Close

Form N-CSR BLACKROCK NEW YORK MUNIC For: Jul 31

October 4, 2019 12:57 PM EDT

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: 811-10337

Name of Fund:  BlackRock New York Municipal Income Trust (BNY)

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

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

Municipal Income 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: 07/31/2019

 


Item 1 – Report to Stockholders


JULY 31, 2019

 

 

ANNUAL REPORT

 

    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.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call Computershare at (800) 699-1236 to request that you continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC or its affiliates, or all funds held with your financial intermediary, as applicable.

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,

Investment performance in the 12 months ended July 31, 2019 was a tale of two markets. The first half of the reporting period was characterized by restrictive monetary policy, deteriorating economic growth, equity market volatility, and rising fear of an imminent recession. During the second half of the reporting period, stocks and bonds rebounded sharply, as restrained inflation and weak economic growth led the U.S. Federal Reserve (the “Fed”) to stop raising interest rates, which led to broad-based optimism that stimulative monetary policy could help forestall a recession.

After the dust settled, the U.S. equity and bond markets posted mixed returns while weathering significant volatility. Less volatile U.S. large cap equities and U.S. bonds advanced, while equities at the high end of the risk spectrum — emerging markets, international developed, and U.S. small cap — posted relatively flat returns.

Fixed-income securities delivered modest positive returns with relatively low volatility, as interest rates declined (and bond prices rose). Longer-term U.S. Treasury yields declined further than short-term Treasury yields. This led to positive returns for U.S. Treasuries and a substantial flattening of the yield curve. Investment grade and high yield corporate bonds also posted positive returns, as the credit fundamentals in corporate markets remained relatively solid.

In the U.S. equity market, volatility spiked in late 2018, 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. These risks manifested in a broad-based sell-off in December, leading to the worst December performance on record since 1931.

Volatility also rose in emerging markets, 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, particularly in mainland China, while Turkey and Argentina became embroiled in currency crises, largely due to hyperinflation in both countries. An economic slowdown in Europe and ongoing uncertainty about Brexit led to modest performance for European equities.

As equity performance faltered and global economic growth slowed, the Fed shifted to a more patient perspective on the economy in January 2019. The Fed left interest rates unchanged for six months, then lowered interest rates for the first time in 11 years in July 2019. Similarly, the European Central Bank signaled a continuation of accommodative monetary policy, while China committed to looser credit conditions and an increase in fiscal spending.

The outpouring of global economic stimulus led to a sharp rally in risk assets throughout the world. Hopes continued to remain high thereafter, as the current economic expansion became the longest in U.S. history. Looking ahead, markets are pricing in additional rate cuts by the Fed over the next year, as investors anticipate a steady shift toward more stimulative monetary policy.

We expect a slowing expansion with additional room to run, as opposed to an economic recession. However, escalating trade tensions and the resulting disruptions in global supply chains have become the greatest risk to the global expansion.

We believe U.S. and emerging market equities remain relatively attractive. Within U.S. equities, companies with high-quality earnings and strong balance sheets offer the most attractive risk/reward trade-off. For bonds, U.S. Treasuries are likely to help buffer against volatility in risk assets, while income from other types of bonds can continue to offer steady returns.

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 July 31, 2019
     6-month   12-month

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

  11.32%   7.99%

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

  5.76   (4.42)

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

  5.64   (2.60)

Emerging market equities
(MSCI Emerging Markets Index)

  0.44   (2.18)

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

  1.23   2.34

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

  6.68   11.16

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

  5.23   8.08

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

  4.98   6.93

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

  5.78   6.91
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  

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

     40  

Statements of Operations

     41  

Statements of Changes in Net Assets

     42  

Statements of Cash Flows

     44  

Financial Highlights

     45  

Notes to Financial Statements

     49  

Report of Independent Registered Public Accounting Firm

     60  

Disclosure of Investment Advisory Agreements

     61  

Automatic Dividend Reinvestment Plans

     65  

Trustee and Officer Information

     66  

Additional Information

     69  

Glossary of Terms Used in this Report

     71  

 

 

          3  


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

 

Municipal Market Conditions

Municipal bonds posted strong total returns during the period, buoyed by rallying interest rates as the Fed turned more dovish late in 2018 on the back of slowing global growth and trade uncertainties, indicated by a commitment to sustain the current economic expansion, and ultimately cut interest rates for the first time since 2008 at its July meeting.

 

 
Outside of the favorable rate backdrop, municipal technicals remained incredibly supportive with strong demand outpacing moderate supply. 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 July 31, 2019, municipal bond funds experienced net inflows of approximately $47 billion (based on data from the Investment Company Institute), although they displayed some bouts of volatility. For the same 12-month period, total   S&P Municipal Bond Index

Total Returns as of July 31, 2019

  6 months: 4.98%

12 months: 6.93%

 

new issuance underwhelmed from a historical perspective at just $324 billion (below the $370 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 transitioned the market to a favorable net negative supply environment in which reinvestment income (coupons, calls, and maturities) largely outstripped gross issuance and provided a powerful technical tailwind.

A Closer Look at Yields

 

LOGO

From July 31, 2018 to July 31, 2019, yields on AAA-rated 30-year municipal bonds decreased by 77 basis points (“bps”) from 3.01% to 2.24%, while ten-year rates decreased by 93 bps from 2.45% to 1.52% and five-year rates decreased by 86 bps from 1.97% to 1.11% (as measured by Thomson Municipal Market Data). As a result, the municipal yield curve flattened over the 12-month period with the spread between two- and 30-year maturities flattening by 22 bps, led by 38 bps of flattening between two- and ten-year maturities.

During the same time period, tax-exempt municipal bonds outperformed duration matched U.S. Treasuries, resulting in stretched relative valuations across the curve. However, we believe the impact of tax reform reset the standard for municipal-to-Treasury ratios. Given that the corporate tax rate was lowered much more than the individual rate, institutions now have less incentive to own tax-exempt municipal bonds, while individuals are more incentivized. In a more retail-driven market, lower ratios are likely sustainable as individuals are focused on generating tax-free income and less concerned with relative valuations. 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. S&P Global Inc.’s 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 July 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 S&P 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 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 (after paying the leverage costs) from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings (less the leverage liability) 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 July 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 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 July 31, 2019 ($13.50)(a)

  3.69%

Tax Equivalent Yield(b)

  8.04%

Current Monthly Distribution per Common Share(c)

  $0.0415

Current Annualized Distribution per Common Share(c)

  $0.4980

Leverage as of July 31, 2019(d)

  40%

 

  (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended July 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BFZ(a)(b)

    11.96      8.89

Lipper California Municipal Debt Funds(c)

    16.62        8.89  

 

  (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:

Municipal bonds produced a healthy gain in the 12-month period, largely as a result of the sharp decline in U.S. Treasury yields from November onward. (Prices and yields move in opposite directions). Government bonds were boosted by the combination of slowing economic growth and the Fed’s pivot toward a more accommodative monetary policy. Tax-exempt issues gained further support from a continued improvement in municipal finances and favorable supply-and-demand trends in the market.

California municipal debt slightly lagged the national index, primarily due to elevated new issuance and a reversion from the state’s outperformance in 2017 and the first half of 2018.

The Trust benefited from its position in longer-duration securities in an environment of falling yields. (Duration is a measure of interest-rate sensitivity.) The Trust’s use of leverage also added value at a time of positive market performance. At the sector level, positions in transportation, tax-backed local, school district, utility and education issues provided the strongest returns.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Given that U.S. Treasury yields fell, as prices rose, this strategy 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 ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

  $ 13.50     $ 12.75        5.88    $ 13.53      $ 11.83  

Net Asset Value

    15.25       14.81        2.97        15.25        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   07/31/19     07/31/18  

County/City/Special District/School District

    36     29

Transportation

    17       18  

Utilities

    15       12  

Education

    11       16  

Health

    11       12  

State

    6       9  

Tobacco

    4       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

    7

2020

    2  

2021

    7  

2022

    6  

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   07/31/19     07/31/18  

AAA/Aaa

    9     7

AA/Aa

    73       72  

A

    11       14  

BBB/Baa

    (b)      1  

BB/Ba

    1       1  

B

          1  

CC

    1        

N/R

    5       4  

 

  (a)

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings 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 July 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 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 July 31, 2019 ($23.49)(a)

  3.19%

Tax Equivalent Yield(b)

  5.39%

Current Monthly Distribution per Common Share(c)

  $0.0624

Current Annualized Distribution per Common Share(c)

  $0.7488

Leverage as of July 31, 2019(d)

  36%

 

  (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended July 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BTT(a)(b)

    13.45      12.17

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

    14.23        8.56  

 

  (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:

Municipal bonds produced a healthy gain in the 12-month period, largely as a result of the sharp decline in U.S. Treasury yields from November onward. (Prices and yields move in opposite directions). Government bonds were boosted by the combination of slowing economic growth and the Fed’s pivot toward a more accommodative monetary policy. Tax-exempt issues gained further support from a continued improvement in municipal finances and a favorable supply-and-demand trends in the market.

The Trust’s positions in the state tax-backed, health care and transportation sectors contributed to performance. The Trust’s use of leverage also aided results by enhancing income and amplifying the effect of the rising market. The Trust further benefited from its positions in bonds with maturities of ten years and above at a time in which longer-term bonds outperformed. Positions in BBB rated and non-investment grade securities added value, as lower-quality bonds benefited from investors’ robust appetite for higher-yielding securities.

Reinvestment had an adverse effect on the Trust’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates compared to bonds that were issued ten-plus years ago in a higher interest rate environment.

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 ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

  $ 23.49     $ 21.43        9.61    $ 23.52      $ 19.92  

Net Asset Value

    25.60       23.62        8.38        25.60        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   07/31/19     07/31/18  

Transportation

    24     23

Health

    18       19  

State

    15       10  

County/City/Special District/School District

    14       15  

Corporate

    9       8  

Education

    8       12  

Utilities

    7       7  

Tobacco

    3       3  

Housing

    2       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

    1

2020

    4  

2021

    1  

2022

    27  

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   07/31/19     07/31/18  

AAA/Aaa

    4     3

AA/Aa

    30       32  

A

    37       37  

BBB/Baa

    15       17  

BB/Ba

    3       2  

B

    2       1  

N/R(b)

    9       8  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings 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 July 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 July 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 July 31, 2019 ($14.25)(a)

  4.55%

Tax Equivalent Yield(b)

  7.69%

Current Monthly Distribution per Common Share(c)

  $0.0540

Current Annualized Distribution per Common Share(c)

  $0.6480

Leverage as of July 31, 2019(d)

  39%

 

  (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended July 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BBF(a)(b)

    12.38      7.49

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

    14.23        8.56  

 

  (a) 

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

 
  (b) 

The Trust moved from a discount to NAV to a premium 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:

Municipal bonds produced a healthy gain in the 12-month period, largely as a result of the sharp decline in U.S. Treasury yields from November onward. (Prices and yields move in opposite directions). Government bonds were boosted by the combination of slowing economic growth and the Fed’s pivot toward a more accommodative monetary policy. Tax-exempt issues gained further support from a continued improvement in municipal finances and a favorable balance of supply and demand in the market.

The Trust’s use of leverage aided results by enhancing income and amplifying the effect of the rising market. The Trust also benefited from its positions in bonds with maturities of 20 years and above given the outperformance of longer-term debt. At the sector level, health care and state tax-backed issues were strong contributors. The Trust further benefited from its positions in BBB rated and non-investment grade securities, which outpaced higher-quality credits.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as prices rose, this strategy detracted from Trust performance.

Reinvestment had an adverse effect on the Trust’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates compared to bonds that were issued when yields were higher.

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 ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

  $ 14.25      $   13.37        6.58    $ 14.65      $ 11.80  

Net Asset Value

    14.14        13.87        1.95        14.14        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   07/31/19     07/31/18  

Transportation

    21     19

County/City/Special District/School District

    21       22  

Health

    20       16  

Utilities

    9       13  

Housing

    8       3  

State

    8       9  

Tobacco

    7       7  

Education

    5       9  

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

    12

2020

    10  

2021

    12  

2022

    3  

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   07/31/19     07/31/18  

AAA/Aaa

    5     7

AA/Aa

    30       43  

A

    26       17  

BBB/Baa

    15       16  

BB/Ba

    2       4  

B

    2       3  

C

    1        

N/R(b)

    19       10  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings 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 July 31, 2019 and July 31, 2018, the market value of unrated securities deemed by the investment adviser to be investment grade represents 10% and 1%, respectively, of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      11  


Trust Summary  as of July 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 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 July 31, 2019 ($13.81)(a)

  3.87%

Tax Equivalent Yield(b)

  7.68%

Current Monthly Distribution per Common Share(c)

  $0.0445

Current Annualized Distribution per Common Share(c)

  $0.5340

Leverage as of July 31, 2019(d)

  40%

 

  (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. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments on page 5.

 

Performance

Returns for the 12 months ended July 31, 2019 were as follows:

 

    Returns Based On  
     Market Price      NAV  

BNY(a)(b)

    14.88      8.33

Lipper New York Municipal Debt Funds(c)

    13.76        8.41  

 

  (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:

Municipal bonds produced a healthy gain in the 12-month period, largely as a result of the sharp decline in U.S. Treasury yields from November onward. (Prices and yields move in opposite directions). Government bonds were boosted by the combination of slowing economic growth and the Fed’s pivot toward a more accommodative monetary policy. Tax-exempt issues gained further support from a continued improvement in municipal finances and a favorable balance of supply and demand in the market.

New York municipal bonds trailed the national market by a narrow margin, as their slightly lower average duration (interest-rate sensitivity) was a small headwind for relative performance. New York municipal bonds also have a lower yield than the national index since they are typically of higher average credit quality.

The Trust’s use of leverage aided results by enhancing income and amplifying the effect of the rising market. The Trust also benefited from its positions in bonds with maturities of 20 years and above given the outperformance of longer-term debt. At the sector level, transportation and local tax-backed issues were strong contributors. The Trust further benefited from its positions in BBB rated and non-investment grade securities, which outperformed higher-quality credits.

The Trust sought to manage interest rate risk using U.S. Treasury futures. Since U.S. Treasury yields fell, as prices rose, this strategy detracted from Trust performance.

Reinvestment had an adverse effect on the Trust’s income, as the proceeds of higher-yielding bonds that matured or were called needed to be reinvested at lower prevailing rates compared to bonds that were issued when yields were higher.

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 ANNUAL REPORT TO SHAREHOLDERS


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

 

Market Price and Net Asset Value Per Share Summary

 

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

Market Price

  $ 13.81     $ 12.53        10.22    $ 13.93      $ 11.70  

Net Asset Value

    15.09       14.52        3.93        15.09        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   07/31/19     07/31/18  

County/City/Special District/School District

    25     22

Transportation

    22       21  

Education

    15       19  

Utilities

    12       11  

State

    10       11  

Health

    7       8  

Housing

    4       2  

Corporate

    3       3  

Tobacco

    2       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

    4

2020

    6  

2021

    19  

2022

    13  

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   07/31/19     07/31/18  

AAA/Aaa

    11     17

AA/Aa

    46       35  

A

    23       30  

BBB/Baa

    9       7  

BB/Ba

    2       2  

B

    1       1  

N/R(b)

    8       8  

 

  (a) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings 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 July 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% and 4%, respectively, of the Trust’s total investments.

 
 

 

 

TRUST SUMMARY      13  


Schedule of Investments

July 31, 2019

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 99.9%

 

California — 94.9%

 

County/City/Special District/School District — 30.4%  

California Municipal Finance Authority, RB, Series A, :

   

Orange County Civic Center Infrastructure Improvement Program Phase I, 5.00%, 06/01/42

  $ 5,000     $ 6,024,300  

Orange County Civic Center Infrastructure Improvement Program Phase II, 5.00%, 06/01/43

    2,545       3,075,836  

California Statewide Communities Development Authority, RB, Lancer Educational Student Housing Project, 5.00%, 06/01/51(a)

    240       273,559  

California Statewide Communities Development Authority, Special Assessment, Statewide Community Infrastructure Program, Series A:

   

5.00%, 09/02/39

    290       332,082  

5.00%, 09/02/44

    170       191,580  

5.00%, 09/02/48

    170       191,080  

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

   

6.13%, 05/01/31

    500       541,940  

6.50%, 05/01/36

    1,210       1,314,435  

6.50%, 05/01/42

    2,225       2,405,114  

County of Los Angeles California Metropolitan Transportation Authority, Refunding RB, Series A, :

   

Green Bond, 5.00%, 07/01/44

    15,200       18,630,336  

5.00%, 07/01/42

    10,675       12,954,006  

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

    8,990       10,623,213  

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

    2,880       3,105,994  

Fremont Union High School District, GO, Series A, 4.00%, 08/01/40

    6,170       6,883,807  

Glendale Community California College District, GO, Election of 2016, Series A, 5.25%, 08/01/41

    5,000       6,177,250  

Mount San Antonio Community College District, GO, Refunding, Election of 2018, Series A:

   

5.00%, 08/01/41

    2,015       2,529,450  

5.00%, 08/01/44

    6,000       7,495,500  

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

    8,000       9,689,680  

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

    3,375       3,849,761  

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

    3,060       3,291,826  

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

    1,250       1,519,862  

State of California, GO, Refunding:

   

5.00%, 04/01/45

    9,325       11,486,442  

Various Purposes-Bid Group, 5.00%, 08/01/37

    15,000       18,732,450  

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

    4,000       4,000,000  

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

    3,445       3,736,033  

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

    1,625       1,916,915  

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

    2,500       2,865,200  

West Valley-Mission Community College District, GO, Series A, 4.00%, 08/01/44

    3,670       4,124,566  
   

 

 

 
      147,962,217  
Security   Par
(000)
    Value  
Education — 5.9%  

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

   

6.13%, 10/01/21

  $ 3,075     $ 3,413,619  

6.13%, 10/01/21

    3,205       3,557,935  

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

    2,500       2,784,400  

California Municipal Finance Authority, Refunding RB, William Jessup University:

   

5.00%, 08/01/39

    425       473,969  

5.00%, 08/01/48

    510       555,109  

California Public Finance Authority, RB, Trinity Classical Academy Project, Series A, 5.00%, 07/01/54(a)

    285       288,420  

University of California, Refunding RB, :

   

General, Series AZ, 5.00%, 05/15/43

    9,985       12,194,181  

Series AR, 5.00%, 05/15/38

    4,250       5,156,822  
   

 

 

 
      28,424,455  
Health — 9.9%  

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

    4,975       4,975,000  

California Health Facilities Financing Authority, RB, :

   

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

    8,500       9,166,230  

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

    3,000       3,520,050  

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

    6,015       6,326,938  

California Health Facilities Financing Authority, Refunding RB, Sutter Health, Series B, 5.00%, 11/15/46

    6,165       7,246,773  

California Municipal Finance Authority, Refunding RB, HumanGood California Obligated Group, Series A, 5.00%, 10/01/44(c)

    1,670       1,923,088  

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

    930       1,080,725  

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

    4,000       4,295,440  

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

    7,750       9,380,910  
   

 

 

 
      47,915,154  
Housing — 0.8%  

California Community Housing Agency, RB, M/F Housing, Annadel Apartments, Series A, 5.00%, 04/01/49(a)

    3,470       3,816,341  
   

 

 

 
State — 3.9%  

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

    4,950       6,042,317  

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

   

Series I, 5.50%, 11/01/33

    4,940       5,759,842  

Sub-Series I-1, 6.38%, 11/01/19(b)

    2,300       2,330,107  

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

    4,335       4,979,181  
   

 

 

 
      19,111,447  
Tobacco — 5.7%  

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

    1,135       1,141,276  

Golden State Tobacco Securitization Corp., Refunding RB, :

   

Series A-1, 5.00%, 06/01/47

    18,670       18,879,851  

Series A-2, 5.00%, 06/01/47

    475       479,921  

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

    2,000       2,000,500  
 

 

 

14    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Tobacco (continued)  

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

   

5.00%, 06/01/37

  $ 4,425     $ 4,472,569  

5.13%, 06/01/46

    885       886,186  
   

 

 

 
      27,860,303  
Transportation — 17.6%  

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

    16,535       19,416,885  

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

   

Series A, 5.00%, 05/15/37

    3,515       4,253,256  

Series A, 5.00%, 05/15/44

    2,885       3,419,042  

Series B, 5.00%, 05/15/36

    2,600       3,054,766  

Sub-Series A, 5.00%, 05/15/42

    4,220       4,908,999  

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

   

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

    600       734,442  

Subordinate, Series A, 5.00%, 05/15/38

    5,000       6,088,900  

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

   

AMT, 4.00%, 05/15/44

    5,000       5,469,300  

Series E, 5.00%, 05/15/44

    5,190       6,343,737  

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       4,123,388  

6.25%, 03/01/34

    2,650       2,842,284  

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

    2,150       2,640,716  

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

    13,500       16,143,975  

Los Angeles Regional Airports Improvement Corp., Refunding RB, LAXFuel Corp., Los Angeles International, AMT, 4.50%, 01/01/27

    1,425       1,523,339  

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

    4,135       4,714,190  
   

 

 

 
      85,677,219  
Utilities — 20.7%  

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

    2,485       3,042,112  

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

    10,670       12,929,052  

City of Los Angeles California Department of Water & Power, Refunding RB, Series B, 5.00%, 07/01/43

    8,000       9,811,760  

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

    5,625       6,114,713  

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

    5,000       5,396,300  

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

    7,090       8,881,430  

City of San Mateo Foster Public Financing Authority, RB, Clean Water Program, 4.00%, 08/01/44

    5,900       6,596,613  

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

    2,425       2,606,148  

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

    3,230       3,946,188  

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

    10,000       11,468,700  

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

   

5.00%, 07/01/41

    5,000       6,075,300  

5.25%, 07/01/44

    3,000       3,712,890  

Water System, 5.00%, 07/01/44

    1,500       1,812,615  
Security   Par
(000)
    Value  
Utilities (continued)  

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

  $ 6,000     $ 7,116,360  

South Coast Water District Financing Authority, Refunding RB, Series A, 5.00%, 02/01/44

    9,130       11,255,464  
   

 

 

 
      100,765,645  
   

 

 

 

Total Municipal Bonds in California

 

    461,532,781  
 

 

 

 

Puerto Rico — 5.0%

 

State — 3.3%  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, :

   

Series A-1, 4.50%, 07/01/34

    43       44,349  

Series A-1, 4.75%, 07/01/53

    2,467       2,404,387  

Series A-1, 5.00%, 07/01/58

    9,125       9,105,929  

Series A-2, 4.55%, 07/01/40

    2,455       2,358,224  

Series A-2, 5.00%, 07/01/58

    2,530       2,428,269  
   

 

 

 
      16,341,158  
Tobacco — 0.1%  

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

    505       513,474  
   

 

 

 
Utilities — 1.6%  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Senior Lien, Series A:

   

5.00%, 07/01/33

    3,865       3,892,171  

5.13%, 07/01/37

    1,105       1,116,039  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 07/01/38

    2,550       2,577,208  
   

 

 

 
      7,585,418  
   

 

 

 

Total Municipal Bonds in Puerto Rico

 

    24,440,050  
 

 

 

 

Total Municipal Bonds — 99.9%
(Cost — $458,939,518)

 

    485,972,831  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(d)

 

California — 70.9%

 

County/City/Special District/School District — 30.2%  

County of Santa Clara California Financing Authority, RB, Series A, 4.00%, 05/01/45

    22,230       24,571,708  

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

    12,902       13,450,482  

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

    20,132       20,132,418  

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

    15,140       17,876,555  

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

    10,487       10,486,904  

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

    10,000       12,016,700  

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

    10,615       12,988,297  

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

    14,505       16,657,828  

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

    6,100       6,647,170  

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

    10,000       12,286,700  
   

 

 

 
      147,114,762  
Education — 13.3%  

University of California, RB, :

   

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

    10,000       12,076,300  

Series AM, 5.25%, 05/15/44

    5,000       5,812,200  
 

 

 

SCHEDULES OF INVESTMENTS      15  


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock California Municipal Income Trust (BFZ)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Education (continued)  

University of California, Refunding RB, :

   

Series A, 5.00%, 11/01/43

  $ 11,792     $ 14,082,666  

Series AI, 5.00%, 05/15/38

    14,225       16,042,525  

Series I, 5.00%, 05/15/40

    14,065       16,592,617  
   

 

 

 
      64,606,308  
Health — 9.3%  

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

   

5.00%, 11/15/41

    11,620       13,634,327  

5.00%, 08/15/52

    9,695       10,743,516  

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

    18,960       20,680,051  
   

 

 

 
      45,057,894  
State — 2.5%  

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

    10,165       12,199,422  
   

 

 

 
Transportation — 11.9%  

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

    8,720       10,118,252  

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

   

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

    22,710       26,417,860  

Series D, 5.00%, 05/15/41

    18,632       21,447,722  
   

 

 

 
      57,983,834  
Utilities — 3.7%  

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

    10,480       10,494,987  
Security   Par
(000)
    Value  
Utilities (continued)  

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

  $ 6,412     $ 7,511,975  
   

 

 

 
      18,006,962  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 70.9%
(Cost — $329,853,338)

 

    344,969,182  
 

 

 

 

Total Long-Term Investments — 170.8%
(Cost — $788,792,856)

 

    830,942,013  

Liabilities in Excess of Other Assets — (3.3)%

 

    (15,954,861

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (32.3)%

 

    (157,101,527

VMTP Shares, at Liquidation Value — (35.2)%

 

    (171,300,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 486,585,625  
 

 

 

 

 

(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) 

When-issued security.

