N-Q 1 d86216dnq.htm BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-10499

Name of Fund:   BlackRock California Municipal 2018 Term Trust (BJZ)

Fund Address:     100 Bellevue Parkway, Wilmington, DE 19809

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

Municipal 2018 Term Trust, 55 East 52nd Street, New York, NY 10055

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

Date of fiscal year end: 12/31/2015

Date of reporting period: 09/30/2015


Item 1 – Schedule of Investments


Schedule of Investments September 30, 2015 (Unaudited)

  

BlackRock California Municipal 2018 Term Trust (BJZ)

(Percentages shown are based on Net Assets)

 

Municipal Bonds   

Par  

(000)

    Value  

California — 95.5%

                

Corporate — 4.4%

    

California Pollution Control Financing Authority, RB, Mandatory Put Bonds, Republic Services, Inc. Project, Series B, AMT, 5.25%, 6/01/23 (a)

   $ 2,020      $ 2,146,977   

California Pollution Control Financing Authority, Refunding RB, Mandatory Put Bonds, Republic Services, Inc. Project, Series C, AMT, 5.25%, 6/01/23 (a)

     2,030        2,157,606   
    

 

 

 
               4,304,583   

County/City/Special District/School District — 20.2%

    

City & County of San Francisco California, GO, Refunding, Series R-1, 5.00%, 6/15/18

     1,640        1,829,650   

City of Vista California, COP, Refunding, Community Projects (NPFGC) (b):

    

4.75%, 5/01/17

     1,115        1,190,140   

5.00%, 5/01/17

     1,000        1,071,340   

Fontana Public Finance Authority California, Refunding, Tax Allocation Bonds, North Fontana Redevelopment Project, Series A (AGM), 5.25%, 9/01/18

     3,395        3,398,768   

Irvine Unified School District California, Refunding, Special Tax Bonds, Community Facilities District No. 86-1 (AGM), 5.25%, 9/01/18

     5,000        5,561,300   

Jurupa Public Financing Authority, Refunding, Special Tax Bonds, Series A, 4.00%, 9/01/18

     380        409,097   

Lathrop Financing Authority, RB, Water Supply Project, 5.80%, 6/01/21

     470        472,308   

Lodi Unified School District California, GO, Refunding, (AGM), 4.00%, 8/01/18

     1,000        1,087,480   

Los Angeles Community College District California, GO, Election of 2001, Series E-1, 4.00%, 8/01/18

     200        218,084   
Municipal Bonds   

Par  

(000)

    Value  

California (continued)

                

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

  

Los Angeles Unified School District California, GO, Election of 2004, Series H (AGM), 5.00%, 7/01/17 (b)

   $ 300      $ 323,364   

Los Banos Unified School District California, GO, Election of 2008 (AGM), 5.00%, 8/01/17 (b)

     475        518,629   

Oakland Unified School District/Alameda County, GO, Refunding, 5.00%, 8/01/18

     900        987,597   

San Marcos Unified School District California, GO, CAB (c):

    

0.00%, 8/01/17

     385        377,388   

0.00%, 8/01/18

     500        481,320   

Santa Clara Unified School District California, GO, Election of 2004, Series A, 5.00%, 7/01/18

     1,690        1,885,313   
    

 

 

 
               19,811,778   

Education — 9.6%

    

California Municipal Finance Authority, Refunding RB, Series A:

    

3.00%, 1/01/17

     425        430,542   

3.00%, 1/01/18

     440        447,295   

State of California Public Works Board, Refunding RB, Trustees of the California State University, Series A, 5.00%, 10/01/17

     2,415        2,416,352   

University of California, Refunding RB:

    

General, Series AB, 5.00%, 5/15/19

     2,500        2,861,500   

Series A, 5.00%, 11/01/18

     900        1,015,659   

Series S, 5.00%, 5/15/18 (d)

     5        5,557   

Series S, 5.00%, 5/15/18

     1,995        2,220,535   
    

 

 

 
               9,397,440   

Health — 11.2%

    

California Health Facilities Financing Authority, RB:

    

Scripps Health, Series A, 5.00%, 10/01/18

     750        840,540   

Sutter Health, Series B, 5.00%, 8/15/19

     1,430        1,642,326   
 

 

                
   BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2015    1


Schedule of Investments (continued)

  

BlackRock California Municipal 2018 Term Trust (BJZ)

