-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NP527lVGIIc8XZiwDUcU0lKsLGJOzBBHtHs5oO4LUwh04l4f4ukaSH16re7QbTHh D5klJUhL+zg/h71GODmJVQ== 0000930413-04-000082.txt : 20040108 0000930413-04-000082.hdr.sgml : 20040108 20040108103332 ACCESSION NUMBER: 0000930413-04-000082 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20031031 FILED AS OF DATE: 20040108 EFFECTIVENESS DATE: 20040108 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST CENTRAL INDEX KEY: 0001137391 IRS NUMBER: 510409109 STATE OF INCORPORATION: DE FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-10331 FILM NUMBER: 04514582 BUSINESS ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 302-797-2449 MAIL ADDRESS: STREET 1: 100 BELLEVUE PARKWAY STREET 2: MUTUAL FUND DEPARTMENT CITY: WILMINGTON STATE: DE ZIP: 19809 N-CSR 1 c30280_ncsr.txt 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: 811-10331 The BlackRock California Municipal Income Trust - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 100 Bellevue Parkway, Wilmington, DE 19809 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Robert S. Kapito, President The BlackRock California Municipal Income Trust 40 East 52nd Street, New York, NY 10022 - -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (302) 797-2449 Date of fiscal year end: 10/31 Date of reporting period: 10/31/03 ITEM 1. REPORTS TO STOCKHOLDERS. The Trust's annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows: FIXED INCOME LIQUIDITY EQUITIES ALTERNATIVES BLACKROCK SOLUTIONS BlackRock Closed-End Funds Annual Report October 31, 2003 BlackRock Investment Quality Municipal Trust (BKN) BlackRock Municipal Income Trust (BFK) BlackRock California Investment Quality Municipal Trust (RAA) BlackRock California Municipal Income Trust (BFZ) BlackRock Florida Investment Quality Municipal Trust (RFA) BlackRock Florida Municipal Income Trust (BBF) BlackRock New Jersey Investment Quality Municipal Trust (RNJ) BlackRock New Jersey Municipal Income Trust (BNJ) BlackRock New York Investment Quality Municipal Trust (RNY) BlackRock New York Municipal Income Trust (BNY) NOT FDIC INSURED [BLACKROCK LOGO] MAY LOSE VALUE NO BANK GUARANTEE TABLE OF CONTENTS Letter to Shareholders .................................................. 1 Trust Summaries ......................................................... 2 Portfolios of Investments ............................................... 12 Financial Statements Statements of Assets and Liabilities ................................. 32 Statements of Operations ............................................. 34 Statements of Changes in Net Assets .................................. 36 Financial Highlights .................................................... 40 Notes to Financial Statements ........................................... 50 Independent Auditors' Report ............................................ 55 Trustees Information .................................................... 56 Dividend Reinvestment Plans ............................................. 58 Additional Information .................................................. 59 - -------------------------------------------------------------------------------- PRIVACY PRINCIPLES OF THE TRUSTS The Trusts are committed to maintaining the privacy of shareholders and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information the Trusts collect, how we protect that information and why, in certain cases, we may share information with select other parties. Generally, the Trusts do not receive any non-public personal information relating to their shareholders, although certain non-public personal information of shareholders may become available to the Trusts. The Trusts do not disclose any non-public personal information about their shareholders or former shareholders to anyone, except as permitted by law or as is necessary in order to service shareholder accounts (for example, to a transfer agent or third party administrator). The Trusts restrict access to non-public personal information about their shareholders to BlackRock employees with a legitimate business need for the information. The Trusts maintain physical, electronic and procedural safeguards designed to protect the non-public personal information of their shareholders. - -------------------------------------------------------------------------------- LETTER TO SHAREHOLDERS October 31, 2003 Dear Shareholder: We are pleased to report that during the annual period, the Trusts continued to provide monthly income, as well as the opportunity to invest in various portfolios of municipal securities. This report contains the Trusts' audited financial statements and a listing of the portfolios' holdings. The portfolio management team continuously monitors the municipal bond market and adjusts the portfolios in order to gain exposure to various issuers, revenue sources and security types. This strategy enables the Trusts to move among different sectors, credits and coupons to capitalize on changing market conditions. The following table shows the Trusts' current yields, tax-equivalent yields, closing market prices per share and net asset values ("NAV") per share as of October 31, 2003.
TAX- CLOSING CURRENT EQUIVALENT MARKET TRUST (TICKER) YIELD(1) YIELD(1) PRICE NAV - --------------------------------------------------------------------------------------------------------- BlackRock Investment Quality 6.41% 9.86% $14.26 $15.28 - --------------------------------------------------------------------------------------------------------- BlackRock Municipal Income Trust (BFK) 7.11% 10.93% $13.70 $13.87 - --------------------------------------------------------------------------------------------------------- BlackRock California Investment Quality Municipal Trust, Inc. (RAA) 6.04% 9.29% $14.03 $14.56 - --------------------------------------------------------------------------------------------------------- BlackRock California Municipal Income Trust (BFZ) 6.91% 10.63% $13.21 $13.97 - --------------------------------------------------------------------------------------------------------- BlackRock Florida Investment Quality Municipal Trust, Inc. (RFA) 5.87% 9.03% $14.47 $15.39 - --------------------------------------------------------------------------------------------------------- BlackRock Florida Municipal Income Trust (BBF) 6.77% 10.42% $13.36 $14.68 - --------------------------------------------------------------------------------------------------------- BlackRock New Jersey Investment Quality Municipal Trust, Inc. (RNJ) 5.44% 8.38% $14.80 $14.90 - --------------------------------------------------------------------------------------------------------- BlackRock New Jersey Municipal Income Trust (BNJ) 6.42% 9.88% $14.04 $14.59 - --------------------------------------------------------------------------------------------------------- BlackRock New York Investment Quality Municipal Trust, Inc. (RNY) 6.19% 9.52% $14.18 $15.34 - --------------------------------------------------------------------------------------------------------- BlackRock New York Municipal Income Trust (BNY) 6.72% 10.34% $13.45 $14.76 - ---------------------------------------------------------------------------------------------------------
(1) Yields are based on closing market price. Tax-equivalent yield assumes the maximum Federal tax rate of 35%. BlackRock, Inc. ("BlackRock"), a world leader in asset management, has a proven commitment to the municipal bond market. As of September 30, 2003, BlackRock managed over $17 billion in municipal bonds, including six open-end and 37 closed-end municipal bond funds. BlackRock is recognized for its emphasis on risk management and proprietary analytics and for its reputation managing money for the world's largest institutional investors. BlackRock Advisors, Inc., which manages the Trusts, is a wholly owned subsidiary of BlackRock. On behalf of BlackRock, we thank you for your continued trust and assure you that we remain committed to excellence in managing your assets. Sincerely, /s/ Laurence D. Fink /s/ Ralph L. Schlosstein Laurence D. Fink Ralph L. Schlosstein Chief Executive Officer President BlackRock Advisors, Inc. BlackRock Advisors, Inc. 1 TRUST SUMMARIES OCTOBER 31, 2003 BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST (BKN) TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BKN - -------------------------------------------------------------------------------- Initial Offering Date: February 19, 1993 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/03: $14.26 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/03: $15.28 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/03 ($14.26):(1) 6.41% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.076189 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.914268 - -------------------------------------------------------------------------------- Leverage as of 10/31/03:(3) 36% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ---------------------------------------------------------------- 10/31/03 10/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- MARKET PRICE $14.26 $13.48 5.79% $14.84 $13.31 - -------------------------------------------------------------------------------- NAV $15.28 $15.19 0.59% $15.84 $14.73 - -------------------------------------------------------------------------------- The following charts show the Trust's asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- Industrial & Pollution Control 17% 12% - -------------------------------------------------------------------------------- Lease Revenue 13 9 - -------------------------------------------------------------------------------- City, County & State 12 11 - -------------------------------------------------------------------------------- Education 12 14 - -------------------------------------------------------------------------------- Hospital 11 10 - -------------------------------------------------------------------------------- Transportation 10 15 - -------------------------------------------------------------------------------- Power 7 7 - -------------------------------------------------------------------------------- Tobacco 6 6 - -------------------------------------------------------------------------------- Housing 4 5 - -------------------------------------------------------------------------------- Tax Revenue 4 5 - -------------------------------------------------------------------------------- Water & Sewer 1 -- - -------------------------------------------------------------------------------- Resource Recovery -- 1 - -------------------------------------------------------------------------------- Other 3 5 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 46% 55% - -------------------------------------------------------------------------------- AA/Aa 7 11 - -------------------------------------------------------------------------------- A 20 21 - -------------------------------------------------------------------------------- BBB/Baa 19 6 - -------------------------------------------------------------------------------- BB/Ba 3 2 - -------------------------------------------------------------------------------- Not Rated 5 5 - -------------------------------------------------------------------------------- _____________ * Using the higher of Standard & Poor's ("S&P's"), Moody's Investors Service ("Moody's") or Fitch Ratings ("Fitch's") rating. 2 TRUST SUMMARIES OCTOBER 31, 2003 BLACKROCK MUNICIPAL INCOME TRUST (BFK) TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BFK - -------------------------------------------------------------------------------- Initial Offering Date: July 27, 2001 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/03: $13.70 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/03: $13.87 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/03 ($13.70):(1) 7.11% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.081125 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.973500 - -------------------------------------------------------------------------------- Leverage as of 10/31/03:(3) 38% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------------- 10/31/03 10/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- MARKET PRICE $13.70 $13.46 1.78% $14.28 $12.71 - -------------------------------------------------------------------------------- NAV $13.87 $13.33 4.05% $14.42 $13.03 - -------------------------------------------------------------------------------- The following charts show the Trust's asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- Industrial & Pollution Control 22% 24% - -------------------------------------------------------------------------------- Hospital 22 20 - -------------------------------------------------------------------------------- Tobacco 10 15 - -------------------------------------------------------------------------------- Housing 10 7 - -------------------------------------------------------------------------------- Transportation 8 7 - -------------------------------------------------------------------------------- Lease Revenue 8 1 - -------------------------------------------------------------------------------- Education 7 9 - -------------------------------------------------------------------------------- City, County & State 5 7 - -------------------------------------------------------------------------------- Water & Sewer 1 3 - -------------------------------------------------------------------------------- Power 1 2 - -------------------------------------------------------------------------------- Tax Revenue 1 1 - -------------------------------------------------------------------------------- Other 5 4 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 15% 11% - -------------------------------------------------------------------------------- AA/Aa 4 12 - -------------------------------------------------------------------------------- A 27 50 - -------------------------------------------------------------------------------- BBB/Baa 44 18 - -------------------------------------------------------------------------------- BB/Ba -- 2 - -------------------------------------------------------------------------------- B 5 2 - -------------------------------------------------------------------------------- Not Rated 5 5 - -------------------------------------------------------------------------------- ____________ * Using the higher of S&P's, Moody's or Fitch's rating. 3 TRUST SUMMARIES OCTOBER 31, 2003 BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST (RAA) TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on American Stock Exchange: RAA - -------------------------------------------------------------------------------- Initial Offering Date: May 28, 1993 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/03: $14.03 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/03: $14.56 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/03 ($14.03)(1) 6.04% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.0706 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.8472 - -------------------------------------------------------------------------------- Leverage as of 10/31/03:(3) 34% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------------- 10/31/03 10/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- MARKET PRICE $14.03 $13.38 4.86% $14.60 $12.85 - -------------------------------------------------------------------------------- NAV $14.56 $14.81 (1.69)% $15.02 $14.22 - -------------------------------------------------------------------------------- The following charts show the Trust's asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- City, County & State 25% 15% - -------------------------------------------------------------------------------- Transportation 24 26 - -------------------------------------------------------------------------------- Lease Revenue 17 12 - -------------------------------------------------------------------------------- Education 11 24 - -------------------------------------------------------------------------------- Tobacco 8 9 - -------------------------------------------------------------------------------- Industrial & Pollution Control 7 2 - -------------------------------------------------------------------------------- Power 6 5 - -------------------------------------------------------------------------------- Water & Sewer 2 5 - -------------------------------------------------------------------------------- Housing -- 2 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 45% 53% - -------------------------------------------------------------------------------- AA/Aa 11 17 - -------------------------------------------------------------------------------- A 12 13 - -------------------------------------------------------------------------------- BBB/Baa 18 5 - -------------------------------------------------------------------------------- BB/Ba -- 3 - -------------------------------------------------------------------------------- B 5 -- - -------------------------------------------------------------------------------- Not Rated 9 9 - -------------------------------------------------------------------------------- ____________ * Using the higher of S&P's, Moody's or Fitch's rating. 4 TRUST SUMMARIES OCTOBER 31, 2003 BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST (BFZ) TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BFZ - -------------------------------------------------------------------------------- Initial Offering Date: July 27, 2001 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/03: $13.21 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/03: $13.97 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/03 ($13.21):(1) 6.91% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.076074 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.912888 - -------------------------------------------------------------------------------- Leverage as of 10/31/03:(3) 39% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------------ 10/31/03 10/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- MARKET PRICE $13.21 $13.09 0.92% $14.14 $12.53 - -------------------------------------------------------------------------------- NAV $13.97 $14.16 (1.34)% $14.93 $13.23 - -------------------------------------------------------------------------------- The following charts show the Trust's asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- Housing 16% 13% - -------------------------------------------------------------------------------- City, County & State 15 19 - -------------------------------------------------------------------------------- Lease Revenue 13 12 - -------------------------------------------------------------------------------- Transportation 11 8 - -------------------------------------------------------------------------------- Tobacco 10 13 - -------------------------------------------------------------------------------- Education 10 11 - -------------------------------------------------------------------------------- Hospital 9 9 - -------------------------------------------------------------------------------- Power 7 6 - -------------------------------------------------------------------------------- Industrial & Pollution Control 1 1 - -------------------------------------------------------------------------------- Tax Revenue 1 1 - -------------------------------------------------------------------------------- Water & Sewer -- 1 - -------------------------------------------------------------------------------- Other 7 6 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 30% 35% - -------------------------------------------------------------------------------- A 31 41 - -------------------------------------------------------------------------------- BBB/Baa 20 9 - -------------------------------------------------------------------------------- BB/Ba 1 1 - -------------------------------------------------------------------------------- Not Rated 18 14 - -------------------------------------------------------------------------------- ____________ * Using the higher of S&P's, Moody's or Fitch's rating. 5 TRUST SUMMARIES OCTOBER 31, 2003 BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST (RFA) TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on American Stock Exchange: RFA - -------------------------------------------------------------------------------- Initial Offering Date: May 28, 1993 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/03: $14.47 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/03: $15.39 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/03 ($14.47):(1) 5.87% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.070781 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.849372 - -------------------------------------------------------------------------------- Leverage as of 10/31/03:(3) 33% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------------ 10/31/03 10/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- MARKET PRICE $14.47 $14.50 (0.21)% $16.01 $14.05 - -------------------------------------------------------------------------------- NAV $15.39 $15.65 (1.66)% $15.92 $15.09 - -------------------------------------------------------------------------------- The following charts show the Trust's asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- Education 23% 21% - -------------------------------------------------------------------------------- Tax Revenue 21 15 - -------------------------------------------------------------------------------- Transportation 14 17 - -------------------------------------------------------------------------------- Power 14 13 - -------------------------------------------------------------------------------- Lease Revenue 9 15 - -------------------------------------------------------------------------------- City, County & State 9 9 - -------------------------------------------------------------------------------- Housing 5 2 - -------------------------------------------------------------------------------- Hospital 4 4 - -------------------------------------------------------------------------------- Water & Sewer 1 4 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 72% 71% - -------------------------------------------------------------------------------- AA/Aa 4 -- - -------------------------------------------------------------------------------- A 7 21 - -------------------------------------------------------------------------------- BBB/Baa 13 8 - -------------------------------------------------------------------------------- Not Rated 4 -- - -------------------------------------------------------------------------------- ____________ * Using the higher of S&P's, Moody's or Fitch's rating. 6 TRUST SUMMARIES OCTOBER 31, 2003 BLACKROCK FLORIDA MUNICIPAL INCOME TRUST (BBF) TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BBF - -------------------------------------------------------------------------------- Initial Offering Date: July 27, 2001 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/03: $13.36 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/03: $14.68 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/03 ($13.36):(1) 6.77% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.075375 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.904500 - -------------------------------------------------------------------------------- Leverage as of 10/31/03:(3) 37% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------------- 10/31/03 10/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- MARKET PRICE $13.36 $13.65 (2.12)% $15.00 $13.02 - -------------------------------------------------------------------------------- NAV $14.68 $14.57 0.75% $15.62 $14.02 - -------------------------------------------------------------------------------- The following charts show the Trust's asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- City, County & State 31% 24% - -------------------------------------------------------------------------------- Hospital 22 15 - -------------------------------------------------------------------------------- Water & Sewer 8 11 - -------------------------------------------------------------------------------- Power 8 8 - -------------------------------------------------------------------------------- Education 7 17 - -------------------------------------------------------------------------------- Housing 6 2 - -------------------------------------------------------------------------------- Tax Revenue 5 5 - -------------------------------------------------------------------------------- Lease Revenue 5 5 - -------------------------------------------------------------------------------- Tobacco 4 4 - -------------------------------------------------------------------------------- Transportation 3 5 - -------------------------------------------------------------------------------- Industrial & Pollution Control 1 2 - -------------------------------------------------------------------------------- Other -- 2 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 19% 34% - -------------------------------------------------------------------------------- AA/Aa 42 35 - -------------------------------------------------------------------------------- A 13 18 - -------------------------------------------------------------------------------- BBB/Baa 11 6 - -------------------------------------------------------------------------------- Not Rated 15 7 - -------------------------------------------------------------------------------- ____________ * Using the higher of S&P's, Moody's or Fitch's rating. 7 TRUST SUMMARIES OCTOBER 31, 2003 BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST (RNJ) TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on American Stock Exchange: RNJ - -------------------------------------------------------------------------------- Initial Offering Date: May 28, 1993 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/03: $14.80 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/03: $14.90 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/03 ($14.80):(1) 5.44% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.067148 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.805776 - -------------------------------------------------------------------------------- Leverage as of 10/31/03:(3) 33% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------------ 10/31/03 10/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- MARKET PRICE $14.80 $13.30 11.28% $15.15 $13.01 - -------------------------------------------------------------------------------- NAV $14.90 $14.64 1.78% $15.31 $14.61 - -------------------------------------------------------------------------------- The following charts show the Trust's asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- Transportation 32% 38% - -------------------------------------------------------------------------------- Hospital 15 15 - -------------------------------------------------------------------------------- Education 11 11 - -------------------------------------------------------------------------------- Power 8 7 - -------------------------------------------------------------------------------- City, County & State 5 5 - -------------------------------------------------------------------------------- Resource Recovery 5 5 - -------------------------------------------------------------------------------- Tax Revenue 5 10 - -------------------------------------------------------------------------------- Water & Sewer 5 5 - -------------------------------------------------------------------------------- Tobacco 4 -- - -------------------------------------------------------------------------------- Industrial & Pollution Control 4 -- - -------------------------------------------------------------------------------- Housing 1 4 - -------------------------------------------------------------------------------- Other 5 -- - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 64% 70% - -------------------------------------------------------------------------------- AA/Aa 10 5 - -------------------------------------------------------------------------------- A 10 15 - -------------------------------------------------------------------------------- BBB/Baa 7 2 - -------------------------------------------------------------------------------- B 4 3 - -------------------------------------------------------------------------------- Not Rated 5 5 - -------------------------------------------------------------------------------- ____________ * Using the higher of S&P's, Moody's or Fitch's rating. 8 TRUST SUMMARIES OCTOBER 31, 2003 BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST (BNJ) TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BNJ - -------------------------------------------------------------------------------- Initial Offering Date: July 27, 2001 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/03: $14.04 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/03: $14.59 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/03 ($14.04):(1) 6.42% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.075108 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.901296 - -------------------------------------------------------------------------------- Leverage as of 10/31/03:(3) 37% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------------- 10/31/03 10/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- MARKET PRICE $14.04 $13.64 2.93% $14.82 $13.18 - -------------------------------------------------------------------------------- NAV $14.59 $14.29 2.10% $15.37 $13.92 - -------------------------------------------------------------------------------- The following charts show the Trust's asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- Hospital 21% 21% - -------------------------------------------------------------------------------- Housing 16 12 - -------------------------------------------------------------------------------- Lease Revenue 15 18 - -------------------------------------------------------------------------------- Transportation 14 18 - -------------------------------------------------------------------------------- Tobacco 9 10 - -------------------------------------------------------------------------------- City, County & State 7 8 - -------------------------------------------------------------------------------- Industrial & Pollution Control 3 2 - -------------------------------------------------------------------------------- Education 3 1 - -------------------------------------------------------------------------------- Tax Revenue 2 -- - -------------------------------------------------------------------------------- Water & Sewer 1 1 - -------------------------------------------------------------------------------- Other 9 9 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 32% 32% - -------------------------------------------------------------------------------- AA/Aa 5 7 - -------------------------------------------------------------------------------- A 20 31 - -------------------------------------------------------------------------------- BBB/Baa 31 19 - -------------------------------------------------------------------------------- B 3 2 - -------------------------------------------------------------------------------- Not Rated 9 9 - -------------------------------------------------------------------------------- _____________ * Using the higher of S&P's, Moody's or Fitch's rating. 