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
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 08/31/2013
Date of reporting period: 02/28/2013
Item 1 Report to Stockholders
FEBRUARY 28, 2013
SEMI-ANNUAL REPORT (UNAUDITED)
|
BlackRock Municipal Bond Investment Trust (BIE)
BlackRock Municipal Bond Trust (BBK)
BlackRock Municipal Income Investment Quality Trust (BAF)
BlackRock Municipal Income Quality Trust (BYM)
BlackRock Municipal Income Trust II (BLE)
BlackRock MuniHoldings Investment Quality Fund (MFL)
BlackRock MuniVest Fund, Inc. (MVF)
Not FDIC Insured May Lose Value No Bank Guarantee |
Table of Contents |
Page | ||||
3 | ||||
4 | ||||
5 | ||||
5 | ||||
6 | ||||
Financial Statements: | ||||
20 | ||||
56 | ||||
57 | ||||
58 | ||||
60 | ||||
61 | ||||
68 | ||||
78 | ||||
79 |
2 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Dear Shareholder |
Despite a number of headwinds, risk assets generated strong returns during the 6- and 12-month periods as investors sought meaningful yields in the ongoing low-interest-rate environment. About this time one year ago, the European debt crisis returned to the headlines as unresolved policy decisions left it unclear as to how troubled peripheral countries would finance their sovereign debt, causing yields to soar. In the second quarter of 2012, political instability in Greece and severe deficit and liquidity problems in Spain raised the specter of a full-blown euro collapse. Alongside the drama in Europe, investors were discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, emerged as a particular concern. As the outlook for the global economy worsened, however, investors grew increasingly optimistic that the worlds largest central banks would soon intervene to stimulate growth. This theme, along with the announcement of the European Central Banks (ECBs) firm commitment to preserve the euro currency bloc, drove most asset classes higher through the summer. Policy relief came in early September, when the ECB announced its decision to support the eurozones debt-laden countries with unlimited purchases of short term sovereign debt. Days later, the US Federal Reserve announced its own much-anticipated stimulus package.
Although financial markets world-wide were buoyed by accommodative monetary policies, risk assets weakened in the fall. Global trade began to slow as many European countries fell into recession and growth continued to decelerate in China, where a once-a-decade leadership change compounded uncertainty. In the United States, stocks slid on lackluster corporate earnings reports and market volatility rose in advance of the US Presidential election. In the post-election environment, investors grew increasingly concerned over the fiscal cliff, the automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013. There was widespread fear that the fiscal cliff would push the United States into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that bipartisan gridlock would preclude a timely budget deal triggered higher levels of volatility in financial markets around the world in the months leading up to the last day of the year. Ultimately, the worst of the fiscal cliff was averted with a last-minute tax deal; however, decisions relating to spending cuts and the debt ceiling continued to weigh on investors minds.
Investors shook off the nerve-wracking finale to 2012 and began the New Year with a powerful equity rally. Money that had been pulled to the sidelines amid year-end tax-rate uncertainty poured back into the markets in January. Key indicators signaled modest but broad-based improvements in the worlds major economies, particularly in China. Global equities soared through January while rising US Treasury yields pressured high-quality fixed income assets. However, bond markets strengthened in February when economic momentum slowed and investors toned down their risk appetite. US stocks continued to rise, but at a more moderate pace. Uncertainty about how long the Federal Reserve would maintain its easing bias drove high levels of volatility later in the month, but these fears abated as the budget sequester (automatic spending cuts scheduled to take effect March 1) began to appear imminent and was deemed likely to deter any near-term curtailment of monetary easing policies. Outside the United States, equities largely declined as political uncertainty escalated after the Italian presidential election ended in a stalemate.
On the whole, riskier asset classes outperformed lower-risk investments for the 6- and 12-month periods ended February 28, 2013. International, US small cap and emerging market equities were the leading asset classes for the 6-month period, while US stocks and high yield bonds generated the strongest returns for the 12-month period. US Treasury yields remained relatively low overall, but have inched higher in recent months, pressuring Treasuries and investment-grade bonds. Tax-exempt municipal bonds, however, continued to benefit from favorable supply-and-demand dynamics. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.
Investors continue to face many of the same risks as in years past. But we see a world of possibilities. BlackRock was built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. Investors everywhere are asking, So what do I do with my money? Visit www.blackrock.com for answers.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
Despite a number of headwinds, risk assets generated strong returns during the 6- and 12-month periods as investors sought meaningful yields in the ongoing low-interest-rate environment.
Rob Kapito
President, BlackRock Advisors, LLC
Total Returns as of February 28, 2013 | ||||||||
6-month | 12-month | |||||||
US large cap equities |
8.95 | % | 13.46 | % | ||||
US small cap equities |
13.02 | 14.02 | ||||||
International equities |
14.41 | 9.84 | ||||||
Emerging market equities |
12.06 | 0.28 | ||||||
3-month Treasury bill |
0.05 | 0.11 | ||||||
US Treasury securities |
(1.51 | ) | 3.66 | |||||
US investment grade |
0.15 | 3.12 | ||||||
Tax-exempt municipal |
2.40 | 5.71 | ||||||
US high yield bonds (Barclays US Corporate High Yield 2% Issuer Capped Index) |
6.67 | 11.79 | ||||||
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
THIS PAGE NOT PART OF YOUR FUND REPORT | 3 |
Municipal Market Overview |
For the Reporting Period Ended February 28, 2013 |
Municipal Bonds Performed Well
Market conditions remained favorable even though supply picked up considerably in the past year. Total new issuance for the 12 months ended February 28, 2013 was $383 billion as compared to $303 billion in the prior 12-month period. However, it is important to note that a significant portion (roughly 60%) of the new supply during the most recent 12-month period was attributable to refinancing activity as issuers took advantage of lower interest rates to reduce their borrowing costs.
Increased supply was met with strong demand during the period as investors were starved for yield in the low- rate environment. Investors poured into municipal bond mutual funds, particularly long-duration and high-yield funds as they tend to provide higher levels of income. For the 12 months ended February 28, 2013, municipal bond fund inflows exceeded $46 billion (according to the Investment Company Institute).
S&P Municipal Bond Index Total Returns as of February 28, 2013 6 months: 2.40% 12 months: 5.71% |
A Closer Look at Yields
From February 29, 2012 to February 28, 2013, muni yields declined by 32 basis points (bps) from 3.23% to 2.91% on AAA-rated 30-year municipal bonds, while falling a modest 4 bps from 1.85% to 1.81% on 10-year bonds and rising 9 bps from 0.68% to 0.77% on 5-year bonds (as measured by Thomson Municipal Market Data). (Bond prices rise as yields fall.) Overall, the municipal yield curve remained relatively steep, but flattened over the 12-month period as the spread between 2- and 30-year maturities tightened by 37 bps and the spread between 2- and 10-year maturities tightened by 9 bps.
During the same time period, US Treasury rates fell by 10 bps in both the 5- and 10-year space while rising 1 bp on 30-year bonds. Accordingly, tax-exempt municipal bonds moderately underperformed Treasuries in the 5- and 10-year space, but significantly outperformed Treasury bonds on the long end of the curve. This outperformance was driven largely by a supply/demand imbalance within the municipal market while evidence of a recovering domestic economy pushed interest rates higher. Additionally, as higher US tax rates began to appear imminent late in 2012, municipal bonds benefited from the increased appeal of tax-exempt investing. Municipals have become an appropriate avenue for investors seeking yield in the low-rate environment as the asset class is known for its lower volatility and preservation of earnings as tax rates rise.
Financial Conditions of Municipal Issuers Continue to Improve
Austerity and de-leveraging have been the general themes across the country as states seek to balance their budgets, although a small number of states continue to rely on a kick-the-can approach to close their budget gaps. Broadly speaking, state governments have demonstrated better fiscal health as their revenues have steadily improved in recent years. Many local municipalities, however, continue to face higher costs passed down from the state level. BlackRock maintains the view that municipal bond defaults will be minimal and remain in the periphery, and that 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.
4 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
The Benefits and Risks of Leveraging |
The Trusts may utilize leverage to seek to enhance the yield and net asset value (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) (VRDP Shares and VMTP Shares 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.
The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV. However, in order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be lower than if the Trusts had not used leverage.
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 holders of Common Shares (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 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 total assets less the sum of its accrued liabilities). In addition, each Trust with VRDP or VMTP Shares limits its economic leverage to 45% of its total managed assets. As of February 28, 2013, the Trusts had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:
Percent of Economic Leverage |
||||
BIE |
39 | % | ||
BBK |
36 | % | ||
BAF |
36 | % | ||
BYM |
37 | % | ||
BLE |
39 | % | ||
MFL |
40 | % | ||
MVF |
39 | % |
Derivative Financial Instruments |
The Trusts may invest in various derivative financial instruments, including financial futures contracts and options, 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 security, index and/or 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.
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 5 |
Trust Summary as of February 28, 2013 | BlackRock Municipal Bond Investment Trust |
Trust Overview |
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.
No assurance can be given that the Trusts investment objective will be achieved.
