BlackRock Municipal 2030 Target Term Trust

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: 811-22603

Name of Fund: BlackRock Municipal 2030 Target Term Trust (BTT)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal 2030

Target Term Trust, 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: 07/31/2019

Date of reporting period: 01/31/2019


Item 1 – Report to Stockholders


JANUARY 31, 2019

 

 

SEMI-ANNUAL REPORT (UNAUDITED)

 

    LOGO

 

BlackRock California Municipal Income Trust (BFZ)

BlackRock Municipal 2030 Target Term Trust (BTT)

BlackRock Municipal Income Investment Trust (BBF)

BlackRock New York Municipal Income Trust (BNY)

 

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Trust’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

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If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

In the 12 months ended January 31, 2019, concerns about a variety of political risks and a modest slowdown in global growth worked against the equity market, while the bond market delivered modest positive returns. Though the market’s appetite for risk remained healthy for most of the reporting period, risk-taking declined sharply later in the reporting period. As a result, bonds held their value better than stocks, which posted negative returns across the globe. Shorter-term, higher-quality securities led the bond market, and U.S. equities outperformed most international stock markets.

Volatility rose in emerging market stocks, as the rising U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. U.S.-China trade relations and debt concerns adversely affected the Chinese stock market, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe also led to negative performance for European equities.

Volatility in the U.S. equity market spiked in October, as a wide range of risks were brought to bear on markets, ranging from rising interest rates and slowing global growth to heightened trade tensions and political turmoil in several countries, including the United States. These risks manifested in a broad based sell-off in December, leading to the worst December performance on record since 1931.

By comparison, fixed income securities delivered modest positive returns with relatively low volatility. In fixed income markets, short-term U.S. Treasury interest rates rose the fastest, while longer-term rates were relatively unchanged. This led to positive returns for U.S. Treasuries and a substantial flattening of the yield curve. Although the credit fundamentals in corporate markets remained relatively solid, investment-grade and high-yield bonds trailed U.S. Treasuries.

The U.S. Federal Reserve (the “Fed”) increased short-term interest rates four times during the reporting period. The Fed also continued to reduce its balance sheet, gradually reversing the unprecedented stimulus measures it enacted after the financial crisis. By our estimation, the Fed’s neutral interest rate (the theoretical rate that is neither stimulative nor restrictive to the economy) is approximately 3.5%. The Fed funds rate is currently at 2.5%, which is stimulative to the economy. At its latest meeting in late January, the Fed left interest rates unchanged and signaled a slower pace of rate hikes in response to the global economic slowdown. Relatively low inflation gives the Fed room to maintain support for the economy until the economic data builds the case for changing interest rates.

Although fears of recession drove equity volatility higher at the end of 2018, we continue to believe the probability of recession in 2019 remains relatively low. Economic growth and global earnings are likely to slow somewhat in 2019 — the tax cut stimulus will be less pronounced, and the Fed’s rate hikes in 2018 will gain traction in 2019. Trade frictions look more baked into asset prices than a year ago, but markets may be overlooking European political risks. Consequently, we are cautious on European equities, as European unity remains tenuous with a history of flare-ups. We continue to prefer to take risk in U.S. and emerging market equities. Within U.S. equities, we believe that companies with high-quality earnings and strong balance sheets offer the most attractive risk/reward trade-off. We also favor short-term bonds over long-term bonds because they offer nearly equivalent yields with far lower volatility.

In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. 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 January 31, 2019
     6-month   12-month

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

  (3.00)%   (2.31)%

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

  (9.62)   (3.52)

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

  (7.80)   (12.51)

Emerging market equities
(MSCI Emerging Markets Index)

  (2.60)   (14.24)

3-month Treasury bills
(ICE BofAML 3-Month U.S. Treasury Bill Index)

  1.10   1.95

U.S. Treasury securities
(ICE BofAML 10-Year U.S. Treasury Index)

  4.20   3.21

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

  2.71   2.25

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

  1.86   3.08

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

  1.07   1.73
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
 

 

 

2    THIS PAGE IS NOT PART OF YOUR FUND REPORT


Table of Contents

 

      Page  

The Markets in Review

     2  

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

     14  

Statements of Assets and Liabilities

     41  

Statements of Operations

     42  

Statements of Changes in Net Assets

     43  

Statements of Cash Flows

     45  

Financial Highlights

     46  

Notes to Financial Statements

     50  

Trustee and Officer Information

     60  

Additional Information

     61  

Glossary of Terms Used in this Report

     63  

 

 

          3  


Municipal Market Overview  For the Reporting Period Ended January 31, 2019

 

Municipal Market Conditions

Municipal bonds experienced positive performance during the period, despite challenged total returns during most of 2018 as interest rates moved higher on the back of continued Fed policy normalization, fiscal stimulus, strong economic growth, and increased U.S. Treasury issuance. Performance turned particularly strong late in the year, with interest rates rallying as the Fed began to indicate a pivot from forecast based to data driven policy and the potential for a slower pace of future rate hikes. During the period, demand for the asset class remained firm, although displayed some bouts of volatility. Broadly, investors favored the tax-exempt income, diversification, quality, and value of municipal bonds given that tax reform ultimately lowered the top individual tax rate just 2.6% while eliminating deductions. During the 12 months ended January 31, 2019, municipal bond funds experienced net inflows of approximately $2.7 billion (based on data from the Investment Company Institute).

 

 
For the same 12-month period, total new issuance underwhelmed from a historical perspective at $315 billion (below the $394 billion issued in the prior 12-month period), a direct result of the elimination of advanced refundings through the 2017 Tax Cuts and Jobs Act. This shift transitioned the market from an existing net positive supply environment to a much more favorable net negative supply environment in which reinvestment income (coupons, calls, and maturities) largely outstripped gross issuance and provided a powerful technical tailwind.   S&P Municipal Bond Index

Total Returns as of January 31, 2019

 6 months: 1.86%

12 months: 3.08%

A Closer Look at Yields

 

LOGO

From January 31, 2018 to January 31, 2019, yields on AAA-rated 30-year municipal bonds increased by 11 basis points (“bps”) from 2.91% to 3.02%, while 10-year rates decreased by 18 bps from 2.35% to 2.17% and 5-year rates decreased by 7 bps from 1.83% to 1.76% (as measured by Thomson Municipal Market Data). The municipal yield curve was nearly unchanged over the 12-month period with the spread between 2- and 30-year maturities bear steepening just 1 bp, which is significant given that the corresponding U.S. Treasury curve bear flattened 26 bps. (Bear steepening is the widening of the yield curve caused by long-term rates increasing at a faster rate than short-term rates. Bear flattened is a yield-rate environment in which short-term interest rates are increasing at a faster rate than long-term interest rates.) The municipal yield curve is now more than 2.5 times steeper than the U.S. Treasury curve.

During the same time period, on a relative basis, tax-exempt municipal bonds strongly outperformed U.S. Treasuries, driven by the front and intermediate portions of the yield curve. The relative positive performance of municipal bonds was driven largely by a supply/demand imbalance within the municipal market as investors sought income, incremental yield, and tax shelter in an environment where opportunities became increasingly scarce. 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 problems among a few issuers. Four of the five states with the largest amount of debt outstanding — California, New York, Texas and Florida — continue to exhibit improved credit fundamentals. However, several states with the largest unfunded pension liabilities are faced with elevated borrowing costs and difficult budgetary decisions. Across the country on the local level, property values support credit stability. Standard & Poor’s recent decision to remove its “negative” outlook on New Mexico underscores the improvement in state finances as it was the only remaining state with the designation. Revenue bonds continue to drive performance as investors continue to seek higher yield bonds in the tobacco sector. 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 January 31, 2019, 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 AMT. 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    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


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, there is no guarantee that these objectives can 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 such 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 the Trusts’ intended leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Trust’s NAV, market price 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 Trust were not leveraged. In addition, each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause 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. Each Trust incurs 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 adviser 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”), Variable Rate Muni Term Preferred Shares (“VMTP Shares”) or Remarketable Variable Rate Muni Term Preferred Shares (“RVMTP 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), then the TOB Trust is not considered a senior security and is not subject to the foregoing limitations and requirements imposed by the 1940 Act.

Derivative Financial Instruments

The Trusts may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets 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 and 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 instrument. The Trusts’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these 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.

 

 

THE BENEFITS AND RISKS OF LEVERAGING / DERIVATIVE FINANCIAL INSTRUMENTS      5  


Trust Summary  as of January 31, 2019    BlackRock California Municipal Income Trust

 

Trust Overview

BlackRock California Municipal Income Trust’s (BFZ) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income and California income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. The Trust invests, under normal market conditions, at least 80% of its assets in municipal obligations that are investment grade quality, or are considered by the Trust’s investment adviser to be of comparable 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 New York Stock Exchange (“NYSE”)

  BFZ

Initial Offering Date

  July 27, 2001

Yield on Closing Market Price as of January 31, 2019 ($12.46)(a)

  4.29%

Tax Equivalent Yield(b)

  9.35%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Economic Leverage as of January 31, 2019(d)

  42%

 

  (a)

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.

 
  (b)

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 54.10%, 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.

 
  (c)

The distribution rate is not constant and is subject to change.

 
  (d)

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 January 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BFZ(a)(b)

    1.29      0.70

Lipper California Municipal Debt Funds(c)

    2.77        0.80  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

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

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

After performing poorly through the first half of the period, municipal bonds recovered to post a positive total return for the full six months. The initial downturn was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of more accommodative Fed policy, sparking a rally across the bond market from early November onward.

California municipal bonds lagged the national market. However, the state’s debt gained a measure of support from strong demand among retail investors looking for tax-exempt income in a state with the country’s most punitive income tax regime. The credit quality of state and local authorities remained consistent, but investors were alert for any changes in fiscal responsibility demonstrated by the new governor and his administration.

In a low-return environment, income was a key contributor to the Trust’s return. The Trust’s use of leverage aided performance by augmenting the contribution from income.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields fell, as prices rose, this strategy detracted from the Trust’s return.

The Trust benefited from its positions in higher-quality issues and bonds with maturities between six and seven years. Conversely, the Trust’s positions in the tobacco sector detracted from Trust performance.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

6    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of January 31, 2019 (continued)    BlackRock California Municipal Income Trust

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/19     07/31/18      Change      High      Low  

Market Price

  $ 12.46     $ 12.75        (2.27 )%     $ 12.87      $ 11.83  

Net Asset Value

    14.39       14.81        (2.84      14.81        14.23  

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

 

LOGO

Overview of the Trust’s Total Investments *

 

SECTOR ALLOCATION

 

Sector   01/31/19     07/31/18  

County/City/Special District/School District

    29     29

Transportation

    17       18  

Utilities

    16       12  

Education

    14       16  

Health

    14       12  

State

    7       9  

Tobacco

    3       4  

Housing(b)

           

 

   

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

CALL /MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2019

    19

2020

    3  

2021

    8  

2022

    5  

2023

    5  

 

  (c)

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   01/31/19     07/31/18  

AAA/Aaa

    8     7

AA/Aa

    72       72  

A

    15       14  

BBB/Baa

          1  

BB/Ba

    1       1  

B

    1       1  

N/R

    3       4  

 

  (a)

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.

 
  (b)

Represents less than 1% of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      7  


Trust Summary  as of January 31, 2019    BlackRock Municipal 2030 Target Term Trust

 

Trust Overview

BlackRock Municipal 2030 Target Term Trust’s (BTT) (the “Trust”) investment objectives are to provide current income exempt from regular U.S. federal income tax (but which may be subject to the federal alternative minimum tax in certain circumstances) and to return $25.00 per common share (the initial offering price per share) to holders of common shares on or about December 31, 2030. The Trust seeks to achieve its investment objectives by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality, or are considered by the Trust’s investment adviser to be of comparable quality, at the time of investment. The Trust actively manages the maturity of its bonds to seek to have a dollar weighted average effective maturity approximately equal to the Trust’s maturity date. The Trust may invest directly in such securities or synthetically through the use of derivatives.

There is no assurance that the Trust will achieve its investment objective of returning $25.00 per share.

Trust Information

 

Symbol on NYSE

  BTT

Initial Offering Date

  August 30, 2012

Termination Date (on or about)

  December 31, 2030

Current Distribution Rate on Closing Market Price as of January 31, 2019 ($21.69)(a)

  3.45%

Tax Equivalent Yield(b)

  5.83%

Current Monthly Distribution per Common Share(c)

  $0.0624

Current Annualized Distribution per Common Share(c)

  $0.7488

Economic Leverage as January 31, 2019(d)

  38%

 

  (a)

Current Distribution Rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate may consist of income, net realized gains and/or a return of capital. See the financial highlights for the actual sources and character of distributions. Past performance does not guarantee future results.

 
  (b)

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.80%, 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.

 
  (c)

The distribution rate is not constant and is subject to change.

 
  (d)

Represents RVMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to RVMTP 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 January 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BTT(a)(b)

    3.05      3.07

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.46        0.94  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

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

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

After performing poorly through the first half of the period, municipal bonds recovered to post a positive total return for the full six months. The initial downturn was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of more accommodative Fed policy, sparking a rally across the bond market from early November onward.

The Trust’s yield curve positioning contributed to Trust performance. The majority of portfolio holdings were held in the 10- to 15-year range, which outperformed other areas of the curve.

The Trust’s positions in the health care, transportation and state tax-backed sectors contributed to performance. Its allocation to the tobacco sector, while limited, detracted from Trust performance.

The Trust’s allocation to higher-rated issues, which outpaced lower-quality bonds, aided results.

Income made a meaningful contribution to performance relative to price appreciation. The Trust’s use of leverage augmented the contribution from income.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

8    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of January 31, 2019 (continued)    BlackRock Municipal 2030 Target Term Trust

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/19     07/31/18      Change      High      Low  

Market Price

  $ 21.69     $ 21.43        1.21    $ 21.75      $ 19.92  

Net Asset Value

    23.91       23.62        1.23        23.91        22.86  

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

 

LOGO

 

Overview of the Trust’s Total Investments *

 

SECTOR ALLOCATION

 

Sector   01/31/19     07/31/18  

Transportation

    26     23

Health

    20       19  

County/City/Special District/School District

    17       15  

State

    9       10  

Education

    8       12  

Corporate

    7       8  

Utilities

    7       7  

Housing

    3       3  

Tobacco

    3       3  

 

   

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2019

    0

2020

    4  

2021

    1  

2022

    28  

2023

    9  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   01/31/19     07/31/18  

AAA/Aaa

    3     3

AA/Aa

    32       32  

A

    38       37  

BBB/Baa

    15       17  

BB/Ba

    2       2  

B

    2       1  

CCC/Caa

           

N/R(b)

    8       8  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P 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.

 
  (b) 

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2019 and July 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1% of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      9  


Trust Summary  as of January 31, 2019    BlackRock Municipal Income Investment Trust

 

Trust Overview

BlackRock Municipal Income Investment Trust’s (BBF) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income 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 U.S. federal income taxes. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality, or are considered by the Trust’s investment adviser to be of comparable 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

  BBF

Initial Offering Date

  July 27, 2001

Yield on Closing Market Price as of January 31, 2019 ($12.90)(a)

  5.40%

Tax Equivalent Yield(b)

  9.12%

Current Monthly Distribution per Common Share(c)

  $0.0580

Current Annualized Distribution per Common Share(c)

  $0.6960

Economic Leverage as of January 31, 2019(d)

  41%

 

  (a)

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.

 
  (b)

Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.80%, 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.

 
  (c)

The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain.

 
  (d)

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 January 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BBF(a)(b)

    (0.77 )%       0.48

Lipper General & Insured Municipal Debt Funds (Leveraged)(c)

    2.46        0.94  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

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

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

After performing poorly through the first half of the period, municipal bonds recovered to post a positive total return for the full six months. The initial downturn was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of more accommodative Fed policy, sparking a rally across the bond market from early November onward.

Income, which was enhanced by leverage, was the largest contributor to Trust performance. However, the cost of leverage became more expensive during the period due to the Fed’s two interest rate increases.

Positions in short-dated maturities were top performers on a price basis, as yields fell the most for bond with maturities of ten years and below. (Prices and yields move in opposite directions.) Longer-dated maturities, while experiencing less price appreciation than short-term issues, provided the Trust with an attractive level of income.

The Trust’s holdings in higher-quality bonds generally added value and outpaced lower-quality securities.

At the sector level, positions in health care and transportation issues were contributors. Conversely, an allocation to the tobacco sector was a slight detractor. The sector experienced yield spread widening, which led to poor performance relative to other market segments.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields fell, as prices rose, this strategy detracted from the Trust’s return.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

10    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of January 31, 2019 (continued)    BlackRock Municipal Income Investment Trust

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/19      07/31/18      Change      High      Low  

Market Price

  $ 12.90      $   13.37        (3.52 )%     $ 14.17      $ 11.80  

Net Asset Value

    13.55        13.87        (2.31      13.87        13.36  

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

 

LOGO

Overview of the Trust’s Total Investments *

 

SECTOR ALLOCATION

 

Sector   01/31/19     07/31/18  

County/City/Special District/School District

    22     22

Health

    19       16  

Transportation

    19       19  

Utilities

    10       13  

State

    9       9  

Education

    7       9  

Tobacco

    7       7  

Housing

    6       3  

Corporate

    1       2  

 

   

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2019

    25

2020

    10  

2021

    13  

2022

    2  

2023

    16  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   01/31/19     07/31/18  

AAA/Aaa

    3     7

AA/Aa

    36       43  

A

    22       17  

BBB/Baa

    17       16  

BB/Ba

    3       4  

B

    3       3  

N/R(b)

    16       10  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P 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.

 
  (b) 

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2019 and July 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and less than 1%, respectively, of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      11  


Trust Summary  as of January 31, 2019    BlackRock New York Municipal Income Trust

 

Trust Overview

BlackRock New York Municipal Income Trust’s (BNY) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income tax and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality, or are considered by the Trust’s investment adviser to be of comparable 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

  BNY

Initial Offering Date

  July 27, 2001

Yield on Closing Market Price as of January 31, 2019 ($12.66)(a)

  4.22%

Tax Equivalent Yield(b)

  8.38%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Economic Leverage as of January 31, 2019(d)

  41%

 

  (a)

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.

 
  (b)

Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 49.62%, 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.

 
  (c)

The distribution rate is not constant and is subject to change.

 
  (d)

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 January 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BNY(a)(b)

    3.25      1.28

Lipper New York Municipal Debt Funds(c)

    3.35        1.12  

 

  (a) 

All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices.

 
  (b) 

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

 
  (c) 

Average return. Returns reflect reinvestment of dividends and/or distributions at NAV on the ex-dividend date as calculated by Lipper.

 

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Past performance is not indicative of future results.

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

After performing poorly through the first half of the period, municipal bonds recovered to post a positive total return for the full six months. The initial downturn was largely brought about by concerns that the Fed would raise interest rates aggressively in 2019. However, subsequent signs of slowing growth prompted investors to adjust their expectations in favor of more accommodative Fed policy, sparking a rally across the bond market from early November onward.

The New York municipal market finished somewhat behind the national indexes due primarily to elevated new-issue supply. While New York continues to benefit from a broad and diverse economic base, a tax revenue shortfall — possibly driven by changes stemming from the federal Tax Cuts and Jobs Act — had an adverse effect on investor sentiment. In addition to making revenue forecasting more of a challenge, the tax-law changes made New York’s tax structure less competitive relative to lower-tax states.

Income, which was enhanced by leverage, was the largest contributor to Trust performance. However, the cost of leverage became more expensive during the period due to the Fed’s two interest rate increases.

Positions in short-dated maturities were top performers on a price basis, as yields fell the most for bond with maturities of ten years and below. (Prices and yields move in opposite directions.) Longer-dated maturities, while experiencing less prices appreciation than short-term issues, provided the Trust with an attractive level of income.

At the sector level, positions in transportation and local tax-backed issues aided results. In both cases, holdings in higher-quality bonds were key contributors. Conversely, an allocation to the tobacco sector was a slight detractor. The sector experienced yield spread widening, which led to poor performance relative to other market segments.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that Treasury yields fell, as prices rose, this strategy detracted from the Trust’s return.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

 

 

12    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Trust Summary  as of January 31, 2019 (continued)    BlackRock New York Municipal Income Trust

 

Market Price and Net Asset Value Per Share Summary

 

     01/31/19     07/31/18      Change      High      Low  

Market Price

  $ 12.66     $ 12.53        1.04    $ 12.83      $ 11.70  

Net Asset Value

    14.39       14.52        (0.90      14.52        14.01  

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

 

LOGO

Overview of the Trust’s Total Investments *

 

SECTOR ALLOCATION

 

Sector   01/31/19     07/31/18  

County/City/Special District/School District

    22     22

Transportation

    21       21  

Education

    18       19  

State

    12       11  

Utilities

    11       11  

Health

    7       8  

Corporate

    3       3  

Tobacco

    3       3  

Housing

    3       2  

 

   

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

CALL/MATURITY SCHEDULE (c)

 

Calendar Year Ended December 31,

       

2019

    9

2020

    8  

2021

    18  

2022

    13  

2023

    8  

 

  (c) 

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

 
  *

Excludes short-term securities.

 

CREDIT QUALITY ALLOCATION (a)

 

Credit Rating   01/31/19     07/31/18  

AAA/Aaa

    7     17

AA/Aa

    45       35  

A

    26       30  

BBB/Baa

    8       7  

BB/Ba

    2       2  

B

    2       1  

N/R(b)

    10       8  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P 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.

 
  (b) 

The investment adviser 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 adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2019 and July 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1% and 4%, respectively, of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      13  


Schedule of Investments  (unaudited)

January 31, 2019

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 97.2%

 

California — 96.5%

 

County/City/Special District/School District — 23.3%  

City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:

   

6.13%, 05/01/31

  $ 500     $ 546,015  

6.50%, 05/01/36

    1,210       1,331,254  

6.50%, 05/01/42

    2,225       2,447,967  

County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 02/01/19(a)

    2,000       2,000,000  

County of Los Angeles Metropolitan Transportation Authority, Refunding RB, Series A, 5.00%, 07/01/38

    4,815       5,587,952  

County of Riverside California Public Financing Authority, RB, Capital Facilities Project, 5.25%, 11/01/45

    8,990       10,382,012  

County of San Joaquin California Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A, 6.00%, 03/01/21(a)

    2,880       3,138,192  

Evergreen Elementary School District, GO, Election of 2006, Series B (AGC), 5.13%, 08/01/33

    2,500       2,540,625  

Los Angeles California Community College District, GO, Series G, 4.00%, 08/01/39

    5,000       5,169,400  

Los Angeles California Unified School District, GO, Election of 2008, Series B-1, 5.25%, 07/01/42

    12,500       14,737,500  

Modesto Irrigation District, COP, Capital Improvments, Series A, 5.75%, 10/01/29

    3,035       3,053,908  

Sacramento Area Flood Control Agency, Refunding, Consolidated Capital Assessment District, 5.00%, 10/01/41

    8,000       9,049,520  

San Jose California Financing Authority, Refunding LRB, Civic Center Project, Series A, 5.00%, 06/01/32

    3,375       3,761,269  

San Leandro California Unified School District, GO, Election of 2010, Series A, 5.75%, 08/01/41

    3,060       3,335,981  

Santa Clarita Public Finance Authority, RB, Streetlights Acquisition And Retrofit Program, Series A, 5.00%, 09/01/43

    3,205       3,644,854  

Santa Monica Public Financing Authority, RB, Downtown Fire Station Project, 5.00%, 07/01/42

    1,250       1,437,550  

State of California, GO, Refunding, 5.00%, 08/01/46

    2,500       2,811,825  

State of California, GO, Refunding Various Purposes-Bid Group, 5.00%, 08/01/37

    15,000       17,570,100  

Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 08/01/19(a)

    4,000       4,088,840  

Tracy Community Facilities District, Special Tax Bonds, Series 1:

   

5.00%, 09/01/38

    335       365,924  

5.00%, 09/01/43

    515       560,619  

5.00%, 09/01/48

    570       619,516  

Tustin California School District, GO, Election of 2008, Series B, 5.25%, 08/01/21(a)

    3,445       3,764,214  

Washington Township Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/38

    1,625       1,895,481  

West Contra Costa California Unified School District, GO, Election of 2012, Series A, 5.50%, 08/01/39

    2,500       2,867,150  
   

 

 

 
    106,707,668  
Education — 7.9%  

California Educational Facilities Authority, Refunding RB, San Francisco University(a):

   

6.13%, 10/01/21

    3,075       3,439,910  

6.13%, 10/01/21

    3,205       3,589,792  

California Municipal Finance Authority, RB, Emerson College, 5.75%, 01/01/22(a)

    2,500       2,797,425  

California Municipal Finance Authority, Refunding RB, Emerson College, Series B, 5.00%, 01/01/42

    1,000       1,094,680  

California State University, Refunding RB, Systemwide, Series A, 5.00%, 11/01/33

    5,640       6,560,335  
Security   Par
(000)
    Value  
Education (continued)  

University of California, Refunding RB:

   

General, Series AZ, 5.00%, 05/15/43

  $ 5,800     $ 6,637,288  

Limited Project, Series O, 5.00%, 05/15/40

    6,350       7,283,196  

Series AR, 5.00%, 05/15/38

    4,250       4,825,833  
   

 

 

 
    36,228,459  
Health — 13.9%  

ABAG Finance Authority for Nonprofit Corps., Refunding RB, Sharp Healthcare, Series B, 6.25%, 08/01/19(a)

    4,975       5,089,077  

California Health Facilities Financing Authority, RB:

   

Adventist Health System West, Series A, 5.75%, 09/01/19(a)

