BLACKROCK MUNIHOLDINGS INVESTMENT QUALITY FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT

COMPANIES

Investment Company Act file number 811-08349

Name of Fund: BlackRock MuniHoldings Investment Quality Fund (MFL)

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniHoldings Investment Quality Fund, 55 East 52nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 08/31/2016

Date of reporting period: 02/29/2016


Item 1 – Report to Stockholders


FEBRUARY 29, 2016

 

 

 

 

 

SEMI-ANNUAL REPORT (UNAUDITED)

 

    LOGO

 

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  

The Markets in Review

     3   

Semi-Annual Report:

  

Municipal Market Overview

     4   

The Benefits and Risks of Leveraging

     5   

Derivative Financial Instruments

     5   

Trust Summaries

     6   
Financial Statements:   

Schedules of Investments

     20   

Statements of Assets and Liabilities

     62   

Statements of Operations

     64   

Statements of Changes in Net Assets

     66   

Statements of Cash Flows

     68   

Financial Highlights

     70   

Notes to Financial Statements

     77   

Officers and Trustees

     88   

Additional Information

     89   

 

 

 

                
2    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


The Markets in Review

 

Dear Shareholder,

Diverging monetary policies and shifting economic outlooks across regions have been the overarching themes driving financial markets over the past couple of years. With U.S. growth outpacing the global economic recovery while inflationary pressures remained low, investors spent most of 2015 anticipating the curtailment of the Federal Reserve’s near-zero interest rate policy, which ultimately came in December. In contrast, the European Central Bank and the Bank of Japan took measures to stimulate growth. In this environment, the U.S. dollar strengthened considerably, causing profit challenges for U.S. exporters and high levels of volatility in emerging market currencies and commodities.

Global market volatility increased in the latter part of 2015 and continued into early 2016. Oil prices collapsed in mid-2015 due to excess supply, and remained precarious while the world’s largest oil producers sought to negotiate a deal. Developing countries, many of which rely heavily on oil exports to sustain their economies, were particularly affected by falling oil prices. Meanwhile, China, one of the world’s largest oil consumers, exhibited further signs of slowing economic growth. This, combined with a depreciating yuan and declining confidence in the country’s policymakers, stoked worries about the potential impact of China’s weakness on the broader global economy.

Toward the end of the period, volatility abated as investors were relieved to find that conditions were not as bad as previously feared. While the recent selloff in risk assets has resulted in more reasonable valuations and some appealing entry points, investors continue to face mixed economic data and uncertainty relating to oil prices, corporate earnings and an unusual U.S. presidential election season.

For the 12-month period, higher quality assets such as U.S. Treasuries, municipal bonds and investment grade corporate bonds generated positive returns, while risk assets such as equities and high yield bonds broadly declined.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to move freely as market conditions change over time. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of February 29, 2016  
    6-month     12-month  

U.S. large cap equities
(S&P 500® Index)

    (0.92 )%      (6.19 )% 

U.S. small cap equities
(Russell 2000® Index)

    (10.16     (14.97

International equities
(MSCI Europe, Australasia,
Far East Index)

    (9.48     (15.18

Emerging market equities
(MSCI Emerging Markets Index)

    (8.85     (23.41

3-month Treasury bills
(BofA Merrill Lynch 3-Month
U.S. Treasury Bill Index)

    0.06        0.08   

U.S. Treasury securities
(BofA Merrill Lynch
10-Year U.S. Treasury
Index)

    5.01        4.11   

U.S. investment-grade bonds
(Barclays U.S.
Aggregate Bond Index)

    2.20        1.50   

Tax-exempt municipal
bonds (S&P Municipal
Bond Index)

    3.56        3.78   

U.S. high yield bonds
(Barclays U.S. Corporate
High Yield 2% Issuer
Capped Index)

    (5.57     (8.26
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 29, 2016      

Municipal Market Conditions

Municipal bonds generated positive performance for the period, due to a favorable supply-and-demand environment. Interest rates were volatile in 2015 (bond prices rise as rates fall) leading up to a long-awaited rate hike from the U.S. Federal Reserve (the “Fed”) that ultimately came in December. However, ongoing reassurance from the Fed that rates would be increased gradually and would likely remain low overall resulted in strong demand for fixed income investments, with municipal bonds being one of the strongest-performing sectors. Investors favored the relative stability of municipal bonds amid bouts of volatility resulting from uneven U.S. economic data, falling oil prices, global growth concerns, geopolitical risks, and widening central bank divergence — i.e., policy easing outside the United States while the Fed was posturing to commence policy tightening. During the 12 months ended February 29, 2016, municipal bond funds garnered net inflows of approximately $18 billion (based on data from the Investment Company Institute).

For the same 12-month period, total new issuance remained relatively strong from a historical perspective at $390 billion (considerably higher than the $365 billion issued in the prior 12-month period). A noteworthy portion of new supply during this period was attributable to refinancing activity (roughly 60%) as issuers took advantage of low interest rates and a flatter yield curve to reduce their borrowing costs.

S&P Municipal Bond Index

Total Returns as of February 29, 2016

  6 months:   3.56%

12 months:   3.78%

A Closer Look at Yields

 

LOGO

From February 28, 2015 to February 29, 2016, yields on AAA-rated 30-year municipal bonds decreased by 7 basis points (“bps”) from 2.87% to 2.80%, while 10-year rates fell by 26 bps from 2.02% to 1.76% and 5-year rates decreased 26 bps from 1.19% to 0.93% (as measured by Thomson Municipal Market Data). The municipal yield curve experienced significant flattening over the 12-month period with the spread between 2- and 30-year maturities flattening by 17 bps and the spread between 2- and 10-year maturities flattening by 36 bps.

During the same time period, on a relative basis, tax-exempt municipal bonds broadly outperformed U.S. Treasuries with the greatest outperformance experienced in longer-term issues. In absolute terms, the positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income and incremental yield in an environment where opportunities had become scarce. More broadly, municipal bonds benefited from the greater appeal of tax-exempt investing in light of the higher tax rates implemented in 2014. The asset class is known for its lower relative volatility and preservation of principal with an emphasis on income as tax rates rise.

Financial Conditions of Municipal Issuers

The majority of municipal credits remain strong, despite well-publicized distress among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — have exhibited markedly improved credit fundamentals during the slow national recovery. However, several states with the largest unfunded pension liabilities have seen their bond prices decline noticeably and remain vulnerable to additional price deterioration. On the local level, Chicago’s credit quality downgrade is an outlier relative to other cities due to its larger pension liability and inadequate funding remedies. BlackRock maintains the view that municipal bond defaults will remain minimal and in the periphery while the overall market is fundamentally sound. We continue to advocate careful credit research and believe that a thoughtful approach to structure and security selection remains imperative amid uncertainty in a modestly improving economic environment.

The opinions expressed are those of BlackRock as of February 29, 2016, and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.

The Standard & Poor’s Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the alternative minimum tax. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

 

                
4    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


The Benefits and Risks of Leveraging     

 

 

The Trusts may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Trust on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Trusts (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trusts’ shareholders 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.

To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Trust’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Trust with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Trust’s financing cost of leverage is significantly lower than the income earned on a Trust’s longer-term investments acquired from leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.

However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed the Trusts’ return on assets purchased with leverage proceeds, income to shareholders is lower than if the Trusts had not used leverage. 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 value of the Trusts’ obligations under their respective leverage arrangements generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAVs positively or negatively. Changes in the future direction of interest rates are very

difficult to predict accurately, and there is no assurance that a Trust’s intended leveraging strategy will be successful.

Leverage also generally causes greater changes in the Trusts’ NAVs, market prices and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Trust’s Common Shares than if the Trusts were not leveraged. In addition, the Trusts 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 the Trusts to incur losses. The use of leverage may limit a Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. The Trusts 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. Moreover, to the extent the calculation of the Trusts’ investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Trusts’ investment advisor will be higher than if the Trusts did not use leverage.

To obtain leverage, each Trust has issued Variable Rate Demand Preferred Shares (“VRDP Shares”) or Variable Rate Muni Term Preferred Shares (“VMTP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.

Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Trust is permitted to issue debt up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Trust may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Trust may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.

If a Trust segregates or designates on its books and records cash or liquid assets having a value not less than the value of a Trust’s obligations under the TOB Trust (including accrued interest), a TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements under the 1940 Act.

 

 

Derivative Financial Instruments     

 

The Trusts may invest in various derivative financial instruments. 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 manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage. Derivative financial instruments also 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 advisor’s 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 limit the amount of appreciation a Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    5


Trust Summary as of February 29, 2016    BlackRock Municipal Bond Investment Trust

 

 

Trust Overview

BlackRock Municipal Bond Investment Trust’s (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 at least 80% of its assets in municipal bonds the interest of which is exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Florida intangible personal property 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. Due to the repeal of the Florida intangible personal property tax, in September 2008, the Board gave approval to permit the Trust the flexibility to invest in municipal obligations regardless of geographic location since municipal obligations issued by any state or municipality that provides income exempt from regular federal income tax would now satisfy the foregoing objective and policy.

