenue Bonds:
(Rieder House Project), Series A, 6.10%,
7/01/33 500 383,665
(Saligman House Project), Series C, 6.10%,
7/01/33 500 383,665
- ----------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Gas Works Revenue
Bonds, 12th Series B, 7%, 5/15/20 (b)(g) 1,745 2,073,915
- ----------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Hospitals and Higher
Education Facilities Authority, Hospital Revenue
Refunding Bonds (Presbyterian Medical Center),
6.65%, 12/01/19 (g) 3,000 3,532,530
- ----------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Parking Authority, Airport
Parking Revenue Bonds, 5.625%, 9/01/17 (c) 4,495 4,285,982
- ----------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, Qualified Redevelopment
Authority Revenue Bonds, AMT, Series B, 5%,
4/15/27 (a) 415 311,030
- ----------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, School District, GO,
Refunding, Series A, 5%, 8/01/15 (k) 9,105 9,595,122
- ----------------------------------------------------------------------------------------------------
Philadelphia, Pennsylvania, School District, GO,
Series E, 6%, 9/01/38 9,300 9,010,863
- ----------------------------------------------------------------------------------------------------
Reading, Pennsylvania, School District, GO, 5%,
1/15/36 (c) 5,290 4,761,212
- ----------------------------------------------------------------------------------------------------
Sayre, Pennsylvania, Health Care Facilities Authority,
Revenue Refunding Bonds (Guthrie Healthcare
System), Series A, 5.875%, 12/01/31 320 272,358
- ----------------------------------------------------------------------------------------------------
Souderton, Pennsylvania, Area School District, GO,
5%, 11/15/22 (a)(b) 4,390 4,401,941
- ----------------------------------------------------------------------------------------------------
South Fork Municipal Authority, Pennsylvania,
Hospital Revenue Refunding Bonds (Good
Samaritan Medical Center), Series B, 5.375%,
7/01/16 (b) 3,645 3,653,384
- ----------------------------------------------------------------------------------------------------
Southcentral General Authority, Pennsylvania,
Revenue Refunding Bonds (Wellspan
Health Obligated):
5.625%, 5/15/26 (g) 315 319,375
Series A, 6%, 6/01/29 3,750 3,515,025
- ----------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 35
Schedule of Investments (continued) BlackRock Pennsylvania Municipal Bond Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
Pennsylvania (concluded)
- ----------------------------------------------------------------------------------------------------
Susquehanna Area Regional Airport Authority,
Pennsylvania, Airport System Revenue Bonds, AMT,
Series A, 6.50%, 1/01/38 $ 2,400 $ 1,815,744
- ----------------------------------------------------------------------------------------------------
Washington County, Pennsylvania, Capital Funding
Authority Revenue Bonds (Capital Projects and
Equipment Program), 6.15%, 12/01/29 (k) 915 768,463
- ----------------------------------------------------------------------------------------------------
Washington County, Pennsylvania, IDA, PCR (West
Penn Power), Refunding, Series G, 6.05%,
4/01/14 (k) 2,500 2,507,900
- ----------------------------------------------------------------------------------------------------
West Chester, Pennsylvania, Area School District,
GO, Series A (c):
5%, 5/15/18 7,715 8,037,873
5%, 5/15/22 7,550 7,585,108
- ----------------------------------------------------------------------------------------------------
Wilkes-Barre, Pennsylvania, Financing Authority,
Revenue Refunding Bonds (Wilkes University
Project), 5%, 3/01/37 1,800 1,191,114
------------
379,627,851
====================================================================================================
====================================================================================================
Multi-State -- 9.9%
- ----------------------------------------------------------------------------------------------------
Charter Mac Equity Issuer Trust (n)(o):
6.625%, 6/30/49 25,000 25,497,000
7.60%, 11/30/50 10,000 10,668,400
MuniMae TE Bond Subsidiary LLC (n)(o):
6.875%, 6/30/49 4,000 4,015,160
7.75%, 6/30/50 10,000 10,106,700
------------
50,287,260
====================================================================================================
====================================================================================================
Guam -- 0.5%
- ----------------------------------------------------------------------------------------------------
Commonwealth of the Northern Mariana Islands,
Guam, GO, Series A, 6.75%, 10/01/13 (f) 500 579,870
- ----------------------------------------------------------------------------------------------------
Guam Economic Development and Commerce
Authority, Tobacco Settlement Asset-Backed Revenue
Refunding Bonds, 5.625%, 6/01/47 1,750 1,232,822
- ----------------------------------------------------------------------------------------------------
Guam Government Waterworks Authority, Water and
Wastewater System, Revenue Refunding Bonds,
6%, 7/01/25 1,000 784,150
------------
2,596,842
====================================================================================================
====================================================================================================
Puerto Rico -- 7.1%
- ----------------------------------------------------------------------------------------------------
Children's Trust Fund Project of Puerto Rico,
Tobacco Settlement Revenue Refunding Bonds,
5.375%, 5/15/33 1,165 839,755
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Aqueduct and Sewer
Authority, Senior Lien Revenue Bonds, Series A,
6%, 7/01/38 3,600 3,189,132
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, GO, Refunding,
Sub-Series C-7, 6%, 7/01/27 (b) 3,000 2,719,320
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Highway and
Transportation Authority, Transportation Revenue
Bonds, Series G, 5%, 7/01/33 685 504,907
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Obligation Refunding Bonds,
Series A:
5.375%, 10/01/16 1,600 1,673,904
5.50%, 10/01/17 2,000 2,093,060
5.50%, 10/01/18 2,000 2,047,840
5.50%, 10/01/19 2,750 2,801,095
5.50%, 10/01/20 1,000 1,018,580
5.375%, 10/01/24 1,000 1,006,590
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax Revenue Bonds, Series B,
5%, 7/01/41 7,700 5,358,738
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth, Public Improvement,
GO, Refunding, Series A, 5.50%, 7/01/20 (b) 7,500 6,872,475
- ----------------------------------------------------------------------------------------------------
Puerto Rico Electric Power Authority, Power Revenue
Bonds, Series WW, 5.50%, 7/01/38 4,450 3,497,166
- ----------------------------------------------------------------------------------------------------
Puerto Rico Ports Authority, Special Facilities
Revenue Bonds (American Airlines), AMT, Series A,
6.25%, 6/01/26 750 300,412
- ----------------------------------------------------------------------------------------------------
Puerto Rico Public Buildings Authority, Government
Facilities Revenue Refunding Bonds, Series D,
5.375%, 7/01/33 2,940 2,291,936
------------
36,214,910
====================================================================================================
====================================================================================================
U.S. Virgin Islands -- 0.5%
- ----------------------------------------------------------------------------------------------------
Virgin Islands Government Refinery Facilities,
Revenue Refunding Bonds (Hovensa Coker Project),
AMT, 6.50%, 7/01/21 1,000 766,480
- ----------------------------------------------------------------------------------------------------
Virgin Islands Public Finance Authority, Refinery
Facilities Revenue Bonds (Hovensa Refinery), AMT,
6.125%, 7/01/22 500 370,170
- ----------------------------------------------------------------------------------------------------
Virgin Islands Water and Power Authority, Electric
System Revenue Bonds, Series A, 5%, 7/01/31 1,000 787,880
------------
1,924,530
====================================================================================================
Total Long-Term Investments
(Cost -- $517,323,869) -- 92.8% 470,651,393
====================================================================================================
====================================================================================================
Short-Term Securities Shares
====================================================================================================
CMA Pennsylvania Municipal Money Fund,
0.58% (p)(q) 30,113,585 30,113,585
- ----------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $30,113,585) -- 5.9% 30,113,585
====================================================================================================
Total Investments (Cost -- $547,437,454*) -- 98.7% 500,764,978
Other Assets Less Liabilities -- 1.3% 6,582,920
------------
Net Assets -- 100.0% $507,347,898
============
See Notes to Financial Statements.
36 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Schedule of Investments (concluded) BlackRock Pennsylvania Municipal Bond Fund
* The cost and unrealized appreciation (depreciation) of investments as of
November 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 547,648,689
=============
Gross unrealized appreciation .......................... $ 6,447,341
Gross unrealized depreciation .......................... (53,331,052)
-------------
Net unrealized depreciation ............................ $ (46,883,711)
=============
(a) FGIC Insured.
(b) MBIA Insured.
(c) FSA Insured.
(d) FNMA Collateralized.
(e) GNMA Collateralized.
(f) 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.
(g) Security is collateralized by Municipal or U.S. Treasury Obligations.
(h) ACA Insured.
(i) Radian Insured.
(j) XL Capital Insured.
(k) AMBAC Insured.
(l) Represents a zero-coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(m) Assured Guaranty Insured.
(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.
(o) Security represents a beneficial interest in a trust. The collateral
deposited into the trust is federally tax-exempt revenue bonds issued by
various state or local governments, or their respective agencies or
authorities. The security is subject to remarketing prior to its stated
maturity, and is subject to mandatory redemption at maturity.
(p) Represents the current yield as of report date.
(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:
--------------------------------------------------------------------------
Net
Affiliate Activity Income
--------------------------------------------------------------------------
CMA Pennsylvania Municipal Money Fund 18,843,937 $249,947
--------------------------------------------------------------------------
o Effective June 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are
used in determining the fair value of investments, which are as follows:
o Level 1 -- price quotations in active markets/exchanges for
identical securities
o Level 2 -- other observable inputs (including, but not limited to:
quoted prices for similar assets or liabilities in markets that are
not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves,
volatilities, prepayment speeds, loss severities, credit risks, and
default rates) or other market-corroborated inputs)
o Level 3 -- unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs are
not available (including the Fund's own assumption used in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
For information about the Fund's policy regarding valuation of investments
and other significant accounting policies, please refer to Note 1 of the
Notes to Financial Statements.
The following table summarizes the inputs used as of November 30, 2008 in
determining the fair valuation of the Fund's investments:
--------------------------------------------------------------------------
Investments in
Valuation Inputs Securities
--------------------------------------------------------------------------
Level 1 ................................................... $ 30,113,585
Level 2 ................................................... 470,651,393
Level 3 ................................................... --
--------------------------------------------------------------------------
Total $500,764,978
============
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 37
Schedule of Investments November 30, 2008 (Unaudited)
BlackRock Intermediate Municipal Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
Alabama -- 0.3%
- ----------------------------------------------------------------------------------------------------
Tuscaloosa, Alabama, Special Care Facilities
Financing Authority, Residential Care Facility
Revenue Bonds (Capstone Village, Inc. Project),
Series A, 5.125%, 8/01/15 (a)(b) $ 500 $ 383,645
====================================================================================================
====================================================================================================
Arizona -- 4.3%
- ----------------------------------------------------------------------------------------------------
Arizona State Transportation Board, Highway
Revenue Bonds, Series B, 5%, 7/01/17 2,500 2,663,275
- ----------------------------------------------------------------------------------------------------
Maricopa County, Arizona, School District
Number 69 (Paradise Valley), GO (School
Improvement Project), Series C, 4%, 7/01/14 (c) 1,185 1,222,114
- ----------------------------------------------------------------------------------------------------
Phoenix, Arizona, Civic Improvement Corporation,
Wastewater System Revenue Refunding Bonds,
Senior Lien, 5.50%, 7/01/18 1,000 1,095,110
- ----------------------------------------------------------------------------------------------------
Salt Verde Financial Corporation, Arizona, Senior
Gas Revenue Bonds, 5.25%, 12/01/19 2,000 1,587,400
------------
6,567,899
====================================================================================================
====================================================================================================
California -- 14.3%
- ----------------------------------------------------------------------------------------------------
Agua Caliente Band of Cahuilla Indians, California,
Casino Revenue Bonds, 5.60%, 7/01/13 875 794,010
- ----------------------------------------------------------------------------------------------------
Antelope Valley, California, Health Care District
Revenue Bonds, Series A, 5.25%, 9/01/17 2,000 1,763,880
- ----------------------------------------------------------------------------------------------------
California County Tobacco Securitization Agency,
Tobacco Revenue Bonds (Los Angeles County
Securitization Corporation), 5.25%, 6/01/21 (d) 5,225 3,300,528
- ----------------------------------------------------------------------------------------------------
California State Department of Water Resources,
Power Supply Revenue Bonds, Series A, 5.50%,
5/01/14 (e) 10,000 10,562,700
- ----------------------------------------------------------------------------------------------------
California State, GO, Refunding (Veterans Bonds),
Series BG, 5.05%, 12/01/11 1,000 1,011,840
- ----------------------------------------------------------------------------------------------------
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Refunding
Bonds, Senior Series A-1, 5%, 6/01/16 3,000 2,630,190
- ----------------------------------------------------------------------------------------------------
Southern California Public Power Authority, Natural
Gas Project Number 1 Revenue Bonds, Series A,
5.25%, 11/01/19 2,445 1,906,269
------------
21,969,417
====================================================================================================
====================================================================================================
Colorado -- 2.6%
- ----------------------------------------------------------------------------------------------------
Denver, Colorado, City and County Airport Revenue
Bonds, AMT, Series D, 7.75%, 11/15/13 (e) 3,820 4,080,333
- ----------------------------------------------------------------------------------------------------
Broward County, Florida, School Board, COP, Series C,
5.25%, 7/01/17 (f) 3,410 3,526,520
- ----------------------------------------------------------------------------------------------------
Miami-Dade County, Florida, IDA, Solid Waste
Disposal Revenue Bonds (Waster Management, Inc.
Project), AMT, Series 1, 3.50%, 12/01/18 (g) 1,300 1,299,870
- ----------------------------------------------------------------------------------------------------
Middle Village Community Development District,
Florida, Special Assessment Bonds, Series C,
5.125%, 5/01/09 155 152,771
- ----------------------------------------------------------------------------------------------------
Orlando, Florida, Greater Orlando Aviation Authority,
Airport Facilities Revenue Bonds, AMT, Series A,
5.25%, 10/01/18 (h)(i) 5,440 4,893,987
- ----------------------------------------------------------------------------------------------------
Panther Trace Community Development District II,
Florida, Special Assessment Revenue Bonds:
5.125%, 11/01/13 990 836,471
Series A, 5%, 11/01/10 515 482,277
- ----------------------------------------------------------------------------------------------------
Sterling Hill Community Development District,
Florida, Capital Improvement Revenue Refunding
Bonds, Series B, 5.50%, 11/01/10 175 167,323
- ----------------------------------------------------------------------------------------------------
Tolomato Community Development District, Florida,
Special Assessment Bonds, 6.375%, 5/01/17 3,130 2,693,052
------------
14,052,271
====================================================================================================
====================================================================================================
Georgia -- 2.2%
- ----------------------------------------------------------------------------------------------------
Fulton County, Georgia, Residential Care Facilities,
Revenue Refunding Bonds (Canterbury Court
Project), Series A, 5%, 2/15/14 1,050 939,141
- ----------------------------------------------------------------------------------------------------
Georgia State, GO, Series G, 5%, 12/01/17 2,250 2,448,608
------------
3,387,749
====================================================================================================
====================================================================================================
Idaho -- 3.4%
- ----------------------------------------------------------------------------------------------------
Ada and Canyon Counties, Idaho, Joint School
District Number 2 (Meridian), GO, 5%, 8/15/17 5,000 5,264,450
====================================================================================================
====================================================================================================
Illinois -- 8.3%
- ----------------------------------------------------------------------------------------------------
Chicago, Illinois, O'Hare International Airport,
General Airport Revenue Refunding Bonds,
Third Lien, Series A-2 (f):
5.25%, 1/01/13 5,000 4,890,150
5.25%, 1/01/14 5,000 4,830,900
- ----------------------------------------------------------------------------------------------------
Chicago, Illinois, Tax Allocation Bonds (Kingsbury
Redevelopment Project), Series A, 6.57%, 2/15/13 1,000 950,060
- ----------------------------------------------------------------------------------------------------
Granite City, Madison County, Illinois, Disposal
Revenue Bonds (Waster Management, Inc. Project),
AMT, 5%, 5/03/10 (g) 1,500 1,442,370
- ----------------------------------------------------------------------------------------------------
Illinois State Finance Authority Revenue Bonds
(Primary Health Care Centers Program),
5.90%, 7/01/14 715 633,368
------------
12,746,848
====================================================================================================
See Notes to Financial Statements.
38 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Schedule of Investments (continued) BlackRock Intermediate Municipal Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
Indiana -- 1.1%
- ----------------------------------------------------------------------------------------------------
Indiana Bond Bank, Special Program Gas Revenue
Bonds, Series A, 5%, 10/15/17 $ 2,000 $ 1,755,120
====================================================================================================
====================================================================================================
Kentucky -- 1.3%
- ----------------------------------------------------------------------------------------------------
Kenton County, Kentucky, Airport Board, Airport
Revenue Refunding Bonds (Cincinnati/Northern
Kentucky International Airport), AMT, Series A,
5.625%, 3/01/15 (i) 2,000 2,007,240
====================================================================================================
====================================================================================================
Louisiana -- 0.6%
- ----------------------------------------------------------------------------------------------------
Morehouse Parish, Louisiana, PCR, Refunding
(International Paper Company Project), Series A,
5.25%, 11/15/13 1,000 890,600
====================================================================================================
====================================================================================================
Maryland -- 3.0%
- ----------------------------------------------------------------------------------------------------
Anne Arundel County, Maryland, Consolidated
General Improvements, GO, Refunding, 5%, 3/01/15 1,455 1,593,763
- ----------------------------------------------------------------------------------------------------
Maryland State, GO (State and Local Facilities
Loan), First Series, 5%, 3/01/15 2,745 3,011,649
------------
4,605,412
====================================================================================================
====================================================================================================
Massachusetts -- 4.6%
- ----------------------------------------------------------------------------------------------------
Massachusetts State Industrial Finance Agency,
Resource Recovery Revenue Refunding Bonds
(Ogden Haverhill Project), AMT, Series A, 5.30%,
12/01/09 3,300 3,256,902
- ----------------------------------------------------------------------------------------------------
Massachusetts State Port Authority, Special Facilities
Revenue Bonds (Delta Air Lines Inc. Project), AMT,
Series A (e):
5.50%, 1/01/14 2,500 1,499,300
5.50%, 1/01/15 4,000 2,395,680
------------
7,151,882
====================================================================================================
====================================================================================================
Michigan -- 0.7%
- ----------------------------------------------------------------------------------------------------
Michigan State Hospital Finance Authority, Revenue
Refunding Bonds (McLaren Health Care
Corporation), 5.25%, 5/15/16 1,000 1,001,630
====================================================================================================
====================================================================================================
Mississippi -- 0.5%
- ----------------------------------------------------------------------------------------------------
Mississippi Business Finance Corporation,
Mississippi, PCR, Refunding (System Energy
Resources Inc. Project), 5.90%, 5/01/22 1,000 791,720
====================================================================================================
====================================================================================================
Nebraska -- 1.5%
- ----------------------------------------------------------------------------------------------------
Omaha Convention Hotel Corporation, Nebraska,
First Tier Revenue Refunding Bonds, 5%, 2/01/19 (e) 2,435 2,376,073
====================================================================================================
====================================================================================================
New Jersey -- 1.7%
- ----------------------------------------------------------------------------------------------------
New Jersey EDA, School Facilities Construction,
Revenue Refunding Bonds, Series W, 5%, 9/01/15 2,500 2,646,625
====================================================================================================
====================================================================================================
New York -- 5.1%
- ----------------------------------------------------------------------------------------------------
New York State Dormitory Authority, Non-State
Supported Debt, Revenue Refunding Bonds
(New York University Hospital Center), Series A,
5%, 7/01/16 1,140 945,242
- ----------------------------------------------------------------------------------------------------
New York State, GO, Series A, 4%, 3/01/16 2,000 2,041,500
- ----------------------------------------------------------------------------------------------------
Port Authority of New York and New Jersey,
Consolidated Revenue Bonds, AMT:
131st Series, 5%, 12/15/14 1,000 990,830
Thirty-Seventh Series, 5.50%, 7/15/18 (f) 3,000 2,910,210
- ----------------------------------------------------------------------------------------------------
Westchester County, New York, IDA, Continuing Care
Retirement, Mortgage Revenue Bonds (Kendal on
the Hudson Project), Series A, 5.625%, 1/01/13 1,000 918,970
------------
7,806,752
====================================================================================================
====================================================================================================
Ohio -- 2.9%
- ----------------------------------------------------------------------------------------------------
Ohio State, GO, Series L, 5%, 10/01/14 1,835 2,005,049
- ----------------------------------------------------------------------------------------------------
Ohio State, Highway Capital Improvements, GO,
Series L, 5%, 5/01/16 2,340 2,540,140
------------
4,545,189
====================================================================================================
====================================================================================================
Oregon -- 3.6%
- ----------------------------------------------------------------------------------------------------
Oregon State Department of Transportation,
Highway User Tax Revenue Bonds, Series A,
5%, 11/15/16 (j) 5,000 5,515,450
====================================================================================================
====================================================================================================
Pennsylvania -- 0.7%
- ----------------------------------------------------------------------------------------------------
Pennsylvania HFA, S/F Mortgage Revenue Refunding
Bonds, AMT, Series 103C, 4.375%, 4/01/18 1,160 1,103,844
====================================================================================================
====================================================================================================
Texas -- 11.5%
- ----------------------------------------------------------------------------------------------------
Dallas-Fort Worth, Texas, International Airport, Joint
Revenue Bonds, AMT, Sub-Series C-1, 4.75%,
11/01/13 (i) 2,500 2,401,725
- ----------------------------------------------------------------------------------------------------
Dallas-Fort Worth, Texas, International Airport
Revenue Refunding and Improvement Bonds, AMT,
Series A, 5.75%, 11/01/14 (h)(i) 5,000 4,984,400
- ----------------------------------------------------------------------------------------------------
Houston, Texas, Airport System, Subordinate Lien
Revenue Refunding Bonds, AMT, Series A, 5.875%,
7/01/15 (f) 5,000 5,003,800
- ----------------------------------------------------------------------------------------------------
Houston, Texas, Combined Utility System, First Lien
Revenue Refunding Bonds, Series B, 5%,
11/15/18 (h) 2,475 2,543,904
- ----------------------------------------------------------------------------------------------------
San Antonio, Texas, Airport System, Improvement
Revenue Bonds, AMT, 5.25%, 7/01/19 (f) 3,055 2,746,201
------------
17,680,030
====================================================================================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 39
Schedule of Investments (continued) BlackRock Intermediate Municipal Fund
(Percentages shown are based on Net Assets)
Par
Municipal Bonds (000) Value
====================================================================================================
Virginia -- 2.6%
- ----------------------------------------------------------------------------------------------------
Fredericksburg, Virginia, EDA, Hospital Facilities
Revenue Refunding Bonds (MediCorp Health
System), 5%, 6/15/17 $ 1,550 $ 1,505,887
- ----------------------------------------------------------------------------------------------------
The Shops at White Oak Village Community
Development Authority, Virginia, Special Assessment
Revenue Bonds, 5.30%, 3/01/17 3,000 2,459,850
------------
3,965,737
====================================================================================================
====================================================================================================
Washington -- 3.2%
- ----------------------------------------------------------------------------------------------------
Kitsap County, Washington, School District
Number 400 (North Kitsap), GO, Refunding,
5.125%, 12/01/16 (f) 4,650 4,972,245
====================================================================================================
====================================================================================================
Puerto Rico -- 2.8%
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Government
Development Bank, Senior Revenue Bonds,
Series B, 5%, 12/01/17 1,500 1,376,970
- ----------------------------------------------------------------------------------------------------
Puerto Rico Commonwealth Infrastructure Financing
Authority, Special Tax and Capital Appreciation
Revenue Bonds, Series B, 5%, 7/01/18 3,250 2,976,513
------------
4,353,483
====================================================================================================
Total Municipal Bonds -- 91.9% 141,621,644
====================================================================================================
====================================================================================================
Mutual Funds Shares
====================================================================================================
BlackRock Insured Municipal 2008
Term Trust, Inc. (k) 244,000 3,660,000
- ----------------------------------------------------------------------------------------------------
BlackRock Insured Municipal Term Trust, Inc. (k) 99,700 994,009
Total Mutual Funds -- 3.0% 4,654,009
====================================================================================================
Total Long-Term Investments
(Cost -- $158,853,676) -- 94.9% 146,275,653
====================================================================================================
====================================================================================================
Short-Term Securities
====================================================================================================
Merrill Lynch Institutional Tax-Exempt Fund,
1.08% (k)(l) 7,425,195 7,425,195
- ----------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost -- $7,425,195) -- 4.8% 7,425,195
====================================================================================================
Total Investments (Cost -- $166,278,871*) -- 99.7% 153,700,848
Other Assets Less Liabilities -- 0.3% 515,137
------------
Net Assets -- 100.0% $154,215,985
============
* The cost and unrealized appreciation (depreciation) of investments as of
November 30, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost ......................................... $ 166,170,122
=============
Gross unrealized appreciation .......................... $ 498,929
Gross unrealized depreciation .......................... (12,968,203)
-------------
Net unrealized depreciation ............................ $ (12,469,274)
=============
(a) Issuer filed for bankruptcy and/or is in default of interest payments.