Performance |
| For the six months ended February 28, 2013, the Trust returned 4.15% based on market price and 3.94% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% 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 Trusts holdings in the State of California contributed positively to performance. While federal tax rate increases were supportive of municipal bonds overall, the addition of a state tax rate increase in California made these issues even more compelling on an after-tax basis. Also enhancing results were holdings in the health, education and transportation sectors. Particularly strong returns came from the Trusts lower-quality holdings in those sectors, which benefited from strong demand as investors sought higher-yielding investments in the low interest rate environment. |
| Conversely, exposure to Puerto Rico sales tax bonds had a negative impact on performance as the continued decline of the local economy and concerns about credit rating downgrades resulted in falling prices across Puerto Rico-issued securities broadly. |
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 New York Stock Exchange (NYSE) |
BIE | |
Initial Offering Date |
April 30, 2002 | |
Yield on Closing Market Price as of February 28, 2013 ($16.83)1 |
5.56% | |
Tax Equivalent Yield2 |
9.82% | |
Current Monthly Distribution per Common Share3 |
$0.0780 | |
Current Annualized Distribution per Common Share3 |
$0.9360 | |
Economic Leverage as of February 28, 20134 |
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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
3 | The Monthly Distribution per Common Share, declared on March 1, 2013, was decreased to $0.076 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 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 5. |
6 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
BlackRock Municipal Bond Investment Trust |
Market Price and Net Asset Value |
The table below summarizes the changes in the Trusts market price and NAV per share:
2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 16.83 | $ | 16.61 | 1.32 | % | $ | 17.99 | $ | 16.20 | ||||||||||
Net Asset Value |
$ | 17.07 | $ | 16.88 | 1.13 | % | $ | 17.70 | $ | 16.61 |
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trusts long-term investments:
Sector Allocation |
2/28/13 | 8/31/12 | |||||||
County/City/Special District/School District |
21 | % | 19 | % | ||||
Transportation |
21 | 18 | ||||||
Health |
16 | 17 | ||||||
Utilities |
16 | 16 | ||||||
Education |
11 | 12 | ||||||
State |
9 | 12 | ||||||
Housing |
4 | 4 | ||||||
Corporate |
1 | 1 | ||||||
Tobacco |
1 | 1 |
Credit Quality Allocation1 |
2/28/13 | 8/31/12 | |||||||
AAA/Aaa |
13 | % | 15 | % | ||||
AA/Aa |
57 | 60 | ||||||
A |
26 | 20 | ||||||
BBB/Baa |
4 | 5 |
1 | Using the higher of Standard & Poors (S&Ps) or Moodys Investors Service (Moodys) ratings. |
Call/Maturity Schedule2 |
Calendar Year Ended December 31, |
||||
2013 |
| |||
2014 |
4 | % | ||
2015 |
| |||
2016 |
2 | |||
2017 |
1 |
2 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 7 |
Trust Summary as of February 28, 2013 | BlackRock Municipal Bond Trust |
Trust Overview |
BlackRock Municipal Bond Trusts (BBK) (the Trust) investment objective is to provide current income exempt from regular federal income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from regular federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests, under normal market conditions, at least 80% of its assets in municipal bonds that are investment grade quality. 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 28, 2013, the Trust returned 4.98% based on market price and 5.01% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. The Trusts premium 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. |
| The Trusts lower-quality investment grade holdings contributed positively to performance as the tightening of credit spreads drove their outperformance over higher-quality bonds during the period. Additional positive performance came from the Trusts allocations to the higher-yielding health, corporate and school district sectors. Heavy exposure to California credits, the best performing state for the period, boosted returns. The Trust also benefited from the roll-down effect, whereby effective maturities become shorter with the passing of the year and therefore bonds are evaluated at lower yield levels, which, in a steep yield curve environment, results in higher prices. |
| Detracting from performance was the Trusts neutral-to-long average duration (greater sensitivity to interest rates) as most of the municipal yield curve experienced slightly higher yields and lower bond prices. The Trusts yield curve positioning favoring longer-dated maturities also had a negative effect. Exposure to Puerto Rico credits detracted from results as the commonwealths deteriorating credit metrics and ratings downgrades led to the underperformance of those issues. |
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Trust Information |
Symbol on NYSE |
BBK | |
Initial Offering Date |
April 30, 2002 | |
Yield on Closing Market Price as of February 28, 2013 ($17.35)1 |
5.78% | |
Tax Equivalent Yield2 |
10.21% | |
Current Monthly Distribution per Common Share3 |
$0.0835 | |
Current Annualized Distribution per Common Share3 |
$1.0020 | |
Economic Leverage as of February 28, 20134 |
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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
3 | The Monthly Distribution per Common Share, declared on March 1, 2013, was decreased to $0.0785 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 5. |
8 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
BlackRock Municipal Bond Trust |
Market Price and Net Asset Value |
The table below summarizes the changes in the Trusts market price and NAV per share:
2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 17.35 | $ | 17.16 | 1.11 | % | $ | 18.74 | $ | 16.85 | ||||||||||
Net Asset Value. |
$ | 16.98 | $ | 16.79 | 1.13 | % | $ | 17.62 | $ | 16.56 |
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trusts long-term investments:
Sector Allocation |
2/28/13 | 8/31/12 | |||||||
Health |
23 | % | 25 | % | ||||
County/City/Special District/School District |
14 | 13 | ||||||
Utilities |
14 | 8 | ||||||
Transportation |
13 | 13 | ||||||
State |
12 | 14 | ||||||
Education |
11 | 11 | ||||||
Housing |
6 | 8 | ||||||
Corporate |
6 | 5 | ||||||
Tobacco |
1 | 3 |
Credit Quality Allocation1 |
2/28/13 | 8/31/12 | |||||||
AAA/Aaa |
6 | % | 9 | % | ||||
AA/Aa |
40 | 35 | ||||||
A |
30 | 26 | ||||||
BBB/Baa |
12 | 18 | ||||||
BB/Ba |
5 | 4 | ||||||
B |
1 | 2 | ||||||
Not Rated2 |
6 | 6 |
1 | Using the higher of S&Ps or Moodys ratings. |
2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2013 and August 31, 2012, the market value of these securities was $4,854,688, representing 2%, and $3,199,110, representing 1%, respectively, of the Trusts long-term investments. |
Call/Maturity Schedule3 |
Calendar Year Ended December 31, |
||||
2013 |
9 | % | ||
2014 |
5 | |||
2015 |
2 | |||
2016 |
3 | |||
2017 |
3 |
3 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 9 |
Trust Summary as of February 28, 2013 | BlackRock Municipal Income Investment Quality Trust |
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.
No assurance can be given that the Trusts investment objective will be achieved.
Performance |
| For the six months ended February 28, 2013, the Trust returned 2.83% based on market price and 3.50% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. The Trusts discount 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. |
| The Trusts holdings in the State of California contributed positively to performance. While federal tax rate increases were supportive of municipal bonds overall, the addition of a state tax rate increase in California made these issues even more compelling on an after-tax basis. Also enhancing results were holdings in the health, education and transportation sectors. Particularly strong returns came from the Trusts lower-quality holdings in those sectors, which benefited from strong demand as investors sought higher-yielding investments in the low interest rate environment. |
| Conversely, exposure to Puerto Rico sales tax bonds had a negative impact on performance as the continued decline of the local economy and concerns about credit rating downgrades resulted in falling prices across Puerto Rico-issued securities broadly. |
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 28, 2013 ($16.29)1 |
5.05% | |
Tax Equivalent Yield2 |
8.92% | |
Current Monthly Distribution per Common Share3 |
$0.0685 | |
Current Annualized Distribution per Common Share3 |
$0.8220 | |
Economic Leverage as of February 28, 20134 |
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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
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 5. |
10 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
BlackRock Municipal Income Investment Quality Trust |
Market Price and Net Asset Value |
The table below summarizes the changes in the Trusts market price and NAV per share:
2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 16.29 | $ | 16.24 | 0.31 | % | $ | 17.49 | $ | 15.80 | ||||||||||
Net Asset Value |
$ | 16.69 | $ | 16.53 | 0.97 | % | $ | 17.35 | $ | 16.26 |
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trusts long-term investments:
Sector Allocation |
2/28/13 | 8/31/12 | |||||||
County/City/Special District/School District |
31 | % | 29 | % | ||||
Transportation |
20 | 19 | ||||||
Utilities |
17 | 20 | ||||||
Health |
11 | 12 | ||||||
State |
10 | 8 | ||||||
Education |
9 | 10 | ||||||
Housing |
1 | 1 | ||||||
Tobacco |
1 | 1 |
Credit Quality Allocation1 |
2/28/13 | 8/31/12 | |||||||
AAA/Aaa |
10 | % | 11 | % | ||||
AA/Aa |
69 | 74 | ||||||
A |
19 | 14 | ||||||
BBB/Baa |
| 1 | ||||||
Not Rated |
2 | |
1 | Using the higher of S&Ps or Moodys ratings. |
Call/Maturity Schedule2 |
Calendar Year Ended December 31, |
||||
2013 |
| |||
2014 |
| |||
2015 |
| |||
2016 |
1 | % | ||
2017 |
1 |
2 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 11 |
Trust Summary as of February 28, 2013 | 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 28, 2013, the Trust returned (1.32)% based on market price and 3.62% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount 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. |