On December 18, 2015, the Boards of the Trust and BlackRock Municipal Income Investment Trust (“BBF’’) approved the reorganization of the Trust with and into BBF, with BBF continuing as the surviving fund after the reorganization. At a special shareholder meeting on March 21, 2016, the shareholders of the Trust approved the reorganization of the Trust with and into BBF, which is expected to be completed in May 2016.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Trust Information

Symbol on New York Stock Exchange (“NYSE”)

   BIE

Initial Offering Date

   April 30, 2002

Yield on Closing Market Price as of February 29, 2016 ($15.54)1

   5.87%

Tax Equivalent Yield2

   10.37%

Current Monthly Distribution per Common Share3

   $0.076

Current Annualized Distribution per Common Share3

   $0.912

Economic Leverage as of February 29, 20164

   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 VRDP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOB Trusts, 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.

 

Performance

Returns for the six months ended February 29, 2016 were as follows:

    Returns Based On  
     Market Price     NAV  

BIE1,2

    13.63     4.46

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    11.72     5.87

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2   

The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

 

  3   

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

Tax-exempt bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall.) In addition, municipal bonds benefited from a general “flight to quality” caused by elevated volatility in the higher-risk segments of the financial markets.

 

 

The Trust’s position in A-rated bonds, which outperformed higher-rated bonds amid investors’ continued search for yield, made a positive contribution to its six-month results. This was especially true with regard to the Trust’s position in longer-dated, A-rated bonds in the transportation, utilities and tax-backed local sectors.

 

 

At a time in which yields declined, the Trust’s longer-duration holdings contributed positively to its performance. (Duration is a measure of interest rate sensitivity.) Income in the form of coupon payments made a meaningful contribution to the Trust’s total return. Leverage also amplifies the effect of interest rate movements, which was a positive for Trust performance during the past six months.

 

 

The Trust’s positions in shorter-dated holdings, such as pre-refunded issues and bonds with very short call dates, detracted from performance. The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in bond prices.

 

                
6    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


     BlackRock Municipal Bond Investment Trust

 

Market Price and Net Asset Value Per Share Summary      
      2/29/16      8/31/15      Change      High      Low  

Market Price

   $ 15.54       $ 14.10         10.21    $ 15.70       $ 14.07   

Net Asset Value

   $ 16.16       $ 15.95         1.32    $ 16.31       $ 15.76   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*

 

Sector Allocation              
     2/29/16     8/31/15  

Transportation

    26     28

County/City/Special District/School District

    23        24   

Utilities

    16        15   

Health

    12        12   

Education

    11        8   

State

    7        8   

Tobacco

    3        3   

Corporate

    1        1   

Housing

    1        1   

 

Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    2

2017

    1   

2018

    16   

2019

    30   

2020

    12   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Credit Quality Allocation1              
     2/29/16     8/31/15  

AAA/Aaa

    6     7

AA/Aa

    59        60   

A

    25        24   

BBB/Baa

    6        6   

BB/Ba

    1        1   

B

    2      1   

N/R

    3        1   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) or Moody’s Investors Service (“Moody’s”) if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

  2   

Represents less than 1% of total investments.

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    7


Trust Summary as of February 29, 2016    BlackRock Municipal Bond Trust

 

 

Trust Overview

BlackRock Municipal Bond Trust’s (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 Trust’s investment objective will be achieved.

 

Trust Information

Symbol on NYSE

   BBK

Initial Offering Date

   April 30, 2002

Yield on Closing Market Price as of February 29, 2016 ($16.78)1

   5.36%

Tax Equivalent Yield2

   9.47%

Current Monthly Distribution per Common Share3

   $0.075

Current Annualized Distribution per Common Share3

   $0.900

Economic Leverage as of February 29, 20164

   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 TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, 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.

 

Performance

Returns for the six months ended February 29, 2016 were as follows:

 

    Returns Based On  
     Market Price     NAV  

BBK1,2

    13.39     5.85

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    11.72     5.87

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

 

  3   

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

Tax-exempt bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall.) In addition, municipal bonds benefited from a general “flight to quality” caused by elevated volatility in the higher-risk segments of the financial markets.

 

 

The Trust’s longer duration bonds generally delivered the best performance during the past six months, reflecting the overall decline in yields. (Duration is a measure of interest rate sensitivity.) On a sector basis, the Trust’s positions in the education, health care, transportation and utilities segments were key contributors to performance. The Trust’s allocation to higher-yielding bonds also contributed positively, reflecting the fact that the middle-to-lower investment-grade quality categories of A and BBB generated the strong returns.

 

 

Income in the form of coupon payments made a meaningful contribution to the Trust’s total return. Leverage also amplifies the effect of interest rate movements, which was a positive for Trust performance during the past six months.

 

 

The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in bond prices.

 

                
8    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


     BlackRock Municipal Bond Trust

 

 

Market Price and Net Asset Value Per Share Summary  
      2/29/16      8/31/15      Change      High      Low  

Market Price

     $16.78         $15.23         10.18%         $16.85         $15.21   

Net Asset Value

     $16.96         $16.49         2.85%         $17.15         $16.28   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*

 

Sector Allocation              
     2/29/16     8/31/15  

Health

    20     23

County/City/Special District/School District

    17        16   

Transportation

    15        13   

Education

    15        16   

Utilities

    13        13   

State

    9        9   

Corporate

    7        6   

Tobacco

    3        3   

Housing

    1        1   

 

Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

      1

2017

      1   

2018

      3   

2019

      2   

2020

      2   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

Credit Quality Allocation1              
     2/29/16     8/31/15  

AAA/Aaa

    5     6

AA/Aa

    45        43   

A

    25        27   

BBB/Baa

    12        11   

BB/Ba

    4        6   

B

    1          

N/R2

    8        7   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of February 29, 2016 and August 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 3% and 2%, respectively, of the Trust’s total investments.

 

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    9


Trust Summary as of February 29, 2016    BlackRock Municipal Income Investment Quality Trust

 

 

Trust Overview

BlackRock Municipal Income Investment Quality Trust’s (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. Due to the repeal of the Florida intangible personal property tax, in September 2008, the Board gave approval to permit the Trust the flexibility to invest in municipal obligations regardless of geographic location since municipal obligations issued by any state or municipality that provides income exempt from regular federal income tax would now satisfy the foregoing objective and policy.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Trust Information

Symbol on NYSE

   BAF

Initial Offering Date

   October 31, 2002

Yield on Closing Market Price as of February 29, 2016 ($15.21)1

   5.40%

Tax Equivalent Yield2

   9.54%

Current Monthly Distribution per Common Share3

   $0.0685

Current Annualized Distribution per Common Share3

   $0.8220

Economic Leverage as of February 29, 20164

   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 TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, 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.

 

Performance

Returns for the six months ended February 29, 2016 were as follows:

 

    Returns Based On  
     Market Price     NAV  

BAF1,2

    12.59     5.30

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    11.72     5.87

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

 

  3   

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

Tax-exempt bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall.) In addition, municipal bonds benefited from a general “flight to quality” caused by elevated volatility in the higher-risk segments of the financial markets.

 

 

The Trust’s position in A-rated bonds, which outperformed higher-rated bonds amid investors’ continued search for yield, made a positive contribution to its six-month results. This was especially true with regard to the Trust’s position in longer-dated, A-rated bonds in the transportation, utilities and tax-backed local sectors.

 

 

At a time in which yields declined, the Trust’s longer-duration holdings contributed positively to its performance. (Duration is a measure of interest rate sensitivity.) Income in the form of coupon payments made a meaningful contribution to the Trust’s total return. Leverage also amplifies the effect of interest rate movements, which was a positive for trust performance during the past six months.

 

 

The Trust’s positions in shorter-dated holdings, such as pre-refunded issues and bonds with very short call dates, detracted from performance. The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in bond prices.

 

                
10    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


     BlackRock Municipal Income Investment Quality Trust

 

 

Market Price and Net Asset Value Per Share Summary                                        
      2/29/16      8/31/15      Change      High      Low  

Market Price

     $15.21         $13.89         9.50%         $15.23         $13.81   

Net Asset Value

     $16.18         $15.80         2.41%         $16.35         $15.63   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*
Sector Allocation              
     2/29/16     8/31/15  

Transportation

    31     28

County/City/Special District/School District

    28        31   

Utilities

    14        17   

Health

    12        13   

State

    8        6   

Education

    4        3   

Tobacco

    1        1   

Corporate

    1          

Housing

    1        1   

 

Credit Quality Allocation1              
     2/29/16     8/31/15  

AAA/Aaa

    3       3

AA/Aa

    74        74   

A

    20        20   

BBB/Baa

    3          3   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
Call/Maturity Schedule2       

Calendar Year Ended December 31,

 

2016

      

2017

      

2018

    14

2019

    18   

2020

    3   

 

  2   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    11


Trust Summary as of February 29, 2016    BlackRock Municipal Income Quality Trust

 

 

Trust Overview

BlackRock Municipal Income Quality Trust’s (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 Trust’s investment objective will be achieved.