    6,710       6,870,235  

Cedars Sinai Medical Center, Series A, 5.00%, 08/15/34

    5,475       6,331,892  

Children’s Hospital, Series A, 5.25%, 11/01/41

    8,500       9,266,445  

Sutter Health, Series A, 5.00%, 11/15/36

    1,900       2,181,846  

Sutter Health, Series A, 5.00%, 11/15/41

    3,000       3,318,960  

Sutter Health, Series B, 6.00%, 08/15/20(a)

    6,015       6,421,133  

California Health Facilities Financing Authority, Refunding RB, Series A(a):

   

Catholic Healthcare West, 6.00%, 07/01/19

    5,550       5,650,233  

Dignity Health, 6.00%, 07/01/19

    4,520       4,601,631  

California Statewide Communities Development Authority, RB, Loma Linda University Medical Center, 5.50%, 12/01/58(b)

    930       1,011,207  

California Statewide Communities Development Authority, Refunding RB, Trinity Health Credit Group Composite Issue, 5.00%, 12/01/41

    4,000       4,295,920  

State of California Public Works Board, Refunding RB, Various Capital Projects, Series C, 5.00%, 11/01/34

    7,750       8,946,445  
   

 

 

 
    63,985,024  
State — 8.7%  

Hayward Area Recreation & Park District, GO, Series A,
5.00%, 08/01/42

    4,950       5,659,335  

State of California, GO, Refunding, Various Purposes,
5.00%, 11/01/37

    4,690       5,437,633  

State of California, GO, Various Purposes, 6.00%, 04/01/38

    4,000       4,026,040  

State of California Public Works Board, LRB:

   

Department of Education, Riverside Campus Project, Series B, 6.50%, 04/01/19(a)

    9,000       9,072,090  

Various Capital Projects, Series I, 5.50%, 11/01/33

    4,940       5,615,150  

Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/19(a)

    5,025       5,205,598  

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33

    4,335       4,861,226  
   

 

 

 
    39,877,072  
Tobacco — 5.1%  

County of California Tobacco Securitization Agency, Refunding RB, Asset-Backed, Merced County, Series A, 5.25%, 06/01/45

    1,135       1,137,781  

Golden State Tobacco Securitization Corp., Refunding RB:

   

Asset-Backed, Series A, 5.00%, 06/01/40

    500       550,540  

Series A-1, 5.00%, 06/01/47

    17,470       16,504,258  

Tobacco Securitization Authority of Northern California, Refunding RB, Asset-Backed Bonds, Series A-1, 5.38%, 06/01/38

    2,000       2,008,880  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1:

   

5.00%, 06/01/37

    2,500       2,500,000  

5.13%, 06/01/46

    885       885,000  
   

 

 

 
    23,586,459  
Transportation — 17.6%  

City & County of San Francisco California Airports Commission, Refunding ARB, Series A, AMT, 5.00%, 05/01/42

    16,535       18,359,141  

City & County of San Francisco California Airports Commission, ARB, Second Series E:

   

6.00%, 05/01/19(a)

    520       525,658  

6.00%, 05/01/39

    6,230       6,297,782  
 

 

 

14    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Transportation (continued)  

City of Los Angeles California Department of Airports, ARB, AMT:

   

Los Angeles International Airport, Series B, 5.00%, 05/15/36

  $ 2,100     $ 2,358,174  

Los Angeles International Airport, Sub-Series A, 5.00%, 05/15/42

    4,220       4,666,349  

Subordinate, Los Angeles International Airport, Series B, 5.00%, 05/15/31

    100       114,395  

Subordinate, Series C, 5.00%, 05/15/44

    1,190       1,332,467  

City of Los Angeles California Department of Airports, Refunding ARB, Los Angeles International Airport:

   

AMT, 5.00%, 05/15/36

    600       697,380  

Senior Series A, 5.00%, 05/15/34

    6,650       6,712,044  

Senior, Series A, 5.00%, 05/15/40

    4,760       4,941,975  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A-1, AMT:

   

5.75%, 03/01/34

    3,875       4,133,734  

6.25%, 03/01/34

    2,650       2,861,974  

County of Riverside Transportation Commission, Refunding RB, Series A, 5.00%, 06/01/38

    2,150       2,485,164  

County of Sacramento California Airport System Revenue, Refunding RB, Series B, 5.00%, 07/01/38

    1,500       1,731,000  

County of Sacramento California Airport System Revenue, Refunding ARB, Senior Series A, 5.00%, 07/01/41

    12,500       13,955,750  

Port of Los Angeles California Harbor Department, Refunding RB, Series A, AMT, 5.00%, 08/01/44

    4,135       4,590,636  

San Francisco Municipal Transportation Agency, RB, 4.00%, 03/01/46

    4,935       5,102,148  
   

 

 

 
    80,865,771  
Utilities — 20.0%  

City & County of San Francisco Public Utilities Commission Wastewater Revenue, RB, Series B, 5.00%, 10/01/43

    2,485       2,848,183  

City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series D, 5.88%, 01/01/34

    2,550       2,576,112  

City of Los Angeles California Department of Water & Power, RB, Power System, Series A, 5.00%, 07/01/42

    10,670       12,113,971  

City of Los Angeles California Department of Water & Power, Refunding RB:

   

Series B, 5.00%, 07/01/43

    8,000       9,239,040  

Water System, Series A, 5.25%, 07/01/39

    4,000       4,250,680  

City of Petaluma California Wastewater Revenue, Refunding RB, 6.00%, 05/01/21(a)

    5,625       6,180,806  

City of Richmond California Wastewater Revenue, Refunding RB, Series A, 5.00%, 08/01/42

    1,750       2,007,828  

City of San Francisco California Public Utilities Commission Water Revenue, RB, Sub-Series A, 5.00%, 11/01/37

    5,000       5,449,900  

City of San Francisco California Public Utilities Commission Water Revenue, Refunding RB, Green Bond, Series D, 5.00%, 11/01/32

    10,325       12,358,199  

Dublin-San Ramon Services District Water Revenue, Refunding RB, 6.00%, 02/01/21(a)

    2,425       2,638,836  

East Bay California Municipal Utility District Water System Revenue, RB, Green Bond, Series A, 5.00%, 06/01/45

    4,230       4,842,250  

El Dorado Irrigation District/El Dorado County Water Agency, Refunding RB, Series A (AGM), 5.25%, 03/01/39

    10,000       11,379,600  

Los Angeles Department of Water, Refunding RB, Series A:

   

5.00%, 07/01/41

    5,000       5,680,400  

5.25%, 07/01/44

    3,000       3,456,030  

Los Angeles Department of Water & Power System Revenue, RB, Series B, 5.00%, 07/01/38

    6,000       6,791,520  
   

 

 

 
    91,813,355  
 

 

 

 

Total Municipal Bonds in California

 

    443,063,808  
 

 

 

 
Security   Par
(000)
    Value  

Multi-State — 0.5%

 

Housing — 0.5%  

Centerline Equity Issuer Trust(b):

   

Series A-4-2, 6.00%, 10/31/52

  $ 1,000     $ 1,009,800  

Series B-3-2, 6.30%, 10/31/52

    1,000       1,010,510  
   

 

 

 

Total Municipal Bonds in Multi-State

 

    2,020,310  
 

 

 

 

Puerto Rico — 0.2%

 

Tobacco — 0.2%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.50%, 05/15/39

    780       788,713  
   

 

 

 

Total Municipal Bonds — 97.2%
(Cost — $433,773,747)

 

    445,872,831  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(c)

 

California — 74.1%

 

County/City/Special District/School District — 27.2%  

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

    5,000       5,060,375  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 08/01/20(a)(d)

    12,902       13,602,037  

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 08/01/19(a)

    20,132       20,574,490  

Palomar Community College District, GO, Election of 2006, Series C, 5.00%, 08/01/44

    15,140       17,196,088  

San Diego California Community College District, GO, Election of 2002, 5.25%, 08/01/19(a)

    10,487       10,681,432  

San Diego Unified School District California, GO, Election of 2012, Series I, 5.00%, 07/01/47

    10,000       11,412,300  

San Francisco California Bay Area Rapid Transit District, GO, Election 2016, Green Bond, Series A, 5.00%, 08/01/47

    10,615       12,178,899  

San Joaquin California Delta Community College District, GO, Election of 2004, Series C, 5.00%, 08/01/39

    14,505       16,375,116  

San Jose Unified School District, GO, Series C, 4.00%, 08/01/39

    6,100       6,318,990  

Santa Monica Community College District, GO, Election of 2016, Series A, 5.00%, 08/01/43

    10,000       11,614,450  
   

 

 

 
    125,014,177  
Education — 16.2%  

University of California, RB:

   

Limited Project, Series M, 5.00%, 05/15/42

    10,000       11,346,450  

Series AM, 5.25%, 05/15/44

    5,000       5,630,975  

Series O, 5.75%, 05/15/19(a)

    12,303       12,446,932  

University of California, Refunding RB:

   

Series A, 5.00%, 11/01/43

    11,791       13,278,069  

Series AI, 5.00%, 05/15/38

    14,225       15,723,559  

Series I, 5.00%, 05/15/40

    14,065       15,772,252  
   

 

 

 
    74,198,237  
Health — 9.5%  

California Health Facilities Financing Authority, RB, Sutter Health, Series A:

   

5.00%, 11/15/41

    11,620       12,855,438  

5.00%, 08/15/52

    9,695       10,403,585  

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A, 5.00%, 04/01/42

    18,960       20,300,093  
   

 

 

 
    43,559,116  
State — 2.5%  

University of California, Refunding RB, Series AR, 5.00%, 05/15/41

    10,165       11,463,040  
   

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      15  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Transportation — 12.1%  

City & County of San Francisco California Airports Commission, Refunding RB, San Francisco International Airport, Series B, AMT, 5.00%, 05/01/41

  $ 8,720     $ 9,596,709  

City of Los Angeles California Department of Airports, ARB, AMT:

   

Los Angeles International Airport, Sub-Series A, 5.00%, 05/15/42

    22,710       25,112,007  

Series D, 5.00%, 05/15/41

    18,632       20,798,159  
   

 

 

 
    55,506,875  
Utilities — 6.6%  

County of Orange California Water District, COP, Refunding, 5.00%, 08/15/19(a)

    10,480       10,670,998  

Los Angeles Department of Water, Refunding RB, Series A, 5.00%, 07/01/46

    6,412       7,171,040  

San Diego Public Facilities Financing Authority Sewer, Refunding RB, Senior Series A, 5.25%, 05/15/19(a)

    12,460       12,588,587  
   

 

 

 
    30,430,625  
 

 

 

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 74.1%
(Cost — $336,839,799)

 

    340,172,070  
 

 

 

 

Total Long-Term Investments — 171.3%
(Cost — $770,613,546)

 

    786,044,901  

Other Assets Less Liabilities — 1.3%

 

    7,179,767  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (35.3)%

 

    (162,955,074

VMTP Shares at Liquidation Value, Net of Deferred
Offering Costs — (37.3)%

 

    (171,300,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 458,969,594  
   

 

 

 

 

(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) 

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.

(d) 

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 agreement, which expires on May 18, 2020, is $6,798,086. See Note 4 of the Notes to Financial Statements for details.

 

During the period ended January 31, 2019, investments in issuers considered to be an affiliate 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
07/31/18
     Net
Activity
     Shares
Held at
01/31/19
     Value at
01/31/19
     Income      Net
Realized
Gain (Loss) 
(a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds California Money Fund, Institutional Class

                        $      $ 9,521      $      $  

BlackRock Liquidity Funds, MuniCash, Institutional Class

     6,190,589        (6,190,589                    7,151        (9      (610
           

 

 

    

 

 

    

 

 

    

 

 

 
            $      $ 16,672      $ (9    $ (610
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

 

 

16    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock California Municipal Income Trust (BFZ)

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
      

Value/
Unrealized
Appreciation

(Depreciation)

 

Short Contracts:

                 

10-Year U.S. Treasury Note

     140          03/20/19        $ 17,146        $ (333,934

Long U.S. Treasury Bond

     203          03/20/19          29,778          (1,113,463

5-Year U.S. Treasury Note

     18          03/29/19          2,067          (36,458
                 

 

 

 
                  $ (1,483,855
                 

 

 

 

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:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
    

Foreign
Currency
Exchange

Contracts

     Interest
Rate
Contracts
     Other
Contracts
     Total  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized depreciation(a)

   $      $      $      $      $ 1,483,855      $      $ 1,483,855  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative depreciation on 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 January 31, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 139,038      $      $ 139,038  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (1,504,938    $      $ (1,504,938
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 35,059,703  

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

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(a)

   $        $ 786,044,901        $        $ 786,044,901  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Liabilities:

 

Interest rate contracts

   $ (1,483,855      $        $             —        $ (1,483,855
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

See above Schedule of Investments for values in each sector.

 
  (b) 

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

 

 

 

SCHEDULES OF INVESTMENTS      17  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock California Municipal Income Trust (BFZ)

 

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  

Liabilities:

                 

TOB Trust Certificates

   $             —        $ (162,130,035      $             —        $ (162,130,035

VMTP Shares at Liquidation Value

              (171,300,000                 (171,300,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (333,430,035      $        $ (333,430,035
  

 

 

      

 

 

      

 

 

      

 

 

 

During the period ended January 31, 2019, there were no transfers between levels.

See notes to financial statements.

 

 

18    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited)

January 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 129.9%

 

Alabama — 2.3%

 

Alabama Federal Aid Highway Finance Authority, RB, Series A:

   

5.00%, 09/01/33

  $ 3,985     $ 4,685,682  

5.00%, 09/01/34

    3,500       4,092,025  

Alabama Special Care Facilities Financing Authority-Birmingham, Refunding RB, Children’s Hospital of Albama, 5.00%, 06/01/30

    10,000       11,353,600  

Birmingham-Jefferson Civic Center Authority, Special Tax Bonds, Series A:

   

5.00%, 07/01/31

    1,100       1,284,052  

5.00%, 07/01/32

    1,150       1,332,183  

5.00%, 07/01/33

    1,600       1,844,976  

County of Jefferson Alabama Sewer Revenue, Refunding RB, CAB, Senior Lien-Warrants, Series B (AGM)(a):

   

0.00%, 10/01/31

    7,375       4,046,589  

0.00%, 10/01/32

    6,295       3,202,896  

0.00%, 10/01/33

    1,275       607,410  

Homewood Educational Building Authority, Refunding RB, Educational Facilities, Samford University, Series A:

   

5.00%, 12/01/33

    1,010       1,143,482  

5.00%, 12/01/34

    1,380       1,550,568  

University of South Alabama, Refunding RB, (AGM):

   

5.00%, 11/01/29

    1,105       1,275,589  

5.00%, 11/01/30

    2,000       2,290,780  
   

 

 

 
    38,709,832  
Alaska — 0.1%  

Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 4.63%, 06/01/23

    1,285       1,285,154  
   

 

 

 
Arizona — 2.2%  

Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital:

   

Series A, 5.00%, 02/01/34

    6,340       6,754,509  

Series B, 5.00%, 02/01/33

    1,810       1,952,302  

City of Phoenix Arizona IDA, RB, Facility:

   

Candeo Schools, Inc. Project, 6.00%, 07/01/23

    430       461,188  

Eagle College Preparatory Project, Series A, 4.50%, 07/01/22

    400       406,300  

Eagle College Preparatory Project, Series A, 5.00%, 07/01/33

    1,000       1,010,870  

Legacy Traditional Schools Project, Series A, 5.75%, 07/01/24(b)

    750       797,243  

City of Phoenix Arizona IDA, Refunding RB, Downtown Phoenix Student Housing, Series A:

   

5.00%, 07/01/29

    175       198,434  

5.00%, 07/01/31

    175       195,141  

County of Maricopa IDA, Refunding RB, Banner Health, Series A, 5.00%, 01/01/31

    16,280       18,930,058  

County of Pima Arizona IDA, Refunding RB, Tucson Electric Power Co. Project, Series A, 4.00%, 09/01/29

    6,000       6,228,420  
   

 

 

 
    36,934,465  
California — 7.9%  

Alameda Corridor Transportation Authority, Refunding RB, CAB, Sub-Lien, Series A (AMBAC),
0.00%, 10/01/30(a)

    10,530       6,891,253  

California Health Facilities Financing Authority, RB, Sutter Health, Series A:

   

5.00%, 11/15/32

    1,600       1,866,848  

5.00%, 11/15/33

    1,855       2,156,549  
Security   Par
(000)
    Value  
California (continued)  

California Health Facilities Financing Authority, Refunding RB, Sutter Health, Series A, 5.00%, 11/15/32

  $ 1,700     $ 1,983,526  

California Municipal Finance Authority, ARB, LINX APM Project, AMT, 5.00%, 12/31/33

    4,000       4,521,720  

California Municipal Finance Authority, RB:

   

Biola University, 4.00%, 10/01/33

    2,500       2,561,850  

Senior, S/F Housing, Caritas Affordable Housing, Inc. Project, Series A, 5.00%, 08/15/30

    1,000       1,095,340  

California Municipal Finance Authority, Refunding RB, Eisenhower Medical Center, Series A:

   

5.00%, 07/01/30

    1,200       1,376,196  

5.00%, 07/01/31

    1,050       1,194,973  

California Statewide Communities Development Authority, RB:

   

Eskaton Properties, Inc., 5.25%, 11/15/34

    2,500       2,649,900  

Loma Linda University Medical Center, 5.00%, 12/01/28(b)

    275       307,335  

Loma Linda University Medical Center, 5.00%, 12/01/33(b)

    1,350       1,468,395  

City of Long Beach California Harbor Revenue, RB, AMT, Series A:

   

5.00%, 05/15/31

    1,200       1,403,520  

5.00%, 05/15/32

    1,800       2,095,128  

5.00%, 05/15/33

    675       782,426  

5.00%, 05/15/34

    1,650       1,902,070  

City of San Jose California, Refunding ARB, Norman Y Mineta San Jose International Airport SJC, Series A, AMT:

   

5.00%, 03/01/30

    500       578,995  

5.00%, 03/01/31

    1,500       1,725,300  

5.00%, 03/01/32

    1,000       1,144,770  

5.00%, 03/01/33

    975       1,110,896  

5.00%, 03/01/34

    1,250       1,418,487  

5.00%, 03/01/35

    2,000       2,260,420  

County of San Diego Regional Airport Authority, ARB, AMT, Sub-Series B, 5.00%, 07/01/33

    1,000       1,142,050  

El Camino Community College District, GO, CAB, Election of 2002, Series C(a):

   

0.00%, 08/01/30

    9,090       6,581,342  

0.00%, 08/01/31

    12,465       8,614,312  

0.00%, 08/01/32

    17,435       11,525,407  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.00%, 06/01/29

    14,500       16,405,010  

Los Angeles California Unified School District, GO, Election of 2008, Series A, 4.00%, 07/01/33

    3,000       3,179,040  

Los Angeles Regional Airports Improvement Corp., Refunding RB, LAXFuel Corp., Los Angeles International, AMT, 5.00%, 01/01/32

    4,110       4,321,953  

M-S-R Energy Authority, RB, Series C, 6.13%, 11/01/29

    2,500       3,076,975  

Monterey Peninsula Community College District, GO, Refunding, CAB(a):

   

0.00%, 08/01/30

    3,500       2,502,570  

0.00%, 08/01/31

    5,940       4,053,991  

Oakland Unified School District/Alameda County, GO, Refunding, Series C, 5.00%, 08/01/30

    1,300       1,534,182  

Poway Unified School District, GO, Election of 2008, Series A(a):

   

0.00%, 08/01/30

    10,000       7,102,100  

0.00%, 08/01/32

    12,500       8,027,000  

State of California, GO, Refunding, 5.00%, 08/01/30

    10,000       11,969,700  

Washington Township Health Care District, Refunding RB, Series B, 3.00%, 07/01/28

    750       734,895  
   

 

 

 
    133,266,424  
 

 

 

SCHEDULES OF INVESTMENTS      19  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Colorado — 3.9%  

Central Platte Valley Metropolitan District, GO, Series A:

   

5.13%, 12/01/29

  $ 700     $ 778,295  

5.50%, 12/01/29

    750       846,548  

City & County of Denver Colarado, RB, CAB, Series A-2, 0.00%, 08/01/30(a)

    1,000       671,040  

City & County of Denver Colarado Airport System Revenue, Refunding ARB, AMT, Series A, 5.00%, 12/01/33

    25,000       29,110,750  

City of Lakewood Colorado Plaza Metropolitan District No. 1, Refunding, Tax Allocation Bonds(b):

   

4.00%, 12/01/23

    1,000       1,020,950  

4.10%, 12/01/24

    5,080       5,171,643  

4.20%, 12/01/25

    5,280       5,358,038  

4.50%, 12/01/30

    4,305       4,359,071  

Colorado Health Facilities Authority, Refunding RB:

   

Covenant Retirement Communities, Series A, 4.50%, 12/01/33

    4,595       4,631,117  

Covenant Retirement Communities, Series A,
5.00%, 12/01/33

    3,000       3,191,220  

NCMC, Inc. Project, 4.00%, 05/15/30

    2,860       3,066,978  

Copperleaf Metropolitan District No. 2, GO, Refunding, 5.25%, 12/01/30

    500       521,355  

Park Creek Metropolitan District, Refunding, Tax Allocation Bonds, Senior Limited Property, Series A:

   

5.00%, 12/01/27

    1,500       1,709,655  

5.00%, 12/01/28

    1,500       1,705,665  

5.00%, 12/01/30

    1,350       1,522,570  

5.00%, 12/01/31

    1,500       1,683,840  

Tallyns Reach Metropolitan District No. 3, GO, Refunding, 5.00%, 12/01/33

    503       524,398  
   

 

 

 
    65,873,133  
Connecticut — 1.4%  

Capital Region Development Authority, Refunding RB:

   

5.00%, 06/15/30

    1,095       1,260,049  

5.00%, 06/15/31

    1,125       1,281,825  

State of Connecticut, GO:

   

Series A, 5.00%, 04/15/33

    7,000       7,860,230  

Series D, 4.00%, 08/15/29

    11,500       12,111,225  

State of Connecticut Health & Educational Facilities Authority, RB, Sacred Heart University Issue, Series I-1:

   

5.00%, 07/01/31

    400       459,052  

5.00%, 07/01/35

    400       448,316  
   

 

 

 
    23,420,697  
Delaware — 0.4%  

County of Kent Delaware, RB, CHF-Dover, LLC-Delaware State University Project, Series A:

   

4.00%, 07/01/22

    230       239,287  

4.00%, 07/01/23

    570       595,998  

5.00%, 07/01/24

    705       775,260  

5.00%, 07/01/25

    805       894,242  

5.00%, 07/01/26

    850       951,371  

5.00%, 07/01/27

    890       1,000,974  

5.00%, 07/01/28

    935       1,049,884  

State of Delaware Health Facilities Authority, RB, Beebe Medical Center Project, 4.00%, 06/01/35

    1,250       1,235,175  
   

 

 

 
    6,742,191  
District of Columbia — 0.1%  

District of Columbia, Refunding RB, Kipp Charter School, Series A, 6.00%, 07/01/23(c)

    1,700       2,000,458  
   

 

 

 
Florida — 9.6%  

Central Florida Expressway Authority, Refunding RB, Senior Lien:

   

5.00%, 07/01/32

    1,610       1,896,773  

5.00%, 07/01/33

    2,750       3,222,478  
Security   Par
(000)
    Value  
Florida (continued)  

City of Jacksonville Florida, RB, 5.00%, 10/01/35

  $ 1,200     $ 1,369,620  

City of Lakeland Florida, Refunding RB, Lakeland Regional Health System, 5.00%, 11/15/30

    3,750       4,269,637  

City of Tampa Florida, Refunding RB, H. Lee Moffitt Cancer Center Project, Series A, 4.00%, 09/01/33

    10,000       10,336,400  

County of Alachua Florida Health Facilities Authority, RB, East Ridge Retirement Village, Inc. Project, 6.00%, 11/15/29

    5,000       4,719,050  

County of Broward Florida, RB, Fort Lauderdale Fuel Facilities, Series A, AMT (AGM):

   

5.00%, 04/01/30

    600       650,472  

5.00%, 04/01/33

    740       799,230  

County of Martin Florida IDA, Refunding RB, Indiantown Cogeneration, L.P. Project, AMT, 4.20%, 12/15/25(b)

    5,250       5,315,152  

County of Miami-Dade Florida, Refunding RB, Series B, 4.00%, 04/01/32

    6,690       7,069,256  

County of Miami-Dade Florida School Board, COP, Refunding, Series A, 5.00%, 05/01/32

    9,000       10,169,640  

County of Orange Convention Center, Refunding RB, 4.00%, 10/01/32

    9,485       10,055,997  

County of Orange Florida Tourist Development Tax Revenue, Refunding RB:

   

5.00%, 10/01/30

    11,470       14,170,841  

4.00%, 10/01/31

    7,000       7,450,870  

County of Palm Beach Florida Health Facilities Authority, Refunding RB, Acts Retirement-Life Communities, Inc. Obligated Group, 5.00%, 11/15/32

    30,305       33,139,730  

County of Palm Beach Health Facilities Authority, RB, Lifespace Communities, Inc.:

   

5.00%, 05/15/31

    410       441,902  

5.00%, 05/15/33

    1,000       1,064,730  

County of St. Johns Florida Water & Sewer Revenue, Refunding RB, CAB, Series B(a):

   

0.00%, 06/01/30

    2,000       1,424,320  

0.00%, 06/01/31

    1,295       877,790  

0.00%, 06/01/32

    2,495       1,621,575  

Double Branch Community Development District, Refunding, Special Assessment Bonds, Senior Lien, Series A-1, 4.13%, 05/01/31

    1,200       1,238,832  

Greater Orlando Aviation Authority, Refunding RB, Jet Blue Airways Corp. Project, AMT, 5.00%, 11/15/26

