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 811-05611

Name of Fund: BlackRock MuniVest Fund, Inc. (MVF)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock MuniVest Fund, Inc., 40 East 52nd Street, New York, NY 10022.

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

Date of fiscal year end: 08/31/2009

Date of reporting period: 08/31/2009

 

 

Item 1 –

Report to Stockholders




EQUITIES   FIXED INCOME   REAL ESTATE   LIQUIDITY   ALTERNATIVES   BLACKROCK SOLUTIONS

 

 

Annual Report

AUGUST 31, 2009

(BLACKROCK LOGO)


 

BlackRock Insured Municipal Income Trust (BYM)

 

BlackRock Insured Municipal Income Investment Trust (BAF)

 

BlackRock Municipal Bond Trust (BBK)

 

BlackRock Municipal Bond Investment Trust (BIE)

 

BlackRock Municipal Income Trust II (BLE)

 

BlackRock MuniHoldings Insured Investment Fund (MFL)

 

BlackRock MuniVest Fund, Inc. (MVF)

NOT FDIC INSURED
MAY LOSE VALUE
NO BANK GUARANTEE


 


Table of Contents

 

 

 

 





 

 

Page





 

 

 

Dear Shareholder

 

3

Annual Report:

 

 

Trust Summaries

 

4

The Benefits and Risks of Leveraging

 

11

Derivative Financial Instruments

 

11

Financial Statements:

 

 

Schedules of Investments

 

12

Statements of Assets and Liabilities

 

40

Statements of Operations

 

41

Statements of Changes in Net Assets

 

42

Statements of Cash Flows

 

45

Financial Highlights

 

46

Notes to Financial Statements

 

50

Report of Independent Registered Public Accounting Firm

 

58

Important Tax Information

 

58

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

 

59

Automatic Dividend Reinvestment Plans

 

63

Officers and Trustees

 

65

Additional Information

 

68


 

 

 




2

ANNUAL REPORT

AUGUST 31, 2009



 


Dear Shareholder

The past 12 months reveal two distinct economic and market backdrops — one of extreme investor pessimism and decided weakness, and another of increased optimism amid growing signs of recovery. The start of the period was characterized by the former. September through December 2008 saw the surge of the economic storm that sparked the worst recession in decades. The months featured, among others, the infamous collapse of Lehman Brothers, uniformly poor economic data and plummeting investor confidence that resulted in massive government intervention (on a global scale) in the financial system and the economy. The tide turned dramatically in March 2009, however, on the back of new US government initiatives, as well as better-than-expected economic data and upside surprises in corporate earnings.

In this environment, US equities contended with extraordinary volatility, posting steep declines through mid-March before embarking on a rally that resulted in strong year-to-date returns for all major indexes. June saw a brief correction, though it appeared to be induced more by profit-taking and portfolio rebalancing than by a change in the economic outlook. The experience in international markets was similar to that in the United States. Notably, emerging markets staged a strong comeback in 2009 as these areas of the globe have generally seen a stronger acceleration in economic activity.

In fixed income markets, the flight-to-safety premium in Treasury securities prevailed during the equity market downturn, but more recently, ongoing concerns about deficit spending, debt issuance, inflation and dollar weakness have kept Treasury yields higher. At the same time, relatively attractive yields and distressed valuations among non-Treasury assets, coupled with a more favorable macro environment, drew in sidelined investors and triggered a sharp recovery in these sectors. This was particularly evident in the high yield sector, which has firmly outpaced all other taxable asset classes since the start of 2009. The municipal bond market enjoyed strong returns in 2009 as well, buoyed by a combination of attractive valuations, robust retail investor demand and a slowdown in forced selling. Moreover, the Build America Bond program has alleviated supply pressures, creating a more favorable technical environment. In particular, August marked the municipal market’s best monthly performance in more than 20 years, as the asset class has regained year-to-date all that was lost during 2008.

Overall, results for the major benchmark indexes were mixed. Higher-risk assets (i.e., equities and high yield bonds) and Treasuries reflected a bifurcated market, while less-risky fixed income investments posted stable, modest returns.

 

 

 

 

 

 

 

 

Total Returns as of August 31, 2009

 

6-month

 

12-month

 







US equities (S&P 500 Index)

 

40.52

%

 

(18.25

)%

 









Small cap US equities (Russell 2000 Index)

 

48.25

 

 

(21.29

)

 









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

 

53.47

 

 

(14.95

)

 









US Treasury securities (BofA Merrill Lynch 10-Year US Treasury Index*)

 

(1.61

)

 

6.77

 

 









Taxable fixed income (Barclays Capital US Aggregate Bond Index)

 

5.95

 

 

7.94

 

 









Tax-exempt fixed income (Barclays Capital Municipal Bond Index)

 

5.61

 

 

5.67

 

 









High yield bonds (Barclays Capital US Corporate High Yield 2% Issuer Capped Index)

 

36.31

 

 

7.00

 

 









 

 

*

Formerly a Merrill Lynch Index.

 

 

 

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

The market environment has visibly improved since the beginning of the year, but a great deal of uncertainty and risk remain. Through periods of market turbulence, as ever, BlackRock’s full resources are dedicated to the management of our clients’ assets. We invite you to visit www.blackrock.com/funds for our most current views on the economy and financial markets. As always, we thank you for entrusting BlackRock with your investments, and we look forward to continuing to serve you in the months and years ahead.

Sincerely,

-s- Rob Kapito

Rob Kapito
President, BlackRock Advisors, LLC

 


Announcement to Shareholders


On June 16, 2009, BlackRock, Inc. announced that it received written notice from Barclays PLC (“Barclays”) in which Barclays’ Board of Directors had accepted BlackRock’s offer to acquire Barclays Global Investors (“BGI”). At a special meeting held on August 6, 2009, BlackRock’s proposed purchase of BGI was approved by an overwhelming majority of Barclays’ voting shareholders, an important step toward closing the transaction. The combination of BlackRock and BGI will bring together market leaders in active and index strategies to create the preeminent asset management firm. The transaction is scheduled to be completed in the fourth quarter of 2009, subject to important fund shareholder and regulatory approvals.

 

 


THIS PAGE NOT PART OF YOUR FUND REPORT

3



 

 


 

Trust Summary as of August 31, 2009

BlackRock Insured Municipal Income Trust


 


Investment Objective


BlackRock Insured Municipal Income Trust (BYM) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes. The Trust will invest at least 80% of its managed assets in municipal obligations that are insured as to the timely payment of both principal and interest.

 

 

 

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

 


Performance


For the 12 months ended August 31, 2009, the Trust returned 10.58% based on market price and 2.83% based on net asset value (“NAV”). For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 10.87% on a market price basis and 3.97% on a NAV basis. All returns reflect reinvestment of dividends. During the period, the Trust moved from a discount to a premium to NAV, which accounts for the difference between performance based on price and performance based on NAV. The Trust’s above-average yield contributed to performance, as did its constructive duration posture during a period in which yields fell (prices increased) — albeit in a very volatile manner. Conversely, the Trust’s overweight exposure to the long end of the municipal yield curve detracted from performance as the curve steepened and the shorter end performed better. Additionally, the Trust’s holdings of insured bonds with weaker underlying ratings had a negative impact on results, as insurer downgrades led to wider spreads on these securities. We worked to opportunistically upgrade credit quality over the period.

 

 

 

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

 

 


Trust Information



 

 

 

Symbol on New York Stock Exchange (“NYSE”)

 

BYM

Initial Offering Date

 

October 31, 2002

Yield on Closing Market Price as of August 31, 2009 ($13.69)1

 

6.00%

Tax Equivalent Yield2

 

9.23%

Current Monthly Distribution per Common Share3

 

$0.0685

Current Annualized Distribution per Common Share3

 

$0.8220

Leverage as of August 31, 20094

 

36%





 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Auction Market Preferred Shares (“Preferred Shares”) and tender option bond trusts (“TOBs”) as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

8/31/09

 

8/31/08

 

Change

 

High

 

Low

 















Market Price

 

$13.69

 

$13.19

 

3.79

%

$14.00

 

$

7.82

 

Net Asset Value

 

$13.55

 

$14.04

 

(3.49

)%

$14.21

 

$

10.32

 















The following unaudited charts show the sector and credit quality allocations of the Trust’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08

 







Transportation

 

25

%

 

24

%

 

Utilities

 

25

 

 

27

 

 

County/City/Special District/School District

 

19

 

 

16

 

 

State

 

15

 

 

15

 

 

Health

 

7

 

 

6

 

 

Tobacco

 

6

 

 

6

 

 

Education

 

2

 

 

5

 

 

Housing

 

1

 

 

 

 

Corporate

 

 

 

1

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08

 







AAA/Aaa

 

56

%

 

58

%

 

AA/Aa

 

19

 

 

34

 

 

A

 

15

 

 

5

 

 

BBB/Baa

 

8

 

 

3

 

 

Not Rated

 

2

6

 

 

 










 

 

 

 

5

Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2009, the market value of these securities was $10,859,100 representing 2% of the Trust’s long-term investments.


 

 

 


4

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

Trust Summary as of August 31, 2009

BlackRock Insured Municipal Income Investment Trust


 


Investment Objective


BlackRock Insured Municipal Income Investment Trust (BAF) (the “Trust”) seeks to provide current income exempt from regular federal income taxes, including the alternative minimum tax and Florida intangible personal property tax. The Trust will invest at least 80% of its managed assets in municipal obligations that are insured as to the timely payment of both principal and interest.

Effective September 12, 2008, BlackRock Florida Insured Municipal Income Trust was renamed BlackRock Insured Municipal Income Investment Trust.

 

 

 

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

 


Performance


For the 12 months ended August 31, 2009, the Trust returned 11.70% based on market price and 5.36% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 10.87% on a market price basis and 3.97% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The Trust’s overweights in longer-dated tax-backed and utility bonds contributed positively to performance. Conversely, overweight exposure to spread products, such as health care bonds, detracted from results as these issues underperformed the broader municipal market early in the reporting period. Also hampering performance were the Trust’s overweight in AMBAC and MBIA and neutral position in FGIC, which underperformed amid continued downgrades of the monoline insurers. The Trust ended the period with cash and short-term investment reserves of 8% of net assets, which detracted mildly from performance as yields on cash equivalent securities remain at historic lows. Notably, due to the repeal of the Florida intangible personal property tax, the Trust is transitioning from its status as a state-specific Florida fund to a national portfolio with broader investment parameters. At times, we sold into strong demand for Florida issues, which raised the Trust’s cash reserves above 5%. Going forward, we anticipate reducing cash reserves to be fully invested in the long end of the municipal yield curve.

 

 

 

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

 


Trust Information



 

 

 

Symbol on NYSE

 

BAF

Initial Offering Date

 

October 31, 2002

Yield on Closing Market Price as of August 31, 2009 ($13.01)1

 

6.04%

Tax Equivalent Yield2

 

9.29%

Current Monthly Distribution per Common Share3

 

$0.0655

Current Annualized Distribution per Common Share3

 

$0.7860

Leverage as of August 31, 20094

 

37%





 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Common Share was increased to $0.0685. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

8/31/09

 

8/31/08

 

Change

 

High

 

Low

 













Market Price

 

$13.01

 

$12.42

 

4.75

%

$13.19

 

$

6.70

 

Net Asset Value

 

$14.06

 

$14.23

 

(1.19

)%

$14.37

 

$

10.77

 














The following unaudited charts show the sector and credit quality allocations of the Trust’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08

 







County/City/Special District/School District

 

46

%

 

56

%

 

Utilities

 

27

 

 

16

 

 

Health

 

10

 

 

10

 

 

State

 

9

 

 

8

 

 

Transportation

 

7

 

 

2

 

 

Education

 

1

 

 

8

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08

 







AAA/Aaa

 

44

%

 

41

%

 

AA/Aa

 

29

 

 

48

 

 

A

 

20

 

 

2

 

 

Not Rated6

 

7

 

 

9

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2009 and 2008, the market value of these securities was $7,552,594 representing 4% and $7,387,462 representing 4%, respectively, of the Trust’s long-term investments.


 

 

 


ANNUAL REPORT

AUGUST 31, 2009

5



 

 


 

Trust Summary as of August 31, 2009

BlackRock Municipal Bond Trust


 


Investment Objective


BlackRock Municipal Bond Trust (BBK) (the “Trust”) seeks to provide current income exempt from regular federal income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment grade quality, or determined by the investment advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

 

 

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

 


Performance


For the 12 months ended August 31, 2009, the Trust returned 7.48% based on market price and 2.52% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 5.73% on a market price basis and 1.06% on a NAV basis. All returns reflect reinvestment of dividends. During the period, the Trust moved from a discount to a premium to NAV, which accounts for the difference between performance based on price and performance based on NAV. The Trust’s heavy concentrations in lower-rated and longer-dated securities propelled performance in recent months as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield. On the other hand, the Trust suffered from poor positioning during the fourth quarter of 2008, including underweights in tax-backed and utility bonds, which were among the better performers. At the same time, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads, a common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The Trust exhibited greater sensitivity to both factors than many of its Lipper peers.

 

 

 

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

 


Trust Information



 

 

 

Symbol on NYSE

 

BBK

Initial Offering Date

 

April 30, 2002

Yield on Closing Market Price as of August 31, 2009 ($13.80)1

 

7.39%

Tax Equivalent Yield2

 

11.37%

Current Monthly Distribution per Common Share3

 

$0.085

Current Annualized Distribution per Common Share3

 

$1.020

Leverage as of August 31, 20094

 

39%





 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

8/31/09

 

8/31/08

 

Change

 

High

 

Low

 













Market Price

 

$13.80

 

$13.89

 

(0.65

)%

$14.00

 

$

6.97

 

Net Asset Value

 

$13.23

 

$13.96

 

(5.23

)%

$14.17

 

$

9.40

 















The following unaudited charts show the sector and credit quality allocations of the Trust’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08

 







Health

 

31

%

 

26

%

 

Housing

 

16

 

 

14

 

 

County/City/Special District/School District

 

13

 

 

13

 

 

State

 

10

 

 

6

 

 

Corporate

 

8

 

 

9

 

 

Utilities

 

7

 

 

11

 

 

Transportation

 

7

 

 

10

 

 

Education

 

5

 

 

8

 

 

Tobacco

 

3

 

 

3

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08

 







AAA/Aaa

 

25

%

 

24

%

 

AA/Aa

 

20

 

 

27

 

 

A

 

24

 

 

21

 

 

BBB/Baa

 

17

 

 

14

 

 

BB/Ba

 

1

 

 

4

 

 

B

 

4

 

 

2

 

 

CCC/Caa

 

 

 

1

 

 

Not Rated6

 

9

 

 

7

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2009 and 2008, the market value of these securities was $4,472,353 representing 2% and $3,883,176 representing 2%, respectively, of the Trust’s long-term investments.


 

 

 


6

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

Trust Summary as of August 31, 2009

BlackRock Municipal Bond Investment Trust


 


Investment Objective


BlackRock Municipal Bond Investment Trust (BIE) (the “Trust”) seeks to provide current income exempt from regular federal income taxes and Florida intangible personal property tax. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment grade quality, or determined by the investment advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its managed assets in municipal bonds that are rated, at the time of purchase, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock. No assurance can be given that the Trust’s investment objective will be achieved.

Effective September 12, 2008, BlackRock Florida Municipal Bond Trust was renamed BlackRock Municipal Bond Investment Trust.

 

 

 

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

 


Performance


For the 12 months ended August 31, 2009, the Trust returned (0.64)% based on market price and 2.43% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 5.73% on a market price basis and 1.06% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The Trust’s overweight in longer-dated housing, transportation and utility bonds contributed positively to performance. Conversely, overweight exposure to spread products, such as health care and tax-increment bonds, detracted from results as these issues underperformed the broader municipal market early in the reporting period.

 

 

 

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

 


Trust Information



 

 

 

Symbol on NYSE

 

BIE

Initial Offering Date

 

April 30, 2002

Yield on Closing Market Price as of August 31, 2009 ($13.20)1

 

6.71%

Tax Equivalent Yield2

 

10.32%

Current Monthly Distribution per Common Share3

 

$0.0738

Current Annualized Distribution per Common Share3

 

$0.8856

Leverage as of August 31, 20094

 

39%





 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 














 

 

8/31/09

 

8/31/08

 

Change

 

High

 

 

Low

 














Market Price

 

$13.20

 

$14.28

 

(7.56

)%

$14.35

 

$

8.00

 

Net Asset Value

 

$14.16

 

$14.86

 

(4.71

)%

$15.02

 

$

11.17

 














The following unaudited charts show the sector and credit quality allocations of the Trust’s long-term investments:

 


Sector Allocations



 

 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08

 







Health

 

22

%

 

37

%

 

Utilities

 

21

 

 

12

 

 

County/City/Special District/School District

 

20

 

 

31

 

 

Transportation

 

13

 

 

5

 

 

Education

 

10

 

 

5

 

 

State

 

8

 

 

1

 

 

Housing

 

5

 

 

6

 

 

Corporate

 

1

 

 

3

 

 










 


Credit Quality Allocations5



 

 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08

 







AAA/Aaa

 

16

%

 

25

%

 

AA/Aa

 

45

 

 

32

 

 

A

 

27

 

 

12

 

 

BBB/Baa

 

3

 

 

7

 

 

BB/Ba

 

1

 

 

2

 

 

Not Rated6

 

8

 

 

22

 

 










 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2009 and 2008, the market value of these securities was $2,503,826 representing 3% and $6,398,306 representing 8%, respectively, of the Trust’s long-term investments.


 

 

 


ANNUAL REPORT

AUGUST 31, 2009

7



 

 



 

 

Trust Summary as of August 31, 2009

BlackRock Municipal Income Trust II


 


Investment Objective


 

BlackRock Municipal Income Trust II (BLE) (the “Trust”) seeks to provide high current income exempt from regular federal income taxes. Under normal market conditions, the Trust will invest at least 80% of its managed assets in municipal bonds that are investment grade quality, or determined by the investment advisor to be of equivalent credit quality at time of purchase. The Trust may invest up to 20% of its total assets in municipal bonds that are rated, at the time of investment, Ba/BB or B by Moody’s, S&P or Fitch or that are unrated but judged to be of comparable quality by BlackRock.

 

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

 


Performance


 

For the 12 months ended August 31, 2009, the Trust returned 9.52% based on market price and 1.54% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 5.73% on a market price basis and 1.06% on a NAV basis. All returns reflect reinvestment of dividends. During the period, the Trust moved from a discount to a premium to NAV, which accounts for the difference between performance based on price and performance based on NAV. The Trust’s heavy concentrations in lower-rated and longer-dated securities propelled performance in recent months as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield. On the other hand, the Trust suffered from poor positioning during the fourth quarter of 2008. Specifically, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads, a common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The Trust exhibited greater sensitivity to both factors than many of its Lipper peers. The Trust ended the period with cash and short-term investments of 7% of net assets, which was not a factor in 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.


 


Trust Information



 

 

 

Symbol on NYSE Amex

 

BLE

Initial Offering Date

 

July 30, 2002

Yield on Closing Market Price as of August 31, 2009 ($13.45)1

 

7.23%

Tax Equivalent Yield2

 

11.12%

Current Monthly Distribution per Common Share3

 

$0.081

Current Annualized Distribution per Common Share3

 

$0.972

Leverage as of August 31, 20094

 

39%





 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

8/31/09

 

8/31/08

 

Change

 

High

 

Low

 














Market Price

 

$13.45

 

$13.27

 

1.36

%

 

$13.45

 

$6.84

 

Net Asset Value

 

$12.78

 

$13.60

 

(6.03

)%

 

$13.80

 

$9.00

 














The following unaudited charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 


Sector Allocations


 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08






Health

 

20

%

 

26

%

State

 

15

 

 

10

 

Transportation

 

12

 

 

14

 

Utilities

 

12

 

 

13

 

Corporate

 

11

 

 

12

 

Education

 

10

 

 

10

 

County/City/Special District/School District

 

8

 

 

6

 

Housing

 

8

 

 

5

 

Tobacco

 

4

 

 

4

 








 

 

 

 

 

 

 


Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08






AAA/Aaa

 

22

%

 

24

%

AA/Aa

 

12

 

 

29

 

A

 

26

 

 

13

 

BBB/Baa

 

23

 

 

17

 

BB/Ba

 

1

 

 

3

 

B

 

6

 

 

4

 

CCC/Caa

 

1

 

 

1

 

Not Rated6

 

9

 

 

9

 









 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2009 and 2008, the market value of these securities was $16,290,531 representing 4% and $18,784,767 representing 4%, respectively, of the Trust’s long-term Investments.


 

 

 


8

ANNUAL REPORT

AUGUST 31, 2009



 

 



 

 

Trust Summary as of August 31, 2009

BlackRock MuniHoldings Insured Investment Fund

 

 


 


Investment Objective


BlackRock MuniHoldings Insured Investment Fund (MFL) (the “Trust”) seeks to provide shareholders with current income exempt from federal income tax. The Trust also seeks to offer shareholders the opportunity to own shares, the value of which is exempt from Florida intangible personal property tax. Under normal circumstances, the Trust invests at least 80% of its assets in municipal bonds either (i) insured under an insurance policy purchased by the Trust or (ii) insured under an insurance policy obtained by the issuer of the municipal bond or any other party. Such municipal bonds will be insured by insurers or other entities with claims-paying abilities rated at least investment grade at time of purchase and the Trust may invest in municipal obligations regardless of geographic location.

Effective September 12, 2008, BlackRock MuniHoldings Florida Insured Fund was renamed BlackRock MuniHoldings Insured Investment Fund.

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

 


Performance


For the 12 months ended August 31, 2009, the Trust returned 16.19% based on market price and 7.36% based on NAV. For the same period, the closed-end Lipper Insured Municipal Debt Funds (Leveraged) category posted an average return of 10.87% on a market price basis and 3.97% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The Trust’s overweights in longer-dated housing and utility bonds contributed positively to performance. Conversely, overweight exposure to spread products, such as health care bonds, detracted from results as these issues underperformed the broader municipal market early in the reporting period. Also hampering performance were the Trust’s overweight in AMBAC and MBIA and neutral position in FGIC, which underperformed amid continued downgrades of the monoline insurers. The Trust ended the period with cash and short-term investments of 11% of net assets, which detracted mildly from performance as yields on cash equivalent securities remain at historic lows. Notably, due to the repeal of the Florida intangible personal property tax, the Trust is transitioning from its status as a state-specific Florida fund to a national portfolio with broader investment parameters. At times, we sold into strong demand for Florida issues, which raised the Trust’s cash reserves above 5%. Going forward, we anticipate reducing cash reserves to be fully invested in the long end of the municipal yield curve.

 

 

 

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

 

 


Trust Information



 

 

 

Symbol on NYSE

 

MFL

Initial Offering Date

 

September 26, 1997

Yield on Closing Market Price as of August 31, 2009 ($12.63)1

 

6.46%

Tax Equivalent Yield2

 

9.94%

Current Monthly Distribution per Common Share3

 

$0.068

Current Annualized Distribution per Common Share3

 

$0.816

Leverage as of August 31, 20094

 

39%





 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

The distribution is not constant and is subject to change.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 

 













 

 

8/31/09

 

8/31/08

 

Change

 

High

 

Low

 













Market Price

 

$12.63

 

$11.61

 

8.79%

 

$12.68

 

$

6.72

 

Net Asset Value

 

$13.57

 

$13.50

 

0.52%

 

$13.66

 

$

10.75

 

The following unaudited charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 


Sector Allocations


 

 

 

8/31/09

 

8/31/08






Utilities

 

32

%

 

16

%

Transportation

 

21

 

 

24

 

County/City/Special District/School District

 

21

 

 

34

 

Health

 

10

 

 

7

 

State

 

6

 

 

5

 

Education

 

6

 

 

8

 

Housing

 

4

 

 

6

 








 

 

 

 

 

 

 


Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08








AAA/Aaa

 

56

%

 

37

%

AA/Aa

 

16

 

 

47

 

A

 

25

 

 

9

 

BBB/Baa

 

 

 

2

 

Not Rated6

 

3

 

 

5

 









 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2009 and 2008, the market value of these securities was $20,244,144 representing 3% and $33,232,933 representing 4%, respectively, of the Trust’s long-term investments.


 

 

 


ANNUAL REPORT

AUGUST 31, 2009

9



 

 



 

 

Trust Summary as of August 31, 2009

BlackRock MuniVest Fund, Inc.


 


Investment Objective


 

BlackRock MuniVest Fund, Inc. (MVF) (the “Trust”) seeks to provide shareholders with as high a level of current income exempt from federal income taxes as is consistent with its investment policies and prudent investment management by investing primarily in a portfolio of long-term, investment grade municipal obligations, the interest on which is exempt from federal income taxes in the opinion of bond counsel to the issuer.

 

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

 


Performance


 

For the 12 months ended August 31, 2009, the Trust returned 14.81% based on market price and 8.18% based on NAV. For the same period, the closed-end Lipper General Municipal Debt Funds (Leveraged) category posted an average return of 5.73% on a market price basis and 1.06% on a NAV basis. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The Trust’s heavy concentrations in lower-rated and longer-dated securities enhanced performance in recent months as the yield curve flattened and credit spreads tightened. Performance was supported throughout the period by an above-average dividend yield, as we focused on maximizing coupon structure and minimizing cash levels. On the other hand, the Trust suffered from poor positioning during the fourth quarter of 2008. Specifically, prices of long-maturity bonds fell disproportionately compared to shorter-dated bonds. In addition, credit spreads, a common gauge of liquidity and risk tolerance, widened as investors sought to minimize risk exposure due to rapidly deteriorating credit fundamentals. The Trust exhibited greater sensitivity to both factors than many of its Lipper peers.


 

 

 

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

 

 


Trust Information



 

 

 

Symbol on NYSE Amex

 

MVF

Initial Offering Date

 

September 29, 1988

Yield on Closing Market Price as of August 31, 2009 ($8.91)1

 

6.80%

Tax Equivalent Yield2

 

10.46%

Current Monthly Distribution per Common Share3

 

$0.0505

Current Annualized Distribution per Common Share3

 

$0.6060

Leverage as of August 31, 20094

 

42%





 

 

 

 

1

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

 

 

 

 

2

Tax equivalent yield assumes the maximum federal tax rate of 35%.

 

 

 

 

3

A change in the distribution rate was declared on September 1, 2009. The Monthly Distribution per Common Share was increased to $0.053. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to further change in the future.

 

 

 

 

4

Represents Preferred Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust (including any assets attributable to Preferred Shares and TOBs) minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 11.

The table below summarizes the changes in the Trust’s market price and NAV per share:

 

 

 

 

 

 

 

 

 

 

 

 













 

 

8/31/09

 

8/31/08

 

Change

 

High

 

Low

 













Market Price

 

$8.91

 

$8.33

 

6.96%

 

$9.07

 

$5.05

 

Net Asset Value

 

$8.98

 

$8.91

 

0.79%

 

$9.01

 

$6.77

 

The following unaudited charts show the sector and credit quality allocations of the Trust’s long-term investments:

 

 

 

 

 

 

 


Sector Allocations


 

 

 

 

 

 

 

8/31/09

 

8/31/08






Health

 

20

%

 

20

%

Utilities

 

15

 

 

15

 

State

 

15

 

 

15

 

Corporate

 

13

 

 

14

 

Transportation

 

11

 

 

9

 

County/City/Special District/School District

 

10

 

 

10

 

Education

 

6

 

 

7

 

Tobacco

 

5

 

 

6

 

Housing

 

5

 

 

4

 








 

 

 

 

 

 

 


Credit Quality Allocations5


 

 

 

 

 

 

 

 

 

8/31/09

 

8/31/08






AAA/Aaa

 

26

%

 

34

%

AA/Aa

 

28

 

 

24

 

A

 

28

 

 

20

 

BBB/Baa

 

15

 

 

18

 

BB/Ba

 

 

 

1

 

B

 

1

 

 

1

 

Not Rated6

 

2

 

 

2

 









 

 

 

 

5

Using the higher of S&P’s or Moody’s ratings.

 

 

 

 

6

The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of August 31, 2009 and 2008, the market value of these securities was $16,779,679 representing 2% and $14,242,697 representing 2%, respectively, of the Trust’s long-term Investments.


 

 

 


10

ANNUAL REPORT

AUGUST 31, 2009



 


 

The Benefits and Risks of Leveraging

The Trusts may utilize leverage to seek to enhance the yield and NAV of their Common Shares. However, these objectives cannot be achieved in all interest rate environments.

To leverage, the Trusts issue Preferred Shares, which pay dividends at prevailing short-term interest rates, and invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the cost of assets to be obtained from leverage will be based on short-term interest rates, which normally will be lower than the income earned by each Trust on its longer-term portfolio investments. To the extent that the total assets of the Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Trust’s Common Shareholders will benefit from the incremental net income.

To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it issues Preferred Shares for an additional $50 million, creating a total value of $150 million available for investment in long-term municipal bonds. If prevailing short-term interest rates are 3% and long-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, the Trust pays dividends on the $50 million of Preferred Shares based on the lower short-term interest rates. At the same time, the securities purchased by the Trust with assets received from the Preferred Shares issuance earn the income based on long-term interest rates. In this case, the dividends paid to Preferred Shareholders are significantly lower than the income earned on the Trust’s long-term investments, and therefore the Common Shareholders are the beneficiaries of the incremental net income.

If short-term interest rates rise, narrowing the differential between short-term and long-term interest rates, the incremental net income pickup on the Common Shares will be reduced or eliminated completely. Furthermore, if prevailing short-term interest rates rise above long-term interest rates of 6%, the yield curve has a negative slope. In this case, the Trust pays dividends on the higher short-term interest rates whereas the Trust’s total portfolio earns income based on lower long-term interest rates.

Furthermore, the value of the Trust’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the redemption value of the Trust’s Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trust’s NAV positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares discussed above.

The Trusts may also leverage their assets through the use of tender option bond (“TOB”) programs, as described in Note 1 of the Notes to Financial Statements. TOB investments generally will provide the Trusts with economic benefits in periods of declining short-term interest rates, but expose the Trusts to risks during periods of rising short-term interest rates similar to those associated with Preferred Shares issued by the Trusts, as described above. Additionally, fluctuations in the market value of municipal bonds deposited into the TOB trust may adversely affect the Trusts’ NAV per share.

The use of leverage may enhance opportunities for increased income to the Trusts and Common Shareholders, but as described above, it also creates risks as short- or long-term interest rates fluctuate. Leverage also will generally cause greater changes in the Trusts’ NAVs, market price and dividend rate than a comparable portfolio without leverage. If the income derived from securities purchased with assets received from leverage exceeds the cost of leverage, the Trusts’ net income will be greater than if leverage had not been used. Conversely, if the income from the securities purchased is not sufficient to cover the cost of leverage, the Trusts’ net income will be less than if leverage had not been used, and therefore the amount available for distribution to Common Shareholders will be reduced. The Trusts may be required to sell portfolio securities at inopportune times or 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 the Trusts’ ability to invest in certain types of securities or use certain types of hedging strategies, such as in the case of certain restrictions imposed by ratings agencies that rate preferred shares issued by a Trust. The Trusts will incur expenses in connection with the use of leverage, all of which are borne by the holders of the Common Shares and may reduce income to the Common Shares.

Under the Investment Company Act of 1940, the Trusts are permitted to issue Preferred Shares in an amount up to 50% of their total managed assets at the time of issuance. Under normal circumstances, each Trust anticipates that the total economic leverage from Preferred Shares and TOBs will not exceed 50% of its total managed assets at the time such leverage is incurred. As of August 31, 2009, the Trusts had economic leverage from Preferred Shares and TOBs as a percentage of their total managed assets as follows:

 

 

 




 

 

Percent of
Leverage




BYM

 

36%

BAF

 

37%

BBK

 

39%

BIE

 

39%

BLE

 

39%

MFL

 

39%

MVF

 

42%





 


 

Derivative Financial Instruments

The Trusts may invest in various derivative instruments, including financial futures contracts and swap agreements as specified in Note 2 of the Notes to Financial Statements, which constitute forms of economic leverage. Such instruments are used to obtain exposure to a market without owning or taking physical custody of securities or to hedge market and/or interest rate risks. Such derivative instruments involve risks, including the imperfect correlation between the value of a derivative instrument and the underlying asset, possible default of the counterparty to the transaction and illiquidity of the derivative instrument. The Trusts’ ability to successfully use a derivative instrument depends on the investment advisor’s ability to accurately predict pertinent market movements, which cannot be assured. The use of derivative instruments may result in losses greater than if they had not been used, may require a Trust to sell or purchase portfolio securities at inopportune times or for distressed values, may limit the amount of appreciation a Trust can realize on an investment or may cause a Trust to hold a security that it might otherwise sell. The Trusts’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

 

 

 


ANNUAL REPORT

AUGUST 31, 2009

11



 

 


 

 

Schedule of Investments August 31, 2009

BlackRock Insured Municipal Income Trust (BYM)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 0.9%

 

 

 

 

 

 

 

Birmingham Alabama Special Care Facilities Financing Authority, RB, Health Care Facilities, Children’s Hospital (AGC), 6.00%, 6/01/39 (a)

 

$

1,495

 

$

1,547,938

 

County of Jefferson Alabama, RB, Series A, 4.75%, 1/01/25

 

 

2,800

 

 

1,721,944

 

 

 

 

 

 




 

 

 

 

 

 

3,269,882

 









Arizona — 0.4%

 

 

 

 

 

 

 

Salt Verde Financial Corp., Arizona, RB, Senior, 5.00%, 12/01/37

 

 

1,500

 

 

1,250,865

 









California — 33.1%

 

 

 

 

 

 

 

Arcadia Unified School District, California, GO, CAB, Election of 2006, Series A (FSA), 4.96%, 8/01/39 (b)

 

 

2,000

 

 

310,340

 

California Health Facilities Financing Authority, RB, Saint Joseph Health System, Series A, 5.75%, 7/01/39

 

 

625

 

 

629,144

 

California Infrastructure & Economic Development Bank, RB, Bay Area Toll Bridges, 1st Lien, Series A (AMBAC), 5.00%, 7/01/13 (c)

 

 

10,100

 

 

11,588,033

 

California State Department of Water Resources, RB, Series A, 5.38%, 5/01/12 (c)

 

 

10,000

 

 

11,214,500

 

Coast Community College District, California, GO, CAB, Election of 2002, Series C (FSA):

 

 

 

 

 

 

 

5.57%, 8/01/13 (d)

 

 

7,450

 

 

5,970,207

 

5.40%, 8/01/36 (b)

 

 

4,200

 

 

799,260

 

Fresno Unified School District, California, GO, Election of 2001, Series E (FSA), 5.00%, 8/01/30

 

 

1,100

 

 

1,117,303

 

Golden State Tobacco Securitization Corp., California, RB, Series 2003-A-1 (c):

 

 

 

 

 

 

 

6.63%, 6/01/13

 

 

6,500

 

 

7,623,590

 

6.75%, 6/01/13

 

 

14,500

 

 

17,071,865

 

Los Angeles Municipal Improvement Corp., California, RB, Series B-1 (MBIA), 4.75%, 8/01/37

 

 

4,000

 

 

3,538,000

 

Metropolitan Water District of Southern California, RB, Authority, Series B-1 (MBIA), 5.00%, 10/01/33

 

 

17,500

 

 

17,770,200

 

Monterey Peninsula Community College District, California, GO, CAB, Series C (FSA) (b):

 

 

 

 

 

 

 

5.15%, 8/01/31

 

 

13,575

 

 

3,524,884

 

5.16%, 8/01/32

 

 

14,150

 

 

3,448,779

 

Orange County Sanitation District, California, COP, Series B (FSA), 5.00%, 2/01/31

 

 

2,500

 

 

2,552,700

 

Sacramento City Unified School District, California, GO, Election of 2002 (MBIA), 5.00%, 7/01/30

 

 

2,700

 

 

2,736,612

 

San Francisco City & County Public Utilities Commission, California, RB, Series A (FSA), 5.00%, 11/01/31

 

 

15,000

 

 

15,075,300

 

San Joaquin Hills Transportation Corridor Agency, California, Refunding RB, CAB, Series A (MBIA), 5.49%, 1/15/31 (b)

 

 

53,000

 

 

10,337,650

 

San Jose Unified School District, Santa Clara County California, GO, Election of 2002, Series B (MBIA), 5.00%, 8/01/29

 

 

2,350

 

 

2,388,376

 

 

 

 

 

 




 

 

 

 

 

 

117,696,743

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









District of Columbia — 2.5%

 

 

 

 

 

 

 

District of Columbia Tobacco Settlement Financing Corp., RB, Asset Backed Bonds, 6.75%, 5/15/40

 

$

9,500

 

$

8,829,300

 









Florida — 12.5%

 

 

 

 

 

 

 

Broward County School Board, Florida, COP, Series A (FSA), 5.25%, 7/01/33

 

 

2,000

 

 

2,033,780

 

City of Miami Florida, RB, Miami Revenues (MBIA), 5.00%, 1/01/37

 

 

1,000

 

 

943,120

 

County of Broward Florida, RB, Series A, 5.25%, 10/01/34

 

 

950

 

 

975,640

 

County of Duval Florida, COP, Master Lease Program (FSA), 5.00%, 7/01/33

 

 

2,800

 

 

2,788,212

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

CAB, Sub-Series A (MBIA), 5.25%, 10/01/38 (b)

 

 

25,520

 

 

3,373,489

 

(FSA), 5.00%, 7/01/35

 

 

1,300

 

 

1,302,678

 

Jackson Health System (AGC), 5.75%, 6/01/39 (a)

 

 

2,300

 

 

2,343,769

 

Miami International Airport, Hub, Series B (MBIA), 5.00%, 10/01/37

 

 

8,650

 

 

8,306,854

 

Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 3 (GNMA), 5.45%, 7/01/33

 

 

4,955

 

 

5,032,843

 

Florida State Department of Environmental Protection, RB, Series B (MBIA), 5.00%, 7/01/27

 

 

7,500

 

 

7,649,775

 

Miami-Dade County School Board, Florida, COP, Series B (AGC), 5.25%, 5/01/31

 

 

3,600

 

 

3,672,576

 

Orange County School Board, Florida, COP, Series A (AGC), 5.50%, 8/01/34

 

 

5,590

 

 

5,780,116

 

Sarasota County Public Hospital District, Florida, RB, Sarasota Memorial Hospital Project-Series A, 5.63%, 7/01/39

 

 

300

 

 

299,757

 

 

 

 

 

 




 

 

 

 

 

 

44,502,609

 









Illinois — 4.2%

 

 

 

 

 

 

 

Chicago Board of Education, Illinois, GO, Chicago School Reform Board, Series A (MBIA), 5.50%, 12/01/26

 

 

2,500

 

 

2,784,750

 

City of Chicago Illinois, RB, Project, Series A (AGC), 5.00%, 1/01/38

 

 

7,310

 

 

7,354,079

 

Illinois Municipal Electric Agency, RB, Series A (MBIA), 5.25%, 2/01/27

 

 

4,800

 

 

4,948,368

 

 

 

 

 

 




 

 

 

 

 

 

15,087,197

 









Indiana — 0.7%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, Indiana, RB:

 

 

 

 

 

 

 

Series A (MBIA), 5.00%, 1/01/37

 

 

2,050

 

 

2,031,755

 

Series B, 5.75%, 1/01/34

 

 

450

 

 

460,156

 

 

 

 

 

 




 

 

 

 

 

 

2,491,911

 









Iowa — 1.4%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Series A (AGC), 5.63%, 8/15/37

 

 

5,000

 

 

5,054,900

 










 


     Portfolio Abbreviations


To simplify the listings of portfolio holdings in each Trust’s Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

ACA

American Capital Access Corp.

AGC

Assured Guaranty Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

CIFG

CDC IXIS Financial Guarantee

COP

Certificates of Participation

EDA

Economic Development Authority

FGIC

Financial Guaranty Insurance Co.

FHA

Federal Housing Administration

FSA

Financial Security Assurance Inc.

GNMA

Government National Mortgage Association

GO

General Obligation Bonds

HDA

Housing Development Authority

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

MBIA

Municipal Bond Investors Assurance

 

(National Public Finance Guaranty Corp.)

PCRB

Pollution Control Revenue Bonds

PILOT

Payment in Lieu of Taxes

RB

Revenue Bonds

S/F

Single-Family

TAN

Tax Anticipation Notes

VRDN

Variable Rate Demand Notes


 

 

 

See Notes to Financial Statements.




