UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-08349
Name of Fund: BlackRock MuniHoldings Investment Quality Fund (MFL)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniHoldings Investment Quality Fund, 55 East 52nd Street, New York, NY 10055
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 08/31/2012
Date of reporting period: 02/29/2012
Item 1 – Report to Stockholders
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February 29, 2012 |
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Semi-Annual Report (Unaudited) |
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BlackRock Municipal Bond Investment Trust (BIE) |
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BlackRock Municipal Bond Trust (BBK) |
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BlackRock Municipal Income Investment Quality Trust (BAF) |
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BlackRock Municipal Income Quality Trust (BYM) |
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BlackRock Municipal Income Trust II (BLE) |
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BlackRock MuniHoldings Investment Quality Fund (MFL) |
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BlackRock MuniVest Fund, Inc. (MVF) |
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Not FDIC Insured § No Bank Guarantee § May Lose Value |
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Table of Contents |
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Page |
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3 |
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Semi-Annual Report: |
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4 |
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5 |
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12 |
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12 |
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Financial Statements: |
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13 |
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43 |
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44 |
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45 |
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47 |
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49 |
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56 |
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65 |
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66 |
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2 |
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
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Risk assets were advancing at this time last year despite a wave of geopolitical revolutions, soaring oil prices and natural disasters in Japan. Markets reversed sharply in May, however, when escalating political strife in Greece rekindled fears about sovereign debt problems spreading across Europe. Concurrently, global economic indicators signaled that the recovery had slowed. Confidence was further shaken by the prolonged debt ceiling debate in Washington, DC. On August 5, 2011, Standard & Poors downgraded the US governments credit rating and turmoil erupted in financial markets around the world. Extraordinary levels of volatility persisted in the months that followed as Greece teetered on the brink of default, debt problems escalated in Italy and Spain, and exposure to European sovereign bonds stressed banks globally. Financial markets whipsawed on hopes and fears. Macro news flow became a greater influence on trading decisions than the fundamentals of the securities traded. By the end of the third quarter, equity markets had fallen nearly 20% from their April peak while safe-haven assets such as US Treasuries and gold had rallied to historic highs.
October brought enough positive economic data to assuage fears of a global double-dip recession. Additionally, European leaders began to show progress toward stemming the regions debt crisis. Investors began to reenter the markets and risk assets recovered through the month. But a lack of definitive details about Europes rescue plan eventually raised doubts among investors and thwarted the rally at the end of October. The last two months of 2011 saw more political instability in Greece, unsustainable yields on Italian government bonds, and US policymakers in gridlock over budget issues. Global central bank actions and improving economic data invigorated the markets, but investor confidence was easily tempered by sobering news flow.
Investors showed more optimism at the start of 2012. Risk assets rallied through January and February as economic data grew stronger and debt problems in Europe stabilized. In the United States, jobs data signaled solid improvement in the labor market and the Federal Reserve indicated that it would keep short-term interest rates low through 2014. In Europe, policymakers made significant progress toward securing a Greek bailout plan and restructuring the nations debt. Nevertheless, considerable head-winds remain. Europe faces a prolonged recession, the US economy still remains somewhat shaky and the risks of additional flare ups of euro-zone debt problems and slowing growth in China weigh heavily on the future of the global economy.
Risk assets, including equities and high yield bonds, recovered their late-summer losses and posted strong returns for the 6-month period ended February 29, 2012. On a 12-month basis, US large-cap stocks and high yield bonds delivered positive results, while small-cap and emerging-market stocks finished slightly negative. International markets, which experienced some significant downturns in 2011, lagged the broader rebound. Fixed income securities, which benefited from declining yields, advanced over the 6- and 12-month periods. Despite their quality rating downgrade, US Treasury bonds performed particularly well. Municipal bonds also delivered superior results. Continued low short-term interest rates kept yields on money market securities near their all-time lows.
Many of the themes that caused uncertainty in 2011 remain. For investors, the risks appear daunting, but this challenging environment offers new opportunities. BlackRock was built for these times. Visit blackrock.com/newworld for more information.
Sincerely
Rob Kapito
President, BlackRock
Advisors, LLC
For investors, the risks appear daunting, but this challenging environment offers new opportunities. BlackRock was built for these times.
Rob Kapito
President, BlackRock
Advisors, LLC
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Total Returns as of February 29, 2012 |
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6-month |
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12-month |
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US large cap
equities |
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13.31 |
% |
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5.12 |
% |
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US small cap
equities |
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12.40 |
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(0.15 |
) |
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International
equities |
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4.13 |
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(7.45 |
) |
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Emerging
market |
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5.27 |
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(0.11 |
) |
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3-month
Treasury |
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0.00 |
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0.08 |
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US Treasury
securities |
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3.70 |
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17.22 |
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US
investment grade bonds |
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2.73 |
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8.37 |
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Tax-exempt
municipal |
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5.93 |
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12.88 |
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US high
yield bonds |
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8.62 |
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6.92 |
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Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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THIS PAGE NOT PART OF YOUR FUND REPORT |
3 |
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For the 12-Month Period Ended February 29, 2012 |
One year ago, the municipal bond market was steadily recovering from a difficult fourth quarter of 2010 that brought severe losses amid a steepening US Treasury yield curve and a flood of inflated headlines about municipal finance troubles. Retail investors had lost confidence in municipals and retreated from the market. Political uncertainty surrounding the midterm elections and tax policies exacerbated the situation. These conditions combined with seasonal illiquidity weakened willful market participation from the trading community. December 2010 brought declining demand with no comparable reduction in supply as issuers rushed their deals to market before the Build America Bond program was retired. This supply-demand imbalance led to wider quality spreads and higher yields for municipal bonds heading into 2011.
Demand is usually strong at the beginning of a new year, but retail investors continued to move away from municipal mutual funds in the first half of 2011. From the middle of November 2010, outflows persisted for 29 consecutive weeks, totaling $35.1 billion before the trend finally broke in June 2011. However, weak demand was counterbalanced by lower supply in 2011. According to Thomson Reuters, new issuance was down 32% in 2011 as compared to the prior year. While these technical factors were improving, municipalities were struggling to balance their budgets, although the late-2010 predictions for widespread municipal defaults did not materialize. Other concerns that resonated at the beginning of the year, such as rising interest rates, weakening credits and higher rates of inflation, abated as these scenarios also did not come to fruition.
On August 5, 2011, Standard & Poors (S&P) downgraded the US governments credit rating from AAA to AA+. While this led to the downgrade of approximately 11,000 municipal issues directly tied to the US debt rating, this represented a very small fraction of the municipal market and said nothing about the individual municipal credits themselves. In fact, demand for municipal bonds increased as severe volatility in US equities drove investors to more stable asset classes. The municipal market benefited from an exuberant Treasury market and continued muted new issuance. As supply remained constrained, demand from both traditional and non-traditional buyers was strong, pushing long-term municipal bond yields lower and sparking a curve-flattening trend that continued through year end. Ultimately, 2011 was one of the strongest performance years in municipal market history. The S&P Municipal Bond Index returned 10.62% in 2011, making municipal bonds a top-performing fixed income asset class for the year.
Market technicals often begin a new year quite strong, only to moderate by the end of February as increasing supply begins to satisfy demand. This theme remained intact for 2012. Overall, the municipal yield curve flattened during the period from February 28, 2011 to February 29, 2012. As measured by Thomson Municipal Market Data, yields declined by 146 basis points (bps) to 3.23% on AAA-rated 30-year municipal bonds and by 112 bps to 1.85% on 10-year bonds, while yields on 5-year issues fell 108 bps to 0.68%. While the entire municipal curve flattened over the 12-month time period, the spread between 2- and 30-year maturities tightened by 101 bps, and in the 2- to 10-year range, the spread tightened by 67 bps.
The fundamental picture for municipalities continues to improve. Austerity has been the general theme across the country, while a small number of states continue to rely on a kick-the-can approach to close their budget shortfalls, with aggressive revenue projections and accounting gimmicks. It has been over a year since the first highly publicized interview about the fiscal problems plaguing state and local governments. Thus far, the prophecy of widespread defaults across the municipal market has not materialized. In 2011, there were fewer municipal defaults than seen in 2010. Throughout 2011 monetary defaults in the S&P Municipal Bond Index totaled roughly $805 million, representing less than 0.48% of the index. BlackRock maintains the view that municipal bond defaults will remain in the periphery and the overall market is fundamentally sound. We continue to recognize that careful credit research and security selection remain imperative amid uncertainty in this economic environment.
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
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4 |
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
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BlackRock Municipal Bond Investment Trust |
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Trust Overview |
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BlackRock Municipal Bond Investment Trusts (BIE) (the Trust) investment objective is to provide current income exempt from regular federal income tax and Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. |
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No assurance can be given that the Trusts investment objective will be achieved. |
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Performance |
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For the six months ended February 29, 2012, the Trust returned 17.53% based on market price and 13.50% based on net asset value (NAV). For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 14.97% based on market price and 11.83% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. As the yield curve flattened during the period (longer-term interest rates fell more than shorter-term rates), rising bond prices in the long end of the municipal curve contributed positively to the Trusts performance. The Trusts longer-dated holdings in the health, transportation and education sectors experienced the strongest price appreciation. |
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The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results. |
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Trust Information |
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Symbol on New York Stock Exchange (NYSE) |
BIE |
Initial Offering Date |
April 30, 2002 |
Yield on Closing Market Price as of February 29, 2012 ($16.19)1 |
6.00% |
Tax Equivalent Yield2 |
9.23% |
Current Monthly Distribution per Common Share3 |
$0.0810 |
Current Annualized Distribution per Common Share3 |
$0.9720 |
Economic Leverage as of February 29, 20124 |
38% |
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1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
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2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
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3 |
The distribution rate is not constant and is subject to change. |
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4 |
Represents Variable Rate Demand Preferred Shares (VRDP Shares) and tender option bond trusts (TOBs) as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Trusts market price and NAV per share:
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2/29/12 |
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8/31/11 |
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Change |
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High |
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Low |
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Market Price |
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$16.19 |
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$14.22 |
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13.85% |
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$16.60 |
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$14.18 |
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Net Asset Value |
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$16.13 |
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$14.67 |
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9.95% |
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$16.19 |
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$14.67 |
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The following charts show the sector and credit quality allocations of the Trusts long-term investments:
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Sector Allocations |
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2/29/12 |
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8/31/11 |
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Transportation |
21 |
% |
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21 |
% |
County/City/Special District/School District |
21 |
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17 |
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Utilities |
17 |
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19 |
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Health |
15 |
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23 |
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State |
10 |
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6 |
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Education |
9 |
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7 |
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Housing |
5 |
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5 |
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Corporate |
1 |
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1 |
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Tobacco |
1 |
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1 |
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Credit Quality Allocations5 |
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2/29/12 |
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8/31/11 |
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AAA/Aaa |
11 |
% |
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10 |
% |
AA/Aa |
64 |
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62 |
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A |
19 |
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21 |
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BBB/Baa |
5 |
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6 |
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BB/Ba |
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1 |
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Not Rated |
1 |
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5 |
Using the higher of Standard & Poors (S&Ps) or Moodys Investors Service (Moodys) ratings. |
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SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
5 |
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Trust Summary as of February 29, 2012 |
BlackRock Municipal Bond Trust |
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Trust Overview |
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No assurance can be given that the Trusts investment objective will be achieved. |
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Performance |
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The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results. |
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Trust Information |