    2,000       2,137,060  

Jacksonville Florida Port Authority, Refunding ARB, AMT, 4.50%, 11/01/33

    630       652,781  

Jacksonville Florida Port Authority, Refunding RB, AMT:

   

4.50%, 11/01/30

    2,895       3,028,691  

4.50%, 11/01/31

    3,620       3,766,393  

4.50%, 11/01/32

    2,300       2,388,895  

Miami Beach Health Facilities Authority, Refunding RB, Mont Sinai Medical Center, 5.00%, 11/15/30

    1,000       1,093,160  

Reedy Creek Improvement District, GO, Series A, 5.25%, 06/01/30

    3,825       4,322,250  

Village Community Development District No. 10, Special Assessment Bonds, Sumter County:

   

4.50%, 05/01/23

    2,000       2,095,720  

5.00%, 05/01/32

    5,475       5,849,380  

Village Community Development District No. 5, Refunding, Special Assessment Bonds, Sumter County:

   

Phase I, 3.50%, 05/01/28

    1,925       1,953,779  

Phase I, 3.50%, 05/01/28

    3,645       3,699,493  

Phase II, 4.00%, 05/01/33

    1,115       1,131,469  

Phase II, 4.00%, 05/01/34

    2,335       2,364,911  

Village Community Development District No. 6, Refunding, Special Assessment Bonds, Sumter County, 4.00%, 05/01/29

    5,830       6,010,438  
   

 

 

 
    161,798,715  
 

 

 

20    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Idaho — 0.0%  

Idaho Housing & Finance Association, RB, Compass Charter School Project, Series A, 4.63%, 07/01/29(b)

  $ 185     $ 184,162  
   

 

 

 
Illinois — 13.7%  

Chicago Board of Education, GO, Refunding:

   

Dedicated Revenues, Series C, 5.00%, 12/01/30

    7,025       7,382,573  

Dedicated Revenues, Series F, 5.00%, 12/01/22

    4,760       4,961,300  

Series C, 5.00%, 12/01/22

    14,830       15,457,161  

Chicago Housing Authority, RB, M/F Housing, Series A:

   

5.00%, 01/01/33

    3,000       3,428,100  

5.00%, 01/01/35

    1,500       1,697,865  

Chicago Midway International Airport, Refunding ARB, 2nd Lien, Series A, AMT, 5.00%, 01/01/33

    5,000       5,419,850  

Chicago Transit Authority, Refunding RB:

   

Section 5307, Urbanized Area Formula Funds, 5.00%, 06/01/26

    2,000       2,300,320  

Section 5337, State of Good Repair Formula Funds, 5.00%, 06/01/26

    1,000       1,149,750  

City of Chicago Illinois, RB, Wastewater Transmission, 2nd Lien:

   

4.00%, 01/01/31

    10,375       10,502,612  

4.00%, 01/01/32

    10,790       10,901,892  

4.00%, 01/01/33

    11,220       11,311,667  

4.00%, 01/01/35

    9,135       9,184,603  

City of Chicago Illinois, Refunding ARB, O’Hare International Airport Passenger Facility Charge,
Series B, AMT, 4.00%, 01/01/27

    5,000       5,121,300  

City of Chicago Illinois Motor Fuel Tax Revenue, Refunding RB, (AGM), 5.00%, 01/01/30

    730       789,714  

City of Chicago O’Hare International Airport, Refunding GARB, Senior Lien, Series B, 5.00%, 01/01/33

    6,000       6,793,980  

City of St. Charles Illinois, GO, Refunding, Corporate Purpose:

   

4.00%, 12/01/30

    1,620       1,710,493  

4.00%, 12/01/31

    1,715       1,804,386  

Counties of Kane McHenry Cook & De Kalb Unit School District No. 300, GO, Refunding, Series A, 5.00%, 01/01/30

    6,350       7,257,225  

County of Cook Illinois, GO, Refunding, Series C, 4.00%, 11/15/29

    19,750       20,335,982  

Illinois Finance Authority, Refunding RB:

   

DePaul University, Series A, 5.00%, 10/01/30

    1,000       1,153,640  

DePaul University, Series A, 4.00%, 10/01/31

    1,000       1,055,310  

DePaul University, Series A, 4.00%, 10/01/32

    1,000       1,050,450  

Lutheran Home & Services Obligated Group, 5.00%, 05/15/22

    3,185       3,267,619  

Lutheran Home & Services Obligated Group, 5.50%, 05/15/27

    3,350       3,488,188  

Presence Health Network, Series C, 5.00%, 02/15/30

    12,000       13,999,440  

Rush University Medical Center, Series A, 5.00%, 11/15/31

    8,415       9,381,715  

Rush University Medical Center, Series A, 5.00%, 11/15/32

    2,075       2,303,333  

Rush University Medical Center, Series A, 5.00%, 11/15/33

    2,125       2,349,889  

The Peoples Gas Light & Coke Company Project, 4.00%, 02/01/33

    11,000       11,326,700  

The University of Chicago Medical Centre, Series B, 5.00%, 08/15/30

    3,205       3,718,922  

Illinois State Toll Highway Authority, Refunding RB, Senior, Series A, 4.00%, 12/01/31

    20,000       21,048,600  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:

   

5.00%, 12/15/28

    1,200       1,304,628  

5.00%, 12/15/30

    1,385       1,491,728  
Security   Par
(000)
    Value  
Illinois (continued)  

State of Illinois, GO, Refunding, Series B, 5.00%, 10/01/30

  $ 7,000     $ 7,515,270  

Winnebago & Boone Counties School District No. 205 Rockford, GO:

   

4.00%, 02/01/29

    9,080       9,478,340  

4.00%, 02/01/30

    9,835       10,127,591  
   

 

 

 
    231,572,136  
Indiana — 3.6%  

City of Indianapolis Department of Public Utilities Water System Revenue, Refunding RB, First Lien, Series A, 5.00%, 10/01/35

    10,000       11,749,600  

City of Valparaiso Indiana, RB, Exempt Facilities, Pratt Paper LLC Project, AMT, 5.88%, 01/01/24

    1,525       1,669,402  

City of Whiting Indiana, RB, BP Products North America, Inc. Project, AMT, 5.00%, 03/01/46(d)

    8,500       9,252,845  

Indiana Finance Authority, Refunding RB:

   

Community Health Network Project, Series A, 4.00%, 05/01/35

    22,565       23,103,626  

Earlham College Project, 5.00%, 10/01/32

    11,255       11,408,181  

Northern Indiana Commuter Transportation District, RB:

   

5.00%, 07/01/32

    1,000       1,136,210  

5.00%, 07/01/33

    1,400       1,583,736  
   

 

 

 
    59,903,600  
Iowa — 0.8%  

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project:

   

5.50%, 12/01/22

    60       60,058  

5.25%, 12/01/25

    13,345       14,141,696  
   

 

 

 
    14,201,754  
Kansas — 0.1%  

Wyandotte County-Kansas City Unified Government Utility System Revenue, RB, Series A, 5.00%, 09/01/33

    1,370       1,562,184  
   

 

 

 
Kentucky — 0.6%  

Countyof Louisville/Jefferson Metropolitan Government, Refunding RB, Norton Healthcare, Inc., Series A, 5.00%, 10/01/32

    7,300       8,170,160  

Kentucky Public Transportation Infrastructure Authority, RB, CAB, 1st Tier-DownTown Crossing Project:

   

Series B, 0.00%, 07/01/30(a)

    1,230       725,282  

Convertible Series C, 0.00%, 07/01/33(e)

    1,500       1,479,150  
   

 

 

 
    10,374,592  
Louisiana — 3.0%  

City of Ruston Louisiana, RB, (AGM):

   

5.00%, 06/01/29

    1,060       1,219,488  

5.00%, 06/01/30

    1,000       1,145,460  

5.00%, 06/01/31

    1,020       1,160,403  

5.00%, 06/01/32

    1,225       1,387,570  

Louisiana Public Facilities Authority, Refunding RB:

   

5.00%, 05/15/29

    1,235       1,406,677  

5.00%, 05/15/30

    990       1,119,284  

3.00%, 05/15/31

    2,225       2,202,350  

5.00%, 05/15/32

    1,485       1,658,329  

5.00%, 05/15/33

    2,175       2,416,925  

Entergy Louisiana, Series B, 3.50%, 06/01/30

    5,990       5,956,516  

Louisiana Stadium & Exposition District, Refunding RB, Senior, Series A, 5.00%, 07/01/30

    3,000       3,339,000  

Port New Orleans Board of Commissioners, Refunding RB, Series B, AMT:

   

5.00%, 04/01/31

    300       323,646  

5.00%, 04/01/32

    1,000       1,074,770  

5.00%, 04/01/33

    1,575       1,686,400  
 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Louisiana (continued)  

State of Louisiana, GO, Series A, 4.00%, 05/15/30

  $ 6,540     $ 6,884,004  

Terrebonne Levee & Conservation District, RB, Sales Tax, 5.00%, 07/01/29

    1,925       2,142,525  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A:

   

5.25%, 05/15/31

    3,425       3,596,592  

5.25%, 05/15/32

    4,375       4,654,781  

5.25%, 05/15/33

    4,750       5,021,890  

5.25%, 05/15/35

    1,500       1,592,400  
   

 

 

 
    49,989,010  
Maryland — 1.8%  

City of Baltimore Maryland, Refunding RB, Convention Center Hotel, 5.00%, 09/01/31

    1,250       1,405,263  

County of Anne Arundel Maryland Consolidated, Special Taxing District, Special Tax Bonds, Villages At Two Rivers Project:

   

4.20%, 07/01/24

    700       693,301  

4.90%, 07/01/30

    1,315       1,315,565  

County of Howard Maryland Housing Commission, RB, M/F Housing, Woodfield Oxford Square Apartments, 5.00%, 12/01/33

    1,765       2,004,599  

County of Prince George’s Maryland, Tax Allocation Bonds, Westphalia Town Center Project, 5.00%, 07/01/30(b)

    585       614,753  

Maryland EDC, RB, Purple Line Light Rail Project,
Series D, AMT, 5.00%, 03/31/30

    1,325       1,488,584  

Maryland EDC, Refunding RB, CNX Marine Terminals, Inc., 5.75%, 09/01/25

    3,225       3,319,654  

Maryland Health & Higher Educational Facilities Authority, Refunding RB:

   

Charlestown Community, Series A, 5.00%, 01/01/31

    2,865       3,245,071  

Charlestown Community, Series A, 5.00%, 01/01/32

    3,010       3,396,514  

Charlestown Community, Series A, 5.00%, 01/01/33

    3,165       3,546,889  

LifeBridge Health Issue, 5.00%, 07/01/31

    1,000       1,156,480  

LifeBridge Health Issue, 5.00%, 07/01/32

    500       575,020  

Lifebridge Health Issue, 5.00%, 07/01/33

    385       436,894  

LifeBridge Health Issue, 5.00%, 07/01/33

    1,000       1,142,840  

LifeBridge Health Issue, 5.00%, 07/01/34

    775       880,780  

Meritus Medical Center, 5.00%, 07/01/29

    2,200       2,469,720  

Meritus Medical Center, 5.00%, 07/01/31

    1,400       1,551,774  

Meritus Medical Center, 5.00%, 07/01/33

    1,200       1,320,576  
   

 

 

 
    30,564,277  
Massachusetts — 2.3%  

Commonwealth of Massachusetts, Refunding, GOL, Series A (AMBAC), 5.50%, 08/01/30

    2,500       3,212,300  

Commonwealth of Massachusetts, GOL, Series I, 5.00%, 12/01/33

    5,000       5,817,600  

Massachusetts Bay Transportation Authority, Refunding RB, CAB, Series A, 0.00%, 07/01/32(a)

    5,500       3,511,475  

Massachusetts Development Finance Agency, RB:

   

Emmanuel College Issue, Series A, 5.00%, 01/01/33

    1,070       1,186,245  

UMass Darthmouth Student Housing Project, 5.00%, 10/01/29

    2,365       2,674,200  

UMass Darthmouth Student Housing Project, 5.00%, 10/01/30

    2,485       2,783,821  

Massachusetts Development Finance Agency, Refunding RB, Series A:

   

Emmanuel College Issue, 5.00%, 10/01/31

    3,635       4,006,061  

Emmanuel College Issue, 5.00%, 10/01/33

    1,285       1,405,315  

5.00%, 01/01/32

    2,020       2,276,479  
Security   Par
(000)
    Value  
Massachusetts (continued)  

5.00%, 01/01/33

  $ 1,500     $ 1,680,630  

5.00%, 01/01/34

    2,085       2,324,212  

5.00%, 01/01/35

    2,000       2,219,760  

Massachusetts Educational Financing Authority, Refunding RB, Series K, AMT, 5.25%, 07/01/29

    5,405       5,765,351  
   

 

 

 
    38,863,449  
Michigan — 1.5%  

City of Detroit Michigan, GO:

   

5.00%, 04/01/26

    735       797,945  

5.00%, 04/01/27

    580       629,671  

5.00%, 04/01/28

    665       720,847  

5.00%, 04/01/29

    665       717,129  

5.00%, 04/01/30

    510       547,949  

5.00%, 04/01/31

    735       783,312  

5.00%, 04/01/32

    625       662,656  

5.00%, 04/01/33

    830       877,418  

Michigan Finance Authority, Refunding RB:

   

MidMichigan Health, 5.00%, 06/01/33

    2,750       3,054,453  

Oakwood Obligation Group, 5.00%, 08/15/30

    2,105       2,327,183  

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

    8,195       8,446,996  

Michigan Strategic Fund, RB, I-75 Improvement Projects, AMT, 5.00%, 12/31/32

    2,000       2,260,020  

Saginaw Valley State University, Refunding RB, Series A:

   

5.00%, 07/01/31

    2,070       2,353,445  

5.00%, 07/01/32

    1,430       1,619,704  
   

 

 

 
    25,798,728  
Minnesota — 0.3%  

Sartell-St Stephen Independent School District No. 748, GO, Series B(a):

   

0.00%, 02/01/30

    3,915       2,782,743  

0.00%, 02/01/31

    2,190       1,480,812  

0.00%, 02/01/32

    1,450       939,310  
   

 

 

 
    5,202,865  
Mississippi — 1.7%  

Mississippi Development Bank, Refunding RB, Municipal Energy Agency of Mississippi, Series A (AGM):

   

5.00%, 03/01/30

    2,280       2,599,861  

5.00%, 03/01/31

    1,595       1,806,736  

5.00%, 03/01/32

    2,000       2,257,320  

5.00%, 03/01/33

    1,275       1,431,251  

State of Mississippi, RB:

   

Series A, 5.00%, 10/15/35

    5,000       5,740,500  

Series E, 5.00%, 10/15/33

    12,225       13,729,531  
   

 

 

 
    27,565,199  
Missouri — 0.7%  

City of St. Louis Missouri IDA, Refunding RB, Ballpark Village Development Project, Series A, 3.88%, 11/15/29

    1,035       1,056,942  

Missouri State Health & Educational Facilities Authority, Refunding RB:

   

CoxHealth, Series A, 4.00%, 11/15/33

    2,010       2,086,099  

St. Louis College of Pharmacy, 5.00%, 05/01/30

    3,000       3,189,180  

The Children’s Mercy Hospital, 5.00%, 05/15/31

    1,175       1,327,621  

The Children’s Mercy Hospital, 4.00%, 05/15/32

    1,680       1,759,934  

The Children’s Mercy Hospital, 4.00%, 05/15/33

    2,000       2,085,920  
   

 

 

 
    11,505,696  
 

 

 

22    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Nebraska — 1.1%  

Central Plains Nebraska Energy Project, RB:

   

Energy Project No. 3, 5.00%, 09/01/27

  $ 5,000     $ 5,366,350  

Gas Project No. 3, 5.00%, 09/01/32

    4,500       4,829,715  

Public Power Generation Agency, Refunding RB, Whelan Energy Center Unit 2, Series A, 5.00%, 01/01/32

    7,630       8,625,944  
   

 

 

 
    18,822,009  
Nevada — 0.0%  

Nevada Department of Business & Industry, RB, Series A, 5.00%, 07/15/27(b)

    335       350,186  
   

 

 

 
New Hampshire — 0.4%  

New Hampshire Business Finance Authority, Refunding RB, Resource Recovery, Covanta Project, Series A, AMT, 4.00%, 11/01/27(b)

    2,205       2,171,308  

New Hampshire State Turnpike System, RB, Series C, 4.00%, 08/01/33

    4,350       4,497,552  
   

 

 

 
    6,668,860  
New Jersey — 16.6%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.00%, 11/01/21

    2,465       2,618,471  

5.00%, 11/01/22

    1,890       2,029,690  

County of Gloucester New Jersey Pollution Control Financing Authority, Refunding RB, Keystone Urban Renewal Project, Series A, AMT, 5.00%, 12/01/24

    1,500       1,587,555  

New Jersey EDA, RB:

   

Continental Airlines, Inc. Project, AMT, 5.25%, 09/15/29

    12,230       13,267,226  

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

    1,740       1,960,963  

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

    1,315       1,482,663  

Foundation Academy Charter School Project, Series A, 4.00%, 07/01/29

    350       348,516  

Private Activity Bond, The Goethals Bridge Replacement Project, AMT, 5.00%, 01/01/28

    4,705       5,131,367  

Series DDD, 5.00%, 06/15/35

    2,000       2,137,960  

State Government Buildings Project, Series A, 5.00%, 06/15/32

    4,500       4,881,780  

State Government Buildings Project, Series C, 5.00%, 06/15/32

    3,600       3,905,424  

New Jersey EDA, Refunding RB:

   

Cigarette Tax, 5.00%, 06/15/26

    10,610       11,354,079  

Cigarette Tax, 4.25%, 06/15/27

    16,500       17,197,785  

Continental Airlines, Inc. Project, AMT, 5.75%, 09/15/27

    6,200       6,819,814  

Provident Group — Montclaire Properties LLC (AGM), 5.00%, 06/01/30

    1,500       1,713,555  

Provident Group — Montclaire Properties LLC (AGM), 5.00%, 06/01/31

    1,750       1,979,915  

Provident Group — Montclaire Properties LLC (AGM), 4.00%, 06/01/32

    2,125       2,219,839  

Provident Group-Monteclair Properites LLC (AGM), 5.00%, 06/01/28

    1,000       1,156,700  

Series BBB, 5.50%, 06/15/29

    10,000       11,452,800  

Sub-Series A, 4.00%, 07/01/32

    9,855       9,834,403  

New Jersey EDA, Refunding, Special Assessment Bonds, Kapkowski Road Landfill Project, 5.75%, 04/01/31

    5,000       5,455,000  

New Jersey EDA, RB, Reunding Cranes Mill Project, 5.00%, 01/01/29

    2,280       2,531,552  

New Jersey Health Care Facilities Financing Authority, Refunding RB:

   

Princeton HealthCare System, 5.00%, 07/01/29

    2,900       3,385,344  
Security   Par
(000)
    Value  
New Jersey (continued)  

Princeton HealthCare System, 5.00%, 07/01/30

  $ 2,400     $ 2,777,064  

RWJ Barnabas Health Obligated Group, Series A, 5.00%, 07/01/30

    11,245       13,110,321  

St. Joseph Health System, 5.00%, 07/01/28

    1,500       1,684,155  

St. Joseph Health System, 5.00%, 07/01/29

    1,250       1,398,200  

St. Joseph Health System Obligated Group Issue, 5.00%, 07/01/30

    1,100       1,221,979  

New Jersey Higher Education Student Assistance Authority, RB, Senior Student Loan, AMT:

   

Series 1A, 5.00%, 12/01/23

    3,475       3,865,764  

Series 1A, 5.00%, 12/01/24

    6,000       6,780,420  

Series 1A, 5.00%, 12/01/25

    5,500       6,301,900  

Series 1A, 5.00%, 12/01/26

    2,250       2,559,982  

Series A, 4.00%, 12/01/32

    2,500       2,588,550  

Series A, 4.00%, 12/01/33

    2,000       2,066,020  

Series A, 4.00%, 12/01/34

    1,000       1,028,210  

Series A, 4.00%, 12/01/35

    1,000       1,023,440  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing, Series BB, AMT, 3.80%, 10/01/32

    13,230       13,365,872  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program, Series AA, 5.25%, 06/15/27

    4,225       4,740,619  

Transportation Program, Series AA, 5.25%, 06/15/28

    4,500       5,032,665  

Transportation System, Series AA, 4.00%, 06/15/30

    10,815       10,936,885  

Transportation System, Series C, 5.25%, 06/15/32

    10,000       10,831,800  

Transportation System, Series D, 5.00%, 06/15/32

    5,000       5,350,500  

New Jersey Transportation Trust Fund Authority, Refunding RB, Series A:

   

Federal Highway Reimbursement Revenue Notes, 5.00%, 06/15/30

    6,600       7,341,642  

5.00%, 12/15/30

    20,000       22,236,400  

Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 5.25%, 01/01/27

    5,000       5,855,750  

South Jersey Transportation Authority, Refunding RB, Transportation System, Series A:

   

5.00%, 11/01/33

    500       538,680  

5.00%, 11/01/34

    500       536,795  

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

   

5.00%, 06/01/30

    16,740       19,152,067  

5.00%, 06/01/32

    8,270       9,291,345  

Township of Irvington New Jersey, GO, Refunding, Series A (AGM):

   

5.00%, 07/15/30

    2,000       2,248,780  

5.00%, 07/15/31

    1,450       1,628,016  
   

 

 

 
    279,946,222  
New Mexico — 1.0%  

New Mexico Educational Assistance Foundation, RB, Education Loan, AMT:

   

Series A-1, 3.75%, 09/01/31

    6,250       6,407,687  

Series A-2, 3.80%, 11/01/32

    5,850       5,980,748  

Series A-2, 3.80%, 09/01/33

    5,000       5,100,400  
   

 

 

 
    17,488,835  
New York — 4.5%  

Build NYC Resource Corp., Refunding RB, Pratt Paper, Inc. Project, AMT, 4.50%, 01/01/25(b)

    900       966,015  

County of Nassau New York, GOL, Series A (AGM):

   

5.00%, 04/01/34

    4,165       4,816,739  

5.00%, 04/01/35

    4,385       5,052,222  
 

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

Metropolitan Transportation Authority, Refunding RB:

   

Green Bond, Series C-1, 5.00%, 11/15/34

  $ 10,000     $ 11,383,300  

CAB, Series A, 0.00%, 11/15/30(a)

    23,000       15,768,570  

Green Bond, CAB, Series C-2, 0.00%, 11/15/32(a)

    19,315       11,925,467  

New York City Housing Development Corp., RB, M/F Housing, Series C-4, 1.48%, 05/01/57(d)

    3,900       3,900,000  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Sub-Series B-1, 5.00%, 08/01/30

    5,150       6,125,204  

New York Transportation Development Corp., RB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT:

   

4.00%, 07/01/32

    5,500       5,631,560  

4.00%, 07/01/33

    6,000       6,122,760  

New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31

    3,465       3,591,334  
   

 

 

 
    75,283,171  
North Carolina — 0.3%  

North Carolina Medical Care Commission, Refunding RB, Mission Health Combined Group:

   

5.00%, 10/01/32

    3,700       3,711,433  

4.00%, 10/01/33

    1,500       1,504,845  
   

 

 

 
    5,216,278  
Ohio — 1.1%  

County of Butler Ohio, Refunding RB, UC Health:

   

5.00%, 11/15/30

    1,225       1,420,008  

5.00%, 11/15/31

    2,500       2,877,100  

5.00%, 11/15/32

    2,200       2,520,892  

County of Franklin Ohio, RB, Health Care Facilities Improvement, OPRS Communities, Series A:

   

5.25%, 07/01/28

    500       503,265  

5.63%, 07/01/32

    1,000       1,007,630  

County of Hamilton Ohio Sales Tax Revenue, Refunding RB, Series A, 5.00%, 12/01/30

    4,500       5,251,635  

Ohio Air Quality Development Authority, Refunding RB, AMT, 3.95%, 11/01/32(d)(f)(g)

    1,500       1,192,500  

State of Ohio, RB, Portsmouth Bypass Project, AMT (AGM):

   

5.00%, 12/31/29

    1,625       1,832,252  

5.00%, 12/31/30

    2,400       2,695,608  
   

 

 

 
    19,300,890  
Oklahoma — 0.8%  

Norman Regional Hospital Authority, Refunding RB:

   

5.00%, 09/01/27

    2,100       2,428,839  

5.00%, 09/01/28

    2,000       2,301,360  

5.00%, 09/01/29

    2,150       2,461,320  

5.00%, 09/01/30

    5,130       5,839,120  
   

 

 

 
    13,030,639  
Oregon — 0.5%  

Oregon Health & Science University, Refunding RB, Series B, 5.00%, 07/01/35

    7,390       8,438,863  
   

 

 

 
Pennsylvania — 20.6%  

Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project(b):

   

5.00%, 05/01/23

    640       675,949  

5.00%, 05/01/28

    835       911,478  

Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:

   

5.00%, 05/01/27

    6,750       7,112,475  

5.00%, 05/01/28

    5,000       5,254,300  

5.00%, 05/01/29

    3,745       3,922,550  

5.00%, 05/01/30

    5,300       5,533,094  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

Chester County Health & Education Facilities Authority, Refunding RB, Series A:

   

Main Line Health System, 5.00%, 10/01/31

  $ 1,350     $ 1,579,163  

Main Line Health System, 5.00%, 10/01/32

    1,450       1,688,859  

Main Line Health System, 5.00%, 10/01/33

    2,300       2,669,311  

Simpson Senior Services Project, 5.00%, 12/01/30

    2,180       2,216,384  

City of Philadelphia Pennsylvania, GO, Refunding:

   