9 TRUST SUMMARIES OCTOBER 31, 2003 BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST (RNY) TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on American Stock Exchange: RNY - -------------------------------------------------------------------------------- Initial Offering Date: May 28, 1993 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/03: $14.18 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/03: $15.34 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/03 ($14.18):(1) 6.19% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.073125 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.877500 - -------------------------------------------------------------------------------- Leverage as of 10/31/03:(3) 33% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------------- 10/31/03 10/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- MARKET PRICE $14.18 $14.40 (1.53)% $15.15 $13.69 - -------------------------------------------------------------------------------- NAV $15.34 $15.47 (0.84)% $15.75 $14.96 - -------------------------------------------------------------------------------- The following charts show the Trust's asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- Education 33% 26% - -------------------------------------------------------------------------------- City, County & State 19 22 - -------------------------------------------------------------------------------- Lease Revenue 11 11 - -------------------------------------------------------------------------------- Industrial & Pollution Control 10 11 - -------------------------------------------------------------------------------- Tax Revenue 8 12 - -------------------------------------------------------------------------------- Water & Sewer 7 -- - -------------------------------------------------------------------------------- Power 4 4 - -------------------------------------------------------------------------------- Hospital 3 4 - -------------------------------------------------------------------------------- Housing 3 4 - -------------------------------------------------------------------------------- Tobacco 2 -- - -------------------------------------------------------------------------------- Transportation -- 3 - -------------------------------------------------------------------------------- Resource Recovery -- 3 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 37% 38% - -------------------------------------------------------------------------------- AA/Aa 26 22 - -------------------------------------------------------------------------------- A 25 33 - -------------------------------------------------------------------------------- BBB/Baa 5 7 - -------------------------------------------------------------------------------- BB/Ba 4 -- - -------------------------------------------------------------------------------- Caa 3 -- - -------------------------------------------------------------------------------- ______________ * Using the higher of S&P's, Moody's or Fitch's rating. 10 TRUST SUMMARIES OCTOBER 31, 2003 BLACKROCK NEW YORK MUNICIPAL INCOME TRUST (BNY) TRUST INFORMATION - -------------------------------------------------------------------------------- Symbol on New York Stock Exchange: BNY - -------------------------------------------------------------------------------- Initial Offering Date: July 27, 2001 - -------------------------------------------------------------------------------- Closing Market Price as of 10/31/03: $13.45 - -------------------------------------------------------------------------------- Net Asset Value as of 10/31/03: $14.76 - -------------------------------------------------------------------------------- Yield on Closing Market Price as of 10/31/03 ($13.45):(1) 6.72% - -------------------------------------------------------------------------------- Current Monthly Distribution per Common Share:(2) $0.075339 - -------------------------------------------------------------------------------- Current Annualized Distribution per Common Share:(2) $0.904068 - -------------------------------------------------------------------------------- Leverage as of 10/31/03:(3) 37% - -------------------------------------------------------------------------------- (1) Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. (2) The distribution is not constant and is subject to change. (3) As a percentage of managed assets. The table below summarizes the changes in the Trust's market price and NAV: ------------------------------------------------------------- 10/31/03 10/31/02 CHANGE HIGH LOW - -------------------------------------------------------------------------------- MARKET PRICE $13.45 $13.42 0.22% $14.55 $12.99 - -------------------------------------------------------------------------------- NAV $14.76 $14.47 2.00% $15.43 $13.99 - -------------------------------------------------------------------------------- The following charts show the Trust's asset composition and credit quality allocations of the Trust's long-term investments: SECTOR BREAKDOWN - -------------------------------------------------------------------------------- SECTOR OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- Lease Revenue 19% 13% - -------------------------------------------------------------------------------- Transportation 17 20 - -------------------------------------------------------------------------------- Tobacco 11 12 - -------------------------------------------------------------------------------- Industrial & Pollution Control 10 7 - -------------------------------------------------------------------------------- Education 9 14 - -------------------------------------------------------------------------------- Housing 8 9 - -------------------------------------------------------------------------------- City, County & State 6 5 - -------------------------------------------------------------------------------- Hospital 5 4 - -------------------------------------------------------------------------------- Water & Sewer 4 4 - -------------------------------------------------------------------------------- Tax Revenue 4 4 - -------------------------------------------------------------------------------- Power -- 1 - -------------------------------------------------------------------------------- Other 7 7 - -------------------------------------------------------------------------------- CREDIT BREAKDOWN* - -------------------------------------------------------------------------------- CREDIT RATING OCTOBER 31, 2003 OCTOBER 31, 2002 - -------------------------------------------------------------------------------- AAA/Aaa 23% 24% - -------------------------------------------------------------------------------- AA/Aa 23 26 - -------------------------------------------------------------------------------- A 25 27 - -------------------------------------------------------------------------------- BBB/Baa 19 13 - -------------------------------------------------------------------------------- B -- 3 - -------------------------------------------------------------------------------- CCC/Caa 3 -- - -------------------------------------------------------------------------------- Not Rated 7 7 - -------------------------------------------------------------------------------- _____________ * Using the higher of S&P's, Moody's or Fitch's rating. 11 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2003 BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST (BKN)
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM INVESTMENTS--151.4% ALABAMA--5.9% AAA $14,000 Univ. of Alabama Hosp., Ser. A, 5.875%, 9/01/31, MBIA ....................... 09/10 @ 101 $ 15,179,080 ------------ ALASKA--2.4% AAA 6,015 Alaska Hsg. Fin. Corp., Ser. A, 5.875%, 12/01/24, MBIA ...................... 12/05 @ 102 6,157,555 ------------ CALIFORNIA--20.9% A 5,770 California, GO, 5.625%, 5/01/18 ............................................. 05/10 @ 101 6,122,605 BBB 3,000 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., 5.75%, 1/15/40 ...... 01/10 @ 101 3,053,070 Golden St. Tobacco Sec. Corp., Ser. B, AAA 1,935 5.00%, 6/01/43, AMBAC ..................................................... 06/13 @ 100 1,883,684 AAA 965 5.00%, 6/01/43, FSA ....................................................... 06/13 @ 100 939,408 A- 14,200 5.50%, 6/01/43 ............................................................ 06/13 @ 100 13,437,460 A- 6,900 5.625%, 6/01/38 ........................................................... 06/13 @ 100 6,681,684 AAA 10,945 Los Altos Sch. Dist., GO, Zero Coupon, 8/01/24, MBIA ........................ 08/13 @ 53.632 3,405,318 AAA 15,460 Los Angeles Cnty., Asset Leasing Corp. Rev., 5.95%, 12/01/07, AMBAC ......... No Opt. Call 17,902,680 ------------ 53,425,909 ------------ COLORADO--2.2% AAA 3,100 Arapahoe Cnty. Cap. Impvt. Hwy. Trust Fund, Ser. E, Zero Coupon, 8/31/04 .... ETM 3,070,147 AAA 2,250(3) E-470 Pub. Hwy. Auth., Ser. B, 6.90%, 8/31/05 ............................... N/A 2,545,582 ------------ 5,615,729 ------------ CONNECTICUT--1.2% BBB- 3,000(4) Mashantucket Western Pequot Tribe, Ser. A, 5.50%, 9/01/28 ................... 09/09 @ 101 2,948,130 ------------ DELAWARE--3.0% NR 7,000(4) Charter Mac Equity Issuer Trust, Ser. B, 7.60%, 11/30/10 .................... 11/10 @ 100 7,734,650 ------------ DISTRICT OF COLUMBIA--2.4% District of Columbia, AAA 1,705 GO, Ser. E, 6.00%, 6/01/09, CAPMAC ........................................ ETM 1,744,249 BBB 4,960 Tobacco Settlement Fin. Corp., 6.50%, 5/15/33 ............................... No. Opt. Call 4,367,528 ------------ 6,111,777 ------------ FLORIDA--2.8% AAA 940 Florida Hsg. Fin. Agcy., Sngl. Fam. Mtge. Rev., Ser. A, 6.55%, 7/01/14 ...... 01/05 @ 102 974,705 NR 3,700 Hillsborough Cnty. Ind. Dev. Auth., National Gypsum, Ser. A, 7.125%, 4/01/30 10/10 @ 101 3,792,648 BB- 4,000 Santa Rosa Bay Bridge Auth., 6.25%, 7/01/28 ................................. 07/06 @ 102 2,423,280 ------------ 7,190,633 ------------ GEORGIA--1.7% AAA 4,260 Atlanta Wtr. & Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA ....................... 05/12 @ 100 4,272,184 ------------ HAWAII--1.1% AAA 2,500 Hawaii Dept. of Budget & Fin., Hawaiian Elec. Co. Inc., Ser. D, 6.15%, 1/01/20, AMBAC ............................................. 01/09 @ 101 2,760,350 ------------ ILLINOIS--11.8% AAA 10,000 Chicago Brd. of Ed., Sch. Reform, 5.75%, 12/01/27, AMBAC .................... 12/07 @ 102 10,812,900 AAA 5,000 Chicago Pub. Bldg., Ser. A, 7.00%, 1/01/20, MBIA ............................ ETM 6,478,500 Illinois Edl. Fac. Auth., FGIC, AAA 4,000 5.45%, 7/01/14 ............................................................ 12/03 @ 102 4,098,200 AAA 5,000 5.70%, 7/01/13 ............................................................ 12/03 @ 102 5,125,100 AAA 3,540 O'Hare Intl. Arpt., Ser. C-2, 5.25%, 1/01/30, FSA ........................... 01/14 @ 100 3,574,196 ------------ 30,088,896 ------------ INDIANA--3.1% BBB 7,420 Indianapolis Arpt. Auth., Fed. Express Corp. Proj., 7.10%, 1/15/17 .......... 07/04 @ 102 7,795,378 ------------ KENTUCKY--2.2% AAA 15,715 Kentucky Econ. Dev. Fin. Sys., Norton Hlth. Care Inc., Ser. B, Zero Coupon, 10/01/23, MBIA ............................................................ No Opt. Call 5,506,379 ------------
See Notes to Financial Statements. 12
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LOUISIANA--9.1% AAA $14,400(3) Louisiana Pub. Fac. Auth., Our Lady of the Lake Regl. Med. Ctr., 5.90%, 12/01/03, FSA ...................................................... N/A $ 14,739,552 AAA 4,640 New Orleans, GO, 5.875%, 11/01/29, FSA ...................................... 11/09 @ 100 5,067,623 BBB 4,460 Tobacco Settlement Fin. Corp., Ser. B, 5.875%, 5/15/39 ...................... 05/11 @ 101 3,558,589 ------------ 23,365,764 ------------ MARYLAND--2.6% Aa2 2,190 Maryland Dept. Hsg. & Cmnty. Dev. Admin., Sngl. Fam. Prog., Ser. 2, 6.55%, 4/01/26 ............................................................ 04/05 @ 102 2,259,007 NR 4,000(4) MuniMae TE Bond Subsidiary, LLC, Ser. B, 7.75%, 6/30/50 ..................... 11/10 @ 100 4,404,400 ------------ 6,663,407 ------------ MICHIGAN--1.6% BB+ 4,000(5) Midland Cnty. Econ. Dev., Ser. A, 6.875%, 7/23/09 ........................... 07/07 @ 101 4,087,880 ------------ MISSOURI--1.7% Lake of the Ozarks Cmnty. Brdg. Corp., Brdg. Sys., BBB- 2,000 5.25%, 12/01/14 ........................................................... 12/08 @ 102 1,976,720 BBB- 2,500 5.25%, 12/01/26 ........................................................... 12/08 @ 102 2,308,000 ------------ 4,284,720 ------------ NEW JERSEY--4.1% AAA 2,000 Delaware River Port. Auth. of PA & NJ, Port Dist. Proj., Ser. B, 5.70%, 1/01/22, FSA .............................................................. 01/10 @ 100 2,183,560 AA 7,000(3) New Jersey Transp. Trust Fund Auth., Transp. Sys., Ser. A, 6.00%, 6/15/10 ... N/A 8,287,440 ------------ 10,471,000 ------------ NEW MEXICO--0.8% AAA 1,945 Farmington PCR, So. California Edison Co., Ser. A, 5.875%, 6/01/23, MBIA .... 12/03 @ 102 1,990,805 ------------ NEW YORK--14.5% New York City, GO, A+ 4,140 Ser. A, 6.00%, 8/01/05 .................................................... No Opt. Call 4,448,802 A+ 7,000 Ser. E, 6.50%, 2/15/06 .................................................... No Opt. Call 7,704,340 New York City Ind. Dev. Agcy., Term. One Grp. Assoc. Proj., A3 4,000 6.00%, 1/01/08 ............................................................ 01/04 @ 102 4,098,720 A3 1,000 6.00%, 1/01/15 ............................................................ 01/04 @ 102 1,024,630 New York City Transl. Fin. Auth., Ser. B, AA+ 8,145(3) 6.00%, 5/15/10 ............................................................ N/A 9,720,324 AA+ 1,855 6.00%, 11/15/21 ........................................................... 05/10 @ 101 2,097,690 New York Dorm. Auth., AAA 3,000(3) St. Univ. Edl. Fac., Ser. B, 6.10%, 5/15/04 ............................... N/A 3,140,340 AAA 1,865 Univ. of Rochester, Ser. A, Zero Coupon, 7/01/21, MBIA .................... 07/10 @ 101 1,373,722 AAA 2,030 Univ. of Rochester, Ser. A, Zero Coupon, 7/01/23, MBIA .................... 07/10 @ 101 1,486,528 A 1,955 New York Hsg. Fin. Agcy., Hlth. Fac. of New York City, Ser. A, 6.375%, 11/01/04 .................................................................. No Opt. Call 2,055,155 ------------ 37,150,251 ------------ NORTH CAROLINA--2.3% AAA 5,000 No. Carolina Eastn. Mun. Pwr. Agcy., Sys. Rev., Ser. B, 7.00%, 1/01/08, CAPMAC .................................................................... No Opt. Call 5,891,500 ------------ OHIO--3.7% Cuyahoga Cnty., A1 3,485 Cleveland Clinic Hlth. Sys., 6.00%, 1/01/20 ............................... 07/13 @ 100 3,759,757 A1 5,000 Cleveland Clinic Hlth. Sys., 6.00%, 1/01/21 ............................... 07/13 @ 100 5,378,300 AAA 375 Port Dev. Proj., 6.00%, 3/01/07 ........................................... ETM 408,870 ------------ 9,546,927 ------------ OREGON--2.2% BB+ 5,600 Klamath Falls Elec., Klamath Cogen, 5.50%, 1/01/07 .......................... No Opt. Call 5,675,488 ------------ PENNSYLVANIA--5.1% McKeesport Area Sch. Dist., FGIC, AAA 870 Zero Coupon, 10/01/31 ..................................................... ETM 217,500 AAA 2,435 Zero Coupon, 10/01/31 ..................................................... No Opt. Call 542,956 Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A, A3 2,000 6.25%, 11/01/31 ........................................................... 05/11 @ 101 1,953,600 A3 3,100 6.375%, 11/01/41 .......................................................... 05/11 @ 101 3,046,432 A 2,750 Pennsylvania Higher Edl. Fac. Auth., Univ. of Pennsylvania Hlth. Svcs., Ser. A, 5.875%, 1/01/15 ................................................... 01/06 @ 101 2,842,483 AAA 4,000 Pennsylvania Intergovtl. Coop. Auth., Spec. Tax, Philadelphia Fdg. Prog., 5.50%, 6/15/20, FGIC ...................................................... 06/06 @ 100 4,305,600 ------------ 12,908,571 ------------ RHODE ISLAND--0.9% AAA 2,000 Rhode Island Hlth. & Edl. Bldg. Corp., Hosp. Fin., 5.50%, 5/15/16, MBIA ..... 05/07 @ 102 2,175,400 ------------
See Notes to Financial Statements. 13
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SOUTH CAROLINA--3.2% So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev., Palmetto Hlth. Alliance, BBB $ 2,185 Ser. A, 6.25%, 8/01/31 .................................................... 08/13 @ 100 $ 2,198,307 BBB 4,000 Ser. C, 6.875%, 8/01/27 ................................................... 08/13 @ 100 4,266,120 BBB 2,090 Tobacco Settlement Mgmt. Auth., Ser. B, 6.375%, 5/15/30 ..................... No Opt. Call 1,807,599 ------------ 8,272,026 ------------ TENNESSEE--5.2% Baa1 7,800 Maury Cnty. Ind. Dev. Brd., PCR, Saturn Corp. Proj., 6.50%, 9/01/24 ......... 09/04 @ 102 8,053,110 AAA 4,865 Memphis Shelby Cnty. Arpt. Auth., Ser. D, 6.00%, 3/01/24, AMBAC ............. 03/10 @ 101 5,276,190 ------------ 13,329,300 ------------ TEXAS--13.8% BBB 6,000 Brazos River Auth. PCR, TXU Energy Co. LLC Proj., Ser. C, 6.75%, 10/01/38 ... 10/13 @ 101 6,180,840 Dallas Cnty. Util. & Cap. Reclam. Dist., Ser. A, AMBAC, AAA 6,085 Zero Coupon, 2/15/19 ...................................................... 02/05 @ 44.538 2,563,245 AAA 3,800 Zero Coupon, 2/15/20 ...................................................... 02/05 @ 41.799 1,500,582 AAA 6,000 Grapevine, GO, 5.875%, 8/15/24, FGIC ........................................ 08/10 @ 100 6,605,580 AAA 5,000 Harris Cnty. Houston Sports Auth., Ser. A, Zero Coupon, 11/15/38, MBIA ...... 11/30 @ 61.166 701,550 BBB 7,000 Port Corpus Christi Auth., Celanese Proj., Ser. B, 6.70%, 11/01/30 .......... 05/12 @ 101 7,313,740 Baa1 6,320 Texas Affordable Hsg. Corp., Mult. Fam. Hsg. Rev., 5.80%, 11/01/26 .......... 11/11 @ 102 6,319,937 AAA 15,000 Texas Tpke. Auth., Central Sys. Rev., Zero Coupon, 8/15/31, AMBAC ........... 08/12 @ 32.807 2,941,650 Aa1 1,000 Texas Wtr. Fin. Asst., GO, 5.75%, 8/01/22 ................................... 08/10 @ 100 1,100,540 ------------ 35,227,664 ------------ UTAH--1.6% Intermountain Pwr. Agcy., Sply., AAA 2,810 5.00%, 7/01/13, AMBAC ..................................................... ETM 2,824,303 A+ 1,145 Ser. B, 5.00%, 7/01/16 .................................................... ETM 1,147,622 ------------ 3,971,925 ------------ VIRGINIA--0.1% BBB 235 Peninsula Ports Auth. Coal Term., Dominion Term. Assocs., 6.00%, 4/01/33 .... 04/13 @ 101 237,848 ------------ WASHINGTON--7.9% Washington, GO, AA+ 4,000 Ser. A, 5.375%, 7/01/21 ................................................... 07/06 @ 100 4,191,200 AA+ 1,000 Ser. B, 6.00%, 1/01/25 .................................................... 01/10 @ 100 1,109,160 AAA 13,395 Washington Pub. Pwr. Sply., Nuclear Proj. No 1, 5.75%, 7/01/11, MBIA ........ 07/06 @ 102 14,882,247 ------------ 20,182,607 ------------ WISCONSIN--6.3% BBB 14,800 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 ............................ 06/12 @ 100 12,831,304 A- 3,220 Wisconsin Hlth. & Edl. Facs. Auth., Aurora Hlth. Care, 6.40%, 4/15/33 ....... 04/13 @ 100 3,303,656 ------------ 16,134,960 ------------ WYOMING--4.0% A3 10,000 Sweetwater Cnty., PCR, Idaho Pwr. Co. Proj., Ser. A, 6.05%, 7/15/26 ......... 07/06 @ 102 10,244,600 ------------ TOTAL LONG-TERM INVESTMENTS (COST $364,537,075) ............................. 386,599,293 ------------ SHORT-TERM INVESTMENTS--3.2% GEORGIA--0.8% A1+ 2,100(6) Mun. Elec. Auth., Proj. One, Ser. C, 1.10%, 11/05/03, MBIA, FRWD ............ N/A 2,100,000 ------------
See Notes to Financial Statements. 14
SHARES (000) DESCRIPTION VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MONEY MARKET FUND--2.4% 6,150 AIM Tax Free Investment Co. Cash Reserve Portfolio ................................. $ 6,150,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $8,250,000) ..................................... 8,250,000 ------------ TOTAL INVESTMENTS--154.6% (COST $372,787,075) ...................................... 394,849,293 Other assets in excess of liabilities--2.8% ........................................ 7,056,047 Preferred shares at redemption value, including dividends payable--(57.4)% ......... (146,590,649) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ................................. $255,314,691 ============
________________________ (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2003, the Trust held 5.9% of its net assets, with a current market value of $15,087,180, in securities restricted as to resale. (5) See Note 6 of Notes to Financial Statements. (6) For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Interest rate shown is as of October 31, 2003. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporpation CAPMAC -- Capital Markets Assurance Company ETM -- Escrowed to Maturity FGIC -- Financial Guaranty Insurance Company FRWD -- Floating Rate Weekly Demand FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue - -------------------------------------------------------------------------------- See Notes to Financial Statements. 15 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2003 BLACKROCK MUNICIPAL INCOME TRUST (BFK)
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM INVESTMENTS--154.0% ALABAMA--6.3% Baa2 $ 7,000 Courtland Ind. Dev. Brd., PCR, Champion Intl. Corp. Proj., 6.15%, 6/01/19 ... 06/05 @ 102 $ 7,251,650 A2 15,000 Huntsville Hlth. Care Auth., GO, Ser. B, 5.75%, 6/01/32, .................... 06/12 @ 101 15,327,750 BBB 15,000 Phenix Cnty. Indl. Dev. Brd., Env. Impvt. Rev., Ser. A, 6.35%, 5/15/35 ...... 05/12 @ 100 15,258,450 ------------ 37,837,850 ------------ ARIZONA--1.2% A3 7,000 Scottsdale Ind. Dev. Auth., Scottsdale Htlh. Care, 5.80%, 12/01/31 .......... 12/11 @ 101 7,185,990 ------------ CALIFORNIA--24.8% A 6,000 California, GO, 5.50%, 11/01/33 ............................................. 11/13 @ 100 6,073,440 A 19,000 California Infrastructure & Econ. Dev., J. David Gladstone Inst. Proj., 5.25%, 10/01/34 ........................................................... 10/11 @ 101 18,746,160 A- 5,000 California Statewide Cmnty. Dev. Auth., Mem. Hlth. Svcs., Ser. A, 5.50%, 10/01/33 .................................................................. 04/13 @ 100 5,053,150 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., BBB 54,635 Zero Coupon, 1/15/32 ...................................................... 01/10 @ 27.37 9,646,902 BBB 20,535 Zero Coupon, 1/15/34 ...................................................... 01/10 @ 24.228 3,204,898 BBB 75,000 Zero Coupon, 1/15/38 ...................................................... 01/10 @ 19.014 9,141,000 Golden St. Tobacco Sec. Corp., Ser. B AAA 4,540 5.00%, 6/01/43, AMBAC ..................................................... 06/13 @ 100 4,419,599 AAA 2,270 5.00%, 6/01/43, FSA ....................................................... 06/13 @ 100 2,209,800 A- 35,500 5.50%, 6/01/43 ............................................................ 06/13 @ 100 33,593,650 A- 16,500 5.625%, 6/01/38 ........................................................... 06/13 @ 100 15,977,940 BBB 10,000 Tobacco Settlement Rev., Ser. A-1, 6.75%, 6/01/39 ......................... 06/13 @ 100 9,059,600 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., B- 20,055 Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24 .............................. 12/12 @ 102 19,245,580 AAA 13,320 Facs. Laxfuel Corp., L.A. Intl., 5.50%, 1/01/32, AMBAC .................... 01/12 @ 100 13,538,581 ------------ 149,910,300 ------------ COLORADO--0.6% BBB 3,500 Denver Hlth. & Hosp. Auth., Hlth. Care Rev., Ser. A, 6.00%, 12/01/31 ........ 12/11 @ 100 3,407,565 ------------ CONNECTICUT--4.7% A3 6,350 Connecticut Dev. Auth., Connecticut Lt. & Pwr., PCR, Ser. A, 5.85%, 9/01/28 . 10/08 @ 102 6,657,213 BBB- 20,940 Mohegan Tribe Indians, Pub. Impvt. Priority Dist., 6.25%, 1/01/31 ........... 01/11 @ 101 21,850,890 ------------ 28,508,103 ------------ DELAWARE--6.0% Charter Mac Equity Issuer Trust, NR 1,0003 Ser. A, 6.625%, 6/30/49 ................................................... 06/09 @ 100 1,067,930 NR 11,0003 Ser. A-2, 6.30%, 6/30/49 .................................................. 06/09 @ 100 11,535,810 NR 16,0003 Ser. A-3, 6.80%, 10/01/52 ................................................. 10/11 @ 100 16,704,800 NR 6,5003 Ser. B-1, 6.80%, 11/30/50 ................................................. 11/10 @ 100 6,788,080 ------------ 36,096,620 ------------ DISTRICT OF COLUMBIA--4.4% Dist. of Columbia, Georgetown Univ., Ser. A, MBIA AAA 15,600 Zero Coupon, 4/01/36 ...................................................... 04/11 @ 22.875 2,272,920 AAA 51,185 Zero Coupon, 4/01/37 ...................................................... 04/11 @ 21.546 7,007,738 BBB 19,535 Dist. of Columbia Tobacco Settlement Fin. Corp., 6.75%, 5/15/40 ............. 05/11 @ 101 17,468,393 ------------ 26,749,051 ------------ FLORIDA--4.0% Baa2 4,600 Escambia Cnty., PCR, Champion Intl. Corp. Proj., 6.40%, 9/01/30 ............. 09/06 @ 102 4,729,950 A 9,670 Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31 .................................................................. 11/11 @ 101 10,082,619 BBB- 9,000 Martin Cnty. Indl. Dev. Auth., Indiantown Cogeneration Proj., Ser. A, 7.875%, 12/15/25 .................................................................. 12/04 @ 102 9,306,090 ------------ 24,118,659 ------------
See Notes to Financial Statements. 16
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ GEORGIA--2.3% AAA $ 9,905 Atlanta Wtr. & Wstwtr., Ser. A, 5.00%, 11/01/39, MBIA ....................... 05/12 @ 100 $ 9,933,328 BBB 4,000 Richmond Cnty. Dev. Auth., Env. Impvt. Rev., Intl. Paper Co. Proj., Ser. A, 6.00%, 2/01/25 ............................................................ 02/12 @ 101 4,077,720 ------------ 14,011,048 ------------ IDAHO--2.9% AAA 16,970 Univ. of Idaho, Student Fee Hsg. Impvt. Proj., 5.40%, 4/01/41, FGIC ......... 04/11 @ 100 17,512,191 ------------ ILLINOIS--16.5% Bolingbrook, Ser. B, FGIC, AAA 14,085 Zero Coupon, 1/01/34 ...................................................... No Opt. Call 2,661,501 AAA 7,120 Zero Coupon, 1/01/33 ...................................................... No Opt. Call 1,426,065 Illinois Dev. Fin. Auth., A 7,095 Hosp. Rev., Adventist Hlth. Sys. Sunbelt Oblig., 5.65%, 11/15/24 .......... 11/09 @ 101 7,122,600 A2 25,000 PCR, Ser. C, 5.95%, 8/15/26 ............................................... 12/06 @ 101 25,460,500 Illinois Edl. Facs. Auth., Baa2 10,000 Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/30 . 05/12 @ 101 10,106,800 Baa2 7,000 Student Hsg. Rev., Edl. Advancement Fund Univ. Ctr. Proj., 6.25%, 5/01/34 . 05/07 @ 100 7,021,630 Aa1 20,000 Univ. of Chicago, Ser. A, 5.25%, 7/01/41 .................................. 07/11 @ 101 20,321,400 Illinois Hlth. Facs. Auth., Elmhurst Mem. Hlth. Care, A2 5,000 5.50%, 1/01/22 ............................................................ 01/13 @ 100 4,990,650 A2 6,000 5.625%, 1/01/28 ........................................................... 01/13 @ 100 6,007,920 AAA 40,000 Met. Pier & Exposition Auth., Dedicated St. Tax Rev., McCormick Place Expansion Proj., Ser. A, Zero Coupon, 12/15/34, MBIA ...................... No Opt. Call 7,060,000 AAA 7,645 O'Hare Intl. Arpt., Ser. C-2, 5.25%, 1/01/30, FSA ........................... 01/14 @ 100 7,718,851 ------------ 99,897,917 ------------ INDIANA--5.7% A+ 9,000 Indiana Hlth. Fac. Fin. Auth., Methodist Hosp. Inc., 5.50%, 9/15/31 ......... 09/11 @ 100 8,926,020 Petersburg, PCR, Pwr. & Lt. Conv., Baa2 10,000 5.90%, 12/01/24 ........................................................... 08/11 @ 102 9,739,000 Baa2 16,000 5.95%, 12/01/29 ........................................................... 08/11 @ 102 15,546,080 ------------ 34,211,100 ------------ KENTUCKY--1.5% AAA 9,060 Kentucky Hsg. Corp., Hsg. Rev., Ser. F, 5.45%, 1/01/32 ...................... 07/11 @ 100 9,155,311 ------------ LOUISIANA--4.7% A 21,425 Louisiana Local Gov't. Environ. Facs. & Cmnty. Dev. Auth., Cap. Projs. & Equip. Acquisition, 6.55%, 9/01/25, ACA ....................................................... No Opt. Call 23,710,833 Baa1 4,605 Louisiana Local Gov. Env., Oakleigh Apts. Proj., Ser. A, 6.375%, 6/01/38 .... 06/13 @ 102 4,528,972 ------------ 28,239,805 ------------ MARYLAND--1.4% NR 8,000(3) MuniMae TE Bond Subsidiary, LLC, Ser. A, 6.875%, 6/30/49 .................... 06/09 @ 100 8,628,000 ------------ MASSACHUSETTS--2.6% AAA 15,925 Massachusetts Tpke. Auth., Met. Hwy. Sys. Rev., Ser. A, 5.00%, 1/01/39, AMBAC ............................................................ 01/09 @ 101 15,851,745 ------------ MICHIGAN--2.9% AA 17,210 Kent Hosp. Fin. Auth., Spectrum Hlth., Ser. A, 5.50%, 1/15/31 ............... 07/11 @ 101 17,547,144 ------------ MISSISSIPPI--3.1% A2 18,680 Gulfport Hosp. Fac., Mem. Hosp. Gulfport Proj., Ser. A, 5.75%, 7/01/31 ...... 07/11 @ 100 18,885,480 ------------ NEW HAMPSHIRE--0.6% A+ 3,500 New Hampshire Hlth. & Edl. Facs. Auth., Exeter Hosp. Proj., 5.75%, 10/01/31 . 10/11 @ 101 3,562,545 ------------ NEW JERSEY--8.5% New Jersey Econ. Dev. Auth., B 31,410 Continental Airlines Inc. Proj., 7.00%, 11/15/30 .......................... 11/10 @ 101 28,713,137 Baa3 8,000 Kapkowski Road Landfill Proj., 6.50%, 4/01/28 ............................. No Opt. Call 9,000,480 BBB 15,000 New Jersey Tobacco Settlement Fin. Corp., 6.75%, 6/01/39 .................... 06/13 @ 100 13,675,200 ------------ 51,388,817 ------------ OHIO--2.4% BBB 14,500 Ohio Air Quality Dev. Auth., PCR, Cleveland Elec. Illuminating Co. Proj., Ser. B, 6.00%, 8/01/20 .................................................... 08/07 @ 102 14,715,180 ------------