12

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

 

Schedule of Investments (continued)

BlackRock Insured Municipal Income Trust (BYM)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Kentucky — 0.5%

 

 

 

 

 

 

 

Kentucky State Property & Buildings Commission, Kentucky, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/29

 

$

1,500

 

$

1,596,180

 









Louisiana — 2.6%

 

 

 

 

 

 

 

State of Louisiana, RB, Series A (FSA):

 

 

 

 

 

 

 

5.00%, 5/01/31

 

 

7,500

 

 

7,639,875

 

4.75%, 5/01/39

 

 

1,600

 

 

1,592,336

 

 

 

 

 

 




 

 

 

 

 

 

9,232,211

 









Michigan — 5.3%

 

 

 

 

 

 

 

City of Detroit Michigan, RB:

 

 

 

 

 

 

 

Second Lien, Series E (FGIC), 5.75.00%, 7/01/31

 

 

3,000

 

 

3,145,740

 

Senior Lien, Series A (MBIA), 5.00%, 7/01/30

 

 

1,000

 

 

908,400

 

Senior Lien, Series A (MBIA), 5.00%, 7/01/34

 

 

2,810

 

 

2,465,719

 

System, Second Lien, Series A (FGIC), 5.50%, 7/01/36

 

 

2,900

 

 

2,954,607

 

System, Second Lien, Series B (MBIA), 5.00%, 7/01/33

 

 

4,000

 

 

3,495,920

 

System, Second Lien, Series B (MBIA), 5.00%, 7/01/36

 

 

7,000

 

 

6,013,490

 

 

 

 

 

 




 

 

 

 

 

 

18,983,876

 









Nevada — 7.4%

 

 

 

 

 

 

 

City of Reno Nevada, RB, Senior Lien, ReTrac, Reno Transportation Project (AMBAC), 5.13%, 6/01/12 (c)

 

 

5,000

 

 

5,533,100

 

County of Clark Nevada, RB, Subordinate Lien, Series A2 (BHAC), (MBIA), 5.00%, 7/01/30

 

 

3,000

 

 

3,046,080

 

Truckee Meadows Water Authority, Nevada, RB, Series A (FSA) (c):

 

 

 

 

 

 

 

5.00%, 7/01/11

 

 

10,000

 

 

10,760,900

 

5.13%, 7/01/11

 

 

6,500

 

 

7,009,275

 

 

 

 

 

 




 

 

 

 

 

 

26,349,355

 









New York — 1.7%

 

 

 

 

 

 

 

New York State Dormitory Authority, RB, Education, Series B, 5.75%, 3/15/36

 

 

1,300

 

 

1,424,878

 

Triborough Bridge & Tunnel Authority, New York, RB, Series A-2, 5.25%, 11/15/34

 

 

4,500

 

 

4,720,635

 

 

 

 

 

 




 

 

 

 

 

 

6,145,513

 









Pennsylvania — 1.6%

 

 

 

 

 

 

 

City of Philadelphia Pennsylvania, RB, Third Series (FSA), 5.13%, 8/01/11 (c)

 

 

5,200

 

 

5,620,992

 









Puerto Rico — 2.0%

 

 

 

 

 

 

 

Puerto Rico Electric Power Authority, Refunding RB, Series VV (MBIA), 5.25%, 7/01/30

 

 

1,330

 

 

1,350,189

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39

 

 

5,300

 

 

5,684,038

 

 

 

 

 

 




 

 

 

 

 

 

7,034,227

 









South Carolina — 3.1%

 

 

 

 

 

 

 

South Carolina Transportation Infrastructure Bank, South Carolina, RB, Junior Lien, Series B (AMBAC), 5.13%, 10/01/11 (c)

 

 

10,000

 

 

10,859,100

 









Tennessee — 5.6%

 

 

 

 

 

 

 

Knox County Health Educational & Housing Facilities Board, Tennessee, RB, CAB, Refunding & Improvement, Series A (FSA) (b):

 

 

 

 

 

 

 

5.84%, 1/01/22

 

 

11,705

 

 

5,896,628

 

5.88%, 1/01/23

 

 

9,260

 

 

4,354,237

 

5.90%, 1/01/24

 

 

8,500

 

 

3,750,370

 

5.91%, 1/01/25

 

 

6,850

 

 

2,841,859

 

5.93%, 1/01/26

 

 

5,000

 

 

1,945,750

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

Value

 









Tennessee (concluded)

 

 

 

 

 

 

 

Knox County Health Educational & Housing Facilities Board, Tennessee, RB, Refunding & Improvement, Covenant Health, Series A, 5.07%, 1/01/41 (b)

 

$

10,000

 

$

1,119,500

 

 

 

 

 

 




 

 

 

 

 

 

19,908,344

 









Texas — 29.8%

 

 

 

 

 

 

 

City of Houston Texas, Refunding RB, Combined, First Lien (FSA), 5.00%, 11/15/35

 

 

1,500

 

 

1,511,025

 

City of San Antonio Texas, Refunding RB (MBIA):

 

 

 

 

 

 

 

5.13%, 5/15/29

 

 

9,250

 

 

9,448,783

 

5.13%, 5/15/34

 

 

10,000

 

 

10,092,800

 

Coppell ISD, Texas, GO, CAB, Refunding, 5.64%, 8/15/30 (b)

 

 

10,030

 

 

3,577,902

 

County of Harris Texas, GO, Refunding (MBIA) (b):

 

 

 

 

 

 

 

5.55%, 8/15/25

 

 

7,485

 

 

3,572,366

 

5.59%, 8/15/28

 

 

10,915

 

 

4,320,048

 

County of Harris Texas, Refunding RB, Senior Lien, Toll Road (FSA), 5.00%, 8/15/30

 

 

5,510

 

 

5,605,158

 

Harris County-Houston Sports Authority, Texas, RB, CAB, Junior Lien, Series H (MBIA) (b):

 

 

 

 

 

 

 

5.91%, 11/15/38

 

 

5,785

 

 

629,639

 

5.92%, 11/15/39

 

 

6,160

 

 

616,062

 

Harris County-Houston Sports Authority, Texas, Refunding RB, Third Lien, Series A-3 (MBIA) (b):

 

 

 

 

 

 

 

5.97%, 11/15/38

 

 

26,890

 

 

2,926,708

 

5.98%, 11/15/39

 

 

27,675

 

 

2,767,777

 

Houston, Texas Airport Systems, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/34

 

 

4,165

 

 

4,299,904

 

Lewisville ISD, Texas, GO, CAB, Refunding, School Building (MBIA), 4.67%, 8/15/24 (b)

 

 

5,315

 

 

2,452,819

 

Mansfield ISD, Texas, GO, School Building, 5.00%, 2/15/33

 

 

2,980

 

 

3,081,052

 

North Texas Tollway Authority, Refunding RB, CAB, System, First Tier (AGC) (b):

 

 

 

 

 

 

 

5.32%, 1/01/29

 

 

5,000

 

 

1,553,050

 

5.44%, 1/01/30

 

 

1,750

 

 

509,652

 

North Texas Tollway Authority, Refunding RB:

 

 

 

 

 

 

 

First Tier, Series A, 6.00%, 1/01/28

 

 

625

 

 

654,488

 

System, First (MBIA), 5.75%, 1/01/40

 

 

23,050

 

 

23,138,743

 

Texas State Turnpike Authority, RB, First Tier, Series A (AMBAC), 5.00%, 8/15/42

 

 

28,645

 

 

25,093,306

 

 

 

 

 

 




 

 

 

 

 

 

105,851,282

 









Washington — 7.2%

 

 

 

 

 

 

 

Chelan County Public Utility District No. 1, Washington, RB, Chelan Hydro System, Series C (AMBAC), 5.13%, 7/01/33

 

 

3,655

 

 

3,690,782

 

County of King Washington, Refunding RB (FSA), 5.00%, 1/01/36

 

 

2,200

 

 

2,241,690

 

Port of Seattle Washington, RB, Series A (MBIA), 5.00%, 4/01/31

 

 

4,500

 

 

4,514,805

 

State of Washington, GO, Various Purpose, Series 02-A (FSA), 5.00%, 7/01/25

 

 

6,380

 

 

6,507,791

 

Washington Health Care Facilities Authority, Washington, RB:

 

 

 

 

 

 

 

MultiCare Health Care, Series C (AGC), 5.50%, 8/15/43

 

 

6,700

 

 

6,799,629

 

MultiCare Health System, Series A (FSA), 5.50%, 8/15/38

 

 

1,700

 

 

1,725,160

 

 

 

 

 

 




 

 

 

 

 

 

25,479,857

 









Total Municipal Bonds — 122.5%

 

 

 

 

 

435,244,344

 










 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

13



 

 


 

 

Schedule of Investments (continued)

BlackRock Insured Municipal Income Trust (BYM)
(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 









Arizona — 0.4%

 

 

 

 

 

 

 

Phoenix Civic Improvement Corp., RB, Junior Lien, Series A, 5.00%, 7/01/34

 

$

1,300

 

$

1,347,970

 









California — 5.7%

 

 

 

 

 

 

 

Los Angeles Community College District, California, GO Election 2001, Series A (FSA), 5.00%, 8/01/32

 

 

5,000

 

 

5,068,300

 

San Diego California Community College District, Election of 2002, 5.25%, 8/01/33

 

 

449

 

 

466,290

 

San Diego County Water Authority, California, COP, Series 2008 A (FSA), 5.00%, 5/01/33

 

 

4,870

 

 

4,924,301

 

University of California, RB, Series C (MBIA), 4.75%, 5/15/37

 

 

10,000

 

 

9,862,800

 

 

 

 

 

 




 

 

 

 

 

 

20,321,691

 









District of Columbia — 0.3%

 

 

 

 

 

 

 

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

 

 

1,080

 

 

1,193,044

 









Florida — 0.9%

 

 

 

 

 

 

 

Florida State Board of Education, GO, Series D, 5.00%, 6/01/37

 

 

2,999

 

 

3,053,775

 









Illinois — 8.2%

 

 

 

 

 

 

 

Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33

 

 

4,499

 

 

4,779,839

 

Metropolitan Pier & Exposition Authority, Illinois, RB, McCormick Place Expansion, Series A (MBIA), 5.00%, 12/15/28

 

 

24,010

 

 

24,430,655

 

 

 

 

 

 




 

 

 

 

 

 

29,210,494

 









Massachusetts — 3.8%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A (FSA), 5.00%, 8/15/30

 

 

12,987

 

 

13,405,268

 









Nevada — 1.9%

 

 

 

 

 

 

 

City of Las Vegas, Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/39

 

 

4,197

 

 

4,485,877

 

Clark County Water Reclamation District, Nevada, GO, Series B, 5.75%, 7/01/34

 

 

2,024

 

 

2,176,812

 

 

 

 

 

 




 

 

 

 

 

 

6,662,689

 









New York — 3.3%

 

 

 

 

 

 

 

Erie County Industrial Development Agency, New York, RB, City School District Buffalo Project, Series A (FSA), 5.75%, 5/01/28

 

 

4,494

 

 

4,765,551

 

Metropolitan Transportation Authority, New York, RB, Series A (MBIA), 5.00%, 11/15/31

 

 

7,002

 

 

7,111,433

 

 

 

 

 

 




 

 

 

 

 

 

11,876,984

 









Ohio — 0.2%

 

 

 

 

 

 

 

Ohio State Hospital Facilities Revenue, RB, Cleveland Clinic Health, Series B, 5.50%, 1/01/34

 

 

620

 

 

630,813

 









South Carolina — 0.2%

 

 

 

 

 

 

 

South Carolina State Public Service Authority, RB, Santee Cooper Series A, 5.50%, 1/01/38

 

 

600

 

 

643,860

 









Texas — 2.8%

 

 

 

 

 

 

 

Northside ISD, Texas, GO, School Building, 5.13%, 6/15/29

 

 

9,500

 

 

9,886,200

 









Utah — 1.4%

 

 

 

 

 

 

 

Utah Transit Authority, Utah, RB, Series A (FSA), 5.00%, 6/15/36

 

 

5,000

 

 

5,150,200

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 









Virginia — 0.1%

 

 

 

 

 

 

 

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

 

$

400

 

$

414,916

 









Washington — 1.0%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation Authority, Washington, RB, Series A (FSA), 5.00%, 11/01/32

 

 

3,494

 

 

3,574,017

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 30.2%

 

 

 

 

 

107,371,921

 









Total Long-Term Investments
(Cost — $548,864,912) — 152.7%

 

 

 

 

 

542,616,265

 










 

 

 

 

 

 

 

 


 

Short-Term Securities

 

 

 

 

 

 

 









New York — 1.2%

 

 

 

 

 

 

 

City of New York New York, GO, VRDN, Sub-Series A-6 (FSA), 0.12%,
9/01/09 (f)

 

 

4,200

 

 

4,200,000

 










 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 









Money Market — 1.2%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.22% (g)(h)

 

 

4,401,744

 

 

4,401,744

 









Total Short-Term Securities
(Cost — $8,601,744) — 2.4%

 

 

 

 

 

8,601,744

 









Total Investments (Cost — $557,466,656*) — 155.1%

 

 

 

 

 

551,218,009

 

Other Assets Less Liabilities — 0.1%

 

 

 

 

 

266,631

 

Liability for Trust Certificates, Including Interest Expense and Fees
Payable — (16.6)%

 

 

 

 

 

(58,892,821

)

Preferred Shares, at Redemption Value — (38.6)%

 

 

 

 

 

(137,257,720

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

355,334,099

 

 

 

 

 

 





 

 

 


*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

499,269,892

 

 

 




Gross unrealized appreciation

 

$

21,096,417

 

Gross unrealized depreciation

 

 

(27,874,296

)

 

 




Net unrealized depreciation

 

$

(6,777,879

)

 

 





 

 

(a)

When-issued security.


 

 

 

 

 

 

 

 









Counterparty

 

Market Value

 

Unrealized
Appreciation

 









Oppenheimer & Co., Inc.

 

$

543,590

 

$

16,621

 

Siebert Brandford Shank & Co. LLC

 

$

227,790

 

$

6,965

 

Morgan Keegan & Co., Inc.

 

$

1,897,491

 

$

50,286

 

Prager, Sealy & Co. LLC

 

$

1,222,836

 

$

16,836

 










 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(d)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(e)

Securities represent bonds transferred to tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(f)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.


 

 

 

See Notes to Financial Statements.




14

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

 

Schedule of Investments (concluded)

BlackRock Insured Municipal Income Trust (BYM)


 

 

(g)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 

 

 









 

Affiliate

 

Net
Activity

 

Income

 

 









 

FFI Institutional Tax-Exempt Fund

 

$

240,680

 

$

72,258

 

 










 

 

 

(h)

Represents the current yield as of report date.

 

 

Effective September 1,2008,the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of August 31, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 






 

Valuation Inputs

 

Investments in
Securities

 

 






 

 

 

 

Assets

 

 

 

 




 

Level 1 — Short-Term Securities

 

$

4,401,744

 

 

Level 2:

 

 

 

 

 

Long-Term Investments1

 

 

542,616,265

 

 

Short-Term Securities

 

 

4,200,000

 

 

 

 




 

Total Level 2

 

 

546,816,265

 

 

 

 




 

Level 3

 

 

 

 

 

 




 

Total

 

$

551,218,009

 

 

 

 





 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

AUGUST 31, 2009

15



 

 


 

Schedule of Investments August 31, 2009

BlackRock Insured Municipal Income Investment Trust (BAF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 0.4%

 

 

 

 

 

 

 









Health — 0.4%

 

 

 

 

 

 

 

Birmingham Alabama Special Care Facilities Financing Authority, RB, Health Care Facilities, Children’s Hospital (AGC), 6.00%, 6/01/39 (a)

 

$

490

 

$

507,351

 









Total Municipal Bonds in Alabama

 

 

 

 

 

507,351

 









 

 

 

 

 

 

 

 









California — 5.3%

 

 

 

 

 

 

 









County/City/Special District/School District — 3.2%

 

 

 

 

 

 

 

Los Angeles Municipal Improvement Corp., RB, Real Property, Series B (AGC), 5.50%, 4/01/39

 

 

3,810

 

 

3,870,769

 









Transportation — 1.1%

 

 

 

 

 

 

 

County of Sacramento California, RB, Senior, Series A (AGC), 5.50%, 7/01/41

 

 

1,400

 

 

1,404,060

 









Utilities — 1.0%

 

 

 

 

 

 

 

San Diego Public Facilities Financing Authority, RB, Series B (AGC), 5.38%, 8/01/34

 

 

1,125

 

 

1,170,653

 









Total Municipal Bonds in California

 

 

 

 

 

6,445,482

 









 

 

 

 

 

 

 

 









Colorado — 1.3%

 

 

 

 

 

 

 









Health — 1.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Hospital, NCMC Inc. Project, Series B (FSA), 6.00%, 5/15/26

 

 

1,425

 

 

1,524,351

 









Total Municipal Bonds in Colorado

 

 

 

 

 

1,524,351

 









 

 

 

 

 

 

 

 









Florida — 49.1%

 

 

 

 

 

 

 









County/City/Special District/School District — 37.2%

 

 

 

 

 

 

 

City of Jacksonville Florida, RB, Series B (AMBAC), 5.00%, 10/01/26

 

 

5,000

 

 

5,039,550

 

City of Miami Florida, RB, Miami Revenues (MBIA), 5.25%, 1/01/28

 

 

5,035

 

 

5,136,757

 

County of Miami-Dade Florida, RB (MBIA) (b):

 

 

 

 

 

 

 

CAB, Sub-Series A, 5.26%, 10/01/39

 

 

10,000

 

 

1,219,500

 

CAB, Sub-Series A, 5.26%, 10/01/40

 

 

10,000

 

 

1,130,400

 

Sub-Series B, 5.62%, 10/01/31

 

 

26,935

 

 

6,314,103

 

County of Orange Florida, RB, Series B (MBIA), 5.13%, 1/01/32

 

 

7,480

 

 

7,507,826

 

County of Orange Florida, Refunding RB (AMBAC), 5.00%, 10/01/29

 

 

1,600

 

 

1,617,488

 

Hillsborough County School Board, COP, Series A (MBIA), 5.00%, 7/01/25

 

 

2,945

 

 

2,951,243

 

Lake County School Board, COP, Series A (AMBAC), 5.00%, 7/01/28

 

 

3,500

 

 

3,420,445

 

Pasco County School Board, COP, Series A (MBIA), 5.00%, 8/01/27

 

 

2,765

 

 

2,777,443

 

Village Center Community Development District Recreational Revenue, RB, Series A (MBIA), 5.00%, 11/01/32

 

 

10,000

 

 

8,534,100

 

 

 

 

 

 




 

 

 

 

 

 

45,648,855

 









Health — 3.4%

 

 

 

 

 

 

 

Highlands County Health Facilities Authority, RB, Hospital, Adventist, Sunbelt, Series A, 6.00%, 11/15/11 (c)

 

 

3,705

 

 

4,132,149

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Florida (concluded)

 

 

 

 

 

 

 









Transportation — 1.1%

 

 

 

 

 

 

 

Hillsborough County Aviation Authority, Florida, RB, Series D (AGC), 5.50%, 10/01/26

 

$

1,295

 

$

1,392,630

 









Utilities — 7.4%

 

 

 

 

 

 

 

City of Palm Bay Florida, RB, Improvement (MBIA) (b):

 

 

 

 

 

 

 

5.12%, 10/01/28

 

 

1,850

 

 

618,640

 

5.53%, 10/01/31

 

 

4,355

 

 

1,159,867

 

County of Saint Johns Florida, RB (FSA), 5.00%, 10/01/37

 

 

1,290

 

 

1,284,156

 

Sunrise Fl Excise Tax & Special Assessment, Refunding RB (AMBAC), 5.00%, 10/01/28

 

 

5,000

 

 

5,021,550

 

Tohopekaliga Water Authority, RB, Series B (FSA), 5.00%, 10/01/23

 

 

1,000

 

 

1,026,450

 

 

 

 

 

 




 

 

 

 

 

 

9,110,663

 









Total Municipal Bonds in Florida

 

 

 

 

 

60,284,297

 









 

 

 

 

 

 

 

 









Illinois — 4.2%

 

 

 

 

 

 

 









Education — 0.8%

 

 

 

 

 

 

 

Chicago Board of Education, Illinois, GO, Chicago School Reform Board, Series A (MBIA), 5.50%, 12/01/26

 

 

900

 

 

1,002,510

 









Transportation — 1.2%

 

 

 

 

 

 

 

Chicago Transit Authority, RB, Federal Transit Administration Section 5309, Series A (AGC), 6.00%, 6/01/26

 

 

1,300

 

 

1,472,406

 









Utilities — 2.2%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB, Second Lien (MBIA), 5.50%, 1/01/30

 

 

975

 

 

1,037,995

 

Illinois Municipal Electric Agency, RB, Series A (MBIA), 5.25%, 2/01/28

 

 

1,560

 

 

1,600,373

 

 

 

 

 

 




 

 

 

 

 

 

2,638,368

 









Total Municipal Bonds in Illinois

 

 

 

 

 

5,113,284

 









 

 

 

 

 

 

 

 









Indiana — 1.2%

 

 

 

 

 

 

 









Utilities — 1.2%

 

 

 

 

 

 

 

Indianapolis Local Public Improvement Bond Bank, RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38

 

 

1,415

 

 

1,469,294

 









Total Municipal Bonds in Indiana

 

 

 

 

 

1,469,294

 









 

 

 

 

 

 

 

 









Iowa — 0.9%

 

 

 

 

 

 

 









Health — 0.9%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Iowa Health System (AGC), 5.25%, 2/15/29

 

 

1,125

 

 

1,131,637

 









Total Municipal Bonds in Iowa

 

 

 

 

 

1,131,637

 









 

 

 

 

 

 

 

 









Kentucky — 0.8%

 

 

 

 

 

 

 









Utilities — 0.8%

 

 

 

 

 

 

 

Kentucky Municipal Power Agency, RB, Prairie State Project, Series A (BHAC), 5.25%, 9/01/42

 

 

1,000

 

 

1,024,260

 









Total Municipal Bonds in Kentucky

 

 

 

 

 

1,024,260

 










 

 

 

See Notes to Financial Statements.




16

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

Schedule of Investments (continued)

BlackRock Insured Municipal Income Investment Trust (BAF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Louisiana — 2.7%

 

 

 

 

 

 

 









State — 2.3%

 

 

 

 

 

 

 

Louisiana State Citizens Property Insurance Corp., RB, Series C-3 (AGC), 6.13%, 6/01/25

 

$

2,510

 

$

2,782,762

 









Transportation — 0.4%

 

 

 

 

 

 

 

New Orleans Aviation Board, Louisiana, Refunding RB, Restructuring Garbs (ACG):

 

 

 

 

 

 

 

Series A-1, 6.00%, 1/01/23

 

 

375

 

 

407,036

 

Series A-2, 6.00%, 1/01/23

 

 

150

 

 

162,815

 

 

 

 

 

 




 

 

 

 

 

 

569,851

 









Total Municipal Bonds in Louisiana

 

 

 

 

 

3,352,613

 









 

 

 

 

 

 

 

 









Michigan — 14.7%

 

 

 

 

 

 

 









Health — 1.1%

 

 

 

 

 

 

 

Royal Oak Hospital Finance Authority, Michigan, RB, William Beaumont Hospital, 8.25%, 9/01/39

 

 

1,205

 

 

1,377,026

 









State — 0.4%

 

 

 

 

 

 

 

Michigan State Building Authority Revenue, Refunding RB, Facilities Program (AGC), Series I:

 

 

 

 

 

 

 

5.25%, 10/15/24

 

 

160

 

 

163,904

 

5.25%, 10/15/25

 

 

300

 

 

305,643

 

 

 

 

 

 




 

 

 

 

 

 

469,547

 









Utilities — 13.2%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Second Lien:

 

 

 

 

 

 

 

Series B (MBIA), 5.50%, 7/01/29

 

 

1,790

 

 

1,764,367

 

Series B (FSA), 6.25%, 7/01/36

 

 

1,700

 

 

1,804,975

 

Series B (FSA), 7.00%, 7/01/36

 

 

200

 

 

224,472

 

Series E (BHAC), 5.75%, 7/01/31

 

 

2,300

 

 

2,411,734

 

City of Detroit Michigan, RB, Senior Lien, Series B:

 

 

 

 

 

 

 

(FSA), 7.50%, 7/01/33

 

 

515

 

 

607,849

 

5.50%, 7/01/35

 

 

4,750

 

 

4,883,427

 

City of Detroit Michigan, RB, System, Second Lien, Series A (BHAC), 5.50%, 7/01/36

 

 

2,330

 

 

2,373,874

 

City of Detroit Michigan, Refunding RB, Senior Lien, Series C-1 (FSA), 7.00%, 7/01/27

 

 

1,800

 

 

2,083,626

 

 

 

 

 

 

 

16,154,324

 









Total Municipal Bonds in Michigan

 

 

 

 

 

18,000,897

 









 

 

 

 

 

 

 

 









Minnesota — 5.2%

 

 

 

 

 

 

 









Health — 5.2%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38

 

 

5,680

 

 

6,395,680

 









Total Municipal Bonds in Minnesota

 

 

 

 

 

6,395,680

 









 

 

 

 

 

 

 

 









New Jersey — 3.7%

 

 

 

 

 

 

 









Health — 1.1%

 

 

 

 

 

 

 

New Jersey Health Care Facilities Financing Authority, RB, Virtua Health (AGC), 5.50%, 7/01/38

 

 

1,300

 

 

1,342,770

 









State — 0.9%

 

 

 

 

 

 

 

New Jersey EDA, RB, School Facilities Construction, Series Z (AGC), 6.00%, 12/15/34

 

 

1,000

 

 

1,108,930

 









Transportation — 1.7%

 

 

 

 

 

 

 

New Jersey Transportation Trust Fund Authority, New Jersey, RB, Transportation System, Series A (AGC), 5.50%, 12/15/38

 

 

2,000

 

 

2,130,000

 









Total Municipal Bonds in New Jersey

 

 

 

 

 

4,581,700

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 









New York — 2.9%

 

 

 

 

 

 

 









County/City/Special District/School District — 2.9%

 

 

 

 

 

 

 

New York City Transitional Finance Authority, RB, Fiscal 2009:

 

 

 

 

 

 

 

Series S-3, 5.25%, 1/15/39

 

$

900

 

$

920,673

 

Series S-4 (AGC), 5.50%, 1/15/29

 

 

2,465

 

 

2,636,096

 









Total Municipal Bonds in New York

 

 

 

 

 

3,556,769

 









 

 

 

 

 

 

 

 









Texas — 15.3%

 

 

 

 

 

 

 









County/City/Special District/School District — 5.1%

 

 

 

 

 

 

 

City of Dallas Texas, Refunding RB, Improvement (AGC), 5.25%, 8/15/38

 

 

800

 

 

814,888

 

Frisco Independent School District, Texas, GO, School Building (AGC):

 

 

 

 

 

 

 

5.38%, 8/15/39

 

 

1,415

 

 

1,475,350

 

5.50%, 8/15/41

 

 

3,365

 

 

3,536,009

 

Lubbock Copper Texas Independent School District, GO, School Building (AGC), 5.75%, 2/15/42

 

 

405

 

 

424,513

 

 

 

 

 

 




 

 

 

 

 

 

6,250,760

 









Health — 1.3%

 

 

 

 

 

 

 

Harris County Health Facilities Development Corporation, Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31

 

 

500

 

 

547,225

 

Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC), 6.50%, 7/01/37

 

 

1,000

 

 

1,088,130

 

 

 

 

 

 




 

 

 

 

 

 

1,635,355

 









Transportation — 2.6%

 

 

 

 

 

 

 

North Texas Tollway Authority, Refunding RB, System, First Tier (AGC):

 

 

 

 

 

 

 

Series A, 5.75%, 1/01/40

 

 

1,500

 

 

1,578,930

 

Series K-1, 5.75%, 1/01/38

 

 

1,500

 

 

1,591,020

 

 

 

 

 

 




 

 

 

 

 

 

3,169,950

 









Utilities — 6.3%

 

 

 

 

 

 

 

City of Houston Texas, Refunding RB, First Lien, Series A (AGC):

 

 

 

 

 

 

 

Combined, 6.00%, 11/15/35

 

 

2,600

 

 

2,931,916

 

Combined, 6.00%, 11/15/36

 

 

2,215

 

 

2,496,814

 

First Lien, 5.38%, 11/15/38

 

 

1,000

 

 

1,038,610

 

Lower Colorado River Authority, Refunding RB (AGC), 5.50%, 5/15/36

 

 

1,270

 

 

1,317,269

 

 

 

 

 

 




 

 

 

 

 

 

7,784,609

 









Total Municipal Bonds in Texas

 

 

 

 

 

18,840,674

 









 

 

 

 

 

 

 

 









Virginia — 0.9%

 

 

 

 

 

 

 









State — 0.9%

 

 

 

 

 

 

 

Virginia Public School Authority, Virginia, RB, School Financing, 6.50%, 12/01/35

 

 

1,000

 

 

1,136,100

 









Total Municipal Bonds in Virginia

 

 

 

 

 

1,136,100

 









 

 

 

 

 

 

 

 









Puerto Rico — 1.2%

 

 

 

 

 

 

 









State — 1.2%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39

 

 

1,350

 

 

1,447,821

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

1,447,821

 









Total Municipal Bonds — 109.8%

 

 

 

 

 

134,812,210

 










 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

17



 

 


 

Schedule of Investments (concluded)

BlackRock Insured Municipal Income Investment Trust (BAF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (d)

 

Par
(000)

 

Value

 







District of Columbia — 0.7%

 

 

 

 

 

 

 









Utilities — 0.7%

 

 

 

 

 

 

 

District of Columbia Water & Sewer Authority, Refunding RB, Series A, 6.00%, 10/01/35

 

$

760

 

$

835,995

 









Total Municipal Bonds Transferred to Tender
Option Bond Trusts in District of Columbia

 

 

 

 

 

835,995

 

















Florida — 33.7%

 

 

 

 

 

 

 









County/City/Special District/School District — 18.6%

 

 

 

 

 

 

 

City of Jacksonville, Florida, RB, (MBIA):

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

3,930

 

 

3,997,989

 

5.00%, 10/01/31

 

 

9,500

 

 

9,548,119

 

Palm Beach County School Board, Florida, COP, Refunding, Series D (FSA), 5.00%, 8/01/28

 

 

9,190

 

 

9,234,112

 

 

 

 

 

 




 

 

 

 

 

 

22,780,220

 









State — 7.5%

 

 

 

 

 

 

 

Florida State Board of Education, GO, Public Education, Series A (FSA), 5.00%, 6/01/27

 

 

9,000

 

 

9,221,760

 









Utilities — 7.6%

 

 

 

 

 

 

 

County of Pinellas, Florida, RB (FSA), 5.00%, 10/01/32

 

 

9,500

 

 

9,371,424

 









Total Municipal Bonds Transferred to Tender
Option Bond Trusts in Florida

 

 

 

 

 

41,373,404

 

















Illinois — 2.5%

 

 

 

 

 

 

 









Transportation — 2.5%

 

 

 

 

 

 

 

Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33

 

 

2,999

 

 

3,186,560

 









Total Municipal Bonds Transferred to Tender
Option Bond Trusts in Illinois

 

 

 

 

 

3,186,560

 

















Kentucky — 0.8%

 

 

 

 

 

 

 









State — 0.8%

 

 

 

 

 

 

 

Kentucky State Property & Buildings Commission, Refunding RB, Project No 93 (AGC), 5.25%, 2/01/27

 

 

898

 

 

962,636

 









Total Municipal Bonds Transferred to Tender
Option Bond Trusts in Kentucky

 

 

 

 

 

962,636

 

















Nevada — 1.8%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.8%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/38

 

 

2,000

 

 

2,166,500

 









Total Municipal Bonds Transferred to Tender
Option Bond Trusts in Nevada

 

 

 

 

 

2,166,500

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 39.5%

 

 

 

 

 

48,525,095

 









Total Long-Term Investments
(Cost — $183,544,966) — 149.3%

 

 

 

 

 

183,337,305

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








CMA Florida Municipal Money Fund, 0.04% (e)(f)

 

 

5

 

 

5

 

FFI Institutional Tax-Exempt Fund, 0.22% (e)(f)

 

 

9,202,751

 

 

9,202,751

 









Total Short-Term Securities
(Cost — $9,202,756) — 7.5%

 

 

 

 

 

9,202,756

 









Total Investments (Cost — $192,747,722*) — 156.8%

 

 

 

 

 

192,540,061

 

Other Assets Less Liabilities — 1.1%

 

 

 

 

 

1,394,176

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (23.5)%

 

 

 

 

 

(28,830,361

)

Preferred Shares, at Redemption Value — (34.4)%

 

 

 

 

 

(42,279,321

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

122,824,555

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

164,405,343

 

 

 




Gross unrealized appreciation

 

$

4,937,311

 

Gross unrealized depreciation

 

 

(5,499,950

)

 

 




Net unrealized depreciation

 

$

(562,639

)

 

 





 

 

(a)

When-issued security.


 

 

 

 

 

 

 

 









 

 

Market

 

Unrealized

 

Counterparty

 

Value

 

Appreciation

 







Wells Fargo Bank NA

 

 

$129,426

 

 

$4,545

 

Morgan Keegan & Co., Inc.

 

 

$248,499

 

 

$8,727

 

Raymond C Forbes & Co., Inc.

 

 

$129,426

 

 

$4,545

 










 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(d)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(e)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 









 

 

Net

 

 

 

 

Affiliate

 

Activity

 

Income

 







CMA Florida Municipal Money Fund

 

$

(4,278,740

)

$

29,260

 

FFI Institutional Tax-Exempt Fund

 

$

9,202,751

 

$

6,767

 










 

 

 

(f)

Represents the current yield as of report date.

 

 

 

For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine sector sub-classifications for reporting ease.

 

 

 

Effective September 1,2008,the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of August 31, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 






 

 

Investments in

 

Valuation Inputs

 

Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

9,202,756

 

Level 2 — Long-Term Investments1

 

 

183,337,305

 

Level 3

 

 

 

 

 




Total

 

$

192,540,061

 

 

 





 

 

 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.




18

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

 

Schedule of Investments August 31, 2009

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

Value

 








Alabama — 7.5%

 

 

 

 

 

 

 

Birmingham Alabama Special Care Facilities Financing Authority, RB, Health Care Facilities, Children’s Hospital (AGC), 6.00%, 6/01/39 (a)

 

$

850

 

$

880,098

 

Birmingham Special Care Facilities Financing Authority, RB, Children’s Hospital (AGC), 6.00%, 6/01/34 (a)

 

 

1,150

 

 

1,192,826

 

Huntsville Health Care Authority, Alabama, RB, Series A, 5.75%, 6/01/31 (b)

 

 

7,500

 

 

8,182,575

 

 

 

 

 

 




 

 

 

 

 

 

10,255,499

 









Arizona — 6.9%

 

 

 

 

 

 

 

City of Goodyear Arizona, GO (FSA), 4.25%, 7/01/37

 

 

1,250

 

 

1,130,725

 

Glendale Municipal Property Corp., Arizona, RB, Series A (FSA), 4.50%, 7/01/32

 

 

3,655

 

 

3,548,128

 

Mohave County Unified School District No. 20 Kingman, GO, School Improvement, Project 2006, Series C (AGC), 5.00%, 7/01/26

 

 

200

 

 

211,284

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

1,500

 

 

1,291,275

 

5.00%, 12/01/37

 

 

2,065

 

 

1,722,024

 

San Luis Facility Development Corp., RB, Senior Lien Project, Regional Detention Center:

 

 

 

 

 

 

 

6.25%, 5/01/15

 

 

300

 

 

272,472

 

7.00%, 5/01/20

 

 

300

 

 

269,571

 

7.25%, 5/01/27

 

 

600

 

 

523,080

 

University Medical Center Corp., Arizona, RB, 6.50%, 7/01/39

 

 

500

 

 

514,945

 

 

 

 

 

 




 

 

 

 

 

 

9,483,504

 









California — 13.2%

 

 

 

 

 

 

 

California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, 6.30%, 6/01/55 (c)

 

 

4,500

 

 

52,020

 

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

 

 

2,835

 

 

2,382,307

 

California State Department of Veterans Affairs, California, RB, Series B, AMT, 5.25%, 12/01/37

 

 

5,000

 

 

4,287,300

 

Carlsbad Unified School District, GO, Election, Series B, 6.09%, 5/01/34 (d)

 

 

1,000

 

 

584,310

 

Dinuba Unified School District, GO, Election of 2006 (FSA):

 

 

 

 

 

 

 

5.63%, 8/01/31

 

 

250

 

 

260,895

 

5.75%, 8/01/33

 

 

500

 

 

521,860

 

Hartnell Community College District, California, GO, CAB, Election of 2002, Series D, 5.87%, 8/01/34 (a)(d)

 

 

1,650

 

 

695,607

 

San Diego Community College District, California, GO, CAB, Election of 2002, 6.13%, 8/01/19 (d)

 

 

2,800

 

 

1,616,076

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

5.75%, 4/01/31

 

 

2,000

 

 

2,089,780

 

6.50%, 4/01/33

 

 

1,950

 

 

2,156,369

 

State of California, GO, Veterans, AMT, 5.05%, 12/01/36

 

 

1,000

 

 

854,200

 

University of California, RB, Limited Project, Series B, 4.75%, 5/15/38

 

 

1,160

 

 

1,142,043

 

Val Verde Unified School District, California, Special Tax, Refunding, Junior Lien, 6.25%, 10/01/28

 

 

1,585

 

 

1,442,160

 

 

 

 

 

 




 

 

 

 

 

 

18,084,927

 









Colorado — 2.1%

 

 

 

 

 

 

 

City of Colorado Springs Colorado, RB, Subordinate Lien, Improvement, Series C (FSA), 5.00%, 11/15/45

 

 

635

 

 

640,004

 

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

 

 

1,070

 

 

1,160,137

 

Colorado Health Facilities Authority, RB, Series B (FSA), 5.25%, 3/01/36

 

 

1,085

 

 

1,096,751

 

 

 

 

 

 




 

 

 

 

 

 

2,896,892

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

Value

 








District of Columbia — 8.5%

 

 

 

 

 

 

 

District of Columbia, RB, Friendship Public Charter School Inc. (ACA), 5.25%, 6/01/33

 

$

595

 

$

387,202

 

District of Columbia, TAN, Gallery Place Project (FSA), 5.40%, 7/01/31

 

 

6,000

 

 

6,092,640

 

District of Columbia Tobacco Settlement Financing Corp., RB, Asset Backed Bonds, 6.75%, 5/15/40

 

 

5,580

 

 

5,186,052

 

 

 

 

 

 




 

 

 

 

 

 

11,665,894

 









Florida — 13.6%

 

 

 

 

 

 

 

Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai Medical Center Florida, 6.75%, 11/15/21

 

 

2,420

 

 

2,072,246

 

Orange County Health Facilities Authority, RB, Hospital, Adventist Health System, 5.63%, 11/15/32 (b)

 

 

7,760

 

 

8,661,867

 

Palm Beach County HFA, RB, Housing, Indian Trace Apartments, Series A, AMT (FSA), 5.63%, 1/01/44

 

 

7,255

 

 

7,255,145

 

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

 

 

955

 

 

687,151

 

 

 

 

 

 




 

 

 

 

 

 

18,676,409

 









Georgia — 2.2%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB (FSA), 5.00%, 11/01/37

 

 

3,000

 

 

2,999,790

 









Idaho — 1.8%

 

 

 

 

 

 

 

Idaho Health Facilities Authority, RB, Trinity Health Group, Series B, 6.25%, 12/01/33

 

 

1,750

 

 

1,866,200

 

Idaho Housing & Finance Association, RB, Grant & Revenue Anticipation, Federal Highway Trust, Series A, 5.00%, 7/15/27

 

 

600

 

 

635,448

 

 

 

 

 

 




 

 

 

 

 

 

2,501,648

 









Illinois — 9.0%

 

 

 

 

 

 

 

CenterPoint Intermodal Center Program Trust, TAN, 144A, 8.00%, 6/15/23 (e)

 

 

1,150

 

 

604,037

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Friendship Village Schaumburg, Series A, 5.63%, 2/15/37

 

 

420

 

 

291,379

 

Illinois Rush University Medical Center, Series C, 6.63%, 11/01/39

 

 

650

 

 

663,163

 

MJH Education Assistance IV, Sub-Series B, 5.38%, 6/01/35 (f)(g)

 

 

425

 

 

41,761

 

Monarch Landing Inc. Facilities, Series A, 7.00%, 12/01/37

 

 

720

 

 

372,629

 

Illinois Health Facilities Authority, RB, Lake Forest Hospital, Series A, 5.75%, 7/01/29

 

 

6,000

 

 

5,753,040

 

Village of Bolingbrook Illinois, GO, Series B (MBIA), 6.22%, 1/01/36 (c)

 

 

23,065

 

 

4,585,783

 

 

 

 

 

 




 

 

 

 

 

 

12,311,792

 









Indiana — 1.4%

 

 

 

 

 

 

 

Multifamily Housing Revenue Bond Pass-Through Certificates, RB, Series 1, Canterbury Housing Apartments, Indiana, AMT, 5.90%, 12/01/34

 

 

1,880

 

 

1,911,020

 









Iowa — 1.8%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Series A (AGC), 5.63%, 8/15/37

 

 

2,400

 

 

2,426,352

 









Kansas — 2.9%

 

 

 

 

 

 

 

Wichita Airport Authority, RB, Special, Cessna Citation Service Center, Series A, AMT, 6.25%, 6/15/32

 

 

5,000

 

 

3,964,200

 









Kentucky — 0.4%

 

 

 

 

 

 

 

Kentucky Economic Development Finance Authority, Kentucky, RB, Louisville Arena, Sub-Series A-1 (AGC), 6.00%, 12/01/38

 

 

500

 

 

523,850

 










 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

19



 

 


 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

Value

 








Maryland — 3.2%

 

 

 

 

 

 

 

County of Frederick Maryland, Special Tax, Urbana Community Development Authority, Sub-Series B, 6.25%, 7/01/30

 

$

2,820

 

$

2,162,348

 

Maryland Community Development Administration, RB, Residential, Series L, AMT, 4.95%, 9/01/38

 

 

1,645

 

 

1,525,820

 

Maryland Health & Higher Educational Facilities Authority, RB, FHA Insured Mortgage, Western Maryland Health, Series A (MBIA), 4.75%, 7/01/36