 

Trust Information

Symbol on NYSE

  BYM

Initial Offering Date

  October 31, 2002

Yield on Closing Market Price as of February 29, 2016 ($14.85)1

  5.78%

Tax Equivalent Yield2

  10.21%

Current Monthly Distribution per Common Share3

  $0.0715

Current Annualized Distribution per Common Share3

  $0.8580

Economic Leverage as of February 29, 20164

  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, 2016, was decreased to $0.0685 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 TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, 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.

 

Performance

Returns for the six months ended February 29, 2016 were as follows:

 

    Returns Based On  
     Market Price     NAV  

BYM1,2

    11.90     5.99

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    11.72     5.87

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

 

  3   

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

Tax-exempt bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall.) In addition, municipal bonds benefited from a general “flight to quality” caused by elevated volatility in the higher-risk segments of the financial markets.

 

 

At a time in which yields declined, the Trust’s longer-duration exposure contributed positively to performance. (Duration is a measure of interest rate sensitivity.) Income in the form of coupon payments made a meaningful contribution to the Trust’s total return. Leverage amplifies the effect of interest rate movements, which was a positive for Trust performance during the past six months. The Trust also benefited from its exposure to the tax-backed local sector.

 

 

The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in bond prices.

 

                
12    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


     BlackRock Municipal Income Quality Trust

 

 

Market Price and Net Asset Value Per Share Summary                                   
     2/29/16     8/31/15     Change     High     Low  

Market Price

    $14.85        $13.67        8.63   $ 15.06      $ 13.56   

Net Asset Value

    $15.65        $15.21        2.89   $ 15.83      $ 15.05   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*
Sector Allocation              
     2/29/16     8/31/15  

County/City/Special District/School District

    29     27

Transportation

    27        25   

Utilities

    12        11   

Health

    10        13   

State

    10        11   

Education

    7        7   

Tobacco

    3        3   

Corporate

    2        3   
Credit Quality Allocation1              
     2/29/16     8/31/15  

AAA/Aaa

    11     15

AA/Aa

    54        57   

A

    26        21   

BBB/Baa

    6        6   

N/R

    3        1   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
Call/Maturity Schedule2       

Calendar Year Ended December 31,

 

2016

    5

2017

    7   

2018

    16   

2019

    8   

2020

    8   

 

  2   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    13


Trust Summary as of February 29, 2016    BlackRock Municipal Income Trust II

 

 

Trust Overview

BlackRock Municipal Income Trust II’s (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 Trust’s investment objective will be achieved.

 

Trust Information

Symbol on NYSE MKT

   BLE

Initial Offering Date

   July 30, 2002

Yield on Closing Market Price as of February 29, 2016 ($15.57)1

   6.09%

Tax Equivalent Yield2

   10.76%

Current Monthly Distribution per Common Share3

   $0.079

Current Annualized Distribution per Common Share3

   $0.948

Economic Leverage as of February 29, 20164

   38%

 

  1   

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

  2   

Tax equivalent yield assumes the maximum 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 TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, 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.

 

Performance

Returns for the six months ended February 29, 2016 were as follows:

 

    Returns Based On  
     Market Price     NAV  

BLE1,2

    13.28     5.46

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    11.72     5.87

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2   

The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

 

  3   

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

Tax-exempt bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall.) In addition, municipal bonds benefited from a general “flight to quality” caused by elevated volatility in the higher-risk segments of the financial markets.

 

 

Income in the form of coupon payments made a meaningful contribution to the Trust’s total return. Leverage also amplifies the effect of interest rate movements, which was a positive for Trust performance during the past six months.

 

 

Long-dated securities with maturities 20 years and above, which comprised the largest proportion of the Trust’s holdings, aided Trust performance given the decline in longer-term yields. Additionally, the Trust’s long duration positioning contributed positively to its performance. (Duration is a measure of interest-rate sensitivity.)

 

 

The Trust’s positions in securities rated BBB, A and AA generated strong returns, reflecting an environment in which lower-rated issues generally outperformed. The Trust’s large allocations to the transportation and utilities sectors also had a positive impact on performance.

 

 

The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in bond prices.

 

                
14    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


     BlackRock Municipal Income Trust II

 

 

Market Price and Net Asset Value Per Share Summary                                        
      2/29/16      8/31/15      Change      High      Low  

Market Price

     $15.57         $14.18         9.80%         $15.74         $14.18   

Net Asset Value

     $15.59         $15.25         2.23%         $15.75         $15.07   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*

 

Sector Allocation              
     2/29/16     8/31/15  

Transportation

    21     22

Utilities

    17        16   

County/City/Special District/School District

    13        15   

Health

    12        12   

Corporate

    10        10   

State

    10        9   

Education

    10        9   

Tobacco

    6        5   

Housing

    1        2   

 

Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

      9

2017

    3   

2018

    5   

2019

    17   

2020

    14   

 

  3  

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

Credit Quality Allocation1              
     2/29/16     8/31/15  

AAA/Aaa

    6     7

AA/Aa

    41        40   

A

    22        23   

BBB/Baa

    15        15   

BB/Ba

    5        5   

B

    1        1   

N/R2

    10        9   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of February 29, 2016 and August 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade represents 3% and 2%, respectively, of the Trust’s total investments.

 

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    15


Trust Summary as of February 29, 2016    BlackRock MuniHoldings Investment Quality Fund

 

 

Trust Overview

BlackRock MuniHoldings Investment Quality Fund’s (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. Due to the repeal of the Florida intangible personal property tax, in September 2008, the Board gave approval to permit the Trust the flexibility to invest in municipal obligations regardless of geographic location since municipal obligations issued by any state or municipality that provides income exempt from regular federal income tax would now satisfy the foregoing objective and policy.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Trust Information

Symbol on NYSE

   MFL

Initial Offering Date

   September 26, 1997

Yield on Closing Market Price as of February 29, 2016 ($15.03)1

   5.71%

Tax Equivalent Yield2

   10.09%

Current Monthly Distribution per Common Share3

   $0.0715

Current Annualized Distribution per Common Share3

   $0.8580

Economic Leverage as of February 29, 20164

   38%

 

  1   

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

  2   

Tax equivalent yield assumes the maximum 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 TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOB Trusts, 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.

 

Performance

Returns for the six months ended February 29, 2016 were as follows:

 

    Returns Based On  
     Market Price        NAV  

MFL1,2

    10.08        5.28

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    11.72        5.87

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV.

 

  3  

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

Tax-exempt bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall.) In addition, municipal bonds benefited from a general “flight to quality” caused by elevated volatility in the higher-risk segments of the financial markets.

 

 

The Trust’s position in A-rated bonds, which outperformed higher-rated bonds amid investors’ continued search for yield, made a positive contribution to its six-month results. This was especially true with regard to the Trust’s position in longer-dated, A-rated bonds in the transportation, utilities and tax-backed local sectors.

 

 

At a time in which yields declined, the Trust’s longer-duration holdings contributed positively to its performance. (Duration is a measure of interest rate sensitivity.) Income in the form of coupon payments made a meaningful contribution to the Trust’s total return. Leverage also amplifies the effect of interest rate movements, which was a positive for Trust performance during the past six months.

 

 

The Trust’s positions in shorter-dated holdings, such as pre-refunded issues and bonds with very short call dates, detracted from performance. The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in bond prices.

 

                
16    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


     BlackRock MuniHoldings Investment Quality Fund

 

Market Price and Net Asset Value Per Share Summary      
      2/29/16      8/31/15      Change      High      Low  

Market Price

     $15.03         $14.06         6.90%         $15.08         $13.85   

Net Asset Value

     $15.52         $15.18         2.24%         $15.69         $15.02   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*
Sector Allocation    
     2/29/16     8/31/15  

Transportation

    40     36

Utilities

    17        17   

County/City/Special District/School District

    14        18   

State

    11        9   

Health

    10        10   

Education

    6        5   

Tobacco

    1        1   

Housing

    1        2   

Corporate

    1       2   

 

  1   

Represents less than 1% of total investments.

Credit Quality Allocation2              
     2/29/16     8/31/15  

AAA/Aaa

    5     5

AA/Aa

    61        62   

A

    31        29   

BBB/Baa

    2        4   

N/R

    1          

 

  2   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    1

2017

    3   

2018

    14   

2019

    25   

2020

    4   
  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    17


Trust Summary as of February 29, 2016    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). Under normal market conditions, the Trust primarily invests in long term municipal obligations rated investment grade at the time of investment and in long term municipal obligations with maturities of more than ten years at the time of investment. The Trust may invest up to 20% of its total assets in securities rated below investment grade or deemed equivalent at the time of purchase. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

 

Trust Information      

Symbol on NYSE MKT

   MVF

Initial Offering Date

   September 29, 1988

Yield on Closing Market Price as of February 29, 2016 ($10.60)1

   6.06%

Tax Equivalent Yield2

   10.71%

Current Monthly Distribution per Common Share3

   $0.0535

Current Annualized Distribution per Common Share3

   $0.6420

Economic Leverage as of February 29, 20164

   38%

 

  1  

Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.

 

  2  

Tax equivalent yield assumes the maximum 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 TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, 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.

 

Performance

Returns for the six months ended February 29, 2016 were as follows:

 

    Returns Based On  
     Market Price     NAV  

MVF1,2

    13.40     4.68

Lipper General & Insured Municipal Debt Funds (Leveraged)3

    11.72     5.87

 

  1   

All returns reflect reinvestment of dividends and/or distributions.