See Notes to Financial Statements. 17
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PENNSYLVANIA--5.3% BBB $ 4,425 Lehigh Cnty. Gen. Purp. Auth., St. Lukes Bethlehem Hosp., 5.375%, 8/15/33 ... 08/13 @ 100 $ 4,208,529 A3 6,500 Pennsylvania Econ. Dev. Fin. Auth., Amtrak Proj., Ser. A, 6.375%, 11/01/41 .. 05/11 @ 101 6,387,680 Pennsylvania Higher Edl. Facs. Auth., BBB+ 4,000 La Salle Univ., 5.50%, 5/01/34 ............................................ 05/13 @ 100 4,003,760 A 17,250 Univ. of Pennsylvania Hlth. Svcs., Ser. A, 5.75%, 1/01/22 ................. 01/06 @ 101 17,543,077 ------------ 32,143,046 ------------ RHODE ISLAND--1.4% BBB 10,000 Tobacco Settlement Fin. Corp., Ser. A, 6.25%, 6/01/42 ....................... 06/12 @ 100 8,385,100 ------------ SOUTH CAROLINA--5.8% Lexington Cnty. Hlth. Svcs. Dist., Hosp. Rev., A 5,000 5.50%, 11/01/32 ........................................................... 11/13 @ 100 5,048,800 A 10,000 5.75%, 11/01/28 ........................................................... 11/13 @ 100 10,226,900 So. Carolina Jobs Econ. Dev. Auth., Hosp. Facs. Rev., A- 5,000 Bon Secours Hlth. Sys. Inc., Ser. A, 5.625%, 11/15/30 ..................... 11/12 @ 100 5,049,150 BBB 5,075 Palmetto Hlth. Alliance, Ser. A, 6.25%, 8/01/31 ........................... 08/13 @ 100 5,105,907 BBB 9,000 Palmetto Hlth. Alliance, 6.875%, 8/01/27 .................................. 08/13 @ 100 9,598,770 ------------ 35,029,527 ------------ SOUTH DAKOTA--2.8% BBB 19,000 Edl. Enhancement Fdg. Corp., Tobacco Settlement, Ser. B, 6.50%, 6/01/32 ..... 06/12 @ 101 16,750,590 ------------ TENNESSEE--1.4% AAA 20,825 Knox Cnty. Hlth. Edl. & Hsg. Facs. Brd., Hosp. Facs. Rev., Ser. A, Zero Coupon, 1/01/20, FSA ................................................. 01/13 @ 67.474 8,647,165 ------------ TEXAS--16.8% Brazos River Auth., PCR, BBB 8,655 TXU Elec. Co. Proj., Ser. C, 5.75%, 5/01/36 ............................... No Opt. Call 8,964,157 BBB 1,320 TXU Energy Co. LLC Proj., Ser. C, 6.75%, 10/01/38 ......................... 10/13 @ 101 1,359,785 Harris Cnty. Houston Sports Auth., MBIA, AAA 12,580 Ser. A, Zero Coupon, 11/15/38 ............................................. 11/30 @ 61.166 1,765,100 AAA 5,000 Ser. H, Zero Coupon, 11/15/35 ............................................. 11/31 @ 78.178 822,850 BBB 20,000 Port Corpus Christi Auth., Celanese Proj., Ser. B, 6.70%, 11/01/30 .......... 05/12 @ 101 20,896,400 BBB 4,450 Sabine River Auth., PCR, TXU Elec. Co. Proj., Ser. B, 5.75%, 5/01/30 ........ No Opt. Call 4,608,954 Texas Affordable Hsg. Corp., Mult. Fam. Hsg. Rev., Baa1 6,010 5.80%, 11/01/26 ........................................................... 11/11 @ 102 6,009,940 BBB- 4,435 Amer. Oppty. Hsg. Portfolio, Ser. B, 8.00%, 3/01/32 ....................... 09/12 @ 102 4,211,565 Baa1 18,605 Arborstone/Baybrook Oaks, Ser. A, 5.85%, 11/01/31 ......................... 11/11 @ 102 18,674,582 BBB- 6,545 So. Texas Pptys. Corp., Ser. B, 8.00%, 3/01/32 ............................ 09/12 @ 102 6,215,263 Texas Tpke. Auth., Central Sys. Rev., AMBAC, AAA 35,000 Zero Coupon, 8/15/32 ...................................................... 08/12 @ 30.846 6,424,950 AAA 62,325 Zero Coupon, 8/15/33 ...................................................... 08/12 @ 28.997 10,741,090 AAA 65,040 Zero Coupon, 8/15/34 ...................................................... 08/12 @ 27.31 10,541,033 ------------ 101,235,669 ------------ VIRGINIA--0.4% BBB 530 Peninsula Ports Auth., Coal Term., Dominion Term. Assocs., 6.00%, 4/01/33 ... 04/13 @ 101 536,424 AAA 8,105 Virginia Transp. Brd. Trust, Zero Coupon, 4/01/32, MBIA ..................... 04/12 @ 34.99 1,668,738 ------------ 2,205,162 ------------ WASHINGTON--1.8% A- 2,190 Energy Northwest Wind Proj., Ser. B, 6.00%, 7/01/23 ......................... 01/07 @ 103 2,281,870 BBB 10,000 Tobacco Settlement Auth., 6.625%, 6/01/32 ................................... 06/13 @ 100 8,909,000 ------------ 11,190,870 ------------ WEST VIRGINIA--1.4% BBB 8,000 Braxton Cnty. Sld. Wst. Disp., Weyerhaeuser Co. Proj., 6.50%, 4/01/25 ....... 04/05 @ 102 8,363,200 ------------ WISCONSIN--9.8% BBB 26,000 Badger Tobacco Asset Sec. Corp., 6.375%, 6/01/32 ............................ 06/12 @ 100 22,541,480 Wisconsin Hlth. & Edl. Facs. Auth., BBB+ 7,500 Aurora Hlth. Care, 6.40%, 4/15/33 ......................................... 04/13 @ 100 7,694,850 A+ 13,750 Froedert & Cmnty. Hlth. Oblig., 5.375%, 10/01/30 .......................... 10/11 @ 101 13,456,025 A 15,000 Wheaton Franciscan Svcs., 5.75%, 8/15/30 .................................. 02/12 @ 101 15,307,350 ------------ 58,999,705 ------------ TOTAL LONG-TERM INVESTMENTS (COST $921,578,156) ............................. 930,370,455 ------------
See Notes to Financial Statements. 18
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ SHORT-TERM INVESTMENTS--5.2% CALIFORNIA--0.4% A1+ $ 1,995(4) Orange Cnty. Sanitation Dist., COP, Ser. A, 1.20%, 11/03/03, FRDD ........... $ 1,995,000 ------------ NORTH CAROLINA--0.8% A-1 5,000(4) Mecklenburg Cnty., COP, 1.05%, 11/06/03, FRWD ............................... 5,000,000 ------------ TENNESSEE--0.3% Aa1 1,800(4) Clarksville Pub. Bldg. Auth., 1.06%, 11/03/03, FRDD ......................... 1,800,000 ------------ TEXAS--2.2% A1+ 845(4) Brownsville Util. Sys., Ser. A, 1.10%, 11/06/03, MBIA, FRWD ................. 845,000 Gulf Coast Wst. Disp. Auth., FRDD, A1+ 11,300(4) ExxonMobil Proj., Ser. A, 1.10%, 11/03/03 ................................. 11,300,000 A1+ 1,000(4) PCR, Amoco Oil Co. Proj., 1.05%, 11/03/03 ................................. 1,000,000 ------------ 13,145,000 ------------ ---------- SHARES (000) ---------- MONEY MARKET FUND--1.5% NR 9,200 AIM Tax Free Investment Co. Cash Reserve Portfolio .......................... 9,200,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $31,140,000) ............................. 31,140,000 ------------ TOTAL INVESTMENTS--159.2% (COST $952,718,156) ............................... 961,510,455 Other assets in excess of liabilities--2.9% ................................. 17,579,951 Preferred shares at redemption value, including dividends payable--(62.1)% .. (375,146,916) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $603,943,490 ============
___________________________ (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2003, the Trust held 7.4% of its net assets, with a current market value of $44,724,620, in securities restricted as to resale. (4) For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Interest rate shown is as of October 31, 2003. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporpation FGIC -- Financial Guaranty Insurance Company FRDD -- Floating Rate Daily Demand FRWD -- Floating Rate Weekly Demand FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue - -------------------------------------------------------------------------------- See Notes to Financial Statements. 19 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2003 BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST (RAA)
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM INVESTMENTS--138.8% California, GO, A $ 960(3) 5.75%, 3/01/05 ............................................................ N/A $ 1,026,298 A 40 5.75%, 3/01/19 ............................................................ 03/05 @ 101 42,152 California Cnty. Tobacco Sec. Agcy., BBB 1,000 Ser. B, 6.00%, 6/01/29 .................................................... 06/12 @ 100 891,270 Baa2 900 Stanislaus Fdg., Ser. A, 5.875%, 6/01/43 .................................. 06/12 @ 100 714,402 California Edl. Facs. Auth., MBIA, AAA 760(3) Santa Clara Univ., 5.00%, 9/01/06 ......................................... N/A 848,920 AAA 835 Student Loan Prog., Ser. A, 6.00%, 3/01/16 ................................ 03/07 @ 102 882,545 California Pub. Wks. Brd., Lease Rev., Ser. A, BBB- 1,000(3) Dept. of Corrections., 6.875%, 11/01/04 ................................... N/A 1,077,160 A2 1,000 St. Univ. Proj., 6.10%, 10/01/06 .......................................... 10/04 @ 102 1,057,170 AAA 1,385 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., Ser. A, Zero Coupon, 1/01/04 ...................................................... No Opt. Call 1,382,590 Golden St. Tobacco Sec. Corp., Ser. B, A- 900 5.50%, 6/01/43 ............................................................ 06/13 @ 100 851,670 A- 400 5.625%, 6/01/38 ........................................................... 06/13 @ 100 387,344 Los Angeles Cnty., AAA 1,000 Cmnty. Facs. Spec. Tax, Ser. A, 5.50%, 9/01/14, FSA ....................... 09/07 @ 102 1,115,550 AAA 1,000(3) Met. Trans. Auth. Sales Tax Rev., 6.00%, 7/01/06, MBIA .................... N/A 1,130,520 Aa3 1,0003 Los Angeles Cnty. Pub. Wks. Fin. Auth., Regl. Park & Open Space, Dist. A, 6.00%, 10/01/04 ........................................................... N/A 1,064,960 AA 1,150 Los Angeles Harbor Dept., Ser. B, 6.00%, 8/01/13 ............................ 08/06 @ 101 1,262,102 B- 945(4) Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. B, 7.50%, 12/01/24 ................................................... 12/12 @ 102 906,860 NR 1,000(4) Poway Unified Sch. Dist., Spl. Tax Rev., Cmnty. Facs. Dist. No. 6, 5.60%, 9/01/33 ................................................................... 09/10 @ 102 964,560 BBB- 1,000 Sacramento Pwr. Auth., Cogeneration Proj. Rev., 6.50%, 7/01/09 .............. 07/06 @ 102 1,109,310 NR 1,000(4) San Bernardino Cnty., Spl. Tax Rev., Cmnty. Facs., 5.90%, 9/01/33 ........... 09/12 @ 102 958,030 AAA 500 San Diego Ind. Dev., Ser. A, 5.90%, 6/01/18, AMBAC .......................... 12/03 @ 102 511,780 San Francisco City & Cnty. Arpt. Comn., Intl. Arpt. Rev., AAA 150 Ser. 12-A, 5.90%, 5/01/26, MBIA ........................................... 05/06 @ 101 160,479 AAA 1,000 Ser. 6, 6.125%, 5/01/09, AMBAC ............................................ 05/04 @ 102 1,038,310 AAA 40 So. California Pub. Pwr. Auth., Transm. Proj. Rev., 5.50%, 7/01/20, MBIA .... 12/03 @ 100 40,144 AAA 500 Temecula Valley Unified Sch. Dist., GO, Ser. G, 5.75%, 8/01/25, FGIC ........ 08/07 @ 102 542,890 AAA 370 West Basin Mun. Wtr. Dist., COP, Ser. A, 5.50%, 8/01/22, AMBAC .............. 08/07 @ 101 396,529 ------------ TOTAL LONG-TERM INVESTMENTS (COST $19,546,580) .............................. 20,363,545 ------------ ---------- SHARES (000) ---------- MONEY MARKET FUNDS--7.5% NR 700 AIM Tax Free Investment Co. Cash Reserve Portfolio .......................... N/A 700,000 NR 400 SSgA Tax Free Money Mkt. Fund ............................................... N/A 400,000 ------------ TOTAL MONEY MARKET FUNDS (COST $1,100,000) .................................. 1,100,000 ------------ TOTAL INVESTMENTS--146.3% (COST $20,646,580) ................................ 21,463,545 Other assets in excess of liabilities--4.8% ................................. 702,237 Preferred shares at redemption value, including dividends payable--(51.1)% .. (7,500,330) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $14,665,452 ============
_________________________ (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) See Note 6 of Notes to Financial Statements. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporpation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 20 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2003 BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST (BFZ)
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM INVESTMENTS--158.3% CALIFORNIA--135.0% Anaheim Pub. Fin. Auth., Pub. Impvt. Proj., Ser. C, FSA, AAA $24,500 Zero Coupon, 9/01/31 ...................................................... No Opt. Call $ 5,284,405 AAA 6,070 Zero Coupon, 9/01/32 ...................................................... No Opt. Call 1,235,549 California, GO, A 10,000 5.50%, 11/01/33 ........................................................... 11/13 @ 100 10,122,400 AAA 5,500 Ser. BZ, 5.35%, 12/01/21, MBIA ............................................ 06/07 @ 101 5,570,620 AAA 5,000 Ser. BZ, 5.375%, 12/01/24, MBIA ........................................... 06/07 @ 101 5,021,900 California Cnty. Tobacco Sec. Agcy., BBB 12,000 Fresno Cnty. Fdg. Corp., 6.00%, 6/01/35 ................................... 06/12 @ 100 9,942,840 Baa2 5,000 Stanislaus Fdg., Ser. A, 5.875%, 6/01/43 .................................. 06/12 @ 100 3,968,900 California Dept. of Wtr. Res., Pwr. Sply. Rev., Ser. A, A3 4,000 5.375%, 5/01/21 ........................................................... 05/12 @ 101 4,095,040 A3 6,000 5.375%, 5/01/22 ........................................................... 05/12 @ 101 6,110,820 AAA 10,000 California Edl. Facs. Auth., Stanford Univ., Ser. Q, 5.25%, 12/01/32 ........ 06/11 @ 101 10,279,100 California Hlth. Facs. Fin. Auth., Ser. A, BBB 3,000 Insured Hlth. Facs. Valleycare, 5.375%, 5/01/27 ........................... 05/12 @ 100 2,966,610 A 4,890 Kaiser Proj., 5.40%, 5/01/28 .............................................. 07/06 @ 102 4,931,858 California Hsg. Fin. Agcy., AAA 19,215 Ser. B, Zero Coupon, 8/01/31, FSA ......................................... 08/10 @ 31.194 4,016,704 AAA 19,170 Home Mtge. Rev., Ser. Q, Zero Coupon, 2/01/33, AMBAC ...................... 08/11 @ 29.558 3,602,426 AAA 19,185 Home Mtge. Rev., Ser. T, Zero Coupon, 8/01/21, MBIA ....................... 08/11 @ 57.562 7,128,187 California Infrastructure & Econ. Dev., AAA 15,000 Bay Area Toll Brdgs. 1st Lien, Ser. A, 5.00%, 7/01/36, AMBAC .............. 07/13 @ 100 15,060,150 A 15,250 J. David Gladstone Inst. Proj., 5.25%, 10/01/34 ........................... 10/11 @ 101 15,046,260 A 13,500 Kaiser Hosp. Asst. LLC, Ser. A, 5.55%, 8/01/31 ............................ 08/11 @ 102 13,770,810 A+ 10,000 California Statewide Cmnty. Dev. Auth., Sutter Hlth. Oblig. Grp., Ser. B, 5.625%, 8/15/42 ........................................................... 08/12 @ 100 10,122,700 A- 5,000 Daly City Hsg. Dev. Fin. Agcy., Sr. Franciscan Acquisition Proj., Ser. A, 5.85%, 12/15/32 ........................................................... 12/13 @ 102 5,095,300 AAA 6,000 El Monte Sr. Dept. of Pub. Svcs., Fac. Phase II, COP, 5.25%, 1/01/34, AMBAC . 01/11 @ 100 6,124,800 Elk Grove Unified Sch. Dist., Cmnty. Facs. Dist. 1, Spec. Tax, AMBAC, AAA 7,485 Zero Coupon, 12/01/29 ..................................................... 12/11 @ 37.373 1,698,646 AAA 7,485 Zero Coupon, 12/01/30 ..................................................... 12/11 @ 35.365 1,600,518 AAA 7,485 Zero Coupon, 12/01/31 ..................................................... 12/11 @ 33.465 1,487,269 Foothill/Eastn. Transp. Corridor Agcy., Toll Road Rev., BBB 5,000 Zero Coupon, 1/15/33 ...................................................... 01/10 @ 25.78 830,050 BBB 5,000 Zero Coupon, 1/15/34 ...................................................... 01/10 @ 24.228 780,350 BBB 13,445 Zero Coupon, 1/15/35 ...................................................... 01/10 @ 22.819 1,972,650 BBB 1,000 Zero Coupon, 1/15/38 ...................................................... 01/10 @ 19.014 121,880 BBB 9,620 5.75%, 1/15/40 ............................................................ 01/10 @ 101 9,790,178 Golden St. Tobacco Sec. Corp., A- 10,200 Ser. B, 5.50%, 6/01/43 .................................................... 06/13 @ 100 9,652,260 A- 5,800 Ser. B, 5.625%, 6/01/38 ................................................... 06/13 @ 100 5,616,488 BBB 3,000 Tobacco Settlement Rev., Ser. A-1, 6.75%, 6/01/39 ......................... 06/13 @ 100 2,717,880 NR 5,000 Irvine Mobile Home Park, Meadows Mobile Home Park, Ser. A, 5.70%, 3/01/28 ... 03/08 @ 102 5,025,850 Lathrop Fin. Auth., Wtr. Suply. Proj., NR 2,855 5.90%, 6/01/27 ............................................................ 06/13 @ 100 2,766,609 NR 5,140 6.00%, 6/01/35 ............................................................ 06/13 @ 100 5,027,948 B- 4,110 Los Angeles Regl. Arpt. Impvt., Corp. Lease Rev., Amer. Airlines Inc., Ser. C, 7.50%, 12/01/24 ................................................... 12/12 @ 102 3,944,120 BBB 1,000 Palm Springs Mobile Home Park., Sahara Mobile Home Park, 5.625%, 5/15/26 .... 05/12 @ 102 1,003,070 NR 4,000 Rancho Cucamonga Cmnty. Facs. Dist., Ser. A, 6.50%, 9/01/33 ............................................................ 09/13 @ 100 4,045,800 AAA 15,500 Rancho Cucamonga Redev. Agcy., Tax Alloc. Rev., Rancho Redev. Proj., 5.125%, 9/01/30, MBIA ..................................................... 09/11 @ 100 15,744,125 AAA 1,905 Richmond Wst. & Wtr., Zero Coupon, 8/01/31, FGIC ............................ No Opt. Call 412,775 AAA 6,500 San Francisco City & Cnty. Arpt. Comn., Intl. Arpt. Rev., Ser. 27-A, 5.25%, 5/01/31, MBIA ............................................................. 05/11 @ 100 6,560,775 San Francisco City & Cnty. Redev. Agcy., Cmnty. Facs. Dist., NR 1,775 Mission Bay South, 6.125%, 8/01/31 ........................................ 08/09 @ 102 1,779,668 NR 7,500 Mission Bay South, 6.25%, 8/01/33 ......................................... 08/11 @ 101 7,369,875
See Notes to Financial Statements. 21
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ CALIFORNIA--(CONT'D) San Jose Mult. Fam. Hsg., AAA $ 2,880 Lenzen Hsg., Ser. B, 5.45%, 2/20/43 ....................................... 08/11 @ 102 $ 2,916,806 AAA 4,225 Vlgs. Pkwy. Sr. Apts., Ser. D, 5.50%, 4/01/34 ............................. 04/11 @ 100 4,283,728 Santa Clara Cnty. Hsg. Auth., Mult. Fam. Hsg., Ser. A, NR 6,250 Blossom River Apts., 6.50%, 9/01/39 ....................................... 03/08 @ 102 5,823,000 A3 1,715 John Burns Gardens Apts. Proj., 5.85%, 8/01/31 ............................ 02/12 @ 101 1,720,883 A3 1,235 River Town Apts. Proj., 6.00%, 8/01/41 .................................... 02/12 @ 101 1,245,312 NR 3,075 Santa Clarita Facs. Dist., Valencia Town Ctr., 5.85%, 11/15/32 .............. 11/10 @ 102 3,007,750 BBB 5,345 Tobacco Sec. Auth. No. California, Tobacco Settlement Rev., Ser. A, 5.375%, 6/01/41 ................................................................... 06/11 @ 100 3,918,794 Tobacco Sec. Auth. So. California, Tobacco Settlement Rev., Ser. A, BBB 7,000 5.50%, 6/01/36 ............................................................ 06/12 @ 100 5,362,070 BBB 11,500 5.625%, 6/01/43 ........................................................... 06/12 @ 100 8,765,990 AAA 2,000 Upland Unified Sch. Dist., GO, Ser. B, 5.125%, 8/01/25, FSA ................. 08/13 @ 100 2,054,640 NR 2,245 Val Verde Unified Sch. Dist. Fin. Auth., Spec. Tax Rev., 6.25%, 10/01/28 .... 10/13 @ 102 2,219,699 A2 2,000 Vernon Elec. Sys., Malburg Generating Station Proj., 5.50%, 4/01/33 ......... 04/08 @ 100 2,006,700 ------------ 282,771,535 ------------ DELAWARE--5.5% Charter Mac Equity Issuer Trust, NR 7,000(3) Ser. A-2, 6.30%, 6/30/49 .................................................. No Opt. Call 7,340,970 NR 4,000(3) Ser. B-1, 6.80%, 11/30/50 ................................................. No Opt. Call 4,177,280 ------------ 11,518,250 ------------ MARYLAND--5.0% MuniMae TE Bond Subsidiary, LLC, NR 7,000(3) Ser. A, 6.30%, 6/30/49 .................................................... 06/09 @ 100 7,362,670 NR 3,000(3) Ser. B, 6.80%, 6/30/50 .................................................... 11/10 @ 100 3,132,960 ------------ 10,495,630 ------------ PUERTO RICO--12.8% A- 10,000 Puerto Rico Elec. Pwr. Auth., Ser. 2, 5.25%, 7/01/31 ........................ 07/12 @ 101 10,130,500 Puerto Rico Pub. Fin. Corp., Ser. E, BBB+ 10,000 5.70%, 8/01/25 ............................................................ 02/10 @ 100 10,583,000 BBB+ 5,750 5.75%, 8/01/30 ............................................................ 02/07 @ 100 5,997,365 ------------ 26,710,865 ------------ TOTAL LONG-TERM INVESTMENTS (COST $336,153,402) ............................. 331,496,280 ------------ SHORT-TERM INVESTMENTS--5.2% CALIFORNIA--0.2% A-1 500(4) Long Beach California Unified Sch. Dist., COP, Cap. Impvt. Proj., 1.00% 11/06/03, AMBAC, FRWD ..................................................... N/A 500,000 ------------ ---------- SHARES (000) ---------- MONEY MARKET FUND--5.00% NR 10,400 AIM Tax Free Investment Co. Cash Reserve Portfolio .......................... N/A 10,400,000 ------------ TOTAL SHORT-TERM INVESTMENTS (COST $10,900,000) ............................. 10,900,000 ------------ TOTAL INVESTMENTS--163.5% (COST $347,053,402) ............................... 342,396,280 Liabilities in excess of other assets--(0.5)% ............................... (1,043,040) Preferred shares at redemption value, including dividends payable--(63.0)% .. (131,956,243) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $209,396,997 ============
_____________________ (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2003, the Trust held 10.5% of its net assets, with a current market value of $22,013,880, in securities restricted as to resale. (4) For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Interest rate shown is as of October 31, 2003. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporpation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FRWD -- Floating Rate Weekly Demand FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 22 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2003 BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST (RFA)
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM INVESTMENTS--134.0% FLORIDA--113.4% AAA $ 170 Boynton Beach, Util. Sys. Rev., 6.25%, 11/01/20, FGIC ....................... ETM $ 206,406 AAA 1,000 Brevard Cnty. Sch. Brd., COP, Ser. B, 5.50%, 7/01/21, AMBAC ................. 07/06 @ 102 1,073,520 Baa1 1,000 Capital Trust Agcy. Multi-Fam., American Opp., Ser. A, 5.875%, 06/01/38 ..... 06/11 @ 102 929,820 AAA 1,000 Collier Cnty. Sch. Brd., COP, 5.00%, 2/15/16, FSA ........................... 02/06 @ 101 1,041,750 AAA 1,000 Dade Cnty., Aviation Rev., Ser. C, 5.75%, 10/01/25, MBIA .................... 10/05 @ 102 1,055,620 AAA 1,000(3) Dade Cnty. GO, Ser. B, Zero Coupon, 10/01/08, AMBAC ......................... N/A 626,930 AAA 1,000(3) Dade Cnty. Sch. Brd., COP, Ser. A, 6.00%, 5/01/04, MBIA ..................... N/A 1,034,370 AAA 1,000(3) First Florida Govtl. Fin. Com., 5.75%, 7/01/06, AMBAC ....................... N/A 1,118,430 AA+ 1,000(3) Florida Brd. of Ed., GO, Ser. B, 5.875%, 6/01/05 ............................ N/A 1,082,070 AAA 500 Florida Dept. of Corrections, COP, Okeechobee Correctional Fac., 6.25%, 3/01/15, AMBAC ............................................................ 03/05 @ 102 537,660 AAA 1,000(3) Florida Div. of Bond Fin. Dept., Gen. Svcs. Rev., Dept. of Environ. Pres., Ser. A, 5.75%, 7/01/05, AMBAC ............................................. N/A 1,083,800 AAA 1,000(3) Florida Dept. of Trans., GO, 5.80%, 7/01/05 ................................. N/A 1,084,620 AAA 370 Florida Hsg. Fin. Agcy., Sngl. Fam. Mtge. Rev., Ser. A, 6.25%, 7/01/11 ...... 07/04 @ 102 381,492 AAA 1,000 Jacksonville Cap. Impvt., Gator Bowl Proj., 5.50%, 10/01/14, AMBAC .......... 10/04 @ 101 1,044,580 AAA 1,000 Lee Cnty., Transp. Fac., 5.75%, 10/01/22, MBIA .............................. 10/05 @ 102 1,075,250 AAA 5,000 Miami Dade Cnty., Spec. Oblig. Rev., Ser. B, Zero Coupon, 10/01/31, MBIA .... 04/08 @ 28.079 1,013,300 AA- 1,000 Pinellas Cnty. Hlth. Fac. Auth., Baycare Hlth. Sys., 5.50%, 11/15/33 ........ 05/13 @ 100 1,001,900 AAA 1,000(3) Seminole Cnty. Sch. Brd., COP, Ser. A, 6.125%, 7/01/04, MBIA ................ N/A 1,053,390 NR 1,000(4) Sumter Landing Cmnty. Dev. Dist., Spec. Assmt., 6.95%, 5/01/33 .............. 05/13 @ 101 1,027,490 AAA 1,000(3) Sunrise Util. Sys., Ser. A, 5.75%, 10/01/06, AMBAC .......................... N/A 1,125,370 BBB+ 1,000 Volusia Cnty. Edl. Fac. Auth., 6.125%, 10/15/16 ............................. 10/06 @ 102 1,065,860 ------------ 19,663,628 ------------ PUERTO RICO--20.6% Puerto Rico Elec. Pwr. Auth., AAA 1,000(3) Ser. T, 6.375%, 7/01/04 ................................................... N/A 1,055,020 A- 1,000 Ser. U, 6.00%, 7/01/14 .................................................... 07/04 @ 102 1,039,570 A- 415(3) Puerto Rico Pub. Bldg. Auth., Pub. Ed. & Hlth. Fac. Rev., Ser. M, 5.50%, 7/01/05 ................................................................... N/A 444,369 BBB+ 1,000 Puerto Rico Pub. Fin. Corp., Ser. E, 5.50%, 8/01/29 ......................... 02/12 @ 100 1,038,940 ------------ 3,577,899 ------------ TOTAL LONG-TERM INVESTMENTS (COST $21,609,071) .............................. 23,241,527 ------------ ---------- SHARES (000) ---------- MONEY MARKET FUNDS--8.0% NR 850 AIM Tax Free Investment Co. Cash Reserve Portfolio .......................... N/A 850,000 NR 550 SSgA Tax Free Money Mkt. Fund ............................................... N/A 550,000 ------------ TOTAL MONEY MARKET FUNDS (COST $1,400,000) .................................. 1,400,000 ------------ TOTAL INVESTMENTS--142.0% (COST $23,009,071) ................................ $24,641,527 Other assets in excess of liabilities--7.0% ................................. 1,205,691 Preferred shares at redemption value, including dividends payable--(49.0)% .. (8,500,198) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $17,347,020 ============
_________________________ (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) See Note 6 of Notes to Financial Statements. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporpation COP -- Certificate of Participation ETM -- Escrowed to Maturity FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 23 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2003 BLACKROCK FLORIDA MUNICIPAL INCOME TRUST (BBF)
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM INVESTMENTS--155.9% FLORIDA--135.3% AA $10,715 Beacon Tradeport Cmnty. Dev. Dist., Spec. Assmt., Ser. A, 5.625%, 5/01/32 ... 05/12 @ 102 $ 11,118,848 A 2,000 Boynton Beach Mult. Fam. Hsg., Clipper Cove Apts., 5.45%, 1/01/33, ACA ...... 01/13 @ 100 2,014,180 AAA 2,800 Cap. Projs. Fin. Auth., Student Hsg., Cap. Projs. Loan Prog., Ser. F-1, 5.00%, 10/01/31, MBIA ............................................................ 08/11 @ 102 2,779,028 Baa1 1,000 Capital Trust Agcy. Multi-Fam., American Opp., Ser. A, 5.875%, 6/01/38 ...... 06/11 @ 102 929,820 NR 7,000 Escambia Cnty. Hlth. Facs. Auth., Hlth. Care Fac. Rev., 5.95%, 7/01/20, AMBAC ..................................................................... No Opt. Call 7,394,240 AA+ 5,550 Florida Brd. of Ed., GO, Ser. A, 5.125%, 6/01/30 ............................ 06/10 @ 101 5,631,585 A 3,000 Florida Hsg. Fin. Corp., Sunset Place, Ser. K-1, 6.10%, 10/01/29 ............ 10/09 @ 102 3,084,150 NR 2,870 Gateway Svcs. Cmnty. Dev. Dist., Spec. Assmt., Stoneybrook Proj., 5.50%, 7/01/08 ................................................................... No Opt. Call 2,901,484 NR 1,715 Heritage Harbour So. Cmnty., Cap. Impvt., Ser. A, 6.50%, 5/01/34 ............ 05/13 @ 101 1,736,729 A 6,500 Highlands Cnty. Hlth. Facs. Auth., Hosp. Adventist/Sunbelt, Ser. A, 6.00%, 11/15/31 .................................................................. 11/11 @ 101 6,777,355 Baa1 1,450 Hillsborough Cnty. Ind. Dev. Auth., PCR, Tampa Elec. Co. Proj., 5.50%, 10/01/23 .................................................................. 10/12 @ 100 1,410,343 AA 7,500 Jacksonville Econ. Dev. Comm. Hlth. Facs., Mayo Clinic, Ser. B, 5.50%, 11/15/36 .................................................................. 11/11 @ 101 7,717,875 AAA 4,000 Jacksonville Transp., 5.00%, 10/01/26, MBIA ................................. 10/11 @ 100 4,039,080 JEA Elec. Sys., AA 5,000 5.20%, 10/01/33 ........................................................... 12/03 @ 101 5,017,700 AA 5,000 Ser. A, 5.50%, 10/01/41 ................................................... 10/07 @ 100 5,105,200 Aa3 7,500 JEA Wtr. & Swr. Sys., Ser. C, 5.25%, 10/01/37 ............................... 10/06 @ 100 7,547,775 NR 1,695 Laguna Lakes Cmnty., Spec. Assmt., Ser. A, 6.40%, 5/01/33 ................... 05/13 @ 101 1,716,611 AAA 2,770 Melbourne Wtr. & Swr., Zero Coupon, 10/01/21, FGIC .......................... No Opt. Call 1,168,303 Miami Dade Cnty., Spec. Oblig. Rev., MBIA, AAA 2,595 Ser. A, Zero Coupon, 10/01/19 ............................................. 04/08 @ 55.413 1,121,870 AAA 9,700 Ser. B, Zero Coupon, 10/01/33 ............................................. 04/08 @ 25.056 1,717,191 AAA 25,000 Ser. C, Zero Coupon, 10/01/28 ............................................. 04/08 @ 32.99 6,135,250 NR 1,000 Miami Dade Cnty. Expwy. Auth., Toll Sys. Rev., 5.125%, 7/01/25, FGIC ........ 07/11 @ 101 1,020,770 No. Palm Beach Cnty. Impvt. Dist., Wtr. Ctrl. & Impvt. Unit Dev. 43, NR 5,680 6.10%, 8/01/21 ............................................................ 08/11 @ 101 5,808,084 NR 3,500 6.125%, 8/01/31 ........................................................... 08/11 @ 101 3,539,270 AAA 2,500 Palm Beach Cnty. Sch. Brd., COP, Ser. B, 5.00%, 8/01/25, AMBAC .............. 08/11 @ 101 2,524,925 Aa3 12,000 So. Miami Hlth. Facs. Auth., Baptist Hlth., 5.25%, 11/15/33 ................. 02/13 @ 100 11,977,680 NR 1,500 St. Petersburg Pub. Util., Ser. A, 5.00%, 10/01/28, FSA ..................... 10/09 @ 101 1,511,130 NR 2,850 Sumter Cnty. Indl. Dev. Auth., No. Sumter Util. Co. LLC, 6.80%, 10/01/32 .... 10/09 @ 100 2,863,224 NR 2,000 Sumter Landing Cmnty. Dev. Dist., Spec. Assmt., 6.95%, 5/01/33 .............. 05/13 @ 101 2,054,980 AA 5,500 Tampa, Univ. of Tampa Proj., 5.625%, 4/01/32, RAA ........................... 04/12 @ 100 5,749,425 AA 4,000 Tampa Wtr. & Swr., Ser. A, 5.00%, 10/01/26 .................................. 10/11 @ 101 4,043,560 NR 1,975 Village Cmnty. Dev., Assmt. Rev., Ser. A, 6.50%, 5/01/33 .................... 05/13 @ 101 2,017,384 BBB+ 2,000 Volusia Cnty. Edl. Fac. Auth., Embry Riddle Aero. Univ., Ser. A, 5.75%, 10/15/29 .................................................................. 10/09 @ 101 1,862,560 ------------ 132,037,609 ------------ PUERTO RICO--20.6% BBB 6,000 Children's Trust Fund Puerto Rico, Tobacco Settlement Rev., 5.625%, 5/15/43 . 05/12 @ 100 5,211,360 A- 7,500 Puerto Rico, GO, Ser. A, 5.125%, 7/01/31 .................................... 07/11 @ 100 7,520,700 Puerto Rico Pub. Fin. Corp., Ser. E, BBB+ 4,000 5.70%, 8/01/25 ............................................................ 02/10 @ 100 4,233,200 BBB+ 3,000 5.75%, 8/01/30 ............................................................ 02/07 @ 100 3,129,060 ------------ 20,094,320 ------------ TOTAL LONG-TERM INVESTMENTS (COST $150,067,114) ............................. 152,131,929 ------------