(d) 

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

(e) 

All or a portion of the 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 year ended July 31, 2019, investments in issuers considered to be an affiliate/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
07/31/19
     Value at
07/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds California Money Fund, Institutional Class

                        $      $ 27,301      $      $  

BlackRock Liquidity Funds, MuniCash, Institutional Class

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

 

 

    

 

 

    

 

 

    

 

 

 
   $      $ 34,452      $ (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.

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

     97          09/19/19        $ 12,360        $ (45,695

Long U.S. Treasury Bond

     215          09/19/19          33,453          (268,132

5-Year U.S. Treasury Note

     62          09/30/19          7,288          10,361  
                 

 

 

 
                  $ (303,466
                 

 

 

 

 

 

16    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock California Municipal Income Trust (BFZ)

 

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  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 10,361      $      $ 10,361  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $      $      $ 313,827      $      $ 313,827  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the year ended July 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

   $      $      $      $      $ (3,260,193    $      $ (3,260,193
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net Change in Unrealized Appreciation (Depreciation) on:

                    

Futures contracts

   $      $      $      $      $ (324,549    $      $ (324,549
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 41,693,961  

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)

   $        $ 830,942,013        $             —        $ 830,942,013  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 10,361        $        $        $ 10,361  

Liabilities:

 

Interest rate contracts

     (313,827                          (313,827
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ (303,466      $        $        $ (303,466
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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.

 

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

   $        $ (156,312,177      $             —        $ (156,312,177

VMTP Shares at Liquidation Value

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

 

 

      

 

 

      

 

 

      

 

 

 
   $             —        $ (327,612,177      $        $ (327,612,177
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      17  


Schedule of Investments

July 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 128.7%

 

Alabama — 2.2%  

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

 

5.00%, 09/01/33

  $ 3,985     $ 4,854,727  

5.00%, 09/01/34

    3,500       4,247,915  

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

    10,000       11,697,600  

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

 

5.00%, 07/01/31

    1,100       1,349,392  

5.00%, 07/01/32

    1,150       1,403,253  

5.00%, 07/01/33

    1,600       1,944,224  

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

 

0.00%, 10/01/31

    7,375       4,249,991  

0.00%, 10/01/32

    6,295       3,379,786  

0.00%, 10/01/33

    1,275       631,979  

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

 

5.00%, 12/01/33

    1,010       1,193,295  

5.00%, 12/01/34

    1,380       1,626,647  

University of South Alabama, Refunding RB (AGM):

 

5.00%, 11/01/29

    1,105       1,333,481  

5.00%, 11/01/30

    2,000       2,403,500  
   

 

 

 
      40,315,790  
Alaska — 0.1%  

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

    1,075       1,076,269  
   

 

 

 
Arizona — 1.7%  

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

 

Series A, 5.00%, 02/01/34

    6,340       6,816,958  

Series B, 5.00%, 02/01/33

    1,810       1,998,729  

City of Phoenix Arizona IDA, RB, Facility, :

 

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

    355       388,022  

Eagle College Preparatory Project,:

 

Series A, 4.50%, 07/01/22

    305       315,776  

Series A, 5.00%, 07/01/33

    1,000       1,034,220  

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

    750       817,567  

City of Phoenix Arizona IDA, Refunding RB, Downtown Phoenix Student Housing, Series A, 5.00%, 07/01/29

    175       209,918  

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

    10,000       12,142,900  

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

    6,000       6,369,540  
   

 

 

 
      30,093,630  
California — 7.8%  

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

    10,530       7,579,073  

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

 

5.00%, 11/15/32

    1,600       1,986,480  

5.00%, 11/15/33

    1,855       2,279,257  

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

    4,000       4,811,960  

California Municipal Finance Authority, RB, :

 

Biola University, 4.00%, 10/01/33

    2,500       2,667,725  

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

    1,000       1,132,240  
Security   Par
(000)
    Value  
California (continued)  

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

 

5.00%, 07/01/30

  $ 1,200     $ 1,448,328  

5.00%, 07/01/31

    1,050       1,260,661  

California Statewide Communities Development Authority, RB, :

 

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

    2,500       2,722,350  

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

    275       327,885  

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

    1,350       1,580,094  

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

 

5.00%, 05/15/31

    1,200       1,478,256  

5.00%, 05/15/32

    1,800       2,211,606  

5.00%, 05/15/33

    675       827,145  

5.00%, 05/15/34

    1,650       2,013,907  

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

   

5.00%, 03/01/30

    500       609,300  

5.00%, 03/01/31

    1,500       1,819,185  

5.00%, 03/01/32

    1,000       1,208,740  

5.00%, 03/01/33

    975       1,175,129  

5.00%, 03/01/34

    1,250       1,500,737  

5.00%, 03/01/35

    2,000       2,392,860  

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

    1,000       1,204,890  

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

   

0.00%, 08/01/30

    9,090       7,167,829  

0.00%, 08/01/31

    12,465       9,453,331  

0.00%, 08/01/32

    17,435       12,699,131  

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

    14,500       17,127,400  

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

    3,000       3,291,510  

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

    4,110       4,437,855  

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

    2,500       3,160,500  

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

   

0.00%, 08/01/30

    3,500       2,647,050  

0.00%, 08/01/31

    5,940       4,303,233  

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

    1,300       1,580,293  

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

   

0.00%, 08/01/30

    10,000       7,922,400  

0.00%, 08/01/32

    12,500       9,278,375  

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

    10,000       12,644,100  

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

    750       782,153  
   

 

 

 
      140,732,968  
Colorado — 3.5%  

Central Platte Valley Metropolitan District, GO, Series A:

   

5.13%, 12/01/29

    700       787,640  

5.50%, 12/01/29

    750       855,525  

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

    1,000       743,250  

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

    25,000       30,642,750  
 

 

 

18    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Colorado (continued)  

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

   

4.00%, 12/01/23

  $ 1,000     $ 1,035,710  

4.10%, 12/01/24

    5,080       5,265,420  

4.20%, 12/01/25

    5,280       5,477,630  

Colorado Health Facilities Authority, Refunding RB, :

   

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

    4,595       4,632,955  

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

    3,000       3,269,250  

NCMC, Inc. Project, 4.00%, 05/15/30

    2,860       3,206,174  

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

    500       525,860  

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

   

5.00%, 12/01/27

    1,500       1,759,125  

5.00%, 12/01/28

    1,500       1,754,460  

5.00%, 12/01/30

    1,350       1,569,254  

5.00%, 12/01/31

    1,500       1,738,350  

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

    503       540,891  
   

 

 

 
      63,804,244  
Connecticut — 0.6%  

Capital Region Development Authority, Refunding RB:

   

5.00%, 06/15/30

    1,095       1,327,676  

5.00%, 06/15/31

    1,125       1,356,919  

State of Connecticut, GO, Series A, 5.00%, 04/15/33

    7,000       8,508,010  

State of Connecticut Health & Educational Facilities Authority, RB, Sacred Heart University Issue, Series I-1, 5.00%, 07/01/35

    400       475,532  
   

 

 

 
      11,668,137  
Delaware — 0.6%  

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

   

4.00%, 07/01/22

    230       242,277  

5.00%, 07/01/24

    705       794,415  

5.00%, 07/01/25

    805       922,385  

5.00%, 07/01/26

    850       988,261  

5.00%, 07/01/27

    890       1,047,922  

5.00%, 07/01/28

    935       1,103,338  

State of Delaware, GO, 3.00%, 02/01/33

    3,810       4,073,728  

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

    1,250       1,333,875  
   

 

 

 
      10,506,201  
District of Columbia — 0.1%  

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

    1,700       2,010,641  
   

 

 

 
Florida — 8.8%  

Capital Trust Agency, Inc., RB, Renaissance Charter School, Inc., Series A, 4.00%, 06/15/29(b)

    1,790       1,827,483  

Central Florida Expressway Authority, Refunding RB, Senior Lien:

   

5.00%, 07/01/32

    1,610       1,988,962  

5.00%, 07/01/33

    2,750       3,382,775  

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

    3,750       4,505,288  

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

    10,000       10,540,000  

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

    5,000       4,993,800  
Security   Par
(000)
    Value  
Florida (continued)  

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

   

5.00%, 04/01/30

  $ 600     $ 656,994  

5.00%, 04/01/33

    740       806,400  

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

    7,250       7,372,887  

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

    6,690       7,448,311  

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

    9,000       10,648,800  

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

    9,485       10,672,048  

County of Orange Florida Tourist Development Tax Revenue, Refunding RB, 5.00%, 10/01/30

    11,470       15,042,790  

County of Palm Beach Florida, RB, S/F Housing, Palm Beach Atlantic University, 5.00%,
04/01/29(b)

    1,000       1,130,560  

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

    16,805       19,633,786  

County of Palm Beach Health Facilities Authority, RB, Lifespace Communities, Inc., 5.00%, 05/15/31

    410       466,822  

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

   

0.00%, 06/01/30

    2,000       1,552,860  

0.00%, 06/01/31

    1,295       967,456  

0.00%, 06/01/32

    2,495       1,790,936  

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

    1,200       1,260,012  

Florida Development Finance Corp., RB, AMT, :

   

VRDN, Virgin Trains USA Passenger Rail Project, Series B, 1.90%, 01/01/49(d)

    7,620       7,621,288  

Waste Pro USA, Inc., 5.00%, 05/01/29(b)

    2,200       2,408,208  

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

    2,000       2,179,120  

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

    630       668,657  

Jacksonville Florida Port Authority, Refunding RB, AMT:

   

4.50%, 11/01/30

    2,895       3,115,367  

4.50%, 11/01/31

    3,620       3,859,463  

4.50%, 11/01/32

    2,300       2,455,779  

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

    1,000       1,150,090  

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

    3,825       4,360,997  

Tolomato Community Development District, Refunding, Special Assessment Bonds,
Series A-2, 3.85%, 05/01/29

    520       524,061  

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

   

4.50%, 05/01/23

    1,620       1,766,221  

5.00%, 05/01/32

    5,475       5,942,127  

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

   

Phase I, 3.50%, 05/01/28

    1,905       1,966,779  

Phase I, 3.50%, 05/01/28

    3,610       3,730,863  

Phase II, 4.00%, 05/01/33

    1,100       1,139,391  

Phase II, 4.00%, 05/01/34

    2,310       2,392,837  

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

    5,765       5,960,433  
   

 

 

 
      157,930,651  
 

 

 

SCHEDULES OF INVESTMENTS      19  


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Georgia — 1.1%  

Main Street Natural Gas, Inc., RB, Series A:

   

5.00%, 05/15/29

  $ 1,250     $ 1,528,225  

5.00%, 05/15/30

    8,000       9,836,960  

Municipal Electric Authority of Georgia, RB, Plant Vogtle Units 3 & 4 Project, Series A, 5.00%, 01/01/34

    8,000       9,127,520  
   

 

 

 
      20,492,705  
Idaho — 0.0%  

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

    185       201,141  
   

 

 

 
Illinois — 13.8%  

Chicago Board of Education, GO, Refunding, :

   

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

    7,025       7,968,458  

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

    4,760       5,120,903  

Series C, 5.00%, 12/01/22

    14,830       15,954,411  

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

   

5.00%, 01/01/33

    3,000       3,561,090  

5.00%, 01/01/35

    1,500       1,771,725  

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

    5,000       5,613,300  

Chicago Transit Authority, Refunding RB, :

   

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

    2,000       2,381,600  

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

    1,000       1,193,540  

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

   

4.00%, 01/01/31

    10,375       10,680,751  

4.00%, 01/01/32

    10,790       11,128,806  

4.00%, 01/01/33

    11,220       11,441,595  

4.00%, 01/01/35

    9,135       9,345,379  

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

    5,000       5,262,400  

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

    730       809,680  

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

    6,000       7,143,840  

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

   

4.00%, 12/01/30

    1,620       1,727,163  

4.00%, 12/01/31

    1,715       1,821,896  

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

    6,350       7,615,492  

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

    19,750       20,850,470  

Illinois Finance Authority, Refunding RB, :

   

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

    1,000       1,110,750  

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

    1,000       1,202,890  

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

    2,445       2,497,347  

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

    3,350       3,531,168  

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

    12,000       14,568,840  

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

    8,415       9,809,197  

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

    2,075       2,411,980  

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

    2,125       2,464,533  

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

    11,000       11,514,030  
Security   Par
(000)
    Value  
Illinois (continued)  

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

  $ 3,205     $ 3,846,288  

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

    20,000       22,048,600  

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

   

5.00%, 12/15/28

    1,200       1,405,860  

5.00%, 12/15/30

    1,385       1,611,295  

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

    7,000       7,936,460  

State of Illinois, GO, Series A, 5.00%, 12/01/28

    9,950       11,246,584  

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

   

4.00%, 02/01/29

    9,080       9,523,830  

4.00%, 02/01/30

    9,835       10,272,559  
   

 

 

 
      248,394,710  
Indiana — 3.4%  

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

    10,000       12,411,200  

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

    1,385       1,511,326  

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

    8,500       9,500,535  

Indiana Finance Authority, Refunding RB, :

   

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

    22,565       23,578,620  

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

    11,255       11,934,689  

Northern Indiana Commuter Transportation District, RB:

   

5.00%, 07/01/32

    1,000       1,182,890  

5.00%, 07/01/33

    1,400       1,652,532  
   

 

 

 
      61,771,792  
Iowa — 2.2%  

Iowa Finance Authority, Refunding RB, Midwestern Disaster Area, Iowa Fertilizer Co. Project, 5.25%, 12/01/25

    13,345       14,620,381  

PEFA, Inc., RB, 5.00%, 09/01/49(d)

    21,415       25,366,496  
   

 

 

 
      39,986,877  
Kansas — 0.1%  

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

    1,370       1,598,311  
   

 

 

 
Kentucky — 0.6%  

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

    7,300       8,655,318  

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

   

Convertible Series C, 6.40%, 07/01/33(e)

    1,500       1,600,110  

Series B, 0.00%, 07/01/30(a)

    1,230       767,655  
   

 

 

 
      11,023,083  
Louisiana — 2.9%  

City of Ruston Louisiana, RB (AGM):

   

5.00%, 06/01/29

    1,060       1,255,019  

5.00%, 06/01/30

    1,000       1,179,630  

5.00%, 06/01/31

    1,020       1,198,031  

5.00%, 06/01/32

    1,225       1,434,475  

Louisiana Public Facilities Authority, RB, Young Audiences Charter School Project, Series A, 5.00%, 04/01/30(b)

    525       562,469  

Louisiana Public Facilities Authority, Refunding RB:

   

5.00%, 05/15/29

    1,235       1,452,360  

5.00%, 05/15/30

    990       1,159,389  

3.00%, 05/15/31

    2,225       2,295,911  
 

 

 

20    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Louisiana (continued)  

5.00%, 05/15/32

  $ 1,485     $ 1,725,837  

5.00%, 05/15/33

    2,175       2,520,542  

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

    5,990       6,129,028  

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

    3,000       3,371,850  

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

   

5.00%, 04/01/31

    300       329,043  

5.00%, 04/01/32

    1,000       1,094,540  

5.00%, 04/01/33

    1,575       1,720,530  

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

    6,540       7,112,250  

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

    1,925       2,164,740  

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

   

5.25%, 05/15/31

    3,425       3,614,197  

5.25%, 05/15/32

    4,375       4,736,681  

5.25%, 05/15/33

    4,750       5,137,315  

5.25%, 05/15/35

    1,500       1,652,115  
   

 

 

 
      51,845,952  
Maryland — 2.3%  

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

    1,250       1,468,738  

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

   

4.20%, 07/01/24

    630       642,695  

4.90%, 07/01/30

    1,315       1,374,767  

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

    1,765       2,111,646  

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

    585       658,669  

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

    1,325       1,550,462  

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

    3,225       3,320,137  

Maryland Health & Higher Educational Facilities Authority, Refunding RB, :

   

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

    2,865       3,349,271  

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

    3,010       3,504,844  

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

    3,165       3,674,185  

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

    1,000       1,196,650  

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

    500       596,680  

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

    1,385       1,641,240  

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

    775       918,584  

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

    2,200       2,567,312  

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

    1,400       1,622,222  

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

    1,200       1,383,528  

State of Maryland, GO, State and Local Facilities Loan of 2019, First Series, 3.00%, 03/15/34

    10,000       10,529,600  
   

 

 

 
      42,111,230  
Massachusetts — 2.3%  

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

    2,500       3,414,325  

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

    5,000       6,089,200  

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

    5,500       3,990,855  

Massachusetts Development Finance Agency, RB, :

   

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

    1,070       1,252,564  

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

    2,365       2,923,613  
Security   Par
(000)
    Value  
Massachusetts (continued)  

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

  $ 2,485     $ 3,034,657  

Massachusetts Development Finance Agency, Refunding RB, Series A, :

   

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

    3,635       4,213,510  

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

    1,285       1,483,121  

5.00%, 01/01/32

    2,020       2,404,527  

5.00%, 01/01/33

    1,500       1,778,040  

5.00%, 01/01/34

    2,085       2,462,010  

5.00%, 01/01/35

    2,000       2,357,880  

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

    4,975       5,367,478  
   

 

 

 
      40,771,780  
Michigan — 1.5%  

City of Detroit Michigan, GO:

   

5.00%, 04/01/26

    735       817,143  

5.00%, 04/01/27

    580       650,366  

5.00%, 04/01/28

    665       750,639  

5.00%, 04/01/29

    665       746,748  

5.00%, 04/01/30

    510       581,441  

5.00%, 04/01/31

    735       817,776  

5.00%, 04/01/32

    625       692,681  

5.00%, 04/01/33

    830       916,710  

Michigan Finance Authority, Refunding RB, :

   

MidMichigan Health, 5.00%, 06/01/33

    2,750       3,147,017  

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

    2,105       2,362,568  

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

    8,195       8,646,299  

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

    2,000       2,425,740  

Saginaw Valley State University, Refunding RB, Series A:

   

5.00%, 07/01/31

    2,070       2,462,762  

5.00%, 07/01/32

    1,430       1,695,651  
   

 

 

 
      26,713,541  
Minnesota — 0.3%  

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

   

0.00%, 02/01/30

    3,915       2,982,290  

0.00%, 02/01/31

    2,190       1,611,840  

0.00%, 02/01/32

    1,450       1,021,975  
   

 

 

 
      5,616,105  
Mississippi — 1.6%  

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

   

5.00%, 03/01/30

    2,280       2,693,045  

5.00%, 03/01/31

    1,595       1,878,846  

5.00%, 03/01/32

    2,000       2,350,420  

5.00%, 03/01/33

    1,275       1,495,218  

State of Mississippi, RB, :

   

Series A, 5.00%, 10/15/35

    5,000       6,125,800  

Series E, 5.00%, 10/15/33

    12,225       14,221,465  
   

 

 

 
      28,764,794  
Missouri — 0.7%  

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

    970       1,041,576  

Missouri State Health & Educational Facilities Authority, Refunding RB, :

   

CoxHealth, Series A, 4.00%, 11/15/33

    2,010       2,142,178  

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

    3,000       3,235,410  

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

    1,680       1,866,194  
 

 

 

SCHEDULES OF INVESTMENTS      21  


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Missouri (continued)  

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

  $ 2,000     $ 2,212,200  

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

    1,175       1,401,282  
   

 

 

 
      11,898,840  
Nebraska — 0.6%  

Central Plains Nebraska Energy Project, RB, :

   

Energy Project No. 3, 5.00%, 09/01/27

    5,000       5,469,100  

Gas Project No. 3, 5.00%, 09/01/32

    4,500       4,922,190  

Elkhorn School District, GO, Elkhorn Public Schools:

   

4.00%, 12/15/32

    325       382,379  

4.00%, 12/15/33

    375       437,539  
   

 

 

 
      11,211,208  
Nevada — 0.0%  

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

    335       370,644  
   

 

 

 
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       2,292,715  

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

    4,350       4,599,037  
   

 

 

 
      6,891,752  
New Jersey — 15.6%  

Casino Reinvestment Development Authority, Refunding RB:

   

5.00%, 11/01/21

    2,465       2,604,051  

5.00%, 11/01/22

    1,890       2,041,862  

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       1,598,265  

New Jersey Economic Development Authority, RB, Beloved Community Charter School, Inc. Project, Series A, 4.00%, 06/15/29(b)

    665       699,454  

New Jersey EDA, RB, :

   

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

    12,230       13,445,173  

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

    1,740       2,008,517  

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

    1,315       1,517,997  

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

    350       382,312  

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

    4,705       5,284,985  

Series DDD, 5.00%, 06/15/35

    2,000       2,302,380  

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

    4,500       5,269,365  

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

    3,600       4,215,492  

New Jersey EDA, Refunding RB, :

   

Cigarette Tax, 4.25%, 06/15/27

    16,500       17,579,595  

Cigarette Tax, 5.00%, 06/15/26

    10,610       11,500,497  

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

    6,200       6,895,888  

Provident Group — Monteclair Properties LLC (AGM), 5.00%, 06/01/28

    1,000       1,215,450  

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

    1,500       1,796,745  

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

    1,750       2,085,562  

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

    2,125       2,336,161  

Series BBB, 5.50%, 06/15/29

    10,000       12,063,700  

Sub-Series A, 4.00%, 07/01/32

    9,855       10,347,750  
Security   Par
(000)
    Value  
New Jersey (continued)  

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

  $ 5,000     $ 5,827,700  

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

    2,280       2,663,450  

New Jersey Health Care Facilities Financing Authority, Refunding RB, :

   

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

    2,900       3,496,820  

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

    2,400       2,883,768  

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

    11,245       13,522,900  

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

    1,500       1,760,355  

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

    1,250       1,459,800  

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

    1,100       1,276,297  

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

   

Series 1A, 5.00%, 12/01/25

    5,500       6,559,795  

Series 1A, 5.00%, 12/01/26

    2,250       2,674,462  

Series A, 4.00%, 12/01/32

    2,500       2,772,950  

Series A, 4.00%, 12/01/33

    2,000       2,204,360  

Series A, 4.00%, 12/01/34

    1,000       1,095,210  

Series A, 4.00%, 12/01/35

    1,000       1,089,270  

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

    12,945       13,678,334  

New Jersey Transportation Trust Fund Authority, RB, :

   

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

    4,225       4,912,027  

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

    4,500       5,218,830  

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

    10,815       11,196,337  

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

    10,000       11,431,000  

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

    5,000       5,611,750  

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

   

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

    6,600       7,786,416  

5.00%, 12/15/30

    20,000       24,030,600  

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

    5,000       6,054,800  

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

   

5.00%, 11/01/33

    500       565,120  

5.00%, 11/01/34

    500       562,200  

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

   

5.00%, 06/01/30

    16,740       20,226,607  

5.00%, 06/01/32

    8,270       9,870,576  

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

   

5.00%, 07/15/30

    2,000       2,280,040  

5.00%, 07/15/31

    1,450       1,649,230  
   

 

 

 
      281,552,205  
New Mexico — 1.0%  

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

   

Series A-1, 3.75%, 09/01/31

    6,250       6,619,875  

Series A-2, 3.80%, 11/01/32

    5,850       6,176,898  

Series A-2, 3.80%, 09/01/33

    5,000       5,253,400  
   

 

 

 
      18,050,173  
New York — 4.2%  

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

    900       974,745  
 

 

 

22    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

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

   

5.00%, 04/01/34

  $ 4,165     $ 5,153,646  

5.00%, 04/01/35

    4,385       5,414,291  

Metropolitan Transportation Authority, Refunding RB, :

   

CAB, Series A, 0.00%, 11/15/30(a)

    23,000       17,316,240  

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

    10,000       12,107,100  

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

    19,315       13,313,830  

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

    5,150       6,374,052  

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

   

4.00%, 07/01/32

    5,500       5,840,505  

4.00%, 07/01/33

    6,000       6,376,860  

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

    3,465       3,643,066  
   

 

 

 
      76,514,335  
Ohio — 1.1%  

County of Butler Ohio, Refunding RB, UC Health:

   

5.00%, 11/15/30

    1,225       1,479,824  

5.00%, 11/15/31

    2,500       3,007,975  

5.00%, 11/15/32

    2,200       2,637,470  

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

   

5.25%, 07/01/28

    500       500,840  

5.63%, 07/01/32

    1,000       1,001,840  

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

    4,500       5,481,045  

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

    1,500       1,406,358  

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

   

5.00%, 12/31/29

    1,625       1,870,245  

5.00%, 12/31/30

    2,400       2,755,584  
   

 

 

 
      20,141,181  
Oklahoma — 0.8%  

Norman Regional Hospital Authority, Refunding RB:

   

5.00%, 09/01/27

    2,100       2,532,957  

5.00%, 09/01/28

    2,000       2,384,060  

5.00%, 09/01/29

    2,150       2,562,972  

5.00%, 09/01/30

    5,130       6,086,642  
   

 

 

 
      13,566,631  
Oregon — 0.5%  

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

    7,390       8,843,465  
   

 

 

 
Pennsylvania — 18.9%  

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

   

5.00%, 05/01/23

    640       681,018  

5.00%, 05/01/28

    835       967,782  

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

   

5.00%, 05/01/27

    6,750       7,214,062  

5.00%, 05/01/28

    5,000       5,337,450  

5.00%, 05/01/29

    3,745       3,993,031  

5.00%, 05/01/30

    5,300       5,643,652  

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

   