 

  2  

The Trust moved from a discount to NAV to a premium during the period, which accounts for the difference between performance based on price and performance based on NAV.

 

  3   

Average return.

The following discussion relates to the Trust’s absolute performance based on NAV:

 

 

Tax-exempt bonds performed well during the six-month period, as the combination of falling U.S. Treasury yields and improving municipal finances created healthy buying interest in the asset class. (Prices rise as yields fall.) In addition, municipal bonds benefited from a general “flight to quality” caused by elevated volatility in the higher-risk segments of the financial markets.

 

 

At a time in which yields declined, the Trust’s duration exposure contributed positively to performance. (Duration is a measure of interest rate sensitivity.) The Trust’s positions in long-maturity bonds, which outperformed short-term issues, also added value. The Trust’s exposure to zero-coupon bonds, which delivered better returns than current-coupon bonds, further aided returns. Income in the form of coupon payments made a meaningful contribution to the Trust’s total return. Leverage also amplifies the effect of interest rate movements, which was a positive for Trust performance during the past six months. On a sector basis, the Trust’s positions in the health care and transportation segments were key positive contributors to performance.

 

 

The Trust’s use of U.S. Treasury futures contracts to manage interest rate risk had a slightly negative impact on performance due to the overall strength in bond prices.

 

                
18    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


     BlackRock MuniVest Fund, Inc.

 

Market Price and Net Asset Value Per Share Summary                                        
      2/29/16      8/31/15      Change      High      Low  

Market Price

   $ 10.60       $ 9.65         9.84%       $ 10.63       $ 9.44   

Net Asset Value

   $ 10.18       $ 10.04         1.39%       $ 10.27       $ 9.94   

 

Market Price and Net Asset Value History For the Past Five Years

 

LOGO

 

Overview of the Trust’s Total Investments*
Sector Allocation              
     2/29/16     8/31/15  

Transportation

    23     22

Health

    23        24   

County/City/Special District/School District

    11        10   

Education

    10        11   

Utilities

    10        10   

Corporate

    10        11   

Housing

    5        4   

State

    4        4   

Tobacco

    4        4   
Credit Quality Allocation1              
     2/29/16     8/31/15  

AAA/Aaa

    9     9

AA/Aa

    46        46   

A

    21        23   

BBB/Baa

    14        13   

BB/Ba

    3        3   

B

    1        1   

N/R2

    6        5   

 

  1   

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P’s or Moody’s if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings

 

  2   

The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment advisor has deemed certain of these unrated securities as investment grade quality. As of February 29, 2016 and August 31, 2015, the market value of unrated securities deemed by the investment advisor to be investment grade representing 3% and 2%, respectively, of the Trust’s total investments.

 
Call/Maturity Schedule3       

Calendar Year Ended December 31,

 

2016

    7

2017

    7   

2018

    15   

2019

    20   

2020

    16   

 

  3   

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

 

 

  *   Excludes short-term securities.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    19


Schedule of Investments February 29, 2016 (Unaudited)

  

BlackRock Municipal Bond Investment Trust (BIE)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Alabama — 0.3%

  

 

City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35

   $ 145      $ 161,049   

Alaska — 0.3%

  

 

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 5.00%, 6/01/46

     180        152,991   

California — 13.8%

  

 

California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38

     700        777,406   

California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39

     120        137,308   

City of Los Angeles California Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38

     760        832,534   

Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33

     410        510,922   

Riverside County Public Financing Authority, RB, Capital Facilities Project, 5.25%, 11/01/40

     1,000        1,182,110   

San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A,
5.38%, 2/01/19 (a)

     850        961,954   

State of California, GO, Various Purposes, 6.00%, 3/01/33

     685        812,917   

State of California Public Works Board, LRB, Various Capital Projects, Series I, 5.50%, 11/01/31

     500        616,680   

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 9/01/33

     210        251,042   

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 8/01/40

     160        192,342   

University of California, Refunding RB, The Regents of Medical Center, Series J, 5.25%, 5/15/38

     1,000        1,186,060   
    

 

 

 
               7,461,275   

Colorado — 2.9%

  

 

City & County of Denver Colorado Airport System, ARB, Sub-System, Series B, 5.25%, 11/15/32

     750        893,887   

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34

     580        653,051   
    

 

 

 
               1,546,938   

Florida — 8.7%

  

 

City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33

     105        125,727   

City of Miami Beach Florida Parking Revenue, RB, 5.00%, 9/01/45

     455        517,672   

County of Miami-Dade Florida, RB, Seaport, Series A, 6.00%, 10/01/38

     1,875        2,279,737   

County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, University of Miami, Series A, 5.00%, 4/01/45

     1,255        1,418,163   
Municipal Bonds    Par  
(000)
    Value  

Florida (continued)

    

Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/32

   $ 305      $ 361,663   
    

 

 

 
               4,702,962   

Georgia — 1.2%

  

 

Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23

     555        623,953   

Illinois — 16.8%

  

 

City of Chicago Illinois, GARB, O’Hare International Airport, 3rd Lien, Series C, 6.50%, 1/01/41

     1,590        1,914,312   

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts:

    

5.25%, 12/01/36

     500        548,505   

5.25%, 12/01/40

     750        817,028   

County of Cook Illinois Community College District No. 508, GO, City College of Chicago:

    

5.50%, 12/01/38

     250        288,275   

5.25%, 12/01/43

     1,000        1,122,240   

Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 8/15/41

     750        884,895   

Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39

     1,000        1,158,190   

Metropolitan Pier & Exposition Authority, Hyatt Regency McCormick Place, Refunding RB, Series B-2, 5.25%, 6/15/50

     250        261,903   

Railsplitter Tobacco Settlement Authority, RB:

    

5.50%, 6/01/23

     365        430,455   

6.00%, 6/01/28

     105        125,589   

State of Illinois, GO:

    

5.25%, 2/01/31

     255        277,172   

5.25%, 2/01/32

     500        540,300   

5.50%, 7/01/33

     500        547,930   

5.50%, 7/01/38

     110        119,161   
    

 

 

 
               9,035,955   

Indiana — 2.5%

  

 

Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/19 (a)

     1,190        1,362,609   

Kansas — 1.9%

  

 

Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C, 5.50%, 11/15/29

     900        1,033,326   

Kentucky — 1.7%

  

 

County of Louisville & Jefferson Kentucky Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34

     800        930,528   

Louisiana — 1.5%

  

 

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

     380        444,623   

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 5/15/29

     315        345,945   
    

 

 

 
               790,568   
 
Portfolio Abbreviations

 

AGC    Assured Guarantee Corp.      EDA    Economic Development Authority    ISD    Independent School District
AGM    Assured Guaranty Municipal Corp.      EDC    Economic Development Corp.    LRB    Lease Revenue Bonds
AMBAC    American Municipal Bond Assurance Corp.      ERB    Education Revenue Bonds    M/F    Multi-Family
AMT    Alternative Minimum Tax (subject to)      GARB    General Airport Revenue Bonds    NPFGC    National Public Finance Guarantee Corp.
ARB    Airport Revenue Bonds      GO    General Obligation Bonds    PILOT    Payment in Lieu of Taxes
BARB    Building Aid Revenue Bonds      HFA    Housing Finance Agency    PSF-GTD    Permanent School Fund Guaranteed
BHAC    Berkshire Hathaway Assurance Corp.      HRB    Housing Revenue Bonds    RB    Revenue Bonds
CAB    Capital Appreciation Bonds      IDA    Industrial Development Authority    S/F    Single-Family
COP    Certificates of Participation      IDB    Industrial Development Board      

 

                
20    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   

See Notes to Financial Statements.


Schedule of Investments (continued)

  

BlackRock Municipal Bond Investment Trust (BIE)

 

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      $ 807,577   

Massachusetts — 2.2%

  

 

Massachusetts Development Finance Agency, Refunding RB, Trustees of Deerfield Academy, 5.00%, 10/01/40

     375        430,965   

Massachusetts Port Authority, Refunding RB, Series A, 5.00%, 7/01/45

     360        418,252   

Metropolitan Boston Transit Parking Corp., Refunding RB, 5.25%, 7/01/36

     300        351,204   
    

 

 

 
               1,200,421   

Michigan — 3.3%

  

 

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 7/01/41

     485        572,829   

Michigan State Building Authority, Refunding RB, Facilities Program Series:

    

6.00%, 10/15/18 (a)

     305        346,779   

6.00%, 10/15/38

     195        218,917   

Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, Series V, 8.25%, 9/01/18 (a)

     530        629,062   
    

 

 

 
               1,767,587   

Mississippi — 2.5%

  

 

Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40

     1,000        1,339,350   

Nevada — 4.3%

  

 

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34

     1,000        1,156,520   

County of Clark Nevada Airport System, ARB, Series B, 5.75%, 7/01/42

     1,000        1,158,760   
    

 

 

 
               2,315,280   

New Jersey — 5.7%

  

 

New Jersey EDA, Refunding RB, School Facilities Construction, Series AA, 5.50%, 12/15/29