(b) Non-income producing security.
(c) Assured Guaranty Insured.
(d) Represents a zero-coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(e) AMBAC 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) MBIA Insured.
(j) 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.
(k) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Net
Purchase Sale Realized
Affiliate Cost Cost Gain Income
--------------------------------------------------------------------------
Merrill Lynch Institutional
Tax-Exempt Fund $7,405,879 -- -- $23,949
BlackRock Insured
Municipal 2008
Term Trust, Inc. -- -- -- $37,332
BlackRock Insured
Municipal Term
Trust, Inc. -- -- -- $18,195
--------------------------------------------------------------------------
(l) Represents the current yield as of report date.
See Notes to Financial Statements.
40 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Schedule of Investments (concluded) BlackRock Intermediate Municipal Fund
o Effective June 1, 2008, the Fund adopted Financial Accounting Standards
Board Statement of Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS 157"). FAS 157 clarifies the definition of fair value,
establishes a framework for measuring fair values and requires additional
disclosures about the use of fair value measurements. Various inputs are
used in determining the fair value of investments, which are as follows:
o Level 1 -- price quotations in active markets/exchanges for
identical securities
o Level 2 -- other observable inputs (including, but not limited to:
quoted prices for similar assets or liabilities in markets that are
not active, inputs other than quoted prices that are observable for
the assets or liabilities (such as interest rates, yield curves,
volatilities, prepayment speeds, loss severities, credit risks, and
default rates) or other market-corroborated inputs)
o Level 3 -- unobservable inputs based on the best information
available in the circumstance, to the extent observable inputs are
not available (including the Fund's own assumption used in
determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily
an indication of the risk associated with investing in those securities.
For information about the Fund's policy regarding valuation of investments
and other significant accounting policies, please refer to Note 1 of the
Notes to Financial Statements.
The following table summarizes the inputs used as of November 30, 2008 in
determining the fair valuation of the Fund's investments:
--------------------------------------------------------------------------
Investments in
Valuation Inputs Securities
--------------------------------------------------------------------------
Level 1 .................................................. $ 12,079,204
Level 2 .................................................. 141,621,644
Level 3 .................................................. --
--------------------------------------------------------------------------
Total $153,700,848
============
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 41
Statements of Assets and Liabilities
BlackRock
California BlackRock BlackRock BlackRock BlackRock
Insured Florida New Jersey Pennsylvania Intermediate
Municipal Municipal Municipal Municipal Municipal
November 30, 2008 (Unaudited) Bond Fund Bond Fund Bond Fund Bond Fund Fund
===================================================================================================================================
Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Investments at value -- unaffiliated 1 .................. $ 316,835,040 $ 75,395,171 $ 254,347,861 $ 470,651,393 $ 141,621,644
Investments at value -- affiliated 2 .................... 13,544,083 3,669,234 2,406,301 30,113,585 12,079,204
Cash .................................................... 64,592 134,808 11,257 41,157 45,342
Interest receivable ..................................... 5,456,439 1,093,690 4,875,202 8,371,045 2,079,882
Investments sold receivable -- unaffiliated ............. -- -- 1,027,803 5,022 --
Capital shares sold receivable .......................... 459,155 162,917 273,584 534,805 382,787
Income receivable -- affiliated ......................... 1,884 1,055 -- -- 9,255
Prepaid expenses ........................................ 21,414 -- 16,307 23,514 23,826
Other assets ............................................ 5,064 -- -- 1,641 --
-------------------------------------------------------------------------
Total assets ............................................ 336,387,671 80,456,875 262,958,315 509,742,162 156,241,940
-------------------------------------------------------------------------
===================================================================================================================================
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Investments purchased payable -- unaffiliated ........... -- -- -- -- 1,300,000
Income dividends payable ................................ 1,032,712 292,234 914,839 1,832,079 462,123
Investment advisory fees payable ........................ 143,909 35,709 107,354 213,009 64,038
Capital shares redeemed payable ......................... 392,768 5,739 72,660 210,092 168,722
Interest expense and fees payable ....................... 74,713 4,746 2,677 -- --
Distribution fees payable ............................... 57,988 14,365 34,381 23,860 12,599
Officer's and Trustees' fees payable .................... 3,312 3,244 3,299 3,358 3,265
Other affiliates payable ................................ 24,415 7,534 14,071 14,179 15,208
Other accrued expenses payable .......................... 50,388 47,321 58,802 97,687 --
-------------------------------------------------------------------------
Total accrued liabilities ............................... 1,780,205 410,892 1,208,083 2,394,264 2,025,955
-------------------------------------------------------------------------
===================================================================================================================================
Other Liabilities
- -----------------------------------------------------------------------------------------------------------------------------------
Trust certificates 3 .................................... 10,933,523 2,320,000 1,075,000 -- --
-------------------------------------------------------------------------
Total liabilities ....................................... 12,713,728 2,730,892 2,283,083 2,394,264 2,025,955
-------------------------------------------------------------------------
Net Assets .............................................. $ 323,673,943 $ 77,725,983 $ 260,675,232 $ 507,347,898 $ 154,215,985
=========================================================================
===================================================================================================================================
Net Assets Consist of
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional Shares, $0.10 par value, unlimited number
of shares authorized ................................. $ 361,694 $ 160,328 $ 1,694,792 $ 4,408,443 $ 914,250
Service Shares, $0.10 par value, unlimited number of
shares authorized .................................... -- -- 104,846 25,976 --
Investor A Shares, $0.10 par value, unlimited number of
shares authorized .................................... 247,337 39,106 208,280 270,585 61,215
Investor A1 Shares, $0.10 par value, unlimited number of
shares authorized .................................... 1,858,591 462,498 367,257 227,223 527,410
Investor B Shares, $0.10 par value, unlimited number of
shares authorized .................................... 290,790 107,410 55,344 17,815 55,265
Investor B1 Shares, $0.10 par value, unlimited number of
shares authorized .................................... -- -- 103,565 78,844 --
Investor C Shares, $0.10 par value, unlimited number of
shares authorized .................................... 99,609 24,143 127,819 77,805 81,147
Investor C1 Shares, $0.10 par value, unlimited number of
shares authorized .................................... 294,271 106,822 153,743 113,676 --
Paid-in capital in excess of par ........................ 344,926,605 90,473,458 296,374,249 593,270,677 167,100,449
Undistributed net investment income ..................... 948,543 645,002 521,765 315,981 88,898
Accumulated net realized loss ........................... (92,751) (3,973,867) (12,519,166) (44,786,651) (2,034,626)
Net unrealized appreciation/depreciation ................ (25,260,746) (10,318,917) (26,517,262) (46,672,476) (12,578,023)
-------------------------------------------------------------------------
Net Assets .............................................. $ 323,673,943 $ 77,725,983 $ 260,675,232 $ 507,347,898 $ 154,215,985
=========================================================================
See Notes to Financial Statements.
42 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Statements of Assets and Liabilities (concluded)
BlackRock
California BlackRock BlackRock BlackRock BlackRock
Insured Florida New Jersey Pennsylvania Intermediate
Municipal Municipal Municipal Municipal Municipal
November 30, 2008 (Unaudited) Bond Fund Bond Fund Bond Fund Bond Fund Fund
===================================================================================================================================
Net Asset Value
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional:
Net assets .................................... $ 37,138,863 $ 13,860,090 $156,874,882 $428,390,701 $ 86,024,099
============================================================================
Shares outstanding ............................ 3,616,944 1,603,280 16,947,915 44,084,432 9,142,503
============================================================================
Net asset value ............................... $ 10.27 $ 8.64 $ 9.26 $ 9.72 $ 9.41
============================================================================
Service:
Net assets .................................... -- -- $ 9,703,540 $ 2,524,673 --
============================================================================
Shares outstanding ............................ -- -- 1,048,462 259,762 --
============================================================================
Net asset value ............................... -- -- $ 9.26 $ 9.72 --
============================================================================
Investor A:
Net assets .................................... $ 25,378,765 $ 3,372,458 $ 19,296,668 $ 26,321,400 $ 5,755,914
============================================================================
Shares outstanding ............................ 2,473,374 391,062 2,082,799 2,705,849 612,149
============================================================================
Net asset value ............................... $ 10.26 $ 8.62 $ 9.26 $ 9.73 $ 9.40
============================================================================
Investor A1:
Net assets .................................... $190,834,655 $ 39,910,857 $ 34,033,565 $ 22,105,417 $ 49,603,547
============================================================================
Shares outstanding ............................ 18,585,909 4,624,981 3,672,573 2,272,227 5,274,095
============================================================================
Net asset value ............................... $ 10.27 $ 8.63 $ 9.27 $ 9.73 $ 9.41
============================================================================
Investor B:
Net assets .................................... $ 29,874,899 $ 9,284,983 $ 5,122,600 $ 1,731,163 $ 5,199,386
============================================================================
Shares outstanding ............................ 2,907,902 1,074,104 553,440 178,154 552,646
============================================================================
Net asset value ............................... $ 10.27 $ 8.64 $ 9.26 $ 9.72 $ 9.41
============================================================================
Investor B1:
Net assets .................................... -- -- $ 9,587,358 $ 7,660,981 --
============================================================================
Shares outstanding ............................ -- -- 1,035,645 788,437 --
============================================================================
Net asset value ............................... -- -- $ 9.26 $ 9.72 --
============================================================================
Investor C:
Net assets .................................... $ 10,228,280 $ 2,080,627 $ 11,827,296 $ 7,567,607 $ 7,633,039
============================================================================
Shares outstanding ............................ 996,087 241,433 1,278,187 778,045 811,469
============================================================================
Net asset value ............................... $ 10.27 $ 8.62 $ 9.25 $ 9.73 $ 9.41
============================================================================
Investor C1:
Net assets .................................... $ 30,218,481 $ 9,216,968 $ 14,229,323 $ 11,045,956 --
============================================================================
Shares outstanding ............................ 2,942,713 1,068,217 1,537,432 1,136,757 --
============================================================================
Net asset value ............................... $ 10.27 $ 8.63 $ 9.26 $ 9.72 --
============================================================================
1 Cost -- unaffiliated .......................... $341,965,394 $ 85,370,890 $280,865,123 $517,323,869 $153,604,052
============================================================================
2 Cost -- affiliated ............................ $ 13,674,475 $ 4,012,432 $ 2,406,301 $ 30,113,585 $ 12,674,819
============================================================================
3 Represents short-term floating rate certificates
issued by tender option bond trusts.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 43
Statements of Operations
BlackRock
California BlackRock BlackRock BlackRock BlackRock
Insured Florida New Jersey Pennsylvania Intermediate
Municipal Municipal Municipal Municipal Municipal
Six Months Ended November 30, 2008 (Unaudited) Bond Fund Bond Fund Bond Fund Bond Fund Fund
===================================================================================================================================
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------------
Interest ................................................ $ 9,227,690 $ 2,454,317 $ 7,064,049 $ 13,593,520 $ 3,842,101
Income -- affiliated .................................... 138,771 17,171 43,440 250,125 79,505
------------------------------------------------------------------------
Total income ............................................ 9,366,461 2,471,488 7,107,489 13,843,645 3,921,606
------------------------------------------------------------------------
===================================================================================================================================
Expenses
- -----------------------------------------------------------------------------------------------------------------------------------
Investment advisory ..................................... 961,147 243,278 777,224 1,497,667 488,693
Service -- Service ...................................... -- -- 13,232 2,696 --
Service -- Investor A ................................... 27,350 4,502 26,485 34,718 7,110
Service -- Investor A1 .................................. 103,777 22,126 18,343 12,068 26,842
Service and distribution -- Investor B .................. 83,997 28,140 30,084 13,501 8,514
Service and distribution -- Investor B1 ................. -- -- 27,481 21,980 --
Service and distribution -- Investor C .................. 51,250 11,248 57,040 36,324 27,601
Service and distribution -- Investor C1 ................. 101,036 31,302 46,056 35,862 --
Transfer agent -- Institutional ......................... 13,118 5,363 6,417 12,201 26,342
Transfer agent -- Service ............................... -- -- 4,349 350 --
Transfer agent -- Investor A ............................ 4,202 361 4,468 6,976 723
Transfer agent -- Investor A1 ........................... 36,623 8,982 10,149 7,606 11,797
Transfer agent -- Investor B ............................ 10,054 3,039 1,949 1,071 1,906
Transfer agent -- Investor B1 ........................... -- -- 3,701 2,913 --
Transfer agent -- Investor C ............................ 1,724 537 2,227 1,671 828
Transfer agent -- Investor C1 ........................... 6,623 2,278 3,038 2,906 --
Accounting services ..................................... 78,469 29,466 57,464 91,340 40,266
Printing ................................................ 30,784 16,385 21,695 35,777 28,318
Professional ............................................ 30,022 41,430 30,107 33,288 26,535
Registration ............................................ 23,630 16,224 11,714 10,093 26,828
Officer and Trustees .................................... 10,897 5,404 10,190 13,611 8,576
Custodian ............................................... 15,937 4,311 9,110 15,071 6,137
Miscellaneous ........................................... 20,676 11,006 24,797 25,731 16,485
------------------------------------------------------------------------
Total expenses excluding interest expense and fees ...... 1,611,316 485,382 1,197,320 1,915,421 753,501
Interest expense and fees 1 ............................. 160,608 62,458 49,896 123,206 64,785
------------------------------------------------------------------------
Total expenses .......................................... 1,771,924 547,840 1,247,216 2,038,627 818,286
Less fees waived by advisor ............................. (31,433) (1,959) (74,145) (91,762) (46,552)
Less fees paid indirectly ............................... -- (383) (17) (18) --
------------------------------------------------------------------------
Total expenses after fees waived and paid indirectly .... 1,740,491 545,498 1,173,054 1,946,847 771,734
------------------------------------------------------------------------
Net investment income ................................... 7,625,970 1,925,990 5,934,435 11,896,798 3,149,872
------------------------------------------------------------------------
===================================================================================================================================
Realized and Unrealized Gain (Loss)
- -----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from:
Investments ......................................... 489,100 (19,294) (82,553) (5,752,771) (1,104,599)
Futures and swaps ................................... -- (2,997) 28,872 410,893 --
------------------------------------------------------------------------
489,100 (22,291) (53,681) (5,341,878) (1,104,599)
------------------------------------------------------------------------
Net change in unrealized appreciation/depreciation on:
Investments ......................................... (31,889,534) (11,206,407) (29,497,219) (51,122,585) (11,924,105)
Futures and swaps ................................... -- (78,457) -- (317,845) --
------------------------------------------------------------------------
(31,889,534) (11,284,864) (29,497,219) (51,440,430) (11,924,105)
------------------------------------------------------------------------
Total realized and unrealized loss ...................... (31,400,434) (11,307,155) (29,550,900) (56,782,308) (13,028,704)
------------------------------------------------------------------------
Net Decrease in Net Assets Resulting from Operations .... $(23,774,464) $ (9,381,165) $(23,616,465) $(44,885,510) $ (9,878,832)
========================================================================
1 Related to tender option bond trusts.
See Notes to Financial Statements.
44 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Statements of Changes in Net Assets
BlackRock California Insured Municipal Bond Fund
Six Months Period
Ended September 1,
November 30, 2007 Year Ended
2008 to May 31, August 31,
Increase (Decrease) in Net Assets: (Unaudited) 2008 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ........................................................... $ 7,625,970 $ 11,391,156 $ 15,946,897
Net realized gain (loss) ........................................................ 489,100 1,426,442 (297,707)
Net change in unrealized appreciation/depreciation .............................. (31,889,534) (2,731,083) (8,253,468)
-----------------------------------------------
Net increase (decrease) in net assets resulting from operations ................. (23,774,464) 10,086,515 7,395,722
-----------------------------------------------
===================================================================================================================================
Dividends and Distributions to Shareholders From
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional ............................................................... (894,243) (1,422,079) (1,846,625)
Investor A .................................................................. (439,001) (469,076) (223,449)
Investor A1 ................................................................. (4,315,006) (7,034,288) (10,505,085)
Investor B .................................................................. (626,531) (1,169,691) (2,190,747)
Investor C .................................................................. (167,192) (185,828) (84,571)
Investor C1 ................................................................. (614,011) (1,017,011) (1,575,835)
Net realized gain:
Institutional ............................................................... -- -- (13,753)
Investor A .................................................................. -- -- (694)
Investor A1 ................................................................. -- -- (84,096)
Investor B .................................................................. -- -- (20,293)
Investor C .................................................................. -- -- (381)
Investor C1 ................................................................. -- -- (14,460)
-----------------------------------------------
Decrease in net assets resulting from dividends and distributions to shareholders (7,055,984) (11,297,973) (16,559,989)
-----------------------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets derived from share transactions ...................... (14,299,269) (20,688,174) (15,798,990)
-----------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets .................................................... (45,129,717) (21,899,632) (24,963,257)
Beginning of period ............................................................. 368,803,660 390,703,292 415,666,549
-----------------------------------------------
End of period ................................................................... $ 323,673,943 $ 368,803,660 $ 390,703,292
===============================================
End of period undistributed net investment income ............................... $ 948,543 $ 378,557 $ 285,374
===============================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 45
Statements of Changes in Net Assets BlackRock Florida Municipal Bond Fund
Six Months
Ended Period
November 30, August 1, 2007 Year Ended
2008 to May 31, July 31,
Increase (Decrease) in Net Assets: (Unaudited) 2008 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ........................................................... $ 1,925,990 $ 4,014,350 $ 5,022,024
Net realized gain (loss) ........................................................ (22,291) (1,400,107) 914,021
Net change in unrealized appreciation/depreciation .............................. (11,284,864) (2,689,691) (1,531,419)
-----------------------------------------------
Net increase (decrease) in net assets resulting from operations ................. (9,381,165) (75,448) 4,404,626
-----------------------------------------------
===================================================================================================================================
Dividends to Shareholders From
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional ............................................................... (379,196) (756,628) (968,556)
Investor A .................................................................. (78,785) (125,034) (73,647)
Investor A1 ................................................................. (995,344) (1,843,502) (2,290,947)
Investor B .................................................................. (229,544) (496,972) (796,933)
Investor C .................................................................. (40,402) (51,974) (16,531)
Investor C1 ................................................................. (208,264) (439,491) (649,197)
-----------------------------------------------
Decrease in net assets resulting from dividends to shareholders ................. (1,931,535) (3,713,601) (4,795,811)
-----------------------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets derived from share transactions ...................... (6,688,146) (10,516,063) (15,475,630)
-----------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets .................................................... (18,000,846) (14,305,112) (15,866,815)
Beginning of period ............................................................. 95,726,829 110,031,941 125,898,756
-----------------------------------------------
End of period ................................................................... $ 77,725,983 $ 95,726,829 $ 110,031,941
===============================================
End of period undistributed net investment income ............................... $ 645,002 $ 650,547 $ 349,798
===============================================
See Notes to Financial Statements.