| The Trusts positive performance was derived largely from income accrual as well as spread compression (price appreciation) in certain sectors, most notably health and transportation. Exposure to capital appreciation bonds (zero coupons) also had a positive impact on results as spreads generally tightened in this segment. |
| Trust performance was negatively impacted by a slight rise in interest rates during the period (bond prices fall as rates rise). Exposure to certain Puerto Rico credits detracted from performance as concerns about credit rating agency downgrades resulted in wider credit spreads (falling prices) for Puerto Rico municipal securities broadly. |
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 28, 2013 ($16.04)1 |
5.84% | |
Tax Equivalent Yield2 |
10.32% | |
Current Monthly Distribution per Common Share3 |
$0.0780 | |
Current Annualized Distribution per Common Share3 |
$0.9360 | |
Economic Leverage as of February 28, 20134 |
37% |
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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
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 5. |
12 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
BlackRock Municipal Income Quality Trust |
Market Price and Net Asset Value |
The table below summarizes the changes in the Trusts market price and NAV per share:
2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 16.04 | $ | 16.73 | (4.12 | )% | $ | 17.79 | $ | 15.71 | ||||||||||
Net Asset Value |
$ | 16.22 | $ | 16.11 | 0.68 | % | $ | 16.64 | $ | 15.88 |
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trusts long-term investments:
Sector Allocation |
2/28/13 | 8/31/12 | |||||||
County/City/Special District/School District |
25 | % | 19 | % | ||||
Transportation |
19 | 21 | ||||||
Utilities |
19 | 19 | ||||||
State |
16 | 17 | ||||||
Health |
7 | 9 | ||||||
Tobacco |
5 | 5 | ||||||
Education |
4 | 6 | ||||||
Corporate |
4 | 3 | ||||||
Housing |
1 | 1 |
Credit Quality Allocation1 |
2/28/13 | 8/31/12 | |||||||
AAA/Aaa |
22 | % | 17 | % | ||||
AA/Aa |
52 | 55 | ||||||
A |
21 | 19 | ||||||
BBB/Baa |
4 | 7 | ||||||
B |
1 | 1 | ||||||
Not Rated |
| 1 | 2 |
1 | Using the higher of S&Ps or Moodys ratings. |
2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2012, the market value of these securities was $8,360,761, representing 1% of the Trusts long-term investments. |
Call/Maturity Schedule3 |
Calendar Year Ended December 31, |
||||
2013 |
9 | % | ||
2014 |
7 | |||
2015 |
5 | |||
2016 |
5 | |||
2017 |
8 |
3 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 13 |
Trust Summary as of February 28, 2013 | BlackRock Municipal Income Trust II |
Trust Overview |
BlackRock Municipal Income Trust IIs (BLE) (the Trust) investment objective is to provide current income exempt from regular federal income 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). The Trust invests, under normal market conditions, 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 28, 2013, the Trust returned 2.29% based on market price and 4.17% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. The Trusts premium 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. |
| The Trusts holdings generated a high distribution yield, which in the aggregate, had a meaningful impact on returns. Credit spread compression drove price appreciation, particularly within the Trusts concentration of holdings in lower-quality investment grade and non-investment grade municipal bonds. Also boosting returns were the Trusts allocations to corporate, health and transportation-related debt. Exposure to capital appreciation bonds (zero coupons) had a positive impact on results as this segment tends to outperform in a spread tightening environment. |
| Conversely, security selection within the corporate and tax-backed sectors hindered performance. The Trusts long duration (greater sensitivity to interest rate movements) detracted as yields slightly rose during the period. Modest exposure to certain Puerto Rico credits had a negative impact on results as concerns about the commonwealths deteriorating credit metrics and ratings downgrades led to the underperformance of those issues. |
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Trust Information |
Symbol on NYSE MKT |
BLE | |
Initial Offering Date |
July 30, 2002 | |
Yield on Closing Market Price as of February 28, 2013 ($16.59)1 |
6.15% | |
Tax Equivalent Yield2 |
10.87% | |
Current Monthly Distribution per Common Share3 |
$0.0850 | |
Current Annualized Distribution per Common Share3 |
$1.0200 | |
Economic Leverage as of February 28, 20134 |
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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
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 5. |
14 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
BlackRock Municipal Income Trust II |
Market Price and Net Asset Value |
The table below summarizes the changes in the Trusts market price and NAV per share:
2/28/13 |
8/31/12 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 16.59 | $ | 16.74 | (0.90 | )% | $ | 17.61 | $ | 15.85 | ||||||||||
Net Asset Value |
$ | 16.25 | $ | 16.10 | 0.93 | % | $ | 16.78 | $ | 15.88 |
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trusts long-term investments:
Sector Allocation |
2/28/13 | 8/31/12 | |||||||
Transportation |
20 | % | 17 | % | ||||
Health |
17 | 18 | ||||||
Utilities |
17 | 15 | ||||||
State |
13 | 16 | ||||||
County/City/Special District/School District |
12 | 11 | ||||||
Corporate |
8 | 7 | ||||||
Education |
8 | 9 | ||||||
Tobacco |
3 | 4 | ||||||
Housing |
2 | 3 |
Credit Quality Allocation1 |
2/28/13 | 8/31/12 | |||||||
AAA/Aaa |
10 | % | 13 | % | ||||
AA/Aa |
35 | 36 | ||||||
A |
30 | 25 | ||||||
BBB/Baa |
18 | 17 | ||||||
BB/Ba |
| 2 | ||||||
B |
1 | 1 | ||||||
Not Rated2 |
6 | 6 |
1 | Using the higher of S&Ps or Moodys ratings. |
2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2013 and August 31, 2012, the market value of these securities was $12,353,604 and $12,361,560, each representing 2%, respectively, of the Trusts long-term investments. |
Call/Maturity Schedule3 |
Calendar Year Ended December 31, |
||||
2013 |
6 | % | ||
2014 |
1 | |||
2015 |
6 | |||
2016 |
5 | |||
2017 |
5 |
3 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 15 |
Trust Summary as of February 28, 2013 | 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 28, 2013, the Trust returned 0.13% based on market price and 3.97% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a premium to NAV to a discount 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. |
| The Trusts holdings in the State of California contributed positively to performance. While federal tax rate increases were supportive of municipal bonds overall, the addition of a state tax rate increase in California made these issues even more compelling on an after-tax basis. Also enhancing results were holdings in the health, education and transportation sectors. Particularly strong returns came from the Trusts lower-quality holdings in those sectors, which benefited from strong demand as investors sought higher-yielding investments in the low interest rate environment. |
| Conversely, exposure to Puerto Rico sales tax bonds had a negative impact on performance as the continued decline of the local economy and concerns about credit rating downgrades resulted in falling prices across Puerto Rico-issued securities broadly. |
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 28, 2013 ($15.70)1 |
5.85% | |
Tax Equivalent Yield2 |
10.34% | |
Current Monthly Distribution per Common Share3 |
$0.0765 | |
Current Annualized Distribution per Common Share3 |
$0.9180 | |
Economic Leverage as of February 28, 20134 |
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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
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 5. |
16 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
BlackRock MuniHoldings Investment Quality Fund |
Market Price and Net Asset Value |
The table below summarizes the changes in the Trusts market price and NAV per share:
2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 15.70 | $ | 16.13 | (2.67 | )% | $ | 17.20 | $ | 15.52 | ||||||||||
Net Asset Value |
$ | 16.13 | $ | 15.96 | 1.07 | % | $ | 16.77 | $ | 15.70 |
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trusts long-term investments:
Sector Allocation |
2/28/13 | 8/31/12 | |||||||
Transportation |
28 | % | 21 | % | ||||
Utilities |
18 | 18 | ||||||
County/City/Special District/School District |
15 | 16 | ||||||
State |
14 | 16 | ||||||
Health |
12 | 14 | ||||||
Education |
10 | 11 | ||||||
Housing |
2 | 3 | ||||||
Tobacco |
1 | 1 |
Credit Quality Allocation1 |
2/28/13 | 8/31/12 | |||||||
AAA/Aaa |
13 | % | 14 | % | ||||
AA/Aa |
59 | 66 | ||||||
A |
26 | 18 | ||||||
BBB/Baa |
| 1 | ||||||
Not Rated2 |
2 | 1 |
1 | Using the higher of S&Ps or Moodys ratings. |
2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2013 and August 31, 2012, the market value of these securities was $8,585,448 and $4,206,588, each representing less than 1%, respectively, of the Trusts long-term investments. |
Call/Maturity Schedule3 |
Calendar Year Ended December 31, |
||||
2013 |
1 | % | ||
2014 |
1 | |||
2015 |
| |||
2016 |
1 | |||
2017 |
3 |
3 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 17 |
Trust Summary as of February 28, 2013 | 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.
No assurance can be given that the Trusts investment objective will be achieved.
Performance |
| For the six months ended February 28, 2013, the Trust returned 3.39% based on market price and 3.97% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 2.51% based on market price and 4.16% based on NAV. All returns reflect reinvestment of dividends. The Trusts premium 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. |
| The Trusts positive performance was derived mainly from its coupon income component as municipal market performance during the six-month period, although positive, was less robust than it had been in the prior eighteen months. The Trust benefited from its zero-coupon bond holdings due to positive price movement in that segment. Exposure to lower-quality investment grade credits boosted results given strong demand from investors seeking higher-yielding investments in the low interest rate environment. |