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

    1,450       1,767,681  

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

    2,300       2,797,421  

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

    2,180       2,387,689  
Security   Par
(000)
    Value  
Pennsylvania (continued)  

City of Philadelphia Pennsylvania, GO, Refunding, :

   

(AGM), 4.00%, 08/01/32

  $ 6,000     $ 6,711,960  

(AGM), 5.00%, 08/01/30

    9,235       11,206,118  

Series A, 5.00%, 08/01/30

    4,500       5,484,735  

Commonwealth Financing Authority, RB, Tobacco Master Settlement Payment:

   

5.00%, 06/01/30

    3,500       4,294,360  

5.00%, 06/01/32

    6,000       7,288,740  

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

    7,000       7,936,740  

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

   

5.00%, 04/01/31

    3,075       3,717,521  

5.00%, 04/01/34

    3,345       3,988,076  

5.00%, 04/01/35

    1,000       1,189,240  

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

    3,000       2,814,174  

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

   

5.00%, 11/01/29

    2,000       2,413,620  

5.00%, 11/01/30

    2,000       2,399,440  

5.00%, 11/01/34

    2,500       2,956,775  

5.00%, 11/01/35

    3,325       3,926,426  

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

    265       280,595  

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

   

5.00%, 01/01/29

    1,300       1,464,073  

5.00%, 01/01/30

    2,675       3,005,817  

5.00%, 01/01/32

    1,510       1,709,184  

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

    2,275       2,501,089  

County of Delaware Authority, Refunding RB, Cabrini University:

   

5.00%, 07/01/26

    1,180       1,385,780  

5.00%, 07/01/28

    800       951,952  

5.00%, 07/01/29

    1,365       1,616,092  

5.00%, 07/01/30

    1,435       1,689,784  

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

    2,535       2,656,705  

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

   

5.00%, 09/01/31

    1,750       2,135,525  

5.00%, 09/01/32

    1,315       1,596,739  

4.00%, 09/01/34

    3,000       3,327,780  

4.00%, 09/01/35

    1,735       1,920,246  

4.00%, 09/01/36

    1,500       1,657,875  

County of Montgomery Pennsylvania IDA, Refunding RB, :

   

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

    2,500       2,698,075  

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

    3,250       3,720,372  

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

    6,185       7,054,858  

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

    2,000       2,069,740  

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

    12,660       13,959,296  
 

 

 

SCHEDULES OF INVESTMENTS      23  


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Pennsylvania (continued)  

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

  $ 5,400     $ 6,541,452  

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

   

5.00%, 08/15/27

    1,500       1,786,695  

5.00%, 08/15/31

    5,000       6,105,800  

5.00%, 08/15/32

    17,945       21,862,035  

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

   

5.00%, 02/15/32

    4,000       4,829,880  

5.00%, 02/15/34

    1,750       2,099,527  

Pennsylvania Economic Development Financing Authority, RB, :

   

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

    16,500       18,936,060  

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

    5,000       5,832,350  

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

    13,100       15,219,187  

VRDN, Waste Management, Inc. Project, AMT, 2.15%, 07/01/41(d)

    1,840       1,873,672  

Pennsylvania Economic Development Financing Authority, Refunding RB, University of Pittsburgh Medical Center, 5.00%, 03/15/31

    4,500       5,403,555  

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

    7,910       9,440,269  

Pennsylvania Higher Educational Facilities Authority, Refunding RB, :

   

Drexel University, 5.00%, 05/01/30

    425       499,826  

Drexel University, 5.00%, 05/01/31

    1,000       1,171,230  

Drexel University, 5.00%, 05/01/32

    1,750       2,043,125  

Drexel University, 5.00%, 05/01/33

    3,320       3,863,683  

Drexel University, 5.00%, 05/01/35

    1,000       1,157,460  

La Salle University, 4.00%, 05/01/32

    3,000       3,082,950  

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

    9,000       9,234,990  

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

   

5.00%, 06/01/31

    3,000       3,568,170  

5.00%, 06/01/32

    4,075       4,830,301  

5.00%, 06/01/33

    4,000       4,723,760  

Pennsylvania Turnpike Commission, Refunding RB, :

   

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

    5,000       5,942,400  

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

    5,000       5,943,400  

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

    1,000       1,190,150  

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

    1,815       2,150,775  

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

    1,500       1,772,175  

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

    2,005       2,363,815  

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

    425       506,001  

Pittsburgh Water & Sewer Authority, Refunding RB, Series B (AGM):

   

4.00%, 09/01/34

    2,500       2,853,350  

4.00%, 09/01/35

    650       731,907  

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

   

5.00%, 04/01/27

    4,130       4,497,694  

5.00%, 04/01/28

    8,000       8,701,040  

5.00%, 04/01/29

    6,000       6,517,680  

5.00%, 04/01/30

    5,500       5,966,565  
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     $ 909,695  

5.00%, 07/01/30

    1,280       1,379,520  

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

   

5.00%, 07/01/31

    460       554,604  

4.00%, 07/01/33

    440       482,834  
   

 

 

 
      341,088,870  
Puerto Rico — 2.8%  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Restructured, Series A-1(a):

   

0.00%, 07/01/29

    9,330       6,580,636  

0.00%, 07/01/31

    30,273       19,163,414  

0.00%, 07/01/33

    43,149       24,285,552  
   

 

 

 
      50,029,602  
Rhode Island — 1.6%  

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

    1,500       1,751,760  

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

    13,500       13,939,020  

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

   

5.00%, 06/01/28

    2,750       3,124,027  

5.00%, 06/01/29

    4,500       5,098,995  

5.00%, 06/01/30

    4,215       4,758,946  
   

 

 

 
      28,672,748  
South Carolina — 0.7%  

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

    10,000       12,084,700  
   

 

 

 
Tennessee — 0.5%  

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

    6,210       7,000,160  

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       1,529,944  

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

    565       608,200  
   

 

 

 
      9,138,304  
Texas — 16.2%  

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

   

5.00%, 01/01/30

    1,600       1,861,968  

5.00%, 01/01/31

    1,175       1,362,929  

5.00%, 01/01/33

    1,500       1,729,575  

Central Texas Turnpike System, Refunding RB, Series C:

   

5.00%, 08/15/32

    12,500       14,202,250  

5.00%, 08/15/33

    14,000       15,880,340  

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

    2,665       2,971,262  

City of Houston Texas Airport System Revenue, Refunding RB, :

   

Series B-2, AMT, 5.00%, 07/15/20

    6,470       6,662,806  

Series D, 5.00%, 07/01/33

    7,000       8,647,100  
 

 

 

24    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Texas (continued)  

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

   

5.25%, 11/15/33

  $ 5,000     $ 6,129,400  

5.00%, 11/15/34

    7,315       8,801,335  

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

    1,650       1,894,546  

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

   

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

    1,250       1,387,825  

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

    1,200       1,317,348  

Uplift Education, 3.10%, 12/01/22

    630       640,899  

Uplift Education, 3.95%, 12/01/32

    1,800       1,819,746  

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

    12,325       12,984,264  

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       551,500  

6.38%, 01/01/33

    460       512,684  

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       1,164,894  

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

    1,150       1,257,375  

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

    3,000       3,209,520  

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

   

Series A (AMBAC), 4.40%, 05/01/30

    31,120       35,258,960  

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

    10,000       11,171,000  

Series B-2, 4.00%, 06/01/30

    12,995       13,528,965  

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       4,232,941  

0.00%, 09/15/32

    15,135       9,739,524  

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

   

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

    6,000       7,217,220  

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

    5,500       5,864,705  

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

    15,420       16,376,657  

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

    1,000       1,117,550  

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

   

0.00%, 08/15/31

    1,200       785,796  

0.00%, 08/15/32

    2,000       1,241,540  

0.00%, 08/15/33

    4,485       2,641,127  

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

    4,125       4,423,237  

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

   

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

    2,290       2,487,948  

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

    725       787,365  

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

    1,150       1,247,670  

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

    1,600       1,778,912  
Security   Par
(000)
    Value  
Texas (continued)  

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

   

3.63%, 08/15/22

  $ 280     $ 282,912  

4.25%, 08/15/27

    450       456,926  

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

    5,750       6,893,847  

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

   

4.70%, 01/01/22

    400       413,252  

5.50%, 01/01/32

    1,000       1,056,600  

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

    3,000       3,370,350  

State of Texas, GO, VRDN, Veterans Bonds, 1.38%, 06/01/50(d)

    7,600       7,600,000  

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

   

5.00%, 12/15/30

    13,000       14,250,080  

5.00%, 12/15/31

    25,000       27,366,500  

Texas Public Finance Authority, Refunding RB, Midwestern State University, 4.00%, 12/01/31

    1,650       1,849,881  

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

    5,000       5,603,400  

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

    7,410       7,707,511  
   

 

 

 
      291,741,942  
Virginia — 0.7%  

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

    2,000       2,195,000  

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

   

4.50%, 07/01/30

    3,000       3,127,140  

4.50%, 07/01/32

    1,100       1,143,439  

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

    500       509,055  

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

    2,000       2,243,140  

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

    3,940       4,194,997  
   

 

 

 
      13,412,771  
Washington — 2.2%  

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

    7,475       8,353,387  

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

   

5.00%, 09/01/27

    1,000       1,050,410  

5.25%, 09/01/32

    1,850       1,936,062  

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

    6,000       7,169,340  

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

    5,000       5,446,050  

Washington Biomedical Research Properties 3.2, RB, Series A:

   

5.00%, 01/01/31

    1,000       1,182,830  

5.00%, 01/01/32

    1,140       1,344,984  

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

    9,485       11,525,508  

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

   

5.00%, 07/01/28

    1,000       1,113,860  
 

 

 

SCHEDULES OF INVESTMENTS      25  


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Washington (continued)  

5.00%, 07/01/33

  $ 1,100     $ 1,214,983  
   

 

 

 
      40,337,414  
West Virginia — 0.2%  

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

   

5.00%, 06/01/31

    1,950       2,327,286  

5.00%, 06/01/33

    1,100       1,305,326  
   

 

 

 
      3,632,612  
Wisconsin — 2.5%  

Public Finance Authority, RB, VRDN, WakeMed, Series B, 1.35%, 10/01/49(d)

    2,600       2,600,000  

Public Finance Authority, Refunding RB,
AMT, :

   

National Gypsum Co., 5.25%, 04/01/30

    6,690       7,362,412  

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

    3,000       3,135,300  

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

    2,250       2,437,268  

State of Wisconsin, GO, Series B, 3.00%, 05/01/33

    5,000       4,995,800  

Wisconsin Health & Educational Facilities Authority, Refunding RB, :

   

Advocate Aurora Health Credit Group, Series C-4, 1.97%, 08/15/54(d)

    8,200       8,372,659  

Marquette University, 4.00%, 10/01/32

    4,520       4,810,862  

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

    2,500       3,048,925  

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

    9,000       9,178,920  
   

 

 

 
      45,942,146  
   

 

 

 

Total Municipal Bonds — 128.7%
(Cost — $2,182,734,448)

 

    2,322,552,095  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(f)

 

Colorado — 4.7%  

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

   

4.25%, 11/15/29

    33,820       36,497,225  

4.25%, 11/15/30

    35,210       37,997,259  

4.25%, 11/15/31

    8,085       8,725,017  

4.25%, 11/15/32

    2,230       2,406,529  
   

 

 

 
      85,626,030  
Florida — 5.6%  

County of Broward Florida, ARB, Series Q-1(g):

   

4.00%, 10/01/29

    17,200       18,398,184  

4.00%, 10/01/30

    18,095       19,355,532  

4.00%, 10/01/31

    18,820       20,131,036  

4.00%, 10/01/32

    19,575       20,938,631  

4.00%, 10/01/33

    20,355       21,772,967  
   

 

 

 
      100,596,350  
Iowa — 2.5%  

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

   

4.00%, 09/01/28

    3,375       3,590,403  

4.00%, 09/01/29

    6,524       6,941,445  

4.00%, 09/01/30

    6,324       6,728,680  

4.00%, 09/01/31

    8,649       9,202,069  

4.00%, 09/01/32

    7,749       8,244,628  

4.00%, 09/01/33

    9,374       9,973,341  
   

 

 

 
      44,680,566  
Security   Par
(000)
    Value  
Nevada — 1.1%  

Clark County Nevada, 4.00%, 11/01/34

  $ 17,710     $ 19,710,164  
   

 

 

 
Pennsylvania — 2.6%  

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

    20,000       24,556,000  

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

    22,285       23,270,440  
   

 

 

 
      47,826,440  
Texas — 8.9%  

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

   

4.00%, 09/15/30

    15,000       15,920,934  

4.00%, 09/15/31

    19,475       20,670,679  

4.00%, 09/15/32

    18,075       19,184,725  

4.00%, 09/15/33

    11,000       11,675,352  

4.00%, 09/15/34

    11,885       12,614,687  

4.00%, 09/15/35

    4,500       4,776,280  

Dallas Fort Worth International Airport, Refunding RB, AMT,(g):

   

Series E, 4.00%, 11/01/32

    6,915       7,172,597  

Series E, 4.13%, 11/01/35

    10,435       10,823,723  

Series F, 5.00%, 11/01/29

    12,820       13,297,569  

Series F, 5.00%, 11/01/30

    15,565       16,144,825  

Series F, 5.00%, 11/01/31

    10,000       10,372,519  

Series F, 5.00%, 11/01/32

    17,170       17,809,614  
   

 

 

 
      160,463,504  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 25.4%
(Cost — $437,087,871)

 

    458,903,054  
 

 

 

 

Total Long-Term Investments — 154.1%
(Cost — $2,619,822,319)

 

    2,781,455,149  
 

 

 

 
Short-Term Securities — 0.9%  
Commercial Paper — 0.7%  

North East Independent School District, 1.78%, 08/02/19

    12,500       12,500,215  
   

 

 

 

Total Commercial Paper — 0.7%
(Cost — $12,500,000)

 

    12,500,215  
   

 

 

 
     Shares         
Short-Term Investment Fund — 0.2%  

BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.27%(h)(i)

    3,725,793       3,726,538  
   

 

 

 

Total Short-Term Investment Fund — 0.2%
(Cost — $3,726,538)

 

    3,726,538  
 

 

 

 

Total Short-Term Securities — 0.9%
(Cost — $16,226,538)

 

    16,226,753  
 

 

 

 

Total Investments — 155.0%
(Cost — $2,636,048,857)

 

    2,797,681,902  

Other Assets Less Liabilities — 1.1%

 

    19,773,749  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (14.6)%

 

    (263,074,701

Preferred Shares, at Redemption Value — (41.5)%

 

    (749,642,648
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 1,804,738,302  
 

 

 

 

 

(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.

 

 

 

26    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal 2030 Target Term Trust (BTT)

 

(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) 

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 the 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.

(h) 

Annualized 7-day yield as of period end.

(i) 

During the year ended July 31, 2019, investments in issuers considered to be an affiliate/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
07/31/19
     Value at
07/31/19
     Income     

Net

Realized
Gain (Loss)
 (a)

     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     26,798,334        (23,072,541      3,725,793      $ 3,726,538      $ 199,619      $ 876      $ (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)

   $        $ 2,781,455,149        $        $ 2,781,455,149  

Short-Term Securities

     3,726,538          12,500,215                   16,226,753  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,726,538        $ 2,793,955,364        $             —        $ 2,797,681,902  
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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:

 

RVMTP Shares at Liquidation Value

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

TOB Trust Certificates

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

 

 

      

 

 

      

 

 

      

 

 

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

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      27  


Schedule of Investments

July 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 120.7%

 

Alabama — 0.3%  

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

  $ 420     $ 450,005  
   

 

 

 
Arizona — 2.4%  

Arizona IDA, RB, NCCU Properties LLC-North Carolina Central University Project, Series A (BAM), 5.00%, 06/01/58

    1,275       1,481,244  

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

    1,185       1,280,843  

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

    275       296,123  

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

    320       357,769  
   

 

 

 
      3,415,979  
California — 14.8%  

Bay Area Toll Authority, Refunding RB, Subordinate, Series S-8, 3.00%, 04/01/54

    2,050       1,994,547  

California Health Facilities Financing Authority, Refunding RB, Adventist Health System/West, Series A, 4.00%, 03/01/39

    980       1,050,286  

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

    1,200       1,320,504  

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

    1,220       1,348,966  

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

    990       1,109,335  

Golden State Tobacco Securitization Corp., Refunding RB, Series A-1, 5.00%, 06/01/47

    475       480,339  

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

    1,185       1,383,464  

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

   

5.25%, 05/15/23(b)

    2,165       2,508,369  

5.25%, 05/15/38

    615       694,280  

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

    1,960       2,014,429  

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

   

5.50%, 11/01/31

    2,100       2,457,315  

5.50%, 11/01/33

    1,500       1,748,940  

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

    610       700,646  

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

    2,025       2,046,769  

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

    460       540,647  
   

 

 

 
      21,398,836  
Colorado — 4.5%  

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

    250       262,810  

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

    1,000       503,360  

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

    1,750       2,017,697  

Colorado Health Facilities Authority, Refunding RB, :

   

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

    1,675       1,678,434  

Catholic Health Initiatives, Series B-1, 4.00%, 11/09/22(b)

    710       774,326  
Security   Par
(000)
    Value  
Colorado (continued)  

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

  $ 210     $ 238,543  

Colorado Housing & Finance Authority, RB, M/F Housing Project, Series B1, 3.40%, 10/01/54(d)

    1,000       999,810  
   

 

 

 
      6,474,980  
Connecticut — 0.3%  

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

    460       485,889  
   

 

 

 
Florida — 9.2%  

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

   

5.00%, 05/01/32

    225       241,655  

5.00%, 05/01/48

    555       580,008  

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

    5,675       6,526,023  

Florida Housing Finance Corp., RB, S/F Housing, Series 1,(Ginnie Mae, Fannie Mae & Freddie Mac), 3.30%, 07/01/49(d)

    4,500       4,537,305  

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

   

5.25%, 05/01/37

    180       194,638  

5.38%, 05/01/47

    185       198,050  

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

    875       994,402  
   

 

 

 
      13,272,081  
Georgia — 4.0%  

Brookhaven Development Authority, RB, Children’s Helthcare of Atlanta, Series A(d):

   

3.00%, 07/01/46

    1,210       1,193,326  

4.00%, 07/01/49

    1,400       1,535,912  

Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49

    2,320       3,132,580  
   

 

 

 
      5,861,818  
Illinois — 20.0%  

Chicago Board of Education, GO, Series C, :

   

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

    215       234,741  

Project, 5.25%, 12/01/35

    700       760,284  

Chicago Board of Education, GO, Refunding, :

   

Dedicated Revenues, Series D, 5.00%, 12/01/27

    400       464,336  

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

    290       317,947  

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

    215       239,790  

5.00%, 12/01/25

    295       333,498  

Chicago Board of Education, GO, Series D,:

   

5.00%, 12/01/46

    245       270,500  

5.00%, 12/01/46

    635       667,575  

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

    4,545       4,886,329  

City of Chicago Illinois Transit Authority, RB:

   

5.25%, 12/01/31

    560       602,095  

Sales Tax Receipts, 5.25%, 12/01/36

    1,500       1,604,625  

Sales Tax Receipts, 5.25%, 12/01/40

    1,750       1,864,537  

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

   

5.50%, 12/01/38

    580       631,927  

5.25%, 12/01/43

    2,660       2,847,929  

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

    1,750       1,880,567  

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

    2,900       2,905,104  

Metropolitan Pier & Exposition Authority, RB, :

   

Mccormick Place Expansion (BAM), 0.00%, 12/15/56(c)

    2,165       502,800  
 

 

 

28    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Illinois (continued)  

McCormick Place Expansion Project Bonds, Series A, 5.00%, 06/15/57

  $ 590     $ 650,658  

McCormick Place Expansion Project, Series A, 5.50%, 06/15/53

    280       315,168  

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

   

Bonds, Series B, 0.00%, 12/15/54(c)

    3,020       721,116  

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

    150       152,207  

Railsplitter Tobacco Settlement Authority, RB(b):

   

5.50%, 06/01/21

    1,055       1,138,113  

6.00%, 06/01/21

    300       326,343  

State of Illinois, GO:

   

5.25%, 02/01/31

    730       794,284  

5.25%, 02/01/32

    1,500       1,627,800  

5.50%, 07/01/33

    1,500       1,636,005  

5.50%, 07/01/38

    340       369,158  

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

    225       254,736  
   

 

 

 
      29,000,172  
Indiana — 1.3%  

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

   

6.63%, 01/15/34

    125       138,254  

6.75%, 01/15/43

    185       202,666  

6.88%, 01/15/52

    375       410,032  

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

    500       520,370  

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

    520       554,460  
   

 

 

 
      1,825,782  
Iowa — 1.1%  

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

   

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

    905       992,840  

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

    625       684,731  
   

 

 

 
      1,677,571  
Kansas — 2.1%  

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

    475       515,413  

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

   

5.50%, 11/15/19(b)

    55       55,675  

5.50%, 11/15/29

    2,445       2,473,166  
   

 

 

 
      3,044,254  
Louisiana — 1.3%  

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

    1,095       1,155,805  

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

    740       741,369  
   

 

 

 
      1,897,174  
Maine — 0.5%  

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

    680       739,629  
   

 

 

 
Maryland — 0.7%  

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

    135       142,223  

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

    770       836,181  
   

 

 

 
      978,404  
Security   Par
(000)
    Value  
Massachusetts — 2.5%  

Massachusetts Development Finance Agency, RB, :

   

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

  $ 790     $ 900,577  

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

    500       565,780  

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

    875       978,556  

Massachusetts Development Finance Agency, Refunding RB, :

   

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

    375       418,601  

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

    375       390,150  

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

    300       318,849  
   

 

 

 
      3,572,513  
Michigan — 1.9%  

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

    1,400       1,494,332  

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

    1,110       1,311,077  
   

 

 

 
      2,805,409  
Minnesota — 3.9%  

City of Minneapolis Minnesota, Refunding RB, Fairview Health Services, Series A, 5.00%, 11/15/49

    1,790       2,144,885  

Duluth Economic Development Authority, Refunding RB, Essentia Health Obligated Group, Series A:

   

4.25%, 02/15/48

    2,665       2,895,176  

5.25%, 02/15/58

    560       662,710  
   

 

 

 
      5,702,771  
Montana — 0.1%  

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

    125       138,384  
   

 

 

 
Nevada — 2.0%  

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

    2,825       2,870,172  
   

 

 

 
New Jersey — 7.7%  

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

    265       288,967  

New Jersey Transportation Trust Fund Authority, RB, :

   

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

    1,145       1,329,562  

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

    1,045       1,177,778  

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

    2,245       2,482,364  

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

    640       707,392  

Tobacco Settlement Financing Corp., Refunding RB, :

   

Series A, 5.00%, 06/01/35

    630       742,946  

Series A, 5.00%, 06/01/46

    1,515       1,694,603  

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

    2,455       2,657,513  
   

 

 

 
      11,081,125  
New York — 5.6%  

City of New York, GO, SubSeries A-1, Series A, 5.00%, 08/01/43(d)

    2,500       3,079,125  

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

    900       919,692  

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

   

5.75%, 02/15/21(b)

    1,005       1,077,591  

5.75%, 02/15/47

    615       649,723  

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

    500       547,865  
 

 

 

SCHEDULES OF INVESTMENTS      29  


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
New York (continued)  

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     $ 1,505,959  

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

    275       281,444  
   

 

 

 
      8,061,399  
Ohio — 4.3%  

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

   

5.75%, 06/01/34

    225       223,772  

5.88%, 06/01/47

    1,000       982,950  

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

    2,405       2,486,409  

State of Ohio Higher Educational Facility Commission, Refunding RB, Ohio Wesleyan University, 4.00%, 10/01/49(d)

    845       909,972  

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

    1,385       1,559,662  
   

 

 

 
      6,162,765  
Oklahoma — 1.1%  

Oklahoma Development Finance Authority, RB, OU Medicine Project, Series B, 5.25%, 08/15/48

    560       650,933  

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

    850       956,182  
   

 

 

 
      1,607,115  
Oregon — 0.2%  

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

    575       279,715  
   

 

 

 
Pennsylvania — 3.4%  

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

    420       462,189  

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

    990       1,052,727  

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

   

5.63%, 12/01/20

    1,645       1,742,252  

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

    1,530       1,699,203  
   

 

 

 
      4,956,371  
Puerto Rico — 5.2%  

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

    620       630,397  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Senior Lien, Series A:

   

5.00%, 07/01/33

    1,135       1,142,979  

5.13%, 07/01/37

    325       328,247  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A:

   

6.00%, 07/01/38

    335       338,574  

6.00%, 07/01/44

    610       616,100  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured, :

   

Series A-1, 4.50%, 07/01/34

    13       13,408  

Series A-1, 4.75%, 07/01/53

    720       701,726  

Series A-1, 5.00%, 07/01/58

    2,672       2,666,416  

Series A-2, 4.55%, 07/01/40

    338       324,676  

Series A-2, 5.00%, 07/01/58

    739       709,285  
   

 

 

 
      7,471,808  
Security   Par
(000)
    Value  
Rhode Island — 2.1%  

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

   

4.50%, 06/01/45

  $ 2,870     $ 2,937,789  

5.00%, 06/01/50

    125       130,769  
   

 

 

 
      3,068,558  
South Carolina — 5.1%  

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

    1,825       2,082,964  

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

   