(AGM), 4.00%, 08/01/32

    6,000       6,286,140  

(AGM), 5.00%, 08/01/30

    9,235       10,751,849  

Series A, 5.00%, 08/01/30

    4,500       5,165,865  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

   

5.00%, 06/01/30

    3,500       4,053,245  

5.00%, 06/01/32

    6,000       6,838,560  

Commonwealth of Pennsylvania, GO, Refunding, , 1st Series, 4.00%, 01/01/30

    7,000       7,501,690  

County of Allegheny Hospital Development Authority, Refunding RB, Allegheny Health Network Obligated Group Issue, Series A:

   

5.00%, 04/01/31

    3,075       3,516,508  

5.00%, 04/01/34

    3,345       3,751,819  

5.00%, 04/01/35

    1,000       1,115,790  

County of Beaver Pennsylvania IDA, Refunding RB, First Energy Nuclear Energy Project, Series A, 4.00%, 01/01/35(d)(f)(g)

    9,765       7,763,175  

County of Berks IDA, Refunding RB, Tower Health Project:

   

5.00%, 11/01/29

    2,000       2,310,480  

5.00%, 11/01/30

    2,000       2,290,580  

5.00%, 11/01/34

    2,500       2,810,225  

5.00%, 11/01/35

    3,325       3,718,879  

County of Chester IDA, Woodlands At Graystone Project, 4.38%, 03/01/28(b)

    265       260,802  

County of Cumberland Pennsylvania Municipal Authority, Refunding RB, Diakon Lutheran Social Ministries Project:

   

5.00%, 01/01/29

    1,300       1,414,075  

5.00%, 01/01/30

    2,675       2,897,801  

5.00%, 01/01/32

    1,510       1,640,162  

County of Dauphin General Authority, Refunding RB, Pinnacle Health System Project, Series A, 4.00%, 06/01/31

    2,275       2,385,337  

County of Delaware Authority, Refunding RB, Cabrini University:

   

5.00%, 07/01/26

    1,180       1,314,957  

5.00%, 07/01/28

    800       888,576  

5.00%, 07/01/29

    1,365       1,504,626  

5.00%, 07/01/30

    1,435       1,569,790  

County of Delaware Pennsylvania Authority, Refunding RB, Villanova University, 4.00%, 12/01/31

    1,000       1,075,030  

County of Lancaster Hospital Authority, Refunding RB, University of Pennsylvania Health System Obligation, Series A, 3.00%, 08/15/30

    2,535       2,532,541  

County of Montgomery Higher Education & Health Authority, Refunding RB, Thomas Jefferson University:

   

5.00%, 09/01/31

    1,750       2,037,788  

5.00%, 09/01/32

    1,315       1,519,417  

County of Montgomery Pennsylvania IDA, Refunding RB:

   

Acts Retirement-Life Communities, Inc. Obligated Group, 5.00%, 11/15/26

    2,500       2,673,575  

Albert Einstein Healthcare Network, Series A, 5.25%, 01/15/29

    3,250       3,621,182  

Albert Einstein Healthcare Network, Series A, 5.25%, 01/15/30

    6,185       6,863,062  
 

 

 

24    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Pennsylvania (continued)  

Whitemarsh Continuing Care Retirement Community Project, 5.00%, 01/01/30

  $ 2,000     $ 1,999,900  

County of Northampton Pennsylvania General Purpose Authority, RB, St. Luke’s Hospital of Bethlehem, Series A, 5.00%, 08/15/33

    12,660       13,608,361  

County of Northampton Pennsylvania General Purpose Authority, Refunding RB, Lafayette College, 5.00%, 11/01/34

    5,400       6,251,796  

County of Westmoreland Municipal Authority, Refunding RB, (BAM):

   

5.00%, 08/15/27

    1,500       1,741,305  

5.00%, 08/15/30

    4,000       4,663,640  

5.00%, 08/15/31

    17,010       19,678,359  

5.00%, 08/15/32

    17,945       20,657,566  

Geisinger Authority, Refunding RB, Geisinger Health System, Series A-2:

   

5.00%, 02/15/32

    4,000       4,619,600  

5.00%, 02/15/34

    1,750       1,998,115  

Pennsylvania Economic Development Financing Authority, RB:

   

PA Bridges Finco LP, AMT, 5.00%, 12/31/34

    16,500       18,045,555  

Pennsylvania Bridge Finco LP, 5.00%, 12/31/29

    5,000       5,603,100  

Pennsylvania Rapid Bridge Replacement Project, AMT, 5.00%, 12/31/30

    13,100       14,579,514  

Pennsylvania Economic Development Financing Authority, Refunding RB, University of Pittsburgh Medical Center:

   

5.00%, 03/15/30

    5,250       6,052,462  

5.00%, 03/15/31

    4,500       5,141,340  

Pennsylvania Higher Educational Facilities Authority, RB, Series AT-1, 5.00%, 06/15/30

    7,910       9,094,522  

Pennsylvania Higher Educational Facilities Authority, Refunding RB:

   

Drexel University, 5.00%, 05/01/30

    425       485,286  

Drexel University, 5.00%, 05/01/31

    1,000       1,134,140  

Drexel University, 5.00%, 05/01/32

    1,750       1,974,998  

Drexel University, 5.00%, 05/01/33

    3,320       3,733,074  

Drexel University, 5.00%, 05/01/35

    1,000       1,113,430  

La Salle University, 4.00%, 05/01/32

    3,000       2,966,400  

Pennsylvania Housing Finance Agency, Refunding RB, Series 125-A, AMT, 3.40%, 10/01/32

    9,000       8,749,890  

Pennsylvania Turnpike Commission, RB, Sub-Series B-1:

   

5.00%, 06/01/31

    3,000       3,391,800  

5.00%, 06/01/32

    4,075       4,575,491  

5.00%, 06/01/33

    4,000       4,469,680  

Pennsylvania Turnpike Commission, Refunding RB:

   

Motor License Fund, Enhanced Turnpike, 5.00%, 12/01/30

    5,000       5,715,100  

Subordinate, Series B-2 (AGM), 5.00%, 06/01/34

    5,000       5,664,700  

Turnpike Subordinate Revenue, Second Series, 5.00%, 12/01/32

    1,000       1,125,120  

Turnpike Subordinate Revenue, Second Series, 5.00%, 12/01/33

    1,815       2,036,194  

Turnpike Subordinate Revenue, Second Series, 5.00%, 12/01/34

    1,500       1,675,530  

Turnpike Subordinate Revenue, Second Series, 5.00%, 12/01/35

    2,005       2,231,545  

Philadelphia Gas Works Co., Refunding RB, General Ordinance, Series 14-T, 5.00%, 10/01/30

    425       485,881  

State Public School Building Authority, RB, School District of Philadelphia Project:

   

5.00%, 04/01/27

    4,130       4,401,382  

5.00%, 04/01/28

    8,000       8,500,720  

5.00%, 04/01/29

    6,000       6,362,520  

5.00%, 04/01/30

    5,500       5,816,965  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

Township of East Hempfield Pennsylvania IDA, RB, Student Services, Inc. Student Housing Project:

   

5.00%, 07/01/30

  $ 825     $ 887,618  

5.00%, 07/01/30

    1,280       1,351,872  

Wayne County Hospital & Health Facilities Authority, RB, Wayne Memorial Hospital Project, Series A:

   

5.00%, 07/01/31

    460       533,099  

4.00%, 07/01/33

    440       459,483  
   

 

 

 
    347,214,142  
Rhode Island — 1.6%  

Rhode Island Health & Educational Building Corp., RB, Hospital Financing, LifeSpan Obligation, 5.00%, 05/15/30

    1,500       1,674,045  

Rhode Island Housing & Mortgage Finance Corp., RB, S/F Housing, Homeownership Opportunity Bonds, Series 68-B, 3.00%, 10/01/31

    13,500       13,110,660  

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

   

5.00%, 06/01/28

    2,750       2,967,525  

5.00%, 06/01/29

    4,500       4,829,625  

5.00%, 06/01/30

    4,215       4,496,773  
   

 

 

 
    27,078,628  
South Carolina — 0.7%  

South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A, 5.00%, 05/01/35

    10,000       11,200,300  
   

 

 

 
Tennessee — 0.5%  

Chattanooga-Hamilton County Hospital Authority, Refunding RB, Erlanger Health System, Series A, 5.00%, 10/01/31

    6,210       6,784,115  

Counties of Nashville & Davidson Tennessee Metropolitan Government Health & Educational Facilities Board, RB, Vanderbilt University Medical Center, Series A, 5.00%, 07/01/31

    1,300       1,466,010  

County of Memphis-Shelby Industrial Development Board, Refunding, Tax Allocation Bonds, Graceland Project, Series A, 4.75%, 07/01/27

    605       630,089  
   

 

 

 
    8,880,214  
Texas — 16.7%  

Central Texas Regional Mobility Authority, RB, Senior Lien, Series A:

   

5.00%, 01/01/30

    1,600       1,804,144  

5.00%, 01/01/31

    1,175       1,316,870  

5.00%, 01/01/33

    1,500       1,667,205  

Central Texas Turnpike System, Refunding RB, Series C:

   

5.00%, 08/15/32

    12,500       13,583,125  

5.00%, 08/15/33

    14,000       15,160,040  

City of Houston Texas Airport System, Refunding ARB, United Airlines, Inc. Terminal E Project, AMT, 5.00%, 07/01/29

    2,665       2,906,955  

City of Houston Texas Airport System Revenue, Refunding RB:

   

Series B-2, AMT, 5.00%, 07/15/20

    5,970       6,150,592  

Series D, 5.00%, 07/01/33

    7,000       8,221,570  

City of Houston Texas Combined Utility System Revenue, Refunding RB, First Lien, Series B:

   

5.25%, 11/15/33

    10,000       11,732,300  

5.00%, 11/15/34

    7,315       8,421,759  

Clifton Higher Education Finance Corp., RB, Idea Public Schools, 6.00%, 08/15/33

    1,650       1,858,956  
 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

Clifton Higher Education Finance Corp., Refunding RB, Series A:

   

Idea Public Schools (PSF-GTD), 4.00%, 08/15/31

  $ 1,250     $ 1,338,038  

Idea Public Schools (PSF-GTD), 4.00%, 08/15/33

    1,200       1,262,136  

Uplift Education, 3.10%, 12/01/22

    630       621,256  

Uplift Education, 3.95%, 12/01/32

    1,800       1,745,730  

County of Harris Texas, Refunding RB, Toll Road, Senior Lien, Series C, 4.00%, 08/15/33

    12,325       12,886,404  

County of Harris Texas Cultural Education Facilities Finance Corp., RB, 1st Mortgage, Brazos Presbyterian Homes, Inc. Project, Series B:

   

5.75%, 01/01/28

    500       539,415  

6.38%, 01/01/33

    460       504,726  

County of Harris Texas Cultural Education Facilities Finance Corp., Refunding RB, Series A:

   

Brazos Presbyterian Homes, Inc. Project, 5.00%, 01/01/33

    1,090       1,115,953  

YMCA of the Greater Houston Area, 5.00%, 06/01/28

    1,150       1,209,191  

YMCA of the Greater Houston Area, 5.00%, 06/01/33

    3,000       3,125,160  

County of Matagorda Texas Navigation District No. 1, Refunding RB:

   

Series A (AMBAC), 4.40%, 05/01/30

    31,120       33,284,396  

Series B (AMBAC), AMT, 4.55%, 05/01/30

    10,000       10,586,500  

Series B-2, 4.00%, 06/01/30

    12,995       13,353,532  

County of Midland Texas Fresh Water Supply District No. 1, RB, CAB, City of Midland Project, Series A(a):

   

0.00%, 09/15/31

    6,235       4,012,472  

0.00%, 09/15/32

    15,135       9,254,598  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB:

   

Christus Health, Series B, 5.00%, 07/01/35

    6,000       6,796,260  

Baylor Health Care System Project, Series A, 4.00%, 11/15/31

    5,500       5,661,150  

Baylor Health Care System Project, Series A, 4.00%, 11/15/32

    15,420       15,815,986  

County of Tarrant Texas Cultural Education Facilities Finance Corp., Refunding RB, Trinity Terrace Project, Series A-1, 5.00%, 10/01/29

    1,000       1,063,670  

Leander ISD, GO, CAB, Refunding, Series D
(PSF-GTD)(a):

   

0.00%, 08/15/31

    1,200       757,152  

0.00%, 08/15/32

    2,000       1,199,440  

0.00%, 08/15/33

    4,485       2,557,616  

Mission EDC, Refunding RB, Senior Lien, NatGasoline Project, AMT, 4.63%, 10/01/31(b)

    4,125       4,206,056  

New Hope Cultural Education Facilities Corp., RB, Series A:

   

Station 1 LLC Texas A&M University Project, 5.00%, 04/01/29

    2,290       2,426,324  

Stephenville LLC Tarleton State University Project, 5.38%, 04/01/28

    1,150       1,238,251  

Stephenville LLC Tarleton State University Project, 5.00%, 04/01/29

    725       775,177  

New Hope Cultural Education Facilities Corp., Refunding RB, 1st Mortgage, Morningside Ministries Project, 6.25%, 01/01/33

    1,600       1,732,608  

New Hope Cultural Education Facilities Finance Corp., RB, Jubilee Academic Center Project, Series A(b):

   

3.63%, 08/15/22

    295       292,251  

4.25%, 08/15/27

    450       446,184  
Security   Par
(000)
    Value  
Texas (continued)  

North Texas Tollway Authority, Refunding RB, 1st Tier, Series A, 5.00%, 01/01/35

  $ 5,750     $ 6,541,142  

Red River Health Facilities Development Corp., RB, Wichita Falls Retirement Foundation Project:

   

4.70%, 01/01/22

    400       411,108  

5.50%, 01/01/32

    1,000       1,031,610  

Socorro Independent School District, GO, Refunding, Series B, 4.00%, 08/15/34

    3,000       3,198,690  

Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements:

   

5.00%, 12/15/30

    13,000       13,931,580  

5.00%, 12/15/31

    25,000       26,716,250  

Texas Public Finance Authority, Refunding RB, Midwestern State University:

   

4.00%, 12/01/30

    2,000       2,119,860  

4.00%, 12/01/31

    1,650       1,737,169  

Texas Transportation Commission State Highway Fund, Refunding RB, 1st Tier, 5.00%, 10/01/22

    5,000       5,575,200  

University of Texas System, Refunding RB, Financing System, Series C, 5.00%, 08/15/20

    7,410       7,783,612  
   

 

 

 
    281,677,369  
Virginia — 0.8%  

County of Fairfax Virginia EDA, RB, Vinson Hall LLC, Series A, 5.00%, 12/01/32

    2,000       2,105,700  

County of Hanover Virginia EDA, Refunding RB, Covenant Woods, Series A:

   

4.50%, 07/01/30

    3,000       3,026,310  

4.50%, 07/01/32

    1,100       1,106,171  

Dulles Town Center Community Development Authority, Refunding, Special Assessment, Dulles Town Center Project, 4.25%, 03/01/26

    500       495,765  

Virginia College Building Authority, RB, Green Bonds, Marymount University Project, Series B,
5.25%, 07/01/30(b)

    2,000       2,133,040  

Virginia Small Business Financing Authority, RB, Senior Lien, Express Lanes LLC, AMT, 5.00%, 07/01/34

    3,940       4,135,345  
   

 

 

 
    13,002,331  
Washington — 2.3%  

Grant & Douglas Counties School District No. 144-101 Quincy, GO, 4.00%, 12/01/34

    7,475       7,937,777  

Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A:

   

5.00%, 09/01/27

    1,000       1,017,960  

5.25%, 09/01/32

    1,850       1,875,160  

Port of Seattle Washington, Refunding RB, Interemediate Lien, AMT, Series C, 5.00%, 05/01/34

    6,000       6,776,700  

Port of Seattle Washington Industrial Development Corp., Refunding RB, Special Facilities, Delta Airline, Inc. Project, AMT, 5.00%, 04/01/30

    5,000       5,361,700  

Washington Biomedical Research Properties 3.2, RB, Series A:

   

5.00%, 01/01/31

    1,000       1,153,560  

5.00%, 01/01/32

    1,140       1,310,681  

Washington Health Care Facilities Authority, Refunding RB, MultiCare Health System, Series B, 5.00%, 08/15/35

    9,485       10,822,764  

Washington State Housing Finance Commission, Refunding RB, Emerald Heights Project:

   

5.00%, 07/01/28

    1,000       1,091,190  

5.00%, 07/01/33

    1,100       1,180,311  
   

 

 

 
    38,527,803  
 

 

 

26    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
West Virginia — 0.2%  

West Virginia Hospital Finance Authority, RB, West Virginia University Health System, Series A:

   

5.00%, 06/01/31

  $ 1,950     $ 2,215,337  

5.00%, 06/01/33

    1,100       1,232,561  
   

 

 

 
    3,447,898  
Wisconsin — 2.2%  

Public Finance Authority, Refunding RB, AMT:

   

National Gypsum Co., 5.25%, 04/01/30

    6,690       7,002,958  

Waste Management, Inc. Project, 2.63%, 11/01/25

    3,000       2,940,720  

Wisconsin Airport Facilities, Senior Obligated Group, Series B, 5.25%, 07/01/28

    2,250       2,426,422  

Wisconsin Health & Educational Facilities Authority, Refunding RB:

   

Advocate Aurora Health Credit Group, Series C-4, 2.16%, 08/15/54(d)

    8,200       8,205,576  

Marquette University, 4.00%, 10/01/32

    4,520       4,684,890  

Milwaukee Regional Medical Center Thermal Service, Inc., 5.00%, 04/01/35

    2,500       2,893,750  

Wisconsin Housing & Economic Development Authority, Refunding RB, S/F Housing, Series D, 3.00%, 09/01/32

    9,000       8,715,960  
   

 

 

 
    36,870,276  
   

 

 

 

Total Municipal Bonds — 129.9%
(Cost — $2,153,423,403)

 

    2,189,763,635  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(h)

 

Colorado — 4.9%

 

City & County of Denver Colorado, Refunding ARB, Department of Aviation, Series A, AMT:

   

4.25%, 11/15/29(i)

    33,820       35,355,627  

4.25%, 11/15/30

    35,210       36,808,741  

4.25%, 11/15/31

    8,085       8,452,106  

4.25%, 11/15/32

    2,230       2,331,255  
   

 

 

 
    82,947,729  
Florida — 5.8%  

County of Broward Florida, ARB, Series Q-1:

   

4.00%, 10/01/29(i)

    17,200       17,769,692  

4.00%, 10/01/30

    18,095       18,694,335  

4.00%, 10/01/31

    18,820       19,443,348  

4.00%, 10/01/32

    19,575       20,223,355  

4.00%, 10/01/33

    20,355       21,029,190  
   

 

 

 
    97,159,920  
Iowa — 2.6%  

Iowa State Board of Regents, RB, University of Iowa Hospitals & Clinics:

   

4.00%, 09/01/28

    3,375       3,533,458  

4.00%, 09/01/29

    6,524       6,831,352  

4.00%, 09/01/30

    6,324       6,621,962  

4.00%, 09/01/31

    8,649       9,056,122  

4.00%, 09/01/32

    7,749       8,113,866  

4.00%, 09/01/33

    9,374       9,815,161  
   

 

 

 
    43,971,921  
Nevada — 1.1%  

Clark County Nevada, 4.00%, 11/01/34

    17,710       18,674,049  
   

 

 

 
Pennsylvania — 2.8%  

Commonwealth of Pennsylvania, GO, 1st Series, 5.00%, 03/01/32(i)

    20,000       23,167,500  

Lehigh County Pennsylvania General Purpose Hospital, 4.00%, 07/01/33

    22,285       22,946,641  
   

 

 

 
    46,114,141  
Security   Par
(000)
    Value  
Texas — 9.4%  

City of San Antonio Texas Public Facilities Corp., Refunding LRB, Convention Center Refinancing & Expansion Project:

   

4.00%, 09/15/30

  $ 15,000     $ 15,586,312  

4.00%, 09/15/31

    19,475       20,236,229  

4.00%, 09/15/32

    18,075       18,781,507  

4.00%, 09/15/33(i)

    11,000       11,429,962  

4.00%, 09/15/34

    11,885       12,349,555  

4.00%, 09/15/35

    4,500       4,675,894  

Dallas Fort Worth International Airport, Refunding RB, AMT:

   

Series E, 4.00%, 11/01/32

    6,915       7,186,025  

Series E, 4.13%, 11/01/35(i)

    10,435       10,843,987  

Series F, 5.00%, 11/01/29

    12,820       13,322,464  

Series F, 5.00%, 11/01/30

    15,565       16,175,050  

Series F, 5.00%, 11/01/31

    10,000       10,391,937  

Series F, 5.00%, 11/01/32

    17,170       17,842,956  
   

 

 

 
    158,821,878  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 26.6%
(Cost — $438,353,316)

 

    447,689,638  
   

 

 

 

Total Long-Term Investments — 156.5%
(Cost — $2,591,776,719)

 

    2,637,453,273  

Other Assets Less Liabilities — 3.6%

 

    60,824,633  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (15.6)%

 

    (263,062,037

RVMTP Shares at Liquidation Value,Net of Deferred Offering
Costs — (44.5)%

 

    (749,627,142
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 1,685,588,727  
   

 

 

 

 

(a) 

Zero-coupon bond.

(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) 

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.

(d) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(e) 

Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

(f) 

Non-income producing security.

(g) 

Issuer filed for bankruptcy and/or is in default.

(h) 

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.

(i) 

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 agreement, which expires between May 1, 2020 to March 1, 2026, is $221,778,857. See Note 4 of the Notes to Financial Statements for details.

 

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

 

During the period ended January 31, 2019, investments in issuers considered to be an affiliate 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
07/31/18
     Net
Activity
     Shares
Held at
01/31/19
     Value at
01/31/19
     Income      Net
Realized
Gain (Loss) 
(a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     26,798,334        (26,798,334           $      $ 110,411      $ 2,607      $ (2,680
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

Fair Value Hierarchy as of Period End

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

The following tables summarize the Trust’s investments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                 

Investments:

                 

Long-Term Investments(a)

   $             —        $ 2,637,453,273        $             —        $ 2,637,453,273  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 

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  

Liabilities:

 

TOB Trust Certificates

   $        $ (261,819,915      $        $ (261,819,915

RVMTP Shares at Liquidation Value

              (750,000,000                 (750,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (1,011,819,915      $             —        $ (1,011,819,915
  

 

 

      

 

 

      

 

 

      

 

 

 

During the period ended January 31, 2019, there were no transfers between levels.

See notes to financial statements.