     750        818,265   

New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29

     610        647,588   

New Jersey Transportation Trust Fund Authority, RB, Transportation System:

    

Series A, 5.88%, 12/15/38

     695        757,960   

Series AA, 5.50%, 6/15/39

     760        832,968   
    

 

 

 
               3,056,781   

New York — 4.5%

  

 

County of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (b)

     300        312,891   

Hudson Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47

     620        720,570   

Metropolitan Transportation Authority, RB, Series A, 5.25%, 11/15/38

     500        593,325   

Metropolitan Transportation Authority, Refunding RB, Series A-1, 5.25%, 11/15/56

     220        255,623   

New York Liberty Development Corp., Refunding RB, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

     500        562,785   
    

 

 

 
               2,445,194   

Ohio — 2.8%

  

 

County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38

     840        939,876   

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 2/15/31

     500        596,145   
    

 

 

 
               1,536,021   
Municipal Bonds    Par  
(000)
    Value  

Pennsylvania — 7.3%

  

 

Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39

   $ 300      $ 341,478   

Pennsylvania Turnpike Commission, RB:

    

Sub-Series A, 6.00%, 12/01/16 (a)

     1,500        1,563,645   

Sub-Series A, 5.63%, 12/01/31

     750        876,060   

Sub-Series C (AGC), 6.25%, 6/01/18 (a)

     500        561,645   

Township of Bristol Pennsylvania School District, GO, 5.25%, 6/01/37

     530        609,447   
    

 

 

 
               3,952,275   

Puerto Rico — 0.2%

  

 

Children’s Trust Fund Tobacco Settlement, Refunding RB, Asset-Backed, 5.63%, 5/15/43

     95        95,241   

Rhode Island — 2.1%

  

 

Tobacco Settlement Financing Corp., Refunding RB, Series B:

    

4.50%, 6/01/45

     990        999,653   

5.00%, 6/01/50

     125        129,106   
    

 

 

 
               1,128,759   

South Carolina — 3.5%

  

 

County of Charleston South Carolina, RB, Special Source, 5.25%, 12/01/38

     635        750,519   

State of South Carolina Public Service Authority, Refunding RB:

    

Series C, 5.00%, 12/01/46

     500        561,730   

Series E, 5.25%, 12/01/55

     500        568,215   
    

 

 

 
               1,880,464   

Tennessee — 0.1%

  

 

Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, Refunding RB, 5.00%, 10/01/41 (c)

     55        61,456   

Texas — 9.1%

  

 

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.00%, 1/01/41

     890        1,053,386   

City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37

     395        460,819   

Conroe Texas ISD, GO, School Building, Series A, 5.75%, 2/15/18 (a)

     470        516,657   

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare:

    

6.00%, 8/15/20 (a)

     75        91,405   

6.00%, 8/15/45

     945        1,123,331   

North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 9/01/41

     500        591,090   

North Texas Tollway Authority, Refunding RB, 1st Tier, Series K-1 (AGC), 5.75%, 1/01/38

     250        279,342   

Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38

     180        207,765   

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        589,965   
    

 

 

 
               4,913,760   

Virginia — 0.7%

  

 

City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43

     145        164,659   

Virginia Public School Authority, RB, Fluvanna County School Financing, 6.50%, 12/01/18 (a)

     200        231,630   
    

 

 

 
               396,289   

Wisconsin — 1.8%

  

 

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/39

     890        963,959   
Total Municipal Bonds — 103.2%        55,662,568   
 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    21


Schedule of Investments (continued)

  

BlackRock Municipal Bond Investment Trust (BIE)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
   Par  
(000)
    Value  

California — 19.3%

  

California Educational Facilities Authority, RB, University of Southern California, Series B,
5.25%, 10/01/39 (e)

   $ 1,005      $ 1,116,133   

Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40

     1,300        1,488,110   

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (e)

     1,410        1,641,515   

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/19 (a)

     2,079        2,446,155   

Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34

     200        225,012   

San Diego Public Facilities Financing Authority Water, RB, Series B, 5.50%, 8/01/39

     2,234        2,552,617   

University of California, RB, Series O, 5.75%, 5/15/19 (a)

     810        938,209   
    

 

 

 
               10,407,751   

District of Columbia — 3.4%

  

 

District of Columbia, RB, Series A, 5.50%, 12/01/30 (e)

     735        858,698   

District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 5.50%, 10/01/18 (a)

     899        1,008,923   
    

 

 

 
               1,867,621   

Illinois — 7.2%

  

 

State of Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/18 (a)

     1,500        1,692,405   

State of Illinois Toll Highway Authority, RB, Senior Priority, Series B, 5.50%, 1/01/18 (a)

     2,000        2,176,650   
    

 

 

 
               3,869,055   

Nevada — 3.1%

  

 

County of Clark Nevada Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/18 (a)

     1,500        1,684,470   

New Hampshire — 1.2%

  

 

New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (e)

     585        661,814   

New Jersey — 3.6%

  

 

New Jersey Transportation Trust Fund Authority, RB, Transportation System:

    

Series A (AMBAC), 5.00%, 12/15/32

     1,000        1,050,130   

Series B, 5.25%, 6/15/36 (e)

     840        892,688   
    

 

 

 
               1,942,818   

New York — 13.9%

  

 

City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A, 5.75%, 6/15/40

     750        832,026   

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution:

    

Series FF, 5.00%, 6/15/45

     1,000        1,145,627   

Series FF-2, 5.50%, 6/15/40

     990        1,123,782   
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
   Par  
(000)
    Value  

New York (continued)

    

City of New York New York Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39

   $ 1,000      $ 1,109,557   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

     1,170        1,354,792   

New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (e)

     680        792,227   

New York State Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 3/15/38

     1,000        1,122,440   
    

 

 

 
               7,480,451   

Texas — 5.2%

  

 

City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 2/01/31 (e)

     1,050        1,171,071   

County of Harris Texas Cultural Education Facilities Finance Corp., RB, Texas Children’s Hospital Project, 5.50%, 10/01/39

     1,450        1,646,171   
    

 

 

 
               2,817,242   

Virginia — 1.0%

  

 

County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35

     460        519,281   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 57.9%
        31,250,503   

Total Long-Term Investments

(Cost — $77,666,668) — 161.1%

  

  

    86,913,071   
    
   
Short-Term Securities    Shares         

BlackRock Liquidity Funds, MuniCash, 0.02% (f)(g)

     135,473        135,473   

Total Short-Term Securities

(Cost — $135,473) — 0.3%

  

  

    135,473   
Total Investments (Cost — $77,802,141) — 161.4%        87,048,544   
Other Assets Less Liabilities — 1.7%        932,414   

Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (30.1)%

   

    (16,237,349
VRDP Shares, at Liquidation Value — (33.0)%        (17,800,000
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 53,943,609   
 

 

 

 
 
Notes to Schedule of investments

 

(a)   U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

(b)   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.

 

(c)   When-issued security.

 

(d)   Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

 

(e)   All or a portion of security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between October 1, 2016 to November 15, 2019, is $4,102,787. See Note 4 of the Notes to Financial Statements for details.

 

See Notes to Financial Statements.

 

                
22    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Bond Investment Trust (BIE)

 

 

(f)   During the six months ended February 29, 2016, investments in issuers considered to be affiliates of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate      Shares Held
at August 31,
2015
       Net
Activity
    Shares Held
at February 29,
2016
       Income  

BlackRock Liquidity Funds, MuniCash

                 135,473        135,473             

FFI Institutional Tax-Exempt Fund

       860,286           (860,286             $ 59   

Total

              135,473         $ 59   
           

 

 

 

 

(g)   Current yield as of period end.

 

Derivative Financial Instruments Outstanding as of Period End

 

Financial Futures Contracts       
Contracts
Short
       Issue        Expiration        Notional
Value
       Unrealized
Appreciation
      
  (12)           5-Year U.S. Treasury Note           June 2016         $ 1,451,813           $  3,579     
  (10)           10-Year U.S. Treasury Note           June 2016         $ 1,305,156           6,550     
  (4)           Long U.S. Treasury Bond           June 2016         $ 658,125           3,180     
  (1)           Ultra U.S. Treasury Bond           June 2016         $ 173,156                    2,091       

 

Total

  

     $ 15,400     
                   

 

 

   

 

 

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

Assets — Derivative Financial Instruments          Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Financial futures contracts

   Net unrealized appreciation1                                    $ 15,400               $      15,400   

1   Includes cumulative appreciation (depreciation) on financial futures contracts, if any, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

       

For the six months ended February 29, 2016, the effect of derivative financial instruments in the Statements of Operations was as follows:   
Net Realized Gain (Loss) from:          Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Financial futures contracts

                                        $ (156,495            $ (156,495
Net Change in Unrealized
Appreciation (Depreciation) on:
                                                             

Financial futures contracts

                                        $ (3,046            $ (3,046

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Financial futures contracts:                                                       

Average notional value of contracts — short

     $ 3,190,699   

For more information about the Trust‘s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    23


Schedule of Investments (concluded)

  

BlackRock Municipal Bond Investment Trust (BIE)

 

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                
Investments:                 

Long-Term Investments 1

            $ 86,913,071              $ 86,913,071   

Short-Term Securities

  $ 135,473                          135,473   
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 135,473         $ 86,913,071              $ 87,048,544   
 

 

 

      

 

 

      

 

    

 

 

 

1 See above Schedule of Investments for values in each state or political subdivision.

  

 

     Level 1        Level 2      Level 3      Total  
Derivative Financial Instruments 1          

Assets:

                

Interest rate contracts

  $ 15,400                   $ 15,400   

1    Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation (depreciation) on the instrument.