 

 

750

 

 

688,230

 

 

 

 

 

 




 

 

 

 

 

 

4,376,398

 









Michigan — 3.2%

 

 

 

 

 

 

 

Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.25%, 10/15/38

 

 

1,250

 

 

1,361,338

 

Michigan State Hospital Finance Authority, Michigan, Refunding RB, Henry Ford Health System, Series A, 5.25%, 11/15/46

 

 

1,065

 

 

858,017

 

Royal Oak Hospital Finance Authority, Michigan, RB, William Beaumont Hospital, 8.25%, 9/01/39

 

 

1,950

 

 

2,228,382

 

 

 

 

 

 




 

 

 

 

 

 

4,447,737

 









Minnesota — 4.4%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38

 

 

5,350

 

 

6,024,100

 









Mississippi — 3.2%

 

 

 

 

 

 

 

Mississippi Development Bank GO RB, Jackson County Limited Tax Note (AGC), 5.50%, 7/01/32

 

 

1,750

 

 

1,806,210

 

University of Southern Mississippi, RB, Campus Facilities Improvement Project, 5.38%, 9/01/36

 

 

2,500

 

 

2,625,275

 

 

 

 

 

 




 

 

 

 

 

 

4,431,485

 









Multi-State — 8.3%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 7.20%, 11/15/14 (e)(i)

 

 

10,500

 

 

11,361,630

 









Nebraska — 1.3%

 

 

 

 

 

 

 

Omaha Public Power District, RB, System, Series A, 4.75%, 2/01/44

 

 

1,760

 

 

1,710,526

 









Nevada — 1.5%

 

 

 

 

 

 

 

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

 

 

1,325

 

 

1,271,960

 

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

 

 

1,345

 

 

765,157

 

 

 

 

 

 




 

 

 

 

 

 

2,037,117

 









New Jersey — 14.8%

 

 

 

 

 

 

 

Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37

 

 

915

 

 

183,476

 

New Jersey EDA, RB, Cigarette Tax:

 

 

 

 

 

 

 

(Radian), 5.50%, 6/15/31

 

 

1,500

 

 

1,335,915

 

5.50%, 6/15/24

 

 

3,710

 

 

3,436,833

 

New Jersey EDA, RB, Continental Airlines Inc. Project, AMT, 7.20%, 11/15/30

 

 

3,000

 

 

2,667,330

 

New Jersey EDA, RB, Motor Vehicle Surcharge, Series A (MBIA), 5.00%, 7/01/27

 

 

1,000

 

 

1,009,330

 

New Jersey EDA, Refunding RB, First Mortgage, Winchester, Series A, 5.80%, 11/01/31

 

 

1,500

 

 

1,357,905

 

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

 

 

7,500

 

 

6,122,250

 

New Jersey Educational Facilities Authority, Refunding RB, University of Medicine & Dentistry, Series B:

 

 

 

 

 

 

 

7.13%, 12/01/23

 

 

630

 

 

696,862

 

7.50%, 12/01/32

 

 

800

 

 

880,672

 

New Jersey Health Care Facilities Financing Authority, RB, Virtua Health (AGC), 5.50%, 7/01/38

 

 

1,500

 

 

1,549,350

 

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

 

 

1,000

 

 

1,074,380

 

 

 

 

 

 




 

 

 

 

 

 

20,314,303

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

Value

 








New York — 10.9%

 

 

 

 

 

 

 

Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35

 

$

455

 

$

285,749

 

Hudson Yards Infrastructure Corp., RB, Series A (FGIC), 5.00%, 2/15/47

 

 

1,000

 

 

892,270

 

Long Island Power Authority, RB:

 

 

 

 

 

 

 

General, Series C (CIFG), 5.25%, 9/01/29

 

 

1,500

 

 

1,582,200

 

Series A, 6.25%, 4/01/33

 

 

300

 

 

337,752

 

Metropolitan Transportation Authority, RB, Series B, 5.00%, 11/15/34

 

 

800

 

 

807,584

 

New York City Housing Development Corp., RB, Series A, AMT, 5.50%, 11/01/34

 

 

3,000

 

 

2,975,520

 

New York City Industrial Development Agency, RB:

 

 

 

 

 

 

 

American Airlines, JFK International Airport, AMT, 7.75%, 8/01/31

 

 

3,165

 

 

2,688,383

 

Queens Baseball Stadium, PILOT (AGC), 6.50%, 1/01/46

 

 

700

 

 

775,838

 

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

 

 

500

 

 

486,820

 

New York State Dormitory Authority, RB:

 

 

 

 

 

 

 

5.83%, 7/01/39 (d)

 

 

700

 

 

540,925

 

North Shore Long Island Jewish Health System, Series A, 5.50%, 5/01/37 (a)

 

 

1,175

 

 

1,153,603

 

Rochester Institute Technology, Series A, 6.00%, 7/01/33

 

 

1,000

 

 

1,066,950

 

University Rochester, Series A, 5.13%, 7/01/39

 

 

250

 

 

254,135

 

Port Authority of New York & New Jersey, RB, Consolidated, 152nd, AMT,
5.75%, 11/01/30

 

 

1,000

 

 

1,050,000

 

 

 

 

 

 




 

 

 

 

 

 

14,897,729

 









North Carolina — 2.6%

 

 

 

 

 

 

 

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

 

 

2,945

 

 

1,681,948

 

North Carolina Medical Care Commission, North Carolina, RB:

 

 

 

 

 

 

 

University Health System, Series D, 6.25%, 12/01/33

 

 

800

 

 

858,552

 

WakeMed, Series A (AGC), 5.88%, 10/01/38

 

 

1,000

 

 

1,040,620

 

 

 

 

 

 




 

 

 

 

 

 

3,581,120

 









Oklahoma — 1.1%

 

 

 

 

 

 

 

Tulsa Municipal Airport Trust Trustees, Oklahoma, Refunding RB, Series A, AMT, 7.75%, 6/01/35 (h)

 

 

1,725

 

 

1,528,229

 









Oregon — 1.3%

 

 

 

 

 

 

 

Multifamily Housing Revenue Bond Pass-Through Certificates, RB, Series 6, AMT, 6.05%, 11/01/34

 

 

530

 

 

533,535

 

Oregon Health & Science University, RB, Series A, 5.75%, 7/01/39

 

 

1,250

 

 

1,285,813

 

 

 

 

 

 




 

 

 

 

 

 

1,819,348

 









Pennsylvania — 1.0%

 

 

 

 

 

 

 

Pennsylvania Economic Development Financing Authority, RB, Reliant Energy, Series A-12-22-04, AMT, 6.75%, 12/01/36

 

 

1,455

 

 

1,412,863

 









Puerto Rico — 1.5%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37

 

 

2,000

 

 

2,050,020

 










 

 

 

See Notes to Financial Statements.




20

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Trust (BBK)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par 
(000)

 

Value

 








Rhode Island — 1.5%

 

 

 

 

 

 

 

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

 

$

1,000

 

$

1,126,290

 

Rhode Island State & Providence Plantations, COP, Series C, School For The Deaf (AGC), 5.38%, 4/01/28

 

 

900

 

 

911,727

 

 

 

 

 

 




 

 

 

 

 

 

2,038,017

 









Tennessee — 0.4%

 

 

 

 

 

 

 

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

 

 

525

 

 

532,560

 









Texas — 17.6%

 

 

 

 

 

 

 

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B:

 

 

 

 

 

 

 

7.13%, 12/01/31

 

 

500

 

 

547,225

 

7.25%, 12/01/35

 

 

1,750

 

 

1,916,337

 

Harris County-Houston Sports Authority, RB, CAB, Senior Lien, Series G (MBIA), 6.17%, 11/15/41 (c)

 

 

11,690

 

 

1,032,110

 

Lower Colorado River Authority, Refunding RB & Improvement (MBIA),
5.00%, 5/15/31 (b)

 

 

15

 

 

16,868

 

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

 

 

1,500

 

 

1,583,175

 

Multifamily Housing Revenue Bond Pass-Through Certificates, RB, Series 9, Copperwood Ranch Apartments, AMT, 5.95%, 11/01/35

 

 

2,480

 

 

2,524,318

 

San Antonio Energy Acquisition Public Facility Corp., RB, Gas Supply Revenue:

 

 

 

 

 

 

 

5.50%, 8/01/23

 

 

1,775

 

 

1,783,485

 

5.50%, 8/01/24

 

 

1,620

 

 

1,624,828

 

Texas State Turnpike Authority, RB, (AMABC):

 

 

 

 

 

 

 

CAB, 6.08%, 8/15/35 (c)

 

 

60,000

 

 

11,178,000

 

First Tier, Series A, 5%, 8/15/42

 

 

2,115

 

 

1,852,761

 

 

 

 

 

 




 

 

 

 

 

 

24,059,107

 









Washington — 1.9%

 

 

 

 

 

 

 

Washington Health Care Facilities Authority, Washington, RB:

 

 

 

 

 

 

 

MultiCare Health System, Series B (AGC), 6.00%, 8/15/39

 

 

1,400

 

 

1,465,534

 

Providence Health Care Services, Series A (MBIA), 4.63%, 10/01/34

 

 

1,325

 

 

1,193,997

 

 

 

 

 

 




 

 

 

 

 

 

2,659,531

 









West Virginia — 0.7%

 

 

 

 

 

 

 

West Virginia State Hospital Finance Authority West Virginia, RB, Refunding & Improvement Charleston A, 5.63%, 9/01/32 (a)

 

 

1,000

 

 

982,910

 









Wisconsin — 1.0%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, RB, Aurora Health Care, 6.40%, 4/15/33

 

 

1,350

 

 

1,348,245

 









Wyoming — 0.9%

 

 

 

 

 

 

 

Sweetwater County, RB, Wyoming Pollution Control Revenue, Refunding,
5.25%, 7/15/26

 

 

1,200

 

 

1,222,848

 









Total Municipal Bonds — 153.6%

 

 

 

 

 

210,537,600

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (j)

 

 

Par 
(000)

 

Value

 









Colorado — 2.7%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic Health, Series C7 (FSA), 5.00%, 9/01/36

 

$

3,750

 

$

3,775,988

 









Massachusetts — 1.1%

 

 

 

 

 

 

 

Massachusetts Water Resources Authority, Refunding RB, Series A,
5.00%, 8/01/41

 

 

1,450

 

 

1,461,745

 









New York — 2.3%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

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

 

 

405

 

 

433,493

 

Fiscal 2009, Series A, 5.75%, 6/15/40

 

 

450

 

 

490,828

 

New York State Dormitory Authority, RB, New York University, Series A,
5.00%, 7/01/38

 

 

2,199

 

 

2,233,781

 

 

 

 

 

 




 

 

 

 

 

 

3,158,102

 









Ohio — 2.4%

 

 

 

 

 

 

 

County of Montgomery, Ohio, RB, Catholic Health, Series C1, (FSA),
5.00%, 10/01/41

 

 

1,260

 

 

1,218,911

 

Ohio State Higher Educational Facility Commission, Refunding RB, Hospital, Cleveland Clinic, Series A, 5.25%, 01/01/33

 

 

2,000

 

 

2,040,420

 

 

 

 

 

 




 

 

 

 

 

 

3,259,331

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 8.5%

 

 

 

 

 

11,655,166

 









Total Long-Term Investments
(Cost — $227,987,534) — 162.1%

 

 

 

 

 

222,192,766

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.22% (k)(l)

 

 

3,400,718

 

 

3,400,718

 









Total Short-Term Securities
(Cost — $3,400,718) — 2.5%

 

 

 

 

 

3,400,718

 









Total Investments (Cost — $231,388,252*) — 164.6%

 

 

 

 

 

225,593,484

 

Liabilities in Excess of Other Assets — (2.0)%

 

 

 

 

 

(2,752,476

)

Liability for Trust Certificates, Including Interest Expense and Fees
Payable — (4.3)%

 

 

 

 

 

(5,905,618

)

Preferred Shares, at Redemption Value — (58.3)%

 

 

 

 

 

(79,905,632

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

137,029,758

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

21



 

 


 

 

Schedule of Investments (concluded)

BlackRock Municipal Bond Trust (BBK)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

224,770,976

 

 

 

 




 

Gross unrealized appreciation

 

$

9,430,484

 

 

Gross unrealized depreciation

 

 

(14,507,124

)

 

 

 




 

Net unrealized depreciation

 

$

(5,076,640

)

 

 

 





 

 

(a)

When-issued security.


 

 

 

 

 

 

 

 

 

 









 

Counterparty

 

Market Value

 

Unrealized
Appreciation

 

 









 

Oppenheimer & Co., Inc.

 

$

310,623

 

$

9,498

 

 

Siebert Brandford Shank & Co. LLC

 

$

103,541

 

$

3,166

 

 

Morgan Keegan & Co., Inc.

 

$

465,934

 

$

17,970

 

 

Securevest Financial Group

 

$

1,192,826

 

$

27,013

 

 

Merrill Lynch and Co.

 

$

982,910

 

$

8,710

 

 

Piper Jaffray & Co.

 

$

695,607

 

$

15,213

 

 

Citigroup Inc.

 

$

1,153,603

 

$

19,105

 

 










 

 

(b)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(c)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(d)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(e)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(f)

Non-income producing security.

 

 

(g)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(h)

Variable rate security. Rate shown is as of report date.

 

 

(i)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

 

 

(j)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(k)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 

 

 









 

Affiliate

 

Net
Activity

 

Income

 

 









 

FFI Institutional Tax-Exempt Fund

 

$

1,500,291

 

$

51,058

 

 










 

 

 

(l)

Represents the current yield as of report date.

 

 

Effective September 1,2008,the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of August 31, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 






 

Valuation Inputs

 

Investments in
Securities

 

 






 

 

 

Assets

 

 

 

 




 

Level 1 — Short-Term Securities

 

$

3,400,718

 

 

Level 2 — Long-Term Investments1

 

 

222,192,766

 

 

Level 3

 

 

 

 

 

 




 

Total

 

$

225,593,484

 

 

 

 





 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.




22

ANNUAL REPORT

AUGUST 31, 2009



 

 



 

 

Schedule of Investments August 31, 2009

BlackRock Municipal Bond Investment Trust (BIE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







California — 12.5%

 

 

 

 

 

 

 

Bay Area Toll Authority California Toll Bridge Revenue, Refunding RB, San Francisco Bay Area, 5.63%, 4/01/44

 

$

720

 

$

764,150

 

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

 

 

120

 

 

119,822

 

California Health Facilities Financing Authority, RB, Saint Joseph Health System, Series A, 5.75%, 7/01/39

 

 

730

 

 

734,840

 

California State Public Works Board, RB, Department General Services, Buildings 8 & 9, Series A, 6.25%, 4/01/34

 

 

1,100

 

 

1,139,369

 

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

 

 

2,235

 

 

2,289,467

 

San Diego Regional Building Authority, California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36

 

 

850

 

 

871,106

 

 

 

 

 

 




 

 

 

 

 

 

5,918,754

 









District of Columbia — 1.9%

 

 

 

 

 

 

 

District of Columbia Water & Sewer Authority, RB, Series A, 5.25%, 10/01/29

 

 

640

 

 

672,518

 

Metropolitan Washington DC Airports Authority Dulles Toll Road Revenue, RB, First Senior Lien, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

80

 

 

80,090

 

5.25%, 10/01/44

 

 

125

 

 

125,275

 

 

 

 

 

 




 

 

 

 

 

 

877,883

 









Florida — 46.8%

 

 

 

 

 

 

 

Capital Region Community Development District, Florida, Special Assessment, Capital Improvement, Series A, 7.00%, 5/01/39

 

 

300

 

 

223,728

 

City of Lakeland Florida, RB, Lakeland Regional Health System, 5.50%, 11/15/12 (a)

 

 

3,000

 

 

3,414,390

 

City of Palm Bay Florida, RB, Improvement (MBIA), 5.68%, 10/01/28 (b)

 

 

2,445

 

 

817,608

 

County of Miami-Dade Florida, RB, Sub-Series B (MBIA) (b):

 

 

 

 

 

 

 

5.91%, 10/01/30

 

 

10,000

 

 

2,533,200

 

5.78%, 10/01/32

 

 

5,410

 

 

1,179,921

 

County of Miami-Dade Florida, Refunding RB, Sub-Series A (MBIA), 5.87%, 10/01/26 (b)

 

 

5,500

 

 

1,862,520

 

County of Saint Johns Florida, RB, CAB (AMBAC), 5.40%, 6/01/32 (b)

 

 

1,370

 

 

351,720

 

Florida Municipal Loan Council, RB, Series A (MBIA), 5.13%, 5/01/32

 

 

3,050

 

 

2,968,077

 

Greater Orlando Aviation Authority, Florida, RB, Series A (FSA), 5.13%, 10/01/32

 

 

2,100

 

 

2,108,106

 

Highlands County Health Facilities Authority, RB, Hospital, Adventist, Sunbelt, Series A, 6.00%, 11/15/11 (a)

 

 

2,245

 

 

2,503,826

 

Hillsborough County Aviation Authority, Florida, RB, Series D (AGC), 5.50%, 10/01/26

 

 

500

 

 

537,695

 

Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai Medical Center Florida, 6.75%, 11/15/21

 

 

820

 

 

702,166

 

New River Community Development District, Special Assessment, Series B, 5.00%, 5/01/13 (c)(d)

 

 

750

 

 

328,793

 

Volusia County Educational Facility Authority, Refunding RB, Embry, Riddle Aeronautical (Radian):

 

 

 

 

 

 

 

5.20%, 10/15/26

 

 

1,250

 

 

1,166,613

 

5.20%, 10/15/33

 

 

1,610

 

 

1,415,206

 

 

 

 

 

 




 

 

 

 

 

 

22,113,569

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Georgia — 2.4%

 

 

 

 

 

 

 

Municipal Electric Authority of Georgia, RB, General Resolution Projects, Sub-Series D, 6.00%, 1/01/23

 

$

1,000

 

$

1,124,560

 









Illinois — 2.3%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,065,530

 









Indiana — 2.7%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, Indiana, RB, Indiana Muni Power Agency Series B, 6.00%, 1/01/39

 

 

1,190

 

 

1,259,591

 









Kansas — 1.9%

 

 

 

 

 

 

 

Kansas Development Finance Authority, RB, Adventist Health, 5.50%, 11/15/29

 

 

900

 

 

915,390

 









Kentucky — 3.5%

 

 

 

 

 

 

 

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

 

 

800

 

 

857,480

 

Louisville, Jefferson County Metropolitan Government, RB, Jewish Hospital Saint Mary’s Healthcare, 6.13%, 2/01/37

 

 

775

 

 

784,850

 

 

 

 

 

 




 

 

 

 

 

 

1,642,330

 









Massachusetts — 1.7%

 

 

 

 

 

 

 

Massachusetts Health & Educational Facilities Authority, RB, Tufts University, 5.38%, 8/15/38

 

 

500

 

 

531,945

 

Massachusetts State College Building Authority, RB, Series A, 5.50%, 5/01/39

 

 

250

 

 

261,617

 

 

 

 

 

 




 

 

 

 

 

 

793,562

 









Michigan — 2.4%

 

 

 

 

 

 

 

Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38

 

 

500

 

 

525,025

 

Royal Oak Hospital Finance Authority, Michigan, RB, William Beaumont Hospital, 8.25%, 9/01/39

 

 

530

 

 

605,663

 

 

 

 

 

 




 

 

 

 

 

 

1,130,688

 









Multi-State — 6.9%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust, 7.20%, 11/15/14 (e)(f)

 

 

3,000

 

 

3,246,180

 









Nevada — 2.3%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,076,940

 









New Jersey — 3.3%

 

 

 

 

 

 

 

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

 

 

750

 

 

803,280

 

New Jersey Transportation Trust Fund Authority, New Jersey, RB, Transportation System, Series A, 5.88%, 12/15/38

 

 

695

 

 

749,328

 

 

 

 

 

 




 

 

 

 

 

 

1,552,608

 









New York — 6.2%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,022,970

 

New York State Dormitory Authority, RB, Education, Series B, 5.25%, 3/15/38

 

 

1,000

 

 

1,041,870

 

Triborough Bridge & Tunnel Authority, New York, RB, General, Series A-2, 5.38%, 11/15/38

 

 

840

 

 

883,840

 

 

 

 

 

 




 

 

 

 

 

 

2,948,680

 









Pennsylvania — 4.0%

 

 

 

 

 

 

 

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

 

 

300

 

 

315,237

 

Pennsylvania Turnpike Commission, RB:

 

 

 

 

 

 

 

Sub-Series B, 5.25%, 6/01/39

 

 

1,000

 

 

1,014,550

 

Sub-Series C (AGC), 6.25%, 6/01/38

 

 

500

 

 

568,200

 

 

 

 

 

 




 

 

 

 

 

 

1,897,987

 










 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

23



 

 



 

 

Schedule of Investments (continued)

BlackRock Municipal Bond Investment Trust (BIE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Puerto Rico — 3.9%

 

 

 

 

 

 

 

Puerto Rico HFA, RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27

 

$

800

 

$

812,600

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37

 

 

1,000

 

 

1,025,010

 

 

 

 

 

 




 

 

 

 

 

 

1,837,610

 









Texas — 5.0%

 

 

 

 

 

 

 

Conroe ISD, Texas, GO, School Building, Series A, 5.75%, 2/15/35

 

 

470

 

 

501,058

 

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31

 

 

250

 

 

273,612

 

Houston Texas Airport Systems Revenue, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39

 

 

315

 

 

322,721

 

Lower Colorado River Authority, Refunding RB, 5.75%, 5/15/28

 

 

450

 

 

469,710

 

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

 

 

750

 

 

795,510

 

 

 

 

 

 




 

 

 

 

 

 

2,362,611

 









Virginia — 1.8%

 

 

 

 

 

 

 

Virginia Public School Authority, Virginia, RB, School Financing, 6.50%, 12/01/35

 

 

750

 

 

852,076

 









Wyoming — 1.4%

 

 

 

 

 

 

 

Sweetwater County, Refunding RB, Wyoming PCRB, 5.25%, 7/15/26

 

 

655

 

 

667,471

 









Total Municipal Bonds — 112.9%

 

 

 

 

 

53,284,020

 










 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

 

 

 

 

 

 









California — 9.4%

 

 

 

 

 

 

 

California Educational Facilities Authority, RB, University Southern California, Series A, 5.25%, 10/01/39

 

 

1,005

 

 

1,058,355

 

Los Angeles Community College District, California, GO, 2008 Election, Series A, 6.00%, 8/01/33

 

 

2,079

 

 

2,297,769

 

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

 

 

200

 

 

201,378

 

University of California, RB, Series O, 5.75%, 5/15/34

 

 

810

 

 

886,853

 

 

 

 

 

 




 

 

 

 

 

 

4,444,355

 









District of Columbia — 3.7%

 

 

 

 

 

 

 

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

 

 

735

 

 

811,932

 

District of Columbia Water & Sewer Authority, RB, Series A, 5.50%, 10/01/39

 

 

899

 

 

951,368

 

 

 

 

 

 




 

 

 

 

 

 

1,763,300

 









Florida — 8.6%

 

 

 

 

 

 

 

Jacksonville Economic Development Commission, RB, Mayo Clinic Jacksonville, Series B, 5.50%, 11/15/36

 

 

3,510

 

 

3,547,662

 

Jacksonville Electric Authority, RB, Issue Three, Series Two, River Power Park, 5.00%, 10/01/37

 

 

510

 

 

506,175

 

 

 

 

 

 




 

 

 

 

 

 

4,053,837

 









Illinois — 8.1%

 

 

 

 

 

 

 

Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38

 

 

1,500

 

 

1,680,195

 

Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33

 

 

2,000

 

 

2,124,373

 

 

 

 

 

 




 

 

 

 

 

 

3,804,568

 










 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (g)

 

Par
(000)

 

Value

 







Nevada — 3.4%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO, Limited Tax, 6.00%, 7/01/38

 

$

1,500

 

$

1,624,875

 









New Hampshire — 1.3%

 

 

 

 

 

 

 

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

 

 

585

 

 

622,792

 









New York — 4.0%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB:

 

 

 

 

 

 

 

Series A, 5.75%, 6/15/40

 

 

750

 

 

818,047

 

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

 

 

990

 

 

1,059,649

 

 

 

 

 

 




 

 

 

 

 

 

1,877,696

 









South Carolina — 2.3%

 

 

 

 

 

 

 

South Carolina State Public Service Authority, RB, Santee Cooper, Series A, 5.50%, 1/01/38

 

 

1,005

 

 

1,078,466

 









Texas — 5.4%

 

 

 

 

 

 

 

City of San Antonio, Texas, Refunding RB, Series A, 5.25%, 2/01/31

 

 

1,050

 

 

1,099,773

 

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

 

 

1,450

 

 

1,458,845

 

 

 

 

 

 




 

 

 

 

 

 

2,558,618

 









Virginia — 1.0%

 

 

 

 

 

 

 

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

 

 

460

 

 

477,154

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 47.2%

 

 

 

 

 

22,305,661

 









Total Long-Term Investments
(Cost — $74,001,255) — 160.1%

 

 

 

 

 

75,589,681

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 








CMA Florida Municipal Money Fund, 0.04% (h)(i)

 

 

2

 

 

2

 









Total Short-Term Securities
(Cost — $2) — 0.0%

 

 

 

 

 

2

 









Total Investments (Cost — $74,001,257*) — 160.1%

 

 

 

 

 

75,589,683

 

Other Assets Less Liabilities — 2.8%

 

 

 

 

 

1,298,016

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (25.1)%

 

 

 

 

 

(11,833,689

)

Preferred Shares, at Redemption Value — (37.8)%

 

 

 

 

 

(17,851,267

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

47,202,743

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.




24

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

Schedule of Investments (concluded)

BlackRock Municipal Bond Investment Trust (BIE)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

Aggregate cost

 

$

62,223,265

 

 

 




Gross unrealized appreciation

 

$

3,324,042

 

Gross unrealized depreciation

 

 

(1,779,371

)

 

 




Net unrealized appreciation

 

$

1,544,671

 

 

 





 

 

(a)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

Non-income producing security.

 

 

(d)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(e)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(f)

Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

 

 

(g)

Securities represent bonds transferred to tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(h)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







CMA Florida Municipal Money Fund

 

$

(2,268,185

)

$

24,707

 

FFI Institutional Tax-Exempt Fund

 

 

 

$

2,006

 










 

 

 

(i)

Represents the current yield as of report date.

 

 

 

Effective September 1, 2008, the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

The following table summarizes the inputs used as of August 31, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

2

 

Level 2 — Long-Term Investments1

 

 

75,589,681

 

Level 3

 

 

 

 

 




Total

 

$

75,589,683

 

 

 





 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

25



 

 


 

Schedule of Investments August 31, 2009

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Arizona — 3.7%

 

 

 

 

 

 

 

Pima County IDA, RB, American Charter Schools Foundation, Series A, 5.63%, 7/01/38

 

$

2,525

 

$

1,730,231

 

Salt Verde Financial Corp., RB, Senior:

 

 

 

 

 

 

 

5.00%, 12/01/32

 

 

5,635

 

 

4,850,890

 

5.00%, 12/01/37

 

 

5,270

 

 

4,394,706

 

 

 

 

 

 




 

 

 

 

 

 

10,975,827

 









California — 18.5%

 

 

 

 

 

 

 

Agua Caliente Band of Cahuilla Indians, RB, 6.00%, 7/01/18 (a)

 

 

2,250

 

 

1,973,700

 

Bay Area Toll Authority California Toll Bridge Revenue, Refunding RB, San Francisco Bay Area, 5.63%, 4/01/44

 

 

2,480

 

 

2,632,074

 

California County Tobacco Securitization Agency, RB, CAB, Stanislaus, Sub-Series C, 6.30%, 6/01/55 (b)

 

 

9,710

 

 

112,248

 

California HFA, RB, Home Mortgage:

 

 

 

 

 

 

 

Series G, AMT, 5.50%, 8/01/42

 

 

9,620

 

 

9,354,007

 

Series K, AMT, 5.50%, 2/01/42

 

 

3,540

 

 

3,473,554

 

California Statewide Communities Development Authority, RB, Health Facilities, Memorial Health Services, Series A, 5.50%, 10/01/33

 

 

5,000

 

 

4,888,800

 

Los Angeles Unified School District, California, GO:

 

 

 

 

 

 

 

Series D, 5.00%, 7/01/27

 

 

2,375

 

 

2,445,537

 

Series I, 5.00%, 7/01/26

 

 

1,250

 

 

1,296,125

 

Series I, 5.00%, 7/01/27

 

 

1,750

 

 

1,801,975

 

San Francisco City & County Redevelopment Agency, Special Tax, No. 6, Mission Bay South Pub, 6.63%, 8/01/27

 

 

3,120

 

 

3,143,930

 

State of California, GO, Various Purpose:

 

 

 

 

 

 

 

5.00%, 6/01/32

 

 

3,800

 

 

3,674,410

 

6.50%, 4/01/33

 

 

10,670

 

 

11,799,206

 

5.00%, 6/01/34

 

 

2,700

 

 

2,598,912

 

University of California, RB, Limited Project, Series B, 4.75%, 5/15/38

 

 

5,755

 

 

5,665,913

 

 

 

 

 

 




 

 

 

 

 

 

54,860,391

 









Colorado — 3.0%

 

 

 

 

 

 

 

City of Colorado Springs Colorado, RB, Subordinate Lien, Improvement, Series C (FSA), 5.00%, 11/15/45

 

 

1,375

 

 

1,385,835

 

Colorado Health Facilities Authority, RB, Series C (FSA), 5.25%, 3/01/40

 

 

2,000

 

 

2,018,320

 

Northwest Parkway Public Highway Authority, Colorado, RB, Senior, Series A (FSA), 5.25%, 6/15/11 (c)

 

 

4,000

 

 

4,367,040

 

Park Creek Metropolitan District, Colorado, Refunding RB, Senior, Limited Tax Property Tax, 5.50%, 12/01/37

 

 

1,375

 

 

1,177,619

 

 

 

 

 

 




 

 

 

 

 

 

8,948,814

 









District of Columbia — 6.7%

 

 

 

 

 

 

 

District of Columbia Tobacco Settlement Financing Corp., RB, Asset Backed Bonds:

 

 

 

 

 

 

 

6.50%, 5/15/33

 

 

7,500

 

 

6,906,150

 

6.75%, 5/15/40

 

 

11,500

 

 

10,688,100

 

District of Columbia, RB, Friendship Public Charter School Inc. (ACA), 5.25%, 6/01/33

 

 

1,265

 

 

823,211

 

Metropolitan Washington DC Airports Authority Dulles Toll Road Revenue, RB, First Senior Lien:

 

 

 

 

 

 

 

Series A, 5.00%, 10/01/39

 

 

550

 

 

550,622

 

Series A, 5.25%, 10/01/44

 

 

865

 

 

866,903

 

 

 

 

 

 




 

 

 

 

 

 

19,834,986

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Florida — 9.3%

 

 

 

 

 

 

 

City of Leesburg Florida, RB, Leesburg Regional Medical Center Project, 5.50%, 7/01/32

 

$

2,650

 

$

2,258,595

 

County of Miami-Dade Florida, RB, Miami International Airport, Series A, AMT (AGC), 5.25%, 10/01/38

 

 

2,855

 

 

2,692,722

 

County of Orange Florida, Refunding RB (Syncora), 4.75%, 10/01/32

 

 

2,005

 

 

1,894,745

 

Live Oak Community Development District No. 1, Special Assessment, Series A, 6.30%, 5/01/34

 

 

3,115

 

 

3,103,070

 

Miami Beach Health Facilities Authority, Refunding RB, Mount Sinai Medical Center Florida, 6.75%, 11/15/21

 

 

5,275

 

 

4,516,982

 

Orange County Health Facilities Authority, RB, Hospital, Adventist Health System, 5.63%, 11/15/12 (c)

 

 

6,850

 

 

7,646,107

 

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

 

 

1,990

 

 

1,431,865

 

Sumter County IDA, RB, North Sumter Utility Co., LLC Project, AMT, 6.90%, 10/01/34

 

 

4,340

 

 

3,864,596

 

 

 

 

 

 




 

 

 

 

 

 

27,408,682

 









Georgia — 2.0%

 

 

 

 

 

 

 

Milledgeville & Baldwin County Development Authority, RB, Georgia College & State University Foundation, 5.63%, 9/01/14 (c)

 

 

5,000

 

 

5,943,850

 









Guam — 1.3%

 

 

 

 

 

 

 

Territory of Guam, GO, Series A:

 

 

 

 

 

 

 

5.75%, 11/15/14

 

 

550

 

 

547,899

 

6.00%, 11/15/19

 

 

695

 

 

685,194

 

6.75%, 11/15/29

 

 

1,220

 

 

1,225,905

 

Series A, 7.00%, 11/15/39

 

 

1,260

 

 

1,263,452

 

 

 

 

 

 




 

 

 

 

 

 

3,722,450

 









Illinois — 9.9%

 

 

 

 

 

 

 

CenterPoint Intermodal Center Program Trust, TAN, 144A, 10.00%, 6/15/23 (a)

 

 

2,470

 

 

1,297,367

 

Illinois Finance Authority, RB, Friendship Village Schaumburg, Series A, 5.63%, 2/15/37

 

 

910

 

 

631,322

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

MJH Education Assistance IV, Sub-Series B, 5.38%, 6/01/35 (d)(e)

 

 

900

 

 

88,434

 

Monarch Landing Inc. Facilities, Series A, 7.00%, 12/01/37

 

 

1,585

 

 

820,301

 

Northwestern Memorial Hospital, Series A, 5.50%, 8/15/14 (c)

 

 

1,880

 

 

2,186,064

 

Illinois Health Facilities Authority, Refunding RB, Elmhurst Memorial Healthcare, 5.50%, 1/01/22

 

 

8,000

 

 

7,594,080

 

Illinois Municipal Electric Agency, RB (MBIA), 4.50%, 2/01/35

 

 

2,445

 

 

2,247,028

 

Illinois Sports Facilities Authority, RB, State Tax Supported (AMBAC), 5.50%, 6/15/30 (f)

 

 

15,000

 

 

14,421,750

 

 

 

 

 

 




 

 

 

 

 

 

29,286,346

 









Indiana — 1.2%

 

 

 

 

 

 

 

Indiana Health Facility Financing Authority, Indiana, RB, Ascension, Series F, 5.38%, 11/15/25

 

 

2,095

 

 

2,158,709

 

Indiana Municipal Power Agency, Indiana, RB, Indiana Muni Power Agency, Series B, 6.00%, 1/01/39

 

 

1,200

 

 

1,270,176

 

 

 

 

 

 




 

 

 

 

 

 

3,428,885

 









Maryland — 0.3%

 

 

 

 

 

 

 

Maryland Health & Higher Educational Facilities Authority, RB, Union Hospital of Cecil County Issue, 5.63%, 7/01/32

 

 

1,000

 

 

996,730

 









Michigan — 0.6%

 

 

 

 

 

 

 

Michigan State Hospital Finance Authority, Michigan, Refunding RB, Henry Ford Health System, Series A, 5.25%, 11/15/46

 

 

2,305

 

 

1,857,023

 










 

 

 

See Notes to Financial Statements.




26

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Missouri — 1.6%

 

 

 

 

 

 

 

370 Missouri Bottom Road Taussig Road Transportation Development District Hazelwood, RB, 7.20%, 5/01/33

 

$

6,000

 

$

4,845,900

 









Multi-State — 4.3%

 

 

 

 

 

 

 

Charter Mac Equity Issuer Trust (a)(g):

 

 

 

 

 

 

 

6.00%, 5/15/15

 

 

5,000

 

 

5,144,750

 

5.75%, 5/15/15

 

 

1,000

 

 

1,018,050

 

6.00%, 5/15/19

 

 

3,500

 

 

3,594,360

 

6.30%, 5/15/19

 

 

3,000

 

 

3,095,460

 

 

 

 

 

 




 

 

 

 

 

 

12,852,620

 









Nevada — 0.9%

 

 

 

 

 

 

 

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

 

 

2,855

 

 

2,740,714

 









New Jersey — 11.5%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax:

 

 

 

 

 

 

 

5.75%, 6/15/34

 

 

3,810

 

 

3,473,044

 

(Radian), 5.50%, 6/15/31

 

 

9,000

 

 

8,015,490

 

New Jersey EDA, RB, Continental Airlines Inc. Project, AMT, 7.20%, 11/15/30

 

 

10,100

 

 

8,980,011

 

New Jersey EDA, RB, Kapkowski Road Landfill, Series B, AMT, 6.50%, 4/01/31

 

 

10,000

 

 

7,598,400

 

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

 

 

7,475

 

 

6,101,842

 

 

 

 

 

 




 

 

 

 

 

 

34,168,787

 









New Mexico — 2.1%

 

 

 

 

 

 

 

New Mexico Housing Authority, RB, Villa Del Oso Apartments Project, Series A, 6.00%, 1/01/13 (c)

 

 

5,200

 

 

6,077,396

 









New York — 4.2%

 

 

 

 

 

 

 

Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A, 7.00%, 5/01/35

 

 

985

 

 

618,600

 

New York City Industrial Development Agency, RB, American Airlines, JFK International Airport, AMT, 7.75%, 8/01/31

 

 

6,700

 

 

5,691,047

 

New York City Transitional Finance Authority, RB, Fiscal 2008, Series S-1, 4.50%, 1/15/38

 

 

1,100

 

 

1,021,757

 

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

 

 

1,225

 

 

1,192,709

 

Port Authority of New York & New Jersey, RB, Continental, Eastern Project, LaGuardia, AMT, 9.00%, 12/01/10

 

 

3,980

 

 

3,981,751

 

 

 

 

 

 




 

 

 

 

 

 

12,505,864

 









North Carolina — 1.5%

 

 

 

 

 

 

 

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

 

 

7,500

 

 

4,283,400

 









Ohio — 0.3%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior, Turbo, Series A-2, 6.50%, 6/01/47

 

 

1,190

 

 

954,975

 









Oklahoma — 1.2%

 

 

 

 

 

 

 

Tulsa Municipal Airport Trust Trustees, Oklahoma, Refunding RB, Series A, AMT, 7.75%, 6/01/35 (h)

 

 

3,925

 

 

3,477,275

 









Pennsylvania — 5.6%

 

 

 

 

 

 

 

Monroe County Hospital Authority, Pennsylvania, RB, Hospital, Pocono Medical Center, 6.00%, 1/01/14 (c)

 

 

5,000

 

 

5,785,500

 

Pennsylvania Economic Development Financing Authority, RB:

 

 

 

 

 

 

 

Amtrak Project, Series A, AMT, 6.38%, 11/01/41

 

 

5,175

 

 

4,707,956

 

Reliant Energy, Series A-12-22-04, AMT, 6.75%, 12/01/36

 

 

6,130

 

 

5,952,475

 

 

 

 

 

 




 

 

 

 

 

 

16,445,931

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Puerto Rico — 2.2%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.50%, 8/01/44

 

$

6,100

 

$

6,590,196

 









South Carolina — 6.1%

 

 

 

 

 

 

 

County of Greenwood South Carolina, RB, Facilities, Self Memorial Hospital:

 

 

 

 

 

 

 

5.50%, 10/01/26

 

 

3,280

 

 

3,170,612

 

5.50%, 10/01/31

 

 

3,250

 

 

3,018,665

 

South Carolina Jobs-EDA, RB:

 

 

 

 

 

 

 

Georgetown Memorial Hospital (Radian), 5.38%, 2/01/30

 

 

3,750

 

 

3,358,312

 

Palmetto Health, Series C, 6.88%, 8/01/13 (c)

 

 

550

 

 

653,532

 

Palmetto Health, Series C, 6.88%, 8/01/13 (c)

 

 

4,450

 

 

5,287,668

 

South Carolina Jobs-EDA, Refunding RB, Palmetto Health Alliance, Series A, 6.25%, 8/01/31

 

 

2,640

 

 

2,521,807

 

 

 

 

 

 




 

 

 

 

 

 

18,010,596

 









Tennessee — 3.7%

 

 

 

 

 

 

 

Knox County Health Educational & Housing Facilities Board, Tennessee, RB, CAB, Refunding & Improvement, Series A (FSA), 5.77%, 1/01/21 (b)

 

 

20,405

 

 

10,990,745

 









Texas — 23.2%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB:

 

 

 

 

 

 

 

TXU Electric Co. Project, Series A, AMT, 8.25%, 10/01/30

 

 

2,400

 

 

1,250,544

 

TXU Electric Co. Project, Series C, AMT, 5.75%, 5/01/36

 

 

2,400

 

 

1,947,576

 

City of Houston Texas, Refunding RB, Combined, First Lien, Series A (AGC), 6.00%, 11/15/35

 

 

9,145

 

 

10,312,451

 

Gulf Coast Waste Disposal Authority, Refunding RB, Series A, AMT, 6.10%, 8/01/24

 

 

10,000

 

 

9,520,200

 

Harris County-Houston Sports Authority, Refunding RB, Third Lien, Series A-3 (MBIA), 5.96%, 11/15/36 (b)

 

 

25,375

 

 

3,257,135

 

Houston Texas Airport Systems Revenue, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/39

 

 

1,675

 

 

1,716,054

 

Lower Colorado River Authority, Refunding RB & Improvement (MBIA):

 

 

 

 

 

 

 

5.00%, 5/15/13 (c)

 

 

30

 

 

33,737

 

5.00%, 5/15/31

 

 

1,270

 

 

1,256,640

 

Lower Colorado River Authority, Refunding RB, Series A (MBIA), 5.00%, 5/15/13 (c)

 

 

5

 

 

5,623

 

North Texas Tollway Authority, Refunding RB, Second Tier, Series F, 6.13%, 1/01/31

 

 

6,790

 

 

6,901,356

 

San Antonio Energy Acquisition Public Facility Corp., RB, Gas Supply Revenue, 5.50%, 8/01/24

 

 

3,600

 

 

3,610,728

 

Texas State Turnpike Authority, RB, CAB (AMBAC) (b):

 

 

 

 

 

 

 

6.08%, 8/15/36

 

 

58,370

 

 

10,192,569

 

6.09%, 8/15/37

 

 

65,000

 

 

10,581,350

 

6.09%, 8/15/38

 

 

27,100

 

 

4,111,341

 

Texas State Turnpike Authority, RB, First Tier, Series A (AMBAC), 5.00%, 8/15/42

 

 

4,575

 

 

4,007,746

 

 

 

 

 

 




 

 

 

 

 

 

68,705,050

 









Virginia — 3.1%

 

 

 

 

 

 

 

Halifax County IDA, Refunding RB, Old Dominion Electric Coop Project, AMT (AMBAC), 5.63%, 6/01/28

 

 

9,000

 

 

9,192,510

 









Washington — 2.1%

 

 

 

 

 

 

 

County of King Washington, Refunding RB (FSA), 5.00%, 1/01/36

 

 

1,960

 

 

1,997,142

 

Washington Health Care Facilities Authority, Washington, RB, Providence Health Care Services, Series A (MBIA), 4.63%, 10/01/34

 

 

4,820

 

 

4,343,447

 

 

 

 

 

 




 

 

 

 

 

 

6,340,589

 










 

 

 

See Notes to Financial Statements.