 

 

28    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited)

January 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 112.1%

 

Alabama — 0.3%  

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

  $ 420     $ 451,412  
   

 

 

 
Arizona — 1.3%  

Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.38%, 07/01/50(a)

    1,185       1,215,123  

City of Phoenix Arizona IDA, Refunding RB, Basis Schools, Inc. Projects, Series A, 5.00%, 07/01/35(a)

    275       281,493  

County of Maricopa IDA, Refunding RB, Honorhealth, Series A, 4.13%, 09/01/38

    320       324,419  
   

 

 

 
      1,821,035  
California — 14.5%  

California Health Facilities Financing Authority, Refunding RB, Series A:

   

Adventist Health System/West, 4.00%, 03/01/39

    980       998,747  

Catholic Healthcare West, 6.00%, 07/01/19(b)

    1,010       1,028,241  

California School Finance Authority, RB, Alliance For College-Ready Public School Projects, Series A, 5.00%, 07/01/51(a)

    1,200       1,247,256  

California Statewide Communities Development Authority, RB, Lancer Educational student Housing Project, Series A, 5.00%, 06/01/46(a)

    1,220       1,288,796  

California Statewide Communities Development Authority, Refunding RB, Lancer Educational student Housing Project, Series A, 5.00%, 06/01/36(a)

    990       1,058,755  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.25%, 06/01/47

    475       467,367  

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

    1,185       1,374,019  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series J:

   

5.25%, 05/15/23(b)

    2,165       2,490,616  

5.25%, 05/15/38

    615       686,937  

State of California, GO, Various Purposes, 6.00%, 03/01/33

    1,960       2,051,316  

State of California Public Works Board, LRB, Various Capital Projects, Series I:

   

5.50%, 11/01/31

    2,100       2,394,084  

5.50%, 11/01/33

    1,500       1,705,005  

State of California Public Works Board, RB, Department of Corrections & Rehabilitation, Series F, 5.25%, 09/01/33

    610       684,048  

Tobacco Securitization Authority of Southern California, Refunding RB, Tobacco Settlement, Asset-Backed, Senior Series A-1, 5.00%, 06/01/37

    2,025       2,025,000  

Township of Washington California Health Care District, GO, Election of 2004, Series B, 5.50%, 08/01/40

    460       533,729  
   

 

 

 
      20,033,916  
Colorado — 3.3%  

Centerra Metropolitan District No. 1, Tax Allocation Bonds, 5.00%, 12/01/47(a)

    250       250,125  

City & County of Denver Colorado, RB, Capital Appreciation Bonds Series, Series A-2, 0.00%, 08/01/38(c)

    1,000       457,570  

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

    1,750       1,969,712  

Colorado Health Facilities Authority, Refunding RB, Series A:

   

Catholic Health Initiative, 5.50%, 07/01/34

    1,675       1,698,953  

Frasier Meadows Retirement Community Project, 5.25%, 05/15/37

    210       225,122  
   

 

 

 
      4,601,482  
Connecticut — 0.3%  

Connecticut Housing Finance Authority, Refunding RB, S/F Housing, Sub-Series B-1, 4.00%, 05/15/45

    460       462,038  
   

 

 

 
Security   Par
(000)
    Value  
Florida — 6.2%  

Celebration Pointe Community Development District, Special Assessment Bonds, County of Alachua Florida(a):

   

5.00%, 05/01/32

  $ 225     $ 233,689  

5.00%, 05/01/48

    555       556,815  

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

    5,675       6,492,030  

Lakewood Ranch Stewardship District, Special Assessment Bonds, Lakewood National & Polo Run Projects:

   

5.25%, 05/01/37

    180       185,942  

5.38%, 05/01/47

    185       190,380  

Reedy Creek Florida Improvement District, GO, Series A, 5.25%, 06/01/32

    875       986,431  
   

 

 

 
      8,645,287  
Idaho — 0.4%  

Idaho Health Facilities Authority, Refunding RB, St. Luke’s Health System Project, Series A, 4.00%, 03/01/43

    15       14,749  

Idaho State Building Authority, RB, Department of Health And Welfare Project, 4.00%, 09/01/48

    555       563,009  
   

 

 

 
      577,758  
Illinois — 20.3%  

Chicago Board of Education, GO, Series C:

   

Dedicated Revenues, Series H, 5.00%, 12/01/46

    215       215,899  

Project, 5.25%, 12/01/35

    700       722,974  

Chicago Board of Education, GO, Refunding:

   

Dedicated Revenues, 5.00%, 12/01/27

    400       422,768  

Dedicated Revenues, Series G, 5.00%, 12/01/34

    215       222,269  

5.00%, 12/01/25

    295       311,729  

Chicago Board of Education, GO, Series D:

   

5.00%, 12/01/46

    245       246,495  

5.00%, 12/01/46

    635       637,115  

Refunding Dedicated Revenues, Series F, 5.00%, 12/01/23

    290       304,021  

City of Chicago Illinois O’Hare International Airport, GARB, 3rd Lien, Series C, 6.50%, 01/01/21(b)

    4,545       4,954,641  

City of Chicago Illinois Transit Authority, RB:

   

5.25%, 12/01/31

    560       594,014  

Sales Tax Receipts, 5.25%, 12/01/36

    1,500       1,584,855  

Sales Tax Receipts, 5.25%, 12/01/40

    1,750       1,839,320  

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

   

5.50%, 12/01/38

    580       604,609  

5.25%, 12/01/43

    2,660       2,739,667  

Illinois Finance Authority, RB, Carle Foundation, Series A, 6.00%, 08/15/41

    1,750       1,902,425  

Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A, 6.00%, 08/15/19(b)

    2,900       2,965,569  

Metropolitan Pier & Exposition Authority, RB, Series A, McCormick Place Expansion Project:

   

Bonds, 0.00%, 12/15/56(c)

    2,165       328,972  

Bonds, 5.00%, 06/15/57

    590       606,555  

5.50%, 06/15/53

    280       297,889  

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project:

   

Bonds, Series B, 0.00%, 12/15/54(c)

    3,020       508,810  

Series B-2, 5.00%, 06/15/50

    150       150,383  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    1,055       1,143,968  

6.00%, 06/01/21

    300       328,701  

State of Illinois, GO:

   

5.25%, 02/01/31

    730       764,865  

5.25%, 02/01/32

    1,500       1,566,825  

5.50%, 07/01/33

    1,500       1,582,605  

5.50%, 07/01/38

    340       354,824  
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

State of Illinois, GO, Refunding, Series B, 5.00%, 10/01/27

  $ 225     $ 244,060  
   

 

 

 
      28,146,827  
Indiana — 1.3%  

County of Allen Indiana, RB, StoryPoint Fort Wayne Project, Series A-1(a):

   

6.63%, 01/15/34

    125       131,001  

6.75%, 01/15/43

    185       193,542  

6.88%, 01/15/52

    375       393,071  

Indiana Finance Authority, Refunding RB, Marquette Project, 4.75%, 03/01/32

    500       505,825  

Town of Chesterton Indiana, RB, StoryPoint Chesterton Project, Series A-1, 6.38%, 01/15/51(a)

    520       529,204  
   

 

 

 
      1,752,643  
Iowa — 1.2%  

Iowa Finance Authority, Refunding RB, Iowa Fertilizer Co. Project:

   

Series B, 5.25%, 12/01/50 (d)

    905       962,721  

Midwestern Disaster Area, 5.50%, 12/01/22

    5       5,005  

Midwestern Disaster Area, 5.25%, 12/01/25

    625       662,312  
   

 

 

 
      1,630,038  
Kansas — 2.2%  

City of Lenexa Kansas, Refunding RB, Lakeview Village, Inc., Series A, 5.00%, 05/15/43

    475       482,690  

Kansas Development Finance Authority, Refunding RB, Adventist Health System:

   

5.50%, 11/15/19(b)

    55       56,534  

5.50%, 11/15/29

    2,445       2,510,477  
   

 

 

 
      3,049,701  
Louisiana — 1.5%  

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

    1,095       1,165,463  

Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A, 5.50%, 05/15/29

    915       922,723  
   

 

 

 
      2,088,186  
Maine — 0.5%  

Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 07/01/32

    680       745,076  
   

 

 

 
Maryland — 0.7%  

City of Baltimore Maryland, Refunding RB, East Baltimore Research Park, Series A, 4.50%, 09/01/33

    135       137,888  

Maryland Community Development Administration, Refunding RB, S/F Housing, Series A, 4.10%, 09/01/38

    770       783,929  
   

 

 

 
      921,817  
Massachusetts — 2.5%  

Massachusetts Development Finance Agency, RB:

   

Emerson College Issue, Series A, 5.00%, 01/01/47

    790       846,398  

UMass Boston Student Housing Project, 5.00%, 10/01/41

    500       527,610  

UMass Boston Student Housing Project, 5.00%, 10/01/48

    875       918,033  

Massachusetts Development Finance Agency, Refunding RB:

   

Emerson College Issue, 5.00%, 01/01/45

    375       395,554  

Trustees of Deerfield Academy, 5.00%, 10/01/40

    375       392,621  

Metropolitan Boston Transit Parking Corp., Refunding RB, 5.25%, 07/01/36

    300       320,247  
   

 

 

 
      3,400,463  
Michigan — 2.0%  

City of Lansing Michigan, RB, Board of Water & Light Utilities System, Series A, 5.50%, 07/01/41

    1,400       1,512,560  
Security   Par
(000)
    Value  
Michigan (continued)  

Grand Traverse County Hospital Finance Authority, RB, Munson Health Care Obligated Group, Series A, 5.00%, 07/01/44

  $ 1,110     $ 1,209,911  
   

 

 

 
      2,722,471  
Minnesota — 4.1%  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A:

   

4.00%, 11/15/48

    430       429,235  

5.00%, 11/15/49

    1,790       1,970,145  

Duluth EDA, Refunding RB, Essentia Health Obligated Group, Series A:

   

4.25%, 02/15/48

    2,665       2,676,886  

5.25%, 02/15/58

    560       616,627  
   

 

 

 
      5,692,893  
Montana — 0.1%  

City of Kalispell Montana, Refunding RB, Immanuel Lutheran Corporation Project, Series A, 5.25%, 05/15/37

    125       128,625  
   

 

 

 
Nevada — 4.0%  

City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 04/01/19(b)

    2,600       2,617,966  

County of Clark Nevada Airport System, ARB, Series B, 5.75%, 07/01/42

    2,825       2,913,846  
   

 

 

 
      5,531,812  
New Hampshire — 0.7%  

New Hampshire Health and Education Facilities Authority Act, RB, Dartmouth College Issue, 5.25%, 06/01/19(b)

    925       935,961  
   

 

 

 
New Jersey — 8.7%  

Casino Reinvestment Development Authority, Refunding RB, 5.25%, 11/01/39

    265       281,965  

New Jersey EDA, Refunding RB, School Facilities Construction, Series AA:

   

5.50%, 06/15/19(b)

    500       506,995  

5.50%, 12/15/29

    250       252,982  

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

    1,400       1,404,802  

New Jersey Transportation Trust Fund Authority, RB:

   

Transportation Program Bonds, Series S, 5.25%, 06/15/43

    1,145       1,235,455  

Transportation Program Bonds, Series S, 5.00%, 06/15/46

    1,045       1,097,240  

Transportation System, Series AA, 5.50%, 06/15/39

    2,245       2,380,351  

New Jersey Turnpike Authority, RB, Series A,
4.00%, 01/01/48(e)

    640       650,989  

Tobacco Settlement Financing Corp., Refunding RB:

   

Series A, 5.00%, 06/01/35

    630       694,065  

Series A, 5.00%, 06/01/46

    1,515       1,566,237  

Sub-Series B, 5.00%, 06/01/46

    1,965       1,956,747  
   

 

 

 
      12,027,828  
New York — 3.6%  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A,
6.25%, 06/01/41(a)

    900       920,673  

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:

   

5.75%, 02/15/21(b)

    1,005       1,087,360  

5.75%, 02/15/47

    615       660,535  

Metropolitan Transportation Authority, RB, Series A, 5.25%, 11/15/21(b)

    500       549,570  

New York Liberty Development Corp., Refunding RB, 2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

    1,480       1,536,728  

Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C, 4.00%, 06/01/42

    275       255,629  
   

 

 

 
      5,010,495  
 

 

 

30    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Ohio — 3.9%  

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior Turbo Term, Series A-2:

   

5.75%, 06/01/34

  $ 225     $ 210,265  

5.88%, 06/01/47

    1,000       928,690  

County of Allen Ohio Hospital Facilities Revenue, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 06/01/20(b)

    2,405       2,512,455  

Ohio Housing Finance Agency, RB, S/F Housing, Series A (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 09/01/48

    270       271,164  

State of Ohio Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1, 5.25%, 02/15/31

    1,385       1,541,976  
   

 

 

 
      5,464,550  
Oklahoma — 1.8%  

Oklahoma Development Finance Authority, RB:

   

OU Medicine Project, Series B, 5.25%, 08/15/48

    560       609,913  

Provident Oklahoma Education Resources, Inc., Cross Village Student Housing Project, Series A, 5.25%, 08/01/57

    1,110       1,034,542  

Tulsa County Industrial Authority, Refunding RB, Montereau, Inc. Project, 5.25%, 11/15/45

    850       914,277  
   

 

 

 
      2,558,732  
Oregon — 0.2%  

County of Clackamas Oregon School District No. 12 North Clackamas, GO, CAB, Series A, 0.00%, 06/15/38(c)

    575       265,466  
   

 

 

 
Pennsylvania — 4.1%  

Allentown Neighborhood Improvement Zone Development Authority, RB, City Center Project, 5.00%, 05/01/42(a)

    420       443,776  

Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 04/01/39

    800       805,168  

Pennsylvania Housing Finance Agency, RB, S/F Housing Mortgage, Series 123-B, 4.00%, 10/01/42

    990       991,901  

Pennsylvania Turnpike Commission, RB, Series A(b):

   

5.63%, 12/01/20

    1,200       1,283,808  

5.63%, 12/01/20

    445       476,079  

Township of Bristol Pennsylvania School District, GO, 5.25%, 06/01/37

    1,530       1,691,491  
   

 

 

 
      5,692,223  
Puerto Rico — 0.5%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43

    620       626,925  
   

 

 

 
Rhode Island — 2.0%  

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

   

4.50%, 06/01/45

    2,870       2,668,956  

5.00%, 06/01/50

    125       125,328  
   

 

 

 
      2,794,284  
South Carolina — 5.1%  

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

    1,825       2,062,360  

South Carolina Jobs EDA, Refunding RB, Prisma Health Obligated Group, Series A:

   

5.00%, 05/01/43

    950       1,035,766  

5.00%, 05/01/48

    565       613,262  

State of South Carolina Public Service Authority, RB, Series E, 5.50%, 12/01/53

    1,500       1,599,780  

State of South Carolina Public Service Authority, Refunding RB:

   

Series A, 5.00%, 12/01/50

    210       220,067  

Series A, 5.00%, 12/01/55

    465       486,237  

Series E, 5.25%, 12/01/55

    945       1,010,233  
   

 

 

 
      7,027,705  
Security   Par
(000)
    Value  
Texas — 9.8%  

Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.00%, 01/01/21(b)

  $ 2,560     $ 2,757,248  

City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 03/01/37

    1,140       1,266,791  

County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 08/15/20(b)

    2,710       2,882,329  

Lower Colorado River Authority, Refunding RB:

   

5.50%, 05/15/19(b)

    5       5,052  

5.50%, 05/15/19(b)

    80       80,838  

5.50%, 05/15/19(b)

    5       5,052  

5.50%, 05/15/33

    1,910       1,928,298  

North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 09/01/21(b)

    1,500       1,639,815  

North Texas Tollway Authority, Refunding RB,
4.25%, 01/01/49

    285       293,302  

Red River Texas Education Financing Corp., RB, Texas Christian University Project, 5.25%, 03/15/38

    520       578,375  

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

    2,005       2,081,010  
   

 

 

 
      13,518,110  
Virginia — 2.5%  

Ballston Quarter Community Development Authority, Tax Allocation Bonds, Series A:

   

5.00%, 03/01/26

    240       245,230  

5.13%, 03/01/31

    470       482,004  

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

    425       458,588  

County of Fairfax Virginia IDA, Refunding RB, Health Care-Inova Health(b):

   

5.50%, 05/15/19

    475       480,082  

5.50%, 05/15/19

    885       894,469  

Tobacco Settlement Financing Corp., Refunding RB, Senior Series B-1, 5.00%, 06/01/47

    1,010       953,046  
   

 

 

 
      3,513,419  
Washington — 1.0%  

Washington State Housing Finance Commission, Refunding RB, Horizon House Project, 5.00%, 01/01/48(a)

    1,405       1,456,030  
   

 

 

 
West Virginia — 0.5%  

City of Martinsburg West Virginia, RB, M/F Housing, Kings Daughters Apartments, Series A-1, 4.63%, 12/01/43

    570       554,781  

West Virginia Hospital Finance Authority, RB, Improvement, West Virginia University Health System Obligated Group, Series A, 4.00%, 06/01/51

    140       136,031  
   

 

 

 
      690,812  
Wisconsin — 1.0%  

Public Finance Authority, Refunding RB:

   

Mery’s Wood at Marylhurst Projects, 5.25%, 05/15/52(a)

    735       756,315  

Wingate University, Series A, 5.25%, 10/01/48

    590       621,482  
   

 

 

 
      1,377,797  
   

 

 

 

Total Municipal Bonds — 112.1%
(Cost — $149,135,746)

 

    155,363,817  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(f) — 55.8%

 

California — 18.5%

 

Fremont Union High School District, GO, Refunding Series A, 4.00%, 08/01/46

    1,840       1,913,940  

Grossmont California Union High School District, GO, Election of 2008, Series B, 5.00%, 08/01/20(b)

    3,700       3,889,181  
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
California (continued)  

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

  $ 600     $ 607,245  

Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 08/01/20(b)(g)

    4,041       4,259,863  

Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 08/01/19(b)

    5,978       6,109,010  

San Diego Public Facilities Financing Authority Water, RB, Series B, 5.50%, 08/01/19(b)

    6,448       6,573,690  

University of California, RB, Series O, 5.75%, 05/15/19(b)

    2,311       2,337,594  
   

 

 

 
      25,690,523  
District of Columbia — 2.3%  

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

    2,129       2,191,384  

District of Columbia Housing Finance Agency, RB, M/F Housing, Series B-2, 4.10%, 09/01/39

    1,051       1,064,547  
   

 

 

 
      3,255,931  
Georgia — 0.7%  

County of Dalton Whitfield Joint Development Authority, RB, Hamilton Health Care System Obligation, 4.00%, 08/15/48

    1,025       1,046,042  
   

 

 

 
Idaho — 1.4%  

Idaho State Building Authority, RB, State Office Campus Project, Series A, 4.00%, 09/01/48

    1,900       1,934,513  
   

 

 

 
Illinois — 1.0%  

State of Illinois Toll Highway Authority, RB, Series C, 5.00%, 01/01/38

    1,244       1,385,509  
   

 

 

 
Iowa — 1.2%  

Iowa Finance Authority, Refunding RB, UnityPoint Health, Series E, 4.00%, 08/15/46

    1,605       1,605,958  
   

 

 

 
Nevada — 1.5%  

County of Clark Nevada Water Reclamation District, GO, Series B, 5.50%, 07/01/19(b)

    1,994       2,025,944  
   

 

 

 
New Jersey — 1.9%  

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 06/15/36(g)

    2,481       2,585,346  
   

 

 

 
New York — 12.0%  

City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.15%, 11/01/38(e)

    2,070       2,137,441  

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

   

Series FF, 5.00%, 06/15/45

    2,499       2,705,005  

Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40

    2,985       3,024,999  

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

    3,375       3,663,783  

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

    1,980       2,166,505  

State of New York Dormitory Authority, ERB, Personal Income Tax, Series B, 5.25%, 03/15/19(b)

    3,000       3,012,690  
   

 

 

 
      16,710,423  
North Carolina — 0.8%  

North Carolina Housing Finance Agency, RB, S/F Housing, Series 39-B (Ginnie Mae, Fannie Mae & Freddie Mac), 4.00%, 01/01/48

    1,089       1,091,456  
   

 

 

 
Pennsylvania — 2.7%  

Pennsylvania Turnpike Commission, RB, Sub-Series A, 5.50%, 12/01/42

    1,514       1,732,036  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

Pennsylvania Turnpike Commission, Refunding RB, Sub Series B-2 (AGM), 5.00%, 06/01/35

  $ 1,830     $ 2,065,887  
   

 

 

 
      3,797,923  
Rhode Island — 1.6%  

Rhode Island Health & Educational Building Corp., RB, Series A, 4.00%, 09/15/47

    2,207       2,224,759  
   

 

 

 
Texas — 5.3%  

City of San Antonio Texas Public Service Board, Refunding RB, Series A, 5.25%, 02/01/19(b)(g)

    3,074       3,074,291  

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

    4,200       4,279,527  
   

 

 

 
      7,353,818  
Virginia — 1.3%  

Hampton Roads Transportation Accountability Commission, RB, Transportation Fund, Senior Lien, Series A, 5.50%, 07/01/57(g)

    1,473       1,746,519  
   

 

 

 
West Virginia — 1.2%  

Morgantown Utility Board, Inc., RB, Series B,
4.00%, 12/01/48(g)

    1,671       1,694,149  
   

 

 

 
Wisconsin — 2.4%  

Wisconsin Housing & Economic Development Authority, RB, M/F Housing, Series A:

   

4.10%, 11/01/43

    1,436       1,451,282  

4.45%, 05/01/57

    1,794       1,814,135  
   

 

 

 
      3,265,417  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 55.8%
(Cost — $75,889,310)

 

    77,414,230  
   

 

 

 

Total Long-Term Investments — 167.9%
(Cost — $225,025,056)

 

    232,778,047  
   

 

 

 
     Shares         

Short-Term Securities — 0.3%

 

BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.24%(h)(i)

    343,495       343,563  
   

 

 

 

Total Short-Term Securities — 0.3%
(Cost — $343,563)

 

    343,563  
   

 

 

 

Total Investments — 168.2%
(Cost — $225,368,619)

 

    233,121,610  

Other Assets Less Liabilities — 0.9%

 

    1,344,850  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (31.8)%

 

    (44,133,365

VRDP Shares at Liquidity Value, Net of Deferred Offering
Cost — (37.3)%

 

    (51,715,976
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 138,617,119  
 

 

 

 

 

(a) 

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.

(b) 

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.

(c) 

Zero-coupon bond.

(d) 

Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

(e) 

When-issued security.

 

 

 

32    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

 

(f) 

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.

(g) 

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 agreement, which expire between February 1, 2019 to December 1, 2030, is $10,613,837. See Note 4 of the Notes to Financial Statements for details.

(h) 

Annualized 7-day yield as of period end.

(i) 

During the period ended January 31, 2019, 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
07/31/18
     Net
Activity
     Shares
Held at
01/31/19
     Value at
01/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     569,880        (226,385      343,495      $ 343,563      $ 4,988      $ 78      $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes net capital gain distributions, if applicable.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts:

                 

10-Year U.S. Treasury Note

     11          03/20/19        $ 1,347        $ (23,266

Long U.S. Treasury Bond

     42          03/20/19          6,161          (282,711

5-Year U.S. Treasury Note

     8          03/29/19          919          (14,991
                 

 

 

 
                  $ (320,968
                 

 

 

 

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:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized depreciation(a)

   $      $      $      $      $ 320,968      $      $ 320,968  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Includes cumulative depreciation on 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 January 31, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 39,470      $      $ 39,470  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (339,127    $      $ (339,127
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

       

Average notional value of contracts — short

  $ 6,659,898  

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

 

 

SCHEDULES OF INVESTMENTS      33  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

 

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(a)

   $        $ 232,778,047        $             —        $ 232,778,047  

Short-Term Securities

     343,563                            343,563  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 343,563        $ 232,778,047        $        $ 233,121,610  
  

 

 

      

 

 

      

 

 

      

 

 

 
                 

Derivative Financial Instruments(b)

                 

Liabilities:

                 

Interest rate contracts

   $ (320,968      $        $        $ (320,968
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 
  (b) 

Derivative financial instruments are 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  

Liabilities:

                 

TOB Trust Certificates

   $           —        $ (43,928,144      $             —        $ (43,928,144

VRDP Shares at Liquidation Value

              (52,000,000                 (52,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (95,928,144      $        $ (95,928,144
  

 

 

      

 

 

      

 

 

      

 

 

 

During the period ended January 31, 2019, there were no transfers between levels.

See notes to financial statements.

 

 

34    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited)

January 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 133.6%

 

New York — 133.1%

 

Corporate — 4.6%  

Build NYC Resource Corp., Refunding RB, Pratt Paper, Inc. Project, AMT, 5.00%, 01/01/35(a)

  $ 280     $ 295,498  

City of New York Industrial Development Agency, Refunding RB, Transportation Infrastructure Properties LLC, Series A, AMT:

   

5.00%, 07/01/22

    650       709,657  

5.00%, 07/01/28

    795       849,052  

New York Liberty Development Corp., Refunding RB, Goldman Sachs Headquarters, 5.25%, 10/01/35

    3,195       3,900,648  

Niagara Area Development Corp., Refunding RB, Covanta Project, Series A, AMT, 4.75%, 11/01/42(a)

    2,820       2,737,712  
   

 

 

 
      8,492,567  
County/City/Special District/School District — 33.4%  

City of New York, GO, Refunding, Series E:

   

5.50%, 08/01/25

    1,115       1,285,996  

5.00%, 08/01/30

    1,000       1,109,270  

City of New York, GO:

   

Series A-1, 5.00%, 08/01/35

    1,000       1,069,790  

Series D, 5.38%, 06/01/32

    25       25,084  

Series G-1, 6.25%, 12/15/31

    15       15,057  

Sub-Series D-1, Fiscal 2014, 5.00%, 08/01/31

    690       772,510  

Sub-Series G-1, 5.00%, 04/01/29

    750       818,753  

Sub-Series I-1, 5.38%, 04/01/19(b)

    465       467,841  

Sub-Series I-1, 5.38%, 04/01/36

    65       65,360  

City of New York Convention Center Development Corp., RB, CAB, Sub Lien, Hotel Unit Fee, Series B (AGM),
0.00%, 11/15/55(c)

    2,000       430,480  

City of New York Convention Center Development Corp., Refunding RB, Hotel Unit Fee Secured:

   

5.00%, 11/15/40

    2,975       3,331,673  

5.00%, 11/15/45

    3,700       4,126,758  

City of New York Industrial Development Agency, RB, PILOT:

   

CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/42(c)

    1,960       759,676  

CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/45(c)

    1,500       499,740  

(AMBAC), 5.00%, 01/01/39

    3,000       3,040,620  

Queens Baseball Stadium (AGC), 6.38%, 01/01/39

    150       150,533  

Queens Baseball Stadium (AMBAC), 5.00%, 01/01/46

    175       177,536  

Yankee Stadium Project (NPFGC), 4.75%, 03/01/46

    350       350,238  

Yankee Stadium Project (NPFGC), 5.00%, 03/01/46

    500       502,820  

City of New York Transitional Finance Authority, RB, Future Tax Secured, 5.00%, 02/01/32

    5,000       5,610,600  

City of New York Transitional Finance Authority Future Tax Secured, RB:

   

Future Tax Secured Subordinate Bond, Series C-3, 5.00%, 05/01/41

    355       405,147  

Future Tax Secured, Sub-Series E-1, 5.00%, 02/01/43

    1,725       1,937,244  

Series A-2, 5.00%, 08/01/38

    1,420       1,622,350  

City of New York Transitional Finance Authority Future Tax Secured Revenue, RB, Fiscal 2012, Sub-Series E-1,
5.00%, 02/01/42

    2,500       2,682,075  

County of Nassau New York, GO, General Improvement Bonds, Series B, 5.00%, 07/01/37

    1,200       1,374,252  

County of Nassau New York, GO, Refunding, Series C, 5.00%, 10/01/31

    945       1,090,473  

Hudson Yards Infrastructure Corp., RB, Senior, Fiscal 2012:

   

5.75%, 02/15/21(b)

    125       135,244  

5.75%, 02/15/47

    75       80,553  
Security   Par
(000)
    Value  
County/City/Special District/School District (continued)  

Hudson Yards Infrastructure Corp., Refunding RB, Series A:

   

5.00%, 02/15/39

  $ 1,370     $ 1,549,621  

5.00%, 02/15/42

    1,875       2,106,675  

Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56

    2,695       2,883,650  

New York Liberty Development Corp., Refunding RB:

   

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 2, 5.63%, 07/15/47

    2,000       2,070,160  

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

    1,200       1,245,996  

3 World Trade Center Project, Class 1,
5.00%, 11/15/44(a)

    1,835       1,900,014  

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

    480       507,638  

4 World Trade Center Project, 5.00%, 11/15/31

    860       923,133  

4 World Trade Center Project, 5.00%, 11/15/44

    7,655       8,159,312  

7 World Trade Center Project, Class 1,
4.00%, 09/15/35

    1,935       2,017,837  

7 World Trade Center Project, Class 2,
5.00%, 09/15/43

    1,420       1,525,236  

7 World Trade Center Project, Class 3,
5.00%, 03/15/44

    2,070       2,206,558  

World Trade Center Project, 5.75%, 11/15/51

    1,340       1,468,720  
   

 