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Symbol on NYSE |
BBK |
Initial Offering Date |
April 30, 2002 |
Yield on Closing Market Price as of February 29, 2012 ($16.81)1 |
6.32% |
Tax Equivalent Yield2 |
9.72% |
Current Monthly Distribution per Common Share3 |
$0.0885 |
Current Annualized Distribution per Common Share3 |
$1.0620 |
Economic Leverage as of February 29, 20124 |
35% |
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|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
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2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
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3 |
The distribution rate is not constant and is subject to change. |
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4 |
Represents Variable Rate Muni Term Preferred Shares (VMTP Shares) and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Trusts market price and NAV per share:
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2/29/12 |
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8/31/11 |
|
Change |
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High |
|
Low |
|
Market Price |
|
$16.81 |
|
$14.86 |
|
13.12% |
|
$17.44 |
|
$14.80 |
|
Net Asset Value |
|
$16.06 |
|
$14.48 |
|
10.91% |
|
$16.10 |
|
$14.48 |
|
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
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Sector Allocations |
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||||
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||||
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2/29/12 |
|
8/31/11 |
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||||
Health |
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|
20 |
% |
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21 |
% |
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State |
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|
15 |
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14 |
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Education |
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13 |
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10 |
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County/City/Special District/School District |
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13 |
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12 |
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Transportation |
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12 |
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10 |
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Housing |
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10 |
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14 |
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Corporate |
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9 |
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10 |
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Utilities |
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5 |
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7 |
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Tobacco |
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3 |
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2 |
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Credit Quality Allocations5 |
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||||
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||||
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2/29/12 |
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8/31/11 |
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AAA/Aaa |
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6 |
% |
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11 |
% |
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AA/Aa |
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|
39 |
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35 |
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A |
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|
25 |
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|
18 |
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BBB/Baa |
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18 |
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22 |
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BB/Ba |
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5 |
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1 |
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B |
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1 |
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6 |
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CCC/Caa |
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1 |
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Not Rated6 |
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6 |
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6 |
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5 |
Using the higher of S&Ps or Moodys ratings. |
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6 |
The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2012 and August 31, 2011, the market value of these securities was $3,120,455, representing 1%, and $4,646,558, representing 2%, respectively, of the Trusts long-term investments. |
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6 |
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
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Trust Summary as of February 29, 2012 |
BlackRock Municipal Income Investment Quality Trust |
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Trust Overview |
BlackRock Municipal Income Investment Quality Trusts (BAF) (the Trust) investment objective is to provide current income exempt from federal income tax, including the alternative minimum tax and Florida intangible property tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in municipal bonds exempt from federal income taxes, including the alternative minimum tax. The Trust also invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
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|
|
No assurance can be given that the Trusts investment objective will be achieved. |
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|
Performance |
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|
|
For the six months ended February 29, 2012, the Trust returned 16.65% based on market price and 13.40% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 14.97% based on market price and 11.83% based on NAV. All returns reflect reinvestment of dividends. The Trusts discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. As the yield curve flattened during the period (longer-term interest rates fell more than shorter-term rates), rising bond prices in the long end of the municipal curve contributed positively to the Trusts performance. The Trusts longer-dated holdings in the health, transportation and education sectors experienced the strongest price appreciation. |
|
|
|
|
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. |
|
|
Trust Information |
|
|
Symbol on NYSE |
BAF |
Initial Offering Date |
October 31, 2002 |
Yield on Closing Market Price as of February 29, 2012 ($15.76)1 |
5.67% |
Tax Equivalent Yield2 |
8.72% |
Current Monthly Distribution per Common Share3 |
$0.0745 |
Current Annualized Distribution per Common Share3 |
$0.8940 |
Economic Leverage as of February 29, 20124 |
35% |
|
|
|
|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
|
|
|
|
2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
|
|
|
|
3 |
The distribution rate is not constant and is subject to change. |
|
|
|
|
4 |
Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Trusts market price and NAV per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
2/29/12 |
|
8/31/11 |
|
Change |
|
High |
|
Low |
Market Price |
|
$15.76 |
|
$13.92 |
|
13.22% |
|
$16.17 |
|
$13.76 |
Net Asset Value |
|
$15.96 |
|
$14.50 |
|
10.07% |
|
$16.01 |
|
$14.50 |
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
|
|
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|
|
|
|
|
|
|
Sector Allocations |
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
|
2/29/12 |
|
8/31/11 |
|
||||
County/City/Special District/School District |
|
|
29 |
% |
|
|
34 |
% |
|
Utilities |
|
|
29 |
|
|
|
22 |
|
|
Transportation |
|
|
17 |
|
|
|
16 |
|
|
Health |
|
|
11 |
|
|
|
9 |
|
|
Education |
|
|
6 |
|
|
|
9 |
|
|
State |
|
|
6 |
|
|
|
8 |
|
|
Housing |
|
|
1 |
|
|
|
1 |
|
|
Tobacco |
|
|
1 |
|
|
|
1 |
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|
|
|
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|
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|
||||
Credit Quality Allocations5 |
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|
|
|
|
||||
|
|
|
|
|
|
||||
|
|
2/29/12 |
|
8/31/11 |
|
||||
AAA/Aaa |
|
|
7 |
% |
|
|
14 |
% |
|
AA/Aa |
|
|
78 |
|
|
|
70 |
|
|
A |
|
|
14 |
|
|
|
12 |
|
|
BBB/Baa |
|
|
1 |
|
|
|
4 |
|
|
|
|
|
|
5 |
Using the higher of S&Ps or Moodys ratings. |
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|
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
7 |
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|
|
Trust Summary as of February 29, 2012 |
BlackRock Municipal Income Quality Trust |
|
|
Trust Overview |
BlackRock Municipal Income Quality Trusts (BYM) (the Trust) investment objective is to provide current income exempt from federal income taxes, including the alternative minimum tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its assets in municipal bonds exempt from federal income taxes, including the alternative minimum tax. The Trust also invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
|
|
|
No assurance can be given that the Trusts investment objective will be achieved. |
|
|
|
|
Performance |
|
|
|
For the six months ended February 29, 2012, the Trust returned 17.33% based on market price and 13.28% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 14.97% based on market price and 11.83% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. During the period, the Trust benefited from the declining interest rate environment (bond prices rise when interest rates fall), the flattening of the yield curve (long-term interest rates fell more than short and intermediate rates) and tightening of credit spreads. The Trusts exposure to zero-coupon bonds and the health sector had a positive impact on performance as these holdings derived the greatest benefit from the decline in interest rates and spread tightening during the period. |
|
|
|
|
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. |
|
|
|
|
Trust Information |
|
|
Symbol on NYSE |
BYM |
Initial Offering Date |
October 31, 2002 |
Yield on Closing Market Price as of February 29, 2012 ($15.75)1 |
5.87% |
Tax Equivalent Yield2 |
9.03% |
Current Monthly Distribution per Common Share3 |
$0.0770 |
Current Annualized Distribution per Common Share3 |
$0.9240 |
Economic Leverage as of February 29, 20124 |
36% |
|
|
|
|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
|
|
|
|
2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
|
|
|
|
3 |
The Monthly Distribution per Common Share, declared on March 1, 2012, was increased to $0.0780 per share. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. |
|
|
|
|
4 |
Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Trusts market price and NAV per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
2/29/12 |
|
8/31/11 |
|
Change |
|
High |
|
Low |
Market Price |
|
$15.75 |
|
$13.85 |
|
13.72% |
|
$15.86 |
|
$13.76 |
Net Asset Value |
|
$15.47 |
|
$14.09 |
|
9.79% |
|
$15.52 |
|
$14.09 |
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
|
|
|
|
|
|
|
|
|
|
Sector Allocations |
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
|
2/29/12 |
|
8/31/11 |
|
||||
Transportation |
|
|
23 |
% |
|
|
24 |
% |
|
County/City/Special District/School District |
|
|
20 |
|
|
|
18 |
|
|
Utilities |
|
|
18 |
|
|
|
21 |
|
|
State |
|
|
15 |
|
|
|
14 |
|
|
Health |
|
|
9 |
|
|
|
8 |
|
|
Education |
|
|
6 |
|
|
|
6 |
|
|
Tobacco |
|
|
5 |
|
|
|
6 |
|
|
Corporate |
|
|
3 |
|
|
|
2 |
|
|
Housing |
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
||||
Credit Quality Allocations5 |
|
|
|
|
|
||||
|
|
|
|
|
|
||||
|
|
2/29/12 |
|
8/31/11 |
|
||||
AAA/Aaa |
|
|
28 |
% |
|
|
21 |
% |
|
AA/Aa |
|
|
49 |
|
|
|
58 |
|
|
A |
|
|
14 |
|
|
|
13 |
|
|
BBB/Baa |
|
|
9 |
|
|
|
8 |
|
|
|
|
|
|
5 |
Using the higher of S&Ps or Moodys ratings. |
|
|
|
|
|
|
8 |
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
|
|
|
|
|
|
Trust Summary as of February 29, 2012 |
BlackRock Municipal Income Trust II |
|
|
Trust Overview |
|
|
|
|
No assurance can be given that the Trusts investment objective will be achieved. |
|
|
Performance |
For the six months ended February 29, 2012, the Trust returned 15.47% based on market price and 13.99% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 14.97% based on market price and 11.83% based on NAV. All returns reflect reinvestment of dividends. The Trusts premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. Among contributing factors, the most significant were the Trusts duration profile (sensitivity to interest rate movements) and yield curve positioning, both of which were designed to benefit in an environment where interest rates moved broadly lower and, more specifically, where long-term municipal yields decline relative to short-term yields. Security selection and sector allocation also provided meaningful contributions to the Trusts performance. Most notably, the Trusts holdings in transportation, health and tobacco boosted returns as these sectors outperformed the broader market during the period. The Trusts investments in local municipalities and school districts within the tax-backed sector were a modest drag on returns as these segments tended to underperform the overall 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. |
|
|
Trust Information |
|
|
|
|
|
|
Symbol on NYSE Amex |
|
|
BLE |
|
|
Initial Offering Date |
|
|
July 30, 2002 |
|
|
Yield on Closing Market Price as of February 29, 2012 ($15.77)1 |
|
|
6.35% |
|
|
Tax Equivalent Yield2 |
|
|
9.77% |
|
|
Current Monthly Distribution per Common Share3 |
|
$ |
0.0835 |
|
|
Current Annualized Distribution per Common Share3 |
|
$ |
1.0020 |
|
|
Economic Leverage as of February 29, 20124 |
|
|
38% |
|
|
|
|
|
|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
|
||
|
2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
|
||
|
3 |
The Monthly Distribution per Common Share, declared on March 1, 2012, was increased to $0.0850 per share. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future. |
|
||
|
4 |
Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12. |
The table below summarizes the changes in the Trusts market price and NAV per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2/29/12 |
|
8/31/11 |
|
Change |
|
High |
|
Low |
|
|||||
Market Price |
|
$ |
15.77 |
|
$ |
14.13 |
|
|
11.61% |
|
$ |
16.05 |
|
$ |
13.85 |
|
Net Asset Value |
|
$ |
15.38 |
|
$ |
13.96 |
|
|
10.17% |
|
$ |
15.40 |
|
$ |
13.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sector Allocations |
|
|
|
|
|
||||
|
|
2/29/12 |
|
8/31/11 |
|
||||
Health |
|
|
19 |
% |
|
|
21 |
% |
|
Transportation |
|
|
17 |
|
|
|
13 |
|
|
State |
|
|
16 |
|
|
|
16 |
|
|
Utilities |
|
|
14 |
|
|
|
13 |
|
|
Corporate |
|
|
9 |
|
|
|
10 |
|
|
County/City/Special District |
|
|
9 |
|
|
|
10 |
|
|
Education |
|
|
8 |
|
|
|
8 |
|
|
Tobacco |
|
|
5 |
|
|
|
4 |
|
|
Housing |
|
|
3 |
|
|
|
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Allocations5 |
|
|
|
|
|
|
|
|
|
|
|
2/29/12 |
|
8/31/11 |
|
||||
AAA/Aaa |
|
|
10 |
% |
|
|
10 |
% |
|
AA/Aa |
|
|
34 |
|
|
|
32 |
|
|
A |
|
|
27 |
|
|
|
26 |
|
|
BBB/Baa |
|
|
17 |
|
|
|
16 |
|
|
BB/Ba |
|
|
2 |
|
|
|
5 |
|
|
B |
|
|
3 |
|
|
|
4 |
|
|
Not Rated6 |
|
|
7 |
|
|
|
7 |
|
|
|
|
|
|
5 |
Using the higher of S&Ps or Moodys ratings. |
|
||
|
6 |
The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2012 and August 31, 2011, the market value of these securities was $15,304,944, representing 3%, and $11,677,703, representing 2%, respectively, of the Trusts long-term investments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust Summary as of February 29, 2012 |
BlackRock MuniHoldings Investment Quality Fund |
|
|
Trust Overview |
BlackRock MuniHoldings Investment Quality Funds (MFL) (the Trust) investment objective is to provide shareholders with current income exempt from federal income tax and to provide shareholders with the opportunity to own shares the value of which is exempt from Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). Under normal market conditions, the Trust invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trusts investment objective will be achieved.
|
Performance |
For the six months ended February 29, 2012, the Trust returned 14.18% based on market price and 13.02% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 14.97% based on market price and 11.83% based on NAV. All returns reflect reinvestment of dividends. The Funds discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. As the yield curve flattened during the period (longer-term interest rates fell more than shorter-term rates), rising bond prices in the long end of the municipal curve contributed positively to the Trusts performance. The Trusts longer-dated holdings in the health, transportation and education sectors experienced the strongest price appreciation.
|
|
|
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. |
|
|
|
|
|
|
|
|
|
|
Trust Information |
|
|
|
|
Symbol on NYSE |
|
|
MFL |
|
Initial Offering Date |
|
|
September 26, 1997 |
|
Yield on Closing Market Price as of February 29, 2012 ($15.31)1 |
|
|
6.00% |
|
Tax Equivalent Yield2 |
|
|
9.23% |
|
Current Monthly Distribution per Common Share3 |
|
|
$0.0765 |
|
Current Annualized Distribution per Common Share3 |
|
|
$0.9180 |
|
Economic Leverage as of February 29, 20124 |
|
|
39% |
|
|
|
|
|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
|
||
|
2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
|
||
|
3 |
The distribution rate is not constant and is subject to change. |
|
||
|
4 |
Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2/29/12 |
|
8/31/11 |
|
Change |
|
High |
|
Low |
|
|||||
Market Price |
|
$ |
15.31 |
|
$ |
13.84 |
|
|
10.62% |
|
$ |
15.39 |
|
$ |
13.20 |
|
Net Asset Value |
|
$ |
15.33 |
|
$ |
14.00 |
|
|
9.50% |
|
$ |
15.40 |
|
$ |
14.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sector Allocations |
|
|
|
|
|
|
|
|
|
|
|
2/29/12 |
|
8/31/11 |
|
||||
Transportation |
|
|
24 |
% |
|
|
25 |
% |
|
Utilities |
|
|
21 |
|
|
|
25 |
|
|
County/City/Special District/School District |
|
|
21 |
|
|
|
18 |
|
|
State |
|
|
11 |
|
|
|
10 |
|
|
Health |
|
|
10 |
|
|
|
11 |
|
|
Education |
|
|
9 |
|
|
|
6 |
|
|
Housing |
|
|
3 |
|
|
|
4 |
|
|
Tobacco |
|
|
1 |
|
|
|
1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Allocations5 |
|
|
|
|
|
|
|
|
|
|
|
2/29/12 |
|
8/31/11 |
|
||||
AAA/Aaa |
|
|
9 |
% |
|
|
12 |
% |
|
AA/Aa |
|
|
76 |
|
|
|
72 |
|
|
A |
|
|
14 |
|
|
|
12 |
|
|
BBB/Baa |
|
|
1 |
|
|
|
2 |
|
|
Not Rated6 |
|
|
|
|
|
|
2 |
|
|
|
|
|
|
5 |
Using the higher of S&Ps or Moodys ratings. |
|
||
|
6 |
The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2012 and August 31, 2011, the market value of these securities was $1,114,020 and $3,979,631, each representing less than 1%, respectively, of the Trusts long-term investments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust Summary as of February 29, 2012 |
BlackRock MuniVest Fund, Inc. |
|
|
Trust Overview |
BlackRock MuniVest Fund, Inc.s (MVF) (the Trust) investment objective is to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, primarily in long term municipal obligations rated investment grade at the time of investment and invests primarily in long term municipal obligations with maturities of more than ten years at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.