 

Municipal Bonds   

Par  

(000)

    Value  

California (continued)

                

Health (continued)

    

California Health Facilities Financing Authority, Refunding RB:

    

Adventist Health System/West, Series A, 4.00%, 3/01/18

   $ 1,000      $ 1,069,310   

Sutter Health, Series D, 5.00%, 8/15/18

     515        576,007   

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series E-1, 5.00%, 4/01/44 (a)

     4,700        5,021,574   

California Statewide Communities Development Authority, Refunding RB:

    

Episcopal Communities & Services, 5.00%, 5/15/18

     300        328,761   

Huntington Memorial Hospital, Series B, 5.00%, 7/01/18

     500        554,165   

County of Los Angeles California Redevelopment Authority, Refunding, Tax Allocation Bonds, South Gate Redevelopment Project No. 1 and Claremont Consolidated Redevelopment Project, Series A, 4.00%, 9/01/18

     850        925,480   
    

 

 

 
               10,958,163   

Housing — 1.5%

    

California HFA, RB, Series A (Fannie Mae):

    

3.20%, 8/01/18

     470        495,751   

3.50%, 2/01/19

     905        966,178   
    

 

 

 
               1,461,929   

State — 14.7%

    

State of California, GO, Refunding:

    

5.00%, 9/01/18

     5,900        6,619,564   

5.00%, 11/01/20

     20        20,081   

Various Purpose, 5.25%, 10/01/22

     4,000        4,896,040   

Veterans, Series BZ, AMT (NPFGC), 5.35%, 12/01/21

     10        10,031   

State of California, GO, Refunding Series A (d):

    

5.00%, 7/01/18

     560        624,557   

5.00%, 7/01/18

     160        178,445   
Municipal Bonds   

Par  

(000)

    Value  

California (continued)

                

State (continued)

    

State of California Public Works Board, Refunding RB, California Community Colleges, Series A, 5.00%, 12/01/17

   $ 2,020      $ 2,056,784   
    

 

 

 
               14,405,502   

Transportation — 6.8%

    

City of Long Beach California, RB, Series A, 5.00%, 5/15/18

     500        555,970   

Port of Oakland California, Refunding RB, Series O, AMT:

    

5.00%, 5/01/18

     2,500        2,757,150   

5.00%, 5/01/19

     3,000        3,390,330   
    

 

 

 
               6,703,450   

Utilities — 27.1%

    

California State Department of Water Resources, Refunding RB:

    

Series H, 5.00%, 5/01/18 (b)

     2,500        2,775,500   

Series H, 5.00%, 5/01/22

     1,000        1,107,230   

Series L, 5.00%, 5/01/19

     2,000        2,290,780   

Series N, 5.00%, 5/01/19

     3,500        4,008,865   

City of Riverside California Sewer Revenue, Refunding RB, Series A, 4.00%, 8/01/18

     1,000        1,085,130   

City of San Francisco California Public Utilities Commission Water Revenue, Refunding RB, Series D, 3.00%, 11/01/18

     2,000        2,133,380   

City of Tulare California Sewer Revenue, Refunding RB (AGM), 4.00%, 11/15/18

     315        342,884   

County of Los Angeles California Sanitation Districts Financing Authority, Refunding RB, Series A, 3.00%, 10/01/18

     3,000        3,204,180   

Cucamonga Valley California Water District, Refunding RB, Series A (AGM):

    

4.00%, 9/01/18

     325        354,253   

3.00%, 9/01/19

     375        402,199   

4.00%, 9/01/19

     325        361,003   

Los Angeles California Department of Water & Power, RB, Series B, 5.00%, 7/01/18

     600        670,740   

Los Angeles California Department of Water & Power, Refunding RB, Power System, Series A, 5.00%, 7/01/19

     2,500        2,863,400   

Sacramento California Municipal Utility District, Refunding RB, Series X, 5.00%, 8/15/18

     400        447,900   
 

 

                
2    BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2015   


Schedule of Investments (continued)

  

BlackRock California Municipal 2018 Term Trust (BJZ)

 

Municipal Bonds   

Par  

(000)

    Value  

California (continued)

                

Utilities (continued)

    

Southern California Public Power Authority, Refunding RB, Canyon Power, Series A, 4.00%, 7/01/18