 

 
      62,502,223  
Education — 28.6%  

Amherst Development Corp., Refunding RB:

   

Daemen College Project, 5.00%, 10/01/43

    380       401,128  

Daemen College Project, 5.00%, 10/01/48

    290       304,953  

University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/20(b)

    1,100       1,153,482  

Build NYC Resource Corp., RB, Inwood Academy for Leadership Charter School Project, Series A, 5.13%, 05/01/38(a)

    660       662,119  

Build NYC Resource Corp., Refunding RB, City University New York-Queens College Student Residences, LLC Project, Series A, 5.00%, 06/01/38

    250       280,708  

City of New York Trust for Cultural Resources, Refunding RB, Series A:

   

American Museum of Natural History,
5.00%, 07/01/37

    225       254,867  

Carnegie Hall, 4.75%, 12/01/39

    2,000       2,039,760  

City of Troy New York Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project:

   

Series A, 5.13%, 09/01/40

    3,135       3,263,221  

Series B, 4.00%, 08/01/35

    470       488,010  

City of Yonkers New York Industrial Development Agency, RB, Sarah Lawrence College Project, Series A, 6.00%, 06/01/19(b)

    625       633,837  

Counties of Buffalo & Erie New York Industrial Land Development Corp., Refunding RB, The Charter School for Applied Technologies Project, Series A, 5.00%, 06/01/35

    245       261,582  

County of Cattaraugus New York, RB, St. Bonaventure University Project, 5.00%, 05/01/34

    170       183,627  

County of Dutchess New York Industrial Development Agency, RB, Bard College Civic Facility, Series A-2, 4.50%, 08/01/36

    2,155       2,011,261  

County of Dutchess New York Local Development Corp., RB, Marist College Project:

   

5.00%, 07/01/43

    240       272,762  

5.00%, 07/01/48

    360       407,898  
 

 

 

SCHEDULES OF INVESTMENTS      35  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Education (continued)  

County of Dutchess New York Local Development Corp., Refunding RB, Vassar College Project:

   

5.00%, 07/01/42

  $ 395     $ 447,547  

4.00%, 07/01/46

    745       765,890  

County of Monroe New York Industrial Development Corp., RB, University of Rochester Project, Series A, 5.00%, 07/01/21(b)

    1,900       2,052,456  

County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A, 5.00%, 07/01/23(b)

    320       365,248  

County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 03/01/20(b)

    1,165       1,201,663  

County of Orange New York Funding Corp., Refunding RB, Mount St. Mary College Project, Series A:

   

5.00%, 07/01/37

    360       375,433  

5.00%, 07/01/42

    220       228,001  

County of St. Lawrence New York Industrial Development Agency, RB, Clarkson University Project, 5.38%, 09/01/41

    750       800,715  

County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM), 5.50%, 01/01/21(b)

    700       750,001  

Geneva Development Corp., Refunding RB, Hobart & William Smith Colleges, 5.25%, 09/01/44

    500       558,625  

State of New York Dormitory Authority, RB:

   

Convent of the Sacred Heart (AGM), 5.25%, 11/01/24

    155       166,693  

Convent of the Sacred Heart (AGM), 5.63%, 11/01/32

    750       807,742  

Convent of the Sacred Heart (AGM), 5.75%, 11/01/40

    210       226,546  

New York University Mount Sinai School of Medicine,
5.13%, 07/01/19(b)

    2,000       2,028,300  

New York University, Series 1 (AMBAC),
5.50%, 07/01/40

    1,440       1,860,912  

New York University, Series B, 5.00%, 07/01/37

    1,250       1,366,025  

Series B, 5.75%, 03/15/19(b)

    600       602,874  

State University Dormitory Facilities, Series A,
5.00%, 07/01/19(b)

    750       760,387  

State University Dormitory Facilities, Series A,
5.00%, 07/01/41

    2,000       2,132,080  

State University Of New York Dormitory Facilities,
Series A, 5.00%, 07/01/43

    845       966,224  

Teachers College, Series B, 5.00%, 07/01/42

    1,225       1,323,600  

Touro College & University System, Series A,
5.25%, 01/01/34

    800       853,784  

Touro College & University System, Series A,
5.50%, 01/01/39

    2,000       2,139,520  

University of Rochester, Series A, 5.13%, 07/01/19(b)

    740       750,619  

University of Rochester, Series A, 5.75%, 07/01/19(b)

    565       574,537  

University of Rochester, Series A, 5.13%, 07/01/39

    110       111,438  

University of Rochester, Series A, 5.75%, 07/01/39

    85       86,379  

State of New York Dormitory Authority, Refunding RB:

   

3rd General Resolution, State University Educational Facilities Issue, Series A, 5.00%, 05/15/29

    2,000       2,190,200  

Barnard College, Series A, 5.00%, 07/01/33

    530       608,673  

Brooklyn Law School, 5.75%, 07/01/33

    475       481,099  

Cornell University, Series A, 5.00%, 07/01/40

    800       832,696  

Culinary Institute of America, 5.00%, 07/01/42

    300       316,206  

Fordham University, 5.00%, 07/01/44

    850       933,376  

Icahn School of Medicine at Mount Sinai, Series A,
5.00%, 07/01/35

    1,380       1,547,477  

New York University, Series A, 5.00%, 07/01/37

    1,790       1,956,148  

Rochester Institute of Technology, 5.00%, 07/01/42

    1,790       1,928,009  

Skidmore College, Series A, 5.00%, 07/01/28

    75       80,172  

Skidmore College, Series A, 5.25%, 07/01/29

    85       91,525  
Security   Par
(000)
    Value  
Education (continued)  

St. John’s University, Series A, 5.00%, 07/01/37

  $ 835     $ 941,538  

State University Dormitory Facilities, Series A,
5.25%, 07/01/30

    2,355       2,663,623  

State University Dormitory Facilities, Series A,
5.25%, 07/01/32

    445       502,516  

Teachers College, 5.50%, 03/01/19(b)

    450       451,337  

St. John’s Univerisity, Series A, 5.00%, 07/01/34

    250       284,253  

Town of Hempstead New York Local Development Corp., Refunding RB:

   

Adelphi University Project, 5.00%, 10/01/35

    415       466,381  

Hofstra University Project, 5.00%, 07/01/47

    120       134,122  
   

 

 

 
      53,331,805  
Health — 12.4%  

County of Dutchess New York Local Development Corp., RB, Health Quest Systems, Inc., Series B, 4.00%, 07/01/41

    1,600       1,605,056  

County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A, 5.75%, 07/01/40

    300       317,610  

County of Genesee New York Industrial Development Agency, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27

    395       395,241  

County of Monroe New York Industrial Development Corp., RB, Rochester General Hospital Project:

   

4.00%, 12/01/41

    200       200,658  

5.00%, 12/01/46

    320       349,616  

Series A, 5.00%, 12/01/32

    240       260,652  

County of Monroe New York Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 08/15/40

    1,650       1,764,691  

County of Nassau New York Local Economic Assistance Corp., Refunding RB, Winthrop University Hospital Association Project, 5.00%, 07/01/42

    2,800       2,931,908  

County of Suffolk New York EDC, RB, Catholic Health Services, Series C, 5.00%, 07/01/32

    230       249,690  

County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien:

   

Remarketing, Series A, 5.00%, 11/01/30

    3,130       3,294,294  

Series B, 6.00%, 11/01/20(b)

    435       467,029  

Series B, 6.00%, 11/01/30

    65       69,126  

County of Westchester New York Local Development Corp., Refunding RB, Kendal On Hudson Project:

   

5.00%, 01/01/28

    675       716,479  

5.00%, 01/01/34

    1,250       1,307,663  

State of New York Dormitory Authority, RB:

   

New York State Association for Retarded Children, Inc., Series A, 6.00%, 07/01/19(b)

    500       508,845  

New York State Association for Retarded Children, Inc., Series B (AMBAC), 6.00%, 07/01/19(b)

    200       203,538  

New York University Hospitals Center, Series A,
6.00%, 07/01/20(b)

    500       530,220  

North Shore-Long Island Jewish Obligated Group, Series D, 4.25%, 05/01/39

    500       520,095  

State of New York Dormitory Authority, Refunding RB:

   

Miriam Osborn Memorial Home Association,
5.00%, 07/01/29

    290       293,274  

Mount Sinai Hospital, Series A, 5.00%, 07/01/26

    1,385       1,443,184  

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/21(b)

    1,000       1,073,630  

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/21(b)

    1,750       1,878,852  

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/43

    1,430       1,556,784  
 

 

 

36    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Health (continued)  

North Shore-Long Island Jewish Obligated Group, Series E, 5.50%, 05/01/33

  $ 1,100     $ 1,108,613  
   

 

 

 
      23,046,748  
Housing — 4.2%  

City of New York Housing Development Corp., RB, M/F Housing, Fund Grant Program, New York City Housing Authority Program, Series B1:

   

5.25%, 07/01/32

    1,140       1,254,046  

5.00%, 07/01/33

    500       543,145  

City of New York Housing Development Corp., Refunding RB, M/F Housing, 8 Spruce Street, Class F, 4.50%, 02/15/48

    925       958,189  

County of Onondaga New York Trust for Cultural Resources, Refunding RB, Abby Lane Housing Corporation Project, 5.00%, 05/01/40

    355       384,880  

State of New York HFA, RB:

   

Affordable Housing, Series E (SONYMA), 4.15%, 11/01/47

    495       502,717  

M/F Housing, Highland Avenue Senior Apartments, Series A, AMT (SONYMA), 5.00%, 02/15/39

    1,420       1,425,197  

Series H, 4.25%, 11/01/51

    1,000       1,020,880  

State of New York Mortgage Agency, Refunding RB, S/F, Series 213, 4.20%, 10/01/43

    1,785       1,833,195  
   

 

 

 
      7,922,249  
State — 9.7%  

City of New York Transitional Finance Authority Building Aid Revenue, Refunding RB, Series S-3, 4.00%, 07/15/38

    2,360       2,483,310  

State of New York Dormitory Authority, RB:

   

General Purpose, Series B, 5.00%, 03/15/42

    4,380       4,707,317  

General Purpose, Series C, 5.00%, 03/15/34

    2,185       2,318,569  

Group B, State Sales Tax, Series A, 5.00%, 03/15/39

    620       703,440  

Series A, 5.00%, 03/15/36

    1,360       1,555,826  

Series A, 5.00%, 02/15/42

    1,500       1,679,400  

State of New York Dormitory Authority, Refunding RB:

   

Group 3, Series E, 5.00%, 03/15/41

    1,160       1,333,664  

Series A, 5.25%, 03/15/39

    1,030       1,212,856  

State of New York Urban Development Corp., RB, State Personal Income Tax, Series C:

   

5.00%, 03/15/30

    885       985,996  

5.00%, 03/15/32

    1,000       1,109,950  
   

 

 

 
      18,090,328  
Tobacco — 4.4%  

Counties of New York Tobacco Trust IV, Refunding RB, Settlement Pass-Through Turbo, Series A,
6.25%, 06/01/41(a)

    1,000       1,022,970  

Counties of New York Tobacco Trust VI, Refunding RB:

   

Settlement Pass-Through Turbo, Series C,
4.00%, 06/01/51

    1,500       1,260,705  

Tobacco Settlement Pass-Through, Series A-2B, 5.00%, 06/01/51

    1,470       1,484,259  

Tobacco Settlement Pass-Through, Series B,
5.00%, 06/01/45

    130       131,983  

County of Chautauqua New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 4.75%, 06/01/39

    150       146,549  

County of Niagara New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed:

   

5.25%, 05/15/34

    250       263,390  

5.25%, 05/15/40

    110       115,041  

TSASC, Inc., Refunding RB, Tobacco Settlement Bonds, Series B:

   

5.00%, 06/01/45

    1,125       1,069,650  

Subordinate, 5.00%, 06/01/48

    1,225       1,158,103  
Security   Par
(000)
    Value  
Tobacco (continued)  

Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C:

   

4.00%, 06/01/42

  $ 725     $ 673,931  

5.13%, 06/01/51

    870       873,149  
   

 

 

 
      8,199,730  
Transportation — 26.6%  

Buffalo & Fort Erie Public Bridge Authority, RB, 5.00%, 01/01/47

    535       594,299  

Metropolitan Transportation Authority, RB:

   

Series A-1, 5.25%, 11/15/23(b)

    540       628,457  

Series D, 5.25%, 11/15/21(b)

    220       241,811  

Series E, 5.00%, 11/15/38

    4,000       4,346,200  

Metropolitan Transportation Authority, Refunding RB:

   

Green Bonds, Climate Bond Certified, Sub-Series B-2, 4.00%, 11/15/34

    750       805,695  

Green Bonds, Series A-1, 5.25%, 11/15/56

    750       826,575  

Series D, 5.25%, 11/15/21(b)

    780       857,329  

Series D, 5.25%, 11/15/23(b)

    910       1,059,067  

Series F, 5.00%, 11/15/30

    2,000       2,175,460  

Series F, 5.00%, 11/15/35

    500       556,700  

Transportation, Series D, 5.00%, 11/15/20(b)

    800       847,688  

New York Transportation Development Corp., ARB, LaGuardia Airport Terminal B Redevelopment Project, Series A, AMT:

   

5.00%, 07/01/41

    1,040       1,098,375  

5.00%, 07/01/46

    5,960       6,276,714  

5.25%, 01/01/50

    560       595,398  

(AGM), 4.00%, 07/01/41

    800       803,848  

New York Transportation Development Corp., Refunding ARB, American Airlines, Inc., AMT, 5.00%, 08/01/31

    2,305       2,389,040  

Port Authority of New York & New Jersey, ARB, JFK International Air Terminal LLC, Special Project, AMT (NPFGC):

   

Series 6, 5.75%, 12/01/22

    4,930       5,129,172  

Series 8, 6.00%, 12/01/42

    1,000       1,058,520  

Port Authority of New York & New Jersey, Refunding ARB:

   

178th Series, AMT, 5.00%, 12/01/33

    750       831,458  

179th Series, 5.00%, 12/01/38

    575       644,943  

Consolidated, 177th Series, AMT, 4.00%, 01/15/43

    640       646,042  

Consolidated, 178th Series, AMT, 5.00%, 12/01/43

    500       544,825  

Consolidated, 195th Series, AMT, 5.00%, 04/01/36

    750       841,020  

State of New York Thruway Authority, RB, Junior Lien,
Series A, 5.25%, 01/01/56

    920       1,015,634  

State of New York Thruway Authority, Refunding RB, General:

   

2nd Highway & Bridge Trust, Series A, 5.00%, 04/01/32

    2,500       2,727,575  

Series I, 5.00%, 01/01/37

    1,760       1,875,509  

Series I, 5.00%, 01/01/42

    280       297,083  

Series J, 5.00%, 01/01/41

    2,000       2,192,740  

Series K, 5.00%, 01/01/32

    2,575       2,921,955  

Triborough Bridge & Tunnel Authority, RB:

   

Series A, 5.00%, 11/15/42

    1,000       1,136,210  

Series B, 5.00%, 11/15/40

    350       397,702  

Series B, 5.00%, 11/15/45

    310       350,818  

Triborough Bridge & Tunnel Authority, Refunding RB:

   

General, CAB, Series B, 0.00%, 11/15/32(c)

    1,700       1,063,928  

General, Series A, 5.25%, 11/15/45

    590       682,624  

General, Series A, 5.00%, 11/15/50

    500       562,620  

Series B, 5.00%, 11/15/38

    515       590,818  
   

 

 

 
      49,613,852  
Utilities — 9.2%  

City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2015, Series HH, 5.00%, 06/15/39

    1,000       1,121,820  
 

 

 

SCHEDULES OF INVESTMENTS      37  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Utilities (continued)  

City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Fiscal 2011, Series BB, 5.00%, 06/15/31

  $ 1,000     $ 1,042,070  

Long Island Power Authority, RB:

   

5.00%, 09/01/38

    2,750       3,162,747  

General, 5.00%, 09/01/47

    490       548,266  

General, 5.00%, 09/01/36

    340       390,238  

General, Electric Systems, Series A (AGM),
5.00%, 05/01/21(b)

    500       536,815  

General, Electric Systems, Series C (CIFG),
5.25%, 09/01/29

    2,000       2,426,100  

Long Island Power Authority, Refunding RB, Electric System:

   

Series A, 5.75%, 04/01/19(b)

    4,000       4,026,480  

Series B, 5.00%, 09/01/46

    250       277,213  

State of New York Environmental Facilities Corp., RB, Subordinated SRF Bonds, Series B, 5.00%, 06/15/48

    930       1,067,733  

State of New York Environmental Facilities Corp., Refunding RB, Revolving Funds, New York City Municipal Water, Series B, 5.00%, 06/15/36

    350       373,447  

Utility Debt Securitization Authority, Refunding RB, Restructuring, Series E, 5.00%, 12/15/41

    2,000       2,224,680  
   

 

 

 
      17,197,609  
   

 

 

 

Total Municipal Bonds in New York

 

    248,397,111  
   

 

 

 
Puerto Rico — 0.5%  

Children’s Trust Fund, Refunding RB, Tobacco Settlement Asset-Backed Bonds, 5.63%, 05/15/43

    985       996,002  
   

 

 

 

Total Municipal Bonds — 133.6%
(Cost — $238,911,525)

 

    249,393,113  
   

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(d)

 

New York — 35.1%

 

County/City/Special District/School District — 7.9%  

City of New York, GO:

   

Series D, 5.00%, 12/01/43(e)

    2,850       3,260,884  

Sub-Series G-1, 5.00%, 04/01/29

    4,370       4,767,714  

Sub-Series I-1, 5.00%, 03/01/36

    1,500       1,677,172  

City of New York Transitional Finance Authority, RB, Future Tax Secured, Sub-Series D-1, 5.00%, 11/01/38

    825       882,684  

Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(e):

   

5.75%, 02/15/21(b)

    774       833,703  

5.75%, 02/15/47

    476       512,869  

New York Liberty Development Corp., Refunding RB, 7 World Trade Center Project, Class 1, 5.00%, 09/15/40

    2,610       2,825,551  
   

 

 

 
      14,760,577  
Education — 2.1%  

City of New York Trust for Cultural Resources, Refunding RB, Wildlife Conservation Society, Series A, 5.00%, 08/01/33

    3,527       3,928,138  
   

 

 

 
Housing — 1.6%  

City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.25%, 11/01/43

    2,830       2,919,867  
   

 

 

 
State — 4.2%  

City of New York Transitional Finance Authority, RB, Future Tax Secured, Sub-Series F-1, 5.00%, 05/01/38

    1,420       1,621,841  

Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A:

   

5.00%, 10/15/31

    750       858,398  

4.00%, 10/15/32

    1,000       1,084,060  
Security   Par
(000)
    Value  
State (continued)  

State of New York Dormitory Authority, RB, General Purpose, Series C, 5.00%, 03/15/41

  $ 1,500     $ 1,586,887  

State of New York Dormitory Authority, Refunding RB, Bid Group 4, Series C, 5.00%, 03/15/39

    1,000       1,148,030  

State of New York Urban Development Corp., RB, State Personal Income Tax, Series A, 4.00%, 03/15/47

    1,497       1,542,611  
   

 

 

 
      7,841,827  
Transportation — 8.3%  

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

    6,495       7,050,747  

Port Authority of New York & New Jersey, Refunding ARB:

   

194th Series, 5.25%, 10/15/55

    1,455       1,659,340  

Consolidated, 210th Series, 5.00%, 09/01/48

    1,900       2,169,990  

Consolidated, Series 169th, 5.00%, 10/15/26

    1,500       1,608,037  

State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 03/15/31

    1,180       1,267,963  

Triborough Bridge & Tunnel Authority, Refunding RB, General, Series A, 5.00%, 11/15/46

    1,500       1,679,220  
   

 

 

 
      15,435,297  
Utilities — 11.0%  

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

   

Fiscal 2011, Series HH, 5.00%, 06/15/32

    5,310       5,673,275  

Fiscal 2012, Series BB, 5.00%, 06/15/44

    3,511       3,768,560  

City of New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System, 2nd General Resolution, Series FF-2, 5.50%, 06/15/40

    810       820,854  

Utility Debt Securitization Authority, Refunding RB:

   

5.00%, 12/15/41

    6,868       7,631,482  

Restructuring, Series A, 5.00%, 12/15/35

    2,000       2,303,650  

Restructuring, Series B, 4.00%, 12/15/35

    370       392,355  
   

 

 

 
      20,590,176  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option
Bond Trusts — 35.1%
(Cost — $62,839,000)

 

    65,475,882  
 

 

 

 

Total Long-Term Investments — 168.7%
(Cost — $301,750,525)

 

    314,868,995  
   

 

 

 
     Shares         

Short-Term Securities — 0.7%

 

BlackRock Liquidity Funds New York Money Fund Portfolio, 1.13%(f)(g)

    1,332,918       1,332,918  
   

 

 

 

Total Short-Term Securities — 0.7%
(Cost — $1,332,918)

 

    1,332,918  
   

 

 

 

Total Investments — 169.4%
(Cost — $303,083,443)

 

    316,201,913  

Other Assets Less Liabilities — 0.6%

 

    1,168,906  

Liability for TOB Trust Certificates, Including Interest Expense and
Fees Payable — (19.4)%

 

    (36,186,468

VMTP Shares, at Liquidation Value, Net of Deferred Offering Costs — (50.6)%

 

    (94,500,000
   

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 186,684,351  
   

 

 

 

 

(a) 

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.

 

 

 

38    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

 

(b) 

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.

(c) 

Zero-coupon bond.

(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 agreement, which expires between February 15, 2019 to December 1, 2026 is $2,160,162. See Note 4 of the Notes to Financial Statements for details.

(f) 

Annualized 7-day yield as of period end.

(g) 

During the period ended January 31, 2019, 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
07/31/18
     Net
Activity
     Shares
Held at
01/31/19
     Value at
01/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds New York Money Fund Portfolio

            1,332,918        1,332,918      $ 1,332,918      $ 3,134      $      $  

BlackRock Liquidity Funds, MuniCash, Institutional Class

     2,136,343        (2,136,343                    5,172        45        (259
           

 

 

    

 

 

    

 

 

    

 

 

 
   $ 1,332,918      $ 8,306      $ 45      $ (259
  

 

 

    

 

 

    

 

 

    

 

 

 
  (a) 

Includes net capital gain distributions, if applicable.

 

For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts
       Expiration
Date
       Notional
Amount (000)
       Value/
Unrealized
Appreciation
(Depreciation)
 

Short Contracts:

                 

10-Year U.S. Treasury Note

     38          03/20/19        $ 4,654        $ (99,735

Long U.S. Treasury Bond

     61          03/20/19          8,948          (449,837

5-Year U.S. Treasury Note

     37          03/29/19          4,250          (70,969
                 

 

 

 
                  $ (620,541
                 

 

 

 

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:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Liabilities — Derivative Financial Instruments

 

Futures contracts

                    

Net unrealized depreciation(a)

   $      $      $      $      $ 620,541      $      $ 620,541  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Includes cumulative depreciation on 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 January 31, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

      Commodity
Contracts
     Credit
Contracts
     Equity
Contracts
     Foreign
Currency
Exchange
Contracts
     Interest
Rate
Contracts
     Other
Contracts
     Total  

Net Realized Gain (Loss) from:

                    

Futures contracts

   $      $      $      $      $ 103,595      $      $ 103,595  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ (601,681    $      $ (601,681
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

 

SCHEDULES OF INVESTMENTS      39  


Schedule of Investments  (unaudited) (continued)

January 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 13,642,844  

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

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(a)

   $        $ 314,868,995        $        $ 314,868,995  

Short-Term Securities

     1,332,918                            1,332,918  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 1,332,918        $ 314,868,995        $          $ 316,201,913  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Liabilities:

 

Interest rate contracts

   $ (620,541      $        $             —        $ (620,541
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (a) 

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

 
  (b) 

Derivative financial instruments are 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  

Liabilities:

 

TOB Trust Certificates

   $        $ (36,057,166      $        $ (36,057,166

VMTP Shares at Liquidation Value

              (94,500,000                 (94,500,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (130,557,166      $             —        $ (130,557,166
  

 

 

      

 

 

      

 

 

      

 

 

 

During the period ended January 31, 2019, there were no transfers between levels.

See notes to financial statements.