|
|
Performance |
For the six months ended February 29, 2012, the Trust returned 14.27% based on market price and 11.65% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 14.97% based on market price and 11.83% based on NAV. All returns reflect reinvestment of dividends. The Funds premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. During the period, municipal bond prices generally rose as the yield curve flattened (longer-term interest rates fell more than shorter-term rates) and credit spreads tightened. Given these market conditions, the Funds exposure to longer-maturity bonds and lower-quality investment grade bonds had a significant positive impact on the Funds performance. The Funds exposure to zero-coupon bonds and the health sector also boosted returns as these types of bonds derived the greatest benefit from the decline in interest rates and spread tightening during the period.
|
|
|
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. |
|
|
|
|
|
|
|
|
|
|
Trust Information |
|
|
|
|
Symbol on NYSE Amex |
|
|
MVF |
|
Initial Offering Date |
|
September 29, 1988 |
||
Yield on Closing Market Price as of February 29, 2012 ($10.73)1 |
|
|
6.60% |
|
Tax Equivalent Yield2 |
|
|
10.15% |
|
Current Monthly Distribution per Common Share3 |
|
$ |
0.0590 |
|
Current Annualized Distribution per Common Share3 |
|
$ |
0.7080 |
|
Economic Leverage as of February 29, 20124 |
|
|
40% |
|
|
|
|
|
1 |
Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
|
||
|
2 |
Tax equivalent yield assumes the maximum federal tax rate of 35%. |
|
||
|
3 |
The distribution rate is not constant and is subject to change. |
|
||
|
4 |
Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 12. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2/29/12 |
|
8/31/11 |
|
Change |
|
High |
|
Low |
|
|||||
Market Price |
|
$ |
10.73 |
|
$ |
9.73 |
|
|
10.28% |
|
$ |
10.99 |
|
$ |
9.63 |
|
Net Asset Value |
|
$ |
10.29 |
|
$ |
9.55 |
|
|
7.75% |
|
$ |
10.32 |
|
$ |
9.55 |
|
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sector Allocations |
|
|
|
|
|
|
|
|
|
|
|
2/29/12 |
|
8/31/11 |
|
||||
Health |
|
|
23 |
% |
|
|
23 |
% |
|
Transportation |
|
|
19 |
|
|
|
17 |
|
|
Corporate |
|
|
12 |
|
|
|
13 |
|
|
Utilities |
|
|
12 |
|
|
|
12 |
|
|
County/City/Special District/School District |
|
|
9 |
|
|
|
9 |
|
|
Education |
|
|
9 |
|
|
|
9 |
|
|
State |
|
|
8 |
|
|
|
8 |
|
|
Housing |
|
|
6 |
|
|
|
7 |
|
|
Tobacco |
|
|
2 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Allocations5 |
|
|
|
|
|
|
|
|
|
|
|
|
2/29/12 |
|
|
|
8/31/11 |
|
|
AAA/Aaa |
|
|
12% |
|
|
|
12% |
|
|
AA/Aa |
|
|
47 |
|
|
|
46 |
|
|
A |
|
|
24 |
|
|
|
22 |
|
|
BBB/Baa |
|
|
14 |
|
|
|
15 |
|
|
BB/Ba |
|
|
|
|
|
|
1 |
|
|
B |
|
|
1 |
|
|
|
1 |
|
|
Not Rated6 |
|
|
2 |
|
|
|
3 |
|
|
|
|
|
|
5 |
Using the higher of S&Ps or Moodys ratings. |
|
||
|
6 |
The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 29, 2012 and August 31, 2011, the market value of these securities was $19,911,457 and $22,724,541, each representing2%, respectively, of the Trusts long-term investments. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Trusts may utilize leverage to seek to enhance the yield and NAV of their common shares (Common Shares). However, these objectives cannot be achieved in all interest rate environments.
To obtain leverage, the Trusts issue Variable Rate Demand Preferred Shares (VRDP Shares) or Variable Rate Muni Term Preferred Shares (VMTP Shares) and previously issued and had outstanding Auction Market Preferred Shares (AMPS) (VRDP Shares, VMTP Shares, and as applicable AMPS, are collectively referred to as Preferred Shares). Preferred Shares pay dividends at prevailing short-term interest rates, and the Trusts invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Trust on its longer-term portfolio investments. To the extent that the total assets of each Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Trusts shareholders will benefit from the incremental net income.
To illustrate these concepts, assume a Trusts Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates.At the same time, the securities purchased by the Trust with assets received from Preferred Shares issuance earn income based on long-term interest rates. In this case, the dividends paid to holders of Preferred Shares (Preferred Shareholders) are significantly lower than the income earned on the Trusts long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental net income.
If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates, the yield curve has a negative slope. In this case, the Trust pays higher short-term interest rates whereas the Trusts total portfolio earns income based on lower long-term interest rates.
Furthermore, the value of the Trusts portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Trusts Preferred Shares and/or debt securities does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts NAVs positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares and borrowings discussed above.
The Trusts may also leverage their assets through the use of tender option bond trusts (TOBs), as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Trusts with economic benefits in periods of declining short-term interest rates, but expose the Trusts to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trusts, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect each Trusts NAV per share.
The use of leverage may enhance opportunities for increased income to the Trusts and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts NAVs, market prices and dividend rates than comparable portfolios without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Trusts net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, each Trusts net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. Each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause a Trust to incur losses. The use of leverage may limit each Trusts ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by rating agencies that rate the Preferred Shares issued by the Trusts. Each Trust will incur expenses in connection with the use of leverage, all of which are borne by the Common Shareholders and may reduce income to the Common Shares.
Under the Investment Company Act of 1940, as amended (the 1940 Act), the Trusts are permitted to issue senior securities in the form of equity securities (e.g., Preferred Shares) up to 50% of their total managed assets (each Trusts net assets plus the proceeds of any outstanding borrowings). In addition, each Trust voluntarily limits its economic leverage to 45% of its total managed assets for Trusts with VRDP Shares or VMTP Shares. As of February 29, 2012, the Trusts had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:
|
|
|
Percent
of |
BIE |
38% |
BBK |
35% |
BAF |
35% |
BYM |
36% |
BLE |
38% |
MFL |
39% |
MVF |
40% |
|
|
The Trusts may invest in various derivative financial instruments, including financial futures contracts, as specified in Note 2 of the Notes to Financial Statements, which may constitute forms of economic leverage. Such derivative financial instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Derivative financial instruments involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the derivative financial instrument. The Trusts ability to use a derivative financial instrument successfully depends on the investment advisors ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may require a Trust to sell or purchase portfolio investments at inopportune times or for distressed values, may limit the amount of appreciation a Trust can realize on an investment, may result in lower dividends paid to shareholders or may cause a Trust to hold an investment that it might otherwise sell. The Trusts investments in these instruments are discussed in detail in the Notes to Financial Statements.
|
|
|
|
|
|
12 |
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
|
|
|
|
BlackRock Municipal Bond Investment Trust (BIE) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Alabama 0.3% |
|
|
|
|
|
|
|
Selma IDB, RB, International Paper Co. Project, Series A, |
|
$ |
145 |
|
$ |
151,883 |
|
Alaska 0.3% |
|
|
|
|
|
|
|
Northern Tobacco Securitization Corp., RB, Asset-Backed |
|
|
180 |
|
|
131,441 |
|
California 10.6% |
|
|
|
|
|
|
|
California Educational Facilities Authority, RB, University |
|
|
700 |
|
|
798,672 |
|
California Health Facilities Financing Authority, RB, |
|
|
90 |
|
|
97,782 |
|
California Health Facilities Financing Authority, |
|
|
120 |
|
|
137,341 |
|
Grossmont Union High School District, GO, Election of |
|
|
950 |
|
|
998,412 |
|
Los Angeles Department of Water & Power, RB, Power |
|
|
1,660 |
|
|
1,892,782 |
|
San Diego Regional Building Authority California, RB, |
|
|
850 |
|
|
943,067 |
|
State of California, GO, Various Purpose, 6.00%, |
|
|
685 |
|
|
820,048 |
|
|
|
|
|
|
|
5,688,104 |
|
Colorado 1.2% |
|
|
|
|
|
|
|
Colorado Health Facilities Authority, Refunding RB, |
|
|
580 |
|
|
640,256 |
|
Delaware 1.3% |
|
|
|
|
|
|
|
County of Sussex Delaware, RB, NRG Energy, Inc., |
|
|
655 |
|
|
705,468 |
|
District of Columbia 1.4% |
|
|
|
|
|
|
|
District of Columbia Water & Sewer Authority, RB, |
|
|
640 |
|
|
747,418 |
|
Florida 1.7% |
|
|
|
|
|
|
|
Orange County Health Facilities Authority, RB, |
|
|
415 |
|
|
453,076 |
|
Village Community Development District No. 9, RB, |
|
|
475 |
|
|
480,491 |
|
|
|
|
|
|
|
933,567 |
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Georgia 1.2% |
|
|
|
|
|
|
|
Municipal Electric Authority of Georgia, Refunding RB, |
|
$ |
555 |
|
$ |
667,837 |
|
Illinois 11.7% |
|
|
|
|
|
|
|
Chicago Board of Education Illinois, GO, Series A: |
|
|
|
|
|
|
|
5.50%, 12/01/39 |
|
|
500 |
|
|
566,100 |
|
5.00%, 12/01/41 |
|
|
565 |
|
|
609,285 |
|
Chicago Transit Authority, RB, Sales Tax Receipts |
|
|
165 |
|
|
183,629 |
|
City of Chicago Illinois, RB: |
|
|
|
|
|
|
|
OHare International Airport Revenue, General, |
|
|
1,590 |
|
|
1,913,629 |
|
Sales Tax Revenue, Series A, 5.25%, 1/01/38 |
|
|
205 |
|
|
229,737 |
|
Illinois Finance Authority, RB: |
|
|
|
|
|
|
|
Carle Foundation, Series A, 6.00%, 8/15/41 |
|
|
750 |
|
|
823,162 |
|
Navistar International, Recovery Zone, 6.50%, |
|
|
270 |
|
|
289,478 |
|
Northwestern Memorial Hospital, 6.00%, 8/15/39 |
|
|
1,000 |
|
|
1,148,040 |
|
Railsplitter Tobacco Settlement Authority, RB: |
|
|
|
|
|
|
|
5.50%, 6/01/23 |
|
|
365 |
|
|
420,400 |
|
6.00%, 6/01/28 |
|
|
105 |
|
|
117,482 |
|
|
|
|
|
|
|
6,300,942 |
|
Indiana 5.4% |
|
|
|
|
|
|
|
Indiana Finance Authority Wastewater Utility, RB, |
|
|
770 |
|
|
880,965 |
|
Indiana Municipal Power Agency, RB, Series B, 6.00%, |