46 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Statements of Changes in Net Assets (continued)
BlackRock New Jersey Municipal Bond Fund
Six Months
Ended Period
November 30, August 1, 2007 Year Ended
2008 to May 31, July 31,
Increase (Decrease) in Net Assets: (Unaudited) 2008 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ........................................................... $ 5,934,435 $ 10,608,833 $ 11,274,846
Net realized gain (loss) ........................................................ (53,681) (877,417) 386,649
Net change in unrealized appreciation/depreciation .............................. (29,497,219) (6,768,935) (5,192,639)
-----------------------------------------------
Net increase (decrease) in net assets resulting from operations ................. (23,616,465) 2,962,481 6,468,856
-----------------------------------------------
===================================================================================================================================
Dividends to Shareholders From
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional ............................................................... (3,928,222) (6,489,421) (6,280,908)
Service ..................................................................... (233,968) (442,839) (438,542)
Investor A .................................................................. (468,461) (630,770) (387,416)
Investor A1 ................................................................. (838,617) (1,444,832) (1,713,234)
Investor B .................................................................. (110,245) (230,613) (253,977)
Investor B1 ................................................................. (229,360) (477,471) (710,416)
Investor C .................................................................. (210,340) (252,430) (125,242)
Investor C1 ................................................................. (312,611) (587,563) (731,637)
-----------------------------------------------
Decrease in net assets resulting from dividends to shareholders ................. (6,331,824) (10,555,939) (10,641,372)
-----------------------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from share transactions ........... (6,118,200) 12,766,888 181,194,576
-----------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ......................................... (36,066,489) 5,173,430 177,022,060
Beginning of period ............................................................. 296,741,721 291,568,291 114,546,231
-----------------------------------------------
End of period ................................................................... $ 260,675,232 $ 296,741,721 $ 291,568,291
===============================================
End of period undistributed net investment income ............................... 521,765 919,154 $ 866,260
===============================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 47
Statements of Changes in Net Assets (continued)
BlackRock Pennsylvania Municipal Bond Fund
Six Months
Ended Period
November 30, August 1, 2007 Year Ended
2008 to May 31, July 31,
Increase (Decrease) in Net Assets: (Unaudited) 2008 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ........................................................... $ 11,896,798 $ 23,342,487 $ 21,731,688
Net realized gain (loss) ........................................................ (5,341,878) (5,165,679) 7,485,981
Net change in unrealized appreciation/depreciation .............................. (51,440,430) (11,358,855) (16,380,934)
-----------------------------------------------
Net increase (decrease) in net assets resulting from operations ................. (44,885,510) 6,817,953 12,836,735
-----------------------------------------------
===================================================================================================================================
Dividends and Distributions to Shareholders From
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional ............................................................... (10,649,158) (19,696,051) (17,510,802)
Service ..................................................................... (47,356) (106,748) (115,809)
Investor A .................................................................. (606,895) (1,064,148) (905,101)
Investor A1 ................................................................. (545,432) (1,055,910) (1,190,963)
Investor B .................................................................. (49,209) (147,441) (172,868)
Investor B1 ................................................................. (181,198) (414,612) (613,015)
Investor C .................................................................. (131,665) (178,893) (71,891)
Investor C1 ................................................................. (240,254) (496,646) (603,987)
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 (12,451,167) (24,607,097) (21,184,436)
-----------------------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from share transactions ........... (10,331,144) 9,831,195 518,881,095
-----------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ......................................... (67,667,821) (7,957,949) 510,533,394
Beginning of period ............................................................. 575,015,719 582,973,668 72,440,274
-----------------------------------------------
End of period ................................................................... $ 507,347,898 $ 575,015,719 $ 582,973,668
===============================================
End of period undistributed net investment income ............................... $ 315,981 $ 870,350 $ 688,365
===============================================
See Notes to Financial Statements.
48 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Statements of Changes in Net Assets (concluded)
BlackRock Intermediate Municipal Fund
Six Months Period
Ended November 1,
November 30, 2007 Year Ended
2008 to May 31, October 31,
Increase (Decrease) in Net Assets: (Unaudited) 2008 2007
===================================================================================================================================
Operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income ........................................................... $ 3,149,872 $ 4,248,039 $ 6,964,866
Net realized gain (loss) ........................................................ (1,104,599) 1,055,383 251,945
Net change in unrealized appreciation/depreciation .............................. (11,924,105) (1,726,345) (2,354,117)
-----------------------------------------------
Net increase (decrease) in net assets resulting from operations ................. (9,878,832) 3,577,077 4,862,694
-----------------------------------------------
===================================================================================================================================
Dividends to Shareholders From
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income:
Institutional ............................................................... (1,991,207) (2,677,237) (4,106,295)
Investor A .................................................................. (99,778) (98,132) (60,549)
Investor A1 ................................................................. (981,693) (1,271,996) (2,341,365)
Investor B .................................................................. (96,927) (137,590) (280,255)
Investor C .................................................................. (75,955) (50,440) (35,579)
-----------------------------------------------
Decrease in net assets resulting from dividends to shareholders ................. (3,245,560) (4,235,395) (6,824,043)
-----------------------------------------------
===================================================================================================================================
Capital Share Transactions
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from share transactions ........... (19,711,421) (4,775,783) 13,314,783
-----------------------------------------------
===================================================================================================================================
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets ......................................... (32,835,813) (5,434,101) 11,353,434
Beginning of period ............................................................. 187,051,798 192,485,899 181,132,465
-----------------------------------------------
End of period ................................................................... $ 154,215,985 $ 187,051,798 $ 192,485,899
===============================================
End of period undistributed net investment income ............................... $ 88,898 $ 184,586 $ 177,757
===============================================
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 49
Financial Highlights BlackRock California Insured Municipal Bond Fund
Institutional
----------------------------------------------------------------------------------------
Six Months Period
Ended September 1,
November 30, 2007 to Year Ended August 31,
2008 May 31, ------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 11.22 $ 11.26 $ 11.52 $ 11.70 $ 11.72 $ 11.54 $ 11.81
--------------------------------------------------------------------------------------
Net investment income1 .................. 0.25 0.36 0.48 0.51 0.54 0.56 0.57
Net realized and unrealized gain (loss) . (0.97) (0.05) (0.25) (0.18) (0.02) 0.17 (0.27)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.72) 0.31 0.23 0.33 0.52 0.73 0.30
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.23) (0.35) (0.49) (0.51) (0.54) (0.55) (0.57)
Net realized gain ................... -- -- (0.00) 2 -- -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.23) (0.35) (0.49) (0.51) (0.54) (0.55) (0.57)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 10.27 $ 11.22 $ 11.26 $ 11.52 $ 11.70 $ 11.72 $ 11.54
======================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (6.49)% 4 2.84% 4 1.99% 2.93% 4.50% 6.48% 2.54%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding
interest expense and fees 5 ........... 0.71% 6 0.74% 6 0.71% 0.68% 0.68% 0.68% 0.68%
======================================================================================
Total expenses after waiver ............. 0.81% 6 0.87% 6 0.93% 0.91% 0.78% 0.73% 0.79%
======================================================================================
Total expenses .......................... 0.82% 6 0.87% 6 0.93% 0.92% 0.79% 0.73% 0.79%
======================================================================================
Net investment income ................... 4.55% 6 4.22% 6 4.11% 4.45% 4.60% 4.76% 4.84%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 37,139 $ 44,782 $ 46,481 $ 42,053 $ 36,105 $ 36,132 $ 39,841
======================================================================================
Portfolio turnover ...................... 13% 31% 43% 30% 27% 22% 26%
======================================================================================
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.
50 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued)
BlackRock California Insured Municipal Bond Fund
Investor A
------------------------------------------
Six Months Period Period
Ended September 1, October 2,
November 30, 2007 to 2006 1 to
2008 May 31, August 31,
(Unaudited) 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................. $ 11.21 $ 11.25 $ 11.55
------------------------------------------
Net investment income 2 .............................................................. 0.23 0.33 0.37
Net realized and unrealized loss ..................................................... (0.96) (0.04) (0.25)
------------------------------------------
Net increase (decrease) from investment operations ................................... (0.73) 0.29 0.12
------------------------------------------
Dividends and distributions from:
Net investment income ............................................................ (0.22) (0.33) (0.42)
Net realized gain ................................................................ -- -- (0.00) 3
------------------------------------------
Total dividends and distributions .................................................... (0.22) (0.33) (0.42)
------------------------------------------
Net asset value, end of period ....................................................... $ 10.26 $ 11.21 $ 11.25
==========================================
===================================================================================================================================
Total Investment Return 4
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................................. (6.61)% 5 2.65% 5 1.05% 5
==========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding interest expense and fees 6 ................ 0.94% 7 0.99% 7 0.96% 7
==========================================
Total expenses after waiver .......................................................... 1.03% 7 1.12% 7 1.18% 7
==========================================
Total expenses ....................................................................... 1.05% 7 1.13% 7 1.19% 7
==========================================
Net investment income ................................................................ 4.35% 7 3.95% 7 3.89% 7
==========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................................................... $ 25,379 $ 20,306 $ 12,452
==========================================
Portfolio turnover ................................................................... 13% 31% 43%
==========================================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Amount is less than $(0.01) per share.
4 Total investment returns exclude the effect of sales charges.
5 Aggregate total investment return.
6 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
7 Annualized.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 51
See Notes to Financial Statements.
Financial Highlights (continued)
BlackRock California Insured Municipal Bond Fund
Investor A1
----------------------------------------------------------------------------------------
Six Months Period
Ended September 1,
November 30, 2007 to Year Ended August 31,
2008 May 31, ------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 11.22 $ 11.26 $ 11.52 $ 11.70 $ 11.72 $ 11.54 $ 11.82
--------------------------------------------------------------------------------------
Net investment income1 .................. 0.24 0.35 0.47 0.50 0.53 0.55 0.56
Net realized and unrealized gain (loss) . (0.96) (0.05) (0.25) (0.18) (0.03) 0.17 (0.28)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
--------------------------------------------------------------------------------------
operations ............................ (0.72) 0.30 0.22 0.32 0.50 0.72 0.28
Dividends and distributions from:
Net investment income ............... (0.23) (0.34) (0.48) (0.50) (0.52) (0.54) (0.56)
Net realized gain ................... -- -- (0.00) 2 -- -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.23) (0.34) (0.48) (0.50) (0.52) (0.54) (0.56)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 10.27 $ 11.22 $ 11.26 $ 11.52 $ 11.70 $ 11.72 $ 11.54
======================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (6.53)% 4 2.78% 4 1.90% 2.83% 4.40% 6.37% 2.35%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding
interest expense and fees 5 ........... 0.79% 6 0.82% 6 0.80% 0.78% 0.78% 0.78% 0.78%
======================================================================================
Total expenses after waiver ............. 0.88% 6 0.94% 6 1.02% 1.01% 0.88% 0.83% 0.89%
======================================================================================
Total expenses .......................... 0.90% 6 0.95% 6 1.02% 1.02% 0.89% 0.83% 0.89%
======================================================================================
Net investment income ................... 4.48% 6 4.14% 6 4.02% 4.35% 4.50% 4.66% 4.74%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $190,835 $220,470 $239,346 $258,492 $264,482 $258,411 $247,184
======================================================================================
Portfolio turnover ...................... 13% 31% 43% 30% 27% 22% 26%
======================================================================================
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.
52 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued)
BlackRock California Insured Municipal Bond Fund
Investor B
----------------------------------------------------------------------------------------
Six Months Period
Ended September 1,
November 30, 2007 to Year Ended August 31,
2008 May 31, ------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 11.23 $ 11.26 $ 11.53 $ 11.70 $ 11.72 $ 11.54 $ 11.82
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.22 0.31 0.42 0.46 0.48 0.50 0.51
Net realized and unrealized gain (loss) . (0.98) (0.03) (0.26) (0.17) (0.02) 0.18 (0.28)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.76) 0.28 0.16 0.29 0.46 0.68 0.23
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.20) (0.31) (0.43) (0.46) (0.48) (0.50) (0.51)
Net realized gain ................... -- -- (0.00) 2 -- -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.20) (0.31) (0.43) (0.46) (0.48) (0.50) (0.51)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 10.27 $ 11.23 $ 11.26 $ 11.53 $ 11.70 $ 11.72 $ 11.54
======================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (6.81)% 4 2.55% 4 1.39% 2.50% 3.98% 5.94% 1.93%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding
interest expense and fees 5 ........... 1.21% 6 1.23% 6 1.21% 1.18% 1.19% 1.18% 1.19%
======================================================================================
Total expenses after waiver ............. 1.30% 6 1.36% 6 1.43% 1.42% 1.29% 1.24% 1.29%
======================================================================================
Total expenses .......................... 1.32% 6 1.36% 6 1.43% 1.42% 1.29% 1.24% 1.30%
======================================================================================
Net investment income ................... 4.05% 6 3.73% 6 3.61% 3.95% 4.10% 4.25% 4.34%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 29,875 $ 37,540 $ 47,753 $ 69,647 $ 96,650 $118,304 $151,276
======================================================================================
Portfolio turnover ...................... 13% 31% 43% 30% 27% 22% 26%
======================================================================================
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.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 53
Financial Highlights (continued)
BlackRock California Insured Municipal Bond Fund
Investor C
------------------------------------------
Six Months Period Period
Ended September 1, October 2,
November 30, 2007 to 2006 1 to
2008 May 31, August 31,
(Unaudited) 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................. $ 11.22 $ 11.26 $ 11.55
------------------------------------------
Net investment income 2 .............................................................. 0.19 0.27 0.30
Net realized and unrealized loss ..................................................... (0.96) (0.04) (0.25)
------------------------------------------
Net increase (decrease) from investment operations ................................... (0.77) 0.23 0.05
------------------------------------------
Dividends and distributions from:
Net investment income ............................................................ (0.18) (0.27) (0.34)
Net realized gain ................................................................ -- -- (0.00) 3
------------------------------------------
Total dividends and distributions .................................................... (0.18) (0.27) (0.34)
------------------------------------------
Net asset value, end of period ....................................................... $ 10.27 $ 11.22 $ 11.26
==========================================
===================================================================================================================================
Total Investment Return 4
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................................. (6.95)% 5 2.08% 5 0.44% 5
==========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding interest expense and fees 6 ................ 1.69% 7 1.72% 7 1.72% 7
==========================================
Total expenses after waiver .......................................................... 1.78% 7 1.85% 7 1.94% 7
==========================================
Total expenses ....................................................................... 1.80% 7 1.86% 7 1.95% 7
==========================================
Net investment income ................................................................ 3.59% 7 3.22% 7 3.13% 7
==========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................................................... $ 10,228 $ 9,425 $ 5,448
==========================================
Portfolio turnover ................................................................... 13% 31% 43%
==========================================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Amount is less than $(0.01) per share.
4 Total investment returns exclude the effect of sales charges.
5 Aggregate total investment return.
6 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
7 Annualized.
See Notes to Financial Statements.
54 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued)
BlackRock California Insured Municipal Bond Fund
Investor C1
----------------------------------------------------------------------------------------
Six Months Period
Ended September 1,
November 30, 2007 to Year Ended August 31,
2008 May 31, ------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 11.22 $ 11.26 $ 11.52 $ 11.70 $ 11.72 $ 11.54 $ 11.82
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.22 0.31 0.41 0.44 0.47 0.49 0.50
Net realized and unrealized gain (loss) . (1.00) (0.05) (0.25) (0.18) (0.02) 0.17 (0.28)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.78) 0.26 0.16 0.26 0.45 0.66 0.22
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.17) (0.30) (0.42) (0.44) (0.47) (0.48) (0.50)
Net realized gain ................... -- -- (0.00) 2 -- -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.17) (0.30) (0.42) (0.44) (0.47) (0.48) (0.50)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 10.27 $ 11.22 $ 11.26 $ 11.52 $ 11.70 $ 11.72 $ 11.54
======================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (6.76)% 4 2.39% 4 1.39% 2.31% 3.88% 5.84% 1.83%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and excluding
interest expense and fees 5 ........... 1.29% 6 1.31% 6 1.30% 1.28% 1.29% 1.28% 1.29%
======================================================================================
Total expenses after waiver ............. 1.38% 6 1.44% 6 1.52% 1.52% 1.39% 1.34% 1.39%
======================================================================================
Total expenses .......................... 1.40% 6 1.45% 6 1.52% 1.52% 1.39% 1.34% 1.40%
======================================================================================
Net investment income ................... 3.97% 6 3.64% 6 3.52% 3.85% 4.00% 4.15% 4.24%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 30,218 $ 36,280 $ 39,223 $ 45,474 $ 45,700 $ 46,900 $ 50,197
======================================================================================
Portfolio turnover ...................... 13% 31% 43% 30% 27% 22% 26%
======================================================================================
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.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 55
Financial Highlights (continued) BlackRock Florida Municipal Bond Fund
Institutional
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 9.86 $ 10.23 $ 10.28 $ 10.47 $ 10.15 $ 10.06 $ 10.20
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.21 0.41 0.47 0.46 0.49 0.53 0.53
Net realized and unrealized gain (loss) . (1.21) (0.40) (0.08) (0.23) 0.32 0.09 (0.14)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (1.00) 0.01 0.39 0.23 0.81 0.62 0.39
--------------------------------------------------------------------------------------
Dividends from net investment income .... (0.22) (0.38) (0.44) (0.42) (0.49) (0.53) (0.53)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 8.64 $ 9.86 $ 10.23 $ 10.28 $ 10.47 $ 10.15 $ 10.06
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (10.31)% 3 0.12% 3 3.88% 2.60% 8.19% 6.24% 3.87%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 0.89% 5 0.86% 5 0.84% 0.78% 0.79% 0.78% 0.77%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 1.03% 5 1.18% 5 1.16% 1.02% 1.04% 0.89% 0.93%
======================================================================================
Total expenses .......................... 1.04% 5 1.18% 5 1.16% 1.02% 1.04% 0.89% 0.93%
======================================================================================
Net investment income ................... 4.55% 5 4.88% 5 4.49% 4.40% 4.78% 5.15% 5.18%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 13,860 $ 18,182 $ 21,357 $ 23,603 $ 20,647 $ 19,681 $ 22,053
======================================================================================
Portfolio turnover ...................... 5% 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.