 

 

40    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Assets and Liabilities  (unaudited)

January 31, 2019

 

     BFZ      BTT      BBF      BNY  

ASSETS

          

Investments at value — unaffiliated(a)

  $ 786,044,901      $ 2,637,453,273      $ 232,778,047      $ 314,868,995  

Investments at value — affiliated(b)

                  343,563        1,332,918  

Cash pledged for futures contracts

    699,000               127,850        229,250  

Receivables:

          

Interest — unaffiliated

    10,909,962        26,059,375        2,798,286        3,286,918  

Investments sold

    314,678        41,993,799        425,466        20,000  

Dividends — affiliated

    864        12,292        331        727  

TOB Trust

                  1,570,000        1,415,000  

Prepaid expenses

    6,036        12,320        4,275        4,598  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

    797,975,441        2,705,531,059        238,047,818        321,158,406  
 

 

 

    

 

 

    

 

 

    

 

 

 

ACCRUED LIABILITIES

          

Bank overdraft

    803,012        1,583,557                

Payables:

          

Investments purchased

    1,674,165               2,716,536        2,830,000  

Income dividend distributions

    1,419,678        4,399,548        593,199        577,435  

Interest expense and fees

    825,039        1,242,122        205,221        129,302  

Investment advisory fees

    390,150        912,534        113,152        160,541  

Variation margin on futures contracts

    273,547               49,200        88,930  

Directors’ and Officer’s fees

    82,767        21,847        31,195        33,968  

Other accrued expenses

    107,454        335,667        78,076        96,713  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total accrued liabilities

    5,575,812        8,495,275        3,786,579        3,916,889  
 

 

 

    

 

 

    

 

 

    

 

 

 

OTHER LIABILITIES

    

TOB Trust Certificates

    162,130,035        261,819,915        43,928,144        36,057,166  

RVMTP Shares, at liquidation value of $5,000,000 per share, net of deferred offering costs(c)

           749,627,142                

VMTP Shares, at liquidation value of $100,000 per share(c)

    171,300,000                      94,500,000  

VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)

              51,715,976         
 

 

 

    

 

 

    

 

 

    

 

 

 

Total other liabilities

    333,430,035        1,011,447,057        95,644,120        130,557,166  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

    339,005,847        1,019,942,332        99,430,699        134,474,055  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 458,969,594      $ 1,685,588,727      $ 138,617,119      $ 186,684,351  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

          

Paid-in capital(d)

  $ 446,985,849      $ 1,671,158,205      $ 134,902,792      $ 180,169,188  

Accumulated earnings

    11,983,745        14,430,522        3,714,327        6,515,163  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 458,969,594      $ 1,685,588,727      $ 138,617,119      $ 186,684,351  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value per Common share

  $ 14.39      $ 23.91      $ 13.55      $ 14.39  
 

 

 

    

 

 

    

 

 

    

 

 

 

(a) Investments at cost — unaffiliated

  $ 770,613,546      $ 2,591,776,719      $ 225,025,056      $ 301,750,525  

(b) Investments at cost — affiliated

  $      $      $ 343,563      $ 1,332,918  

(c) Preferred Shares outstanding, unlimited number of shares authorized, par value $0.001 per share

    1,713        150        520        945  

(d) Common Shares outstanding, unlimited number of shares authorized, par value $0.001 per share

    31,902,885        70,505,571        10,227,565        12,976,074  

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      41  


 

Statements of Operations  (unaudited)

Six Months Ended January 31, 2019

 

     BFZ     BTT     BBF     BNY  

INVESTMENT INCOME

       

Interest — unaffiliated

  $ 15,006,013     $ 44,882,142     $ 5,560,403     $ 6,299,962  

Dividends — affiliated

    16,672       110,411       4,988       8,306  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    15,022,685       44,992,553       5,565,391       6,308,268  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

       

Investment advisory

    2,320,432       5,368,044       680,739       947,015  

Professional

    50,558       105,688       35,203       31,841  

Accounting services

    23,509       121,642       21,599       27,434  

Directors and Officer

    21,945       80,437       2,967       8,749  

Transfer agent

    18,455       39,240       13,192       11,726  

Custodian

    10,186       14,559       4,110       2,756  

Registration

    6,249       13,810       4,803       4,807  

Printing

    4,306       8,291       3,194       3,534  

Rating agency

    21,764       21,943       21,727       21,740  

Miscellaneous

    12,611       55,168       6,904       9,360  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    2,490,015       5,828,822       794,438       1,068,962  

Interest expense, fees and amortization of offering costs(a)

    3,819,317       11,470,488       1,147,007       1,501,835  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    6,309,332       17,299,310       1,941,445       2,570,797  

Less fees waived and/or reimbursed by the Manager

    (478     (7,544     (317     (354
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

    6,308,854       17,291,766       1,941,128       2,570,443  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    8,713,831       27,700,787       3,624,263       3,737,825  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

       

Net realized gain (loss) from:

       

Investments — unaffiliated

    (1,548,073     (1,520,394     222,564       (906,302

Investments — affiliated

    (9     2,602       66       45  

Futures contracts

    139,038             39,470       103,595  

Capital gain distributions from investment companies — affiliated

          5       12        
 

 

 

   

 

 

   

 

 

   

 

 

 
    (1,409,044     (1,517,787     262,112       (802,662
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Investments — unaffiliated

    (5,054,823     20,608,093       (3,095,149     (625,628

Investments — affiliated

    (610     (2,680           (259

Futures contracts

    (1,504,938           (339,127     (601,681
 

 

 

   

 

 

   

 

 

   

 

 

 
    (6,560,371     20,605,413       (3,434,276     (1,227,568
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain (loss)

    (7,969,415     19,087,626       (3,172,164     (2,030,230
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $ 744,416     $ 46,788,413     $ 452,099     $ 1,707,595  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)

Related to TOB Trusts, VMTP Shares, RVMTP Shares and/or VRDP Shares.

See notes to financial statements.

 

 

42    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Changes in Net Assets

 

    BFZ           BTT  
     Six Months Ended
01/31/19
(unaudited)
    Year Ended
07/31/18
           Six Months Ended
01/31/19
(unaudited)
    Year Ended
07/31/2018
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

OPERATIONS

         

Net investment income

  $ 8,713,831     $ 20,790,086       $ 27,700,787     $ 59,750,624  

Net realized gain (loss)

    (1,409,044     7,053,535         (1,517,787     5,215,938  

Net change in unrealized appreciation (depreciation)

    (6,560,371     (23,389,382       20,605,413       (19,498,300
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    744,416       4,454,239         46,788,413       45,468,262  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)(b)

         

Decrease in net assets resulting from distributions to shareholders

    (14,182,045     (21,374,933       (26,397,286     (60,111,851
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS(b)

         

Total increase (decrease) in net assets applicable to Common Shareholders

    (13,437,629     (16,920,694       20,391,127       (14,643,589

Beginning of period

    472,407,223       489,327,917         1,665,197,600       1,679,841,189  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 458,969,594     $ 472,407,223       $ 1,685,588,727     $ 1,665,197,600  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(b) 

Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      43  


 

Statements of Changes in Net Assets  (continued)

 

    BBF           BNY  
     Six Months Ended
01/31/19
(unaudited)
    Year Ended
07/31/18
           Six Months Ended
01/31/19
(unaudited)
    Year Ended
07/31/18
 

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

         

OPERATIONS

         

Net investment income

  $ 3,624,263     $ 8,136,606       $ 3,737,825     $ 7,786,646  

Net realized gain (loss)

    262,112       1,259,032         (802,662     832,277  

Net change in unrealized appreciation (depreciation)

    (3,434,276     (7,344,232       (1,227,568     (7,072,798
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    452,099       2,051,406         1,707,595       1,546,125  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)(b)

         

Decrease in net assets resulting from distributions to shareholders

    (3,661,395     (8,338,505       (3,475,356     (8,310,969
 

 

 

   

 

 

     

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

         

Reinvestment of common distributions

    18,055       105,235               188,434  
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS(b)

         

Total decrease in net assets applicable to Common Shareholders

    (3,191,241     (6,181,864       (1,767,761     (6,576,410

Beginning of period

    141,808,360       147,990,224         188,452,112       195,028,522  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of period

  $ 138,617,119     $ 141,808,360       $ 186,684,351     $ 188,452,112  
 

 

 

   

 

 

     

 

 

   

 

 

 

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(b) 

Prior year distribution character information and undistributed net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 11 for this prior year information.

See notes to financial statements.

 

 

44    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Statements of Cash Flows  (unaudited)

Six Months Ended January 31, 2019

 

     BFZ     BTT     BBF     BNY  

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES

 

Net increase in net assets resulting from operations

  $ 744,416     $ 46,788,413     $ 452,099     $ 1,707,595  

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities:

       

Proceeds from sales of long-term investments and principal paydowns

    183,576,006       301,405,225       45,840,448       48,284,497  

Purchases of long-term investments

    (191,774,286     (338,653,119     (39,396,190     (52,410,500

Net proceeds from sales of short-term securities

    6,191,208       26,803,616       226,497       803,638  

Amortization of premium and accretion of discount on investments and other fees

    3,791,411       8,467,791       367,971       928,198  

Net realized gain (loss) on investments

    1,548,082       1,517,792       (222,630     906,257  

Net unrealized (appreciation) depreciation on investments

    5,055,433       (20,605,413     3,095,149       625,887  

(Increase) Decrease in Assets:

       

Receivables:

       

Interest — unaffiliated

    (410,186     69,386       129,028       13,251  

Dividends — affiliated

    2,991       19,360       351       645  

Variation margin on futures contracts

    202             54       50  

Prepaid expenses

    15,232       28,077       12,197       12,382  

Increase (Decrease) in Liabilities:

       

Payables:

       

Investment advisory fees

    (4,895     4,898       (4,631     353  

Interest expense and fees

    187,036       231,411       19,922       33,255  

Directors’ and Officer’s

    1,000       6,302       (3,606     114  

Variation margin on futures contracts

    240,379             44,038       76,093  

Other accrued expenses

    (53,807     (180,088     (38,977     (31,445
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used for) operating activities

    9,110,222       25,903,651       10,521,720       950,270  
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

       

Proceeds from TOB Trust Certificates

    13,502,987             1,606,342       3,872,006  

Repayments of TOB Trust Certificates

    (8,498,820           (8,291,014     (1,094,863

Proceeds from Loan for TOB Trust Certificates

    8,498,820                    

Repayments of Loan for TOB Trust Certificates

    (8,498,820                  

Cash dividends paid to Common Shareholders

    (14,261,802     (26,397,286     (3,668,830     (3,475,356

Increase (decrease) in bank overdraft

    537,413       477,872       (91,298     (148,057

Amortization of deferred offering costs

          15,763       3,080        
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash (provided by) used for financing activities

    (8,720,222     (25,903,651     (10,441,720     (846,270
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH

       

Net increase (decrease) in restricted and unrestricted cash and foreign currency

    390,000             80,000       104,000  

Restricted and unrestricted cash and foreign currency at beginning of period

    309,000             47,850       125,250  
 

 

 

   

 

 

   

 

 

   

 

 

 

Restricted and unrestricted cash and foreign currency at end of period

  $ 699,000     $     $ 127,850     $ 229,250  
 

 

 

   

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

       

Cash paid during the period for interest expense

  $ 3,632,281     $ 11,223,314     $ 1,124,005     $ 1,468,580  
 

 

 

   

 

 

   

 

 

   

 

 

 

NON-CASH FINANCING ACTIVITIES

       

Capital shares issued in reinvestment of distributions paid to Common Shareholders

                18,055        
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES

       

Cash pledged:

       

Futures contracts

  $ 699,000           $ 127,850     $ 229,250  
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES

       

Cash pledged:

       

Futures contracts

  $ 309,000           $ 47,850     $ 125,250  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      45  


Financial Highlights

(For a share outstanding throughout each period)

 

    BFZ  
    Six Months Ended
01/31/19
(unaudited)
          Year Ended July 31,  
    2018      2017      2016      2015      2014  
               

Net asset value, beginning of period

  $ 14.81       $ 15.34      $ 16.35      $ 15.84      $ 15.83      $ 14.50  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.27         0.65        0.73        0.83        0.83        0.87  

Net realized and unrealized gain (loss)

    (0.25       (0.51      (0.97      0.54        0.05        1.39  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.02         0.14        (0.24      1.37        0.88        2.26  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Distributions to Common Shareholders(b)                                              

From net investment income

    (0.28       (0.67      (0.77      (0.86      (0.87      (0.93

From net realized gain

    (0.16                                    
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions

    (0.44       (0.67      (0.77      (0.86      (0.87      (0.93
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 14.39       $ 14.81      $ 15.34      $ 16.35      $ 15.84      $ 15.83  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 12.46       $ 12.75      $ 14.71      $ 16.76      $ 14.65      $ 14.41  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    0.70 %(d)        1.41      (1.22 )%       8.92      5.96      16.48
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    1.29 %(d)        (8.95 )%       (7.59 )%       20.72      7.66      12.80
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.71 %(e)        2.41      2.14      1.68      1.53      1.59
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    2.71 %(e)        2.41      2.14      1.68      1.53      1.59
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    1.07 %(e)        1.05      1.07      1.04      1.00      1.03
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.75 %(e)        4.33      4.73      5.17      5.20      5.78
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 458,970       $ 472,407      $ 489,328      $ 521,335      $ 504,967      $ 504,531  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 171,300       $ 171,300      $ 171,300      $ 171,300      $ 171,300      $ 171,300  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 367,933       $ 375,778      $ 385,656      $ 404,341      $ 394,785      $ 394,531  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 162,130       $ 157,126      $ 169,863      $ 183,691      $ 155,533      $ 106,698  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    22       45      38      30      37      25
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense, fees and amortization of offering costs related to TOBs and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

46    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BTT  
    Six Months Ended
01/31/19
(unaudited)
          Year Ended July 31,  
    2018      2017     2016      2015      2014  
               

Net asset value, beginning of period

  $ 23.62       $ 23.83      $ 25.38     $ 22.73      $ 21.99      $ 18.75  
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.39         0.85        0.90       1.03        1.09        1.12  

Net realized and unrealized gain (loss)

    0.27         (0.21      (1.50     2.58        0.61        3.23  
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.66         0.64        (0.60     3.61        1.70        4.35  
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders(b)

                

From net investment income

    (0.37       (0.85      (0.95     (0.96      (0.96      (1.09

From return of capital

                                       (0.02
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total distributions

    (0.37       (0.85      (0.95     (0.96      (0.96      (1.11
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 23.91       $ 23.62      $ 23.83     $ 25.38      $ 22.73      $ 21.99  
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 21.69       $ 21.43      $ 23.14     $ 24.24      $ 20.80      $ 19.57  
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                

Based on net asset value

    3.07 %(d)        3.04      (2.14 )%      16.57      8.32      24.50
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Based on market price

    3.05 %(d)        (3.73 )%       (0.51 )%      21.67      11.37      12.78
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                

Total expenses

    2.08 %(e)        1.76      1.49 %(f)      1.17      1.14      1.22
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    2.08 %(e)        1.76      1.49 %(f)      1.09      1.06      1.21
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(g)

    0.70 %(e)        0.69      0.68 %(f)      0.61      0.62      0.72
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.33 %(e)        3.55      3.80 %(f)      4.30      4.77      5.61
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Supplemental Data

                

Net assets, end of period (000)

  $ 1,685,589       $ 1,665,198      $ 1,679,841     $ 1,789,120      $ 1,602,414      $ 1,550,376  
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

RVMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 750,000       $ 750,000      $ 750,000     $ 750,000      $ 750,000      $ 750,000  
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Asset coverage per RVMTP Shares at $100,000 liquidation value, end of period

  $ 16,237,258       $ 16,101,317      $ 16,198,941     $ 16,927,465      $ 15,682,760      $ 15,335,837  
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 261,820       $ 261,820      $ 184,115     $ 184,115      $ 184,120      $ 184,120  
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    12       23      32     42      12      6
 

 

 

     

 

 

    

 

 

   

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or RVMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      47  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BBF  
    Six Months Ended
01/31/19
(unaudited)
          Year Ended July 31,  
          2018      2017      2016     2015     2014  
               

Net asset value, beginning of period

  $ 13.87       $ 14.48      $ 15.47      $ 15.14     $ 15.09     $ 13.89  
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net investment income(a)

    0.35         0.80        0.84        0.84       0.87       0.87  

Net realized and unrealized gain (loss)

    (0.31       (0.59      (0.96      0.36       0.05       1.20  
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net increase (decrease) from investment operations

    0.04         0.21        (0.12      1.20       0.92       2.07  
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.36       (0.82      (0.87      (0.87     (0.87     (0.87
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 13.55       $ 13.87      $ 14.48      $ 15.47     $ 15.14     $ 15.09  
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Market price, end of period

  $ 12.90       $ 13.37      $ 15.27      $ 16.00     $ 13.44     $ 13.48  
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total Return Applicable to Common Shareholders(c)

               

Based on net asset value

    0.48 %(d)        1.65      (0.65 )%       8.40     6.76     16.06
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Based on market price

    (0.77 )%(d)        (7.08 )%       1.30      26.29     6.09     15.49
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

               

Total expenses

    2.77 %(e)        2.53      2.16      2.01 %(f)      1.76     1.85
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and paid indirectly

    2.77 %(e)        2.53      2.16      2.01 %(f)      1.76     1.85
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs(g)

    1.13 %(e)        1.15      1.13      1.45 %(f),(h)      1.50 %(h)      1.56 %(h) 
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Net investment income to Common Shareholders

    5.18 %(e)        5.63      5.72      5.50     5.65     6.09
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Supplemental Data

               

Net assets, end of period (000)

  $ 138,617       $ 141,808      $ 147,990      $ 157,965     $ 101,509     $ 101,163  
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 52,000       $ 52,000      $ 52,000      $ 52,000     $ 34,200     $ 34,200  
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of period

  $ 366,571       $ 372,708      $ 384,597      $ 403,780     $ 396,809     $ 395,798  
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Borrowings outstanding, end of period (000)

  $ 43,928       $ 49,043      $ 50,028      $ 47,193     $ 29,682     $ 29,682  
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Portfolio turnover rate

    17       31      39      17     11     22
 

 

 

     

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Includes reorganization costs associated with the Trust’s reorganization in 2016. Without these costs, total expenses, total expenses after fees waived and/or paid indirectly and total expenses after fees waived and/or paid indirectly and excluding interest expense, fees and amortization of offering costs would have been 1.83%, 1.83% and 1.26%, respectively, for the year ended July 31, 2016.

(g) 

Interest expense, fees and amortization of offering costs related to TOBs and/or VRDP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

(h) 

The total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees as follows:

 

     Year Ended July 31,  
      2016      2015      2014  

Expense ratios

             1.38              1.17            1.19
  

 

 

    

 

 

    

 

 

 

See notes to financial statements.

 

 

48    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BNY  
    Six Months Ended
01/31/19
(unaudited)
          Year Ended July 31,  
          2018      2017      2016      2015      2014  
               

Net asset value, beginning of period

  $ 14.52       $ 15.04      $ 15.94      $ 14.97      $ 14.68      $ 13.47  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.29         0.60        0.67        0.75        0.79        0.81  

Net realized and unrealized gain (loss)

    (0.15       (0.48      (0.85      1.02        0.33        1.23  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    0.14         0.12        (0.18      1.77        1.12        2.04  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.27       (0.64      (0.72      (0.80      (0.83      (0.83
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of period

  $ 14.39       $ 14.52      $ 15.04      $ 15.94      $ 14.97      $ 14.68  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of period

  $ 12.66       $ 12.53      $ 15.37      $ 16.71      $ 14.54      $ 13.79  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

                 

Based on net asset value

    1.28 %(d)        1.13      (0.93 )%       12.13      8.00      15.98
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    3.25 %(d)        (14.61 )%       (3.43 )%       21.02      11.67      11.51
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

                 

Total expenses

    2.75 %(e)        2.45      2.15      1.75      1.73      1.82
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly

    2.75 %(e)        2.45      2.14      1.75      1.73      1.82
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs(f)

    1.14 %(e)        1.12      1.12      1.11      1.12      1.13
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    4.00 %(e)        4.06      4.45      4.89      5.24      5.89
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

                 

Net assets applicable to Common Shareholders, end of period (000)

  $ 186,684       $ 188,452      $ 195,029      $ 206,414      $ 193,299      $ 189,548  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of period (000)

  $ 94,500       $ 94,500      $ 94,500      $ 94,500      $ 94,500      $ 94,500  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of period

  $ 297,550       $ 299,420      $ 306,379      $ 318,428      $ 304,549      $ 300,580  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of period (000)

  $ 36,057       $ 31,865      $ 32,047      $ 31,780      $ 28,961      $ 28,461  
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    20       9      16      14      11      26
 

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(a) 

Based on average Common Shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices.

(d) 

Aggregate total return.

(e) 

Annualized.

(f) 

Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      49  


Notes to Financial Statements  (unaudited)

 

1.

ORGANIZATION

The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to herein collectively as the “Trusts”, or individually as a “Trust”:

 

Trust Name   Herein Referred To As    Organized    Diversification
Classification

BlackRock California Municipal Income Trust

  BFZ    Delaware    Diversified

BlackRock Municipal 2030 Target Term Trust

  BTT    Delaware    Diversified

BlackRock Municipal Income Investment Trust

  BBF    Delaware    Diversified

BlackRock New York Municipal Income Trust

  BNY    Delaware    Diversified

The Board of Trustees of the Trusts are collectively referred to throughout this report as the “Board of Trustees” or the “Board,” and the trustees thereof are collectively referred to throughout this report as “Trustees”. The Trusts determine and make available for publication the net asset values (“NAVs”) of their Common Shares on a daily basis.

The Trusts, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of non-index fixed-income mutual funds and all BlackRock-advised closed-end funds referred to as the Fixed-Income Complex.

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Trust is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the “trade dates”). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis.

Segregation and Collateralization: In cases where a Trust enters into certain investments (e.g., futures contracts) or certain borrowings (e.g., TOB Trust transactions) that would be treated as “senior securities” for 1940 Act purposes, a Trust may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowing to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Trusts may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions from net investment income are declared monthly and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP. Distributions to Preferred Shareholders are accrued and determined as described in Note 10.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Trust’s Board, the independent Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust, as applicable. Deferred compensation liabilities are included in the Trustees’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance with the Plan.

Recent Accounting Standards: In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management is currently evaluating the impact of this guidance to the Trusts.

In August 2018, the Financial Accounting Standards Board issued Accounting Standards Update 2018-13 “Changes to the Disclosure Requirements for Fair Value Measurement” which modifies disclosure requirements for fair value measurements. The guidance is effective for fiscal years beginning after December 15, 2019 and for interim periods within those fiscal years. Management is currently evaluating the impact of this guidance to the Trusts.

Indemnifications: In the normal course of business, a Trust enters into contracts that contain a variety of representations that provide general indemnification. A Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Trust, which cannot be predicted with any certainty.

Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

 

 

50    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Trusts’ investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determine the fair values of their financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of each Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Trust’s assets and liabilities:

 

   

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

 

   

Investments in open-end U.S. mutual funds are valued at NAV each business day.

 

   

Futures contracts traded on exchanges are valued at their last sale price.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Trust might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

 

   

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Trust has the ability to access

 

   

Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

 

   

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including each Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with each Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Forward Commitments and When-Issued Delayed Delivery Securities: Certain Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A Trust may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a Trust may be required to pay more at settlement than the security is worth. In

 

 

NOTES TO FINANCIAL STATEMENTS      51  


Notes to Financial Statements  (unaudited) (continued)

 

addition, a Trust is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a Trust assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a Trust’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

Municipal Bonds Transferred to TOB Trusts: Certain trusts leverage their assets through the use of “TOB Trust” transactions. The trusts transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating trusts that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a trust provide the trust with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The trusts may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other trusts managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a trust has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the trusts ratably in proportion to their participation in the TOB Trust.

TOB Trusts are supported by a liquidity facility provided by a third party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

The TOB Trust may be collapsed without the consent of a trust, upon the occurrence of a termination event, as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Trusts) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.

While a trust’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a Trust to borrow money for purposes of making investments. Each trust’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a trust. A trust typically invests the cash received in additional municipal bonds.

Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a trust’s Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a trust’s payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a trust on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a trust incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of deferred offering costs in the Statements of Operations.

Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:

 

     Interest
Expense
     Liquidity
Fees
     Other
Expenses
     Total  

BFZ

  $ 1,270,179      $ 376,550      $ 116,894      $ 1,763,623  

BTT

    2,101,198        512,849        284,133        2,898,180  

BBF

    364,420        101,650        37,757        503,827  

BNY

    265,910        80,875        20,998        367,783  

For the six months ended January 31, 2019, the following table is a summary of each Trust’s TOB Trusts:

 

     Underlying
Municipal Bonds
Transferred to
TOB Trusts
 (a)
     Liability for
TOB Trust
Certificates
 (b)
     Range of
Interest Rates
on TOB Trust
Certificates at
Period End
     Average
TOB Trust
Certificates
Outstanding
     Daily Weighted
Average Rate
of Interest and
Other Expenses
on TOB Trusts
 

BFZ

  $ 340,172,070      $ 162,130,035        1.25% — 1.54%      $ 160,508,050        2.17

BTT

    447,689,638        261,819,915        1.32 — 1.46           261,819,915        2.20  

BBF

    77,414,230        43,928,144        1.25 — 1.49           45,700,693        2.19  

BNY

    65,475,882        36,057,166        1.30 — 1.45           33,467,216        2.18  

 

  (a) 

The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the trusts, as TOB

 

 

 

52    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

  Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the trusts, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts.  
  (b) 

TOB Trusts may be structured on a non-recourse or recourse basis. When a Trust invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a trust invests in a TOB Trust on a recourse basis, a trust enters into a reimbursement agreement with the Liquidity Provider where a trust is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a trust invests in a recourse TOB Trust, a trust will bear the risk of loss with respect to any Liquidation Shortfall. If multiple trusts participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a trust at January 31, 2019, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedule of Investments including the maximum potential amounts owed by a trust at January 31, 2019.

 

For the six months ended January 31, 2019, the following table is a summary of each Trust’s Loan for TOB Trust Certificates:

 

     Loans
Outstanding
at Period End
     Range of
Interest Rates
on Loans at
Period End
     Average
Loans
Outstanding
     Daily Weighted
Average Rate
of Interest and
Other Expenses
on Loans
 

BFZ . . .

  $           $ 504,820        0.82

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk), and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Trusts and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Trusts are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: Each Trust entered into an Investment Advisory Agreement with the Manager, the Trusts’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, to provide investment advisory and administrative services. The Manager is responsible for the management of each Trust’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Trust.

For such services, each Trust, except BTT, pays the Manager a monthly fee at an annual rate equal to the following percentages of the average weekly value of each Trust’s managed assets.