|
|
1,190 |
|
|
1,353,208 |
|
Indianapolis Local Public Improvement Bond Bank, RB, |
|
|
605 |
|
|
688,599 |
|
|
|
|
|
|
|
2,922,772 |
|
Iowa 0.2% |
|
|
|
|
|
|
|
Iowa Tobacco Settlement Authority, RB, Asset-Backed, |
|
|
140 |
|
|
107,930 |
|
Kansas 1.9% |
|
|
|
|
|
|
|
Kansas Development Finance Authority, Refunding RB, |
|
|
900 |
|
|
1,038,420 |
|
Kentucky 3.8% |
|
|
|
|
|
|
|
Kentucky Economic Development Finance Authority, RB, |
|
|
350 |
|
|
392,501 |
|
|
|
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 following list:
|
|
AGC |
Assured Guaranty Corp. |
AGM |
Assured Guaranty Municipal Corp. |
AMBAC |
American Municipal Bond Assurance Corp. |
AMT |
Alternative Minimum Tax (subject to) |
BHAC |
Berkshire Hathaway Assurance Corp. |
CAB |
Capital Appreciation Bonds |
CIFG |
CDC IXIS Financial Guaranty |
COP |
Certificates of Participation |
EDA |
Economic Development Authority |
EDC |
Economic Development Corp. |
ERB |
Education Revenue Bonds |
FGIC |
Financial Guaranty Insurance Co. |
FHA |
Federal Housing Administration |
GARB |
General Airport Revenue Bonds |
GO |
General Obligation Bonds |
HDA |
Housing Development Authority |
HFA |
Housing Finance Agency |
HRB |
Housing Revenue Bonds |
IDA |
Industrial Development Authority |
IDB |
Industrial Development Board |
ISD |
Independent School District |
MRB |
Mortgage Revenue Bonds |
NPFGC |
National Public Finance Guarantee Corp. |
PSF-GTD |
Permanent School Fund Guaranteed |
Q-SBLF |
Qualified School Bond Loan Fund |
RB |
Revenue Bonds |
S/F |
Single Family |
SBPA |
Stand-by Purchase Agreement |
VRDN |
Variable Rate Demand Notes |
|
|
|
|
See Notes to Financial Statements. |
|||
|
|||
|
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
13 |
|
|
|
|
Schedule of Investments (continued) |
BlackRock Municipal Bond Investment Trust (BIE) |
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Kentucky (concluded) |
|
|
|
|
|
|
|
Louisville & Jefferson County Metropolitan Government, |
|
$ |
675 |
|
$ |
723,114 |
|
Louisville & Jefferson County Metropolitan Government |
|
|
800 |
|
|
928,360 |
|
|
|
|
|
|
|
2,043,975 |
|
Louisiana 0.8% |
|
|
|
|
|
|
|
Louisiana Local Government Environmental Facilities & |
|
|
380 |
|
|
424,498 |
|
Maine 1.5% |
|
|
|
|
|
|
|
Maine Health & Higher Educational Facilities Authority, |
|
|
675 |
|
|
776,763 |
|
Massachusetts 1.3% |
|
|
|
|
|
|
|
Massachusetts Development Finance Agency, |
|
|
375 |
|
|
427,144 |
|
Massachusetts State College Building Authority, RB, |
|
|
250 |
|
|
279,777 |
|
|
|
|
|
|
|
706,921 |
|
Michigan 3.4% |
|
|
|
|
|
|
|
Lansing Board of Water & Light, RB, Series A, 5.50%, |
|
|
485 |
|
|
561,678 |
|
Michigan State Building Authority, Refunding RB, |
|
|
500 |
|
|
570,175 |
|
Royal Oak Hospital Finance Authority Michigan, |
|
|
530 |
|
|
667,599 |
|
|
|
|
|
|
|
1,799,452 |
|
Multi-State 6.1% |
|
|
|
|
|
|
|
Centerline Equity Issuer Trust, 7.20%, 11/15/52 (a)(b) |
|
|
3,000 |
|
|
3,274,380 |
|
Nevada 7.9% |
|
|
|
|
|
|
|
City of Las Vegas Nevada, GO, Limited Tax, Performing |
|
|
1,000 |
|
|
1,162,530 |
|
County of Clark Nevada, RB: |
|
|
|
|
|
|
|
Motor Vehicle Fuel Tax, 5.00%, 7/01/28 |
|
|
1,130 |
|
|
1,265,193 |
|
Series B, 5.75%, 7/01/42 |
|
|
1,630 |
|
|
1,827,214 |
|
|
|
|
|
|
|
4,254,937 |
|
New Jersey 7.1% |
|
|
|
|
|
|
|
New Jersey EDA, Refunding RB, School Facilities |
|
|
750 |
|
|
850,433 |
|
New Jersey State Housing & Mortgage Finance Agency, |
|
|
620 |
|
|
665,818 |
|
New Jersey Transportation Trust Fund Authority, RB, |
|
|
|
|
|
|
|
Series A, 5.88%, 12/15/38 |
|
|
695 |
|
|
794,906 |
|
Series A, 5.50%, 6/15/41 |
|
|
500 |
|
|
571,055 |
|
Series B, 5.25%, 6/15/36 |
|
|
850 |
|
|
952,068 |
|
|
|
|
|
|
|
3,834,280 |
|
New York 6.9% |
|
|
|
|
|
|
|
Hudson New York Yards Infrastructure Corp., RB, |
|
|
145 |
|
|
163,833 |
|
New York City Transitional Finance Authority, RB: |
|
|
|
|
|
|
|
Building Aid, Sub-Series 1A, 5.25%, 7/15/37 |
|
|
1,000 |
|
|
1,130,290 |
|
Fiscal 2009, Series S-3, 5.25%, 1/15/39 |
|
|
1,000 |
|
|
1,098,420 |
|
New York Liberty Development Corp., Refunding RB, |
|
|
325 |
|
|
352,680 |
|
Triborough Bridge & Tunnel Authority, RB, General, |
|
|
840 |
|
|
952,770 |
|
|
|
|
|
|
|
3,697,993 |
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Pennsylvania 8.1% |
|
|
|
|
|
|
|
Pennsylvania Economic Development Financing |
|
$ |
300 |
|
$ |
346,380 |
|
Pennsylvania Turnpike Commission, RB: |
|
|
|
|
|
|
|
Sub-Series A, 5.63%, 12/01/31 |
|
|
1,000 |
|
|
1,135,580 |
|
Sub-Series A, 6.00%, 12/01/41 |
|
|
1,500 |
|
|
1,663,440 |
|
Sub-Series C (AGC), 6.25%, 6/01/38 |
|
|
500 |
|
|
594,895 |
|
Philadelphia Hospitals & Higher Education Facilities |
|
|
575 |
|
|
635,939 |
|
|
|
|
|
|
|
4,376,234 |
|
Texas 12.0% |
|
|
|
|
|
|
|
Central Texas Regional Mobility Authority, RB, Senior |
|
|
890 |
|
|
954,863 |
|
Conroe ISD Texas, GO, School Building, Series A, 5.75%, |
|
|
470 |
|
|
573,499 |
|
Harris County Cultural Education Facilities Finance |
|
|
340 |
|
|
387,607 |
|
Harris County Health Facilities Development Corp., |
|
|
250 |
|
|
301,412 |
|
Lamar Texas Consolidated Independent School District, |
|
|
350 |
|
|
395,083 |
|
North Texas Tollway Authority, RB, Special Projects |
|
|
900 |
|
|
1,035,837 |
|
North Texas Tollway Authority, Refunding RB, System, |
|
|
250 |
|
|
279,743 |
|
Tarrant County Cultural Education Facilities Finance |
|
|
1,020 |
|
|
1,165,982 |
|
Texas Private Activity Bond Surface Transportation |
|
|
500 |
|
|
566,705 |
|
University of Texas System, Refunding RB, Financing |
|
|
715 |
|
|
820,420 |
|
|
|
|
|
|
|
6,481,151 |
|
Virginia 1.6% |
|
|
|
|
|
|
|
Virginia Public School Authority, RB, School Financing, |
|
|
750 |
|
|
882,300 |
|
Washington 3.7% |
|
|
|
|
|
|
|
Port of Seattle, Refunding RB, Intermediate Lien, |
|
|
1,000 |
|
|
1,137,520 |
|
University of Washington, Refunding, RB, Series A, |
|
|
730 |
|
|
829,703 |
|
|
|
|
|
|
|
1,967,223 |
|
Wisconsin 1.8% |
|
|
|
|
|
|
|
Wisconsin Health & Educational Facilities Authority, RB, |
|
|
890 |
|
|
962,615 |
|
Total Municipal Bonds 103.2% |
|
|
|
|
|
55,518,760 |
|
|
|
|
See Notes to Financial Statements. |
||
|
||
14 |
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
|
|
|
|
Schedule of Investments (continued) |
BlackRock Municipal Bond Investment Trust (BIE) |
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal
Bonds Transferred to |
|
Par |
|
Value |
|
||
California 19.3% |
|
|
|
|
|
|
|
California Educational Facilities Authority, RB, University |
|
$ |
1,005 |
|
$ |
1,133,489 |
|
Grossmont Union High School District, GO, Election of |
|
|
1,300 |
|
|
1,419,340 |
|
Los Angeles Community College District California, GO, |
|
|
|
|
|
|
|
Series A, 6.00%, 8/01/33 |
|
|
2,079 |
|
|
2,482,119 |
|
Series C, 5.25%, 8/01/39 |
|
|
1,410 |
|
|
1,616,283 |
|
Los Angeles Unified School District California, GO, |
|
|
200 |
|
|
221,030 |
|
San Diego Public Facilities Financing Authority, |
|
|
2,234 |
|
|
2,571,339 |
|
University of California, RB, Series O, 5.75%, 5/15/34 |
|
|
810 |
|
|
947,141 |
|
|
|
|
|
|
|
10,390,741 |
|
District of Columbia 3.5% |
|
|
|
|
|
|
|
District of Columbia, RB, Series A, 5.50%, 12/01/30 |
|
|
735 |
|
|
879,810 |
|
District of Columbia Water & Sewer Authority, RB, |
|
|
899 |
|
|
1,016,294 |
|
|
|
|
|
|
|
1,896,104 |
|
Illinois 7.4% |
|
|
|
|
|
|
|
Illinois Finance Authority, RB, University of Chicago, |
|
|
1,500 |
|
|
1,773,735 |
|
Illinois State Toll Highway Authority, RB, Series B, 5.50%, |
|
|
2,000 |
|
|
2,190,333 |
|
|
|
|
|
|
|
3,964,068 |
|
Massachusetts 1.6% |
|
|
|
|
|
|
|
Massachusetts School Building Authority, RB, Senior |
|
|
790 |
|
|
886,807 |
|
Nevada 3.2% |
|
|
|
|
|
|
|
Clark County Water Reclamation District, GO, Limited |
|
|
1,500 |
|
|
1,743,840 |
|
New Hampshire 1.2% |
|
|
|
|
|
|
|
New Hampshire Health & Education Facilities Authority, |
|
|
585 |
|
|
664,618 |
|
New Jersey 2.0% |
|
|
|
|
|
|
|
New Jersey Transportation Trust Fund Authority, RB, |
|
|
1,000 |
|
|
1,079,640 |
|
New York 9.7% |
|
|
|
|
|
|
|
New York City Municipal Water Finance Authority, RB: |
|
|
|
|
|
|
|
Fiscal 2009, Series A, 5.75%, 6/15/40 |
|
|
750 |
|
|
870,539 |
|
Series FF-2, 5.50%, 6/15/40 |
|
|
990 |
|
|
1,141,631 |
|
New York State Dormitory Authority, ERB, Series B, |
|
|
1,000 |
|
|
1,111,700 |
|
New York State Liberty Development Corp., RB, |
|
|
1,170 |
|
|
1,312,681 |
|
New York State Liberty Development Corp., Refunding |
|
|
680 |
|
|
772,596 |
|
|
|
|
|
|
|
5,209,147 |
|
Ohio 1.7% |
|
|
|
|
|
|
|
County of Allen Ohio, Refunding RB, Catholic Healthcare, |
|
|
840 |
|
|
894,902 |
|
Puerto Rico 1.0% |
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, Sales Tax |
|
|
460 |
|
|
510,858 |
|
South Carolina 2.1% |
|
|
|
|
|
|
|
South Carolina State Public Service Authority, RB, |
|
|
1,005 |
|
|
1,138,665 |
|
|
|
|
|
|
|
|
|
Municipal
Bonds Transferred to |
|
Par |
|
Value |
|
||
Texas 5.2% |
|
|
|
|
|
|
|
City of San Antonio Texas, Refunding RB, Series A, |
|
$ |
1,050 |
|
$ |
1,205,613 |
|
Harris County Cultural Education Facilities Finance |
|
|
1,450 |
|
|
1,616,199 |
|
|
|
|
|
|
|
2,821,812 |
|
Virginia 1.0% |
|
|
|
|
|
|
|
Fairfax County IDA Virginia, Refunding RB, Health Care, |
|
|
460 |
|
|
512,868 |
|
Total
Municipal Bonds Transferred to |
|
|
|
|
|
31,714,070 |
|
Total
Long-Term Investments |
|
|
|
|
|
87,232,830 |
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
|
|
||
FFI Institutional Tax-Exempt Fund, 0.01% (e)(f) |
|
|
3,025,425 |
|
|
3,025,425 |
|
Total
Short-Term Securities |
|
|
|
|
|
3,025,425 |
|
Total Investments (Cost $81,730,473) 167.7% |
|
|
|
|
|
90,258,255 |
|
Liabilities in Excess of Other Assets (5.2)% |
|
|
|
|
|
(2,808,624 |
) |
Liability for TOB Trust Certificates, Including Interest
|
|
|
|
|
|
(15,825,594 |
) |
VRDP Shares, at Liquidation Value (33.1)% |
|
|
|
|
|
(17,800,000 |
) |
Net Assets Applicable to Common Shares 100.0% |
|
|
|
|
$ |
53,824,037 |
|
|
|
|
|
|
|
(b) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
|
|
(c) |
When-issued security. Unsettled when-issued transactions were as follows: |
|
|
|
|
|
|
|
|
|
|
Counterparty |
|
Value |
|
Unrealized |
|
||
|
Barclays Capital Inc. |
|
$ |
829,703 |
|
$ |
5,606 |
|
|
JPMorgan Securities |
|
$ |
1,137,520 |
|
$ |
3,280 |
|
|
Morgan Keegan & Co. |
|
$ |
395,083 |
|
$ |
1,491 |
|
|
Morgan Stanley Co. |
|
$ |
820,420 |
|
$ |
7,279 |
|
|
|
(d) |
Securities represent bonds transferred to a TOB in exchange for which the Trust 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 TOBs. |
|
|
(e) |
Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate |
|
|
Shares Held at |
|
|
Net |
|
|
Shares Held at |
|
|
Income |
|
|
FFI Institutional |
|
|
2,198,525 |