56 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock Florida Municipal Bond Fund
Investor A
------------------------------------------
Six Months Period Period
Ended August 1, October 2,
November 30, 2007 to 2006 1 to
2008 May 31, July 31,
(Unaudited) 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................. $ 9.84 $ 10.20 $ 10.40
------------------------------------------
Net investment income 2 .............................................................. 0.20 0.39 0.33
Net realized and unrealized loss ..................................................... (1.21) (0.39) (0.18)
------------------------------------------
Net increase (decrease) from investment operations ................................... (1.01) -- 0.15
------------------------------------------
Dividends from net investment income ................................................. (0.21) (0.36) (0.35)
------------------------------------------
Net asset value, end of period ....................................................... $ 8.62 $ 9.84 $ 10.20
==========================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................................. (10.43)% 4 0.03% 4 1.42% 4
==========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees 5 .............................................. 1.10% 6 1.08% 6 1.10% 6
==========================================
Total expenses after waiver and fees paid indirectly ................................. 1.24% 6 1.39% 6 1.42% 6
==========================================
Total expenses after waiver and before fees paid indirectly .......................... 1.24% 6 1.40% 6 1.42% 6
==========================================
Total expenses ....................................................................... 1.24% 6 1.40% 6 1.42% 6
==========================================
Net investment income ................................................................ 4.36% 6 4.68% 6 4.25% 6
==========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................................................... $ 3,372 $ 3,611 $ 3,248
==========================================
Portfolio turnover ................................................................... 5% 19% 22%
==========================================
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 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 57
Financial Highlights (continued) BlackRock Florida Municipal Bond Fund
Investor A1
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 9.84 $ 10.21 $ 10.26 $ 10.45 $ 10.14 $ 10.04 $ 10.19
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.21 0.40 0.45 0.45 0.48 0.52 0.52
Net realized and unrealized gain (loss) . (1.21) (0.40) (0.06) (0.20) 0.31 0.10 (0.15)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (1.00) -- 0.39 0.25 0.79 0.62 0.37
--------------------------------------------------------------------------------------
Dividends from net investment income .... (0.21) (0.37) (0.44) (0.44) (0.48) (0.52) (0.52)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 8.63 $ 9.84 $ 10.21 $ 10.26 $ 10.45 $ 10.14 $ 10.04
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (10.27)% 3 0.05% 3 3.78% 2.49% 7.98% 6.24% 3.66%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 0.97% 5 0.95% 5 0.93% 0.88% 0.89% 0.87% 0.88%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 1.11% 5 1.26% 5 1.25% 1.12% 1.14% 0.99% 1.03%
======================================================================================
Total expenses .......................... 1.11% 5 1.26% 5 1.25% 1.12% 1.14% 0.99% 1.03%
======================================================================================
Net investment income ................... 4.48% 5 4.80% 5 4.42% 4.30% 4.68% 5.05% 5.08%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 39,911 $ 47,297 $ 51,685 $ 59,210 $ 59,586 $ 57,521 $ 57,610
======================================================================================
Portfolio turnover ...................... 5% 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.
58 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock Florida Municipal Bond Fund
Investor B
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 9.86 $ 10.23 $ 10.28 $ 10.47 $ 10.15 $ 10.06 $ 10.20
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.19 0.37 0.41 0.40 0.44 0.48 0.48
Net realized and unrealized gain (loss) . (1.22) (0.40) (0.07) (0.19) 0.32 0.09 (0.14)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (1.03) (0.03) 0.34 0.21 0.76 0.57 0.34
--------------------------------------------------------------------------------------
Dividends from net investment income .... (0.19) (0.34) (0.39) (0.40) (0.44) (0.48) (0.48)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 8.64 $ 9.86 $ 10.23 $ 10.28 $ 10.47 $ 10.15 $ 10.06
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (10.54)% 3 (0.29)% 3 3.36% 2.08% 7.65% 5.70% 3.35%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 1.38% 5 1.35% 5 1.33% 1.29% 1.30% 1.28% 1.28%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 1.52% 5 1.67% 5 1.65% 1.52% 1.55% 1.40% 1.43%
======================================================================================
Total expenses .......................... 1.52% 5 1.67% 5 1.65% 1.52% 1.55% 1.40% 1.44%
======================================================================================
Net investment income ................... 4.06% 5 4.39% 5 4.00% 3.90% 4.29% 4.64% 4.67%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 9,285 $ 12,804 $ 16,955 $ 25,614 $ 35,340 $ 41,705 $ 61,098
======================================================================================
Portfolio turnover ...................... 5% 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.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 59
Financial Highlights (continued) BlackRock Florida Municipal Bond Fund
Investor C
------------------------------------------
Six Months Period Period
Ended August 1, October 2,
November 30, 2007 to 2006 1 to
2008 May 31, July 31,
(Unaudited) 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................. $ 9.83 $ 10.20 $ 10.40
------------------------------------------
Net investment income 2 .............................................................. 0.17 0.33 0.26
Net realized and unrealized loss ..................................................... (1.21) (0.41) (0.18)
------------------------------------------
Net increase (decrease) from investment operations ................................... (1.04) (0.08) 0.08
------------------------------------------
Dividends from net investment income ................................................. (0.17) (0.29) (0.28)
------------------------------------------
Net asset value, end of period ....................................................... $ 8.62 $ 9.83 $ 10.20
==========================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................................. (10.69)% 4 (0.72)% 4 0.78% 4
==========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees 5 .............................................. 1.87% 6 1.87% 6 1.89% 6
==========================================
Total expenses after waiver and fees paid indirectly ................................. 2.02% 6 2.19% 6 2.21% 6
==========================================
Total expenses ....................................................................... 2.02% 6 2.19% 6 2.21% 6
==========================================
Net investment income ................................................................ 3.58% 6 3.90% 6 3.47% 6
==========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................................................... $ 2,081 $ 2,329 $ 1,411
==========================================
Portfolio turnover ................................................................... 5% 19% 22%
==========================================
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 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
60 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock Florida Municipal Bond Fund
Investor C1
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 9.84 $ 10.21 $ 10.26 $ 10.45 $ 10.14 $ 10.04 $ 10.18
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.18 0.36 0.41 0.39 0.43 0.47 0.47
Net realized and unrealized gain (loss) . (1.20) (0.40) (0.08) (0.19) 0.31 0.10 (0.14)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (1.02) (0.04) 0.33 0.20 0.74 0.57 0.33
--------------------------------------------------------------------------------------
Dividends from net investment income .... (0.19) (0.33) (0.38) (0.39) (0.43) (0.47) (0.47)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 8.63 $ 9.84 $ 10.21 $ 10.26 $ 10.45 $ 10.14 $ 10.04
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (10.50)% 3 (0.37)% 3 3.26% 1.98% 7.44% 5.70% 3.24%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 1.47% 5 1.44% 5 1.44% 1.39% 1.40% 1.38% 1.38%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 1.61% 5 1.76% 5 1.75% 1.62% 1.65% 1.50% 1.54%
======================================================================================
Total expenses .......................... 1.62% 5 1.76% 5 1.75% 1.62% 1.65% 1.50% 1.54%
======================================================================================
Net investment income ................... 3.98% 5 4.30% 5 3.91% 3.80% 4.17% 4.54% 4.57%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 9,217 $ 11,504 $ 15,377 $ 17,472 $ 16,229 $ 13,381 $ 14,759
======================================================================================
Portfolio turnover ...................... 5% 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.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 61
Financial Highlights (continued) BlackRock New Jersey Municipal Bond Fund
Institutional
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.30 $ 10.58 $ 10.64 $ 10.73 $ 10.24 $ 10.21 $ 10.43
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.21 0.39 0.51 0.45 0.48 0.52 0.50
Net realized and unrealized gain (loss) . (1.02) (0.28) (0.11) (0.09) 0.48 0.02 (0.21)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.81) 0.11 0.40 0.36 0.96 0.54 0.29
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.23) (0.39) (0.46) (0.45) (0.47) (0.51) (0.51)
Net realized gain ................... -- -- -- (0.00) 2 -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.23) (0.39) (0.46) (0.45) (0.47) (0.51) (0.51)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.26 $ 10.30 $ 10.58 $ 10.64 $ 10.73 $ 10.24 $ 10.21
======================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (7.97)% 4 1.08% 4 3.80% 3.46% 9.60% 5.35% 2.75%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 5 .................... 0.67% 6 0.66% 6 0.61% 0.81% 0.83% 0.81% 0.83%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 0.70% 6 0.84% 6 0.95% 0.93% 1.03% 0.97% 1.03%
======================================================================================
Total expenses .......................... 0.71% 6 0.86% 6 1.04% 0.93% 1.04% 0.98% 1.03%
======================================================================================
Net investment income ................... 4.33% 6 4.50% 6 4.60% 4.26% 4.54% 4.93% 4.88%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $156,875 $179,560 $173,234 $ 33,316 $ 25,325 $ 15,166 $ 23,582
======================================================================================
Portfolio turnover ...................... 6% 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.
62 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock New Jersey Municipal Bond Fund
Service
------------------------------------------
Six Months Period Period
Ended August 1, October 2,
November 30, 2007 to 2006 1 to
2008 May 31, July 31,
(Unaudited) 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................. $ 10.30 $ 10.58 $ 10.84
------------------------------------------
Net investment income 2 .............................................................. 0.20 0.38 0.37
Net realized and unrealized loss ..................................................... (1.02) (0.28) (0.26)
------------------------------------------
Net increase (decrease) from investment operations ................................... (0.82) 0.10 0.11
------------------------------------------
Dividends from net investment income ................................................. (0.22) (0.38) (0.37)
------------------------------------------
Net asset value, end of period ....................................................... $ 9.26 $ 10.30 $ 10.58
==========================================
===================================================================================================================================
Total Investment Return
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................................. (8.06)% 3 0.92% 3 0.96% 3
==========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees 4 .............................................. 0.85% 5 0.85% 5 0.85% 5
==========================================
Total expenses after waiver and fees paid indirectly ................................. 0.89% 5 1.03% 5 1.19% 5
==========================================
Total expenses ....................................................................... 1.03% 5 1.17% 5 1.37% 5
==========================================
Net investment income ................................................................ 4.14% 5 4.32% 5 4.36% 5
==========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................................................... $ 9,704 $ 11,569 $ 12,849
==========================================
Portfolio turnover ................................................................... 6% 11% 15%
==========================================
1 Commencement of operations.
2 Based on average shares outstanding.
3 Aggregate total investment return.
4 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
5 Annualized.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 63
Financial Highlights (continued) BlackRock New Jersey Municipal Bond Fund
Investor A
------------------------------------------
Six Months Period Period
Ended August 1, October 2,
November 30, 2007 to 2006 1 to
2008 May 31, July 31,
(Unaudited) 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................. $ 10.31 $ 10.59 $ 10.85
------------------------------------------
Net investment income 2 .............................................................. 0.21 0.37 0.36
Net realized and unrealized loss ..................................................... (1.04) (0.27) (0.25)
------------------------------------------
Net increase (decrease) from investment operations ................................... (0.83) 0.10 0.11
------------------------------------------
Dividends from net investment income ................................................. (0.22) (0.38) (0.37)
------------------------------------------
Net asset value, end of period ....................................................... $ 9.26 $ 10.31 $ 10.59
==========================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................................. (8.15)% 4 0.93% 4 0.97% 4
==========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees 5 .............................................. 0.85% 6 0.84% 6 0.85% 6
==========================================
Total expenses after waiver and fees paid indirectly ................................. 0.89% 6 1.02% 6 1.19% 6
==========================================
Total expenses ....................................................................... 0.99% 6 1.13% 6 1.32% 6
==========================================
Net investment income ................................................................ 4.15% 6 4.32% 6 4.37% 6
==========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................................................... $ 19,297 $ 21,564 $ 15,693
==========================================
Portfolio turnover ................................................................... 6% 11% 15%
==========================================
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 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
64 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock New Jersey Municipal Bond Fund
Investor A1
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.31 $ 10.59 $ 10.66 $ 10.73 $ 10.24 $ 10.22 $ 10.43
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.21 0.39 0.48 0.44 0.47 0.51 0.50
Net realized and unrealized gain (loss) . (1.02) (0.28) (0.10) (0.07) 0.48 0.01 (0.21)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.81) 0.11 0.38 0.37 0.95 0.52 0.29
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.23) (0.39) (0.45) (0.44) (0.46) (0.50) (0.50)
Net realized gain ................... -- -- -- (0.00) 2 -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.23) (0.39) (0.45) (0.44) (0.46) (0.50) (0.50)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.27 $ 10.31 $ 10.59 $ 10.66 $ 10.73 $ 10.24 $ 10.22
======================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (7.98)% 4 1.05% 4 3.60% 3.55% 9.49% 5.14% 2.76%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 5 .................... 0.70% 6 0.70% 6 0.74% 0.91% 0.93% 0.91% 0.93%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 0.74% 6 0.88% 6 1.08% 1.03% 1.13% 1.08% 1.13%
======================================================================================
Total expenses .......................... 0.86% 6 1.01% 6 1.19% 1.03% 1.14% 1.08% 1.13%
======================================================================================
Net investment income ................... 4.29% 6 4.47% 6 4.46% 4.16% 4.45% 4.85% 4.79%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 34,034 $ 38,082 $ 39,546 $ 40,676 $ 34,618 $ 32,863 $ 27,868
======================================================================================
Portfolio turnover ...................... 6% 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.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 65
Financial Highlights (continued) BlackRock New Jersey Municipal Bond Fund
Investor B
------------------------------------------
Six Months Period Period
Ended August 1, October 2,
November 30, 2007 to 2006 1 to
2008 May 31, July 31,
(Unaudited) 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................. $ 10.30 $ 10.58 $ 10.84
------------------------------------------
Net investment income 2 .............................................................. 0.17 0.31 0.31
Net realized and unrealized loss ..................................................... (1.03) (0.28) (0.27)
------------------------------------------
Net increase (decrease) from investment operations ................................... (0.86) 0.03 0.04
------------------------------------------
Dividends from net investment income ................................................. (0.18) (0.31) (0.30)
------------------------------------------
Net asset value, end of period ....................................................... $ 9.26 $ 10.30 $ 10.58
==========================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................................. (8.40)% 4 0.31% 4 0.34% 4
==========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees 5 .............................................. 1.60% 6 1.57% 6 1.60% 6
==========================================
Total expenses after waiver and fees paid indirectly ................................. 1.64% 6 1.75% 6 1.94% 6
==========================================
Total expenses ....................................................................... 1.77% 6 1.89% 6 2.09% 6
==========================================
Net investment income ................................................................ 3.38% 6 3.59% 6 3.61% 6
==========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................................................... $ 5,123 $ 6,869 $ 8,622
==========================================
Portfolio turnover ................................................................... 6% 11% 15%
==========================================
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 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.
66 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock New Jersey Municipal Bond Fund
Investor B1
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.30 $ 10.58 $ 10.65 $ 10.73 $ 10.24 $ 10.22 $ 10.43
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.19 0.36 0.44 0.40 0.43 0.46 0.46
Net realized and unrealized gain (loss) . (1.02) (0.29) (0.10) (0.09) 0.48 0.02 (0.22)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.83) 0.07 0.34 0.31 0.91 0.48 0.24
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.21) (0.35) (0.41) (0.39) (0.42) (0.46) (0.45)
Net realized gain ................... -- -- -- (0.00) 2 -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.21) (0.35) (0.41) (0.39) (0.42) (0.46) (0.45)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.26 $ 10.30 $ 10.58 $ 10.65 $ 10.73 $ 10.24 $ 10.22
======================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (8.17)% 4 0.71% 4 3.19% 3.03% 9.04% 4.71% 2.34%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 5 .................... 1.10% 6 1.10% 6 1.14% 1.33% 1.34% 1.32% 1.34%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 1.14% 6 1.28% 6 1.48% 1.44% 1.54% 1.48% 1.54%
======================================================================================
Total expenses .......................... 1.27% 6 1.41% 6 1.60% 1.44% 1.55% 1.49% 1.54%
======================================================================================
Net investment income ................... 3.89% 6 4.07% 6 4.05% 3.75% 4.06% 4.44% 4.37%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 9,587 $ 12,386 $ 15,723 $ 20,920 $ 26,893 $ 31,781 $ 44,968
======================================================================================
Portfolio turnover ...................... 6% 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.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 67
Financial Highlights (continued) BlackRock New Jersey Municipal Bond Fund
Investor C
------------------------------------------
Six Months Period Period
Ended August 1, October 2,
November 30, 2007 to 2006 1 to
2008 May 31, July 31,
(Unaudited) 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................. $ 10.30 $ 10.57 $ 10.84
------------------------------------------
Net investment income 2 .............................................................. 0.17 0.31 0.30
Net realized and unrealized loss ..................................................... (1.04) (0.27) (0.27)
------------------------------------------
Net increase (decrease) from investment operations ................................... (0.87) 0.04 0.03
------------------------------------------
Dividends from net investment income ................................................. (0.18) (0.31) (0.30)
------------------------------------------
Net asset value, end of period ....................................................... $ 9.25 $ 10.30 $ 10.57
==========================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................................. (8.50)% 4 0.40% 4 0.25% 4
==========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees 5 .............................................. 1.60% 6 1.58% 6 1.60% 6
==========================================
Total expenses after waiver and fees paid indirectly ................................. 1.64% 6 1.76% 6 1.94% 6
==========================================
Total expenses ....................................................................... 1.74% 6 1.89% 6 2.09% 6
==========================================
Net investment income ................................................................ 3.41% 6 3.57% 6 3.63% 6
==========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................................................... $ 11,827 $ 10,480 $ 7,253
==========================================
Portfolio turnover ................................................................... 6% 11% 15%
==========================================
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 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
68 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock New Jersey Municipal Bond Fund
Investor C1
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.30 $ 10.58 $ 10.64 $ 10.73 $ 10.24 $ 10.21 $ 10.42
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.19 0.35 0.43 0.39 0.41 0.45 0.45
Net realized and unrealized gain (loss) . (1.03) (0.28) (0.09) (0.10) 0.49 0.02 (0.22)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.84) 0.07 0.34 0.29 0.90 0.47 0.23
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.20) (0.35) (0.40) (0.38) (0.41) (0.44) (0.44)
Net realized gain ................... -- -- -- (0.00) 2 -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.20) (0.35) (0.40) (0.38) (0.41) (0.44) (0.44)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.26 $ 10.30 $ 10.58 $ 10.64 $ 10.73 $ 10.24 $ 10.21
======================================================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (8.22)% 4 0.63% 4 3.18% 2.83% 8.94% 4.71% 2.24%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 5 .................... 1.20% 6 1.20% 6 1.24% 1.42% 1.44% 1.42% 1.44%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 1.24% 6 1.37% 6 1.58% 1.53% 1.64% 1.58% 1.63%
======================================================================================
Total expenses .......................... 1.34% 6 1.49% 6 1.68% 1.54% 1.65% 1.59% 1.64%
======================================================================================
Net investment income ................... 3.79% 6 3.97% 6 3.95% 3.65% 3.94% 4.34% 4.28%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 14,229 $ 16,232 $ 18,648 $ 19,634 $ 16,040 $ 14,903 $ 15,505
======================================================================================
Portfolio turnover ...................... 6% 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.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 69
Financial Highlights (continued) BlackRock Pennsylvania Municipal Bond Fund
Institutional
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.79 $ 11.13 $ 11.18 $ 11.39 $ 11.12 $ 11.03 $ 11.16
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.23 0.44 0.52 0.50 0.51 0.52 0.54
Net realized and unrealized gain (loss) . (1.06) (0.31) (0.08) (0.21) 0.27 0.08 (0.13)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.83) 0.13 0.44 0.29 0.78 0.60 0.41
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.24) (0.44) (0.49) (0.50) (0.51) (0.51) (0.54)
Net realized gain ................... -- (0.03) -- -- -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.24) (0.47) (0.49) (0.50) (0.51) (0.51) (0.54)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.72 $ 10.79 $ 11.13 $ 11.18 $ 11.39 $ 11.12 $ 11.03
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (7.79)% 3 1.18% 3 4.01% 2.59% 7.17% 5.57% 3.69%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 0.61% 5 0.60% 5 0.60% 0.88% 0.91% 0.88% 0.88%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 0.66% 5 0.90% 5 1.05% 1.22% 1.13% 0.96% 1.00%
======================================================================================
Total expenses .......................... 0.68% 5 0.92% 5 1.09% 1.23% 1.14% 0.98% 1.01%
======================================================================================
Net investment income ................... 4.41% 5 4.84% 5 4.51% 4.44% 4.55% 4.60% 4.81%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $428,391 $484,861 $486,395 $ 11,410 $ 9,939 $ 10,536 $ 11,296
======================================================================================
Portfolio turnover ...................... 7% 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.