 

 


ANNUAL REPORT

AUGUST 31, 2009

27



 

 



 

 

Schedule of Investments (continued)

BlackRock Municipal Income Trust II (BLE)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Wisconsin — 1.3%

 

 

 

 

 

 

 

Wisconsin Health & Educational Facilities Authority, RB, Aurora Health Care, 6.40%, 4/15/33

 

$

3,930

 

$

3,924,891

 









Wyoming — 1.7%

 

 

 

 

 

 

 

Sweetwater County, Refunding RB, Wyoming Pollution Control Revenue, 5.25%, 7/15/26

 

 

3,355

 

 

3,418,879

 

Wyoming Municipal Power Agency, Wyoming, RB:

 

 

 

 

 

 

 

Series A, 5.50%, 1/01/33

 

 

800

 

 

811,144

 

Series A, 5.50%, 1/01/38

 

 

750

 

 

755,918

 

 

 

 

 

 




 

 

 

 

 

 

4,985,941

 









Total Municipal Bonds — 133.1%

 

 

 

 

 

394,357,364

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (i)

 

 

 

 

 

 

 









Alabama — 0.8%

 

 

 

 

 

 

 

Alabama Special Care Facilities Financing Authority, Refunding RB, Ascension Health, Senior Credit, Series C-2, 5.00%, 11/15/36

 

 

2,519

 

 

2,515,075

 









California — 2.5%

 

 

 

 

 

 

 

California Educational Facilities Authority, RB, University Southern California, Series A, 5.25%, 10/01/39

 

 

2,850

 

 

3,001,307

 

Los Angeles Community College District, California, GO, Election 2001, Series A (FSA), 5.00%, 8/01/32

 

 

2,530

 

 

2,564,560

 

San Diego Community College District, California, GO, Election of 2002, 5.25%, 8/01/33

 

 

1,840

 

 

1,911,791

 

 

 

 

 

 




 

 

 

 

 

 

7,477,658

 









Colorado — 2.4%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Catholic Health:

 

 

 

 

 

 

 

Series C-3 (FSA), 5.10%, 10/01/41

 

 

4,230

 

 

4,256,184

 

Series C-7 (FSA), 5.00%, 9/01/36

 

 

2,710

 

 

2,728,780

 

 

 

 

 

 




 

 

 

 

 

 

6,984,964

 









Connecticut — 3.6%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility Authority, RB, Yale University:

 

 

 

 

 

 

 

Series X-3, 4.85%, 7/01/37

 

 

5,130

 

 

5,266,201

 

Series T-1, 4.70%, 7/01/29

 

 

5,170

 

 

5,389,828

 

 

 

 

 

 




 

 

 

 

 

 

10,656,029

 









Georgia — 1.6%

 

 

 

 

 

 

 

Private Colleges & Universities Authority, Refunding RB, Emory University, Series C, 5.00%, 9/01/38

 

 

4,638

 

 

4,770,549

 









Massachusetts — 1.1%

 

 

 

 

 

 

 

Massachusetts Water Resources Authority, Refunding RB, Series A, 5.00%, 8/01/41

 

 

3,150

 

 

3,175,515

 









New Hampshire — 0.8%

 

 

 

 

 

 

 

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

 

 

2,219

 

 

2,363,412

 









New York — 1.6%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB, Series FF-2, 5.50%, 6/15/40

 

 

1,710

 

 

1,830,303

 

New York State Environmental Facilities Corp., RB, Revolving Funds, New York City Municipal Water Project, Series B, 5.00%, 6/15/31

 

 

2,850

 

 

2,899,476

 

 

 

 

 

 




 

 

 

 

 

 

4,729,779

 









Virginia — 3.4%

 

 

 

 

 

 

 

University of Virginia, Refunding RB, 5.00%, 6/01/40

 

 

5,910

 

 

6,134,403

 

Virginia HDA, RB, Series H, Sub-Series H1 (MBIA), 5.35%, 7/01/31

 

 

3,750

 

 

3,783,563

 

 

 

 

 

 




 

 

 

 

 

 

9,917,966

 









 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Washington — 3.9%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation Authority, Washington, RB, Series A (FSA), 5.00%, 11/01/32

 

$

3,029

 

$

3,098,504

 

State of Washington, GO, Series E, 5.00%, 2/01/34

 

 

8,113

 

 

8,440,736

 

 

 

 

 

 




 

 

 

 

 

 

11,539,240

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 21.7%

 

 

 

 

 

64,130,187

 









Total Long-Term Investments
(Cost — $480,622,822) — 154.8%

 

 

 

 

 

458,487,551

 









 

 

 

 

 

 

 

 









 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 









Michigan — 2.2%

 

 

 

 

 

 

 

Michigan State, HDA, Revenue Refunding Bonds, VRDN, AMT, Series B, 3.50%, 9/07/09 (j)

 

 

6,500

 

 

6,500,000

 









 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 








Money Market — 4.7%

 

 

 

 

 

 

 

FFI Institutional Tax-Exempt Fund, 0.22% (k)(l)

 

 

13,805,067

 

 

13,805,067

 









Total Short-Term Securities
(Cost — $20,305,067) — 6.9%

 

 

 

 

 

20,305,067

 









Total Investments (Cost — $500,927,889*) — 161.7%

 

 

 

 

 

478,792,618

 

Other Assets Less Liabilities — 1.4%

 

 

 

 

 

4,181,053

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable — (12.0)%

 

 

 

 

 

(35,592,273

)

Preferred Shares, at Redemption Value — (51.1)%

 

 

 

 

 

(151,311,897

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

296,069,501

 

 

 

 

 

 




 










 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

464,547,709

 

 

 

 

 

 




Gross unrealized appreciation

 

 

 

 

$

12,093,213

 

Gross unrealized depreciation

 

 

 

 

 

(33,411,493

)

 

 

 

 

 




Net unrealized depreciation

 

 

 

 

$

(21,318,280

)

 

 

 

 

 





 

 

(a)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(d)

Non-income producing security.

 

 

(e)

Issuer filed for bankruptcy and/or is in default of interest payments.

 

 

(f)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(g)

Security represents a beneficial interest in a trust. The collateral deposited into the Trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity, and is subject to mandatory redemption at maturity.

 

 

(h)

Variable rate security. Rate shown is as of report date.

 

 

(i)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.




28

ANNUAL REPORT

AUGUST 31, 2009



 

 



 

 

Schedule of Investments (concluded)

BlackRock Municipal Income Trust II (BLE)


 

 

(j)

Security may have a maturity of more than one year at the time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

 

 

(k)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 







Affiliate

 

Net
Activity

 

Income

 







FFI Institutional Tax-Exempt Fund

 

$

11,104,046

 

$

101,551

 










 

 

(l)

Represents the current yield as of report date.

 

 

Effective September 1,2008,the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:


 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of August 31, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 





Valuation Inputs

 

Investments in
Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

13,805,067

 

Level 2:

 

 

 

 

Long-Term Investments1

 

 

458,487,551

 

Short-Term Securities

 

 

6,500,000

 

 

 




Total Level 2

 

 

464,987,551

 

 

 




Level 3

 

 

 

 

 




Total

 

$

478,792,618

 

 

 





 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

AUGUST 31, 2009

29



 

 



 

 

Schedule of Investments August 31, 2009

BlackRock MuniHoldings Insured Investment Fund (MFL)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Alabama — 2.0%

 

 

 

 

 

 

 









Health — 2.0%

 

 

 

 

 

 

 

Birmingham Alabama Special Care Facilities Financing Authority, RB, Health Care Facilities, Children’s Hospital (AGC), 6.00%, 6/01/39 (a)

 

$

9,995

 

$

10,348,923

 









Total Municipal Bonds in Alabama

 

 

 

 

 

10,348,923

 









 

 

 

 

 

 

 

 









California — 4.7%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.3%

 

 

 

 

 

 

 

Los Angeles Municipal Improvement Corp., RB, Real Property, Series B (AGC), 5.50%, 4/01/39

 

 

2,930

 

 

2,976,734

 

Los Angeles Unified School District, California, GO, Series D, 5.25%, 7/01/25

 

 

3,485

 

 

3,707,726

 

 

 

 

 

 




 

 

 

 

 

 

6,684,460

 









Transportation — 1.3%

 

 

 

 

 

 

 

County of Sacramento California, RB, Senior, Series A (AGC), 5.50%, 7/01/41

 

 

6,600

 

 

6,619,140

 









Utilities — 2.1%

 

 

 

 

 

 

 

Manteca Financing Authority, California, RB, Manteca Sewer (AGC):

 

 

 

 

 

 

 

5.75%, 12/01/36

 

 

3,285

 

 

3,432,168

 

5.63%, 12/01/33

 

 

2,450

 

 

2,555,448

 

San Diego Public Facilities Financing Authority, RB, Series B (AGC), 5.38%, 8/01/34

 

 

4,690

 

 

4,880,320

 

 

 

 

 

 




 

 

 

 

 

 

10,867,936

 









Total Municipal Bonds in California

 

 

 

 

 

24,171,536

 









 

 

 

 

 

 

 

 









Colorado — 1.2%

 

 

 

 

 

 

 









Health — 1.2%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB, Hospital, NCMC Inc. Project, Series B (FSA), 6.00%, 5/15/26

 

 

5,925

 

 

6,338,091

 









Total Municipal Bonds in Colorado

 

 

 

 

 

6,338,091

 









 

 

 

 

 

 

 

 









District of Columbia — 0.4%

 

 

 

 

 

 

 









Education — 0.4%

 

 

 

 

 

 

 

District of Columbia, RB, Georgetown University, Series D, 5.50%, 4/01/36

 

 

1,730

 

 

1,819,527

 









Total Municipal Bonds in District of Columbia

 

 

 

 

 

1,819,527

 









 

 

 

 

 

 

 

 









Florida — 79.6%

 

 

 

 

 

 

 









County/City/Special District/School District — 20.9%

 

 

 

 

 

 

 

Alachua County School Board, RB (AMBAC), 5.25%, 7/01/29

 

 

3,075

 

 

3,108,733

 

City of Cape Coral Florida, RB (MBIA), 5.00%, 10/01/30

 

 

1,220

 

 

1,212,094

 

City of Jacksonville Florida, Refunding RB, Improvement (MBIA), 5.25%, 10/01/32

 

 

7,305

 

 

7,358,327

 

City of Leesburg Florida, RB (MBIA):

 

 

 

 

 

 

 

5.25%, 10/01/27

 

 

1,605

 

 

1,634,275

 

5.25%, 10/01/34

 

 

3,425

 

 

3,410,649

 

City of Orlando Florida, RB, Senior, 6th Cent Contract Payments, Series A (AGC), 5.25%, 11/01/38

 

 

8,115

 

 

8,194,852

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Florida (continued)

 

 

 

 

 

 

 









County/City/Special District/School District (concluded)

 

 

 

 

 

 

 

Clay County School Board, COP, Master Lease Program (MBIA), 5.75%, 7/01/10 (b)

 

$

1,320

 

$

1,392,296

 

County of Lee Florida, RB (AMBAC), 5.25%, 10/01/23

 

 

4,225

 

 

4,284,953

 

County of Miami-Dade Florida, GO, Parks Program (MBIA), 6.00%, 11/01/24

 

 

6,705

 

 

6,798,132

 

County of Osceola Florida, RB:

 

 

 

 

 

 

 

(AMBAC), 5.38%, 10/01/18

 

 

3,155

 

 

3,378,342

 

Series A (MBIA), 5.50%, 10/01/27

 

 

5,560

 

 

5,654,131

 

County of Saint Johns Florida, RB, Transportation Improvement (AMBAC), 5.13%, 10/01/32

 

 

3,250

 

 

3,265,893

 

County of Taylor Florida, RB (FGIC), 6.00%, 10/01/10 (b)

 

 

3,835

 

 

4,066,481

 

Hernando County School Board, COP (MBIA), 5.00%, 7/01/30

 

 

1,765

 

 

1,722,481

 

Miami-Dade County IDA, RB, BAC Funding Corp. Project, Series A (AMBAC), 5.25%, 10/01/20

 

 

3,280

 

 

3,442,393

 

Orange County School Board, COP (AMBAC), 5.50%, 8/01/25

 

 

1,300

 

 

1,351,597

 

Palm Beach County School Board, Florida, COP:

 

 

 

 

 

 

 

Series A (FGIC), 6.00%, 8/01/10 (b)

 

 

5,070

 

 

5,380,639

 

Series A (FGIC), 6.25%, 8/01/10 (b)

 

 

13,205

 

 

14,044,310

 

Series B (AMBAC), 5.38%, 8/01/17

 

 

6,115

 

 

6,322,237

 

Saint Lucie County School Board, COP (FSA):

 

 

 

 

 

 

 

6.25%, 7/01/10 (b)

 

 

4,055

 

 

4,295,015

 

Series A, 5.50%, 7/01/18

 

 

1,495

 

 

1,589,140

 

Series C, 5.50%, 7/01/18

 

 

1,170

 

 

1,243,675

 

Village Center Community Development District Recreational Revenue, RB, (MBIA):

 

 

 

 

 

 

 

5.25%, 10/01/23

 

 

2,875

 

 

2,737,374

 

Series A, 5.38%, 11/01/34

 

 

10,775

 

 

9,536,414

 

Series A, 5.13%, 11/01/36

 

 

1,750

 

 

1,475,618

 

 

 

 

 

 




 

 

 

 

 

 

106,900,051

 









Education — 6.4%

 

 

 

 

 

 

 

Broward County Educational Facilities Authority, RB, Educational Facilities, Nova Southeastern (AGC), 5.00%, 4/01/31

 

 

7,900

 

 

7,848,097

 

City of Tallahassee Florida, RB, Florida State University Project, Series A (MBIA):

 

 

 

 

 

 

 

5.25%, 8/01/23

 

 

2,800

 

 

2,838,052

 

5.38%, 8/01/26

 

 

1,000

 

 

1,020,230

 

Florida Higher Educational Facilities Financial Authority, RB, Flagler College Inc. Project (Syncora), 5.25%, 11/01/36

 

 

12,000

 

 

10,436,880

 

Florida State Board of Regents, RB, University Central Florida (MBIA), 5.25%, 10/01/26

 

 

1,650

 

 

1,665,790

 

Saint Johns County IDA, Refunding RB, Professional Golf Project (MBIA):

 

 

 

 

 

 

 

5.50%, 9/01/15

 

 

1,275

 

 

1,317,394

 

5.50%, 9/01/16

 

 

1,345

 

 

1,381,826

 

5.50%, 9/01/17

 

 

1,420

 

 

1,450,644

 

5.50%, 9/01/18

 

 

1,500

 

 

1,524,405

 

 

 

 

 

 

 

 

 

Volusia County IDA, RB, Student Housing, Stetson University Project, Series A (CIFG):

 

 

 

 

 

 

 

5.00%, 6/01/25

 

 

2,075

 

 

1,925,144

 

5.00%, 6/01/35

 

 

1,740

 

 

1,465,898

 

 

 

 

 

 




 

 

 

 

 

 

32,874,360

 










 

 

 

See Notes to Financial Statements.




30

ANNUAL REPORT

AUGUST 31, 2009



 

 



 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Investment Fund (MFL)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 









Florida (continued)

 

 

 

 

 

 

 









Health — 5.3%

 

 

 

 

 

 

 

Jacksonville Health Facilities Authority, RB, Baptist Medical Center (FSA), 5.00%, 8/15/37

 

$

9,255

 

$

9,199,562

 

Orange County Health Facilities Authority, RB, Hospital, Orlando Regional Healthcare:

 

 

 

 

 

 

 

6.00%, 12/01/12 (b)

 

 

9,220

 

 

10,565,843

 

Series A (MBIA), 6.25%, 10/01/18

 

 

5,000

 

 

5,451,550

 

South Lake County Hospital District, RB, South Lake Hospital Inc, 5.80%, 10/01/34

 

 

1,750

 

 

1,638,228

 

 

 

 

 

 




 

 

 

 

 

 

26,855,183

 









Housing — 4.0%

 

 

 

 

 

 

 

Escambia County HFA, RB, Multi-County Program, Series A, AMT (MBIA):

 

 

 

 

 

 

 

6.30%, 10/01/20

 

 

80

 

 

81,502

 

6.38%, 10/01/26

 

 

305

 

 

310,871

 

Florida HFA, RB, Homeowner Mortgage, Series 2, AMT (MBIA):

 

 

 

 

 

 

 

5.75%, 7/01/14

 

 

845

 

 

846,158

 

5.90%, 7/01/29

 

 

7,860

 

 

7,938,128

 

Florida Housing Finance Corp., RB, Homeowner Mortgage:

 

 

 

 

 

 

 

Series 4, AMT (FSA), 6.25%, 7/01/22

 

 

565

 

 

582,617

 

Series 11, AMT (FSA), 5.95%, 1/01/32

 

 

5,880

 

 

5,888,996

 

Florida Housing Finance Corp., RB, Housing, Waverly Apartments, Series C-1, AMT (FSA), 6.30%, 7/01/30

 

 

2,055

 

 

2,103,888

 

Lee County HFA, RB, Multi-County Program, Series A-1, AMT (GNMA), 7.20%, 3/01/33

 

 

60

 

 

60,924

 

Lee County HFA, RB, Series A-2, AMT (GNMA), 6.30%, 3/01/29

 

 

200

 

 

203,756

 

Manatee County HFA, Refunding RB, S/F, Sub-Series 1, AMT (GNMA), 6.25%, 11/01/28

 

 

305

 

 

310,633

 

Miami-Dade County HFA, Florida, RB, Mortgage, Marbrisa Apartments Project, Series 2A, AMT (FSA), 6.00%, 8/01/26

 

 

2,185

 

 

2,232,043

 

 

 

 

 

 




 

 

 

 

 

 

20,559,516

 









State — 1.0%

 

 

 

 

 

 

 

Florida Municipal Loan Council, RB, Series B (MBIA):

 

 

 

 

 

 

 

5.38%, 11/01/25

 

 

1,285

 

 

1,291,810

 

5.38%, 11/01/30

 

 

3,650

 

 

3,661,169

 

 

 

 

 

 




 

 

 

 

 

 

4,952,979

 









Transportation — 22.6%

 

 

 

 

 

 

 

County of Lee Florida, RB, Series A, AMT (FSA), 6.00%, 10/01/29

 

 

19,925

 

 

20,152,543

 

County of Miami-Dade Florida, RB, Miami International Airport, Series A, AMT (FSA):

 

 

 

 

 

 

 

6.00%, 10/01/24

 

 

1,000

 

 

1,010,560

 

6.00%, 10/01/29

 

 

8,000

 

 

8,037,360

 

5.50%, 10/01/41

 

 

11,400

 

 

11,083,308

 

County of Miami-Dade Florida, RB, Series A, AMT (FSA):

 

 

 

 

 

 

 

5.00%, 10/01/33

 

 

10,010

 

 

9,049,240

 

5.13%, 10/01/35

 

 

11,105

 

 

10,353,858

 

Hillsborough County Aviation Authority, Florida, RB, Series C, AMT (AGC), 5.75%, 10/01/26

 

 

2,875

 

 

2,963,004

 

Jacksonville Port Authority, RB, AMT:

 

 

 

 

 

 

 

(AGC), 6.00%, 11/01/38

 

 

7,740

 

 

7,816,858

 

(MBIA), 5.63%, 11/01/26

 

 

1,870

 

 

1,854,610

 

Miami-Dade County Expressway Authority, Florida, RB, Series B (MBIA), 5.25%, 7/01/27

 

 

8,995

 

 

9,151,603

 

Miami-Dade County Expressway Authority, Florida, Refunding RB (MBIA), 5.13%, 7/01/25

 

 

12,250

 

 

12,395,530

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

 

Par
(000)

 

 

Value

 









Florida (concluded)

 

 

 

 

 

 

 









Transportation (concluded)

 

 

 

 

 

 

 

Miami-Dade County IDA, RB, Airis Miami II LLC Project, AMT (AMBAC), 6.00%, 10/15/19

 

$

5,100

 

$

4,938,228

 

Orlando & Orange County Expressway Authority, RB, Series B (AMBAC):

 

 

 

 

 

 

 

5.00%, 7/01/30

 

 

1,750

 

 

1,758,365

 

5.00%, 7/01/35

 

 

15,105

 

 

14,974,040

 

 

 

 

 

 




 

 

 

 

 

 

115,539,107

 









Utilities — 19.4%

 

 

 

 

 

 

 

City of Jacksonville Florida, RB, United Water Florida Project, AMT (AMBAC), 6.35%, 8/01/25

 

 

1,500

 

 

1,500,165

 

City of Miami Beach Florida, RB (MBIA):

 

 

 

 

 

 

 

5.75%, 9/01/16

 

 

1,630

 

 

1,704,703

 

5.25%, 9/01/20

 

 

1,000

 

 

1,036,000

 

5.25%, 9/01/25

 

 

4,400

 

 

4,448,180

 

5.38%, 9/01/30

 

 

1,910

 

 

1,921,670

 

City of Miami Beach Florida, RB, Water and Sewer Revenue (AMBAC):

 

 

 

 

 

 

 

5.63%, 9/01/18

 

 

2,690

 

 

2,803,007

 

5.75%, 9/01/25

 

 

10,600

 

 

10,868,286

 

City of Panama City Florida, RB, Series B (MBIA), 5.25%, 10/01/22

 

 

3,000

 

 

3,057,420

 

City of Port Saint Lucie Florida, RB (MBIA):

 

 

 

 

 

 

 

5.25%, 9/01/26

 

 

1,280

 

 

1,292,314

 

5.25%, 9/01/27

 

 

1,345

 

 

1,354,402

 

County of Miami-Dade Florida, RB:

 

 

 

 

 

 

 

(FSA), 5.50%, 10/01/15

 

 

2,945

 

 

3,166,022

 

(FSA), 5.50%, 10/01/16

 

 

3,105

 

 

3,338,030

 

(MBIA), 5.25%, 10/01/30

 

 

365

 

 

369,336

 

County of Nassau Florida, RB (MBIA), 5.13%, 9/01/33

 

 

2,675

 

 

2,626,101

 

County of Saint Johns Florida, RB (FSA):

 

 

 

 

 

 

 

5.00%, 10/01/31

 

 

3,200

 

 

3,231,648

 

5.00%, 10/01/35

 

 

1,320

 

 

1,321,320

 

5.00%, 10/01/37

 

 

7,285

 

 

7,251,999

 

Emerald Coast Utilities Authority, RB, System (MBIA):

 

 

 

 

 

 

 

5.25%, 1/01/26

 

 

1,130

 

 

1,159,888

 

5.25%, 1/01/36

 

 

1,395

 

 

1,375,317

 

Saint Lucie West Services District, RB (MBIA):

 

 

 

 

 

 

 

5.25%, 10/01/34

 

 

1,720

 

 

1,712,793

 

5.00%, 10/01/38

 

 

4,750

 

 

4,492,597

 

Saint Lucie West Services District, RB, Senior Lien (MBIA), 6.00%, 10/01/22

 

 

3,250

 

 

3,394,918

 

Sunrise Florida Excise Tax & Special Assessment, Refunding RB (AMBAC), 5.20%, 10/01/22

 

 

2,250

 

 

2,349,742

 

Tampa Bay Florida Water Utility System Revenue, RB (FGIC), 6.00%, 10/01/11 (b)

 

 

30,335

 

 

33,547,477

 

 

 

 

 

 




 

 

 

 

 

 

99,323,335

 









Total Municipal Bonds in Florida

 

 

 

 

 

407,004,531

 









 

 

 

 

 

 

 

 









Georgia — 2.5%

 

 

 

 

 

 

 









Transportation — 1.9%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB, General, Subordinate Lien, Series C (FSA), 5.00%, 1/01/33

 

 

9,700

 

 

9,773,817

 









Utilities — 0.6%

 

 

 

 

 

 

 

County of Fulton Georgia, RB (MBIA), 5.25%, 1/01/35

 

 

3,000

 

 

3,032,160

 









Total Municipal Bonds in Georgia

 

 

 

 

 

12,805,977

 










 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

31



 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Investment Fund (MFL)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Illinois — 3.1%

 

 

 

 

 

 

 









Education — 0.8%

 

 

 

 

 

 

 

Chicago Board of Education, Illinois, GO, Chicago School Reform Board, Series A (MBIA), 5.50%, 12/01/26

 

$

3,745

 

$

4,171,556

 









Transportation — 1.4%

 

 

 

 

 

 

 

Chicago Transit Authority, RB, Federal Transit Administration Section 5309, Series A (AGC), 6.00%, 6/01/26

 

 

6,315

 

 

7,152,495

 









Utilities — 0.9%

 

 

 

 

 

 

 

City of Chicago Illinois, Refunding RB, Second Lien (MBIA), 5.50%, 1/01/30

 

 

4,075

 

 

4,338,286

 









Total Municipal Bonds in Illinois

 

 

 

 

 

15,662,337

 









 

 

 

 

 

 

 

 









Indiana — 2.5%

 

 

 

 

 

 

 









Utilities — 2.5%

 

 

 

 

 

 

 

Indianapolis Local Public Improvement Bond Bank, RB, Waterworks Project, Series A (AGC), 5.50%, 1/01/38

 

 

12,140

 

 

12,605,812

 









Total Municipal Bonds in Indiana

 

 

 

 

 

12,605,812

 









 

 

 

 

 

 

 

 









Iowa — 1.1%

 

 

 

 

 

 

 









Health — 1.1%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Iowa Health System (AGC), 5.25%, 2/15/29

 

 

5,500

 

 

5,532,450

 









Total Municipal Bonds in Iowa

 

 

 

 

 

5,532,450

 









 

 

 

 

 

 

 

 









Kentucky — 1.3%

 

 

 

 

 

 

 









State — 0.8%

 

 

 

 

 

 

 

Kentucky State Property & Buildings Commission, Kentucky, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/28

 

 

4,000

 

 

4,269,200

 









Utilities — 0.5%

 

 

 

 

 

 

 

Kentucky Municipal Power Agency, RB, Prairie State Project, Series A (MBIA), 5.25%, 9/01/42

 

 

2,570

 

 

2,632,348

 









Total Municipal Bonds in Kentucky

 

 

 

 

 

6,901,548

 









 

 

 

 

 

 

 

 









Louisiana — 1.5%

 

 

 

 

 

 

 









State — 1.2%

 

 

 

 

 

 

 

Louisiana State Citizens Property Insurance Corp., RB, Series C-3 (AGC), 6.13%, 6/01/25

 

 

5,475

 

 

6,069,968

 









Transportation — 0.3%

 

 

 

 

 

 

 

New Orleans Aviation Board, Louisiana, Refunding RB, Restructuring Garbs:

 

 

 

 

 

 

 

Series A-1 (AGC), 6.00%, 1/01/23

 

 

500

 

 

542,715

 

Series A-2 (AGC), 6.00%, 1/01/23

 

 

720

 

 

781,510

 

 

 

 

 

 




 

 

 

 

 

 

1,324,225

 









Total Municipal Bonds in Louisiana

 

 

 

 

 

7,394,193

 









 

 

 

 

 

 

 

 









Michigan — 12.2%

 

 

 

 

 

 

 









Health — 1.3%

 

 

 

 

 

 

 

Royal Oak Hospital Finance Authority, Michigan, RB, William Beaumont Hospital, 8.25%, 9/01/39

 

 

5,780

 

 

6,605,153

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan (concluded)

 

 

 

 

 

 

 









State — 0.4%

 

 

 

 

 

 

 

Michigan State Building Authority, Refunding RB, Facilities Program, Series I (AGC):

 

 

 

 

 

 

 

5.25%, 10/15/24

 

$

775

 

$

793,910

 

5.25%, 10/15/25

 

 

1,435

 

 

1,461,992

 

 

 

 

 

 




 

 

 

 

 

 

2,255,902

 









Utilities — 10.5%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Second Lien:

 

 

 

 

 

 

 

Senior Lien, Series B (FSA), 7.50%, 7/01/33

 

 

2,220

 

 

2,620,244

 

Senior Lien, Series C-1 (FSA), 7.00%, 7/01/27

 

 

7,555

 

 

8,745,441

 

Series A (FGIC), 5.50%, 7/01/36

 

 

20,540

 

 

20,926,768

 

Series B (FSA), 6.25%, 7/01/36

 

 

6,320

 

 

6,710,260

 

Series B (FSA), 7.00%, 7/01/36

 

 

850

 

 

954,006

 

Series B (MBIA), 5.50%, 7/01/29

 

 

7,490

 

 

7,382,743

 

Series E (FGIC), 5.75%, 7/01/31

 

 

6,000

 

 

6,291,480

 

 

 

 

 

 




 

 

 

 

 

 

53,630,942

 









Total Municipal Bonds in Michigan

 

 

 

 

 

62,491,997

 









 

 

 

 

 

 

 

 









Minnesota — 2.2%

 

 

 

 

 

 

 









Health — 2.2%

 

 

 

 

 

 

 

City of Minneapolis Minnesota, RB, Fairview Health Services, Series B (AGC), 6.50%, 11/15/38

 

 

9,900

 

 

11,147,400

 









Total Municipal Bonds in Minnesota

 

 

 

 

 

11,147,400

 









 

 

 

 

 

 

 

 









New Jersey — 2.3%

 

 

 

 

 

 

 









Health — 1.3%

 

 

 

 

 

 

 

New Jersey Health Care Facilities Financing Authority, RB, Virtua Health (AGC), 5.50%, 7/01/38

 

 

6,500

 

 

6,713,850

 









State — 1.0%

 

 

 

 

 

 

 

New Jersey EDA, RB, School Facilities Construction, Series Z (AGC), 6.00%, 12/15/34

 

 

4,350

 

 

4,823,846

 









Total Municipal Bonds in New Jersey

 

 

 

 

 

11,537,696

 









 

 

 

 

 

 

 

 









New York — 4.7%

 

 

 

 

 

 

 









County/City/Special District/School District — 2.0%

 

 

 

 

 

 

 

New York City Transitional Finance Authority, RB, Fiscal 2009:

 

 

 

 

 

 

 

Series S-3, 5.25%, 1/15/39

 

 

5,625

 

 

5,754,206

 

Series S-4 (AGC), 5.50%, 1/15/29

 

 

4,000

 

 

4,277,640

 

 

 

 

 

 




 

 

 

 

 

 

10,031,846

 









State — 2.7%

 

 

 

 

 

 

 

New York State Dormitory Authority, RB, Education, Series B, 5.25%, 3/15/38

 

 

13,500

 

 

14,065,245

 









Total Municipal Bonds in New York

 

 

 

 

 

24,097,091

 










 

 

 

See Notes to Financial Statements.




32

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

 

Schedule of Investments (continued)

BlackRock MuniHoldings Insured Investment Fund (MFL)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Puerto Rico — 1.4%

 

 

 

 

 

 

 









State — 1.4%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39

 

$

6,610

 

$

7,088,961

 









Total Municipal Bonds in Puerto Rico

 

 

 

 

 

7,088,961

 









 

 

 

 

 

 

 

 









Texas — 11.6%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.2%

 

 

 

 

 

 

 

City of Dallas Texas, Refunding RB & Improvement (AGC), 5.25%, 8/15/38

 

 

4,000

 

 

4,074,440

 

Lubbock Copper Texas Independent School District, GO, School Building (AGC), 5.75%, 2/15/42

 

 

1,985

 

 

2,080,637

 

 

 

 

 

 




 

 

 

 

 

 

6,155,077

 









Health — 0.7%

 

 

 

 

 

 

 

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.25%, 12/01/35

 

 

1,500

 

 

1,642,575

 

Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Christus Health, Series A (AGC), 6.50%, 7/01/37

 

 

1,770

 

 

1,925,990

 

 

 

 

 

 




 

 

 

 

 

 

3,568,565

 









Transportation — 2.7%

 

 

 

 

 

 

 

North Texas Tollway Authority, Refunding RB, System, First Tier:

 

 

 

 

 

 

 

Series A (AGC), 5.75%, 1/01/40

 

 

7,000

 

 

7,368,340

 

Series K-1 (AGC), 5.75%, 1/01/38

 

 

6,400

 

 

6,788,352

 

 

 

 

 

 




 

 

 

 

 

 

14,156,692

 









Utilities — 7.0%

 

 

 

 

 

 

 

City of Houston Texas, Refunding RB, Combined, First Lien, Series A (AGC):

 

 

 

 

 

 

 

6.00%, 11/15/35

 

 

12,700

 

 

14,321,282

 

6.00%, 11/15/36

 

 

9,435

 

 

10,635,415

 

City of Houston Texas, Refunding RB, First Lien, Series A (AGC), 5.38%, 11/15/38

 

 

5,000

 

 

5,193,050

 

Lower Colorado River Authority, Refunding RB (AGC), 5.50%, 5/15/36

 

 

5,325

 

 

5,523,197

 

 

 

 

 

 




 

 

 

 

 

 

35,672,944

 









Total Municipal Bonds in Texas

 

 

 

 

 

59,553,278

 









 

 

 

 

 

 

 

 









Virginia — 1.0%

 

 

 

 

 

 

 









State — 1.0%

 

 

 

 

 

 

 

Virginia Public School Authority, Virginia, RB, School Financing, 6.50%, 12/01/35

 

 

4,300

 

 

4,885,230

 









Total Municipal Bonds in Virginia

 

 

 

 

 

4,885,230

 









Total Municipal Bonds — 135.3%

 

 

 

 

 

691,386,578

 









 

 

 

 

 

 

 

 









 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 









California — 0.5%

 

 

 

 

 

 

 









Education — 0.5%

 

 

 

 

 

 

 

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

 

 

2,400

 

 

2,416,536

 









Total Municipal Bonds Transferred to Tender Option Bonds in California

 

 

 

 

 

2,416,536

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

Par
(000)

 

Value

 







District of Columbia — 0.7%

 

 

 

 

 

 

 









Utilities — 0.7%

 

 

 

 

 

 

 

District of Columbia Water & Sewer Authority, Refunding RB, Series A, 6.00%, 10/01/35

 

$

3,381

 

$

3,717,978

 









Total Municipal Bonds Transferred to Tender Option Bonds in District of Columbia

 

 

 

 

 

3,717,978

 









 

 

 

 

 

 

 

 









Florida — 9.6%

 

 

 

 

 

 

 









County/City/Special District/School District — 4.0%

 

 

 

 

 

 

 

Polk County School Board, COP, Master Lease, Series A (FSA), 5.50%, 1/01/25

 

 

9,890

 

 

10,119,250

 

City of Jacksonville, Florida, RB, Better Jacksonville (MBIA), 5.00%, 10/01/27

 

 

10,000

 

 

10,173,000

 

 

 

 

 

 




 

 

 

 

 

 

20,292,250

 









Housing — 2.4%

 

 

 

 

 

 

 

Manatee County HFA, RB, Series A, AMT (GNMA), 5.90%, 9/01/40

 

 

4,253

 

 

4,288,613

 

Lee County HFA, RB, Multi-County Program, Series A-2, AMT (GNMA), 6.00%, 9/01/40

 

 

7,620

 

 

8,232,572

 

 

 

 

 

 




 

 

 

 

 

 

12,521,185

 









Transportation— 2.0%

 

 

 

 

 

 

 

Hillsborough County Aviation Authority, Florida, RB, Series A, AMT (AGC), 5.50%, 10/01/38

 

 

10,657

 

 

10,429,328

 









Utilities — 1.2%

 

 

 

 

 

 

 

Jacksonville Electric Authority, RB, Issue Three, Series Two, River Power Park, 5.00%, 10/01/37

 

 

6,080

 

 

6,034,400

 









Total Municipal Bonds Transferred to Tender Option Bonds in Florida

 

 

 

 

 

49,277,163

 









 

 

 

 

 

 

 

 









Kentucky — 0.1%

 

 

 

 

 

 

 









State — 0.1%

 

 

 

 

 

 

 

Kentucky State Property & Buildings Commission, Refunding RB, Project No. 93 (AGC), 5.25%, 2/01/27

 

 

404

 

 

433,187

 









Total Municipal Bonds Transferred to Tender Option Bonds in Kentucky

 

 

 

 

 

433,187

 









 

 

 

 

 

 

 

 









Nevada — 2.7%

 

 

 

 

 

 

 









County/City/Special District/School District — 2.7%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO:

 

 

 

 

 

 

 

Limited Tax, 6.00%, 7/01/38

 

 

8,000

 

 

8,666,000

 

Series B, 5.50%, 7/01/29

 

 

5,008

 

 

5,373,848

 

 

 

 

 

 




 

 

 

 

 

 

14,039,848

 









Total Municipal Bonds Transferred to Tender Option Bonds in Nevada

 

 

 

 

 

14,039,848

 









 

 

 

 

 

 

 

 









New York — 1.1%

 

 

 

 

 

 

 









County/City/Special District/School District — 1.1%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB, Series FF-2, 5.50%, 6/15/40

 

 

4,994

 

 

5,346,412

 









Total Municipal Bonds Transferred to Tender Option Bonds in New York

 

 

 

 

 

5,346,412

 










 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

33



 

 


 

Schedule of Investments (concluded)

BlackRock MuniHoldings Insured Investment Fund (MFL)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (c)

 

Par
(000)

 

Value

 







Texas — 2.5%

 

 

 

 

 

 

 









Utilities — 2.5%

 

 

 

 

 

 

 

City of San Antonio, Texas, Refunding RB, Series A, 5.25%, 2/01/31

 

$

12,027

 

$

12,600,254

 









Total Municipal Bonds Transferred to
Tender Option Bonds in Texas

 

 

 

 

 

12,600,254

 









Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 17.2%

 

 

 

 

 

87,831,378

 









Total Long-Term Investments
(Cost — $764,520,302) — 152.5%

 

 

 

 

 

779,217,956

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

Short-Term Securities

 

 

 

 

 

 

 









New York — 4.8%

 

 

 

 

 

 

 









Metropolitan Transportation Authority, Refunding RB,
VRDN, Series D-1 (FSA), 0.50%, 9/07/09 (d)

 

 

24,900

 

 

24,900,000

 









 

 

 

 

 

 

 

 

 

 

Shares

 

 

 

 








Money Market — 5.3%

 

 

 

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.22% (e)(f)

 

 

27,005,779

 

 

27,005,779

 









Total Short-Term Securities
(Cost — $51,905,779) — 10.1%

 

 

 

 

 

51,905,779

 









Total Investments (Cost — $816,426,081*) — 162.6%

 

 

 

 

 

831,123,735

 

Other Assets Less Liabilities — 0.4%

 

 

 

 

 

2,056,737

 

Liability for Trust Certificates, Including Interest Expense and Fees Payable — (9.3)%

 

 

 

 

 

(47,500,554

)

Preferred Shares, at Redemption Value — (53.7)%

 

 

 

 

 

(274,667,253

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

511,012,665

 

 

 

 

 

 





 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

769,063,934

 

 

 

 

 

 




Gross unrealized appreciation

 

 

 

 

$

31,908,396

 

Gross unrealized depreciation

 

 

 

 

 

(17,212,014

)

 

 

 

 

 




Net unrealized appreciation

 

 

 

 

$

14,696,382

 

 

 

 

 

 





 

 

(a)

When-issued security.


 

 

 

 

 

 

 

 









 

 

Market

 

Unrealized

 

Counterparty

 

Value

 

Appreciation

 







Wells Fargo Bank NA

 

$

724,787

 

$

11,371

 

Siebert Brandford Shank & Co. LLC

 

$

4,100,224

 

$

64,325

 

Morgan Keegan & Co., Inc.

 

$

3,763,715

 

$

59,046

 

Raymond C Forbes & Co., Inc.