|
|
826,900 |
|
|
3,025,425 |
|
$ |
231 |
|
|
|
(f) |
Represents the current yield as of report date. |
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
15 |
|
|
|
|
|
|
Schedule of Investments (concluded) |
BlackRock Municipal Bond Investment Trust (BIE) |
|
|
|
|
Financial futures contracts sold as of February 29, 2012 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contracts |
|
Issue |
|
Exchange |
|
Expiration |
|
Notional |
|
Unrealized |
|
|||||
18 |
|
|
10-Year US |
|
|
Chicago |
|
|
March |
|
$ |
2,362,781 |
|
$ |
(13,815) |
|
|
|
|
Treasury Note |
|
|
Board of Trade |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
|
|
|
|
|
|
Level 1 unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
Level 2 other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
|
|
|
|
|
Level 3 unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trusts own assumptions used in determining the fair value of investments and derivative financial instruments) |
|
|
|
|
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trusts perceived risk of investing in those securities. For information about the Trusts policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements. |
|
|
|
|
|
The following tables summarize the inputs used as of February 29, 2012 in determining the fair valuation of the Trusts investments and derivative financial instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments1 |
|
|
|
|
$ |
87,232,830 |
|
|
|
|
$ |
87,232,830 |
|
Short-Term Securities |
|
$ |
3,025,425 |
|
|
|
|
|
|
|
|
3,025,425 |
|
Total |
|
$ |
3,025,425 |
|
$ |
87,232,830 |
|
|
|
|
$ |
90,258,255 |
|
|
|
|
|
1 |
See above Schedule of Investments for values in each state or political subdivision. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
Derivative Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
$ |
(13,815 |
) |
|
|
|
|
|
|
$ |
(13,815 |
) |
|
|
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
16 |
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
|
|
|
|
|
|
Schedule of Investments February 29, 2012 (Unaudited) |
BlackRock Municipal Bond Trust (BBK) |
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Alabama 4.1% |
|
|
|
|
|
|
|
Birmingham Special Care Facilities Financing Authority, |
|
|
|
|
|
|
|
6.00%, 6/01/34 |
|
$ |
1,150 |
|
$ |
1,321,614 |
|
6.00%, 6/01/39 |
|
|
450 |
|
|
514,256 |
|
Birmingham Water Works Board, RB, 4.75%, 1/01/36 |
|
|
2,100 |
|
|
2,214,597 |
|
Hoover City Board of Education, GO, Refunding, 4.25%, |
|
|
2,750 |
|
|
2,857,277 |
|
|
|
|
|
|
|
6,907,744 |
|
Arizona 8.4% |
|
|
|
|
|
|
|
Arizona Sports & Tourism Authority, RB, Multipurpose |
|
|
1,750 |
|
|
1,764,315 |
|
Arizona State University, RB, Series D, 5.50%, 7/01/26 |
|
|
200 |
|
|
240,894 |
|
County of Pinal Arizona Election District No. 3, |
|
|
3,750 |
|
|
3,955,237 |
|
Mohave County Unified School District No. 20 Kingman, |
|
|
200 |
|
|
225,954 |
|
Pima County IDA, Refunding IRDB, Tucson Electric |
|
|
900 |
|
|
940,212 |
|
Salt Verde Financial Corp., RB, Senior: |
|
|
|
|
|
|
|
5.00%, 12/01/32 |
|
|
1,500 |
|
|
1,509,540 |
|
5.00%, 12/01/37 |
|
|
2,065 |
|
|
2,064,835 |
|
San Luis Facility Development Corp., RB, Senior Lien, |
|
|
|
|
|
|
|
6.25%, 5/01/15 |
|
|
245 |
|
|
240,597 |
|
7.00%, 5/01/20 |
|
|
300 |
|
|
300,513 |
|
7.25%, 5/01/27 |
|
|
600 |
|
|
553,608 |
|
State of Arizona, COP, Department of Administration, |
|
|
750 |
|
|
821,768 |
|
University Medical Center Corp. Arizona, RB: |
|
|
|
|
|
|
|
6.00%, 7/01/39 |
|
|
900 |
|
|
996,165 |
|
6.50%, 7/01/39 |
|
|
500 |
|
|
566,885 |
|
|
|
|
|
|
|
14,180,523 |
|
California 17.9% |
|
|
|
|
|
|
|
California County Tobacco Securitization Agency, RB, |
|
|
4,500 |
|
|
52,470 |
|
California Educational Facilities Authority, RB, Santa |
|
|
1,000 |
|
|
1,092,120 |
|
California Health Facilities Financing Authority, |
|
|
1,900 |
|
|
2,249,353 |
|
California HFA, RB, Home Mortgage, Series G, AMT, |
|
|
2,285 |
|
|
2,194,468 |
|
Carlsbad Unified School District, GO, Election of 2006, |
|
|
1,000 |
|
|
741,600 |
|
City of San Jose California, RB, San Jose Airport, |
|
|
2,000 |
|
|
2,206,800 |
|
Dinuba Unified School District, GO, Election of |
|
|
|
|
|
|
|
5.63%, 8/01/31 |
|
|
250 |
|
|
286,740 |
|
5.75%, 8/01/33 |
|
|
500 |
|
|
576,135 |
|
Hartnell Community College District California, GO, CAB, |
|
|
1,650 |
|
|
1,089,611 |
|
Norwalk-La Mirada Unified School District California, |
|
|
8,000 |
|
|
1,873,600 |
|
Palomar Community College District, GO, CAB, Election |
|
|
|
|
|
|
|
6.09%, 8/01/30 (a) |
|
|
1,500 |
|
|
614,865 |
|
6.15%, 8/01/33 (a) |
|
|
4,000 |
|
|
1,100,040 |
|
6.44%, 8/01/39 (b) |
|
|
2,000 |
|
|
1,066,180 |
|
San Diego Community College District California, GO, |
|
|
2,800 |
|
|
2,095,772 |
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
California (concluded) |
|
|
|
|
|
|
|
San Jose Evergreen Community College District, GO, |
|
$ |
1,200 |
|
$ |
1,165,788 |
|
State of California, GO, Various Purpose: |
|
|
|
|
|
|
|
5.75%, 4/01/31 |
|
|
2,000 |
|
|
2,330,760 |
|
6.00%, 3/01/33 |
|
|
1,000 |
|
|
1,197,150 |
|
6.50%, 4/01/33 |
|
|
1,950 |
|
|
2,398,246 |
|
5.50%, 3/01/40 |
|
|
2,350 |
|
|
2,604,716 |
|
State of California, GO, Refunding: |
|
|
|
|
|
|
|
(CIFG), 4.50%, 8/01/28 |
|
|
500 |
|
|
523,335 |
|
Veterans, AMT, 5.05%, 12/01/36 |
|
|
1,000 |
|
|
1,015,200 |
|
Val Verde Unified School District California, Special Tax |
|
|
1,585 |
|
|
1,616,431 |
|
|
|
|
|
|
|
30,091,380 |
|
Colorado 1.2% |
|
|
|
|
|
|
|
Colorado Health Facilities Authority, RB, Catholic Health |
|
|
1,070 |
|
|
1,241,767 |
|
Park Creek Metropolitan District, Refunding RB, Limited |
|
|
750 |
|
|
850,350 |
|
|
|
|
|
|
|
2,092,117 |
|
Connecticut 2.3% |
|
|
|
|
|
|
|
Connecticut State Health & Educational Facilities |
|
|
|
|
|
|
|
Hartford Healthcare, Series A, 5.00%, 7/01/32 |
|
|
1,390 |
|
|
1,491,762 |
|
Lawrence & Memorial Hospital, Series F, 5.00%, |
|
|
1,100 |
|
|
1,163,855 |
|
Sacred Heart University, Series G, 5.38%, 7/01/31 |
|
|
400 |
|
|
435,976 |
|
Western
Connecticut Health, Series M, 5.38%, |
|
|
700 |
|
|
762,391 |
|
|
|
|
|
|
|
3,853,984 |
|
Delaware 0.8% |
|
|
|
|
|
|
|
County of Sussex Delaware, RB, NRG Energy, Inc., |
|
|
1,200 |
|
|
1,292,460 |
|
District of Columbia 1.5% |
|
|
|
|
|
|
|
District of Columbia Tobacco Settlement Financing |
|
|
2,500 |
|
|
2,521,325 |
|
Florida 6.1% |
|
|
|
|
|
|
|
County of Lee Florida, Refunding RB, Lee Airport, |
|
|
2,000 |
|
|
2,141,580 |
|
Palm Beach County Housing Finance Authority, HRB, |
|
|
7,255 |
|
|
7,259,643 |
|
Stevens Plantation Community Development District, |
|
|
925 |
|
|
791,338 |
|
|
|
|
|
|
|
10,192,561 |
|
Idaho 1.2% |
|
|
|
|
|
|
|
Idaho Health Facilities Authority, Refunding RB, Trinity |
|
|
1,750 |
|
|
2,066,033 |
|
Illinois 7.5% |
|
|
|
|
|
|
|
Chicago Transit Authority, RB, 5.25%, 12/01/40 |
|
|
665 |
|
|
738,369 |
|
Illinois Finance Authority, RB: |
|
|
|
|
|
|
|
MJH Education Assistance IV LLC, Sub-Series B, |
|
|
425 |
|
|
42,500 |
|
Navistar International, Recovery Zone, 6.50%, |
|
|
1,285 |
|
|
1,377,700 |
|
Roosevelt University Project, 6.50%, 4/01/44 |
|
|
1,000 |
|
|
1,086,480 |
|
Rush University Medical Center, Series C, 6.63%, |
|
|
650 |
|
|
770,569 |
|
Illinois Finance Authority, Refunding RB, Series A: |
|
|
|
|
|
|
|
Friendship Village Schaumburg, 5.63%, 2/15/37 |
|
|
210 |
|
|
180,655 |
|
OSF Healthcare System, 6.00%, 5/15/39 |
|
|
1,040 |
|
|
1,164,966 |
|
Railsplitter Tobacco Settlement Authority, RB: |
|
|
|
|
|
|
|
6.25%, 6/01/24 |
|
|
1,000 |
|
|
1,114,910 |
|
6.00%, 6/01/28 |
|
|
1,150 |
|
|
1,286,712 |
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) |
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Illinois (concluded) |
|
|
|
|
|
|
|
Village of Bolingbrook Illinois, GO, Refunding, Series B |
|
$ |
21,065 |
|
$ |
4,858,221 |
|
|
|
|
|
|
|
12,621,082 |
|
Indiana 1.9% |
|
|
|
|
|
|
|
Indiana Finance Authority, Refunding RB: |
|
|
|
|
|
|
|
5.25%, 10/01/38 |
|
|
2,000 |
|
|
2,226,060 |
|
Improvement, U.S. Steel Corp., 6.00%, 12/01/26 |
|
|
1,000 |
|
|
1,020,090 |
|
|
|
|
|
|
|
3,246,150 |
|
Iowa 1.5% |
|
|
|
|
|
|
|
Iowa Higher Education Loan Authority, RB, Private |
|
|
875 |
|
|
951,528 |
|
Iowa Higher Education Loan Authority, Refunding RB, |
|
|
|
|
|
|
|
5.75%, 9/01/30 |
|
|
500 |
|
|
536,460 |
|
6.00%, 9/01/39 |
|
|
1,000 |
|
|
1,049,030 |
|
|
|
|
|
|
|
2,537,018 |
|
Louisiana 2.5% |
|
|
|
|
|
|
|
Jefferson Parish Hospital Service District No. 1, |
|
|
1,450 |
|
|
1,610,428 |
|
Louisiana Local Government Environmental Facilities & |
|
|
1,050 |
|
|
1,172,955 |
|
Louisiana Public Facilities Authority, RB, Belle Chasse |
|
|
400 |
|
|
433,872 |
|
Louisiana Public Facilities Authority, Refunding RB, |
|
|
1,000 |
|
|
1,049,080 |
|
|
|
|
|
|
|
4,266,335 |
|
Maryland 1.9% |
|
|
|
|
|
|
|
Maryland EDC, Refunding RB, CNX Marine |
|
|
250 |
|
|
259,597 |
|
Maryland Health & Higher Educational Facilities |
|
|
2,900 |
|
|
3,010,113 |
|
|
|
|
|
|
|
3,269,710 |
|
Michigan 3.4% |
|
|
|
|
|
|
|
Michigan State Building Authority, Refunding RB, |
|
|
1,250 |
|
|
1,444,113 |
|
Royal Oak Hospital Finance Authority Michigan, |
|
|
1,950 |
|
|
2,456,259 |
|
Wayne County Airport Authority, Refunding RB, Airport |
|
|
1,750 |
|
|
1,813,682 |
|
|
|
|
|
|
|
5,714,054 |
|
Minnesota 4.3% |
|
|
|
|
|
|
|
City of Minneapolis Minnesota, Refunding RB, Fairview |
|
|
5,350 |
|
|
6,291,760 |
|
Tobacco Securitization Authority Minnesota, Refunding |
|
|
800 |
|
|
870,088 |
|
|
|
|
|
|
|
7,161,848 |
|
Mississippi 3.4% |
|
|
|
|
|
|
|
Mississippi Development Bank, RB, Hinds Community |
|
|
845 |
|
|
916,876 |
|
Mississippi Development Bank Special Obligation, RB, |
|
|
1,750 |
|
|
1,965,075 |
|
University of Southern Mississippi, RB, Campus |
|
|
2,100 |
|
|
2,347,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Mississippi (concluded) |
|
|
|
|
|
|
|
Warren County Mississippi, RB, Gulf Opportunity Zone |
|
$ |
400 |
|
$ |
419,308 |
|
|
|
|
|
|
|
5,648,912 |
|
Missouri 1.7% |
|
|
|
|
|
|
|
Missouri State Development Finance Board, RB, |
|
|
580 |
|
|
611,053 |
|
Missouri State Health & Educational Facilities |
|
|
|
|
|
|
|
A.T. Still University Health Sciences, 5.25%, 10/01/31 |
|
|
500 |
|
|
542,300 |
|
A.T. Still University Health Sciences, 5.25%, 10/01/41 |
|
|
650 |
|
|
693,869 |
|
Lutheran Senior Services, 6.00%, 2/01/41 |
|
|
1,000 |
|
|
1,069,000 |
|
|
|
|
|
|
|
2,916,222 |
|
Montana 0.8% |
|
|
|
|
|
|
|
Montana Facility Finance Authority, Refunding RB, |
|
|
1,350 |
|
|
1,431,473 |
|
Multi-State 6.8% |
|
|
|
|
|
|
|
Centerline Equity Issuer Trust, 7.20%, 11/15/52 (e)(f) |
|
|
10,500 |
|
|
11,460,330 |
|
Nebraska 2.3% |
|
|
|
|
|
|
|