| Interest rates inched higher during the period, which negatively impacted performance (bond prices fall as rates rise). Exposure to Puerto Rico debt detracted from performance as concerns about credit rating agency downgrades resulted in wider credit spreads (falling prices) for Puerto Rico municipal securities broadly. |
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 MKT |
MVF | |
Initial Offering Date |
September 29, 1988 | |
Yield on Closing Market Price as of February 28, 2013 ($11.29)1 |
6.27% | |
Tax Equivalent Yield2 |
11.08% | |
Current Monthly Distribution per Common Share3 |
$0.0590 | |
Current Annualized Distribution per Common Share3 |
$0.7080 | |
Economic Leverage as of February 28, 20134 |
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 marginal federal tax rate of 43.4%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
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 5. |
18 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
BlackRock MuniVest Fund, Inc. |
Market Price and Net Asset Value |
The table below summarizes the changes in the Trusts market price and NAV per share:
2/28/13 | 8/31/12 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 11.29 | $ | 11.28 | 0.09 | % | $ | 12.29 | $ | 10.87 | ||||||||||
Net Asset Value |
$ | 10.75 | $ | 10.68 | 0.66 | % | $ | 11.06 | $ | 10.53 |
The following charts show the sector allocation, credit quality allocation and call/maturity schedule of the Trusts long-term investments:
Sector Allocation |
2/28/13 | 8/31/12 | |||||||
Health |
23 | % | 28 | % | ||||
Transportation |
21 | 17 | ||||||
Utilities |
13 | 6 | ||||||
Corporate |
11 | 10 | ||||||
County/City/Special District/School District |
11 | 8 | ||||||
Education |
8 | 10 | ||||||
State |
6 | 6 | ||||||
Housing |
5 | 9 | ||||||
Tobacco |
2 | 6 |
Credit Quality Allocation1 |
2/28/13 | 8/31/12 | |||||||
AAA/Aaa |
12 | % | 12 | % | ||||
AA/Aa |
47 | 46 | ||||||
A |
26 | 25 | ||||||
BBB/Baa |
12 | 12 | ||||||
BB/Ba |
| 2 | ||||||
B |
1 | | ||||||
Not Rated2 |
2 | 3 |
1 | Using the higher of S&Ps or Moodys ratings. |
2 | The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of February 28, 2013 and August 31, 2012, the market value of these securities was $20,449,481, representing 2%, and $30,422,382, representing 3%, respectively, of the Trusts long-term investments. |
Call/Maturity Schedule3 |
Calendar Year Ended December 31, |
||||
2013 |
9 | % | ||
2014 |
5 | |||
2015 |
1 | |||
2016 |
6 | |||
2017 |
7 |
3 | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 19 |
BlackRock Municipal Bond Investment Trust (BIE) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Alabama 3.3% |
||||||||
Alabama Incentives Financing Authority, RB, Series A, 5.00%, 9/01/42 |
$ | 1,500 | $ | 1,700,115 | ||||
Selma IDB, RB, International Paper Co. Project, Series A, 5.38%, 12/01/35 |
145 | 159,938 | ||||||
|
|
|||||||
1,860,053 | ||||||||
Alaska 0.3% |
||||||||
Northern Tobacco Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/46 |
180 | 157,910 | ||||||
Arizona 0.5% |
||||||||
Arizona Board of Regents, Refunding RB, University of Arizona, Series A, 5.00%, 6/01/42 |
250 | 284,510 | ||||||
California 8.3% |
||||||||
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 |
700 | 826,273 | ||||||
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39 |
120 | 142,472 | ||||||
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38 |
1,660 | 1,928,339 | ||||||
San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36 |
850 | 969,714 | ||||||
State of California, GO, Various Purpose, 6.00%, 3/01/33 |
685 | 849,688 | ||||||
|
|
|||||||
4,716,486 | ||||||||
Colorado 1.6% |
||||||||
City & County of Denver Colorado, Refunding ARB, Airport System, Series B, 5.00%, 11/15/37 |
235 | 269,221 | ||||||
Colorado Health Facilities Authority, Refunding RB, Catholic Healthcare Initiatives, Series A, 5.50%, 7/01/34 |
580 | 662,064 | ||||||
|
|
|||||||
931,285 | ||||||||
Florida 1.1% |
||||||||
City of Jacksonville Florida, Refunding RB, Better Jacksonville Sale Tax, Series A, 5.00%, 10/01/30 |
295 | 344,120 | ||||||
Orlando-Orange County Expressway Authority, Refunding RB, Series A, 5.00%, 7/01/29 |
250 | 293,083 | ||||||
|
|
|||||||
637,203 | ||||||||
Georgia 1.2% |
||||||||
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23 |
555 | 678,676 | ||||||
Illinois 13.8% |
||||||||
Chicago Illinois Board of Education, GO, Series A: |
||||||||
5.50%, 12/01/39 |
500 | 579,340 | ||||||
5.00%, 12/01/42 |
715 | 778,285 | ||||||
Municipal Bonds | Par (000) |
Value | ||||||
Illinois (concluded) |
||||||||
Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/36 |
$ | 165 | $ | 189,697 | ||||
City of Chicago Illinois, ARB, OHare International Airport, General, Third Lien, Series C, 6.50%, 1/01/41 |
1,590 | 2,056,013 | ||||||
City of Chicago Illinois, Refunding RB, Sales Tax Revenue, Series A, 5.25%, 1/01/38 |
205 | 235,430 | ||||||
City of Chicago Illinois Wastewater Transmission, RB, Second Lien, 5.00%, 1/01/42 (a) |
310 | 345,585 | ||||||
Cook County Forest Preserve District, GO, Series C, 5.00%, 12/15/32 |
150 | 172,207 | ||||||
Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/32 |
70 | 80,364 | ||||||
Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 8/15/41 |
750 | 897,855 | ||||||
Illinois Finance Authority, Refunding RB: |
||||||||
Northwestern Memorial Healthcare, 5.00%, 8/15/37 |
115 | 130,879 | ||||||
Northwestern Memorial Hospital, 6.00%, 8/15/39 |
1,000 | 1,186,630 | ||||||
Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Project, Series B, 5.00%, 12/15/28 |
530 | 621,054 | ||||||
Railsplitter Tobacco Settlement Authority, RB: |
||||||||
5.50%, 6/01/23 |
365 | 440,394 | ||||||
6.00%, 6/01/28 |
105 | 125,677 | ||||||
|
|
|||||||
7,839,410 | ||||||||
Indiana 2.5% |
||||||||
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39 |
1,190 | 1,424,311 | ||||||
Kansas 3.4% |
||||||||
Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group: |
||||||||
Series A, 5.00%, 11/15/32 |
750 | 871,252 | ||||||
Series C, 5.50%, 11/15/29 |
900 | 1,054,359 | ||||||
|
|
|||||||
1,925,611 | ||||||||
Kentucky 2.5% |
||||||||
Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40 |
350 | 420,693 | ||||||
Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34 |
800 | 984,808 | ||||||
|
|
|||||||
1,405,501 | ||||||||
Louisiana 0.8% |
||||||||
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35 |
380 | 448,833 |
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. | HRB | Housing Revenue Bonds | ||||
AGM | Assured Guaranty Municipal Corp. | IDA | Industrial Development Authority | |||||
AMBAC | American Municipal Bond Assurance Corp. | IDB | Industrial Development Board | |||||
AMT | Alternative Minimum Tax (subject to) | IDRB | Industrial Development Revenue Bonds | |||||
ARB | Airport Revenue Bonds | ISD | Independent School District | |||||
BARB | Building Aid Revenue Bonds | LRB | Lease Revenue Bonds | |||||
BHAC | Berkshire Hathaway Assurance Corp. | MRB | Mortgage Revenue Bonds | |||||
CAB | Capital Appreciation Bonds | M/F | Multi-Family | |||||
COP | Certificates of Participation | NPFGC | National Public Finance Guarantee Corp. | |||||
EDC | Economic Development Corp. | PSF-GTD | Permanent School Fund Guaranteed | |||||
EDA | Economic Development Authority | Q-SBLF | Qualified School Bond Loan Fund | |||||
ERB | Education Revenue Bonds | RB | Revenue Bonds | |||||
GARB | General Airport Revenue Bonds | SAN | State Aid Notes | |||||
GO | General Obligation Bonds | SBPA | Stand-by Bond Purchase Agreements | |||||
HDA | Housing Development Authority | S/F | Single-Family | |||||
HFA | Housing Finance Agency | VRDN | Variable Rate Demand Notes |
See Notes to Financial Statements.
20 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Investment Trust (BIE) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Maine 1.5% |
||||||||
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32 |
$ | 675 | $ | 869,387 | ||||
Massachusetts 0.7% |
||||||||
Massachusetts Development Finance Agency, Refunding RB, Trustees of Deerfield Academy, 5.00%, 10/01/40 |
375 | 430,234 | ||||||
Michigan 3.2% |
||||||||
Lansing Board of Water & Light Utilities System, RB, Series A, 5.50%, 7/01/41 |
485 | 573,478 | ||||||
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38 |
500 | 603,235 | ||||||
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39 |
530 | 675,252 | ||||||
|
|
|||||||
1,851,965 | ||||||||
Mississippi 2.4% |
||||||||
Mississippi Development Bank, Refunding RB: |
||||||||
Jackson Mississippi Water & Sewer (AGM), 5.00%, 9/01/30 |
535 | 623,425 | ||||||
Jackson Public School District Project, Series A, 5.00%, 4/01/28 |
645 | 735,474 | ||||||
|
|
|||||||
1,358,899 | ||||||||
Multi-State 5.7% |
||||||||
Centerline Equity Issuer Trust, 7.20%, 11/15/52 (b)(c) |
3,000 | 3,269,220 | ||||||
Nevada 4.1% |
||||||||
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34 |
1,000 | 1,173,150 | ||||||
County of Clark Nevada, ARB, Series B, 5.75%, 7/01/42 |
1,000 | 1,175,670 | ||||||
|
|
|||||||
2,348,820 | ||||||||
New Jersey 5.2% |
||||||||
New Jersey EDA, Refunding RB, School Facilities Construction, Series AA, 5.50%, 12/15/29 |
750 | 871,305 | ||||||
New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 |
610 | 676,917 | ||||||
New Jersey Transportation Trust Fund Authority, RB, Transportation System: |
||||||||
5.50%, 6/15/41 |
500 | 582,405 | ||||||
5.88%, 12/15/38 |
695 | 822,637 | ||||||
|
|
|||||||
2,953,264 | ||||||||
New York 2.0% |
||||||||
Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47 |
145 | 172,573 | ||||||
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49 |
325 | 386,493 | ||||||
New York State Dormitory Authority, RB, Series B, 5.00%, 3/15/42 |
500 | 570,630 | ||||||
|
|
|||||||
1,129,696 | ||||||||
North Carolina 1.1% |
||||||||
North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/32 |
530 | 618,378 | ||||||
Ohio 1.1% |
||||||||
Ohio State University, RB, Special Purpose General Receipts, Series A, 5.00%, 6/01/38 |
545 | 632,772 | ||||||
Municipal Bonds | Par (000) |
Value | ||||||
Pennsylvania 6.2% |
||||||||
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39 |
$ | 300 | $ | 349,263 | ||||
Pennsylvania Turnpike Commission, RB: |
||||||||
Sub-Series A, 5.63%, 12/01/31 |
750 | 880,230 | ||||||
Sub-Series A, 6.00%, 12/01/41 |
1,500 | 1,708,665 | ||||||
Sub-Series C, (AGC), 6.25%, 6/01/38 |
500 | 605,185 | ||||||