 

     BFZ      BBF      BNY  

Investment advisory fees

    0.58      0.57      0.60

For purposes of calculating these fees, for each Trust except for BTT, “managed assets” means the total assets of the Trust minus the sum of its accrued liabilities (other than the aggregate indebtedness constituting financial leverage).

For purposes of calculating these fees for BTT, “managed assets” means the total assets of the Trust (including any assets attributable to money borrowed for investment purposes) minus the sum of its accrued liabilities (other than money borrowed for investment purposes).

For such services, BTT pays the Manager a monthly fee at an annual rate equal to 0.40% of the average daily value of the Trust’s managed assets.

 

 

 

NOTES TO FINANCIAL STATEMENTS      53  


Notes to Financial Statements  (unaudited) (continued)

 

Expense Waivers: With respect to each Trust, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended January 31, 2019, the amounts waived were as follows:

 

     BFZ      BTT      BBF      BNY  

Amounts waived

  $ 478      $ 7,544      $ 317      $ 354  

The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Trust’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2019. The agreement can be renewed for annual periods thereafter, and may be terminated on 90 days’ notice, each subject to approval by a majority of the Trust’s Independent Trustees. For the six months ended January 31, 2019, there were no fees waived by the Manager pursuant to these arrangements.

Trustees and Officers: Certain Trustees and/or officers of the Trusts are trustees and/or officers of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

The Trusts may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the six months ended December 31, 2019, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

 

     Purchase      Sales      Net Realized
Gain (Loss)
 

BBF

  $      $ 259,416      $  

 

7.

PURCHASES AND SALES

For the six months ended January 31, 2019, purchases and sales of investments, excluding short-term securities, were as follows:

 

     BFZ      BTT      BBF      BNY  

Purchases

  $ 174,005,678      $ 326,852,949      $ 40,491,557      $ 72,011,083  

Sales

    171,529,044        355,149,024        44,693,806        63,722,161  

 

8.

INCOME TAX INFORMATION

It is each Trust’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Each Trust files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Trust’s U.S. federal tax returns generally remains open for each of the four years ended July 31, 2018. The statutes of limitations on each Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Trusts as of January 31, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Trusts’ financial statements.

As of July 31, 2018, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

 

Expires July 31,    BTT      BBF      BNY  

No expiration date(a)

   $ 24,254,453      $ 2,500,578      $ 3,437,611  

2019

            651,464        1,982,931  
  

 

 

    

 

 

    

 

 

 
   $ 24,254,453      $ 3,152,042      $ 5,420,542  
  

 

 

    

 

 

    

 

 

 

 

  (a) 

Must be utilized prior to losses subject to expiration

 

As of January 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

 

     BFZ     BTT     BBF     BNY  

Tax cost

  $ 608,889,173     $ 2,335,723,222     $ 181,774,162     $ 267,327,988  
 

 

 

   

 

 

   

 

 

   

 

 

 

Gross unrealized appreciation

  $ 17,915,917     $ 59,723,125     $ 8,318,516     $ 13,786,891  

Gross unrealized depreciation

    (4,374,079     (19,812,989     (1,220,180     (1,590,673
 

 

 

   

 

 

   

 

 

   

 

 

 

Net unrealized appreciation

  $ 13,541,838     $ 39,910,136     $ 7,098,336     $ 12,196,218  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

9.

PRINCIPAL RISKS

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

 

 

54    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease a Trust’s ability to buy or sell bonds. As a result, a Trust may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If a Trust needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

In the normal course of business, certain Trusts invest in securities or other instruments and may enter into certain transactions, and such activities subject each Trust to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations.

Each Trust may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Trust to reinvest in lower yielding securities. Each Trust may also be exposed to reinvestment risk, which is the risk that income from each Trust’s portfolio will decline if each Trust invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Trust portfolio’s current earnings rate.

The Trusts may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Trusts reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Trust.

There is no assurance that BTT will achieve its investment objective and BTT may return less than $25.00 per share. As BTT approaches its scheduled termination date, it is expected that the maturity of BTT’s portfolio securities will shorten, which is likely to reduce BTT’s income and distributions to shareholders.

A Trust structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

Should short-term interest rates rise, the Trusts’ investments in the TOB Trusts may adversely affect the Trusts’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Trusts’ NAVs per share.

The SEC and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Trusts’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Trusts, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.

Counterparty Credit Risk: The Trusts may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Trusts.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Trusts since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Trust does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Trusts.

Concentration Risk: Each of BFZ and BNY invests a substantial amount of its assets in issuers located in a single state or limited number of states. This may subject each Trust to the risk that economic, political or social issues impacting a particular state or group of states could have an adverse and disproportionate impact on the income from, or the value or liquidity of, the Trusts’ respective portfolios. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.

As of period end, BFZ invested a significant portion of its assets in securities in the county, city, special district and school district sector and BTT invested a significant portion of its assets in the transportation sector. Changes in economic conditions affecting such sectors would have a greater impact on the Trusts and could affect the value, income and/or liquidity of positions in such securities.

The Trusts invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates. The Federal Reserve has begun to raise the Federal Funds rate, and each increase results in more pronounced interest rate risk in the current market environment.

 

 

NOTES TO FINANCIAL STATEMENTS      55  


Notes to Financial Statements  (unaudited) (continued)

 

 

10.

CAPITAL SHARE TRANSACTIONS

Each Trust is authorized to issue an unlimited number of shares, all of which were initially classified as Common Shares. The par value for each Trust’s Common Shares is $0.001. The par value for each Trust’s Preferred Shares outstanding is $0.001. The Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders.

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

     BBF      BNY  

Six Months Ended January 31, 2019

    1,306         

Year Ended July 31, 2018

    7,282        12,500  

For the six months ended January 31, 2019 and year ended July 31, 2018, shares issued and outstanding remained constant for BFZ and BTT.

On November 15, 2018, the Board authorized BFZ, BBF and BNY to participate in an open market share repurchase program. Under the program, BFZ, BBF and BNY may repurchase up to 5% of its outstanding common shares through November 30, 2019, based on common shares outstanding as of the close of business on November 30, 2018, subject to certain conditions. There is no assurance that the Trusts will purchase shares in any particular amounts. For the six months ended January 31, 2019, BFZ, BBF and BNY did not repurchase any shares.

Preferred Shares

A Trust’s Preferred Shares rank prior to its Common Shares as to the payment of dividends by the Trust and distribution of assets upon dissolution or liquidation of the Trust. The 1940 Act prohibits the declaration of any dividend on Common Shares or the repurchase of Common Shares if the Trust fails to maintain asset coverage of at least 200% of the liquidation preference of the its outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, a Trust is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with its Preferred Shares or repurchasing such shares if the Trust fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares’ governing instruments or comply with the basic maintenance amount requirement of the ratings agencies rating the Preferred Shares.

Holders of Preferred Shares have voting rights equal to the voting rights of holders of Common Shares (one vote per share) and vote together with holders of Common Shares (one vote per share) as a single class on certain matters. Holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members of the Board, (ii) elect the full Board if dividends on the Preferred Shares are not paid for a period of two years and (iii) a separate class vote to amend the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred Shares, voting as a separate class, to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Fund’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

VRDP Shares

BBF (for purposes of this section, a “VRDP Trust”), has issued Series W-7 VRDP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933 as amended, (the “Securities Act”). The VRDP Shares include a liquidity feature and may be subject to a special rate period. As of period end, the VRDP Shares outstanding were as follows:

 

     Issue
Date
     Shares
Issued
     Aggregate
Principal
     Maturity
Date
 

BBF

    09/15/11        342      $ 34,200,000        10/01/41  

BBF

    05/16/16        178        17,800,000        10/01/41

Redemption Terms: A VRDP Trust is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, a VRDP Trust is required to begin to segregate liquid assets with the Trust’s custodian to fund the redemption. In addition, a VRDP Trust is required to redeem certain of its outstanding VRDP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the VRDP Shares may also be redeemed, in whole or in part, at any time at the option of a VRDP Trust. The redemption price per VRDP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends.

Liquidity Feature: VRDP Shares are subject to a fee agreement between the VRDP Trust and the liquidity provider that requires a per annum liquidity fee and, in some cases, an upfront or initial commitment fee, payable to the liquidity provider. These fees, if applicable, are shown as liquidity fees in the Statements of Operations. The fee agreement is set to expire, unless renewed or terminated in advance, as follows:

 

      BBF  

Expiration Date

     10/21/19  

In the event the fee agreement is not renewed or is terminated in advance, and the VRDP Trust does not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. In the event of such mandatory purchase, the VRDP Trust is required to redeem the VRDP Shares six months after the purchase date. Immediately after such mandatory purchase, the VRDP Trust is required to begin

 

 

56    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

to segregate liquid assets with its custodian to fund the redemption. There is no assurance a VRDP Trust will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Remarketing: A VRDP Trust may incur remarketing fees on the aggregate principal amount of all its VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. During any special rate period (as described below), a VRDP Trust may incur nominal or no remarketing fees.

Ratings: As of period end, the VRDP Shares were assigned the following long-term ratings:

 

     Moody’s      Fitch  

BBF

    Aa1        AAA  

Any short-term ratings on VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s and Fitch. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories.

Special Rate Period: A VRDP Trust may commence a “special rate period” with respect to its VRDP Shares, during which the VRDP Shares will not be subject to any remarketing and the dividend rate will be based on a predetermined methodology. During a special rate period, short-term ratings on VRDP Shares are withdrawn. The following VRDP Trust is set to commence a special rate period:

 

     Commencement
Date
     Expiration Date
as of period ended
January 31, 2019
 

BBF

    October 22, 2015      April 17, 2019  

 

  *

Issuance date of VRDP Shares

 

Prior to the expiration date, the VRDP Trust and the VRDP Shares holder may mutually agree to extend the special rate period. If a special rate period is not extended, the VRDP Shares will revert to remarketable securities upon the termination of the special rate period and will be remarketed and available for purchase by qualified institutional investors.

During the special rate period: (i) the liquidity and fee agreements remain in effect, (ii) VRDP Shares remain subject to mandatory redemption by the VRDP Trust on the maturity date, (iii) VRDP Shares will not be remarketed or subject to optional or mandatory tender events, (iv) the VRDP Trust is required to comply with the same asset coverage, basic maintenance amount and leverage requirements for the VRDP Shares as is required when the VRDP Shares are not in a special rate period, (v) the VRDP Trust will pay dividends monthly based on the sum of the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index rate and a percentage per annum based on the long-term ratings assigned to the VRDP Shares and (vi) the VRDP Trust will pay nominal or no fees to the liquidity provider and remarketing agent.

If a VRDP Trust redeems its VRDP Shares prior to end of the special rate period and the VRDP Shares have long-term ratings above A1/A+ and its equivalent by all ratings agencies then rating the VRDP Shares, then such redemption may be subject to a redemption premium payable to the holder of the VRDP Shares based on the time remaining in the special rate period, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.

Dividends: Except on the Special Rate Period, dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly based upon either short-term rating. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on, among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed.

For the six months ended January 31, 2019, the annualized dividend rate for BBF’s VRDP Shares was 2.44%.

VMTP Shares

BFZ and BNY (collectively, the “VMTP Trusts”) have issued Series W-7 VMTP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act. The VMTP Shares are subject to certain restrictions on transfer, and VMTP Trusts may also be required to register the VMTP Shares for sale under the Securities Act under certain circumstances.

As of period end, the VMTP Shares outstanding were as follows:

 

     Issue
Date
     Shares
Issued
     Aggregate
Principal
    

Term

Redemption

Date

 

BFZ

    3/22/12        1,713      $ 171,300,000        03/30/20  

BNY

    3/22/12        945        94,500,000        03/30/20  

Redemption Terms: Each VMTP Trust is required to redeem its VMTP Shares on the term redemption date, unless earlier redeemed or repurchased or unless extended. There is no assurance that a term will be extended further or that any VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months prior to the term redemption date, a VMTP Trust is required to begin to segregate liquid assets with its

 

 

NOTES TO FINANCIAL STATEMENTS      57  


Notes to Financial Statements  (unaudited) (continued)

 

custodian to fund the redemption. In addition, a VMTP Trust is required to redeem certain of its outstanding VMTP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, VMTP Shares may be redeemed, in whole or in part, at any time at the option of the VMTP Trust. The redemption price per VMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends and applicable redemption premium. If a VMTP Trust redeems its VMTP Shares prior to the term redemption date and the VMTP Shares have long-term ratings above A1/A+ or its equivalent by the ratings agencies then rating the VMTP Shares, then such redemption may be subject to a prescribed redemption premium (up to 3% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining until the term redemption date, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.

Dividends: Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to the SIFMA Municipal Swap Index or to a percentage of the one-month LIBOR rate, as set forth in the VMTP Shares governing instrument. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by the ratings agencies then rating the VMTP Shares. At the date of issuance, the VMTP Shares were assigned long-term ratings:

 

     Moody’s      Fitch  

BFZ

    Aa2        AAA  

BNY

    Aa2        AAA  

The dividend rate on the VMTP Shares is subject to a step-up spread if the VMTP Trusts fail to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and complying with certain asset coverage and leverage requirements.

For the six months ended January 31, 2019, the average annualized dividend rates for the VMTP Shares were as follows.

 

     BFZ      BNY  

Rate

    2.38      2.38

RVMTP Shares

BTT has issued Series W-7 RVMTP Shares, $5,000,000 liquidation preference per share, in privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act. The RVMTP Shares are subject to certain restrictions on transfer outside of a remarketing.

As of period end, the RVMTP Shares outstanding of were as follows:

 

     Issue
Date
     Shares
Issued
     Aggregate
Principal
    

Term
Redemption

Date

 

BTT

    01/10/2013        50      $ 250,000,000        12/31/2030  
    01/30/2013        50        250,000,000        12/31/2030  
      02/20/2013        50        250,000,000        12/31/2030  

Redemption Terms: BTT is required to redeem its RVMTP Shares on the term redemption date or within six months of an unsuccessful remarketing, unless earlier redeemed or repurchased. There is no assurance that RVMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the RVMTP Shares. In addition, BTT is required to redeem certain of its outstanding RVMTP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, RVMTP Shares may be redeemed, in whole or in part, at any time at the option of BTT. The redemption price per RVMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends. The RVMTP Shares are subject to certain restrictions on transfer outside of a remarketing. The RVMTP Shares are subject to remarketing upon 90 days’ notice by holders of the RVMTP Shares and 30 days’ notice by BTT. Each remarketing must be at least six months apart from the last remarketing. A holder of RVMTP Shares may submit notice of remarketing only if such holder requests a remarketing of at least the lesser of (i) $100,000,000 of RVMTP Shares or (ii) all of the RVMTP Shares held by such holder.

Dividends: Dividends on the RVMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to a percentage of the one-month LIBOR rate. The fixed rate spread may be adjusted at each remarketing or upon the agreement of BTT and the then-holder(s) of the RVMTP Shares. In the event that all of the RVMTP Shares submitted for remarketing are not successfully remarketed, a failed remarketing would occur, and all holders would retain their RVMTP Shares. In the event of a failed remarketing, the fixed rate spread would be set at the fixed rate spread applicable to such failed remarketing. BTT has the right to reject any fixed spread determined at a remarketing, and such rejection would result in a failed remarketing and the fixed rate spread would be set at the fixed rate spread applicable to such failed remarketing. The fixed rate spread applicable due to a failed remarketing depends on whether the remarketing was pursuant to a mandatory or non-mandatory tender. In the case of a failed remarketing following a mandatory tender, the failed remarketing spread would be the sum of the last applicable spread in effect immediately prior to the failed remarketing date for such failed remarketing plus 0.75%. In the case of a failed remarketing not associated with a mandatory tender, the failed remarketing spread would be the sum of the last applicable spread in effect immediately prior to the failed remarketing date for such failed remarketing plus 0.25%.

For the six months ended January 31, 2019, the average annualized dividend rate for the RVMTP Shares was 2.26%.

Remarketing: In the event of a failed remarketing that is not subsequently cured, BTT will be required to redeem the RVMTP Shares subject to such failed remarketing on a date that is approximately six months from the remarketing date for such failed remarketing, provided that no redemption of any RVMTP Share may occur within one year of the date of issuance of such RVMTP Share. At the date of issuance and as of period end, the RVMTP Shares were assigned long-term ratings of Aa1 from Moody’s and AAA from Fitch. The dividend rate on the RVMTP Shares is subject to a step-up spread if BTT fails to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and complying with certain asset coverage and leverage requirements.

 

 

58    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (unaudited) (continued)

 

During the six months ended January 31, 2019, no RVMTP Shares were tendered for remarketing.

For the six months ended January 31, 2019, RVMTP Shares issued and outstanding of BTT Trust remained constant.

Offering Costs: The Trusts incurred costs in connection with the issuance of VRDP, VMTP and RVMTP Shares, which were recorded as a direct deduction from the carrying value of the related debt liability and will be amortized over the life of the VRDP, VMTP and RVMTP Shares. with the exception of upfront fees paid to the liquidity provider which were amortized over the life of the liquidity agreement. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

Financial Reporting: The VRDP, VMTP and RVMTP Shares are considered debt of the issuer; therefore, the liquidation preference, which approximates fair value of the VRDP, VMTP and RVMTP Shares, is recorded as a liability in the Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP, VMTP and RVMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VRDP, VMTP and RVMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VRDP, VMTP and RVMTP Shares are generally classified as tax-exempt income for tax-reporting purposes. Dividends and amortization of deferred offering costs on VRDP, VMTP and RVMTP Shares are included in interest expense, fees and amortization of offering costs in the Statements of Operations:

 

     Dividends
Accrued
     Deferred
Offering Costs
Amortization
 

BFZ

  $ 2,055,694      $  

BTT

    8,556,545        15,763  

BBF

    640,099        3,081  

BNY

    1,134,052         

 

11.

REGULATION S-X AMENDMENTS

On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to Regulation S-X in this shareholder report. The amendments impacted certain disclosure presentation on the Statements of Assets and Liabilities, Statements of Changes in Net Assets and Notes to the Financial Statements.

Prior year distribution information and undistributed net investment income in the Statements of Changes in Net Assets has been modified to conform to the current year presentation in accordance with the Regulation S-X changes.

Distributions for the year ended July 31, 2018, were classified as follows:

 

     Net Investment Income  

BFZ

  $ 21,374,933  

BTT

    60,111,851  

BBF

    8,338,505  

BNY

    8,310,969  

Undistributed (distributions in excess of) net investment income as of July 31, 2018, is as follows:

 

     Undistributed
Net Investment Income
 

BFZ

  $ (307,812

BTT

    6,241,370  

BBF

    294,524  

BNY

    796,400  

 

12.

SUBSEQUENT EVENTS

Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through the date the financial statements were issued and the following items were noted:

 

     Common Dividend
Per Share
           Preferred Shares (c)  
     Paid (a)      Declared (b)            Shares      Series      Declared  

BFZ

  $ 0.0445      $ 0.0445         VMTP        W-7      $ 310,593  

BTT

    0.0624        0.0624         RVMTP        W-7        1,408,110  

BBF

    0.0580        0.0580         VRDP        W-7        100,267  

BNY

    0.0445        0.0445               VMTP        W-7        171,343  

 

  (a) 

Net investment income dividend paid on March 1, 2019 to Common Shareholders of record on February 15, 2019.

 
  (b) 

Net investment income dividend declared on March 1, 2019, payable to Common Shareholders of record March 15, 2019.

 
  (c) 

Dividends declared for period February 1, 2019 to February 28, 2019.

 

 

 

NOTES TO FINANCIAL STATEMENTS      59  


Trustee and Officer Information

 

Richard E. Cavanagh, Co-Chair of the Board and Trustee

Karen P. Robards, Co-Chair of the Board and Trustee

Michael J. Castellano, Trustee

Cynthia L. Egan, Trustee

Frank J. Fabozzi, Trustee

Henry Gabbay, Trustee

R. Glenn Hubbard, Trustee

W. Carl Kester, Trustee

Catherine A. Lynch, Trustee

Robert Fairbairn, Trustee

John M. Perlowski, Trustee, President and Chief Executive Officer

Jonathan Diorio, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

Janey Ahn, Secretary

 

As of the date of this report, the portfolio managers for BNY are Walter O’Connor and Michael Perilli. Mr. Perilli joined BNY’s portfolio management team effective October 1, 2018. Mr. Perilli has been a Vice President of BlackRock, Inc. since 2014, and as Associate thereof from 2008 to 2014.

Effective January 1, 2019, Richard E. Cavanagh and Karen P. Robards were appointed as a Co-Chair of the Board. Prior to January 1, 2019, Mr. Cavanagh served as Chair of the Board and Ms. Robards served as Vice Chair of the Board. In addition, effective January 1, 2019, Henry Gabbay was appointed as a Trustee of each Trust.

 

Investment Adviser

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent and Custodian

State Street Bank and Trust Company

Boston, MA 02111

Transfer Agent

Computershare Trust Company, N.A.

Canton, MA 02021

VRDP Tender and Paying Agent, VMTP Tender and Paying Agent and RVMTP Redemption and Paying Agent

The Bank of New York Mellon

New York, NY 10286

VRDP Liquidity Provider

Barclays Bank PLC

New York, NY 10019

VRDP Remarketing Agent

Barclays Capital, Inc.

New York, NY 10019

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Trusts

100 Bellevue Parkway

Wilmington, DE 19809

 

 

 

60    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Additional Information

 

Section 19(a) Notices

The amounts and sources of distributions reported are estimates and are being provided to you pursuant to regulatory requirements and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon each Trust’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. Each Trust will provide a Form 1099-DIV each calendar year that will tell you how to report these distributions for U.S. federal income tax purposes.

January 31, 2019

 

  

 

  Total Cumulative Distributions
for the Fiscal Period
           % Breakdown of the Total Cumulative
Distributions for the Fiscal Period
 
     Net
Investment
Income
    Net Realized
Capital Gains
Short-Term
    Net Realized
Capital Gains
Long-Term
    Return of
Capital
    Total Per
Common
Share
           Net
Investment
Income
    Net Realized
Capital Gains
Short-Term
    Net Realized
Capital Gains
Long-Term
    Return of
Capital
    Total Per
Common
Share
 

BBF

  $ 0.358000     $     $     $     $ 0.358000               100%       —%       —%       —%       100%  

Section 19(a) notices for the Trusts, as applicable, are available on the BlackRock website at http://www.blackrock.com.

Trust Certification

The Trusts are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Trusts filed with the SEC the certification of its chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

Dividend Policy

Each Trust’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of distributions, the Trusts may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the distributions paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

General Information

The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.

During the period, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. Except as disclosed on page 60, there have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.

In accordance with Section 23(c) of the Investment Company Act of 1940, each Trust may from time to time purchase shares of its common stock in the open market or in private transactions.

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisers, banks or brokerages may offer this service.

Householding

The Trusts will mail only one copy of shareholder documents, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Trusts at (800) 882-0052.

 

 

ADDITIONAL INFORMATION      61  


Additional Information  (continued)

 

Availability of Quarterly Schedule of Investments

The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Trusts’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com; or by calling (800) 882-0052; and (2) on the SEC’s website at http://www.sec.gov.

Availability of Trust Updates

BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Trusts. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

 

 

62    2019 BLACKROCK SEMI-ANNUAL REPORT TO SHAREHOLDERS


Glossary of Terms Used in this Report

 

Portfolio Abbreviations
AGC    Assured Guarantee Corp.
AGM    Assured Guaranty Municipal Corp.
AMBAC    American Municipal Bond Assurance Corp.
AMT    Alternative Minimum Tax (subject to)
ARB    Airport Revenue Bonds
BAM    Build America Mutual Assurance Co.
CAB    Capital Appreciation Bonds
CIFG    CIFG Assurance North America, Inc.
COP    Certificates of Participation
EDA    Economic Development Authority
EDC    Economic Development Corp.
ERB    Education Revenue Bonds
FHA    Federal Housing Administration
GARB    General Airport Revenue Bonds
GO    General Obligation Bonds
HFA    Housing Finance Agency
IDA    Industrial Development Authority
IDB    Industrial Development Board
ISD    Independent School District
LRB    Lease Revenue Bonds
M/F    Multi-Family
NPFGC    National Public Finance Guarantee Corp.
PILOT    Payment in Lieu of Taxes
PSF-GTD    Permanent School Fund Guaranteed
RB    Revenue Bonds
S/F    Single-Family
SONYMA    State of New York Mortgage Agency
 

 

 

GLOSSARY OF TERMS USED IN THIS REPORT      63  


This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.

 

LOGO

 

CEF-BK6-1/19-SAR    LOGO


Item 2 –   Code of Ethics – Not Applicable to this semi-annual report
Item 3 –   Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 –   Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 –   Audit Committee of Listed Registrants – Not Applicable to this semi-annual report
Item 6 –   Investments
  (a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.
  (b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 –   Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report
Item 8 –   Portfolio Managers of Closed-End Management Investment Companies
 

(a)   Not Applicable to this semi-annual report.

 

(b)   As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR.

Item 9 –   Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 –   Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.
Item 11 –   Controls and Procedures
  (a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
  (b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 –   Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable
Item 13 –   Exhibits attached hereto

 

2


               (a)(1) – Code of Ethics – Not Applicable to this semi-annual report
  (a)(2) – Certifications – Attached hereto
  (a)(3) – Not Applicable
  (a)(4) – Not Applicable
  (b) – Certifications – Attached hereto

 

3


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Municipal 2030 Target Term Trust

 

By:       /s/ John M. Perlowski                
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Municipal 2030 Target Term Trust

Date: April 5, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:       /s/ John M. Perlowski                
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Municipal 2030 Target Term Trust

Date: April 5, 2019

 

By:       /s/ Neal J. Andrews                    
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Municipal 2030 Target Term Trust

Date: April 5, 2019

 

4