Nebraska Investment Finance Authority, Refunding RB, |
|
|
990 |
|
|
1,054,172 |
|
Omaha Nebraska Sanitation Sewer Revenue, |
|
|
|
|
|
|
|
4.25%, 11/15/38 |
|
|
1,890 |
|
|
1,978,792 |
|
4.25%, 11/15/41 |
|
|
775 |
|
|
808,185 |
|
|
|
|
|
|
|
3,841,149 |
|
Nevada 1.1% |
|
|
|
|
|
|
|
City of Las Vegas Nevada, Special Assessment Bonds, |
|
|
1,295 |
|
|
1,218,763 |
|
County of Clark Nevada, Refunding RB, Alexander |
|
|
575 |
|
|
602,497 |
|
|
|
|
|
|
|
1,821,260 |
|
New Jersey 14.2% |
|
|
|
|
|
|
|
Middlesex County Improvement Authority, RB, |
|
|
915 |
|
|
81,893 |
|
New Jersey EDA, RB: |
|
|
|
|
|
|
|
Cigarette Tax, 5.50%, 6/15/24 |
|
|
3,710 |
|
|
3,730,553 |
|
Continental Airlines Inc. Project, AMT, 7.20%, |
|
|
3,000 |
|
|
3,003,780 |
|
New Jersey EDA, Refunding RB, First Mortgage, |
|
|
1,500 |
|
|
1,534,965 |
|
New Jersey EDA, Special Assessment Bonds, |
|
|
7,500 |
|
|
8,319,075 |
|
New Jersey Educational Facilities Authority, Refunding |
|
|
|
|
|
|
|
7.13%, 12/01/23 |
|
|
630 |
|
|
778,037 |
|
7.50%, 12/01/32 |
|
|
800 |
|
|
976,448 |
|
New Jersey Health Care Facilities Financing Authority, |
|
|
|
|
|
|
|
4.63%, 7/01/23 |
|
|
510 |
|
|
516,145 |
|
5.63%, 7/01/37 |
|
|
1,700 |
|
|
1,791,358 |
|
New Jersey State Housing & Mortgage Finance Agency, |
|
|
615 |
|
|
664,483 |
|
New Jersey Transportation Trust Fund Authority, RB, |
|
|
1,900 |
|
|
2,128,152 |
|
Union County Utilities Authority, Refunding RB, County |
|
|
|
|
|
|
|
4.00%, 6/15/32 |
|
|
250 |
|
|
262,510 |
|
5.00%, 6/15/41 |
|
|
95 |
|
|
106,219 |
|
|
|
|
|
|
|
23,893,618 |
|
|
|
|
|
See Notes to Financial Statements. |
|||
|
|
|
|
|
|
|
|
|
|
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) |
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
|
Par |
|
|
Value |
|
New York 5.8% |
|
|
|
|
|
|
|
Albany Industrial Development Agency, RB, New |
|
$ |
455 |
|
$ |
104,659 |
|
Hudson New York Yards Infrastructure Corp., RB, |
|
|
|
|
|
|
|
5.00%, 2/15/47 |
|
|
250 |
|
|
257,255 |
|
(FGIC), 5.00%, 2/15/47 |
|
|
1,000 |
|
|
1,029,020 |
|
(NPFGC), 4.50%, 2/15/47 |
|
|
750 |
|
|
738,293 |
|
New York City Industrial Development Agency, RB, |
|
|
3,165 |
|
|
2,990,925 |
|
New York Convention Center Development Corp., RB |
|
|
1,000 |
|
|
1,007,710 |
|
New York Liberty Development Corp., Refunding RB, |
|
|
800 |
|
|
868,136 |
|
New York State Dormitory Authority, RB, Rochester |
|
|
1,000 |
|
|
1,169,450 |
|
Westchester County Healthcare Corp. New York, RB, |
|
|
1,500 |
|
|
1,581,075 |
|
|
|
|
|
|
|
9,746,523 |
|
North Carolina 5.4% |
|
|
|
|
|
|
|
City of Charlotte North Carolina, Refunding RB, Series A, |
|
|
225 |
|
|
256,592 |
|
Gaston County Industrial Facilities & Pollution Control |
|
|
2,945 |
|
|
2,413,486 |
|
North Carolina Capital Facilities Finance Agency, RB, |
|
|
1,000 |
|
|
1,050,750 |
|
North Carolina Medical Care Commission, RB, Novant |
|
|
4,450 |
|
|
4,519,287 |
|
North Carolina Medical Care Commission, Refunding |
|
|
800 |
|
|
926,600 |
|
|
|
|
|
|
|
9,166,715 |
|
Oklahoma 0.5% |
|
|
|
|
|
|
|
Tulsa Airports Improvement Trust, RB, Series A, |
|
|
1,025 |
|
|
793,852 |
|
Oregon 1.7% |
|
|
|
|
|
|
|
City of Portland Oregon, Multifamily Housing Revenue |
|
|
505 |
|
|
505,146 |
|
Oregon Health & Science University, RB, Series A, |
|
|
750 |
|
|
852,630 |
|
Oregon State Facilities Authority, Refunding RB, Limited |
|
|
|
|
|
|
|
5.00%, 10/01/34 |
|
|
850 |
|
|
916,368 |
|
5.25%, 10/01/40 |
|
|
500 |
|
|
541,635 |
|
|
|
|
|
|
|
2,815,779 |
|
Pennsylvania 4.0% |
|
|
|
|
|
|
|
County of Allegheny Pennsylvania IDA, Refunding RB, |
|
|
1,695 |
|
|
1,800,192 |
|
Delaware River Port Authority, RB, Series D (AGM), |
|
|
2,600 |
|
|
2,798,718 |
|
Pennsylvania Economic Development Financing |
|
|
2,000 |
|
|
2,094,220 |
|
|
|
|
|
|
|
6,693,130 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Puerto Rico 1.4% |
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, CAB, |
|
$ |
1,000 |
|
$ |
278,690 |
|
Puerto Rico Sales Tax Financing Corp., RB, First |
|
|
1,000 |
|
|
1,117,510 |
|
Puerto Rico Sales Tax Financing Corp., Refunding RB, |
|
|
5,000 |
|
|
1,001,600 |
|
|
|
|
|
|
|
2,397,800 |
|
Rhode Island 1.3% |
|
|
|
|
|
|
|
Rhode Island Health & Educational Building Corp., RB, |
|
|
1,000 |
|
|
1,190,110 |
|
State of Rhode Island, COP, Series C, School for the |
|
|
900 |
|
|
1,014,129 |
|
|
|
|
|
|
|
2,204,239 |
|
South Dakota 0.9% |
|
|
|
|
|
|
|
State of South Dakota Board of Regents Housing & |
|
|
1,535 |
|
|
1,605,410 |
|
Tennessee 0.2% |
|
|
|
|
|
|
|
Memphis-Shelby County Sports Authority Inc., |
|
|
275 |
|
|
305,896 |
|
Texas 13.4% |
|
|
|
|
|
|
|
Harris County Health Facilities Development Corp., |
|
|
|
|
|
|
|
7.13%, 12/01/31 |
|
|
500 |
|
|
602,825 |
|
7.25%, 12/01/35 |
|
|
1,750 |
|
|
2,090,498 |
|
Harris County Metropolitan Transit Authority Sales and |
|
|
940 |
|
|
1,058,919 |
|
Harris County-Houston Sports Authority, Refunding RB, |
|
|
11,690 |
|
|
1,717,612 |
|
Matagorda County Navigation District No. 1 Texas, |
|
|
1,500 |
|
|
1,722,270 |
|
Texas Private Activity Bond Surface Transportation Corp., |
|
|
2,000 |
|
|
2,274,160 |
|
Texas State Turnpike Authority, RB (AMBAC): |
|
|
|
|
|
|
|
CAB, 6.08%, 8/15/35 (a) |
|
|
50,000 |
|
|
12,308,500 |
|
First Tier, Series A, 5.00%, 8/15/42 |
|
|
750 |
|
|
750,375 |
|
|
|
|
|
|
|
22,525,159 |
|
Vermont 1.0% |
|
|
|
|
|
|
|
Vermont Educational & Health Buildings Financing |
|
|
1,600 |
|
|
1,606,640 |
|
Virginia 0.1% |
|
|
|
|
|
|
|
Roanoke Economic Development Authority, RB, Carilion |
|
|
160 |
|
|
160,938 |
|
Washington 1.9% |
|
|
|
|
|
|
|
City of Lynnwood, GO (AGO), 4.00%, 12/01/37 |
|
|
1,600 |
|
|
1,597,360 |
|
Washington Health Care Facilities Authority, RB, |
|
|
1,400 |
|
|
1,588,132 |
|
|
|
|
|
|
|
3,185,492 |
|
West Virginia 0.7% |
|
|
|
|
|
|
|
West Virginia State University, RB, West Virginia |
|
|
1,100 |
|
|
1,242,956 |
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
|
|
|
Schedule of Investments (concluded) |
BlackRock Municipal Bond Trust (BBK) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Wisconsin 0.7% |
|
|
|
|
|
|
|
Wisconsin State Health & Educational Facilities |
|
$ |
1,215 |
|
$ |
1,202,000 |
|
Wyoming 0.8% |
|
|
|
|
|
|
|
County of Sweetwater Wyoming, Refunding RB, Idaho |
|
|
1,200 |
|
|
1,372,740 |
|
Total Municipal Bonds 136.6% |
|
|
|
|
|
230,052,557 |
|
|
|
||||||
|
|
|
|
|
|
|
|
Municipal Bonds Transferred to |
|
|
|
|
|
|
|
Colorado 2.3% |
|
|
|
|
|
|
|
Colorado Health Facilities Authority, RB, Catholic Health, |
|
|
3,750 |
|
|
3,940,537 |
|
Massachusetts 1.0% |
|
|
|
|
|
|
|
Massachusetts Water Resources Authority, Refunding |
|
|
1,450 |
|
|
1,592,724 |
|
New York 7.3% |
|
|
|
|
|
|
|
Hudson Yards Infrastructure Corp., RB, 5.75%, 2/15/47 |
|
|
2,500 |
|
|
2,824,461 |
|
New York City Municipal Water Finance Authority, RB: |
|
|
450 |
|
|
522,323 |
|
Series FF-2, 5.50%, 6/15/40 |
|
|
405 |
|
|
467,031 |
|
New York City Municipal Water Finance Authority, |
|
|
3,000 |
|
|
3,262,770 |
|
New York Liberty Development Corp., RB, 5.25%, |
|
|
2,505 |
|
|
2,810,485 |
|
New York State Dormitory Authority, RB, New York |
|
|
2,199 |
|
|
2,368,575 |
|
|
|
|
|
|
|
12,255,645 |
|
Ohio 2.1% |
|
|
|
|
|
|
|
County of Montgomery Ohio, RB, Catholic Health, |
|
|
1,260 |
|
|
1,355,269 |
|
Ohio Higher Educational Facility Commission, |
|
|
2,000 |
|
|
2,154,820 |
|
|
|
|
|
|
|
3,510,089 |
|
Total
Municipal Bonds Transferred to |
|
|
|
|
|
21,298,995 |
|
Total
Long-Term Investments |
|
|
|
|
|
251,351,552 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
Short-Term Securities |
|
Shares |
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.01% (i)(j) |
|
|
4,946,999 |
|
|
4,946,999 |
|
Total
Short-Term Securities |
|
|
|
|
|
4,946,999 |
|
Total Investments (Cost $239,327,898) 152.2% |
|
|
|
|
|
256,298,551 |
|
Other Assets Less Liabilities 1.4% |
|
|
|
|
|
2,278,896 |
|
Liability for TOB Trust Certificates, Including
Interest |
|
|
|
|
|
(10,322,024 |
) |
VMTP Shares, at Liquidation Value (47.5)% |
|
|
|
|
|
(79,900,000 |
) |
Net Assets Applicable to Common Shares 100.0% |
|
|
|
|
$ |
168,355,423 |
|
|
|
(a) |
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
|
|
(b) |
Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date. |
|
|
(c) |
Issuer filed for bankruptcy and/or is in default of interest payments. |
|
|
(d) |
Non-income producing security. |
|
|
(e) |
Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity. |
|
|
(f) |
Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
|
|
(g) |
Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand. |
|
|
(h) |
Securities represent bonds transferred to a TOB in exchange for which the Trust 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 TOBs. |
|
|
(i) |
Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
Affiliate |
|
Shares
Held at |
|
Net |
|
Shares
Held at |
|
Income |
|
|
FFI Institutional |
|
|
|
|
|
|
|
|
|
|
Tax-Exempt Fund |
|
2,247,948 |
|
2,699,051 |
|
4,946,999 |
|
$319 |
|
|
|
|
|
(j) |
Represents the current yield as of report date. |
||
|
|
|
|
|
Fair Value Measurements Various inputs are used in determining the fair value of investments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
||
|
|
|
|
|
|
Level 1 unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
|
|
Level 2 other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
|
|
|
|
|
|
|
Level 3 unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trusts own assumptions used in determining the fair value of investments) |
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments is based on the pricing transparency of the investment and does not necessarily correspond to the Trusts perceived risk of investing in those securities. For information about the Trusts 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 February 29, 2012 in determining the fair valuation of the Trusts investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments1 |
|
|
|
|
$ |
251,351,552 |
|
|
|
|
$ |
251,351,552 |
|
Short-Term Securities |
|
$ |
4,946,999 |
|
|
|
|
|
|
|
|
4,946,999 |
|
Total |
|
$ |
4,946,999 |
|
$ |
251,351,552 |
|
|
|
|
$ |
256,298,551 |
|
|
|
|
|
1 |
See above Schedule of Investments for values in each state or political subdivision. |
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
20 |
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
|
|
|
|
Schedule of Investments February 29, 2012 (Unaudited) |
BlackRock Municipal Income Investment Quality Trust (BAF) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Alabama 1.9% |
|
|
|
|
|
|
|
Birmingham Special Care Facilities Financing Authority, |
|
|
|
|
|
|
|
6.13%, 6/01/34 |
|
$ |
1,000 |
|
$ |
1,150,950 |
|
6.00%, 6/01/39 |
|
|
1,000 |
|
|
1,142,790 |