See Notes to Financial Statements. 24
SHARES (000) DESCRIPTION VALUE - ------------------------------------------------------------------------------------------------------------------------------------ MONEY MARKET FUND--0.8% NR 750 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $750,000) .......... $ 750,000 ------------ TOTAL INVESTMENTS--156.7% (COST $150,817,114) ............................... 152,881,929 Other assets in excess of liabilities--2.3% ................................. 2,259,850 Preferred shares at redemption value, including dividends payable--(59.0)% .. (57,552,694) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $ 97,589,085 ============
______________________ (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporpation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association PCR -- Pollution Control Revenue RAA -- Radian Asset Assurance - -------------------------------------------------------------------------------- See Notes to Financial Statements. 25 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2003 BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST (RNJ)
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM INVESTMENTS--139.3% NEW JERSEY--117.8% AAA $ 1,000 Delaware River Port. Auth. of Pa & NJ, 5.75%, 1/01/26, FSA .................. 01/10 @ 100 $ 1,082,000 AAA 1,000(3) Essex Cnty. Util. Auth. Sld. Wst., Ser. A, 5.60%, 4/01/06, FSA .............. N/A 1,114,520 New Jersey Econ. Dev. Auth., B 925(4) Continental Airlines Inc. Proj., 7.00%, 11/15/30 .......................... 11/10 @ 101 845,580 AAA 1,0003 Mkt. Trans. Fac., Ser. A, 5.875%, 7/01/04, MBIA ........................... N/A 1,051,770 AAA 900 Transp. Proj., Ser. A, 5.75%, 5/01/10, FSA ................................ No Opt. Call 1,038,663 BBB 500 Trigen-Trenton Proj., Ser. A, 6.20%, 12/01/10 ............................. 12/03 @ 102 510,350 New Jersey Hlth. Care Fac. Fin. Auth., A2 1,000 Hackensack Univ. Med. Ctr, 6.00%, 1/01/25 ................................. 01/10 @ 101 1,041,680 AAA 1,000(3) Riverview Med. Ctr., 5.50%, 7/01/04, AMBAC ................................ N/A 1,049,320 AAA 1,000 St. Josephs Hosp. & Med. Ctr., 5.75%, 7/01/16, CONNIE LEE ................. 07/06 @ 102 1,092,170 AAA 1,000(3) New Jersey Edl. Fac. Auth., Rowan College, Ser. E, 5.875%, 7/01/06, AMBAC ... N/A 1,121,670 AAA 275 New Jersey Hsg. & Mtge. Fin., Home Buyer, Ser. O, 6.35%, 10/01/27, MBIA ..... 10/05 @ 101.5 283,481 AAA 1,000 New Jersey Tpke. Auth., Ser. C, 6.50%, 1/01/16, AMBAC ....................... No Opt. Call 1,220,831 New Jersey Trans. Auth. Trust Fund, Trans. Sys., Ser. B, MBIA, AAA 375(3) 5.50%, 6/15/05 ............................................................ N/A 407,876 AAA 625 5.50%, 6/15/15 ............................................................ 06/05 @ 102 674,213 AAA 375(3) 5.75%, 6/15/05 ............................................................ N/A 409,369 AAA 625 5.75%, 6/15/14 ............................................................ 06/05 @ 102 676,687 AA 1,000(3) No. Brunswick Twnshp. Brd. of Ed., GO, 6.30%, 2/01/05 ....................... N/A 1,062,250 NR 1,000 Passaic Valley Sewage Com., Swr. Sys., GO, Ser. E, 5.75%, 12/01/21, AMBAC ... 12/09 @ 101 1,113,830 AA- 1,000 Port Auth. of NY & NJ, 5.75%, 12/15/20 ...................................... 06/05 @ 101 1,060,910 BBB 1,000 Tobacco Settlement Fin. Corp., 6.125%, 6/01/42 .............................. 06/12 @ 100 826,060 ------------ 17,683,230 ------------ DELAWARE--7.1% NR 1,000(5) Charter Mac Equity Issuer Trust, Ser. A, 6.625%, 6/30/49 .................... 06/09 @ 100 1,067,930 ------------ PUERTO RICO--14.4% AAA 1,000(3) Comnwlth. of Puerto Rico, 5.40%, 7/01/06, FSA ............................... N/A 1,115,550 A- 1,000 Puerto Rico Elec. Pwr. Auth., Ser. U, 6.00%, 7/01/14 ........................ 07/04 @ 102 1,039,570 ------------ 2,155,120 ------------ TOTAL LONG-TERM INVESTMENTS (COST $19,300,187) .............................. 20,906,280 ------------ ----------- SHARES (000) ----------- MONEY MARKET FUNDS--5.3% NR 750 AIM Tax Free Investment Co. Cash Reserve Portfolio .......................... N/A 750,001 NR 50 SSgA Tax Free Money Mkt. Fund ............................................... N/A 50,000 ------------ TOTAL MONEY MARKET FUNDS (COST $800,001) .................................... 800,001 ------------ TOTAL INVESTMENTS--144.6% (COST $20,100,188) ................................ 21,706,281 Other assets in excess of liabilities--5.4% ................................. 801,401 Preferred shares at redemption value, including dividends payable--(50.0)% .. (7,500,494) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $15,007,188 ============
_____________________ (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) See Note 6 of Notes to Financial Statements. (5) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2003, the Trust held 7.1% of its net assets, with a current market value of $1,067,930, in securities restricted as to resale. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporpation CONNIE LEE -- College Construction Loan Insurance Association FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 26 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2003 BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST (BNJ)
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM INVESTMENTS--155.4% NEW JERSEY--109.6% Cherry Hill Twnshp., GO, AA+ $ 4,065 5.00%, 7/15/22 ............................................................ 07/11 @ 100 $ 4,171,991 AA+ 4,275 5.00%, 7/15/23 ............................................................ 07/11 @ 100 4,356,909 AAA 12,600 Garden St. Presvtn. Trust, Open Space & Farmland Presvtn., Zero Coupon, 11/01/26, FSA ............................................................. No Opt. Call 3,744,342 AAA 7,750 Middlesex Cnty., COP, 5.00%, 8/01/31, MBIA .................................. 08/11 @ 100 7,799,058 Middlesex Cnty. Impvt. Auth., AAA 1,400 Admin. Bldg. Res. Proj., 5.35%, 7/01/34 ................................... 07/11 @ 100 1,417,444 AAA 4,470 New Brunswick Apts. Rental Hsg., 5.30%, 8/01/35 ........................... 08/12 @ 100 4,513,180 AAA 1,450 Util. Sys. Rev., Perth Amboy Franchise Proj., Ser. A, 5.00%, 9/01/29, AMBAC .......................................................... 09/09 @ 101 1,461,426 New Jersey Econ. Dev. Auth., B 3,450 Continental Airlines Inc. Proj., 7.00%, 11/15/30 .......................... 11/10 @ 101 3,153,783 B 2,000 Continental Airlines Inc. Proj., 7.20%, 11/15/30 .......................... 11/10 @ 101 1,873,320 BBB- 2,630 First Mtg. Fellowship Vlg. Proj., Ser. C., 5.50%, 1/01/18 ................. 01/09 @ 102 2,557,623 Baa3 2,500 Kapkowski Road Landfill Proj., 6.50%, 4/01/28 ............................. No Opt. Call 2,812,650 Baa3 5,000 Kapkowski Road Landfill Proj., 6.50%, 4/01/31 ............................. No Opt. Call 5,469,850 A+ 2,000 Masonic Charity Fndtn. Proj., 5.50%, 6/01/31 .............................. 06/11 @ 102 2,072,760 NR 1,980 Victoria Hlth., Ser. A, 5.20%, 12/20/36 ................................... 12/11 @ 103 2,018,590 New Jersey Edl. Facs. Auth., BBB- 3,000 Fairleigh Dickinson Univ., Ser. D, 6.00%, 7/01/25 ......................... 07/13 @ 100 3,037,650 BBB+ 2,120 Georgian Court Coll. Proj., Ser. C, 6.50%, 7/01/33 ........................ 07/13 @ 100 2,287,522 New Jersey Hlth. Care Fac. Fin. Auth., A- 4,500 Atlantic City Med. Ctr., 5.75%, 7/01/25 ................................... 07/12 @ 100 4,627,530 A+ 3,000 Catholic Hlth. East, Ser. A, 5.375%, 11/15/33 ............................. 11/12 @ 100 3,004,140 A3 10,000 Kennedy Hlth. Sys., 5.625%, 7/01/31 ....................................... 07/11 @ 100 10,082,500 Baa1 1,960 So. Jersey Hosp., 6.00%, 7/01/26 .......................................... 07/12 @ 100 1,985,303 Baa1 5,500 So. Jersey Hosp., 6.00%, 7/01/32 .......................................... 07/12 @ 100 5,533,715 Baa1 1,540 So. Ocean Cnty. Hosp., Ser. A, 6.25%, 7/01/23 ............................. 12/03 @ 102 1,558,388 AAA 3,000 New Jersey Hsg. & Mtg. Fin. Agcy., Mult. Fam. Hsg. Rev., Ser. A, 5.05%, 5/01/34, FSA .............................................................. 05/11 @ 100 2,949,570 AAA 1,970 Newark Hlth. Care Fac., New Cmty. Urban Renewal Proj., Ser. A, 5.20%, 6/01/30 ................................................................... 06/12 @ 102 2,014,955 AAA 8,000 Port Auth. of NY & NJ, Spec. Oblig., JFK Intl. Air Term. 6, 5.75%, 12/01/22, MBIA ...................................................................... 12/07 @ 102 8,581,360 BBB 18,000 Tobacco Settlement Fin. Corp., 6.125%, 6/01/42 .............................. 06/12 @ 100 14,869,080 Trenton Pkg. Auth., FGIC, NR 5,465 5.00%, 4/01/25 ............................................................ 04/11 @ 100 5,525,388 NR 2,000 5.00%, 4/01/30 ............................................................ 04/11 @ 100 2,015,880 Vineland, GO, MBIA, NR 1,500 5.30%, 5/15/30 ............................................................ 05/10 @ 101 1,526,985 NR 1,500 5.375%, 5/15/31 ........................................................... 05/10 @ 101 1,540,605 ------------ 118,563,497 ------------ DELAWARE--9.2% Charter Mac Equity Issuer Trust, NR 7,000(3) Ser. A-2, 6.30%, 6/30/49 .................................................. 06/09 @ 100 7,340,970 NR 2,500(3) Ser. B-1, 6.80%, 11/30/50 ................................................. 11/10 @ 100 2,610,800 ------------ 9,951,770 ------------ MARYLAND--4.9% MuniMae TE Bond Subsidiary, LLC, NR 3,000(3) Ser. A-1, 6.30%, 6/30/49 .................................................. 06/09 @ 100 3,155,430 NR 2,000(3) Ser. B-1, 6.80%, 6/30/50 .................................................. 11/10 @ 100 2,088,640 ------------ 5,244,070 ------------
See Notes to Financial Statements. 27
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO--31.7% Puerto Rico Hsg. Fin. Corp., Home Mtg. Rev., AAA $ 2,880 Ser. A, 5.20%, 12/01/33 ................................................... 06/11 @ 100 $ 2,927,808 AAA 2,880 Ser. B, 5.30%, 12/01/28 ................................................... 06/11 @ 100 2,910,298 A 7,000 Puerto Rico Hwy. & Transp. Auth., Ser. D, 5.25%, 7/01/38 .................... 07/12 @ 100 7,053,760 Puerto Rico Pub. Bldgs. Auth., Ser. D, AAA 5,000 Zero Coupon, 7/01/31, AMBAC ............................................... 07/17 @ 100 3,249,450 A- 6,500 Gov't. Facs., 5.25%, 7/01/36 .............................................. 07/12 @ 100 6,549,920 Puerto Rico Pub. Fin. Corp., Ser. E, BBB+ 4,000 5.70%, 8/01/25 ............................................................ 02/10 @ 100 4,233,200 BBB+ 7,040 5.75%, 8/01/30 ............................................................ 02/07 @ 100 7,342,861 ------------ 34,267,297 ------------ TOTAL LONG-TERM INVESTMENTS (COST $166,253,029) ............................. 168,026,634 ------------ SHORT-TERM INVESTMENT--1.3% A1+ 1,440(4) New Jersey Edl. Facs. Auth., Princeton Univ., Ser. B, 1.07%, 11/03/03, FRDD (cost $1,440,000) ......................................................... N/A 1,440,000 ------------ TOTAL INVESTMENTS--156.7% (COST $167,693,029) ............................... 169,466,634 Other assets in excess of liabilities--2.3% ................................. 2,506,025 Preferred shares at redemption value, including dividends payable--(59.0)% .. (63,800,700) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $108,171,959 ============
______________________ (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2003, the Trust held 14.0% of its net assets, with a current market value of $15,195,840, in securities restricted as to resale. (4) For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted. Interest rate shown is as of October 31, 2003. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporpation COP -- Certificate of Participation FGIC -- Financial Guaranty Insurance Company FRDD -- Floating Rate Daily Demand FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 28 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2003 BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST (RNY)
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM INVESTMENTS--146.1% NEW YORK--133.5% AAA $1,000 Albany Mun. Wtr. Fin. Auth., Second Resolution Rev., Refdg., Ser. B, 5.00%, 12/01/33, MBIA ............................................................ 06/08 @ 100 $ 1,001,950 AA- 2,100 Madison Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Colgate Univ. Proj., Ser. B, 5.00%, 7/01/23 ............................................................ 07/13 @ 100 2,131,017 AAA 1,000 Nassau Cnty., GO, Ser. U, 5.25%, 11/01/14, AMBAC ............................ 11/06 @ 102 1,079,760 AA 1,000 New York, GO, Ser. B, 5.70%, 8/15/12 ........................................ 08/05 @ 101 1,078,510 New York City, GO, A 820(3) Ser. A, 6.00%, 5/15/10 .................................................... N/A 975,899 A+ 180 Ser. A, 6.00%, 5/15/30 .................................................... 05/10 @ 101 195,287 A 710 Ser. D, 6.60%, 2/01/04 .................................................... No Opt. Call 719,308 A 290(3) Ser. D, 6.60%, 2/01/04 .................................................... N/A 293,872 A+ 1,000 Ser. I, 5.875%, 3/15/18 ................................................... 03/06 @ 101.5 1,066,440 New York City Ind. Dev. Agcy., Term. One Grp. Assoc. Proj., A3 1,000 6.00%, 1/01/08 ............................................................ 01/04 @ 102 1,024,680 A3 1,000 6.10%, 1/01/09 ............................................................ 01/04 @ 102 1,024,800 AAA 1,000(3) New York City Mun. Wtr. Fin. Auth., Ser. A, 6.00%, 6/15/05 .................. N/A 1,086,660 New York City Transl. Fin. Auth., Ser. B, AA+ 815(3) 6.00%, 5/15/10 ............................................................ N/A 972,629 AA+ 185 6.00%, 11/15/21 ........................................................... 05/10 @ 101 209,204 AA+ 1,000(3) 6.00%, 5/15/10 ............................................................ N/A 1,193,410 New York Dorm. Auth., AAA 1,250(3) City Univ., 6.125%, 7/01/04, AMBAC ........................................ N/A 1,316,737 AAA 1,000(3) City Univ., 6.20%, 7/01/04, AMBAC ......................................... N/A 1,053,880 AAA 1,000 Hosp. Lutheran Med., 5.00%, 8/01/31, MBIA ................................. 02/13 @ 100 1,005,290 Aa3 1,000 Kateri Residence, 5.00%, 7/01/22 .......................................... 07/13 @ 100 993,830 Ba1 1,000 Mount Sinai Hlth., Ser. A, 6.50%, 7/01/25 ................................. 07/10 @ 101 999,780 AAA 1,005 St. Univ. Edl. Fac., 5.25%, 5/15/15, AMBAC ................................ No Opt. Call 1,123,781 AAA 1,000(3) St. Univ. Edl. Fac., Ser. B, 6.00%, 5/15/04 ............................... N/A 1,046,250 AAA 1,000(3) St. Univ. Edl. Fac., Ser. B, 6.25%, 5/15/04 ............................... N/A 1,047,570 A+ 1,000 Univ. of Rochester, Ser. B, 5.625%, 7/01/24 ............................... 07/09 @ 101 1,071,400 New York Urban Dev. Corp., AAA 1,000(3) Correctional Facs., 5.70%, 1/01/07, MBIA .................................. N/A 1,135,330 AA- 900(3) Youth Fac., 5.875%, 4/01/04 ............................................... N/A 935,703 NR 1,000(4) Port Auth. of NY & NJ, Spec. Oblig., Cont'l/Eastern Proj. LaGuardia, 9.125%, 12/01/15 .................................................................. 12/03 @ 100 995,570 ------------ 26,778,547 ------------ PUERTO RICO--12.6% BBB 500 Children's Trust Fund, Tobacco Settlement Rev., 5.625%, 5/15/43 ............. 05/12 @ 100 434,280 A- 1,000(3) Puerto Rico Elec. Pwr. Auth., Ser. T, 6.00%, 7/01/04 ........................ N/A 1,052,240 BBB+ 1,000 Puerto Rico Pub. Fin. Corp., Ser. E, 5.50%, 8/01/29 ......................... 02/12 @ 100 1,038,940 ------------ 2,525,460 ------------ TOTAL INVESTMENTS--146.1% (COST $27,416,854) ................................ 29,304,007 Other assets in excess of liabilities--2.8% ................................. 550,195 Preferred shares at redemption value, including dividends payable--(48.9)% .. (9,800,941) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $20,053,261 ============
_____________________ (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) See Note 6 of Notes to Financial Statements. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS AMBAC -- American Municipal Bond Assurance Corporpation GO -- General Obligation MBIA -- Municipal Bond Insurance Association - -------------------------------------------------------------------------------- See Notes to Financial Statements. 29 PORTFOLIO OF INVESTMENTS OCTOBER 31, 2003 BLACKROCK NEW YORK MUNICIPAL INCOME TRUST (BNY)
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ LONG-TERM INVESTMENTS--156.5% NEW YORK--122.0% AAA $ 1,000 Albany Mun. Wtr. Fin. Auth., Second Resolution Rev., Ser. B, 5.00%, 12/01/33, MBIA ............................................................ 06/08 @ 100 $ 1,001,950 AAA 1,355 East Rochester Hsg. Auth., Gates Sr. Hsg. Inc. Proj., 6.125%, 4/20/43 ....... 10/11 @ 105 1,461,435 AA- 2,000 Madison Cnty. Indl. Dev. Agcy., Civic Fac. Rev., Colgate Univ. Proj., Ser. B, 5.00%, 7/01/33 ............................................................ 07/13 @ 100 2,001,920 Met. Transp. Auth., Ded. Tax Fund, Ser. A, AA- 12,000 5.00%, 11/15/30 ........................................................... 11/12 @ 100 11,931,960 A 12,000 5.125%, 11/15/31 .......................................................... 11/12 @ 100 12,058,080 New York, GO, A 3,290(3) Ser. C, 5.375%, 3/15/12 ................................................... N/A 3,746,455 A 2,710 Ser. C, 5.375%, 3/15/28 ................................................... 03/12 @ 100 2,771,462 A 7,000 GO, Ser. D, 5.375%, 6/01/32 ............................................... 06/12 @ 100 7,152,600 New York City Ind. Dev. Agcy., A 750 Marymount Sch. Proj., 5.125%, 9/01/21, ACA ................................ 09/11 @ 102 762,630 A 2,000 Marymount Sch. Proj., 5.25%, 9/01/31, ACA ................................. 09/11 @ 102 1,980,000 AAA 1,550 Royal Charter Presbyterian, 5.25%, 12/15/32, FSA .......................... 12/11 @ 102 1,588,347 BBB- 14,850 Spec. Arpt. Airis JFK I LLC Proj., Ser. A, 5.50%, 7/01/28 ................. 07/11 @ 100 14,382,225 A3 6,000 Term. One Grp. Assoc. Proj., 6.00%, 1/01/19 ............................... 01/04 @ 102 6,147,900 New York City Mun. Wtr. Fin. Auth., AAA 4,000 Ser. A, 5.00%, 6/15/32, FGIC .............................................. 06/11 @ 100 4,014,920 AA 7,000 Ser. C, 5.00%, 6/15/32 .................................................... 06/11 @ 100 7,004,060 New York City Transl. Fin. Auth., Ser. C, AA+ 5,940(3) 5.00%, 5/01/29 ............................................................ N/A 6,700,082 AA+ 3,660 5.00%, 5/01/29 ............................................................ 05/09 @ 101 3,669,004 New York Dorm. Auth., A3 10,780 Lenox Hill Hosp. Oblig. Grp., 5.50%, 7/01/30 .............................. 07/11 @ 101 10,982,880 AAA 9,000 New Sch. Univ., 5.00%, 7/01/41, MBIA ...................................... 07/11 @ 100 9,010,890 AAA 9,000 New York Univ., Ser. 2, 5.00%, 7/01/41, AMBAC ............................. 07/11 @ 100 9,010,890 A3 2,000 No. Shore Long Island Jewish Grp., 5.375%, 5/01/23 ........................ 05/13 @ 100 2,017,960 A3 2,000 No. Shore Long Island Jewish Grp., 5.50%, 5/01/33 ......................... 05/13 @ 100 2,015,600 AA- 15,235(3) City Univ. Ser. A, 5.25%, 7/01/11 ......................................... N/A 17,384,506 AA- 1,765 City Univ. Ser. A, 5.25%, 7/01/31 ......................................... 07/11 @ 100 1,791,581 New York Mtg. Agcy., Aa1 5,950 Ser. 101, 5.40%, 4/01/32 .................................................. 10/11 @ 100 6,014,498 NR 15,500 Ser. A, 5.30%, 10/01/31 ................................................... 04/11 @ 100 15,631,440 AA- 6,290(3) New York Urban Dev. Corp., Correctional Facs., Ser. 6, 5.375%, 1/01/06 ...... N/A 6,926,737 Port Auth. of NY & NJ, AAA 9,500 Ser. 124, 5.00%, 8/01/36, FGIC ............................................ 08/08 @ 101 9,381,725 AAA 13,000 Spec. Oblig., JFK Intl. Air Term. 6, 5.75%, 12/01/22, MBIA ................ 12/07 @ 102 13,944,710 NR 9,250 Spec. Oblig., Cont'l/Eastern Proj. LaGuardia, 9.125%, 12/01/15 ............ 12/03 @ 100 9,209,023 BBB 2,500 Rensselaer Tobacco Asset Sec. Corp., Tobacco Settlement Rev., Ser. A, 5.75%, 6/01/43 ................................................................... 06/12 @ 100 2,231,225 BBB 5,000 Rockland Tobacco Asset Sec. Corp., Tobacco Settlement Rev., 5.75%, 8/15/43 .. 08/12 @ 100 4,461,550 TSASC Inc., Tobacco Settlement Rev., Ser. 1, A2 5,000 5.75%, 7/15/32 ............................................................ 07/12 @ 100 4,630,350 A3 8,000 6.375%, 7/15/39 ........................................................... 07/09 @ 101 7,961,120 AA 2,500 Westchester Cnty. Ind. Dev. Agcy., Winward Sch. Civic Fac., 5.25%, 10/01/31, RAA ....................................................................... 10/11 @ 100 2,527,375 BBB 2,000 Westchester Tobacco Asset Sec. Corp., Tobacco Settlement Rev., 6.75%, 7/15/29 ................................................................... 07/10 @ 101 2,039,340 ------------ 225,548,430 ------------ DELAWARE--6.5% Charter Mac Equity Issuer Trust, NR 6,000(4) Ser. A-2, 6.30%, 6/30/49 .................................................. 06/09 @ 100 6,292,260 NR 5,500(4) Ser. B-1, 6.80%, 11/30/50 ................................................. 11/10 @ 100 5,743,760 ------------ 12,036,020 ------------ MARYLAND--5.1% MuniMae TE Bond Subsidiary, LLC, NR 6,000(4) Ser. A, 6.30%, 6/30/49 ...................................................... 06/09 @ 100 6,310,860 NR 3,000(4) Ser. B, 6.80%, 6/30/50 ...................................................... 11/10 @ 100 3,132,960 ------------ 9,443,820 ------------
See Notes to Financial Statements. 30
PRINCIPAL OPTION CALL RATING(1) AMOUNT PROVISIONS(2) (UNAUDITED) (000) DESCRIPTION (UNAUDITED) VALUE - ------------------------------------------------------------------------------------------------------------------------------------ PUERTO RICO--22.9% BBB $10,750 Children's Trust Fund Puerto Rico, Tobacco Settlement Rev., 5.625%, 5/15/43 . 05/12 @ 100 $ 9,337,020 A- 3,000 Puerto Rico, GO, Ser. A, 5.125%, 7/01/31 .................................... 07/11 @ 100 3,008,280 A- 6,000 Puerto Rico Pub. Bldgs. Auth., Gov't. Facs., Ser. D, 5.25%, 7/01/36 ......... 07/12 @ 100 6,046,080 Puerto Rico Pub. Fin. Corp., Ser. E, BBB+ 10,000 5.50%, 8/01/29 ............................................................ 02/12 @ 100 10,389,400 BBB+ 7,000 5.70%, 8/01/25 ............................................................ 02/10 @ 100 7,408,100 BBB+ 5,750 5.75%, 8/01/30 ............................................................ 02/07 @ 100 5,997,364 ------------ 42,186,244 ------------ TOTAL LONG-TERM INVESTMENTS (COST $282,228,689) ............................. 289,214,514 ------------ ----------- SHARES (000) ----------- MONEY MARKET FUND--0.6% NR 1,150 AIM Tax Free Investment Co. Cash Reserve Portfolio (cost $1,150,000) ........ N/A 1,150,000 ------------ TOTAL INVESTMENTS--157.1% (COST $283,378,689) ............................... 290,364,514 Other assets in excess of liabilities--2.3% ................................. 4,269,456 Preferred shares at redemption value, including dividends payable--(59.4)% .. (109,759,538) ------------ NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .......................... $184,874,432 ============
_________________________ (1) Using the higher of S&P's, Moody's or Fitch's rating. (2) Date (month/year) and price of the earliest call or redemption. There may be other call provisions at varying prices at later dates. (3) This bond is prerefunded. U.S. government securities, held in escrow, are used to pay interest on this security, as well as retire the bond in full at the date indicated, typically at a premium to par. (4) Security is not registered under the Securities Act of 1933. These securities may be resold in transactions in accordance with Rule 144A under that Act, to qualified institutional buyers. As of October 31, 2003, the Trust held 11.6% of its net assets, with a current market value of $21,479,840, in securities restricted as to resale. - -------------------------------------------------------------------------------- KEY TO ABBREVIATIONS ACA -- American Capital Access AMBAC -- American Municipal Bond Assurance Corporpation FGIC -- Financial Guaranty Insurance Company FSA -- Financial Security Assurance GO -- General Obligation MBIA -- Municipal Bond Insurance Association RAA -- Radian Asset Assurance - -------------------------------------------------------------------------------- See Notes to Financial Statements. 31 STATEMENTS OF ASSETS AND LIABILITIES OCTOBER 31, 2003 - --------------------------------------------------------------------------------
CALIFORNIA CALIFORNIA FLORIDA INVESTMENT QUALITY MUNICIPAL INVESTMENT QUALITY MUNICIPAL INVESTMENT QUALITY MUNICIPAL TRUST INCOME TRUST MUNICIPAL TRUST INCOME TRUST MUNICIPAL TRUST ASSETS (BKN) (BFK) (RAA) (BFZ) (RFA) -------------- -------------- -------------- ------------ -------------- Investments at value(1) ..................... $ 394,849,293 $ 961,510,455 $ 21,463,545 $ 342,396,280 $ 24,641,527 Cash ........................................ 544,204 535,049 520,282 517,427 536,855 Receivable from investments sold ............ 2,949,480 14,242,901 -- 5,212,067 444,459 Interest receivable ......................... 6,580,521 16,298,212 299,629 4,690,808 348,933 Other assets ................................ 90,226 94,763 11,008 32,374 11,159 ------------- ------------- ------------- ------------- ------------- 405,013,724 992,681,380 22,294,464 352,848,956 25,982,933 ------------- ------------- ------------- ------------- ------------- LIABILITIES Payable for investments purchased ........... 1,492,860 9,596,246 -- 10,113,533 -- Dividends payable-- common shares ........... 1,272,897 3,533,211 71,101 1,140,007 79,777 Investment advisory fee payable ............. 119,060 289,171 7,395 100,916 7,680 Administration fee payable .................. 51,026 -- 2,960 -- 3,460 Deferred Director or Trustees fees .......... 54,232 55,055 10,056 17,735 10,047 Other accrued expenses ...................... 118,309 117,291 37,170 123,525 34,751 ------------- ------------- ------------- ------------- ------------- 3,108,384 13,590,974 128,682 11,495,716 135,715 ------------- ------------- ------------- ------------- ------------- PREFERRED SHARES AT REDEMPTION VALUE $25,000 liquidation value per share, including dividends payable(2,3) .......... 146,590,649 375,146,916 7,500,330 131,956,243 8,500,198 ------------- ------------- ------------- ------------- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS ....................... $ 255,314,691 $ 603,943,490 $ 14,665,452 $ 209,396,997 $ 17,347,020 ============= ============= ============= ============= ============= Composition of Net Assets Applicable to Common Shareholders: Par value ................................. $ 167,071 $ 43,529 $ 10,071 $ 14,986 $ 11,271 Paid-in capital in excess of par .......... 231,766,743 618,056,399 13,392,714 212,626,998 15,001,008 Undistributed net investment income ....... 10,109,122 14,382,973 393,526 3,935,119 421,748 Accumulated net realized gain (loss) ...... (8,790,463) (37,331,710) 52,176 (2,522,984) 280,537 Net unrealized appreciation (depreciation) 22,062,218 8,792,299 816,965 (4,657,122) 1,632,456 ------------- ------------- ------------- ------------- ------------- Net assets applicable to common shareholders, October 31, 2003 .......................... $ 255,314,691 $ 603,943,490 $ 14,665,452 $ 209,396,997 $ 17,347,020 ============= ============= ============= ============= ============= Net asset value per common share(4) ......... $ 15.28 $ 13.87 $ 14.56 $ 13.97 $ 15.39 ============= ============= ============= ============= ============= (1) Investments at cost ..................... $ 372,787,075 $ 952,718,156 $ 20,646,580 $ 347,053,402 $ 23,009,071 (2) Preferred shares outstanding ............ 5,862 15,005 300 5,278 340 (3) Par value per share ..................... 0.01 0.001 0.01 0.001 0.01 (4) Common shares outstanding ............... 16,707,093 43,552,679 1,007,093 14,985,501 1,127,093
See Notes to Financial Statements. 32