5.00%, 05/01/43

    950       1,122,349  

5.00%, 05/01/48

    565       666,689  

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

    1,500       1,665,315  

State of South Carolina Public Service Authority, Refunding RB, :

   

Series A, 5.00%, 12/01/50

    210       238,547  

Series A, 5.00%, 12/01/55

    465       522,921  

Series E, 5.25%, 12/01/55

    945       1,083,943  
   

 

 

 
      7,382,728  
Tennessee — 0.5%  

County of Nashville & Davidson Metropolitan Government Health & Educational Facilities Board, Refunding RB, Lipscomb University Project, Series A:

   

4.00%, 10/01/49

    240       250,243  

5.25%, 10/01/58

    355       421,346  
   

 

 

 
      671,589  
Texas — 8.6%  

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

    2,560       2,731,315  

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

    1,140       1,272,069  

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

    2,710       2,843,983  

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

    1,500       1,631,925  

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

    285       312,887  

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

    520       578,739  

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       2,045,220  

Texas Transportation Commission, RB, First Tier Toll Revenue, :

   

CAB, 0.00%, 08/01/41(c)

    1,000       392,530  

CAB, 0.00%, 08/01/42(c)

    875       324,529  

5.00%, 08/01/57

    235       272,292  
   

 

 

 
      12,405,489  
Virginia — 1.5%  

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

   

5.00%, 03/01/26

    240       256,553  

5.13%, 03/01/31

    470       512,446  

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

    425       455,961  

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

    1,010       997,920  
   

 

 

 
      2,222,880  
Washington — 1.1%  

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

    1,405       1,562,683  
   

 

 

 
 

 

 

30    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
West Virginia — 0.4%  

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

  $ 570     $ 597,485  
   

 

 

 
Wisconsin — 1.0%  

Public Finance Authority, Refunding RB, :

   

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

    735       797,556  

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

    590       662,611  
   

 

 

 
      1,460,167  
   

 

 

 

Total Municipal Bonds — 120.7%
(Cost — $163,052,672)

 

    174,603,700  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(f)

 

California — 15.6%  

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

    1,840       2,033,255  

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

    3,700       3,847,038  

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

    4,041       4,212,399  

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

    5,978       5,977,749  

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

    6,448       6,447,828  
   

 

 

 
      22,518,269  
District of Columbia — 2.3%  

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

    2,129       2,159,287  

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

    1,051       1,137,925  
   

 

 

 
      3,297,212  
Georgia — 0.8%  

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

    1,025       1,098,390  
   

 

 

 
Idaho — 1.4%  

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

    1,900       2,078,923  
   

 

 

 
Illinois — 1.0%  

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

    1,244       1,421,203  
   

 

 

 
Iowa — 1.2%  

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

    1,605       1,690,932  
   

 

 

 
Michigan — 3.4%  

Michigan Finance Authority, RB, Multi Model- McLaren Health Care, 4.00%, 02/15/47

    1,684       1,821,675  

Michigan State Housing Development Authority, RB, M/F Housing, Series A, 4.15%, 10/01/53

    2,883       3,057,528  
   

 

 

 
      4,879,203  
New Jersey — 1.8%  

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

    2,481       2,611,795  
   

 

 

 
New York — 7.5%  

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

    2,070       2,270,583  

City of New York Municipal Water Finance Authority, Refunding RB, Series FF, 5.00%, 06/15/45

    2,499       2,707,075  

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

    3,375       3,670,176  
Security   Par
(000)
    Value  
New York (continued)  

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

  $ 1,980     $ 2,161,565  
   

 

 

 
      10,809,399  
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       1,138,198  
   

 

 

 
Pennsylvania — 2.7%  

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

    1,514       1,805,395  

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

    1,830       2,171,899  
   

 

 

 
      3,977,294  
Rhode Island — 1.6%  

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

    2,207       2,353,965  
   

 

 

 
Texas — 4.3%  

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

    4,200       4,229,820  

Texas Department of Housing & Community Affairs, RB, S/F Housing, Series A (Ginnie Mae)(d):

   

3.63%, 09/01/44

    1,140       1,184,847  

3.75%, 09/01/49

    809       840,748  
   

 

 

 
      6,255,415  
Virginia — 1.2%  

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

    1,473       1,814,761  
   

 

 

 
West Virginia — 1.2%  

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

    1,671       1,795,915  
   

 

 

 
Wisconsin — 2.4%  

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

   

4.10%, 11/01/43

    1,436       1,532,960  

4.45%, 05/01/57

    1,794       1,916,234  
   

 

 

 
      3,449,194  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 49.2%
(Cost — $68,547,206)

 

    71,190,068  
 

 

 

 

Total Long-Term Investments — 169.9%
(Cost — $231,599,878)

 

    245,793,768  
 

 

 

 
     Shares         
Short-Term Securities — 2.2%  

BlackRock Liquidity Funds, MuniCash, Institutional Class,
1.27%(h)(i)

    3,202,995       3,203,635  
   

 

 

 

Total Short-Term Securities — 2.2%
(Cost — $3,203,635)

 

    3,203,635  
 

 

 

 

Total Investments — 172.1%
(Cost — $234,803,513)

 

    248,997,403  

Liabilities in Excess of Other Assets — (8.8)%

 

    (12,853,264

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (27.5)%

 

    (39,760,087

Preferred Shares, at Redemption Value — (35.8)%

 

    (51,719,007
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 144,665,045  
 

 

 

 
 

 

 

SCHEDULES OF INVESTMENTS      31  


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

 

 

32    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

 

(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) 

When-issued security.

(e) 

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.

(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 the 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 November 15, 2019 to December 01, 2030 is $8,480,895. See Note 4 of the Notes to Financial Statements for details.

(h) 

Annualized 7-day yield as of period end.

(i) 

During the year ended July 31, 2019, investments in issuers considered to be an affiliate/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
07/31/19
     Value at
07/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

     569,880        2,633,115        3,202,995      $ 3,203,635      $ 11,617      $ (33    $  
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     4          09/19/19        $ 510        $ (5,896

Long U.S. Treasury Bond

     56          09/19/19          8,713          (123,480

5-Year U.S. Treasury Note

     15          09/30/19          1,763          2,173  
                 

 

 

 
                  $ (127,203
                 

 

 

 

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  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $      $      $      $      $ 2,173      $      $ 2,173  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Liabilities — Derivative Financial Instruments                                                 

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $      $      $      $      $ 129,376      $      $ 129,376  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the year ended July 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

   $      $      $      $      $ (658,809    $      $ (658,809
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (145,362    $      $ (145,362
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock Municipal Income Investment Trust (BBF)

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

   $ 8,380,650  

For more information about the Fund’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)

   $        $ 245,793,768        $        $ 245,793,768  

Short-Term Securities

     3,203,635                            3,203,635  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,203,635        $ 245,793,768        $        $ 248,997,403  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 2,173        $        $        $ 2,173  

Liabilities:

 

Interest rate contracts

     (129,376                          (129,376
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ (127,203      $        $             —        $ (127,203
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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

   $             —        $ (39,564,935      $             —        $ (39,564,935

VRDP Shares at Liquidation Value

              (52,000,000                 (52,000,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (91,564,935      $        $ (91,564,935
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      33  


Schedule of Investments

July 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Municipal Bonds — 132.0%

 

New York — 126.8%

 

Corporate — 5.6%  

Build NYC Resource Corp., Refunding RB, Pratt Paper, Inc. Project, AMT, 5.00%, 01/01/35(a)

  $ 280     $ 309,355  

City of New York Industrial Development Agency, Refunding RB, Transportation Infrastructure Properties LLC, Series A, AMT:

   

5.00%, 07/01/22

    650       705,965  

5.00%, 07/01/28

    795       860,572  

New York Liberty Development Corp., Refunding RB, Goldman Sachs Headquarters, 5.25%, 10/01/35

    3,195       4,285,485  

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

    2,305       2,423,454  

Niagara Area Development Corp., Refunding RB, Covanta Project, Series A, AMT, 4.75%, 11/01/42(a)

    2,370       2,457,998  
   

 

 

 
      11,042,829  
County/City/Special District/School District — 32.2%  

City of New York, GO, Refunding, Series E:

   

5.00%, 08/01/30

    1,000       1,123,870  

5.50%, 08/01/25

    1,115       1,303,045  

City of New York, GO :

   

Series A-1, 5.00%, 08/01/35

    1,000       1,068,550  

Series D, 5.38%, 06/01/32

    25       25,089  

Sub-Series A-1, Series A, 5.00%, 08/01/43(b)

    5,000       6,158,250  

Sub-Series D-1, Fiscal 2014, 5.00%, 08/01/31

    690       785,531  

Sub-Series G-1, 5.00%, 04/01/29

    750       823,320  

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       586,580  

City of New York Convention Center Development Corp., Refunding RB, Hotel Unit Fee Secured:

   

5.00%, 11/15/40

    2,975       3,483,368  

5.00%, 11/15/45

    3,700       4,321,193  

City of New York Industrial Development Agency, RB, PILOT :

   

CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/42(c)

    1,960       920,573  

CAB, Yankee Stadium Project, Series A (AGC), 0.00%, 03/01/45(c)

    1,500       622,365  

(AMBAC), 5.00%, 01/01/39

    3,000       3,006,780  

Queens Baseball Stadium (AGC), 6.38%, 01/01/39

    150       150,554  

Queens Baseball Stadium (AMBAC), 5.00%, 01/01/46

    175       175,348  

Yankee Stadium Project (NPFGC), 4.75%, 03/01/46

    350       350,770  

Yankee Stadium Project (NPFGC), 5.00%, 03/01/46

    500       500,950  

City of New York Transitional Finance Authority, RB, Future Tax Secured, 5.00%, 02/01/32

    5,000       5,774,950  

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       430,256  

Sub-Series E-1, 5.00%, 02/01/43

    1,725       2,060,581  

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       2,688,825  

County of Nassau New York, GO, Refunding, Series C, 5.00%, 10/01/31

    945       1,157,058  

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

   

5.75%, 02/15/21(d)

    125       134,029  

5.75%, 02/15/47

    75       79,235  

Hudson Yards Infrastructure Corp., Refunding RB, Series A:

   

5.00%, 02/15/39

    1,370       1,662,344  

5.00%, 02/15/42

    1,225       1,476,247  

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       2,031,020  
Security   Par
(000)
    Value  
County/City/Special District/School District (continued)  

2nd Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 07/15/49

  $ 1,200     $ 1,221,048  

3 World Trade Center Project, Class 1, 5.00%, 11/15/44(a)

    1,835       2,012,463  

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

    480       537,504  

4 World Trade Center Project, 5.00%, 11/15/31

    860       925,326  

4 World Trade Center Project, 5.00%, 11/15/44

    7,655       8,159,158  

7 World Trade Center Project, Class 1, 4.00%, 09/15/35

    1,935       2,041,444  

7 World Trade Center Project, Class 2, 5.00%, 09/15/43

    1,420       1,530,561  

7 World Trade Center Project, Class 3, 5.00%, 03/15/44

    2,070       2,211,360  

World Trade Center Project, 5.75%, 11/15/51

    1,340       1,462,798  
   

 

 

 
      63,002,343  
Education — 23.3%  

Amherst Development Corp., Refunding RB :

   

Daemen College Project, 5.00%, 10/01/43

    380       431,672  

Daemen College Project, 5.00%, 10/01/48

    290       325,136  

University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/20(d)

    1,100       1,146,090  

Build NYC Resource Corp., RB,(a):

   

Inwood Academy for Leadership Charter School Project, Series A, 5.13%, 05/01/38

    660       706,213  

New Dawn Charter School Project, 5.00%, 02/01/33

    435       447,189  

New Dawn Charter School Project, 5.75%, 02/01/49

    200       208,834  

Build NYC Resource Corp., Refunding RB, City University New York-Queens College Student Residences, LLC Project, Series A, 5.00%, 06/01/38

    250       286,535  

City of New York Trust for Cultural Resources, Refunding RB, Series A :

   

American Museum of Natural History, 5.00%, 07/01/37

    225       258,741  

Carnegie Hall, 4.75%, 12/01/39

    2,000       2,020,200  

City of Troy New York Capital Resource Corp., Refunding RB, Rensselaer Polytechnic Institute Project :

   

Series A, 5.13%, 09/01/40

    3,135       3,240,555  

Series B, 4.00%, 08/01/35

    470       512,690  

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       270,639  

County of Cattaraugus New York, RB, St. Bonaventure University Project, 5.00%, 05/01/34

    170       190,295  

County of Dutchess New York Local Development Corp., RB, Marist College Project:

   

5.00%, 07/01/43

    240       292,171  

5.00%, 07/01/48

    360       434,876  

County of Dutchess New York Local Development Corp., Refunding RB, Vassar College Project:

   

5.00%, 07/01/42

    395       475,007  

4.00%, 07/01/46

    745       804,607  

County of Monroe New York Industrial Development Corp., RB, University of Rochester Project, Series A, 5.00%, 07/01/21(d)

    1,900       2,043,583  

County of Monroe New York Industrial Development Corp., Refunding RB, University of Rochester Project, Series A, 5.00%, 07/01/23(d)

    320       369,002  

County of Nassau New York Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 03/01/20(d)

    1,165       1,190,315  

County of Orange New York Funding Corp., Refunding RB, Mount St. Mary College Project, Series A:

   

5.00%, 07/01/37

    360       389,041  

5.00%, 07/01/42

    220       236,513  
 

 

 

34    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
Education (continued)  

County of St. Lawrence New York Industrial Development Agency, RB, Clarkson University Project, 5.38%, 09/01/41

  $ 750     $ 796,793  

County of Tompkins New York Development Corp., RB, Ithaca College Project (AGM), 5.50%, 01/01/21(d)

    700       744,142  

Geneva Development Corp., Refunding RB, Hobart & William Smith Colleges, 5.25%, 09/01/44

    500       561,905  

State of New York Dormitory Authority, RB :

   

Convent of the Sacred Heart (AGM), 5.25%, 11/01/24

    155       165,233  

Convent of the Sacred Heart (AGM), 5.63%, 11/01/32

    750       799,935  

Convent of the Sacred Heart (AGM), 5.75%, 11/01/40

    210       223,022  

New York University, Series 1 (AMBAC), 5.50%, 07/01/40

    1,440       2,102,890  

New York University, Series B, 5.00%, 07/01/37

    1,250       1,377,450  

State University Dormitory Facilities, Series A, 5.00%, 07/01/41

    2,000       2,118,820  

State University Of New York Dormitory Facilities, Series A, 5.00%, 07/01/43

    845       1,036,511  

Teachers College, Series B, 5.00%, 07/01/42

    1,225       1,328,806  

Touro College & University System, Series A, 5.25%, 01/01/34

    800       900,600  

Touro College & University System, Series A, 5.50%, 01/01/39

    2,000       2,261,540  

University of Rochester, Series A, 5.13%, 07/01/39

    110       110,337  

University of Rochester, Series A, 5.75%, 07/01/39

    85       85,301  

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       2,206,960  

Barnard College, Series A, 5.00%, 07/01/33

    530       624,377  

Cornell University, Series A, 5.00%, 07/01/40

    800       826,464  

Culinary Institute of America, 5.00%, 07/01/42

    300       320,439  

Fordham University, 5.00%, 07/01/44

    850       972,205  

Icahn School of Medicine at Mount Sinai, Series A, 5.00%, 07/01/35

    1,380       1,606,417  

New York University, Series A, 5.00%, 07/01/37

    1,790       1,972,508  

Rochester Institute of Technology, 5.00%, 07/01/42

    1,000       1,085,660  

Skidmore College, Series A, 5.00%, 07/01/28

    75       80,321  

Skidmore College, Series A, 5.25%, 07/01/29

    85       91,333  

St. John’s University, Series A, 5.00%, 07/01/37

    835       973,952  

State University Dormitory Facilities, Series A, 5.25%, 07/01/30

    2,355       2,690,658  

State University Dormitory Facilities, Series A, 5.25%, 07/01/32

    445       506,575  

St. John’s University, Series A, 5.00%, 07/01/34

    250       292,993  

Town of Hempstead New York Local Development Corp., Refunding RB :

   

Adelphi University Project, 5.00%, 10/01/35

    415       474,308  

Hofstra University Project, 5.00%, 07/01/47

    120       143,260  
   

 

 

 
      45,761,619  
Health — 12.1%  

County of Dutchess New York Local Development Corp., RB, Health Quest Systems, Inc., Series B, 4.00%, 07/01/41

    1,600       1,688,384  

County of Dutchess New York Local Development Corp., Refunding RB, Health Quest System, Inc., Series A, 5.75%, 07/01/40

    300       309,714  

County of Genesee New York Industrial Development Agency, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27

    395       395,857  

County of Monroe New York Industrial Development Corp., RB, Rochester General Hospital Project:

   

4.00%, 12/01/41

    200       209,178  

5.00%, 12/01/46

    320       367,478  

Series A, 5.00%, 12/01/32

    240       263,626  
Security   Par
(000)
    Value  
Health (continued)  

County of Monroe New York Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 08/15/40

  $ 1,650     $ 1,741,195  

County of Nassau New York Local Economic Assistance Corp., Refunding RB, Winthrop University Hospital Association Project, 5.00%, 07/01/42

    2,800       2,992,276  

County of Suffolk New York EDC, RB, Catholic Health Services, Series C, 5.00%, 07/01/32

    230       264,376  

County of Tompkins New York Development Corp., Refunding RB, Kendal at Ithaca, Inc. Project, Series A, 5.00%, 07/01/44

    110       120,801  

County of Westchester New York Healthcare Corp., Refunding RB, Senior Lien :

   

Remarketing, Series A, 5.00%, 11/01/30

    3,130       3,346,064  

Series B, 6.00%, 11/01/20(d)

    435       461,913  

Series B, 6.00%, 11/01/30

    65       68,371  

County of Westchester New York Local Development Corp., Refunding RB, Kendal On Hudson Project:

   

5.00%, 01/01/28

    675       750,924  

5.00%, 01/01/34

    1,250       1,382,438  

State of New York Dormitory Authority, RB :

   

New York University Hospitals Center, Series A, 6.00%, 07/01/20(d)

    500       522,725  

North Shore-Long Island Jewish Obligated Group, Series D, 4.25%, 05/01/39

    500       523,855  

State of New York Dormitory Authority, Refunding RB :

   

Catholic Health System Obligation, 4.00%, 07/01/38

    470       511,012  

Catholic Health System Obligation, 4.00%, 07/01/39

    615       665,756  

Mount Sinai Hospital, Series A, 5.00%, 07/01/26

    1,385       1,433,143  

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/21(d)

    1,750       1,870,890  

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/21(d)

    1,000       1,069,080  

North Shore-Long Island Jewish Obligated Group, Series A, 5.00%, 05/01/43

    1,430       1,643,156  

North Shore-Long Island Jewish Obligated Group, Series E, 5.50%, 05/01/33

    1,100       1,103,850  
   

 

 

 
      23,706,062  
Housing — 4.9%  

City of New York Housing Development Corp., RB, M/F Housing :

   

Fund Grant Program, New York City Housing Authority Program, Series B1, 5.00%, 07/01/33

    500       563,635  

Fund Grant Program, New York City Housing Authority Program, Series B1, 5.25%, 07/01/32

    1,140       1,280,243  

Sustainable Neighborhood Bonds, 3.15%, 11/01/44

    250       251,882  

City of New York Housing Development Corp., Refunding RB, M/F Housing :

   

8 Spruce Street, Class F, 4.50%, 02/15/48

    925       980,019  

Sustainable Neighbourhood, Series B1-A, 3.65%, 11/01/49

    1,150       1,189,468  

County of Onondaga New York Trust for Cultural Resources, Refunding RB, Abby Lane Housing Corporation Project, 5.00%, 05/01/40

    355       416,887  

State of New York HFA, RB :

   

Affordable Housing, Series E (SONYMA), 4.15%, 11/01/47

    495       522,552  

M/F Housing, Highland Avenue Senior Apartments, Series A, AMT (SONYMA), 5.00%, 02/15/39

    1,400       1,402,156  

Series H, 4.25%, 11/01/51

    1,000       1,068,300  

State of New York Mortgage Agency, Refunding RB, S/F, Series 213, 4.20%, 10/01/43

    1,785       1,916,840  
   

 

 

 
      9,591,982  
 

 

 

SCHEDULES OF INVESTMENTS      35  


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  
State — 10.4%  

City of New York Transitional Finance Authority Building Aid Revenue, Refunding RB, Series S-3, 4.00%, 07/15/38

  $ 2,360     $ 2,643,200  

City of New York Transitional Finance Authority Future Tax Secured, RB, Series A-2, 5.00%, 08/01/38

    1,420       1,717,490  

State of New York Dormitory Authority, RB :

   

General Purpose, Series C, 5.00%, 03/15/34

    2,185       2,309,917  

Group B, State Sales Tax, Series A, 5.00%, 03/15/39

    620       743,349  

Series A, 5.00%, 03/15/36

    1,360       1,637,426  

Series A, 5.00%, 02/15/42

    1,500       1,783,755  

Series B, 5.00%, 03/15/42

    4,380       4,732,064  

State of New York Dormitory Authority, Refunding RB :

   

Group 3, Series E, 5.00%, 03/15/41

    1,160       1,413,170  

Series A, 5.25%, 03/15/39

    1,030       1,285,801  

State of New York Urban Development Corp., RB, State Personal Income Tax, Series C:

   

5.00%, 03/15/30

    885       999,289  

5.00%, 03/15/32

    1,000       1,125,330  
   

 

 

 
      20,390,791  
Tobacco — 3.2%  

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

    1,000       1,021,880  

Counties of New York Tobacco Trust VI, Refunding RB :

   

Settlement Pass-Through Turbo, Series C, 4.00%, 06/01/51

    1,500       1,381,215  

Tobacco Settlement Pass-Through, Series A-2B, 5.00%, 06/01/45

    130       137,748  

Tobacco Settlement Pass-Through, Series A-2B, 5.00%, 06/01/51

    1,470       1,556,833  

County of Chautauqua New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed, 4.75%, 06/01/39

    150       153,456  

County of Niagara New York Tobacco Asset Securitization Corp., Refunding RB, Asset-Backed:

   

5.25%, 05/15/34

    250       269,747  

5.25%, 05/15/40

    110       116,962  

Westchester New York Tobacco Asset Securitization, Refunding RB, Tobacco Settlement Bonds, Sub-Series C:

   

4.00%, 06/01/42

    720       736,870  

5.13%, 06/01/51

    870       918,711  
   

 

 

 
      6,293,422  
Transportation — 26.4%  

Buffalo & Fort Erie Public Bridge Authority, RB, 5.00%, 01/01/47

    535       614,426  

Metropolitan Transportation Authority, RB :

   

Series A-1, 5.25%, 11/15/23(d)

    540       635,909  

Series D, 5.25%, 11/15/21(d)

    220       241,061  

Series E, 5.00%, 11/15/38

    4,000       4,493,160  

Metropolitan Transportation Authority, Refunding RB :

   

Green Bonds, Climate Bond Certified, Sub-Series B-2, 4.00%, 11/15/34

    750       846,420  

Green Bonds, Series A-1, 5.25%, 11/15/56

    750       882,600  

Series D, 5.25%, 11/15/21(d)

    780       854,669  

Series D, 5.25%, 11/15/23(d)

    910       1,071,625  

Series F, 5.00%, 11/15/30

    2,000       2,217,580  

Series F, 5.00%, 11/15/35

    500       584,350  

Transportation, Series D, 5.00%, 11/15/20(d)

    800       840,824  

Metropolitan Transportation Authority Hudson Rail Yards Trust Obligations, Refunding RB, Series A, 5.00%, 11/15/56

    2,695       2,985,278  

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

   

5.00%, 07/01/41

    1,040       1,153,235  

5.00%, 07/01/46

    5,960       6,550,934  
Security   Par
(000)
    Value  
Transportation (continued)  

5.25%, 01/01/50

  $ 560     $ 625,122  

(AGM), 4.00%, 07/01/41

    800       852,520  

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       5,136,518  

Series 8, 6.00%, 12/01/42

    1,000       1,048,810  

Port Authority of New York & New Jersey, Refunding ARB :

   

178th Series, AMT, 5.00%, 12/01/33

    750       849,660  

179th Series, 5.00%, 12/01/38

    575       652,234  

195th Series, AMT, 5.00%, 04/01/36

    750       886,755  

Consolidated, 177th Series, AMT, 4.00%, 01/15/43

    640       662,106  

Consolidated, 178th Series, AMT, 5.00%, 12/01/43

    500       557,390  

State of New York Thruway Authority, RB, Junior Lien, Series A, 5.25%, 01/01/56

    920       1,074,348  

State of New York Thruway Authority, Refunding RB, General :

   

2nd Highway & Bridge Trust, Series A, 5.00%, 04/01/32

    2,500       2,738,400  

Series I, 5.00%, 01/01/37

    1,760       1,902,208  

Series I, 5.00%, 01/01/42

    280       301,104  

Series J, 5.00%, 01/01/41

    2,000       2,272,040  

Series K, 5.00%, 01/01/32

    2,575       3,044,783  

Triborough Bridge & Tunnel Authority, RB :

   

Series A, 5.00%, 11/15/42

    1,000       1,203,590  

Series B, 5.00%, 11/15/40

    350       413,280  

Series B, 5.00%, 11/15/45

    310       364,266  

Triborough Bridge & Tunnel Authority, Refunding RB :