|
Selma IDB, RB, International Paper Co. Project, Series A, |
|
|
370 |
|
|
387,564 |
|
|
|
|
|
|
|
2,681,304 |
|
California 11.9% |
|
|
|
|
|
|
|
California Educational Facilities Authority, RB, University |
|
|
2,155 |
|
|
2,458,769 |
|
California Health Facilities Financing Authority, RB: |
|
|
|
|
|
|
|
Scripps, Series A, 5.00%, 11/15/40 |
|
|
175 |
|
|
190,132 |
|
Sutter Health, Series B, 6.00%, 8/15/42 |
|
|
1,120 |
|
|
1,294,216 |
|
County of Sacramento California, RB, Senior Series A |
|
|
1,400 |
|
|
1,518,104 |
|
Los Angeles Community College District California, GO: |
|
|
|
|
|
|
|
Election of 2001, Series A (NPFGC), 5.00%, |
|
|
1,000 |
|
|
1,099,900 |
|
Election of 2008, Series C, 5.25%, 8/01/39 |
|
|
500 |
|
|
573,150 |
|
Los Angeles Department of Water & Power, RB, Power |
|
|
1,175 |
|
|
1,339,770 |
|
Los Angeles Municipal Improvement Corp., Refunding |
|
|
3,210 |
|
|
3,537,837 |
|
Redondo Beach Unified School District, GO, Election of |
|
|
1,000 |
|
|
1,162,810 |
|
San Bernardino Community College District, GO, |
|
|
925 |
|
|
1,100,584 |
|
San Diego Public Facilities Financing Authority, |
|
|
1,125 |
|
|
1,299,960 |
|
San Jacinto Unified School District, GO, Election of |
|
|
1,000 |
|
|
1,085,210 |
|
|
|
|
|
|
|
16,660,442 |
|
Colorado 1.2% |
|
|
|
|
|
|
|
Colorado Health Facilities Authority, RB, Hospital, |
|
|
1,425 |
|
|
1,670,627 |
|
Florida 5.4% |
|
|
|
|
|
|
|
City of Jacksonville Florida, RB, Series A, 5.25%, |
|
|
4,525 |
|
|
5,188,998 |
|
Orange County Health Facilities Authority, RB, |
|
|
1,070 |
|
|
1,168,172 |
|
Village Center Community Development District, RB, |
|
|
1,250 |
|
|
1,238,789 |
|
|
|
|
|
|
|
7,595,959 |
|
Georgia 2.2% |
|
|
|
|
|
|
|
City of Atlanta Georgia, Refunding RB, General, Series C, |
|
|
2,500 |
|
|
3,045,850 |
|
Illinois 15.4% |
|
|
|
|
|
|
|
Chicago Board of Education Illinois, GO, Series A: |
|
|
|
|
|
|
|
5.50%, 12/01/39 |
|
|
1,500 |
|
|
1,698,300 |
|
5.00%, 12/01/41 |
|
|
1,000 |
|
|
1,078,380 |
|
Chicago Transit Authority, RB Federal Transit |
|
|
1,300 |
|
|
1,526,304 |
|
Chicago Transit Authority, RB, Sales Tax |
|
|
|
|
|
|
|
5.25%, 12/01/36 |
|
|
415 |
|
|
461,853 |
|
5.25%, 12/01/40 |
|
|
1,325 |
|
|
1,471,187 |
|
City of Chicago Illinois, RB: |
|
|
|
|
|
|
|
General Third Lien, Series C, 5.25%, 1/01/30 |
|
|
1,000 |
|
|
1,110,330 |
|
Sales Tax Revenue, Series A, 5.25%, 1/01/38 |
|
|
515 |
|
|
577,145 |
|
Third Lien, OHare International Airport, Series A, |
|
|
825 |
|
|
946,778 |
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Illinois (concluded) |
|
|
|
|
|
|
|
City of Chicago Illinois, Refunding RB, General, Third |
|
$ |
3,740 |
|
$ |
4,501,240 |
|
Illinois Finance Authority, RB, Carle Foundation, Series A, |
|
|
1,885 |
|
|
2,068,882 |
|
Illinois Municipal Electric Agency, RB, Series A (NPFGC): |
|
|
|
|
|
|
|
5.25%, 2/01/28 |
|
|
1,560 |
|
|
1,714,222 |
|
5.25%, 2/01/35 |
|
|
1,000 |
|
|
1,069,600 |
|
Railsplitter Tobacco Settlement Authority, RB: |
|
|
|
|
|
|
|
5.50%, 6/01/23 |
|
|
915 |
|
|
1,053,879 |
|
6.00%, 6/01/28 |
|
|
260 |
|
|
290,909 |
|
State of Illinois, RB, Build Illinois, Series B, 5.25%, |
|
|
1,750 |
|
|
1,971,952 |
|
|
|
|
|
|
|
21,540,961 |
|
Indiana 5.6% |
|
|
|
|
|
|
|
Indiana Finance Authority Wastewater Utility, RB, First |
|
|
|
|
|
|
|
Lien, CWA Authority, Series A: |
|
|
|
|
|
|
|
5.25%, 10/01/31 |
|
|
1,000 |
|
|
1,144,110 |
|
5.25%, 10/01/38 |
|
|
2,000 |
|
|
2,226,060 |
|
Indianapolis Local Public Improvement Bond Bank, RB, |
|
|
1,570 |
|
|
1,786,942 |
|
Indianapolis Local Public Improvement Bond Bank, |
|
|
2,415 |
|
|
2,697,048 |
|
|
|
|
|
|
|
7,854,160 |
|
Iowa 0.2% |
|
|
|
|
|
|
|
Iowa Finance Authority, Refunding RB, Iowa Health |
|
|
305 |
|
|
335,149 |
|
Louisiana 0.5% |
|
|
|
|
|
|
|
New Orleans Aviation Board Louisiana, Refunding RB, |
|
|
|
|
|
|
|
Series A-1, 6.00%, 1/01/23 |
|
|
375 |
|
|
447,656 |
|
Series A-2, 6.00%, 1/01/23 |
|
|
150 |
|
|
179,063 |
|
|
|
|
|
|
|
626,719 |
|
Michigan 14.7% |
|
|
|
|
|
|
|
City of Detroit Michigan, RB: |
|
|
|
|
|
|
|
Second Lien, Series B (NPFGC), 5.50%, 7/01/29 |
|
|
1,690 |
|
|
1,903,227 |
|
Senior Lien, Series B (AGM), 7.50%, 7/01/33 |
|
|
580 |
|
|
729,402 |
|
Senior Lien, Series B (BHAC), 5.50%, 7/01/35 |
|
|
4,750 |
|
|
5,195,218 |
|
System, Second Lien, Series A (BHAC), 5.50%, |
|
|
2,330 |
|
|
2,570,456 |
|
City of Detroit Michigan, RB, Second Lien, Series B |
|
|
1,700 |
|
|
1,949,220 |
|
City of Detroit Michigan, Refunding RB, Senior Lien, |
|
|
1,800 |
|
|
2,220,264 |
|
Lansing Board of Water & Light Utilities, RB, Series A, |
|
|
2,765 |
|
|
3,071,887 |
|
Michigan State Building Authority, RB, Facilities Program, |
|
|
365 |
|
|
410,771 |
|
Michigan State Building Authority, Refunding RB, |
|
|
|
|
|
|
|
5.25%, 10/15/24 |
|
|
565 |
|
|
649,462 |
|
5.25%, 10/15/25 |
|
|
300 |
|
|
343,527 |
|
Royal Oak Hospital Finance Authority Michigan, |
|
|
1,205 |
|
|
1,517,842 |
|
|
|
|
|
|
|
20,561,276 |
|
Minnesota 3.1% |
|
|
|
|
|
|
|
City of Minneapolis Minnesota, Refunding RB, Fairview |
|
|
3,680 |
|
|
4,327,790 |
|
Missouri 1.9% |
|
|
|
|
|
|
|
Missouri Municipal Electric Utility Commission Power, |
|
|
2,500 |
|
|
2,686,775 |
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
21 |
|
|
|
|
Schedule of Investments (continued) |
BlackRock Municipal Income Investment Quality Trust (BAF) |
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Nevada 1.6% |
|
|
|
|
|
|
|
Clark County Water Reclamation District, GO, Series A, |
|
$ |
2,000 |
|
$ |
2,232,940 |
|
New Jersey 4.6% |
|
|
|
|
|
|
|
New Jersey Health Care Facilities Financing Authority, |
|
|
1,300 |
|
|
1,418,573 |
|
New Jersey State Housing & Mortgage Finance Agency, |
|
|
1,575 |
|
|
1,691,393 |
|
New Jersey Transportation Trust Fund Authority, RB, |
|
|
|
|
|
|
|
Series A (AGC), 5.50%, 12/15/38 |
|
|
2,000 |
|
|
2,219,480 |
|
Series B, 5.25%, 6/15/36 |
|
|
1,000 |
|
|
1,120,080 |
|
|
|
|
|
|
|
6,449,526 |
|
New York 5.5% |
|
|
|
|
|
|
|
New York City Transitional Finance Authority, RB: |
|
|
|
|
|
|
|
Series S-3, 5.25%, 1/15/39 |
|
|
900 |
|
|
988,578 |
|
Sub-Future Tax Secured, Series C, 5.00%, |
|
|
1,175 |
|
|
1,305,801 |
|
New York City Transitional Finance Authority, RB, |
|
|
2,465 |
|
|
2,873,623 |
|
New York State Dormitory Authority, RB, General Purpose, |
|
|
2,220 |
|
|
2,468,951 |
|
|
|
|
|
|
|
7,636,953 |
|
Pennsylvania 0.6% |
|
|
|
|
|
|
|
Philadelphia Hospitals & Higher Education Facilities |
|
|
710 |
|
|
785,246 |
|
Puerto Rico 1.1% |
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, First |
|
|
1,350 |
|
|
1,582,470 |
|
Texas 22.8% |
|
|
|
|
|
|
|
Austin Community College District, RB, Educational |
|
|
2,000 |
|
|
2,188,860 |
|
City of Austin Texas, Refunding RB, Series A (AGM): |
|
|
|
|
|
|
|
5.00%, 11/15/28 |
|
|
705 |
|
|
802,502 |
|
5.00%, 11/15/29 |
|
|
895 |
|
|
1,010,052 |
|
City of Houston Texas, Refunding RB, Combined, |
|
|
|
|
|
|
|
6.00%, 11/15/35 |
|
|
2,600 |
|
|
3,134,092 |
|
6.00%, 11/15/36 |
|
|
2,215 |
|
|
2,658,797 |
|
5.38%, 11/15/38 |
|
|
1,000 |
|
|
1,140,400 |
|
Clifton Higher Education Finance Corp., Refunding RB, |
|
|
1,270 |
|
|
1,453,070 |
|
Frisco ISD Texas, GO, School Building (AGC), 5.50%, |
|
|
3,365 |
|
|
3,997,856 |
|
Harris County Cultural Education Facilities Finance |
|
|
875 |
|
|
997,518 |
|
Harris County Health Facilities Development Corp., |
|
|
500 |
|
|
602,825 |
|
Lamar Texas Consolidated Independent School District, |
|
|
890 |
|
|
1,004,641 |
|
Lubbock Cooper ISD Texas, GO, School Building (AGC), |
|
|
500 |
|
|
562,715 |
|
North Texas Tollway Authority, RB, Special Projects |
|
|
1,000 |
|
|
1,150,930 |
|
North Texas Tollway Authority, Refunding RB: |
|
|
|
|
|
|
|
System, First Tier (AGM), 6.00%, 1/01/43 |
|
|
1,000 |
|
|
1,167,070 |
|
System, First Tier, Series A (AGC), 5.75%, 1/01/40 |
|
|
1,500 |
|
|
1,654,275 |
|
System, First Tier, Series K-1 (AGC), 5.75%, |
|
|
1,500 |
|
|
1,678,455 |
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Texas (concluded) |
|
|
|
|
|
|
|
Tarrant County Cultural Education Facilities Finance |
|
$ |
1,000 |
|
$ |
1,150,810 |
|
University of Texas System, Refunding RB, Financing |
|
|
1,805 |
|
|
2,071,129 |
|
Waco Educational Finance Corporation, RB, Baylor |
|
|
3,000 |
|
|
3,352,920 |
|
|
|
|
|
|
|
31,778,917 |
|
Utah 0.8% |
|
|
|
|
|
|
|
City of Riverton Utah, RB, IHC Health Services Inc., |
|
|
1,000 |
|
|
1,073,950 |
|
Virginia 0.9% |
|
|
|
|
|
|
|
Virginia Public School Authority, RB, School Financing, |
|
|
1,000 |
|
|
1,176,400 |
|
Washington 5.5% |
|
|
|
|
|
|
|
City of Seattle Washington, Refunding RB, Series A, |
|
|
1,025 |
|
|
1,172,395 |
|
Port of Seattle, Refunding RB, Intermediate, Series A, |
|
|
3,000 |
|
|
3,412,560 |
|
State of Washington, GO, Various Purpose, Series B, |
|
|
795 |
|
|
914,616 |
|
University of Washington, Refunding, RB, Series A, |
|
|
1,850 |
|
|
2,102,673 |
|
|
|
|
|
|
|
7,602,244 |
|
Total Municipal Bonds 107.4% |
|
|
|
|
|
149,905,658 |
|
|
|
|
|
|
|
|
|
|
|||||||
Municipal
Bonds Transferred to |
|
|
|
|
|
|
|
Alabama 1.1% |
|
|
|
|
|
|
|
Mobile Board of Water & Sewer Commissioners, RB |
|
|
1,500 |
|
|
1,583,970 |
|
California 10.7% |
|
|
|
|
|
|
|
San Diego Community College District California, GO, |
|
|
2,500 |
|
|
2,756,925 |
|
San Marcos Unified School District, GO, Election of |
|
|
10,680 |
|
|
12,196,453 |
|
|
|
|
|
|
|
14,953,378 |
|
District of Columbia 0.7% |
|
|
|
|
|
|
|
District of Columbia Water & Sewer Authority, RB, |
|
|
760 |
|
|
942,608 |
|
Florida 10.1% |
|
|
|
|
|
|
|
City of Jacksonville Florida, RB, Better Jacksonville |
|
|
3,930 |
|
|
4,150,237 |
|
County of Pinellas Florida, RB (AGM), 5.00%, |
|
|
9,500 |
|
|
9,993,568 |
|
|
|
|
|
|
|
14,143,805 |
|
Illinois 4.7% |
|
|
|
|
|
|
|
Chicago Transit Authority, Refunding RB, Federal Transit |
|
|
2,999 |
|
|
3,247,458 |
|
Illinois State Toll Highway Authority, RB, Series B, |
|
|
2,999 |
|
|
3,285,500 |
|
|
|
|
|
|
|
6,532,958 |
|
Kentucky 0.7% |
|
|
|
|
|
|
|
Kentucky State Property & Building Commission, |
|
|
898 |
|
|
1,025,816 |
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
22 |
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
|
|
|
|
Schedule of Investments (continued) |
BlackRock Municipal Income Investment Quality Trust (BAF) |
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal
Bonds Transferred to |
|
Par |
|
Value |
|
||
Massachusetts 1.6% |
|
|
|
|
|
|
|
Massachusetts School Building Authority, RB, 5.00%, |
|
$ |
2,000 |
|
$ |
2,245,080 |
|
Nevada 5.0% |
|
|
|
|
|
|
|
Clark County Water Reclamation District, GO, Limited |
|
|
2,000 |
|
|
2,325,120 |
|
Las Vegas Valley Water District, GO, Refunding, Series C, |
|
|
4,100 |
|
|