       

The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

 

     Level 1        Level 2        Level 3      Total  

Assets:

                

Cash pledged for financial futures contracts

  $ 45,950                        $ 45,950   

Liabilities:

                

TOB Trust Certificates

            $ (16,235,837             (16,235,837

VRDP Shares

              (17,800,000             (17,800,000
 

 

 

      

 

 

      

 

    

 

 

 

Total

  $ 45,950         $ (34,035,837           $ (33,989,887
 

 

 

      

 

 

      

 

    

 

 

 

During the six months ended February 29, 2016, there were no transfers between levels.

 

See Notes to Financial Statements.

 

                
24    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


Schedule of Investments February 29, 2016 (Unaudited)

  

BlackRock Municipal Bond Trust (BBK)

(Percentages shown are based on Net Assets)

 

Municipal Bonds    Par  
(000)
    Value  

Alabama — 1.8%

  

City of Birmingham Alabama Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC) (a):

    

6.00%, 6/01/19

   $ 1,600      $ 1,853,632   

City of Hoover Alabama Board of Education, Refunding, Special Tax, Capital Outlay Warrants, 4.25%, 2/15/40

     1,275        1,320,581   
    

 

 

 
               3,174,213   

Arizona — 7.3%

  

Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 2/01/42

     2,200        2,379,960   

City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.00%, 7/01/45 (b)

     460        473,814   

County of Pinal Arizona Electric District No. 3, Refunding RB, Electric System, 4.75%, 7/01/31

     3,750        4,205,250   

Salt Verde Financial Corp., RB, Senior:

    

5.00%, 12/01/32

     1,500        1,766,580   

5.00%, 12/01/37

     2,065        2,439,653   

University Medical Center Corp., RB,
6.50%, 7/01/19 (a)

     500        591,525   

University Medical Center Corp., Refunding RB, 6.00%, 7/01/21 (a)

     900        1,124,856   
    

 

 

 
               12,981,638   

Arkansas — 3.5%

  

City of Benton Arkansas, RB, 4.00%, 6/01/39

     905        961,182   

City of Fort Smith Arkansas Water & Sewer Revenue, Refunding RB, 4.00%, 10/01/40

     1,240        1,287,232   

City of Hot Springs Arkansas, RB, Wastewater, 5.00%, 12/01/38

     1,200        1,367,592   

City of Little Rock Arkansas, RB, 4.00%, 7/01/41

     2,025        2,089,901   

County of Pulaski Arkansas Public Facilities Board, RB, 5.00%, 12/01/42

     465        525,390   
    

 

 

 
               6,231,297   

California — 21.3%

  

California Health Facilities Financing Authority, RB, Sutter Health:

    

Series A, 3.25%, 11/15/36

     820        809,004   

Series B, 5.88%, 8/15/31

     1,900        2,292,977   

California HFA, RB, Home Mortgage, Series G, AMT, 5.05%, 2/01/29

     2,285        2,320,669   

California Infrastructure & Economic Development Bank, Refunding RB, 4.00%, 11/01/45

     3,350        3,456,898   

Carlsbad California Unified School District, GO, Election of 2006, Series B, 0.00%, 5/01/34 (c)

     1,000        1,027,220   

City of San Jose California, Refunding ARB, Series A-1, AMT, 5.75%, 3/01/34

     2,000        2,355,040   

Dinuba California Unified School District, GO, Election of 2006 (AGM), 5.75%, 8/01/33

     500        571,160   

Hartnell Community College District California, GO, CAB, Election of 2002, Series D, 0.00%, 8/01/34 (c)

     1,650        1,464,161   

Norwalk-La Mirada Unified School District, GO, Refunding, CAB, Election of 2002, Series E (AGC), 0.00%, 8/01/38 (d)

     8,000        3,241,440   

Palomar Community College District, GO, CAB, Election of 2006, Series B:

    

0.00%, 8/01/30 (d)

     1,500        951,660   

0.00%, 8/01/33 (d)

     4,000        1,530,240   

0.00%, 8/01/39 (c)

     2,000        1,729,860   

San Diego Community College District, GO, CAB, Election of 2002, 0.00%, 8/01/33 (c)

     2,800        3,095,260   

State of California, GO, Refunding, Various Purposes:

    

5.00%, 2/01/38

     3,000        3,476,010   

4.00%, 10/01/44

     1,080        1,146,074   
Municipal Bonds    Par  
(000)
    Value  

California (continued)

  

State of California, GO, Various Purposes:

    

5.75%, 4/01/31

   $ 2,000      $ 2,273,140   

6.00%, 3/01/33

     1,000        1,186,740   

6.50%, 4/01/33

     1,950        2,275,397   

5.50%, 3/01/40

     2,350        2,720,054   
    

 

 

 
               37,923,004   

Colorado — 1.2%

  

Colorado Health Facilities Authority, RB, Catholic Health Initiatives, Series D, 6.25%, 10/01/33

     1,070        1,200,743   

Park Creek Metropolitan District, Refunding RB, Senior Limited Property Tax (AGM), 6.00%, 12/01/20 (a)

     750        917,910   
    

 

 

 
               2,118,653   

Connecticut — 0.7%

  

Connecticut State Health & Educational Facility Authority, Refunding RB:

    

4.00%, 7/01/38

     570        600,883   

Lawrence & Memorial Hospital, Series F, 5.00%, 7/01/36

     550        604,439   

Trinity Health Corp., 3.25%, 12/01/36

     100        97,922   
    

 

 

 
               1,303,244   

Delaware — 2.6%

  

County of Sussex Delaware, RB, NRG Energy, Inc., Indian River Power LLC Project, 6.00%, 10/01/40

     1,200        1,300,968   

Delaware Transportation Authority, RB:

    

5.00%, 6/01/45

     2,000        2,303,620   

5.00%, 6/01/55

     950        1,068,180   
    

 

 

 
               4,672,768   

Florida — 4.2%

  

Capital Trust Agency, Inc., RB, M/F Housing, The Gardens Apartment Project, Series A, 4.75%, 7/01/40

     600        609,012   

County of Miami-Dade Florida, RB, AMT, Seaport Department, Series B, 6.00%, 10/01/31

     4,135        5,097,504   

County of Miami-Dade Florida Educational Facilities Authority, Refunding RB, University of Miami, Series A, 5.00%, 4/01/45

     920        1,039,609   

County of Orange Florida Health Facilities Authority, Refunding RB, Mayflower Retirement Center, 5.00%, 6/01/36

     125        134,420   

Stevens Plantation Community Development District, Special Assessment, Series A, 7.10%, 5/01/35 (e)(f)

     910        636,882   
    

 

 

 
               7,517,427   

Georgia — 2.6%

  

City of Atlanta Georgia Water & Wastewater Revenue, 5.00%, 11/01/43

     4,000        4,619,800   

Hawaii — 0.2%

  

Hawaii State Department of Budget & Finance, Refunding RB, Special Purpose, Senior Living, Kahala Nui, 5.25%, 11/15/37

     400        439,516   

Idaho — 2.5%

  

Idaho Health Facilities Authority, RB:

    

St. Lukes Health System Project Series A, 5.00%, 3/01/39

     900        1,012,932   

Trinity Health Corp., Series 2016 ID, 4.00%, 12/01/45

     1,300        1,345,331   

Idaho Health Facilities Authority, Refunding RB, Trinity Health Group, Series B, 6.25%, 12/01/18 (a)

     1,750        2,013,795   
    

 

 

 
               4,372,058   

Illinois — 4.7%

  

City of Chicago Illinois, Refunding ARB, O’Hare International Airport Passenger Facility Charge, Series B, AMT, 4.00%, 1/01/29

     1,600        1,640,320   
 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    25


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds    Par  
(000)
    Value  

Illinois (continued)

  

City of Chicago Illinois Midway International Airport, Refunding GARB, 2nd Lien, Series A, 5.00%, 1/01/41

   $ 870      $ 947,543   

City of Chicago Illinois Transit Authority, RB, Sales Tax Receipts, 5.25%, 12/01/40

     665        724,431   

Illinois Finance Authority, RB, Rush University Medical Center, Series C, 6.63%, 5/01/19 (a)

     650        767,683   

Illinois Finance Authority, Refunding RB:

    

OSF Healthcare System, Series A, 6.00%, 5/15/39

     1,010        1,164,399   

Roosevelt University Project, 6.50%, 4/01/44

     1,000        1,095,010   

Railsplitter Tobacco Settlement Authority, RB, 6.00%, 6/01/28

     1,150        1,375,503   

State of Illinois, GO, 5.00%, 2/01/39

     665        697,319   
    

 

 

 
        8,412,208   

Iowa — 0.9%

  