70 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock Pennsylvania Municipal Bond Fund
Service Investor A
--------------------------------------- --------------------------------------
Six Months Period Period Six Months Period Period
Ended August 1, October 2, Ended August 1, October 2,
November 30, 2007 to 2006 1 to November 30, 2007 to 2006 1 to
2008 May 31, July 31, 2008 May 31, July 31,
(Unaudited) 2008 2007 (Unaudited) 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ............ $ 10.80 $ 11.13 $ 11.35 $ 10.81 $ 11.14 $ 11.36
------------------------------------ -----------------------------------
Net investment income 2 ......................... 0.21 0.42 0.38 0.22 0.42 0.38
Net realized and unrealized loss ................ (1.06) (0.30) (0.21) (1.07) (0.30) (0.21)
------------------------------------ -----------------------------------
Net increase (decrease) from investment
operations .................................... (0.85) 0.12 0.17 (0.85) 0.12 0.17
------------------------------------ -----------------------------------
Dividends and distributions from:
Net investment income ....................... (0.23) (0.42) (0.39) (0.23) (0.42) (0.39)
Net realized gain ........................... -- (0.03) -- -- (0.03) --
------------------------------------ -----------------------------------
Total dividends and distributions ............... (0.23) (0.45) (0.39) (0.23) (0.45) (0.39)
------------------------------------ -----------------------------------
Net asset value, end of period .................. $ 9.72 $ 10.80 $ 11.13 $ 9.73 $ 10.81 $ 11.14
==================================== =====================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ........................ (7.98)% 4 1.09% 4 1.48% 4 (7.98)% 4 1.07% 4 1.49% 4
==================================== =====================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 5 ............................ 0.85% 6 0.82% 6 0.84% 6 0.85% 6 0.84% 6 0.83% 6
==================================== =====================================
Total expenses after waiver and fees paid
indirectly .................................... 0.89% 6 1.12% 6 1.29% 6 0.89% 6 1.14% 6 1.28% 6
==================================== =====================================
Total expenses .................................. 0.96% 6 1.17% 6 1.37% 6 0.98% 6 1.21% 6 1.39% 6
==================================== =====================================
Net investment income ........................... 4.17% 6 4.57% 6 4.27% 6 4.17% 6 4.59% 6 4.28% 6
==================================== =====================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ................. $ 2,525 $ 2,435 $ 3,316 $ 26,321 $ 28,827 $ 27,782
==================================== =====================================
Portfolio turnover .............................. 7% 44% 46% 7% 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 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 71
Financial Highlights (continued) BlackRock Pennsylvania Municipal Bond Fund
Investor A1
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.81 $ 11.14 $ 11.20 $ 11.41 $ 11.13 $ 11.05 $ 11.17
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.22 0.44 0.50 0.49 0.50 0.51 0.53
Net realized and unrealized gain (loss) . (1.07) (0.31) (0.07) (0.26) 0.28 0.08 (0.12)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.85) 0.13 0.43 0.23 0.78 0.59 0.41
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.23) (0.43) (0.49) (0.44) (0.50) (0.51) (0.53)
Net realized gain ................... -- (0.03) -- -- -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.23) (0.46) (0.49) (0.44) (0.50) (0.51) (0.53)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.73 $ 10.81 $ 11.14 $ 11.20 $ 11.41 $ 11.13 $ 11.05
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (7.91)% 3 1.19% 3 3.81% 2.49% 7.16% 5.37% 3.69%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 0.70% 5 0.70% 5 0.76% 0.98% 1.01% 0.98% 0.98%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 0.75% 5 0.99% 5 1.21% 1.32% 1.23% 1.06% 1.10%
======================================================================================
Total expenses .......................... 0.84% 5 1.08% 5 1.28% 1.33% 1.24% 1.08% 1.11%
======================================================================================
Net investment income ................... 4.32% 5 4.74% 5 4.40% 4.34% 4.45% 4.50% 4.69%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 22,105 $ 25,560 $ 27,931 $ 26,987 $ 26,024 $ 25,432 $ 23,460
======================================================================================
Portfolio turnover ...................... 7% 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.
72 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock Pennsylvania Municipal Bond Fund
Investor B
------------------------------------------
Six Months Period Period
Ended August 1, October 2,
November 30, 2007 to 2006 1 to
2008 May 31, July 31,
(Unaudited) 2008 2007
==================================================================================================================================
Per Share Operating Performance
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................. $ 10.80 $ 11.13 $ 11.35
------------------------------------------
Net investment income 2 .............................................................. 0.18 0.37 0.33
Net realized and unrealized loss ..................................................... (1.07) (0.31) (0.22)
------------------------------------------
Net increase (decrease) from investment operations ................................... (0.89) 0.06 0.11
------------------------------------------
Dividends and distributions from:
Net investment income ............................................................ (0.19) (0.36) (0.33)
Net realized gain ................................................................ -- (0.03) --
------------------------------------------
Total dividends and distributions .................................................... (0.19) (0.39) (0.33)
------------------------------------------
Net asset value, end of period ....................................................... $ 9.72 $ 10.80 $ 11.13
==========================================
==================================================================================================================================
Total Investment Return 3
- ----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................................. (8.32)% 4 0.57% 4 0.93% 4
==========================================
==================================================================================================================================
Ratios to Average Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees 5 .............................................. 1.58% 6 1.45% 6 1.51% 6
==========================================
Total expenses after waiver and fees paid indirectly ................................. 1.63% 6 1.74% 6 1.96% 6
==========================================
Total expenses ....................................................................... 1.75% 6 1.86% 6 2.19% 6
==========================================
Net investment income ................................................................ 3.42% 6 3.99% 6 3.60% 6
==========================================
==================================================================================================================================
Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................................................... $ 1,731 $ 3,447 $ 5,206
==========================================
Portfolio turnover ................................................................... 7% 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 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 73
Financial Highlights (continued) BlackRock Pennsylvania Municipal Bond Fund
Investor B1
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.79 $ 11.13 $ 11.18 $ 11.39 $ 11.12 $ 11.03 $ 11.16
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.20 0.40 0.45 0.44 0.46 0.46 0.49
Net realized and unrealized gain (loss) . (1.06) (0.32) (0.06) (0.21) 0.27 0.09 (0.14)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.86) 0.08 0.39 0.23 0.73 0.55 0.35
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.21) (0.39) (0.44) (0.44) (0.46) (0.46) (0.48)
Net realized gain ................... -- (0.03) -- -- -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.21) (0.42) (0.44) (0.44) (0.46) (0.46) (0.48)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.72 $ 10.79 $ 11.13 $ 11.18 $ 11.39 $ 11.12 $ 11.03
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (8.02)% 3 0.76% 3 3.49% 2.07% 6.63% 5.04% 3.18%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 1.10% 5 1.10% 5 1.17% 1.39% 1.42% 1.38% 1.39%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 1.14% 5 1.39% 5 1.62% 1.73% 1.64% 1.47% 1.51%
======================================================================================
Total expenses .......................... 1.24% 5 1.47% 5 1.70% 1.74% 1.65% 1.48% 1.52%
======================================================================================
Net investment income ................... 3.91% 5 4.34% 5 4.00% 3.93% 4.05% 4.09% 4.31%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 7,661 $ 9,984 $ 12,856 $ 18,402 $ 23,965 $ 28,749 $ 43,099
======================================================================================
Portfolio turnover ...................... 7% 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.
74 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock Pennsylvania Municipal Bond Fund
Investor C
------------------------------------------
Six Months Period Period
Ended August 1, October 2,
November 30, 2007 to 2006 1 to
2008 May 31, July 31,
(Unaudited) 2008 2007
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ................................................. $ 10.80 $ 11.14 $ 11.35
------------------------------------------
Net investment income 2 .............................................................. 0.18 0.35 0.30
Net realized and unrealized loss ..................................................... (1.06) (0.31) (0.19)
------------------------------------------
Net increase (decrease) from investment operations ................................... (0.88) 0.04 0.11
------------------------------------------
Dividends and distributions from:
Net investment income ............................................................ (0.19) (0.35) (0.32)
Net realized gain ................................................................ -- (0.03) --
------------------------------------------
Total dividends and distributions .................................................... (0.19) (0.38) (0.32)
------------------------------------------
Net asset value, end of period ....................................................... $ 9.73 $ 10.80 $ 11.14
==========================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ............................................................. (8.24)% 4 0.34% 4 0.95% 4
==========================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees 5 .............................................. 1.60% 6 1.59% 6 1.60% 6
==========================================
Total expenses after waiver and fees paid indirectly ................................. 1.65% 6 1.89% 6 2.04% 6
==========================================
Total expenses ....................................................................... 1.72% 6 1.96% 6 2.15% 6
==========================================
Net investment income ................................................................ 3.42% 6 3.83% 6 3.53% 6
==========================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ...................................................... $ 7,568 $ 7,166 $ 4,160
==========================================
Portfolio turnover ................................................................... 7% 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 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 75
Financial Highlights (continued) BlackRock Pennsylvania Municipal Bond Fund
Investor C1
-----------------------------------------------------------------------------------------
Six Months Period
Ended August 1,
November 30, 2007 to Year Ended July 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.79 $ 11.13 $ 11.19 $ 11.39 $ 11.12 $ 11.03 $ 11.16
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.20 0.39 0.44 0.43 0.45 0.45 0.47
Net realized and unrealized gain (loss) . (1.06) (0.32) (0.07) (0.20) 0.26 0.09 (0.13)
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.86) 0.07 0.37 0.23 0.71 0.54 0.34
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.21) (0.38) (0.43) (0.43) (0.44) (0.45) (0.47)
Net realized gain ................... -- (0.03) -- -- -- -- --
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.21) (0.41) (0.43) (0.43) (0.44) (0.45) (0.47)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.72 $ 10.79 $ 11.13 $ 11.19 $ 11.39 $ 11.12 $ 11.03
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (8.06)% 3 0.68% 3 3.29% 2.06% 6.53% 4.93% 3.07%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 1.20% 5 1.20% 5 1.26% 1.48% 1.52% 1.49% 1.49%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 1.25% 5 1.49% 5 1.71% 1.82% 1.74% 1.57% 1.61%
======================================================================================
Total expenses .......................... 1.32% 5 1.56% 5 1.77% 1.84% 1.75% 1.59% 1.62%
======================================================================================
Net investment income ................... 3.82% 5 4.24% 5 3.90% 3.83% 3.94% 3.99% 4.18%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 11,046 $ 12,736 $ 15,327 $ 15,642 $ 13,626 $ 13,260 $ 13,309
======================================================================================
Portfolio turnover ...................... 7% 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.
76 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock Intermediate Municipal Fund
Institutional
---------------------------------------------------------------------------------------
Six Months Period
Ended November 1,
November 30, 2007 to Year Ended October 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.13 $ 10.17 $ 10.28 $ 10.36 $ 10.76 $ 10.71 $ 10.69
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.18 0.23 0.39 0.37 0.38 0.40 0.40
Net realized and unrealized gain (loss) . (0.72) (0.04) (0.12) 0.13 (0.34) 0.08 0.10
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.54) 0.19 0.27 0.50 0.04 0.48 0.50
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.18) (0.23) (0.38) (0.37) (0.38) (0.40) (0.41)
Net realized gain ................... -- -- -- (0.21) (0.06) (0.03) (0.07)
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.18) (0.23) (0.38) (0.58) (0.44) (0.43) (0.48)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.41 $ 10.13 $ 10.17 $ 10.28 $ 10.36 $ 10.76 $ 10.71
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (5.34)% 3 1.85% 3 2.69% 4.96% 0.40% 4.57% 4.77%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 0.72% 5 0.75% 5 0.75% 0.73% 0.74% 0.79% 0.85%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 0.79% 5 0.84% 5 0.98% 1.11% 1.00% 0.91% 0.94%
======================================================================================
Total expenses .......................... 0.84% 5 0.89% 5 1.03% 1.16% 1.05% 0.94% 0.96%
======================================================================================
Net investment income ................... 3.62% 5 3.82% 5 3.81% 3.61% 3.63% 3.76% 3.80%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 86,024 $114,012 $120,499 $ 99,678 $100,831 $ 78,777 $ 44,372
======================================================================================
Portfolio turnover ...................... 3% 32% 54% 102% 162% 176% 179%
======================================================================================
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.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 77
Financial Highlights (continued) BlackRock Intermediate Municipal Fund
Investor A
------------------------------------------------------
Six Months Period Period
Ended November 1, October 2,
November 30, 2007 to Year Ended 2006 1 to
2008 May 31, October 31, October 31,
(Unaudited) 2008 2007 2006
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...................................... $ 10.13 $ 10.16 $ 10.27 $ 10.26
-----------------------------------------------------
Net investment income 2 ................................................... 0.16 0.22 0.36 0.02
Net realized and unrealized gain (loss) ................................... (0.72) (0.04) (0.11) 0.02
-----------------------------------------------------
Net increase (decrease) from investment operations ........................ (0.56) 0.18 0.25 0.04
-----------------------------------------------------
Dividends from net investment income ...................................... (0.17) (0.21) (0.36) (0.03)
-----------------------------------------------------
Net asset value, end of period ............................................ $ 9.40 $ 10.13 $ 10.16 $ 10.27
=====================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .................................................. (5.55)% 4 1.82% 4 2.43% 0.36% 4
=====================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees 5 ................................... 0.95% 6 0.97% 6 1.01% 0.97% 6
=====================================================
Total expenses after waiver and fees paid indirectly ...................... 1.02% 6 1.06% 6 1.23% 1.34% 6
=====================================================
Total expenses ............................................................ 1.07% 6 1.11% 6 1.28% 1.39% 6
=====================================================
Net investment income ..................................................... 3.40% 6 3.60% 6 3.54% 3.08% 6
=====================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ........................................... $ 5,756 $ 5,585 $ 2,786 $ 160
=====================================================
Portfolio turnover ........................................................ 3% 32% 54% 102%
=====================================================
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 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
78 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (continued) BlackRock Intermediate Municipal Fund
Investor A1
---------------------------------------------------------------------------------------
Six Months Period
Ended November 1,
November 30, 2007 to Year Ended October 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.13 $ 10.16 $ 10.28 $ 10.35 $ 10.76 $ 10.71 $ 10.69
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.17 0.22 0.38 0.35 0.38 0.39 0.40
Net realized and unrealized gain (loss) . (0.71) (0.03) (0.13) 0.15 (0.36) 0.08 0.09
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.54) 0.19 0.25 0.50 0.02 0.47 0.49
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.18) (0.22) (0.37) (0.36) (0.37) (0.39) (0.40)
Net realized gain ................... -- -- -- (0.21) (0.06) (0.03) (0.07)
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.18) (0.22) (0.37) (0.57) (0.43) (0.42) (0.47)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.41 $ 10.13 $ 10.16 $ 10.28 $ 10.35 $ 10.76 $ 10.71
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (5.39)% 3 1.89% 3 2.49% 4.96% 0.20% 4.47% 4.68%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 0.81% 5 0.85% 5 0.84% 0.83% 0.84% 0.89% 0.95%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 0.89% 5 0.94% 5 1.07% 1.20% 1.11% 1.01% 1.04%
======================================================================================
Total expenses .......................... 0.94% 5 0.99% 5 1.12% 1.25% 1.16% 1.04% 1.06%
======================================================================================
Net investment income ................... 3.53% 5 3.71% 5 3.71% 3.50% 3.54% 3.66% 3.70%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 49,604 $ 56,928 $ 60,208 $ 71,327 $ 48,524 $ 55,128 $ 51,786
======================================================================================
Portfolio turnover ...................... 3% 32% 54% 102% 162% 176% 179%
======================================================================================
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 trusts.
5 Annualized.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 79
Financial Highlights (continued) BlackRock Intermediate Municipal Fund
Investor B
---------------------------------------------------------------------------------------
Six Months Period
Ended November 1,
November 30, 2007 to Year Ended October 31,
2008 May 31, -------------------------------------------------------------
(Unaudited) 2008 2007 2006 2005 2004 2003
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period .... $ 10.13 $ 10.17 $ 10.28 $ 10.36 $ 10.76 $ 10.71 $ 10.69
--------------------------------------------------------------------------------------
Net investment income 1 ................. 0.16 0.21 0.36 0.34 0.35 0.37 0.38
Net realized and unrealized gain (loss) . (0.71) (0.04) (0.12) 0.15 (0.34) 0.08 0.09
--------------------------------------------------------------------------------------
Net increase (decrease) from investment
operations ............................ (0.55) 0.17 0.24 0.49 0.01 0.45 0.47
--------------------------------------------------------------------------------------
Dividends and distributions from:
Net investment income ............... (0.17) (0.21) (0.35) (0.36) (0.35) (0.37) (0.38)
Net realized gain ................... -- -- -- (0.21) (0.06) (0.03) (0.07)
--------------------------------------------------------------------------------------
Total dividends and distributions ....... (0.17) (0.21) (0.35) (0.57) (0.41) (0.40) (0.45)
--------------------------------------------------------------------------------------
Net asset value, end of period .......... $ 9.41 $ 10.13 $ 10.17 $ 10.28 $ 10.36 $ 10.76 $ 10.71
======================================================================================
===================================================================================================================================
Total Investment Return 2
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value ................ (5.49)% 3 1.66% 3 2.36% 4.64% 0.08% 4.24% 4.46%
======================================================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid
indirectly and excluding interest
expense and fees 4 .................... 1.04% 5 1.06% 5 1.06% 1.05% 1.05% 1.10% 1.17%
======================================================================================
Total expenses after waiver and fees paid
indirectly ............................ 1.11% 5 1.15% 5 1.29% 1.42% 1.32% 1.22% 1.26%
======================================================================================
Total expenses .......................... 1.16% 5 1.20% 5 1.34% 1.47% 1.37% 1.25% 1.27%
======================================================================================
Net investment income ................... 3.30% 5 3.50% 5 3.50% 3.30% 3.34% 3.45% 3.48%
======================================================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ......... $ 5,199 $ 6,186 $ 6,920 $ 9,760 $ 14,982 $ 21,623 $ 28,678
======================================================================================
Portfolio turnover ...................... 3% 32% 54% 102% 162% 176% 179%
======================================================================================
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 trusts.
5 Annualized.
See Notes to Financial Statements.
80 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Financial Highlights (concluded) BlackRock Intermediate Municipal Fund
Investor C
------------------------------------------------------
Six Months Period Period
Ended November 1, October 2,
November 30, 2007 to Year Ended 2006 1 to
2008 May 31, October 31, October 31,
(Unaudited) 2008 2007 2006
===================================================================================================================================
Per Share Operating Performance
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period ...................................... $ 10.13 $ 10.17 $ 10.28 $ 10.26
-----------------------------------------------------
Net investment income 2 ................................................... 0.13 0.17 0.28 0.01
Net realized and unrealized gain (loss) ................................... (0.71) (0.04) (0.11) 0.03
-----------------------------------------------------
Net increase (decrease) from investment operations ........................ (0.58) 0.13 0.17 0.04
-----------------------------------------------------
Dividends from net investment income ...................................... (0.14) (0.17) (0.28) (0.02)
-----------------------------------------------------
Net asset value, end of period ............................................ $ 9.41 $ 10.13 $ 10.17 $ 10.28
=====================================================
===================================================================================================================================
Total Investment Return 3
- -----------------------------------------------------------------------------------------------------------------------------------
Based on net asset value .................................................. (5.81)% 4 1.27% 4 1.67% 0.40% 4
=====================================================
===================================================================================================================================
Ratios to Average Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
Total expenses after waiver and fees paid indirectly and
excluding interest expense and fees 5 ................................... 1.71% 6 1.75% 6 1.75% 1.73% 6
=====================================================
Total expenses after waiver and fees paid indirectly ...................... 1.78% 6 1.83% 6 1.98% 2.09% 6
=====================================================
Total expenses ............................................................ 1.83% 6 1.88% 6 2.03% 2.14% 6
=====================================================
Net investment income ..................................................... 2.65% 6 2.82% 6 2.79% 2.36% 6
=====================================================
===================================================================================================================================
Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) ........................................... $ 7,633 $ 4,341 $ 2,074 $ 207
=====================================================
Portfolio turnover ........................................................ 3% 32% 54% 102%
=====================================================
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 Interest expense and fees relate to tender option bond trusts. See Note 1
of the Notes to Financial Statements for details of municipal bonds
transferred to tender option bond trusts.
6 Annualized.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 81
Notes to Financial Statements (Unaudited)
1. Organization and Significant Accounting Policies:
BlackRock California Insured Municipal Bond Fund of BlackRock California
Municipal Series Trust, BlackRock Florida Municipal Bond Fund, BlackRock New
Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund, each
a series of BlackRock Multi-State Municipal Series Trust, and BlackRock
Intermediate Municipal Fund, which is presently the only series of BlackRock
Municipal Series Trust (referred to as the "Funds" or individually as the
"Fund"), are registered under the Investment Company Act of 1940, as amended
(the "1940 Act"). BlackRock California Insured Municipal Bond Fund and BlackRock
Intermediate Municipal Fund are registered as diversified, open-end management
investment companies. BlackRock Florida Municipal Bond Fund, BlackRock New
Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund are
registered as non-diversified, open-end management investment companies.
BlackRock California Municipal Series Trust, BlackRock Multi-State Municipal
Series Trust and BlackRock Municipal Series Trust are organized as Massachusetts
business trusts. 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. 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 reinvestment. 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
each Fund's Board of Trustees (the "Board"). In determining the value of a
particular investment, pricing services may use certain information with respect
to transactions in such investments, quotations from bond dealers, pricing
matrixes, market transactions in comparable investments and information with
respect to various relationships between investments. Swap agreements are valued
utilizing quotes received daily by each Fund's pricing service, or through
brokers. Financial futures contracts traded on exchanges are valued at their
last sale price. Short-term securities are valued at amortized cost. Investments
in open-end investment companies are valued at net asset value each business
day.