 

$

1,760,197

 

$

27,614

 










 

 

(b)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(c)

Securities represent bonds transferred to tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(d)

Security may have a maturity of more than one year at time of issuance, but has variable rate and demand features that qualify it as a short-term security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.

 

 

(e)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 









 

 

Net

 

 

 

 

Affiliate

 

Activity

 

Income

 







CMA Florida Municipal Money Fund

 

$

(1,473,234

)

$

112,978

 

FFI Institutional Tax-Exempt Fund

 

$

27,005,779

 

$

33,241

 










 

 

 

(f)

Represents the current yield as of report date.

 

 

 

For Trust compliance purposes,the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. This definition may not apply for purposes of this report, which may combine sector sub-classifications for reporting ease.

 

 

 

Effective September 1,2008,the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

 

 

 

 

The following table summarizes the inputs used as of August 31, 2009 in determining the fair valuation of the Trust’s investments:


 

 

 

 

 






 

 

Investments in

 

Valuation Inputs

 

Securities

 





 

 

Assets

 

 

 



Level 1 — Short-Term Securities

 

$

27,005,779

 

Level 2:

 

 

 

 

Long-Term Investments1

 

 

779,217,956

 

Short-Term Securities

 

 

24,900,000

 

 

 




Level 2 — Total

 

 

804,117,956

 

 

 




Level 3

 

 

 

 

 




Total

 

$

831,123,735

 

 

 





 

 

1

See above Schedule of Investments for values in each sector.


 

 

 

See Notes to Financial Statements.

 




34

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

 

Schedule of Investments August 31, 2009

BlackRock MuniVest Fund, Inc. (MVF)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Alabama — 2.2%

 

 

 

 

 

 

 

Camden Industrial Development Board, Alabama, Refunding RB, Weyerhaeuser, Series A, 6.13%, 12/01/13 (a)

 

$

2,550

 

$

2,979,037

 

Prattville Industrial Development Board, Alabama, RB, International Paper Co. Projects, Series A, AMT, 4.75%, 12/01/30

 

 

6,500

 

 

4,593,095

 

Selma Industrial Development Board, Alabama, Refunding RB, International Paper Co. Project, Series B, 5.50%, 5/01/20

 

 

5,000

 

 

4,763,050

 

 

 

 

 

 




 

 

 

 

 

 

12,335,182

 









Arizona — 1.3%

 

 

 

 

 

 

 

Maricopa County IDA, Arizona, RB, Arizona Charter Schools Project 1, Series A, 6.75%, 7/01/29

 

 

4,100

 

 

2,764,835

 

Pima County IDA, RB, Arizona Charter School Project:

 

 

 

 

 

 

 

Series E, 7.25%, 7/01/31

 

 

2,025

 

 

1,676,052

 

Series I, 6.10%, 7/01/24 (b)

 

 

490

 

 

379,476

 

Series I, 6.30%, 7/01/31 (b)

 

 

985

 

 

727,107

 

Series O, 5.00%, 7/01/26

 

 

1,545

 

 

1,027,131

 

Pima County IDA, RB, Charter Schools, II, Series A, 6.75%, 7/01/21

 

 

940

 

 

803,286

 

 

 

 

 

 




 

 

 

 

 

 

7,377,887

 









California — 12.3%

 

 

 

 

 

 

 

California HFA, RB, Home Mortgage, Series K, AMT, 5.50%, 2/01/42

 

 

4,535

 

 

4,449,878

 

California Health Facilities Financing Authority, RB:

 

 

 

 

 

 

 

California, Catholic Healthcare West, Series A, 6.00%, 7/01/34

 

 

1,055

 

 

1,061,900

 

Saint Joseph Health System, Series A, 5.75%, 7/01/39

 

 

5,000

 

 

5,033,150

 

California State Public Works Board, RB:

 

 

 

 

 

 

 

Department Corrections, Series C, 5.50%, 6/01/22

 

 

5,000

 

 

5,026,800

 

Department Corrections, Series C, 5.50%, 6/01/23

 

 

6,000

 

 

6,020,160

 

Department Mental Health, Coalinga, Series A, 5.13%, 6/01/29

 

 

11,075

 

 

10,263,092

 

California Statewide Communities Development Authority, RB, Health Facilities, Memorial Health Services, Series A, 6.00%, 10/01/23

 

 

5,240

 

 

5,378,598

 

City of Chula Vista California, RB, San Diego Gas, Series B, AMT, 5.00%, 12/01/27

 

 

1,250

 

 

1,112,375

 

Golden State Tobacco Securitization Corp., California, RB (a):

 

 

 

 

 

 

 

Series A-3, 7.88%, 6/01/13

 

 

10,725

 

 

13,038,597

 

Series A-4, 7.80%, 6/01/13

 

 

3,750

 

 

4,549,275

 

Series A-5, 7.88%, 6/01/13

 

 

1,425

 

 

1,732,401

 

State of California, GO, Various Purpose, 6.50%, 4/01/33

 

 

9,700

 

 

10,726,551

 

 

 

 

 

 




 

 

 

 

 

 

68,392,777

 









Colorado — 1.1%

 

 

 

 

 

 

 

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

 

 

2,500

 

 

2,710,600

 

Colorado Health Facilities Authority, RB, Evangelical Lutheran, Series A, 5.25%, 6/01/34

 

 

3,000

 

 

2,715,090

 

Colorado Housing & Finance Authority, Colorado, RB, S/F Program, Senior, Series A-2, AMT:

 

 

 

 

 

 

 

6.60%, 5/01/28

 

 

400

 

 

405,704

 

7.50%, 4/01/31

 

 

160

 

 

171,696

 

 

 

 

 

 




 

 

 

 

 

 

6,003,090

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 







Connecticut — 0.4%

 

 

 

 

 

 

 

Mohegan Tribe of Indians of Connecticut, RB, Public Improvement, Priority Distribution, 6.25%, 1/01/31

 

$

2,810

 

$

2,066,109

 









District of Columbia — 0.2%

 

 

 

 

 

 

 

Metropolitan Washington DC Airports Authority Dulles Toll Road Revenue, RB, First Senior Lien, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

415

 

 

415,469

 

5.25%, 10/01/44

 

 

650

 

 

651,430

 

 

 

 

 

 




 

 

 

 

 

 

1,066,899

 









Florida — 5.1%

 

 

 

 

 

 

 

County of Miami-Dade Florida:

 

 

 

 

 

 

 

GO, Building Better Community Program, Series B, 6.38%, 7/01/28

 

 

4,630

 

 

5,176,155

 

GO, Building Better Community Program, Series B-1, 5.63%, 7/01/38

 

 

5,000

 

 

5,109,500

 

RB, Miami International Airport, AMT (Syncora), (AGC), 5.00%, 10/01/40

 

 

10,000

 

 

9,006,900

 

Hillsborough County IDA, RB, H Lee Moffitt Cancer Center Project, Series A, 5.25%, 7/01/37

 

 

6,500

 

 

5,701,020

 

Miami-Dade County IDA, RB, Waste Management Inc. Project, 1, AMT, 7.00%, 12/01/18

 

 

3,200

 

 

3,303,776

 

 

 

 

 

 




 

 

 

 

 

 

28,297,351

 









Georgia — 2.7%

 

 

 

 

 

 

 

Gainesville Redevelopment Authority, Refunding RB, Riverside Military Academy, 5.13%, 3/01/37

 

 

1,100

 

 

653,840

 

Milledgeville & Baldwin County Development Authority, RB, Georgia College & State University Foundation, 5.63%, 9/01/14 (a)

 

 

3,000

 

 

3,566,310

 

Monroe County Development Authority, Georgia, RB, Oglethorpe Power Corp. Scherer, Series A, 6.80%, 1/01/11

 

 

4,785

 

 

5,069,708

 

Municipal Electric Authority of Georgia, RB:

 

 

 

 

 

 

 

Series W, 6.60%, 1/01/18 (c)

 

 

250

 

 

290,040

 

Series W, 6.60%, 1/01/18

 

 

4,585

 

 

5,354,821

 

 

 

 

 

 




 

 

 

 

 

 

14,934,719

 









Idaho — 0.0%

 

 

 

 

 

 

 

Idaho Housing & Finance Association, RB, S/F Mortgage, Senior, Series E-2, AMT, 6.90%, 1/01/27

 

 

160

 

 

160,235

 









Illinois — 12.0%

 

 

 

 

 

 

 

City of Chicago Illinois:

 

 

 

 

 

 

 

RB, General, Airport 3rd Lien, Series B-2, AMT (MBIA), 6.00%, 1/01/27

 

 

17,080

 

 

17,240,210

 

RB, Series C, AMT (GNMA), 7.00%, 3/01/32

 

 

60

 

 

61,883

 

Refunding RB, General Airport Third Lien, Series A, AMT (MBIA), 5.75%, 1/01/19

 

 

5,000

 

 

5,040,750

 

Illinois Finance Authority, RB:

 

 

 

 

 

 

 

Advocate Health Care Network, Series D, 6.50%, 11/01/38

 

 

9,700

 

 

10,528,283

 

Community Rehabilitation Providers Facilities, Series A, 6.50%, 7/01/22

 

 

2,140

 

 

2,142,375

 

Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39

 

 

9,000

 

 

9,589,770

 

Illinois Finance Authority, Refunding RB, Community Rehabilitation Providers, Series A, 6.00%, 7/01/15

 

 

320

 

 

320,224

 

Kane & De Kalb Counties Community Unit School District No. 302, Illinois, GO, School (FGIC), 5.75%, 2/01/14 (a)

 

 

30

 

 

35,038

 


 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

35



 

 


 

 

Schedule of Investments (continued)

BlackRock MuniVest Fund, Inc. (MVF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Illinois (concluded)

 

 

 

 

 

 

 

McLean & Woodford Counties Community Unit School District No. 5, Illinois, GO (FSA), 6.25%, 12/01/14

 

$

1,005

 

$

1,107,751

 

Regional Transportation Authority, RB:

 

 

 

 

 

 

 

Series A (AMBAC), 7.20%, 11/01/20

 

 

3,500

 

 

4,357,185

 

Series C (MBIA), 7.75%, 6/01/20

 

 

4,000

 

 

5,177,400

 

Village of Hodgkins Illinois, RB, MBM Project, AMT, 6.00%, 11/01/23

 

 

10,000

 

 

10,000,000

 

Will County School District No. 122, Illinois, GO, Series A (FSA):

 

 

 

 

 

 

 

6.50%, 11/01/10 (a)

 

 

395

 

 

422,370

 

6.50%, 11/01/13

 

 

505

 

 

533,987

 

 

 

 

 

 




 

 

 

 

 

 

66,557,226

 









Indiana — 6.2%

 

 

 

 

 

 

 

Indiana Health & Educational Facilities Financing Authority, RB, Clarian Health Obligation, Series A, 5.25%, 2/15/40

 

 

8,980

 

 

7,862,170

 

Indiana Transportation Finance Authority, Indiana, RB, Series A, 6.80%, 12/01/16

 

 

8,195

 

 

9,496,694

 

Indianapolis Local Public Improvement Bond Bank, RB, Series D, 6.75%, 2/01/14

 

 

15,335

 

 

17,042,706

 

 

 

 

 

 




 

 

 

 

 

 

34,401,570

 









Kansas — 0.5%

 

 

 

 

 

 

 

Sedgwick & Shawnee Counties Kansas, RB, Mortgage Backed Securities Program, Series A-4, AMT (GNMA), 5.95%, 12/01/33

 

 

2,695

 

 

2,746,205

 









Kentucky — 1.1%

 

 

 

 

 

 

 

Louisville, Jefferson County Metropolitan Government, RB, Norton Healthcare Inc., 5.25%, 10/01/36

 

 

6,795

 

 

6,158,580

 









Louisiana — 3.1%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority, RB, Franciscan Missionaries, Series A:

 

 

 

 

 

 

 

5.00%, 8/15/33

 

 

8,720

 

 

7,355,930

 

5.25%, 8/15/36

 

 

11,660

 

 

10,054,418

 

 

 

 

 

 




 

 

 

 

 

 

17,410,348

 









Maine — 0.3%

 

 

 

 

 

 

 

Portland Housing Development Corp., RB, Senior Living, Series A:

 

 

 

 

 

 

 

5.70%, 8/01/21

 

 

775

 

 

684,124

 

6.00%, 2/01/34

 

 

1,190

 

 

964,269

 

 

 

 

 

 




 

 

 

 

 

 

1,648,393

 









Maryland — 0.5%

 

 

 

 

 

 

 

Maryland Community Development Administration, RB, Residential, Series D, AMT, 4.90%, 9/01/42

 

 

3,250

 

 

2,945,475

 









Massachusetts — 9.1%

 

 

 

 

 

 

 

City of Boston Massachusetts, RB, 9.25%, 1/01/11 (c)

 

 

2,035

 

 

2,179,078

 

Massachusetts Bay Transportation Authority, Refunding RB, General Transportation System, Series A, 7.00%, 3/01/19

 

 

3,010

 

 

3,660,431

 

Massachusetts HFA, Massachusetts, RB, Housing:

 

 

 

 

 

 

 

Series A, AMT, 5.20%, 12/01/37

 

 

3,000

 

 

2,859,060

 

Series D, AMT, 4.85%, 6/01/40

 

 

3,000

 

 

2,655,510

 

Massachusetts Housing Finance Agency, Massachusetts, RB, S/F, Series 130, AMT, 5.00%, 12/01/32

 

 

2,500

 

 

2,358,775

 

Massachusetts Water Resources Authority, RB, Series A, 6.50%, 7/15/19 (c)

 

 

30,000

 

 

37,020,300

 

 

 

 

 

 




 

 

 

 

 

 

50,733,154

 










 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Michigan — 7.2%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, Second Lien, Series B (FSA):

 

 

 

 

 

 

 

6.25%, 7/01/36

 

$

2,500

 

$

2,654,375

 

7.00%, 7/01/36

 

 

1,250

 

 

1,402,950

 

Macomb County Hospital Finance Authority, Michigan, RB, Mount Clemens General Hospital, Series B (a):

 

 

 

 

 

 

 

5.75%, 11/15/13

 

 

3,715

 

 

4,316,681

 

5.88%, 11/15/13

 

 

4,250

 

 

4,959,750

 

Michigan State Hospital Finance Authority, Michigan, RB, McLaren Health Care, 5.75%, 5/15/38

 

 

7,285

 

 

7,045,979

 

Michigan State Hospital Finance Authority, Michigan, Refunding RB:

 

 

 

 

 

 

 

Henry Ford Health System, Series A, 5.25%, 11/15/46

 

 

7,950

 

 

6,404,917

 

Hospital, Crittenton, Series A, 5.63%, 3/01/27

 

 

1,900

 

 

1,803,746

 

Hospital, Oakwood Obligation Group, Series A, 5.00%, 7/15/25

 

 

2,000

 

 

1,714,380

 

Hospital, Sinai Hospital, 6.70%, 1/01/26

 

 

1,000

 

 

749,660

 

Trinity Health, Series A, 6.00%, 12/01/20

 

 

4,200

 

 

4,324,446

 

Royal Oak Hospital Finance Authority, Michigan, RB, William Beaumont Hospital, 8.25%, 9/01/39

 

 

4,100

 

 

4,685,316

 

 

 

 

 

 




 

 

 

 

 

 

40,062,200

 









Minnesota — 0.3%

 

 

 

 

 

 

 

City of Saint Cloud Minnesota, RB, Saint Cloud Hospital Obligation Group, Series A (FSA), 6.25%, 5/01/17

 

 

1,405

 

 

1,455,257

 









Mississippi — 6.2%

 

 

 

 

 

 

 

County of Lowndes, Refunding RB:

 

 

 

 

 

 

 

Weyerhaeuser Co. Project, Series A, 6.80%, 4/01/22

 

 

9,160

 

 

8,880,620

 

Weyerhaeuser Co. Project, Series B, 6.70%, 4/01/22

 

 

4,500

 

 

4,323,690

 

Mississippi Business Finance Corp., RB, System Energy Resource Inc. Project, 5.88%, 4/01/22

 

 

20,705

 

 

19,268,280

 

Mississippi Business Finance Corp., Refunding RB, System Energy Resource Inc. Project, 5.90%, 5/01/22

 

 

2,250

 

 

2,099,520

 

 

 

 

 

 




 

 

 

 

 

 

34,572,110

 









Missouri — 0.5%

 

 

 

 

 

 

 

Missouri Development Finance Board, Missouri, RB, Branson, Series A, 5.50%, 12/01/32

 

 

2,600

 

 

2,344,706

 

Missouri Housing Development Commission, RB, S/F, Homeownership Loan, Series A-1, AMT (GNMA), 7.50%, 3/01/31

 

 

145

 

 

155,600

 

 

 

 

 

 




 

 

 

 

 

 

2,500,306

 









New Hampshire — 0.5%

 

 

 

 

 

 

 

New Hampshire Health & Education Facilities Authority, RB, Elliot Hospital, Series B, 5.60%, 10/01/22

 

 

2,675

 

 

2,689,365

 









New Jersey — 6.2%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax:

 

 

 

 

 

 

 

5.50%, 6/15/24

 

 

9,080

 

 

8,411,440

 

5.75%, 6/15/29

 

 

2,885

 

 

2,666,779

 

5.75%, 6/15/34

 

 

4,695

 

 

4,279,774

 

New Jersey EDA, Refunding RB, School Facilities Construction, Series AA, 5.25%, 12/15/33

 

 

10,000

 

 

10,308,000

 

New Jersey State Housing & Mortgage Finance Agency, RB, Series AA, 6.38%, 10/01/28

 

 

1,555

 

 

1,695,852

 

Tobacco Settlement Financing Corp., New Jersey, RB, 7.00%, 6/01/13 (a)

 

 

5,980

 

 

7,157,821

 

 

 

 

 

 




 

 

 

 

 

 

34,519,666

 










 

 

 

See Notes to Financial Statements.




36

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

 

Schedule of Investments (continued)

BlackRock MuniVest Fund, Inc. (MVF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









New York — 3.9%

 

 

 

 

 

 

 

City of New York New York, GO, Series A (MBIA), 6.38%, 5/15/14

 

$

965

 

$

1,008,589

 

Metropolitan Transportation Authority, RB, Series 2008 C:

 

 

 

 

 

 

 

6.25%, 11/15/23

 

 

3,245

 

 

3,655,330

 

6.50%, 11/15/28

 

 

14,925

 

 

16,829,281

 

 

 

 

 

 




 

 

 

 

 

 

21,493,200

 









North Carolina — 0.4%

 

 

 

 

 

 

 

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

 

 

4,105

 

 

2,344,448

 









Ohio — 4.0%

 

 

 

 

 

 

 

Buckeye Tobacco Settlement Financing Authority, RB, Asset-Backed, Senior, Turbo, Series A-2, 6.50%, 6/01/47

 

 

27,500

 

 

22,068,750

 









Pennsylvania — 0.4%

 

 

 

 

 

 

 

Philadelphia Authority for Industrial Development, RB:

 

 

 

 

 

 

 

Arbor House Inc. Project, Series E, 6.10%, 7/01/33

 

 

1,000

 

 

810,690

 

Rieder House Project, Series A, 6.10%, 7/01/33

 

 

1,355

 

 

1,098,485

 

Sayre Health Care Facilities Authority, RB, Guthrie Health, Series A, 6.25%, 12/01/18

 

 

410

 

 

424,407

 

 

 

 

 

 




 

 

 

 

 

 

2,333,582

 









Puerto Rico — 2.5%

 

 

 

 

 

 

 

Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 6.38%, 8/01/39

 

 

13,000

 

 

13,941,980

 









South Carolina — 1.6%

 

 

 

 

 

 

 

County of Georgetown South Carolina, RB, International Paper, Series A, AMT, 5.55%, 12/01/29

 

 

1,000

 

 

857,650

 

County of Richland South Carolina, RB, International Paper, AMT, 6.10%, 4/01/23

 

 

5,000

 

 

4,760,050

 

South Carolina State Housing Finance & Development Authority, RB, Series B-1, 5.55%, 7/01/39

 

 

3,265

 

 

3,297,258

 

 

 

 

 

 




 

 

 

 

 

 

8,914,958

 









South Dakota — 0.4%

 

 

 

 

 

 

 

South Dakota Health & Educational Facilities Authority, South Dakota, RB, Sanford Health, 5.00%, 11/01/40

 

 

2,605

 

 

2,429,970

 









Texas — 12.8%

 

 

 

 

 

 

 

Brazos River Authority, Refunding RB, Texas Utility Co., Series A, AMT, 7.70%, 4/01/33

 

 

3,055

 

 

1,500,035

 

Brazos River Harbor Navigation District, RB, Dow Chemical Co. Project, Series A-7, AMT, 6.63%, 5/15/33

 

 

11,460

 

 

10,702,036

 

Guadalupe-Blanco River Authority, RB, EI du Pont de Nemours & Co. Project, AMT, 6.40%, 4/01/26

 

 

10,250

 

 

10,251,845

 

Gulf Coast Waste Disposal Authority, Refunding RB, Series A, AMT, 6.10%, 8/01/24

 

 

4,000

 

 

3,808,080

 

Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B:

 

 

 

 

 

 

 

7.13%, 12/01/31

 

 

3,500

 

 

3,830,575

 

7.25%, 12/01/35

 

 

5,400

 

 

5,913,270

 

Harris County-Houston Sports Authority, RB, Senior Lien, Series G (MBIA), 5.75%, 11/15/20

 

 

5,500

 

 

5,552,415

 

Houston Industrial Development Corp., RB, Senior, Air Cargo, AMT, 6.38%, 1/01/23

 

 

1,790

 

 

1,456,541

 


 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 









Texas (concluded)

 

 

 

 

 

 

 

Houston, Texas Airport Systems, Refunding ARB, Senior Lien, Series A, 5.50%, 7/01/34

 

$

8,335

 

$

8,604,971

 

Mansfield ISD, Texas, GO, Refunding, 6.63%, 2/15/15

 

 

155

 

 

158,951

 

Matagorda County Navigation District No. 1, Texas, Refunding RB, College Centerpoint Energy Project, 5.60%, 3/01/27

 

 

9,355

 

 

8,906,334

 

North Texas Toll Highway Authority, RB, First Tier, Series A, 6.25%, 1/01/39

 

 

3,500

 

 

3,673,670

 

Port of Corpus Christi Authority of Nueces County Texas, RB, Celanese Project, Series A, 6.45%, 11/01/30

 

 

2,700

 

 

2,292,867

 

Red River Authority, Texas, RB, Celanese Project, Series B, AMT, 6.70%, 11/01/30

 

 

5,000

 

 

4,282,600

 

 

 

 

 

 




 

 

 

 

 

 

70,934,190

 









U.S. Virgin Islands — 1.4%

 

 

 

 

 

 

 

United States Virgin Islands, RB, Senior Secured, Hovensa Coker Project, AMT, 6.50%, 7/01/21

 

 

8,000

 

 

8,010,880

 









Vermont — 0.2%

 

 

 

 

 

 

 

Vermont Educational & Health Buildings Financing Agency, RB, Developmental & Mental Health, Series A, 6.38%, 6/15/22

 

 

1,000

 

 

914,490

 









Virginia — 1.5%

 

 

 

 

 

 

 

Chesterfield County IDA, RB, Virginia Electric & Power, Series A, 5.88%, 6/01/17

 

 

1,425

 

 

1,474,148

 

Fairfax County EDA, RB, Goodwin House Inc.:

 

 

 

 

 

 

 

5.13%, 10/01/37

 

 

2,000

 

 

1,570,140

 

5.13%, 10/01/42

 

 

7,015

 

 

5,379,242

 

 

 

 

 

 




 

 

 

 

 

 

8,423,530

 









Washington — 4.9%

 

 

 

 

 

 

 

Energy Northwest, Refunding RB, Series B, 7.13%, 7/01/16

 

 

14,320

 

 

18,014,846

 

Seattle Housing Authority, Washington, RB, Housing, Replacement Housing Projects, 6.13%, 12/01/32

 

 

2,305

 

 

1,872,259

 

Washington Health Care Facilities Authority, Washington, RB, Catholic Health Initiatives, D, 6.38%, 10/01/36

 

 

7,000

 

 

7,458,640

 

 

 

 

 

 




 

 

 

 

 

 

27,345,745

 









West Virginia — 0.5%

 

 

 

 

 

 

 

West Virginia State Hospital Finance Authority West Virginia, RB, Refunding & Improvement Charleston A, 5.63%, 9/01/32 (d)

 

 

2,500

 

 

2,457,275

 









Wisconsin — 2.6%

 

 

 

 

 

 

 

City of Milwaukee Wisconsin, RB, Senior, Air Cargo, AMT, 6.50%, 1/01/25

 

 

1,720

 

 

1,393,922

 

Wisconsin Health & Educational Facilities Authority, RB, Insured, Mortgage, Hudson Memorial Hospital, FHA, 5.70%, 1/15/29

 

 

4,500

 

 

4,543,470

 

Wisconsin Health & Educational Facilities Authority, RB, SynergyHealth Inc., 6.00%, 11/15/32

 

 

3,040

 

 

3,095,936

 

Wisconsin Housing & EDA, Wisconsin, RB, Series A, AMT, 5.63%, 3/01/31

 

 

5,360

 

 

5,437,506

 

 

 

 

 

 




 

 

 

 

 

 

14,470,834

 









Wyoming — 0.8%

 

 

 

 

 

 

 

Sweetwater County, RB, Wyoming Pollution Control Revenue, Refunding, 5.25%, 7/15/26

 

 

4,500

 

 

4,585,680

 









Total Municipal Bonds — 116.9%

 

 

 

 

 

649,703,616

 










 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

37



 

 


 

 

Schedule of Investments (continued)

BlackRock MuniVest Fund, Inc. (MVF)

 

(Percentages shown are based on Net Assets)


 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 







Arizona — 0.7%

 

 

 

 

 

 

 

Phoenix Civic Improvement Corp., RB, Junior Lien, Series A, 5.00%, 7/01/34

 

$

3,500

 

$

3,629,150

 









California — 1.9%

 

 

 

 

 

 

 

Los Angeles Community College District, California, GO, 2008 Election, Series A, 6.00%, 8/01/33

 

 

9,586

 

 

10,594,040

 









Connecticut — 2.2%

 

 

 

 

 

 

 

Connecticut State Health & Educational Facility Authority, RB, Yale University, Series Z3, 5.05%, 7/01/42

 

 

12,000

 

 

12,458,160

 









District of Columbia — 6.5%

 

 

 

 

 

 

 

District of Columbia Water & Sewer Authority, RB, Series A, 5.50%, 10/01/39

 

 

7,495

 

 

7,928,070

 

Energy Northwest, Refunding RB:

 

 

 

 

 

 

 

Columbia Generating, Series A (MBIA), 5.75%, 7/01/18

 

 

10,660

 

 

11,682,827

 

Project No. 1, Series B (MBIA), 6.00%, 7/01/17

 

 

14,700

 

 

16,270,548

 

 

 

 

 

 




 

 

 

 

 

 

35,881,445

 









Illinois — 9.4%

 

 

 

 

 

 

 

City of Chicago, Illinois, Refunding RB, Second Lien (FSA), 5.25%, 11/01/33

 

 

1,330

 

 

1,372,453

 

Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38

 

 

10,000

 

 

11,201,300

 

Illinois State Toll Highway Authority, RB, Series B, 5.50%, 1/01/33

 

 

6,999

 

 

7,435,306

 

Kane & De Kalb Counties Community Unit School District No. 302, Illinois, GO, School (FGIC), 5.75%, 2/01/14 (a)

 

 

10,460

 

 

12,216,652

 

Metropolitan Pier & Exposition Authority, Illinois, Refunding RB, McCormick Place Expansion, Series B (MBIA), 5.75%, 6/15/23

 

 

18,553

 

 

19,888,028

 

 

 

 

 

 




 

 

 

 

 

 

52,113,739

 









Kentucky — 1.7%

 

 

 

 

 

 

 

Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.38%, 12/01/39

 

 

9,195

 

 

9,329,615

 









Maryland — 0.9%

 

 

 

 

 

 

 

Maryland State Transportation Authority, RB, Transit Facility Project (FSA), 5.00%, 7/01/41

 

 

4,710

 

 

4,869,386

 









Massachusetts — 3.7%

 

 

 

 

 

 

 

Massachusetts School Building Authority, RB, Series A (FSA), 5.00%, 8/15/30

 

 

20,000

 

 

20,643,400

 









Nevada — 3.0%

 

 

 

 

 

 

 

Clark County Water Reclamation District, GO, Series B, 5.75%, 7/01/34

 

 

15,789

 

 

16,979,130

 









New York — 5.2%

 

 

 

 

 

 

 

New York City Municipal Water Finance Authority, RB, Series FF-2, 5.50%, 6/15/40

 

 

4,154

 

 

4,447,316

 

New York City Municipal Water Finance Authority, Refunding RB, Series DD, 5.00%, 6/15/37

 

 

24,199

 

 

24,592,663

 

 

 

 

 

 




 

 

 

 

 

 

29,039,979

 









North Carolina — 3.3%

 

 

 

 

 

 

 

North Carolina Capital Facilities Finance Agency, Refunding RB:

 

 

 

 

 

 

 

Wake Forest University, 5.00%, 1/01/38

 

 

5,000

 

 

5,200,100

 

Duke University Project, Series A, 5.00%, 10/01/41

 

 

12,678

 

 

12,927,736

 

 

 

 

 

 




 

 

 

 

 

 

18,127,836

 










 

 

 

 

 

 

 

 

Municipal Bonds Transferred to
Tender Option Bond Trusts (e)

 

Par
(000)

 

Value

 









Ohio — 1.7%

 

 

 

 

 

 

 

Ohio State Higher Educational Facility Commission, Refunding RB, Hospital, Cleveland Clinic, Series A, 5.25%, 01/01/33

 

$

4,400

 

$

4,488,924

 

State of Ohio, RB, Cleveland Clinic Health, Series B, 5.50%, 1/1/34

 

 

5,000

 

 

5,087,200

 

 

 

 

 

 




 

 

 

 

 

 

9,576,124

 









Texas — 7.0%

 

 

 

 

 

 

 

Harris County Health Facilities Development Corp., Refunding RB, School Health Care System, Series B, 5.75%, 7/01/27 (c)

 

 

20,970

 

 

24,950,106

 

Texas Department of Housing & Community Affairs, RB, Mortgage, Series B (GNMA), AMT, 5.25%, 9/01/32

 

 

8,453

 

 

8,254,729

 

Texas State University Systems, Refunding RB (FSA), 5.00%, 3/15/30

 

 

5,667

 

 

5,812,633

 

 

 

 

 

 




 

 

 

 

 

 

39,017,468

 









Virginia — 0.4%

 

 

 

 

 

 

 

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

 

 

2,098

 

 

2,178,311

 









Washington — 4.6%

 

 

 

 

 

 

 

Central Puget Sound Regional Transportation Authority, Washington, RB, Series A (FSA):

 

 

 

 

 

 

 

5.00%, 11/01/32

 

 

14,007

 

 

14,326,747

 

5.00%, 11/01/34

 

 

5,000

 

 

5,083,475

 

5.00%, 11/01/36

 

 

6,000

 

 

6,100,170

 

 

 

 

 

 




 

 

 

 

 

 

25,510,392

 









Total Municipal Bonds Transferred to Tender Option Bond Trusts — 52.2%

 

 

 

 

 

289,948,175

 









Total Long-Term Investments
(Cost — $930,577,898) — 169.1%

 

 

 

 

 

939,651,791

 









 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 









FFI Institutional Tax-Exempt Fund, 0.22% (f)(g)

 

 

4,104,364

 

 

4,104,364

 









Total Short-Term Securities
(Cost — $4,104,364) — 0.7%

 

 

 

 

 

4,104,364

 









Total Investments (Cost — $934,682,262*) — 169.8%

 

 

 

 

 

943,756,155

 

Other Assets Less Liabilities — 1.6%

 

 

 

 

 

8,638,085

 

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

 

 

 

 

 

(152,656,054

)

Preferred Shares, at Redemption Value — (43.9)%

 

 

 

 

 

(243,848,830

)

 

 

 

 

 




Net Assets Applicable to Common Shares — 100.0%

 

 

 

 

$

555,889,356

 

 

 

 

 

 





 

 

 

See Notes to Financial Statements.




38

ANNUAL REPORT

AUGUST 31, 2009



 

 


 

 

Schedule of Investments (concluded)

BlackRock MuniVest Fund, Inc. (MVF)


 

 

*

The cost and unrealized appreciation (depreciation) of investments as of August 31, 2009, as computed for federal income tax purposes, were as follows:


 

 

 

 

 

 

 

Aggregate cost

 

$

784,610,441

 

 

 

 




 

Gross unrealized appreciation

 

$

49,123,118

 

 

Gross unrealized depreciation

 

 

(42,290,385

)

 

 

 




 

Net unrealized appreciation

 

$

6,832,733

 

 

 

 





 

 

(a)

US government securities, held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(b)

Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional investors.

 

 

(c)

Security is collateralized by Municipal or US Treasury Obligations.

 

 

(d)

When-issued security.


 

 

 

 

 

 

 

 

 

 









 

Counterparty

 

Market
Value

 

Unrealized
Appreciation

 

 







 

Merrill Lynch and Co.

 

$

2,457,275

 

$

21,775

 

 










 

 

(e)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

(f)

Investments in companies considered to be an affiliate of the Trust, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:


 

 

 

 

 

 

 

 

 

 









 

Affiliate

 

Net
Activity

 

Income

 

 









 

FFI Institutional Tax-Exempt Fund

 

$

(1,326,610

)

$

325,656

 

 










 

 

 

(g)

Represents the current yield as of report date.

 

 

 

 

Effective September 1,2009,the Trust adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

Level 1 — price quotations in active markets/exchanges for identical securities

 

 

 

 

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.

The following table summarizes the inputs used as of August 31, 2009 in determining the fair valuation of the Trust’s investments:

 

 

 

 

 

 

 






 

Valuation Inputs

 

Investments in
Securities

 

 





 

 

 

Assets

 

 

 

 


 

 

Level 1 — Short-Term Securities

 

$

4,104,364

 

 

Level 2 — Long-Term Investments1

 

 

939,651,791

 

 

Level 3

 

 

 

 

 

 




 

Total

 

$

943,756,155

 

 

 

 





 

 

 

 

1

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


 

 

 

See Notes to Financial Statements.


ANNUAL REPORT

AUGUST 31, 2009

39



 


 

Statements of Assets and Liabilities


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31, 2009

 

BlackRock
Insured Municipal
Income Trust
(BYM)

 

BlackRock
Insured Municipal
Income
Investment Trust
(BAF)

 

BlackRock
Municipal
Bond Trust
(BBK)

 

BlackRock
Municipal Bond
Investment Trust
(BIE)

 

BlackRock
Municipal
Income Trust II
(BLE)

 

BlackRock
MuniHoldings
Insured
Investment Fund
(MFL)

 

BlackRock
MuniVest
Fund, Inc.
(MVF)

 
























Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Investments at value — unaffiliated1

 

$

546,816,265

 

$

183,337,305

 

$

222,192,766

 

$

75,589,681

 

$

464,987,551

 

$

804,117,956

 

$

939,651,791

 

Investments at value — affiliated2

 

 

4,401,744

 

 

9,202,756

 

 

3,400,718

 

 

2

 

 

13,805,067

 

 

27,005,779

 

 

4,104,364

 

Cash

 

 

85,757

 

 

60,744

 

 

43,893

 

 

70,713

 

 

6,688

 

 

3,001,458

 

 

86,292

 

Interest receivable

 

 

5,228,490

 

 

2,342,039

 

 

3,045,268

 

 

935,426

 

 

6,202,004

 

 

11,989,666

 

 

13,437,108

 

Investments sold receivable

 

 

841,969

 

 

190,279

 

 

 

 

602,485

 

 

137,835

 

 

225,126

 

 

1,150,968

 

Income receivable — affiliated

 

 

252

 

 

66

 

 

98

 

 

28

 

 

230

 

 

256

 

 

272

 

Other assets

 

 

51,850

 

 

13,774

 

 

20,335

 

 

4,122

 

 

47,550

 

 

52,915

 

 

56,018

 

Prepaid expenses

 

 

47,557

 

 

16,297

 

 

23,390

 

 

9,606

 

 

31,659

 

 

46,674

 

 

51,850

 

 

 






















Total assets

 

 

557,473,884

 

 

195,163,260

 

 

228,726,468

 

 

77,212,063

 

 

485,218,584

 

 

846,439,830

 

 

958,538,663

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Accrued Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Investments purchased payable

 

 

3,800,999

 

 

489,533

 

 

4,804,368

 

 

 

 

 

 

10,186,567

 

 

2,435,500

 

Income dividends payable — Common Shares

 

 

1,796,443

 

 

572,080

 

 

880,482

 

 

246,000

 

 

1,876,798

 

 

2,561,401

 

 

3,127,765

 

Investment advisory fees payable

 

 

206,629

 

 

71,447

 

 

92,257

 

 

32,037

 

 

196,849

 

 

343,202

 

 

394,014

 

Interest expense and fees payable

 

 

166,825

 

 

133,004

 

 

6,470

 

 

11,942

 

 

29,084

 

 

137,135

 

 

343,073

 

Officer’s and Trustees’ fees payable

 

 

53,484

 

 

14,576

 

 

21,536

 

 

4,803

 

 

49,050

 

 

54,794

 

 

57,917

 

Other affiliates payable

 

 

1,838

 

 

641

 

 

728

 

 

262

 

 

1,582

 

 

2,800

 

 

3,132

 

Other accrued expenses payable

 

 

129,851

 

 

80,746

 

 

86,089

 

 

41,262

 

 

120,634

 

 

110,594

 

 

126,095

 

 

 






















Total accrued liabilities

 

 

6,156,069

 

 

1,362,027

 

 

5,891,930

 

 

336,306

 

 

2,273,997

 

 

13,396,493

 

 

6,487,496

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Other Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Trust certificates3

 

 

58,725,996

 

 

28,697,357

 

 

5,899,148

 

 

11,821,747

 

 

35,563,189

 

 

47,363,419

 

 

152,312,981

 

 

 






















Total Liabilities

 

 

64,882,065

 

 

30,059,384

 

 

11,791,078

 

 

12,158,053

 

 

37,837,186

 

 

60,759,912

 

 

158,800,477

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Preferred Shares at Redemption Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















$25,000 per share liquidation preference, plus unpaid dividends4,5

 

 

137,257,720

 

 

42,279,321

 

 

79,905,632

 

 

17,851,267

 

 

151,311,897

 

 

274,667,253

 

 

243,848,830

 

 

 






















Net Assets Applicable to Common Shareholders

 

$

355,334,099

 

$

122,824,555

 

$

137,029,758

 

$

47,202,743

 

$

296,069,501

 

$

511,012,665

 

$

555,889,356

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net Assets Applicable to Common Shareholders Consist of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Paid-in capital6,7,8

 

$

372,251,178

 

$

123,923,627

 

$

147,284,297

 

$

47,237,934

 

$

329,312,803

 

$

524,440,677

 

$

561,947,384

 

Undistributed net investment income

 

 

4,543,136

 

 

1,739,363

 

 

2,048,688

 

 

606,918

 

 

4,090,516

 

 

6,117,351

 

 

10,445,419

 

Accumulated net realized loss

 

 

(15,211,568

)

 

(2,630,774

)

 

(6,508,459

)

 

(2,230,535

)

 

(15,198,547

)

 

(34,243,017

)

 

(25,577,340

)

Net unrealized appreciation/ depreciation

 

 

(6,248,647

)

 

(207,661

)

 

(5,794,768

)

 

1,588,426

 

 

(22,135,271

)

 

14,697,654

 

 

9,073,893

 

 

 






















Net Assets Applicable to Common Shareholders

 

$

355,334,099

 

$

122,824,555

 

$

137,029,758

 

$

47,202,743

 

$

296,069,501

 

$

511,012,665

 

$

555,889,356

 

 

 






















Net asset value per Common Share

 

$

13.55

 

$

14.06

 

$

13.23

 

$

14.16

 

$

12.78

 

$

13.57

 

$

8.98

 

 

 






















 1 Investments at cost — unaffiliated

 

$

553,064,912

 

$

183,544,966

 

$

227,987,534

 

$

74,001,255

 

$

487,122,822

 

$

789,420,302

 

$

930,577,898

 

 

 






















 2 Investments at cost — affiliated

 

$

4,401,744

 

$

9,202,756

 

$

3,400,718

 

$

2

 

$

13,805,067

 

$

27,005,779

 

$

4,104,364

 

 

 






















 3 Represents short-term floating rate certificates issued by tender option bond trusts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 4 Preferred Shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Par value $0.001 per share

 

 

5,490

 

 

1,691

 

 

3,196

 

 

714

 

 

6,052

 

 

 

 

 

 

 






















Par value $0.10 per share

 

 

 

 

 

 

 

 

 

 

 

 

10,986

 

 

9,753

 

 

 






















 5 Preferred Shares authorized

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

1 million

 

 

10 million

 

 

 






















 6 Common Shares outstanding

 

 

26,225,438

 

 

8,734,047

 

 

10,358,608

 

 

3,333,337

 

 

23,170,346

 

 

37,667,658

 

 

61,935,944

 

 

 






















 7 Par value per Common Share

 

$

0.001

 

$

0.001

 

$

0.001

 

$

0.001

 

$

0.001

 

$

0.10

 

$

0.10

 

 

 






















 8 Common Shares authorized

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

unlimited

 

 

150 million

 

 

 























 

 

 

See Notes to Financial Statements.