Iowa Higher Education Loan Authority, Refunding RB, Private College Facility, Upper Iowa University Project:

    

5.75%, 9/01/30

     500        524,400   

6.00%, 9/01/39

     1,000        1,046,860   
    

 

 

 
        1,571,260   

Kansas — 2.5%

  

County of Seward Kansas Unified School District No. 480, GO, Refunding, 5.00%, 9/01/39

     4,000        4,484,680   

Kentucky — 1.9%

  

Kentucky Economic Development Finance Authority, RB, Catholic Health Initiatives, Series A, 5.38%, 1/01/40

     1,830        2,071,468   

Kentucky Public Transportation Infrastructure Authority, RB, Downtown Crossing Project, Convertible CAB, 1st Tier, Series C (c):

    

0.00%, 7/01/34

     500        389,750   

0.00%, 7/01/39

     830        630,327   

0.00%, 7/01/43

     270        203,024   
    

 

 

 
        3,294,569   

Louisiana — 2.2%

  

City of Alexandria Louisiana Utilities, RB, 5.00%, 5/01/39

     860        969,848   

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Project, Series A-1, 6.50%, 11/01/35

     1,050        1,228,563   

Louisiana Public Facilities Authority, RB, Belle Chasse Educational Foundation Project, 6.50%, 5/01/31

     400        442,932   

Louisiana Public Facilities Authority, Refunding RB, 4.00%, 11/01/45

     1,305        1,302,690   
    

 

 

 
        3,944,033   

Maryland — 0.9%

  

County of Anne Arundel Maryland Consolidated, Special Tax District, Villages at Two Rivers Project:

    

5.13%, 7/01/36

     170        175,163   

5.25%, 7/01/44

     170        174,842   

County of Montgomery Maryland, RB, Trinity Health Credit Group, 5.00%, 12/01/45

     1,000        1,167,700   
    

 

 

 
        1,517,705   

Massachusetts — 1.2%

  

Massachusetts Development Finance Agency, Refunding RB:

    

Emerson College, 5.00%, 1/01/41

     1,600        1,778,464   

International Charter School, 5.00%, 4/15/40

     400        432,224   
    

 

 

 
        2,210,688   
Municipal Bonds    Par  
(000)
    Value  

Michigan — 2.2%

  

Michigan Finance Authority, RB, Detroit Water & Sewage Disposal System, Senior Lien, Series 2014 C-2, AMT, 5.00%, 7/01/44

   $ 240      $ 255,242   

Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series C, 4.00%, 12/01/32

     2,100        2,225,034   

State of Michigan Building Authority, Refunding RB, Facilities Program, Series I:

    

6.25%, 10/15/18 (a)

     755        863,327   

6.25%, 10/15/38

     495        558,900   
    

 

 

 
        3,902,503   

Minnesota — 3.3%

  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series B (AGC):

    

6.50%, 11/15/18 (a)

     710        818,261   

6.50%, 11/15/38

     3,890        4,398,228   

Minnesota Higher Education Facilities Authority, Refunding RB (g):

    

3.00%, 4/01/36

     260        246,605   

4.00%, 4/01/39

     380        399,285   
    

 

 

 
        5,862,379   

Mississippi — 3.2%

  

County of Warren Mississippi, RB, Gulf Opportunity Zone Bonds, International Paper Co. Project, Series A, 5.38%, 12/01/35

     400        444,272   

Mississippi Development Bank, RB, Special Obligation:

    

CAB, Hinds Community College District (AGM), 5.00%, 4/01/36

     845        928,790   

County of Jackson Limited Tax Note (AGC), 5.50%, 7/01/32

     1,750        1,963,133   

University of Southern Mississippi, RB, Campus Facilities Improvements Project, 5.38%, 9/01/19 (a)

     2,100        2,428,566   
    

 

 

 
        5,764,761   

Missouri — 2.3%

  

Missouri Development Finance Board, RB, Annual Appropriation Sewer System, Series B, 5.00%, 11/01/41

     900        978,030   

Missouri State Health & Educational Facilities Authority, RB:

    

A.T. Still University of Health Sciences, 5.25%, 10/01/31

     500        573,845   

A.T. Still University of Health Sciences, 4.25%, 10/01/32

     320        344,707   

A.T. Still University of Health Sciences, 5.00%, 10/01/39

     500        565,955   

Heartland Regional Medical Center, 4.13%, 2/15/43

     400        413,668   

University of Central Missouri, Series C-2, 5.00%, 10/01/34

     1,000        1,147,240   
    

 

 

 
        4,023,445   

Nebraska — 3.7%

  

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.00%, 9/01/42

     600        646,926   

County of Douglas Hospital Authority No. 2, RB, Madonna Rehabilitation Hospital Project, 4.00%, 5/15/33

     1,095        1,125,846   

County of Douglas Hospital Authority No. 3, Refunding RB, Health Facilities Nebraska Methodist Health System, 5.00%, 11/01/45

     400        448,504   

Lincoln Airport Authority, Refunding RB, Series A, 4.00%, 7/01/40

     520        547,534   

Minden Public Schools, GO, 4.00%, 12/15/39

     500        511,045   
 

 

See Notes to Financial Statements.

 

                
26    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds    Par  
(000)
    Value  

Nebraska (continued)

  

Nebraska Public Power District, Refunding RB, Series A:

    

5.00%, 1/01/32

   $ 250      $ 291,130   

4.00%, 1/01/44

     400        415,912   

Omaha School District, GO, 4.00%, 12/15/39

     2,500        2,624,750   
    

 

 

 
        6,611,647   

Nevada — 1.6%

  

City of Las Vegas Nevada, Special Assessment, No. 809 Summerlin Area, 5.65%, 6/01/23

     1,110        1,118,925   

County of Clark Nevada, Refunding ARB, Department of Aviation, Subordinate Lien, Series A-2, 4.25%, 7/01/36

     1,000        1,058,580   

County of Clark Nevada, Refunding RB, Alexander Dawson School Nevada Project, 5.00%, 5/15/29

     575        580,744   
    

 

 

 
        2,758,249   

New Jersey — 13.1%

  

County of Middlesex New Jersey Improvement Authority, RB, Heldrich Center Hotel, Sub-Series B, 6.25%, 1/01/37 (e)(f)

     915        36,325   

New Jersey EDA, RB, AMT:

    

Continental Airlines, Inc. Project, Series B, 5.63%, 11/15/30

     660        745,978   

The Goethals Bridge Replacement Project (AGM), 5.13%, 7/01/42

     200        219,514   

New Jersey EDA, Refunding RB, Special Assessment, Kapkowski Road Landfill Project, 6.50%, 4/01/28

     7,500        9,177,825   

New Jersey Educational Facilities Authority, Refunding RB:

    

The College of New Jersey, 3.50%, 7/01/31

     1,225        1,252,036   

University of Medicine & Dentistry, Series B, 7.13%, 6/01/19 (a)

     630        753,619   

University of Medicine & Dentistry, Series B, 7.50%, 6/01/19 (a)

     800        966,568   

New Jersey Health Care Facilities Financing Authority, Refunding RB, St. Barnabas Health Care System, Series A:

    

4.63%, 7/01/23

     510        574,571   

5.00%, 7/01/25

     500        582,245   

5.63%, 7/01/37

     1,700        1,970,368   

New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series AA, 6.50%, 10/01/38

     100        103,600   

New Jersey State Turnpike Authority, RB, Series E, 5.00%, 1/01/45

     1,860        2,112,848   

New Jersey Transportation Trust Fund Authority, RB:

    

CAB, Transportation System, Series A, 0.00%, 12/15/35 (d)

     1,000        369,040   

Transportation Program, Series AA, 5.00%, 6/15/44

     3,030        3,174,319   

Transportation Program, Series AA, 5.00%, 6/15/45

     900        946,386   

Transportation Program, Series AA, 5.00%, 6/15/46

     400        420,304   
    

 

 

 
        23,405,546   

New Mexico — 0.3%

  

New Mexico Hospital Equipment Loan Council, Refunding RB, Presbyterian Healthcare Services, 5.00%, 8/01/44

     450        515,034   

New York — 8.1%

  

City of New York New York, GO, Fiscal 2014, Sub-Series A-1, 5.00%, 8/01/35

     1,580        1,870,704   

City of New York New York Industrial Development Agency, ARB, American Airlines, Inc., JFK International Airport Project, AMT, 7.75%, 8/01/31 (h)

     3,165        3,284,447   
Municipal Bonds    Par  
(000)
    Value  

New York (continued)

  

City of New York New York Industrial Development Agency, RB, PILOT, Queens Baseball Stadium (AMBAC), 5.00%, 1/01/39

   $ 925      $ 945,452   

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, Series A, 3.00%, 6/15/36 (g)

     1,920        1,879,891   

County of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A, 6.25%, 6/01/41 (b)

     900        938,673   

Erie Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/45

     1,160        1,125,223   

Metropolitan Transportation Authority, RB, Series B, 5.25%, 11/15/39

     2,300        2,690,471   

New York Liberty Development Corp., Refunding RB:

    