FLORIDA NEW JERSEY NEW JERSEY NEW YORK NEW YORK MUNICIPAL INVESTMENT QUALITY MUNICIPAL INVESTMENT QUALITY MUNICIPAL INCOME TRUST MUNICIPAL TRUST INCOME TRUST MUNICIPAL TRUST INCOME TRUST (BBF) (RNJ) (BNJ) (RNY) (BNY) ---------- -------------- ---------- -------------- -------------- Investments at value(1) ..................... $ 152,881,929 $ 21,706,281 $ 169,466,634 $ 29,304,007 $ 290,364,514 Cash ........................................ 521,575 522,365 219,815 113,967 530,039 Receivable from investments sold ............ -- -- 180,000 -- 35,168 Interest receivable ......................... 2,352,463 385,824 2,773,446 566,703 4,807,837 Other assets ................................ 16,354 11,197 15,927 11,326 27,986 ------------- ------------- ------------- ------------- ------------- 155,772,321 22,625,667 172,655,822 29,996,003 295,765,544 ------------- ------------- ------------- ------------- ------------- LIABILITIES Payable for investments purchased ........... -- -- -- -- -- Dividends payable-- common shares ........... 500,968 67,624 556,910 95,581 943,357 Investment advisory fee payable ............. 45,962 6,682 50,887 8,841 87,155 Administration fee payable .................. -- 3,013 -- 3,901 -- Deferred Director or Trustees fees .......... 7,068 10,211 8,448 10,039 15,257 Other accrued expenses ...................... 76,544 30,455 66,918 23,439 85,805 ------------- ------------- ------------- ------------- ------------- 630,542 117,985 683,163 141,801 1,131,574 ------------- ------------- ------------- ------------- ------------- PREFERRED SHARES AT REDEMPTION VALUE $25,000 liquidation value per share, including dividends payable(2,3) .......... 57,552,694 7,500,494 63,800,700 9,800,941 109,759,538 ------------- ------------- ------------- ------------- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS ....................... $ 97,589,085 $ 15,007,188 $ 108,171,959 $ 20,053,261 $ 184,874,432 ============= ============= ============= ============= ============= Composition of Net Assets Applicable to Common Shareholders: Par value ................................. $ 6,646 $ 10,071 $ 7,415 $ 13,071 $ 12,521 Paid-in capital in excess of par .......... 94,259,825 13,079,455 105,166,744 17,651,717 177,620,593 Undistributed net investment income ....... 1,467,876 550,518 1,917,815 569,685 2,832,034 Accumulated net realized gain (loss) ...... (210,077) (238,949) (693,620) (68,365) (2,576,541) Net unrealized appreciation (depreciation) 2,064,815 1,606,093 1,773,605 1,887,153 6,985,825 ------------- ------------- ------------- ------------- ------------- Net assets applicable to common shareholders, October 31, 2003 .......................... $ 97,589,085 $ 15,007,188 $ 108,171,959 $ 20,053,261 $ 184,874,432 ============= ============= ============= ============= ============= Net asset value per common share(4) ......... $ 14.68 $ 14.90 $ 14.59 $ 15.34 $ 14.76 ============= ============= ============= ============= ============= (1) Investments at cost ..................... $ 150,817,114 $ 20,100,188 $ 167,693,029 $ 27,416,854 $ 283,378,689 (2) Preferred shares outstanding ............ 2,302 300 2,552 392 4,390 (3) Par value per share ..................... 0.001 0.01 0.001 0.01 0.001 (4) Common shares outstanding ............... 6,646,343 1,007,093 7,414,793 1,307,093 12,521,494
33 STATEMENTS OF OPERATIONS FOR THE YEAR ENDED OCTOBER 31, 2003 - --------------------------------------------------------------------------------
CALIFORNIA FLORIDA INVESTMENT INVESTMENT CALIFORNIA INVESTMENT QUALITY MUNICIPAL QUALITY MUNICIPAL QUALITY MUNICIPAL INCOME MUNICIPAL INCOME MUNICIPAL TRUST TRUST TRUST TRUST TRUST Income (BKN) (BFK) (RAA) (BFZ) (RFA) ------------ ------------ ------------ ------------ ------------- Interest Income .................................... $ 22,230,709 $ 58,258,227 $ 1,264,685 $ 18,799,325 $ 1,402,048 ------------ ------------ ------------ ------------ ------------ EXPENSES Investment advisory ................................ 1,405,041 5,815,909 77,881 2,059,350 91,213 Administration ..................................... 602,160 -- 22,252 -- 26,061 Transfer agent ..................................... 25,223 19,507 11,345 16,128 12,399 Custodian .......................................... 108,972 155,223 9,735 86,954 11,423 Reports to shareholders ............................ 56,370 112,219 13,618 41,312 13,228 Trustees/Directors ................................. 41,165 79,613 12,000 30,878 12,000 Registration ....................................... 31,500 33,865 1,861 31,500 1,861 Independent accountants ............................ 49,652 53,033 11,000 43,395 11,000 Legal .............................................. 36,831 60,393 6,000 20,673 6,000 Insurance .......................................... 17,774 58,863 989 21,606 1,182 Auction Agent ...................................... 379,982 967,393 18,772 343,702 21,269 Miscellaneous ...................................... 59,515 79,763 21,578 42,777 19,137 ------------ ------------ ------------ ------------ ------------ Total expenses ................................... 2,814,185 7,435,781 207,031 2,738,275 226,773 Less fees waived by Advisor ...................... -- (2,423,294) -- (858,062) -- Less fees paid indirectly ........................ (9,358) (6,294) -- (9,346) -- ------------ ------------ ------------ ------------ ------------ Net expenses ..................................... 2,804,827 5,006,193 207,031 1,870,867 226,773 ------------ ------------ ------------ ------------ ------------ Net investment income ................................ 19,425,882 53,252,034 1,057,654 16,928,458 1,175,275 ------------ ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investments ...................................... (3,201,148) (22,191,977) 51,040 (466,503) 248,044 Futures .......................................... 88,395 435,808 -- 342,096 -- ------------ ------------ ------------ ------------ ------------ (3,112,753) (21,756,169) 51,040 (124,407) 248,044 Net change in unrealized appreciation (depreciation) 1,574,886 37,007,594 (455,653) (5,006,045) (687,041) ------------ ------------ ------------ ------------ ------------ Net realized and unrealized gain (loss) .............. (1,537,867) 15,251,425 (404,613) (5,130,452) (438,997) ------------ ------------ ------------ ------------ ------------ DIVIDENDS TO PREFERRED SHAREHOLDERS FROM NET INVESTMENT INCOME ......................... (1,501,763) (3,836,525) (64,203) (1,214,717) (88,761) ------------ ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS .......................... $ 16,386,252 $ 64,666,934 $ 588,838 $ 10,583,289 $ 647,517 ============ ============ ============ ============ ============
See Notes to Financial Statements. 34
FLORIDA NEW JERSEY NEW JERSEY NEW YORK NEW YORK MUNICIPAL INVESTMENT QUALITY MUNICIPAL INVESTMENT QUALITY MUNICIPAL INCOME TRUST MUNICIPAL TRUST INCOME TRUST MUNICIPAL TRUST INCOME TRUST (BBF) (RNJ) (BNJ) (RNY) (BNY) Income ------------- ------------------ ------------ ------------------ ------------ Interest Income .................................... $ 8,279,511 $ 1,214,702 $ 9,473,253 $ 1,596,815 $ 15,816,161 ------------ ------------ ------------ ------------ ------------ EXPENSES Investment advisory ................................ 933,788 78,664 1,030,200 104,852 1,760,388 Administration ..................................... -- 22,475 -- 29,958 -- Transfer agent ..................................... 16,258 12,423 16,141 12,423 16,142 Custodian .......................................... 64,796 9,489 70,299 10,331 78,055 Reports to shareholders ............................ 26,833 13,207 28,663 13,267 42,382 Trustees/Directors ................................. 14,495 12,000 15,722 12,000 26,744 Registration ....................................... 24,170 1,861 24,170 1,861 31,500 Independent accountants ............................ 41,876 11,000 42,101 11,000 44,407 Legal .............................................. 13,461 6,000 13,878 6,000 19,950 Insurance .......................................... 11,555 1,003 10,985 1,355 18,797 Auction Agent ...................................... 151,041 18,772 166,633 24,490 288,191 Miscellaneous ...................................... 26,268 21,564 26,325 22,574 38,006 ------------ ------------ ------------ ------------ ------------ Total expenses ................................... 1,324,541 208,458 1,445,117 250,111 2,364,562 Less fees waived by Advisor ...................... (389,078) -- (429,250) -- (733,495) Less fees paid indirectly ........................ (11,216) -- (8,280) -- (7,633) ------------ ------------ ------------ ------------ ------------ Net expenses ..................................... 924,247 208,458 1,007,587 250,111 1,623,434 ------------ ------------ ------------ ------------ ------------ Net investment income ................................ 7,355,264 1,006,244 8,465,666 1,346,704 14,192,727 ------------ ------------ ------------ ------------ ------------ REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investments ...................................... 630,302 6,919 (29,376) 357,056 (486,109) Futures .......................................... -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ 630,302 6,919 (29,376) 357,056 (486,109) Net change in unrealized appreciation (depreciation) (777,309) 109,486 895,164 (636,582) 2,196,536 ------------ ------------ ------------ ------------ ------------ Net realized and unrealized gain (loss) .............. (147,007) 116,405 865,788 (279,526) 1,710,427 ------------ ------------ ------------ ------------ ------------ DIVIDENDS TO PREFERRED SHAREHOLDERS FROM NET INVESTMENT INCOME ......................... (521,291) (61,319) (616,370) (88,859) (1,130,137) ------------ ------------ ------------ ------------ ------------ NET INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS .......................... $ 6,686,966 $ 1,061,330 $ 8,715,084 $ 978,319 $ 14,773,017 ============ ============ ============ ============ ============
35 STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED OCTOBER 31, 2003 AND 2002 - --------------------------------------------------------------------------------
INVESTMENT MUNICIPAL QUALITY MUNICIPAL TRUST INCOME TRUST (BKN) (BFK) ------------------------------- ------------------------------- INCREASE (DECREASE) IN NET ASSETS 2003 2002 2003 2002 APPLICABLE TO COMMON SHAREHOLDERS --------------- ------------- -------------- -------------- OPERATIONS: Net investment income ....................... $ 19,425,882 $ 19,938,757 $ 53,252,034 $ 52,287,209 Net realized gain (loss) .................... (3,112,753) (369,453) (21,756,169) (15,056,085) Net change in unrealized appreciation (depreciation) ............................ 1,574,886 (4,013,001) 37,007,594 (33,446,564) Dividends to preferred shareholders from net investment income ..................... (1,501,763) (2,091,204) (3,836,525) (5,491,070) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations ............................. 16,386,252 13,465,099 64,666,934 (1,706,510) ------------- ------------- ------------- ------------- DIVIDENDS TO COMMON SHAREHOLDERS FROM NET INVESTMENT INCOME ..................... (14,781,077) (13,532,094) (41,326,371) (40,274,799) ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS: Underwriting discounts and offering costs relating to the issuance of preferred shares .................................... -- -- -- 12,275 Reinvestment of common dividends ............ -- -- 922,048 2,401,296 ------------- ------------- ------------- ------------- Net proceeds from capital share transactions .. -- -- 922,048 2,413,571 ------------- ------------- ------------- ------------- Total increase (decrease) ..................... 1,605,175 (66,995) 24,262,611 (39,567,738) ------------- ------------- ------------- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS Beginning of year ............................. 253,709,516 253,776,511 579,680,879 619,248,617 ------------- ------------- ------------- ------------- End of year ................................... $ 255,314,691 $ 253,709,516 $ 603,943,490 $ 579,680,879 ============= ============= ============= ============= End of year undistributed net investment income ........................... $ 10,109,122 $ 7,208,291 $ 14,382,973 $ 6,300,650
See Notes to Financial Statements. 36
CALIFORNIA INVESTMENT CALIFORNIA QUALITY MUNICIPAL TRUST MUNICIPAL INCOME TRUST (RAA) (BFZ) ------------------------------- ------------------------------- INCREASE (DECREASE) IN NET ASSETS 2003 2002 2003 2002 APPLICABLE TO COMMON SHAREHOLDERS --------------- ------------- -------------- -------------- OPERATIONS: Net investment income ....................... $ 1,057,654 $ 1,044,347 $ 16,928,458 $ 16,706,357 Net realized gain (loss) .................... 51,040 247,705 (124,407) (2,398,647) Net change in unrealized appreciation (depreciation) ............................ (455,653) (897,244) (5,006,045) (4,365,363) Dividends to preferred shareholders from net investment income ..................... (64,203) (90,269) (1,214,717) (1,808,646) ------------- ------------- ------------- ------------- Net increase (decrease) in net assets resulting from operations ............................. 588,838 304,539 10,583,289 8,133,701 ------------- ------------- ------------- ------------- DIVIDENDS TO COMMON SHAREHOLDERS FROM NET INVESTMENT INCOME ..................... (834,841) (803,884) (13,401,474) (13,106,112) ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS: Underwriting discounts and offering costs relating to the issuance of preferred shares .................................... -- -- -- (21,042) Reinvestment of common dividends ............ -- -- -- 380,015 ------------- ------------- ------------- ------------- Net proceeds from capital share transactions .. -- -- -- 358,973 ------------- ------------- ------------- ------------- Total increase (decrease) ..................... (246,003) (499,345) (2,818,185) (4,613,438) ------------- ------------- ------------- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS Beginning of year ............................. 14,911,455 15,410,800 212,215,182 216,828,620 ------------- ------------- ------------- ------------- End of year ................................... $ 14,665,452 $ 14,911,455 $ 209,396,997 $ 212,215,182 ============= ============= ============= ============= End of year undistributed net investment income ........................... $ 393,562 $ 236,052 $ 3,935,119 $ 1,592,801 FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST (RFA) INCREASE (DECREASE) IN NET ASSETS 2003 2002 APPLICABLE TO COMMON SHAREHOLDERS --------------- ------------- OPERATIONS: Net investment income ....................... $ 1,175,275 $ 1,178,050 Net realized gain (loss) .................... 248,044 109,254 Net change in unrealized appreciation (depreciation) ............................ (687,041) (92,970) Dividends to preferred shareholders from net investment income ..................... (88,761) (119,861) ------------- ------------- Net increase (decrease) in net assets resulting from operations ............................. 647,517 1,074,473 ------------- ------------- DIVIDENDS TO COMMON SHAREHOLDERS FROM NET INVESTMENT INCOME ..................... (939,337) (907,851) ------------- ------------- CAPITAL SHARE TRANSACTIONS: Underwriting discounts and offering costs relating to the issuance of preferred shares .................................... -- -- Reinvestment of common dividends ............ -- -- ------------- ------------- Net proceeds from capital share transactions .. -- -- ------------- ------------- Total increase (decrease) ..................... (291,820) 166,622 ------------- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS Beginning of year ............................. 17,638,840 17,472,218 ------------- ------------- End of year ................................... $ 17,347,020 $ 17,638,840 ============= ============= End of year undistributed net investment income ........................... $ 421,748 $ 307,064
37 STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED OCTOBER 31, 2003 AND 2002 - --------------------------------------------------------------------------------
FLORIDA NEW JERSEY INVESTMENT MUNICIPAL INCOME TRUST QUALITY MUNICIPAL TRUST (BBF) (RNJ) -------------------------------- -------------------------------- INCREASE (DECREASE) IN NET ASSETS 2003 2002 2003 2002 APPLICABLE TO COMMON SHAREHOLDERS -------------- --------------- -------------- --------------- OPERATIONS: Net investment income ............................ $ 7,355,264 $ 7,102,195 $ 1,006,244 $ 1,025,469 Net realized gain (loss) ......................... 630,302 (711,143) 6,919 24,648 Net change in unrealized appreciation (depreciation) ................................. (777,309) 1,525,829 109,486 (414,958) Dividends to preferred shareholders from net investment income .......................... (521,291) (764,896) (61,319) (90,295) ------------- ------------- ------------- ------------- Net increase in net assets resulting from operations .................................. 6,686,966 7,151,985 1,061,330 544,864 ------------- ------------- ------------- ------------- DIVIDENDS TO COMMON SHAREHOLDERS FROM NET INVESTMENT INCOME .......................... (5,914,155) (5,799,995) (801,290) (755,976) ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS: Underwriting discounts and offering costs relating to the issuance of preferred shares ............ -- (53,160) -- -- Reinvestment of common dividends ................. -- 394,894 -- -- ------------- ------------- ------------- ------------- Net proceeds from capital share transactions ....... -- 341,734 -- -- ------------- ------------- ------------- ------------- Total increase (decrease) .......................... 772,811 1,693,724 260,040 (211,112) ------------- ------------- ------------- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of year .................................. 96,816,274 95,122,550 14,747,148 14,958,260 ------------- ------------- ------------- ------------- End of year ........................................ $ 97,589,085 $ 96,816,274 $ 15,007,188 $ 14,747,148 ============= ============= ============= ============= End of year undistributed net investment income .... $ 1,467,876 $ 548,066 $ 550,518 $ 407,105
See Notes to Financial Statements. 38
NEW JERSEY NEW YORK INVESTMENT MUNICIPAL INCOME TRUST QUALITY MUNICIPAL TRUST (BNJ) (RNY) -------------------------------- -------------------------------- INCREASE (DECREASE) IN NET ASSETS 2003 2002 2003 2002 APPLICABLE TO COMMON SHAREHOLDERS -------------- --------------- -------------- --------------- OPERATIONS: Net investment income ............................ $ 8,465,666 $ 8,144,795 $ 1,346,704 $ 1,388,492 Net realized gain (loss) ......................... (29,376) (615,525) 357,056 17,396 Net change in unrealized appreciation (depreciation) ................................. 895,164 120,445 (636,582) 56,010 Dividends to preferred shareholders from net investment income .......................... (616,370) (914,433) (88,859) (118,520) ------------- ------------- ------------- ------------- Net increase in net assets resulting from operations .................................. 8,715,084 6,735,282 978,319 1,343,378 ------------- ------------- ------------- ------------- DIVIDENDS TO COMMON SHAREHOLDERS FROM NET INVESTMENT INCOME .......................... (6,528,221) (6,435,974) (1,146,823) (1,094,531) ------------- ------------- ------------- ------------- CAPITAL SHARE TRANSACTIONS: Underwriting discounts and offering costs relating to the issuance of preferred shares ............ -- (54,117) -- -- Reinvestment of common dividends ................. -- 651,099 -- -- ------------- ------------- ------------- ------------- Net proceeds from capital share transactions ....... -- 596,982 -- -- ------------- ------------- ------------- ------------- Total increase (decrease) .......................... 2,186,863 896,290 (168,504) 248,847 ------------- ------------- ------------- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of year .................................. 105,985,096 105,088,806 20,221,765 19,972,918 ------------- ------------- ------------- ------------- End of year ........................................ $ 108,171,959 $ 105,985,096 $ 20,053,261 $ 20,221,765 ============= ============= ============= ============= End of year undistributed net investment income .... $ 1,917,815 $ 597,996 $ 569,685 $ 492,564 NEW YORK MUNICIPAL INCOME TRUST (BNY) -------------------------------- INCREASE (DECREASE) IN NET ASSETS 2003 2002 APPLICABLE TO COMMON SHAREHOLDERS -------------- --------------- Net investment income ............................ $ 14,192,727 $ 13,690,678 Net realized gain (loss) ......................... (486,109) (2,021,656) Net change in unrealized appreciation (depreciation) ................................. 2,196,536 5,742,628 Dividends to preferred shareholders from net investment income .......................... (1,130,137) (1,615,269) ------------- ------------- Net increase in net assets resulting from operations .................................. 14,773,017 15,796,381 ------------- ------------- DIVIDENDS TO COMMON SHAREHOLDERS FROM NET INVESTMENT INCOME .......................... (11,098,501) (10,955,545) ------------- ------------- CAPITAL SHARE TRANSACTIONS: Underwriting discounts and offering costs relating to the issuance of preferred shares ............ -- (27,438) Reinvestment of common dividends ................. -- 1,276,152 ------------- ------------- Net proceeds from capital share transactions ....... -- 1,248,714 ------------- ------------- Total increase (decrease) .......................... 3,674,516 6,089,550 ------------- ------------- NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS: Beginning of year .................................. 181,199,916 175,110,366 ------------- ------------- End of year ........................................ $ 184,874,432 $ 181,199,916 ============= ============= End of year undistributed net investment income .... $ 2,832,034 $ 883,082
39 FINANCIAL HIGHLIGHTS BLACKROCK INVESTMENT QUALITY MUNICIPAL TRUST (BKN)
YEAR ENDED OCTOBER 31, ------------------------------------------------------------------- 2003 2002 2001(1) 2000(1) 1999(1) ---- ---- ----- ---- ---- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ....................... $ 15.19 $ 15.19 $ 14.30 $ 13.95 $ 15.78 -------- -------- -------- -------- -------- Investment operations: Net investment income .................................. 1.16 1.20 1.20 1.13 1.09 Net realized and unrealized gain (loss) ................ (0.09) (0.26) 0.75 0.43 (1.63) Dividends and distributions to preferred shareholders: Net investment income ................................ (0.09) (0.13) (0.29) (0.35) (0.24) Net realized gain .................................... -- -- -- -- (0.04) -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ........ 0.98 0.81 1.66 1.21 (0.82) -------- -------- -------- -------- -------- Dividends and distributions to common shareholders: Net investment income .................................. (0.89) (0.81) (0.78) (0.83) (0.86) Net realized gain ...................................... -- -- -- -- (0.15) -------- -------- -------- -------- -------- Total dividends and distributions ......................... (0.89) (0.81) (0.78) (0.83) (1.01) -------- -------- -------- -------- -------- Capital charges with respect to issuance of: Preferred shares ....................................... -- -- 0.01 (0.03) -- -------- -------- -------- -------- -------- Net asset value, end of year .............................. $ 15.28 $ 15.19 $ 15.19 $ 14.30 $ 13.95 ======== ======== ======== ======== ======== Market value, end of year ................................. $ 14.26 $ 13.48 $ 13.73 $ 12.13 $ 13.13 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ................................ 12.67% 4.14% 20.03% (1.27)% (9.03)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses after fees waived and paid indirectly ............ 1.10% 1.09% 1.14% 1.20% 1.05% Expenses before fees waived and paid indirectly ........... 1.10% 1.09% 1.14% 1.20% 1.05% Net investment income after fees waived and paid indirectly and before preferred share dividends ... 7.62% 7.93% 8.10% 8.18% 7.21% Preferred share dividends ................................. 0.59% 0.83% 1.94% 2.53% 1.60% Net investment income available to common shareholders .... 7.03% 7.10% 6.16% 5.65% 5.61% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ........... $254,890 $251,428 $247,832 $230,746 $252,536 Portfolio turnover ........................................ 36% 19% 4% 35% 26% Net assets of common shareholders, end of year (000) ...... $255,315 $253,710 $253,777 $238,849 $233,085 Preferred shares outstanding (000) ........................ $146,550 $146,550 $146,550 $146,550 $130,000 Asset coverage per preferred share, end of year ........... $ 68,561 $ 68,292 $ 68,308 $ 65,745 $ 69,824
_____________ (1) Amounts have been reclassified to conform to the presentation under the provisions of EITF D-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. The information in the above Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 40 FINANCIAL HIGHLIGHTS BLACKROCK MUNICIPAL INCOME TRUST (BFK)
FOR THE PERIOD YEAR ENDED OCTOBER 31, JULY 27, 2001(1) ---------------------------- THROUGH 2003 2002 OCTOBER 31, 2001(2,3) ----- ----- ---------------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period ........................... $ 13.33 $ 14.30 $ 14.33(4) -------- -------- -------- Investment operations: Net investment income ....................................... 1.23 1.20 0.17 Net realized and unrealized gain (loss) ..................... 0.35 (1.11) 0.12 Dividends and distributions to preferred shareholders: Net investment income ..................................... (0.09) (0.13) (0.01) -------- -------- -------- Net increase (decrease) from investment operations ............. 1.49 (0.04) 0.28 -------- -------- -------- Dividends and distributions to common shareholders: Net investment income ....................................... (0.95) (0.93) (0.16) In excess of net investment income .......................... -- -- (0.01) -------- -------- -------- Total dividends and distributions .............................. (0.95) (0.93) (0.17) -------- -------- -------- Capital charges with respect to issuance of: Common shares ............................................... -- -- (0.03) Preferred shares ............................................ -- -- (0.11) -------- -------- -------- Total capital changes .......................................... -- -- (0.14) -------- -------- -------- Net asset value, end of period ................................. $ 13.87 $ 13.33 $ 14.30 ======== ======== ======== Market value, end of period .................................... $ 13.70 $ 13.46 $ 14.75 ======== ======== ======== TOTAL INVESTMENT RETURN(5) ..................................... 9.21% (2.40)% (1.13)% ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(6) Expenses after fees waived and paid indirectly ................. 0.84% 0.81% 0.61%(7) Expenses before fees waived and paid indirectly ................ 1.25% 1.23% 0.91%(7) Net investment income after fees waived and paid indirectly and before preferred share dividends ........................ 8.96% 8.74% 4.59%(7) Preferred share dividends ...................................... 0.65% 0.92% 0.38%(7) Net investment income available to common shareholders ......... 8.31% 7.82% 4.21%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ................ $594,192 $598,425 $572,610 Portfolio turnover ............................................. 56% 70% 27% Net assets of common shareholders, end of period (000) ......... $603,943 $579,681 $619,249 Preferred shares outstanding (000) ............................. $375,125 $375,125 $375,125 Asset coverage per preferred share, end of period .............. $ 65,251 $ 63,636 $ 66,275
_______________ (1) Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. (2) Calculated using the average shares outstanding method. (3) Amounts have been reclassified to conform to the presentation under the provisions of EITF D-98. (4) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (5) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (6) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (7) Annualized. The information in the above Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 41 FINANCIAL HIGHLIGHTS BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST (RAA)
YEAR ENDED OCTOBER 31, ------------------------------------------------------------------- 2003 2002 2001(1) 2000(1) 1999(1) ---- ---- ---- ---- ---- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ....................... $ 14.81 $ 15.30 $ 14.62 $ 14.34 $ 15.49 -------- -------- -------- -------- -------- Investment operations: Net investment income ................................. 1.05 1.04 1.05 1.06 1.05 Net realized and unrealized gain (loss) ............... (0.41) (0.64) 0.63 0.29 (1.10) Dividends to preferred shareholders from net investment income .......................... (0.06) (0.09) (0.21) (0.25) (0.22) -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ....... 0.58 0.31 1.47 1.10 (0.27) -------- -------- -------- -------- -------- Dividends to common shareholders from net investment income ..................................... (0.83) (0.80) (0.79) (0.82) (0.88) -------- -------- -------- -------- -------- Net asset value, end of year ............................. $ 14.56 $ 14.81 $ 15.30 $ 14.62 $ 14.34 ======== ======== ======== ======== ======== Market price, end of year ................................ $ 14.03 $ 13.38 $ 15.55 $ 14.00 $ 15.50 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ............................... 11.38% (9.26)% 17.03% (4.33)% 1.52% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses ................................................. 1.40% 1.29% 1.38% 1.41% 1.34% Net investment income before preferred share dividends ... 7.17% 6.86% 7.04% 7.36% 6.95% Preferred share dividends ................................ 0.44% 0.59% 1.39% 1.75% 1.47% Net investment income available to common shareholders ... 6.73% 6.27% 5.65% 5.61% 5.48% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) .......... $ 14,752 $ 15,221 $15,072 $14,450 $15,170 Portfolio turnover ....................................... 6% 30% 1% 0% 4% NET ASSETS OF COMMON SHAREHOLDERS, END OF YEAR (000) ..... $ 14,665 $14,911 $15,411 $14,725 $14,439 Preferred shares outstanding (000) ....................... $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 Asset coverage per preferred share, end of year .......... $ 73,886 $ 74,706 $ 76,377 $74,097 $ 73,138