40

ANNUAL REPORT

AUGUST 31, 2009



 


 

Statements of Operations


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended August 31, 2009

 

BlackRock
Insured Municipal
Income Trust
(BYM)

 

BlackRock
Insured Municipal
Income
Investment Trust
(BAF)

 

BlackRock
Municipal
Bond Trust
(BBK)

 

BlackRock
Municipal Bond
Investment Trust
(BIE)

 

BlackRock
Municipal
Income Trust II
(BLE)

 

BlackRock
MuniHoldings
Insured
Investment Fund
(MFL)

 

BlackRock
MuniVest
Fund, Inc.
(MVF)

 
























Investment Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Interest

 

$

27,720,319

 

$

9,502,695

 

$

13,198,056

 

$

4,009,642

 

$

28,231,011

 

$

40,987,701

 

$

50,666,646

 

Income — affiliated

 

 

78,274

 

 

37,598

 

 

53,393

 

 

27,149

 

 

106,992

 

 

150,107

 

 

329,878

 

 

 






















Total income

 

 

27,798,593

 

 

9,540,293

 

 

13,251,449

 

 

4,036,791

 

 

28,338,003

 

 

41,137,808

 

 

50,996,524

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Investment advisory

 

 

2,914,343

 

 

1,013,873

 

 

1,354,448

 

 

473,412

 

 

2,473,881

 

 

4,420,430

 

 

4,449,684

 

Commissions for Preferred Shares

 

 

266,904

 

 

78,723

 

 

143,763

 

 

44,935

 

 

296,368

 

 

541,102

 

 

504,177

 

Professional

 

 

96,460

 

 

68,654

 

 

58,961

 

 

52,576

 

 

87,223

 

 

135,142

 

 

150,519

 

Accounting services

 

 

94,381

 

 

47,376

 

 

40,613

 

 

20,770

 

 

81,480

 

 

203,187

 

 

260,862

 

Printing

 

 

74,202

 

 

21,118

 

 

21,095

 

 

9,811

 

 

42,798

 

 

34,291

 

 

37,267

 

Officer and Trustees

 

 

41,902

 

 

14,211

 

 

14,727

 

 

5,254

 

 

32,859

 

 

72,471

 

 

66,437

 

Transfer agent

 

 

27,952

 

 

18,185

 

 

24,257

 

 

19,568

 

 

50,930

 

 

76,002

 

 

86,064

 

Custodian

 

 

27,120

 

 

11,634

 

 

14,260

 

 

7,877

 

 

24,175

 

 

39,053

 

 

36,928

 

Registration

 

 

9,202

 

 

9,583

 

 

9,327

 

 

9,583

 

 

9,168

 

 

13,261

 

 

24,508

 

Miscellaneous

 

 

87,205

 

 

49,595

 

 

54,917

 

 

45,949

 

 

83,870

 

 

121,273

 

 

122,436

 

 

 






















Total expenses excluding interest expense and fees

 

 

3,639,671

 

 

1,332,952

 

 

1,736,368

 

 

689,735

 

 

3,182,752

 

 

5,656,212

 

 

5,738,882

 

Interest expense and fees1

 

 

915,128

 

 

472,458

 

 

100,699

 

 

47,800

 

 

369,235

 

 

601,374

 

 

1,849,047

 

 

 






















Total expenses

 

 

4,554,799

 

 

1,805,410

 

 

1,837,067

 

 

737,535

 

 

3,551,987

 

 

6,257,586

 

 

7,587,929

 

Less fees waived by advisor

 

 

(589,443

)

 

(225,609

)

 

(389,422

)

 

(150,110

)

 

(455,912

)

 

(580,073

)

 

(51,505

)

 

 






















Total expenses after fees waived

 

 

3,965,356

 

 

1,579,801

 

 

1,447,645

 

 

587,425

 

 

3,096,075

 

 

5,677,513

 

 

7,536,424

 

 

 






















Net investment income

 

 

23,833,237

 

 

7,960,492

 

 

11,803,804

 

 

3,449,366

 

 

25,241,928

 

 

35,460,295

 

 

43,460,100

 

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Realized and Unrealized Gain (Loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net realized gain (loss) from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(1,962,942

)

 

(1,402,291

)

 

(3,487,248

)

 

(2,150,945

)

 

(4,745,684

)

 

(14,166,063

)

 

122,896

 

Financial futures contracts and forward interest rate swaps

 

 

(3,709,589

)

 

(145,000

)

 

(722,101

)

 

 

 

(1,982,970

)

 

 

 

 

 

 






















 

 

 

(5,672,531

)

 

(1,547,291

)

 

(4,209,349

)

 

(2,150,945

)

 

(6,728,654

)

 

(14,166,063

)

 

122,896

 

 

 






















Net change in unrealized appreciation/ depreciation on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(10,229,496

)

 

(1,001,435

)

 

(5,001,889

)

 

(388,109

)

 

(17,113,628

)

 

12,563,335

 

 

(2,052,514

)

Financial futures contracts and forward interest rate swaps

 

 

1,416,803

 

 

127,751

 

 

658,710

 

 

 

 

1,655,090

 

 

 

 

 

 

 






















 

 

 

(8,812,693

)

 

(873,684

)

 

(4,343,179

)

 

(388,109

)

 

(15,458,538

)

 

12,563,335

 

 

(2,052,514

)

 

 






















Total realized and unrealized loss

 

 

(14,485,224

)

 

(2,420,975

)

 

(8,552,528

)

 

(2,539,054

)

 

(22,187,192

)

 

(1,602,728

)

 

(1,929,618

)

 

 






















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




















Dividends to Preferred Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























Net investment income

 

 

(2,513,122

)

 

(744,761

)

 

(1,349,183

)

 

(437,198

)

 

(2,784,279

)

 

(4,979,410

)

 

(3,867,803

)

 

 






















Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations

 

$

6,834,891

 

$

4,794,756

 

$

1,902,093

 

$

473,114

 

$

270,457

 

$

28,878,157

 

$

37,662,679

 

 

 























 

 

 

 

1

Related to tender option bond trusts.


 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

41



 


 

Statements of Changes in Net Assets


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Insured Municipal
Income Trust (BYM)

 

BlackRock Insured Municipal
Income Investment Trust (BAF)

 

BlackRock Municipal
Bond Trust (BBK)

 

 

 


 


 



 

 

Year Ended August 31,

 

Year Ended August 31,

 

Year Ended August 31,

 

 

 


 


 



Increase (Decrease) in Net Assets:

 

2009

 

2008

 

2009

 

2008

 

2009

 

2008

 





















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

23,833,237

 

$

27,129,862

 

$

7,960,492

 

$

8,604,703

 

$

11,803,804

 

$

12,660,944

 

Net realized loss

 

 

(5,672,531

)

 

(6,197,147

)

 

(1,547,291

)

 

(742,391

)

 

(4,209,349

)

 

(2,297,504

)

Net change in unrealized appreciation/depreciation

 

 

(8,812,693

)

 

(15,128,457

)

 

(873,684

)

 

(3,234,216

)

 

(4,343,179

)

 

(12,976,335

)

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(2,513,122

)

 

(6,899,959

)

 

(744,761

)

 

(2,458,784

)

 

(1,349,183

)

 

(2,869,826

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(311,386

)

 

 






 






 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

6,834,891

 

 

(1,095,701

)

 

4,794,756

 

 

2,169,312

 

 

1,902,093

 

 

(5,794,107

)

 

 






 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 















Dividends and Distributions to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

 

(19,779,705

)

 

(19,185,033

)

 

(6,275,413

)

 

(6,078,897

)

 

(9,386,250

)

 

(9,875,552

)

Net realized gain

 

 

 

 

 

 

 

 

 

 

 

 

(992,871

)

 

 






 






 







Decrease in net assets resulting from dividends and distributions to Common Shareholders

 

 

(19,779,705

)

 

(19,185,033

)

 

(6,275,413

)

 

(6,078,897

)

 

(9,386,250

)

 

(10,868,423

)

 

 






 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Reinvestment of common dividends

 

 

146,402

 

 

138,005

 

 

 

 

 

 

397,817

 

 

879,073

 

 

 






 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total decrease in net assets applicable to Common Shareholders

 

 

(12,798,412

)

 

(20,142,729

)

 

(1,480,657

)

 

(3,909,585

)

 

(7,086,340

)

 

(15,783,457

)

Beginning of year

 

 

368,132,511

 

 

388,275,240

 

 

124,305,212

 

 

128,214,797

 

 

144,116,098

 

 

159,899,555

 

 

 






 






 







End of year

 

$

355,334,099

 

$

368,132,511

 

$

122,824,555

 

$

124,305,212

 

$

137,029,758

 

$

144,116,098

 

 

 






 






 







Undistributed net investment income

 

$

4,543,136

 

$

3,019,949

 

$

1,739,363

 

$

810,530

 

$

2,048,688

 

$

985,580

 

 

 






 






 








 

 

 

See Notes to Financial Statements.




42

ANNUAL REPORT

AUGUST 31, 2009



 


 

Statements of Changes in Net Assets (continued)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Municipal Bond
Investment Trust (BIE)

 

BlackRock Municipal
Income Trust II (BLE)

 

BlackRock MuniHoldings Insured
Investment Trust (MFL)

 

 

 


 


 


 

 

 

Year Ended August 31,

 

Year Ended August 31,

 

Year Ended August 31,

 

 

 


 


 


 

Increase (Decrease) in Net Assets:

 

2009

 

2008

 

2009

 

2008

 

2009

 

2008

 















Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

$

3,449,366

 

$

3,849,371

 

$

25,241,928

 

$

27,108,667

 

$

35,460,295

 

$

37,928,372

 

Net realized gain (loss)

 

 

(2,150,945

)

 

483,558

 

 

(6,728,654

)

 

(3,332,951

)

 

(14,166,063

)

 

(5,413,818

)

Net change in unrealized appreciation/depreciation

 

 

(388,109

)

 

(2,151,902

)

 

(15,458,538

)

 

(31,008,627

)

 

12,563,335

 

 

(17,228,007

)

Dividends to Preferred Shareholders from net investment income

 

 

(437,198

)

 

(1,016,308

)

 

(2,784,279

)

 

(6,838,458

)

 

(4,979,410

)

 

(12,122,435

)

 

 






 






 







Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations

 

 

473,114

 

 

1,164,719

 

 

270,457

 

 

(14,071,369

)

 

28,878,157

 

 

3,164,112

 

 

 






 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Dividends to Common Shareholders From

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net investment income

 

 

(2,802,003

)

 

(3,117,188

)

 

(19,376,940

)

 

(19,929,193

)

 

(26,563,835

)

 

(25,369,168

)

 

 






 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Capital Share Transactions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Reinvestment of common dividends

 

 

 

 

100,448

 

 

287,025

 

 

1,326,612

 

 

 

 

 

 

 






 






 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















Total increase (decrease) in net assets applicable to Common Shareholders

 

 

(2,328,889

)

 

(1,852,021

)

 

(18,819,458

)

 

(32,673,950

)

 

2,314,322

 

 

(22,205,056

)

Beginning of year

 

 

49,531,632

 

 

51,383,653

 

 

314,888,959

 

 

347,562,909

 

 

508,698,343

 

 

530,903,399

 

 

 






 






 







End of year

 

$

47,202,743

 

$

49,531,632

 

$

296,069,501

 

$

314,888,959

 

$

511,012,665

 

$

508,698,343

 

 

 






 






 







Undistributed net investment income

 

$

606,918

 

$

398,922

 

$

4,090,516

 

$

1,007,465

 

$

6,117,351

 

$

3,443,863

 

 

 






 






 








 

 

 

See Notes to Financial Statements.

 

 


ANNUAL REPORT

AUGUST 31, 2009

43



 


 

Statements of Changes in Net Assets (concluded)


 

 

 

 

 

 

 

 

 

 

BlackRock MuniVest
Fund, Inc. (MVF)

 

 

 



 

 

Year Ended August 31,

 

 

 



Increase (Decrease) in Net Assets:

 

2009

 

2008

 







Operations

 

 

 

 

 

 

 









Net investment income

 

$

43,460,100

 

$

41,678,359

 

Net realized gain (loss)

 

 

122,896

 

 

(10,353,747

)

Net change in unrealized appreciation/depreciation

 

 

(2,052,514

)

 

(18,206,890

)

Dividends to Preferred Shareholders from net investment income

 

 

(3,867,803

)

 

(11,038,935

)

 

 







Net increase in net assets applicable to Common Shareholders resulting from operations

 

 

37,662,679

 

 

2,078,787

 

 

 







 

 

 

 

 

 

 

 









Dividends to Common Shareholders From

 

 

 

 

 

 

 









Net investment income

 

 

(33,322,841

)

 

(31,888,913

)

 

 







 

 

 

 

 

 

 

 









Capital Share Transactions

 

 

 

 

 

 

 









Reinvestment of common dividends

 

 

522,169

 

 

1,758,887

 

 

 







 

 

 

 

 

 

 

 









Net Assets Applicable to Common Shareholders

 

 

 

 

 

 

 









Total increase (decrease) in net assets applicable to Common Shareholders

 

 

4,862,007

 

 

(28,051,239

)

Beginning of year

 

 

551,027,349

 

 

579,078,588

 

 

 







End of year

 

$

555,889,356

 

$

551,027,349

 

 

 







Undistributed net investment income

 

$

10,445,419

 

$

3,929,327

 

 

 








 

 

 

See Notes to Financial Statements.


44

ANNUAL REPORT

AUGUST 31, 2009



 


 

Statements of Cash Flows


 

 

 

 

 

 

 

 

Year Ended August 31, 2009

 

BlackRock
Insured Municipal
Income
Investment Trust
(BAF)

 

BlackRock
MuniVest
Fund, Inc.
(MVF)

 







Cash Provided by Operating Activities

 

 

 

 

 

 

 









Net increase in net assets resulting from operations, excluding dividends to Preferred Shareholders

 

$

5,539,517

 

$

41,530,482

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:

 

 

 

 

 

 

 

Decrease in interest receivable

 

 

236,636

 

 

751,575

 

Decrease (increase) in income receivable — affiliated

 

 

11

 

 

(272

)

Decrease (increase) in other assets

 

 

945

 

 

(35,374

)

Increase in prepaid expenses

 

 

(4,201

)

 

(26,614

)

Increase (decrease) in investment advisory fees payable

 

 

4,312

 

 

(21,592

)

Decrease in other affiliates payable

 

 

(659

)

 

(2,628

)

Increase (decrease) in other accrued expenses payable

 

 

4,904

 

 

(18,462

)

Increase (decrease) in Officer’s and Trustees’ fees payable

 

 

(1,050

)

 

27,381

 

Decrease in interest expense and fees payable

 

 

(22,581

)

 

(284,938

)

Net realized and unrealized loss

 

 

2,275,975

 

 

1,929,618

 

Amortization of premium and discount on investments

 

 

(589,814

)

 

1,134,033

 

Proceeds from sales of long-term investments

 

 

89,874,729

 

 

262,973,701

 

Purchases of long-term investments

 

 

(80,421,005

)

 

(278,614,135

)

Net (purchases) and sales of short-term securities

 

 

(4,924,011

)

 

20,281,610

 

 

 







Cash provided by operating activities

 

 

11,973,708

 

 

49,624,385

 

 

 







 

 

 

 

 

 

 

 









Cash Used for Financing Activities

 

 

 

 

 

 

 









Payments on redemption of Preferred Shares

 

 

(2,100,000

)

 

(31,875,000

)

Cash receipts from trust certificates

 

 

3,477,359

 

 

68,404,579

 

Cash payments for trust certificates

 

 

(6,384,876

)

 

(49,640,385

)

Cash dividends paid to Common Shareholders

 

 

(6,209,908

)

 

(32,333,539

)

Cash dividends paid to Preferred Shareholders

 

 

(762,669

)

 

(4,143,482

)

 

 







Cash used for financing activities

 

 

(11,980,094

)

 

(49,587,827

)

 

 







 

 

 

 

 

 

 

 









Cash

 

 

 

 

 

 

 









Net increase (decrease) in cash

 

 

(6,386

)

 

36,558

 

Cash at beginning of year

 

 

67,130

 

 

49,734

 

 

 







Cash at end of year

 

$

60,744

 

$

86,292

 

 

 







 

 

 

 

 

 

 

 









Cash Flow Information

 

 

 

 

 

 

 









Cash paid during the year for interest

 

$

495,039

 

$

2,133,985

 

 

 







 

 

 

 

 

 

 

 









Noncash Financing Activities

 

 

 

 

 

 

 









Capital shares issued in reinvestment of dividends paid to shareholders

 

 

 

$

522,169

 

 

 








 

 

 

A Statement of Cash Flows is presented when a Trust had a significant amount of borrowing during the period, based on the average borrowing outstanding in relation to average total assets.


 

 

 

See Notes to Financial Statements.

 

 


ANNUAL REPORT

AUGUST 31, 2009

45



 


Financial Highlights


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Insured
Municipal Income Trust (BYM)

 

 

BlackRock Insured
Municipal Income Investment Trust (BAF)

 

 

 



 



 

 

Year Ended August 31,

 

 

Year Ended August 31,

 

 

 



 



 

 

2009

 

2008

 

2007

 

2006

 

2005

 

 

2009

 

2008

 

2007

 

2006

 

2005

 
























Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


































Net asset value, beginning of year

 

$

14.04

 

$

14.82

 

$

15.54

 

$

15.61

 

$

14.62

 

 

$

14.23

 

$

14.68

 

$

15.24

 

$

15.26

 

$

14.34

 

 

 
















 
















Net investment income

 

 

0.91

1

 

1.04

1

 

1.03

 

 

1.03

 

 

1.03

 

 

 

0.91

1

 

0.99

1

 

1.01

 

 

1.02

 

 

1.02

 

Net realized and unrealized gain (loss)

 

 

(0.55

)

 

(0.83

)

 

(0.67

)

 

(0.09

)

 

1.07

 

 

 

(0.27

)

 

(0.46

)

 

(0.56

)

 

(0.07

)

 

0.96

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.10

)

 

(0.26

)

 

(0.28

)

 

(0.26

)

 

(0.17

)

 

 

(0.09

)

 

(0.28

)

 

(0.31

)

 

(0.26

)

 

(0.16

)

Net realized gain

 

 

 

 

 

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
















 
















Net increase (decrease) from investment operations

 

 

0.26

 

 

(0.05

)

 

0.06

 

 

0.68

 

 

1.93

 

 

 

0.55

 

 

0.25

 

 

0.14

 

 

0.69

 

 

1.82

 

 

 
















 
















Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.75

)

 

(0.73

)

 

(0.73

)

 

(0.75

)

 

(0.94

)

 

 

(0.72

)

 

(0.70

)

 

(0.70

)

 

(0.71

)

 

(0.90

)

Net realized gain

 

 

 

 

 

 

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
















 
















Total dividends and distributions to Common Shareholders

 

 

(0.75

)

 

(0.73

)

 

(0.78

)

 

(0.75

)

 

(0.94

)

 

 

(0.72

)

 

(0.70

)

 

(0.70

)

 

(0.71

)

 

(0.90

)

 

 
















 
















Net asset value, end of year

 

$

13.55

 

$

14.04

 

$

14.82

 

$

15.54

 

$

15.61

 

 

$

14.06

 

$

14.23

 

$

14.68

 

$

15.24

 

$

15.26

 

 

 
















 
















Market price, end of year

 

$

13.69

 

$

13.19

 

$

14.35

 

$

14.65

 

$

15.43

 

 

$

13.01

 

$

12.42

 

$

13.55

 

$

13.88

 

$

15.30

 

 

 
















 

















































Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


































Based on net asset value

 

 

2.83

%

 

(0.16

)%

 

0.48

%

 

4.92

%

 

13.77

%

 

 

5.36

%

 

2.22

%

 

1.17

%

 

5.16

%

 

13.13

%

 

 
















 
















Based on market price

 

 

10.58

%

 

(3.13

)%

 

3.20

%

 

0.07

%

 

17.69

%

 

 

11.70

%

 

(3.35

)%

 

2.54

%

 

(4.48

)%

 

15.03

%

 

 
















 

















































Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


































Total expenses3

 

 

1.38

%

 

1.24

%

 

1.12

%

 

1.18

%

 

1.15

%

 

 

1.60

%

 

1.33

%

 

1.19

%

 

1.23

%

 

1.22

%

 

 
















 
















Total expenses after fees waived and before fees paid indirectly3

 

 

1.20

%

 

0.98

%

 

0.80

%

 

0.84

%

 

0.83

%

 

 

1.40

%

 

1.05

%

 

0.87

%

 

0.92

%

 

0.90

%

 

 
















 
















Total expenses after fees waived and paid indirectly3

 

 

1.20

%

 

0.98

%

 

0.80

%

 

0.84

%

 

0.83

%

 

 

1.40

%

 

1.05

%

 

0.86

%

 

0.90

%

 

0.89

%

 

 
















 
















Total expenses after fees waived and paid indirectly and excluding interest expense and fees3,4

 

 

0.93

%

 

0.86

%

 

0.80

%

 

0.84

%

 

0.83

%

 

 

0.98

%

 

0.91

%

 

0.86

%

 

0.90

%

 

0.89

%

 

 
















 
















Net investment income3

 

 

7.23

%

 

7.08

%

 

6.67

%

 

6.75

%

 

6.83

%

 

 

7.04

%

 

6.71

%

 

6.70

%

 

6.79

%

 

6.85

%

 

 
















 
















Dividends to Preferred Shareholders

 

 

0.76

%

 

1.80

%

 

1.79

%

 

1.69

%

 

1.09

%

 

 

0.66

%

 

1.92

%

 

2.05

%

 

1.74

%

 

1.06

%

 

 
















 
















Net investment income to Common Shareholders

 

 

6.47

%

 

5.28

%

 

4.88

%

 

5.06

%

 

5.74

%

 

 

6.38

%

 

4.79

%

 

4.65

%

 

5.05

%

 

5.79

%

 

 
















 

















































Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


































Net assets applicable to Common Shareholders, end of year (000)

 

$

355,334

 

$

368,133

 

$

388,275

 

$

407,338

 

$

408,641

 

 

$

122,825

 

$

124,305

 

$

128,215

 

$

133,106

 

$

133,221

 

 

 
















 
















Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)

 

$

137,250

 

$

149,925

 

$

228,975

 

$

228,975

 

$

228,975

 

 

$

42,275

 

$

44,375

 

$

76,000

 

$

76,000

 

$

76,000

 

 

 
















 
















Portfolio turnover

 

 

18

%

 

39

%

 

17

%

 

60

%

 

57

%

 

 

45

%

 

29

%

 

13

%

 

9

%

 

2

%

 

 
















 
















Asset coverage per Preferred Share at $25,000 liquidation preference, end of year

 

$

89,725

 

$

86,398

 

$

67,402

 

$

69,485

 

$

69,622

 

 

$

97,637

 

$

95,044

 

$

67,187

 

$

68,792

 

$

68,826

 

 

 
















 

















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

See Notes to Financial Statements.


46

ANNUAL REPORT

AUGUST 31, 2009



 


 

Financial Highlights


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
Municipal Bond Trust (BBK)

 

BlackRock
Municipal Bond Investment Trust (BIE)

 

 

 





 

 

Year Ended August 31,

 

Year Ended August 31,

 

 

 





 

 

2009

 

2008

 

2007

 

2006

 

2005

 

2009

 

2008

 

2007

 

2006

 

2005

 


Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

































Net asset value, beginning of year

 

$

13.96

 

$

15.57

 

$

16.35

 

$

16.36

 

$

15.00

 

$

14.86

 

$

15.45

 

$

16.22

 

$

16.31

 

$

15.53

 

 

 































Net investment income

 

 

1.14

1

 

1.23

1

 

1.20

 

 

1.21

 

 

1.21

 

 

1.03

1

 

1.16

1

 

1.15

 

 

1.17

 

 

1.16

 

Net realized and unrealized gain (loss)

 

 

(0.83

)

 

(1.48

)

 

(0.63

)

 

0.18

 

 

1.36

 

 

(0.76

)

 

(0.51

)

 

(0.67

)

 

(0.06

)

 

0.71

 

Dividends and distributions to Preferred Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.13

)

 

(0.28

)

 

(0.32

)

 

(0.25

)

 

(0.17

)

 

(0.13

)

 

(0.30

)

 

(0.32

)

 

(0.27

)

 

(0.16

)

Net realized gain

 

 

 

 

(0.03

)

 

 

 

(0.02

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 































Net increase (decrease) from investment operations

 

 

0.18

 

 

(0.56

)

 

0.25

 

 

1.12

 

 

2.40

 

 

0.14

 

 

0.35

 

 

0.16

 

 

0.84

 

 

1.71

 

 

 































Dividends and distributions to Common Shareholders from:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

(0.91

)

 

(0.95

)

 

(1.03

)

 

(1.04

)

 

(1.04

)

 

(0.84

)

 

(0.94

)

 

(0.93

)

 

(0.93

)

 

(0.93

)

Net realized gain

 

 

 

 

(0.10

)

 

 

 

(0.09

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 































Total dividends and distributions to Common Shareholders

 

 

(0.91

)

 

(1.05

)

 

(1.03

)

 

(1.13

)

 

(1.04

)

 

(0.84

)

 

(0.94

)

 

(0.93

)

 

(0.93

)

 

(0.93

)

 

 































Net asset value, end of year

 

$

13.23

 

$

13.96

 

$

15.57

 

$

16.35

 

$

16.36

 

$

14.16

 

$

14.86

 

$

15.45

 

$

16.22

 

$

16.31

 

 

 































Market price, end of year

 

$

13.80

 

$

13.89

 

$

16.50

 

$

17.89

 

$

17.18

 

$

13.20

 

$

14.28

 

$

15.82

 

$

16.70

 

$

15.95

 

 

 































































Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

































Based on net asset value

 

 

2.52

%

 

(3.77

)%

 

1.09

%

 

7.18

%

 

16.63

%

 

2.43

%

 

2.34

%

 

0.95

%

 

5.40

%

 

11.58

%

 

 































Based on market price

 

 

7.48

%

 

(9.65

)%

 

(2.09

)%

 

11.55

%

 

25.75

%

 

(0.64

)%

 

(3.95

)%

 

0.40

%

 

10.97

%

 

19.59

%

 

 































































Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

































Total expenses3

 

 

1.51

%

 

1.39

%

 

1.28

%

 

1.37

%

 

1.35

%

 

1.71

%

 

1.54

%

 

1.43

%

 

1.47

%

 

1.49

%

 

 































Total expenses after fees waived and before fees paid indirectly3

 

 

1.19

%

 

1.01

%

 

0.84

%

 

0.88

%

 

0.88

%

 

1.36

%

 

1.13

%

 

0.98

%

 

1.00

%

 

1.02

%

 

 































Total expenses after fees waived and paid indirectly3

 

 

1.19

%

 

1.01

%

 

0.83

%

 

0.86

%

 

0.87

%

 

1.36

%

 

1.13

%

 

0.96

%

 

0.98

%

 

1.00

%

 

 































Total expenses after fees waived and paid indirectly and excluding interest expense and fees3,4

 

 

1.10

%

 

0.98

%

 

0.83

%

 

0.86

%

 

0.87

%

 

1.25

%

 

1.09

%

 

0.96

%

 

0.98

%

 

1.00

%

 

 































Net investment income3

 

 

9.67

%

 

8.25

%

 

7.36

%

 

7.58

%

 

7.73

%

 

7.98

%

 

7.52

%

 

7.22

%

 

7.28

%

 

7.24

%

 

 































Dividends paid to Preferred Shareholders

 

 

1.11

%

 

1.87

%

 

1.94

%

 

1.57

%

 

1.08

%

 

1.01

%

 

1.99

%

 

2.01

%

 

1.70

%

 

1.01

%

 

 































Net investment income to Common Shareholders

 

 

8.56

%

 

6.38

%

 

5.42

%

 

6.01

%

 

6.65

%

 

6.97

%

 

5.53

%

 

5.21

%

 

5.58

%

 

6.23

%

 

 































































Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

































Net assets applicable to Common Shareholders, end of year (000)

 

$

137,030

 

$

144,116

 

$

159,900

 

$

166,895

 

$

165,863

 

$

47,203

 

$

49,532

 

$

51,384

 

$

53,798

 

$

53,990

 

 

 































Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)

 

$

79,900

 

$

80,500

 

$

90,500

 

$

90,500

 

$

90,500

 

$

17,850

 

$

26,175

 

$

29,775

 

$

29,775

 

$

29,775

 

 

 































Portfolio turnover

 

 

46

%

 

27

%

 

14

%

 

85

%

 

70

%

 

71

%

 

30

%

 

23

%

 

6

%

 

2

%

 

 































Asset coverage per Preferred Share at $25,000 liquidation preference, end of year

 

$

67,877

 

$

69,766

 

$

69,176

 

$

71,114

 

$

70,824

 

$

91,112

 

$

72,318

 

$

68,149

 

$

70,173

 

$

70,343

 

 

 
































 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.


 

 

 

 

See Notes to Financial Statements.

 

 


ANNUAL REPORT

 

AUGUST 31, 2009

47



 


 

Financial Highlights


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock
Municipal Income Trust II (BLE)

 

 

BlackRock MuniHoldings
Insured Investment Fund (MFL)

 

 


 

 

 

 

Year Ended August 31,

 

 

Year Ended August 31,

 

 


 

 

 

 

2009

 

2008

 

2007

 

2006

 

2005

 

 

2009

 

2008

 

2007

 

2006

 

2005

 


































Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 














Net asset value, beginning of year

 

$

13.60

 

$

15.08

 

$

15.82

 

$

15.75

 

$

14.34

 

 

$

13.50

 

$

14.09

 

$

14.75

 

$

15.32

 

$

15.37

 

 

 
















 














Net investment income

 

 

1.09

1

 

1.17

1

 

1.17

 

 

1.18

 

 

1.20

 

 

 

0.94

1

 

1.01

1

 

1.07

1

 

1.04

1

 

1.09

1

Net realized and unrealized gain (loss)

 

 

(0.95

)

 

(1.50

)

 

(0.66

)

 

0.18

 

 

1.38

 

 

 

(0.03

)

 

(0.61

)

 

(0.66

)

 

(0.47

)

 

0.05

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.12

)

 

(0.30

)

 

(0.32

)

 

(0.28

)

 

(0.17

)

 

 

(0.13

)

 

(0.32

)

 

(0.35

)

 

(0.30

)

 

(0.18

)

 

 
















 














Net increase (decrease) from investment operations

 

 

0.02

 

 

(0.63

)

 

0.19

 

 

1.08

 

 

2.41

 

 

 

0.78

 

 

0.08

 

 

0.06

 

 

0.27

 

 

0.96

 

 

 
















 














Dividends to Common Shareholders from net investment income

 

 

(0.84

)

 

(0.85

)

 

(0.93

)

 

(1.01

)

 

(1.00

)

 

 

(0.71

)

 

(0.67

)

 

(0.72

)

 

(0.84

)

 

(1.01

)

 

 
















 














Net asset value, end of year

 

$

12.78

 

$

13.60

 

$

15.08

 

$

15.82

 

$

15.75

 

 

$

13.57

 

$

13.50

 

$

14.09

 

$

14.75

 

$

15.32

 

 

 
















 














Market price, end of year

 

$

13.45

 

$

13.27

 

$

15.05

 

$

17.22

 

$

15.73

 

 

$

12.63

 

$

11.61

 

$

12.86

 

$

14.37

 

$

15.75

 

 

 
















 















































Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


































Based on net asset value

 

 

1.54

%

 

(4.15

)%

 

1.02

%

 

7.04

%

 

17.56

%

 

 

7.36

%

 

1.16

%

 

0.59

%

 

2.10

%

 

6.49

%

 

 
















 














Based on market price

 

 

9.52

%

 

(6.29

)%

 

(7.38

)%

 

16.66

%

 

20.95

%

 

 

16.19

%

 

(4.68

)%

 

(5.76

)%

 

(3.24

)%

 

13.39

%

 

 
















 














 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


































Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


































Total expenses3

 

 

1.36

%

 

1.24

%

 

1.12

%

 

1.18

%

 

1.17

%

 

 

1.32

%

 

1.54

%

 

1.54

%

 

1.46

%

 

1.41

%

 

 
















 














Total expenses after fees waived and before fees paid indirectly3

 

 

1.19

%

 

1.07

%

 

0.90

%

 

0.94

%

 

0.93

%

 

 

1.20

%

 

1.42

%

 

1.46

%

 

1.38

%

 

1.35

%

 

 
















 














 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total expenses after fees waived and paid indirectly3

 

 

1.19

%

 

1.07

%

 

0.89

%

 

0.94

%

 

0.93

%

 

 

1.20

%

 

1.42

%

 

1.46

%

 

1.38

%

 

1.35

%

 

 
















 














Total expenses after fees waived and paid indirectly and excluding interest expense and fees3,4

 

 

1.05

%

 

1.00

%

 

0.89

%

 

0.94

%

 

0.93

%

 

 

1.07

%

 

1.13

%

 

1.12

%

 

1.12

%

 

1.11

%

 

 
















 














Net investment income3

 

 

9.69

%

 

8.09

%

 

7.43

%

 

7.66

%

 

8.00

%

 

 

7.48

%

 

7.23

%

 

7.30

%

 

7.08

%

 

7.11

%

 

 
















 














Dividends paid to Preferred Shareholders

 

 

1.07

%

 

2.04

%

 

2.01

%

 

1.78

%

 

1.15

%

 

 

1.05

%

 

2.31

%

 

2.40

%

 

2.00

%

 

1.15

%

 

 
















 














Net investment income available to Common Shareholders

 

 

8.62

%

 

6.05

%

 

5.42

%

 

5.88

%

 

6.85

%

 

 

6.43

%

 

4.92

%

 

4.90

%

 

5.08

%

 

5.96

%

 

 
















 















































Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


































Net assets applicable to Common Shareholders, end of year (000)

 

$

296,070

 

$

314,889

 

$

347,563

 

$

362,608

 

$

359,020

 

 

$

511,013

 

$

508,698

 

$

530,903

 

$

555,494

 

$

576,931

 

 

 
















 














Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)

 

$

151,300

 

$

166,050

 

$

205,550

 

$

205,550

 

$

205,550

 

 

$

274,650

 

$

296,125

 

$

363,250

 

$

363,250

 

$

363,250

 

 

 
















 














Portfolio turnover

 

 

19

%

 

21

%

 

12

%

 

68

%

 

49

%

 

 

40

%

 

25

%

 

22

%

 

43

%

 

26

%

 

 
















 














Asset coverage per Preferred Share at $25,000 liquidation preference, end of year

 

$

73,923

 

$

72,419

 

$

67,279

 

$

69,110

 

$

68,672

 

 

$

71,516

 

$

67,958

 

$

61,555

5

$

63,240

5

$

64,711

5

 

 
















 















 

 

1

Based on average shares outstanding.

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

3

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

5

Amounts have been recalculated to conform with current year presentation.


 

 

 

See Notes to Financial Statements.


48

ANNUAL REPORT

AUGUST 31, 2009



 


Financial Highlights


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock MuniVest Fund, Inc. (MVF)

 

 

 


 

 

Year Ended August 31,

 

 

 


 

 

2009

 

2008

 

2007

 

2006

 

2005

 


Per Share Operating Performance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Net asset value, beginning of year

 

$

8.91

 

$

9.39

 

$

9.93

 

$

10.23

 

$

9.91

 

 

 
















Net investment income1

 

 

0.70

 

 

0.67

 

 

0.73

 

 

0.70

 

 

0.74

 

Net realized and unrealized gain (loss)

 

 

(0.03

)

 

(0.45

)

 

(0.55

)

 

(0.23

)

 

0.35

 

Dividends to Preferred Shareholders from net investment income

 

 

(0.06

)

 

(0.18

)

 

(0.20

)

 

(0.17

)

 

(0.10

)

 

 
















Net increase (decrease) from investment operations

 

 

0.61

 

 

0.04

 

 

(0.02

)

 

0.30

 

 

0.99

 

 

 
















Dividends to Common Shareholders from net investment income

 

 

(0.54

)

 

(0.52

)

 

(0.52

)

 

(0.60

)

 

(0.67

)

 

 
















Net asset value, end of year

 

$

8.98

 

$

8.91

 

$

9.39

 

$

9.93

 

$

10.23

 

 

 
















Market price, end of year

 

$

8.91

 

$

8.33

 

$

9.35

 

$

9.66

 

$

10.15

 

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total Investment Return2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Based on net asset value

 

 

8.18

%

 

0.51

%

 

(0.30

)%

 

3.27

%

 

10.64

%

 

 
















Based on market price

 

 

14.81

%

 

(5.63

)%

 

2.05

%

 

1.26

%

 

16.97

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Ratios to Average Net Assets Applicable to Common Shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Total expenses3

 

 

1.53

%

 

1.58

%

 

1.66

%

 

1.60

%

 

1.45

%

 

 
















Total expenses after fees waived and paid indirectly3

 

 

1.50

%

 

1.58

%

 

1.66

%

 

1.60

%

 

1.45

%

 

 
















Total expenses after fees waived and paid indirectly and excluding interest expense and fees3,4

 

 

1.14

%

 

1.10

%

 

1.02

%

 

1.04

%

 

1.02

%

 

 
















Net investment income3

 

 

8.74

%

 

7.34

%

 

7.33

%

 

7.11

%

 

7.38

%

 

 
















Dividends paid to Preferred Shareholders

 

 

0.78

%

 

1.94

%

 

1.98

%

 

1.72

%

 

1.02

%

 

 
















Net investment income available to Common Shareholders

 

 

7.96

%

 

5.40

%

 

5.35

%

 

5.39

%

 

6.36

%

 

 
















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Supplemental Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Net assets applicable to Common Shareholders, end of year (000)

 

$

555,889

 

$

551,027

 

$

579,079

 

$

609,612

 

$

627,562

 

 

 
















Preferred Shares outstanding at $25,000 liquidation preference, end of year (000)

 

$

243,825

 

$

275,700

 

$

334,000

 

$

334,000

 

$

334,000

 

 

 
















Portfolio turnover

 

 

31

%

 

41

%

 

39

%

 

56

%

 

49

%

 

 
















Asset coverage per Preferred Share at $25,000 liquidation preference, end of year

 

$

81,999

 

$

74,993

 

$

68,380

5

$

70,654

5

$

71,973

5

 

 

















 

 

 

 

1

Based on average shares outstanding.

 

 

 

 

2

Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.

 

 

 

 

3

Do not reflect the effect of dividends to Preferred Shareholders.

 

 

 

 

4

Interest expense and fees relate to tender option bond trusts. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to tender option bond trusts.

 

 

 

 

5

Amounts have been recalculated to conform with current year presentation.


 

 

 

See Notes to Financial Statements.




ANNUAL REPORT

AUGUST 31, 2009

49



 


 

Notes to Financial Statements

1. Organization and Significant Accounting Policies:

BlackRock Insured Municipal Income Trust (“BYM”), BlackRock Insured Municipal Income Investment Trust (“BAF”) (collectively the “Insured Trusts”), BlackRock Municipal Bond Trust (“BBK”), BlackRock Municipal Bond Investment Trust (“BIE”) (collectively the “Bond Trusts”) and BlackRock Municipal Income Trust II (“BLE”) are organized as Delaware statutory trusts. BlackRock MuniHoldings Insured Investment Fund (“MFL”) and BlackRock MuniVest Fund, Inc. (“MVF”) (all, collectively the “Trusts”) are organized as a Massachusetts business trust and as a Maryland corporation, respectively. BYM, BBK, and BLE are registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as diversified, closed-end management investment companies. BAF, BIE, MFL and MVF are registered under the 1940 Act as non-diversified, closed-end management investment companies. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America, which may require the use of management accruals and estimates. Actual results may differ from these estimates. The Boards of Directors and the Boards of Trustees of the Trusts are referred to throughout this report as the “Board of Trustees” or the “Board.” Each Trust determines and makes available for publication the net asset value of its Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Trusts:

Valuation of Investments: 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 selected under the supervision of each Trust’s Board. 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. Swap agreements are valued by utilizing quotes received daily by each Trust’s pricing service or through brokers, which are derived using daily swap curves and trades of underlying securities. Financial futures contracts traded on exchanges are valued at their last sale price. Short-term securities with maturities less than 60 days may be valued at amortized cost, which approximates fair value. Investments in open-end investment companies are valued at net asset value each business day.

In the event that application of these methods of valuation results in a price for an investment which is deemed not to be representative of the market value of such investment or are not available, the investment will be valued by a method approved by each Trust’s Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the investment advisor and/or the sub-advisor seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the investment advisor and/or sub-advisor deems relevant. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof.

Forward Commitments and When-Issued Delayed Delivery Securities: The 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. The Trusts may purchase securities under such conditions only 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, the Trusts may be required to pay more at settlement than the security is worth. In addition, the purchaser is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed-delivery basis the Trusts assume 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, the Trusts’ maximum amount of loss is the unrealized gain of the commitment, which is shown on the Schedules of Investments, if any.

Municipal Bonds Transferred to Tender Option Bond Trusts: The Trusts leverage their assets through the use of tender option bond trusts (“TOBs”). A TOB is established by a third party sponsor forming a special purpose entity, into which one or more funds, or an agent on behalf of the funds, transfers municipal bonds. Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Trust has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates, which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that made the transfer. The TOB Residuals held by a Trust include the right of the Trust (1) to cause the holders of a proportional share of the floating rate certificates to tender their certificates at par, and (2) to transfer, within seven days, a corresponding share of the municipal bonds from the TOB to the Trust. The TOB may also be terminated without the consent of the Trust upon the occurrence of certain events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain quarterly or annual renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond or the inability to remarket the short-term floating rate certificates to third party investors.