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49

     800        900,456   

3 World Trade Center Project, Class 2, 5.38%, 11/15/40 (b)

     405        441,552   

Niagara Area Development Corp., Refunding RB, Solid Waste Disposal Facility, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42 (b)

     400        405,752   
    

 

 

 
               14,482,621   

North Carolina — 2.0%

  

County of Gaston North Carolina Industrial Facilities & Pollution Control Financing Authority, RB, Exempt Facilities, National Gypsum Co. Project, AMT, 5.75%, 8/01/35

     2,695        2,700,120   

North Carolina Medical Care Commission, Refunding RB, University Health System, Series D, 6.25%, 12/01/18 (a)

     800        920,792   
    

 

 

 
               3,620,912   

North Dakota — 0.5%

  

City of Fargo, GO, Series D, 4.00%, 5/01/37

     225        238,284   

County of Burleigh North Dakota, Refunding RB, St. Alexius Medical Center Project, Series A, 5.00%, 7/01/21 (a)

     480        575,146   
    

 

 

 
               813,430   

Ohio — 1.2%

  

City of Dayton Ohio Airport Revenue, Refunding ARB, James M Cox Dayton International Airport, AMT, 4.00%, 12/01/32

     2,000        2,072,700   

Oklahoma — 1.4%

  

Oklahoma City Public Property Authority, Refunding RB, 5.00%, 10/01/39

     720        815,458   

Oklahoma Municipal Power Authority, RB, Power Supply System, Series A, 4.00%, 1/01/38

     620        649,450   

Oklahoma Water Resources Board, RB, 4.00%, 4/01/40

     990        1,053,617   
    

 

 

 
               2,518,525   

Oregon — 3.0%

  

County of Jackson Oregon Airport Revenue, Refunding RB:

    

3.00%, 12/01/35

     150        145,157   

3.13%, 12/01/37

     110        106,559   

County of Umatilla Pendleton Oregon School District No. 16R, GO, Series A, 4.00%, 6/15/38

     125        134,495   

Lane County School District No. 19 Springfield, GO, CAB, Series B, 0.00%, 6/15/40 (d)

     1,000        396,370   

Oregon Health & Science University, RB, Series A, 5.75%, 7/01/19 (a)

     750        871,253   

Oregon Health & Science University, Refunding RB, Series B, 4.00%, 7/01/46

     1,155        1,206,732   
 

 

See Notes to Financial Statements.

 

                
   SEMI-ANNUAL REPORT    FEBRUARY 29, 2016    27


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds    Par  
(000)
    Value  

Oregon (continued)

  

State of Oregon State Facilities Authority, Refunding RB, Series A, 5.00%, 4/01/45

   $ 2,220      $ 2,495,657   
    

 

 

 
               5,356,223   

Pennsylvania — 4.3%

  

County of Allegheny Pennsylvania IDA, Refunding RB, U.S. Steel Corp. Project, 6.55%, 12/01/27

     1,695        1,000,813   

Delaware County Authority, RB, Villanova University, 4.00%, 8/01/45

     2,000        2,085,840   

Delaware River Port Authority, RB:

    

4.50%, 1/01/32

     1,500        1,680,555   

Series D (AGM), 5.00%, 1/01/40

     2,600        2,895,958   
    

 

 

 
               7,663,166   

Rhode Island — 4.7%

  

Rhode Island Health & Educational Building Corp., RB, Hospital Financing, LifeSpan Obligation, Series A (AGC), 7.00%, 5/15/39

     1,000        1,157,430   

Rhode Island Infrastructure Bank, RB, Series A:

    

3.00%, 10/01/31

     200        203,172   

3.00%, 10/01/32

     80        80,747   

Rhode Island Turnpike & Bridge Authority, Refunding RB, Series A:

    

4.00%, 10/01/36

     780        820,349   

5.00%, 10/01/40

     1,155        1,329,798   

State of Rhode Island, COP, School for the Deaf Project, Series C (AGC), 5.38%, 4/01/28

     900        1,000,764   

Tobacco Settlement Financing Corp., Refunding RB:

    

Series A, 5.00%, 6/01/40

     1,000        1,063,920   

Series B, 4.50%, 6/01/45

     2,730        2,756,618   
    

 

 

 
               8,412,798   

Tennessee — 2.7%

  

Chattanooga Health Educational & Housing Facility Board, RB, Catholic Health Initiatives, Series A, 5.25%, 1/01/40

     1,950        2,189,889   

County of Chattanooga-Hamilton Tennessee Hospital Authority, Refunding RB, 5.00%, 10/01/44

     875        975,047   

County of Memphis-Shelby Tennessee Sports Authority, Inc., Refunding RB, Memphis Arena Project, Series A, 5.38%, 11/01/28

     275        315,744   

Johnson City Health & Educational Facilities Board, RB, Mountain States Health, Series A, 5.00%, 8/15/42

     800        870,288   

Metropolitan Government of Nashville & Davidson County Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A, 5.00%, 10/01/45 (g)

     385        428,763   
    

 

 

 
               4,779,731   

Texas — 9.5%

  

County of Harris Texas Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B (a):

    

7.13%, 12/01/18

     500        586,985   

7.25%, 12/01/18

     1,750        2,060,415   

County of Harris Texas Houston Sports Authority, Refunding RB, CAB, Senior Lien, Series G (NPFGC), 0.00%, 11/15/41 (d)

     11,690        3,400,504   

County of Matagorda Texas Navigation District No. 1, Refunding RB, Central Power & Light Co., Project, Series A, 6.30%, 11/01/29

     1,500        1,705,755   

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A, 0.00%, 9/15/38 (d)

     10,760        4,135,714   

Leander ISD, GO, Refunding, CAB Series D, 0.00%, 8/15/35 (d)

     4,000        1,819,520   
Municipal Bonds    Par  
(000)
    Value  

Texas (continued)

  

Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38

   $ 760      $ 877,230   

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        2,417,920   
    

 

 

 
               17,004,043   

U.S. Virgin Islands — 0.8%

  

Virgin Islands Public Finance Authority, Refunding RB, Virgin Islands Gross Receipts, Series C, 4.50%, 10/01/44

     1,360        1,398,012   

Utah — 0.2%

  

Utah State Charter School Finance Authority, Refunding RB, Mountainville Academy, 4.00%, 4/15/42

     400        406,588   

Vermont — 2.7%

  

University of Vermont & State Agricultural College, Refunding RB, 4.00%, 10/01/37

     2,360        2,491,664   

Vermont Educational & Health Buildings Financing Agency, Refunding RB, Fletcher Allen Health Hospital, Series B (AGM), 5.00%, 6/01/18 (a)

     1,190        1,304,062   

Vermont Student Assistance Corp., RB, Series A, 4.13%, 6/15/30

     1,000        1,045,050   
    

 

 

 
               4,840,776   

Virginia — 0.6%

  

Virginia Small Business Financing Authority, RB, Senior Lien, Elizabeth River Crossings OpCo LLC Project, AMT, 6.00%, 1/01/37

     880        1,017,966   

Washington — 0.9%

  

Washington Health Care Facilities Authority, RB, MultiCare Health System, Series B (AGC), 6.00%, 8/15/19 (a)

     1,400        1,645,140   

Wisconsin — 0.4%

  

WPPI Energy Power Supply Systems, Refunding RB, Series A, 5.00%, 7/01/37

     665        765,102   
Total Municipal Bonds — 134.9%              240,430,058   
    
   
Municipal Bonds Transferred to
Tender Option Bond Trusts (i)
 

Colorado — 2.3%

  

Colorado Health Facilities Authority, RB, Catholic Health, Series C-7 (AGM), 5.00%, 5/01/18 (a)

     3,750        4,097,287   

Connecticut — 1.7%

  

Connecticut State Health & Educational Facility Authority, Refunding RB, Trinity Health Credit Group, 5.00%, 12/01/45

     2,611        3,014,165   

New Jersey — 0.8%

  

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B,
5.25%, 6/15/36 (j)

     1,400        1,487,813   

New York — 14.3%

  

 

City of New York New York, GO, Fiscal 2015, Series B, 4.00%, 8/01/32

     3,990        4,312,711   

City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A, 5.75%, 6/15/40

     450        499,216   

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System:

    

2nd General Resolution, Fiscal 2013, Series CC, 5.00%, 6/15/47

     6,000        6,938,506   
 

 

See Notes to Financial Statements.

 

                
28    SEMI-ANNUAL REPORT    FEBRUARY 29, 2016   


Schedule of Investments (continued)

  

BlackRock Municipal Bond Trust (BBK)

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (i)
   Par  
(000)
    Value  

New York (continued)

  

 

City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System: (continued)

    

2nd General Resolution, Series FF-2, 5.50%, 6/15/40

   $ 405      $ 459,729   

Series A, 4.75%, 6/15/30

     3,000        3,149,880   

Hudson Yards Infrastructure Corp., RB, Fiscal 2012, Series A, 5.75%, 2/15/47 (j)

     2,500        2,905,267   

New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Consolidated Bonds, 5.25%, 12/15/43

     2,505        2,900,645   

State of New York Dormitory Authority, RB, New York University, Series A, 5.00%, 7/01/18 (a)

     2,199        2,416,271   

State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 3/15/31