|
|
|||||||
3,543,343 | ||||||||
Texas 12.6% |
||||||||
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.00%, 1/01/41 |
890 | 1,035,417 | ||||||
City of Houston Texas, Refunding RB, Utility System, Series D, 5.00%, 11/15/42 |
500 | 574,610 | ||||||
Conroe ISD Texas, GO, School Building, Series A, 5.75%, 2/15/35 |
470 | 560,489 | ||||||
Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31 |
250 | 319,305 | ||||||
Houston Community College System, GO, 5.00%, 2/15/36 (a) |
205 | 232,798 | ||||||
North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41 |
500 | 594,080 | ||||||
North Texas Tollway Authority, Refunding RB, First Tier: |
||||||||
Series B, 5.00%, 1/01/42 |
750 | 833,677 | ||||||
Series K-1 (AGC), 5.75%, 1/01/38 |
250 | 281,723 | ||||||
Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45 |
1,020 | 1,232,354 | ||||||
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 |
500 | 596,450 | ||||||
Texas Transportation Commission, Refunding RB, First Tier, Series A, 5.00%, 8/15/41 |
175 | 191,998 | ||||||
University of Texas System, Refunding RB, Financing System Bonds, Series B, 5.00%, 8/15/43 |
615 | 718,996 | ||||||
|
|
|||||||
7,171,897 | ||||||||
Utah 2.0% |
||||||||
Utah Transit Authority, Refunding RB, Subordinated Sales Tax, 5.00%, 6/15/42 |
1,000 | 1,128,270 | ||||||
Virginia 3.7% |
||||||||
Fairfax County IDA, RB, Health Care, Inova Health System, Series A, 5.00%, 5/15/40 |
275 | 312,571 | ||||||
Norfolk EDA, Refunding RB, Sentara Healthcare, Series B, 5.00%, 11/01/36 |
500 | 571,670 | ||||||
Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/18 (d) |
500 | 657,335 | ||||||
Virginia Resources Authority, RB, Series A-1, 5.00%, 11/01/42 |
485 | 561,499 | ||||||
|
|
|||||||
2,103,075 | ||||||||
Washington 2.0% |
||||||||
Port of Seattle, Refunding RB, Intermediate Lien, Series A, 5.00%, 8/01/32 |
1,000 | 1,165,790 | ||||||
Wisconsin 3.2% |
||||||||
University of Wisconsin Hospitals & Clinics Authority, Refunding RB, Series A, 5.00%, 4/01/38 (a) |
145 | 162,175 | ||||||
Wisconsin Health & Educational Facilities Authority, RB, Ascension Health Alliiance, Series D, 5.00%, 11/15/41 |
485 | 545,019 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 21 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Investment Trust (BIE) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Wisconsin (concluded) |
||||||||
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert Health, Inc.: |
||||||||
Series A, 5.00%, 4/01/42 |
$ | 125 | $ | 140,486 | ||||
Series C, 5.25%, 4/01/39 |
890 | 985,560 | ||||||
|
|
|||||||
1,833,240 | ||||||||
Total Municipal Bonds 96.0% | 54,718,039 | |||||||
Municipal Bonds Transferred to Tender Option Bond Trusts (e) |
||||||||
California 19.4% |
||||||||
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (f) |
1,005 | 1,178,121 | ||||||
Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40 |
1,300 | 1,451,710 | ||||||
Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (f) |
1,410 | 1,705,381 | ||||||
Los Angeles Community College District California, GO, Refunding, Series A, 6.00%, 8/01/33 |
2,079 | 2,597,309 | ||||||
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 |
200 | 224,448 | ||||||
San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.50%, 8/01/39 |
2,234 | 2,615,912 | ||||||
University of California, RB, Series O, 5.75%, 5/15/34 |
810 | 976,158 | ||||||
University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37 |
250 | 288,684 | ||||||
|
|
|||||||
11,037,723 | ||||||||
District of Columbia 3.4% |
||||||||
District of Columbia, RB, Series A, 5.50%, 12/01/30 (f) |
735 | 893,662 | ||||||
District of Columbia Water & Sewer Authority, Refunding RB, Series A, 5.50%, 10/01/39 |
899 | 1,061,426 | ||||||
|
|
|||||||
1,955,088 | ||||||||
Florida 0.5% |
||||||||
County of Miami-Dade Florida, Refunding RB, Transit System Sales Surtax, 5.00%, 7/01/42 |
260 | 292,159 | ||||||
Illinois 8.1% |
||||||||
City of Chicago Illinois Waterworks, Refunding RB, Second Lien, 5.00%, 11/01/42 |
400 | 451,474 | ||||||
Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38 |
1,500 | 1,860,045 | ||||||
Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33 |
2,000 | 2,283,353 | ||||||
|
|
|||||||
4,594,872 | ||||||||
Massachusetts 1.6% |
||||||||
Massachusetts School Building Authority, Sales Tax RB, Senior Lien, Series B, 5.00%, 10/15/41 |
790 | 906,091 | ||||||
Nevada 3.2% |
||||||||
Clark County Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/38 |
1,500 | 1,813,485 | ||||||
New Hampshire 1.2% |
||||||||
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (f) |
585 | 684,893 | ||||||
New Jersey 3.7% |
||||||||
New Jersey Transportation Trust Fund Authority, RB, Transportation System: |
||||||||
Series A (AGM), 5.00%, 12/15/32 |
1,000 | 1,138,810 | ||||||
Series B, 5.25%, 6/15/36 |
840 | 959,314 | ||||||
|
|
|||||||
2,098,124 |
Municipal Bonds Transferred to Tender Option Bond Trusts (e) |
Par (000) |
Value | ||||||
New York 14.3% |
||||||||
New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40 |
$ | 750 | $ | 894,809 | ||||
New York City Municipal Water Finance Authority, Refunding RB: |
||||||||
Series FF, 5.00%, 6/15/45 |
1,000 | 1,130,475 | ||||||
Series FF-2, 5.50%, 6/15/40 |
990 | 1,172,004 | ||||||
New York City Transitional Finance Authority, BARB, Building Aid, Fiscal 2009, Series S-3, 5.25%, 1/15/39 |
1,000 | 1,117,917 | ||||||
New York City Transitional Finance Authority, RB, Future Tax Secured, Fiscal 2012, Series E, 5.00%, 2/01/42 |
460 | 524,110 | ||||||
New York Liberty Development Corp., RB, 1 World Trade Center Project, 5.25%, 12/15/43 |
1,170 | 1,342,884 | ||||||
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 |
680 | 805,800 | ||||||
New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38 |
1,000 | 1,171,800 | ||||||
|
|
|||||||
8,159,799 | ||||||||
Ohio 1.6% |
||||||||
County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38 |
840 | 939,170 | ||||||
Puerto Rico 0.9% |
||||||||
Puerto Rico Sales Tax Financing Corp., Sales Tax, Refunding RB, Sales Tax Revenue, Series C, 5.25%, 8/01/40 |
460 | 502,154 | ||||||
Texas 7.2% |
||||||||
City of San Antonio Texas, Refunding RB, Electric and Gas Systems Revenue, Series A, 5.25%, 2/01/31 (f) |
1,050 | 1,250,462 | ||||||
Harris County Cultural Education Facilities Finance Corp., RB, Texas Childrens Hospital Project, 5.50%, 10/01/39 |
1,450 | 1,715,713 | ||||||
Waco Educational Finance Corp., Refunding RB, Baylor University, 5.00%, 3/01/43 |
1,005 | 1,144,765 | ||||||
|
|
|||||||
4,110,940 | ||||||||
Virginia 0.9% |
||||||||
Fairfax County IDA Virginia, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35 |
460 | 528,879 | ||||||
Washington 1.5% |
||||||||
University of Washington, Refunding RB, Series A, 5.00%, 7/01/41 |
735 | 850,540 | ||||||
Total Municipal Bonds Transferred to Tender Option Bond Trusts 67.5% |
38,473,917 | |||||||
Total Long-Term Investments (Cost $82,732,308) 163.5% |
93,191,956 | |||||||
Short-Term Securities | Shares | |||||||
FFI Institutional Tax-Exempt Fund, 0.01% (g)(h) |
1,154,435 | 1,154,435 | ||||||
Total Short-Term Securities (Cost $1,154,435) 2.0% |
1,154,435 | |||||||
Total Investments (Cost $83,886,743) 165.5% | 94,346,391 | |||||||
Liabilities in Excess of Other Assets (0.4)% | (206,749 | ) | ||||||
Liability for TOB Trust Certificates, Including Interest |
|
(19,347,621 | ) | |||||
VRDP Shares, at Liquidation Value (31.2)% | (17,800,000 | ) | ||||||
|
|
|||||||
Net Assets Applicable to Common Shares 100.0% | $ | 56,992,021 | ||||||
|
|
See Notes to Financial Statements.
22 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Schedule of Investments (concluded) |
BlackRock Municipal Bond Investment Trust (BIE) |
Notes to Schedule of investments |
(a) | When-issued security. Unsettled when-issued transactions were as follows: |
Counterparty | Value |
Unrealized Appreciation |
||||||
Stifel Nicolaus & Co. | $ | 345,585 | $ | (180 | ) | |||
JPMorgan Securities, Inc. |
$ | 394,973 | $ | 16 |
(b) | 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. |
(c) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(d) | US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
(e) | 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. |
(f) | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $2,954,469. |
(g) | Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
Affiliate | Shares Held at August 31, 2012 |
Net Activity |
Shares Held at February 28, 2013 |
Income | ||||||||||||
FFI Institutional Tax-Exempt Fund |
159,677 | 994,758 | 1,154,435 | $ | 94 |
(h) | Represents the current yield as of report date. |
| Fair Value Measurements Various inputs are used in determining the fair value of investments. These inputs to valuation techniques 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 that the Trust has the ability to access |
| Level 2 other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
| Level 3 unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trusts own assumptions used in determining the fair value of investments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trusts policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with 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 Trusts investments categorized in the disclosure hierarchy as of February 28, 2013:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: |
||||||||||||||||||||
Investments: | ||||||||||||||||||||
Long-Term Investments1 |
| $ | 93,191,956 | | $ | 93,191,956 | ||||||||||||||
Short-Term Securities |
$ | 1,154,435 | | | 1,154,435 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 1,154,435 | $ | 93,191,956 | | $ | 94,346,391 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
1 See above Schedule of Investments for values in each state or political subdivision. |
| |||||||||||||||||||
Certain of the Trusts liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such liabilities are categorized within the disclosure hierarchy as follows: |
| |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Liabilities: |
||||||||||||||||||||
TOB trust certificates |
| $ | (19,340,052 | ) | | $ | (19,340,052 | ) | ||||||||||||
VRDP Shares |
| (17,800,000 | ) | | (17,800,000 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
| $ | (37,140,052 | ) | | $ | (37,140,052 | ) | ||||||||||||
|
|
|
|
|
|
|
|
There were no transfers between levels during the six months ended February 28, 2013.