In the event that application of these methods of valuation results in a price
for an investment which is deemed not to be representative of the market value
of such investment, the investment will be valued by a method approved by the
Board as reflecting fair value ("Fair Value Assets"). When determining the price
for Fair Value Assets the investment advisor and/or the sub-advisor seeks to
determine the price that each Fund might reasonably expect to receive from the
current sale of that asset in an arm's-length transaction. Fair value
determinations shall be based upon all available factors that the investment
advisor and/or 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 Funds 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 financial futures contracts for
investment purposes or to manage their interest rate risk. Futures
contracts are contracts for delayed delivery of securities at a specific
future date and at a specific price or yield. 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. The use of futures transactions involves the risk of an imperfect
correlation in the movements in the price of futures contracts, interest
rates and the underlying assets, and the possible inability of
counterparties to meet the terms of their contracts.
o Forward interest rate swaps -- The Funds may enter into forward interest
rate swaps for investment purposes. In a forward interest rate swap, the
Funds and the counterparty agree to make periodic net payments on a
specified notional contract amount, commencing on a specified future
effective date, unless terminated earlier. These periodic payments
received or made by the Funds are recorded in the accompanying Statements
of Operations as realized gains or losses, respectively. Forward interest
rate swaps are marked-to-market daily and changes in value are recorded as
unrealized appreciation (depreciation). When the forward interest rate
swap is terminated, the Funds will record a realized gain or loss equal to
the difference between the proceeds from (or cost of) the closing
transaction and the Funds' basis
82 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Notes to Financial Statements (continued)
in the contract, if any. Forward interest rate swap transactions involve,
to varying degrees, elements of credit and market risk in excess of the
amounts recognized on the Statements of Assets and Liabilities. Such risks
involve the possibility that there will be no liquid market for these
agreements, that the counterparty to the agreements may default on its
obligation to perform or disagree as to the meaning of the contractual
terms in the agreements, and that there may be unfavorable changes in
interest rates and/or market values associated with these transactions.
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. Since the value of securities purchased
may fluctuate prior to settlement, the Funds may be required to pay more at
settlement than the security is worth. In addition, the purchaser is not
entitled to any of the interest earned prior to settlement. When purchasing a
security on a delay-delivery basis, the Funds assume the rights and risks of
ownership of the security, including the risk of price and yield fluctuations.
Municipal Bonds Transferred to Tender Option Bond Trusts: The Funds may leverage
their assets through the use of tender option bond trusts ("TOBs"). A TOB is
established by a third party sponsor forming a special purpose entity, into
which one or more funds, or an agent on behalf of the funds, transfers municipal
securities. Other funds managed by the investment advisor may also contribute
municipal securities to a TOB into which 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. 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 Funds. The cash received by the TOB from the sale of the short-term
floating rate certificates, less transaction expenses, is paid to the Funds,
which 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 each Fund's Schedule of Investments and the proceeds from the transaction are
reported as a liability for trust certificates.
Interest income from the underlying security is recorded by the Funds on an
accrual basis. Interest expense incurred on the secured borrowing and other
expenses related to remarketing, administration and trustee services to a TOB
are reported as expenses of the Funds. The floating rate certificates have
interest rates that generally reset weekly and their holders have the option to
tender certificates to the TOB for redemption at par at each reset date. At
November 30, 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
Securities for Range of
Transferred Trust Interest
to TOBs Certificates Rates
- --------------------------------------------------------------------------------
BlackRock California Insured
Municipal Bond Fund ............ $16,710,409 $10,933,523 2.428% - 2.718%
BlackRock Florida Municipal
Bond Fund ...................... $ 5,164,413 $ 2,320,000 2.455%
BlackRock New Jersey
Municipal Bond Fund ............ $ 1,910,673 $ 1,075,000 2.988%
- --------------------------------------------------------------------------------
Financial transactions executed through TOBs generally will underperform the
market for fixed rate municipal bonds when short-term interest rates rise, but
tend to outperform the market for fixed rate bonds when short-term interest
rates decline or remain relatively stable. Should short-term interest rates
rise, the Funds' investment in TOBs likely will adversely affect the Funds'
investment income and distributions 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 and Collateralization: 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, financial futures contracts and swaps), each Fund will,
consistent with certain interpretive letters issued by the SEC, designate on its
books and records cash or other liquid securities having a market value at least
equal to the amount that would otherwise be required to be physically
segregated. Furthermore, based on requirements and agreements with certain
exchanges and third party broker-dealers, the Funds may also be required to
deliver or deposit securities as collateral for certain investments (e.g.,
financial futures contracts and swaps).
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 83
Notes to Financial Statements (continued)
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 recorded 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.
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 August 31, 2005
through August 31, 2007 for California Insured Municipal Bond Fund, July 31,
2005 through July 31, 2007 for Florida, New Jersey, and Pennsylvania Municipal
Bond Funds, and October 31, 2005 through October 31, 2007 for Intermediate
Municipal Fund. 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 Pronouncement: In March 2008, Statement of Financial
Accounting Standards No. 161, "Disclosures about Derivative Instruments and
Hedging Activities -- an amendment of FASB Statement No. 133" ("FAS 161"), was
issued. FAS 161 is intended to improve financial reporting for derivative
instruments by requiring enhanced 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. FAS 161 is effective for financial statements issued for
fiscal years and interim periods beginning after November 15, 2008. The impact
on the Funds' financial statement disclosures, if any, is currently being
assessed.
Other: Expenses directly related to a Fund or its classes are charged to that
Fund or class. Other operating expenses shared by several funds are pro-rated
among those funds on the basis of relative net assets or other appropriate
methods. Other expenses of the Funds are allocated daily to each class based on
its relative net assets.
2. Investment Advisory Agreement and Other Transactions with Affiliates:
Each Fund has entered into an Investment Advisory Agreement with BlackRock
Advisors, LLC (the "Advisor"), an indirect, wholly owned subsidiary of
BlackRock, Inc., to provide investment advisory and administration services.
Merrill Lynch & Co., Inc. ("Merrill Lynch"), a wholly owned subsidiary of Bank
of America Corporation ("BAC"), and The PNC Financial Services Group, Inc.
("PNC") are the largest stockholders of BlackRock, Inc.
The Advisor is responsible for the Fund's portfolio and provides the necessary
personnel, facilities, equipment and certain other services necessary to the
operation of the Funds. For such services, BlackRock California Insured
Municipal Bond Fund, BlackRock Florida Municipal Bond Fund, BlackRock New Jersey
Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund pay the
Advisor a monthly fee based upon the average daily value of each Fund's net
assets at the following annual rates: 0.55% of each Fund's 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. Intermediate Municipal Fund pays the Advisor a
monthly fee at an annual rate of 0.55% of the average daily value of its net
assets.
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).
The Advisor, with respect to BlackRock Intermediate Municipal Fund, has
contractually agreed to waive 0.05% of the average daily value of the Fund's net
assets.
84 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Notes to Financial Statements (continued)
For the six months ended November 30, 2008, the waivers, which are included in
fees waived by advisor on the Statements of Operations, were as follows:
- --------------------------------------------------------------------------------
Fees Waived
by Advisor
- --------------------------------------------------------------------------------
BlackRock New Jersey Municipal Bond Fund .......................... $62,562
BlackRock Pennsylvania Municipal Bond Fund ........................ $26,330
BlackRock Intermediate Municipal Fund ............................. $44,427
- --------------------------------------------------------------------------------
For BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania
Municipal Bond Fund, 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 six months ended
November 30, 2008 the amounts were as follows:
- --------------------------------------------------------------------------------
Fees Waived
by Advisor
- --------------------------------------------------------------------------------
BlackRock California Insured Municipal Bond Fund .................. $31,433
BlackRock Florida Municipal Bond Fund ............................. $ 1,959
BlackRock New Jersey Municipal Bond Fund .......................... $11,583
BlackRock Pennsylvania Municipal Bond Fund ........................ $65,432
BlackRock Intermediate Municipal Fund ............................. $ 2,125
- --------------------------------------------------------------------------------
The Advisor has entered into a separate sub-advisory agreement with BlackRock
Investment Management, LLC ("BIM"), an affiliate of the Advisor, under which the
Advisor pays BIM for services it provides, a monthly fee that is a percentage of
the investment advisory fee paid by the Funds to the Advisor.
For the six months ended November 30, 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 California Insured Municipal Bond Fund .................. $2,845
BlackRock Florida Municipal Bond Fund ............................. $ 710
BlackRock New Jersey Municipal Bond Fund .......................... $2,292
BlackRock Pennsylvania Municipal Bond Fund ........................ $4,571
BlackRock Intermediate Municipal Fund ............................. $1,422
- --------------------------------------------------------------------------------
Effective October 1, 2008, each Fund has entered into a Distribution Agreement
and Distribution Plans with BlackRock Investments, Inc. ("BII"), which replaced
FAM Distributors, Inc. ("FAMD") and BlackRock Distributors, Inc. and its
affiliates ("BDI") (collectively, the "Distributor") as sole distributor of the
Funds. FAMD is a wholly owned subsidiary of Merrill Lynch Group, Inc. BII and
BDI are affiliates of BlackRock, Inc. The service and distribution fees did not
change as a result of this transaction.
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
California BlackRock BlackRock BlackRock BlackRock
Insured Florida New Jersey Pennsylvania Intermediate
Municipal Municipal Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund Bond Fund Fund
- --------------------------------------------------------------------------------
Service ...... -- -- 0.25% 0.25% --
Investor A ... 0.25% 0.25% 0.25% 0.25% 0.25%
Investor A1 .. 0.10% 0.10% 0.10% 0.10% 0.10%
Investor B ... 0.25% 0.25% 0.25% 0.25% 0.20%
Investor B1 .. -- -- 0.25% 0.25% --
Investor C ... 0.25% 0.25% 0.25% 0.25% 0.25%
Investor C1 .. 0.25% 0.25% 0.25% 0.25% --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Distribution Fees
- --------------------------------------------------------------------------------
BlackRock
California BlackRock BlackRock BlackRock BlackRock
Insured Florida New Jersey Pennsylvania Intermediate
Municipal Municipal Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund Bond Fund Fund
- --------------------------------------------------------------------------------
Investor B ... 0.25% 0.25% 0.75% 0.75% 0.10%
Investor B1 .. -- -- 0.25% 0.25% --
Investor C ... 0.75% 0.75% 0.75% 0.75% 0.75%
Investor C1 .. 0.35% 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.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 85
Notes to Financial Statements (continued)
For the six months ended November 30, 2008, affiliates earned underwriting
discounts and direct commissions and dealer concessions on sales of each of the
Funds' Investor A Shares, which totaled as follows:
- --------------------------------------------------------------------------------
BlackRock
California BlackRock BlackRock BlackRock BlackRock
Insured Florida New Jersey Pennsylvania Intermediate
Municipal Municipal Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund Bond Fund Fund
- --------------------------------------------------------------------------------
Investor A ... $52,221 $ 9,895 $13,806 $32,992 $21,516
- --------------------------------------------------------------------------------
For the six months ended November 30, 2008, affiliates received contingent
deferred sales charges relating to transactions in Investor B, Investor B1,
Investor C and Investor C1 Shares as follows:
- --------------------------------------------------------------------------------
BlackRock
California BlackRock BlackRock BlackRock BlackRock
Insured Florida New Jersey Pennsylvania Intermediate
Municipal Municipal Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund Bond Fund Fund
- --------------------------------------------------------------------------------
Investor B ... $9,076 $2,616 $1,757 $1,984 $ 420
Investor B1 .. -- -- $3,426 $ 540 --
Investor C ... $3,646 $ 183 $ 72 $ 979 $1,869
Investor C1 .. -- $ 1 -- $ 394 --
- --------------------------------------------------------------------------------
These amounts include payments to Hilliard Lyons, which was considered an
affiliate for a portion of the year.
Furthermore, affiliates received contingent deferred sales charges relating to
transactions subject to front-end sales charge waivers relating to Investor A
and Investor A1 Shares as follows:
- --------------------------------------------------------------------------------
BlackRock
California BlackRock BlackRock BlackRock BlackRock
Insured Florida New Jersey Pennsylvania Intermediate
Municipal Municipal Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund Bond Fund Fund
- --------------------------------------------------------------------------------
Investor A ... $4,552 -- $ 344 -- --
Investor A1 .. $ 32 -- -- $ 120 --
- --------------------------------------------------------------------------------
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 mailing of shareholder reports, dividend and
distribution notices, and proxy materials for shareholders meetings, as well as
per account and per transaction fees related to servicing and maintenance of
shareholder accounts, including the issuing, redeeming and transferring of
shares of each class of the Funds, 12b-1 fee calculation, check writing,
anti-money laundering services, and customer identification services.
Pursuant to written agreements, certain affiliates provide the Funds with
sub-accounting, recordkeeping, sub-transfer agency and other 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 six months ended November 30, 2008, the Funds
paid the following fees in return for these services, which are a component of
the transfer agent fees in the accompanying Statements of Operations:
- --------------------------------------------------------------------------------
BlackRock California Insured Municipal Bond Fund .................... $49,673
BlackRock Florida Municipal Bond Fund ............................... $14,383
BlackRock New Jersey Municipal Bond Fund ............................ $17,587
BlackRock Pennsylvania Municipal Bond Fund .......................... $15,163
BlackRock Intermediate Municipal Fund ............................... $35,381
- --------------------------------------------------------------------------------
The Funds may earn income on positive cash balances in demand deposit accounts
that are maintained by the transfer agent on behalf of the Funds. For the six
months ended November 30, 2008, the Funds earned income, which is included in
income -- affiliated in the Statements of Operations, as follows:
- --------------------------------------------------------------------------------
BlackRock California Insured Municipal Bond Fund ..................... $ 104
BlackRock Florida Municipal Bond Fund ................................ $ 32
BlackRock New Jersey Municipal Bond Fund ............................. $1,199
BlackRock Pennsylvania Municipal Bond Fund ........................... $ 178
BlackRock Intermediate Municipal Fund ................................ $ 29
- --------------------------------------------------------------------------------
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 Fund shares. For the six months
ended November 30, 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
California BlackRock BlackRock BlackRock BlackRock
Insured Florida New Jersey Pennsylvania Intermediate
Municipal Municipal Municipal Municipal Municipal
Bond Fund Bond Fund Bond Fund Bond Fund Fund
- --------------------------------------------------------------------------------
Institutional $ 207 $ 114 $ 540 $1,386 $ 399
Service ...... -- -- $ 405 $ 35 --
Investor A ... $ 156 $ 30 $ 264 $ 426 $ 54
Investor A1 .. $2,052 $ 444 $ 426 $ 342 $ 486
Investor B ... $ 336 $ 126 $ 138 $ 60 $ 60
Investor B1 .. -- -- $ 132 $ 96 --
Investor C ... $ 84 $ 24 $ 102 $ 84 $ 35
Investor C1 .. $ 258 $ 96 $ 114 $ 90 --
- --------------------------------------------------------------------------------
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.
86 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Notes to Financial Statements (continued)
Certain officers and/or trustees of the Funds are officers and/or directors of
BlackRock, Inc. or its affiliates. The Funds reimburse the Advisor for
compensation paid to the Funds' Chief Compliance Officer.
3. Investments:
Purchases and sales of investments, excluding short-term securities, for the six
months ended November 30, 2008 were as follows:
- --------------------------------------------------------------------------------
Purchases Sales
- --------------------------------------------------------------------------------
BlackRock California Insured Municipal Bond Fund . $42,165,897 $73,595,177
BlackRock Florida Municipal Bond Fund ............ $ 4,819,627 $22,755,242
BlackRock New Jersey Municipal Bond Fund ......... $19,390,462 $16,766,303
BlackRock Pennsylvania Municipal Bond Fund ....... $37,345,389 $81,536,933
BlackRock Intermediate Municipal Fund ............ $ 5,333,340 $32,617,536
- --------------------------------------------------------------------------------
4. Short-Term Borrowings:
The Funds, along with certain other funds managed by the Advisor and its
affiliates, are party to a $500,000,000 credit agreement with a group of
lenders, which expired November 2008 and was subsequently renewed until November
2009. The Funds may borrow under the credit agreement to fund shareholder
redemptions and for other lawful purposes other than for leverage. The Funds may
borrow up to the maximum amount allowable under each Fund's current Prospectus
and Statement of Additional Information, subject to various other legal,
regulatory or contractual limits. The Funds pay a commitment fee of 0.08% per
annum based on the Funds' pro rata share of the unused portion of the credit
agreement, which is included in miscellaneous in the Statements of Operations.
Amounts borrowed under the credit agreement bear interest at a rate equal to the
higher of the (a) federal funds effective rate and (b) reserve adjusted one
month LIBOR, plus, in each case, the higher of (i) 1.50% and (ii) 50% of the CDX
Index (as defined in the credit agreement) in effect from time to time. The
Funds did not borrow under the credit agreement during the six months ended
November 30, 2008.
5. Capital Loss Carryforward:
As of May 31, 2008, the Funds had capital loss carryforwards available to offset
future realized capital gains through the indicated expirations dates:
- --------------------------------------------------------------------------------
BlackRock
California BlackRock BlackRock BlackRock BlackRock
Insured Florida New Jersey Pennsylvania Intermediate
Expires Municipal Municipal Municipal Municipal Municipal
May 31, Bond Fund Bond Fund Bond Fund Bond Fund Fund
- --------------------------------------------------------------------------------
2009 .. $ 452,651 $ 1,615,545 $ 5,171,785 $ 7,394,638 --
2010 .. -- -- 2,530,579 15,329,699 --
2011 .. -- -- 2,693,662 -- --
2012 .. -- -- 724,595 10,121,753 --
2014 .. -- 48,027 127,616 -- $ 985,935
2016 .. -- 259,851 -- -- --
-----------------------------------------------------------------------
Total $ 452,651 $ 1,923,423 $11,248,237 $32,846,090 $ 985,935
=======================================================================
6. 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, including market perception of the value of such insurance, and
there is no guarantee that the insurer will meet its obligation.
7. Plan of Reorganization:
On October 10, 2008 and January 20, 2009, the Board and shareholders,
respectively, approved a plan of reorganization for the BlackRock Florida
Municipal Bond Fund. Subject to certain other conditions, BlackRock National
Municipal Fund will acquire substantially all of the assets and assume
substantially all of the liabilities of BlackRock Florida Municipal Bond Fund in
exchange for newly issued shares of BlackRock National Municipal Fund. The
reorganization is expected to be completed in February 2009.
8. Capital Share Transactions:
Transactions in shares for each class were as follows:
Six Months Ended Period September 1, 2007 Year Ended
November 30, 2008 to May 31, 2008 August 31, 2007
BlackRock California Insured -------------------------- -------------------------- --------------------------
Municipal Bond Fund Shares Amount Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 383,247 $ 4,148,720 1,019,604 $ 11,436,511 998,306 $ 11,419,664
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 42,960 460,299 66,577 746,718 84,015 964,317
-------------------------- -------------------------- --------------------------
Total issued ....................... 426,207 4,609,019 1,086,181 12,183,229 1,082,321 12,383,981
Shares redeemed .................... (799,970) (8,607,926) (1,224,090) (13,749,338) (603,972) (6,934,638)
-------------------------- -------------------------- --------------------------
Net increase (decrease) ............ (373,763) $ (3,998,907) (137,909) $ (1,566,109) 478,349 $ 5,449,343
========================== ========================== ==========================
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 87
Notes to Financial Statements (continued)
Six Months Ended Period September 1, 2007 Period October 2, 2006+
November 30, 2008 to May 31, 2008 to August 31, 2007
BlackRock California Insured -------------------------- -------------------------- --------------------------
Municipal Bond Fund (continued) Shares Amount Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 1,032,527 $ 11,008,706 1,022,253 $ 11,533,525 1,216,192 $ 13,949,168
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 25,851 275,333 25,706 287,800 12,356 140,773
-------------------------- -------------------------- --------------------------
Total issued ....................... 1,058,378 11,284,039 1,047,959 11,821,325 1,228,548 14,089,941
Shares redeemed .................... (395,821) (4,218,734) (343,870) (3,884,326) (121,820) (1,388,133)
-------------------------- -------------------------- --------------------------
Net increase ....................... 662,557 $ 7,065,305 704,089 $ 7,936,999 1,106,728 $ 12,701,808
========================== ========================== ==========================
+ Commencement of operations.
Year Ended
August 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 232,170 $ 2,528,265 583,521 $ 6,581,626 1,086,250 $ 12,439,838
Shares issued to shareholders in
reinvestment of dividends and
distributions and the automatic
conversion of shares ............. 187,807 2,011,202 287,322 3,223,660 473,724 5,442,067
-------------------------- -------------------------- --------------------------
Total issued ....................... 419,977 4,539,467 870,843 9,805,286 1,559,974 17,881,905
Shares redeemed .................... (1,481,772) (15,812,195) (2,482,744) (27,961,285) (2,737,542) (31,403,844)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (1,061,795) $(11,272,728) (1,611,901) $(18,155,999) (1,177,568) $(13,521,939)
========================== ========================== ==========================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 24,499 $ 262,040 20,969 $ 236,900 46,014 $ 530,825
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 23,560 252,647 42,229 474,231 76,329 877,612
-------------------------- -------------------------- --------------------------
Total issued ....................... 48,059 514,687 63,198 711,131 122,343 1,408,437
Shares redeemed and the automatic
conversion of shares ............. (483,688) (5,257,931) (958,835) (10,815,680) (1,925,123) (22,087,142)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (435,629) $ (4,743,244) (895,637) $(10,104,549) (1,802,780) $(20,678,705)
========================== ========================== ==========================
Period October 2, 2006+
to August 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 272,364 $ 2,969,196 436,606 $ 4,939,226 502,743 $ 5,775,905
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 9,431 100,867 10,339 115,788 4,391 50,075
-------------------------- -------------------------- --------------------------
Total issued ....................... 281,795 3,070,063 446,945 5,055,014 507,134 5,825,980
Shares redeemed .................... (125,639) (1,328,842) (90,900) (1,022,075) (23,248) (265,556)
-------------------------- -------------------------- --------------------------
Net increase ....................... 156,156 $ 1,741,221 356,045 $ 4,032,939 483,886 $ 5,560,424
========================== ========================== ==========================
+ Commencement of operations.