_________________ (1) Amounts have been reclassified to conform to the presentation under the provisions of EITF D-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. The information in the above Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 42 FINANCIAL HIGHLIGHTS BLACKROCK CALIFORNIA MUNICIPAL INCOME TRUST (BFZ)
FOR THE PERIOD YEAR ENDED OCTOBER 31, JULY 27, 2001(1) ----------------------------- THROUGH 2003 2002 OCTOBER 31, 2001(2,3) ----- ----- ----------------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period .............................. $ 14.16 $ 14.50 $ 14.33(4) -------- -------- -------- Investment operations: Net investment income .......................................... 1.12 1.11 0.16 Net realized and unrealized gain (loss) ........................ (0.34) (0.46) 0.32 Dividends and distributions to preferred shareholders: Net investment income ........................................ (0.08) (0.12) (0.01) -------- -------- -------- Net increase (decrease) from investment operations ................ 0.70 0.53 0.47 -------- -------- -------- Dividends and distributions to common shareholders: Net investment income .......................................... (0.89) (0.87) (0.15) In excess of net investment income ............................. -- -- (0.01) -------- -------- -------- Total dividends and distributions ................................. (0.89) (0.87) (0.16) -------- -------- -------- Capital charge with respect to issuance of: Common shares .................................................. -- -- (0.03) Preferred shares ............................................... -- -- (0.11) -------- -------- -------- Total capital charges ............................................. -- -- (0.14) ======== ======== ======== Net asset value, end of period .................................... $ 13.97 $ 14.16 $ 14.50 ======== ======== ======== Market value, end of period ....................................... $ 13.21 $ 13.09 $ 14.75 ======== ======== ======== TOTAL INVESTMENT RETURN(5) ........................................ 7.92% (5.49)% (1.17)% ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(6) Expenses after fees waived and paid indirectly .................... 0.89% 0.88% 0.72%(7) Expenses before fees waived and paid indirectly ................... 1.30% 1.31% 1.02%(7) Net investment income after fees waived and paid indirectly and before preferred share dividends ........................... 8.01% 7.96% 4.06%(7) Preferred share dividends ......................................... 0.57% 0.86% 0.38%(7) Net investment income available to common shareholders ............ 7.44% 7.10% 3.68%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ................... $211,275 $209,965 $199,356 Portfolio turnover ................................................ 34% 44% 16% Net assets of common shareholders, end of period (000) ............ $209,397 $212,215 $216,829 Preferred shares outstanding (000) ................................ $131,950 $131,950 $131,950 Asset coverage per preferred share, end of period ................. $ 64,675 $ 65,211 $ 66,086
________________ (1) Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. (2) Calculated using the average shares outstanding method. (3) Amounts have been reclassified to conform to the presentation under the provisions of EITF D-98. (4) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (5) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (6) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. (7) Annualized. The information in the above Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 43 FINANCIAL HIGHLIGHTS BLACKROCK FLORIDA INVESTMENT QUALITY MUNICIPAL TRUST (RFA)
YEAR ENDED OCTOBER 31, ------------------------------------------------------------------- 2003 2002 2001(1) 2000(1) 1999(1) ---- ---- ---- ---- ---- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ....................... $ 15.65 $ 15.50 $ 14.65 $ 14.29 $ 15.69 -------- -------- -------- -------- -------- Investment operations: Net investment income ................................. 1.04 1.05 1.03 1.07 1.05 Net realized and unrealized gain (loss) ............... (0.39) 0.02 0.86 0.40 (1.41) Dividends to preferred shareholders from net investment income .......................... (0.08) (0.11) (0.24) (0.31) (0.24) -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ....... 0.57 0.96 1.65 1.16 (0.60) -------- -------- -------- -------- -------- Dividends to common shareholders from net investment income .................................... (0.83) (0.81) (0.80) (0.80) (0.80) -------- -------- -------- -------- -------- Net asset value, end of year ............................. $ 15.39 $ 15.65 $ 15.50 $ 14.65 $ 14.29 ======== ======== ======== ======== ======== Market price, end of year ................................ $ 14.47 $ 14.50 $ 14.36 $ 13.13 $ 12.81 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ............................... 5.52% 6.52% 15.65% 9.00% (10.60)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses ................................................. 1.29% 1.20% 1.38% 1.22% 1.27% Net investment income before preferred share dividends ... 6.69% 6.76% 6.83% 7.48% 7.11% Preferred share dividends ................................ 0.51% 0.69% 1.58% 2.18% 1.64% Net investment income available to common shareholders ... 6.18% 6.07% 5.25% 5.30% 5.47% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) .......... $ 17,561 $ 17,427 $ 17,046 $ 16,167 $ 16,736 Portfolio turnover ....................................... 17% 8% 0% 0% 0% Net assets of common shareholders, end of year (000) ..... $ 17,347 $ 17,639 $ 17,472 $ 16,509 $ 16,110 Preferred shares outstanding (000) ....................... $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ 8,500 Asset coverage per preferred share, end of year .......... $ 76,021 $ 76,886 $ 76,397 $ 73,570 $ 72,390
_________________ (1) Amounts have been reclassified to conform to the presentation under the provisions of EITFD-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of common shareholders. The information in the above Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 44 FINANCIAL HIGHLIGHTS BLACKROCK FLORIDA MUNICIPAL INCOME TRUST (BBF)
FOR THE PERIOD YEAR ENDED OCTOBER 31, JULY 27, 2001(1) ------------------------------- THROUGH 2003 2002 OCTOBER 31, 2001(2,3) ----- ----- ----------------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period ............................... $ 14.57 $ 14.37 $ 14.33(4) ------- ------- ------- Investment operations: Net investment income ........................................... 1.11 1.07 0.17 Net realized and unrealized gain (loss) ......................... (0.03) 0.13 0.18 Dividends and distributions to preferred shareholders: Net investment income ......................................... (0.08) (0.12) (0.01) ------- ------- ------- Net increase (decrease) from investment operations ................. 1.00 1.08 0.34 ------- ------- ------- Dividends and distributions to common shareholders: Net investment income ........................................... (0.89) (0.87) (0.16) In excess of net investment income .............................. -- -- -- ------- ------- ------- Total dividends and distributions .................................. (0.89) (0.87) (0.16) ------- ------- ------- Capital charge with respect to issuance of: Common shares ................................................... -- -- (0.03) Preferred shares ................................................ -- (0.01) (0.11) ------- ------- ------- Total capital charges .............................................. -- (0.01) (0.14) ------- ------- ------- Net asset value, end of period ..................................... $ 14.68 $ 14.57 $ 14.37 ======= ======= ======= Market value, end of period ........................................ $ 13.36 $ 13.65 $ 14.50 ======= ======= ======= TOTAL INVESTMENT RETURN(5) ......................................... 4.30% 0.16% (2.84)% ======= ======= ======= RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(6) Expenses after fees waived and paid indirectly ..................... 0.94% 0.96% 0.87%(7) Expenses before fees waived and paid indirectly .................... 1.35% 1.38% 1.17%(7) Net investment income after fees waived and paid indirectly and before preferred share dividends ............................ 7.50% 7.59% 4.43%(7) Preferred share dividends .......................................... 0.53% 0.82% 0.37%(7) Net investment income available to common shareholders ............. 6.97% 6.77% 4.06%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) .................... $98,081 $93,558 $87,918 Portfolio turnover ................................................. 19% 35% 28% Net assets of common shareholders, end of period (000) ............. $97,589 $96,816 $95,123 Preferred shares outstanding (000) ................................. $57,550 $57,550 $57,550 Asset coverage per preferred share, end of period .................. $67,394 $67,060 $66,323
_________________ (1) Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. (2) Calculated using the average shares outstanding method. (3) Amounts have been reclassified to conform to the presentation under the provisions of EITF D-98. (4) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (5) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (6) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (7) Annualized. The information in the above Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market value data for the Trust's common shares. See Notes to Financial Statements. 45 FINANCIAL HIGHLIGHTS BLACKROCK NEW JERSEY INVESTMENT QUALITY MUNICIPAL TRUST (RNJ)
YEAR ENDED OCTOBER 31, ------------------------------------------------------------------- 2003 2002 2001(1) 2000(1) 1999(1) ---- ---- ----- ---- ---- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ....................... $ 14.64 $ 14.85 $ 13.96 $ 13.52 $ 14.95 -------- -------- -------- -------- -------- INVESTMENT OPERATIONS: Net investment income ................................. 1.00 1.02 0.96 1.01 1.00 Net realized and unrealized gain (loss) ............... 0.12 (0.39) 0.87 0.43 (1.47) Dividends to preferred shareholders from net investment income .......................... (0.06) (0.09) (0.21) (0.27) (0.23) -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ....... 1.06 0.54 1.62 1.17 (0.70) -------- -------- -------- -------- -------- Dividends to common shareholders from net investment income ..................................... (0.80) (0.75) (0.73) (0.73) (0.73) -------- -------- -------- -------- -------- Net asset value, end of year ............................. $ 14.90 $ 14.64 $ 14.85 $ 13.96 $ 13.52 ======== ======== ======== ======== ======== Market price, end of year ................................ $ 14.80 $ 13.30 $ 13.75 $ 12.13 $ 12.25 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ............................... 17.59% 2.07% 19.63% 5.08% (8.77)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses ................................................. 1.39% 1.31% 1.54% 1.32% 1.29% Net investment income before preferred share dividends ... 6.72% 6.93% 6.64% 7.44% 6.94% Preferred share dividends ................................ 0.41% 0.61% 1.47% 1.98% 1.59% Net investment income available to common shareholders ................................... 6.31% 6.32% 5.17% 5.46% 5.35% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) .................................... $14,975 $14,791 $14,570 $13,696 $14,550 Portfolio turnover ....................................... 4% 14% 9% 23% 17% Net assets of common shareholders, end of year (000) ..... $15,007 $14,747 $14,958 $14,059 $13,620 Preferred shares outstanding (000) ....................... $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 Asset coverage per preferred share, end of year .......... $75,026 $74,159 $74,862 $71,879 $70,409
__________________ (1) Amounts have been reclassified to conform to the presentation under the provisions of EITF D-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. The information in the above Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 46 FINANCIAL HIGHLIGHTS - -------------------------------------------------------------------------------- BLACKROCK NEW JERSEY MUNICIPAL INCOME TRUST (BNJ)
FOR THE PERIOD YEAR ENDED OCTOBER 31, JULY 27, 2001(1) ------------------------------- THROUGH 2003 2002 OCTOBER 31, 2001(2,3) ----- ----- ----------------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period .................................. $ 14.29 $ 14.26 $ 14.33(4) -------- -------- -------- Investment operations: Net investment income .............................................. 1.15 1.10 0.14 Net realized and unrealized gain (loss) ............................ 0.11 (0.07) 0.10 Dividends and distributions to preferred shareholders: Net investment income ............................................ (0.08) (0.12) (0.01) -------- -------- -------- Net increase (decrease) from investment operations .................... 1.18 0.91 0.23 -------- -------- -------- Dividends to common shareholders: Net investment income .............................................. (0.88) (0.87) (0.13) In excess of net investment income ................................. -- -- (0.03) -------- -------- -------- Total dividends and distributions ..................................... (0.88) (0.87) (0.16) -------- -------- -------- Capital charge with respect to issuance of: Common shares ...................................................... -- -- (0.03) Preferred shares ................................................... -- (0.01) (0.11) -------- -------- -------- Total capital charges ................................................. -- (0.01) (0.14) -------- -------- -------- Net asset value, end of period ........................................ $ 14.59 $ 14.29 $ 14.26 ======== ======== ======== Market value, end of period ........................................... $ 14.04 $ 13.64 $ 14.84 ======== ======== ======== TOTAL INVESTMENT RETURN(5) ............................................ 9.59% (2.25)% (0.56)% ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(6) Expenses after fees waived and paid indirectly ........................ 0.93% 0.93% 0.83%(7) Expenses before fees waived and paid indirectly ....................... 1.34% 1.37% 1.12%(7) Net investment income after fees waived and paid indirectly and before preferred share dividends ............................... 7.85% 7.81% 3.67%(7) Preferred share dividends ............................................. 0.57% 0.88% 0.37%(7) Net investment income available to common shareholders ................ 7.28% 6.93% 3.30%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ....................... $107,900 $104,241 $ 97,050 Portfolio turnover .................................................... 13% 50% 16% Net assets of common shareholders, end of period (000) ................ $108,172 $105,985 $105,089 Preferred shares outstanding (000) .................................... $ 63,800 $ 63,800 $ 63,800 Asset coverage per preferred share, end of period ..................... $ 67,387 $ 66,538 $ 66,187
________________ (1) Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. (2) Calculated using the average shares outstanding method. (3) Amounts have been reclassified to conform to the presentation under the provisions of EITF D-98. (4) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (5) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (6) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (7) Annualized. The information in the above Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 47 FINANCIAL HIGHLIGHTS BLACKROCK NEW YORK INVESTMENT QUALITY MUNICIPAL TRUST (RNY)
YEAR ENDED OCTOBER 31, ------------------------------------------------------------------- 2003 2002 2001(1) 2000(1) 1999(1) ---- ---- ---- ---- ---- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of year ....................... $ 15.47 $ 15.28 $ 14.55 $ 14.11 $ 15.58 -------- -------- -------- -------- -------- Investment operations: Net investment income ................................. 1.03 1.06 1.06 1.08 1.08 Net realized and unrealized gain (loss) ............... (0.21) 0.06 0.70 0.44 (1.50) Dividends to preferred shareholders from net investment income .......................... (0.07) (0.09) (0.21) (0.26) (0.23) -------- -------- -------- -------- -------- Net increase (decrease) from investment operations ....... 0.75 1.03 1.55 1.26 (0.65) -------- -------- -------- -------- -------- Dividends to common shareholders from net investment income ..................................... (0.88) (0.84) (0.82) (0.82) (0.82) -------- -------- -------- -------- -------- Net asset value, end of period ........................... $ 15.34 $ 15.47 $ 15.28 $ 14.55 $ 14.11 ======== ======== ======== ======== ======== Market value, end of period .............................. $ 14.18 $ 14.40 $ 14.20 $ 12.63 $ 13.63 ======== ======== ======== ======== ======== TOTAL INVESTMENT RETURN(2) ............................... 4.69% 7.42% 19.20% (1.21)% (4.86)% ======== ======== ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(3) Expenses ................................................. 1.24% 1.17% 1.31% 1.21% 1.09% Net investment income before preferred share dividends ... 6.68% 6.97% 7.06% 7.63% 7.13% Preferred share dividends ................................ 0.44% 0.60% 1.40% 1.83% 1.50% Net investment income available to common shareholders ... 6.24% 6.37% 5.66% 5.81% 5.63% SUPPLEMENTAL DATA: Average net assets of common shareholders (000) .......... $20,158 $19,915 $19,663 $18,523 $19,791 Portfolio turnover ....................................... 36% 7% 0% 22% 0% Net assets of common shareholders, end of year (000) ..... $20,053 $20,222 $19,973 $19,016 $18,443 Preferred shares outstanding (000) ....................... $ 9,800 $ 9,800 $ 9,800 $ 9,800 $ 9,800 Asset coverage per preferred share, end of year .......... $76,159 $76,590 $75,955 $73,516 $72,048
________________ (1) Amounts have been reclassified to conform to the presentation under the provisions of EITF D-98. (2) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each year reported. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (3) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. The information in the above Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each year indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 48 FINANCIAL HIGHLIGHTS BLACKROCK NEW YORK MUNICIPAL INCOME TRUST (BNY)
FOR THE PERIOD YEAR ENDED OCTOBER 31, JULY 27, 2001(1) ---------------------------- THROUGH 2003 2002 OCTOBER 31, 2001(2,3) ----- ----- ----------------- PER COMMON SHARE OPERATING PERFORMANCE: Net asset value, beginning of period ................................ $ 14.47 $ 14.09 $ 14.33(4) -------- -------- -------- Investment operations: Net investment income ............................................ 1.14 1.09 0.15 Net realized and unrealized gain (loss) .......................... 0.13 0.29 (0.08) Dividends and distributions to preferred shareholders: Net investment income .......................................... (0.09) (0.13) (0.01) -------- -------- -------- Net increase (decrease) from investment operations .................. 1.18 1.25 0.06 -------- -------- -------- Dividends and distributions to common shareholders: Net investment income .......................................... (0.89) (0.87) (0.14) In excess of net investment income ............................. -- -- (0.02) -------- -------- -------- Total dividends and distributions ................................... (0.89) (0.87) (0.16) -------- -------- -------- Capital charge with respect to issuance of: Common shares .................................................... -- -- (0.03) Preferred shares ................................................. -- -- (0.11) -------- -------- -------- Total capital charges ............................................... -- -- (0.14) -------- -------- -------- Net asset value, end of period ...................................... $ 14.76 $ 14.47 $ 14.09 ======== ======== ======== Market value, end of period ......................................... $ 13.45 $ 13.42 $ 14.62 ======== ======== ======== TOTAL INVESTMENT RETURN(5) .......................................... 6.95% (2.25)% (5.58)% ======== ======== ======== RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS:(6) Expenses after fees waived and paid indirectly ...................... 0.88% 0.90% 0.73%(7) Expenses before fees waived and paid indirectly ..................... 1.29% 1.33% 1.03%(7) Net investment income after fees waived and paid indirectly and before preferred share dividends ............................. 7.73% 7.87% 3.93%(7) Preferred share dividends ........................................... 0.62% 0.93% 0.37%(7) Net investment income available to common shareholders .............. 7.11% 6.94% 3.56%(7) SUPPLEMENTAL DATA: Average net assets of common shareholders (000) ..................... $183,648 $173,885 $163,077 Portfolio turnover .................................................. 14% 57% 2% Net assets of common shareholders, end of period (000) .............. $184,874 $181,200 $175,110 Preferred shares outstanding (000) .................................. $109,750 $109,750 $109,750 Asset coverage per preferred share, end of period ................... $ 67,115 $ 66,279 $ 64,894
___________________ (1) Commencement of investment operations. This information includes the initial investment by BlackRock Funding, Inc. (2) Calculated using the average shares outstanding method. (3) Amounts have been reclassified to conform to the presentation under the provisions of EITF D-98. (4) Net asset value, beginning of period, reflects a deduction of $0.675 per share sales charge from the initial offering price of $15.00 per share. (5) Total investment return is calculated assuming a purchase of a common share at the current market price on the first day and a sale at the current market price on the last day of each period reported. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Trust's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions. Total investment returns for less than a full year are not annualized. Past performance is not a guarantee of future results. (6) Ratios are calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the average net assets of the common shareholders. (7) Annualized. The information in the above Financial Highlights represents the audited operating performance for a common share outstanding, total investment returns, ratios to average net assets and other supplemental data for each period indicated. This information has been determined based upon financial information provided in the financial statements and market price data for the Trust's common shares. See Notes to Financial Statements. 49 NOTES TO FINANCIAL STATEMENTS - -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION & ACCOUNTING POLICIES The BlackRock Investment Quality Municipal Trust Inc. ("Municipal Investment Quality") was organized as a Maryland corporation on November 19, 1992. The BlackRock California Investment Quality Municipal Trust Inc. ("California Investment Quality"), The BlackRock New Jersey Investment Quality Municipal Trust Inc. ("New Jersey Investment Quality") and The BlackRock New York Investment Quality Municipal Trust Inc. ("New York Investment Quality") were organized as Maryland corporations on April 12, 1993. The BlackRock Florida Investment Quality Municipal Trust ("Florida Investment Quality") was organized as a Massachusetts business trust on April 15, 1993. BlackRock Municipal Income Trust ("Municipal Income"), BlackRock California Municipal Income Trust ("California Income"), BlackRock Florida Municipal Income Trust ("Florida Income"), BlackRock New Jersey Municipal Income Trust ("New Jersey Income") and BlackRock New York Municipal Income Trust ("New York Income") (collectively the "Income Trusts") were organized as Delaware statuatory trusts on March 30, 2001. Municipal Investment Quality and Municipal Income are registered as diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended. California Investment Quality, California Income, Florida Investment Quality, Florida Income, New Jersey Investment Quality, New Jersey Income, New York Investment Quality and New York Income are registered as non-diversified, closed-end management investment companies under the Investment Company Act of 1940, as amended. Municipal Investment Quality, California Investment Quality, Florida Investment Quality, New Jersey Investment Quality and New York Investment Quality are herein referred to as the Investment Quality Trusts. The ability of issuers of debt securities held by each Trust to meet their obligations may be affected by economic developments in a state, a specific industry or region. The following is a summary of significant accounting policies followed by the Trusts. SECURITIES VALUATION: Municipal securities (including commitments to purchase such securities 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 of Trustees or Board of Directors as the case may be (each, a "Board"). In determining the value of a particular security, pricing services may use certain information with respect to transactions in such securities, quotations from bond dealers, market transactions in comparable securities and various relationships between securities. Short-term investments may be valued at amortized cost. Investments in other investment companies are valued at net asset value. Any securities or other assets for which such current market quotations are not readily available are valued at fair value as determined in good faith under procedures established by, and under the general supervision and responsibility of, each Trust's Board. SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are recorded on trade date. Realized and unrealized gains and losses are calculated on the identified cost basis. Each Trust also records interest income on an accrual basis and amortizes premium and/or accretes discount on securities purchased using the interest method. FINANCIAL FUTURES CONTRACTS: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by "marking-to-market" on a daily basis to reflect the market value of the contract at the end of each day's trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Trust records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Trust's basis in the contract. Financial futures contracts, when used by the Trusts, help in maintaining a targeted duration. Futures contracts can be sold to effectively shorten an otherwise longer duration portfolio. In the same sense, futures contracts can be purchased to lengthen a portfolio that is shorter than its duration target. Thus, by buying or selling futures contracts, the Trusts may attempt to manage the duration of positions so that changes in interest rates do not change the duration of the portfolio unexpectedly. At October 31, 2003, there were no open financial futures contracts in any of the Trusts. SEGREGATION: In cases in which the Investment Company Act of 1940, as amended, and the interpretive positions of the Securities and Exchange Commission ("SEC") require that each Trust segregate assets in connection with certain investments (e.g., when issued securities, reverse repurchase agreements or futures contracts), each Trust will, consistent with certain interpretive letters issued by the SEC, designate on its books and records cash or other liquid debt securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. FEDERAL INCOME TAXES: It is each Trust's intention to continue to be treated as a regulated investment company under the Internal Revenue Code and to distribute sufficient net income to shareholders. For this reason and because substantially all of the gross income of each Trust consists of tax-exempt interest, no Federal income tax provisions are required. DIVIDENDS AND DISTRIBUTIONS: Each Trust declares and pays dividends and distributions to common shareholders monthly from net investment income, net realized short-term capital gains and other sources, if necessary. Net long-term capital gains, if any, in excess of loss carryforwards may be distributed annually. Dividends and distributions are recorded on the ex-dividend date. Dividends and distributions to preferred shareholders are accrued and determined as described in Note 4. ESTIMATES: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. 50 DEFERRED COMPENSATION AND BLACKROCK CLOSED-END SHARE EQUIVALENT INVESTMENT PLAN: Under the revised deferred compensation plan approved by each Trust's Board, non-interested Trustees/Directors may elect to defer receipt of all or a portion of their annual compensation. As of January 1, 2003, the Board elected to require its non-interested members to defer a portion of their annual complex compensation pursuant to the plan. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of other BlackRock closed-end funds selected by the Trustees/Directors. This has the same economic effect for the Trustees/Directors as if the Trustees/Directors had invested the deferred amounts in such Trusts. The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Trust. Each Trust may, however, elect to invest in common shares of those Trusts selected by the Trustees/Directors in order to match its deferred compensation obligations. RECLASSIFICATION OF CAPITAL ACCOUNTS: In order to present undistributed (distribution in excess of) net investment income ("UNII"), accumulated net realized gain ("Accumulated Gain") and paid-in capital ("PIC") more closely to its tax character the following accounts, for each Trust, were increased (decreased): TRUST UNII ACCUMULATED GAIN PIC - ----- --------- ---------------- ----- Municipal Investment Quality ($242,211) $242,211 $ -- Municipal Income (6,815) 6,815 -- California Investment Quality (1,136) 1,136 -- California Income 30,051 (30,051) -- Florida Investment Quality (32,493) 32,493 -- Florida Income (8) 8 -- New Jersey Investment Quality (222) 274,102 (273,880) New Jersey Income (1,256) 1,256 -- New York Investment Quality (33,901) 33,901 -- New York Income (15,137) 138 14,999 NOTE 2. AGREEMENTS Each Trust has an Investment Management Agreement with BlackRock Advisors, Inc. (the "Advisor"), which is a wholly owned subsidiary of BlackRock, Inc. BlackRock Financial Management, Inc., a wholly owned subsidiary of BlackRock, Inc., serves as sub-advisor to the Income Trusts. BlackRock, Inc. is an indirect, majority owned subsidiary of The PNC Financial Services Group, Inc. The investment management agreement on the Income Trusts covers both investment advisory and administration services. Municipal Investment Quality had an Administration Agreement with Princeton Administrators, L.P. ("Princeton"), an indirect wholly owned affiliate of Merrill Lynch & Co., Inc. California Investment Quality, Florida Investment Quality, New Jersey Investment Quality and New York Investment Quality had an Administration Agreement with Prudential Investments LLC ("Prudential"), an indirect wholly owned subsidiary of Prudential Financial, Inc. Each Trust's investment advisory fee paid to the Advisor is computed weekly and payable monthly based on an annual rate, 0.35% for the Investment Quality Trusts and 0.60% for the Income Trusts, of the Trust's average weekly managed assets. The Advisor has voluntarily agreed to waive a portion of the investment advisory fee or other expenses on the Income Trusts as a percentage of managed assets as follows: 0.25% for the first five years of each of the Trust's operations, 0.20% in year six, 0.15% in year seven, 0.10% in year eight and 0.05% in year nine. The administration fee paid to each Trust's respective administrator is computed weekly and payable monthly based on an annual rate, 0.15% to Princeton and 0.10% to Prudential, on other than the Income Trusts, of the Trust's average weekly managed assets. The administration fee paid to Princeton is subject to a minimum monthly fee of $12,500. On May 22, 2003, the Board approved the change of the current administrators to the Advisor. The new administration agreements became effective August 18, 2003. The administration fee structures for each Trust, as described above, will remain unchanged under the new administration agreement. Pursuant to the agreements, the Advisor provides continuous supervision of the investment portfolio and pays the compensation of officers of each Trust who are affiliated persons of the Advisor. The Advisor pays occupancy and certain clerical and accounting costs for Core Bond and Strategic Bond. Each Trust's respective administrator pays occupancy and certain clerical and accounting costs of their respective Trust(s). Each Trust bears all other costs and expenses, which include reimbursements to the Advisor for certain operational support services provided to each Trust. Pursuant to the terms of the custody agreement, Municipal Investment Quality, Municipal Income, California Income, Florida Income, New Jersey Income and New York Income received earning credits from its custodian for positive cash balances maintained, which are used to offset custody fees. NOTE 3. PORTFOLIO SECURITIES Purchases and sales of investment securities, other than short-term investments, for the year ended October 31, 2003, were as follows:
TRUST PURCHASES SALES TRUST PURCHASES SALES - ----- ------------ ------------ ----- ----------- ----------- Municipal Investment Quality $141,091,937 $141,815,440 Florida Income $30,866,312 $28,318,312 Municipal Income 524,386,011 560,341,635 New Jersey Investment Quality 952,500 1,647,625 California Investment Quality 1,282,804 2,580,516 New Jersey Income 23,593,650 22,601,511 California Income 115,384,159 117,329,989 New York Investment Quality 10,755,624 10,276,613 Florida Investment Quality 4,447,330 6,063,323 New York Income 41,994,218 41,002,137