   

General, CAB, Series B, 0.00%, 11/15/32(c)

    1,700       1,200,914  

General, Series A, 5.00%, 11/15/50

    500       579,410  

General, Series A, 5.25%, 11/15/45

    590       694,949  

Series B, 5.00%, 11/15/38

    515       621,147  
   

 

 

 
      51,653,625  
Utilities — 8.7%  

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

   

Series AA, 4.00%, 06/15/40

    2,825       3,195,244  

Water & Sewer System, 2nd General Resolution, Fiscal 2011, Series BB, 5.00%, 06/15/31

    1,000       1,032,590  

Water & Sewer System, 2nd General Resolution, Fiscal 2015, Series HH, 5.00%, 06/15/39

    1,000       1,176,160  

Long Island Power Authority, RB:

   

5.00%, 09/01/38

    2,750       3,377,825  

General, 5.00%, 09/01/36

    340       414,032  

General, 5.00%, 09/01/47

    490       586,192  

General, Electric Systems, Series A (AGM), 5.00%, 05/01/21(d)

    500       534,570  

General, Electric Systems, Series C (AGC), 5.25%, 09/01/29

    2,000       2,605,240  

Long Island Power Authority, Refunding RB, Electric System, Series B, 5.00%, 09/01/46

    250       293,790  

State of New York Environmental Facilities Corp., RB, Subordinated SRF Bonds, Series B, 5.00%, 06/15/48

    930       1,142,570  

State of New York Environmental Facilities Corp., Refunding RB, Revolving Funds, New York City Municipal Water, Series B, 5.00%, 06/15/36

    350       373,023  

Utility Debt Securitization Authority, Refunding RB, Restructuring, Series E, 5.00%, 12/15/41

    2,000       2,267,420  
   

 

 

 
      16,998,656  
   

 

 

 

Total Municipal Bonds in New York

 

    248,441,329  
   

 

 

 
 

 

 

36    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

(Percentages shown are based on Net Assets)

 

Security   Par
(000)
    Value  

Puerto Rico — 5.2%

 

State — 3.1%  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, Restructured :

   

Series A-1, 4.50%, 07/01/34

  $ 17     $ 17,534  

Series A-1, 4.75%, 07/01/53

    989       963,899  

Series A-1, 5.00%, 07/01/58

    3,751       3,743,160  

Series A-2, 4.55%, 07/01/40

    468       449,551  

Series A-2, 5.00%, 07/01/58

    1,010       969,388  
   

 

 

 
      6,143,532  
Tobacco — 0.5%  

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

    985       1,001,519  
   

 

 

 
Utilities — 1.6%  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Senior Lien, Series A:

   

5.00%, 07/01/33

    1,545       1,555,861  

5.13%, 07/01/37

    445       449,446  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 07/01/38

    1,020       1,030,882  
   

 

 

 
      3,036,189  
   

 

 

 

Total Municipal Bonds — 132.0%
(Cost — $240,424,622)

 

    258,622,569  
 

 

 

 

Municipal Bonds Transferred to Tender Option Bond Trusts(e)

 

New York — 33.8%

 

County/City/Special District/School District — 8.6%  

City of New York, GO :

   

Sub-Series G-1, 5.00%, 04/01/29

    4,370       4,797,211  

Sub-Series I-1, 5.00%, 03/01/36

    1,500       1,725,360  

Sub-Series-D1, Series D, 5.00%, 12/01/43(f)

    2,850       3,495,098  

City of New York Transitional Finance Authority, RB, Future Tax Secured:

   

Sub-Series F-1, 5.00%, 05/01/38

    1,424       1,717,139  

Sub-Series D-1, 5.00%, 11/01/38

    825       884,788  

Hudson Yards Infrastructure Corp., RB, Senior-Fiscal 2012(f):

   

5.75%, 02/15/21(d)

    774       825,091  

5.75%, 02/15/47

    476       507,571  

New York Liberty Development Corp., Refunding RB, 7 World Trade Center Project, Class 1, 5.00%, 09/15/40

    2,610       2,821,567  
   

 

 

 
      16,773,825  
Education — 2.0%  

City of New York Trust for Cultural Resources, Refunding RB, Wildlife Conservation Society, Series A, 5.00%, 08/01/33

    3,527       3,984,437  
   

 

 

 
Housing — 1.6%  

City of New York Housing Development Corp., Refunding RB, Sustainable Neighborhood Bonds, Series A, 4.25%, 11/01/43

    2,830       3,065,654  
   

 

 

 
State — 3.3%  

Sales Tax Asset Receivable Corp., Refunding RB, Fiscal 2015, Series A:

   

5.00%, 10/15/31

    750       888,630  

4.00%, 10/15/32

    1,000       1,125,860  

State of New York Dormitory Authority, RB, General Purpose, Series C, 5.00%, 03/15/41

    1,500       1,576,830  

State of New York Dormitory Authority, Refunding RB, Bid Group 4, Series C, 5.00%, 03/15/39

    1,000       1,218,540  

State of New York Urban Development Corp., RB, State Personal Income Tax, General Purpose, Series A, 4.00%, 03/15/47

    1,497       1,640,134  
   

 

 

 
      6,449,994  
Security   Par
(000)
    Value  
Transportation — 8.0%  

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

  $ 6,495     $ 7,063,050  

Port Authority of New York & New Jersey, Refunding ARB :

   

Consolidated, Series 169th, 5.00%, 10/15/26

    1,500       1,618,725  

Consolidated, Series 210th, 5.00%, 09/01/48

    1,900       2,307,303  

Series 194th, 5.25%, 10/15/55

    1,455       1,726,183  

State of New York Thruway Authority, Refunding RB, Transportation, Personal Income Tax, Series A, 5.00%, 03/15/31

    1,180       1,271,580  

Triborough Bridge & Tunnel Authority, Refunding RB, General, Series A, 5.00%, 11/15/46

    1,500       1,774,500  
   

 

 

 
      15,761,341  
Utilities — 10.3%  

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       5,670,602  

Fiscal 2012, Series BB, 5.00%, 06/15/44

    3,511       3,789,861  

Utility Debt Securitization Authority, Refunding RB:

   

5.00%, 12/15/41

    6,868       7,786,238  

Restructuring, Series A, 5.00%, 12/15/35

    2,000       2,413,620  

Restructuring, Series B, 4.00%, 12/15/35

    370       412,434  
   

 

 

 
      20,072,755  
   

 

 

 

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 33.8%
(Cost — $61,786,831)

 

    66,108,006  
 

 

 

 

Total Long-Term Investments — 165.8%
(Cost — $302,211,453)

 

    324,730,575  
 

 

 

 
     Shares         

Short-Term Securities — 2.5%

 

BlackRock Liquidity Funds New York Money Fund Portfolio,
1.23%(g)(h)

    4,949,042       4,949,042  
   

 

 

 

Total Short-Term Securities — 2.5%
(Cost — $4,949,042)

 

    4,949,042  
 

 

 

 

Total Investments — 168.3%
(Cost — $307,160,495)

 

    329,679,617  

Liabilities in Excess of Other Assets — (1.9)%

 

    (3,651,697

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (18.2)%

 

    (35,659,662

VMTP Shares, at Liquidation Value, Net of Deferred Offering Costs — (48.2)%

 

    (94,500,000
 

 

 

 

Net Assets Applicable to Common Shares — 100.0%

 

  $ 195,868,258  
 

 

 

 

 

(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) 

When-issued security.

(c) 

Zero-coupon bond.

(d) 

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

(e) 

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.

(f) 

All or a portion of the 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 August 15, 2020 to December 01, 2026, is $2,160,162. See Note 4 of the Notes to Financial Statements for details.

 

 

 

SCHEDULES OF INVESTMENTS      37  


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

 

(g) 

Annualized 7-day yield as of period end.

(h) 

During the year ended July 31, 2019, investments in issuers considered to be an 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
07/31/19
     Value at
07/31/19
     Income      Net
Realized
Gain (Loss)
 (a)
     Change in
Unrealized
Appreciation
(Depreciation)
 

BlackRock Liquidity Funds New York Money Fund Portfolio

            4,949,042        4,949,042      $ 4,949,042      $ 16,699      $      $  

BlackRock Liquidity Funds, MuniCash, Institutional Class

     2,136,343        (2,136,343                    5,172        45        (259
           

 

 

    

 

 

    

 

 

    

 

 

 
   $ 4,949,042      $ 21,871      $ 45      $ (259
           

 

 

    

 

 

    

 

 

    

 

 

 

 

  (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

     13          09/19/19        $ 1,656        $ (14,371

Long U.S. Treasury Bond

     57          09/19/19          8,869          (146,101

5-Year U.S. Treasury Note

     38          09/30/19          4,467          2,117  
                 

 

 

 
                  $ (158,355
                 

 

 

 

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  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Net unrealized appreciation(a)

   $      $      $      $      $ 2,117      $      $ 2,117  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Liabilities — Derivative Financial Instruments                                                 

Futures contracts

                    

Net unrealized depreciation(a)

   $      $      $      $      $ 160,472      $      $ 160,472  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the year ended July 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

   $      $      $      $      $ (1,058,343    $      $ (1,058,343
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Futures contracts

   $      $      $      $      $ (139,495    $      $ (139,495
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

 

Average notional value of contracts — short

  $ 15,049,723  

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.

 

 

38    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Schedule of Investments  (continued)

July 31, 2019

  

BlackRock New York Municipal Income Trust (BNY)

 

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)

   $        $ 324,730,575        $             —        $ 324,730,575  

Short-Term Securities

     4,949,042                            4,949,042  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 4,949,042        $ 324,730,575        $        $ 329,679,617  
  

 

 

      

 

 

      

 

 

      

 

 

 

Derivative Financial Instruments(b)

 

Assets:

 

Interest rate contracts

   $ 2,117        $        $        $ 2,117  

Liabilities:

 

Interest rate contracts

     (160,472                          (160,472
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ (158,355      $        $        $ (158,355
  

 

 

      

 

 

      

 

 

      

 

 

 

 

  (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.

 

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

   $             —        $ (35,517,166      $             —        $ (35,517,166

VMTP Shares at Liquidation Value

              (94,500,000                 (94,500,000
  

 

 

      

 

 

      

 

 

      

 

 

 
   $        $ (130,017,166      $        $ (130,017,166
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

SCHEDULES OF INVESTMENTS      39  


 

Statements of Assets and Liabilities

July 31, 2019

 

     BFZ      BTT      BBF      BNY  

ASSETS

 

Investments at value — unaffiliated(a)

  $ 830,942,013      $ 2,793,955,364      $ 245,793,768      $ 324,730,575  

Investments at value — affiliated(b)

           3,726,538        3,203,635        4,949,042  

Cash

                  8,656        11,781  

Cash pledged for futures contracts

    648,000               127,850        165,250  

Receivables:

 

Investments sold

    6,939,525        115,000        2,200,142        20,000  

TOB Trust

                  1,300,208         

Dividends — affiliated

    1,643        6,184        3,245        5,535  

Interest — unaffiliated

    9,959,323        25,468,210        2,666,484        3,214,295  

Variation margin on futures contracts

    3,982               983        2,512  

Prepaid expenses

    18,471        45,062        32,091        16,274  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total assets

    848,512,957        2,823,316,358        255,337,062        333,115,264  
 

 

 

    

 

 

    

 

 

    

 

 

 

ACCRUED LIABILITIES

 

Bank overdraft

    253,262                       

Payables:

 

Investments purchased

    31,080,765               18,316,284        6,116,400  

Income dividend distributions — Common Shares

    1,323,970        4,399,548        552,467        577,435  

Interest expense and fees

    789,350        1,254,786        195,152        142,496  

Investment advisory fees

    399,913        953,342        113,360        165,616  

Trustees’ and Officer’s fees

    84,511        11,473        28,725        35,103  

Variation margin on futures contracts

    213,622               48,950        53,554  

Other accrued expenses

    169,762        496,344        133,137        139,236  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total accrued liabilities

    34,315,155        7,115,493        19,388,075        7,229,840  
 

 

 

    

 

 

    

 

 

    

 

 

 

OTHER LIABILITIES

 

TOB Trust Certificates

    156,312,177        261,819,915        39,564,935        35,517,166  

RVMTP Shares, at liquidation value of $5,000,000 per share, net of deferred offering costs(c)

           749,642,648                

VRDP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)

                  51,719,007         

VMTP Shares, at liquidation value of $100,000 per share(c)

    171,300,000                      94,500,000  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total other liabilities

    327,612,177        1,011,462,563        91,283,942        130,017,166  
 

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

    361,927,332        1,018,578,056        110,672,017        137,247,006  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 486,585,625      $ 1,804,738,302      $ 144,665,045      $ 195,868,258  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF

 

Paid-in capital(d)

  $ 446,985,849      $ 1,671,126,936      $ 134,217,749      $ 178,186,257  

Accumulated earnings

    39,599,776        133,611,366        10,447,296        17,682,001  
 

 

 

    

 

 

    

 

 

    

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

  $ 486,585,625      $ 1,804,738,302      $ 144,665,045      $ 195,868,258  
 

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value per Common share

  $ 15.25      $ 25.60      $ 14.14      $ 15.09  
 

 

 

    

 

 

    

 

 

    

 

 

 

(a) Investments at cost — unaffiliated

  $ 788,792,856      $ 2,632,322,319      $ 231,599,878      $ 302,211,453  

(b) Investments at cost — affiliated

  $      $ 3,726,538      $ 3,203,635      $ 4,949,042  

(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        10,230,868        12,976,074  

See notes to financial statements.

 

 

40    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Statements of Operations

Year Ended July 31, 2019

 

     BFZ     BTT     BBF     BNY  

INVESTMENT INCOME

 

Dividends — affiliated

  $ 34,452     $ 199,619     $ 11,617     $ 21,871  

Interest — unaffiliated

    29,503,042       91,194,432       10,910,095       12,624,881  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

    29,537,494       91,394,051       10,921,712       12,646,752  
 

 

 

   

 

 

   

 

 

   

 

 

 

EXPENSES

 

Investment advisory

    4,627,439       10,840,251       1,344,777       1,905,110  

Professional

    97,058       222,132       111,876       62,464  

Accounting services

    46,627       264,176       49,149       58,885  

Rating agency

    44,473       45,563       44,248        

Trustees and Officer

    42,599       137,861       6,711       18,000  

Transfer agent

    35,512       77,495       27,878       23,050  

Custodian

    31,011       19,050       8,441       6,313  

Registration

    12,133       26,814       9,305       9,307  

Printing

    9,746       17,283       7,677       8,064  

Liquidity fees

                2,017        

Remarketing fees on Preferred Shares

                1,980        

Miscellaneous

    27,893       124,036       16,042       64,616  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses excluding interest expense, fees and amortization of offering costs

    4,974,491       11,774,661       1,630,101       2,155,809  

Interest expense, fees and amortization of offering costs(a)

    7,919,163       23,404,119       2,254,484       2,992,750  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

    12,893,654       35,178,780       3,884,585       5,148,559  

Less fees waived and/or reimbursed by the Manager

    (1,508     (13,533     (774     (535
 

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed

    12,892,146       35,165,247       3,883,811       5,148,024  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

    16,645,348       56,228,804       7,037,901       7,498,728  
 

 

 

   

 

 

   

 

 

   

 

 

 

REALIZED AND UNREALIZED GAIN (LOSS)

 

Net realized gain (loss) from:

 

Capital gain distributions from investment companies — affiliated

          5       12        

Futures contracts

    (3,260,193           (658,809     (1,058,343

Investments — affiliated

    (9     871       (45     45  

Investments — unaffiliated

    2,059,842       (456,310     392,948       (719,586
 

 

 

   

 

 

   

 

 

   

 

 

 
    (1,200,360     (455,434     (265,894     (1,777,884
 

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) on:

       

Futures contracts

    (324,549           (145,362     (139,495

Investments — affiliated

    (610     (2,680           (259

Investments — unaffiliated

    21,662,979       136,564,584       3,345,750       8,775,024  
 

 

 

   

 

 

   

 

 

   

 

 

 
    21,337,820       136,561,904       3,200,388       8,635,270  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gain

    20,137,460       136,106,470       2,934,494       6,857,386  
 

 

 

   

 

 

   

 

 

   

 

 

 

NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS

  $ 36,782,808     $ 192,335,274     $ 9,972,395     $ 14,356,114  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) 

Related to TOB Trusts, VMTP Shares, RVMTP Shares and/or VRDP Shares.

See notes to financial statements.

 

 

FINANCIAL STATEMENTS      41  


 

Statements of Changes in Net Assets

 

    BFZ           BTT  
    Year Ended July 31,           Year Ended July 31,  
     2019     2018            2019     2018  

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

 

     

OPERATIONS

 

     

Net investment income

  $ 16,645,348     $ 20,790,086       $ 56,228,804     $ 59,750,624  

Net realized gain (loss)

    (1,200,360     7,053,535         (455,434     5,215,938  

Net change in unrealized appreciation (depreciation)

    21,337,820       (23,389,382       136,561,904       (19,498,300
 

 

 

   

 

 

     

 

 

   

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    36,782,808       4,454,239         192,335,274       45,468,262  
 

 

 

   

 

 

     

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)(b)

 

     

Decrease in net assets resulting from distributions to common shareholders

    (22,604,406     (21,374,933       (52,794,572     (60,111,851
 

 

 

   

 

 

     

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS(b)

 

     

Total increase (decrease) in net assets applicable to Common Shareholders

    14,178,402       (16,920,694       139,540,702       (14,643,589

Beginning of year

    472,407,223       489,327,917         1,665,197,600       1,679,841,189  
 

 

 

   

 

 

     

 

 

   

 

 

 

End of year

  $ 486,585,625     $ 472,407,223       $ 1,804,738,302     $ 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 (distributions in excess of) 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.

 

 

42    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Statements of Changes in Net Assets  (continued)

 

    BBF            BNY  
    Year Ended July 31,            Year Ended July 31,  
     2019     2018             2019     2018  

INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS

 

      

OPERATIONS

 

      

Net investment income

  $ 7,037,901     $ 8,136,606        $ 7,498,728     $ 7,786,646  

Net realized gain (loss)

    (265,894     1,259,032          (1,777,884     832,277  

Net change in unrealized appreciation (depreciation)

    3,200,388       (7,344,232        8,635,270       (7,072,798
 

 

 

   

 

 

      

 

 

   

 

 

 

Net increase in net assets applicable to Common Shareholders resulting from operations

    9,972,395       2,051,406          14,356,114       1,546,125  
 

 

 

   

 

 

      

 

 

   

 

 

 

DISTRIBUTIONS TO COMMON SHAREHOLDERS(a)(b)

          

From net investment income

    (7,106,298     (8,338,505        (6,939,968     (8,310,969

From return of capital

    (73,775                     
 

 

 

   

 

 

      

 

 

   

 

 

 

Decrease in net assets resulting from distributions to shareholders

    (7,180,073     (8,338,505        (6,939,968     (8,310,969
 

 

 

   

 

 

      

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

 

      

Reinvestment of common distributions

    64,363       105,235                188,434  
 

 

 

   

 

 

      

 

 

   

 

 

 

NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS(b)

 

      

Total increase (decrease) in net assets applicable to Common Shareholders

    2,856,685       (6,181,864        7,416,146       (6,576,410

Beginning of year

    141,808,360       147,990,224          188,452,112       195,028,522  
 

 

 

   

 

 

      

 

 

   

 

 

 

End of year

  $ 144,665,045     $ 141,808,360        $ 195,868,258     $ 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.

 

 

FINANCIAL STATEMENTS      43  


 

Statements of Cash Flows

Year Ended July 31, 2019

 

     BFZ     BTT     BBF     BNY  

CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES

       

Net increase in net assets resulting from operations

  $ 36,782,808     $ 192,335,274     $ 9,972,395     $ 14,356,114  

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

       

Proceeds from sales of long-term investments

    408,134,686       568,585,949       84,716,468       71,553,477  

Purchases of long-term investments

    (411,919,631     (598,154,620     (71,184,275     (73,523,093

Net proceeds from sales (purchases) of short-term securities

    6,191,208       10,575,346       (2,633,686     (2,812,485

Amortization of premium and accretion of discount on investments and other fees

    7,588,434       15,685,852       700,669       1,783,999  

Net realized (gain) loss on investments

    (2,059,833     455,439       (392,903     719,541  

Net unrealized appreciation on investments

    (21,662,369     (136,561,904     (3,345,750     (8,774,765

(Increase) Decrease in Assets:

       

Receivables:

       

Dividends — affiliated

    2,212       25,468       (2,563     (4,163

Interest — unaffiliated

    540,453       660,551       260,830       85,874  

Variation margin on futures contracts

    (3,780           (929     (2,462

Prepaid expenses

    2,797       (4,665     (15,619     706  

Increase (Decrease) in Liabilities:

       

Payables:

       

Investment advisory fees

    4,868       45,706       (4,423     5,428  

Interest expense and fees

    151,347       244,075       9,853       46,449  

Trustees’ and Officer’s fees

    2,744       (4,072     (6,076     1,249  

Variation margin on futures contracts

    180,454             43,788       40,717  

Other accrued expenses

    8,501       (19,411     16,084       11,078  
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

    23,944,899       53,868,988       18,133,863       3,487,664  
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

       

Proceeds from TOB Trust Certificates

    24,879,635             7,061,284       5,287,005  

Repayments of TOB Trust Certificates

    (25,693,326           (17,839,372     (1,634,863

Proceeds from Loan for TOB Trust Certificates

    8,760,468             839,160        

Repayments of Loan for TOB Trust Certificates

    (8,760,468           (839,160      

Cash dividends paid to Common Shareholders

    (22,779,871     (52,794,572     (7,181,932     (6,939,968

Decrease in bank overdraft

    (12,337     (1,105,685     (91,298     (148,057

Amortization of deferred offering costs

          31,269       6,111        
 

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used for financing activities

    (23,605,899     (53,868,988     (18,045,207     (3,435,883
 

 

 

   

 

 

   

 

 

   

 

 

 

CASH

       

Net increase in restricted and unrestricted cash

    339,000             88,656       51,781  

Restricted and unrestricted cash at beginning of year

    309,000             47,850       125,250  
 

 

 

   

 

 

   

 

 

   

 

 

 

Restricted and unrestricted cash at end of year

  $ 648,000     $     $ 136,506     $ 177,031  
 

 

 

   

 

 

   

 

 

   

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

       

Cash paid during the year for interest expense

  $ 7,767,816     $ 23,128,775     $ 2,238,520     $ 2,946,301  
 

 

 

   

 

 

   

 

 

   

 

 

 

NON-CASH FINANCING ACTIVITIES

       

Capital shares issued in reinvestment of distributions paid to Common Shareholders

                64,363        
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF YEAR TO THE STATEMENTS OF ASSETS AND LIABILITIES

       

Cash

                8,656       11,781  

Cash pledged:

       

Futures contracts

    648,000             127,850       165,250  
 

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 648,000     $     $ 136,506     $ 177,031  
 

 

 

   

 

 

   

 

 

   

 

 

 

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR TO THE STATEMENT OF ASSETS AND LIABILITIES

       

Cash pledged:

       

Futures contracts

  $ 309,000     $     $ 47,850     $ 125,250  
 

 

 

   

 

 

   

 

 

   

 

 

 

See notes to financial statements.

 

 

44    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights

(For a share outstanding throughout each period)

 

    BFZ  
    Year Ended July 31,  
     2019      2018      2017      2016      2015  

Net asset value, beginning of year

  $ 14.81      $ 15.34      $ 16.35      $ 15.84      $ 15.83  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.52        0.65        0.73        0.83        0.83  

Net realized and unrealized gain (loss)

    0.63        (0.51      (0.97      0.54        0.05  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    1.15        0.14        (0.24      1.37        0.88  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders(b)

             

From net investment income

    (0.55      (0.67      (0.77      (0.86      (0.87

From net realized gain

    (0.16                            
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total distributions

    (0.71      (0.67      (0.77      (0.86      (0.87
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 15.25      $ 14.81      $ 15.34      $ 16.35      $ 15.84  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of year

  $ 13.50      $ 12.75      $ 14.71      $ 16.76      $ 14.65  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

             

Based on net asset value

    8.89      1.41      (1.22 )%       8.92      5.96
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    11.96      (8.95 )%       (7.59 )%       20.72      7.66
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

             

Total expenses

    2.76      2.41      2.14      1.68      1.53
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed paid indirectly

    2.76      2.41      2.14      1.68      1.53
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed paid indirectly and excluding interest expense, fees, and amortization of offering costs(d)

    1.06      1.05      1.07      1.04      1.00
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.56      4.33      4.73      5.17      5.20
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

             

Net assets applicable to Common Shareholders, end of year (000)

  $ 486,586      $ 472,407      $ 489,328      $ 521,335      $ 504,967  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 171,300      $ 171,300      $ 171,300      $ 171,300      $ 171,300  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of year

  $ 384,055      $ 375,778      $ 385,656      $ 404,341      $ 394,785  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of year (000)

  $ 156,312      $ 157,126      $ 169,863      $ 183,691      $ 155,533  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    51      45      38      30      37
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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) 

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.