88 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Notes to Financial Statements (continued)
Six Months Ended Period September 1, 2007 Year Ended
November 30, 2008 to May 31, 2008 August 31, 2007
BlackRock California Insured -------------------------- -------------------------- --------------------------
Municipal Bond Fund (concluded) Shares Amount Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 79 $ 894 110 $ 1,188 53,190 $ 613,301
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 27,614 295,795 46,611 522,957 71,976 826,936
-------------------------- -------------------------- --------------------------
Total issued ....................... 27,693 296,689 46,721 524,145 125,166 1,440,237
Shares redeemed .................... (317,799) (3,387,605) (297,503) (3,355,600) (588,371) (6,750,158)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (290,106) $ (3,090,916) (250,782) $ (2,831,455) (463,205) $ (5,309,921)
========================== ========================== ==========================
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 ........................ 123,272 $ 1,140,984 231,501 $ 2,323,254 291,385 $ 3,030,158
Shares issued to shareholders in
reinvestment of dividends ........ 17,597 163,454 30,667 305,633 36,193 375,732
-------------------------- -------------------------- --------------------------
Total issued ....................... 140,869 1,304,438 262,168 2,628,887 327,578 3,405,890
Shares redeemed .................... (381,404) (3,546,768) (505,981) (5,071,650) (535,478) (5,561,470)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (240,535) $ (2,242,330) (243,813) $ (2,442,763) (207,900) $ (2,155,580)
========================== ========================== ==========================
Period October 2, 2006+
to July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 41,980 $ 409,473 90,586 $ 913,634 335,598 $ 3,480,112
Shares issued to shareholders in
reinvestment of dividends ........ 7,257 66,956 11,244 111,781 5,488 56,511
-------------------------- -------------------------- --------------------------
Total issued ....................... 49,237 476,429 101,830 1,025,415 341,086 3,536,623
Shares redeemed .................... (25,285) (242,913) (53,043) (533,097) (22,763) (233,843)
-------------------------- -------------------------- --------------------------
Net increase ....................... 23,952 $ 233,516 48,787 $ 492,318 318,323 $ 3,302,780
========================== ========================== ==========================
+ Commencement of operations.
Year Ended
July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic
conversion of shares ............. 82,871 $ 776,748 178,553 $ 1,794,466 354,742 $ 3,666,377
Shares issued to shareholders in
reinvestment of dividends ........ 34,852 322,564 58,452 581,543 75,542 782,889
-------------------------- -------------------------- --------------------------
Total issued ....................... 117,723 1,099,312 237,005 2,376,009 430,284 4,449,266
Shares redeemed .................... (297,943) (2,764,415) (493,146) (4,939,463) (1,137,514) (11,821,822)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (180,220) $ (1,665,103) (256,141) $ (2,563,454) (707,230) $ (7,372,556)
========================== ========================== ==========================
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 89
Notes to Financial Statements (continued)
Six Months Ended Period August 1, 2007 Year Ended
November 30, 2008 to May 31, 2008 July 31, 2007
BlackRock Florida Municipal -------------------------- -------------------------- --------------------------
Bond Fund (concluded) Shares Amount Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 3,966 $ 37,650 10,674 $ 107,591 19,231 $ 199,151
Shares issued to shareholders in
reinvestment of dividends ........ 8,291 77,095 16,925 168,857 27,451 285,087
-------------------------- -------------------------- --------------------------
Total issued ....................... 12,257 114,745 27,599 276,448 46,682 484,238
Shares redeemed and automatic
conversion of shares ............. (236,705) (2,215,507) (386,438) (3,882,846) (880,448) (9,135,947)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (224,448) $ (2,100,762) (358,839) $ (3,606,398) (833,766) $ (8,651,709)
========================== ========================== ==========================
Period October 2, 2006+
to July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 15,527 $ 146,165 116,586 $ 1,160,123 139,623 $ 1,445,646
Shares issued to shareholders in
reinvestment of dividends ........ 2,290 21,113 2,208 21,891 691 7,109
-------------------------- -------------------------- --------------------------
Total issued ....................... 17,817 167,278 118,794 1,182,014 140,314 1,452,755
Shares redeemed .................... (13,303) (124,149) (20,184) (200,358) (2,005) (20,901)
-------------------------- -------------------------- --------------------------
Net increase ....................... 4,514 $ 43,129 98,610 $ 981,656 138,309 $ 1,431,854
========================== ========================== ==========================
+ Commencement of operations.
Year Ended
July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 5 $ 68 295 $ 2,928 90,509 $ 934,432
Shares issued to shareholders in
reinvestment of dividends ........ 10,061 93,150 19,312 192,311 26,319 272,746
-------------------------- -------------------------- --------------------------
Total issued ....................... 10,066 93,218 19,607 195,239 116,828 1,207,178
Shares redeemed .................... (110,691) (1,049,814) (356,663) (3,572,661) (313,232) (3,237,597)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (100,625) $ (956,596) (337,056) $ (3,377,422) (196,404) $ (2,030,419)
========================== ========================== ==========================
Period October 2, 2006+
to July 31, 2007
BlackRock New Jersey Municipal ---------------------------
Bond Fund Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 1,103,709 $ 10,971,324 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 ................ 42,801 416,980 49,499 508,610 47,250 503,184
-------------------------- -------------------------- --------------------------
Total issued ....................... 1,146,510 11,388,304 3,119,222 32,348,263 27,777,769 298,163,783
Shares redeemed .................... (1,629,439) (16,039,309) (2,065,929) (21,547,014) (14,530,074) (155,327,851)
-------------------------- -------------------------- --------------------------
Net increase (decrease) ............ (482,929) $ (4,651,005) 1,053,293 $ 10,801,249 13,247,695 $ 142,835,932
========================== ========================== ==========================
+ Commencement of operations.
90 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Notes to Financial Statements (continued)
Six Months Ended Period August 1, 2007 Period October 2, 2006+
November 30, 2008 to May 31, 2008 to July 31, 2007
BlackRock New Jersey Municipal -------------------------- -------------------------- --------------------------
Bond Fund (continued) Shares Amount Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Service
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 2,858 $ 28,924 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 ................ 15,533 151,381 26,298 272,950 25,159 270,682
-------------------------- -------------------------- --------------------------
Total issued ....................... 18,391 180,305 34,598 360,601 1,624,280 17,473,760
Shares redeemed .................... (93,205) (932,056) (126,299) (1,318,527) (409,303) (4,376,910)
-------------------------- -------------------------- --------------------------
Net increase (decrease) ............ (74,814) $ (751,751) (91,701) $ (957,926) 1,214,977 $ 13,096,850
========================== ========================== ==========================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 267,384 $ 2,660,114 866,474 $ 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 ................ 28,357 276,576 32,583 337,989 21,040 226,230
-------------------------- -------------------------- --------------------------
Total issued ....................... 295,741 2,936,690 899,057 9,370,679 1,646,826 17,782,956
Shares redeemed .................... (304,301) (2,941,534) (290,020) (3,016,387) (164,504) (1,759,132)
-------------------------- -------------------------- --------------------------
Net increase (decrease) ............ (8,560) $ (4,844) 609,037 $ 6,354,292 1,482,322 $ 16,023,824
========================== ========================== ==========================
+ Commencement of operations.
Year Ended
July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic
conversion of shares ............. 114,430 $ 1,148,428 189,807 $ 1,986,286 333,806 $ 3,578,707
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 45,616 444,689 72,762 756,703 86,895 937,248
-------------------------- -------------------------- --------------------------
Total issued ....................... 160,046 1,593,117 262,569 2,742,989 420,701 4,515,955
Shares redeemed .................... (180,097) (1,746,766) (304,342) (3,175,782) (503,201) (5,422,697)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (20,051) $ (153,649) (41,773) $ (432,793) (82,500) $ (906,742)
========================== ========================== ==========================
Period October 2, 2006+
to July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 35,300 $ 337,718 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 ................ 9,142 89,374 18,912 196,404 20,550 221,281
-------------------------- -------------------------- --------------------------
Total issued ....................... 44,442 427,092 32,539 337,149 1,006,677 10,848,850
Shares redeemed and automatic
conversion of shares ............. (157,801) (1,566,519) (180,860) (1,881,597) (191,557) (2,062,283)
-------------------------- -------------------------- --------------------------
Net increase (decrease) ............ (113,359) $ (1,139,427) (148,321) $ (1,544,448) 815,120 $ 8,786,567
========================== ========================== ==========================
+ Commencement of operations.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 91
Notes to Financial Statements (continued)
Six Months Ended Period August 1, 2007 Year Ended
November 30, 2008 to May 31, 2008 July 31, 2007
BlackRock New Jersey Municipal -------------------------- -------------------------- --------------------------
Bond Fund (concluded) Shares Amount Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 71 $ 683 13 $ 124 22,341 $ 233,261
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 10,791 105,248 20,664 214,695 30,286 326,520
-------------------------- -------------------------- --------------------------
Total issued ....................... 10,862 105,931 20,677 214,819 52,627 559,781
Shares redeemed and automatic
conversion of shares ............. (177,432) (1,749,510) (304,749) (3,188,968) (531,370) (5,716,037)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (166,570) $ (1,643,579) (284,072) $ (2,974,149) (478,743) $ (5,156,256)
========================== ========================== ==========================
Period October 2, 2006+
to July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 362,057 $ 3,597,874 434,298 $ 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 ................ 15,872 153,872 17,195 178,130 8,672 92,924
-------------------------- -------------------------- --------------------------
Total issued ....................... 377,929 3,751,746 451,493 4,724,163 745,477 8,038,991
Shares redeemed .................... (117,426) (1,148,542) (119,770) (1,251,738) (59,516) (635,360)
-------------------------- -------------------------- --------------------------
Net increase ....................... 260,503 $ 2,603,204 331,723 $ 3,472,425 685,961 $ 7,403,631
========================== ========================== ==========================
+ Commencement of operations.
Year Ended
July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 4,945 $ 50,160 27 $ 245 80,325 $ 856,962
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 20,978 204,371 34,254 355,298 43,167 465,414
-------------------------- -------------------------- --------------------------
Total issued ....................... 25,923 254,531 34,281 355,543 123,492 1,322,376
Shares redeemed .................... (64,388) (631,680) (221,607) (2,307,305) (204,930) (2,211,606)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (38,465) $ (377,149) (187,326) $ (1,951,762) (81,438) $ (889,230)
========================== ========================== ==========================
Period October 2, 2006+
to July 31, 2007
BlackRock Pennsylvania ---------------------------
Municipal Bond Fund Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 3,031,872 $ 31,636,484 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 ................ 39,513 403,877 70,280 764,663 51,078 575,901
-------------------------- -------------------------- --------------------------
Total issued ....................... 3,071,385 32,040,361 10,823,299 118,485,906 91,763,362 1,032,546,466
Shares redeemed .................... (3,904,847) (40,068,827) (9,612,359) (105,087,171) (49,076,517) (550,101,506)
-------------------------- -------------------------- --------------------------
Net increase (decrease) ............ (833,462) $ (8,028,466) 1,210,940 $ 13,398,735 42,686,845 $ 482,444,960
========================== ========================== ==========================
+ Commencement of operations.
92 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Notes to Financial Statements (continued)
Six Months Ended Period August 1, 2007 Period October 2, 2006+
November 30, 2008 to May 31, 2008 to July 31, 2007
BlackRock Pennsylvania -------------------------- -------------------------- --------------------------
Municipal Bond Fund (continued) Shares Amount Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Service
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 75,618 $ 734,962 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 ................ 2,537 26,020 5,611 61,073 4,636 52,252
-------------------------- -------------------------- --------------------------
Total issued ....................... 78,155 760,982 8,351 90,077 622,960 7,029,659
Shares redeemed .................... (43,912) (448,926) (80,747) (888,980) (325,045) (3,660,436)
-------------------------- -------------------------- --------------------------
Net increase (decrease) ............ 34,243 $ 312,056 (72,396) $ (798,903) 297,915 $ 3,369,223
========================== ========================== ==========================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic
conversion of shares ............. 255,413 $ 2,604,819 440,691 $ 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 ................ 51,053 521,999 88,386 962,685 69,146 779,778
-------------------------- -------------------------- --------------------------
Total issued ....................... 306,466 3,126,818 529,077 5,795,850 2,824,158 31,954,695
Shares redeemed .................... (268,427) (2,733,324) (355,046) (3,892,107) (330,379) (3,733,251)
-------------------------- -------------------------- --------------------------
Net increase ....................... 38,039 $ 393,494 174,031 $ 1,903,743 2,493,779 $ 28,221,444
========================== ========================== ==========================
+ Commencement of operations.
Year Ended
July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic
conversion of shares ............. 87,438 $ 910,884 143,471 $ 1,582,152 269,866 $ 3,040,865
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 25,779 263,707 52,853 575,894 58,218 657,469
-------------------------- -------------------------- --------------------------
Total issued ....................... 113,217 1,174,591 196,324 2,158,046 328,084 3,698,334
Shares redeemed .................... (206,193) (2,085,849) (338,122) (3,692,708) (231,123) (2,606,866)
-------------------------- -------------------------- --------------------------
Net increase (decrease) ............ (92,976) $ (911,258) (141,798) $ (1,534,662) 96,961 $ 1,091,468
========================== ========================== ==========================
Period October 2, 2006+
to July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 1,747 $ 17,243 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 ................ 4,294 44,140 12,635 137,539 13,672 154,119
-------------------------- -------------------------- --------------------------
Total issued ....................... 6,041 61,383 18,029 197,650 652,761 7,381,358
Shares redeemed .................... (147,204) (1,469,418) (166,410) (1,819,279) (185,063) (2,085,361)
-------------------------- -------------------------- --------------------------
Net increase (decrease) ............ (141,163) $ (1,408,035) (148,381) $ (1,621,629) 467,698 $ 5,295,997
========================== ========================== ==========================
+ Commencement of operations.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 93
Notes to Financial Statements (continued)
Six Months Ended Period August 1, 2007 Year Ended
November 30, 2008 to May 31, 2008 July 31, 2007
BlackRock Pennsylvania -------------------------- -------------------------- --------------------------
Municipal Bond Fund (concluded) Shares Amount Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ -- -- 26 $ 603 1,997 $ 25,143
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 7,783 $ 79,413 19,365 210,883 26,808 302,593
-------------------------- -------------------------- --------------------------
Total issued ....................... 7,783 79,413 19,391 211,486 28,805 327,736
Shares redeemed and automatic
conversion of shares ............. (144,314) (1,489,871) (249,732) (2,740,575) (518,854) (5,848,065)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (136,531) $ (1,410,458) (230,341) $ (2,529,089) (490,049) $ (5,520,329)
========================== ========================== ==========================
Period October 2, 2006+
to July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 197,331 $ 2,023,518 352,840 $ 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 ................ 9,797 99,998 13,534 147,325 5,227 58,812
-------------------------- -------------------------- --------------------------
Total issued ....................... 207,128 2,123,516 366,374 4,007,116 399,653 4,504,576
Shares redeemed .................... (92,341) (951,432) (76,669) (837,041) (26,100) (293,499)
-------------------------- -------------------------- --------------------------
Net increase ....................... 114,787 $ 1,172,084 289,705 $ 3,170,075 373,553 $ 4,211,077
========================== ========================== ==========================
+ Commencement of operations.
Year Ended
July 31, 2007
--------------------------
Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C1
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 10,236 $ 105,449 2,124 $ 22,732 53,806 $ 610,382
Shares issued to shareholders in
reinvestment of dividends
and distributions ................ 14,501 148,139 29,611 322,296 32,544 367,187
-------------------------- -------------------------- --------------------------
Total issued ....................... 24,737 253,588 31,735 345,028 86,350 977,569
Shares redeemed .................... (67,939) (704,149) (229,000) (2,502,103) (107,580) (1,210,314)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (43,202) $ (450,561) (197,265) $ (2,157,075) (21,230) $ (232,745)
========================== ========================== ==========================
Period November 1, 2007 Year Ended
to May 31, 2008 October 31, 2007
BlackRock Intermediate -------------------------- --------------------------
Municipal Fund Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Institutional
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 1,500,831 $ 14,800,977 2,395,306 $ 24,477,654 4,555,700 $ 46,355,829
Shares issued to shareholders in
reinvestment of dividends ........ 27,324 267,126 30,064 305,531 47,552 484,344
-------------------------- -------------------------- --------------------------
Total issued ....................... 1,528,155 15,068,103 2,425,370 24,783,185 4,603,252 46,840,173
Shares redeemed .................... (3,636,147) (35,169,151) (3,024,414) (30,876,339) (2,446,319) (24,932,556)
-------------------------- -------------------------- --------------------------
Net increase (decrease) ............ (2,107,992) $(20,101,048) (599,044) $ (6,093,154) 2,156,933 $ 21,907,617
========================== ========================== ==========================
94 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Notes to Financial Statements (concluded)
Six Months Ended Period November 1, 2007 Year Ended
November 30, 2008 to May 31, 2008 October 31, 2007
BlackRock Intermediate -------------------------- -------------------------- --------------------------
Municipal Fund (concluded) Shares Amount Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A Shares
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic
conversion of shares ............. 212,170 $ 2,065,691 317,235 $ 3,251,586 259,672 $ 2,652,562
Shares issued to shareholders in
reinvestment of dividends ........ 6,044 59,025 6,201 62,935 3,714 37,721
-------------------------- -------------------------- --------------------------
Total issued ....................... 218,214 2,124,716 323,436 3,314,521 263,386 2,690,283
Shares redeemed .................... (157,559) (1,523,761) (46,078) (467,714) (4,847) (49,436)
-------------------------- -------------------------- --------------------------
Net increase ....................... 60,655 $ 600,955 277,358 $ 2,846,807 258,539 $ 2,640,847
========================== ========================== ==========================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor A1 Shares
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold and automatic
conversion of shares ............. 31,418 $ 312,355 67,918 $ 694,169 106,014 $ 1,079,829
Shares issued to shareholders in
reinvestment of dividends ........ 60,687 592,694 71,985 731,542 133,046 1,354,908
-------------------------- -------------------------- --------------------------
Total issued ....................... 92,105 905,049 139,903 1,425,711 239,060 2,434,737
Shares redeemed .................... (438,224) (4,261,107) (443,025) (4,521,733) (1,254,806) (12,806,788)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (346,119) $ (3,356,058) (303,122) $ (3,096,022) (1,015,746) $(10,372,051)
========================== ========================== ==========================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor B Shares
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 5,586 $ 54,110 30,174 $ 307,941 8,995 $ 91,185
Shares issued to shareholders in
reinvestment of dividends ........ 5,772 56,384 7,689 78,170 15,345 156,359
-------------------------- -------------------------- --------------------------
Total issued ....................... 11,358 110,494 37,863 386,111 24,340 247,544
Shares redeemed and automatic
conversion of shares ............. (69,215) (682,112) (107,943) (1,103,637) (292,910) (2,986,145)
-------------------------- -------------------------- --------------------------
Net decrease ....................... (57,857) $ (571,618) (70,080) $ (717,526) (268,570) $ (2,738,601)
========================== ========================== ==========================
- -----------------------------------------------------------------------------------------------------------------------------------
Investor C Shares
- -----------------------------------------------------------------------------------------------------------------------------------
Shares sold ........................ 427,778 $ 4,152,222 269,846 $ 2,782,039 209,893 $ 2,140,147
Shares issued to shareholders in
reinvestment of dividends ........ 6,661 64,702 7,672 43,108 3,333 33,849
-------------------------- -------------------------- --------------------------
Total issued ....................... 434,439 4,216,924 277,518 2,825,147 213,226 2,173,996
Shares redeemed .................... (51,518) (500,576) (52,981) (541,035) (29,335) (297,025)
-------------------------- -------------------------- --------------------------
Net increase ....................... 382,921 $ 3,716,348 224,537 $ 2,284,112 183,891 $ 1,876,971
========================== ========================== ==========================
9. Subsequent Event:
On January 1, 2009, BAC announced that it had completed its acquisition of
Merrill Lynch, one of the largest stockholders of BlackRock, Inc.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 95
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
The Board of Trustees of BlackRock California Insured Municipal Bond Fund of
BlackRock California Municipal Series Trust (the "California Trust"), the Board
of Trustees of BlackRock Florida Municipal Bond Fund, BlackRock New Jersey
Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of BlackRock
Multi-State Municipal Series Trust (the "Multi-State Trust") and the Board of
Trustees of BlackRock Intermediate Municipal Bond Fund of BlackRock Municipal
Series Trust (the "Municipal Trust") (collectively, the "Board," the members of
which are referred to as "Trustees") met in April and June 2008 to consider the
approval of each of the California Trust's, Multi-State Trust's and Municipal
Trust's investment advisory agreement (collectively, the "Advisory Agreement")
with BlackRock Advisors, LLC (the "Advisor"), the fund's investment advisor. For
simplicity, BlackRock California Insured Municipal Bond Fund, the California
Trust, BlackRock Florida Municipal Bond Fund, BlackRock New Jersey Municipal
Bond Fund, BlackRock Pennsylvania Municipal Bond Fund, the Multi-State Trust,
BlackRock Intermediate Municipal Bond Fund and the Municipal Trust are referred
to herein as the "Fund." The Board also considered the approval of each of the
subadvisory agreements (collectively, the "Subadvisory Agreement") between the
Advisor and BlackRock Investment Management, LLC (the "Subadvisor"). The Advisor
and the Subadvisor are referred to herein as "BlackRock." The Advisory Agreement
and the Subadvisory Agreement are referred to herein as the "Agreements."