4,701,101 |
|
|
|
|
|
|
|
7,026,221 |
|
New Jersey 0.8% |
|
|
|
|
|
|
|
New Jersey EDA, RB, School Facilities Construction, |
|
|
1,000 |
|
|
1,150,600 |
|
New York 8.7% |
|
|
|
|
|
|
|
Hudson Yards Infrastructure Corp., RB, Series A, 5.75%, |
|
|
1,000 |
|
|
1,129,785 |
|
New York City Municipal Water Finance Authority, RB, |
|
|
4,993 |
|
|
5,650,012 |
|
New York Liberty Development Corp., 5.25%, 12/15/43 |
|
|
2,955 |
|
|
3,315,362 |
|
New York State Liberty Development Corp., Refunding |
|
|
1,740 |
|
|
1,976,936 |
|
|
|
|
|
|
|
12,072,095 |
|
Puerto Rico 1.0% |
|
|
|
|
|
|
|
Puerto Rico Sales Tax Financing Corp., RB, Series C, |
|
|
1,180 |
|
|
1,310,461 |
|
Texas 1.9% |
|
|
|
|
|
|
|
North Texas Tollway Authority, RB, Special Projects, |
|
|
2,310 |
|
|
2,658,648 |
|
Total
Municipal Bonds Transferred to |
|
|
|
|
|
65,645,640 |
|
Total
Long-Term Investments |
|
|
|
|
|
215,551,298 |
|
|
|
|
|
|
|
|
|
Short-Term Securities |
|
Par |
|
Value |
|
||
Illinois 2.8% |
|
|
|
|
|
|
|
Illinois Finance Authority, RB, VRDN, University of |
|
$ |
3,900 |
|
$ |
3,900,000 |
|
Texas 0.8% |
|
|
|
|
|
|
|
Harris County Health Facilities Development Corp., RB, |
|
|
1,100 |
|
|
1,100,000 |
|
|
|||||||
|
|
|
Shares |
|
|
|
|
Money Market Funds 2.3% |
|
|
|
|
|
|
|
FFI Institutional Tax-Exempt Fund, 0.01% (d)(e) |
|
|
3,259,592 |
|
|
3,259,592 |
|
Total
Short-Term Securities |
|
|
|
|
|
8,259,592 |
|
Total Investments (Cost $205,989,744) 160.3% |
|
|
|
|
|
223,810,890 |
|
Liabilities in Excess of Other Assets (6.8)% |
|
|
|
|
|
(9,444,749 |
) |
Liability for TOB Trust Certificates, Including
Interest |
|
|
|
|
|
(32,587,769 |
) |
VMTP Shares, at Liquidation Value (30.2)% |
|
|
|
|
|
(42,200,000 |
) |
Net Assets Applicable to Common Shares 100.0% |
|
|
|
|
$ |
139,578,372 |
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
23 |
|
|
|
|
Schedule of Investments (concluded) |
BlackRock Municipal Income Investment Quality Trust (BAF) |
|
|
(a) |
When-issued security. Unsettled when-issued transactions were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Counterparty |
|
Value |
|
Unrealized |
|
||
|
Morgan Keegan & Co. |
|
$ |
1,004,641 |
|
$ |
3,791 |
|
|
National Financial |
|
$ |
2,686,775 |
|
|
|
|
|
Pershing LLC |
|
$ |
1,134,240 |
|
$ |
3,280 |
|
|
JPMorgan Securities |
|
$ |
2,268,480 |
|
$ |
6,560 |
|
|
Morgan Stanley Co. |
|
$ |
2,071,129 |
|
$ |
18,375 |
|
|
Barclays Capital Inc. |
|
$ |
2,102,673 |
|
$ |
14,208 |
|
|
|
(b) |
Securities represent bonds transferred to a TOB in exchange for which the Trust 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 TOBs. |
|
|
(c) |
Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand. |
|
|
(d) |
Investments in companies considered to be an affiliate of the Trust during the period, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Affiliate |
|
Shares
Held at |
|
Net |
|
Shares
Held at |
|
Income |
|
||||
|
FFI Institutional |
|
|
9,230,241 |
|
|
(5,970,649 |
) |
|
3,259,592 |
|
$ |
153 |
|
|
|
(e) |
Represents the current yield as of report date. |
|
|
|
Financial futures contracts sold as of February 29, 2012 were as follows: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Contracts |
|
Issue |
|
Exchange |
|
Expiration |
|
Notional |
|
Unrealized |
|
||
|
47 |
|
10-Year US |
|
Chicago |
|
March |
|
$ |
6,169,484 |
|
$ |
(36,074 |
) |
|
|
|
Treasury Note |
|
Board of Trade |
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurements Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows: |
|
|
|
|
|
|
Level 1 unadjusted price quotations in active markets/exchanges for identical assets and liabilities |
|
|
|
|
|
Level 2 other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
|
|
|
|
|
Level 3 unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trusts own assumptions used in determining the fair value of investments and derivative financial instruments) |
|
|
|
|
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trusts perceived risk of investing in those securities. For information about the Trusts policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements. |
|
|
||
|
The following tables summarize the inputs used as of February 29, 2012 in determining the fair valuation of the Trusts investments and derivative financial instruments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Investments1 |
|
|
|
|
$ |
215,551,298 |
|
|
|
|
$ |
215,551,298 |
|
|
Short-Term Securities |
|
$ |
3,259,592 |
|
|
5,000,000 |
|
|
|
|
|
8,259,592 |
|
|
Total |
|
$ |
3,259,592 |
|
$ |
220,551,298 |
|
|
|
|
$ |
223,810,890 |
|
|
|
|
|
1 |
See above Schedule of Investments for values in each state or political subdivision. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Valuation Inputs |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
|
||||
|
Derivative Financial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Instruments2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate contracts |
|
$ |
(36,074 |
) |
|
|
|
|
|
|
$ |
(36,074 |
) |
|
|
|
|
2 |
Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
24 |
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
|
|
|
|
Schedule of Investments February 29, 2012 (Unaudited) |
BlackRock Municipal Income Quality Trust (BYM) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Alabama 3.7% |
|
|
|
|
|
|
|
Alabama State Docks Department, Refunding RB, |
|
$ |
3,800 |
|
$ |
4,213,592 |
|
Birmingham Airport Authority, RB (AGM), 5.50%, |
|
|
5,800 |
|
|
6,424,428 |
|
Birmingham Special Care Facilities Financing Authority, |
|
|
1,495 |
|
|
1,708,471 |
|
County of Jefferson Alabama, RB, Series A, 4.75%, |
|
|
2,800 |
|
|
2,548,028 |
|
|
|
|
|
|
|
14,894,519 |
|
Alaska 0.3% |
|
|
|
|
|
|
|
Alaska Industrial Development & Export Authority, RB, |
|
|
1,070 |
|
|
1,194,933 |
|
Arizona 0.5% |
|
|
|
|
|
|
|
State of Arizona, COP, Department of Administration, |
|
|
|
|
|
|
|
5.00%, 10/01/27 |
|
|
1,500 |
|
|
1,684,575 |
|
5.25%, 10/01/28 |
|
|
250 |
|
|
283,560 |
|
|
|
|
|
|
|
1,968,135 |
|
California 22.8% |
|
|
|
|
|
|
|
California Health Facilities Financing Authority, RB, |
|
|
625 |
|
|
691,419 |
|
California Infrastructure & Economic Development |
|
|
10,100 |
|
|
13,511,174 |
|
Coast Community College District California, GO, |
|
|
|
|
|
|
|
5.00%, 8/01/13 (b) |
|
|
7,450 |
|
|
7,090,463 |
|
5.41%, 8/01/36 (c) |
|
|
4,200 |
|
|
1,105,734 |
|
Golden State Tobacco Securitization Corp. California, |
|
|
|
|
|
|
|
6.75%, 6/01/39 |
|
|
14,500 |
|
|
15,653,765 |
|
6.63%, 6/01/40 |
|
|
6,500 |
|
|
7,007,065 |
|
Metropolitan Water District of Southern California, RB, |
|
|
16,745 |
|
|
17,997,024 |
|
Monterey Peninsula Community College District, GO, |
|
|
|
|
|
|
|
5.15%, 8/01/31 |
|
|
13,575 |
|
|
5,091,575 |
|
5.16%, 8/01/32 |
|
|
14,150 |
|
|
4,881,325 |
|
Orange County Sanitation District, COP, Series B (AGM), |
|
|
2,500 |
|
|
2,737,950 |
|
San Diego Unified School District California, GO, CAB, |
|
|
2,000 |
|
|
491,500 |
|
San Joaquin Hills Transportation Corridor Agency |
|
|
53,000 |
|
|
14,045,000 |
|
San Jose Unified School District Santa Clara County |
|
|
2,350 |
|
|
2,502,515 |
|
|
|
|
|
|
|
92,806,509 |
|
Colorado 0.3% |
|
|
|
|
|
|
|
Regional Transportation District, COP, Series A, 5.38%, |
|
|
960 |
|
|
1,074,883 |
|
District of Columbia 2.3% |
|
|
|
|
|
|
|
District of Columbia Tobacco Settlement Financing |
|
|
9,500 |
|
|
9,581,035 |
|
Florida 15.8% |
|
|
|
|
|
|
|
Broward County School Board Florida, COP, Series A |
|
|
1,600 |
|
|
1,722,976 |
|
County of Broward Florida, RB, Series A, 5.25%, |
|
|
6,750 |
|
|
7,523,550 |
|
County of Duval Florida, COP, Master Lease Program |
|
|
3,800 |
|
|
4,020,172 |
|
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Florida (concluded) |
|
|
|
|
|
|
|
County of Miami-Dade Florida, RB: |
|
|
|
|
|
|
|
CAB, Sub-Series A (NPFGC), 5.25%, 10/01/38 (c) |
|
$ |
25,520 |
|
$ |
5,313,009 |
|
Miami International Airport, Series A, 5.50%, |
|
|
5,000 |
|
|
5,594,400 |
|
Series A, 5.50%, 10/01/36 |
|
|
5,000 |
|
|
5,538,250 |
|
Series B (AGC), 5.25%, 5/01/31 |
|
|
1,135 |
|
|
1,238,421 |
|
Water & Sewer System (AGM), 5.00%, 10/01/39 |
|
|
10,100 |
|
|
10,949,915 |
|
County of Miami-Dade Florida, Refunding RB (AGM), |
|
|
1,300 |
|
|
1,386,333 |
|
County of Miami-Dade Florida, School Board, COP, RB, |
|
|
1,135 |
|
|
1,238,421 |
|
Florida Housing Finance Corp., RB, Homeowner |
|
|
3,800 |
|
|
4,023,288 |
|
Florida State Department of Environmental Protection, |
|
|
6,150 |
|
|
6,814,507 |
|
Orange County School Board, COP, Series A (AGC), |
|
|
6,090 |
|
|
6,749,791 |
|
Sarasota County Public Hospital District, RB, Sarasota |
|
|
300 |
|
|
321,651 |
|
South Florida Water Management District, COP |
|
|
1,000 |
|
|
1,050,490 |
|
Tohopekaliga Water Authority, Refunding RB, Series A, |
|
|
2,000 |
|
|
2,256,880 |
|
|
|
|
|
|
|
64,503,633 |
|
Georgia 2.8% |
|
|
|
|
|
|
|
Burke County Development Authority, RB, Oglethorpe |
|
|
1,250 |
|
|
1,342,237 |
|
City of Atlanta Georgia, Refunding RB, General, |
|
|
7,500 |
|
|
9,137,550 |
|
Gwinnett County Hospital Authority, Refunding RB, |
|
|
900 |
|
|
986,868 |
|
|
|
|
|
|
|
11,466,655 |
|
Hawaii 1.4% |
|
|
|
|
|
|
|
Hawaii State Harbor, RB, Series A, 5.25%, 7/01/35 |
|
|
5,000 |
|
|
5,545,800 |
|
Illinois 3.1% |
|
|
|
|
|
|
|
Chicago Board of Education Illinois, GO, Series A, |
|
|
2,590 |
|
|
2,932,398 |
|
Chicago Park District, GO, Harbor Facilities, Series C, |
|
|
600 |
|
|
659,094 |
|
Chicago Transit Authority, RB, 5.25%, 12/01/36 |
|
|
650 |
|
|
723,385 |
|
City of Chicago Illinois, RB, Series A (AGC), 5.00%, |
|
|
7,310 |
|
|
7,648,160 |
|
Railsplitter Tobacco Settlement Authority, RB, 6.00%, |
|
|
710 |
|
|
794,405 |
|
|
|
|
|
|
|
12,757,442 |
|
Indiana 2.0% |
|
|
|
|
|
|
|
Indiana Finance Authority Wastewater Utility, |
|
|
1,100 |
|
|
1,224,333 |
|
Indiana Municipal Power Agency, RB, Series B, 5.75%, |
|
|
450 |
|
|
481,995 |
|
Indianapolis Local Public Improvement Bond Bank, |
|
|
5,750 |
|
|
6,421,543 |
|
|
|
|
|
|
|
8,127,871 |
|
Iowa 1.3% |
|
|
|
|
|
|
|
Iowa Finance Authority, RB, Series A (AGC), 5.63%, |
|
|
5,000 |
|
|
5,495,900 |
|
Kentucky 0.4% |
|
|
|
|
|
|
|
Kentucky State Property & Buildings Commission, |
|
|
1,500 |
|
|
1,692,525 |
|
|
|
|
|
See Notes to Financial Statements. |
|
|
|
|
|
|
|
|
SEMI-ANNUAL REPORT |
FEBRUARY 29, 2012 |
25 |
|
|
|
|
Schedule of Investments (continued) |
BlackRock Municipal Income Quality Trust (BYM) |
|
(Percentages shown are based on Net Assets) |
|
|
|
|
|
|
|
|
Municipal Bonds |
|
Par |
|
Value |
|
||
Louisiana 2.8% |
|
|
|
|
|
|
|
Jefferson Parish Hospital Service District No. 1, |
|
$ |
1,550 |
|
$ |
1,721,492 |
|
Parish of Saint John the Baptist Louisiana, RB, |
|