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 23 |
Schedule of Investments February 28, 2013 (Unaudited) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Alabama 4.0% |
||||||||
Birmingham Special Care Facilities Financing Authority, RB, Childrens Hospital (AGC): |
||||||||
6.00%, 6/01/34 |
$ | 1,150 | $ | 1,352,940 | ||||
6.00%, 6/01/39 |
450 | 529,547 | ||||||
Birmingham Water Works Board, RB, 4.75%, 1/01/36 |
2,100 | 2,295,132 | ||||||
Hoover City Board of Education, Special Tax, Refunding, 4.25%, 2/15/40 |
2,750 | 2,930,702 | ||||||
|
|
|||||||
7,108,321 | ||||||||
Arizona 9.4% |
||||||||
Arizona Health Facilities Authority, Refunding RB, Phoenix Childrens Hospital, Series A, 5.00%, 2/01/42 |
2,200 | 2,372,260 | ||||||
Arizona Sports & Tourism Authority, RB, Multipurpose Stadium Facilities, Series A (NPFGC), 5.00%, 7/01/13 (a) |
1,500 | 1,524,570 | ||||||
Arizona State University, RB, Series D, 5.50%, 7/01/26 |
200 | 241,648 | ||||||
County of Pinal Arizona Election District No. 3, Refunding RB, 4.75%, 7/01/31 |
3,750 | 4,106,287 | ||||||
Pima County IDA, Refunding IDRB, Tucson Electric Power, 5.75%, 9/01/29 |
900 | 952,470 | ||||||
Salt Verde Financial Corp., RB, Senior: |
||||||||
5.00%, 12/01/32 |
1,500 | 1,737,090 | ||||||
5.00%, 12/01/37 |
2,065 | 2,387,512 | ||||||
San Luis Facility Development Corp., RB, Senior Lien, Regional Detention Center Project: |
||||||||
6.25%, 5/01/15 |
185 | 184,273 | ||||||
7.00%, 5/01/20 |
300 | 305,130 | ||||||
7.25%, 5/01/27 |
600 | 576,858 | ||||||
State of Arizona, COP, Department of Administration, Series A (AGM), 5.00%, 10/01/29 |
750 | 851,085 | ||||||
University Medical Center Corp. Arizona, RB, 6.50%, 7/01/39 |
500 | 580,915 | ||||||
University Medical Center Corp. Arizona, Refunding RB, 6.00%, 7/01/39 |
900 | 1,040,364 | ||||||
|
|
|||||||
16,860,462 | ||||||||
Arkansas 1.2% |
||||||||
City of Conway Arkansas, RB, Wastewater Revenue Improvement, Series A, 4.20%, 10/01/37 |
500 | 534,840 | ||||||
City of Springdale Arkansas, RB, Sales and Tax Use: |
||||||||
3.00%, 11/01/30 |
650 | 628,778 | ||||||
3.00%, 11/01/31 |
1,010 | 969,347 | ||||||
|
|
|||||||
2,132,965 | ||||||||
California 19.6% |
||||||||
California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, 11.06%, 6/01/55 (b) |
4,500 | 47,655 | ||||||
California Educational Facilities Authority, Refunding RB, Santa Clara University, 5.00%, 2/01/40 |
1,000 | 1,114,270 | ||||||
California Health Facilities Financing Authority, RB, Sutter Health, Series B, 5.88%, 8/15/31 |
1,900 | 2,322,560 | ||||||
California HFA, RB, Home Mortgage, Series G, AMT, 5.05%, 2/01/29 |
2,285 | 2,269,850 | ||||||
Carlsbad Unified School District, GO, Election of 2006, Series B, 4.99%, 5/01/34 (c) |
1,000 | 823,790 | ||||||
City of Manteca California Sewer, Refunding RB, 4.00%, 12/01/33 |
3,395 | 3,557,077 | ||||||
City of San Jose California, Refunding ARB, San Jose Airport, Series A1, AMT, 5.75%, 3/01/34 |
2,000 | 2,314,940 | ||||||
Dinuba Unified School District, GO, Election of 2006 (AGM): |
||||||||
5.63%, 8/01/31 |
250 | 288,243 | ||||||
5.75%, 8/01/33 |
500 | 578,845 | ||||||
Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 4.94%, 8/01/34 (c) |
1,650 | 1,247,945 | ||||||
Municipal Bonds | Par (000) |
Value | ||||||
California (concluded) |
||||||||
Norwalk-La Mirada Unified School District California, GO, CAB, Refunding, Election of 2002, Series E (AGC), 4.81%, 8/01/38 (b) |
$ | 8,000 | $ | 2,392,240 | ||||
Palomar Community College District, GO, CAB, Election of 2006, Series B: |
||||||||
4.36%, 8/01/30 (b) |
1,500 | 707,445 | ||||||
5.53%, 8/01/33 (b) |
4,000 | 1,312,560 | ||||||
4.76%, 8/01/39 (c) |
2,000 | 1,293,800 | ||||||
San Diego Community College District California, GO, CAB, Election of 2002, 4.73%, 8/01/33 (c) |
2,800 | 2,361,240 | ||||||
San Jose Evergreen Community College District, GO, Election of 2010, Series B, 3.50%, 8/01/32 |
1,200 | 1,224,948 | ||||||
State of California, GO, Various Purpose: |
||||||||
5.75%, 4/01/31 |
2,000 | 2,390,080 | ||||||
6.00%, 3/01/33 |
1,000 | 1,240,420 | ||||||
6.50%, 4/01/33 |
1,950 | 2,444,500 | ||||||
5.50%, 3/01/40 |
2,350 | 2,779,110 | ||||||
State of California, GO, Refunding, Veterans, AMT, 5.05%, 12/01/36 |
555 | 567,549 | ||||||
Val Verde Unified School District California, Special Tax Bonds, Refunding, Junior Lien, 6.25%, 10/01/28 |
1,585 | 1,627,953 | ||||||
|
|
|||||||
34,907,020 | ||||||||
Colorado 1.2% |
||||||||
Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33 |
1,070 | 1,293,673 | ||||||
Park Creek Metropolitan District, Refunding RB, Limited Property Tax (AGM), 6.00%, 12/01/38 |
750 | 875,272 | ||||||
|
|
|||||||
2,168,945 | ||||||||
Connecticut 1.4% |
||||||||
Connecticut State Health & Educational Facilities Authority, Refunding RB: |
||||||||
Hartford Healthcare, Series A, 5.00%, 7/01/32 |
1,250 | 1,392,225 | ||||||
Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/36 |
550 | 606,700 | ||||||
Sacred Heart University, Series G, 5.38%, 7/01/31 |
400 | 444,356 | ||||||
|
|
|||||||
2,443,281 | ||||||||
Delaware 0.9% |
||||||||
County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Project, 6.00%, 10/01/40 |
1,200 | 1,353,948 | ||||||
Florida 1.7% |
||||||||
County of Lee Florida, Refunding ARB, Lee Airport, Series A, AMT (AGM), 5.00%, 10/01/28 |
2,000 | 2,233,620 | ||||||
Orange County Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%, 6/01/36 |
125 | 132,177 | ||||||
Stevens Plantation Community Development District, Special Assessment Bonds, Series A, 7.10%, 5/01/35 (d)(e) |
910 | 682,846 | ||||||
|
|
|||||||
3,048,643 | ||||||||
Hawaii 0.2% |
||||||||
Hawaii State Department of Budget & Finance Senior Living, Refunding RB, Special
Purpose, Kahala Nui, |
400 | 432,528 | ||||||
Idaho 1.2% |
||||||||
Idaho Health Facilities Authority, Refunding RB, Trinity Health Group, Series B, 6.25%, 12/01/33 |
1,750 | 2,097,445 | ||||||
Illinois 8.5% |
||||||||
Chicago Transit Authority, RB, Sales Tax Receipts Revenue, 5.25%, 12/01/40 |
665 | 760,181 | ||||||
City of Chicago, Refunding ARB, OHare International Airport, Passenger Facility Charge, Series B, AMT, |
4,000 | 4,080,560 |
See Notes to Financial Statements.