51 At October 31, 2003, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for securities held by each Trust were as follows:
TRUST COST APPRECIATION DEPRECIATION NET - ----- ------------ ------------ ------------ ----------- Municipal Investment Quality $372,449,933 $25,486,865 $ 3,087,505 $22,399,360 Municipal Income 952,625,345 19,763,972 10,878,862 8,885,110 California Investment Quality 20,612,130 1,243,869 392,454 851,415 California Income 347,046,320 5,438,654 10,088,694 (4,650,040) Florida Investment Quality 23,001,208 1,785,997 145,678 1,640,319 Florida Income 150,834,820 3,350,309 1,303,200 2,047,109 New Jersey Investment Quality 20,061,196 1,839,973 194,888 1,645,085 New Jersey Income 167,671,699 3,978,915 2,183,980 1,794,935 New York Investment Quality 27,406,912 1,976,926 79,831 1,897,095 New York Income 283,379,170 9,698,241 2,712,897 6,985,344
For Federal income tax purposes, the following Trusts had capital loss carryforwards at October 31, 2003. These amounts may be used to offset future realized capital gains, if any:
CAPITAL LOSS CAPITAL LOSS CARRYFORWARD CARRYFORWARD TRUST AMOUNT EXPIRES TRUST AMOUNT EXPIRES - ----- ------------ ------- ----- ------------ ------- Municipal Investment Quality $ 2,870,542 2011 New Jersey Investment Quality $ 228,242 2008 324,268 2010 6,166 2004 133,706 2009 ----------- 5,068,444 2008 $ 234,408 312,281 2007 =========== ----------- New Jersey Income $ 28,207 2011 $ 8,709,241 615,438 2010 =========== 49,975 2009 Municipal Income $21,749,392 2011 ----------- 15,055,804 2010 $ 693,620 526,271 2009 =========== ----------- New York Investment Quality $ 68,365 2008 $37,331,467 =========== =========== New York Income $2,021,656 2011 California Income $ 124,333 2011 68,166 2010 2,398,646 2010 ----------- ----------- $2,089,822 2,522,984 =========== =========== Florida Investment Quality -- -- Florida Income $ 192,363 2010 ===========
Accordingly, no capital gain distributions are expected to be paid to shareholders of a Trust until that Trust has net realized capital gains in excess of its capital loss carryforward amounts. New York Income's tax year end is July 31st. NOTE 4. CAPITAL There are 200 million of $0.01 par value common shares authorized for each of the Investment Quality Trusts. There are an unlimited number of $0.001 par value common shares authorized for the Income Trusts. Each Trust may classify or reclassify any unissued common shares into one or more series of preferred shares. At October 31, 2003, the common shares outstanding and the shares owned by affiliates of the Advisor of each Trust were as follows:
COMMON COMMON COMMON COMMON SHARES SHARES SHARES SHARES TRUST OUTSTANDING OWNED TRUST OUTSTANDING OWNED - ----- ----------- ------- ----- ----------- ------- Municipal Investment Quality 16,707,093 -- Florida Income 6,646,343 -- Municipal Income 43,552,679 -- New Jersey Investment Quality 1,007,093 7,093 California Investment Quality 1,007,093 7,093 New Jersey Income 7,414,793 -- California Income 14,985,501 -- New York Investment Quality 1,307,093 7,093 Florida Investment Quality 1,127,093 7,093 New York Income 12,521,494 --
During the year ended October 31, 2003, Municipal Income issued additional shares under its dividend reinvestment plan of 69,968. During the year ended October 31, 2002, Municipal Income, California Municipal Income, Florida Municipal Income, New Jersey Municipal Income and New York Municipal Income issued additional shares under their dividend reinvestment plans of 171,937, 26,975, 28,015, 46,292, and 92,332, respectively. 52 As of October 31, 2003, each Trust had the following series of preferred shares outstanding as listed in the table below. The preferred shares have a liquidation value of $25,000 per share plus any accumulated unpaid dividends.
TRUST SERIES SHARES TRUST SERIES SHARES - ----- --------- ----------- ----- ---------- ---------- Municipal Investment Quality T7 3,262 Florida Investment Quality R7 340 T28 2,600 Florida Income T7 2,302 Municipal Income M7 3,001 New Jersey Investment Quality T7 300 T7 3,001 New Jersey Income R7 2,552 W7 3,001 New York Investment Quality F7 392 R7 3,001 New York Income W7 2,195 F7 3,001 F7 2,195 California Investment Quality W7 300 California Income T7 2,639 R7 2,639
Dividends on seven-day preferred shares are cumulative at a rate which resets every seven days based on the results of an auction. Dividends on 28 day preferred shares are cumulative at a rate which resets every 28 days based on the results of an auction. The dividend ranges on the preferred shares for each of the Trusts for the year ended October 31, 2003, were as follows:
TRUST LOW HIGH TRUST LOW HIGH - ----- --- ---- ----- --- ---- Municipal Investment Quality 0.65% 1.76% Florida Income 0.40% 1.53% Municipal Income 0.40 1.75 New Jersey Investment Quality 0.40 1.34 California Investment Quality 0.40 1.52 New Jersey Income 0.40 1.55 California Income 0.40 1.67 New York Investment Quality 0.40 1.50 Florida Investment Quality 0.60 1.70 New York Income 0.50 1.75
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 would be less than 200%. The preferred shares are redeemable at the option of each Trust, in whole or in part, on any dividend payment date at $25,000 per share plus any accumulated or unpaid dividends whether or not declared. The preferred shares are also subject to mandatory redemption at $25,000 per share plus any accumulated or 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 Declaration of Trust, are not satisfied. 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 as a single class. However, holders of preferred shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the Investment Company Act of 1940, as amended, 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 subclassification as a closed-end investment company or change its fundamental investment restrictions and (c) change its business so as to cease to be an investment company. NOTE 5. DIVIDENDS Subsequent to October 31, 2003, the Board of each Trust declared dividends from undistributed earnings per common share payable November 28, 2003, to shareholders of record on November 14, 2003. The per share common dividends declared were as follows:
COMMON DIVIDEND COMMON DIVIDEND TRUST PER SHARE TRUST PER SHARE - ----- --------------- ----- --------------- Municipal Investment Quality $0.076189 Florida Income $0.075375 Municipal Income 0.081125 New Jersey Investment Quality 0.067148 California Investment Quality 0.070600 New Jersey Income 0.075108 California Income 0.076074 New York Investment Quality 0.073125 Florida Investment Quality 0.070781 New York Income 0.075339
The dividends declared on preferred shares for the period November 1, 2003 to November 30, 2003, for each of the Trusts were as follows:
DIVIDENDS DIVIDENDS TRUST SERIES DECLARED TRUST SERIES DECLARED - ----- ------ --------- ----- ------ --------- Municipal Investment Quality T7 $60,804 Florida Investment Quality R7 $ 7,562 T28 47,320 Florida Income T7 39,318 Municipal Income M7 50,027 New Jersey Investment Quality T7 4,701 T7 54,108 New Jersey Income R7 45,272 W7 53,388 New York Investment Quality F7 6,840 R7 49,216 New York Income W7 19,821 F7 48,376 F7 41,573 California Investment Quality W7 5,661 California Income T7 45,681 R7 49,481
53 NOTE 6. REIMBURSEMENTS Subsequent to October 31, 2003, the Advisor determined that each of the Municipal Investment Quality, California Investment Quality, Florida Investment Quality, New Jersey Investment Quality and New York Investment Quality had purchased high yield bonds in violation of a non-fundamental investment policy requiring their investments to be of investment grade quality at the time of purchase. The Advisor has reimbursed each of the Trusts for the realized and unrealized losses incurred from the date of purchase through December 18, 2003, as a result of these unauthorized purchases. The net realized and unrealized gains on these securities as of December 18, 2003 was $167,280.00 for Municipal Investment Quality, $10,779.26 for California Investment Quality, $46,655.67 for Florida Investment Quality and $4,284.00 for New York Investment Quality. The amount of the reimbursement for the losses was $18,420.76 for California Investment Quality, $86,481.10 for New Jersey Investment Quality and $3,690.00 for New York Investment Quality. Such amounts have not been reflected in the accompanying financial statements for the year ended October 31, 2003. NOTE 7. SUBSEQUENT EVENT On December 18, 2003, the Board approved a resolution for each of the Municipal Investment Quality, California Investment Quality, Florida Investment Quality, New Jersey Investment Quality and New York Investment Quality whereby each such Trust adopted a non-fundamental investment policy permitting each Trust to invest up to 20% of its managed assets, measured at the time of purchase, in securities rated BB/Ba or B by Moody's Investors Service, Inc., Standard & Poor's Ratings Group, a division of The McGraw-Hill Companies Inc., Fitch Ratings or another nationally recognized rating agency or, if unrated, deemed to be of comparable credit quality by BlackRock Advisors, Inc. or its affiliates. 54 INDEPENDENT AUDITORS' REPORT - -------------------------------------------------------------------------------- To the Boards of Directors/Trustees and Shareholders of: BlackRock Investment Quality Municipal Trust, Inc. BlackRock Municipal Income Trust BlackRock California Investment Quality Municipal Trust, Inc. BlackRock California Municipal Income Trust BlackRock Florida Investment Quality Municipal Trust, Inc. BlackRock Florida Municipal Income Trust BlackRock New Jersey Investment Quality Municipal Trust, Inc. BlackRock New Jersey Municipal Income Trust BlackRock New York Investment Quality Municipal Trust, Inc. BlackRock New York Municipal Income Trust We have audited the accompanying statements of assets and liabilities of each of the above mentioned Trusts (collectively, the "Trusts"), including the portfolios of investments, as of October 31, 2003, 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 years in the five-year period 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 auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of October 31, 2003, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the Trusts as of October 31, 2003, 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 years in the five-year period then ended, in conformity with accounting principles generally accepted in the United States of America. /s/ Deloitte & Touche LLP Boston, Massachusetts December 18, 2003 55
INDEPENDENT TRUSTEES/DIRECTORS Name, address, age Andrew F. Brimmer Richard E. Cavanagh Kent Dixon P.O. Box 4546 P.O. Box 4546 New York, NY P.O. Box 4546 10163-4546 New York, NY 10163-4546 New York, NY 10163-4546 Age: 77 Age: 57 Age: 66 - ---------------------------------------------------------------------------------------------------------------------------------- Current positions held Lead Trustee/Director Trustee/Director Trustee/Director with the Trusts Audit Committee Chairman(2) Audit Committee Member Audit Committee Member(2) - ---------------------------------------------------------------------------------------------------------------------------------- Term of office and length 3 years(4)/since inception 3 years(4)/since inception(5) 3 years(4)/since inception of time served - ---------------------------------------------------------------------------------------------------------------------------------- Principal occupations President of Brimmer & Company, President and Chief Executive Consultant/Investor. Former during the past five Inc., a Washington, D.C.-based Officer of The Conference President and Chief years economic and financial Board, Inc., a leading global Executive Officer of Empire consulting firm, also Wilmer D. business membership Federal Savings Bank of Barrett Professor of Economics, organization, from America and Banc PLUS University of Massachusetts - 1995-present. Former Savings Association, former Amherst. Formerly member of the Executive Dean of the John F. Chairman of the Board, Board of Governors of the Kennedy School of Government President and Chief Federal Reserve System. Former at Harvard University from Executive Officer of Chairman, District of Columbia 1988-1995. Acting Director, Northeast Savings. Financial Control Board. Harvard Center for Business and Government (1991-1993). Formerly Partner (principal) of McKinsey & Company, Inc. (1980- 1988). Former Executive Director of Federal Cash Management, White House Office of Management and Budget (1977- 1979). Co-author, THE WINNING PERFORMANCE (best selling management book published in 13 national editions). - ---------------------------------------------------------------------------------------------------------------------------------- Number of portfolios 48 48 48 overseen within the fund complex - ---------------------------------------------------------------------------------------------------------------------------------- Other Directorships Director of CarrAmerica Realty Trustee: Airplanes Group, Former Director of ISFA held outside of the Corporation and Borg-Warner Aircraft Finance Trust (AFT) (the owner of INVEST, a fund complex Automotive. Formerly Director of and Educational Testing national securities Airborne Express, BankAmerica Service (ETS). Director, Arch brokerage service designed Corporation (Bank of America), Chemicals, Fremont Group and for banks and thrift Bell South Corporation, College The Guardian Life Insurance institutions). Retirement Equities Fund Company of America. (Trustee), Commodity Exchange, Inc. (Public Governor), Connecticut Mutual Life Insurance Company, E.I. du Pont de Nemours & Company, Equitable Life Assurance Society of the United States, Gannett Company, Mercedes-Benz of North America, MNC Financial Corporation (American Security Bank), NCM Capital Management, Navistar International Corporation, PHH Corp. and UAL Corporation (United Airlines). - ---------------------------------------------------------------------------------------------------------------------------------- For "Interested Director/Trustee" Relationships, events or transactions by reason of which the Trustee is an interested person as defined in Section 2(a)(19)(1940 Act) - ----------------------------------------------------------------------------------------------------------------------------------
- ---------------- (1) Interested Trustee/Director as defined by Section 2(a)(19) of the Investment Company Act of 1940. (2) The Board of each Trust has determined that each Trust has two Audit Committee financial experts serving on its Audit Committee, Dr. Brimmer and Mr. Dixon, both of whom are independent for the purpose of the definition of Audit Committee financial expert as applicable to the Trusts. (3) Trustee/Director since inception; appointed Chairman of the Board on August 22, 2002. (4) The Board is classified into three classes of which one class is elected annually. Each Trustee/Director serves a three year term concurrent with the class from which he is elected. (5) For the Investment Quality Trusts appointed Director/Trustee on 08/11/94. (6) Except during the periods 08/12/93 through 04/15/97 and 10/31/02 through 11/11/02 for all of the Trusts. (7) Effective 12/11/03 56
INDEPENDENT TRUSTEES/DIRECTORS (CONTINUED) Frank J. Fabozzi James Clayburn La Force, Jr. Walter F. Mondale P.O. Box 4546 P.O. Box 4546 P.O. Box 4546 New York, NY 10163-4546 New York, NY 10163-4546 New York, NY 10163-4546 Age: 55 Age: 74 Age: 75 - ------------------------------------------------------------------------------------------------------------------------------------ Trustee/Director Trustee/Director Trustee/Director - ------------------------------------------------------------------------------------------------------------------------------------ 3 years(4)/since inception 3 years(4)/since inception 3 years(4)/since inception6 - ------------------------------------------------------------------------------------------------------------------------------------ Consultant. Editor of THE Dean Emeritus of the John E. Partner, Dorsey & Whitney, JOURNAL OF PORTFOLIO Anderson Graduate School of LLP., a law firm (December MANAGEMENT and Management, University of 1996-present, September Frederick Frank Adjunct California since July 1, 1993. 1987-August 1993). Formerly Professor of Finance at the Acting Dean of the School of U.S. Ambassador to Japan School of Management at Yale Business, Hong Kong (1993-1996). Formerly Vice University. Author and editor University of Science and President of the United States, of several books on fixed Technology 1990-1993. From U.S. Senator and Attorney income portfolio management. 1978 to September 1993, General of the State of Visiting Professor of Finance Dean of the John E. Anderson Minnesota. 1984 Democratic and Accounting at the Sloan Graduate School of Nominee for President of the School of Management, Management, University of United States. Massachusetts Institute of California. Technology from 1986 to August 1992. - ------------------------------------------------------------------------------------------------------------------------------------ 48 48 48 - ------------------------------------------------------------------------------------------------------------------------------------ Director, Guardian Mutual Payden & Ryge(l) Investment Funds Group (18 portfolios). Trust, Provident Investment Counsel Funds, Advisors Series Trust, Arena Pharmaceuticals, Inc. and CancerVax Corporation. - ------------------------------------------------------------------------------------------------------------------------------------ INTERESTED TRUSTEES/DIRECTORS(1) Ralph L. Schlosstein Robert S. Kapito BlackRock, Inc. BlackRock, Inc. 40 East 52nd Street 40 East 52nd Street New York, NY 10022 New York, NY 10022 Age: 52 Age: 46 - -------------------------------------------------------------------------------- Chairman of the Board President and Trustee/Director - -------------------------------------------------------------------------------- 3 years(4)/since inception 3 years(4)/since August 22, 2002 - -------------------------------------------------------------------------------- Director since 1999 and Vice Chairman of BlackRock, President of BlackRock, Inc. Inc. Head of the Portfolio since its formation in 1998 and Management Group. Also a of BlackRock, Inc.'s member of the Management predecessor entities since 1988. Committee, the Investment Member of the Management Strategy Group, the Fixed Committee and Investment Income and Global Operating Strategy Group of BlackRock, Committees and the Equity Inc. Formerly, Managing Investment Strategy Group. Director of Lehman Brothers, Responsible for the portfolio Inc. and Co-head of its management of the Fixed Mortgage and Savings Income, Domestic Equity and Institutions Group. Currently, International Equity, Liquidity, Chairman and a Trustee of each and Alternative Investment of the closed-end Trusts in Groups of BlackRock. Currently which BlackRock Advisors, President and a Director/Trustee Inc. acts as investment advisor. of each of the closed-end Trusts in which BlackRock Advisors, Inc. acts as investment advisor. - -------------------------------------------------------------------------------- 48 48 - -------------------------------------------------------------------------------- Chairman and President of the Chairman of the Hope and BlackRock Provident Institu- Heroes Children's Cancer tional Funds (10 portfolios), Fund. President of the Board Director of Anthracite Capital, of Directors of the Periwinkle Inc.(7) and Director of several of National Theatre for Young BlackRock's alternative Audiences. Director of investment vehicles. Currently, a icruise.com, Corp. Member of the Visiting Board of Overseers of the John F. Kennedy School of Government at Harvard University, the Financial Institutions Center Board of the Wharton School of the University of Pennsylvania, a Trustee of Trinity School in New York City and a Trustee of New Visions for Public Education in New York City. Formerly, a Director of Pulte Corporation and a Member of Fannie Mae's Advisory Council. Director and President of the Advisor. - -------------------------------------------------------------------------------- President of the Advisor Vice Chairman of the Advisor. - --------------------------------------------------------------------------------
57 DIVIDEND REINVESTMENT PLANS - -------------------------------------------------------------------------------- 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 EquiServe Trust Company, N.A. (the "Plan Agent") in the respective Trust's shares pursuant to the Plan. Shareholders who elect not to 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 an Investment Quality Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants' account, by the purchase of outstanding shares on the open market, on the Trust's primary exchange or elsewhere ("open market purchases"). The Investment Quality Trusts will not issue any new shares under the Plan. After an Income Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants' account, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust ("newly issued shares") or (ii) by 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. Participants in the Plan may withdraw from the Plan upon written notice to the Plan Agent and will receive certificates for whole Trust shares and a cash payment for any fraction of a Trust share. 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 150 Royall Street, Canton, MA 02021, or (800) 699-1BFM. 58 ADDITIONAL INFORMATION (UNAUDITED) - -------------------------------------------------------------------------------- TAX INFORMATION We are required by the Internal Revenue Code to advise you within 60 days of a Trust's tax year end as to the Federal tax status of dividends paid by the Trust during such tax year. Accordingly, during the tax year-ended October 31, 2003, all dividends paid by all of the Trusts (excluding New York Income, which has a July 31st, tax year end) were federally tax-exempt interest dividends. INVESTMENT STRATEGIES The Board of each Investment Quality Trust has adopted a non-fundamental policy permitting each Investment Quality Trust to invest up to 20% of its managed assets, measured at the time of investment, in securities rated BB/Ba or B by Moody's Investors Service, Inc, Standard & Poors' Ratings Group, a division of The McGraw Hill Companies, Inc., Fitch Ratings or another nationally recognized rating agency or, if unrated, deemed to be of comparable credit quality by BlackRock Advisors, Inc. Non-fundamental policies may be changed without shareholder approval. Due to the adoption of this non-fundamental policy, each Investment Quality Trust will be subject to the following additional risk: RISKS OF BELOW INVESTMENT GRADE SECURITIES. Each Investment Quality Trust may invest up to 20% of its managed assets in below investment grade securities commonly known as "junk bonds." As a result, each Investment Quality Trust is subject to the increased risks associated with lower grade securities. Lower grade securities are subject to greater risk of default. The prices of these lower grade securities are more sensitive to negative developments, such as a decline in the issuer's revenues or a general economic downturn, than are prices of higher grade securities. Adverse conditions could make it difficult at times for the Trust to sell certain of these securities or could result in lower prices for the securities. Lower grade securities tend to be less liquid than investment grade securities. The market value of lower grade securities tends to be more volatile than investment grade securities. Lower grade securities generally are regarded as having predominantly speculative characteristics with respect to the issuer's ability to pay interest and repay principal. They may face major ongoing uncertainties or exposure to adverse business, financial or economic conditions which could lead to inadequate capacity to meet timely interest and principal payments. The Boards also clarified that each Investment Quality Trust's credit quality policy applies only at the time of purchase and that an Investment Quality Trust is not required to dispose of a security if a rating agency downgrades its assessment of the security's credit characteristics. 59 [This Page Intentionally Left Blank] BlackRock Closed-End Funds Director/Trustees Transfer Agent Ralph L. Schlosstein, CHAIRMAN EquiServe Trust Company, N.A. Andrew F. Brimmer 150 Royall Street Richard E. Cavanagh Canton, MA 02021 Kent Dixon (800) 699-1BFM Frank J. Fabozzi Robert S. Kapito Auction Agent(1) James Clayburn La Force, Jr. Bank of New York Walter F. Mondale 100 Church Street, 8th Floor New York, NY 10286 Officers Robert S. Kapito, PRESIDENT Auction Agent(2) Henry Gabbay, TREASURER Deutsche Bank Trust Company Americas Anne Ackerley, VICE PRESIDENT 60 Wall Street, 27th Floor Kevin M. Klingert, VICE PRESIDENT New York, NY 10005 Richard M. Shea, VICE PRESIDENT/TAX James Kong, ASSISTANT TREASURER Independent Accountants Vincent B. Tritto, SECRETARY Deloitte & Touche LLP Brian P. Kindelan, ASSISTANT SECRETARY 200 Berkeley Street Boston, MA 02116 Investment Advisor BlackRock Advisors, Inc. Legal Counsel 100 Bellevue Parkway Skadden, Arps, Slate, Meagher & Flom LLP Wilmington, DE 19809 Four Times Square (800) 227-7BFM New York, NY 10036 Sub-Advisor(1) Legal Counsel - Independent Trustees BlackRock Financial Management, Inc. Debevoise & Plimpton 40 East 52nd Street 919 Third Avenue New York, NY 10022 New York, NY 10022 Custodian This report is for shareholder State Street Bank and Trust Company information. This is not a prospec- tus One Heritage Drive intended for use in the purchase or sale North Quincy, MA 02171 of Trust shares. Statements and other information contained in this report are as dated and are subject to change.