The cash received by the TOB from the sale of the short-term floating rate certificates, less transaction expenses, is paid to the Trust, which typically invests the cash in additional municipal bonds. Each Trust’s transfer of the municipal bonds to a TOB is accounted for as a secured borrowing, therefore the municipal bonds deposited into a TOB are presented in the Trust’s Schedules of Investments and the proceeds from the issuance of the short-term floating rate certificates are shown as trust certificates in the Statements of Assets and Liabilities.

Interest income from the underlying securities is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are reported as expenses of the Trusts. The floating rate certificates have interest rates that generally reset weekly and their holders have the option to

 

 

 




50

ANNUAL REPORT

AUGUST 31, 2009



 


 

Notes to Financial Statements (continued)

tender certificates to the TOB for redemption at par at each reset date. At August 31, 2009, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for trust certificates and the range of interest rates on the liability for trust certificates were as follows:

 

 

 

 

 

 

 

 

 

 

 









 

 

Underlying
Municipal
Bonds
Transferred to
TOBs

 

Liability
for Trust
Certificates

 

Range of
Interest
Rates

 









BYM

 

$

107,371,921

 

$

58,725,996

 

 

0.29% – 0.64%

 

BAF

 

$

48,525,095

 

$

28,697,357

 

 

0.32% – 0.64%

 

BBK

 

$

11,655,166

 

$

5,899,148

 

 

0.16% – 0.54%

 

BIE

 

$

22,305,661

 

$

11,821,747

 

 

0.27% – 0.39%

 

BLE

 

$

64,130,187

 

$

35,563,189

 

 

0.16% – 0.54%

 

MFL

 

$

87,831,378

 

$

47,363,419

 

 

0.27% – 0.84%

 

MVF

 

$

289,948,175

 

$

152,312,981

 

 

0.16% – 0.54%

 












For the year ended August 31, 2009, the Trusts’ average trust certificates outstanding and the daily weighted average interest rate, including fees, were as follows:

 

 

 

 

 

 

 

 







 

 

Average
Trust Certificates
Outstanding

 

Daily Weighted
Average
Interest Rate

 







BYM

 

$

52,847,321

 

1.74

%

 

BAF

 

$

27,385,209

 

1.73

%

 

BBK

 

$

6,181,966

 

1.63

%

 

BIE

 

$

4,724,632

 

1.01

%

 

BLE

 

$

25,996,217

 

1.42

%

 

MFL

 

$

37,710,660

 

1.60

%

 

MVF

 

$

122,848,869

 

1.51

%

 









Should short-term interest rates rise, the Trusts’ investments in TOBs may adversely affect the Trusts’ investment income and distributions to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB may adversely affect the Trusts’ net asset value per share.

Zero-Coupon Bonds: Each Trust may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations, which provide regular interest payments.

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that a Trust either delivers collateral or segregates assets in connection with certain investments (e.g., financial futures contracts and swap agreements) each Trust will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on its books and records cash or other liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party has requirements to deliver/deposit securities as collateral for certain investments (e.g., financial futures contracts and swap agreements). As part of these agreements, when the value of these investments achieves a previously agreed upon value (minimum transfer amount), each party may be required to deliver additional collateral.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual method. Each Trust amortizes all premiums and discounts on debt securities.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 7.

Income Taxes: It is each Trust’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

Each Trust files US federal and various state and local tax returns. No income tax returns are currently under examination. The statutes of limitations on the Trusts’ US federal tax returns remain open for the four years ended August 31, 2009. The statutes of limitations on the Trusts’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Recent Accounting Pronouncement: In June 2009, Statement of Financial Accounting Standards No. 166, “Accounting for Transfers of Financial Assets — an amendment of FASB Statement No. 140” (“FAS 166”), was issued. FAS 166 is intended to improve the relevance, representational faithfulness and comparability of the information that a reporting entity provides in its financial statements about a transfer of financial assets; the effects of a transfer on its financial position, financial performance, and cash flows; and a transferor’s continuing involvement, if any, in transferred financial assets. FAS 166 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2009. Earlier application is prohibited. The recognition and measurement provisions of FAS 166 must be applied to transfers occurring on or after the effective date. Additionally, the disclosure provisions of FAS 166 should be applied to transfers that occurred both before and after the effective date of FAS 166. The impact of FAS 166 on the Trusts’ financial statement disclosures, if any, is currently being assessed.

Deferred Compensation and BlackRock Closed-End Share Equivalent Investment Plan: Under the deferred compensation plan approved by each Trust’s Board, non-interested Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees. This has approximately the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in the other certain BlackRock Closed-End Funds.

 

 

 




ANNUAL REPORT

AUGUST 31, 2009

51



 


 

Notes to Financial Statements (continued)

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Each Trust may, however, elect to invest in common shares of other certain BlackRock Closed-End Funds selected by the Independent Trustees in order to match its deferred compensation obligations. Investments to cover each Trust’s deferred compensation liability are included in other assets in the Statements of Assets and Liabilities. Dividends and distributions from the BlackRock Closed-End Fund investments under the plan are included in income — affiliated in the Statements of Operations.

Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several funds are prorated among those funds on the basis of relative net assets or other appropriate methods.

2. Derivative Financial Instruments:

The Trusts may engage in various portfolio investment strategies both to increase the returns of the Trusts and to economically hedge, or protect, their exposure to interest rate risk. Losses may arise if the value of the contract decreases due to an unfavorable change in the value of the underlying security, or if the counterparty does not perform under the contract. The Trusts may mitigate counterparty risk through master netting agreements included within an International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreement between a Trust and each of its counterparties. The ISDA Master Agreement allows each Trust to offset with its counterparty certain derivative financial instruments’ payables and/or receivables with collateral held with each counterparty. The amount of collateral moved to/from applicable counterparties is based upon minimum transfer amounts of up to $500,000. To the extent amounts due to the Trusts from their counterparties are not fully collateralized contractually or otherwise, the Trusts bear the risk of loss from counterparty non-performance. See Note 1 “Segregation and Collateralization” for information with respect to collateral practices.

The Trusts’ maximum risk of loss from counterparty credit risk on over-the-counter derivatives is generally the aggregate unrealized gain in excess of any collateral pledged by the counterparty to the Trusts. Certain ISDA Master Agreements allow counterparties to over-the-counter derivatives to terminate derivative contracts prior to maturity in the event a Trust’s net assets decline by stated percentages or a Trust fails to meet the terms of its ISDA Master Agreements, which would cause a Trust to accelerate payment of any net liability owed to the counterparty. Counterparty risk related to exchange-traded financial futures contracts is minimal because of the protection against defaults provided by the exchange on which they trade.

Financial Futures Contracts: The Trusts may purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. 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 value of the contract. Such receipts or payments are known as margin variation and are recognized by the Trusts as unrealized gains or losses. When the contract is closed, the Trusts record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures transactions involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Swaps: The Trusts may enter into swap agreements, in which a Trust and a counterparty agree to make periodic net payments on a specified notional amount. These periodic payments received or made by the Trusts are recorded in the Statements of Operations as realized gains or losses, respectively. Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation). When the swap is terminated, the Trusts will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trusts’ basis in the contract, if any. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

 

 

Forward interest rate swaps — The Trusts may enter into forward interest rate swaps to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds which may decrease when interest rates rise (interest rate risk). In a forward interest rate swap, each Trust and the counterparty agree to make periodic net payments on a specified notional contract amount, commencing on a specified future effective date, unless terminated earlier. The Trusts generally intend to close each forward interest rate swap before the effective date specified in the agreement and therefore avoid entering into the interest rate swap underlying each forward interest rate swap.

Derivatives Not Accounted for as Hedging Instruments under Financial Accounting Standards Board Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities”

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Effect of Derivative Instruments on the Statements of Operations
Year Ended August 31, 2009*


 

 

 

Net Realized Gain (Loss) From Derivatives
Recognized in Income

 

 

 



 

 

BYM

 

BAF

 

BBK

 

BLE

 











Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

Financial futures contracts

 

 

 

 

 

$

22,899

 

$

276,745

 

Forward interest rate swaps

 

$

(3,709,589

)

$

(145,000

)

 

(745,000

)

 

(2,259,715

)















Total

 

$

(3,709,589

)

$

(145,000

)

$

(722,101

)

$

(1,982,970

)

 

 














 

 

 

 

 

 

 

 

 

 

 

 

 

 





 

 

Net Change in Unrealized Appreciation
on Derivatives Recognized in Income

 

 

 



 

 

BYM

 

BAF

 

BBK

 

BLE

 











Interest rate contracts:

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward interest rate swaps

 

$

1,416,803

 

$

127,751

 

$

658,710

 

$

1,655,090

 
















 

 

*

As of August 31, 2009, there were no financial futures contracts or forward interest rate swaps outstanding. During the year ended August 31, 2009, the Trusts had limited activity in these transactions.


 

 

 




52

ANNUAL REPORT

AUGUST 31, 2009



 


 

Notes to Financial Statements (continued)

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) and Bank of America Corporation (“BAC”) are the largest stockholders of BlackRock, Inc. (“BlackRock”). BAC became a stockholder of BlackRock following its acquisition of Merrill Lynch & Co., Inc. (“Merrill Lynch”) on January 1, 2009. Prior to that date, both PNC and Merrill Lynch were considered affiliates of the Trusts under the 1940 Act. Subsequent to the acquisition, PNC remains an affiliate, but due to the restructuring of Merrill Lynch’s ownership interest of BlackRock, BAC is not deemed to be an affiliate under the 1940 Act.

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”) the Trusts’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services.

The Manager is responsible for the management of each Trust’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Trust. For such services, each Trust pays the Manager a monthly fee at an annual rate of 0.55% for the Insured Trusts, BLE and MFL, 0.65% for the Bond Trusts and 0.50% for MVF of each Trust’s average weekly (daily for MFL and MVF) net assets. Average daily or weekly net assets is the average daily or weekly value of each Trust’s total assets minus the sum of its accrued liabilities.

The Manager has voluntarily agreed to waive a portion of the investment advisory fee. With respect to the Insured Trusts, the waiver, as a percentage of average weekly net assets, is as follows: 0.15% through October 2008, 0.10% through October 2009, and 0.05% through October 2010. With respect to the Bond Trusts, the waiver, as a percentage of average weekly net assets, is as follows: 0.20% through April 2009, 0.15% through April 2010, 0.10% through April 2011, and 0.05% through April 2012. With respect to BLE, the waiver, as a percentage of average weekly net assets, is as follows: 0.10% through July 2009 and 0.05% through July 2012. With respect to MFL, the Manager waived its investment advisory fee on the proceeds of Preferred Shares and TOBs that exceeded 35% of the average daily net assets. For the year ended August 31, 2009, the Manager waived the following amounts, which are included in fees waived by advisor in the Statements of Operations:

 

 

 

 

 





 

 

Fees Waived
by Manager

 





BYM

 

$

575,617

 

BAF

 

$

221,829

 

BBK

 

$

380,316

 

BIE

 

$

138,757

 

BLE

 

$

429,775

 

MFL

 

$

507,180

 






Additionally, the Manager has agreed to waive its advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds, which are included in fees waived by advisor in the Statements of Operations. For the year ended August 31, 2009, the amounts waived were as follows:

 

 

 

 

 





 

 

Fees Waived
by Manager

 





BYM

 

$

13,826

 

BAF

 

$

3,780

 

BBK

 

$

9,106

 

BIE

 

$

11,353

 

BLE

 

$

26,137

 

MFL

 

$

72,893

 

MVF

 

$

51,505

 






The Manager has entered into a separate sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Manager, with respect to the Insured Trusts, Bond Trusts and BLE, and BlackRock Investment Management, LLC (“BRIM”), an affiliate of the Manager, with respect to MFL and MVF, under which the Manager pays BFM and BRIM for services it provides, a monthly fee that is a percentage of the investment advisory fee paid by each Trust to the Manager.

For the year ended August 31, 2009, the Trusts reimbursed the Manager for certain accounting services in the following amounts, which are included in accounting services in the Statements of Operations:

 

 

 

 

 





 

 

Reimbursement

 





BYM

 

$

10,499

 

BAF

 

$

3,607

 

BBK

 

$

4,035

 

BIE

 

$

1,509

 

BLE

 

$

9,086

 

MFL

 

$

16,282

 

MVF

 

$

17,870

 






Certain officers and/or trustees of the Trusts are officers and/or directors of BlackRock or its affiliates. The Trusts reimburse the Manager for compensation paid to the Trusts’ Chief Compliance Officer.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the year ended August 31, 2009 were as follows:

 

 

 

 

 

 

 

 







 

 

Purchases

 

Sales

 







BYM

 

$

91,746,742

 

$

125,719,262

 

BAF

 

$

79,693,392

 

$

90,065,008

 

BBK

 

$

99,309,503

 

$

93,868,362

 

BIE

 

$

49,439,295

 

$

48,876,055

 

BLE

 

$

81,539,649

 

$

111,949,476

 

MFL

 

$

303,854,779

 

$

402,007,981

 

MVF

 

$

281,049,983

 

$

264,124,669

 










 

 

 




ANNUAL REPORT

AUGUST 31, 2009

53



 


 

Notes to Financial Statements (continued)

5. Income Tax Information:

Reclassifications: Accounting principles generally accepted in the United States of America require 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. The following permanent differences as of August 31, 2009 attributable to amortization methods on fixed income securities, the expiration of capital loss carryforwards and the tax classification of distributions received from a regulated investment company were reclassified to the following accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















 

 

BYM

 

BAF

 

BBK

 

BIE

 

BLE

 

MFL

 

MVF

 
















Paid-in capital

 

 

 

 

 

 

 

 

 

 

 

$

(19,246,089

)

$

(14,275,201

)

Undistributed net investment income

 

$

(17,223

)

$

(11,485

)

$

(5,263

)

$

(2,169

)

$

2,342

 

$

(1,243,562

)

$

246,636

 

Accumulated net realized loss

 

$

17,223

 

$

11,485

 

$

5,263

 

$

2,169

 

$

(2,342

)

$

20,489,651

 

$

14,028,565

 
























The tax character of distributions paid during the years ended August 31, 2009 and August 31, 2008 was as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
























 

 

BYM

 

BAF

 

BBK

 

BIE

 

BLE

 

MFL

 

MVF

 

















Tax-exempt income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/2009

 

$

22,292,827

 

$

7,020,174

 

$

10,735,433

 

$

3,239,201

 

$

22,161,219

 

$

31,445,738

 

$

37,190,644

 

8/31/2008

 

 

26,084,992

 

 

8,537,681

 

 

12,276,190

 

 

4,002,593

 

 

26,211,919

 

 

37,491,603

 

 

42,927,848

 
























Ordinary income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/2009

 

 

 

 

 

 

 

 

 

 

 

$

97,507

 

 

 

8/31/2008

 

 

 

 

 

$

767,868

 

$

130,903

 

$

555,732

 

 

 

 

 
























Long-term capital gains

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/2008

 

 

 

 

 

$

1,005,577

 

 

 

 

 

 

 

 

 
























Total distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8/31/2009

 

$

22,292,827

 

$

7,020,174

 

$

10,735,433

 

$

3,239,201

 

$

22,161,219

 

$

31,543,245

 

$

37,190,644

 

 

 






















8/31/2008

 

$

26,084,992

 

$

8,537,681

 

$

14,049,635

 

$

4,133,496

 

$

26,767,651

 

$

37,491,603

 

$

42,927,848

 

 

 






















 

As of August 31, 2009, the tax components of accumulated losses were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















 

 

BYM

 

BAF

 

BBK

 

BIE

 

BLE

 

MFL

 

MVF

 

















Undistributed tax-exempt income

 

$

4,088,341

 

$

1,641,794

 

$

1,480,808

 

$

407,177

 

$

3,465,132

 

$

5,673,539

 

$

10,380,439

 

Capital loss carryforward

 

 

(11,192,076

)

 

(429,834

)

 

(3,386,144

)

 

(30,026

)

 

(10,144,555

)

 

(16,304,562

)

 

(14,422,895

)

Net unrealized losses*

 

 

(9,813,344

)

 

(2,311,032

)

 

(8,349,203

)

 

(412,342

)

 

(26,563,879

)

 

(2,796,989

)

 

(2,015,572

)

 

 






















Total accumulated net losses

 

$

(16,917,079

)

$

(1,099,072

)

$

(10,254,539

)

$

(35,191

)

$

(33,243,302

)

$

(13,428,012

)

$

(6,058,028

)

 

 























 

 

 

 

*

The differences between book-basis and tax-basis net unrealized losses were attributable primarily to the tax deferral of losses on wash sales, the tax deferral of losses on straddles, book/tax differences in the accrual of income on securities in default, the deferral of post-October capital losses for tax purposes, the timing and recognition of partnership income, the difference between the book and tax treatment of residual interests in tender option bond trusts, the deferral of compensation to trustees and differences between book and tax amortization methods on fixed income securities.

As of August 31, 2009, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

















Expires

 

BYM

 

BAF

 

BBK

 

BIE

 

BLE

 

MFL

 

MVF

 

















2012

 

 

 

 

 

 

 

 

 

$

5,097,889

 

$

1,836,991

 

 

 

2013

 

 

 

$

178,996

 

 

 

 

 

 

 

 

7,986,138

 

 

 

2015

 

$

1,544,099

 

 

 

 

 

$

30,026

 

 

 

 

 

 

 

2016

 

 

3,217,765

 

 

250,838

 

$

1,160,689

 

 

 

 

1,648,836

 

 

 

$

5,453,226

 

2017

 

 

6,430,212

 

 

 

 

2,225,455

 

 

 

 

3,397,830

 

 

6,481,433

 

 

8,969,669

 

 

 






















Total

 

$

11,192,076

 

$

429,834

 

$

3,386,144

 

$

30,026

 

$

10,144,555

 

$

16,304,562

 

$

14,422,895

 

 

 






















6. Concentration, Market and Credit Risk:

Each Trust invests a substantial amount of its assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states.

Many municipalities insure repayment of their bonds, which reduces the risk of loss due to issuer default. 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.

In the normal course of business, the Trusts invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to credit risk, the Trusts may be exposed to counterparty risk, or the risk that an entity with

 

 

 


54

ANNUAL REPORT

AUGUST 31, 2009




 


 

Notes to Financial Statements (continued)

which the Trusts have unsettled or open transactions may default. Financial assets, which potentially expose the Trusts to credit and counterparty risks, consist principally of investments and cash due from counterparties. The extent of the Trusts’ exposure to credit and counterparty risks with respect to these financial assets is approximated by their value recorded in the Trusts’ Statements of Assets and Liabilities.

7. Capital Share Transactions:

The Insured Trusts, the Bond Trusts and BLE are authorized to issue an unlimited number of shares, including Preferred Shares, par value $0.001 per share, all of which were initially classified as Common Shares. Each Trust’s Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders.

MFL is authorized to issue an unlimited number of shares, including 1 million Preferred Shares, par value $0.10 per share.

MVF is authorized to issue 160 million shares, 150 million of which were initially classified as Common Shares, par value $0.10 per share and 10 million of which were classified as Preferred Shares, par value $0.10 per share.

Common Shares

Shares issued and outstanding during the years ended August 31, 2009 and 2008 increased by the following amounts as a result of dividend reinvestment:

 

 

 

 

 

 

 

 





 

 

 

Year Ended
August 31,

 

 

 



 

 

2009

 

2008

 

 

 



BYM

 

 

11,216

 

 

10,322

 

BBK

 

 

32,485

 

 

58,148

 

BIE

 

 

 

 

6,553

 

BLE

 

 

23,758

 

 

91,244

 

MVF

 

 

60,788

 

 

189,635

 









Shares issued and outstanding remained constant for BAF and MFL during the years ended August 31, 2009 and 2008.

Preferred Shares

The Preferred Shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The Preferred Shares are also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of a Trust, as set forth in each Trust’s Statements of Preferences/Articles Supplementary/Certificates of Designation, as applicable (the “Governing Instrument”) are not satisfied.

From time to time in the future, each Trust may effect repurchases of its Preferred Shares at prices below their liquidation preferences as agreed upon by the Trust and seller. Each Trust also may redeem its Preferred Shares from time to time as provided in the applicable Governing Instrument. Each Trust intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required 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.

The Trusts had the following series of Preferred Shares outstanding, effective yields and reset frequency as of August 31, 2009:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Series

 

Preferred
Shares

 

Effective
Yield

 

Reset
Frequency
Days

 











BYM

 

 

M-7

 

1,830

 

 

0.53

%

 

7

 

 

 

 

 

R-7

 

1,830

 

 

0.49

%

 

7

 

 

 

 

 

F-7

 

1,830

 

 

0.49

%

 

7

 

 

BAF

 

 

M-7

 

1,691

 

 

0.53

%

 

7

 

 

BBK

 

 

T-7

 

1,598

 

 

0.53

%

 

7

 

 

 

 

 

R-7

 

1,598

 

 

0.49

%

 

7

 

 

BIE

 

 

W-7

 

714

 

 

0.52

%

 

7

 

 

BLE

 

 

M-7

 

1,513

 

 

0.53

%

 

7

 

 

 

 

 

T-7

 

1,513

 

 

0.53

%

 

7

 

 

 

 

 

W-7

 

1,513

 

 

0.52

%

 

7

 

 

 

 

 

R-7

 

1,513

 

 

0.49

%

 

7

 

 

MFL

 

 

A

 

1,584

 

 

0.53

%

 

7

 

 

 

 

 

B

 

2,642

 

 

0.49

%

 

7

 

 

 

 

 

C

 

2,601

 

 

0.53

%

 

7

 

 

 

 

 

D

 

1,633

 

 

0.52

%

 

7

 

 

 

 

 

E

 

2,526

 

 

0.49

%

 

7

 

 

MVF

 

 

A

 

1,460

 

 

0.25

%

 

28

 

 

 

 

 

B

 

1,460

 

 

0.23

%

 

28

 

 

 

 

 

C

 

1,460

 

 

0.28

%

 

28

 

 

 

 

 

D

 

1,460

 

 

0.26

%

 

28

 

 

 

 

 

E

 

2,190

 

 

0.23

%

 

7

 

 

 

 

 

F

 

1,723

 

 

1.59

%

 

7

 

 















Dividends on 7- and 28-day Preferred Shares are cumulative at a rate which is reset every 7 or 28 days, respectively, based on the results of an auction. If the Preferred Shares fail to clear the auction on an auction date, the affected Trust is required to pay the maximum applicable rate on the Preferred Shares to holders of such shares for successive dividend periods until such time as the Preferred Shares are successfully auctioned. The maximum applicable rate on all series of Preferred Shares (except MVF) is the higher of 110% of the AA commercial paper rate or 110% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. The maximum applicable rate on the Preferred Shares of MVF for Series A, B, C, D and E is 110% of the interest equivalent of the 60-day commercial paper rate and for Series F is the higher of 110% plus or times (i) the Telerate/BBA LIBOR or (ii) 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. The low, high and average dividend rates on

 

 

 


ANNUAL REPORT

AUGUST 31, 2009

55



 


Notes to Financial Statements (continued)

the Preferred Shares for each Trust for the year ended August 31, 2009 were as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
















 

 

Series

 

Low

 

High

 

Average

 

 
















BYM

 

 

M-7

 

 

0.43%

 

 

10.21%

 

 

1.68%

 

 

 

 

 

R-7

 

 

0.35%

 

 

12.26%

 

 

1.69%

 

 

 

 

 

F-7

 

 

0.35%

 

 

11.73%

 

 

1.67%

 

 

BAF

 

 

M-7

 

 

0.43%

 

 

10.21%

 

 

1.68%

 

 

BBK

 

 

T-7

 

 

0.40%

 

 

11.35%

 

 

1.63%

 

 

 

 

 

R-7

 

 

0.35%

 

 

12.26%

 

 

1.67%

 

 

BIE

 

 

W-7

 

 

0.38%

 

 

12.57%

 

 

1.69%

 

 

BLE

 

 

M-7

 

 

0.43%

 

 

10.21%

 

 

1.62%

 

 

 

 

 

T-7

 

 

0.40%

 

 

11.35%

 

 

1.62%

 

 

 

 

 

W-7

 

 

0.38%

 

 

12.57%

 

 

1.60%

 

 

 

 

 

R-7

 

 

0.35%

 

 

12.26%

 

 

1.62%

 

 

MFL

 

 

A  

 

 

0.40%

 

 

11.35%

 

 

1.67%

 

 

 

 

 

B  

 

 

0.35%

 

 

11.73%

 

 

1.64%

 

 

 

 

 

C  

 

 

0.43%

 

 

10.21%

 

 

1.63%

 

 

 

 

 

D  

 

 

0.38%

 

 

12.57%

 

 

1.69%

 

 

 

 

 

E  

 

 

0.35%

 

 

12.26%

 

 

1.67%

 

 

MVF

 

 

A  

 

 

0.25%

 

 

3.73%

 

 

1.07%

 

 

 

 

 

B  

 

 

0.23%

 

 

3.25%

 

 

0.93%

 

 

 

 

 

C  

 

 

0.28%

 

 

4.11%

 

 

1.19%

 

 

 

 

 

D  

 

 

0.26%

 

 

3.88%

 

 

1.06%

 

 

 

 

 

E  

 

 

0.23%

 

 

4.11%

 

 

1.06%

 

 

 

 

 

F  

 

 

1.46%

 

 

11.42%

 

 

2.62%

 

 
















Since February 13, 2008, the Preferred Shares of each Trust failed to clear any of their auctions. As a result, the Preferred Share dividend rates were reset to the maximum applicable rate that ranged from 0.23% to 12.57%. A failed auction is not an event of default for the Trusts but it has a negative impact on the liquidity of the Preferred Shares. A failed auction occurs when there are more sellers of a Trust’s auction rate Preferred Shares than buyers. It is impossible to predict how long this imbalance will last. A successful auction for each Trust’s Preferred Shares may not occur for some time, if ever, and even if liquidity does resume, Preferred Shareholders may not have the ability to sell the Preferred Shares at their liquidation preference.

A Trust may not declare dividends or make other distributions on Common Shares or purchase any such shares if, at the time of the declaration, distribution or purchase, asset coverage with respect to the outstanding Preferred Shares is less than 200%.

Prior to December 22, 2008, the Trusts paid commissions to certain broker dealers at the end of each auction at an annual rate of 0.25%, calculated on the aggregate principal amount. On December 22, 2008, commissions paid to broker-dealers on Preferred Shares that experienced a failed auction were reduced to 0.15% on the aggregate principal amount. Subsequently, certain broker-dealers have individually agreed to further reduce commissions for failed auctions. The Trusts will continue to pay commissions of 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Merrill Lynch, Pierce, Fenner & Smith, Incorporated, a wholly owned subsidiary of Merrill Lynch, earned commissions as follows for the period September 1, 2008 to December 31, 2008 (after which time Merrill Lynch was no longer considered an affiliate):

 

 

 

 

 






 

 

Commissions






BYM

 

$

4,197

 

BAF

 

$

1,176

 

BBK

 

$

8,141

 

BIE

 

$

1,587

 

BLE

 

$

46,973

 

MFL

 

$

142,711

 

MVF

 

$

106,158

 






During the year ended August 31, 2009, the Trusts announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 















 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 















BYM

 

 

M-7

 

 

7/14/09

 

 

169

 

$

4,225,000

 

 

 

 

R-7

 

 

7/10/09

 

 

169

 

$

4,225,000

 

 

 

 

F-7

 

 

7/13/09

 

 

169

 

$

4,225,000

 

BAF

 

 

M-7

 

 

7/14/09

 

 

84

 

$

2,100,000

 

BBK

 

 

T-7

 

 

7/08/09

 

 

12

 

$

   300,000

 

 

 

 

R-7

 

 

7/10/09

 

 

12

 

$

   300,000

 

BIE

 

 

W-7

 

 

7/09/09

 

 

333

 

$

8,325,000

 

BLE

 

 

M-7

 

 

7/14/09

 

 

147

 

$

3,675,000

 

 

 

 

T-7

 

 

7/08/09

 

 

148

 

$

3,700,000

 

 

 

 

W-7

 

 

7/09/09

 

 

147

 

$

3,675,000

 

 

 

 

R-7

 

 

7/10/09

 

 

148

 

$

3,700,000

 

MFL

 

 

A  

 

 

7/08/09

 

 

124

 

$

3,100,000

 

 

 

 

B  

 

 

7/06/09

 

 

207

 

$

5,175,000

 

 

 

 

C  

 

 

7/07/09

 

 

203

 

$

5,075,000

 

 

 

 

D  

 

 

7/09/09

 

 

128

 

$

3,200,000

 

 

 

 

E  

 

 

7/06/09

 

 

197

 

$

4,925,000

 

MVF

 

 

A  

 

 

6/29/09

 

 

191

 

$

4,775,000

 

 

 

 

B  

 

 

7/06/09

 

 

191

 

$

4,775,000

 

 

 

 

C  

 

 

7/13/09

 

 

191

 

$

4,775,000

 

 

 

 

D  

 

 

7/20/09

 

 

191

 

$

4,775,000

 

 

 

 

E  

 

 

6/29/09

 

 

286

 

$

7,150,000

 

 

 

 

F  

 

 

7/08/09

 

 

225

 

$

5,625,000

 
















 

 

 




56

ANNUAL REPORT

AUGUST 31, 2009



 


Notes to Financial Statements (concluded)

During the year ended August 31, 2008, the Trusts announced the following redemptions of Preferred Shares at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption dates:

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Series

 

Redemption
Date

 

Shares
Redeemed

 

Aggregate
Principal

 


BYM

 

 

M-7

 

 

6/24/08

 

 

1,054

 

$

26,350,000

 

 

 

 

R-7

 

 

6/27/08

 

 

1,054

 

$

26,350,000

 

 

 

 

F-7

 

 

6/30/08

 

 

1,054

 

$

26,350,000

 

BAF

 

 

M-7

 

 

6/24/08

 

 

1,265

 

$

31,625,000

 

BBK

 

 

T-7

 

 

6/25/08

 

 

200

 

$

   5,000,000

 

 

 

 

R-7

 

 

6/27/08

 

 

200

 

$

   5,000,000

 

BIE

 

 

W-7

 

 

6/26/08

 

 

144

 

$

   3,600,000

 

BLE

 

 

M-7

 

 

6/24/08

 

 

395

 

$

   9,875,000

 

 

 

 

T-7

 

 

6/25/08

 

 

395

 

$

   9,875,000

 

 

 

 

W-7

 

 

6/26/08

 

 

395

 

$

   9,875,000

 

 

 

 

R-7

 

 

6/27/08

 

 

395

 

$

   9,875,000

 

MFL

 

 

A  

 

 

6/25/08

 

 

387

 

$

   9,675,000

 

 

 

 

B  

 

 

6/23/08

 

 

646

 

$

16,150,000

 

 

 

 

C  

 

 

6/24/08

 

 

636

 

$

15,900,000

 

 

 

 

D  

 

 

6/26/08

 

 

399

 

$

   9,975,000

 

 

 

 

E  

 

 

6/27/08

 

 

617

 

$

15,425,000

 

MVF

 

 

A  

 

 

6/30/08

 

 

349

 

$

   8,725,000

 

 

 

 

B  

 

 

7/07/08

 

 

349

 

$

   8,725,000

 

 

 

 

C  

 

 

6/16/08

 

 

349

 

$

   8,725,000

 

 

 

 

D  

 

 

6/23/08

 

 

349

 

$

   8,725,000

 

 

 

 

E  

 

 

6/16/08

 

 

524

 

$

13,100,000

 

 

 

 

F  

 

 

6/25/08

 

 

412

 

$

10,300,000

 















The Trusts financed the Preferred Share redemptions with cash received from TOB transactions.

8. Subsequent Events:

Each Trust paid a net investment income dividend on October 1, 2009 to Common Shareholders of record on September 15, 2009 as follows:

 

 

 

 

 


 

 

Common
Dividend
Per Share

 


BYM

 

$

0.0685

 

BAF

 

$

0.0685

 

BBK

 

$

0.0850

 

BIE

 

$

0.0738

 

BLE

 

$

0.0810

 

MFL

 

$

0.0680

 

MVF

 

$

0.0530

 






The dividends declared on Preferred Shares for the period September 1, 2009 to September 30, 2009 for the Trusts were as follows:

 

 

 

 

 

 

 

 









 

 

Series

 

Dividends
Declared

 









BYM

 

 

M-7

 

$

17,178

 

 

 

 

R-7

 

$

17,556

 

 

 

 

F-7

 

$

17,348

 

BAF

 

 

M-7

 

$

18,874

 

BBK

 

 

T-7

 

$

15,513

 

 

 

 

R-7

 

$

15,331

 

BIE

 

 

W-7

 

$

6,923

 

BLE

 

 

M-7

 

$

14,211

 

 

 

 

T-7

 

$

14,682

 

 

 

 

W-7

 

$

14,709

 

 

 

 

R-7

 

$

14,530

 

MFL

 

 

A  

 

$

15,377

 

 

 

 

B  

 

$

25,046

 

 

 

 

C  

 

$

24,416

 

 

 

 

D  

 

$

15,826

 

 

 

 

E  

 

$

24,233

 

MVF

 

 

A  

 

$

8,357

 

 

 

 

B  

 

$

6,809

 

 

 

 

C  

 

$

6,982

 

 

 

 

D  

 

$

6,607

 

 

 

 

E  

 

$

10,672

 

 

 

 

F  

 

$

54,144

 









Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through October 29, 2009, the date the financial statements were issued.

 

 

 




ANNUAL REPORT

AUGUST 31, 2009

57



 


 

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees/Directors of
BlackRock Insured Municipal Income Trust,
BlackRock Insured Municipal Income Investment Trust,
BlackRock Municipal Bond Trust,
BlackRock Municipal Bond Investment Trust,
BlackRock Municipal Income Trust II,
BlackRock MuniHoldings Insured Investment Fund,
and BlackRock MuniVest Fund, Inc. (collectively, the “Trusts”):

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of BlackRock Insured Municipal Income Trust, BlackRock Insured Municipal Income Investment Trust, BlackRock Municipal Bond Trust, BlackRock Municipal Bond Investment Trust, BlackRock Municipal Income Trust II, BlackRock MuniHoldings Insured Investment Fund, and BlackRock MuniVest Fund, Inc. as of August 31, 2009, and the related statements of operations for the year then ended, the statements of changes in 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, and for BlackRock Insured Municipal Income Investment Trust and BlackRock MuniVest Fund, Inc. the statement of cash flows for the year then ended. These financial statements and financial highlights are the responsibility of the Trusts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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. The Trusts are not required to have, nor were we engaged to perform an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of August 31, 2009, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Trusts as of August 31, 2009, the results of their operations 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, and for BlackRock Insured Municipal Income Investment Trust and BlackRock MuniVest Fund, Inc. the statement of cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Deloitte & Touche LLP
Princeton, New Jersey
October 29, 2009

 


Important Tax Information (Unaudited)


All of the net investment income distributions paid by BYM, BAF, BBK, BIE, BLE and MVF during the taxable year ended August 31, 2009 qualify as tax-exempt interest dividends for federal income tax purposes.

The following table summarizes the taxable per share distributions paid by MFL during the taxable year ended August 31, 2009.

 

 

 

 

 

 







 

 

Payable Date

 

Ordinary Income

 







Common

 

12/31/08

 

$0.001716

 

A

 

12/10/08

 

$2.780000

 

B

 

12/15/08

 

$2.760000

 

C

 

12/09/08

 

$2.770000

 

D

 

12/11/08

 

$2.810000

 

E

 

12/19/08

 

$2.770000

 







All other net investment income distributions paid by MFL during the taxable year ended August 31, 2009 qualify as tax-exempt interest dividends for Federal income tax purposes.

 

 

 


58

ANNUAL REPORT

AUGUST 31, 2009




 


 

Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements

The Board of Directors or the Board of Trustees, as the case may be (each, a “Board” and, collectively, the “Boards,” and the members of which are referred to as “Board Members”) of each of BlackRock Insured Municipal Income Trust (“BYM”), BlackRock Insured Municipal Income Investment Trust (“BAF”), BlackRock Municipal Bond Trust (“BBK”), BlackRock Municipal Bond Investment Trust (“BIE”), BlackRock Municipal Income Trust II (“BLE”), BlackRock MuniHoldings Insured Investment Fund (“MFL”) and BlackRock MuniVest Fund, Inc. (“MVF” and together with BYM, BAF, BBK, BIE, BLE and MFL each a “Trust,” and, collectively, the “Trusts”) met on April 14, 2009 and May 28 – 29, 2009 to consider the approval of its respective Trust’s investment advisory agreement (each, an “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”), each Trust’s investment advisor. Each Board also considered the approval of the sub-advisory agreement (each, a “Sub-Advisory Agreement”) between its respective Trust, the Manager, and BlackRock Investment Management, LLC or BlackRock Financial Management, Inc., as the case may be (each a “Sub-Advisor”). The Manager and the Sub-Advisors are referred to herein as “BlackRock.” The Advisory Agreements and the Sub-Advisory Agreements are referred to herein as the “Agreements.” Unless otherwise indicated, references to actions taken by the “Board” or the “Boards” shall mean each Board acting independently with respect to its respective Trust.

Activities and Composition of the Boards

Each Board consists of twelve individuals, ten of whom are not “interested persons” of the Trusts as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members of each Trust are responsible for the oversight of the operations of such Trust 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 Chairman of each Board is an Independent Board Member. Each 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 composed of Independent Board Members (except for the Executive Committee, which has one interested Board Member) and is chaired by an Independent Board Member. In addition, each Board has established an Ad Hoc Committee on Auction Market Preferred Shares.

The Agreements

Pursuant to the 1940 Act, each Board is required to consider the continuation of the Agreements on an annual basis. In connection with this process, each Board assessed, among other things, the nature, scope and quality of the services provided to its respective Trust by the personnel of BlackRock and its affiliates, including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services and assistance in meeting applicable legal and regulatory requirements.

Throughout the year, the Boards, acting directly and through their committees, consider at each of their meetings factors that are relevant to their annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Trusts and their shareholders. Among the matters the Boards considered were: (a) investment performance for one-, three- and five-year periods, as applicable, against peer funds, and applicable benchmarks, if any, as well as senior management and portfolio managers’ analysis of the reasons for any outperformance or underperformance against its peers; (b) fees, including advisory and other amounts paid to BlackRock and its affiliates by the Trusts for services such as call center and fund accounting; (c) the Trusts’ operating expenses; (d) the resources devoted to, and compliance reports relating to, the Trusts’ investment objectives, policies and restrictions; (e) the Trusts’ compliance with their Code of Ethics and compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls; (h) BlackRock’s implementation of the proxy voting policies approved by the Boards; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of the Trusts’ valuation and liquidity procedures; and (k) periodic updates on BlackRock’s business.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April 14, 2009 meeting, each Board requested and received materials specifically relating to the Agreements. Each Board is engaged in an ongoing process with BlackRock to continuously review the nature and scope of the information provided to better assist their deliberations. The materials provided in connection with the April meeting included: (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on Trust fees and expenses, and the investment performance of each Trust as compared with a peer group of funds as determined by Lipper and a customized peer group selected by BlackRock (collectively, “Peers”); (b) information on the profitability of the Agreements to BlackRock and a discussion of fall-out benefits to BlackRock and its affiliates and significant shareholders; (c) a general analysis provided by BlackRock concerning investment advisory fees charged to other clients, such as institutional clients and open-end funds, under similar investment mandates, as well as the performance of such other clients; (d) the impact of economies of scale; (e) a summary of aggregate amounts paid by each Trust to BlackRock; and (f) an internal comparison of management fees classified by Lipper, if applicable.

 

 

 


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Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

At an in-person meeting held on April 14, 2009, each Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the April 14, 2009 meeting, the Boards presented BlackRock with questions and requests for additional information and BlackRock responded to these requests with additional written information in advance of the May 28 – 29, 2009 Board meeting.

At an in-person meeting held on May 28 – 29, 2009, each Trust’s Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and such Trust and the Sub-Advisory Agreement between such Trust, the Manager and each Trust’s respective Sub-Advisor, each for a one-year term ending June 30, 2010. The Boards considered all factors they believed relevant with respect to the Trusts, including, among other factors: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Trusts and BlackRock portfolio management; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and certain affiliates from the relationship with the Trusts; (d) economies of scale; and (e) other factors.

Each Board also considered other matters it deemed important to the approval process, such as services related to the valuation and pricing of its respective Trust’s portfolio holdings, direct and indirect benefits to BlackRock and its affiliates and significant shareholders from their relationship with such Trust and advice from independent legal counsel with respect to the review process and materials submitted for the Board’s review. The Boards noted the willingness of BlackRock personnel to engage in open, candid discussions with the Boards. The Boards did not identify any particular information as controlling, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services: Each Board, including its Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of its respective Trust. Throughout the year, each Board compared its respective Trust’s performance to the performance of a comparable group of closed-end funds, and the performance of at least one relevant benchmark, if any. The Boards met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. Each Board also reviewed the materials provided by its respective Trust’s portfolio management team discussing such Trust’s performance and such Trust’s investment objective, strategies and outlook.