24 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Illinois (concluded) |
||||||||
Illinois Finance Authority, RB: |
||||||||
Navistar International, Recovery Zone, 6.50%, 10/15/40 |
$ | 560 | $ | 605,438 | ||||
Rush University Medical Center, Series C, 6.63%, 11/01/39 |
650 | 795,594 | ||||||
Illinois Finance Authority, Refunding RB: |
||||||||
Friendship Village Schaumburg, Series A, 5.63%, 2/15/37 |
210 | 211,117 | ||||||
OSF Healthcare System, 6.00%, 5/15/39 |
1,025 | 1,189,185 | ||||||
Roosevelt University Project, 6.50%, 4/01/44 |
1,000 | 1,136,730 | ||||||
Railsplitter Tobacco Settlement Authority, RB: |
||||||||
6.25%, 6/01/24 |
1,000 | 1,117,890 | ||||||
6.00%, 6/01/28 |
1,150 | 1,376,458 | ||||||
Village of Bolingbrook Illinois, GO, Refunding, Series B (NPFGC), 6.25%, 1/01/36 (b) |
16,065 | 3,936,728 | ||||||
|
|
|||||||
15,209,881 | ||||||||
Indiana 0.6% |
||||||||
Indiana Finance Authority, Refunding RB, Improvement, U.S. Steel Corp., 6.00%, 12/01/26 |
1,000 | 1,060,780 | ||||||
Iowa 0.9% |
||||||||
Iowa Higher Education Loan Authority, Refunding RB, Private College Facility: |
||||||||
5.75%, 9/01/30 |
500 | 566,310 | ||||||
6.00%, 9/01/39 |
1,000 | 1,124,680 | ||||||
|
|
|||||||
1,690,990 | ||||||||
Kansas 0.6% |
||||||||
Pratt County Public Building Commission, RB, 3.25%, 12/01/32 |
1,000 | 989,880 | ||||||
Louisiana 2.5% |
||||||||
Lafayette Public Trust Financing Authority, Refunding RB, Ragin Cajun Facilities Project (AGM), 3.75%, 10/01/32 |
520 | 534,264 | ||||||
Louisiana Local Government Environmental Facilities & Community Development Authority, RB: |
||||||||
Parish of Plaquemines Project (AGM), 4.00%, 9/01/42 |
480 | 487,214 | ||||||
Westlake Chemical Corp, Series A-1, 6.50%, 11/01/35 |
1,050 | 1,240,197 | ||||||
Louisiana Public Facilities Authority, RB: |
||||||||
Belle Chasse Educational Foundation Project, 6.50%, 5/01/31 |
400 | 466,688 | ||||||
Franciscan Missionaries of Our Lady Health System Project, Series B, 5.00%, 7/01/42 |
1,600 | 1,764,272 | ||||||
|
|
|||||||
4,492,635 | ||||||||
Maryland 2.0% |
||||||||
Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 9/01/25 |
250 | 278,648 | ||||||
Maryland Health & Higher Educational Facilities Authority, Refunding RB, Doctors Community Hospital, |
2,900 | 3,273,781 | ||||||
|
|
|||||||
3,552,429 | ||||||||
Michigan 3.0% |
||||||||
Board of Control of Michigan Technological University, Refunding RB, General, Series A, 4.00%, 10/01/30 |
1,290 | 1,357,635 | ||||||
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38 |
1,250 | 1,524,600 | ||||||
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39 |
1,950 | 2,484,417 | ||||||
|
|
|||||||
5,366,652 | ||||||||
Municipal Bonds | Par (000) |
Value | ||||||
Minnesota 3.2% |
||||||||
City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38 |
$ | 4,600 | $ | 5,667,522 | ||||
Mississippi 3.2% |
||||||||
Mississippi Development Bank, RB, Special Obligation: |
||||||||
Hinds Community College District, CAB (AGM), 5.00%, 4/01/36 |
845 | 943,713 | ||||||
Jackson County Limited Tax Note (AGC), 5.50%, 7/01/32 |
1,750 | 1,990,047 | ||||||
University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/36 |
2,100 | 2,384,907 | ||||||
Warren County Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, AMT, 5.38%, 12/01/35 |
400 | 441,208 | ||||||
|
|
|||||||
5,759,875 | ||||||||
Missouri 3.1% |
||||||||
Missouri State Development Finance Board, RB: |
||||||||
St. Joseph Sewage System Improvements, Series E, 5.25%, 5/01/31 |
580 | 623,674 | ||||||
Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41 |
900 | 978,435 | ||||||
Missouri State Development Finance Board, Refunding RB, Electric System Projects, Series F, 4.00%, 6/01/32 |
2,490 | 2,553,894 | ||||||
Missouri State Health & Educational Facilities Authority, RB: |
||||||||
A.T. Still University Health Sciences, 5.25%, 10/01/31 |
500 | 568,005 | ||||||
Heartland Regional Medical Center, 4.13%, 2/15/43 |
770 | 769,330 | ||||||
|
|
|||||||
5,493,338 | ||||||||
Montana 0.8% |
||||||||
Montana Facility Finance Authority, Refunding RB, Sisters of Leavenworth, Series A, 4.75%, 1/01/40 |
1,350 | 1,468,949 | ||||||
Multi-State 6.4% |
||||||||
Centerline Equity Issuer Trust, 7.20%, 11/15/14 (f)(g) |
10,500 | 11,442,270 | ||||||
Nebraska 3.8% |
||||||||
Central Plains Energy Project Nebraska, RB, Gas Project No. 3, Gas Project No. 3, 5.00%, 9/01/42 |
600 | 655,014 | ||||||
Omaha Nebraska Sanitation Sewer, RB, System: |
||||||||
3.25%, 11/15/37 |
2,400 | 2,294,688 | ||||||
4.25%, 11/15/38 |
1,440 | 1,541,678 | ||||||
4.00%, 11/15/42 |
2,200 | 2,310,198 | ||||||
|
|
|||||||
6,801,578 | ||||||||
Nevada 1.1% |
||||||||
City of Las Vegas Nevada, Special Assessment Bonds, Summerlin Area, 5.65%, 6/01/23 |
1,265 | 1,252,274 | ||||||
County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29 |
575 | 631,287 | ||||||
|
|
|||||||
1,883,561 | ||||||||
New Jersey 10.3% |
||||||||
Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (d)(e) |
915 | 68,094 | ||||||
New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT, 7.25%, 11/15/30 (h) |
3,000 | 3,011,910 | ||||||
New Jersey EDA, Refunding RB: |
||||||||
First Mortgage, Winchester, Series A, 5.80%, 11/01/31 |
1,500 | 1,535,745 | ||||||
Kapkowski Road Landfill Project, 6.50%, 4/01/28 |
7,500 | 8,983,275 |
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 25 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
New Jersey (concluded) |
||||||||
New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B: |
||||||||
7.13%, 12/01/23 |
$ | 630 | $ | 805,487 | ||||
7.50%, 12/01/32 |
800 | 1,000,344 | ||||||
New Jersey Health Care Facilities Financing Authority, Refunding RB Barnabas Health, Series A: |
||||||||
4.63%, 7/01/23 |
510 | 577,779 | ||||||
5.63%, 7/01/37 |
1,700 | 1,916,036 | ||||||
New Jersey State Housing & Mortgage Finance Agency, RB, Series AA, 6.50%, 10/01/38 |
485 | 507,349 | ||||||
|
|
|||||||
18,406,019 | ||||||||
New York 5.8% |
||||||||
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35 (d)(e) |
455 | 68,218 | ||||||
Hudson New York Yards Infrastructure Corp., RB, Series A (NPFGC), 4.50%, 2/15/47 |
750 | 782,242 | ||||||
New York City Industrial Development Agency, RB, American Airlines Inc., JFK International Airport, AMT, 7.75%, 8/01/31 (d)(e)(h) |
3,165 | 3,599,270 | ||||||
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49 |
800 | 951,368 | ||||||
New York State Dormitory Authority, RB, Rochester Institute of Technology, Series A, 6.00%, 7/01/18 (a) |
1,000 | 1,258,540 | ||||||
Niagara Area Development Corp., Refunding RB, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 |
400 | 419,020 | ||||||
Onondaga Civic Development Corp., Refunding RB, Saint Josephs Hospital Health Center Project: |
||||||||
4.50%, 7/01/32 |
1,110 | 1,093,028 | ||||||
5.00%, 7/01/42 |
540 | 553,743 | ||||||
Westchester County Healthcare Corp. New York, Refunding RB, Senior Lien, Series A, Remarketing, |
1,500 | 1,676,535 | ||||||
|
|
|||||||
10,401,964 | ||||||||
North Carolina 3.3% |
||||||||
Gaston County Industrial Facilities & Pollution Control Financing Authority North Carolina, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35 |
2,945 | 2,725,126 | ||||||
North Carolina Capital Facilities Finance Agency, Refunding RB, Duke Energy Carolinas, Series B, |
1,000 | 1,074,430 | ||||||
North Carolina Medical Care Commission, Refunding RB: |
||||||||
South Eastern Regional Medical Center, 3.25%, 6/01/27 |
300 | 301,425 | ||||||
South Eastern Regional Medical Center, 5.00%, 6/01/32 |
660 | 760,221 | ||||||
University Health System, Series D, 6.25%, 12/01/33 |
800 | 962,160 | ||||||
|
|
|||||||
5,823,362 | ||||||||
North Dakota 1.1% |
||||||||
City of Fargo North Dakota, Refunding RB, University Facilities Development Foundation Project, 3.00%, 12/01/30 |
400 | 388,208 | ||||||
City of Grand Forks North Dakota, Refunding RB, Healthcare Systems, 5.00%, 12/01/32 |
1,415 | 1,541,515 | ||||||
|
|
|||||||
1,929,723 | ||||||||
Ohio 0.9% |
||||||||
Kent State University, RB, General Receipts, Series A, 5.00%, 5/01/42 |
800 | 901,472 | ||||||
Municipal Bonds | Par (000) |
Value | ||||||
Ohio (concluded) |
||||||||
Miami University/Oxford Ohio, RB, General Receipts, 3.25%, 9/01/34 |
$ | 800 | $ | 770,184 | ||||
|
|
|||||||
1,671,656 | ||||||||
Oklahoma 1.3% |
||||||||
Oklahoma Municipal Power Authority, RB, Power Supply System, Series A, 4.00%, 1/01/38 |
2,250 | 2,312,663 | ||||||
Oregon 3.5% |
||||||||
City of Madras Oregon, GO, Refunding, 4.00%, 2/15/33 |
500 | 492,550 | ||||||
Clackamas County Housing Authority, RB, M/F Housing, Easton Ridge Apartments Project, Series A (i): |
||||||||
3.50%, 9/01/33 |
755 | 745,193 | ||||||
4.00%, 9/01/43 |
660 | 653,103 | ||||||
4.00%, 9/01/49 |
1,000 | 981,150 | ||||||
Oregon Health & Science University, RB, Series A, 5.75%, 7/01/39 |
750 | 886,552 | ||||||
Oregon Health & Science University, Refunding RB: |
||||||||
Series A, 3.00%, 7/01/24 |
1,000 | 1,016,150 | ||||||
Series E, 5.00%, 7/01/32 |
750 | 868,073 | ||||||
Oregon State Facilities Authority, Refunding RB, Limited College Project, Series A, 5.25%, 10/01/40 |
500 | 553,310 | ||||||
|
|
|||||||
6,196,081 | ||||||||
Pennsylvania 3.3% |
||||||||
County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27 |
1,695 | 1,880,602 | ||||||
Delaware River Port Authority, RB, Series D (AGM), 5.00%, 1/01/40 |
2,600 | 2,897,258 | ||||||
Pennsylvania Higher Educational Facilities Authority, RB, University of the Sciences Philadelphia, 5.00%, 11/01/42 |
1,000 | 1,102,300 | ||||||
|
|
|||||||
5,880,160 | ||||||||
Puerto Rico 1.3% |
||||||||
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37 |
1,000 | 1,080,610 | ||||||
Puerto Rico Sales Tax Financing Corp., RB, CAB, Series A, 5.79%, 8/01/35 (b) |
1,000 | 278,110 | ||||||
Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC), 5.60%, 8/01/41 (b) |
5,000 | 1,040,900 | ||||||
|
|
|||||||
2,399,620 | ||||||||
Rhode Island 1.2% |
||||||||
Rhode Island Health & Educational Building Corp., RB, Hospital Financing, LifeSpan Obligation, Series A (AGC), 7.00%, 5/15/39 |
1,000 | 1,204,150 | ||||||
State of Rhode Island, COP, Series C, School for the Deaf (AGC), 5.38%, 4/01/28 |
900 | 1,021,392 | ||||||
|
|
|||||||
2,225,542 | ||||||||
Tennessee 1.4% |
||||||||
Johnson City Health & Educational Facilities Board, RB, Mountain States Health, 5.00%, 8/15/42 |
800 | 874,368 | ||||||
Memphis-Shelby County Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A, 5.38%, 11/01/28 |
275 | 310,415 | ||||||
Shelby County Health Educational & Housing Facilities Board, RB, Methodist Le Bonheur Healthcare, 5.00%, 5/01/42 |
1,200 | 1,338,168 | ||||||
|
|
|||||||
2,522,951 | ||||||||
Texas 16.6% |
||||||||
Harris County Cultural Education Facilities Finance Corp., Refunding RB, Young Mens Christian Association of the Greater Houston Area, Series A, 5.00%, 6/01/38 |
345 | 370,468 |
See Notes to Financial Statements.