Activities and Composition of the Board
The Board of the Fund consists of fifteen individuals, twelve of whom are not
"interested persons" of the Fund as defined in the Investment Company Act of
1940, as amended (the "1940 Act") (the "Independent Trustees"). The Trustees are
responsible for the oversight of the operations of the Fund and perform the
various duties imposed on the directors of investment companies by the 1940 Act.
The Independent Trustees have retained independent legal counsel to assist them
in connection with their duties. The Chairman of the Board is an Independent
Trustee. The Board established four standing committees: an Audit Committee, a
Governance and Nominating Committee, a Compliance Committee and a Performance
Oversight Committee, each of which is composed of, and chaired by Independent
Trustees.
The Agreements
Upon the consummation of the combination of BlackRock's investment management
business with Merrill Lynch & Co., Inc.'s investment management business,
including Merrill Lynch Investment Managers, L.P., and certain affiliates (the
"Transaction"), the Fund entered into the Advisory Agreement with an initial
two-year term and the Advisor entered into the Subadvisory Agreement with the
Subadvisor with an initial two-year term. Consistent with the 1940 Act, prior to
the expiration of the Agreements' respective initial two-year term, the Board is
required to consider the continuation of the Fund's Agreements on an annual
basis. In connection with this process, the Board assessed, among other things,
the nature, scope and quality of the services provided to the Fund by the
personnel of BlackRock and its affiliates, including investment management,
administrative services, shareholder services, oversight of fund accounting and
custody, marketing services and assistance in meeting legal and regulatory
requirements. The Board also received and assessed information regarding the
services provided to the Fund by certain unaffiliated service providers.
Throughout the year, the Board, acting directly and through its committees,
considers at each of its meetings factors that are relevant to its annual
consideration of the renewal of the Fund's Agreements, including the services
and support provided to the Fund and its shareholders. Among the matters the
Board considered were: (a) investment performance for one, three and five years,
as applicable, against peer funds, as well as senior management and portfolio
managers' analysis of the reasons for underperformance, if applicable; (b) fees,
including advisory, administration, if applicable, and other fees paid to
BlackRock and its affiliates by the Fund, such as transfer agency fees and fees
for marketing and distribution; (c) Fund operating expenses; (d) the resources
devoted to and compliance reports relating to the Fund's investment objective,
policies and restrictions; (e) the Fund's compliance with its Code of Ethics and
compliance policies and procedures; (f) the nature, cost and character of
non-investment management services provided by BlackRock and its affiliates; (g)
BlackRock's and other service providers' internal controls; (h) BlackRock's
implementation of the proxy voting guidelines approved by the Board; (i)
execution quality; (j) valuation and liquidity procedures; and (k) periodic
overview of BlackRock's business, including BlackRock's response to the
increasing scale of its business.
Board Considerations in Approving the Agreements
The Approval Process: At an in-person meeting held on April 10, 2008, the Board
reviewed materials relating to its consideration of the Agreements. At an
in-person meeting held on June 5 - 6, 2008, the Fund's Board, including the
Independent Trustees, unanimously approved the continuation of the Advisory
Agreement between the Advisor and the Fund for a one-year term ending June 30,
2009 and the Subadvisory Agreement between the Advisor and BlackRock Investment
Management, LLC for a one-year term ending June 30, 2009. In considering the
approval of the Agreements, the Board received and discussed various materials
provided to it in advance of the April 10, 2008 meeting. As a result of the
discussions that occurred during the April 10, 2008 meeting, the Board requested
and BlackRock provided additional information, as detailed below, in advance of
the June 5 - 6, 2008 Board meeting. The Board considered all factors it believed
relevant with respect to the Fund, including, among other factors: (a) the
nature, extent and quality of the services provided by BlackRock; (b) the
investment performance of the Fund and BlackRock portfolio management; (c) the
advisory fee and the cost of the services and profits to be realized by
BlackRock and certain affiliates from the relationship with the Fund; (d)
economies of scale; and (e) other factors.
96 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
(continued)
Prior to the April 10, 2008 meeting, the Board requested and received materials
specifically relating to the Agreements. The Board is engaged in an ongoing
process with BlackRock to continuously review the nature and scope of the
information provided to better assist its deliberations. These materials
included (a) information independently compiled and prepared by Lipper, Inc.
("Lipper") on Fund fees and expenses, and the investment performance of the Fund
as compared with a peer group of funds as determined by Lipper ("Peers"); (b)
information on the profitability of the Agreements to BlackRock and certain
affiliates, including their other relationships with the Fund, and a discussion
of fall-out benefits; (c) a general analysis provided by BlackRock concerning
investment advisory fees charged to other clients, such as institutional and
closed-end funds, under similar investment mandates, as well as the performance
of such other clients; (d) a report on economies of scale; (e) sales and
redemption data regarding the Fund's shares; and (f) an internal comparison of
management fees classified by Lipper, if applicable. At the April 10, 2008
meeting, the Board requested and subsequently received from BlackRock (i) a
comprehensive analysis of total expenses on a fund-by-fund basis; (ii) further
analysis of investment performance; (iii) further data regarding Fund
profitability, Fund size and Fund fee levels; and (iv) additional information on
sales and redemptions.
The Board also considered other matters it deemed important to the approval
process, such as payments made to BlackRock or its affiliates relating to the
distribution of Fund shares, services related to the valuation and pricing of
Fund portfolio holdings, and direct and indirect benefits to BlackRock and its
affiliates from their relationship with the Fund. The Board did not identify any
particular information as controlling, and each Trustee may have attributed
different weights to the various items considered.
A. Nature, Extent and Quality of the Services: The Board, including the
Independent Trustees, reviewed the nature, extent and quality of services
provided by BlackRock, including the investment advisory services and the
resulting performance of the Fund. Throughout the year, the Board compared Fund
performance to the performance of a comparable group of mutual funds as
classified by Lipper and the performance of at least one relevant index or
combination of indices. The Board met with BlackRock's senior management
personnel responsible for investment operations, including the senior investment
officers. The Board also reviewed the materials provided by the Fund's portfolio
management team discussing Fund performance and the Fund's investment objective,
strategies and outlook.
The Board considered, among other factors, the number, education and experience
of BlackRock's investment personnel generally and the Fund's portfolio
management team, BlackRock's portfolio trading capabilities, BlackRock's use of
technology, BlackRock's commitment to compliance and BlackRock's approach to
training and retaining portfolio managers and other research, advisory and
management personnel. The Board also reviewed BlackRock's compensation structure
with respect to the Fund's portfolio management team and BlackRock's ability to
attract and retain high-quality talent.
In addition to advisory services, the Board considered the quality of the
administrative and non-investment advisory services provided to the Fund.
BlackRock and its affiliates provide the Fund with certain administrative,
transfer agency, shareholder and other services (in addition to any such
services provided to the Fund by third parties) and officers and other personnel
as are necessary for the operations of the Fund. In addition to investment
advisory services, BlackRock and its affiliates provide the Fund with other
services, including (i) preparing disclosure documents, such as the prospectus,
the statement of additional information and shareholder reports; (ii) assisting
with daily accounting and pricing; (iii) overseeing and coordinating the
activities of other service providers; (iv) organizing Board meetings and
preparing the materials for such Board meetings; (v) providing legal and
compliance support; and (vi) performing other administrative functions necessary
for the operation of the Fund, such as tax reporting and fulfilling regulatory
filing requirements. The Board reviewed the structure and duties of BlackRock's
fund administration, accounting, legal and compliance departments.
B. The Investment Performance of the Fund and BlackRock: The Board, including
the Independent Trustees, also reviewed and considered the performance history
of the Fund. In preparation for the April 10, 2008 meeting, the Board was
provided with reports, independently prepared by Lipper, which included a
comprehensive analysis of the Fund's performance. The Board also reviewed a
narrative and statistical analysis of the Lipper data that was prepared by
BlackRock, which analyzed various factors that affect Lipper's rankings. In
connection with its review, the Board received and reviewed information
regarding the investment performance of the Fund as compared to a representative
group of similar funds as determined by Lipper and to all funds in the Fund's
applicable Lipper category. The Board was provided with a description of the
methodology used by Lipper to select peer funds. The Board regularly reviews the
performance of the Fund throughout the year. The Board attaches more importance
to performance over relatively long periods of time, typically three to five
years.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 97
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
(continued)
The California Insured Municipal Bond Fund ranked in the second quartile on a
net basis against its Lipper peer universe for each of the one-, three- and
five-year periods ended December 31, 2007, respectively. The BlackRock Florida
Municipal Bond Fund ranked in the third, second and second quartiles on a net
basis against its Lipper peer universe for the one-, three- and five-year
periods ended December 31, 2007, respectively. The Board noted that the
BlackRock Florida Municipal Bond Fund's investment performance for the one year
period was disappointing, but that longer-term performance meets the Board's
expectations. The Board typically gives greater weight to longer-term results.
The BlackRock New Jersey Municipal Bond Fund ranked in the fourth, first and
first quartiles on a net basis against its Lipper peer universe for the one-,
three- and five-year periods ended December 31, 2007, respectively. The Board
noted that the BlackRock New Jersey Municipal Bond Fund's investment performance
for the one-year period was disappointing, but that longer-term performance
meets the Board's expectations. The Board typically gives greater weight to
longer-term results. The BlackRock Pennsylvania Municipal Bond Fund ranked in
the second quartile on a net basis against its Lipper peer universe for each of
the one-, three- and five-year periods ended December 31, 2007, respectively.
The BlackRock Intermediate Municipal Bond Fund ranked in the third quartile on a
net basis against its Lipper peer universe for each of the one-, three- and
five-year periods ended December 31, 2007, respectively. The Board expressed its
concern with the BlackRock Intermediate Municipal Bond Fund's third quartile
performance. The Board noted that for each of the periods, the BlackRock
Intermediate Municipal Bond Fund's third quartile performance was near its
Lipper median. The Board considered BlackRock's planned changes in its
fixed-income organization.
C. Consideration of the Advisory Fees and the Cost of the Services and Profits
to be Realized by BlackRock and its Affiliates from the Relationship with the
Fund: The Board, including the Independent Trustees, reviewed the Fund's
contractual advisory fee rates compared with the other funds in its Lipper
category. It also compared the Fund's total expenses to those of other
comparable funds. The Board considered the services provided and the fees
charged by BlackRock to other types of clients with similar investment mandates,
including separately managed institutional accounts.
The Board received and reviewed statements relating to BlackRock's financial
condition and profitability with respect to the services it provided to the
Fund. The Board was also provided with a profitability analysis that detailed
the revenues earned and the expenses incurred by BlackRock and certain
affiliates that provide services to the Fund. The Board reviewed BlackRock's
profitability with respect to the Fund and each fund the Board currently
oversees for the year ended December 31, 2007 compared to aggregated
profitability data provided for the year ended December 31, 2005.
In addition, the Board considered the cost of the services provided to the Fund
by BlackRock, and BlackRock's and its affiliates' profits relating to the
management and distribution of the Fund and the other funds advised by BlackRock
and its affiliates. As part of its analysis, the Board reviewed BlackRock's
methodology in allocating its costs to the management of the Fund and concluded
that there was a reasonable basis for the allocation. The Board also considered
whether BlackRock has the financial resources necessary to attract and retain
high-quality investment management personnel to perform its obligations under
the Agreements and to continue to provide the high quality of services that are
expected by the Board.
The Board took into account that that the BlackRock California Insured Municipal
Bond Fund, BlackRock Florida Municipal Bond Fund, BlackRock New Jersey Municipal
Bond Fund and BlackRock Pennsylvania Municipal Bond Fund has an advisory fee
arrangement that includes breakpoints that adjust the fee rate downward as the
size of each Fund increases, thereby allowing shareholders the potential to
participate in economies of scale. The Board recognized that BlackRock Florida
Municipal Bond Fund has contractual advisory fees higher than its Peers. The
Board noted that BlackRock has agreed to voluntarily cap the total annual
operating expenses, excluding certain expenses, of one or more share classes of
each of BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania
Municipal Bond Fund, at certain levels. The Board observed that those expense
caps benefited shareholders by limiting total fees. The Board took into account
that BlackRock has contractually agreed to waive a portion of its advisory fee
for the BlackRock Intermediate Municipal Bond Fund, thereby lowering Fund
expenses.
D. Economies of Scale: The Board, including the Independent Trustees, considered
the extent to which economies of scale might be realized as the assets of the
Fund increase and whether there should be changes in the advisory fee rate or
structure in order to enable the Fund to participate in these economies of
scale. The Board, including the Independent Trustees, considered whether the
shareholders would benefit from economies of scale and whether there was
potential for future realization of economies with respect to the Fund. The
Board considered that the funds in the BlackRock fund complex share common
resources and, as a result, an increase in the overall size of the complex could
permit each fund to incur lower expenses than it would otherwise as stand-alone
entities. The Board also considered the anticipated efficiencies in the
processes of BlackRock's overall operations as it continues to add personnel and
commit capital to expand the scale of operations. The Board found, based on its
review of comparable funds, that the Fund's management fee is appropriate in
light of the scale of the Fund.
98 SEMI-ANNUAL REPORT NOVEMBER 30, 2008
Disclosure of Investment Advisory Agreement and Subadvisory Agreement
(concluded)
E. Other Factors: The Board also took into account other ancillary or "fall-out"
benefits that BlackRock may derive from its relationship with the Fund, both
tangible and intangible, such as BlackRock's ability to leverage its investment
professionals that manage other portfolios, an increase in BlackRock's profile
in the investment advisory community, and the engagement of BlackRock's
affiliates as service providers to the Fund, including for administrative,
transfer agency and distribution services. The Board also noted that BlackRock
may use third-party research obtained by soft dollars generated by certain
mutual fund transactions to assist itself in managing all or a number of its
other client accounts.
In connection with its consideration of the Agreements, the Board also received
information regarding BlackRock's brokerage and trade execution practices
throughout the year.
Conclusion
The Board approved the continuation of the Advisory Agreement between the
Advisor and the Fund for a one-year term ending June 30, 2009 and the
Subadvisory Agreement between the Advisor and BlackRock Investment Management,
LLC for a one-year term ending June 30, 2009. Based upon its evaluation of all
these factors in their totality, the Board, including the Independent Trustees,
was satisfied that the terms of the Agreements were fair and reasonable and in
the best interest of the Fund and the Fund's shareholders. In arriving at a
decision to approve the Agreements, the Board did not identify any single factor
or group of factors as all-important or controlling, but considered all factors
together. The Independent Trustees were also assisted by the advice of
independent legal counsel in making this determination. The contractual fee
arrangements for the Fund reflect the result of several years of review by the
Trustees and predecessor Trustees, and discussions between the Trustees (and
predecessor Trustees) and BlackRock. Certain aspects of the arrangements may be
the subject of more attention in some years than in others, and the Trustees'
conclusions may be based in part on their consideration of these arrangements in
prior years.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 99
Officers and Trustees
Robert M. Hernandez, Chairman of the Board, Trustee and
Member of the Audit Committee
Fred G. Weiss, Vice Chairman of the Board,
Chairman of the Audit Committee and Trustee
James H. Bodurtha, Trustee
Bruce R. Bond, Trustee
Donald W. Burton, Trustee
Richard S. Davis, Fund President and Trustee
Stuart E. Eizenstat, Trustee
Laurence D. Fink, Trustee
Kenneth A. Froot, Trustee
Henry Gabbay, Trustee
John F. O'Brien, Trustee
Roberta Cooper Ramo, Trustee
Jean Margo Reid, Trustee
David H. Walsh, Trustee
Richard R. West, Trustee and Member of the Audit Committee
Donald C. Burke, Chief Executive Officer
Anne F. Ackerley, Vice President
Neal J. Andrews, Chief Financial Officer
Jay M. Fife, Treasurer
Brian P. Kindelan, Chief Compliance Officer of the Fund
Howard B. Surloff, Secretary
Custodian
For all Funds except BlackRock California Insured Municipal Bond Fund:
State Street Bank and Trust Company
Boston, MA 02101
For BlackRock California Insured Municipal Bond Fund:
The Bank of New York Mellon
New York, NY 10286
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
100 SEMI-ANNUAL REPORT NOVEMBER 30, 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
Householding
The Funds will mail only one copy of shareholder documents, including
prospectuses, annual and semi-annual reports and proxy statements, to
shareholders with multiple accounts at the same address. This practice is
commonly called "householding" and it is intended to reduce expenses and
eliminate duplicate mailings of shareholder documents. Mailings of your
shareholder documents may be householded indefinitely unless you instruct us
otherwise. If you do not want the mailing of these documents to be combined with
those for other members of your household, please contact the Funds at (800)
441-7762.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 101
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.
102 SEMI-ANNUAL REPORT NOVEMBER 30, 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 SmallCap Fund
BlackRock Health Sciences Opportunities Portfolio
BlackRock Healthcare Fund
BlackRock Index Equity Portfolio*
BlackRock International Fund
BlackRock International Diversification Fund
BlackRock International Index Fund
BlackRock International Opportunities Portfolio
BlackRock International Value Fund
BlackRock Large Cap Core Fund
BlackRock Large Cap Core Plus 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 Science & Technology Opportunities Portfolio
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 U.S. Opportunities Portfolio
BlackRock Utilities and Telecommunications Fund
BlackRock Value Opportunities Fund
Fixed Income Funds
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 currently distributed by BlackRock Investments, Inc.
You should consider the investment objectives, risks, charges and expenses of
the funds under consideration carefully before investing. Each fund's prospectus
contains this and other information and is available at www.blackrock.com or by
calling (800) 882-0052 or from your financial advisor. The prospectus should be
read carefully before investing.
SEMI-ANNUAL REPORT NOVEMBER 30, 2008 103
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
Funds' current prospectus. Past performance results shown in this report should
not be considered a representation of future performance. Investment returns and
principal value of shares will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Statements and other information
herein are as dated and are subject to change.
BLACKROCK
#MUNI5-11/08
Item 2 - Code of Ethics - Not Applicable to this semi-annual report
Item 3 - Audit Committee Financial Expert - Not Applicable to this
semi-annual report
Item 4 - Principal Accountant Fees and Services - Not Applicable to this
semi-annual report
Item 5 - Audit Committee of Listed Registrants - Not Applicable
Item 6 - Investments
(a) The registrant's Schedule of Investments is included as part of
the Report to Stockholders filed under Item 1 of this form.
(b) Not Applicable due to no such divestments during the semi-annual
period covered since the previous Form N-CSR filing.
Item 7 - Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies - Not Applicable
Item 8 - Portfolio Managers of Closed-End Management Investment Companies -
Not Applicable
Item 9 - Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers - Not Applicable
Item 10 - Submission of Matters to a Vote of Security Holders - The
registrant's Nominating and Governance Committee will consider
nominees to the board of directors recommended by shareholders when
a vacancy becomes available. Shareholders who wish to recommend a
nominee should send nominations that include biographical
information and set forth the qualifications of the proposed nominee
to the registrant's Secretary. There have been no material changes
to these procedures.
Item 11 - Controls and Procedures
11(a) - The registrant's principal executive and principal financial
officers or persons performing similar functions have concluded that
the registrant's disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940, as amended
(the "1940 Act")) are effective as of a date within 90 days of the
filing of this report based on the evaluation of these controls and
procedures required by Rule 30a-3(b) under the 1940 Act and Rule
15(d)-15(b) under the Securities Exchange Act of 1934, as amended.
11(b) - There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)
that occurred during the last fiscal half-year that have materially
affected, or are reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 12 - Exhibits attached hereto
12(a)(1) - Code of Ethics - Not Applicable to this semi-annual report
12(a)(2) - Certifications - Attached hereto
12(a)(3) - Not Applicable
12(b) - Certifications - Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock California Insured Municipal Bond Fund of BlackRock California
Municipal Series Trust
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer of
BlackRock California Insured Municipal Bond Fund of
BlackRock California Municipal Series Trust
Date: January 20, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Donald C. Burke
-------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock California Insured Municipal Bond Fund of
BlackRock California Municipal Series Trust
Date: January 20, 2009
By: /s/ Neal J. Andrews
-------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock California Insured Municipal Bond Fund of
BlackRock California Municipal Series Trust
Date: January 20, 2009