   $ 685      $ 743,383   

Stockton East Water District California, COP, Refunding, Series B (NPFGC), 0.00%, 4/01/19 (c)

     4,590        3,744,201   
    

 

 

 
               26,535,028   
Total Municipal Bonds in California              93,577,873   
    

Guam — 0.3%

                

Utilities — 0.3%

    

Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/19

     240        274,322   

U.S. Virgin Islands — 2.8%

                

State — 2.8%

    

Virgin Islands Public Finance Authority, RB, Series A:

    

5.00%, 10/01/16

     930        965,786   

5.00%, 10/01/17

     970        1,034,447   
5.00%, 10/01/18      670        730,025   
Total Municipal Bonds in U.S. Virgin Islands              2,730,258   

Total Long-Term Investments

(Cost — $92,814,875) — 98.6%

  

  

    96,582,453   

 

Short-Term Securities    Shares     Value  

BIF California Municipal Money Fund, 0.00% (e)(f)

     314,746      $ 314,746   

Total Short-Term Securities

(Cost — $314,746) — 0.3%

             314,746   

Total Investments

(Cost — $93,129,621*) — 98.9%

  

  

    96,897,199   
Other Assets Less Liabilities 1.1%        1,055,892   
    

 

 

 
Net Assets Applicable to Common Shares — 100.0%      $ 97,953,091   
    

 

 

 

*    As of period end, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

 

      

Tax cost

     $ 93,129,621   
    

 

 

 

Gross unrealized appreciation

     $ 3,779,107   

Gross unrealized depreciation

       (11,529
    

 

 

 

Net unrealized appreciation

     $ 3,767,578   
    

 

 

 
 
Notes to Schedule of Investments

 

(a)   Variable rate security. Rate shown is as of report date.

 

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

 

(c)   Zero-coupon bond.

 

(d)   Security is collateralized by municipal bonds or U.S. Treasury obligations.

 

(e)   During the period ended September 30, 2015, investments in issuers considered to be an affiliate of the Trust for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliate      Shares Held
at December 31,
2014
       Net
Activity
      

Shares Held

at September 30,
2015

       Income  

BIF California Municipal Money Fund

       63,656           251,090           314,746             

 

(f)   Represents the current yield as of report date.

 

                
   BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST    SEPTEMBER 30, 2015    3


Schedule of Investments (concluded)

  

BlackRock California Municipal 2018 Term Trust (BJZ)

 

 

Portfolio Abbreviations

 

AGM    Assured Guaranty Municipal Corp.
AMT    Alternative Minimum Tax (subject to)
CAB    Capital Appreciation Bonds
COP    Certificates of Participation
GO    General Obligation Bonds
HFA    Housing Finance Agency
NPFGC    National Public Finance Guarantee Corp.
RB    Revenue Bonds

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

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

   

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access

 

   

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

 

   

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments, refer to the Trust’s most recent financial statements as contained in its semi-annual report.

The following table summarizes the Trust’s investments categorized in the disclosure hierarchy:

 

     Level 1        Level 2        Level 3        Total  

Assets:

                
Investments:                 

Long-Term Investments 1

            $ 96,582,453                   $ 96,582,453   

Short-Term Securities

  $ 314,746                               314,746   
 

 

 

 

Total

  $ 314,746         $ 96,582,453                   $ 96,897,199   
 

 

 

 

1    See above Schedule of Investments for values in each sector.

       

During the ended September 30, 2015, there were no transfers between levels.

 

                
4    BLACKROCK CALIFORNIA MUNICIPAL 2018 TERM TRUST    September 30, 2015   


Item 2 – Controls and Procedures

 

2(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

 

2(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

Certifications – Attached hereto


Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

BlackRock California Municipal 2018 Term Trust
By:      

/s/ John M. Perlowski

 
  John M. Perlowski  
  Chief Executive Officer (principal executive officer) of
  BlackRock California Municipal 2018 Term Trust

Date: November 23, 2015

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By:      

/s/ John M. Perlowski

 
  John M. Perlowski  
  Chief Executive Officer (principal executive officer) of
  BlackRock California Municipal 2018 Term Trust

Date: November 23, 2015

 

By:      

/s/ Neal J. Andrews

 
  Neal J. Andrews  
  Chief Financial Officer (principal financial officer) of
  BlackRock California Municipal 2018 Term Trust

Date: November 23, 2015