26 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) (Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | ||||||
Texas (concluded) |
||||||||
Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, |
||||||||
7.13%, 12/01/31 |
$ | 500 | $ | 638,610 | ||||
7.25%, 12/01/35 |
1,750 | 2,174,025 | ||||||
Harris County-Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 5.58%, 11/15/41 (b) |
11,690 | 2,409,894 | ||||||
Matagorda County Navigation District No. 1 Texas, Refunding RB, Central Power & Light Co. Project, Series A, 6.30%, 11/01/29 |
1,500 | 1,765,695 | ||||||
Midland County Fresh Water Supply District No. 1, Refunding RB: |
||||||||
CAB, City of Midland Project, Series A, 4.49%, 9/15/36 (b) |
4,900 | 1,724,261 | ||||||
CAB, City of Midland Project, Series A, 4.67%, 9/15/38 (b) |
10,760 | 3,306,440 | ||||||
City of Midland Project, 3.38%, 9/15/32 |
1,575 | 1,582,796 | ||||||
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, LBJ Infrastructure Group LLC, LBJ Freeway Managed Lanes Project, 7.00%, 6/30/40 |
2,000 | 2,426,380 | ||||||
Texas State Turnpike Authority, RB, CAB (AMBAC), 6.02%, 8/15/35 (b) |
50,000 | 13,201,500 | ||||||
|
|
|||||||
29,600,069 | ||||||||
Vermont 1.7% |
||||||||
University of Vermont & State Agricultural College, Refunding RB, Series A, 4.00%, 10/01/38 |
1,200 | 1,245,924 | ||||||
Vermont Educational & Health Buildings Financing Agency, RB, Hospital, Fletcher Allen Health, Series A, |
800 | 838,536 | ||||||
Vermont Educational & Health Buildings Financing Agency, Refunding RB, St. Michaels College, 5.00%, 10/01/42 |
900 | 988,380 | ||||||
|
|
|||||||
3,072,840 | ||||||||
Virginia 0.6% |
||||||||
Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 5.50%, 1/01/42 |
940 | 1,038,155 | ||||||
Washington 0.9% |
||||||||
Washington Healthcare Facilities Authority, RB, MultiCare Health System, Series B (AGC), 6.00%, 8/15/39 |
1,400 | 1,632,932 | ||||||
West Virginia 0.7% |
||||||||
West Virginia State University, RB, West Virginia University Projects, Series B, 5.00%, 10/01/36 |
1,100 | 1,279,080 | ||||||
Wyoming 0.8% |
||||||||
County of Sweetwater Wyoming, Refunding RB, Idaho Power Co. Project, 5.25%, 7/15/26 |
1,200 | 1,363,236 | ||||||
Total Municipal Bonds 135.2% | 241,189,951 | |||||||
Municipal Bonds Transferred to Tender Option Bond Trusts (j) |
||||||||
Colorado 2.3% |
||||||||
Colorado Health Facilities Authority, RB, Catholic Health, Series C-7 (AGM), 5.00%, 9/01/36 |
3,750 | 4,031,625 | ||||||
Massachusetts 0.9% |
||||||||
Massachusetts Water Resources Authority, Refunding RB, General, Series A, 5.00%, 8/01/41 |
1,450 | 1,636,847 | ||||||
Municipal Bonds Transferred to Tender Option Bond Trusts (j) |
Par (000) |
Value | ||||||
Michigan 2.3% |
||||||||
Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32 |
$ | 4,000 | $ | 4,131,240 | ||||
New Jersey 0.9% |
||||||||
New Jersey Transportation Trust Fund Authority, RB, Series B, 5.25%, 6/15/36 |
1,400 | 1,598,856 | ||||||
New York 12.5% |
||||||||
Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47 |
2,500 | 2,975,139 | ||||||
New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40 |
450 | 536,885 | ||||||
New York City Municipal Water Finance Authority, Refunding RB: |
||||||||
5.50%, 6/15/40 |
405 | 479,456 | ||||||
Second General Resolution, Series CC, 5.00%, 6/15/47 |
6,000 | 6,804,420 | ||||||
Water & Sewer System, Series A, 4.75%, 6/15/30 |
3,000 | 3,365,250 | ||||||
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority, 5.25%, 12/15/43 |
2,505 | 2,875,150 | ||||||
New York State Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/38 |
2,199 | 2,498,221 | ||||||
New York State Dormitory Authority, Refunding LRB, State University Dormitory Facilities, Series A, 5.00%, 7/01/42 |
760 | 874,311 | ||||||
New York State Thruway Authority, Refunding RB, Transportation, Series A, 5.00%, 3/15/31 |
1,560 | 1,833,515 | ||||||
|
|
|||||||
22,242,347 | ||||||||
Ohio 2.0% |
||||||||
County of Montgomery Ohio, RB, Catholic Health, Series C-1 (AGM), 5.00%, 10/01/41 |
1,260 | 1,344,269 | ||||||
Ohio Higher Educational Facility Commission, Refunding RB, Hospital, Cleveland Clinic Health, Series A, |
2,000 | 2,227,060 | ||||||
|
|
|||||||
3,571,329 | ||||||||
Total Municipal Bonds Transferred to Tender Option Bond Trusts 20.9% |
37,212,244 | |||||||
Total Long-Term Investments (Cost $253,103,120) 156.1% |
278,402,195 | |||||||
Short-Term Securities | Shares | |||||||
FFI Institutional Tax-Exempt Fund, 0.01% (k)(l) |
3,101,522 | 3,101,522 | ||||||
Total Short-Term Securities (Cost $3,101,522) 1.7% |
3,101,522 | |||||||
Total Investments (Cost$256,204,642) 157.8% | 281,503,717 | |||||||
Liabilities in Excess of Other Assets (1.4)% | (2,513,458 | ) | ||||||
Liability for TOB Trust Certificates, Including Interest |
|
(20,615,148 | ) | |||||
VMTP Shares, at Liquidation Value (44.8)% | (79,900,000 | ) | ||||||
|
|
|||||||
Net Assets Applicable to Common Shares 100.0% | $ | 178,475,111 | ||||||
|
|
See Notes to Financial Statements.
SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 | 27 |
Schedule of Investments (continued) |
BlackRock Municipal Bond Trust (BBK) |
Notes to Schedule of Investments |
(a) | US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. |
(b) | Represents a zero-coupon bond. Rate shown reflects the current yield as of report date. |
(c) | 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. |
(d) | Issuer filed for bankruptcy and/or is in default of principal and/or interest payments. |
(e) | Non-income producing security. |
(f) | 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. |
(g) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
(h) | Variable rate security. Rate shown is as of report date. |
(i) | When-issued security. Unsettled when-issued transactions were as follows: |
Counterparty | Value | Unrealized Appreciation |
||||||
Wedbush Morgan Securities |
$ | 2,379,446 | $ | 2,207 |
(j) | 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. |
(k) | Investments in issuers considered to be an affiliate of the Trust during the six months ended February 28, 2013, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
Affiliate | Shares Held at August 31, 2012 |
Net Activity |
Shares Held at February 28, 2013 |
Income | ||||||||||||
FFI Institutional Tax-Exempt Fund |
583,607 | 2,517,915 | 3,101,522 | $ | 340 |
(l) | Represents the current yield as of report date. |
| Financial futures contracts as of February 28, 2013 were as follows: |
Contracts Sold |
Issue | Exchange | Expiration | Notional Value |
Unrealized Depreciation |
|||||||||||
(22 | ) | 30-Year US Treasury Bond | Chicago Board of Trade | June 2013 | $ | 3,163,188 | $ | (1,409 | ) |
| Fair Value Measurements Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques 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 that the Trust has the ability to access |
| Level 2 other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) |
| Level 3 unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trusts own assumptions used in determining the fair value of investments and derivative financial instruments) |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trusts policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with 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 Note 1 of the Notes to Financial Statements.
See Notes to Financial Statements.
28 | SEMI-ANNUAL REPORT | FEBRUARY 28, 2013 |
Schedule of Investments (concluded) |
BlackRock Municipal Bond Trust (BBK) |
The following tables summarize the Trusts investments and derivative financial instruments categorized in the disclosure hierarchy as of February 28, 2013:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: |
||||||||||||||||||||
Investments: | ||||||||||||||||||||
Long-Term Investments1 |
| $ | 278,402,195 | | $ | 278,402,195 | ||||||||||||||
Short-Term Securities |
$ | 3,101,522 | | | 3,101,522 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 3,101,522 | $ | 278,402,195 | | $ | 281,503,717 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
1 See above Schedule of Investments for values in each state or political subdivision. |
| |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Derivative Financial Instruments2 | ||||||||||||||||||||
Liabilities: |
||||||||||||||||||||
Interest rate contracts |
$ | (1,409 | ) | | | $ | (1,409 | ) | ||||||||||||
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
| |||||||||||||||||||
Certain of the Trusts assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of February 28, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:
|
| |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Assets: |
|
|||||||||||||||||||
Investments: | ||||||||||||||||||||
Cash |
$ | 122,644 | | | $ | 122,644 | ||||||||||||||
Cash pledged as collateral for financial futures contracts |
| $ | 66,000 | | 66,000 | |||||||||||||||
Liabilities: |
||||||||||||||||||||
TOB trust certificates |
| (20,608,872 | ) | | (20,608,872 | ) | ||||||||||||||
VMTP Shares |
| (79,900,000 | ) | | (79,900,000 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
$ | 122,644 | $ | (100,442,872 | ) | | $ | (100,320,228 | ) | |||||||||||
|
|
|
|
|
|
|
|
There were no transfers between levels during the six months ended February 28, 2013.
See Notes to Financial Statements.