BlackRock Advisors, Inc.(3) Princeton Administrators, L.P.(3) Prudential Investments LLC(3) 100 Bellevue Parkway P.O. Box 9095 Gateway Center Three Wilmington, DE 19809 Princeton, NJ 08543-9095 100 Mulberry Street (800) 227-7BFM (800) 543-6217 Newark, NJ 07102-4077 BlackRock Municipal Income Trust BlackRock Investment Quality (800) 227-7BFM BlackRock California Municipal Municipal Trust BlackRock California Investment Quality Income Trust Municipal Trust BlackRock Florida Municipal BlackRock Florida Investment Quality Income Trust Municipal Trust BlackRock New Jersey Municipal BlackRock New Jersey Investment Income Trust Quality Municipal Trust BlackRock New York Municipal BlackRock New York Investment Quality Income Trust Municipal Trust
- ---------------- (1) For the Income Trusts only. (2) For the Investment Quality Trusts only. (3) Provided administrative services for the Trust(s) listed directly below its name. Effective August 18, 2003, BlackRock Advisors, Inc. provides the administrative services for all the Trusts. 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 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 Trusts at (800) 227-7BFM. The Trusts have delegated to the Advisor the voting of proxies relating to their voting securities pursuant to the Advisor's proxy voting policies and procedures. You may obtain a copy of these proxy voting policies and procedures, without charge, by calling (800) 699-1236. These policies and procedures are also available on the website of the Securities and Exchange Commission at http://www.sec.gov. This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Trust shares. Statements and other information contained in this report are as dated and are subject to change. [LOGO] BLACKROCK CEF-ANN-2 ITEM 2. CODE OF ETHICS. (a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. (b) Not applicable. (c) The Registrant has not amended its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto. (d) The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto. (e) Not applicable. (f) The Registrant's Code of Ethics is attached as an Exhibit hereto. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. The Registrant's Board of Trustees has determined that it has two audit committee financial experts serving on its audit committee, each of whom is an "independent" Trustee: Dr. Andrew F. Brimmer and Mr. Kent Dixon. Under applicable securities laws, a person who is determined to be an audit committee financial expert will not be deemed an "expert" for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities that are greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and Board of Trustees in the absence of such designation or identification. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Not applicable until annual reports for fiscal years ending after December 15, 2003. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. The Trust has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The audit committee of the Trust is comprised of: Dr. Andrew F. Brimmer; Richard E. Cavanagh; and Kent Dixon. ITEM 6. RESERVED. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. The Registrant has delegated the voting of proxies relating to its voting securities to its investment advisor, BlackRock Advisors, Inc. (the "Advisor") and its sub-advisor, BlackRock Financial Management, Inc. (the "Sub-Advisor"). The Proxy Voting Policies and Procedures of the Advisor and Sub-Advisor (the "Proxy Voting Policies") are included as an Exhibit hereto. ITEM 8. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable. ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. Not applicable. ITEM 10. CONTROLS AND PROCEDURES. (a) The Registrant's principal executive officer and principal financial officer have evaluated the Registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the Registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely. (b) The Registrant's principal executive officer and principal financial officer are aware of no changes in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting. ITEM 11. EXHIBITS. (a)(1) Code of Ethics. (a)(2) Certifications of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (b) Certification of principal executive officer and principal financial officer pursuant to Section 906 of Sarbanes-Oxley Act of 2002. (c) Proxy Voting Policies. SIGNATURES 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. (Registrant) The BlackRock California Municipal Income Trust By: /s/ Henry Gabbay --------------------------- Name: Henry Gabbay Title: Treasurer Date: January 7, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert S. Kapito --------------------------- Name: Robert S. Kapito Title: Principal Executive Officer Date: January 7, 2004 By: /s/ Henry Gabbay --------------------------- Name: Henry Gabbay Title: Principal Financial Officer Date: January 7, 2004 EX-99.CODE ETH 3 c30280_ex99codeeth.txt Exhibit 99 Code Eth JOINT CODE OF ETHICS FOR CHIEF EXECUTIVE AND SENIOR FINANCIAL OFFICERS OF THE BLACKROCK CLOSED-END FUNDS AS ADOPTED BY THE BOARDS OF TRUSTEES/DIRECTORS MAY 2003 Each BlackRock Closed-End Fund (each a "TRUST" and, collectively, the "TRUSTS")(1) is committed to conducting business in accordance with applicable laws, rules and regulations and the highest standards of business ethics, and to full and accurate disclosure -- financial and otherwise -- in compliance with applicable law. This Code of Ethics, applicable to the Trust's Chief Executive Officer, President, Chief Financial Officer and Treasurer (or persons performing similar functions) (together, "SENIOR OFFICERS"), sets forth policies to guide you in the performance of your duties. As a Senior Officer, you must comply with applicable law. You also have a responsibility to conduct yourself in an honest and ethical manner. You have leadership responsibilities that include creating a culture of high ethical standards and a commitment to compliance, maintaining a work environment that encourages the internal reporting of compliance concerns and promptly addressing compliance concerns. This Code of Ethics recognizes that the Senior Officers are subject to certain conflicts of interest inherent in the operation of investment companies, because the Senior Officers currently or may in the future serve as Senior Officers of each of the Trusts, as officers or employees of the Trust's investment advisor (the "ADVISOR") and/or affiliates of the Trust's investment advisor (collectively with the Advisor, "BLACKROCK") and as officers or trustees/directors of other registered investment companies and unregistered investment funds advised by BlackRock. This Code of Ethics also recognizes that certain laws and regulations applicable to, and certain policies and procedures adopted by, the Trust or BlackRock govern your conduct in connection with many of the conflict of interest situations that arise in connection with the operations of the Trust, including: - -------- (1) This Joint Code of Ethics for Chief Executive and Senior Financial Officers has been adopted by the Board of Trustees/Directors for each Trust. Solely for the sake of clarity and simplicity, this Joint Code of Ethics has been drafted as if there is a single Trust, a single Governance Committee and a single Board of Trustees/Directors. The terms "Trustees," "Independent Trustees" and "Governance Committee" mean the Trustees, the Independent Trustees and the Governance Committee of each Trust, respectively, unless the context otherwise requires. The Trustees, the Independent Trustees and the Governance Committee of each Trust, however, shall act separately and in the best interests of its respective Trust. o the Investment Company Act of 1940, and the rules and regulation promulgated thereunder by the Securities and Exchange Commission (the "1940 ACT"); o the Investment Advisers Act of 1940, and the rules and regulations promulgated thereunder by the Securities and Exchange Commission (the "ADVISERS ACT"); o the Code of Ethics adopted by the Trust and the other Trusts pursuant to Rule 17j-1(c) under the 1940 Act (collectively, the "TRUST'S 1940 ACT CODE OF ETHICS"); o one or more codes of ethics adopted by BlackRock that have been reviewed and approved by those trustees/directors (the "TRUSTEES") of the Trust that are not "interested persons" of the Trust (the "INDEPENDENT TRUSTEES") within the meaning of the 1940 Act (the "BLACKROCK'S 1940 ACT CODE OF ETHICS" and, together with the Trust's 1940 Act Code of Ethics, the "1940 ACT CODES OF ETHICS"); o the policies and procedures adopted by the Trust and the other Trusts to address conflict of interest situations, such as procedures under Rule 10f-3 and Rule 17a-7 under the 1940 Act (collectively, the "TRUST POLICIES"); and o BlackRock's general policies and procedures to address, among other things, conflict of interest situations and related matters (collectively, the "BLACKROCK POLICIES"). The provisions of the 1940 Act, the Advisers Act, the 1940 Act Codes of Ethics, the Trust Policies and the BlackRock Policies are referred to herein collectively as the "ADDITIONAL CONFLICT RULES". This Code of Ethics is different from, and is intended to supplement, the Additional Conflict Rules. Accordingly, a violation of the Additional Conflict Rules by a Senior Officer is hereby deemed not to be a violation of this Code of Ethics, unless and until the Governance Committee of the Trustees (the "GOVERNANCE COMMITTEE") shall determine that any such violation of the Additional Conflict Rules is also a violation of this Code of Ethics. SENIOR OFFICERS SHOULD ACT HONESTLY AND CANDIDLY Each Senior Officer has a responsibility to the Trust to act with integrity. Integrity requires, among other things, being honest and candid. Deceit and subordination of principle are inconsistent with integrity. Each Senior Officer must: 2 o act with integrity, including being honest and candid while still maintaining the confidentiality of information where required by law or the Additional Conflict Rules; o comply with the laws, rules and regulations that govern the conduct of the Trust's operations and report any suspected violations thereof in accordance with the section below entitled "Compliance With Code Of Ethics"; and o adhere to a high standard of business ethics. CONFLICTS OF INTEREST A conflict of interest for the purpose of this Code of Ethics occurs when your private interests interfere in any way, or even appear to interfere, with the interests of the Trust. Senior Officers are expected to use objective and unbiased standards when making decisions that affect the Trust, keeping in mind that Senior Officers are subject to certain inherent conflicts of interest because Senior Officers of a Trust also are or may be officers of other Trusts, BlackRock and other funds advised or serviced by BlackRock (as a result of which it is incumbent upon you to be familiar with and to seek to comply with the Additional Conflict Rules). You are required to conduct the business of the Trust in an honest and ethical manner, including the ethical handling of actual or apparent conflicts of interest between personal and business relationships. When making any investment, accepting any position or benefits, participating in any transaction or business arrangement or otherwise acting in a manner that creates or appears to create a conflict of interest with respect to the Trust where you are receiving a personal benefit, you should act in accordance with the letter and spirit of this Code of Ethics. If you are in doubt as to the application or interpretation of this Code of Ethics to you as a Senior Officer of the Trust, you should make full disclosure of all relevant facts and circumstances to the general counsel of BlackRock (the "GENERAL COUNSEL") and obtain the approval of the General Counsel prior to taking action. Some conflict of interest situations that should always be approved by the General Counsel, if material, include the following: o the receipt of any entertainment or non-nominal gift by the Senior Officer, or a member of his or her family, from any company with which the Trust has current or prospective business dealings (other than BlackRock), unless such entertainment or gift is business related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; 3 o any ownership interest in, or any consulting or employment relationship with, any of the Trust's service providers, other than BlackRock; or o a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Trust for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Senior Officer's employment by BlackRock, such as compensation or equity ownership. DISCLOSURES It is the policy of the Trust to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable laws and regulations in all reports and documents that the Trust files with, or submits to, the Securities and Exchange Commission or a national securities exchange and in all other public communications made by the Trust. As a Senior Officer, you are required to promote compliance with this policy and to abide by the Trust's standards, policies and procedures designed to promote compliance with this policy. Each Senior Officer must: o familiarize himself or herself with the disclosure requirements applicable to the Trust as well as the business and financial operations of the Trust; and o not knowingly misrepresent, or cause others to misrepresent, facts about the Trust to others, including to the Trustees, the Trust's independent auditors, the Trust's counsel, counsel to the Independent Trustees, governmental regulators or self-regulatory organizations. COMPLIANCE WITH CODE OF ETHICS If you know of or suspect a violation of this Code of Ethics or other laws, regulations, policies or procedures applicable to the Trust, you must report that information on a timely basis to the General Counsel or report it anonymously by following the "whistle blower" policies adopted by BlackRock from time to time. NO ONE WILL BE SUBJECT TO RETALIATION BECAUSE OF A GOOD FAITH REPORT OF A SUSPECTED VIOLATION. The Trust will follow these procedures in investigating and enforcing this Code of Ethics, and in reporting on this Code of Ethics: o the General Counsel will take all appropriate action to investigate any actual or potential violations reported to him or her; o violations and potential violations will be reported to the Governance Committee after such investigation; 4 o if the Governance Committee determines that a violation has occurred, it will take all appropriate disciplinary or preventive action; and o appropriate disciplinary or preventive action may include a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification of the Securities and Exchange Commission or other appropriate law enforcement authorities. WAIVERS OF CODE OF ETHICS Except as otherwise provided in this Code of Ethics, the General Counsel is responsible for applying this Code of Ethics to specific situations in which questions are presented to the General Counsel and has the authority to interpret this Code of Ethics in any particular situation. The General Counsel shall take all action he or she considers appropriate to investigate any actual or potential violations reported under this Code of Ethics. The General Counsel is authorized to consult, as appropriate, with the chair of the Governance Committee and with counsel to the Trust, BlackRock or the Independent Trustees, and is encouraged to do so. The Governance Committee is responsible for granting waivers of this Code of Ethics, as appropriate. Any changes to or waivers of this Code of Ethics will, to the extent required, be disclosed on Form N-CSR, or otherwise, as provided by Securities and Exchange Commission rules. RECORDKEEPING The Trust will maintain and preserve for a period of not less than six (6) years from the date an action is taken, the first two (2) years in an easily accessible place, a copy of the information or materials supplied to the Governance Committee: o that provided the basis for any amendment or waiver to this Code of Ethics; and o relating to any violation of this Code of Ethics and sanctions imposed for such violation, together with a written record of the approval or action taken by the Governance Committee. CONFIDENTIALITY All reports and records prepared or maintained pursuant to this Code of Ethics shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code of Ethics, such matters shall not be disclosed to anyone other than the Independent Trustees and their counsel, the Trust and its counsel, BlackRock and its counsel and any other advisors, consultants or counsel retained by the Trustees, the Independent Trustees or any committee of the Trustees. 5 AMENDMENTS This Code of Ethics may not be amended except in written form, which is specifically approved by a majority vote of the Trustees, including a majority of the Independent Trustees. NO RIGHTS CREATED This Code of Ethics is a statement of certain fundamental principles, policies and procedures that govern each of the Senior Officers in the conduct of the Trust's business. It is not intended to and does not create any rights in any employee, investor, supplier, competitor, shareholder or any other person or entity. 6 ACKNOWLEDGMENT FORM I have received and read the Joint Code of Ethics for Chief Executive and Senior Financial Officers, and I understand its contents. I agree to comply fully with the standards contained in the Code of Ethics and the Company's related policies and procedures. I understand that I have an obligation to report any suspected violations of the Code of Ethics on a timely basis to the General Counsel or report it anonymously by following the "whistle blower" policies adopted by BlackRock from time to time. ------------------------------- Printed Name ------------------------------- Signature ------------------------------- Date 7 EX-99.CERT 4 c30280_ex99cert.txt Exhibit 99.Cert I, Robert Kapito, certify that: 1. I have reviewed this report on Form N-CSR of the BlackRock California Municipal Income Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: January 7, 2004 --------------- /s/ Robert S. Kapito -------------------------- Robert S. Kapito Principal Executive Officer Exhibit 99.Cert I, Henry Gabbay, certify that: 1. I have reviewed this report on Form N-CSR of the BlackRock California Municipal Income Trust; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: January 7, 2004 --------------- /s/ Henry Gabbay -------------------------- Henry Gabbay Principal Financial Officer EX-99.906CERT 5 c30280_ex99-906.txt Exhibit 99.906CERT SECTION 906 CERTIFICATION Pursuant to 18 U.S.C. ss. 1350, the undersigned officers of the BlackRock California Municipal Income Trust (the "Company"), hereby certifies, to the best of their knowledge, that the Company's Report on Form N-CSR for the fiscal year ended October 31, 2003 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: January 7, 2004 ---------------------------- /s/ Robert S. Kapito - ---------------------------------- Name: Robert S. Kapito Title: Principal Executive Officer /s/ Henry Gabbay - ---------------------------------- Name: Henry Gabbay Title: Principal Financial Officer EX-99.10.C 6 c30280_ex99-10c.txt Exhibit 99.10(c) PROXY VOTING POLICY FOR BLACKROCK ADVISORS, INC. AND ITS AFFILIATED REGISTERED INVESTMENT ADVISERS INTRODUCTION This Proxy Voting Policy ("Policy") for BlackRock Advisors, Inc. and its affiliated registered investment advisers ("BlackRock") reflects our duty as a fiduciary under the Investment Advisers Act of 1940 (the "Advisers Act") to vote proxies in the best interests of our clients. In addition, the Department of Labor views the fiduciary act of managing ERISA plan assets to include the voting of proxies. Proxy voting decisions must be made solely in the best interests of the pension plan's participants and beneficiaries. The Department of Labor has interpreted this requirement as prohibiting a fiduciary from subordinating the retirement income interests of participants and beneficiaries to unrelated objectives. The guidelines in this Policy have been formulated to ensure decision-making consistent with these fiduciary responsibilities. Any general or specific proxy voting guidelines provided by an advisory client or its designated agent in writing will supercede the specific guidelines in this Policy. BlackRock will disclose to our advisory clients information about this Policy as well as disclose to our clients how they may obtain information on how we voted their proxies. Additionally, BlackRock will maintain proxy voting records for our advisory clients consistent with the Advisers Act. For those of our clients that are registered investment companies, BlackRock will disclose this Policy to the shareholders of such funds and make filings with the Securities and Exchange Commission and make available to fund shareholders the specific proxy votes that we cast in shareholder meetings of issuers of portfolio securities in accordance with the rules and regulations under the Investment Company Act of 1940. Registered investment companies that are advised by BlackRock as well as certain of our advisory clients may participate in securities lending programs, which may reduce or eliminate the amount of shares eligible for voting by BlackRock in accordance with this Policy if such shares are out on loan and cannot be recalled in time for the vote. Implicit in the initial decision to retain or invest in the security of a corporation is approval of its existing corporate ownership structure, its management, and its operations. Accordingly, proxy proposals that would change the existing status of a corporation will be reviewed carefully and supported only when it seems clear that the proposed changes are likely to benefit the corporation and its shareholders. Notwithstanding this favorable predisposition, management will be assessed on an ongoing basis both in terms of its business capability and its dedication to the shareholders to ensure that our continued confidence remains warranted. If it is determined that management is acting on its own behalf instead of for the well being of the corporation, we will vote to support 1 shareholder proposals, unless other mitigating circumstances are present. Additionally, situations may arise that involve an actual or perceived conflict of interest. For example, we may manage assets of a pension plan of a company whose management is soliciting proxies, or a BlackRock employee involved with managing an account may have a close relative who serves as a director or executive of a company that is soliciting proxies regarding securities held in such account. In all cases, the manner in which we vote proxies must be based on our clients' best interests and not the product of a conflict. This Policy and its attendant recommendations attempt to generalize a complex subject. It should be clearly understood that specific fact situations, including differing voting practices in jurisdictions outside the United States, might warrant departure from these guidelines. In such instances, the relevant facts will be considered, and if a vote contrary to these guidelines is indicated it will be cast and the reasons therefor recorded in writing. Section I of the Policy describes proxy proposals that may be characterized as routine and lists examples of the types of proposals we would typically support. Section II of the Policy describes various types of non-routine proposals and provides general voting guidelines. These non-routine proposals are categorized as those involving: A. Social Issues, B. Financial/Corporate Issues, and C. Shareholder Rights. Finally, Section III of the Policy describes the procedures to be followed in casting a vote pursuant to these guidelines. 2 SECTION I ROUTINE MATTERS Routine proxy proposals, amendments, or resolutions are typically proposed by management and meet the following criteria: 1. They do not measurably change the structure, management control, or operation of the corporation. 2. They are consistent with industry standards as well as the corporate laws of the state of incorporation. VOTING RECOMMENDATION BlackRock will normally support the following routine proposals: 1. To increase authorized common shares. 2. To increase authorized preferred shares as long as there are not disproportionate voting rights per preferred share. 3. To elect or re-elect directors. 4. To appoint or elect auditors. 5. To approve indemnification of directors and limitation of directors' liability. 6. To establish compensation levels. 7. To establish employee stock purchase or ownership plans. 8. To set time and location of annual meeting. 3 SECTION II NON-ROUTINE PROPOSALS A. SOCIAL ISSUES Proposals in this category involve issues of social conscience. They are typically proposed by shareholders who believe that the corporation's internally adopted policies are ill-advised or misguided. VOTING RECOMMENDATION If we have determined that management is generally socially responsible, we will generally vote AGAINST the following shareholder proposals: 1. To enforce restrictive energy policies. 2. To place arbitrary restrictions on military contracting. 3. To bar or place arbitrary restrictions on trade with other countries. 4. To restrict the marketing of controversial products. 5. To limit corporate political activities. 6. To bar or restrict charitable contributions. 7. To enforce a general policy regarding human rights based on arbitrary parameters. 8. To enforce a general policy regarding employment practices based on arbitrary parameters. 9. To enforce a general policy regarding animal rights based on arbitrary parameters. 10. To place arbitrary restrictions on environmental practices. B. FINANCIAL/CORPORATE ISSUES Proposals in this category are usually offered by management and seek to change a corporation's legal, business or financial structure. 4 VOTING RECOMMENDATION We will generally vote in favor of the following management proposals provided the position of current shareholders is preserved or enhanced: 1. To change the state of incorporation. 2. To approve mergers, acquisitions or dissolution. 3. To institute indenture changes. 4. To change capitalization. C. SHAREHOLDER RIGHTS Proposals in this category are made regularly both by management and shareholders. They can be generalized as involving issues that transfer or realign board or shareholder voting power. We typically would oppose any proposal aimed solely at thwarting potential takeover offers by requiring, for example, super-majority approval. At the same time, we believe stability and continuity promote profitability. The guidelines in this area seek to find a middle road, and they are no more than guidelines. Individual proposals may have to be carefully assessed in the context of their particular circumstances. VOTING RECOMMENDATION We will generally vote FOR the following management proposals: 1. To require majority approval of shareholders in acquisitions of a controlling share in the corporation. 2. To institute staggered board of directors. 3. To require shareholder approval of not more than 66 2/3% for a proposed amendment to the corporation's by-laws. 4. To eliminate cumulative voting. 5. To adopt anti-greenmail charter or by-law amendments or to otherwise restrict a company's ability to make greenmail payments. 5 6. To create a dividend reinvestment program. 7. To eliminate preemptive rights. 8. To eliminate any other plan or procedure designed primarily to discourage a takeover or other similar action (commonly known as a "poison pill"). We will generally vote AGAINST the following management proposals: 1. To require greater than 66 2/3% shareholder approval for a proposed amendment to the corporation's by-laws ("super-majority provisions"). 2. To require that an arbitrary fair price be offered to all shareholders that is derived from a fixed formula ("fair price amendments"). 3. To authorize a new class of common stock or preferred stock which may have more votes per share than the existing common stock. 4. To prohibit replacement of existing members of the board of directors. 5. To eliminate shareholder action by written consent without a shareholder meeting. 6. To allow only the board of directors to call a shareholder meeting or to propose amendments to the articles of incorporation. 7. To implement any other action or procedure designed primarily to discourage a takeover or other similar action (commonly known as a "poison pill"). 8. To limit the ability of shareholders to nominate directors. We will generally vote FOR the following shareholder proposals: 1. To rescind share purchases rights or require that they be submitted for shareholder approval, but only if the vote required for approval is not more than 66 2/3%. 2. To opt out of state anti-takeover laws deemed to be detrimental to the shareholder. 3. To change the state of incorporation for companies operating under the umbrella of anti-shareholder state corporation laws if another state is chosen with favorable laws in this and other areas. 4. To eliminate any other plan or procedure designed primarily to discourage a takeover or other similar action. 6 5. To permit shareholders to participate in formulating management's proxy and the opportunity to discuss and evaluate management's director nominees, and/or to nominate shareholder nominees to the board. 6. To require that the board's audit, compensation, and/or nominating committees be comprised exclusively of independent directors. 7. To adopt anti-greenmail charter or by-law amendments or otherwise restrict a company's ability to make greenmail payments. 8. To create a dividend reinvestment program. 9. To recommend that votes to "abstain" not be considered votes "cast" at an annual meeting or special meeting, unless required by state law. 10. To require that "golden parachutes" be submitted for shareholder ratification. We will generally vote AGAINST the following shareholder proposals: 1. To restore preemptive rights. 2. To restore cumulative voting. 3. To require annual election of directors or to specify tenure. 4. To eliminate a staggered board of directors. 5. To require confidential voting. 6. To require directors to own a minimum amount of company stock in order to qualify as a director or to remain on the board. 7. To dock director pay for failing to attend board meetings. 7 SECTION III VOTING PROCESS BlackRock has engaged a third-party service provider to assist us in the voting of proxies. These guidelines have been provided to this service provider, who then analyzes all proxy solicitations we receive for our clients and makes recommendations to us as to how, based upon our guidelines, the relevant votes should be cast. These recommendations are set out in a report that is provided to the relevant Portfolio Management Group team, who must approve the proxy vote in writing and return such written approval to the Operations Group. If any authorized member of a Portfolio Management Group team desires to vote in a manner that differs from the recommendations, the reason for such differing vote shall be noted in the written approval form. A copy of the written approval form is attached as an exhibit. The head of each relevant Portfolio Management Group team is responsible for making sure that proxies are voted in a timely manner. The Brokerage Allocation Committee shall receive regular reports of all proxy votes cast to review how proxies have been voted, including reviewing votes that differ from recommendations made by our third-party service provider and votes that may have involved a potential conflict of interest. The Committee shall also review these guidelines from time to time to determine their continued appropriateness and whether any changes to the guidelines or the proxy voting process should be made. IF THERE IS ANY POSSIBILITY THAT THE VOTE MAY INVOLVE A MATERIAL CONFLICT OF INTEREST BECAUSE, FOR EXAMPLE, THE ISSUER SOLICITING THE VOTE IS A BLACKROCK CLIENT OR THE MATTER BEING VOTED ON INVOLVES BLACKROCK, PNC OR ANY AFFILIATE (INCLUDING A PORTFOLIO MANAGEMENT GROUP EMPLOYEE) OF EITHER OF THEM, PRIOR TO APPROVING SUCH VOTE, THE BROKERAGE ALLOCATION COMMITTEE MUST BE CONSULTED AND THE MATTER DISCUSSED. The Committee, in consultation with the Legal and Compliance Department, shall determine whether the potential conflict is material and if so, the appropriate method to resolve such conflict, based on the particular facts and circumstances, the importance of the proxy issue, whether the Portfolio Management Group team is proposing a vote that differs from recommendations made by our third-party service provider with respect to the issue and the nature of the conflict, so as to ensure that the voting of the proxy is not affected by the potential conflict. If the conflict is determined not to be material, the relevant Portfolio Management Group team shall vote the proxy in accordance with this Policy. Determinations of the Committee with respect to votes involving material conflicts of interest shall be documented in writing and maintained for a period of at least six years. With respect to votes in connection with securities held on a particular record date but sold from a client account prior to the holding of the related meeting, BlackRock may take no action on proposals to be voted on in such meeting. With respect to voting proxies of non-U.S. companies, a number of logistical problems may arise that may have a detrimental effect on BlackRock's ability to vote such proxies in the best interests of our clients. These problems include, but are not limited to, (i) untimely and/or 8 inadequate notice of shareholder meetings, (ii) restrictions on the ability of holders outside the issuer's jurisdiction of organization to exercise votes, (iii) requirements to vote proxies in person, if not practicable, (iv) the imposition of restrictions on the sale of the securities for a period of time in proximity to the shareholder meeting, and (v) impracticable or inappropriate requirements to provide local agents with power of attorney to facilitate the voting instructions. Accordingly, BlackRock may determine not to vote proxies if it believes that the restrictions or other detriments associated with such vote outweigh the benefits that will be derived by voting on the company's proposal. * * * * * Any questions regarding this Policy may be directed to the General Counsel of BlackRock. Approved: October 21, 1998 Revised: May 27, 2003 9 -----END PRIVACY-ENHANCED MESSAGE-----