 

 

FINANCIAL HIGHLIGHTS      45  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BTT  
    Year Ended July 31,  
     2019      2018      2017     2016      2015  

Net asset value, beginning of year

  $ 23.62      $ 23.83      $ 25.38     $ 22.73      $ 21.99  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Net investment income(a)

    0.80        0.85        0.90       1.03        1.09  

Net realized and unrealized gain (loss)

    1.93        (0.21      (1.50     2.58        0.61  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Net increase (decrease) from investment operations

    2.73        0.64        (0.60     3.61        1.70  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.75      (0.85      (0.95     (0.96      (0.96
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Net asset value, end of year

  $ 25.60      $ 23.62      $ 23.83     $ 25.38      $ 22.73  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Market price, end of year

  $ 23.49      $ 21.43      $ 23.14     $ 24.24      $ 20.80  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

 

Based on net asset value

    12.17      3.04      (2.14 )%      16.57      8.32
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Based on market price

    13.45      (3.73 )%       (0.51 )%      21.67      11.37
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

 

Total expenses

    2.07      1.76      1.49 %(d)      1.17      1.14
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.07      1.76      1.49 %(d)      1.09      1.06
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(e)

    0.69      0.69      0.68 %(d)      0.61      0.62
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.31      3.55      3.80 %(d)      4.30      4.77
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Supplemental Data

 

Net assets applicable to Common Shareholders, end of year (000)

  $ 1,804,738      $ 1,665,198      $ 1,679,841     $ 1,789,120      $ 1,602,414  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

RVMTP Shares outstanding at $5,000,000 liquidation value, end of year (000)

  $ 750,000      $ 750,000      $ 750,000     $ 750,000      $ 750,000  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Asset coverage per RVMTP Shares at $5,000,000 liquidation value, end of year

  $ 340,632      $ 16,101,317      $ 16,198,941     $ 16,927,465      $ 15,682,760  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Borrowings outstanding, end of year (000)

  $ 261,820      $ 261,820      $ 184,115     $ 184,115      $ 184,120  
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

Portfolio turnover rate

    21      23      32     42      12
 

 

 

    

 

 

    

 

 

   

 

 

    

 

 

 

 

(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) 

Excludes 0.01% of expenses incurred indirectly as a result of investments in underlying funds.

(e) 

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.

 

 

46    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BBF  
    Year Ended July 31,  
     2019      2018      2017      2016     2015  

Net asset value, beginning of year

  $ 13.87      $ 14.48      $ 15.47      $ 15.14     $ 15.09  
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net investment income(a)

    0.69        0.80        0.84        0.84       0.87  

Net realized and unrealized gain (loss)

    0.28        (0.59      (0.96      0.36       0.05  
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net increase (decrease) from investment operations

    0.97        0.21        (0.12      1.20       0.92  
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Distributions to Common Shareholders(b)

            

From net investment income

    (0.69      (0.82      (0.87      (0.87     (0.87

From return of capital

    (0.01                           
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total distributions

    (0.70      (0.82      (0.87      (0.87     (0.87
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net asset value, end of year

  $ 14.14      $ 13.87      $ 14.48      $ 15.47     $ 15.14  
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Market price, end of year

  $ 14.25      $ 13.37      $ 15.27      $ 16.00     $ 13.44  
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total Return Applicable to Common Shareholders(c)

            

Based on net asset value

    7.49      1.65      (0.65 )%       8.40     6.76
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Based on market price

    12.38      (7.08 )%       1.30      26.29     6.09
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

            

Total expenses

    2.77      2.53      2.16      2.01 %(d)      1.76
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.77      2.53      2.16      2.01 %(d)      1.76
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense and fees, and amortization of offering costs(e)(f)

    1.16      1.15      1.13      1.45 %(d)      1.50
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Net investment income to Common Shareholders

    5.01      5.63      5.72      5.50     5.65
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Supplemental Data

 

Net assets applicable to Common Shareholders, end of year (000)

  $ 144,665      $ 141,808      $ 147,990      $ 157,965     $ 101,509  
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

VRDP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 52,000      $ 52,000      $ 52,000      $ 52,000     $ 34,200  
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Asset coverage per VRDP Shares at $100,000 liquidation value, end of year

  $ 378,202      $ 372,708      $ 384,597      $ 403,780     $ 396,809  
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Borrowings outstanding, end of year (000)

  $ 39,565      $ 49,043      $ 50,028      $ 47,193     $ 29,682  
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Portfolio turnover rate

    36      31      39      17     11
 

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

(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) 

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.

(e) 

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.

(f) 

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,  
     2019            2018            2017            2016            2015         

Expense ratios

    1.16                   1.38       1.17  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

   

See notes to financial statements.

 

 

FINANCIAL HIGHLIGHTS      47  


Financial Highlights  (continued)

(For a share outstanding throughout each period)

 

    BNY  
    Year Ended July 31,  
     2019      2018      2017      2016      2015  

Net asset value, beginning of year

  $ 14.52      $ 15.04      $ 15.94      $ 14.97      $ 14.68  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income(a)

    0.58        0.60        0.67        0.75        0.79  

Net realized and unrealized gain (loss)

    0.52        (0.48      (0.85      1.02        0.33  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net increase (decrease) from investment operations

    1.10        0.12        (0.18      1.77        1.12  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Distributions to Common Shareholders from net investment income(b)

    (0.53      (0.64      (0.72      (0.80      (0.83
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net asset value, end of year

  $ 15.09      $ 14.52      $ 15.04      $ 15.94      $ 14.97  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Market price, end of year

  $ 13.81      $ 12.53      $ 15.37      $ 16.71      $ 14.54  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total Return Applicable to Common Shareholders(c)

             

Based on net asset value

    8.33      1.13      (0.93 )%       12.13      8.00
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Based on market price

    14.88      (14.61 )%       (3.43 )%       21.02      11.67
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Ratios to Average Net Assets Applicable to Common Shareholders

             

Total expenses

    2.73      2.45      2.15      1.75      1.73
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly

    2.73      2.45      2.14      1.75      1.73
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense, fees and amortization of offering costs(d)

    1.14      1.12      1.12      1.11      1.12
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Net investment income to Common Shareholders

    3.98      4.06      4.45      4.89      5.24
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Supplemental Data

 

Net assets applicable to Common Shareholders, end of year (000)

  $ 195,868      $ 188,452      $ 195,029      $ 206,414      $ 193,299  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

VMTP Shares outstanding at $100,000 liquidation value, end of year (000)

  $ 94,500      $ 94,500      $ 94,500      $ 94,500      $ 94,500  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Asset coverage per VMTP Shares at $100,000 liquidation value, end of year

  $ 307,268      $ 299,420      $ 306,379      $ 318,428      $ 304,549  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Borrowings outstanding, end of year (000)

  $ 35,517      $ 31,865      $ 32,047      $ 31,780      $ 28,961  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Portfolio turnover rate

    23      9      16      14      11
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

(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) 

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.

 

 

48    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements

 

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 BlackRock 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 executed. 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 portion of distributions, if any, that exceeds a fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Trust’s Board, the trustees who are not “interested persons” of the Trusts, as defined in the 1940 Act (“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 continues to evaluate the impact of this guidance on 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.

 

 

NOTES TO FINANCIAL STATEMENTS      49  


Notes to Financial Statements  (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. 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. 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, When-Issued and 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 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.

 

 

50    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (continued)

 

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 the 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
Expense
     Total  

BFZ

  $ 2,547,263      $ 739,205      $ 229,426      $ 3,515,894  

BTT

    4,269,259        936,060        639,801        5,845,120  

BBF

    700,576        191,343        71,299        963,218  

BNY

    559,916        163,778        42,230        765,924  

For the year ended July 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

  $ 344,969,182      $ 156,312,177        1.35% — 1.65%      $ 159,234,127        2.20

BTT

    458,903,054        261,819,915        1.43% — 1.55%        261,819,915        2.23  

BBF

    71,190,068        39,564,935        1.36% — 1.58%        43,351,461        2.22  

BNY

    66,108,006        35,517,166        1.41% — 1.55%        34,695,261        2.21  

 

  (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 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

 

 

 

NOTES TO FINANCIAL STATEMENTS      51  


Notes to Financial Statements  (continued)

 

  TOB Trust. If the trust invests in a TOB Trust on a recourse basis, the trust enters into a reimbursement agreement with the Liquidity Provider where the 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 the trust invests in a recourse TOB Trust, the trust will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by the trust at July 31, 2019, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a trust at July 31, 2019.  

For the year ended July 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

  $           $ 270,972        0.82

BBF

                  9,196        0.78  

 

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.

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, are 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, Inc. (“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 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.

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).

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 year ended July 31, 2019, the amounts waived were as follows:

 

     BFZ      BTT      BBF      BNY  

Amounts waived

  $ 1,508      $ 13,533      $ 774      $ 535  

 

 

52    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (continued)

 

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, 2020. 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 Trusts’ Independent Trustees. For the year ended July 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.

Other Transactions: 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 year ended July 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:

 

     Purchases      Sales      Net Realized
Gain (Loss)
 

BTT

  $      $ 300,000      $  

BBF

           259,416        (19,276

 

7.

PURCHASES AND SALES

For the year ended July 31, 2019, purchases and sales of investments, excluding short-term securities, were as follows:

 

     BFZ      BTT      BBF      BNY  

Purchases

  $ 423,557,623      $ 585,504,467      $ 87,879,390      $ 79,639,493  

Sales

    402,712,571        568,305,949        85,344,502        71,553,477  

 

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, 2019. 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 July 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.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of period end, the following permanent differences attributable to non-deductible expenses and the expiration of capital loss carryforwards were reclassified to the following accounts:

 

     BTT     BBF     BNY  

Paid-in capital

  $ (31,269   $ (657,576   $ (1,982,931

Accumulated earnings

    31,269       657,576       1,982,931  

 

 

NOTES TO FINANCIAL STATEMENTS      53  


Notes to Financial Statements  (continued)

 

The tax character of distributions paid was as follows:

 

     BFZ      BTT      BBF      BNY  

Tax-exempt income(a)

          

7/31/2019

  $ 20,679,610      $ 70,317,185      $ 8,386,654      $ 9,153,203  

7/31/2018

    24,915,719        73,569,689        9,397,956        10,229,776  

Ordinary income(b)

          

7/31/2019

    178,261        5,117        4,798        13,591  

7/31/2018

    2,214        31,299        5,666        38,574  

Long-term capital gains(c)

          

7/31/2019

    6,149,804                       

7/31/2018

                          

Tax return of capital

          

7/31/2019

                  73,775         

7/31/2018

                          
 

 

 

    

 

 

    

 

 

    

 

 

 

Total

          

7/31/2019

  $ 27,007,675      $ 70,322,302      $ 8,465,227      $ 9,166,794  
 

 

 

    

 

 

    

 

 

    

 

 

 

7/31/2018

  $ 24,917,933      $ 73,600,988      $ 9,403,622      $ 10,268,350  
 

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a) 

The Trusts designate these amounts paid during the fiscal year ended July 31, 2019, as exempt-interest dividends.

 
  (b) 

Ordinary income consists primarily of taxable income recognized from market discount and net short-term gains. Additionally, all ordinary income distributions are comprised of interest related dividends and qualified short-term gains for non-US residents and are eligible for exemption from US withholding tax for nonresident aliens and foreign corporations.

 
  (c) 

The Trusts designate these amounts paid during the fiscal year ended July 31, 2019, as capital gain dividends.

 

As of period end, the tax components of accumulated net earnings were as follows:

 

     BFZ     BTT     BBF     BNY  

Undistributed tax-exempt income

  $     $ 1,230,222     $     $ 760,104  

Undistributed ordinary income

    7,156                   3,814  

Non-expiring capital loss carryforwards(a)

    (1,242,628     (24,405,259     (3,116,059     (5,375,343

Net unrealized gains(b)

    40,835,248       156,786,403       13,563,355       22,293,426  
 

 

 

   

 

 

   

 

 

   

 

 

 
  $ 39,599,776     $ 133,611,366     $ 10,447,296     $ 17,682,001  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

  (a) 

Amounts available to offset future realized capital gains.

 
  (b) 

The differences between book-basis and tax-basis net unrealized gains were attributable primarily to the tax deferral of losses on wash sales, amortization and accretion methods of premiums and discounts on fixed income securities, the realization for tax purposes of unrealized gains / (losses) on certain futures contracts, the treatment of residual interests in tender option bond trusts and the deferral of compensation to Trustees.

 

As of July 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

  $ 633,113,356     $ 2,379,075,584     $ 195,289,010     $ 271,835,347  
 

 

 

   

 

 

   

 

 

   

 

 

 

Gross unrealized appreciation

  $ 41,557,599     $ 160,381,737     $ 14,273,263     $ 22,649,943  

Gross unrealized depreciation

    (41,117     (3,595,334     (129,806     (322,839
 

 

 

   

 

 

   

 

 

   

 

 

 

Net unrealized appreciation

  $ 41,516,482     $ 156,786,403     $ 14,143,457     $ 22,327,104  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

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.

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.

 

 

54    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (continued)

 

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.

Each Trust may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. A Trust may not be able to readily dispose of such investments at prices that approximate those at which the Trust could sell such investments if they were more widely traded and, as a result of such illiquidity, the Trust may have to sell other investments or engage in borrowing transactions if necessary to raise funds to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting a Trust’s net asset value and ability to make dividend distributions. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in below investment grade public debt securities.

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, each of BFZ and BNY invested a significant portion of its assets in securities in the county, city, special district and school district sector. Changes in economic conditions affecting such sector 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 Trusts may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

 

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.

 

 

NOTES TO FINANCIAL STATEMENTS      55  


Notes to Financial Statements  (continued)

 

Common Shares

For the years shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:

 

Year Ended July 31,   BFZ      BTT      BBF      BNY  

2019

  $      $      $ 4,609      $  

2018

                  7,282        12,500  

For the years ended July 31, 2019 and July 31, 2018, shares issued and outstanding remained constant for BFZ and BTT.

On November 15, 2018, the Board of Trustees authorized BFZ, BBF and BNY to participate in an open market share repurchase program (the “Repurchase Program”). Under the Repurchase 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 year ended July 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 Trust’s 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 Trust’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 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: BBF is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, BBF is required to begin to segregate liquid assets with the Trust’s custodian to fund the redemption. In addition, BBF 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 BBF. 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. As of period end, the fee agreement is set to expire, unless renewed or terminated in advance, as follows:

 

     BBF  

Expiration Date

    04/15/20  

The VRDP Shares are also subject to a purchase agreement in connection with the liquidity feature. In the event a purchase agreement is not renewed or is terminated in advance, and VRDP Shares do not become subject to a purchase 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 purchase agreement. In the event of such mandatory purchase, BBF 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 to segregate liquid assets with its custodian to fund the redemption. There is no assurance BBF will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

Remarketing: BBF 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), BBF may incur nominal or no remarketing fees.

 

 

56    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (continued)

 

Ratings: As of period end, the VRDP Shares were assigned the following long-term ratings:

 

     Moody’s      Fitch  

BBF

    Aa1        AAA  

Special Rate Period: BBF has commenced 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. BBF’s special rate period has commenced on October 22, 2015 and has a current expiration date of April 15, 2020.

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 an agreed upon reference 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 during the Special Rate Period as described above, 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 year ended July 31, 2019, the annualized dividend rate for the VRDP Shares was 2.47%.

VMTP Shares

BFZ and BNY (for purposes of this section, 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 the VMTP Trusts may also be required to register its VMTP Shares for sale under the Securities Act under certain circumstances. As of period end, the VMTP Shares outstanding and assigned long-term ratings were as follows:

 

     Issue
Date
     Shares
Issued
     Aggregate
Principal
    

Term

Redemption

Date

     Moody’s
Rating
     Fitch
Rating
 

BFZ

    03/22/12        1,713      $ 171,300,000        03/30/20        Aa2        AAA  

BNY

    03/22/12        945        94,500,000        03/30/20        Aa2        AAA  

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 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 Securities Industry and Financial Markets Association (“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.

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.

 

 

NOTES TO FINANCIAL STATEMENTS      57  


Notes to Financial Statements  (continued)

 

For the year ended July 31, 2019, the average annualized dividend rates for the VMTP Shares were as follows.

 

     BFZ      BNY  

Rate

    2.57      2.36

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 BTT were as follows:

 

     Issue
Date
     Shares
Issued
     Shares
Outstanding
    

Aggregate

Principal

     Term
Redemption
Date
 

BTT

    01/10/2013        50      50      $ 250,000,000        12/31/2030
    01/30/2013        50        50        250,000,000        12/31/2030  
      02/20/2013        50        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 year ended July 31, 2019, the average annualized dividend rate for the RVMTP Shares was 2.34%.

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.

During the year ended July 31, 2019, no RVMTP Shares were tendered for remarketing.

For the year ended July 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 any upfront fees paid by the VRDP Trust to the liquidity provider which, if any, 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:

 

 

 

58    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Notes to Financial Statements  (continued)

 

     Dividends Accrued     

Deferred

Offering Costs

Amortization

 

BFZ

  $ 4,403,269      $

BTT

    17,527,730        31,269  

BBF

    1,285,154        6,112  

BNY

    2,226,826         

 

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 Trusts 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 (distributions in excess of) 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 was as follows:

 

     Undistributed
(Distributions in Excess of)
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

  $ 0.0415      $ 0.0415         VMTP        W-7      $ 306,510  

BTT

    0.0624        0.0624         RVMTP        W-7        1,414,229  

BBF

    0.0540        0.0540         VRDP        W-7        109,176  

BNY

    0.0445        0.0445               VMTP        W-7        169,090  

 

  (a) 

Net investment income dividend paid on September 3, 2019 to Common Shareholders of record on August 15, 2019.

 
  (b) 

Net investment income dividend declared on September 3, 2019, payable to Common Shareholders of record on September 16, 2019.

 
  (c) 

Dividends declared for period August 1, 2019 to August 31, 2019.

 

On September 5, 2019, BFZ, BBF and BNY announced a continuation of their open market share repurchase program. Commencing on December 1, 2019, BFZ, BBF and BNY may repurchase through November 30, 2020, up to 5% of their common shares outstanding as of the close of business on November 30, 2019, subject to certain conditions. There is no assurance that the Funds will purchase shares in any particular amounts.

 

 

NOTES TO FINANCIAL STATEMENTS      59  


Report of Independent Registered Public Accounting Firm   

 

To the Shareholders and Board of Trustees of BlackRock California Municipal Income Trust, BlackRock Municipal 2030 Target Term Trust, BlackRock Municipal Income Investment Trust, and BlackRock New York Municipal Income Trust:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock California Municipal Income Trust, BlackRock Municipal 2030 Target Term Trust, BlackRock Municipal Income Investment Trust, and BlackRock New York Municipal Income Trust (the “Funds”), including the schedules of investments, as of July 31, 2019, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of July 31, 2019, and the results of their operations and their cash flows for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Boston, Massachusetts

September 23, 2019

We have served as the auditor of one or more BlackRock investment companies since 1992.

 

 

60    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Disclosure of Investment Advisory Agreements  

 

The Boards of Trustees (collectively, the “Board,” the members of which are referred to as “Board Members”) of BlackRock California Municipal Income Trust (“BFZ”), BlackRock Municipal 2030 Target Term Trust (“BTT”), BlackRock Municipal Income Investment Trust (“BBF”) and BlackRock New York Municipal Income Trust (“BNY” and together with BFZ, BTT and BBF, the “Funds” and each, a “Fund”) met in person on May 1, 2019 (the “May Meeting”) and June 5-6, 2019 (the “June Meeting”) to consider the approval of the investment advisory agreements (collectively, the “Advisory Agreements” or the “Agreements”) between each Fund and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), each Fund’s investment advisor.

Activities and Composition of the Board

On the date of the June Meeting, the Board consisted of eleven individuals, nine of whom were not “interested persons” of each Fund as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of each Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Co-Chairs of the Board are Independent Board Members. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member).

The Agreements

Consistent with the requirements of the 1940 Act, the Board considers the continuation of the Agreements on an annual basis. The Board has four quarterly meetings per year, each typically extending for two days, and additional in-person and telephonic meetings throughout the year, as needed. While the Board also has a fifth one-day meeting to consider specific information surrounding the renewal of the Agreements, the Board’s consideration entails a year-long deliberative process whereby the Board and its committees assess BlackRock’s services to each Fund. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management; accounting, administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of management.

During the year, the Board, acting directly and through its committees, considers information that is relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to each Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. This additional information is discussed further below in the section titled “Board Considerations in Approving the Agreements.” Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year, ten-year, and/or since inception periods, as applicable, against peer funds, applicable benchmarks, and performance metrics, as applicable, as well as senior management’s and portfolio managers’ analyses of the reasons for any over-performance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) leverage management, as applicable; (c) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by each Fund for services; (d) Fund operating expenses and how BlackRock allocates expenses to each Fund; (e) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of each Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (f) BlackRock and each Fund’s adherence to applicable compliance policies and procedures; (g) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services; (h) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (i) BlackRock’s implementation of the proxy voting policies approved by the Board; (j) execution quality of portfolio transactions; (k) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; (l) an analysis of management fees for products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to each Fund; (m) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; (n) periodic updates on BlackRock’s business; and (o) each Fund’s market discount/premium compared to peer funds.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the May Meeting, the Board requested and received materials specifically relating to the Agreements. The Independent Board Members are continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to better assist its deliberations. The materials provided in connection with the May Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on Lipper classifications, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”), the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”) and other metrics, as applicable; (b) information on the composition of the Expense Peers and Performance Peers, and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, closed-end funds, and open-end funds, under similar investment mandates, as applicable; (e) review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with each Fund; (g) a summary of aggregate amounts paid by each Fund to BlackRock; and (h) various additional information requested by the Board as appropriate regarding BlackRock’s and each Fund’s operations.

At the May Meeting, the Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the May Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the June Meeting. Topics covered included: (a) the methodology for measuring estimated fund profitability; (b) fund expenses and potential fee waivers; (c) differences in services provided and management fees between closed-end funds and other product channels; and (d) BlackRock’s option overwrite strategy.

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENTS      61  


Disclosure of Investment Advisory Agreements  (continued)

 

At the June Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared with Performance Peers and other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with each Fund; (d) each Fund’s fees and expenses compared to Expense Peers; (e) the sharing of potential economies of scale; (f) fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with each Fund; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of each Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of closed-end funds, relevant benchmarks, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by each Fund’s portfolio management team discussing each Fund’s performance and each Fund’s investment objective, strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and each Fund’s portfolio management team; BlackRock’s research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide each Fund with certain administrative, shareholder and other services (in addition to any such services provided to each Fund by third parties) and officers and other personnel as are necessary for the operations of each Fund. In particular, BlackRock and its affiliates provide each Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of each Fund; (iii) oversight of daily accounting and pricing; (iv) responsibility for periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers including, among others, each Fund’s custodian, fund accountant, transfer agent, and auditor; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; (viii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain closed-end funds; and (ix) performing or managing administrative functions necessary for the operation of each Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal & compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of each Fund and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the May Meeting, the Board was provided with reports independently prepared by Broadridge, which included a comprehensive analysis of each Fund’s performance as of December 31, 2018. The performance information is based on net asset value (NAV), and utilizes Lipper data. Lipper’s methodology calculates a fund’s total return assuming distributions are reinvested on the ex-date at a fund’s ex-date NAV. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers and, with respect to BFZ, BBF and BNY, a custom peer group of funds as defined by BlackRock (“Customized Peer Group”) and a composite measuring a blend of total return and yield (“Composite”), and, with respect to BTT, the performance of BTT as compared with its custom benchmark. The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of each Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and the Performance Peer funds (for example, the investment objective(s) and investment strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to affect long-term performance disproportionately.

The Board noted that for the one-, three- and five-year periods reported, BFZ ranked in the third, third and second quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for BFZ, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed BFZ’s underperformance during the applicable periods.

The Board noted that for the one-, three- and five-year periods reported, BTT underperformed, underperformed, and outperformed, respectively, its customized benchmark. The Board noted that BlackRock believes that performance relative to the customized benchmark is an appropriate performance metric for BTT, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed BTT’s underperformance during the applicable periods.

 

 

62    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Disclosure of Investment Advisory Agreements  (continued)

 

The Board noted that for the one-, three- and five-year periods reported, BBF ranked in the first, second, and third quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for BBF, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed BBF’s underperformance during the applicable periods.

The Board noted that for the one-, three- and five-year periods reported, BNY ranked in the fourth, third, and first quartiles, respectively, against its Customized Peer Group Composite. The Board noted that BlackRock believes that the Customized Peer Group Composite is an appropriate performance metric for BNY, and that BlackRock has explained its rationale for this belief to the Board. The Board and BlackRock reviewed BNY’s underperformance during the applicable periods.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with each Fund: The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate as a percentage of total assets, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, excluding any investment related expenses. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31, 2018 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is difficult.

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly-traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

In addition, the Board considered the estimated cost of the services provided to each Fund by BlackRock, and BlackRock’s and its affiliates’ estimated profits relating to the management of each Fund and the other funds advised by BlackRock and its affiliates. As part of its analysis, the Board reviewed BlackRock’s methodology in allocating its costs of managing the Funds, to each Fund. The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing each Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, closed-end fund, sub-advised mutual fund, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that BFZ’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile, relative to the Expense Peers.

The Board noted that BTT’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the Expense Peers.

The Board noted that BBF’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the second and third quartiles, respectively, relative to the Expense Peers.

The Board noted that BNY’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile, relative to the Expense Peers.

D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Fund increase. The Board also considered the extent to which each Fund benefits from such economies in a variety of ways, and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable each Fund to more fully participate in these economies of scale. The Board considered each Fund’s asset levels and whether the current fee was appropriate.