Each Board considered, among other factors, the number, education and experience of BlackRock’s investment personnel generally and its respective Trust’s portfolio management team, investments by portfolio managers in the funds they manage, BlackRock’s portfolio trading capabilities, BlackRock’s use of technology, BlackRock’s commitment to compliance and BlackRock’s approach to training and retaining portfolio managers and other research, advisory and management personnel. Each Board also reviewed a general description of BlackRock’s compensation structure with respect to its respective Trust’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent.

In addition to advisory services, each Board considered the quality of the administrative and non-investment advisory services provided to its respective Trust. BlackRock and its affiliates and significant shareholders provide the Trusts with certain administrative and other services (in addition to any such services provided to the Trusts by third parties) and officers and other personnel as are necessary for the operations of the Trusts. In addition to investment advisory services, BlackRock and its affiliates provide the Trusts with other services, including: (i) preparing 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 the Trusts; (iii) assisting with daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; and (viii) performing other administrative functions necessary for the operation of the Trusts, such as tax reporting, fulfilling regulatory filing requirements, and call center services. The Boards reviewed the structure and duties of BlackRock’s fund administration, accounting, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Trusts and BlackRock: Each Board, including its Independent Board Members, also reviewed and considered the performance history of its respective Trust. In preparation for the April 14, 2009 meeting, the Boards were provided with reports, independently prepared by Lipper, which included a comprehensive analysis of each Trust’s performance. The Boards also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock, which analyzed various factors that affect Lipper’s rankings. In connection with its review, each Board received and reviewed information regarding the investment performance of its respective Trust as compared to a representative group of similar funds as determined by Lipper and to all funds in such Trust’s applicable Lipper category and customized peer group selected by BlackRock. Each Board was provided with a description of the methodology used by Lipper to select peer funds. Each Board regularly reviews the performance of its respective Trust throughout the year.

 

 

 


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Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued)

The Board of each of BYM, BAF, BBK, BIE, MFL and MVF noted that, in general, BYM, BAF, BBK, BIE, MFL and MVF performed better than their respective Peers in that the performance of each of BYM, BAF, BBK, BIE, MFL and MVF was at or above the median of their respective customized Lipper peer group composite in each of the one-, three- and five-year periods reported.

The Board of BLE noted that, in general, BLE performed better than its Peers in that BLE’s performance was at or above the median of its customized Lipper peer group composite in two of the one-, three- and five-year periods reported.

C. Consideration of the Advisory Fees and the Cost of the Services and Profits to be realized by BlackRock and its Affiliates from their Relationship with the Trusts: Each Board, including its Independent Board Members, reviewed its respective Trust’s contractual advisory fee rates compared with the other funds in its respective Lipper category. Each Board also compared its respective Trust’s total expenses, as well as actual management fees, to those of other comparable funds. Each Board considered the services provided and the fees charged by BlackRock to other types of clients with similar investment mandates, including separately managed institutional accounts.

The Boards received and reviewed statements relating to BlackRock’s financial condition and profitability with respect to the services it provided the Trusts. The Boards were also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Trusts. The Boards reviewed BlackRock’s profitability with respect to the Trusts and other funds the Boards currently oversee for the year ended December 31, 2008 compared to available aggregate profitability data provided for the year ended December 31, 2007. The Boards reviewed BlackRock’s profitability with respect to other fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers by the Manager, the types of funds managed, expense allocations and business mix, and therefore comparability of profitability is somewhat limited.

The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available. Nevertheless, to the extent such information is available, the Boards considered BlackRock’s overall operating margin compared to the operating margin for leading investment management firms whose operations include advising closed-end funds, among other product types. The comparison indicated that operating margins for BlackRock with respect to its registered funds are generally consistent with margins earned by similarly situated publicly traded competitors. In addition, the Boards considered, among other things, certain third-party data comparing BlackRock’s operating margin with that of other publicly-traded asset management firms, which concluded that larger asset bases do not, in themselves, translate to higher profit margins.

In addition, the Boards considered the cost of the services provided to the Trusts by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management and distribution of the Trusts and the other funds advised by BlackRock and its affiliates. As part of their analysis, the Boards reviewed BlackRock’s methodology in allocating its costs to the management of the Trusts. The Boards also 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 Boards.

The Board of each of BYM, BAF, BLE, MFL and MVF noted that its respective Trust paid contractual management fees, which do not take into account any expense reimbursement or fee waivers, lower than or equal to the median contractual management fees paid by such Trust’s Peers.

The Board of each of BBK and BIE noted that, although each of BBK and BIE paid contractual management fees, which do not take into account any expense reimbursement or fee waivers, higher than the median of its respective Peers, such fees were within 5% of the median amount.

D. Economies of Scale: Each Board, including its Independent Board Members, considered the extent to which economies of scale might be realized as the assets of its respective Trust increase and whether there should be changes in the advisory fee rate or structure in order to enable such Trust to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the assets of such Trust. The Boards considered that the funds in the BlackRock fund complex share some common resources and, as a result, an increase in the overall size of the complex could permit each fund to incur lower expenses than it would otherwise as a stand-alone entity. The Boards also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations.

 

 

 


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Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded)

The Boards noted that most closed-end fund complexes do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering and each fund is managed independently, consistent with its own investment objectives. The Boards noted that only one closed-end fund in the Fund Complex has breakpoints in its fee structure. Information provided by Lipper also revealed that only one closed-end fund complex used a complex-level breakpoint structure.

E. Other Factors: The Boards also took into account other ancillary or “fallout” benefits that BlackRock or its affiliates and significant shareholders may derive from their relationship with the Trusts, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates and significant shareholders as service providers to the Trusts, including for administrative and distribution services. The Boards also noted that BlackRock may use third-party research obtained by soft dollars generated by certain mutual fund transactions to assist itself in managing all or a number of its other client accounts.

In connection with their consideration of the Agreements, the Boards also received information regarding BlackRock’s brokerage and soft dollar practices. The Boards received reports from BlackRock, which included information on brokerage commissions and trade execution practices throughout the year.

Conclusion

Each Board, including its Independent Board Members, unanimously approved the continuation of the Advisory Agreement between its respective Trust and the Manager for a one-year term ending June 30, 2010 and the Sub-Advisory Agreement between such Trust, the Manager and each Trust’s respective Sub-Advisor for a one-year term ending June 30, 2010. Based upon its evaluation of all these factors in their totality, each Board, including its Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of its respective Trust and its shareholders. In arriving at a decision to approve the Agreements, each 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. The contractual fee arrangements for each Trust reflects the results of several years of review by such Trust’s Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. Certain aspects of the arrangements may be the subject of more attention in some years than in others, and the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.

 

 

 


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Automatic Dividend Reinvestment Plans

 


For BYM, BAF, BBK, BIE and BLE


Pursuant to each Trust’s Dividend Reinvestment Plan (the “Plan”), common shareholders are automatically enrolled to have all distributions of dividends and capital gains reinvested by Computershare Trust Company, N.A. (the “Plan Agent”) in the respective Trust’s shares pursuant to the Plan. Shareholders who do not participate in the 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 or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.

After a Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants’ accounts, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (“newly issued shares”) or (ii) by purchase of outstanding shares on the open market, on the Trust’s primary exchange or elsewhere (“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 being referred to herein as “market premium”), the Plan Agent will invest the dividend amount in newly issued shares 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 payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as “market discount”), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases.

Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Administrator prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution.

The Plan Agent’s fees for the handling of the reinvestment of dividends and distributions will be paid by each Trust However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agent’s open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any federal income tax that may be payable on such dividends or distributions.

Each Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, each Trust reserves the right to amend the Plan to include a service charge payable by the participants, Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at P.O. Box 43078, Providence, Rl 02940-3078 or by calling (800) 699-1BFM. All overnight correspondence should be directed to the Plan Agent at 250 Royall Street, Canton, MA 02021.

 

 

 


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AUGUST 31, 2009

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Automatic Dividend Reinvestment Plans (concluded)

 


For MFL and MVF


The Trusts offer a Dividend Reinvestment Plan (the “Plan”) under which income and capital gains dividends paid by MFL and MVF are automatically reinvested in additional Common Shares of the Trust. The Plan is administered on behalf of the shareholders by BNY Mellon Shareowner Services (the “Plan Agent”). Under the Plan, whenever a Trust declares a dividend, participants in the Plan will receive the equivalent in Common Shares of the Trust. The Plan Agent will acquire the shares for the participant’s account either (i) through receipt of additional unissued but authorized shares of the Trusts (“newly issued shares”) or (ii) by purchase of outstanding Common Shares on the open market on the New York Stock Exchange or elsewhere. If, on the dividend payment date, the Trust’s net asset value per share is equal to or less than the market price per share plus estimated brokerage commissions (a condition often referred to as a “market premium”), the Plan Agent will invest the dividend amount in newly issued shares. If the Trust’s net asset value per share is greater than the market price per share (a condition often referred to as a “market discount”), the Plan Agent will invest the dividend amount by purchasing on the open market additional shares. If the 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 Plan Agent will invest any uninvested portion in newly issued shares. The shares acquired are credited to each shareholder’s account. The amount credited is determined by dividing the dollar amount of the dividend by either (i) when the shares are newly issued, the net asset value per share on the date the shares are issued or (ii) when shares are purchased in the open market, the average purchase price per share.

Participation in the Plan is automatic, that is, a shareholder is automatically enrolled in the Plan when he or she purchases Common Shares of the Trusts unless the shareholder specifically elects not to participate in the Plan. Shareholders who elect not to participate will receive all dividend distributions in cash. Shareholders who do not wish to participate in the Plan must advise the Plan Agent in writing (at the address set forth below) that they elect not to participate in the Plan. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by writing to the Plan Agent.

The Plan provides an easy, convenient way for shareholders to make additional, regular investments in the Trust. The Plan promotes a long-term strategy of investing at a lower cost. All shares acquired pursuant to the Plan receive voting rights. In addition, if the market price plus commissions of a Trust’s shares is above the net asset value, participants in the Plan will receive shares of the Trust for less than they could otherwise purchase them and with a cash value greater than the value of any cash distribution they would have received. However, there may not be enough shares available in the market to make distributions in shares at prices below the net asset value. Also, since the Trusts do not redeem shares, the price on resale may be more or less than the net asset value.

There are no enrollment fees or brokerage fees for participating in the Plan. The Plan Agent’s service fees for handling the reinvestment of distributions are paid for by the Trusts. However, brokerage commissions may be incurred when the Trusts purchase shares on the open market and shareholders will pay a pro rata share of any such commissions.

The automatic reinvestment of dividends and distributions will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such dividends. Therefore, income and capital gains may still be realized even though shareholders do not receive cash. Participation in the Plan generally will not affect the tax-exempt status of exempt interest dividends paid by the Trusts. If, when the Trusts’ shares are trading at a market premium, the Trusts issue shares pursuant to the Plan that have a greater fair market value than the amount of cash reinvested, it is possible that all or a portion of the discount from the market value (which may not exceed 5% of the fair market value of the Trusts’ shares) could be viewed as a taxable distribution. If the discount is viewed as a taxable distribution, it is also possible that the taxable character of this discount would be allocable to all the shareholders, including shareholders who do not participate in the Plan. Thus, shareholders who do not participate in the Plan might be required to report as ordinary income a portion of their distributions equal to their allocable share of the discount.

All correspondence concerning the Plan, including any questions about the Plan, should be directed to the Plan Agent at The BNY Mellon Shareowner Services, P.O. Box 358035, Pittsburgh, PA 15252-8035, Telephone: (866) 216-0242.

 

 

 


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Officers and Trustees


 

 

 

 

 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Trusts

 

Length
of Time
Served as
a Trustee2

 

Principal Occupation(s) During Past Five Years

 

Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen

 

Public
Directorships












Non-Interested Trustees1


Richard E. Cavanagh
40 East 52nd Street
New York, NY 10022
1946

 

Chairman of the Board and Trustee

 

Since 1994

 

Trustee, Aircraft Finance Trust since 1999; Director, The Guardian Life Insurance Company of America since 1998; Trustee, Educational Testing Service from 1997 to 2009 and Chairman from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Adjunct Lecturer, Harvard University since 2007; President and Chief Executive Officer of The Conference Board, Inc. (global business research organization) from 1995 to 2007.

 

104 RICs consisting of 101 Portfolios

 

Arch Chemical (chemical and allied products)












Karen P. Robards
40 East 52nd Street
New York, NY 10022
1950

 

Vice Chair of the Board, Chair of the Audit Committee and Trustee

 

Since 2007

 

Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Enable Medical Corp. from 1996 to 2005.

 

104 RICs consisting of 101 Portfolios

 

AtriCure, Inc. (medical devices); Care Investment Trust, Inc. (health care real estate investment trust)












G. Nicholas
Beckwith, III
40 East 52nd Street
New York, NY 10022
1945

 

Trustee

 

Since 2007

 

Chairman and Chief Executive Officer, Arch Street Management, LLC (Beckwith Family Foundation) and various Beckwith property companies since 2005; Chairman of the Board of Directors, University of Pittsburgh Medical Center since 2002; Board of Directors, Shady Side Hospital Foundation since 1977; Board of Directors, Beckwith Institute for Innovation In Patient Care since 1991; Member, Advisory Council on Biology and Medicine, Brown University since 2002; Trustee, Claude Worthington Benedum Foundation (charitable foundation) since 1989; Board of Trustees, Chatham University since 1981; Board of Trustees, University of Pittsburgh since 2002; Emeritus Trustee, Shady Side Academy since 1977; Chairman and Manager, Penn West Industrial Trucks LLC (sales, rental and servicing of material handling equipment) from 2005 to 2007; Chairman, President and Chief Executive Officer, Beckwith Machinery Company (sales, rental and servicing of construction and equipment) from 1985 to 2005; Board of Directors, National Retail Properties (REIT) from 2006 to 2007.

 

104 RICs consisting of 101 Portfolios

 

None












Kent Dixon
40 East 52nd Street
New York, NY 10022
1937

 

Trustee and Member of the Audit Committee

 

Since 1988

 

Consultant/Investor since 1988.

 

104 RICs consisting of 101 Portfolios

 

None












Frank J. Fabozzi
40 East 52nd Street
New York, NY 10022
1948

 

Trustee and Member of the Audit Committee

 

Since 1988

 

Consultant/Editor of The Journal of Portfolio Management since 2006; Professor in the Practice of Finance and Becton Fellow, Yale University, School of Management since 2006; Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006.

 

104 RICs consisting of 101 Portfolios

 

None












Kathleen F. Feldstein
40 East 52nd Street
New York, NY 10022
1941

 

Trustee

 

Since 2005

 

President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. since 2005; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003.

 

104 RICs consisting of 101 Portfolios

 

The McClatchy Company (publishing)












James T. Flynn
40 East 52nd Street
New York, NY 10022
1939

 

Trustee and Member of the Audit Committee

 

Since 2007

 

Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995.

 

104 RICs consisting of 101 Portfolios

 

None












Jerrold B. Harris
40 East 52nd Street
New York, NY 10022
1942

 

Trustee

 

Since 2007

 

Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000.

 

104 RICs consisting of 101 Portfolios

 

BlackRock Kelso Capital Corp.













 

 

 


ANNUAL REPORT

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65




 


 

Officers and Trustees (continued)


 

 

 

 

 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Trusts

 

Length
of Time
Served as
a Trustee2

 

Principal Occupation(s) During Past Five Years

 

Number of BlackRock-
Advised Registered
Investment Companies
(“RICs”) Consisting of
Investment Portfolios
(“Portfolios”) Overseen

 

Public
Directorships












Non-Interested Trustees1 (concluded)












R. Glenn Hubbard
40 East 52nd Street
New York, NY 10022
1958

 

Trustee

 

Since 2004

 

Dean, Columbia Business School since 2004; Columbia faculty member since 1988; Co-Director, Columbia Business School’s Entrepreneurship Program from 1997 to 2004; Visiting Professor, John F. Kennedy School of Government at Harvard University and the Harvard Business School since 1985 and at the University of Chicago since 1994; Chairman, U.S. Council of Economic Advisers under the President of the United States from 2001 to 2003.

 

104 RICs consisting of 101 Portfolios

 

ADP (data and information services); KKR Financial Corporation (finance); Duke Realty (real estate); Metropolitan Life Insurance Company (insurance); Information Services Group (media/technology)












W. Carl Kester
40 East 52nd Street
New York, NY 10022
1951

 

Trustee and Member of the Audit Committee

 

Since 2007

 

George Fisher Baker Jr. Professor of Business Administration, Harvard Business School; Deputy Dean for Academic Affairs since 2006; Unit Head, Finance, Harvard Business School from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program of Harvard Business School, from 1999 to 2005; Member of the faculty of Harvard Business School since 1981; Independent Consultant since 1978.

 

104 RICs consisting of 101 Portfolios

 

None


 

 

 

 



 

1

Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.

 

 

 

 

2

Date shown is the earliest date a person has served for any of the Trusts covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. (“BlackRock”) in September 2006, the various legacy MLIM and legacy BlackRock Fund boards were realigned and consolidated into three new Fund boards in 2007. As a result, although the chart shows certain trustees as joining the Trust’s board in 2007, each director first became a member of the board of directors of other legacy MLIM or legacy BlackRock Funds as follows: G. Nicholas Beckwith, III, 1999; Richard E. Cavanagh, 1994; Kent Dixon, 1988; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995 and Karen P. Robards, 1998.


 

 

 

 

 

 

 

 

 

 

 


Interested Trustees3


Richard S. Davis
40 East 52nd Street
New York, NY 10022
1945

 

Trustee

 

Since 2007

 

Managing Director, BlackRock, Inc. since 2005; Chief Executive Officer, State Street Research & Management Company from 2000 to 2005; Chairman of the Board of Trustees, State Street Research Mutual Funds from 2000 to 2005; Chairman, SSR Realty from 2000 to 2004.

 

173 RICs consisting of 283 Portfolios

 

None












Henry Gabbay
40 East 52nd Street
New York, NY 10022
1947

 

Trustee

 

Since 2007

 

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 Bond Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.

 

173 RICs consisting of 283 Portfolios

 

None

 

 











 

 

 

 

3

Mr. Davis is an “interested person,” as defined in the Investment Company Act of 1940, of the Trusts based on his position with BlackRock, Inc. and its affiliates. Mr. Gabbay is an “interested person” of the Trusts based on his former positions with BlackRock, Inc. and its affiliates as well as his ownership of BlackRock, Inc. and PNC securities. Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72.


 

 

 


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Officers and Trustees (concluded)


 

 

 

 

 

 

 

Name, Address
and Year of Birth

 

Position(s)
Held with
Trusts

 

Length
of Time
Served

 

Principal Occupation(s) During Past Five Years








Trusts Officers1


Anne F. Ackerley
40 East 52nd Street
New York, NY 10022
1962

 

President and Chief Executive Officer

 

Since 2009

 

Managing Director of BlackRock, Inc. since 2000; Vice President of the BlackRock-advised Funds from 2007 to 2009; Chief Operating Officer of BlackRock’s Account Management Group (AMG) since 2009; Chief Operating Officer of BlackRock’s U.S. Retail Group from 2006 to 2009; Head of BlackRock’s Mutual Fund Group from 2000 to 2006.








Brendan Kyne
40 East 52nd Street
New York, NY 10022
1977

 

Vice President

 

Since 2009

 

Director of BlackRock, Inc. since 2008; Head of Product Development and Management for BlackRock’s U.S. Retail Group since 2009, co-head thereof from 2007 to 2009; Vice President of BlackRock, Inc. from 2005 to 2008; Associate of BlackRock, Inc. from 2002 to 2004.








Neal J. Andrews
40 East 52nd Street
New York, NY 10022
1966

 

Chief Financial Officer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006.








Jay M. Fife
40 East 52nd Street
New York, NY 10022
1970

 

Treasurer

 

Since 2007

 

Managing Director of BlackRock, Inc. since 2007 and Director in 2006; Assistant Treasurer of the Merrill Lynch Investment Managers, L.P. (“MLIM”) and Fund Asset Management, L.P.-advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006.








Brian P. Kindelan
40 East 52nd Street
New York, NY 10022
1959

 

Chief Compliance Officer

 

Since 2007

 

Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock, Inc. since 2005; Director and Senior Counsel of BlackRock Advisors, LLC from 2001 to 2004.








Howard B. Surloff
40 East 52nd Street
New York, NY 10022
1965

 

Secretary

 

Since 2007

 

Managing Director of BlackRock, Inc. and General Counsel of U.S. Funds at BlackRock, Inc. since 2006; General Counsel (U.S.) of Goldman Sachs Asset Management, L.P. from 1993 to 2006.


 

 

 

 



 

1

Officers of the Trusts serve at the pleasure of the Board of Trustees.




Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisors
BlackRock Investment
Management, LLC2
Plainsboro, NJ 08536

BlackRock Financial
Management, Inc.3
New York, NY 10022

Custodians
The Bank of New York Mellon2
New York, NY 10286

State Street Bank and
Trust Company3
Boston, MA 02101

Transfer Agents
Common Shares:

BNY Mellon Shareowner Services2
Jersey City, NJ 07310

Computershare Trust Company, N.A.3
Providence, RI 02940

Auction Agents
Preferred Shares:

BNY Mellon Shareowner Services
Jersey City, NJ 07310

Accounting Agent
State Street Bank and
Trust Company
Princeton, NJ 08540

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Princeton, NJ 08540

Legal Counsel
Skadden, Arps, Slate,
Meagher & Flom LLP
New York, NY 10036

Address of the Trusts
100 Bellevue Parkway
Wilmington, DE 19809

2 For MFL and MVF.

3 For BYM, BAF, BBK, BIE and BLE.

 

 

 

 


 

 

 

Effective July 31, 2009, Donald C. Burke, President and Chief Executive Officer of the Trusts retired. The Trusts’ Board of Directors wishes Mr. Burke well in his retirement.

 

 

 

 

 

Effective August 1, 2009, Anne F. Ackerley became President and Chief Executive Officer of the Trusts, and Brendan Kyne became Vice President of the Trusts.

 

 

 


 


 

 

 


ANNUAL REPORT

AUGUST 31, 2009

67



 


 

Additional Information

 


Proxy Results


The Annual Meeting of Shareholders was held on August 26, 2009 for shareholders of record on June 29, 2009 to elect trustee nominees of each Trust:

Approved the Class II Trustees as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 









 

 

Richard S. Davis

 

Frank J. Fabozzi

 

James T. Flynn

 

 

 


 


 



 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















BYM

 

 

23,504,283

 

 

511,216

 

 

4,3321

 

 

651

 

 

23,504,283

 

 

511,216

 

BAF

 

 

7,974,285

 

 

270,225

 

 

1,3991

 

 

01

 

 

7,974,285

 

 

270,225

 

BBK

 

 

9,504,325

 

 

269,506

 

 

1,9151

 

 

241

 

 

9,504,325

 

 

269,506

 

BIE

 

 

2,891,028

 

 

114,577

 

 

5271

 

 

81

 

 

2,891,028

 

 

114,577

 

BLE

 

 

20,276,378

 

 

539,495

 

 

3,6371

 

 

581

 

 

20,276,378

 

 

539,495

 





















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Karen P. Robards

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Votes For

 

Votes
Withheld

 

 

 

 

 

 

 

 

 

 

 

 

 






 

 

 

 

 

 

 

 

 

 

 

 

 

BYM

 

 

23,468,179

 

 

547,320

 

 

 

 

 

 

 

 

 

 

 

 

 

BAF

 

 

7,986,458

 

 

258,052

 

 

 

 

 

 

 

 

 

 

 

 

 

BBK

 

 

9,486,429

 

 

287,402

 

 

 

 

 

 

 

 

 

 

 

 

 

BIE

 

 

2,891,028

 

 

114,577

 

 

 

 

 

 

 

 

 

 

 

 

 

BLE

 

 

20,244,414

 

 

571,459

 

 

 

 

 

 

 

 

 

 

 

 

 








 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Approved the Trustees as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





















 

 

G. Nicholas Beckwith, III

 

Richard E. Cavanagh

 

Richard S. Davis

 

 

 


 


 



 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















MFL

 

 

31,075,674

 

 

3,478,578

 

 

31,372,988

 

 

3,181,264

 

 

31,306,116

 

 

3,248,136

 

MVF

 

 

55,409,933

 

 

2,695,127

 

 

55,492,735

 

 

2,612,325

 

 

55,340,001

 

 

2,765,059

 





















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kent Dixon

 

Frank J. Fabozzi

 

Kathleen F. Feldstein

 

 

 


 


 



 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















MFL

 

 

31,325,843

 

 

3,228,409

 

 

8,3981

 

 

781

 

 

31,098,042

 

 

3,456,210

 

MVF

 

 

55,415,322

 

 

2,689,738

 

 

7,2931

 

 

311

 

 

55,330,409

 

 

2,774,651

 





















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

James T. Flynn

 

Henry Gabbay

 

Jerrold B. Harris

 

 

 


 


 



 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















MFL

 

 

31,264,305

 

 

3,289,947

 

 

31,307,869

 

 

3,246,383

 

 

31,184,305

 

 

3,369,947

 

MVF

 

 

55,406,558

 

 

2,698,502

 

 

55,393,972

 

 

2,711,088

 

 

55,301,228

 

 

2,803,832

 





















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

R. Glenn Hubbard

 

W. Carl Kester

 

Karen P. Robards

 

 

 


 


 



 

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 

Votes For

 

Votes
Withheld

 















MFL

 

 

31,066,089

 

 

3,488,163

 

 

8,3851

 

 

911

 

 

31,408,679

 

 

3,145,573

 

MVF

 

 

55,424,134

 

 

2,680,926

 

 

7,2931

 

 

311

 

 

55,436,714

 

 

2,668,346

 






















 

 

1

Voted on by holders of Preferred Shares only.

 

 


Fund Certification


Certain Trusts are listed for trading on the New York Stock Exchange (“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 their chief executive officer and chief financial officer required by section 302 of the Sarbanes-Oxley Act.

 

 

 




68

ANNUAL REPORT

AUGUST 31, 2009



 


 

Additional Information (continued)

 


     Dividend Policy


The Trusts’ dividend policy is to distribute all or a portion of their net investment income to their shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend 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 dividends paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

 


     General Information


The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.

Other than the revisions discussed in the Board of Approvals on page 70, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charter or by-laws 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’ portfolio.

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s web-site is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website into this report.

Electronic Delivery

Electronic copies of most financial reports are available on the Trusts’ web-site or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Trusts’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and it 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 contact the Funds at (800) 441-7762.

Availability of Quarterly Schedule of Investments

Each Trust files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling (202) 551-8090. Each Trust’s Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

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 (1) without charge, upon request, by calling toll-free (800) 441-7762; (2) at 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 Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.sec.gov.

 

 

 

 


 

ANNUAL REPORT

AUGUST 31, 2009

69




 


 

Additional Information (continued)

 


     Board Approvals


On September 12, 2008, the Board of each of BAF, MFL and BYM voted unanimously to change certain investment guidelines of its respective Trust. Under normal circumstances, each of BAF, MFL and BYM is required to invest at least 80% of its managed assets in municipal bonds either (i) insured under an insurance policy purchased by the Trusts or (ii) insured under an insurance policy obtained by the issuer of the municipal bond or any other party. Historically, each of BAF, MFL and BYM has had an additional non-fundamental investment policy limiting its purchases of insured municipal bonds to those bonds insured by insurance providers with claims-paying abilities rated AAA or Aaa at the time of investment.

Following the onset of the credit and liquidity crises currently troubling the financial markets, the applicable rating agencies lowered the claims-paying ability rating of most of the municipal bond insurance providers below the highest rating category. As a result, the Advisor recommended, and the Board of each of BAF, MFL and BYM approved, an amended policy with respect to the purchase of insured municipal bonds that such bonds must be insured by insurance providers or other entities with claims-paying abilities rated at least investment grade. This investment grade restriction is measured at the time of investment, and BAF, MFL and BYM will not be required to dispose of municipal bonds they hold in the event of subsequent downgrades. The new investment policy of each of BAF, MFL and BYM is, under normal conditions, to invest at least 80% of its assets in municipal bonds insured by insurers or other entities with claims-paying abilities rated at least investment grade at the time of investment. Due to recent downgrades, some of the insurers insuring a portion of the current holdings of BAF, MFL and BYM are already rated below the highest rating category.

In addition, on September 12, 2008, the Board of each of BAF, MFL and BIE (formerly BlackRock Florida Insured Municipal Income Trust, BlackRock MuniHoldings Florida Insured Investment Fund and BlackRock Florida Municipal Bond Trust, respectively) voted unanimously to change a non-fundamental investment policy of its respective Trust, and to rename each such Trust “BlackRock Insured Municipal Income Investment Trust,” “BlackRock MuniHoldings Insured Investment Fund” and “BlackRock Municipal Bond Investment Trust,” respectively. The previous policy required these Trusts, under normal circumstances, to invest at least 80% of their total assets in Florida municipal bonds. Due to the repeal of the Florida Intangible Personal Property Tax as of January 2007, the Board has approved an amended policy allowing BAF, MFL and BIE flexibility to invest in municipal obligations regardless of geographic location, as well as revising the policy with respect to the claims-paying ability rating of insurance providers adopted by BAF, MFL and BYM. Under current market conditions, the Advisor anticipates that it will gradually reposition the portfolio of BAF, MFL and BIE over time and that during such period BAF, MFL and BIE may continue to hold a substantial portion of their assets in Florida municipal bonds. At this time, it is uncertain how long the repositioning may take, and BAF, MFL and BIE will continue to be subject to risks associated with investing a significant portion of their assets in Florida municipal bonds until the repositioning is complete.

The changes to the non-fundamental investment policies of BAF, MFL, BYM and BIE described above do not alter the investment objectives of BAF, MFL, BYM and BIE. The Advisor and the Board believe the amended policies will allow the Advisor to better manage such Trusts’ portfolios in the best interests of such Trusts’ shareholders and meet such Trusts’ investment objectives.

Effective September 13, 2008, following approval by the Trusts’ Board and the applicable rating agencies, the Board amended the terms of the Trusts’ Governing Instruments in order to increase the amount of TOB transactions into which the Trusts can enter. The proceeds from these TOB transactions were used to redeem a portion of the Trusts’ Preferred Shares. Accordingly, the definition of Inverse Floaters was amended to incorporate the Trusts’ permissible ratio of floating rate instruments into inverse floating rate instruments. Additionally, conforming changes and certain formula modifications concerning inverse floaters were made to the definitions of Moody’s Discount Factor and S&P Discount Factor, as applicable, to integrate the Trusts’ investments in TOBs into applicable calculations.

 

 

 


70

ANNUAL REPORT

AUGUST 31, 2009




 


 

Additional Information (concluded)

 


     Section 19 Notices


These amounts and sources of distributions reported are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon each Trust’s investment experience during the year and may be subject to changes based on the tax regulations. The Trusts will send you a Form 1099-DIV each calendar year that will tell you how to report these distributions for federal income tax purposes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

Total Cumulative Distributions
for the Fiscal Year-to-Date

 

% Breakdown of the Total Cumulative Distributions
for the Fiscal Year-to-Date

 

 

 


 


 

 

 

Net
Investment
Income

 

Net
Realized
Capital
Gains

 

Return
of
Capital

 

Total Per
Common
Share

 

Net
Investment
Income

 

Net
Realized
Capital
Gains

 

Return
of
Capital

 

Total Per
Common
Share

 


BYM

 

$

0.754500

 

 

 

 

 

$

0.754500

 

 

100%

 

 

0%

 

 

0%

 

 

100%

 

BAF

 

$

0.718500

 

 

 

 

 

$

0.718500

 

 

100%

 

 

0%

 

 

0%

 

 

100%

 

BBK

 

$

0.907500

 

 

 

 

 

$

0.907500

 

 

100%

 

 

0%

 

 

0%

 

 

100%

 

BIE

 

$

0.840600

 

 

 

 

 

$

0.840600

 

 

100%

 

 

0%

 

 

0%

 

 

100%

 

BLE

 

$

0.837000

 

 

 

 

 

$

0.837000

 

 

100%

 

 

0%

 

 

0%

 

 

100%

 

MFL

 

$

0.705216

 

 

 

 

 

$

0.705216

 

 

100%

 

 

0%

 

 

0%

 

 

100%

 

MVF

 

$

0.538500

 

 

 

 

 

$

0.538500

 

 

100%

 

 

0%

 

 

0%

 

 

100%

 



 


     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.

 

 

 

 


 

ANNUAL REPORT

AUGUST 31, 2009

71



This report is transmitted to shareholders only. 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 the short-term dividend rates of the Preferred Shares, currently set at the maximum reset rate as a result of failed auctions, may affect the yield to Common Shareholders. Statements and other information herein are as dated and are subject to change.

 

 

(GO PAPERLESS LOGO)

(BLACKROCK LOGO)


 

#CEF-NTL-7-8/09



 

 

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 and principal accounting officer, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com.

 

 

Item 3 –

Audit Committee Financial Expert – The registrant’s board of directors or trustees, as applicable (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:

 

 

 

Kent Dixon

 

Frank J. Fabozzi

 

James T. Flynn

 

W. Carl Kester

 

Karen P. Robards

 

Robert S. Salomon, Jr. (retired effective December 31, 2008)

 

 

 

The registrant’s board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.

 

 

 

Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kester’s financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrant’s financial statements.

 

 

 

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 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.




 

 

Item 4 –

Principal Accountant Fees and Services


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Audit Fees

 

(b) Audit-Related Fees1

 

(c) Tax Fees2

 

(d) All Other Fees3

 

 


 


 


 


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


 


 


 


 


 


 


 


 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock MuniVest Fund, Inc.

 

$34,600

 

$33,700

 

$3,500

 

$3,500

 

$6,100

 

$6,100

 

$1,028

 

$1,049


 

 

1 The nature of the services include assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.

 

 

2 The nature of the services include tax compliance, tax advice and tax planning.

 

 

3 The nature of the services include a review of compliance procedures and attestation thereto.


 

 

 

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

 

 

 

          The registrant’s audit committee (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 registrant’s 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 operation 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 for all of the registrants the Committee oversees. 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 one or more of its members the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

 

 

 

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

 

 

(f) Not Applicable

 

 

 

(g) Affiliates’ Aggregate Non-Audit Fees:


 

 

 

 

 

 

 

Entity Name

 

Current Fiscal Year
End

 

Previous Fiscal Year
End


 


 


BlackRock MuniVest Fund, Inc.

 

$418,128

 

$415,649




 

 

 

(h) The registrant’s audit committee has considered and determined that the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any non-affiliated sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by the registrant’s investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant 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.

 

 

 

Regulation S-X Rule 2-01(c)(7)(ii) – $407,500, 0%

 

 

Item 5 –

Audit Committee of Listed Registrants – 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)):

 

 

 

Kent Dixon

 

Frank J. Fabozzi

 

James T. Flynn

 

W. Carl Kester

 

Karen P. Robards

 

Robert S. Salomon, Jr. (retired effective December 31, 2008)

 

 

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 securities to the Fund’s investment adviser (“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 – as of August 31, 2009.


 

 

 

 

(a)(1)

The registrant (or “Fund”) is managed by a team of investment professionals comprised of Phillip Soccio, CFA, Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock and Walter O’Connor, Managing Director 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. Soccio, Jaeckel and O’Connor have been members of the registrant’s portfolio management team since 2008, 2006 and 2006, respectively.


 

 

 




Portfolio Manager

 

Biography




Phillip Soccio

 

Director of BlackRock, Inc. since 2009; Vice President of BlackRock, Inc. from 2005 to 2008; Associate of BlackRock, Inc. from 2002 to 2004.




Theodore R. Jaeckel, Jr.

 

Managing Director at BlackRock, Inc. since 2006; Managing Director of MLIM from 2005 to 2006; Director of MLIM from 1997 to 2005.




Walter O’Connor

 

Managing Director of BlackRock, Inc. since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003.





 

 

 

 

(a)(2)

As of August 31, 2009:


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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

 

76

 

0

 

0

 

0

 

0

 

0

 

 

 

$18.0 Billion

 

$0

 

$0

 

$0

 

$0

 

$0

 

Theodore R. Jaeckel, Jr.

 

76

 

0

 

0

 

0

 

0

 

0

 

 

 

$18.0 Billion

 

$0

 

$0

 

$0

 

$0

 

$0

 

Phillip Soccio

 

8

 

0

 

0

 

0

 

0

 

0

 

 

 

$1.00 Billion

 

$0

 

$0

 

$0

 

$0

 

$0

 


 

 

 

 

(iv)

Potential Material Conflicts of Interest

 

 

 

 

BlackRock and its affiliates (collectively, herein “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, its affiliates and significant shareholders and any officer, director, stockholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or any of its affiliates or significant shareholders, or any officer, director, stockholder, 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’s (or its affiliates’ or significant shareholders’) officers, directors or employees are directors or officers, or companies as to which BlackRock 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. Each portfolio manager also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. In this connection, it should be noted that a portfolio manager may currently manage certain accounts that are subject to performance fees. In addition, a portfolio manager may assist in managing certain hedge funds and may be entitled to receive a portion of any incentive fees earned on such funds and a portion of such incentive fees may be voluntarily or involuntarily deferred. Additional portfolio managers may in the future manage other such accounts or funds and may be entitled to receive incentive fees.

 

 

 

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 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 has adopted a policy that is intended to ensure that investment opportunities are allocated fairly and equitably among client accounts over time. This policy also seeks to achieve 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.

 

 

 

(a)(3)

As of August 31, 2009:

 

 

 

 

Portfolio Manager Compensation Overview

 

 

 

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 such as its Long-Term Retention and Incentive Plan.

 

 

 

Base compensation. Generally, portfolio managers receive base compensation based on their seniority and/or their position with the firm. Senior portfolio managers who perform additional




 

 

 

 

management functions within the portfolio management group or within BlackRock may receive additional compensation for serving in these other capacities.

 

 

 

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 seniority, role within the portfolio management team, teamwork and contribution to the overall performance of these portfolios and BlackRock. In most cases, including for the portfolio managers of the Fund, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. BlackRock’s Chief Investment Officers determine the benchmarks against which the performance of funds and other accounts managed by each portfolio manager is compared and the period of time over which performance is evaluated. With respect to the portfolio managers, such benchmarks for the Fund include a combination of market-based indices (e.g. Barclays Capital Municipal Bond Index), certain customized indices and certain fund industry peer groups.

 

 

 

BlackRock’s Chief Investment Officers make a subjective determination with respect to the portfolio managers’ compensation based on the performance of the funds and other accounts managed by each portfolio manager relative to the various benchmarks noted above. Performance is measured on both a pre-tax and after-tax basis over various time periods including 1, 3, 5 and 10-year periods, as applicable.

 

 

 

Distribution of Discretionary Incentive Compensation

 

 

Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. The BlackRock, Inc. restricted stock units, if properly vested, will be settled in BlackRock, Inc. common stock. Typically, the cash bonus, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of annual bonuses in 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.

 

 

 

          Long-Term Retention and Incentive Plan (“LTIP”) — The LTIP is a long-term incentive plan that seeks to reward certain key employees. Beginning in 2006, awards are granted under the LTIP in the form of BlackRock, Inc. restricted stock units that, if properly vested and subject to the attainment of certain performance goals, will be settled in BlackRock, Inc. common stock. Messrs. O’Connor and Jaeckel have each received awards under the LTIP.

 

 

 

          Deferred Compensation Program — A portion of the compensation paid to eligible BlackRock employees may be voluntarily deferred into an account that tracks the performance of certain of the firm’s investment products. Each participant in the deferred compensation program is permitted to allocate his deferred amounts among the various investment options. Messrs. O’Connor and Jaeckel have each participated in the deferred compensation program.




 

 

 

 

Other compensation benefits. In addition to base compensation 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 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 6% of eligible pay contributed to the plan capped at $4,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation. The RSP offers a range of investment options, including registered investment companies managed by the firm. BlackRock contributions follow the investment direction set by participants for their own contributions or, absent employee investment direction, are invested into a balanced portfolio. The ESPP allows for investment in BlackRock 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 or a dollar value of $25,000. Each portfolio manager is eligible to participate in these plans.

 

 

 

 

(a)(4)

Beneficial Ownership of Securities – August 31, 2009.


 

 

 

Portfolio Manager

 

Dollar Range of Equity Securities
Beneficially Owned


 


Walter O’Connor

 

None

Theodore R. Jaeckel, Jr.

 

None

Phillip Soccio

 

None


 

 

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 – The registrant’s Nominating and Governance Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.

 

 

Item 11 –

Controls and Procedures

 

 

11(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 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.

 

 

11(b) –

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.




 

 

Item 12 –

Exhibits attached hereto

 

 

12(a)(1) –

Code of Ethics – See Item 2

 

 

12(a)(2) –

Certifications – Attached hereto

 

 

12(a)(3) –

Not Applicable

 

 

12(b) –

Certifications – Attached hereto



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 MuniVest Fund, Inc.

 

 

By:

/s/ Anne F. Ackerley

 


 

Anne F. Ackerley

 

Chief Executive Officer of

 

BlackRock MuniVest Fund, Inc.

Date: October 22, 2009

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/ Anne F. Ackerley

 


 

Anne F. Ackerley

 

Chief Executive Officer (principal executive officer) of

 

BlackRock MuniVest Fund, Inc.

Date: October 22, 2009

 

 

By:

/s/ Neal J. Andrews

 


 

Neal J. Andrews

 

Chief Financial Officer (principal financial officer) of

 

BlackRock MuniVest Fund, Inc.

Date: October 22, 2009