Based on the Board’s review and consideration of the issue, the Board concluded that most closed-end funds do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering. They are typically priced at scale at a fund’s inception.

E. Other Factors Deemed Relevant by the Board Members: The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with each Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to each Fund, including for administrative, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

 

 

DISCLOSURE OF INVESTMENT ADVISORY AGREEMENTS      63  


Disclosure of Investment Advisory Agreements  (continued)

 

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their Fund shares in the secondary market if they believe that each Fund’s fees and expenses are too high or if they are dissatisfied with the performance of each Fund.

The Board also considered the various notable initiatives and projects BlackRock performed in connection with its closed-end fund product line. These initiatives included developing equity shelf programs; efforts to eliminate product overlap with fund mergers; ongoing services to manage leverage that has become increasingly complex; periodic evaluation of share repurchases and other support initiatives for certain BlackRock funds; and continued communications efforts with shareholders, fund analysts and financial advisers. With respect to the latter, the Independent Board Members noted BlackRock’s continued commitment to supporting the secondary market for the common shares of its closed-end funds through a comprehensive secondary market communication program designed to raise investor and analyst awareness and understanding of closed-end funds. BlackRock’s support services included, among other things: sponsoring and participating in conferences; communicating with closed-end fund analysts covering the BlackRock funds throughout the year; providing marketing and product updates for the closed-end funds; and maintaining and enhancing its closed-end fund website.

Conclusion

The Board, including the Independent Board Members, approved the continuation of the Advisory Agreements between the Manager and each Fund for a one-year term ending June 30, 2020. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

 

 

64    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Automatic Dividend Reinvestment Plans

 

Pursuant to each Trust’s Dividend Reinvestment Plan (the “Reinvestment Plan”), Common Shareholders are automatically enrolled to have all distributions of dividends and capital gains and other distributions reinvested by Computershare Trust Company, N.A. (the “Reinvestment Plan Agent”) in the respective Trust’s Common Shares pursuant to the Reinvestment Plan. Shareholders who do not participate in the Reinvestment Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street name or other nominee name, then to the nominee) by the Reinvestment Plan Agent, which serves as agent for the shareholders in administering the Reinvestment Plan.

After BFZ, BBF, and BNY declare a dividend or determine to make a capital gain or other distribution, the Reinvestment Plan Agent will acquire shares for the participants’ accounts, depending upon the following circumstances, either (i) through receipt of unissued but authorized shares from the Trusts (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market or on the Trust’s primary exchange (“open-market purchases”). If, on the dividend payment date, the net asset value per share (“NAV”) is equal to or less than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market premium”), the Reinvestment Plan Agent will invest the dividend amount in newly issued shares acquired on behalf of the participants. The number of newly issued shares to be credited to each participant’s account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the dividend payment date, the dollar amount of the dividend will be divided by 95% of the market price on the dividend payment date. If, on the dividend payment date, the NAV is greater than the market price per share plus estimated brokerage commissions (such condition often referred to as a “market discount”), the Reinvestment Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases. If the Reinvestment Plan Agent is unable to invest the full dividend amount in open-market purchases, or if the market discount shifts to a market premium during the purchase period, the Reinvestment Plan Agent will invest any un-invested portion in newly issued shares. Investments in newly issued shares made in this manner would be made pursuant to the same process described above and the date of issue for such newly issued shares will substitute for the dividend payment date.

After BTT declares a dividend or determines to make a capital gain distribution or other distribution, the Reinvestment Plan Agent will acquire shares for the participants’ accounts by the purchase of outstanding shares on the open market or on BTT’s primary exchange (“open-market purchases”). BTT will not issue any new shares under the Reinvestment Plan.

You may elect not to participate in the Reinvestment Plan and to receive all dividends in cash by contacting the Reinvestment Plan Agent, at the address set forth below.

Participation in the Reinvestment Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Reinvestment Plan Agent prior to the dividend record date. Additionally, the Reinvestment Plan Agent seeks to process notices received after the record date but prior to the payable date and such notices often will become effective by the payable date. Where late notices are not processed by the applicable payable date, such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Reinvestment Plan Agent’s fees for the handling of the reinvestment of distributions will be paid by each Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Reinvestment Plan Agent’s open-market purchases in connection with the reinvestment of all distributions. The automatic reinvestment of all distributions will not relieve participants of any U.S. federal, state or local income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Reinvestment Plan. There is no direct service charge to participants in the Reinvestment Plan; however, each Trust reserves the right to amend the Reinvestment Plan to include a service charge payable by the participants. Participants that request a sale of shares are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission fee. All correspondence concerning the Reinvestment Plan should be directed to Computershare Trust Company, N.A. through the internet at http://www.computershare.com/blackrock, or in writing to Computershare, P.O. Box 505000, Louisville, KY 40233, Telephone: (800) 699-1236. Overnight correspondence should be directed to the Reinvestment Plan Agent at Computershare, 462 South 4th Street, Suite 1600, Louisville, KY 40202.

 

 

AUTOMATIC DIVIDEND REINVESTMENT PLANS      65  


Trustee and Officer Information

 

Independent Trustees (a)
         
Name
Year of Birth
 (b)
   Position(s) Held
(Length of Service)
 (c)
   Principal Occupation(s) During Past Five Years    Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen
 (d)
   Public Company and Other
Investment Company
Directorships Held During
Past Five Years

Richard E. Cavanagh

1946

   Co-Chair of the Board and Trustee
(Since 2007)
   Director, The Guardian Life Insurance Company of America since 1998; Board Chair, Volunteers of America (a not-for-profit organization) from 2015 to 2018 (board member since 2009); Director, Arch Chemicals (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007 and Executive Dean from 1987 to 1995; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007.    87 RICs consisting of 111 Portfolios    None

Karen P. Robards

1950

   Co-Chair of the Board and Trustee
(Since 2007)
   Principal of Robards & Company, LLC (consulting and private investing) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Enable Injections, LLC (medical devices) since 2019; Investment Banker at Morgan Stanley from 1976 to 1987.    87 RICs consisting of 111 Portfolios    Greenhill & Co., Inc.; AtriCure, Inc. (medical devices) from 2000 until 2017

Michael J. Castellano

1946

   Trustee
(Since 2011)
   Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) from 2009 to June 2015 and since 2017; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012; Director, CircleBlack Inc. (financial technology company) since 2015.    87 RICs consisting of 111 Portfolios    None

Cynthia L. Egan

1955

   Trustee
(Since 2016)
   Advisor, U.S. Department of the Treasury from 2014 to 2015; President, Retirement Plan Services, for T. Rowe Price Group, Inc. from 2007 to 2012; executive positions within Fidelity Investments from 1989 to 2007.    87 RICs consisting of 111 Portfolios    Unum (insurance); The Hanover Insurance Group (insurance); Envestnet (investment platform) from 2013 until 2016

Frank J. Fabozzi (d)

1948

   Trustee
(Since 2007)
   Editor of The Journal of Portfolio Management since 1986; Professor of Finance, EDHEC Business School (France) since 2011; Visiting Professor, Princeton University for the 2013 to 2014 academic year and Spring 2017 semester; Professor in the Practice of Finance, Yale University School of Management from 1994 to 2011 and currently a Teaching Fellow in Yale’s Executive Programs; Board Member, BlackRock Equity-Liquidity Funds from 2014 to 2016; affiliated professor Karlsruhe Institute of Technology from 2008 to 2011.    88 RICs consisting of 112 Portfolios    None

Henry Gabbay

1947

   Trustee
(Since 2019)
   Board Member, BlackRock Equity-Bond Board from 2007 to 2018; Board Member, BlackRock Equity-Liquidity and BlackRock Closed-End Fund Boards from 2007 through 2014; Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Allocation Target Shares (formerly, BlackRock Bond Allocation Target Shares) from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.    87 RICs consisting of 111 Portfolios    None

 

 

66    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Trustee and Officer Information  (continued)

 

Independent Trustees (a) (continued)
         
Name
Year of Birth
 (b)
   Position(s) Held
(Length of Service)
 (c)
   Principal Occupation(s) During Past Five Years    Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen
 (d)
   Public Company and Other
Investment Company
Directorships Held During
Past Five Years

R. Glenn Hubbard

1958

   Trustee
(Since 2007)
   Dean, Columbia Business School from 2004 to 2019; Faculty member, Columbia Business School since 1988.    87 RICs consisting of 111 Portfolios    ADP (data and information services); Metropolitan Life Insurance Company (insurance); KKR Financial Corporation (finance) from 2004 until 2014

W. Carl Kester (d)

1951

   Trustee
(Since 2007)
   George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981.    88 RICs consisting of 112 Portfolios    None

Catherine A. Lynch (d)

1961

   Trustee
(Since 2016)
   Chief Executive Officer, Chief Investment Officer and various other positions, National Railroad Retirement Investment Trust from 2003 to 2016; Associate Vice President for Treasury Management, The George Washington University from 1999 to 2003; Assistant Treasurer, Episcopal Church of America from 1995 to 1999.    88 RICs consisting of 112 Portfolios    None
Interested Trustees (a)(e)
         
Name
Year of Birth
 (b)
   Position(s) Held
(Length of Service)
 (c)
   Principal Occupation(s) During Past Five Years    Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen
 (d)
   Public Company and Other
Investment Company
Directorships Held During
Past Five Years

Robert Fairbairn

1965

   Trustee
(Since 2018)
   Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016.    125 RICs consisting of 293 Portfolios    None

John M. Perlowski (d)

1964

   Trustee
(Since 2015);
President and Chief Executive Officer
(Since 2010)
   Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.    126 RICs consisting of 294 Portfolios    None

(a) The address of each Trustee is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

(b) Each Independent Trustee holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Trustees who are “interested persons,” as defined in the Investment Company Act serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate.

(c) Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Certain Independent Trustees first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998. Mr. Gabbay became a member of the boards of the open-end funds in the Fixed-Income Complex in 2007.

(d) Dr. Fabozzi, Dr. Kester, Ms. Lynch and Mr. Perlowski are also trustees of the BlackRock Credit Strategies Fund.

(e) Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Trust based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex.

 

 

TRUSTEE AND OFFICER INFORMATION      67  


Trustee and Officer Information  (continued)

 

Officers Who Are Not Trustees (a)
     
Name
Year of Birth
 (b)
   Position(s) Held
(Length of Service)
   Principal Occupation(s) During Past Five Years

Jonathan Diorio

1980

   Vice President
(Since 2015)
   Managing Director of BlackRock, Inc. since 2015; Director of BlackRock, Inc. from 2011 to 2015.

Neal J. Andrews

1966

   Chief Financial Officer
(Since 2007)
   Chief Financial Officer of the iShares® exchange traded funds since 2019; Managing Director of BlackRock, Inc. since 2006.

Jay M. Fife

1970

   Treasurer
(Since 2007)
   Managing Director of BlackRock, Inc. since 2007.

Charles Park

1967

   Chief Compliance Officer
(Since 2014)
   Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.

Janey Ahn

1975

   Secretary
(Since 2012)
   Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.

(a) The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

(b) Officers of the Trust serve at the pleasure of the Board.

 

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

Bank of America, N.A.

New York, NY 10036

VRDP Remarketing Agent

Merrill Lynch, Pierce, Fenner & Smith Incorporated

New York, NY 10036

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

 

 

 

68    2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Additional Information

 

Proxy Results

The Annual Meeting of Shareholders was held on July 29, 2019 for shareholders of record on May 30, 2019, to elect trustee nominees for each Trust. There were no broker non-votes with regard to any of the Trusts.

Approved the Class III Trustees as follows:

 

  

 

  Richard E. Cavanagh     Cynthia L. Egan     Robert Fairbairn     Henry Gabbay  
     Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld     Votes For     Votes Withheld  

BFZ

    25,747,590       4,313,570       25,766,953       4,294,207       25,767,228       4,293,932       25,764,715       4,296,445  

BBF

    9,698,667       208,522       9,734,213       172,976       9,724,362       182,827       9,708,057       199,132  

BTT

    63,215,185       2,413,200       63,508,787       2,119,598       63,528,174       2,100,211       63,508,483       2,119,902  

BNY

    10,404,072       1,295,095       10,462,662       1,236,505       10,457,261       1,241,906       10,456,939       1,242,228  

For the Trusts listed above, Trustees whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are Michael J. Castellano, R. Glenn Hubbard, Catherine A. Lynch, John M. Perlowski, Karen P. Robards, Frank J. Fabozzi and W. Carl Kester.

Section 19(a) Notices

The amounts and sources of distributions reported in this notice are for financial reporting purposes and are not being provided for tax reporting purposes. The actual amounts and character of the distributions for tax reporting purposes will be reported to shareholders on Form 1099-DIV which is sent to shareholders shortly after calendar year end.

July 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
 

BFZ

  $ 0.545096     $ 0.000624     $ 0.162818     $     $ 0.708538       77         23         100

BBF*

    0.702000                         0.702000       100                         100  

 

  *

The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Fund is returned to the shareholder. A return of capital does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.” When distributions exceed total return performance, the difference will reduce the Fund’s net asset value per share.

 

Section 19(a) notices for the Funds, 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 as accumulated earnings (loss) 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. 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.

 

 

ADDITIONAL INFORMATION      69  


Additional Information  (continued)

 

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.

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 as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Trusts’ Forms N-PORT and N-Q are available on the SEC’s website at http://www.sec.gov. The Trusts’ Forms N-PORT and 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.

 

 

70    2019 BLACKROCK 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      71  


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-BK6-7/19-AR    LOGO


Item 2 –

Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-882-0052, option 4.

 

Item 3 –

Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Michael Castellano

Frank J. Fabozzi

Henry Gabbay

Catherine A. Lynch

Karen P. Robards

The registrant’s board of directors has determined that Karen P. Robards qualifies as an audit committee financial expert pursuant to Item 3(c)(4) of Form N-CSR.

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization. Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

 

Item 4 –

Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

 

         
      (a) Audit Fees    (b) Audit-Related  Fees1    (c) Tax Fees2    (d) All Other Fees
Entity Name    Current    
Fiscal Year    
End    
   Previous    
Fiscal Year    
End    
   Current    
Fiscal Year    
End    
   Previous    
Fiscal Year    
End    
   Current    
Fiscal Year    
End    
   Previous    
Fiscal Year    
End    
   Current    
Fiscal Year    
End    
   Previous    
Fiscal Year    
End     

 

2


BlackRock New York Municipal Income Trust    $31,416      $31,416      $0      $0      $12,100      $12,100      $0      $0  

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

 

      Current Fiscal Year End    Previous Fiscal Year End

(b) Audit-Related Fees1

   $0    $0

(c) Tax Fees2

   $0    $0

(d) All Other Fees3

   $2,050,500    $2,274,000

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3 Non-audit fees of $2,050,500 and $2,274,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved

 

3


cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g) The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

 

     Entity Name   

Current Fiscal Year     

End

  

Previous Fiscal Year    

End

    
  

BlackRock New York

Municipal Income Trust

   $12,100    $12,100   

Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored or advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

 

Current Fiscal

Year End

  

Previous Fiscal

Year End

$2,050,500

   $2,274,000

These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

 

Item 5 –

Audit Committee of Listed Registrants

 

  (a)

The following individuals are members of the registrant’s separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)):

Michael Castellano

Frank J. Fabozzi

Henry Gabbay

Catherine A. Lynch

Karen P. Robards

 

  (b)

Not Applicable

 

4


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 – The board of directors has delegated the voting of proxies for the Fund’s portfolio securities to the Investment Adviser pursuant to the Investment Adviser’s proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Fund’s stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Adviser’s Equity Investment Policy Oversight Committee, or a sub-committee thereof (the “Oversight Committee”) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Adviser’s clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Adviser’s Portfolio Management Group and/or the Investment Adviser’s Legal and Compliance Department and concluding that the vote cast is in its client’s best interest notwithstanding the conflict. A copy of the Fund’s Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SEC’s website at http://www.sec.gov.

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies

(a)(1) As of the date of filing this Report:

The registrant is managed by a team of investment professionals comprised of Walter O’Connor, CFA, Managing Director at BlackRock and Michael Perilli, Vice President at BlackRock. Each is a member of BlackRock’s municipal tax-exempt management group. Each is jointly responsible for the day-to-day management of the registrant’s portfolio, which includes setting the registrant’s overall investment strategy, overseeing the management of the registrant and/or selection of its investments. Messrs. O’Connor and Perilli have been members of the registrant’s portfolio management team since 2006 and 2018, respectively.

 

   

 

Portfolio Manager

 

  

 

Biography

 

  Walter O’Connor, CFA    Managing Director of BlackRock since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.
  Michael Perilli    Vice President of BlackRock since 2014; Associate of BlackRock from 2008 to 2014.

 

5


(a)(2) As of July 31, 2019:

 

     

(ii) Number of Other Accounts Managed

and Assets by Account Type

  

(iii) Number of Other Accounts and

Assets for Which Advisory Fee is

Performance-Based

(i) Name of

Portfolio Manager

  

Other    

Registered    

Investment    

Companies    

  

Other Pooled    

Investment    

Vehicles    

  

Other    

Accounts    

  

Other    

Registered    

Investment    

Companies    

  

Other Pooled    

Investment    

Vehicles    

  

Other    

Accounts    

Walter O’Connor, CFA

   29        0        0        0        0        0    
     $26.94 Billion        $0        $0        $0        $0        $0    

Michael Perilli

   20        0        0        0        0        0    
     $5.25 Billion        $0        $0        $0        $0        $0    

 

  (iv)

Portfolio Manager Potential Material Conflicts of Interest

BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, Inc., its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, Inc., or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRock, Inc.’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock, Inc. or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund.    It should also be noted that a portfolio manager may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts, subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. Currently, the portfolio managers of this Fund are not entitled to receive a portion of incentive fees of other accounts.

As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must

 

6


be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock, Inc. has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.

(a)(3) As of July 31, 2019:

Portfolio Manager Compensation Overview

The discussion below describes the portfolio managers’ compensation as of July 31, 2019.

BlackRock’s financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.

Base Compensation. Generally, portfolio managers receive base compensation based on their position with the firm.

Discretionary Incentive Compensation. Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio manager’s group within BlackRock, the investment performance, including risk-adjusted returns, of the firm’s assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individual’s performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Funds or other accounts managed by the portfolio managers are measured. Among other things, BlackRock’s Chief Investment Officers make a subjective determination with respect to each portfolio manager’s compensation based on the performance of the Funds and other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are: a combination of market-based indices (e.g., Standard & Poor’s Municipal Bond Index), certain customized indices and certain fund industry peer groups.

Distribution of Discretionary Incentive Compensation. Discretionary incentive compensation is distributed to portfolio managers in a combination of cash, deferred BlackRock, Inc. stock awards, and/or deferred cash awards that notionally track the return of certain BlackRock investment products.

Portfolio managers receive their annual discretionary incentive compensation in the form of cash. Portfolio managers whose total compensation is above a specified threshold also receive deferred BlackRock, Inc. stock awards annually as part of their discretionary incentive compensation. Paying a portion of discretionary incentive

 

7


compensation in the form of deferred BlackRock, Inc. stock puts compensation earned by a portfolio manager for a given year “at risk” based on BlackRock’s ability to sustain and improve its performance over future periods. In some cases, additional deferred BlackRock, Inc. stock may be granted to certain key employees as part of a long-term incentive award to aid in retention, align interests with long-term shareholders and motivate performance. Deferred BlackRock, Inc. stock awards are generally granted in the form of BlackRock, Inc. restricted stock units that vest pursuant to the terms of the applicable plan and, once vested, settle in BlackRock, Inc. common stock. The portfolio managers of this Fund have deferred BlackRock, Inc. stock awards.

For certain portfolio managers, a portion of the discretionary incentive compensation is also distributed in the form of deferred cash awards that notionally track the returns of select BlackRock investment products they manage, which provides direct alignment of portfolio manager discretionary incentive compensation with investment product results. Deferred cash awards vest ratably over a number of years and, once vested, settle in the form of cash. Only portfolio managers who manage specified products and whose total compensation is above a specified threshold are eligible to participate in the deferred cash award program.

Other Compensation Benefits. In addition to base salary and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following:

Incentive Savings Plans — BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock, Inc. employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation up to the Internal Revenue Service limit ($280,000 for 2019). The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock, Inc. contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into a target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the purchase date. All of the eligible portfolio managers are eligible to participate in these plans.

(a)(4) Beneficial Ownership of Securities – As of July 31, 2019.

 

Portfolio Manager   

Dollar Range of Equity Securities

of the Fund Beneficially Owned

Walter O’Connor, CFA

 

   None

Michael Perilli

 

   None

 

8


(b) Not Applicable

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable due to no such purchases during the period covered by this report.

 

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 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

(a)(1) – Code of Ethics – See Item 2

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(a)(4) – Not Applicable

(b) – Certifications – Attached hereto

 

 

9


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 New York Municipal Income Trust

 

           By:      

/s/ John M. Perlowski

    John M. Perlowski

         Chief Executive Officer (principal executive officer) of

         BlackRock New York Municipal Income Trust

          Date: October 4, 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 New York Municipal Income Trust

          Date: October 4, 2019

 

           By:      

/s/ Neal J. Andrews

    Neal J. Andrews

         Chief Financial Officer (principal financial officer) of

         BlackRock New York Municipal Income Trust

          Date: October 4, 2019

 

10

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

 

I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock New York Municipal Income Trust, certify that:

1.        I have reviewed this report on Form N-CSR of BlackRock New York Municipal Income Trust;

2.        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.        Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.        The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)        designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)        designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)        evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)        disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.        The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)        all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)        any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 4, 2019

/s/ John M. Perlowski          
John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock New York Municipal Income Trust


EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

 

I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock New York Municipal Income Trust, certify that:

1.        I have reviewed this report on Form N-CSR of BlackRock New York Municipal Income Trust;

2.        Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.        Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4.        The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a)        designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)        designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)        evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d)        disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.        The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)        all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b)        any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: October 4, 2019

/s/ Neal J. Andrews          
Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock New York Municipal Income Trust

 

Exhibit 99.906CERT

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and

Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock New York Municipal Income Trust (the “Registrant”), hereby certifies, to the best of his knowledge, that the Registrant’s Report on Form N-CSR for the period ended July 31, 2019 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: October 4, 2019

/s/ John M. Perlowski          
John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock New York Municipal Income Trust

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock New York Municipal Income Trust (the “Registrant”), hereby certifies, to the best of his knowledge, that the Registrant’s Report on Form N-CSR for the period ended July 31, 2019 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: October 4, 2019

/s/ Neal J. Andrews          
Neal J. Andrews

Chief Financial Officer (principal financial officer) of

BlackRock New York Municipal Income Trust

This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission.

Closed-End Fund Proxy Voting Policy

September 5, 2019

 

LOGO

  Closed-End Fund Proxy Voting Policy

 

  Procedures Governing Delegation of Proxy Voting to Fund Adviser

  Effective Date: September 5, 2019

  Applies to the following types of Funds registered under the 1940 Act:

   Open-End Mutual Funds (including money market funds)

   Money Market Funds Only

   iShares ETFs

   Closed-End Funds

   Other

 

 

The Boards of Trustees/Directors (the “Directors”) of the closed-end funds advised by BlackRock Advisors, LLC (“BlackRock”) (the “Funds”) have the responsibility for the oversight of voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of the Funds and their shareholders to delegate that responsibility to BlackRock as part of BlackRock’s authority to manage, acquire and dispose of account assets, all as contemplated by the Funds’ respective investment management agreements.

BlackRock has adopted guidelines and procedures (together and as from time to time amended, the “BlackRock Proxy Voting Guidelines”) governing proxy voting by accounts managed by BlackRock. BlackRock will cast votes on behalf of each of the Funds on specific proxy issues in respect of securities held by each such Fund in accordance with the BlackRock Proxy Voting Guidelines; provided, however, that in the case of underlying closed-end funds (including business development companies and other similarly-situated asset pools) held by the Funds that have, or are proposing to adopt, a classified board structure, BlackRock will typically (a) vote in favor of proposals to adopt classification and against proposals to eliminate classification, and (b) not vote against directors as a result of their adoption of a classified board structure.

BlackRock will report on an annual basis to the Directors on (1) a summary of all proxy votes that BlackRock has made on behalf of the Funds in the preceding year together with a representation that all votes were in accordance with the BlackRock Proxy Voting Guidelines (as modified pursuant to the immediately preceding paragraph), and (2) any changes to the BlackRock Proxy Voting Guidelines that have not previously been reported.

 

 

 

   Public    Page 1 of 1
LOGO      

LOGO

BlackRock Investment Stewardship

Global Corporate Governance Guidelines &

Engagement Principles

January 2019

 

LOGO


LOGO

 

Contents

  

Introduction to BlackRock

     2  

Philosophy on corporate governance

     2  

Corporate governance, engagement and voting

     3  

Boards and directors

     4  

Auditors and audit-related issues

     5  

Capital structure, mergers, asset sales and other special transactions

     6  

Compensation and benefits

     6  

Environmental and social issues

     7  

General corporate governance matters and Shareholder protections

     8  

BlackRock’s oversight of our investment stewardship activities

     9  

Oversight

     9  

Vote execution

     9  

Conflicts management policies and procedures

     10  

Voting guidelines

     12  

Reporting and vote transparency

     12  

 

 

 

Global Corporate Governance & Engagement Principles | 1


LOGO

 

Introduction to BlackRock

BlackRock helps investors build better financial futures. As a fiduciary to our clients, we provide the investment and technology solutions they need when planning for their most important goals. We manage assets on behalf of institutional and individual clients, across a full spectrum of investment strategies, asset classes and regions. Our client base includes pension plans, endowments, foundations, charities, official institutions, insurers and other financial institutions, as well as individuals around the world.

Philosophy on corporate governance

BlackRock’s Investment Stewardship activities are focused on protecting and enhancing the economic value of the companies in which we invest on behalf of clients. We do this through engagement with boards and management of investee companies and, for those clients who have given us authority, through voting at shareholder meetings.

We believe that there are certain fundamental rights attached to shareholding. Companies and their boards should be accountable to shareholders and structured with appropriate checks and balances to ensure that they operate in shareholders’ best interests. Effective voting rights are central to the rights of ownership and there should be one vote for one share. Shareholders should have the right to elect, remove and nominate directors, approve the appointment of the auditor and to amend the corporate charter or by-laws. Shareholders should be able to vote on matters that are material to the protection of their investment including but not limited to changes to the purpose of the business, dilution levels and pre-emptive rights, and the distribution of income and capital structure. In order to make informed decisions, we believe that shareholders have the right to sufficient and timely information.

Our primary focus is on the performance of the board of directors. As the agent of shareholders, the board should set the company’s strategic aims within a framework of prudent and effective controls, which enables risk to be assessed and managed. The board should provide direction and leadership to management and oversee management’s performance. Our starting position is to be supportive of boards in their oversight efforts on shareholders’ behalf and we would generally expect to support the items of business they put to a vote at shareholder meetings. Votes cast against or withheld from resolutions proposed by the board are a signal that we are concerned that the directors or management have either not acted in the best interests of shareholders or have not responded adequately to shareholder concerns. We assess voting matters on a case-by-case basis and in light of each company’s unique circumstances taking into consideration regional best practices and long-term value creation.

These principles set out our approach to engaging with companies, provide guidance on our position on corporate governance and outline how our views might be reflected in our voting decisions. Corporate governance practices can vary internationally, so our expectations in relation to individual companies are based on the legal and regulatory framework of each local market. However, we believe there are overarching principles of corporate governance that apply globally and provide a framework for more detailed, market-specific assessments.

We believe BlackRock has a responsibility in relation to monitoring and providing feedback to companies, sometimes known as “stewardship.” These ownership responsibilities include engaging with management or board members on corporate governance matters, voting proxies in the best long-term economic interests of shareholders and engaging with regulatory bodies to ensure a sound policy framework consistent with promoting long-term shareholder value creation. We also believe in the responsibility to our clients to have appropriate resources and oversight structures. Our approach is set

 

 

Global Corporate Governance & Engagement Principles | 2


LOGO

 

out in the section below titled “BlackRock’s oversight of its investment stewardship activities” and is further detailed in a team profile on our website

Corporate governance, engagement and voting

We recognize that accepted standards of corporate governance differ between markets, but we believe there are sufficient common threads globally to identify an overarching set of principles. The objective of our investment stewardship activities is the protection and enhancement of the value of our clients’ investments in public corporations. Thus, these principles focus on practices and structures that we consider to be supportive of long-term value creation. We discuss below the principles under six key themes. In our regional and market-specific voting guidelines we explain how these principles inform our voting decisions in relation to specific resolutions that may appear on the agenda of a shareholder meeting in the relevant market.

The six key themes are:

 

Boards and directors

 

Auditors and audit-related issues

 

Capital structure, mergers, asset sales and other special transactions

 

Compensation and benefits

 

Environmental and social issues

 

General corporate governance matters and shareholder protections

At a minimum, we expect companies to observe the accepted corporate governance standards in their domestic market or to explain why doing so is not in the interests of shareholders. Where company reporting and disclosure is inadequate or the approach taken is inconsistent with our view of what is in the best interests of shareholders, we will engage with the company and/or use our vote to encourage a change in practice. In making voting decisions, we perform independent research and analysis, such as reviewing relevant information published by the company and apply our voting guidelines to achieve the outcome we believe best protects our clients’ long-term economic interests. We also work closely with our active portfolio managers, and may take into account internal and external research.

BlackRock views engagement as an important activity; engagement provides us with the opportunity to improve our understanding of investee companies and their governance structures to better inform our voting decisions. Engagement also allows us to share our philosophy and approach to investment and corporate governance with companies to enhance their understanding of our objectives. Our engagements often focus on providing our feedback on company disclosures, particularly where we believe they could be enhanced. There are a range of approaches we may take in engaging companies depending on the nature of the issue under consideration, the company and the market.

BlackRock takes an engagement-first approach, emphasizing direct dialogue with companies on governance issues that have a material impact on financial performance. We generally prefer to engage in the first instance where we have concerns and give management time to address or resolve the issue. As a long-term investor, we are patient and persistent in working with our portfolio companies to have an open dialogue and develop mutual understanding of governance matters, to promote the adoption of best practices and to assess the merits of a company’s approach to its governance. We monitor the companies in which we invest and engage with them constructively and privately where we believe doing

 

Global Corporate Governance & Engagement Principles | 3


LOGO

 

so helps protect shareholders’ interests. We do not try to micro-manage companies, or tell management and boards what to do. We present our views as a long-term shareholder and listen to companies’ responses. The materiality and immediacy of a given issue will generally determine the level of our engagement and whom we seek to engage at the company, which could be management representatives or board directors.

Boards and directors

The performance of the board is critical to the economic success of the company and to the protection of shareholders’ interests. Board members serve as agents of shareholders in overseeing the strategic direction and operation of the company. For this reason, BlackRock focuses on directors in many of our engagements and sees the election of directors as one of our most important responsibilities in the proxy voting context.

We expect the board of directors to promote and protect shareholder interests by:

 

establishing an appropriate corporate governance structure

 

supporting and overseeing management in setting long-term strategic goals, applicable measures of value-creation and milestones that will demonstrate progress, and steps taken if any obstacles are anticipated or incurred

 

ensuring the integrity of financial statements

 

making independent decisions regarding mergers, acquisitions and disposals

 

establishing appropriate executive compensation structures

 

addressing business issues, including environmental and social issues, when they have the potential to materially impact company reputation and performance

There should be clear definitions of the role of the board, the committees of the board and senior management such that the responsibilities of each are well understood and accepted. Companies should report publicly the approach taken to governance (including in relation to board structure) and why this approach is in the best interest of shareholders. We will seek to engage with the appropriate directors where we have concerns about the performance of the board or the company, the broad strategy of the company, or the performance of individual board members.

BlackRock believes that directors should stand for re-election on a regular basis. We assess directors nominated for election or re-election in the context of the composition of the board as a whole. There should be detailed disclosure of the relevant credentials of the individual directors in order for shareholders to assess the caliber of an individual nominee. We expect there to be a sufficient number of independent directors on the board to ensure the protection of the interests of all shareholders. Common impediments to independence may include but are not limited to:

 

current or former employment at the company or a subsidiary within the past several years

 

being, or representing, a shareholder with a substantial shareholding in the company

 

interlocking directorships

 

having any other interest, business or other relationship which could, or could reasonably be perceived to, materially interfere with the director’s ability to act in the best interests of the company

 

Global Corporate Governance & Engagement Principles | 4


LOGO

 

BlackRock believes that the operation of the board is enhanced when there is a clearly independent, senior non-executive director to chair it or, where the chairman is also the CEO (or is otherwise not independent), an independent lead director. The role of this director is to enhance the effectiveness of the independent members of the board through shaping the agenda, ensuring adequate information is provided to the board and encouraging independent participation in board deliberations. The lead independent board director should be available to shareholders in those situations where a director is best placed to explain and justify a company’s approach.

To ensure that the board remains effective, regular reviews of board performance should be carried out and assessments made of gaps in skills or experience amongst the members. BlackRock believes it is beneficial for new directors to be brought onto the board periodically to refresh the group’s thinking and to ensure both continuity and adequate succession planning. In identifying potential candidates, boards should take into consideration the multiple dimensions of diversity, including personal factors such as gender, ethnicity, and age; as well as professional characteristics, such as a director’s industry, area of expertise, and geographic location. The board should review these dimensions of the current directors and how they might be augmented by incoming directors. We believe that directors are in the best position to assess the optimal size for the board, but we would be concerned if a board seemed too small to have an appropriate balance of directors or too large to be effective.

There are matters for which the board has responsibility that may involve a conflict of interest for executives or for affiliated directors. BlackRock believes that shareholders’ interests are best served when the board forms committees of fully independent directors to deal with such matters. In many markets, these committees of the board specialize in audit, director nominations and compensation matters. An ad hoc committee might also be formed to decide on a special transaction, particularly one with a related party or to investigate a significant adverse event.

Auditors and audit-related issues

BlackRock recognizes the critical importance of financial statements, which should provide a true and fair picture of a company’s financial condition. We will hold the members of the audit committee or equivalent responsible for overseeing the management of the audit function. We take particular note of cases involving significant financial restatements or ad hoc notifications of material financial weakness.

The integrity of financial statements depends on the auditor being free of any impediments to being an effective check on management. To that end, we believe it is important that auditors are, and are seen to be, independent. Where the audit firm provides services to the company in addition to the audit, the fees earned should be disclosed and explained. Audit committees should have in place a procedure for assessing annually the independence of the auditor.

 

Global Corporate Governance & Engagement Principles | 5


LOGO

 

Capital structure, mergers, asset sales and other special transactions

The capital structure of a company is critical to its owners, the shareholders, as it impacts the value of their investment and the priority of their interest in the company relative to that of other equity or debt investors. Pre-emptive rights are a key protection for shareholders against the dilution of their interests.

Effective voting rights are central to the rights of ownership and we believe strongly in one vote for one share as a guiding principle that supports good corporate governance. Shareholders, as the residual claimants, have the strongest interest in protecting company value, and voting power should match economic exposure.

We are concerned that the creation of a dual share class may result in an over-concentration of power in the hands of a few shareholders, thus disenfranchising other shareholders and amplifying the potential conflict of interest, which the one share, one vote principle is designed to mitigate. However, we recognize that in certain circumstances, companies may have a valid argument for dual-class listings, at least for a limited period of time. We believe that such companies should review these dual-class structures on a regular basis or as company circumstances change. Additionally, they should receive shareholder approval of their capital structure on a periodic basis via a management proposal in the company’s proxy. The proposal should give unaffiliated shareholders the opportunity to affirm the current structure or establish mechanisms to end or phase out controlling structures at the appropriate time, while minimizing costs to shareholders.

In assessing mergers, asset sales or other special transactions, BlackRock’s primary consideration is the long-term economic interests of shareholders. Boards proposing a transaction need to clearly explain the economic and strategic rationale behind it. We will review a proposed transaction to determine the degree to which it enhances long-term shareholder value. We would prefer that proposed transactions have the unanimous support of the board and have been negotiated at arm’s length. We may seek reassurance from the board that executives’ and/or board members’ financial interests in a given transaction have not adversely affected their ability to place shareholders’ interests before their own. Where the transaction involves related parties, we would expect the recommendation to support it to come from the independent directors and it is good practice to be approved by a separate vote of the non-conflicted shareholders.

BlackRock believes that shareholders have a right to dispose of company shares in the open market without unnecessary restriction. In our view, corporate mechanisms designed to limit shareholders’ ability to sell their shares are contrary to basic property rights. Such mechanisms can serve to protect and entrench interests other than those of the shareholders. We believe that shareholders are broadly capable of making decisions in their own best interests. We expect any so-called ‘shareholder rights plans’ proposed by a board to be subject to shareholder approval upon introduction and periodically thereafter for continuation.

Compensation and benefits

BlackRock expects a company’s board of directors to put in place a compensation structure that incentivizes and rewards executives appropriately and is aligned with shareholder interests, particularly generating sustainable long-term shareholder returns. We would expect the compensation committee to take into account the specific circumstances of the company and the key individuals the board is trying to incentivize. We encourage companies to ensure that their compensation plans incorporate appropriate and challenging performance conditions consistent with corporate strategy and market practice. We use third party research, in addition to our own analysis, to evaluate existing and proposed compensation

 

Global Corporate Governance & Engagement Principles | 6


LOGO

 

structures. We hold members of the compensation committee or equivalent board members accountable for poor compensation practices or structures.

BlackRock believes that there should be a clear link between variable pay and company performance that drives shareholder returns. We are not supportive of one-off or special bonuses unrelated to company or individual performance. We acknowledge that the use of peer group evaluation by compensation committees can help ensure competitive pay; however we are concerned when increases in total compensation at a company are justified solely on peer benchmarking rather than outperformance. We support incentive plans that foster the sustainable achievement of results relative to competitors. The vesting timeframes associated with incentive plans should facilitate a focus on long-term value creation. We believe consideration should be given to building claw back provisions into incentive plans such that executives would be required to forgo rewards when they are not justified by actual performance.

Compensation committees should guard against contractual arrangements that would entitle executives to material compensation for early termination of their contract. Finally, pension contributions and other deferred compensation arrangements should be reasonable in light of market practice.

Non-executive directors should be compensated in a manner that is commensurate with the time and effort expended in fulfilling their professional responsibilities. Additionally, these compensation arrangements should not risk compromising their independence or aligning their interests too closely with those of the management, whom they are charged with overseeing.

Environmental and social issues

It is within this context of our fiduciary duty to clients that we undertake our investment stewardship activities. Sound practices in relation to the material environmental and social (“E&S”) factors inherent in the business model can be a signal of operational excellence and management quality.

BlackRock expects companies to identify and report on the material, business-specific E&S risks and opportunities and to explain how these are managed. This explanation should make clear how the approach taken by the company best serves the interests of shareholders and protects and enhances the long-term economic value of the company. E&S factors are material if they are core to how the business operates. The key performance indicators in relation to E&S factors should also be disclosed and performance against them discussed, along with any peer group benchmarking and verification processes in place. This helps shareholders assess how well management is dealing with the material E&S factors relevant to the business. Any generally recognized best practices and reporting standards adopted by the company should also be discussed in this context.

We do not see it as our role to make social or political judgments on behalf of clients. Our consideration of these E&S factors is consistent with protecting the long-term economic interest of our clients’ assets. We expect investee companies to comply, at a minimum, with the laws and regulations of the jurisdictions in which they operate. They should explain how they manage situations where local laws or regulations that significantly impact the company’s operations are contradictory or ambiguous to global norms.

Given that E&S factors are often not issues on which a shareholder votes, we will engage directly with the board or management. Engagement on a particular E&S factor is based on our assessment that there are potential material economic ramifications for shareholders over the long-term.

We may vote against the election of directors where we have concerns that a company might not be dealing with material E&S factors appropriately. Sometimes we may reflect such concerns by supporting a shareholder proposal on the issue, where there seems to be either a significant potential threat or

 

Global Corporate Governance & Engagement Principles | 7


LOGO

 

realized harm to shareholders’ interests caused by poor management of E&S factors. In deciding our course of action, we will assess whether the company has already taken sufficient steps to address the concern and whether there is a clear and material economic disadvantage to the company if the issue is not addressed.

General corporate governance matters and shareholder protections

BlackRock believes that shareholders have a right to timely and detailed information on the financial performance and viability of the companies in which they invest. In addition, companies should also publish information on the governance structures in place and the rights of shareholders to influence these. The reporting and disclosure provided by companies help shareholders assess whether their economic interests have been protected and the quality of the board’s oversight of management. We believe shareholders should have the right to vote on key corporate governance matters, including changes to governance mechanisms, to submit proposals to the shareholders’ meeting and to call special meetings of shareholders.

 

Global Corporate Governance & Engagement Principles | 8


LOGO

 

BlackRock’s oversight of its investment stewardship activities

Oversight

We hold ourselves to a very high standard in our investment stewardship activities, including proxy voting. This function is executed by a team called BlackRock Investment Stewardship (“BIS”) which is comprised of BlackRock employees who do not have other responsibilities other than their roles in BIS. BIS is considered an investment function. The team does not have sales responsibilities.

BlackRock maintains three regional advisory committees (“Stewardship Advisory Committees”) for (a) the Americas; (b) Europe, the Middle East and Africa (“EMEA”); and (c) Asia-Pacific, generally consisting of senior BlackRock investment professionals and/or senior employees with practical boardroom experience. The regional Stewardship Advisory Committees review and advise on amendments to the proxy voting guidelines covering markets within each respective region (“Guidelines”).

In addition to the regional Stewardship Advisory Committees, the Investment Stewardship Global Oversight Committee (“Global Committee”) is a risk-focused committee, comprised of senior representatives from various BlackRock investment teams, BlackRock’s Deputy General Counsel, the Global Head of Investment Stewardship (“Global Head”), and other senior executives with relevant experience and team oversight.

The Global Head has primary oversight of the activities of BIS, including voting in accordance with the Guidelines, which require the application of professional judgment and consideration of each company’s unique circumstances. The Global Committee reviews and approves amendments to these Global Corporate Governance & Engagement Principles. The Global Committee also reviews and approves amendments to the regional Guidelines, as proposed by the regional Stewardship Advisory Committees.

In addition, the Global Committee receives and reviews periodic reports regarding the votes cast by BIS, as well as regular updates on material process issues, procedural changes and other risk oversight considerations. The Global Committee reviews these reports in an oversight capacity as informed by the BIS corporate governance engagement program and Guidelines.

BIS carries out engagement with companies, monitors and executes proxy votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the relevant Guidelines. BIS also conducts research on corporate governance issues and participates in industry discussions to keep abreast of important developments in the corporate governance field. BIS may utilize third parties for certain of the foregoing activities and performs oversight of those third parties. BIS may raise complicated or particularly controversial matters for internal discussion with the relevant investment teams and/or refer such matters to the appropriate regional Stewardship Advisory Committees for review, discussion and guidance prior to making a voting decision.

Vote execution

We carefully consider proxies submitted to funds and other fiduciary account(s) (“Fund” or “Funds”) for which we have voting authority. BlackRock votes (or refrains from voting) proxies for each Fund for which we have voting authority based on our evaluation of the best long-term economic interests of shareholders, in the exercise of our independent business judgment, and without regard to the relationship of the issuer of the proxy (or any shareholder proponent or dissident shareholder) to the Fund, the Fund’s affiliates (if any), BlackRock or BlackRock’s affiliates, or BlackRock employees (see

“Conflicts management policies and procedures”, below).

 

Global Corporate Governance & Engagement Principles | 9


LOGO

 

When exercising voting rights, BlackRock will normally vote on specific proxy issues in accordance with the Guidelines for the relevant market. The Guidelines are reviewed regularly and are amended consistent with changes in the local market practice, as developments in corporate governance occur, or as otherwise deemed advisable by BlackRock’s Stewardship Advisory Committees. BIS may, in the exercise of their professional judgment, conclude that the Guidelines do not cover the specific matter upon which a proxy vote is required or that an exception to the Guidelines would be in the best long-term economic interests of BlackRock’s clients.

In the uncommon circumstance of there being a vote with respect to fixed income securities or the securities of privately held issuers, the decision generally will be made by a Fund’s portfolio managers and/or BIS based on their assessment of the particular transactions or other matters at issue.

In certain markets, proxy voting involves logistical issues which can affect BlackRock’s ability to vote such proxies, as well as the desirability of voting such proxies. These issues include but are not limited to: (i) untimely notice of shareholder meetings; (ii) restrictions on a foreigner’s ability to exercise votes; (iii) requirements to vote proxies in person; (iv) “share-blocking” (requirements that investors who exercise their voting rights surrender the right to dispose of their holdings for some specified period in proximity to the shareholder meeting); (v) potential difficulties in translating the proxy; (vi) regulatory constraints; and (vii) requirements to provide local agents with unrestricted powers of attorney to facilitate voting instructions. We are not supportive of impediments to the exercise of voting rights such as shareblocking or overly burdensome administrative requirements.

As a consequence, BlackRock votes proxies on a “best-efforts” basis. In addition, BIS may determine that it is generally in the best interests of BlackRock’s clients not to vote proxies if the costs (including but not limited to opportunity costs associated with shareblocking constraints) associated with exercising a vote are expected to outweigh the benefit the client would derive by voting on the proposal.

Portfolio managers have full discretion to vote the shares in the Funds they manage based on their analysis of the economic impact of a particular ballot item. Portfolio managers may from time to time reach differing views on how best to maximize economic value with respect to a particular investment. Therefore, portfolio managers may, and sometimes do, vote shares in the Funds under their management differently from one another. However, because BlackRock’s clients are mostly long-term investors with long-term economic goals, ballots are frequently cast in a uniform manner.

Conflicts management policies and procedures

BIS maintains the following policies and procedures that seek to prevent undue influence on BlackRock’s proxy voting activity. Such influence might stem from any relationship between the investee company (or any shareholder proponent or dissident shareholder) and BlackRock, BlackRock’s affiliates, a Fund or a Fund’s affiliates, or BlackRock employees. The following are examples of sources of perceived or potential conflicts of interest:

 

BlackRock clients who may be issuers of securities or proponents of shareholder resolutions

 

BlackRock business partners or third parties who may be issuers of securities or proponents of shareholder resolutions

 

BlackRock employees who may sit on the boards of public companies held in Funds managed by BlackRock

 

Global Corporate Governance & Engagement Principles | 10


LOGO

 

Significant BlackRock, Inc. investors who may be issuers of securities held in Funds managed by BlackRock

 

Securities of BlackRock, Inc. or BlackRock investment funds held in Funds managed by BlackRock

 

BlackRock, Inc. board members who serve as senior executives of public companies held in Funds managed by BlackRock

BlackRock has taken certain steps to mitigate perceived or potential conflicts including, but not limited to, the following:

 

Adopted the Guidelines which are designed to protect and enhance the economic value of the companies in which BlackRock invests on behalf of clients.

 

Established a reporting structure that separates BIS from employees with sales, vendor management or business partnership roles. In addition, BlackRock seeks to ensure that all engagements with corporate issuers, dissident shareholders or shareholder proponents are managed consistently and without regard to BlackRock’s relationship with such parties. Clients or business partners are not given special treatment or differentiated access to BIS. BIS prioritizes engagements based on factors including but not limited to our need for additional information to make a voting decision or our view on the likelihood that an engagement could lead to positive outcome(s) over time for the economic value of the company. Within the normal course of business, BIS may engage directly with BlackRock clients, business partners and/or third parties, and/or with employees with sales, vendor management or business partnership roles, in discussions regarding our approach to stewardship, general corporate governance matters, client reporting needs, and/or to otherwise ensure that proxy-related client service levels are met.

 

Determined to engage, in certain instances, an independent fiduciary to vote proxies as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance requirements, or as may be otherwise required by applicable law. In such circumstances, the independent fiduciary provides BlackRock’s proxy voting agent with instructions, in accordance with the Guidelines, as to how to vote such proxies, and BlackRock’s proxy voting agent votes the proxy in accordance with the independent fiduciary’s determination. BlackRock uses an independent fiduciary to vote proxies of (i) any company that is affiliated with BlackRock, Inc., (ii) any public company that includes BlackRock employees on its board of directors, (iii) The PNC Financial Services Group, Inc., (iv) any public company of which a BlackRock, Inc. board member serves as a senior executive, and (v) companies when legal or regulatory requirements compel BlackRock to use an independent fiduciary. In selecting an independent fiduciary, we assess several characteristics, including but not limited to: independence, an ability to analyze proxy issues and vote in the best economic interest of our clients, reputation for reliability and integrity, and operational capacity to accurately deliver the assigned votes in a timely manner. We may engage more than one independent fiduciary, in part in order to mitigate potential or perceived conflicts of interest at an independent fiduciary. The Global Committee appoints and reviews the performance of the independent fiduciar(ies), generally on an annual basis.

When so authorized, BlackRock acts as a securities lending agent on behalf of Funds. With regard to the relationship between securities lending and proxy voting, BlackRock’s approach is driven by our clients’ economic interests. The decision whether to recall securities on loan to vote is based on a formal analysis of the revenue producing value to clients of loans, against the assessed economic value of casting votes. Generally, we expect that the likely economic value to clients of casting votes would be less than the securities lending income, either because, in our assessment, the resolutions being voted on will not have significant economic consequences or because the outcome would not be affected by

 

Global Corporate Governance & Engagement Principles | 11


LOGO

 

BlackRock recalling loaned securities in order to vote. BlackRock also may, in our discretion, determine that the value of voting outweighs the cost of recalling shares, and thus recall shares to vote in that instance.

Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote and may modify it as necessary.

Voting guidelines

The issue-specific Guidelines published for each region/country in which we vote are intended to summarize BlackRock’s general philosophy and approach to issues that may commonly arise in the proxy voting context in each market where we invest. These Guidelines are not intended to be exhaustive. BIS applies the Guidelines on a case-by-case basis, in the context of the individual circumstances of each company and the specific issue under review. As such, these Guidelines do not indicate how BIS will vote in every instance. Rather, they share our view about corporate governance issues generally, and provide insight into how we typically approach issues that commonly arise on corporate ballots.

Reporting and vote transparency

We inform clients about our engagement and voting policies and activities through direct communication and through disclosure on our website. Each year we publish an annual report, an annual engagement and voting statistics report, and our full voting record to our website. On a quarterly basis, we publish regional reports which provide an overview of our investment stewardship engagement and voting activities during the quarter, including market developments, speaking engagements, and engagement and voting statistics. Additionally, we make public our market-specific voting guidelines for the benefit of clients and companies with whom we engage.

 

Global Corporate Governance & Engagement Principles | 12



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings