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: 811-21178
| Name of Fund: | BlackRock Municipal Income Quality Trust (BYM) |
| Fund Address: | 100 Bellevue Parkway, Wilmington, DE 19809 |
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Income Quality Trust, 50 Hudson Yards, New York, NY 10001
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2024
Date of reporting period: 01/31/2024
Item 1 – Report to Stockholders
(a) The Report to Shareholders is attached herewith.
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JANUARY 31, 2024 |
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2024 Semi-Annual Report (Unaudited)
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BlackRock California Municipal Income Trust (BFZ)
BlackRock Municipal 2030 Target Term Trust (BTT)
BlackRock Municipal Income Quality Trust (BYM)
BlackRock MuniHoldings California Quality Fund, Inc. (MUC)
BlackRock MuniHoldings Quality Fund II, Inc. (MUE)
| Not FDIC Insured • May Lose Value • No Bank Guarantee |
Dear Shareholder,
The combination of continued economic growth and cooling inflation provided a supportive backdrop for investors during the 12-month reporting period ended January 31, 2024. Significantly tighter monetary policy helped to rein in inflation, and the Consumer Price Index decelerated substantially in the first half of the period before stalling between 3% and 4% in the second half. A moderating labor market helped ease inflationary pressure, although wages continued to grow. Wage and job growth powered robust consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.
Equity returns were robust during the period, as interest rates stabilized and the economy proved to be more resilient than many investors expected. The U.S. economy continued to show strength, and growth further accelerated in the second half of 2023. Large-capitalization U.S. stocks posted particularly substantial gains, supported by the performance of a few notable technology companies, while small-capitalization U.S. stocks advanced at a significantly slower pace. Meanwhile, international developed market equities also gained, while emerging market stocks declined overall.
The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. However, shorter-duration U.S. Treasuries gained, as higher yields boosted returns. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.
The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates four times during the 12-month period, but paused its tightening in the second half of the period. The Fed also wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity.
Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has stopped tightening for now, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period despite the market’s hopes for interest rate cuts, as reflected in the recent rally. In this new regime, we anticipate greater volatility and dispersion of returns, creating more opportunities for selective portfolio management.
Looking at developed market stocks, we have an overweight stance on U.S. stocks overall, particularly given the promise of emerging AI technologies. We are also overweight Japanese stocks as shareholder-friendly policies generate increased investor interest, although we maintain an underweight stance on European stocks. In credit, there are selective opportunities in the near term despite tighter credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries and hard-currency emerging market bonds.
Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
Rob Kapito
President, BlackRock Advisors, LLC
| Total Returns as of January 31, 2024 | ||||||||
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6-Month
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12-Month
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|||||||
| U.S. large cap equities |
6.43% | 20.82% | ||||||
| U.S. small cap equities |
(2.02) | 2.40 | ||||||
| International equities |
3.15 | 10.01 | ||||||
| Emerging market equities |
(6.00) | (2.94) | ||||||
| 3-month Treasury bills |
2.73 | 5.13 | ||||||
| U.S. Treasury securities |
1.74 | (0.38) | ||||||
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U.S. investment grade bonds |
3.15 | 2.10 | ||||||
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Tax-exempt municipal bonds |
2.70 | 2.90 | ||||||
| U.S. high yield bonds |
6.18 | 9.28 | ||||||
| Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. |
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| Financial Statements: |
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Municipal Market Overview For the Reporting Period Ended January 31, 2024
Municipal Market Conditions
Municipals struggled at the start of the period as the Fed continued its tightening policy, raising fed fund rates to 5.25%—5.50%, before pausing in September. Subsequently, falling inflation, weakening economic growth, and the prolonged Fed pause led to more dovish expectations for monetary policy, causing a strong interest rate rally into year-end. As a result, municipals posted their strongest performance since the mid-1980s during the fourth quarter of 2023 before taking a step back to reassess macro expectations at the end of the period. Lower-rated credits and the long-end of the curve performed best.
| During the 12-months ended January 31, 2024, municipal bond funds experienced net outflows totaling $20 billion (based on data from the Investment Company Institute), as demand shifted from funds to individual bonds and ETFs. At the same time, the market contended with just $368 billion in issuance, a small increase from the $347 billion issued during the prior 12-month period, as issuers shied away from rising rates and volatility. |
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Bloomberg Municipal Bond Index Total Returns as of January 31, 2024 6 months: 2.70% 12 months: 2.90% | ||
A Closer Look at Yields
| AAA Municipal Yield Curves
Source: Thomson Municipal Market Data. |
From January 31, 2023, to January 31, 2024, yields on AAA-rated 30-year municipal bonds increased by 32 basis points (bps) from 3.20% to 3.52%, ten-year yields increased by 19 bps from 2.19% to 2.38%, five-year yields increased by 31 bps from 2.05% to 2.36%, and two-year yields increased by 47 bps from 2.17% to 2.64% (as measured by Refinitiv Municipal Market Data). As a result, the municipal yield curve flattened over the 12-month period with the spread between two-and 30-year maturities flattening by 15 bps to a slope of 88 bps. Still, the curve remained relatively steep compared to the inverted U.S. Treasury curve.
Outperformance throughout the period pushed relative valuations to extremely rich levels. Municipal-to-Treasury ratios ended well through their 5-year averages across the curve, with intermediate maturities approaching all-time lows. |
Financial Conditions of Municipal Issuers
With reserves at nearly an all-time high and debt service burden at a 50-year low, states are well-positioned to weather a potential economic slowdown. However, tax receipts are diverging for the states that primarily rely on consumption taxes, compared to their peers that depend on income taxes. State median revenues declined by a slight 1% for the rolling 12-months ending September 2023. States with regimes that favor sales taxes, such as Florida, Nevada, Texas, Tennessee, and Washington, all experienced positive revenue growth, while states that depend on personal income taxes, such as California and New York, experienced much greater declines in receipts, by 23% and 16%, respectively. Particularly in California’s case, the rating agencies have been patient, but the risk of downgrades has increased significantly. Meanwhile spreads remain surprisingly tight, reflecting investor indifference. Personal income tax collections should improve this April, due to a rebound in the financial markets, which should alleviate the strain on New York’s budget, but California will need to enact significant corrective action to address its reported $68 billion deficit. No sector is immune to an economic contraction; however, most municipal issuers are ultra-defensive since they provide essential services and can raise user fees or taxes to cover operations. Across all muni sectors, we anticipate borrowing to increase modestly in 2024 due to various potential factors: revenue shortfalls, aversion to fee increases, reluctance to cut programs, no future federal stimulus, preference to maintain liquidity, and deferral of capital expenditures. Patient investors will have better options in 2024 to buy solid credits in the primary market or discounted names in the secondary market.
The opinions expressed are those of BlackRock as of January 31, 2024 and are subject to change at any time due to changes in market or economic conditions. The comments should not be construed as a recommendation of any individual holdings or market sectors. Investing involves risk including loss of principal. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. There may be less information on the financial condition of municipal issuers than for public corporations. The market for municipal bonds may be less liquid than for taxable bonds. Some investors may be subject to Alternative Minimum Tax (“AMT”). Capital gains distributions, if any, are taxable.
The Bloomberg Municipal Bond Index, a broad, market value-weighted index, seeks to measure the performance of the U.S. municipal bond market. All bonds in the index are exempt from U.S. federal income taxes or subject to the AMT. Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.
| 4 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
The Benefits and Risks of Leveraging
The Trusts may utilize leverage to seek to enhance the distribution rate on, and net asset value (“NAV”) of, their common shares (“Common Shares”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.
In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by a Trust on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of each Trust (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Trust’s shareholders benefit from the incremental net income. The interest earned on securities purchased with the proceeds from leverage (after paying the leverage costs) is paid to shareholders in the form of dividends, and the value of these portfolio holdings (less the leverage liability) is reflected in the per share NAV.
To illustrate these concepts, assume a Trust’s Common Shares capitalization is $100 million and it utilizes leverage for an additional $30 million, creating a total value of $130 million available for investment in longer-term income securities. If prevailing short-term interest rates are 3% and longer-term interest rates are 6%, the yield curve has a strongly positive slope. In this case, a Trust’s financing costs on the $30 million of proceeds obtained from leverage are based on the lower short-term interest rates. At the same time, the securities purchased by a Trust with the proceeds from leverage earn income based on longer-term interest rates. In this case, a Trust’s financing cost of leverage is significantly lower than the income earned on a Trust’s longer-term investments acquired from such leverage proceeds, and therefore the holders of Common Shares (“Common Shareholders”) are the beneficiaries of the incremental net income.
However, in order to benefit Common Shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other costs of leverage exceed a Trust’s return on assets purchased with leverage proceeds, income to shareholders is lower than if a Trust had not used leverage. In such circumstance, the investment adviser may nevertheless determine to maintain a Trust’s leverage if it deems such action to be appropriate. Furthermore, the value of the Trusts’ portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can influence the value of portfolio investments. In contrast, the amount of each Trust’s obligations under its respective leverage arrangement generally does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAVs positively or negatively. Changes in the future direction of interest rates are very difficult to predict accurately, and there is no assurance that a Trust’s intended leveraging strategy will be successful.
The use of leverage also generally causes greater changes in each Trust’s NAV, market price and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV and market price of a Trust’s Common Shares than if the Trust were not leveraged. In addition, each Trust may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of leverage instruments, which may cause the Trust to incur losses. The use of leverage may limit a Trust’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Trust incurs expenses in connection with the use of leverage, all of which are borne by Common Shareholders and may reduce income to the Common Shares. Moreover, to the extent the calculation of each Trust’s investment advisory fees includes assets purchased with the proceeds of leverage, the investment advisory fees payable to the Trusts’ investment adviser will be higher than if the Trusts did not use leverage.
To obtain leverage, each Trust has issued Variable Rate Muni Term Preferred Shares (“VMTP Shares”) or Remarketable Variable Rate Muni Term Preferred Shares (“RVMTP Shares”) (collectively, “Preferred Shares”) and/or leveraged its assets through the use of tender option bond trusts (“TOB Trusts”) as described in the Notes to Financial Statements.
Under the Investment Company Act of 1940, as amended (the “1940 Act”), each Trust is permitted to borrow money (including through the use of TOB Trusts) or issue debt securities up to 33 1/3% of its total managed assets or equity securities (e.g., Preferred Shares) up to 50% of its total managed assets. A Trust may voluntarily elect to limit its leverage to less than the maximum amount permitted under the 1940 Act. In addition, a Trust may also be subject to certain asset coverage, leverage or portfolio composition requirements imposed by the Preferred Shares’ governing instruments or by agencies rating the Preferred Shares, which may be more stringent than those imposed by the 1940 Act.
Derivative Financial Instruments
The Trusts may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Trusts must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. The Trusts’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Trust can realize on an investment and/or may result in lower distributions paid to shareholders. The Trusts’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.
| T H E B E N E F I T S A N D R I S K S O F L E V E R A G I N G / D E R I V A T I V E F I N A N C I A L I N S T R U M E N T S |
5 |
| Trust Summary as of January 31, 2024 | BlackRock California Municipal Income Trust (BFZ) |
Investment Objective
BlackRock California Municipal Income Trust’s (BFZ) (the “Trust”) investment objective is to provide current income exempt from regular U.S. federal income and California income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and California income taxes. The Trust invests, under normal market conditions, at least 80% of its assets in municipal obligations that are investment grade quality, or are considered by the Trust’s investment adviser to be of comparable quality, at the time of investment. The Trust may invest directly in securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
Trust Information
| Symbol on New York Stock Exchange |
BFZ | |
| Initial Offering Date |
July 27, 2001 | |
| Yield on Closing Market Price as of January 31, 2024 ($11.80)(a) |
5.19% | |
| Tax Equivalent Yield(b) |
11.31% | |
| Current Monthly Distribution per Common Share(c) |
$0.051000 | |
| Current Annualized Distribution per Common Share(c) |
$0.612000 | |
| Leverage as of January 31, 2024(d) |
35% | |
| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |
| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 54.1%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| (c) | The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain. |
| (d) | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| 01/31/24 | 07/31/23 | Change | High | Low | ||||||||||||||||
| Closing Market Price |
$ | 11.80 | $ | 11.59 | 1.81 | % | $ | 12.03 | $ | 9.90 | ||||||||||
| Net Asset Value |
13.05 | 13.03 | 0.15 | 13.20 | 11.52 | |||||||||||||||
Performance
Returns for the period ended January 31, 2024 were as follows:
|
Average Annual Total Returns |
||||||||||||||||
| 6-month | 1 Year | 5 Years | 10 Years | |||||||||||||
| Trust at NAV(a)(b) |
2.49 | % | 2.83 | % | 2.01 | % | 3.35% | |||||||||
| Trust at Market Price(a)(b) |
4.19 | 7.42 | 2.89 | 2.86 | ||||||||||||
| California Customized Reference Benchmark(c) |
2.79 | 2.78 | 2.00 | N/A | ||||||||||||
| Bloomberg Municipal Bond Index(d) |
2.70 | 2.90 | 2.00 | 2.78 | ||||||||||||
| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage, if any. |
| (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. |
| (c) | The California Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond: California Exempt Total Return Index Unhedged (90%) and the California Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). The California Customized Reference Benchmark commenced on September 30, 2016. |
| (d) | An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results.
The Trust is presenting the performance of one or more indices for informational purposes only. The Trust is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Trust’s investment strategies, portfolio components or past or future performance.
More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Trust’s absolute performance based on NAV:
Municipal bonds posted solid gains in the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.
The Trust’s holdings in higher-quality investment-grade securities with longer duration characteristics contributed to performance. (Duration is a measure of interest rate sensitivity.) Within this category, longer-maturity bonds performed particularly well. On the other end of the spectrum, positions in lower-duration securities made smaller contributions.
| 6 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Trust Summary as of January 31, 2024 (continued) | BlackRock California Municipal Income Trust (BFZ) |
All sectors produced positive returns, with the largest contributions coming from school districts, transportation, corporate-backed, and healthcare issues due to their higher weightings in the portfolio.
The Trust continued to use U.S. Treasury futures on a limited basis in an effort to mitigate interest rate risk. This aspect of its strategy had a minimal effect on results. Believing yields were unlikely to rise significantly from already elevated levels, the investment adviser reduced the extent of the risk-management strategy. The Trust continued to use leverage, but the performance impact was muted due to increased borrowing costs.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Overview of the Trust’s Total Investments
| SECTOR ALLOCATION |
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| Sector(a)(b) | Percentage of Total Investments |
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| County/City/Special District/School District |
24.4 | % | ||
| Transportation |
22.6 | |||
| Health |
15.7 | |||
| Utilities |
15.1 | |||
| Corporate |
11.5 | |||
| State |
3.8 | |||
| Tobacco |
3.5 | |||
| Education |
2.7 | |||
| Housing |
0.7 | |||
| CALL/MATURITY SCHEDULE |
| |||
| Calendar Year Ended December 31,(a)(c) | Percentage | |||
| 2024 |
2.3 | % | ||
| 2025 |
0.3 | |||
| 2026 |
6.6 | |||
| 2027 |
16.2 | |||
| 2028 |
12.3 | |||
| CREDIT QUALITY ALLOCATION | ||||
| Credit Rating(a)(d) | Percentage of Total Investments |
|||
| AAA/Aaa |
4.9 | % | ||
| AA/Aa |
62.6 | |||
| A |
23.4 | |||
| BBB/Baa |
3.8 | |||
| BB/Ba |
0.1 | |||
| N/R(e) |
5.2 | |||
| (a) | Excludes short-term securities. |
| (b) | For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
| (c) | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (d) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Trust’s total investments. |
| T R U S T S U M M A R Y |
7 |
| Trust Summary as of January 31, 2024 | BlackRock Municipal 2030 Target Term Trust (BTT) |
Investment Objective
BlackRock Municipal 2030 Target Term Trust’s (BTT) (the “Trust”) investment objectives are to provide current income exempt from regular U.S. federal income tax (but which may be subject to the federal alternative minimum tax in certain circumstances) and to return $25.00 per common share (the initial offering price per share) to holders of common shares on or about December 31, 2030. The Trust seeks to achieve its investment objectives by investing at least 80% of its assets in municipal bonds exempt from U.S. federal income taxes (except that the interest may be subject to the federal alternative minimum tax). The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality, or are considered by the Trust’s investment adviser to be of comparable quality, at the time of investment. The Trust actively manages the maturity of its bonds to seek to have a dollar weighted average effective maturity approximately equal to the Trust’s maturity date. The Trust may invest directly in securities or synthetically through the use of derivatives.
There is no assurance that the Trust will achieve its investment objectives, including its investment objective of returning $25.00 per share.
Trust Information
| Symbol on New York Stock Exchange |
BTT | |
| Initial Offering Date |
August 30, 2012 | |
| Termination Date (on or about) |
December 31, 2030 | |
| Yield on Closing Market Price as of January 31, 2024 ($21.36)(a) |
2.61% | |
| Tax Equivalent Yield(b) |
4.41% | |
| Current Monthly Distribution per Common Share(c) |
$0.046400 | |
| Current Annualized Distribution per Common Share(c) |
$0.556800 | |
| Leverage as of January 31, 2024(d) |
34% | |
| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |
| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| (c) | The distribution rate is not constant and is subject to change. |
| (d) | Represents RVMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to RVMTP Shares and TOB Trusts, minus the sum of accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| 01/31/24 | 07/31/23 | Change | High | Low | ||||||||||||||||
| Closing Market Price |
$ | 21.36 | $ | 21.00 | 1.71 | % | $ | 21.36 | $ | 18.96 | ||||||||||
| Net Asset Value |
23.94 | 23.55 | 1.66 | 24.07 | 22.17 | |||||||||||||||
Performance
Returns for the period ended January 31, 2024 were as follows:
|
Average Annual Total Returns |
||||||||||||||||
| 6-month | 1 Year | 5 Years | 10 Years | |||||||||||||
| Trust at NAV(a)(b) |
3.15 | % | 2.85 | % | 3.18 | % | 5.70% | |||||||||
| Trust at Market Price(a)(b) |
3.21 | (0.89 | ) | 2.83 | 5.20 | |||||||||||
| Customized Reference Benchmark(c) |
2.42 | 2.07 | 2.24 | N/A | ||||||||||||
| Bloomberg Municipal Bond Index(d) |
2.70 | 2.90 | 2.00 | 2.78 | ||||||||||||
| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage, if any. |
| (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. |
| (c) | The Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond 2030 Index (90%) and the Bloomberg Municipal Bond: High Yield (non-Investment Grade) 2030 Total Return Index (10%). The Customized Reference Benchmark commenced on September 30, 2016. |
| (d) | An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results.
The Trust is presenting the performance of one or more indices for informational purposes only. The Trust is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Trust’s investment strategies, portfolio components or past or future performance.
More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Trust’s absolute performance based on NAV:
Municipal bonds posted solid gains for the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.
| 8 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Trust Summary as of January 31, 2024 (continued) | BlackRock Municipal 2030 Target Term Trust (BTT) |
At a time of positive market performance, all sectors delivered gains. Corporate-backed, state tax-backed, transportation, and healthcare issues made the largest contributions. All ratings tiers and coupons delivered positive absolute returns, with the strongest results coming from A and AA rated bonds and 5% coupons, respectively.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Overview of the Trust’s Total Investments
| SECTOR ALLOCATION |
| |||
| Sector(a)(b) | Percentage of Total Investments |
|||
| Transportation |
24.8 | % | ||
| Corporate |
20.2 | |||
| Health |
14.9 | |||
| County/City/Special District/School District |
13.5 | |||
| State |
11.0 | |||
| Education |
7.0 | |||
| Utilities |
5.1 | |||
| Tobacco |
1.8 | |||
| Housing |
1.7 | |||
| CALL/MATURITY SCHEDULE |
| |||
| Calendar Year Ended December 31,(a)(c) | Percentage | |||
| 2024 |
12.9 | % | ||
| 2025 |
5.6 | |||
| 2026 |
15.8 | |||
| 2027 |
14.2 | |||
| 2028 |
13.9 | |||
| CREDIT QUALITY ALLOCATION | ||||
| Credit Rating(a)(d) | Percentage of Total Investments |
|||
| AAA/Aaa |
4.4 | % | ||
| AA/Aa |
34.0 | |||
| A |
39.0 | |||
| BBB/Baa |
8.8 | |||
| BB/Ba |
3.7 | |||
| B |
0.2 | |||
| N/R(e) |
9.9 | |||
| (a) | Excludes short-term securities. |
| (b) | For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
| (c) | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (d) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Trust’s total investments. |
| T R U S T S U M M A R Y |
9 |
| Trust Summary as of January 31, 2024 | BlackRock Municipal Income Quality Trust (BYM) |
Investment Objective
BlackRock Municipal Income Quality Trust’s (BYM) (the “Trust”) investment objective is to provide current income exempt from U.S. federal income taxes, including the alternative minimum tax. The Trust seeks to achieve its investment objective by investing, under normal circumstances, at least 80% of its managed assets in municipal bonds exempt from U.S. federal income taxes, including the U.S. federal alternative minimum tax. The Trust also invests at least 80% of its managed assets in municipal bonds that are investment grade quality at the time of investment or, if unrated, determined to be of comparable quality by the investment adviser at the time of investment. The Trust may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by BlackRock to be of comparable quality, at the time of purchase. The Trust may invest directly in securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
Trust Information
| Symbol on New York Stock Exchange |
BYM | |
| Initial Offering Date |
October 31, 2002 | |
| Yield on Closing Market Price as of January 31, 2024 ($11.29)(a) |
5.58% | |
| Tax Equivalent Yield(b) |
9.43% | |
| Current Monthly Distribution per Common Share(c) |
$0.052500 | |
| Current Annualized Distribution per Common Share(c) |
$0.630000 | |
| Leverage as of January 31, 2024(d) |
33% | |
| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |
| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| (c) | The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain. |
| (d) | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| 01/31/24 | 07/31/23 | Change | High | Low | ||||||||||||||||
| Closing Market Price |
$ | 11.29 | $ | 11.23 | 0.53 | % | $ | 11.54 | $ | 9.34 | ||||||||||
| Net Asset Value |
12.78 | 12.73 | 0.39 | 12.95 | 11.18 | |||||||||||||||
Performance
Returns for the period ended January 31, 2024 were as follows:
|
Average Annual Total Returns |
||||||||||||||||
| 6-month | 1 Year | 5 Years | 10 Years | |||||||||||||
| Trust at NAV(a)(b) |
2.83 | % | 2.04 | % | 1.94 | % | 3.91% | |||||||||
| Trust at Market Price(a)(b) |
2.97 | (0.17 | ) | 1.51 | 3.32 | |||||||||||
| Customized Reference Benchmark(c) |
2.80 | 2.97 | 2.12 | N/A | ||||||||||||
| Bloomberg Municipal Bond Index(d) |
2.70 | 2.90 | 2.00 | 2.78 | ||||||||||||
| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage, if any. |
| (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. |
| (c) | The Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond Index Total Return Index Value Unhedged (90%) and the Bloomberg Municipal Bond: High Yield ex AMT (non-Investment Grade) Total Return Index (10%). The Customized Reference Benchmark commenced on September 30, 2016. |
| (d) | An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results.
The Trust is presenting the performance of one or more indices for informational purposes only. The Trust is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Trust’s investment strategies, portfolio components or past or future performance.
More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Trust’s absolute performance based on NAV:
Municipal bonds posted solid gains for the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.
Holdings in long-dated securities, which outperformed the broader market, contributed the most to performance given their high weighting in the Trust. Positions in high-quality bonds, especially in the tax-backed state and corporate-backed sectors, further contributed. The Trust’s use of leverage contributed to returns by increasing overall portfolio duration and income. (Duration is a measure of interest rate sensitivity.) While higher short-term borrowing costs reduced the income benefit of leverage, the investment adviser actively engaged in tax-loss selling and rotated the proceeds into higher-yielding securities.
| 10 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Trust Summary as of January 31, 2024 (continued) | BlackRock Municipal Income Quality Trust (BYM) |
The Trust continued to use U.S. Treasury futures in an effort to mitigate interest rate risk, which detracted from performance at a time in which yields fell. Select securities in the housing sector, primarily those with lower coupons or lower ratings that lagged during the rally in the latter half of the reporting period, also detracted.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Overview of the Trust’s Total Investments
| SECTOR ALLOCATION |
| |||
| Sector(a)(b) | Percentage of Total Investments |
|||
| County/City/Special District/School District |
19.9 | % | ||
| Utilities |
15.0 | |||
| Transportation |
14.2 | |||
| State |
13.7 | |||
| Health |
12.4 | |||
| Corporate |
12.0 | |||
| Education |
6.2 | |||
| Tobacco |
4.2 | |||
| Housing |
2.4 | |||
| CALL/MATURITY SCHEDULE |
| |||
| Calendar Year Ended December 31,(a)(c) | Percentage | |||
| 2024 |
6.9 | % | ||
| 2025 |
7.3 | |||
| 2026 |
3.1 | |||
| 2027 |
5.7 | |||
| 2028 |
14.6 | |||
| CREDIT QUALITY ALLOCATION | ||||
| Credit Rating(a)(d) | Percentage of Total Investments |
|||
| AAA/Aaa |
11.8 | % | ||
| AA/Aa |
39.8 | |||
| A |
22.4 | |||
| BBB/Baa |
8.4 | |||
| BB/Ba |
2.4 | |||
| B |
0.3 | |||
| N/R(e) |
14.9 | |||
| (a) | Excludes short-term securities. |
| (b) | For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
| (c) | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (d) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Trust’s total investments. |
| T R U S T S U M M A R Y |
11 |
| Trust Summary as of January 31, 2024 | BlackRock MuniHoldings California Quality Fund, Inc. (MUC) |
Investment Objective
BlackRock MuniHoldings California Quality Fund, Inc.’s (MUC) (the “Trust”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes and California personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax) and California personal income taxes. Under normal market conditions, the Trust invests at least 80% of its assets in investment grade municipal obligations with remaining maturities of one year or more at the time of investment. The municipal obligations in which the Trust primarily invests are either rated investment grade quality, or are considered by the Trust’s investment adviser to be of comparable quality, at the time of investment. The Trust may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Trust’s investment adviser to be of comparable quality, at the time of purchase. The Trust may invest directly in securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
Trust Information
| Symbol on New York Stock Exchange |
MUC | |
| Initial Offering Date |
February 27, 1998 | |
| Yield on Closing Market Price as of January 31, 2024 ($11.14)(a) |
5.22% | |
| Tax Equivalent Yield(b) |
11.37% | |
| Current Monthly Distribution per Common Share(c) |
$0.048500 | |
| Current Annualized Distribution per Common Share(c) |
$0.582000 | |
| Leverage as of January 31, 2024(d) |
36% | |
| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |
| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal and state tax rate of 54.1%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| (c) | The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain. |
| (d) | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| 01/31/24 | 07/31/23 | Change | High | Low | ||||||||||||||||
| Closing Market Price |
$ | 11.14 | $ | 10.85 | 2.67 | % | $ | 11.27 | $ | 9.21 | ||||||||||
| Net Asset Value |
12.74 | 12.68 | 0.47 | 12.94 | 11.02 | |||||||||||||||
Performance
Returns for the period ended January 31, 2024 were as follows:
|
Average Annual Total Returns |
||||||||||||||||
| 6-month | 1 Year | 5 Years | 10 Years | |||||||||||||
| Trust at NAV(a)(b) |
2.71 | % | 2.35 | % | 1.34 | % | 3.07% | |||||||||
| Trust at Market Price(a)(b) |
4.96 | 0.76 | 1.55 | 2.70 | ||||||||||||
| California Customized Reference Benchmark(c) |
2.79 | 2.78 | 2.00 | N/A | ||||||||||||
| Bloomberg Municipal Bond Index(d) |
2.70 | 2.90 | 2.00 | 2.78 | ||||||||||||
| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage, if any. |
| (b) | The Trust’s discount to NAV narrowed during the period, which accounts for the difference between performance based on market price and performance based on NAV. |
| (c) | The California Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond: California Exempt Total Return Index Unhedged (90%) and the California Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). The California Customized Reference Benchmark commenced on September 30, 2016. |
| (d) | An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results.
The Trust is presenting the performance of one or more indices for informational purposes only. The Trust is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Trust’s investment strategies, portfolio components or past or future performance.
More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Trust’s absolute performance based on NAV:
Municipal bonds posted solid gains in the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.
| 12 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Trust Summary as of January 31, 2024 (continued) | BlackRock MuniHoldings California Quality Fund, Inc. (MUC) |
Holdings in long-dated securities, which outperformed the broader market, contributed the most to performance given their high weighting in the Trust. At the sector level, positions in utilities, education, and transportation issues were the largest contributors. The Trust’s use of leverage contributed to returns by increasing overall portfolio duration and income. (Duration is a measure of interest rate sensitivity.) While higher short-term borrowing costs reduced the income benefit of leverage, the investment adviser actively engaged in tax-loss selling and rotated the proceeds into higher-yielding securities.
The Trust continued to use U.S. Treasury futures in an effort to mitigate interest rate risk, which detracted from performance at a time in which yields fell. Holdings in some high-yield securities in the workforce housing sector, which didn’t keep pace with the December rally in the broader market, also detracted modestly.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Overview of the Trust’s Total Investments
| SECTOR ALLOCATION |
| |||
| Sector(a)(b) | Percentage of Total Investments |
|||
| County/City/Special District/School District |
25.8 | % | ||
| Transportation |
16.6 | |||
| Corporate |
13.6 | |||
| Education |
11.9 | |||
| Utilities |
11.8 | |||
| State |
9.1 | |||
| Health |
5.9 | |||
| Housing |
3.5 | |||
| Tobacco |
1.8 | |||
| CALL/MATURITY SCHEDULE |
| |||
| Calendar Year Ended December 31,(a)(c) | Percentage | |||
| 2024 |
2.6 | % | ||
| 2025 |
0.3 | |||
| 2026 |
3.4 | |||
| 2027 |
12.7 | |||
| 2028 |
16.0 | |||
| CREDIT QUALITY ALLOCATION | ||||
| Credit Rating(a)(d) | Percentage of Total Investments |
|||
| AAA/Aaa |
4.7 | % | ||
| AA/Aa |
56.7 | |||
| A |
21.7 | |||
| BBB/Baa |
4.0 | |||
| BB/Ba |
0.1 | |||
| N/R(e) |
12.8 | |||
| (a) | Excludes short-term securities. |
| (b) | For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
| (c) | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (d) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Trust’s total investments. |
| T R U S T S U M M A R Y |
13 |
| Trust Summary as of January 31, 2024 | BlackRock MuniHoldings Quality Fund II, Inc. (MUE) |
Investment Objective
BlackRock MuniHoldings Quality Fund II, Inc.’s (MUE) (the “Trust”) investment objective is to provide shareholders with current income exempt from U.S. federal income taxes. The Trust seeks to achieve its investment objective by investing primarily in long-term, investment grade municipal obligations exempt from U.S. federal income taxes (except that the interest may be subject to the U.S. federal alternative minimum tax). The municipal obligations in which the Trust primarily invests are either rated investment grade quality, or are considered by the Trust’s investment adviser to be of comparable quality, at the time of investment. Under normal market conditions, the Trust invests at least 80% of its assets in municipal obligations with remaining maturities of one year or more at the time of investment. The Trust may invest up to 20% of its managed assets in securities that are rated below investment grade, or are considered by the Trust’s investment adviser to be of comparable quality, at the time of purchase. The Trust may invest directly in securities or synthetically through the use of derivatives.
No assurance can be given that the Trust’s investment objective will be achieved.
Trust Information
| Symbol on New York Stock Exchange |
MUE | |
| Initial Offering Date |
February 26, 1999 | |
|
Yield on Closing Market Price as of January 31, 2024 ($9.88)(a) |
5.47% | |
| Tax Equivalent Yield(b) |
9.24% | |
| Current Monthly Distribution per Common Share(c) |
$0.045000 | |
| Current Annualized Distribution per Common Share(c) |
$0.540000 | |
| Leverage as of January 31, 2024(d) |
30% | |
| (a) | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance is not an indication of future results. |
| (b) | Tax equivalent yield assumes the maximum marginal U.S. federal tax rate of 40.8%, which includes the 3.8% Medicare tax. Actual tax rates will vary based on income, exemptions and deductions. Lower taxes will result in lower tax equivalent yields. |
| (c) | The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a return of capital or net realized gain. |
| (d) | Represents VMTP Shares and TOB Trusts as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOB Trusts, minus the sum of its accrued liabilities. Does not reflect derivatives or other instruments that may give rise to economic leverage. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging and Derivative Financial Instruments. |
Market Price and Net Asset Value Per Share Summary
| 01/31/24 | 07/31/23 | Change | High | Low | ||||||||||||||||
| Closing Market Price |
$ | 9.88 | $ | 9.93 | (0.50 | )% | $ | 10.14 | $ | 8.54 | ||||||||||
| Net Asset Value |
11.62 | 11.42 | 1.75 | 11.78 | 10.37 | |||||||||||||||
Performance
Returns for the period ended January 31, 2024 were as follows:
|
Average Annual Total Returns |
||||||||||||||||
| 6-month | 1 Year | 5 Years | 10 Years | |||||||||||||
| Trust at NAV(a)(b) |
3.96 | % | 3.86 | % | 1.78 | % | 3.57% | |||||||||
| Trust at Market Price(a)(b) |
1.65 | (1.45 | ) | 0.61 | 2.70 | |||||||||||
| National Customized Reference Benchmark(c) |
2.77 | 3.02 | 2.13 | N/A | ||||||||||||
| Bloomberg Municipal Bond Index(d) |
2.70 | 2.90 | 2.00 | 2.78 | ||||||||||||
| (a) | All returns reflect reinvestment of dividends and/or distributions at actual reinvestment prices. Performance results reflect the Trust’s use of leverage, if any. |
| (b) | The Trust’s discount to NAV widened during the period, which accounts for the difference between performance based on market price and performance based on NAV. |
| (c) | The National Customized Reference Benchmark is comprised of the Bloomberg Municipal Bond Index Total Return Index Value Unhedged (90%) and the Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (10%). The National Customized Reference Benchmark commenced on September 30, 2016. |
| (d) | An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds. |
Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.
Past performance is not an indication of future results.
The Trust is presenting the performance of one or more indices for informational purposes only. The Trust is actively managed and does not seek to track or replicate the performance of any index. The index performance shown is not intended to be indicative of the Trust’s investment strategies, portfolio components or past or future performance.
More information about the Trust’s historical performance can be found in the “Closed End Funds” section of blackrock.com.
The following discussion relates to the Trust’s absolute performance based on NAV:
Municipal bonds posted solid gains for the six-month period behind continued optimism that the Fed would begin to cut interest rates in 2024.
| 14 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Trust Summary as of January 31, 2024 (continued) | BlackRock MuniHoldings Quality Fund II, Inc. (MUE) |
At a time of positive market performance, all sectors delivered gains. Transportation, state tax-backed, and healthcare issues made the largest contributions. All ratings tiers, maturities, and coupons delivered positive absolute returns, with the strongest results coming from A and AA bonds, securities maturing in 25 years or more, and 4% and 5% coupons, respectively. Bonds with lower coupons and lower dollar prices generally outperformed higher-coupon issues priced at a premium. The only notable detractors were a few individual positions that posted negative returns due to issuer-specific factors. The Trust’s cash position had no material impact on performance. The Trust continued to use leverage, but the performance impact was muted due to increased borrowing costs.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Overview of the Trust’s Total Investments
| SECTOR ALLOCATION |
| |||
| Sector(a)(b) | Percentage of Total Investments |
|||
| Transportation |
30.1 | % | ||
| State |
15.2 | |||
| Health |
13.1 | |||
| County/City/Special District/School District |
11.8 | |||
| Corporate |
10.4 | |||
| Education |
8.2 | |||
| Housing |
4.7 | |||
| Utilities |
4.2 | |||
| Tobacco |
2.3 | |||
| CALL/MATURITY SCHEDULE |
| |||
| Calendar Year Ended December 31,(a)(c) | Percentage | |||
| 2024 |
12.8 | % | ||
| 2025 |
3.8 | |||
| 2026 |
1.9 | |||
| 2027 |
10.3 | |||
| 2028 |
14.4 | |||
| CREDIT QUALITY ALLOCATION | ||||
| Credit Rating(a)(d) | Percentage of Total Investments |
|||
| AAA/Aaa |
3.8 | % | ||
| AA/Aa |
45.4 | |||
| A |
25.2 | |||
| BBB/Baa |
8.9 | |||
| BB/Ba |
1.9 | |||
| B |
0.5 | |||
| N/R(e) |
14.3 | |||
| (a) | Excludes short-term securities. |
| (b) | For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease. |
| (c) | Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years. |
| (d) | For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change. |
| (e) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of January 31, 2024, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Trust’s total investments. |
| T R U S T S U M M A R Y |
15 |
| Schedule of Investments (unaudited) January 31, 2024 |
BlackRock California Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Municipal Bonds |
||||||||
| California — 127.2% | ||||||||
| Corporate(a) — 17.3% | ||||||||
| California Community Choice Financing Authority, RB |
||||||||
| Series G, 5.25%, 11/01/54 |
$ | 10,000 | $ | 10,727,700 | ||||
| Sustainability Bonds, 5.00%, 07/01/53 |
12,000 | 12,616,440 | ||||||
| Sustainability Bonds, 5.00%, 12/01/53 |
10,000 | 10,522,400 | ||||||
| Sustainability Bonds, 5.25%, 01/01/54 |
3,000 | 3,170,754 | ||||||
| Sustainability Bonds, 5.50%, 10/01/54 |
10,035 | 11,043,316 | ||||||
| Series A-1, Sustainability Bonds, 4.00%, 05/01/53 |
15,000 | 15,040,343 | ||||||
| Series E-1, Sustainability Bonds, 5.00%, 02/01/54 |
4,545 | 4,877,701 | ||||||
|
|
|
|||||||
| 67,998,654 | ||||||||
| County/City/Special District/School District — 28.1% | ||||||||
| Butte-Glenn Community College District, GO, Series A, Election 2016, 5.25%, 08/01/46 |
1,420 | 1,518,535 | ||||||
| California Statewide Communities Development Authority, SAB, Series B, 5.00%, 09/02/52 |
565 | 535,523 | ||||||
| Chabot-Las Positas Community College District, GO, Series C, Election 2016, 5.25%, 08/01/48 |
6,925 | 7,880,538 | ||||||
| Chino Valley Unified School District, GO, Series B, 4.00%, 08/01/45 |
9,210 | 9,334,571 | ||||||
| City & County of San Francisco California, GO, Series 2020, Class D-1, 4.00%, 06/15/46 |
2,500 | 2,549,514 | ||||||
| City & County of San Francisco California, Refunding COP, Class A, Sustainability Bonds, 4.00%, 04/01/40 |
6,635 | 6,760,947 | ||||||
| City of Sacramento California Transient Occupancy Tax Revenue, RB, Series A, Convertible, 5.00%, 06/01/43 |
1,570 | 1,685,081 | ||||||
| Corona-Norco Unified School District, GO |
||||||||
| Series C, 4.00%, 08/01/49 |
3,000 | 3,028,773 | ||||||
| Series B, Election 2014, 5.00%, 08/01/47 |
5,000 | 5,329,890 | ||||||
| Dublin Unified School District, GO |
||||||||
| Series B, Election 2020, 4.00%, 08/01/44 |
4,970 | 5,151,989 | ||||||
| Series B, Election 2020, 4.00%, 08/01/45 |
6,625 | 6,836,795 | ||||||
| Escondido Union School District, GO, Series B, Election 2014, 4.00%, 08/01/47 |
2,500 | 2,515,941 | ||||||
| Garden Grove Unified School District, GO, Election 2016, 4.00%, 08/01/45 |
1,320 | 1,331,795 | ||||||
| Grossmont Union High School District, GO, Series I-2, 4.00%, 08/01/44 |
5,115 | 5,218,980 | ||||||
| Hartnell Community College District, GO, Series A, Election 2016, 4.00%, 08/01/47 |
2,995 | 3,016,136 | ||||||
| Mount San Antonio Community College District, Refunding GO, Series 2018-A, Election 2018, 4.00%, 08/01/49 |
8,000 | 8,083,229 | ||||||
| Mount San Jacinto Community College District, GO, Series B, Election 2014, 4.00%, 08/01/43 |
2,000 | 2,039,113 | ||||||
| Napa Valley Unified School District, GO, Series A, Election 2016, 4.00%, 08/01/38 |
2,925 | 2,987,735 | ||||||
| North Orange County Community College District, GO, Series B, Election 2014, 4.00%, 08/01/44 |
2,680 | 2,739,346 | ||||||
| Peralta Community College District, Refunding GO, Series A, 4.00%, 08/01/32 |
7,335 | 7,387,461 | ||||||
| San Bernardino City Unified School District, GO, Series D, Election 2012, (AGM), 4.00%, 08/01/42 |
1,210 | 1,224,586 | ||||||
| San Diego Unified School District, GO |
||||||||
| Series L, 4.00%, 07/01/44 |
4,035 | 4,118,578 | ||||||
| Sustainability Bonds, 5.00%, 07/01/48 |
3,000 | 3,353,634 | ||||||
| San Jose Evergreen Community College District, GO, Series C, Election 2016, 4.00%, 09/01/45 |
3,740 | 3,823,045 | ||||||
| Security | Par (000) |
Value | ||||||
| County/City/Special District/School District (continued) | ||||||||
| San Lorenzo Unified School District, GO, 4.00%, 08/01/41 |
$ | 345 | $ | 353,640 | ||||
| San Mateo Joint Powers Financing Authority, RB, Series A, 5.00%, 07/15/43 |
1,965 | 2,099,058 | ||||||
| Santa Clara Unified School District, GO, Election 2014, 4.00%, 07/01/41 |
5,000 | 5,079,925 | ||||||
| West Valley-Mission Community College District, GO, Series A, 4.00%, 08/01/44 |
4,000 | 4,101,684 | ||||||
|
|
|
|||||||
| 110,086,042 | ||||||||
| Education — 4.0% | ||||||||
| California Enterprise Development Authority, RB, 8.00%, 11/15/62(b) |
540 | 533,327 | ||||||
| California Municipal Finance Authority, Refunding RB(b) |
||||||||
| 5.00%, 08/01/39 |
425 | 398,042 | ||||||
| 5.00%, 08/01/48 |
510 | 442,247 | ||||||
| California School Finance Authority, RB(b) |
||||||||
| Series A, 4.00%, 06/01/41 |
600 | 500,843 | ||||||
| Series A, 5.00%, 06/01/58 |
2,120 | 1,925,437 | ||||||
| California School Finance Authority, Refunding RB(b) |
||||||||
| Sustainability Bonds, 5.50%, 08/01/43 |
130 | 133,318 | ||||||
| Sustainability Bonds, 5.50%, 08/01/47 |
125 | 126,462 | ||||||
| Hastings Campus Housing Finance Authority, RB(b) |
||||||||
| Series A, Sustainability Bonds, 5.00%, 07/01/45 |
355 | 316,030 | ||||||
| Series A, Sustainability Bonds, 5.00%, 07/01/61 |
3,000 | 2,502,258 | ||||||
| University of California, RB, Series AV, 5.00%, 05/15/47 |
8,440 | 8,868,484 | ||||||
|
|
|
|||||||
| 15,746,448 | ||||||||
| Health — 19.3% | ||||||||
| California Health Facilities Financing Authority, RB |
||||||||
| 5.00%, 11/15/42 |
1,000 | 1,041,510 | ||||||
| Series A, 5.00%, 11/15/48 |
6,190 | 6,430,312 | ||||||
| California Health Facilities Financing Authority, Refunding RB |
||||||||
| Class A, 5.00%, 08/15/51 |
9,210 | 9,905,678 | ||||||
| Series A, 4.00%, 08/15/40 |
1,350 | 1,392,998 | ||||||
| Series A, 4.00%, 11/15/40 |
2,450 | 2,488,832 | ||||||
| Series A, 5.00%, 11/15/41(c) |
14,830 | 17,059,302 | ||||||
| Series A, 4.00%, 04/01/44 |
4,000 | 3,956,201 | ||||||
| Series A, 4.00%, 08/15/48 |
5,000 | 4,971,822 | ||||||
| Series A, 4.00%, 11/15/48 |
3,870 | 3,759,047 | ||||||
| Series A, 5.00%, 11/15/48 |
7,195 | 7,474,328 | ||||||
| Series A-2, 4.00%, 11/01/44 |
2,825 | 2,786,636 | ||||||
| California Public Finance Authority, Refunding RB, Series A, 4.00%, 08/01/47 |
1,000 | 1,002,377 | ||||||
| California Statewide Communities Development Authority, Refunding RB, 5.00%, 10/01/45 |
1,860 | 1,888,101 | ||||||
| Regents of the University of California Medical Center Pooled Revenue, RB |
||||||||
| Series P, 4.00%, 05/15/43 |
9,095 | 9,267,099 | ||||||
| Series P, 5.00%, 05/15/47 |
2,000 | 2,212,832 | ||||||
|
|
|
|||||||
| 75,637,075 | ||||||||
| Housing — 1.2% | ||||||||
| California Community Housing Agency, RB, M/F Housing, Series A-2, 4.00%, 02/01/50(b) |
375 | 267,160 | ||||||
| California Housing Finance Agency, RB, M/F Housing, Series A, 4.25%, 01/15/35 |
1 | 663 | ||||||
| CMFA Special Finance Agency VIII, RB, M/F Housing, Series A-1, 3.00%, 08/01/56(b) |
1,050 | 674,269 | ||||||
| 16 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock California Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Housing (continued) | ||||||||
| CMFA Special Finance Agency, RB, M/F Housing, Series A-1, 3.00%, 12/01/56(b) |
$ | 750 | $ | 496,790 | ||||
| CSCDA Community Improvement Authority, RB, M/F Housing(b) |
||||||||
| 4.00%, 10/01/56 |
345 | 281,915 | ||||||
| 4.00%, 05/01/57 |
1,840 | 1,243,561 | ||||||
| Series A, 3.00%, 09/01/56 |
480 | 306,777 | ||||||
| Series B, Sub Lien, Sustainability Bonds, 4.00%, 12/01/59 |
1,095 | 712,338 | ||||||
| Sustainability Bonds, 4.00%, 12/01/56 |
265 | 184,618 | ||||||
| Series A-2, Sustainability Bonds, 3.00%, 02/01/57 |
525 | 339,569 | ||||||
|
|
|
|||||||
| 4,507,660 | ||||||||
| State — 1.6% | ||||||||
| California State Public Works Board, RB, Series D, 5.00%, 11/01/46 |
990 | 1,103,616 | ||||||
| Sacramento Area Flood Control Agency, Refunding SAB, 5.00%, 10/01/47 |
5,000 | 5,166,173 | ||||||
|
|
|
|||||||
| 6,269,789 | ||||||||
| Tobacco — 5.2% | ||||||||
| California County Tobacco Securitization Agency, Refunding RB |
||||||||
| Series A, 4.00%, 06/01/49 |
1,745 | 1,620,535 | ||||||
| Series B-1, Subordinate, 5.00%, 06/01/49 |
595 | 593,025 | ||||||
| California County Tobacco Securitization Agency, Refunding RB, CAB(d) |
||||||||
| 0.00%, 06/01/55 |
2,425 | 482,120 | ||||||
| Series B-2, Subordinate, 0.00%, 06/01/55 |
1,755 | 335,952 | ||||||
| Golden State Tobacco Securitization Corp., Refunding RB, Series B, 5.00%, 06/01/51 |
10,655 | 11,102,390 | ||||||
| Golden State Tobacco Securitization Corp., Refunding RB, CAB, Series B-2, Subordinate, 0.00%, 06/01/66(d) |
1,625 | 187,024 | ||||||
| Tobacco Securitization Authority of Southern California, Refunding RB, 5.00%, 06/01/48 |
6,000 | 6,178,371 | ||||||
|
|
|
|||||||
| 20,499,417 | ||||||||
| Transportation — 34.0% | ||||||||
| City of Long Beach California Harbor Revenue, ARB |
||||||||
| Series A, AMT, 5.00%, 05/15/40 |
5,000 | 5,203,136 | ||||||
| Series A, AMT, 5.00%, 05/15/44 |
2,500 | 2,701,031 | ||||||
| City of Long Beach California Harbor Revenue, Refunding ARB, Series C, 5.00%, 05/15/47 |
1,480 | 1,539,015 | ||||||
| City of Los Angeles Department of Airports, ARB |
||||||||
| Series A, AMT, 5.25%, 05/15/48 |
1,990 | 2,092,810 | ||||||
| Series B, AMT, 5.00%, 05/15/36 |
1,090 | 1,130,929 | ||||||
| Series B, AMT, 5.00%, 05/15/41 |
6,000 | 6,160,228 | ||||||
| Series B, AMT, 5.00%, 05/15/46 |
7,860 | 8,000,358 | ||||||
| Series C, AMT, Subordinate, 5.00%, 05/15/44 |
3,095 | 3,218,113 | ||||||
| AMT, Sustainability Bonds, 5.25%, 05/15/47 |
3,900 | 4,184,181 | ||||||
| City of Los Angeles Department of Airports, Refunding ARB |
||||||||
| AMT, 5.50%, 05/15/40 |
3,490 | 3,972,535 | ||||||
| AMT, 5.00%, 05/15/43 |
1,250 | 1,319,935 | ||||||
| AMT, 5.00%, 05/15/46 |
1,365 | 1,452,344 | ||||||
| AMT, 5.50%, 05/15/47 |
4,250 | 4,704,297 | ||||||
| AMT, 5.00%, 05/15/48 |
1,500 | 1,567,221 | ||||||
| Series A, AMT, 5.00%, 05/15/40 |
4,450 | 4,893,009 | ||||||
| County of Sacramento California Airport System Revenue, Refunding RB, Series C, AMT, 5.00%, 07/01/39 |
1,000 | 1,058,631 | ||||||
| Security | Par (000) |
Value | ||||||
| Transportation (continued) | ||||||||
| Norman Y Mineta San Jose International Airport SJC, Refunding RB |
||||||||
| Series A, AMT, 5.00%, 03/01/37 |
$ | 1,280 | $ | 1,329,756 | ||||
| Series A, AMT, 5.00%, 03/01/41 |
2,000 | 2,060,919 | ||||||
| Port of Los Angeles, Refunding ARB, Series A, AMT, 5.00%, 08/01/44 |
12,795 | 12,823,597 | ||||||
| Port of Los Angeles, Refunding RB |
||||||||
| Series B, 4.00%, 08/01/35 |
2,685 | 2,753,716 | ||||||
| Series C, Sustainability Bonds, 4.00%, 08/01/39 |
5,495 | 5,588,325 | ||||||
| San Diego County Regional Airport Authority, ARB, Series B, AMT, 5.00%, 07/01/48 |
6,890 | 7,335,129 | ||||||
| San Diego County Regional Airport Authority, Refunding ARB, Series B, AMT,
Subordinate, |
2,000 | 2,186,353 | ||||||
| San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB |
||||||||
| Series A, AMT, 5.00%, 05/01/40 |
850 | 850,823 | ||||||
| Series A, AMT, 5.00%, 05/01/47 |
16,735 | 17,040,325 | ||||||
| Series A, AMT, 5.00%, 05/01/49 |
6,405 | 6,610,271 | ||||||
| Series B, AMT, 5.00%, 05/01/41 |
3,365 | 3,409,860 | ||||||
| Series D, AMT, 5.00%, 05/01/43 |
6,130 | 6,355,476 | ||||||
| Series E, AMT, 5.00%, 05/01/45 |
1,000 | 1,042,132 | ||||||
| San Francisco City & County Airport Comm-San Francisco International Airport, Refunding RB, Series C, AMT, 5.75%, 05/01/48 |
9,600 | 10,787,738 | ||||||
|
|
|
|||||||
| 133,372,193 | ||||||||
| Utilities — 16.5% | ||||||||
| Contra Costa Water District, Refunding RB, Series V, 5.00%, 10/01/44 |
2,310 | 2,508,706 | ||||||
| East Bay Municipal Utility District Water System Revenue, RB, Series A, Sustainability Bonds, 4.00%, 06/01/45 |
1,730 | 1,749,437 | ||||||
| Los Angeles Department of Water & Power Water System Revenue, RB, Series A, 5.00%, 07/01/43 |
7,015 | 7,506,035 | ||||||
| Los Angeles Department of Water & Power, RB, 5.00%, 07/01/46 |
7,000 | 7,802,291 | ||||||
| Mountain House Public Financing Authority, RB, Series A, Sustainability Bonds, (BAM), 4.00%, 12/01/45 |
2,720 | 2,741,079 | ||||||
| Orange County Water District, Refunding RB, Series A, 4.00%, 08/15/41 |
1,100 | 1,122,469 | ||||||
| Sacramento Municipal Utility District, Refunding RB, Series H, Sustainability Bonds, 4.00%, 08/15/45 |
28,000 | 28,742,276 | ||||||
| San Mateo Foster City Public Financing Authority, RB, 4.00%, 08/01/44 |
12,485 | 12,731,720 | ||||||
|
|
|
|||||||
| 64,904,013 | ||||||||
|
|
|
|||||||
| Total Municipal Bonds in California |
499,021,291 | |||||||
| Puerto Rico — 4.1% | ||||||||
| State — 4.1% | ||||||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB |
||||||||
| Series A-1, Restructured, 4.75%, 07/01/53 |
2,845 | 2,787,445 | ||||||
| Series A-1, Restructured, 5.00%, 07/01/58 |
8,279 | 8,278,893 | ||||||
| Series A-2, Restructured, 4.78%, 07/01/58 |
2,530 | 2,473,075 | ||||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(d) |
8,577 | 2,636,661 | ||||||
|
|
|
|||||||
| Total Municipal Bonds in Puerto Rico |
16,176,074 | |||||||
|
|
|
|||||||
| Total Municipal Bonds — 131.3% |
515,197,365 | |||||||
|
|
|
|||||||
| S C H E D U L E O F I N V E S T M E N T S |
17 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock California Municipal Income Trust (BFZ) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
|
|
||||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts(e) |
| |||||||
| California — 19.4% | ||||||||
| County/City/Special District/School District — 8.8% | ||||||||
| Clovis Unified School District, GO, Election 2020, Series B, 5.00%, 08/01/47 |
$ | 10,000 | $ | 10,871,102 | ||||
| Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue, Refunding RB, Sustainability Bonds, Series A, 5.00%, 07/01/44 |
11,200 | 11,996,723 | ||||||
| Los Angeles Unified School District, GO, Sustainability Bonds, Series QRR, 5.25%, 07/01/47 |
10,000 | 11,512,672 | ||||||
|
|
|
|||||||
| 34,380,497 | ||||||||
| Health — 4.4% | ||||||||
| Regents of the University of California Medical Center Pooled Revenue, RB, Series P, 5.00%, 05/15/47 |
15,620 | 17,282,216 | ||||||
|
|
|
|||||||
| Utilities — 6.2% | ||||||||
| Los Angeles Department of Water & Power, RB, Series A, 5.00%, 07/01/42 |
10,670 | 11,282,713 | ||||||
| San Francisco City & County Public Utilities Commission Wastewater Revenue, Refunding RB, Sustainability Bonds, Series A, 4.00%, 10/01/49 |
12,790 | 12,956,663 | ||||||
|
|
|
|||||||
| 24,239,376 | ||||||||
|
|
|
|||||||
| Total Municipal Bonds in California |
75,902,089 | |||||||
|
|
|
|||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 19.4% |
|
75,902,089 | ||||||
|
|
|
|||||||
| Total Long-Term Investments — 150.7% |
591,099,454 | |||||||
|
|
|
|||||||
| Security | Shares | Value | ||||||
|
|
||||||||
| Short-Term Securities |
||||||||
| Money Market Funds — 5.7% | ||||||||
| BlackRock Liquidity Funds California Money Fund, Institutional Class, 3.26%(f)(g) |
22,577,863 | $ | 22,564,316 | |||||
|
|
|
|||||||
| Total Short-Term Securities — 5.7% |
22,564,316 | |||||||
|
|
|
|||||||
| Total Investments — 156.4% |
613,663,770 | |||||||
| Liabilities in Excess of Other Assets — (3.7)% |
|
(14,688,447 | ) | |||||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (9.0)% |
|
(35,403,250 | ) | |||||
| VMTP Shares at Liquidation Value, Net of Deferred Offering Costs — (43.7)% |
|
(171,300,000 | ) | |||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% |
|
$ | 392,272,073 | |||||
|
|
|
|||||||
| (a) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
| (b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (c) | When-issued security. |
| (d) | Zero-coupon bond. |
| (e) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (f) | Affiliate of the Trust. |
| (g) | Annualized 7-day yield as of period end. |
For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
Affiliates
Investments in issuers considered to be affiliate(s) of the Trust during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliated Issuer | Value at 07/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 01/31/24 |
Shares Held at 01/31/24 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
| BlackRock Liquidity Funds California Money Fund, Institutional Class |
$ | 3,025,616 | $ | 19,537,223 | (a) | $ | — | $ | 726 | $ | 751 | $ | 22,564,316 | 22,577,863 | $ | 132,931 | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| (a) | Represents net amount purchased (sold). |
Derivative Financial Instruments Categorized by Risk Exposure
For the period ended January 31, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:
| Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
| Net Realized Gain (Loss) from: |
||||||||||||||||||||||||||||
| Futures contracts |
$ | — | $ | — | $ | — | $ | — | $ | 607,756 | $ | — | $ | 607,756 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| 18 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock California Municipal Income Trust (BFZ) |
Derivative Financial Instruments Categorized by Risk Exposure (continued)
| Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: |
||||||||||||||||||||||||||||
| Futures contracts |
$ | — | $ | — | $ | — | $ | — | $ | (281,360 | ) | $ | — | $ | (281,360 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| Futures contracts: |
||||
| Average notional value of contracts — short |
$ | 16,514,563 | ||
For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Trust’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Trust’s financial instruments categorized in the fair value hierarchy. The breakdown of the Trust’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets |
||||||||||||||||
| Investments |
||||||||||||||||
| Long-Term Investments |
||||||||||||||||
| Municipal Bonds |
$ | — | $ | 515,197,365 | $ | — | $ | 515,197,365 | ||||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts |
— | 75,902,089 | — | 75,902,089 | ||||||||||||
| Short-Term Securities |
||||||||||||||||
| Money Market Funds |
22,564,316 | — | — | 22,564,316 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 22,564,316 | $ | 591,099,454 | $ | — | $ | 613,663,770 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows: |
| |||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Liabilities |
||||||||||||||||
| TOB Trust Certificates |
$ | — | $ | (35,140,000 | ) | $ | — | $ | (35,140,000 | ) | ||||||
| VMTP Shares at Liquidation Value |
— | (171,300,000 | ) | — | (171,300,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | — | $ | (206,440,000 | ) | $ | — | $ | (206,440,000 | ) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
See notes to financial statements.
| S C H E D U L E O F I N V E S T M E N T S |
19 |
| Schedule of Investments (unaudited) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Municipal Bonds |
||||||||
| Alabama — 7.3% | ||||||||
| Alabama Economic Settlement Authority, RB, Series A, 4.00%, 09/15/33 |
$ | 5,000 | $ | 5,017,529 | ||||
| Alabama Public School and College Authority, Refunding RB, Series A, Sustainability Bonds, 5.00%, 11/01/30 |
11,900 | 13,779,712 | ||||||
| Alabama Special Care Facilities Financing Authority- Birmingham Alabama, Refunding RB, 5.00%, 06/01/30 |
10,000 | 10,259,686 | ||||||
| Birmingham-Jefferson Civic Center Authority, ST |
||||||||
| Series A, 5.00%, 07/01/31 |
1,100 | 1,200,775 | ||||||
| Series A, 5.00%, 07/01/32 |
1,150 | 1,253,531 | ||||||
| Series A, 5.00%, 07/01/33 |
1,600 | 1,741,494 | ||||||
| Black Belt Energy Gas District, RB(a) 4.00%, 10/01/52 |
12,025 | 12,006,786 | ||||||
| Series A, 5.25%, 01/01/54 |
10,000 | 10,768,626 | ||||||
| Black Belt Energy Gas District, Refunding RB, 4.00%, 06/01/51(a) |
8,930 | 8,941,520 | ||||||
| County of Jefferson Alabama Sewer Revenue, Refunding RB |
||||||||
| 5.00%, 10/01/26 |
935 | 980,215 | ||||||
| 5.00%, 10/01/30 |
2,500 | 2,787,185 | ||||||
| Homewood Educational Building Authority, Refunding RB |
||||||||
| Series A, 5.00%, 12/01/33 |
1,010 | 1,055,100 | ||||||
| Series A, 5.00%, 12/01/34 |
1,380 | 1,437,484 | ||||||
| Hoover Industrial Development Board, RB, AMT, 6.38%, 11/01/50(a) |
1,965 | 2,122,742 | ||||||
| Orange Beach Water Sewer & Fire Protection Authority, RB, 4.00%, 05/15/30 |
510 | 540,183 | ||||||
| Southeast Energy Authority A Cooperative District, RB(a) |
||||||||
| Series A-2, 6.01%, 01/01/53 |
30,265 | 30,788,237 | ||||||
| Series B-1, 5.00%, 05/01/53 |
9,375 | 9,744,800 | ||||||
| University of South Alabama, Refunding RB |
||||||||
| (AGM), 5.00%, 11/01/29 |
1,105 | 1,161,928 | ||||||
| (AGM), 5.00%, 11/01/30 |
2,000 | 2,102,974 | ||||||
| 117,690,507 | ||||||||
| Arizona — 2.3% | ||||||||
| Arizona Health Facilities Authority, Refunding RB, Series B, 5.00%, 02/01/33 |
1,810 | 1,811,756 | ||||||
| Arizona Industrial Development Authority, RB(b) |
||||||||
| 4.00%, 07/01/29 |
590 | 566,282 | ||||||
| 4.50%, 07/01/29 |
765 | 752,278 | ||||||
| Series A, 4.00%, 07/01/29 |
4,135 | 3,968,844 | ||||||
| Sustainability Bonds, 4.00%, 07/01/30 |
555 | 528,684 | ||||||
| Arizona Sports & Tourism Authority, Refunding RB, Senior Lien, (BAM), 5.00%, 07/01/30 |
12,000 | 13,645,943 | ||||||
| Chandler Industrial Development Authority, RB, AMT, 4.10%, 12/01/37(a) |
3,570 | 3,589,671 | ||||||
| Industrial Development Authority of the City of Phoenix Arizona, RB, Series A, 5.75%, 07/01/24(b) |
165 | 165,374 | ||||||
| Maricopa County Industrial Development Authority, Refunding RB |
||||||||
| 4.00%, 07/01/29(b) |
855 | 837,380 | ||||||
| Series A, 5.00%, 01/01/31 |
10,000 | 10,504,212 | ||||||
| 36,370,424 | ||||||||
| Security | Par (000) | Value | ||||||
| California — 13.0% | ||||||||
| Alameda Corridor Transportation Authority, Refunding RB, Series A, Sub Lien, (AMBAC), 0.00%, 10/01/30(c) |
$ | 10,530 | $ | 8,925,697 | ||||
| Bay Area Toll Authority, RB, Class A, 5.80%, 04/01/36(a) |
3,000 | 2,949,205 | ||||||
| Bay Area Toll Authority, Refunding RB(a) |
||||||||
| Series C, 5.00%, 04/01/56 |
4,500 | 4,424,987 | ||||||
| Series E, 4.96%, 04/01/56 |
3,250 | 3,214,901 | ||||||
| California Community Choice Financing Authority, RB(a) |
||||||||
| Series G, 5.25%, 11/01/54 |
1,785 | 1,914,894 | ||||||
| Sustainability Bonds, 5.54%, 12/01/53 |
6,750 | 6,837,502 | ||||||
| Sustainability Bonds, 5.23%, 02/01/54 |
9,780 | 9,768,386 | ||||||
| Sustainability Bonds, 5.50%, 10/01/54 |
2,500 | 2,751,200 | ||||||
| Series A, Sustainability Bonds, 4.00%, 10/01/52 |
8,650 | 8,658,769 | ||||||
| California Health Facilities Financing Authority, RB |
||||||||
| Series A, 5.00%, 11/15/32 |
1,600 | 1,727,931 | ||||||
| Series A, 5.00%, 11/15/33 |
1,855 | 2,002,467 | ||||||
| California Housing Finance Agency, RB, M/F Housing, Series 2021-1, Class A, 3.50%, 11/20/35 |
3,596 | 3,363,768 | ||||||
| California Municipal Finance Authority, ARB, AMT, Senior Lien, 5.00%, 12/31/33 |
4,000 | 4,101,848 | ||||||
| California Municipal Finance Authority, RB, S/F Housing, Series A, 5.00%, 08/15/30 |
1,000 | 1,004,249 | ||||||
| California Municipal Finance Authority, Refunding RB |
||||||||
| Series A, 5.00%, 07/01/30 |
1,200 | 1,255,284 | ||||||
| Series A, 5.00%, 07/01/31 |
1,050 | 1,098,149 | ||||||
| California School Finance Authority, RB(b) |
||||||||
| 5.00%, 06/01/30 |
565 | 522,508 | ||||||
| Series A, 5.00%, 06/01/29 |
280 | 283,456 | ||||||
| Series A, 4.00%, 06/01/31 |
265 | 255,122 | ||||||
| Series A, 5.00%, 06/01/32 |
1,100 | 1,113,671 | ||||||
| City of Long Beach California Harbor Revenue, ARB |
||||||||
| Series A, AMT, 5.00%, 05/15/31 |
1,200 | 1,270,062 | ||||||
| Series A, AMT, 5.00%, 05/15/32 |
1,800 | 1,903,576 | ||||||
| Series A, AMT, 5.00%, 05/15/33 |
675 | 713,875 | ||||||
| Series A, AMT, 5.00%, 05/15/34 |
1,650 | 1,743,270 | ||||||
| City of Los Angeles California, RB, 5.00%, 06/27/24 |
20,000 | 20,155,563 | ||||||
| City of Los Angeles Department of Airports, ARB, AMT, Sustainability Bonds, 5.00%, 05/15/30 |
18,250 | 20,401,448 | ||||||
| Compton Unified School District, GO, CAB(c) |
||||||||
| Series B, (BAM), 0.00%, 06/01/33 |
1,000 | 692,854 | ||||||
| Series B, (BAM), 0.00%, 06/01/34 |
1,125 | 744,432 | ||||||
| Series B, (BAM), 0.00%, 06/01/35 |
1,000 | 628,611 | ||||||
| Series B, (BAM), 0.00%, 06/01/36 |
1,000 | 592,705 | ||||||
| El Camino Community College District Foundation, GO, CAB(c) |
||||||||
| Series C, Election 2002, 0.00%, 08/01/30 |
9,090 | 7,704,383 | ||||||
| Series C, Election 2002, 0.00%, 08/01/31 |
12,465 | 10,288,041 | ||||||
| Series C, Election 2002, 0.00%, 08/01/32 |
17,435 | 13,984,930 | ||||||
| Los Angeles Unified School District, GO, Series A, Election 2008, 4.00%, 07/01/33 |
3,000 | 3,066,898 | ||||||
| Monterey Peninsula Community College District, Refunding GO, CAB(c) |
||||||||
| 0.00%, 08/01/30 |
3,500 | 2,763,128 | ||||||
| 0.00%, 08/01/31 |
5,940 | 4,526,652 | ||||||
| M-S-R Energy Authority, RB, Series C, 6.13%, 11/01/29 |
2,045 | 2,178,848 | ||||||
| Norman Y Mineta San Jose International Airport SJC, Refunding RB |
||||||||
| Series A, AMT, 5.00%, 03/01/30 |
500 | 523,729 | ||||||
| Series A, AMT, 5.00%, 03/01/31 |
1,500 | 1,570,134 | ||||||
| Series A, AMT, 5.00%, 03/01/32 |
1,000 | 1,044,000 | ||||||
| 20 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| California (continued) | ||||||||
| Norman Y Mineta San Jose International Airport SJC, Refunding RB (continued) |
||||||||
| Series A, AMT, 5.00%, 03/01/33 |
$ | 975 | $ | 1,020,252 | ||||
| Series A, AMT, 5.00%, 03/01/34 |
1,250 | 1,306,421 | ||||||
| Series A, AMT, 5.00%, 03/01/35 |
2,000 | 2,088,539 | ||||||
| Poway Unified School District, GO(c) |
||||||||
| Series A, Election 2008, 0.00%, 08/01/30 |
10,000 | 8,499,972 | ||||||
| Series A, Election 2008, 0.00%, 08/01/32 |
12,500 | 9,617,856 | ||||||
| San Diego County Regional Airport Authority, ARB, Sub-Series B, AMT, 5.00%, 07/01/33 |
1,000 | 1,062,911 | ||||||
| San Rafael City Elementary School District, GO, Series C, Election 2002, (NPFGC), 0.00%, 08/01/30(c) |
6,350 | 5,392,152 | ||||||
| State of California, Refunding GO, 5.00%, 08/01/30 |
10,000 | 10,861,818 | ||||||
| Washington Township Health Care District, Refunding RB, Series B, 3.00%, 07/01/28 |
750 | 712,761 | ||||||
| Wiseburn School District, GO, Series A, Election 2007, (NPFGC), 0.00%, 08/01/30(c) |
7,505 | 6,379,229 | ||||||
| 209,613,044 | ||||||||
| Colorado — 5.7% | ||||||||
| City & County of Denver Colorado Airport System Revenue, Refunding ARB |
||||||||
| Series A, AMT, 5.00%, 12/01/30 |
12,780 | 14,074,214 | ||||||
| Series A, AMT, 5.00%, 12/01/33 |
25,000 | 26,612,366 | ||||||
| Series D, AMT, 5.50%, 11/15/30 |
14,000 | 15,950,015 | ||||||
| City & County of Denver Colorado Pledged Excise Tax Revenue, RB, CAB, Series A-2, 0.00%, 08/01/30(c) |
1,000 | 764,692 | ||||||
| City & County of Denver Colorado, Refunding RB, AMT, 5.00%, 10/01/32 |
2,500 | 2,487,500 | ||||||
| Colorado Educational & Cultural Facilities Authority, Refunding RB, 4.00%, 12/01/30(b) |
1,015 | 959,224 | ||||||
| Colorado Health Facilities Authority, RB |
||||||||
| 5.00%, 11/01/30 |
1,000 | 1,104,647 | ||||||
| Series B, 2.63%, 05/15/29 |
2,100 | 1,765,920 | ||||||
| Series D, 5.10%, 05/15/61(a) |
7,000 | 6,989,787 | ||||||
| Colorado Health Facilities Authority, Refunding RB, Series A, 4.00%, 08/01/37 |
3,000 | 3,009,847 | ||||||
| E-470 Public Highway Authority, Refunding RB, Series B, 3.96%, 09/01/39(a) |
1,475 | 1,470,905 | ||||||
| Park Creek Metropolitan District, Refunding RB |
||||||||
| Series A, Senior Lien, 5.00%, 12/01/27 |
1,500 | 1,540,520 | ||||||
| Series A, Senior Lien, 5.00%, 12/01/28 |
1,500 | 1,541,154 | ||||||
| Series A, Senior Lien, 5.00%, 12/01/30 |
1,350 | 1,392,031 | ||||||
| Series A, Senior Lien, 5.00%, 12/01/31 |
1,500 | 1,546,267 | ||||||
| Plaza Metropolitan District No. 1, Refunding TA(b) |
||||||||
| 4.10%, 12/01/24 |
5,080 | 5,029,998 | ||||||
| 4.20%, 12/01/25 |
5,280 | 5,184,957 | ||||||
| 91,424,044 | ||||||||
| Connecticut — 0.8% | ||||||||
| Capital Region Development Authority, Refunding RB |
||||||||
| (SAP), 5.00%, 06/15/30 |
1,095 | 1,197,239 | ||||||
| (SAP), 5.00%, 06/15/31 |
1,125 | 1,229,527 | ||||||
| Connecticut State Health & Educational Facilities Authority, RB, Series A, 5.00%, 01/01/30(b) |
370 | 352,844 | ||||||
| Connecticut State Health & Educational Facilities Authority, Refunding RB |
||||||||
| Series G-1, 5.00%, 07/01/27(b) |
225 | 227,335 | ||||||
| Series G-1, 5.00%, 07/01/28(b) |
300 | 303,031 | ||||||
| Series G-1, 5.00%, 07/01/29(b) |
300 | 302,445 | ||||||
| Series G-1, 5.00%, 07/01/30(b) |
300 | 301,499 | ||||||
| Series G-1, 5.00%, 07/01/32(b) |
425 | 425,297 | ||||||
| Security | Par (000) |
Value | ||||||
| Connecticut (continued) | ||||||||
| Connecticut State Health & Educational Facilities Authority, Refunding RB (continued) |
||||||||
| Series G-1, 5.00%, 07/01/34(b) |
$ | 355 | $ | 354,163 | ||||
| Series I-1, 5.00%, 07/01/35 |
400 | 424,591 | ||||||
| State of Connecticut, GO, Series A, 5.00%, 04/15/33 |
7,000 | 7,669,428 | ||||||
| 12,787,399 | ||||||||
| Delaware — 0.9% | ||||||||
| County of Kent Delaware, RB |
||||||||
| Series A, 5.00%, 07/01/24 |
705 | 706,641 | ||||||
| Series A, 5.00%, 07/01/25 |
805 | 811,405 | ||||||
| Series A, 5.00%, 07/01/26 |
850 | 860,617 | ||||||
| Series A, 5.00%, 07/01/27 |
890 | 903,772 | ||||||
| Series A, 5.00%, 07/01/28 |
935 | 948,929 | ||||||
| Delaware State Economic Development Authority, Refunding RB(a) |
||||||||
| Series A, 1.25%, 10/01/45 |
6,035 | 5,645,216 | ||||||
| Series B, 1.25%, 10/01/40 |
500 | 467,706 | ||||||
| Delaware State Health Facilities Authority, RB, 4.00%, 06/01/35 |
1,250 | 1,210,612 | ||||||
| Delaware Transportation Authority, Refunding RB, 5.00%, 09/01/30 |
2,000 | 2,284,902 | ||||||
| 13,839,800 | ||||||||
| District of Columbia — 1.2% | ||||||||
| Metropolitan Washington Airports Authority Aviation Revenue, Refunding ARB, Series A, AMT, 5.00%, 10/01/30 |
17,325 | 18,690,284 | ||||||
| Florida — 6.4% | ||||||||
| Capital Projects Finance Authority, RB, Series A-1, 5.00%, 10/01/30 |
1,000 | 1,048,140 | ||||||
| Capital Trust Agency, Inc., RB(b) |
||||||||
| Series A, 4.00%, 06/15/29 |
1,420 | 1,346,398 | ||||||
| Series A-1, 3.38%, 07/01/31 |
1,810 | 1,671,392 | ||||||
| Central Florida Expressway Authority, Refunding RB |
||||||||
| Senior Lien, 5.00%, 07/01/32 |
1,610 | 1,755,450 | ||||||
| Senior Lien, 5.00%, 07/01/33 |
2,750 | 2,996,481 | ||||||
| City of Lakeland Florida, Refunding RB, 5.00%, 11/15/30 |
3,750 | 3,904,389 | ||||||
| County of Miami-Dade Florida Water & Sewer System Revenue, RB, 5.00%, 10/01/27 |
5,000 | 5,390,416 | ||||||
| County of Miami-Dade Florida, Refunding RB, Series B, 4.00%, 04/01/32 |
6,690 | 6,883,716 | ||||||
| County of Palm Beach Florida, RB, 5.00%, 04/01/29(b) |
915 | 927,087 | ||||||
| County of St. Johns Florida Water & Sewer Revenue, Refunding RB, CAB(c) |
||||||||
| Series B, 0.00%, 06/01/30 |
2,000 | 1,677,226 | ||||||
| Series B, 0.00%, 06/01/31 |
1,295 | 1,054,224 | ||||||
| Series B, 0.00%, 06/01/32 |
2,495 | 1,966,228 | ||||||
| Double Branch Community Development District, Refunding SAB, Series A-1, Senior Lien, 4.13%, 05/01/31 |
1,200 | 1,200,886 | ||||||
| Florida Development Finance Corp., RB |
||||||||
| AMT, 5.00%, 05/01/29(b) |
7,430 | 7,162,266 | ||||||
| AMT, 3.00%, 06/01/32 |
3,000 | 2,407,950 | ||||||
| Florida Development Finance Corp., Refunding RB(b) |
||||||||
| 4.00%, 06/01/24 |
105 | 104,423 | ||||||
| 4.00%, 06/01/25 |
100 | 97,877 | ||||||
| 4.00%, 06/01/26 |
110 | 105,980 | ||||||
| 4.00%, 09/15/30 |
470 | 440,979 | ||||||
| Hillsborough County Aviation Authority, ARB, AMT, 5.00%, 10/01/30 |
2,325 | 2,555,795 | ||||||
| S C H E D U L E O F I N V E S T M E N T S |
21 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Florida (continued) | ||||||||
| Lakewood Ranch Stewardship District, Refunding SAB, 3.20%, 05/01/30(b) |
$ | 540 | $ | 510,052 | ||||
| Lakewood Ranch Stewardship District, SAB, 5.40%, 05/01/28 |
1,000 | 1,022,822 | ||||||
| Lakewood Ranch Stewardship District, SAB, S/F Housing, 3.40%, 05/01/30 |
375 | 355,720 | ||||||
| LT Ranch Community Development District, SAB, 3.40%, 05/01/30 |
985 | 937,908 | ||||||
| Miami Beach Health Facilities Authority, Refunding RB, 5.00%, 11/15/30 |
1,000 | 1,011,915 | ||||||
| Orange County Convention Center/Orlando, Refunding RB, 5.00%, 10/01/30 |
11,470 | 13,176,138 | ||||||
| Palm Beach County Health Facilities Authority, Refunding RB, 5.00%, 11/15/32 |
19,820 | 20,547,298 | ||||||
| Sarasota National Community Development District, Refunding SAB, 3.50%, 05/01/31 |
1,000 | 936,097 | ||||||
| School Board of Miami-Dade County, Refunding COP, Series A, 5.00%, 05/01/32 |
9,000 | 9,429,274 | ||||||
| St Johns County Industrial Development Authority, Refunding RB |
||||||||
| 4.00%, 12/15/25 |
180 | 175,935 | ||||||
| 4.00%, 12/15/28 |
200 | 188,051 | ||||||
| 4.00%, 12/15/29 |
215 | 199,283 | ||||||
| 4.00%, 12/15/30 |
195 | 178,177 | ||||||
| 4.00%, 12/15/31 |
205 | 184,986 | ||||||
| Tolomato Community Development District, Refunding SAB, Sub-Series A-2, 3.85%, 05/01/29 |
520 | 508,765 | ||||||
| Village Community Development District No. 15, SAB, 4.25%, 05/01/28(b) |
730 | 727,983 | ||||||
| Village Community Development District No. 5, Refunding SAB |
||||||||
| 3.50%, 05/01/28 |
4,635 | 4,636,251 | ||||||
| 4.00%, 05/01/33 |
890 | 890,606 | ||||||
| 4.00%, 05/01/34 |
1,965 | 1,966,343 | ||||||
| 102,280,907 | ||||||||
| Georgia — 6.1% | ||||||||
| City of Atlanta Georgia Department of Aviation, Refunding ARB, Series B, AMT, 5.00%, 07/01/29 |
4,150 | 4,524,466 | ||||||
| Georgia Ports Authority, ARB, 5.00%, 07/01/30 |
1,175 | 1,351,921 | ||||||
| Main Street Natural Gas, Inc., RB |
||||||||
| Series A, 5.00%, 05/15/29 |
1,250 | 1,312,772 | ||||||
| Series A, 5.00%, 05/15/30 |
8,000 | 8,406,178 | ||||||
| Series A, 4.00%, 07/01/52(a) |
3,500 | 3,510,325 | ||||||
| Series A, 4.00%, 09/01/52(a) |
15,000 | 14,997,400 | ||||||
| Series A, 5.00%, 06/01/53(a) |
11,185 | 11,831,269 | ||||||
| Series B, 5.00%, 12/01/52(a) |
20,190 | 21,195,463 | ||||||
| Series C, 4.00%, 05/01/52(a) |
5,360 | 5,366,114 | ||||||
| Main Street Natural Gas, Inc., Refunding RB, Series E-1, 5.00%, 12/01/53(a) |
9,865 | 10,517,668 | ||||||
| Municipal Electric Authority of Georgia, RB, Series A, 5.00%, 01/01/34 |
8,000 | 8,638,310 | ||||||
| Municipal Electric Authority of Georgia, Refunding RB |
||||||||
| Series A, 5.00%, 01/01/29 |
2,000 | 2,182,861 | ||||||
| Series A, 5.00%, 01/01/30 |
1,905 | 2,114,008 | ||||||
| Series A, Subordinate, 5.00%, 01/01/29 |
1,200 | 1,309,717 | ||||||
| Series A, Subordinate, 5.00%, 01/01/30 |
1,250 | 1,386,148 | ||||||
| 98,644,620 | ||||||||
| Security | Par (000) |
Value | ||||||
| Guam — 0.2% | ||||||||
| Territory of Guam, Refunding RB |
||||||||
| Series A, 5.00%, 11/01/30 |
$ | 500 | $ | 531,631 | ||||
| Series F, 5.00%, 01/01/30 |
1,160 | 1,253,721 | ||||||
| Series F, 5.00%, 01/01/31 |
1,250 | 1,361,827 | ||||||
| 3,147,179 | ||||||||
| Idaho — 0.0% | ||||||||
| Idaho Housing & Finance Association, RB, Series A, 4.63%, 07/01/29(b) |
155 | 152,320 | ||||||
| Illinois — 10.2% | ||||||||
| Chicago Board of Education, Refunding GO, Series C, 5.00%, 12/01/30 |
7,025 | 7,278,723 | ||||||
| Chicago Housing Authority, RB, M/F Housing |
||||||||
| Series A, 5.00%, 01/01/33 |
3,000 | 3,180,479 | ||||||
| Series A, 5.00%, 01/01/35 |
1,500 | 1,586,243 | ||||||
| Chicago Midway International Airport, Refunding ARB, Series A, AMT, 2nd Lien, 5.00%, 01/01/33 |
5,000 | 5,009,989 | ||||||
| Chicago O’Hare International Airport, Refunding RB |
||||||||
| Series B, AMT, 4.00%, 01/01/27 |
5,000 | 5,002,269 | ||||||
| Series B, Senior Lien, 5.00%, 01/01/33 |
6,000 | 6,383,785 | ||||||
| Chicago Transit Authority Capital Grant Receipts Revenue, Refunding RB, 5.00%, 06/01/26 |
3,000 | 3,099,904 | ||||||
| City of Chicago Illinois, Refunding GO, Series B, 4.00%, 01/01/30 |
1,053 | 1,090,337 | ||||||
| Illinois Finance Authority, RB, Sustainability Bonds, 5.00%, 07/01/30 |
1,500 | 1,725,726 | ||||||
| Illinois Finance Authority, Refunding RB |
||||||||
| 5.00%, 08/15/30 |
4,515 | 5,122,585 | ||||||
| Series A, 4.00%, 11/01/24 |
425 | 417,450 | ||||||
| Series A, 5.00%, 11/01/26 |
460 | 442,765 | ||||||
| Series A, 5.00%, 11/01/28 |
1,745 | 1,632,724 | ||||||
| Series A, 5.00%, 11/01/29 |
1,840 | 1,695,864 | ||||||
| Series A, 5.00%, 10/01/30 |
1,000 | 1,058,549 | ||||||
| Series A, 5.00%, 11/01/30 |
1,935 | 1,757,097 | ||||||
| Series A, 5.00%, 11/15/31 |
8,415 | 8,516,162 | ||||||
| Series A, 4.00%, 10/01/32 |
1,000 | 1,033,522 | ||||||
| Series A, 5.00%, 11/15/32 |
2,075 | 2,099,501 | ||||||
| Series A, 4.00%, 02/01/33 |
12,850 | 12,860,994 | ||||||
| Series A, 5.00%, 11/15/33 |
2,125 | 2,149,456 | ||||||
| Series B, 5.00%, 08/15/30 |
3,205 | 3,399,454 | ||||||
| Series B, 5.25%, 05/01/42(a) |
1,750 | 1,713,473 | ||||||
| Series C, 5.00%, 02/15/30 |
12,000 | 12,681,101 | ||||||
| Illinois State Toll Highway Authority, Refunding RB, Series A, 4.00%, 12/01/31 |
20,000 | 20,500,369 | ||||||
| Kane McHenry Cook & De Kalb Counties Unit School District No. 300, Refunding GO, Series A, 5.00%, 01/01/30 |
6,350 | 6,730,694 | ||||||
| Metropolitan Pier & Exposition Authority, Refunding RB |
||||||||
| 5.00%, 12/15/28 |
1,200 | 1,264,596 | ||||||
| 5.00%, 12/15/30 |
1,385 | 1,464,172 | ||||||
| Sales Tax Securitization Corp., Refunding RB, Series A, 2nd Lien, 5.00%, 01/01/30 |
11,000 | 12,326,611 | ||||||
| State of Illinois, GO |
||||||||
| Series A, 5.00%, 12/01/26 |
10,805 | 11,358,916 | ||||||
| Series A, 5.00%, 12/01/28 |
9,950 | 10,652,651 | ||||||
| Series A, 5.00%, 03/01/32 |
1,500 | 1,670,281 | ||||||
| 22 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Illinois (continued) | ||||||||
| State of Illinois, Refunding GO, Series B, 5.00%, 10/01/30 |
$ | 7,000 | $ | 7,575,130 | ||||
| Upper Illinois River Valley Development Authority, Refunding RB, 4.00%, 01/01/31(b) |
260 | 246,341 | ||||||
| 164,727,913 | ||||||||
| Indiana — 0.4% | ||||||||
| Indiana Finance Authority, Refunding RB |
||||||||
| Series A, 4.13%, 12/01/26 |
3,665 | 3,628,530 | ||||||
| Series B, 4.85%, 03/01/39(a) |
1,010 | 989,841 | ||||||
| Northern Indiana Commuter Transportation District, RB |
||||||||
| 5.00%, 07/01/32 |
1,000 | 1,056,270 | ||||||
| 5.00%, 07/01/33 |
1,400 | 1,478,751 | ||||||
| 7,153,392 | ||||||||
| Iowa(a) — 1.5% | ||||||||
| Iowa Finance Authority, RB, AMT, 1.50%, 01/01/42 |
2,750 | 2,731,388 | ||||||
| PEFA, Inc., RB, 5.00%, 09/01/49 |
21,415 | 21,854,155 | ||||||
| 24,585,543 | ||||||||
| Kansas — 0.2% | ||||||||
| City of Lenexa Kansas, Refunding RB, Series A, 5.00%, 05/15/24 |
1,550 | 1,550,699 | ||||||
| City of Manhattan Kansas, Refunding RB, Series A, 4.00%, 06/01/26 |
315 | 309,310 | ||||||
| City of Shawnee Kansas, RB, 4.00%, 08/01/31(b) |
500 | 475,769 | ||||||
| Wyandotte County-Kansas City Unified Government Utility System Revenue, RB, Series A, 5.00%, 09/01/33 |
1,370 | 1,417,393 | ||||||
| 3,753,171 | ||||||||
| Kentucky — 0.9% | ||||||||
| Kentucky Public Energy Authority, RB, Series A-1, 4.00%, 08/01/52(a) |
4,225 | 4,212,706 | ||||||
| Kentucky Public Transportation Infrastructure Authority, RB, CAB |
||||||||
| Series B, 0.00%, 07/01/30(c) |
1,230 | 876,957 | ||||||
| Series C, Convertible, 6.40%, 07/01/33(d) |
1,500 | 1,799,212 | ||||||
| Louisville/Jefferson County Metropolitan Government, Refunding RB, Series A, 5.00%, 10/01/32 |
7,300 | 7,650,429 | ||||||
| 14,539,304 | ||||||||
| Louisiana — 1.3% | ||||||||
| City of Ruston Louisiana Sales Tax Revenue, RB |
||||||||
| (AGM), 5.00%, 06/01/29 |
1,060 | 1,111,587 | ||||||
| (AGM), 5.00%, 06/01/30 |
1,000 | 1,048,691 | ||||||
| (AGM), 5.00%, 06/01/31 |
1,020 | 1,069,657 | ||||||
| (AGM), 5.00%, 06/01/32 |
1,225 | 1,284,622 | ||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority, RB, 5.00%, 08/15/30 |
4,700 | 4,979,750 | ||||||
| Louisiana Local Government Environmental Facilities & Community Development Authority, Refunding RB, Series A, 2.00%, 06/01/30 |
1,250 | 1,146,962 | ||||||
| Louisiana Public Facilities Authority, RB(b) |
||||||||
| Series A, 5.00%, 06/01/29 |
700 | 690,978 | ||||||
| Series A, 5.00%, 04/01/30 |
520 | 509,488 | ||||||
| Series A, 5.00%, 06/01/31 |
500 | 483,329 | ||||||
| Louisiana Public Facilities Authority, Refunding RB |
||||||||
| 5.00%, 05/15/29 |
1,235 | 1,282,338 | ||||||
| 5.00%, 05/15/30 |
990 | 1,027,815 | ||||||
| 3.00%, 05/15/31 |
2,225 | 2,120,053 | ||||||
| Security | Par (000) |
Value | ||||||
| Louisiana (continued) | ||||||||
| Louisiana Public Facilities Authority, Refunding RB (continued) |
||||||||
| 5.00%, 05/15/32 |
$ | 1,485 | $ | 1,541,746 | ||||
| 5.00%, 05/15/33 |
2,175 | 2,258,038 | ||||||
| 20,555,054 | ||||||||
| Maine — 0.2% | ||||||||
| City of Portland Maine General Airport Revenue, Refunding RB |
||||||||
| Sustainability Bonds, 5.00%, 01/01/33 |
695 | 764,489 | ||||||
| Sustainability Bonds, 5.00%, 01/01/34 |
305 | 335,255 | ||||||
| Sustainability Bonds, 4.00%, 01/01/35 |
1,000 | 1,027,496 | ||||||
| Maine Turnpike Authority, RB |
||||||||
| 5.00%, 07/01/29 |
300 | 336,679 | ||||||
| 5.00%, 07/01/30 |
275 | 314,451 | ||||||
| 2,778,370 | ||||||||
| Maryland — 1.8% | ||||||||
| Anne Arundel County Consolidated Special Taxing District, ST |
||||||||
| 4.20%, 07/01/24 |
165 | 165,208 | ||||||
| 4.90%, 07/01/30 |
1,315 | 1,318,353 | ||||||
| City of Baltimore Maryland, Refunding RB, Convertible, 5.00%, 09/01/31 |
1,250 | 1,253,705 | ||||||
| County of Prince George’s Maryland, TA, 5.00%, 07/01/30(b) |
585 | 581,908 | ||||||
| Howard County Housing Commission, RB, M/F Housing, 5.00%, 12/01/33 |
1,765 | 1,886,694 | ||||||
| Maryland Health & Higher Educational Facilities Authority, Refunding RB |
||||||||
| 5.00%, 07/01/29 |
2,200 | 2,237,857 | ||||||
| 5.00%, 07/01/31 |
2,400 | 2,490,622 | ||||||
| 5.00%, 07/01/32 |
500 | 532,680 | ||||||
| 5.00%, 07/01/33 |
2,585 | 2,686,856 | ||||||
| 5.00%, 07/01/34 |
775 | 821,640 | ||||||
| Series A, 5.00%, 01/01/31 |
2,865 | 2,961,382 | ||||||
| Series A, 5.00%, 01/01/32 |
3,010 | 3,109,470 | ||||||
| Series A, 5.00%, 01/01/33 |
3,165 | 3,268,507 | ||||||
| State of Maryland, GO, Series 1, 3.00%, 03/15/34 |
5,000 | 4,883,348 | ||||||
| 28,198,230 | ||||||||
| Massachusetts — 1.1% | ||||||||
| Commonwealth of Massachusetts, GO, Series I, 5.00%, 12/01/33 |
5,000 | 5,343,703 | ||||||
| Massachusetts Bay Transportation Authority Sales Tax Revenue, Refunding RB, CAB, Series A, 0.00%, 07/01/32(c) |
4,000 | 2,857,075 | ||||||
| Massachusetts Development Finance Agency, RB, Series A, 5.00%, 01/01/33 |
1,070 | 1,098,563 | ||||||
| Massachusetts Development Finance Agency, Refunding RB |
||||||||
| Series A, 5.00%, 01/01/32 |
2,020 | 2,093,970 | ||||||
| Series A, 5.00%, 01/01/33 |
1,500 | 1,552,764 | ||||||
| Series A, 5.00%, 01/01/34 |
2,085 | 2,152,114 | ||||||
| Series A, 5.00%, 01/01/35 |
2,000 | 2,057,216 | ||||||
| 17,155,405 | ||||||||
| Michigan — 2.6% | ||||||||
| City of Detroit Michigan, GO |
||||||||
| 5.00%, 04/01/26 |
735 | 756,061 | ||||||
| 5.00%, 04/01/27 |
580 | 602,873 | ||||||
| 5.00%, 04/01/28 |
665 | 697,238 | ||||||
| 5.00%, 04/01/29 |
665 | 694,995 | ||||||
| 5.00%, 04/01/30 |
510 | 531,871 | ||||||
| S C H E D U L E O F I N V E S T M E N T S |
23 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Michigan (continued) | ||||||||
| City of Detroit Michigan, GO (continued) |
||||||||
| 5.00%, 04/01/31 |
$ | 735 | $ | 764,869 | ||||
| 5.00%, 04/01/32 |
625 | 649,823 | ||||||
| 5.00%, 04/01/33 |
830 | 862,993 | ||||||
| Michigan Finance Authority, Refunding RB |
||||||||
| 5.00%, 04/15/30 |
4,000 | 4,533,828 | ||||||
| 5.30%, 04/15/47(a) |
16,595 | 16,428,040 | ||||||
| Michigan State Housing Development Authority, RB, M/F Housing, Series A, 0.55%, 04/01/25 |
985 | 945,148 | ||||||
| Michigan Strategic Fund, RB |
||||||||
| AMT, 5.00%, 06/30/30 |
1,325 | 1,387,552 | ||||||
| AMT, 5.00%, 12/31/32 |
2,000 | 2,112,520 | ||||||
| AMT, Sustainability Bonds, 4.00%, 10/01/61(a) |
3,690 | 3,642,294 | ||||||
| Michigan Strategic Fund, Refunding RB |
||||||||
| 5.00%, 11/15/29 |
1,260 | 1,274,261 | ||||||
| 5.00%, 11/15/34 |
1,410 | 1,413,659 | ||||||
| Saginaw Valley State University, Refunding RB |
||||||||
| Series A, 5.00%, 07/01/31 |
2,070 | 2,154,863 | ||||||
| Series A, 5.00%, 07/01/32 |
1,430 | 1,488,672 | ||||||
| State of Michigan Trunk Line Revenue, RB, 5.00%, 11/15/30 |
800 | 926,410 | ||||||
| 41,867,970 | ||||||||
| Minnesota — 0.5% | ||||||||
| City of Spring Lake Park Minnesota, RB, 4.00%, 06/15/29 |
1,185 | 1,135,678 | ||||||
| Minnesota Housing Finance Agency, RB, S/F Housing |
||||||||
| Series L, AMT, Sustainability Bonds, (FHLMC, FNMA, GNMA), 4.90%, 01/01/30 |
465 | 489,220 | ||||||
| Series L, AMT, Sustainability Bonds, (FHLMC, FNMA, GNMA), 4.95%, 07/01/30 |
490 | 518,297 | ||||||
| Sartell-St Stephen Independent School District No. 748, GO, CAB(c) |
||||||||
| Series B, 0.00%, 02/01/30 |
3,915 | 3,076,830 | ||||||
| Series B, 0.00%, 02/01/31 |
2,190 | 1,654,165 | ||||||
| Series B, 0.00%, 02/01/32 |
1,450 | 1,050,399 | ||||||
| 7,924,589 | ||||||||
| Mississippi — 1.2% | ||||||||
| Mississippi Development Bank, Refunding RB |
||||||||
| Series A, (AGM), 5.00%, 03/01/30 |
2,280 | 2,365,513 | ||||||
| Series A, (AGM), 5.00%, 03/01/31 |
1,595 | 1,654,616 | ||||||
| Series A, (AGM), 5.00%, 03/01/32 |
2,000 | 2,076,198 | ||||||
| Series A, (AGM), 5.00%, 03/01/33 |
1,275 | 1,322,369 | ||||||
| State of Mississippi Gaming Tax Revenue, RB, Series E, 5.00%, 10/15/33 |
12,225 | 12,591,211 | ||||||
| 20,009,907 | ||||||||
| Missouri — 0.5% | ||||||||
| Health & Educational Facilities Authority of the State of Missouri, Refunding RB |
||||||||
| 5.00%, 05/15/31 |
1,175 | 1,229,693 | ||||||
| 4.00%, 05/15/32 |
1,680 | 1,719,981 | ||||||
| 4.00%, 05/15/33 |
2,000 | 2,046,558 | ||||||
| Series A, 4.00%, 11/15/33 |
2,010 | 2,010,809 | ||||||
| Industrial Development Authority of the City of St. Louis Missouri, Refunding RB, Series A, 3.88%, 11/15/29 |
810 | 709,379 | ||||||
| St Louis Land Clearance for Redevelopment Authority, Refunding RB, 3.88%, 10/01/35 |
410 | 381,891 | ||||||
| 8,098,311 | ||||||||
| Security | Par (000) |
Value | ||||||
| Montana — 0.6% | ||||||||
| City of Forsyth Montana, Refunding RB, Series A, 3.90%, 03/01/31(a) |
$ | 10,050 | $ | 9,931,415 | ||||
|
|
|
|||||||
| Nebraska — 0.1% | ||||||||
| Elkhorn School District, GO |
||||||||
| 4.00%, 12/15/32 |
325 | 347,231 | ||||||
| 4.00%, 12/15/33 |
375 | 399,996 | ||||||
| 747,227 | ||||||||
| Nevada — 0.4% | ||||||||
| County of Clark Nevada, Refunding GO, Series B, 4.00%, 11/01/34 |
5,000 | 5,134,940 | ||||||
| State of Nevada Department of Business & Industry, RB |
||||||||
| Series A, 5.00%, 07/15/27 |
290 | 293,134 | ||||||
| Series A, 4.50%, 12/15/29(b) |
430 | 424,780 | ||||||
| 5,852,854 | ||||||||
| New Hampshire — 0.6% | ||||||||
| New Hampshire Business Finance Authority, Refunding RB |
||||||||
| 4.00%, 01/01/28 |
285 | 273,159 | ||||||
| 4.00%, 01/01/29 |
300 | 285,526 | ||||||
| 4.00%, 01/01/30 |
280 | 267,135 | ||||||
| Class A, AMT, 4.25%, 10/01/33(a) |
7,180 | 7,091,521 | ||||||
| Series A, AMT, 4.00%, 11/01/27(b) |
2,205 | 2,120,028 | ||||||
| 10,037,369 | ||||||||
| New Jersey — 16.6% | ||||||||
| Atlantic City Board of Education, Refunding GO |
||||||||
| (AGM), 4.00%, 04/01/30 |
170 | 176,294 | ||||||
| (AGM), 4.00%, 04/01/31 |
175 | 181,059 | ||||||
| Industrial Pollution Control Financing Authority of Gloucester County, Refunding RB, Series A, AMT, 5.00%, 12/01/24(e) |
340 | 341,212 | ||||||
| New Jersey Economic Development Authority, ARB |
||||||||
| 5.25%, 09/15/29 |
6,500 | 6,509,268 | ||||||
| Series A, AMT, 5.63%, 11/15/30 |
1,740 | 1,748,186 | ||||||
| Series B, AMT, 5.63%, 11/15/30 |
1,315 | 1,325,154 | ||||||
| New Jersey Economic Development Authority, RB |
||||||||
| Series A, 4.00%, 06/15/29(b) |
525 | 512,226 | ||||||
| Series A, 4.00%, 07/01/29 |
335 | 336,446 | ||||||
| Series A, 5.00%, 06/15/32 |
4,500 | 4,877,508 | ||||||
| Series C, 5.00%, 06/15/32 |
3,600 | 3,902,006 | ||||||
| Series DDD, 5.00%, 06/15/27(f) |
2,000 | 2,153,492 | ||||||
| AMT, 5.00%, 01/01/28 |
4,705 | 4,706,144 | ||||||
| Series QQQ, Sustainability Bonds, 5.00%, 06/15/30 |
600 | 681,056 | ||||||
| New Jersey Economic Development Authority, Refunding RB |
||||||||
| (AGM), 5.00%, 06/01/28 |
1,000 | 1,045,214 | ||||||
| 5.00%, 01/01/29 |
1,945 | 1,894,714 | ||||||
| (AGM), 5.00%, 06/01/30 |
1,500 | 1,573,563 | ||||||
| (AGM), 5.00%, 06/01/31 |
1,750 | 1,836,032 | ||||||
| (AGM), 4.00%, 06/01/32 |
2,125 | 2,150,630 | ||||||
| Series MMM, 4.00%, 06/15/35 |
5,000 | 5,215,403 | ||||||
| Sub-Series A, 4.00%, 07/01/32 |
9,855 | 9,868,077 | ||||||
| Series A, AMT, 2.20%, 10/01/39(a) |
4,000 | 3,512,717 | ||||||
| New Jersey Economic Development Authority, Refunding SAB, 5.75%, 04/01/31 |
5,000 | 4,637,379 | ||||||
| New Jersey Educational Facilities Authority, RB, Series A, 4.00%, 09/01/30 |
5,860 | 5,889,820 | ||||||
| 24 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| New Jersey (continued) | ||||||||
| New Jersey Health Care Facilities Financing Authority, Refunding RB |
||||||||
| 5.00%, 07/01/28 |
$ | 1,500 | $ | 1,540,798 | ||||
| 5.00%, 07/01/29 |
4,150 | 4,337,869 | ||||||
| 5.00%, 07/01/30 |
3,500 | 3,654,278 | ||||||
| Series A, 5.00%, 07/01/30 |
11,245 | 11,811,938 | ||||||
| New Jersey Higher Education Student Assistance Authority, RB |
||||||||
| Series 1A, AMT, 5.00%, 12/01/25 |
5,500 | 5,631,269 | ||||||
| Series 1A, AMT, 5.00%, 12/01/26 |
2,250 | 2,302,063 | ||||||
| Series A, AMT, 4.00%, 12/01/32 |
750 | 769,519 | ||||||
| Series A, AMT, 4.00%, 12/01/33 |
605 | 620,745 | ||||||
| Series A, AMT, 4.00%, 12/01/34 |
300 | 309,251 | ||||||
| Series A, AMT, 4.00%, 12/01/35 |
300 | 310,214 | ||||||
| Series B, AMT, 5.00%, 12/01/30 |
5,000 | 5,423,005 | ||||||
| New Jersey Housing & Mortgage Finance Agency, Refunding RB, Series A, AMT, 3.80%, 10/01/32 |
10,165 | 9,717,313 | ||||||
| New Jersey Transportation Trust Fund Authority, RB |
||||||||
| Series AA, 5.25%, 06/15/27 |
4,225 | 4,347,341 | ||||||
| Series AA, 5.25%, 06/15/28 |
4,500 | 4,631,893 | ||||||
| Series BB, 5.00%, 06/15/30 |
1,500 | 1,657,577 | ||||||
| Series C, (NPFGC), 0.00%, 12/15/30(c) |
45,000 | 36,115,071 | ||||||
| Series C, 5.25%, 06/15/32 |
10,000 | 10,190,237 | ||||||
| Series D, 5.00%, 06/15/32 |
5,000 | 5,084,479 | ||||||
| New Jersey Transportation Trust Fund Authority, Refunding RB |
||||||||
| Series A, 5.00%, 06/15/30 |
6,600 | 6,917,233 | ||||||
| Series A, 5.00%, 12/15/30 |
21,325 | 23,369,167 | ||||||
| Newark Housing Authority, Refunding RB, (NPFGC), 5.25%, 01/01/27 |
5,000 | 5,217,874 | ||||||
| South Jersey Transportation Authority, Refunding RB, Series A, 5.00%, 11/01/33 |
500 | 503,441 | ||||||
| State of New Jersey, GO, Series A, 4.00%, 06/01/30 |
26,000 | 27,938,301 | ||||||
| Tobacco Settlement Financing Corp., Refunding RB |
||||||||
| Series A, 5.00%, 06/01/30 |
16,740 | 17,869,831 | ||||||
| Series A, 5.00%, 06/01/32 |
8,270 | 8,804,798 | ||||||
| Township of Irvington New Jersey, Refunding GO, Series A, (AGM SAW), 5.00%, 07/15/24(f) |
3,450 | 3,479,840 | ||||||
| 267,628,945 | ||||||||
| New Mexico — 0.1% | ||||||||
| City of Santa Fe New Mexico, RB, Series A, 5.00%, 05/15/34 |
480 | 444,992 | ||||||
| City of Santa Fe New Mexico, Refunding RB, 5.00%, 05/15/32 |
1,000 | 942,008 | ||||||
| New Mexico Educational Assistance Foundation, RB |
||||||||
| Series A-1, AMT, 3.75%, 09/01/31 |
100 | 101,112 | ||||||
| Series A-1, AMT, 3.88%, 04/01/34 |
20 | 20,226 | ||||||
| Series A-2, AMT, 3.80%, 11/01/32 |
100 | 101,131 | ||||||
| Series A-2, AMT, 3.80%, 09/01/33 |
100 | 101,060 | ||||||
| 1,710,529 | ||||||||
| New York — 5.7% | ||||||||
| Build NYC Resource Corp., Refunding RB, AMT, 4.50%, 01/01/25(b) |
185 | 186,244 | ||||||
| County of Nassau New York, GO |
||||||||
| Series A, (AGM), 5.00%, 04/01/34 |
4,165 | 4,587,391 | ||||||
| Series A, (AGM), 5.00%, 04/01/35 |
4,385 | 4,819,950 | ||||||
| Genesee County Funding Corp., Refunding RB, Series A, 5.00%, 12/01/30 |
500 | 538,477 | ||||||
| Hempstead Town Local Development Corp., Refunding RB |
||||||||
| 5.00%, 06/01/30 |
200 | 222,188 | ||||||
| 5.00%, 06/01/31 |
300 | 337,726 | ||||||
| Security | Par (000) |
Value | ||||||
| New York (continued) | ||||||||
| Hempstead Town Local Development Corp., Refunding RB (continued) |
||||||||
| 5.00%, 06/01/32 |
$ | 100 | $ | 112,354 | ||||
| Metropolitan Transportation Authority, Refunding RB |
||||||||
| 2nd Sub Series, (AGM), 4.41%, 11/01/32(a) |
2,875 | 2,863,585 | ||||||
| Sub-Series C-1, Sustainability Bonds, 5.00%, 11/15/34 |
10,000 | 10,784,037 | ||||||
| Metropolitan Transportation Authority, Refunding RB, CAB, Series A, 0.00%, 11/15/30(c) |
13,000 | 10,414,590 | ||||||
| New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Sub-Series B-1, 5.00%, 08/01/30 |
4,980 | 5,406,098 | ||||||
| New York State Energy Research & Development Authority, Refunding RB, Series D, 3.50%, 10/01/29 |
9,000 | 8,950,960 | ||||||
| New York State Environmental Facilities Corp., RB, AMT, 5.13%, 09/01/50(a)(b) |
2,250 | 2,283,277 | ||||||
| New York Transportation Development Corp., ARB |
||||||||
| AMT, 5.00%, 01/01/30 |
2,590 | 2,670,898 | ||||||
| AMT, 5.00%, 01/01/31 |
5,000 | 5,179,640 | ||||||
| Series A, AMT, 4.00%, 07/01/32 |
5,500 | 5,477,123 | ||||||
| Series A, AMT, 4.00%, 07/01/33 |
6,000 | 5,929,777 | ||||||
| New York Transportation Development Corp., RB |
||||||||
| AMT, 4.00%, 10/01/30 |
13,140 | 13,108,925 | ||||||
| AMT, 4.00%, 10/31/34 |
350 | 353,513 | ||||||
| New York Transportation Development Corp., Refunding ARB, AMT, 3.00%, 08/01/31 |
2,275 | 2,082,268 | ||||||
| New York Transportation Development Corp., Refunding RB |
||||||||
| Series A, AMT, 5.00%, 12/01/28 |
350 | 373,381 | ||||||
| Series A, AMT, 5.00%, 12/01/29 |
235 | 253,057 | ||||||
| Series A, AMT, 5.00%, 12/01/30 |
250 | 273,247 | ||||||
| Port Authority of New York & New Jersey, Refunding ARB, Series 223, AMT, 5.00%, 07/15/30 |
3,730 | 4,099,623 | ||||||
| 91,308,329 | ||||||||
| North Carolina — 1.8% | ||||||||
| City of Charlotte North Carolina, Refunding GO |
||||||||
| Series A, 5.00%, 06/01/28 |
330 | 364,839 | ||||||
| Series A, 5.00%, 06/01/29 |
350 | 395,706 | ||||||
| Series A, 5.00%, 06/01/30 |
485 | 559,208 | ||||||
| North Carolina Medical Care Commission, RB |
||||||||
| 4.00%, 09/01/33 |
355 | 335,602 | ||||||
| 4.00%, 09/01/34 |
185 | 173,082 | ||||||
| Series A, 4.00%, 10/01/27 |
600 | 592,788 | ||||||
| North Carolina Medical Care Commission, Refunding RB, 5.00%, 10/01/30 |
1,500 | 1,488,175 | ||||||
| North Carolina Turnpike Authority, Refunding RB, CAB, Series C, (SAP), 0.00%, 07/01/30(c) |
550 | 405,134 | ||||||
| University of North Carolina at Chapel Hill, Refunding RB(a) |
||||||||
| Series A, 4.26%, 12/01/34 |
7,000 | 6,987,466 | ||||||
| Series A, 4.26%, 12/01/41 |
17,845 | 17,938,923 | ||||||
| 29,240,923 | ||||||||
| Ohio — 1.4% | ||||||||
| Akron Bath Copley Joint Township Hospital District, Refunding RB, Class A, 5.00%, 11/15/30 |
1,010 | 1,146,720 | ||||||
| Allen County Port Authority, Refunding RB, Series A, 4.00%, 12/01/31 |
460 | 450,386 | ||||||
| American Municipal Power, Inc., Refunding RB, Series A-2, 1.00%, 02/15/48(a) |
6,000 | 5,904,294 | ||||||
| Ohio Air Quality Development Authority, Refunding RB |
||||||||
| 3.25%, 09/01/29 |
4,450 | 4,095,493 | ||||||
| 4.00%, 09/01/30(a) |
1,650 | 1,665,439 | ||||||
| S C H E D U L E O F I N V E S T M E N T S |
25 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Ohio (continued) | ||||||||
| Ohio Air Quality Development Authority, Refunding RB (continued) |
||||||||
| Series A, AMT, 4.25%, 11/01/39(a) |
$ | 1,525 | $ | 1,540,145 | ||||
| Ohio State University, RB, Class A, Sustainability Bonds, 5.00%, 12/01/30 |
3,320 | 3,854,538 | ||||||
| State of Ohio, RB |
||||||||
| AMT, (AGM), 5.00%, 12/31/29 |
1,625 | 1,663,073 | ||||||
| AMT, (AGM), 5.00%, 12/31/30 |
2,400 | 2,456,747 | ||||||
| 22,776,835 | ||||||||
| Oklahoma — 0.6% | ||||||||
| Norman Regional Hospital Authority, Refunding RB |
||||||||
| 5.00%, 09/01/29 |
2,150 | 2,182,486 | ||||||
| 5.00%, 09/01/30 |
5,130 | 5,273,457 | ||||||
| Oklahoma Capitol Improvement Authority, RB, Series B, 5.00%, 07/01/30 |
2,150 | 2,436,882 | ||||||
| 9,892,825 | ||||||||
| Oregon — 0.9% | ||||||||
| Oregon Health & Science University, Refunding RB, Series B, 5.00%, 07/01/35 |
7,390 | 7,777,614 | ||||||
| Oregon State Facilities Authority, Refunding RB, Series B, 5.00%, 06/01/30 |
4,750 | 5,245,643 | ||||||
| Port of Morrow Oregon, Refunding GO |
||||||||
| Series A, 4.00%, 06/01/30 |
1,205 | 1,247,530 | ||||||
| Series D, 4.00%, 12/01/30 |
880 | 913,609 | ||||||
| 15,184,396 | ||||||||
| Pennsylvania — 18.2% | ||||||||
| Allegheny County Higher Education Building Authority, Refunding RB, 4.06%, 02/01/33(a) |
6,250 | 6,230,667 | ||||||
| Allegheny County Hospital Development Authority, RB, Series D2, 5.25%, 11/15/47(a) |
5,205 | 5,104,837 | ||||||
| Allegheny County Hospital Development Authority, Refunding RB |
||||||||
| Series A, 5.00%, 04/01/31 |
3,075 | 3,280,856 | ||||||
| Series A, 5.00%, 04/01/34 |
3,345 | 3,550,438 | ||||||
| Series A, 5.00%, 04/01/35 |
1,000 | 1,057,758 | ||||||
| Allentown City School District, Refunding GO, Series B, (BAM SAW), 5.00%, 02/01/31 |
4,000 | 4,329,926 | ||||||
| Allentown Neighborhood Improvement Zone Development Authority, RB(b) |
||||||||
| 5.00%, 05/01/28 |
835 | 851,313 | ||||||
| 5.00%, 05/01/32 |
9,310 | 9,424,949 | ||||||
| Allentown Neighborhood Improvement Zone Development Authority, Refunding RB |
||||||||
| 5.00%, 05/01/29 |
450 | 482,017 | ||||||
| 5.00%, 05/01/30 |
450 | 487,343 | ||||||
| Bucks County Industrial Development Authority, RB |
||||||||
| 5.00%, 07/01/29 |
555 | 539,191 | ||||||
| 5.00%, 07/01/30 |
700 | 677,040 | ||||||
| Chester County Health and Education Facilities Authority, Refunding RB |
||||||||
| Series A, 5.00%, 12/01/30 |
2,180 | 1,821,811 | ||||||
| Series A, 5.00%, 10/01/32 |
1,450 | 1,547,048 | ||||||
| Chester County Industrial Development Authority, SAB, 4.38%, 03/01/28(b) |
197 | 196,589 | ||||||
| City of Philadelphia Pennsylvania Airport Revenue, Refunding RB, Series A, 5.00%, 07/01/30 |
5,000 | 5,697,450 | ||||||
| City of Philadelphia Pennsylvania, Refunding GO |
||||||||
| (AGM), 5.00%, 08/01/30 |
9,235 | 9,974,575 | ||||||
| (AGM), 4.00%, 08/01/32 |
6,000 | 6,238,488 | ||||||
| Series A, 5.00%, 08/01/30 |
4,500 | 4,831,354 | ||||||
| Security |
Par (000) |
Value | ||||||
| Pennsylvania (continued) | ||||||||
| Clarion County Industrial Development Authority, Refunding RB, AMT, 2.45%, 12/01/39(a) |
$ | 4,200 | $ | 3,807,620 | ||||
| Commonwealth Financing Authority, RB, 5.00%, 06/01/32 |
6,000 | 6,443,506 | ||||||
| Commonwealth of Pennsylvania, Refunding GO, Series 1, 4.00%, 01/01/30 |
7,000 | 7,266,183 | ||||||
| Cumberland County Municipal Authority, Refunding RB |
||||||||
| 5.00%, 01/01/29 |
570 | 571,354 | ||||||
| 5.00%, 01/01/30 |
1,285 | 1,288,878 | ||||||
| 5.00%, 01/01/32 |
1,510 | 1,530,198 | ||||||
| Dauphin County General Authority, Refunding RB, Series A, 4.00%, 06/01/31 |
2,275 | 2,329,874 | ||||||
| East Hempfield Township Industrial Development Authority, RB, 5.00%, 07/01/25(f) |
825 | 849,098 | ||||||
| Geisinger Authority, Refunding RB |
||||||||
| Series A-2, 5.00%, 02/15/32 |
4,000 | 4,223,434 | ||||||
| Series A-2, 5.00%, 02/15/34 |
1,750 | 1,844,026 | ||||||
| Lancaster County Hospital Authority, Refunding RB, Series A, 3.00%, 08/15/30 |
2,535 | 2,535,219 | ||||||
| Latrobe Industrial Development Authority, Refunding RB, 5.00%, 03/01/30 |
150 | 155,617 | ||||||
| Lehigh County Industrial Development Authority, Refunding RB, Series A, 3.00%, 09/01/29 |
15,000 | 14,601,941 | ||||||
| Montgomery County Higher Education and Health Authority, Refunding RB |
||||||||
| 4.00%, 09/01/35 |
1,735 | 1,762,872 | ||||||
| 4.00%, 09/01/36 |
1,500 | 1,512,856 | ||||||
| Series A, 5.00%, 09/01/31 |
1,750 | 1,875,401 | ||||||
| Series A, 5.00%, 09/01/32 |
1,315 | 1,397,124 | ||||||
| Montgomery County Industrial Development Authority, Refunding RB |
||||||||
| 5.00%, 01/01/30 |
2,000 | 1,893,321 | ||||||
| 4.10%, 04/01/53(a) |
7,905 | 8,038,361 | ||||||
| Series A, 5.25%, 01/15/25(f) |
3,250 | 3,319,512 | ||||||
| Northampton County General Purpose Authority, Refunding RB, 5.00%, 11/01/34 |
5,400 | 5,848,323 | ||||||
| Pennsylvania Economic Development Financing Authority, RB |
||||||||
| Series A-1, 5.00%, 04/15/30 |
2,500 | 2,791,121 | ||||||
| AMT, 5.00%, 12/31/29 |
8,750 | 9,087,247 | ||||||
| AMT, 5.00%, 06/30/30 |
3,500 | 3,720,397 | ||||||
| AMT, 5.00%, 12/31/30 |
13,100 | 13,431,012 | ||||||
| AMT, 5.00%, 12/31/34 |
16,500 | 16,860,503 | ||||||
| Pennsylvania Economic Development Financing Authority, Refunding RB, 5.00%, 03/15/31 |
4,500 | 4,729,067 | ||||||
| Pennsylvania Higher Educational Facilities Authority, RB |
||||||||
| Series AT-1, 5.00%, 06/15/30 |
7,810 | 8,205,211 | ||||||
| Series AT-1, 5.00%, 06/15/30(f) |
100 | 105,184 | ||||||
| Pennsylvania Higher Educational Facilities Authority, Refunding RB |
||||||||
| 5.00%, 05/01/30 |
425 | 439,862 | ||||||
| 5.00%, 05/01/31 |
1,275 | 1,318,558 | ||||||
| 4.00%, 05/01/32 |
3,000 | 2,403,875 | ||||||
| 5.00%, 05/01/32 |
1,750 | 1,806,984 | ||||||
| 5.00%, 05/01/33 |
3,320 | 3,423,297 | ||||||
| 5.00%, 05/01/35 |
1,000 | 1,027,165 | ||||||
| Pennsylvania Housing Finance Agency, RB, S/F Housing |
||||||||
| Series 137, Sustainability Bonds, 1.90%, 04/01/30 |
1,625 | 1,486,495 | ||||||
| Series 137, Sustainability Bonds, 1.95%, 10/01/30 |
875 | 795,110 | ||||||
| Pennsylvania Housing Finance Agency, Refunding RB, Series 125A, AMT, 3.40%, 10/01/32 |
8,890 | 8,388,610 | ||||||
| 26 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Pennsylvania (continued) | ||||||||
| Pennsylvania Turnpike Commission, RB |
||||||||
| Series B, 5.00%, 12/01/29 |
$ | 800 | $ | 906,876 | ||||
| Series B, 5.00%, 12/01/30 |
620 | 714,599 | ||||||
| Sub-Series B-1, 5.00%, 06/01/31 |
3,000 | 3,227,678 | ||||||
| Sub-Series B-1, 5.00%, 06/01/32 |
4,075 | 4,383,841 | ||||||
| Sub-Series B-1, 5.00%, 06/01/33 |
4,000 | 4,303,057 | ||||||
| Pennsylvania Turnpike Commission, Refunding RB |
||||||||
| 2nd Sub Series, 5.00%, 12/01/32 |
1,000 | 1,086,181 | ||||||
| 2nd Sub Series, 5.00%, 12/01/33 |
1,815 | 1,969,927 | ||||||
| 2nd Sub Series, 5.00%, 12/01/34 |
1,500 | 1,625,061 | ||||||
| 2nd Sub Series, 5.00%, 12/01/35 |
2,005 | 2,155,141 | ||||||
| Series B, 5.00%, 12/01/30 |
330 | 380,351 | ||||||
| Sub-Series B-2, (AGM), 5.00%, 06/01/34 |
4,000 | 4,283,540 | ||||||
| Philadelphia Authority for Industrial Development, RB, 4.00%, 06/15/29 |
300 | 285,997 | ||||||
| Philadelphia Gas Works Co., RB, Series A, (AGM), 5.00%, 08/01/30 |
800 | 907,677 | ||||||
| Philadelphia Gas Works Co., Refunding RB, Series 14-T, 5.00%, 10/01/30 |
425 | 446,691 | ||||||
| Pittsburgh Water & Sewer Authority, RB, Series B, (AGM), 5.00%, 09/01/30 |
205 | 232,091 | ||||||
| School District of Philadelphia, GO |
||||||||
| Series A, (SAW), 5.00%, 09/01/24 |
1,500 | 1,511,912 | ||||||
| Series A, (SAW), 5.00%, 09/01/25 |
1,300 | 1,330,570 | ||||||
| Series A, (SAW), 5.00%, 09/01/26 |
3,250 | 3,385,668 | ||||||
| Series A, (SAW), 5.00%, 09/01/27 |
2,675 | 2,839,284 | ||||||
| Series A, (SAW), 5.00%, 09/01/28 |
1,630 | 1,761,305 | ||||||
| Series A, (SAW), 5.00%, 09/01/30 |
2,380 | 2,652,479 | ||||||
| Southeastern Pennsylvania Transportation Authority, RB, 5.00%, 06/01/30 |
5,000 | 5,631,356 | ||||||
| Wayne County Hospital & Health Facilities Authority, RB |
||||||||
| Series A, (GTD), 5.00%, 07/01/31 |
460 | 489,795 | ||||||
| Series A, (GTD), 4.00%, 07/01/33 |
440 | 449,954 | ||||||
| West Cornwall Township Municipal Authority, Refunding RB |
||||||||
| Series A, 4.00%, 11/15/27 |
130 | 126,524 | ||||||
| Series A, 4.00%, 11/15/28 |
105 | 101,836 | ||||||
| Series A, 4.00%, 11/15/29 |
140 | 133,402 | ||||||
| Series A, 4.00%, 11/15/30 |
190 | 179,703 | ||||||
| Series A, 4.00%, 11/15/31 |
200 | 187,699 | ||||||
| Westmoreland County Municipal Authority, Refunding RB |
||||||||
| (BAM), 5.00%, 08/15/27 |
1,500 | 1,545,118 | ||||||
| (BAM), 5.00%, 08/15/31 |
5,000 | 5,400,582 | ||||||
| (BAM), 5.00%, 08/15/32 |
17,945 | 19,373,545 | ||||||
| 293,447,506 | ||||||||
| Puerto Rico — 5.3% | ||||||||
| Commonwealth of Puerto Rico, GO |
||||||||
| Series A-1, Restructured, 5.63%, 07/01/29 |
1,533 | 1,657,301 | ||||||
| Series A-1, Restructured, 5.75%, 07/01/31 |
5,097 | 5,646,089 | ||||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB(c) |
||||||||
| Series A-1, Restructured, 0.00%, 07/01/29 |
14,055 | 11,402,465 | ||||||
| Series A-1, Restructured, 0.00%, 07/01/31 |
38,523 | 28,780,889 | ||||||
| Series A-1, Restructured, 0.00%, 07/01/33 |
43,149 | 29,478,244 | ||||||
| Series B-1, Restructured, 0.00%, 07/01/31 |
5,755 | 4,275,801 | ||||||
| Series B-1, Restructured, 0.00%, 07/01/33 |
6,477 | 4,411,689 | ||||||
| 85,652,478 | ||||||||
| Security | Par (000) |
Value | ||||||
| Rhode Island — 1.0% | ||||||||
| Rhode Island Health and Educational Building Corp., Refunding RB, 5.00%, 05/15/30 |
$ | 1,500 | $ | 1,555,519 | ||||
| Rhode Island Student Loan Authority, RB |
||||||||
| Series A, AMT, 5.00%, 12/01/29 |
1,950 | 2,102,596 | ||||||
| Series A, AMT, 5.00%, 12/01/30 |
1,300 | 1,418,536 | ||||||
| Tobacco Settlement Financing Corp., Refunding RB |
||||||||
| Series A, 5.00%, 06/01/28 |
2,750 | 2,777,083 | ||||||
| Series A, 5.00%, 06/01/29 |
4,500 | 4,545,981 | ||||||
| Series A, 5.00%, 06/01/30 |
4,215 | 4,258,148 | ||||||
| 16,657,863 | ||||||||
| South Carolina — 1.1% | ||||||||
| Patriots Energy Group Financing Agency, RB, Series A1, 5.25%, 10/01/54(a) |
3,200 | 3,427,536 | ||||||
| South Carolina Jobs-Economic Development Authority, Refunding RB, Series A, 5.00%, 05/01/35 |
10,000 | 10,503,832 | ||||||
| South Carolina Public Service Authority, Refunding RB, Series A, 5.00%, 12/01/31 |
2,800 | 3,147,116 | ||||||
| 17,078,484 | ||||||||
| Tennessee — 1.3% | ||||||||
| Chattanooga Health Educational & Housing Facility Board, Refunding RB, Series A, 4.00%, 08/01/36 |
2,000 | 2,016,930 | ||||||
| Chattanooga-Hamilton County Hospital Authority, Refunding RB, Series A, 5.00%, 10/01/31 |
6,210 | 6,239,944 | ||||||
| Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, RB, Series A, 5.00%, 07/01/31 |
1,300 | 1,344,297 | ||||||
| Tennergy Corp., RB, Series A, 4.00%, 12/01/51(a) |
6,000 | 6,033,609 | ||||||
| Tennessee Energy Acquisition Corp., RB, Series A, 5.00%, 05/01/52(a) |
5,000 | 5,312,850 | ||||||
| 20,947,630 | ||||||||
| Texas — 14.3% | ||||||||
| Arlington Higher Education Finance Corp., RB, 4.00%, 06/15/31 |
3,030 | 2,770,337 | ||||||
| Central Texas Regional Mobility Authority, RB, Series A, Senior Lien, 5.00%, 07/01/25(f) |
4,275 | 4,396,418 | ||||||
| Central Texas Turnpike System, RB |
||||||||
| Series C, 5.00%, 08/15/32 |
12,500 | 12,567,095 | ||||||
| Series C, 5.00%, 08/15/33 |
14,000 | 14,071,223 | ||||||
| City of Austin Texas Airport System Revenue, ARB, AMT, 5.00%, 11/15/30 |
2,000 | 2,208,028 | ||||||
| City of Austin Texas Water & Wastewater System Revenue, Refunding RB, Series C, 5.00%, 11/15/30 |
900 | 1,039,619 | ||||||
| City of Houston Texas Airport System Revenue, ARB |
||||||||
| AMT, 5.00%, 07/15/28 |
3,000 | 3,044,993 | ||||||
| Series B-1, AMT, 5.00%, 07/15/30 |
1,900 | 1,902,135 | ||||||
| City of Houston Texas Airport System Revenue, Refunding RB |
||||||||
| Sub-Series D, 5.00%, 07/01/33 |
7,000 | 7,622,586 | ||||||
| AMT, 4.75%, 07/01/24 |
3,135 | 3,140,004 | ||||||
| AMT, 5.00%, 07/01/29 |
14,000 | 13,982,500 | ||||||
| Series C, AMT, 5.00%, 07/15/27 |
2,000 | 2,005,000 | ||||||
| Sub-Series A, AMT, 5.00%, 07/01/30 |
1,200 | 1,305,033 | ||||||
| City of Houston Texas Combined Utility System Revenue, Refunding RB, Series B, 1st Lien, Subordinate, 5.00%, 11/15/34 |
7,315 | 7,687,736 | ||||||
| Clifton Higher Education Finance Corp., RB, 6.00%, 08/15/33 |
1,650 | 1,653,379 | ||||||
| Clifton Higher Education Finance Corp., Refunding RB |
||||||||
| Series A, (PSF), 4.00%, 08/15/31 |
1,250 | 1,276,255 | ||||||
| Series A, 3.95%, 12/01/32 |
1,650 | 1,628,239 | ||||||
| S C H E D U L E O F I N V E S T M E N T S |
27 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Texas (continued) | ||||||||
| County of Nueces Texas, Refunding GO |
||||||||
| 4.00%, 02/15/33 |
$ | 1,165 | $ | 1,229,965 | ||||
| 4.00%, 02/15/35 |
725 | 756,574 | ||||||
| Dallas Fort Worth International Airport, Refunding RB, 5.00%, 11/01/32 |
2,500 | 2,858,246 | ||||||
| DeSoto Independent School District, Refunding GO, (PSF), 5.00%, 08/15/30 |
3,980 | 4,460,014 | ||||||
| Harris County Cultural Education Facilities Finance Corp., RB |
||||||||
| Series B, 5.75%, 01/01/28 |
480 | 479,964 | ||||||
| Series B, 6.38%, 01/01/33 |
40 | 40,010 | ||||||
| Harris County Cultural Education Facilities Finance Corp., Refunding RB |
||||||||
| Series A, 5.00%, 06/01/28 |
1,150 | 1,095,271 | ||||||
| Series A, 5.00%, 01/01/33 |
850 | 795,336 | ||||||
| Series A, 5.00%, 06/01/33 |
3,000 | 2,683,513 | ||||||
| Leander Independent School District, Refunding GO, CAB(c) |
||||||||
| Series D, (PSF), 0.00%, 08/15/24(f) |
4,610 | 3,017,481 | ||||||
| Series D, (PSF), 0.00%, 08/15/31 |
1,200 | 866,123 | ||||||
| Series D, (PSF), 0.00%, 08/15/32 |
1,875 | 1,281,149 | ||||||
| Love Field Airport Modernization Corp., ARB, AMT, 5.00%, 11/01/26 |
430 | 447,028 | ||||||
| Matagorda County Navigation District No. 1, Refunding RB |
||||||||
| Series A, (AMBAC), 4.40%, 05/01/30 |
31,120 | 30,965,143 | ||||||
| Series B, (AMBAC), 4.55%, 05/01/30 |
10,000 | 9,791,352 | ||||||
| Series B-2, 4.00%, 06/01/30 |
12,995 | 12,644,302 | ||||||
| AMT, 4.25%, 05/01/30 |
6,855 | 6,802,311 | ||||||
| Midland County Fresh Water Supply District No. 1, RB, CAB, Series A, 0.00%, 09/15/27(c)(f) |
21,370 | 15,527,567 | ||||||
| Mission Economic Development Corp., Refunding RB, AMT, Senior Lien, 4.63%, 10/01/31(b) |
3,805 | 3,752,826 | ||||||
| New Hope Cultural Education Facilities Finance Corp., RB, Series A, 4.00%, 08/15/29(b) |
335 | 325,304 | ||||||
| Socorro Independent School District, Refunding GO, Series B, (PSF), 4.00%, 08/15/34 |
3,000 | 3,107,184 | ||||||
| Spring Branch Independent School District, GO, (PSF), 3.00%, 02/01/33 |
5,000 | 4,868,811 | ||||||
| Tarrant County Cultural Education Facilities Finance Corp., RB |
||||||||
| Class F, 5.00%, 11/15/52(a) |
3,585 | 3,986,274 | ||||||
| Series B, 5.00%, 07/01/35 |
6,000 | 6,472,008 | ||||||
| Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, Series A-1, 5.00%, 10/01/29 |
1,000 | 1,001,416 | ||||||
| Texas Municipal Gas Acquisition & Supply Corp. III, Refunding RB |
||||||||
| 5.00%, 12/15/30 |
16,435 | 17,429,525 | ||||||
| 5.00%, 12/15/32 |
5,000 | 5,327,800 | ||||||
| Texas Public Finance Authority, Refunding RB, 4.00%, 12/01/31 |
1,650 | 1,690,897 | ||||||
| Texas Water Development Board, RB, 5.00%, 10/15/30 |
3,850 | 4,440,148 | ||||||
| 230,444,122 | ||||||||
| Security | Par (000) |
Value | ||||||
| Utah — 0.5% |
||||||||
| City of Salt Lake City Utah Airport Revenue, ARB, Series A, AMT, 5.00%, 07/01/30 |
$ | 2,980 | $ | 3,251,885 | ||||
| Utah Transit Authority, Refunding RB, Subordinate, 4.00%, 12/15/31 |
5,000 | 5,076,177 | ||||||
| 8,328,062 | ||||||||
| Virginia — 0.8% | ||||||||
| Dulles Town Center Community Development Authority, Refunding SAB, 4.25%, 03/01/26 |
500 | 495,333 | ||||||
| Hanover County Economic Development Authority, Refunding RB, 4.00%, 07/01/30(b) |
1,000 | 914,386 | ||||||
| Loudoun County Economic Development Authority, RB, Series B, VRDN, 3.14%, 02/07/24(a)(g) |
10,000 | 10,000,000 | ||||||
| Norfolk Redevelopment & Housing Authority, RB, Series B, 4.00%, 01/01/25 |
1,650 | 1,625,050 | ||||||
| 13,034,769 | ||||||||
| Washington — 2.4% | ||||||||
| County of King Washington Sewer Revenue, Refunding RB, Series A, Junior Lien, 4.78%, 01/01/40(a) |
5,750 | 5,615,182 | ||||||
| Port of Seattle Washington, ARB |
||||||||
| Series C, AMT, Intermediate Lien, 5.00%, 05/01/33 |
6,695 | 6,981,607 | ||||||
| Series C, AMT, Intermediate Lien, 5.00%, 05/01/34 |
6,000 | 6,238,583 | ||||||
| Washington Health Care Facilities Authority, Refunding RB, Series B, 5.00%, 08/15/35 |
9,485 | 9,933,252 | ||||||
| Washington State Convention Center Public Facilities District, RB, 4.00%, 07/01/31 |
4,240 | 4,199,635 | ||||||
| Washington State Housing Finance Commission, Refunding RB |
||||||||
| Series A, 5.00%, 07/01/24 |
350 | 351,115 | ||||||
| Series A, 5.00%, 07/01/25 |
350 | 354,461 | ||||||
| Series A, 5.00%, 07/01/26 |
285 | 292,118 | ||||||
| Series A, 5.00%, 07/01/27 |
350 | 363,758 | ||||||
| Series A, 5.00%, 07/01/28 |
550 | 579,434 | ||||||
| Series A, 5.00%, 07/01/29 |
775 | 826,475 | ||||||
| Series A, 5.00%, 07/01/30 |
815 | 878,339 | ||||||
| WBRP 3.2, RB |
||||||||
| Series A, 5.00%, 01/01/31 |
1,000 | 1,029,567 | ||||||
| Series A, 5.00%, 01/01/32 |
1,140 | 1,173,310 | ||||||
| 38,816,836 | ||||||||
| West Virginia — 0.2% | ||||||||
| West Virginia Hospital Finance Authority, RB |
||||||||
| Series A, 5.00%, 06/01/31 |
1,950 | 2,063,144 | ||||||
| Series A, 5.00%, 06/01/33 |
1,100 | 1,163,183 | ||||||
| 3,226,327 | ||||||||
| Wisconsin — 2.5% | ||||||||
| Public Finance Authority, RB(b) |
||||||||
| 4.00%, 06/15/30 |
1,520 | 1,401,258 | ||||||
| 5.00%, 01/01/31 |
650 | 649,465 | ||||||
| Class A, 5.00%, 06/15/31 |
720 | 700,502 | ||||||
| Series A, 4.00%, 07/15/29 |
575 | 556,649 | ||||||
| Series A, 4.00%, 03/01/30 |
1,305 | 1,246,465 | ||||||
| Series A, 3.75%, 06/01/30 |
345 | 319,697 | ||||||
| Public Finance Authority, Refunding RB |
||||||||
| 4.00%, 09/01/29(b) |
325 | 295,465 | ||||||
| Class A, 3.00%, 12/01/26(b) |
250 | 241,271 | ||||||
| Class C, 4.00%, 10/01/41(a) |
7,000 | 7,098,762 | ||||||
| 28 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
|
|
||||||||
| Wisconsin (continued) | ||||||||
| Public Finance Authority, Refunding RB (continued) |
||||||||
| AMT, 2.63%, 11/01/25 |
$ | 3,000 | $ | 2,945,863 | ||||
| Class B, AMT, 4.00%, 10/01/46(a) |
1,750 | 1,856,775 | ||||||
| Series B, AMT, 5.25%, 07/01/28 |
1,780 | 1,780,513 | ||||||
| State of Wisconsin, GO, Series A, 4.97%, 05/01/25(a) |
12,160 | 12,088,167 | ||||||
| Wisconsin Health & Educational Facilities Authority, Refunding RB, 5.00%, 04/01/35 |
2,500 | 2,762,682 | ||||||
| Wisconsin Housing & Economic Development Authority Home Ownership Revenue, RB, S/F Housing, Series D, (FNMA), 3.00%, 09/01/32 |
7,265 | 6,615,629 | ||||||
|
|
|
|||||||
| 40,559,163 | ||||||||
|
|
|
|||||||
| Total Municipal Bonds — 142.7% |
2,298,492,574 | |||||||
|
|
|
|||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts(h)(i) |
| |||||||
| Colorado — 0.6% | ||||||||
| City & County of Denver Colorado Airport System Revenue, Refunding ARB |
||||||||
| Series A, AMT, 4.25%, 11/15/31 |
8,085 | 8,090,721 | ||||||
| Series A, AMT, 4.25%, 11/15/32 |
2,230 | 2,231,710 | ||||||
|
|
|
|||||||
| 10,322,431 | ||||||||
| Florida — 5.9% | ||||||||
| County of Broward Florida Airport System Revenue, ARB |
||||||||
| Series Q-1, 4.00%, 10/01/29 |
17,200 | 17,216,389 | ||||||
| Series Q-1, 4.00%, 10/01/30 |
18,095 | 18,112,269 | ||||||
| Series Q-1, 4.00%, 10/01/31 |
18,820 | 18,837,953 | ||||||
| Series Q-1, 4.00%, 10/01/32 |
19,575 | 19,593,666 | ||||||
| Series Q-1, 4.00%, 10/01/33 |
20,355 | 20,374,419 | ||||||
|
|
|
|||||||
| 94,134,696 | ||||||||
|
|
|
|||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 6.5% |
104,457,127 | |||||||
|
|
|
|||||||
| Total Long-Term Investments — 149.2% |
2,402,949,701 | |||||||
|
|
|
|||||||
| Security |
Shares |
Value | ||||||
|
|
||||||||
| Short-Term Securities |
||||||||
| Money Market Funds — 0.5% | ||||||||
| BlackRock Liquidity Funds, MuniCash, Institutional Class, 4.09%(j)(k) |
8,145,825 | $ | 8,146,639 | |||||
|
|
|
|||||||
| Total Short-Term Securities — 0.5% |
8,146,639 | |||||||
|
|
|
|||||||
| Total Investments — 149.7% |
2,411,096,340 | |||||||
| Other Assets Less Liabilities — 1.3% |
19,577,651 | |||||||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (4.4)% |
|
(70,363,626 | ) | |||||
| RVMTP Shares at Liquidation Value, Net of Deferred Offering Costs — (46.6)% |
|
(749,783,581 | ) | |||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% |
|
$ | 1,610,526,784 | |||||
|
|
|
|||||||
| (a) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
| (b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (c) | Zero-coupon bond. |
| (d) | Step coupon security. Coupon rate will either increase (step-up bond) or decrease (step-down bond) at regular intervals until maturity. Interest rate shown reflects the rate currently in effect. |
| (e) | Security is collateralized by municipal bonds or U.S. Treasury obligations. |
| (f) | 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. |
| (g) | Variable rate security. Rate as of period end and maturity is the date the principal owed can be recovered through demand. |
| (h) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (i) | All or a portion of the security is subject to a recourse agreement. The aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire between October 1, 2029 to November 15, 2032, is $71,728,412. See Note 4 of the Notes to Financial Statements for details. |
| (j) | Affiliate of the Trust. |
| (k) | Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Trust during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliated Issuer | Value at 07/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 01/31/24 |
Shares Held at 01/31/24 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
| BlackRock Liquidity Funds, MuniCash, Institutional Class |
$ | 88,184,293 | $ | — | $ | (80,040,437 | )(a) | $ | 6,596 | $ | (3,813 | ) | $ | 8,146,639 | 8,145,825 | $ | 763,161 | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| (a) | Represents net amount purchased (sold). |
| S C H E D U L E O F I N V E S T M E N T S |
29 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal 2030 Target Term Trust (BTT) |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Trust’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Trust’s financial instruments categorized in the fair value hierarchy. The breakdown of the Trust’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets |
||||||||||||||||
| Investments |
||||||||||||||||
| Long-Term Investments |
||||||||||||||||
| Municipal Bonds |
$ | — | $ | 2,298,492,574 | $ | — | $ | 2,298,492,574 | ||||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts |
— | 104,457,127 | — | 104,457,127 | ||||||||||||
| Short-Term Securities |
||||||||||||||||
| Money Market Funds |
8,146,639 | — | — | 8,146,639 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 8,146,639 | $ | 2,402,949,701 | $ | — | $ | 2,411,096,340 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Liabilities |
||||||||||||||||
| TOB Trust Certificates |
$ | — | $ | (69,569,982 | ) | $ | — | $ | (69,569,982 | ) | ||||||
| RVMTP Shares at Liquidation Value |
— | (750,000,000 | ) | — | (750,000,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | — | $ | (819,569,982 | ) | $ | — | $ | (819,569,982 | ) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
See notes to financial statements.
| 30 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) January 31, 2024 |
BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Municipal Bonds |
||||||||
| Alabama — 4.6% | ||||||||
| Black Belt Energy Gas District, RB, Series A, 5.25%, 01/01/54(a) |
$ | 3,875 | $ | 4,172,843 | ||||
| City of Birmingham Alabama, GO, CAB, Series A-1, Convertible, 5.00%, 09/01/25(b)(c) |
1,165 | 1,203,555 | ||||||
| County of Jefferson Alabama, Refunding RB, 5.50%, 10/01/53 |
1,100 | 1,206,642 | ||||||
| Energy Southeast A Cooperative District, RB, Series B-1, 5.75%, 04/01/54(a) |
6,980 | 7,758,898 | ||||||
| Southeast Energy Authority A Cooperative District, RB, Series B, 5.00%, 01/01/54(a) |
755 | 799,975 | ||||||
| 15,141,913 | ||||||||
| Arizona — 1.1% | ||||||||
| Arizona Industrial Development Authority, RB(d) |
||||||||
| 4.38%, 07/01/39 |
725 | 645,592 | ||||||
| Series A, 5.00%, 07/01/49 |
690 | 625,312 | ||||||
| Series A, 5.00%, 07/01/54 |
530 | 471,794 | ||||||
| City of Phoenix Civic Improvement Corp., RB, Junior Lien, 5.25%, 07/01/47 |
835 | 951,365 | ||||||
| Industrial Development Authority of the County of Pima, Refunding RB, 5.00%, 06/15/49(d) |
685 | 626,279 | ||||||
| Maricopa County Industrial Development Authority, Refunding RB, 5.00%, 07/01/54(d) |
360 | 337,113 | ||||||
| 3,657,455 | ||||||||
| California — 14.1% | ||||||||
| California Community Housing Agency, RB, M/F Housing, 3.00%, 08/01/56(d) |
155 | 109,017 | ||||||
| California Enterprise Development Authority, RB, 8.00%, 11/15/62(d) |
475 | 469,131 | ||||||
| California Health Facilities Financing Authority, Refunding RB, Series B, 5.00%, 11/15/46 |
3,715 | 3,826,807 | ||||||
| California Infrastructure & Economic Development Bank, RB, Series A, 1st Lien, (AMBAC), 5.00%, 01/01/28(b) |
10,100 | 11,093,266 | ||||||
| CSCDA Community Improvement Authority, RB, M/F Housing(d) |
||||||||
| 4.00%, 10/01/56 |
195 | 159,343 | ||||||
| Senior Lien, Sustainability Bonds, 3.13%, 06/01/57 |
690 | 444,727 | ||||||
| Series A, Senior Lien, Sustainability Bonds, 4.00%, 12/01/58 |
955 | 713,258 | ||||||
| Sustainability Bonds, 5.00%, 09/01/37 |
120 | 123,050 | ||||||
| Sustainability Bonds, 4.00%, 12/01/56 |
230 | 160,234 | ||||||
| Series A, Sustainability Bonds, 4.00%, 06/01/58 |
610 | 441,434 | ||||||
| Los Angeles County Facilities, Inc., RB, Series A, 4.00%, 12/01/48 |
2,370 | 2,378,962 | ||||||
| Mount San Antonio Community College District, Refunding GO, CAB, Series A, Convertible, Election 2013, 6.25%, 08/01/43(c) |
1,580 | 1,562,200 | ||||||
| Regents of the University of California Medical Center Pooled Revenue, RB, Series P, 4.00%, 05/15/53 |
4,100 | 4,067,565 | ||||||
| San Diego County Regional Airport Authority, ARB, Series A, Subordinate, 4.00%, 07/01/51 |
2,730 | 2,697,704 | ||||||
| San Diego Unified School District, GO, Series C, Election 2008, 0.00%, 07/01/38(e) |
2,000 | 1,195,022 | ||||||
| San Diego Unified School District, Refunding GO, CAB, Series R-1, 0.00%, 07/01/31(e) |
1,400 | 1,122,153 | ||||||
| Security | Par (000) |
Value | ||||||
| California (continued) | ||||||||
| San Francisco City & County Public Utilities Commission Power Revenue, Refunding RB, Series B, 4.00%, 11/01/51 |
$ | 10,000 | $ | 10,013,092 | ||||
| Yosemite Community College District, GO, Series D, Election 2004, 0.00%, 08/01/37(e) |
10,000 | 6,088,551 | ||||||
| 46,665,516 | ||||||||
| Colorado — 0.3% | ||||||||
| Sabell Metropolitan District, GO, Series A, 5.00%, 12/01/50(d) |
1,055 | 908,861 | ||||||
| Connecticut — 0.3% | ||||||||
| Connecticut State Health & Educational Facilities Authority, RB, 4.25%, 07/15/53 |
1,170 | 1,141,539 | ||||||
| Delaware — 0.7% | ||||||||
| County of Kent Delaware, RB |
||||||||
| 5.00%, 07/01/53 |
1,810 | 1,710,470 | ||||||
| Series A, 5.00%, 07/01/40 |
770 | 771,002 | ||||||
| 2,481,472 | ||||||||
| District of Columbia — 3.9% | ||||||||
| District of Columbia Income Tax Revenue, RB, Series A, 5.25%, 05/01/48 |
1,850 | 2,073,679 | ||||||
| District of Columbia Tobacco Settlement Financing Corp., Refunding RB, 6.75%, 05/15/40 |
9,225 | 9,523,981 | ||||||
| Washington Metropolitan Area Transit Authority Dedicated Revenue, RB, 5.00%, 07/15/48 |
1,210 | 1,324,186 | ||||||
| 12,921,846 | ||||||||
| Florida — 5.9% | ||||||||
| Brevard County Health Facilities Authority, Refunding RB, 5.00%, 04/01/39 |
1,795 | 1,800,444 | ||||||
| Capital Trust Agency, Inc., RB(d) |
||||||||
| Series A, 5.00%, 06/01/45 |
615 | 531,871 | ||||||
| Series A, 5.50%, 06/01/57 |
220 | 193,393 | ||||||
| County of Miami-Dade Florida Water & Sewer System Revenue, Refunding RB, Series B, 4.00%, 10/01/49 |
2,665 | 2,548,060 | ||||||
| County of Pasco Florida, RB, (AGM), 5.00%, 09/01/48 |
3,090 | 3,322,439 | ||||||
| Escambia County Health Facilities Authority, Refunding RB |
||||||||
| 5.00%, 08/15/38 |
1,000 | 1,030,832 | ||||||
| 5.00%, 08/15/40 |
1,050 | 1,075,125 | ||||||
| Florida Development Finance Corp., RB |
||||||||
| 6.50%, 06/30/57(d) |
420 | 403,010 | ||||||
| Series A, 5.00%, 06/15/56 |
580 | 561,706 | ||||||
| Florida Development Finance Corp., Refunding RB, 5.00%, 09/15/40(d) |
340 | 313,050 | ||||||
| Lakewood Ranch Stewardship District, SAB, 6.30%, 05/01/54 |
265 | 277,709 | ||||||
| Orange County Health Facilities Authority, RB, 5.00%, 10/01/53 |
4,000 | 4,269,647 | ||||||
| Preserve at South Branch Community Development District, SAB, 4.00%, 11/01/50 |
500 | 391,703 | ||||||
| Tampa-Hillsborough County Expressway Authority, RB, 5.00%, 07/01/47 |
1,895 | 1,934,286 | ||||||
| Village Community Development District No. 15, SAB, 5.25%, 05/01/54(d) |
280 | 277,497 | ||||||
| Westside Community Development District, Refunding SAB(d) |
||||||||
| 4.10%, 05/01/37 |
260 | 235,853 | ||||||
| 4.13%, 05/01/38 |
260 | 234,452 | ||||||
| 19,401,077 | ||||||||
| S C H E D U L E O F I N V E S T M E N T S |
31 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Georgia — 1.8% | ||||||||
| City of Atlanta Georgia Department of Aviation, ARB, Series B-1, Sustainability Bonds, 5.00%, 07/01/53 |
$ | 915 | $ | 1,003,263 | ||||
| East Point Business & Industrial Development Authority, RB, Series A, 5.25%, 06/15/62(d) |
245 | 222,079 | ||||||
| Main Street Natural Gas, Inc., RB, Series A, 5.00%, 06/01/53(a) |
4,355 | 4,606,632 | ||||||
| 5,831,974 | ||||||||
| Idaho — 0.5% | ||||||||
| Idaho Housing & Finance Association, RB, (GTD), 5.50%, 05/01/57 |
1,510 | 1,593,847 | ||||||
| Illinois — 11.3% | ||||||||
| Chicago Board of Education, GO |
||||||||
| Series A, 5.00%, 12/01/34 |
1,620 | 1,705,462 | ||||||
| Series A, 5.00%, 12/01/40 |
1,540 | 1,581,426 | ||||||
| Series A, 5.00%, 12/01/47 |
450 | 460,079 | ||||||
| Chicago O’Hare International Airport, ARB, Series D, Senior Lien, 5.25%, 01/01/42 |
3,300 | 3,462,377 | ||||||
| City of Chicago Illinois Wastewater Transmission Revenue, RB, Series A, 2nd Lien, (AGM), 5.25%, 01/01/58 |
4,565 | 4,985,843 | ||||||
| Cook County Community College District No. 508, GO |
||||||||
| 5.13%, 12/01/38 |
7,700 | 7,722,598 | ||||||
| 5.50%, 12/01/38 |
1,000 | 1,003,763 | ||||||
| Illinois Finance Authority, RB, Series A, 5.00%, 02/15/50 |
70 | 65,478 | ||||||
| Illinois Finance Authority, Refunding RB |
||||||||
| Series C, 4.13%, 08/15/37 |
3,130 | 2,985,200 | ||||||
| Series C, 5.00%, 08/15/44 |
390 | 391,851 | ||||||
| Illinois Housing Development Authority, Refunding RB, S/F Housing, Series H, Sustainability Bonds, (FHLMC, FNMA, GNMA), 4.65%, 10/01/43 |
1,905 | 1,934,794 | ||||||
| Illinois State Toll Highway Authority, RB, Series A, 5.00%, 01/01/40 |
7,020 | 7,190,693 | ||||||
| Metropolitan Pier & Exposition Authority, RB, 5.00%, 06/15/57 |
670 | 683,473 | ||||||
| State of Illinois, GO |
||||||||
| 5.50%, 05/01/39 |
1,840 | 2,038,392 | ||||||
| Series C, 5.00%, 12/01/45 |
1,280 | 1,380,896 | ||||||
| 37,592,325 | ||||||||
| Kentucky — 0.7% | ||||||||
| Louisville and Jefferson County Metropolitan Sewer District, Refunding RB, Series C, 5.00%, 05/15/49 |
2,000 | 2,189,478 | ||||||
| Louisiana — 1.3% | ||||||||
| Louisiana Public Facilities Authority, RB, 5.25%, 10/01/53 |
2,330 | 2,471,361 | ||||||
| Louisiana Stadium & Exposition District, Refunding RB, Series A, 5.00%, 07/01/48 |
1,575 | 1,688,328 | ||||||
| 4,159,689 | ||||||||
| Massachusetts — 1.3% | ||||||||
| Massachusetts Development Finance Agency, RB |
||||||||
| 5.00%, 10/01/48 |
1,970 | 1,900,167 | ||||||
| Series A, 5.00%, 01/01/47 |
2,370 | 2,384,960 | ||||||
| 4,285,127 | ||||||||
| Security | Par (000) |
Value | ||||||
| Michigan — 0.5% |
||||||||
| Michigan State Building Authority, Refunding RB, Series II, 4.00%, 10/15/47 |
$ | 335 | $ | 331,279 | ||||
| State of Michigan Trunk Line Revenue, RB, 5.50%, 11/15/49 |
1,145 | 1,327,519 | ||||||
| 1,658,798 | ||||||||
| Nebraska — 0.3% | ||||||||
| Omaha Public Power District, RB, Series A, 5.25%, 02/01/48 |
950 | 1,070,186 | ||||||
| Nevada — 0.7% | ||||||||
| City of Las Vegas Nevada Special Improvement District No. 611, SAB, 4.13%, 06/01/50 |
1,125 | 927,147 | ||||||
| Tahoe-Douglas Visitors Authority, RB |
||||||||
| 5.00%, 07/01/40 |
760 | 788,992 | ||||||
| 5.00%, 07/01/45 |
530 | 542,621 | ||||||
| 2,258,760 | ||||||||
| New Hampshire — 0.1% | ||||||||
| New Hampshire Business Finance Authority, Refunding RB, Series A, 3.63%, 07/01/43(a)(d) |
300 | 233,948 | ||||||
| New Jersey — 6.6% | ||||||||
| Camden County Improvement Authority, RB, Sustainability Bonds, 6.00%, 06/15/62 |
500 | 542,881 | ||||||
| New Jersey Economic Development Authority, RB(b) |
||||||||
| Series DDD, 5.00%, 06/15/27 |
375 | 403,775 | ||||||
| Series WW, 5.00%, 06/15/25 |
1,620 | 1,665,683 | ||||||
| Series WW, 5.25%, 06/15/25 |
550 | 567,441 | ||||||
| New Jersey Transportation Trust Fund Authority, RB |
||||||||
| Series BB, 4.00%, 06/15/50 |
3,000 | 2,872,713 | ||||||
| Series D, 5.00%, 06/15/32 |
900 | 915,206 | ||||||
| Series S, 5.25%, 06/15/43 |
2,150 | 2,307,898 | ||||||
| New Jersey Transportation Trust Fund Authority, RB, CAB(e) |
||||||||
| Series A, 0.00%, 12/15/35 |
4,050 | 2,626,403 | ||||||
| Series A, 0.00%, 12/15/38 |
5,845 | 3,224,498 | ||||||
| New Jersey Transportation Trust Fund Authority, Refunding RB |
||||||||
| Series A, 5.00%, 12/15/36 |
340 | 369,150 | ||||||
| Series A, 4.00%, 06/15/40 |
1,690 | 1,728,332 | ||||||
| Tobacco Settlement Financing Corp., Refunding RB |
||||||||
| Series A, 5.00%, 06/01/46 |
820 | 835,343 | ||||||
| Series A, 5.25%, 06/01/46 |
905 | 933,589 | ||||||
| Sub-Series B, 5.00%, 06/01/46 |
2,920 | 2,949,869 | ||||||
| 21,942,781 | ||||||||
| New Mexico — 0.0% | ||||||||
| City of Santa Fe New Mexico, RB, Series A, 5.00%, 05/15/44 |
175 | 148,198 | ||||||
| New York — 10.0% | ||||||||
| City of New York, GO, Series B, 5.25%, 10/01/47 |
100 | 112,338 | ||||||
| Metropolitan Transportation Authority, Refunding RB |
||||||||
| Series C-1, 5.00%, 11/15/56 |
1,690 | 1,720,472 | ||||||
| Series C-1, Sustainability Bonds, 5.25%, 11/15/55 |
1,135 | 1,195,954 | ||||||
| New York City Municipal Water Finance Authority, RB, Series AA-1, 5.25%, 06/15/52 |
10,000 | 11,215,060 | ||||||
| New York City Municipal Water Finance Authority, Refunding RB, Series DD, 4.13%, 06/15/46 |
5,670 | 5,821,147 | ||||||
| New York City Transitional Finance Authority Future Tax Secured Revenue, RB, Series A-1, Subordinate, 4.00%, 08/01/48 |
1,320 | 1,315,293 | ||||||
| 32 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| New York (continued) | ||||||||
| New York City Transitional Finance Authority, RB, 5.00%, 05/01/46 |
$ | 1,520 | $ | 1,702,451 | ||||
| New York Counties Tobacco Trust VI, Refunding RB, Series B, 5.00%, 06/01/41 |
550 | 554,536 | ||||||
| New York Liberty Development Corp., Refunding RB, Class 1, 5.00%, 11/15/44(d) |
1,040 | 1,038,700 | ||||||
| Triborough Bridge & Tunnel Authority Sales Tax Revenue, RB |
||||||||
| Series A, 5.25%, 05/15/52 |
1,000 | 1,113,346 | ||||||
| Series A, 4.13%, 05/15/53 |
1,000 | 1,005,455 | ||||||
| Triborough Bridge & Tunnel Authority, Refunding RB |
||||||||
| Series A-1, 5.00%, 05/15/51 |
230 | 247,230 | ||||||
| Series C, 5.25%, 05/15/52 |
4,340 | 4,791,695 | ||||||
| Sustainability Bonds, 5.25%, 11/15/40 |
1,025 | 1,202,781 | ||||||
| 33,036,458 | ||||||||
| Ohio — 2.2% | ||||||||
| Buckeye Tobacco Settlement Financing Authority, Refunding RB, Series B-2, Class 2, 5.00%, 06/01/55 |
4,970 | 4,681,541 | ||||||
| County of Hamilton Ohio, RB, Series A, 5.00%, 08/15/42 |
2,650 | 2,726,095 | ||||||
| 7,407,636 | ||||||||
| Oklahoma — 0.7% | ||||||||
| Oklahoma Turnpike Authority, RB, 5.50%, 01/01/53 |
1,960 | 2,188,450 | ||||||
| Oregon — 0.2% | ||||||||
| Clackamas County School District No. 12 North Clackamas, GO, CAB, Series A, (GTD), 0.00%, 06/15/38(e) |
1,115 | 581,731 | ||||||
| Pennsylvania — 3.8% | ||||||||
| Bucks County Industrial Development Authority, RB, 4.00%, 07/01/46 |
205 | 160,150 | ||||||
| Montgomery County Higher Education and Health Authority, Refunding RB, Series A, 4.00%, 09/01/49 |
1,145 | 1,052,437 | ||||||
| Pennsylvania Higher Educational Facilities Authority, RB, 4.00%, 08/15/49 |
5,000 | 4,840,899 | ||||||
| Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing |
||||||||
| Series 142-A, Sustainability Bonds, 5.00%, 10/01/43 |
1,895 | 1,979,260 | ||||||
| Series 2022, Sustainability Bonds, 4.25%, 10/01/47 |
2,415 | 2,259,407 | ||||||
| Pennsylvania Turnpike Commission, RB |
||||||||
| Series A, 5.00%, 12/01/38 |
695 | 706,373 | ||||||
| Series A, Subordinate, 4.00%, 12/01/46 |
1,605 | 1,555,142 | ||||||
| 12,553,668 | ||||||||
| Puerto Rico — 5.1% | ||||||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB |
||||||||
| Series A-1, Restructured, 4.75%, 07/01/53 |
6,639 | 6,504,692 | ||||||
| Series A-1, Restructured, 5.00%, 07/01/58 |
5,568 | 5,567,928 | ||||||
| Series A-2, Restructured, 4.78%, 07/01/58 |
349 | 341,147 | ||||||
| Series A-2, Restructured, 4.33%, 07/01/40 |
1,688 | 1,675,762 | ||||||
| Series B-1, Restructured, 4.75%, 07/01/53 |
391 | 381,200 | ||||||
| Series B-2, Restructured, 4.78%, 07/01/58 |
520 | 504,785 | ||||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(e) |
6,226 | 1,913,939 | ||||||
| 16,889,453 | ||||||||
| South Carolina — 3.2% | ||||||||
| Patriots Energy Group Financing Agency, RB, Series A1, 5.25%, 10/01/54(a) |
5,685 | 6,089,232 | ||||||
| Security | Par (000) |
Value | ||||||
| South Carolina (continued) | ||||||||
| South Carolina Jobs-Economic Development Authority, RB(d) |
||||||||
| 5.00%, 01/01/55 |
$ | 1,095 | $ | 957,133 | ||||
| 7.50%, 08/15/62 |
505 | 460,503 | ||||||
| South Carolina Jobs-Economic Development Authority, Refunding RB, 4.00%, 12/01/44 |
1,645 | 1,570,996 | ||||||
| South Carolina Public Service Authority, RB, Series E, 5.50%, 12/01/53 |
1,610 | 1,610,971 | ||||||
| 10,688,835 | ||||||||
| South Dakota — 0.5% | ||||||||
| City of Rapid City South Dakota Sales Tax Revenue, RB, 4.00%, 12/01/26(b) |
1,760 | 1,823,765 | ||||||
| Tennessee — 3.9% | ||||||||
| Knox County Health Educational & Housing Facility Board, RB, Series A-1, (BAM), 5.50%, 07/01/54 |
490 | 534,320 | ||||||
| Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, RB, Series A, 5.00%, 07/01/40 |
35 | 35,439 | ||||||
| Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board, Refunding RB, 5.25%, 10/01/58 |
2,465 | 2,521,547 | ||||||
| Tennergy Corp., RB, Series A, 5.50%, 10/01/53(a) |
1,575 | 1,688,568 | ||||||
| Tennessee Energy Acquisition Corp., RB, Series A, 5.00%, 05/01/52(a) |
2,560 | 2,720,179 | ||||||
| Tennessee Energy Acquisition Corp., Refunding RB, Series A-1, 5.00%, 05/01/53(a) |
3,000 | 3,112,756 | ||||||
| Tennessee Housing Development Agency, RB, S/F Housing, Series 2, Sustainability Bonds, 4.35%, 01/01/48 |
2,500 | 2,369,692 | ||||||
| 12,982,501 | ||||||||
| Texas — 20.2% | ||||||||
| Arlington Higher Education Finance Corp., RB(d) |
||||||||
| 7.50%, 04/01/62 |
530 | 515,753 | ||||||
| 7.88%, 11/01/62 |
450 | 456,683 | ||||||
| City of Austin Texas Airport System Revenue, ARB, Series A, 5.00%, 11/15/41 |
1,990 | 2,068,513 | ||||||
| City of Dallas Texas Waterworks & Sewer System Revenue, Refunding RB, Series A, 5.00%, 10/01/41 |
760 | 791,168 | ||||||
| City of Houston Texas, Refunding GO, Series A, 5.25%, 03/01/43 |
810 | 922,445 | ||||||
| Coppell Independent School District, Refunding GO, (PSF), 0.00%, 08/15/30(e) |
10,030 | 8,315,527 | ||||||
| County of Harris Texas, Refunding GO |
||||||||
| (NPFGC), 0.00%, 08/15/25(e) |
7,485 | 7,159,861 | ||||||
| (NPFGC), 0.00%, 08/15/28(e) |
10,915 | 9,629,939 | ||||||
| Series A, 4.25%, 09/15/48 |
340 | 344,957 | ||||||
| Crowley Independent School District, GO |
||||||||
| (PSF), 5.00%, 02/01/48 |
315 | 346,075 | ||||||
| (PSF), 4.25%, 02/01/53 |
310 | 315,049 | ||||||
| Cypress-Fairbanks Independent School District, GO, (PSF), 4.00%, 02/15/48 |
755 | 750,411 | ||||||
| Denton Independent School District, GO, (PSF), 5.00%, 08/15/48 |
570 | 627,362 | ||||||
| Grand Parkway Transportation Corp., RB, CAB, Series B, Convertible, 5.80%, 10/01/46(c) |
2,365 | 2,583,765 | ||||||
| Harris County-Houston Sports Authority, Refunding RB(e) |
||||||||
| Series A, 3rd Lien, (NPFGC), 0.00%, 11/15/24(b) |
5,965 | 2,551,879 | ||||||
| Series A, 3rd Lien, (NPFGC), 0.00%, 11/15/38 |
10,925 | 4,591,069 | ||||||
| Series H, Junior Lien, (NPFGC), 0.00%, 11/15/38 |
5,785 | 2,640,379 | ||||||
| Series H, Junior Lien, (NPFGC), 0.00%, 11/15/39 |
6,160 | 2,623,397 | ||||||
| S C H E D U L E O F I N V E S T M E N T S |
33 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Texas (continued) | ||||||||
| Hutto Independent School District, GO, (PSF), 5.00%, 08/01/48 |
$ | 40 | $ | 44,077 | ||||
| Leander Independent School District, Refunding GO, Series A, (PSF), 5.00%, 08/15/49 |
2,010 | 2,071,189 | ||||||
| Marshall Independent School District, GO, (PSF), 4.00%, 02/15/45 |
380 | 384,821 | ||||||
| Midland County Fresh Water Supply District No. 1, RB, CAB, Series A, 0.00%, 09/15/27(b)(e) |
2,340 | 1,355,714 | ||||||
| New Hope Cultural Education Facilities Finance Corp., RB(d) |
||||||||
| Series A, 5.00%, 08/15/50 |
580 | 521,441 | ||||||
| Series A, 5.00%, 08/15/51 |
1,535 | 1,408,287 | ||||||
| New Hope Cultural Education Facilities Finance Corp., Refunding RB, Series A, 4.00%, 08/15/40 |
4,000 | 3,986,483 | ||||||
| North Texas Tollway Authority, RB(b) |
||||||||
| Series B, 0.00%, 09/01/31(e) |
1,975 | 1,005,665 | ||||||
| Series C, Convertible, 6.75%, 09/01/31(c) |
2,500 | 3,214,143 | ||||||
| North Texas Tollway Authority, Refunding RB, Series B, 5.00%, 01/01/43 |
3,795 | 3,934,448 | ||||||
| Northwest Independent School District, GO, (PSF), 5.00%, 02/15/48 |
730 | 797,054 | ||||||
| Princeton Independent School District, GO, (PSF), 5.25%, 02/15/48 |
535 | 599,554 | ||||||
| Texas City Industrial Development Corp., RB, Series 2012, 4.13%, 12/01/45 |
330 | 291,373 | ||||||
| 66,848,481 | ||||||||
| Utah(d) — 0.2% | ||||||||
| Utah Charter School Finance Authority, RB, Series A, 5.00%, 06/15/49 |
235 | 211,489 | ||||||
| Utah Charter School Finance Authority, Refunding RB, 5.00%, 06/15/55 |
450 | 411,855 | ||||||
| 623,344 | ||||||||
| Virginia — 4.0% | ||||||||
| Hampton Roads Transportation Accountability Commission, RB, Series A, 4.00%, 07/01/57 |
4,000 | 3,860,650 | ||||||
| Henrico County Economic Development Authority, RB |
||||||||
| 5.00%, 10/01/52 |
1,170 | 1,182,437 | ||||||
| Class A, 5.00%, 10/01/47 |
4,580 | 4,669,634 | ||||||
| Tobacco Settlement Financing Corp., Refunding RB, Series B-1, 5.00%, 06/01/47 |
1,225 | 1,154,541 | ||||||
| Virginia Beach Development Authority, Refunding RB |
||||||||
| 5.00%, 09/01/40 |
1,230 | 1,128,100 | ||||||
| 4.00%, 09/01/48 |
885 | 648,286 | ||||||
| Virginia Housing Development Authority, RB, M/F Housing, Series G, 5.15%, 11/01/52 |
505 | 522,660 | ||||||
| 13,166,308 | ||||||||
| Washington — 0.4% | ||||||||
| Washington State Housing Finance Commission, Refunding RB, 5.00%, 01/01/38(d) |
1,400 | 1,228,300 | ||||||
| West Virginia — 0.9% | ||||||||
| West Virginia Hospital Finance Authority, RB, Series A, 4.00%, 06/01/51 |
3,050 | 2,839,112 | ||||||
| Wisconsin — 1.1% | ||||||||
| Public Finance Authority, RB |
||||||||
| Class A, 5.00%, 06/15/51(d) |
305 | 239,706 | ||||||
| Class A, 6.00%, 06/15/52 |
175 | 157,904 | ||||||
| Class A, 5.00%, 06/15/56(d) |
400 | 309,243 | ||||||
| Class A, 6.13%, 06/15/57 |
200 | 181,637 | ||||||
| Security | Par (000) |
Value | ||||||
| Wisconsin (continued) | ||||||||
| Public Finance Authority, RB (continued) |
||||||||
| Series A, 5.00%, 10/15/40(d) |
$ | 1,260 | $ | 1,148,725 | ||||
| Series A, 5.00%, 07/01/55(d) |
395 | 328,143 | ||||||
| Series A-1, 4.50%, 01/01/35(d) |
665 | 595,898 | ||||||
| Public Finance Authority, Refunding RB, 5.00%, 09/01/39(d) |
375 | 331,984 | ||||||
| Wisconsin Housing & Economic Development Authority Home Ownership Revenue, RB, S/F Housing, Series A, Sustainability Bonds, (FHLMC, FNMA, GNMA), 4.85%, 09/01/43 |
430 | 452,652 | ||||||
| 3,745,892 | ||||||||
| Total Municipal Bonds — 112.4% |
371,888,724 | |||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts(f) |
| |||||||
| Alabama — 5.0% | ||||||||
| Black Belt Energy Gas District, RB |
||||||||
| Series C, 5.50%, 10/01/54 |
10,000 | 11,080,811 | ||||||
| Series C-1, 5.25%, 02/01/53(a) |
5,020 | 5,346,198 | ||||||
| 16,427,009 | ||||||||
| District of Columbia — 1.9% | ||||||||
| District of Columbia Water & Sewer Authority, Refunding RB, Series B, 5.00%, 10/01/49 |
6,035 | 6,339,636 | ||||||
| Florida — 3.6% | ||||||||
| City of Fort Lauderdale Florida Water & Sewer Revenue, RB, 5.50%, 09/01/53 |
7,045 | 8,076,546 | ||||||
| JEA Water & Sewer System Revenue, Refunding RB, Series A, 5.50%, 10/01/54(g) |
3,497 | 3,984,160 | ||||||
| 12,060,706 | ||||||||
| Indiana — 3.0% | ||||||||
| Indiana Finance Authority, RB, Series A, 4.00%, 11/01/51 |
10,685 | 9,934,564 | ||||||
| Massachusetts — 3.3% | ||||||||
| Commonwealth of Massachusetts, GO, Series D, 5.00%, 10/01/51 |
10,000 | 10,936,224 | ||||||
| Nevada — 3.1% | ||||||||
| Las Vegas Valley Water District, GO, Series A, 5.00%, 06/01/49 |
9,500 | 10,340,248 | ||||||
| New York — 8.6% | ||||||||
| New York City Municipal Water Finance Authority, Refunding RB, Series DD, 5.00%, 06/15/47 |
9,705 | 10,782,463 | ||||||
| New York State Dormitory Authority, Refunding RB, Series C, 4.00%, 07/01/49 |
8,955 | 8,795,033 | ||||||
| New York State Urban Development Corp., RB, Series A, 5.00%, 03/15/50 |
8,000 | 8,848,116 | ||||||
| 28,425,612 | ||||||||
| South Carolina — 3.3% | ||||||||
| Patriots Energy Group Financing Agency, Refunding RB, Series B-1, 5.25%, 02/01/54 |
10,000 | 10,789,600 | ||||||
| 34 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal Income Quality Trust (BYM) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
|
|
||||||||
| Washington — 3.3% | ||||||||
| State of Washington, GO, Series 2024-A, 5.00%, 08/01/48 |
$ | 10,000 | $ | 11,048,275 | ||||
|
|
|
|||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 35.1% |
116,301,874 | |||||||
|
|
|
|||||||
| Total Long-Term Investments — 147.5% |
488,190,598 | |||||||
|
|
|
|||||||
| Shares | ||||||||
|
|
||||||||
| Short-Term Securities |
||||||||
| Money Market Funds — 0.7% | ||||||||
| BlackRock Liquidity Funds, MuniCash, Institutional Class, 4.09%(h)(i) |
2,453,803 | 2,454,049 | ||||||
|
|
|
|||||||
| Total Short-Term Securities — 0.7% |
2,454,049 | |||||||
|
|
|
|||||||
| Total Investments — 148.2% |
490,644,647 | |||||||
| Other Assets Less Liabilities — 0.2% |
419,129 | |||||||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (18.9)% |
|
(62,408,241 | ) | |||||
| VMTP Shares at Liquidation Value, Net of Deferred Offering Costs — (29.5)% |
|
(97,600,000 | ) | |||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% |
|
$ | 331,055,535 | |||||
|
|
|
|||||||
| (a) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
| (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) | Step coupon security. Coupon rate will either increase (step-up bond) or decrease (step-down bond) at regular intervals until maturity. Interest rate shown reflects the rate currently in effect. |
| (d) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (e) | Zero-coupon bond. |
| (f) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (g) | When-issued security. |
| (h) | Affiliate of the Trust. |
| (i) | Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Trust during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliated Issuer | Value at 07/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 01/31/24 |
Shares Held at 01/31/24 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
| BlackRock Liquidity Funds, MuniCash, Institutional Class |
$ | 7,645,975 | $ | — | $ | (5,193,318 | )(a) | $ | 1,232 | $ | 160 | $ | 2,454,049 | 2,453,803 | $ | 220,301 | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| (a) | Represents net amount purchased (sold). |
Derivative Financial Instruments Categorized by Risk Exposure
For the period ended January 31, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:
| Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
| Net Realized Gain (Loss) from: |
||||||||||||||||||||||||||||
| Futures contracts |
$ | — | $ | — | $ | — | $ | — | $ | 61,633 | $ | — | $ | 61,633 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: |
||||||||||||||||||||||||||||
| Futures contracts |
$ | — | $ | — | $ | — | $ | — | $ | 46,721 | $ | — | $ | 46,721 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| Futures contracts: |
||||
| Average notional value of contracts — short |
$ | 13,187,703 | ||
| S C H E D U L E O F I N V E S T M E N T S |
35 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock Municipal Income Quality Trust (BYM) |
For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Trust’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Trust’s financial instruments categorized in the fair value hierarchy. The breakdown of the Trust’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets |
||||||||||||||||
| Investments |
||||||||||||||||
| Long-Term Investments |
||||||||||||||||
| Municipal Bonds |
$ | — | $ | 371,888,724 | $ | — | $ | 371,888,724 | ||||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts |
— | 116,301,874 | — | 116,301,874 | ||||||||||||
| Short-Term Securities |
||||||||||||||||
| Money Market Funds |
2,454,049 | — | — | 2,454,049 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 2,454,049 | $ | 488,190,598 | $ | — | $ | 490,644,647 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Liabilities |
||||||||||||||||
| TOB Trust Certificates |
$ | — | $ | (61,981,882 | ) | $ | — | $ | (61,981,882 | ) | ||||||
| VMTP Shares at Liquidation Value |
— | (97,600,000 | ) | — | (97,600,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | — | $ | (159,581,882 | ) | $ | — | $ | (159,581,882 | ) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
See notes to financial statements.
| 36 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) January 31, 2024 |
BlackRock MuniHoldings California Quality Fund, Inc. (MUC) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Municipal Bonds |
||||||||
| California — 121.6% | ||||||||
| Corporate — 15.7% | ||||||||
| California Community Choice Financing Authority, RB(a) |
||||||||
| Series G, 5.25%, 11/01/54 |
$ | 50,000 | $ | 53,638,500 | ||||
| Sustainability Bonds, 5.00%, 07/01/53 |
45,200 | 47,521,924 | ||||||
| Sustainability Bonds, 5.00%, 12/01/53 |
6,670 | 7,018,441 | ||||||
| Sustainability Bonds, 5.25%, 01/01/54 |
11,500 | 12,154,556 | ||||||
| Sustainability Bonds, 5.50%, 10/01/54 |
40,000 | 44,019,199 | ||||||
| Series E-1, Sustainability Bonds, 5.00%, 02/01/54 |
15,480 | 16,613,161 | ||||||
| California Municipal Finance Authority, RB, Series A, AMT, 4.38%, 09/01/53(a) |
2,935 | 3,032,964 | ||||||
| California Pollution Control Financing Authority, RB, AMT, 4.75%, 11/01/46 |
4,000 | 4,047,829 | ||||||
| 188,046,574 | ||||||||
| County/City/Special District/School District — 33.8% | ||||||||
| Anaheim City School District, GO, (AGM), 5.00%, 08/01/51 |
5,615 | 6,170,173 | ||||||
| California Statewide Communities Development Authority, SAB |
||||||||
| Series B, 5.00%, 09/02/52 |
1,785 | 1,691,874 | ||||||
| Series C, 4.00%, 09/02/50 |
4,985 | 4,139,935 | ||||||
| Chabot-Las Positas Community College District, GO, Series C, Election 2016, 5.25%, 08/01/48 |
13,355 | 15,197,774 | ||||||
| Chaffey Joint Union High School District, GO, Series G, Election 2012, 4.00%, 08/01/52 |
15,390 | 15,524,498 | ||||||
| Chaffey Joint Union High School District, GO, CAB(b) |
||||||||
| Series C, Election 2012, 0.00%, 08/01/37 |
1,300 | 727,651 | ||||||
| Series C, Election 2012, 0.00%, 08/01/38 |
1,255 | 659,891 | ||||||
| Series C, Election 2012, 0.00%, 08/01/39 |
1,500 | 743,624 | ||||||
| Series C, Election 2012, 0.00%, 08/01/40 |
3,705 | 1,739,417 | ||||||
| Series C, Election 2012, 0.00%, 08/01/41 |
610 | 270,685 | ||||||
| Series C, Election 2012, 0.00%, 02/01/42 |
700 | 301,432 | ||||||
| City of Los Angeles California, COP, (AMBAC), 6.20%, 11/01/31 |
1,500 | 1,504,011 | ||||||
| City of Oakland California, GO, Series D, 5.25%, 07/15/48 |
4,715 | 5,397,135 | ||||||
| Clovis Unified School District, GO, Series B, Election 2020, 5.00%, 08/01/47 |
8,050 | 8,751,237 | ||||||
| Coachella Valley Unified School District, GO, Series F, Election 2005, (BAM), 5.00%, 08/01/46 |
2,990 | 3,099,999 | ||||||
| Dublin Unified School District, GO, Series B, Election 2020, 4.25%, 08/01/53 |
5,805 | 6,046,772 | ||||||
| El Dorado Irrigation District, Refunding RB, Series A, (AGM), 5.25%, 03/01/24(c) |
15,000 | 15,025,412 | ||||||
| El Rancho Unified School District, GO, Series D, Election 2016, (BAM), 5.75%, 08/01/48 |
750 | 887,997 | ||||||
| Folsom Cordova Unified School District, GO, Series D, (AGM), 4.00%, 10/01/44 |
10,300 | 10,314,417 | ||||||
| Fremont Union High School District, GO, Election 2022, 4.00%, 08/01/48 |
5,000 | 5,140,079 | ||||||
| Hayward Unified School District, Refunding GO, (BAM), 4.00%, 08/01/43 |
6,500 | 6,514,067 | ||||||
| Indio Finance Authority, Refunding RB |
||||||||
| Series A, (BAM), 5.25%, 11/01/47 |
2,225 | 2,483,043 | ||||||
| Series A, (BAM), 5.25%, 11/01/52 |
7,000 | 7,693,217 | ||||||
| La Canada Unified School District, GO, Series A, Election 2017, 5.00%, 08/01/47 |
6,945 | 7,410,464 | ||||||
| La Mesa-Spring Valley School District, GO, Series B, 4.00%, 08/01/51 |
625 | 631,618 | ||||||
| Security | Par (000) |
Value | ||||||
| County/City/Special District/School District (continued) | ||||||||
| Livermore Valley Joint Unified School District, GO, 4.00%, 08/01/46 |
$ | 15,000 | $ | 15,100,286 | ||||
| Los Angeles County Facilities, Inc., RB, Series A, 4.00%, 12/01/48 |
7,500 | 7,528,360 | ||||||
| Los Angeles County Public Works Financing Authority, Refunding RB, Series F, Sustainability Bonds, 4.00%, 12/01/46 |
7,890 | 8,082,029 | ||||||
| Los Angeles Unified School District, GO, Series RYQ, 4.00%, 07/01/44 |
10,475 | 10,617,015 | ||||||
| Menifee Union School District, GO, Series B, (BAM), 4.00%, 08/01/43 |
5,370 | 5,426,671 | ||||||
| Mount San Antonio Community College District, Refunding GO, Series 2018-A, Election 2018, 4.00%, 08/01/49 |
10,000 | 10,104,036 | ||||||
| Newport Mesa Unified School District, Refunding GO, CAB, 0.00%, 08/01/45(b) |
8,485 | 3,523,629 | ||||||
| Oak Grove School District, GO, Series A-1, 5.00%, 08/01/52 |
5,835 | 6,499,270 | ||||||
| Oakland Unified School District/Alameda County, GO, Series A, (BAM), 4.00%, 08/01/46 |
14,530 | 14,581,176 | ||||||
| Oxnard School District, GO, Series A, Election 2016, (BAM), 5.00%, 08/01/45 |
2,500 | 2,625,911 | ||||||
| Oxnard Union High School District, GO |
||||||||
| Series B, 5.00%, 08/01/45 |
6,560 | 7,025,895 | ||||||
| Series C, Election 2018, 4.00%, 08/01/47 |
16,750 | 16,924,762 | ||||||
| Peralta Community College District, GO, Series B, 5.50%, 08/01/52 |
2,500 | 2,876,273 | ||||||
| Ravenswood City School District, GO, Election 2022, (BAM), 5.25%, 08/01/53 |
7,570 | 8,452,364 | ||||||
| Redwood City School District, GO |
||||||||
| Series C, 4.00%, 08/01/44 |
2,800 | 2,844,996 | ||||||
| Series A, Election 2022, 5.00%, 08/01/52 |
6,000 | 6,656,259 | ||||||
| San Diego Unified School District, GO |
||||||||
| Series I, Election 2012, 4.00%, 07/01/47 |
14,155 | 14,039,477 | ||||||
| Series F-2, Sustainability Bonds, 4.25%, 07/01/52 |
6,270 | 6,413,568 | ||||||
| San Francisco Bay Area Rapid Transit District, GO Class D1, Election 2016, Sustainability Bonds, 4.25%, 08/01/52 |
13,500 | 13,885,285 | ||||||
| Series A, Election 2016, Sustainability Bonds, 4.00%, 08/01/42 |
6,000 | 6,136,991 | ||||||
| Series D-1, Election 2016, Sustainability Bonds, 4.00%, 08/01/47 |
9,175 | 9,359,187 | ||||||
| San Leandro Unified School District, GO, Series B, 5.25%, 08/01/48 |
3,000 | 3,381,232 | ||||||
| San Mateo Joint Powers Financing Authority, RB, Series A, 4.00%, 07/15/52 |
14,270 | 14,337,156 | ||||||
| Santa Clara County Financing Authority, RB, Series A, 4.00%, 04/01/43 |
6,355 | 6,470,305 | ||||||
| Santa Clarita Community College District, GO, Election 2016, 5.25%, 08/01/45 |
4,000 | 4,522,942 | ||||||
| Santa Monica Community College District, GO, Series B, 4.00%, 08/01/45 |
17,500 | 18,025,211 | ||||||
| Santa Monica-Malibu Unified School District, GO, 4.00%, 08/01/44 |
9,360 | 9,481,717 | ||||||
| Santa Rosa High School District, GO |
||||||||
| Series A, Election 2022, 4.00%, 08/01/46 |
3,500 | 3,541,614 | ||||||
| Series A, Election 2022, 4.00%, 08/01/49 |
7,050 | 7,076,123 | ||||||
| Simi Valley Unified School District, GO, Series C, 4.00%, 08/01/50 |
3,115 | 3,121,217 | ||||||
| Solano County Community College District, GO, Series C, Election 2012, 4.00%, 08/01/46 |
11,435 | 11,554,699 | ||||||
| South Orange County Public Financing Authority, RB, 5.00%, 06/01/52 |
5,000 | 5,493,924 | ||||||
| S C H E D U L E O F I N V E S T M E N T S |
37 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock MuniHoldings California Quality Fund, Inc. (MUC) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| County/City/Special District/School District (continued) | ||||||||
| Val Verde Unified School District, GO, Series C, Election 2020, (AGM), 4.00%, 08/01/49 |
$ | 5,000 | $ | 4,956,192 | ||||
| Ventura Unified School District, GO, Series A, Election 2022, 4.00%, 08/01/52 |
3,960 | 3,982,632 | ||||||
| Washington Township Health Care District, GO, Series B, Election 2004, 5.50%, 08/01/38 |
3,250 | 3,285,061 | ||||||
| 405,999,887 | ||||||||
| Education — 11.6% | ||||||||
| California Educational Facilities Authority, RB |
||||||||
| Series A, 5.00%, 10/01/53 |
10,000 | 10,328,591 | ||||||
| Series U-7, 5.00%, 06/01/46 |
7,525 | 9,336,300 | ||||||
| California Enterprise Development Authority, RB(d) |
||||||||
| 8.00%, 11/15/62 |
1,760 | 1,738,253 | ||||||
| Series A, 5.00%, 07/01/50 |
600 | 545,568 | ||||||
| California Municipal Finance Authority, RB |
||||||||
| 5.50%, 08/01/34(d) |
425 | 426,055 | ||||||
| 4.00%, 10/01/51 |
1,150 | 965,842 | ||||||
| California Municipal Finance Authority, Refunding RB(d) |
||||||||
| 5.00%, 08/01/39 |
290 | 271,605 | ||||||
| 5.00%, 08/01/48 |
350 | 303,503 | ||||||
| California School Finance Authority, RB |
||||||||
| 5.00%, 08/01/52(d) |
1,875 | 1,877,187 | ||||||
| 5.00%, 08/01/61(d) |
5,315 | 5,282,940 | ||||||
| Series A, 6.00%, 07/01/33 |
1,500 | 1,501,564 | ||||||
| Series A, 6.30%, 07/01/43 |
3,000 | 3,004,331 | ||||||
| Series A, 4.00%, 06/01/51(d) |
800 | 604,818 | ||||||
| Series A, 5.00%, 07/01/54(d) |
1,150 | 1,139,936 | ||||||
| Series A, 5.00%, 06/01/58(d) |
6,615 | 6,007,907 | ||||||
| Series A, 5.00%, 07/01/59(d) |
2,565 | 2,513,812 | ||||||
| Series A, 4.00%, 06/01/61(d) |
1,300 | 932,645 | ||||||
| Series A, (NGFGC), 5.00%, 06/01/61(d) |
820 | 722,717 | ||||||
| Series B, 4.00%, 07/01/45(d) |
1,035 | 893,131 | ||||||
| California School Finance Authority, Refunding RB(d) |
||||||||
| 5.88%, 06/01/53 |
700 | 702,924 | ||||||
| Series A, 5.00%, 07/01/36 |
755 | 766,338 | ||||||
| Sustainability Bonds, 5.50%, 08/01/43 |
420 | 430,719 | ||||||
| Sustainability Bonds, 5.50%, 08/01/47 |
400 | 404,678 | ||||||
| California State University, Refunding RB |
||||||||
| Series A, 5.00%, 11/01/42 |
20,000 | 21,191,443 | ||||||
| Series A, 5.00%, 11/01/48 |
12,395 | 13,248,697 | ||||||
| California Statewide Communities Development Authority, Refunding RB, 5.00%, 05/15/40 |
1,500 | 1,523,034 | ||||||
| Hastings Campus Housing Finance Authority, RB(d) |
||||||||
| Series A, Sustainability Bonds, 5.00%, 07/01/45 |
1,115 | 992,602 | ||||||
| Series A, Sustainability Bonds, 5.00%, 07/01/61 |
9,360 | 7,807,044 | ||||||
| University of California, Refunding RB |
||||||||
| Series BE, 4.00%, 05/15/47 |
14,000 | 14,250,034 | ||||||
| Series BE, 4.00%, 05/15/50 |
3,750 | 3,801,859 | ||||||
| Series BH, 4.00%, 05/15/51 |
15,000 | 15,197,910 | ||||||
| Series Q, 3.00%, 05/15/51 |
6,000 | 4,761,110 | ||||||
| Series Q, 4.00%, 05/15/51 |
6,000 | 5,960,758 | ||||||
| 139,435,855 | ||||||||
| Health — 8.9% | ||||||||
| California Health Facilities Financing Authority, RB |
||||||||
| 5.00%, 02/01/37 |
2,625 | 2,767,623 | ||||||
| Series A, 5.00%, 11/15/48 |
3,000 | 3,116,468 | ||||||
| California Health Facilities Financing Authority, Refunding RB |
||||||||
| (BAM-TCRS), 4.00%, 08/15/48 |
5,005 | 4,993,515 | ||||||
| (AGM-CR), 3.00%, 08/15/51 |
13,975 | 11,247,503 | ||||||
| Security | Par (000) |
Value | ||||||
| Health (continued) | ||||||||
| California Health Facilities Financing Authority, Refunding RB (continued) |
||||||||
| Series A, 5.00%, 11/15/38 |
$ | 1,500 | $ | 1,581,752 | ||||
| Series A, 4.00%, 03/01/43 |
545 | 515,308 | ||||||
| Series A, 4.00%, 04/01/45 |
3,570 | 3,524,668 | ||||||
| Series A, 5.00%, 11/15/48 |
17,280 | 17,950,854 | ||||||
| Series A-2, 4.00%, 11/01/44 |
31,000 | 30,579,019 | ||||||
| California Municipal Finance Authority, Refunding RB |
||||||||
| Series A, 5.00%, 02/01/47 |
9,250 | 9,409,385 | ||||||
| Series A, Sustainability Bonds, 5.00%, 11/01/39(d) |
600 | 579,348 | ||||||
| California Statewide Communities Development Authority, RB, Sustainability Bonds, 4.00%, 08/01/45 |
5,000 | 4,376,273 | ||||||
| California Statewide Communities Development Authority, Refunding RB |
||||||||
| 5.00%, 03/01/48 |
5,000 | 5,109,458 | ||||||
| Series A, 4.00%, 12/01/57 |
6,500 | 6,248,616 | ||||||
| Marin Healthcare California Distict, GO, Election 2013, 4.00%, 08/01/45 |
5,000 | 4,959,336 | ||||||
| 106,959,126 | ||||||||
| Housing — 5.2% | ||||||||
| California Community Housing Agency, RB, M/F Housing(d) |
||||||||
| Series A, 5.00%, 04/01/49 |
8,270 | 6,686,479 | ||||||
| Series A-2, 4.00%, 02/01/50 |
1,155 | 822,852 | ||||||
| Series A-2, 4.00%, 08/01/51 |
6,380 | 3,947,774 | ||||||
| California Housing Finance Agency, RB, M/F Housing |
||||||||
| Series 2021-1, Class A, 3.50%, 11/20/35 |
14,363 | 13,437,157 | ||||||
| Series 2021-2, Class A, (FHLMC), 3.75%, 03/25/35 |
17,951 | 17,636,053 | ||||||
| CMFA Special Finance Agency VIII, RB, M/F Housing, Series A-1, 3.00%, 08/01/56(d) |
3,235 | 2,077,390 | ||||||
| CMFA Special Finance Agency, RB, M/F Housing(d) |
||||||||
| Series A-1, 3.00%, 12/01/56 |
2,315 | 1,533,426 | ||||||
| Series A-2, 4.00%, 08/01/45 |
240 | 195,353 | ||||||
| CSCDA Community Improvement Authority, RB, M/F Housing(d) |
||||||||
| 4.00%, 10/01/46 |
695 | 510,664 | ||||||
| 4.00%, 10/01/56 |
1,000 | 817,145 | ||||||
| 4.00%, 05/01/57 |
5,660 | 3,825,304 | ||||||
| Series A, 3.00%, 09/01/56 |
1,475 | 942,702 | ||||||
| Senior Lien, Sustainability Bonds, 3.13%, 06/01/57 |
2,705 | 1,743,459 | ||||||
| Series A, Senior Lien, Sustainability Bonds, 4.00%, 12/01/58 |
1,525 | 1,138,972 | ||||||
| Series B, Sub Lien, Sustainability Bonds, 4.00%, 12/01/59 |
575 | 374,059 | ||||||
| Sustainability Bonds, 4.00%, 12/01/56 |
765 | 532,953 | ||||||
| Series A, Sustainability Bonds, 4.00%, 06/01/58 |
2,885 | 2,087,768 | ||||||
| Series A-2, Sustainability Bonds, 3.00%, 02/01/57 |
1,625 | 1,051,047 | ||||||
| Santa Clara County Housing Authority, RB, M/F Housing, Series A, AMT, 6.00%, 08/01/41 |
3,500 | 3,505,737 | ||||||
| 62,866,294 | ||||||||
| State — 6.5% | ||||||||
| California State Public Works Board, RB |
||||||||
| Series B, 4.00%, 05/01/46 |
13,180 | 13,272,978 | ||||||
| Series D, 5.00%, 11/01/47 |
18,275 | 20,820,576 | ||||||
| Series D, Sustainability Bonds, 4.00%, 05/01/44 |
4,675 | 4,848,410 | ||||||
| California Statewide Communities Development Authority, SAB, S/F Housing, 5.00%, 09/02/39 |
1,060 | 1,071,869 | ||||||
| Irvine Facilities Financing Authority, ST, 5.00%, 09/01/43 |
1,275 | 1,442,725 | ||||||
| 38 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock MuniHoldings California Quality Fund, Inc. (MUC) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| State (continued) | ||||||||
| State of California, GO, 4.00%, 03/01/46 |
$ | 4,000 | $ | 4,067,957 | ||||
| State of California, Refunding GO |
||||||||
| 4.00%, 10/01/39 |
10,000 | 10,419,615 | ||||||
| 5.00%, 10/01/45 |
5,000 | 5,657,886 | ||||||
| 5.00%, 10/01/47 |
10,740 | 11,081,806 | ||||||
| 5.00%, 09/01/52 |
5,000 | 5,511,138 | ||||||
| 78,194,960 | ||||||||
| Tobacco — 2.7% | ||||||||
| California County Tobacco Securitization Agency, Refunding RB |
||||||||
| 5.00%, 06/01/50 |
520 | 528,444 | ||||||
| Series A, 4.00%, 06/01/49 |
755 | 701,149 | ||||||
| California County Tobacco Securitization Agency, Refunding RB, CAB(b) |
||||||||
| 0.00%, 06/01/55 |
7,575 | 1,506,004 | ||||||
| Series B-2, Subordinate, 0.00%, 06/01/55 |
8,895 | 1,702,732 | ||||||
| California Statewide Financing Authority, RB, Series L, 0.00%, 06/01/55(b)(d) |
57,200 | 2,799,552 | ||||||
| Golden State Tobacco Securitization Corp., Refunding RB |
||||||||
| Series A-1, 5.00%, 06/01/28(c) |
5,390 | 5,979,433 | ||||||
| Series B, 5.00%, 06/01/51 |
13,000 | 13,545,853 | ||||||
| Golden State Tobacco Securitization Corp., Refunding RB, CAB, Series B-2, Subordinate, 0.00%, 06/01/66(b) |
5,030 | 578,912 | ||||||
| Tobacco Securitization Authority of Southern California, Refunding RB, CAB, 0.00%, 06/01/54(b) |
25,600 | 4,892,097 | ||||||
| 32,234,176 | ||||||||
| Transportation — 20.5% | ||||||||
| Alameda Corridor Transportation Authority, Refunding RB, Series B, Sub Lien, 5.00%, 10/01/37 |
3,790 | 4,005,391 | ||||||
| Bay Area Toll Authority, Refunding RB, 4.00%, 04/01/47 |
28,750 | 28,848,532 | ||||||
| California Municipal Finance Authority, ARB |
||||||||
| AMT, Senior Lien, 5.00%, 12/31/43 |
6,500 | 6,609,330 | ||||||
| AMT, Senior Lien, 4.00%, 12/31/47 |
21,415 | 19,222,188 | ||||||
| City of Los Angeles Department of Airports, ARB |
||||||||
| Series A, AMT, 5.00%, 05/15/44 |
8,525 | 8,900,612 | ||||||
| Series A, AMT, 5.00%, 05/15/45 |
5,000 | 5,420,546 | ||||||
| Series A, AMT, 4.00%, 05/15/49 |
5,000 | 4,746,179 | ||||||
| Series B, AMT, 5.00%, 05/15/41 |
8,500 | 8,726,989 | ||||||
| Series B, AMT, 5.00%, 05/15/46 |
11,280 | 11,481,429 | ||||||
| Series E, AMT, 5.00%, 05/15/44 |
7,000 | 7,521,335 | ||||||
| City of Los Angeles Department of Airports, Refunding ARB |
||||||||
| AMT, 5.00%, 05/15/45 |
1,940 | 2,099,502 | ||||||
| AMT, 5.00%, 05/15/46 |
5,980 | 6,362,651 | ||||||
| AMT, 5.50%, 05/15/47 |
2,450 | 2,711,889 | ||||||
| AMT, Subordinate, 4.00%, 11/15/31(c) |
115 | 122,786 | ||||||
| AMT, Subordinate, 4.00%, 05/15/41 |
4,190 | 4,289,759 | ||||||
| County of Sacramento California Airport System Revenue, Refunding RB, Series C, AMT, 5.00%, 07/01/39 |
3,000 | 3,175,893 | ||||||
| Foothill-Eastern Transportation Corridor Agency, Refunding RB, Series B-2, 3.50%, 01/15/53 |
10,000 | 8,444,407 | ||||||
| Norman Y Mineta San Jose International Airport SJC, Refunding RB |
||||||||
| Series A, AMT, 5.00%, 03/01/33 |
2,000 | 2,196,812 | ||||||
| Series A, AMT, 5.00%, 03/01/41 |
11,250 | 11,592,668 | ||||||
| Series A, AMT, 5.00%, 03/01/47 |
6,150 | 6,250,710 | ||||||
| Security | Par (000) |
Value | ||||||
| Transportation (continued) | ||||||||
| Port of Los Angeles, Refunding ARB, Series A, AMT, 5.00%, 08/01/44 |
$ | 200 | $ | 200,447 | ||||
| San Diego County Regional Airport Authority, ARB |
||||||||
| AMT, 5.00%, 07/01/53 |
6,000 | 6,322,187 | ||||||
| Series B, AMT, 5.00%, 07/01/47 |
6,485 | 6,673,286 | ||||||
| Series B, AMT, Subordinate, 5.00%, 07/01/51 |
10,000 | 10,447,684 | ||||||
| Series B, AMT, Subordinate, 5.00%, 07/01/56 |
6,855 | 7,119,250 | ||||||
| San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB |
||||||||
| Series A, AMT, 5.00%, 05/01/44 |
2,660 | 2,642,755 | ||||||
| Series A, AMT, 5.00%, 05/01/47 |
14,220 | 14,479,440 | ||||||
| Series E, AMT, 5.00%, 05/01/45 |
2,515 | 2,620,963 | ||||||
| Series E, AMT, 5.00%, 05/01/50 |
27,195 | 28,052,193 | ||||||
| San Francisco City & County Airport Comm-San Francisco International Airport, Refunding RB |
||||||||
| Series 2020, AMT, 4.00%, 05/01/39 |
6,800 | 6,755,229 | ||||||
| Series C, AMT, 5.75%, 05/01/48 |
6,900 | 7,753,687 | ||||||
| 245,796,729 | ||||||||
| Utilities — 16.7% | ||||||||
| California Infrastructure & Economic Development Bank, RB |
||||||||
| 4.00%, 10/01/44 |
11,370 | 11,756,233 | ||||||
| Sustainability Bonds, 5.00%, 10/01/48 |
10,000 | 10,600,332 | ||||||
| California Pollution Control Financing Authority, Refunding RB, 5.00%, 07/01/39(d) |
1,000 | 1,054,524 | ||||||
| City of Los Angeles California Wastewater System Revenue, Refunding RB, Series A, Sustainability Bonds, 4.00%, 06/01/52 |
8,450 | 8,619,746 | ||||||
| City of Riverside California Water Revenue, RB, Series A, 5.00%, 10/01/52 |
2,250 | 2,497,535 | ||||||
| City of San Francisco California Public Utilities Commission Water Revenue, RB, Series C, 4.00%, 11/01/50 |
26,935 | 27,402,643 | ||||||
| Contra Costa Water District, Refunding RB, Series V, 5.00%, 10/01/44 |
1,260 | 1,368,385 | ||||||
| East Bay Municipal Utility District Water System Revenue, RB |
||||||||
| Series A, Sustainability Bonds, 5.00%, 06/01/49 |
3,835 | 4,100,074 | ||||||
| Series B, Sustainability Bonds, 4.00%, 06/01/45 |
5,500 | 5,518,011 | ||||||
| Eastern Municipal Water District Financing Authority, RB, Series D, 5.00%, 07/01/47 |
1,000 | 1,054,470 | ||||||
| Imperial Irrigation District Electric System Revenue, Refunding RB, Series B-2, 5.00%, 11/01/41 |
7,750 | 8,096,430 | ||||||
| Livermore Valley Water Financing Authority, RB |
||||||||
| Series A, 5.00%, 07/01/48 |
1,795 | 1,962,305 | ||||||
| Series A, 5.00%, 07/01/53 |
2,740 | 2,968,850 | ||||||
| Los Angeles Department of Water & Power Water System Revenue, Refunding RB, Series D, 5.00%, 07/01/52 |
6,155 | 6,822,297 | ||||||
| Los Angeles Department of Water & Power, RB, 5.00%, 07/01/51 |
10,420 | 11,453,771 | ||||||
| Los Angeles Department of Water & Power, Refunding RB, Series C, 5.00%, 07/01/41 |
2,810 | 3,230,382 | ||||||
| Mountain House Public Financing Authority, RB, Series A, Sustainability Bonds, (BAM), 4.00%, 12/01/50 |
4,500 | 4,462,225 | ||||||
| Sacramento County Sanitation Districts Financing Authority, Refunding RB, Series A, 5.00%, 12/01/44 |
1,000 | 1,006,278 | ||||||
| Sacramento Municipal Utility District, Refunding RB |
||||||||
| Series H, Sustainability Bonds, 5.00%, 08/15/50 |
3,730 | 4,052,115 | ||||||
| Series K, Sustainability Bonds, 5.00%, 08/15/53 |
13,000 | 14,479,488 | ||||||
| S C H E D U L E O F I N V E S T M E N T S |
39 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock MuniHoldings California Quality Fund, Inc. (MUC) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Utilities (continued) | ||||||||
| San Diego Public Facilities Financing Authority, RB, Series A, 5.00%, 05/15/52 |
$ | 6,970 | $ | 7,687,859 | ||||
| San Diego Public Facilities Financing Authority, Refunding RB, Series A, 4.00%, 08/01/52 |
7,945 | 8,129,692 | ||||||
| San Francisco City & County Public Utilities Commission Power Revenue, Refunding RB, Series B, 4.00%, 11/01/51 |
3,500 | 3,504,582 | ||||||
| San Francisco City & County Public Utilities Commission Wastewater Revenue, Refunding RB, Series A, Sustainability Bonds, 4.00%, 10/01/51 |
14,595 | 14,797,958 | ||||||
| San Mateo Foster City Public Financing Authority, RB |
||||||||
| 4.00%, 08/01/44 |
5,000 | 5,098,806 | ||||||
| 5.00%, 08/01/49 |
4,840 | 5,207,825 | ||||||
| Southern California Public Power Authority, RB, 5.00%, 07/01/48 |
20,570 | 23,262,182 | ||||||
| 200,194,998 | ||||||||
| Total Municipal Bonds in California |
1,459,728,599 | |||||||
| Puerto Rico — 5.4% | ||||||||
| State — 5.4% | ||||||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB |
||||||||
| Series A-1, Restructured, 4.75%, 07/01/53 |
13,134 | 12,868,298 | ||||||
| Series A-1, Restructured, 5.00%, 07/01/58 |
18,296 | 18,295,764 | ||||||
| Series A-2, Restructured, 4.78%, 07/01/58 |
2,416 | 2,361,640 | ||||||
| Series A-2, Restructured, 4.33%, 07/01/40 |
5,766 | 5,724,197 | ||||||
| Series B-1, Restructured, 4.75%, 07/01/53 |
1,063 | 1,036,356 | ||||||
| Series B-1, Restructured, 5.00%, 07/01/58 |
7,714 | 7,725,184 | ||||||
| Series B-2, Restructured, 4.33%, 07/01/40 |
7,022 | 6,942,198 | ||||||
| Series B-2, Restructured, 4.78%, 07/01/58 |
1,535 | 1,490,087 | ||||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(b) |
26,291 | 8,082,133 | ||||||
| Total Municipal Bonds in Puerto Rico |
64,525,857 | |||||||
|
|
|
|||||||
| Total Municipal Bonds — 127.0% |
1,524,254,456 | |||||||
|
|
|
|||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts(e) |
| |||||||
| California — 23.2% | ||||||||
| Corporate — 4.7% | ||||||||
| Southern California Public Power Authority, RB |
||||||||
| 5.00%, 07/01/48 |
25,000 | 28,271,975 | ||||||
| 5.25%, 07/01/53 |
25,000 | 28,588,509 | ||||||
|
|
|
|||||||
| 56,860,484 | ||||||||
| County/City/Special District/School District — 4.9% | ||||||||
| California Municipal Finance Authority, RB, 5.00%, 06/01/48 |
15,000 | 15,899,017 | ||||||
| Los Angeles County Facilities, Inc., RB, 5.00%, 12/01/43 |
13,345 | 14,291,666 | ||||||
| Los Angeles Unified School District, GO, Sustainability Bonds, 5.25%, 07/01/48 |
25,000 | 29,013,687 | ||||||
|
|
|
|||||||
| 59,204,370 | ||||||||
| Education — 6.3% | ||||||||
| University of California, RB, Series BK, 5.00%, 05/15/52 |
56,410 | 62,388,175 | ||||||
| University of California, Refunding RB, Series AZ, 5.00%, 05/15/48 |
12,000 | 12,762,655 | ||||||
|
|
|
|||||||
| 75,150,830 | ||||||||
| Security | Par (000) |
Value | ||||||
|
|
||||||||
| State — 1.9% | ||||||||
| Irvine Facilities Financing Authority, ST, 5.00%, 09/01/48 |
$ | 20,000 | $ | 22,304,795 | ||||
|
|
|
|||||||
| Transportation — 4.4% | ||||||||
| San Diego County Regional Airport Authority, ARB, AMT, 5.00%, 07/01/48 |
20,795 | 22,138,461 | ||||||
| San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB, AMT, Series 2, 5.00%, 05/01/48 |
30,660 | 31,334,208 | ||||||
|
|
|
|||||||
| 53,472,669 | ||||||||
| Utilities — 1.0% | ||||||||
| City of San Francisco California Public Utilities Commission Water Revenue, RB, Series B, 5.00%, 11/01/50 |
11,690 | 12,304,001 | ||||||
|
|
|
|||||||
| Total Municipal Bonds in California |
279,297,149 | |||||||
|
|
|
|||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 23.2% |
279,297,149 | |||||||
|
|
|
|||||||
| Total Long-Term Investments — 150.2% (Cost: $1,744,431,307) |
1,803,551,605 | |||||||
|
|
|
|||||||
| Shares | ||||||||
|
|
||||||||
| Short-Term Securities |
||||||||
| Money Market Funds — 4.6% | ||||||||
| BlackRock Liquidity Funds California Money Fund, Institutional Class, 3.26%(f)(g) |
54,818,619 | 54,785,727 | ||||||
|
|
|
|||||||
| Total Short-Term Securities — 4.6% |
54,785,727 | |||||||
|
|
|
|||||||
| Total Investments — 154.8% |
1,858,337,332 | |||||||
| Other Assets Less Liabilities — 1.4% |
16,288,318 | |||||||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (12.3)% |
|
(147,967,346 | ) | |||||
| VMTP Shares at Liquidation Value, Net of Deferred Offering Costs — (43.9)% |
|
(526,400,000 | ) | |||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% |
|
$ | 1,200,258,304 | |||||
|
|
|
|||||||
| (a) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
| (b) | Zero-coupon bond. |
| (c) | U.S. Government securities held in escrow, are used to pay interest on this security as well as to retire the bond in full at the date indicated, typically at a premium to par. |
| (d) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (e) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (f) | Affiliate of the Trust. |
| (g) | Annualized 7-day yield as of period end. |
| 40 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock MuniHoldings California Quality Fund, Inc. (MUC) |
For Trust compliance purposes, the Trust’s sector classifications refer to one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
Affiliates
Investments in issuers considered to be affiliate(s) of the Trust during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliated Issuer | Value at 07/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 01/31/24 |
Shares Held at 01/31/24 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
| BlackRock Liquidity Funds California Money Fund, Institutional Class |
$ | 61,896,344 | $ | — | $ | (7,110,791 | )(a) | $ | 4,824 | $ | (4,650 | ) | $ | 54,785,727 | 54,818,619 | $ | 581,068 | $ | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| (a) | Represents net amount purchased (sold). |
Derivative Financial Instruments Outstanding as of Period End
Futures Contracts
| Description | Number of Contracts |
Expiration Date |
Notional Amount (000) |
Value/ Unrealized Appreciation (Depreciation) |
||||||||||||
| Short Contracts |
||||||||||||||||
| 10-Year U.S. Treasury Note |
190 | 03/19/24 | $ | 21,348 | $ | (674,058 | ) | |||||||||
| U.S. Long Bond |
154 | 03/19/24 | 18,884 | (1,040,929 | ) | |||||||||||
| 5-Year U.S. Treasury Note |
152 | 03/28/24 | 16,484 | (326,377 | ) | |||||||||||
|
|
|
|||||||||||||||
| $ | (2,041,364 | ) | ||||||||||||||
|
|
|
|||||||||||||||
Derivative Financial Instruments Categorized by Risk Exposure
As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:
| Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
| Liabilities — Derivative Financial Instruments |
| |||||||||||||||||||||||||||
| Futures contracts |
||||||||||||||||||||||||||||
| Unrealized depreciation on futures contracts(a) |
$ | — | $ | — | $ | — | $ | — | $ | 2,041,364 | $ | — | $ | 2,041,364 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| (a) | Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
For the period ended January 31, 2024, the effect of derivative financial instruments in the Statements of Operations was as follows:
| Commodity Contracts |
Credit Contracts |
Equity Contracts |
Foreign Currency Exchange Contracts |
Interest Rate Contracts |
Other Contracts |
Total | ||||||||||||||||||||||
| Net Realized Gain (Loss) from: |
||||||||||||||||||||||||||||
| Futures contracts |
$ | — | $ | — | $ | — | $ | — | $ | (5,627,682 | ) | $ | — | $ | (5,627,682 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net Change in Unrealized Appreciation (Depreciation) on: |
||||||||||||||||||||||||||||
| Futures contracts |
$ | — | $ | — | $ | — | $ | — | $ | (2,041,364 | ) | $ | — | $ | (2,041,364 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| S C H E D U L E O F I N V E S T M E N T S |
41 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock MuniHoldings California Quality Fund, Inc. (MUC) |
Average Quarterly Balances of Outstanding Derivative Financial Instruments
| Futures contracts: |
||||
| Average notional value of contracts — short |
$ | 101,351,074 | ||
For more information about the Trust’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Trust’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Trust’s financial instruments categorized in the fair value hierarchy. The breakdown of the Trust’s financial instruments into major categories is disclosed in the Schedule of Investments above.
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Assets |
||||||||||||||||
| Investments |
||||||||||||||||
| Long-Term Investments |
||||||||||||||||
| Municipal Bonds |
$ | — | $ | 1,524,254,456 | $ | — | $ | 1,524,254,456 | ||||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts |
|
— |
|
279,297,149 | — | 279,297,149 | ||||||||||
| Short-Term Securities |
||||||||||||||||
| Money Market Funds |
54,785,727 | — | — | 54,785,727 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 54,785,727 | $ | 1,803,551,605 | $ | — | $ | 1,858,337,332 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Derivative Financial Instruments(a) |
||||||||||||||||
| Liabilities |
||||||||||||||||
| Interest Rate Contracts |
$ | (2,041,364 | ) | $ | — | $ | — | $ | (2,041,364 | ) | ||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (a) | Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument. |
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:
|
|
||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
|
||||||||||||||||
| Liabilities |
||||||||||||||||
| TOB Trust Certificates |
$ | — | $ | (147,184,992 | ) | $ | — | $ | (147,184,992 | ) | ||||||
| VMTP Shares at Liquidation Value |
— | (526,400,000 | ) | — | (526,400,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | — | $ | (673,584,992 | ) | $ | — | $ | (673,584,992 | ) | |||||||
|
|
|
|
|
|
|
|
|
|||||||||
See notes to financial statements.
| 42 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) January 31, 2024 |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Municipal Bonds |
||||||||
| Alabama — 3.5% | ||||||||
| Black Belt Energy Gas District, RB(a) |
||||||||
| Series A, 5.25%, 01/01/54 |
$ | 2,000 | $ | 2,153,725 | ||||
| Series F, 5.50%, 11/01/53 |
840 | 893,731 | ||||||
| County of Jefferson Alabama Sewer Revenue, Refunding RB |
||||||||
| 5.00%, 10/01/26 |
150 | 157,254 | ||||||
| 5.25%, 10/01/49 |
520 | 563,422 | ||||||
| Southeast Energy Authority A Cooperative District, RB, Series A-2, 6.01%, 01/01/53(a) |
5,090 | 5,177,999 | ||||||
|
|
|
|||||||
| 8,946,131 | ||||||||
| Arizona — 1.5% | ||||||||
| Arizona Industrial Development Authority, RB |
||||||||
| 4.38%, 07/01/39(b) |
550 | 489,759 | ||||||
| Series A, (BAM), 4.00%, 06/01/44 |
730 | 702,151 | ||||||
| Series A, 5.00%, 07/01/49(b) |
525 | 475,781 | ||||||
| Series A, 5.00%, 07/01/54(b) |
405 | 360,522 | ||||||
| Chandler Industrial Development Authority, RB, AMT, 4.10%, 12/01/37(a) |
535 | 537,948 | ||||||
| Glendale Industrial Development Authority, RB, 5.00%, 05/15/56 |
535 | 417,633 | ||||||
| Maricopa County Industrial Development Authority, Refunding RB, 5.00%, 07/01/54(b) |
280 | 262,199 | ||||||
| Salt Verde Financial Corp., RB, 5.00%, 12/01/37 |
450 | 491,358 | ||||||
|
|
|
|||||||
| 3,737,351 | ||||||||
| Arkansas — 0.6% | ||||||||
| Arkansas Development Finance Authority, RB Series A, AMT, 4.50%, 09/01/49(b) |
1,270 | 1,232,370 | ||||||
| AMT, Sustainability Bonds, 5.70%, 05/01/53 |
415 | 424,839 | ||||||
|
|
|
|||||||
| 1,657,209 | ||||||||
| California — 5.6% | ||||||||
| Bay Area Toll Authority, Refunding RB, Series C, 5.00%, 04/01/56(a) |
1,000 | 983,330 | ||||||
| California Community Choice Financing Authority, RB(a) |
||||||||
| Sustainability Bonds, 5.23%, 02/01/54 |
1,550 | 1,548,159 | ||||||
| Series B-2, Sustainability Bonds, 5.00%, 02/01/52 |
1,500 | 1,332,843 | ||||||
| California Community Housing Agency, RB, M/F Housing, 3.00%, 08/01/56(b) |
120 | 84,400 | ||||||
| California Enterprise Development Authority, RB, 8.00%, 11/15/62(b) |
365 | 360,490 | ||||||
| California Health Facilities Financing Authority, Refunding RB, Series A, 3.00%, 08/15/51 |
1,100 | 854,339 | ||||||
| California Municipal Finance Authority, ARB, AMT, Senior Lien, 5.00%, 12/31/43 |
1,400 | 1,423,548 | ||||||
| CSCDA Community Improvement Authority, RB, M/F Housing(b) |
||||||||
| 4.00%, 10/01/56 |
160 | 130,743 | ||||||
| Senior Lien, Sustainability Bonds, 3.13%, 06/01/57 |
515 | 331,934 | ||||||
| Series A, Senior Lien, Sustainability Bonds, 4.00%, 12/01/58 |
745 | 556,416 | ||||||
| Sustainability Bonds, 5.00%, 09/01/37 |
100 | 102,542 | ||||||
| Sustainability Bonds, 4.00%, 12/01/56 |
200 | 139,334 | ||||||
| Series A, Sustainability Bonds, 4.00%, 06/01/58 |
475 | 343,740 | ||||||
| San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB |
||||||||
| Series A, AMT, 5.50%, 05/01/28 |
1,800 | 1,800,715 | ||||||
| Series A, AMT, 5.25%, 05/01/33 |
1,410 | 1,410,539 | ||||||
| Security | Par (000) |
Value | ||||||
| California (continued) |
||||||||
| San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB (continued) |
||||||||
| Series A, AMT, 5.00%, 05/01/44 |
$ | 1,860 | $ | 1,847,942 | ||||
| Washington Township Health Care District, GO, Series B, Election 2004, 5.50%, 08/01/40 |
940 | 949,213 | ||||||
|
|
|
|||||||
| 14,200,227 | ||||||||
| Colorado — 3.7% | ||||||||
| City & County of Denver Colorado Airport System Revenue, ARB |
||||||||
| Series A, AMT, 5.50%, 11/15/28 |
1,500 | 1,500,920 | ||||||
| Series A, AMT, 5.50%, 11/15/30 |
565 | 565,351 | ||||||
| Series A, AMT, 5.50%, 11/15/31 |
675 | 675,465 | ||||||
| City & County of Denver Colorado Airport System Revenue, Refunding ARB, Series A, AMT, 5.00%, 12/01/48 |
1,700 | 1,758,177 | ||||||
| Colorado Educational & Cultural Facilities Authority, RB, 5.00%, 03/01/50(b) |
790 | 798,607 | ||||||
| Colorado Health Facilities Authority, RB, 5.50%, 11/01/47 |
205 | 222,583 | ||||||
| Colorado Health Facilities Authority, Refunding RB, Series A, 3.25%, 08/01/49 |
3,025 | 2,258,956 | ||||||
| Denver Convention Center Hotel Authority, Refunding RB, 5.00%, 12/01/40 |
830 | 833,400 | ||||||
| E-470 Public Highway Authority, Refunding RB, Series B, 3.96%, 09/01/39(a) |
260 | 259,278 | ||||||
| STC Metropolitan District No. 2, Refunding GO, Series A, 5.00%, 12/01/38 |
715 | 660,300 | ||||||
|
|
|
|||||||
| 9,533,037 | ||||||||
| Connecticut — 1.5% | ||||||||
| State of Connecticut Special Tax Revenue, RB, Series A, 5.25%, 07/01/42 |
1,725 | 1,970,467 | ||||||
| State of Connecticut, GO, Series A, 5.00%, 04/15/38 |
1,690 | 1,817,032 | ||||||
|
|
|
|||||||
| 3,787,499 | ||||||||
| Delaware — 0.5% | ||||||||
| Delaware State Health Facilities Authority, RB, 5.00%, 06/01/48 |
1,345 | 1,346,953 | ||||||
|
|
|
|||||||
| District of Columbia — 1.7% | ||||||||
| Metropolitan Washington Airports Authority Aviation Revenue, Refunding ARB, Series A, AMT, 5.25%, 10/01/48 |
465 | 500,195 | ||||||
| Washington Metropolitan Area Transit Authority Dedicated Revenue, RB, 5.25%, 07/15/53 |
3,370 | 3,711,502 | ||||||
|
|
|
|||||||
| 4,211,697 | ||||||||
| Florida — 6.5% | ||||||||
| Capital Trust Agency, Inc., RB(b) |
||||||||
| Series A, 5.00%, 06/01/45 |
465 | 402,146 | ||||||
| Series A, 5.50%, 06/01/57 |
165 | 145,045 | ||||||
| City of Fort Lauderdale Florida Water & Sewer Revenue, RB, 5.50%, 09/01/53 |
1,700 | 1,948,918 | ||||||
| County of Broward Florida Tourist Development Tax Revenue, Refunding RB, Convertible, 4.00%, 09/01/51 |
1,700 | 1,602,083 | ||||||
| County of Miami-Dade Seaport Department, Refunding RB |
||||||||
| Series A-2, (AGM), 4.00%, 10/01/49 |
1,700 | 1,657,229 | ||||||
| Series A, AMT, 5.00%, 10/01/38 |
950 | 1,013,668 | ||||||
| Series A-1, AMT, (AGM), 4.00%, 10/01/45 |
3,230 | 2,991,310 | ||||||
| Cypress Bluff Community Development District, SAB, Series A, 3.80%, 05/01/50(b) |
730 | 541,355 | ||||||
| S C H E D U L E O F I N V E S T M E N T S |
43 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Florida (continued) | ||||||||
| Finley Woods Community Development District, SAB |
||||||||
| 4.00%, 05/01/40 |
$ | 265 | $ | 228,131 | ||||
| 4.20%, 05/01/50 |
450 | 358,037 | ||||||
| Florida Development Finance Corp., RB(b) |
||||||||
| 6.50%, 06/30/57 |
335 | 321,448 | ||||||
| AMT, 5.00%, 05/01/29 |
470 | 453,064 | ||||||
| Florida Development Finance Corp., Refunding RB, Series C, 5.00%, 09/15/50(b) |
260 | 223,455 | ||||||
| Lakewood Ranch Stewardship District, SAB, 6.30%, 05/01/54 |
210 | 220,072 | ||||||
| Lee County Housing Finance Authority, RB, S/F Housing, Series A-2, (FHLMC, FNMA, GNMA), 6.00%, 09/01/40 |
30 | 30,033 | ||||||
| Osceola Chain Lakes Community Development District, SAB |
||||||||
| 4.00%, 05/01/40 |
670 | 584,065 | ||||||
| 4.00%, 05/01/50 |
640 | 503,354 | ||||||
| Palm Beach County Health Facilities Authority, Refunding RB, 4.00%, 08/15/49 |
2,065 | 1,902,541 | ||||||
| Southern Groves Community Development District No. 5, Refunding SAB, 4.00%, 05/01/43 |
380 | 320,167 | ||||||
| University of Florida Department of Housing & Residence Education Hsg Sys Rev, RB, Series A, (BAM-TCRS), 3.00%, 07/01/51 |
1,000 | 788,504 | ||||||
| Village Community Development District No. 15, SAB, 5.25%, 05/01/54(b) |
210 | 208,123 | ||||||
|
|
|
|||||||
| 16,442,748 | ||||||||
| Georgia — 1.6% | ||||||||
| East Point Business & Industrial Development Authority, RB, Series A, 5.25%, 06/15/62(b) |
195 | 176,756 | ||||||
| Main Street Natural Gas, Inc., RB, Series A, 5.00%, 05/15/49 |
950 | 1,033,325 | ||||||
| Main Street Natural Gas, Inc., Refunding RB, Series E-2, 5.26%, 12/01/53(a) |
2,830 | 2,966,886 | ||||||
|
|
|
|||||||
| 4,176,967 | ||||||||
| Hawaii — 0.8% | ||||||||
| State of Hawaii Airports System Revenue, COP |
||||||||
| AMT, 5.25%, 08/01/25 |
740 | 740,568 | ||||||
| AMT, 5.25%, 08/01/26 |
1,205 | 1,205,936 | ||||||
|
|
|
|||||||
| 1,946,504 | ||||||||
| Illinois — 10.2% | ||||||||
| Chicago Board of Education, GO |
||||||||
| Series A, 5.00%, 12/01/34 |
1,225 | 1,289,624 | ||||||
| Series A, 5.00%, 12/01/40 |
1,165 | 1,196,338 | ||||||
| Chicago Midway International Airport, Refunding ARB, Series A, AMT, 2nd Lien, 5.00%, 01/01/41 |
1,140 | 1,140,657 | ||||||
| Chicago Midway International Airport, Refunding RB |
||||||||
| Series A, AMT, 2nd Lien, 5.50%, 01/01/28 |
1,000 | 1,000,183 | ||||||
| Series A, AMT, 2nd Lien, 5.50%, 01/01/29 |
1,500 | 1,500,274 | ||||||
| Series A, AMT, 2nd Lien, 5.38%, 01/01/33 |
2,000 | 2,000,339 | ||||||
| Cook County Community College District No. 508, GO |
||||||||
| 5.25%, 12/01/30 |
1,270 | 1,274,078 | ||||||
| 5.50%, 12/01/38 |
1,205 | 1,209,534 | ||||||
| 5.25%, 12/01/43 |
2,960 | 2,969,504 | ||||||
| Illinois Finance Authority, Refunding RB, Series C, 4.00%, 02/15/41 |
1,000 | 977,684 | ||||||
| Illinois Housing Development Authority, RB, S/F Housing, Series G, Sustainability Bonds, (FHLMC, FNMA, GNMA), 4.85%, 10/01/42 |
515 | 531,786 | ||||||
| Security | Par (000) |
Value | ||||||
| Illinois (continued) | ||||||||
| Illinois State Toll Highway Authority, RB |
||||||||
| Series A, 5.00%, 01/01/40 |
$ | 4,885 | $ | 5,003,780 | ||||
| Series A, 5.00%, 01/01/45 |
980 | 1,061,867 | ||||||
| Series A, 4.00%, 01/01/46 |
1,000 | 976,659 | ||||||
| State of Illinois, GO |
||||||||
| 5.25%, 02/01/31 |
1,495 | 1,497,456 | ||||||
| 5.25%, 02/01/32 |
2,320 | 2,323,869 | ||||||
|
|
|
|||||||
| 25,953,632 | ||||||||
| Indiana — 0.2% | ||||||||
| Indiana Finance Authority, RB |
||||||||
| Series A, 5.00%, 06/01/41 |
300 | 251,128 | ||||||
| Series A, 5.00%, 06/01/51 |
220 | 170,267 | ||||||
| Series A, 5.00%, 06/01/56 |
190 | 143,582 | ||||||
|
|
|
|||||||
| 564,977 | ||||||||
| Kentucky — 0.9% | ||||||||
| City of Henderson Kentucky, RB, Series A, AMT, 4.70%, 01/01/52(b) |
150 | 141,539 | ||||||
| Fayette County School District Finance Corp., RB, (BAM-TCRS), 5.00%, 06/01/47 |
1,995 | 2,142,692 | ||||||
|
|
|
|||||||
| 2,284,231 | ||||||||
| Louisiana — 0.9% | ||||||||
| Lake Charles Harbor & Terminal District, ARB, Series B, AMT, (AGM), 5.50%, 01/01/29 |
2,225 | 2,228,549 | ||||||
|
|
|
|||||||
| Maryland — 4.3% | ||||||||
| Howard County Housing Commission, RB, M/F Housing, 5.00%, 12/01/42 |
2,450 | 2,531,614 | ||||||
| Maryland Community Development Administration, Refunding RB, S/F Housing, Series C, Sustainability Bonds, (FHLMC, FNMA, GNMA), 4.50%, 09/01/49 |
1,095 | 1,088,363 | ||||||
| Maryland Economic Development Corp., RB, Class B, AMT, Sustainability Bonds, 5.00%, 12/31/40 |
525 | 539,254 | ||||||
| Maryland Stadium Authority, RB, Series A, (NGFGC), 5.00%, 05/01/47 |
6,460 | 6,739,215 | ||||||
|
|
|
|||||||
| 10,898,446 | ||||||||
| Massachusetts — 1.5% | ||||||||
| Commonwealth of Massachusetts, GO |
||||||||
| Series B, 3.00%, 04/01/49 |
1,300 | 1,003,347 | ||||||
| Series D, 4.00%, 02/01/43 |
1,550 | 1,550,994 | ||||||
| Massachusetts Development Finance Agency, RB |
||||||||
| Series A, 5.25%, 01/01/42 |
940 | 956,218 | ||||||
| Series A, 5.00%, 01/01/47 |
420 | 422,651 | ||||||
|
|
|
|||||||
| 3,933,210 | ||||||||
| Michigan — 1.8% | ||||||||
| Michigan Finance Authority, RB, 4.00%, 02/15/44 |
2,500 | 2,410,440 | ||||||
| Michigan Finance Authority, Refunding RB |
||||||||
| 4.00%, 09/01/46 |
550 | 505,741 | ||||||
| 5.30%, 04/15/47(a) |
755 | 747,404 | ||||||
| Michigan Strategic Fund, RB, AMT, 5.00%, 12/31/43 |
895 | 902,587 | ||||||
|
|
|
|||||||
| 4,566,172 | ||||||||
| Minnesota — 1.0% | ||||||||
| Housing & Redevelopment Authority of The City of St. Paul Minnesota, Refunding RB, Series A, 4.00%, 11/15/43 |
985 | 862,187 | ||||||
| Minnesota Housing Finance Agency, RB, S/F Housing, Series N, Sustainability Bonds, (FHLMC, FNMA, GNMA), 5.10%, 07/01/42 |
1,555 | 1,661,154 | ||||||
|
|
|
|||||||
| 2,523,341 | ||||||||
| 44 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Mississippi — 1.9% | ||||||||
| Mississippi Development Bank, RB, (AGM), 6.88%, 12/01/40 |
$ | 2,225 | $ | 2,229,782 | ||||
| State of Mississippi Gaming Tax Revenue, RB, Series A, 4.00%, 10/15/38 |
2,815 | 2,662,076 | ||||||
|
|
|
|||||||
| 4,891,858 | ||||||||
| Missouri — 1.8% | ||||||||
| Health & Educational Facilities Authority of the State of Missouri, RB, 4.00%, 06/01/53 |
5,000 | 4,674,681 | ||||||
|
|
|
|||||||
| Montana — 0.1% | ||||||||
| Montana Board of Housing, RB, S/F Housing, Series B-2, 3.60%, 12/01/47 |
165 | 145,695 | ||||||
|
|
|
|||||||
| Nevada — 2.0% | ||||||||
| Carson City Nevada, Refunding RB, 5.00%, 09/01/42 |
1,130 | 1,146,057 | ||||||
| City of Las Vegas Nevada Special Improvement District No. 814, SAB |
||||||||
| 4.00%, 06/01/39 |
120 | 106,224 | ||||||
| 4.00%, 06/01/44 |
315 | 262,208 | ||||||
| City of Reno Nevada, Refunding RB, Series A-1, (AGM), 4.00%, 06/01/43 |
2,690 | 2,653,790 | ||||||
| Tahoe-Douglas Visitors Authority, RB |
||||||||
| 5.00%, 07/01/40 |
580 | 602,125 | ||||||
| 5.00%, 07/01/45 |
400 | 409,526 | ||||||
|
|
|
|||||||
| 5,179,930 | ||||||||
| New Hampshire(a)(b) — 0.3% | ||||||||
| New Hampshire Business Finance Authority, Refunding RB |
||||||||
| Series A, 3.63%, 07/01/43 |
200 | 155,965 | ||||||
| Series B, AMT, Sustainability Bonds, 3.75%, 07/01/45 |
670 | 525,499 | ||||||
|
|
|
|||||||
| 681,464 | ||||||||
| New Jersey — 8.4% | ||||||||
| New Jersey Economic Development Authority, RB |
||||||||
| 5.00%, 06/15/36 |
810 | 895,325 | ||||||
| Series A, 5.00%, 06/15/47 |
2,500 | 2,592,223 | ||||||
| Series LLL, 5.00%, 06/15/34 |
635 | 707,078 | ||||||
| AMT, (AGM), 5.00%, 01/01/31 |
1,355 | 1,355,827 | ||||||
| AMT, 5.38%, 01/01/43 |
1,940 | 1,941,717 | ||||||
| New Jersey Health Care Facilities Financing Authority, RB, 4.00%, 07/01/51 |
1,500 | 1,454,915 | ||||||
| New Jersey Higher Education Student Assistance Authority, Refunding RB |
||||||||
| Series B, AMT, 4.00%, 12/01/41 |
1,195 | 1,191,470 | ||||||
| Series C, AMT, Subordinate, 5.00%, 12/01/52 |
1,355 | 1,371,351 | ||||||
| New Jersey Housing & Mortgage Finance Agency, Refunding RB, Series A, AMT, 3.80%, 10/01/32 |
1,880 | 1,797,201 | ||||||
| New Jersey Transportation Trust Fund Authority, RB |
||||||||
| Class BB, 4.00%, 06/15/50 |
1,500 | 1,432,081 | ||||||
| Series BB, 4.00%, 06/15/50 |
1,775 | 1,699,689 | ||||||
| Series S, 5.25%, 06/15/43 |
2,980 | 3,198,854 | ||||||
| Tobacco Settlement Financing Corp., Refunding RB |
||||||||
| Series A, 5.00%, 06/01/46 |
1,000 | 1,018,711 | ||||||
| Sub-Series B, 5.00%, 06/01/46 |
810 | 818,286 | ||||||
|
|
|
|||||||
| 21,474,728 | ||||||||
| New Mexico — 0.0% | ||||||||
| City of Santa Fe New Mexico, RB, Series A, 5.00%, 05/15/44 |
135 | 114,324 | ||||||
|
|
|
|||||||
| New York — 5.1% | ||||||||
| New York Liberty Development Corp., Refunding RB Class 1, 5.00%, 11/15/44(b) |
760 | 759,050 | ||||||
| Security | Par (000) |
Value | ||||||
| New York (continued) | ||||||||
| New York Liberty Development Corp., Refunding RB (continued) |
||||||||
| Series 1, 4.00%, 02/15/43 |
$ | 1,750 | $ | 1,739,413 | ||||
| Series A, Sustainability Bonds, 3.00%, 11/15/51 |
210 | 156,949 | ||||||
| New York State Thruway Authority, RB, Series 2, Sustainability Bonds, 4.13%, 03/15/56 |
1,675 | 1,678,206 | ||||||
| New York Transportation Development Corp., ARB, AMT, 5.63%, 04/01/40 |
465 | 503,502 | ||||||
| New York Transportation Development Corp., RB |
||||||||
| AMT, 5.00%, 10/01/35 |
1,025 | 1,070,077 | ||||||
| AMT, 4.00%, 04/30/53 |
605 | 503,729 | ||||||
| AMT, Sustainability Bonds, 5.38%, 06/30/60 |
5,350 | 5,591,651 | ||||||
| TSASC, Inc., Refunding RB, Series A, 5.00%, 06/01/41 |
895 | 902,480 | ||||||
|
|
|
|||||||
| 12,905,057 | ||||||||
| North Carolina — 2.0% | ||||||||
| University of North Carolina at Chapel Hill, Refunding RB, Series A, 4.26%, 12/01/41(a) |
4,970 | 4,996,159 | ||||||
|
|
|
|||||||
| North Dakota — 0.4% | ||||||||
| City of Grand Forks North Dakota, RB, Series B, (AGM), 5.00%, 12/01/48 |
880 | 931,545 | ||||||
|
|
|
|||||||
| Ohio — 2.8% | ||||||||
| Allen County Port Authority, Refunding RB, Series A, 4.00%, 12/01/40 |
490 | 425,936 | ||||||
| Buckeye Tobacco Settlement Financing Authority, Refunding RB, Series B-2, Class 2, 5.00%, 06/01/55 |
4,600 | 4,333,016 | ||||||
| County of Hamilton Ohio, RB, Series CC, 5.00%, 11/15/49 |
270 | 302,178 | ||||||
| State of Ohio, Refunding RB, Series A, 4.00%, 01/15/50 |
2,275 | 2,131,264 | ||||||
|
|
|
|||||||
| 7,192,394 | ||||||||
| Oklahoma — 2.3% | ||||||||
| Oklahoma Turnpike Authority, RB |
||||||||
| 5.50%, 01/01/53 |
2,055 | 2,294,522 | ||||||
| Series A, 4.00%, 01/01/48 |
3,600 | 3,593,733 | ||||||
|
|
|
|||||||
| 5,888,255 | ||||||||
| Pennsylvania — 16.1% | ||||||||
| Allegheny County Airport Authority, ARB, Series A, AMT, (AGM), 5.50%, 01/01/53 |
670 | 726,909 | ||||||
| Allegheny County Hospital Development Authority, RB, Series D2, 5.25%, 11/15/47(a) |
1,040 | 1,019,987 | ||||||
| Bucks County Industrial Development Authority, RB, 4.00%, 07/01/46 |
200 | 156,244 | ||||||
| Chester County Health and Education Facilities Authority, Refunding RB, Series A, 5.00%, 10/01/52 |
2,000 | 2,054,380 | ||||||
| City of Philadelphia Pennsylvania Water & Wastewater Revenue, Refunding RB |
||||||||
| Series B, (AGM), 4.50%, 09/01/48 |
1,415 | 1,461,591 | ||||||
| Series B, (AGM), 5.50%, 09/01/53 |
2,830 | 3,166,796 | ||||||
| Commonwealth of Pennsylvania, GO, Series 1, 4.00%, 03/01/38 |
3,600 | 3,694,197 | ||||||
| Geisinger Authority, Refunding RB |
||||||||
| 4.00%, 02/15/47 |
2,815 | 2,733,201 | ||||||
| Series A, 4.00%, 04/01/50 |
3,080 | 2,946,044 | ||||||
| Hospitals & Higher Education Facilities Authority of Philadelphia, Refunding RB, (AGM), 4.00%, 07/01/40 |
1,215 | 1,207,223 | ||||||
| Lancaster Industrial Development Authority, RB, 5.00%, 12/01/44 |
675 | 676,146 | ||||||
| S C H E D U L E O F I N V E S T M E N T S |
45 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
| Pennsylvania (continued) | ||||||||
| Montgomery County Industrial Development Authority, RB, Series C, 5.00%, 11/15/45 |
$ | 570 | $ | 578,398 | ||||
| Northampton County General Purpose Authority, Refunding RB, 4.00%, 11/01/38 |
5,930 | 5,998,753 | ||||||
| Pennsylvania Economic Development Financing Authority, RB |
||||||||
| AMT, 5.50%, 06/30/43 |
515 | 568,145 | ||||||
| AMT, 5.25%, 06/30/53 |
1,000 | 1,074,096 | ||||||
| Pennsylvania Housing Finance Agency, RB, S/F Housing |
||||||||
| Series 125B, AMT, 3.65%, 10/01/42 |
3,000 | 2,670,928 | ||||||
| Series 143A, Sustainability Bonds, 5.38%, 10/01/46 |
3,990 | 4,239,433 | ||||||
| Pennsylvania Turnpike Commission, RB |
||||||||
| Sub-Series B-1, 5.25%, 06/01/47 |
2,300 | 2,393,569 | ||||||
| Series A, Subordinate, 5.00%, 12/01/37 |
750 | 817,038 | ||||||
| Philadelphia Authority for Industrial Development, RB, 5.25%, 11/01/52 |
1,285 | 1,345,216 | ||||||
| Pittsburgh School District, GO, (SAW), 3.00%, 09/01/41 |
1,165 | 955,209 | ||||||
| School District of Philadelphia, GO, Series A, (SAW), 5.50%, 09/01/48 |
400 | 444,177 | ||||||
|
|
|
|||||||
| 40,927,680 | ||||||||
| Puerto Rico — 5.3% | ||||||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB |
||||||||
| Series A-1, Restructured, 4.75%, 07/01/53 |
5,039 | 4,937,061 | ||||||
| Series A-1, Restructured, 5.00%, 07/01/58 |
4,109 | 4,108,947 | ||||||
| Series A-2, Restructured, 4.78%, 07/01/58 |
264 | 258,060 | ||||||
| Series A-2, Restructured, 4.33%, 07/01/40 |
2,279 | 2,262,477 | ||||||
| Series B-2, Restructured, 4.78%, 07/01/58 |
394 | 382,472 | ||||||
| Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB, CAB, Series A-1, Restructured, 0.00%, 07/01/46(c) |
4,757 | 1,462,352 | ||||||
|
|
|
|||||||
| 13,411,369 | ||||||||
| South Carolina — 1.6% | ||||||||
| Patriots Energy Group Financing Agency, RB, Series A1, 5.25%, 10/01/54(a) |
1,970 | 2,110,077 | ||||||
| South Carolina Jobs-Economic Development Authority, RB(b) |
||||||||
| 5.00%, 01/01/55 |
825 | 721,128 | ||||||
| 7.50%, 08/15/62 |
390 | 355,636 | ||||||
| South Carolina Jobs-Economic Development Authority, Refunding RB, Series A, 5.00%, 05/01/43 |
860 | 881,802 | ||||||
|
|
|
|||||||
| 4,068,643 | ||||||||
| Tennessee — 1.7% | ||||||||
| Memphis-Shelby County Airport Authority, ARB, Series A, AMT, 5.00%, 07/01/49 |
3,000 | 3,111,662 | ||||||
| Metropolitan Government Nashville & Davidson County Sports Authority, RB, Series A, Senior Lien, (AGM), 5.25%, 07/01/48 |
1,020 | 1,130,953 | ||||||
|
|
|
|||||||
| 4,242,615 | ||||||||
| Texas — 7.3% | ||||||||
| Arlington Higher Education Finance Corp., RB(b) |
||||||||
| 7.50%, 04/01/62 |
410 | 398,978 | ||||||
| 7.88%, 11/01/62 |
360 | 365,347 | ||||||
| Aubrey Independent School District, GO, (PSF), 4.00%, 02/15/52 |
1,000 | 980,311 | ||||||
| Dallas Independent School District, Refunding GO, (PSF), 4.00%, 02/15/53 |
900 | 872,119 | ||||||
| Security | Par (000) |
Value | ||||||
| Texas (continued) | ||||||||
| Del Valle Independent School District Texas, GO, (PSF), 4.00%, 06/15/47 |
$ | 1,410 | $ | 1,397,533 | ||||
| Fort Worth Independent School District, GO, (PSF), 4.00%, 02/15/48 |
885 | 885,450 | ||||||
| Gunter Independent School District, GO, (PSF), 4.00%, 02/15/53 |
815 | 782,144 | ||||||
| New Hope Cultural Education Facilities Finance Corp., RB, Series A, 5.00%, 08/15/50(b) |
440 | 395,576 | ||||||
| North Texas Tollway Authority, Refunding RB, Series A, 5.00%, 01/01/43 |
1,400 | 1,468,277 | ||||||
| Tarrant County Cultural Education Facilities Finance Corp., RB |
||||||||
| 5.00%, 11/15/51 |
1,620 | 1,731,074 | ||||||
| Series B, 5.00%, 07/01/36 |
2,500 | 2,676,579 | ||||||
| Tarrant County Cultural Education Facilities Finance Corp., Refunding RB, 5.00%, 11/15/40 |
2,500 | 2,277,795 | ||||||
| Texas City Industrial Development Corp., RB, Series 2012, 4.13%, 12/01/45 |
255 | 225,152 | ||||||
| Texas Municipal Gas Acquisition & Supply Corp. III, Refunding RB, 5.00%, 12/15/32 |
2,935 | 3,127,419 | ||||||
| Texas Private Activity Bond Surface Transportation Corp., RB, AMT, Senior Lien, 5.50%, 12/31/58 |
1,050 | 1,130,597 | ||||||
|
|
|
|||||||
| 18,714,351 | ||||||||
| Utah — 1.8% | ||||||||
| City of Salt Lake City Utah Airport Revenue, ARB |
||||||||
| Series A, AMT, 5.25%, 07/01/48 |
585 | 626,117 | ||||||
| Series A, AMT, 5.50%, 07/01/53 |
675 | 736,620 | ||||||
| County of Utah Utah, RB, Series B, 4.00%, 05/15/47 |
1,340 | 1,288,914 | ||||||
| County of Utah, RB, Series A, 3.00%, 05/15/50 |
1,840 | 1,400,011 | ||||||
| Utah Charter School Finance Authority, RB, Series A, 5.00%, 06/15/49(b) |
170 | 152,992 | ||||||
| Utah Charter School Finance Authority, Refunding RB, 5.00%, 06/15/40(b) |
325 | 316,533 | ||||||
|
|
|
|||||||
| 4,521,187 | ||||||||
| Virginia — 1.3% | ||||||||
| Tobacco Settlement Financing Corp., Refunding RB, Series B-1, 5.00%, 06/01/47 |
955 | 900,071 | ||||||
| Virginia Small Business Financing Authority, RB, AMT, 5.00%, 12/31/52 |
2,525 | 2,531,807 | ||||||
|
|
|
|||||||
| 3,431,878 | ||||||||
| Washington — 2.6% | ||||||||
| Central Puget Sound Regional Transit Authority, RB, Series 2015, Class 2A, Sustainability Bonds, 4.75%, 11/01/45(a) |
3,000 | 2,938,079 | ||||||
| County of King Washington Sewer Revenue, Refunding RB, Series A, Junior Lien, 4.78%, 01/01/40(a) |
915 | 893,546 | ||||||
| Port of Seattle Washington, ARB |
||||||||
| Series A, AMT, 5.00%, 05/01/43 |
660 | 675,768 | ||||||
| Series C, AMT, Intermediate Lien, 5.00%, 05/01/42 |
735 | 754,075 | ||||||
| Washington Health Care Facilities Authority, Refunding RB, Series A, 5.00%, 08/01/44 |
875 | 907,323 | ||||||
| Washington State Housing Finance Commission, Refunding RB |
||||||||
| Series A, 5.00%, 07/01/43 |
215 | 218,530 | ||||||
| Series A, 5.00%, 07/01/48 |
205 | 205,473 | ||||||
|
|
|
|||||||
| 6,592,794 | ||||||||
| 46 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE) (Percentages shown are based on Net Assets) |
| Security | Par (000) |
Value | ||||||
|
|
||||||||
| West Virginia — 1.1% | ||||||||
| West Virginia Parkways Authority, RB, Senior Lien, 4.00%, 06/01/51 |
$ | 2,810 | $ | 2,699,933 | ||||
|
|
|
|||||||
| Wisconsin — 1.2% | ||||||||
| Public Finance Authority, RB(b) |
||||||||
| Class A, 5.00%, 06/15/51 |
550 | 432,257 | ||||||
| Series A, 5.00%, 07/01/55 |
305 | 253,376 | ||||||
| Series A, 5.00%, 10/15/55 |
955 | 793,248 | ||||||
| Series A-1, 4.50%, 01/01/35 |
510 | 457,005 | ||||||
| Public Finance Authority, Refunding RB |
||||||||
| 5.00%, 09/01/49(b) |
285 | 230,301 | ||||||
| Series B, AMT, 5.00%, 07/01/42 |
990 | 990,443 | ||||||
|
|
|
|||||||
| 3,156,630 | ||||||||
| Wyoming — 0.3% | ||||||||
| University of Wyoming, RB, Series C, (AGM), 4.00%, 06/01/51 |
855 | 805,862 | ||||||
|
|
|
|||||||
| Total Municipal Bonds — 115.7% |
294,587,913 | |||||||
|
|
|
|||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts(d) |
| |||||||
| Massachusetts — 4.3% | ||||||||
| Commonwealth of Massachusetts, GO, Series D, 5.00%, 10/01/51 |
10,005 | 10,941,695 | ||||||
|
|
|
|||||||
| New York — 10.7% | ||||||||
| New York Power Authority, RB, Sustainability Bonds, (AGM), 5.13%, 11/15/63 |
3,373 | 3,715,645 | ||||||
| New York State Dormitory Authority, Refunding RB, Series D, 4.00%, 02/15/47 |
5,000 | 4,941,900 | ||||||
| New York Transportation Development Corp., RB, AMT, Sustainability Bonds, (AGM), 5.13%, 06/30/60 |
10,000 | 10,317,434 | ||||||
| Triborough Bridge & Tunnel Authority, RB, Series A, 4.50%, 05/15/63 |
8,264 | 8,405,062 | ||||||
|
|
|
|||||||
| 27,380,041 | ||||||||
| Pennsylvania — 2.2% | ||||||||
| Pennsylvania Turnpike Commission, Refunding RB, Series B, 5.25%, 12/01/52 |
4,995 | 5,512,812 | ||||||
|
|
|
|||||||
| South Carolina — 4.2% | ||||||||
| Patriots Energy Group Financing Agency, Refunding RB, Series B-1, 5.25%, 02/01/54 |
10,005 | 10,794,995 | ||||||
|
|
|
|||||||
| Total Municipal Bonds Transferred to Tender Option Bond Trusts — 21.4% |
|
54,629,543 | ||||||
|
|
|
|||||||
| Total Long-Term Investments — 137.1% |
|
349,217,456 | ||||||
|
|
|
|||||||
| Security |
Shares |
Value | ||||||
|
|
||||||||
| Short-Term Securities |
||||||||
| Money Market Funds — 5.9% | ||||||||
| BlackRock Liquidity Funds, MuniCash, Institutional Class, 4.09%(e)(f) |
14,979,877 | $ | 14,981,375 | |||||
|
|
|
|||||||
| Total Short-Term Securities — 5.9% |
|
14,981,375 | ||||||
|
|
|
|||||||
| Total Investments — 143.0% |
|
364,198,831 | ||||||
| Other Assets Less Liabilities — 0.9% |
|
2,242,575 | ||||||
| Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (13.3)% |
|
(33,760,007 | ) | |||||
| VMTP Shares at Liquidation Value, Net of Deferred Offering Costs — (30.6)% |
|
(78,000,000 | ) | |||||
|
|
|
|||||||
| Net Assets Applicable to Common Shares — 100.0% |
|
$ | 254,681,399 | |||||
|
|
|
|||||||
| (a) | Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available. |
| (b) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors. |
| (c) | Zero-coupon bond. |
| (d) | Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Trust. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details. |
| (e) | Affiliate of the Trust. |
| (f) | Annualized 7-day yield as of period end. |
Affiliates
Investments in issuers considered to be affiliate(s) of the Trust during the six months ended January 31, 2024 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:
| Affiliated Issuer | Value at 07/31/23 |
Purchases at Cost |
Proceeds from Sale |
Net Realized Gain (Loss) |
Change in Unrealized Appreciation (Depreciation) |
Value at 01/31/24 |
Shares Held at 01/31/24 |
Income | Capital Gain Distributions from Underlying Funds |
|||||||||||||||||||||||||||
| BlackRock Liquidity Funds, MuniCash, Institutional Class |
$ | 43,517,069 | $ | — | $ | (28,538,714)(a) | $ | 5,339 | $ | (2,319 | ) | $ | 14,981,375 | 14,979,877 | $ | 425,895 | $ | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
| (a) | Represents net amount purchased (sold). |
| S C H E D U L E O F I N V E S T M E N T S |
47 |
| Schedule of Investments (unaudited) (continued) January 31, 2024 |
BlackRock MuniHoldings Quality Fund II, Inc. (MUE) |
Fair Value Hierarchy as of Period End
Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Trust’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.
The following table summarizes the Trust’s financial instruments categorized in the fair value hierarchy. The breakdown of the Trust’s financial instruments into major categories is disclosed in the Schedule of Investments above.
|
|
||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
|
||||||||||||||||
| Assets |
||||||||||||||||
| Investments |
||||||||||||||||
| Long-Term Investments |
||||||||||||||||
| Municipal Bonds |
$ | — | $ | 294,587,913 | $ | — | $ | 294,587,913 | ||||||||
| Municipal Bonds Transferred to Tender Option Bond Trusts |
— | 54,629,543 | — | 54,629,543 | ||||||||||||
| Short-Term Securities |
||||||||||||||||
| Money Market Funds |
14,981,375 | — | — | 14,981,375 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | 14,981,375 | $ | 349,217,456 | $ | — | $ | 364,198,831 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
The Trust may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the fair value hierarchy as follows:
|
|
||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
|
|
||||||||||||||||
| Liabilities |
||||||||||||||||
| TOB Trust Certificates |
$ | — | $ | (33,591,657 | ) | $ | — | $ | (33,591,657 | ) | ||||||
| VMTP Shares at Liquidation Value |
— | (78,000,000 | ) | — | (78,000,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | — | $ | (111,591,657 | ) | $ | — | $ | (111,591,657) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
See notes to financial statements.
| 48 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Assets and Liabilities (unaudited)
January 31, 2024
| BFZ | BTT | BYM | MUC | |||||||||||||
|
|
||||||||||||||||
| ASSETS |
||||||||||||||||
| Investments, at value — unaffiliated(a) |
$ | 591,099,454 | $ | 2,402,949,701 | $ | 488,190,598 | $ | 1,803,551,605 | ||||||||
| Investments, at value — affiliated(b) |
22,564,316 | 8,146,639 | 2,454,049 | 54,785,727 | ||||||||||||
| Cash pledged for futures contracts |
— | — | — | 1,276,000 | ||||||||||||
| Receivables: |
||||||||||||||||
| Investments sold |
248,600 | 4,944,933 | 1,821,246 | 15,000 | ||||||||||||
| TOB Trust |
— | — | 2,323,787 | — | ||||||||||||
| Dividends — affiliated |
24,908 | 9,303 | 8,663 | 68,255 | ||||||||||||
| Interest — unaffiliated |
7,485,316 | 21,228,941 | 4,422,897 | 21,473,619 | ||||||||||||
| Prepaid expenses |
268,554 | 17,319 | 8,022 | 9,213 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total assets |
621,691,148 | 2,437,296,836 | 499,229,262 | 1,881,179,419 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| ACCRUED LIABILITIES |
||||||||||||||||
| Bank overdraft |
— | 794,462 | 4,680 | 1,150 | ||||||||||||
| Payables: |
||||||||||||||||
| Investments purchased |
20,768,784 | — | 6,467,902 | — | ||||||||||||
| Accounting services fees |
12,343 | 65,060 | 18,287 | 54,327 | ||||||||||||
| Capital shares redeemed |
— | 1,684,338 | — | — | ||||||||||||
| Custodian fees |
1,866 | 6,312 | 1,328 | 4,733 | ||||||||||||
| Income dividend distributions — Common Shares |
1,533,246 | 3,147,242 | 1,359,925 | 4,567,920 | ||||||||||||
| Interest expense and fees |
263,250 | 793,644 | 426,359 | 782,354 | ||||||||||||
| Investment advisory fees |
278,131 | 826,476 | 226,926 | 870,719 | ||||||||||||
| Trustees’ and Officer’s fees |
63,285 | 5,637 | 42,372 | 545,431 | ||||||||||||
| Other accrued expenses |
18,201 | 12,589 | 5,613 | 5,693 | ||||||||||||
| Professional fees |
30,300 | 42,414 | 23,405 | 44,525 | ||||||||||||
| Transfer agent fees |
9,669 | 38,315 | 15,048 | 22,449 | ||||||||||||
| Variation margin on futures contracts |
— | — | — | 436,822 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total accrued liabilities |
22,979,075 | 7,416,489 | 8,591,845 | 7,336,123 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| OTHER LIABILITIES |
||||||||||||||||
| TOB Trust Certificates |
35,140,000 | 69,569,982 | 61,981,882 | 147,184,992 | ||||||||||||
| RVMTP Shares, at liquidation value of $5,000,000 per share, net of deferred offering costs(c)(d)(e) |
— | 749,783,581 | — | — | ||||||||||||
| VMTP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)(e) |
171,300,000 | — | 97,600,000 | 526,400,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total other liabilities |
206,440,000 | 819,353,563 | 159,581,882 | 673,584,992 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total liabilities |
229,419,075 | 826,770,052 | 168,173,727 | 680,921,115 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Commitments and contingent liabilities |
||||||||||||||||
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
$ | 392,272,073 | $ | 1,610,526,784 | $ | 331,055,535 | $ | 1,200,258,304 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF |
||||||||||||||||
| Paid-in capital(f)(g)(h) |
$ | 425,611,826 | $ | 1,621,967,433 | $ | 356,256,975 | $ | 1,335,726,826 | ||||||||
| Accumulated loss |
(33,339,753 | ) | (11,440,649 | ) | (25,201,440 | ) | (135,468,522 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
$ | 392,272,073 | $ | 1,610,526,784 | $ | 331,055,535 | $ | 1,200,258,304 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net asset value per Common Share |
$ | 13.05 | $ | 23.94 | $ | 12.78 | $ | 12.74 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (a) Investments, at cost — unaffiliated |
$ | 571,850,191 | $ | 2,420,401,068 | $ | 465,412,657 | $ | 1,744,431,307 | ||||||||
| (b) Investments, at cost — affiliated |
$ | 22,562,968 | $ | 8,146,335 | $ | 2,453,792 | $ | 54,783,135 | ||||||||
| (c) Preferred Shares outstanding |
1,713 | 150 | 976 | 5,264 | ||||||||||||
| (d) Preferred Shares authorized |
1,713 | 150 | Unlimited | 20,864 | ||||||||||||
| (e) Par value per Preferred Share |
$ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.10 | ||||||||
| (f) Common Shares outstanding |
30,063,645 | 67,286,133 | 25,903,340 | 94,183,923 | ||||||||||||
| (g) Common Shares authorized |
Unlimited | Unlimited | Unlimited | 199,979,136 | ||||||||||||
| (h) Par value per Common Share |
$ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.10 | ||||||||
See notes to financial statements.
| F I N A N C I A L S T A T E M E N T S |
49 |
Statements of Assets and Liabilities (unaudited) (continued)
January 31, 2024
| MUE | ||||
|
|
||||
| ASSETS |
| |||
| Investments, at value — unaffiliated(a) |
$ | 349,217,456 | ||
| Investments, at value — affiliated(b) |
14,981,375 | |||
| Receivables: |
||||
| Dividends — affiliated |
31,458 | |||
| Interest — unaffiliated |
3,433,084 | |||
| Prepaid expenses |
7,528 | |||
|
|
|
|||
| Total assets |
367,670,901 | |||
|
|
|
|||
| ACCRUED LIABILITIES |
||||
| Bank overdraft |
4,681 | |||
| Payables: |
||||
| Accounting services fees |
18,587 | |||
| Custodian fees |
1,413 | |||
| Income dividend distributions — Common Shares |
986,470 | |||
| Interest expense and fees |
168,350 | |||
| Investment advisory fees |
167,812 | |||
| Trustees’ and Officer’s fees |
928 | |||
| Other accrued expenses |
6,389 | |||
| Professional fees |
28,693 | |||
| Transfer agent fees |
14,522 | |||
|
|
|
|||
| Total accrued liabilities |
1,397,845 | |||
|
|
|
|||
| OTHER LIABILITIES |
||||
| TOB Trust Certificates |
33,591,657 | |||
| VMTP Shares, at liquidation value of $100,000 per share, net of deferred offering costs(c)(d)(e) |
78,000,000 | |||
|
|
|
|||
| Total other liabilities |
111,591,657 | |||
|
|
|
|||
| Total liabilities |
112,989,502 | |||
|
|
|
|||
| Commitments and contingent liabilities |
||||
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
$ | 254,681,399 | ||
|
|
|
|||
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS CONSIST OF |
||||
| Paid-in capital(f)(g)(h) |
$ | 283,995,200 | ||
| Accumulated loss |
(29,313,801 | ) | ||
|
|
|
|||
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
$ | 254,681,399 | ||
|
|
|
|||
| Net asset value per Common Share |
$ | 11.62 | ||
|
|
|
|||
| (a) Investments, at cost — unaffiliated |
$ | 345,663,976 | ||
| (b) Investments, at cost — affiliated |
$ | 14,980,935 | ||
| (c) Preferred Shares outstanding |
780 | |||
| (d) Preferred Shares authorized |
9,490 | |||
| (e) Par value per Preferred Share |
$ | 0.10 | ||
| (f) Common Shares outstanding |
21,918,068 | |||
| (g) Common Shares authorized |
199,990,510 | |||
| (h) Par value per Common Share |
$ | 0.10 | ||
See notes to financial statements.
| 50 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Operations (unaudited)
Six Months Ended January 31, 2024
| BFZ | BTT | BYM | MUC | |||||||||||||
|
|
||||||||||||||||
| INVESTMENT INCOME |
||||||||||||||||
| Dividends — affiliated |
$ | 132,931 | $ | 763,161 | $ | 220,301 | $ | 581,068 | ||||||||
| Interest — unaffiliated |
12,304,387 | 41,846,977 | 11,149,139 | 38,091,800 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total investment income |
12,437,318 | 42,610,138 | 11,369,440 | 38,672,868 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| EXPENSES |
||||||||||||||||
| Investment advisory |
1,617,997 | 4,890,978 | 1,345,726 | 4,962,526 | ||||||||||||
| Professional |
47,845 | 62,286 | 39,754 | 52,277 | ||||||||||||
| Printing and postage |
23,517 | 7,140 | 7,380 | 6,461 | ||||||||||||
| Accounting services |
23,139 | 123,271 | 34,298 | 98,216 | ||||||||||||
| Transfer agent |
17,489 | 32,695 | 21,125 | 24,233 | ||||||||||||
| Trustees and Officer |
16,990 | 49,623 | 13,927 | 71,056 | ||||||||||||
| Registration |
5,195 | 12,284 | 4,585 | 27,742 | ||||||||||||
| Custodian |
3,465 | 12,405 | 3,266 | 9,249 | ||||||||||||
| Miscellaneous |
33,092 | 38,267 | 33,480 | 39,628 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses excluding interest expense, fees and amortization of offering costs |
1,788,729 | 5,228,949 | 1,503,541 | 5,291,388 | ||||||||||||
| Interest expense, fees and amortization of offering costs(a) |
4,501,884 | 18,520,134 | 4,050,967 | 13,944,676 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses |
6,290,613 | 23,749,083 | 5,554,508 | 19,236,064 | ||||||||||||
| Less: |
||||||||||||||||
| Fees waived and/or reimbursed by the Manager |
(5,008 | ) | (21,110 | ) | (6,077 | ) | (23,401 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total expenses after fees waived and/or reimbursed |
6,285,605 | 23,727,973 | 5,548,431 | 19,212,663 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net investment income |
6,151,713 | 18,882,165 | 5,821,009 | 19,460,205 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| REALIZED AND UNREALIZED GAIN (LOSS) |
||||||||||||||||
| Net realized gain (loss) from: |
||||||||||||||||
| Investments — unaffiliated |
(9,409,270 | ) | (557,333 | ) | (15,405,700 | ) | (45,251,998 | ) | ||||||||
| Investments — affiliated |
726 | 6,596 | 1,232 | 4,824 | ||||||||||||
| Futures contracts |
607,756 | — | 61,633 | (5,627,682 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (8,800,788 | ) | (550,737 | ) | (15,342,835 | ) | (50,874,856 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net change in unrealized appreciation (depreciation) on: |
||||||||||||||||
| Investments — unaffiliated |
10,939,380 | 18,758,788 | 16,739,106 | 58,317,759 | ||||||||||||
| Investments — affiliated |
751 | (3,813 | ) | 160 | (4,650 | ) | ||||||||||
| Futures contracts |
(281,360 | ) | — | 46,721 | (2,041,364 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 10,658,771 | 18,754,975 | 16,785,987 | 56,271,745 | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net realized and unrealized gain |
1,857,983 | 18,204,238 | 1,443,152 | 5,396,889 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS |
$ | 8,009,696 | $ | 37,086,403 | $ | 7,264,161 | $ | 24,857,094 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| (a) | Related to TOB Trusts, VMTP and/or RVMTP Shares. |
See notes to financial statements.
| F I N A N C I A L S T A T E M E N T S |
51 |
Statements of Operations (unaudited) (continued)
Six Months Ended January 31, 2024
| MUE | ||||
|
|
||||
| INVESTMENT INCOME |
||||
| Dividends — affiliated |
$ | 425,895 | ||
| Interest — unaffiliated |
7,856,441 | |||
|
|
|
|||
| Total investment income |
8,282,336 | |||
|
|
|
|||
| EXPENSES |
||||
| Investment advisory |
1,010,401 | |||
| Professional |
35,583 | |||
| Accounting services |
34,102 | |||
| Transfer agent |
15,662 | |||
| Trustees and Officer |
8,148 | |||
| Printing and postage |
7,007 | |||
| Registration |
4,239 | |||
| Custodian |
2,372 | |||
| Miscellaneous |
34,618 | |||
|
|
|
|||
| Total expenses excluding interest expense, fees and amortization of offering costs |
1,152,132 | |||
| Interest expense, fees and amortization of offering costs(a) |
3,004,969 | |||
|
|
|
|||
| Total expenses |
4,157,101 | |||
| Less: |
||||
| Fees waived and/or reimbursed by the Manager |
(21,666 | ) | ||
|
|
|
|||
| Total expenses after fees waived and/or reimbursed |
4,135,435 | |||
|
|
|
|||
| Net investment income |
4,146,901 | |||
|
|
|
|||
| REALIZED AND UNREALIZED GAIN (LOSS) |
||||
| Net realized gain (loss) from: |
||||
| Investments — unaffiliated |
(4,909,230 | ) | ||
| Investments — affiliated |
5,339 | |||
|
|
|
|||
| (4,903,891 | ) | |||
|
|
|
|||
| Net change in unrealized appreciation (depreciation) on: |
||||
| Investments — unaffiliated |
8,931,064 | |||
| Investments — affiliated |
(2,319 | ) | ||
|
|
|
|||
| 8,928,745 | ||||
|
|
|
|||
| Net realized and unrealized gain |
4,024,854 | |||
|
|
|
|||
| NET INCREASE IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS RESULTING FROM OPERATIONS |
$ | 8,171,755 | ||
|
|
|
|||
| (a) | Related to TOB Trusts, VMTP and/or RVMTP Shares. |
See notes to financial statements.
| 52 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets
| BFZ | BTT | |||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Six Months Ended 01/31/24 (unaudited) |
Year Ended 07/31/23 |
Six Months Ended 01/31/24 (unaudited) |
Year Ended 07/31/23 |
|||||||||||||||||
|
|
||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
||||||||||||||||||||
| OPERATIONS |
||||||||||||||||||||
| Net investment income |
$ | 6,151,713 | $ | 12,424,230 | $ | 18,882,165 | $ | 41,959,038 | ||||||||||||
| Net realized gain (loss) |
(8,800,788 | ) | (32,964,773 | ) | (550,737 | ) | 275,054 | |||||||||||||
| Net change in unrealized appreciation (depreciation) |
10,658,771 | 21,029,899 | 18,754,975 | (43,434,090 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations |
8,009,696 | 489,356 | 37,086,403 | (1,199,998 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| DISTRIBUTIONS TO COMMON SHAREHOLDERS(a) |
||||||||||||||||||||
| Decrease in net assets resulting from distributions to Common Shareholders |
(7,817,104 | ) | (14,023,248 | ) | (20,770,431 | ) | (49,647,696 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
| Redemption of shares resulting from share repurchase program (including transaction costs) |
(2,247,478 | ) | (9,389,525 | ) | (66,029,335 | ) | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
||||||||||||||||||||
| Total decrease in net assets applicable to Common Shareholders |
(2,054,886 | ) | (22,923,417 | ) | (49,713,363 | ) | (50,847,694 | ) | ||||||||||||
| Beginning of period |
394,326,959 | 417,250,376 | 1,660,240,147 | 1,711,087,841 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| End of period |
$ | 392,272,073 | $ | 394,326,959 | $ | 1,610,526,784 | $ | 1,660,240,147 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
See notes to financial statements.
| F I N A N C I A L S T A T E M E N T S |
53 |
Statements of Changes in Net Assets (continued)
| BYM | MUC | |||||||||||||||||||
|
|
|
|
|
|||||||||||||||||
| Six Months Ended 01/31/24 (unaudited) |
Year Ended 07/31/23 |
Six Months Ended 01/31/24 (unaudited) |
Year Ended 07/31/23 |
|||||||||||||||||
|
|
||||||||||||||||||||
| INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
||||||||||||||||||||
| OPERATIONS |
||||||||||||||||||||
| Net investment income |
$ | 5,821,009 | $ | 12,626,038 | $ | 19,460,205 | $ | 41,490,711 | ||||||||||||
| Net realized loss |
(15,342,835 | ) | (13,318,682 | ) | (50,874,856 | ) | (90,463,560 | ) | ||||||||||||
| Net change in unrealized appreciation (depreciation) |
16,785,987 | (8,073,977 | ) | 56,271,745 | 19,099,104 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations |
7,264,161 | (8,766,621 | ) | 24,857,094 | (29,873,745 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| DISTRIBUTIONS TO COMMON SHAREHOLDERS(a) |
||||||||||||||||||||
| From net investment income |
(6,693,614 | )(b) | (12,227,037 | ) | (21,879,721 | )(b) | (41,263,922 | ) | ||||||||||||
| Return of capital |
— | (1,290,853 | ) | — | (5,420,461 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Decrease in net assets resulting from distributions to Common Shareholders |
(6,693,614 | ) | (13,517,890 | ) | (21,879,721 | ) | (46,684,383 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| CAPITAL SHARE TRANSACTIONS |
||||||||||||||||||||
| Reinvestment of common distributions |
— | 89,709 | — | — | ||||||||||||||||
| Redemption of shares resulting from share repurchase program (including transaction costs) |
(3,332,710 | ) | (2,148,748 | ) | (12,545,146 | ) | (22,916,113 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| Net decrease in net assets derived from capital share transactions |
(3,332,710 | ) | (2,059,039 | ) | (12,545,146 | ) | (22,916,113 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
||||||||||||||||||||
| Total decrease in net assets applicable to Common Shareholders |
(2,762,163 | ) | (24,343,550 | ) | (9,567,773 | ) | (99,474,241 | ) | ||||||||||||
| Beginning of period |
333,817,698 | 358,161,248 | 1,209,826,077 | 1,309,300,318 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| End of period |
$ | 331,055,535 | $ | 333,817,698 | $ | 1,200,258,304 | $ | 1,209,826,077 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (b) | A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
See notes to financial statements.
| 54 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Changes in Net Assets (continued)
| MUE | ||||||||||||
|
|
|
|||||||||||
| Six Months Ended 01/31/24 (unaudited) |
Year Ended 07/31/23 |
|||||||||||
|
|
||||||||||||
| INCREASE (DECREASE) IN NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
||||||||||||
| OPERATIONS |
||||||||||||
| Net investment income |
$ | 4,146,901 | $ | 8,782,032 | ||||||||
| Net realized loss |
(4,903,891 | ) | (9,524,177 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) |
8,928,745 | (5,267,135 | ) | |||||||||
|
|
|
|
|
|||||||||
| Net increase (decrease) in net assets applicable to Common Shareholders resulting from operations |
8,171,755 | (6,009,280 | ) | |||||||||
|
|
|
|
|
|||||||||
| DISTRIBUTIONS TO COMMON SHAREHOLDERS(a) |
||||||||||||
| From net investment income |
(4,539,474 | )(b) | (8,710,452 | ) | ||||||||
| Return of capital |
— | (1,040,353 | ) | |||||||||
|
|
|
|
|
|||||||||
| Decrease in net assets resulting from distributions to Common Shareholders |
(4,539,474 | ) | (9,750,805 | ) | ||||||||
|
|
|
|
|
|||||||||
| CAPITAL SHARE TRANSACTIONS |
||||||||||||
| Redemption of shares resulting from share repurchase program (including transaction costs) |
(3,204,845 | ) | (2,549,564 | ) | ||||||||
|
|
|
|
|
|||||||||
| NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS |
||||||||||||
| Total increase (decrease) in net assets applicable to Common Shareholders |
427,436 | (18,309,649 | ) | |||||||||
| Beginning of period |
254,253,963 | 272,563,612 | ||||||||||
|
|
|
|
|
|||||||||
| End of period |
$ | 254,681,399 | $ | 254,253,963 | ||||||||
|
|
|
|
|
|||||||||
| (a) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (b) | A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
See notes to financial statements.
| F I N A N C I A L S T A T E M E N T S |
55 |
Statements of Cash Flows (unaudited)
Six Months Ended January 31, 2024
| BFZ | BTT | BYM | MUC | |||||||||||||
|
|
||||||||||||||||
| CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES |
||||||||||||||||
| Net increase in net assets resulting from operations |
$ | 8,009,696 | $ | 37,086,403 | $ | 7,264,161 | $ | 24,857,094 | ||||||||
| Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities: |
||||||||||||||||
| Proceeds from sales of long-term investments |
278,007,183 | 77,653,802 | 213,446,025 | 767,728,172 | ||||||||||||
| Purchases of long-term investments |
(257,236,671 | ) | (99,481,732 | ) | (194,912,408 | ) | (810,229,827 | ) | ||||||||
| Net proceeds from sales (purchases) of short-term securities |
(19,537,223 | ) | 78,178,647 | 5,193,318 | 7,110,791 | |||||||||||
| Amortization of premium and accretion of discount on investments and other fees |
579,877 | 6,625,952 | (1,107,407 | ) | 666,793 | |||||||||||
| Net realized loss on investments |
9,408,676 | 550,737 | 15,404,468 | 45,247,174 | ||||||||||||
| Net unrealized appreciation on investments |
(10,940,131 | ) | (18,754,975 | ) | (16,739,266 | ) | (58,313,109 | ) | ||||||||
| (Increase) Decrease in Assets |
||||||||||||||||
| Receivables |
||||||||||||||||
| Dividends — affiliated |
(18,356 | ) | 216,143 | 9,512 | 57,245 | |||||||||||
| Interest — unaffiliated |
431,427 | (628,550 | ) | 184,218 | 456,922 | |||||||||||
| Prepaid expenses |
(256,742 | ) | (3,557 | ) | 11,740 | 6,495 | ||||||||||
| Increase (Decrease) in Liabilities |
||||||||||||||||
| Payables |
||||||||||||||||
| Accounting services fees |
(7,402 | ) | (36,754 | ) | (11,015 | ) | (30,076 | ) | ||||||||
| Custodian fees |
(1,950 | ) | (3,902 | ) | (1,550 | ) | (4,168 | ) | ||||||||
| Interest expense and fees |
14,064 | 58,146 | 72,141 | (181,729 | ) | |||||||||||
| Investment advisory fees |
(2,156 | ) | (6,506 | ) | (11,675 | ) | 17,969 | |||||||||
| Trustees’ and Officer’s fees |
(16,949 | ) | (3,537 | ) | (19,125 | ) | (65,376 | ) | ||||||||
| Other accrued expenses |
12,740 | (4,705 | ) | (940 | ) | (648 | ) | |||||||||
| Professional fees |
(24,562 | ) | (6,107 | ) | (31,738 | ) | (29,420 | ) | ||||||||
| Proxy fees |
(211,948 | ) | — | — | — | |||||||||||
| Transfer agent fees |
(7,869 | ) | 539 | (1,103 | ) | (1,763 | ) | |||||||||
| Variation margin on futures contracts |
(33,007 | ) | — | (26,358 | ) | 436,822 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash provided by (used for) operating activities |
8,168,697 | 81,440,044 | 28,722,998 | (22,270,639 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES |
||||||||||||||||
| Cash dividends paid to Common Shareholders |
(6,305,219 | ) | (17,905,273 | ) | (5,380,104 | ) | (17,517,927 | ) | ||||||||
| Repayments of TOB Trust Certificates |
— | — | (30,363,241 | ) | (91,989,995 | ) | ||||||||||
| Net payments on Common Shares redeemed |
(2,247,478 | ) | (64,344,997 | ) | (3,464,416 | ) | (12,958,008 | ) | ||||||||
| Payments on redemption of VMTP Shares |
— | — | (39,600,000 | ) | — | |||||||||||
| Proceeds from TOB Trust Certificates |
— | — | 49,838,099 | 139,184,992 | ||||||||||||
| Increase (decrease) in bank overdraft |
— | 794,462 | (58,336 | ) | 1,150 | |||||||||||
| Amortization of deferred offering costs |
— | 15,764 | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net cash provided by (used for) for financing activities |
(8,552,697 | ) | (81,440,044 | ) | (29,027,998 | ) | 16,720,212 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| CASH |
||||||||||||||||
| Net decrease in restricted and unrestricted cash |
(384,000 | ) | — | (305,000 | ) | (5,550,427 | ) | |||||||||
| Restricted and unrestricted cash at beginning of period |
384,000 | — | 305,000 | 6,826,427 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Restricted and unrestricted cash at end of period |
$ | — | $ | — | $ | — | $ | 1,276,000 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
||||||||||||||||
| Cash paid during the period for interest expense |
$ | 4,487,820 | $ | 18,446,224 | $ | 3,978,826 | $ | 14,126,405 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENTS OF ASSETS AND LIABILITIES |
||||||||||||||||
| Cash pledged |
||||||||||||||||
| Futures contracts |
— | — | — | 1,276,000 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| $ | — | $ | — | $ | — | $ | 1,276,000 | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
See notes to financial statements.
| 56 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Statements of Cash Flows (unaudited) (continued)
Six Months Ended January 31, 2024
| MUE | ||||
|
|
||||
| CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES |
||||
| Net increase in net assets resulting from operations |
$ | 8,171,755 | ||
| Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: |
||||
| Proceeds from sales of long-term investments |
118,977,288 | |||
| Purchases of long-term investments |
(122,646,237 | ) | ||
| Net proceeds from sales of short-term securities |
33,587,864 | |||
| Amortization of premium and accretion of discount on investments and other fees |
444,758 | |||
| Net realized loss on investments |
4,903,891 | |||
| Net unrealized appreciation on investments |
(8,928,745 | ) | ||
| (Increase) Decrease in Assets |
||||
| Receivables |
||||
| Dividends — affiliated |
64,415 | |||
| Interest — unaffiliated |
6,255 | |||
| Prepaid expenses |
12,484 | |||
| Increase (Decrease) in Liabilities |
||||
| Payables |
||||
| Accounting services fees |
(10,323 | ) | ||
| Custodian fees |
(1,219 | ) | ||
| Interest expense and fees |
73,273 | |||
| Investment advisory fees |
(11,807 | ) | ||
| Trustees’ and Officer’s fees |
(602 | ) | ||
| Other accrued expenses |
695 | |||
| Professional fees |
(29,713 | ) | ||
| Transfer agent fees |
(1,395 | ) | ||
|
|
|
|||
| Net cash provided by operating activities |
34,612,637 | |||
|
|
|
|||
| CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES |
||||
| Cash dividends paid to Common Shareholders |
(3,583,269 | ) | ||
| Repayments of TOB Trust Certificates |
(5,753,476 | ) | ||
| Net payments on Common Shares redeemed |
(3,313,391 | ) | ||
| Payments on redemption of VMTP Shares |
(53,000,000 | ) | ||
| Proceeds from TOB Trust Certificates |
31,091,657 | |||
| Decrease in bank overdraft |
(54,158 | ) | ||
|
|
|
|||
| Net cash used for financing activities |
(34,612,637 | ) | ||
|
|
|
|||
| CASH |
||||
| Net increase in restricted and unrestricted cash |
— | |||
| Restricted and unrestricted cash at beginning of period |
— | |||
|
|
|
|||
| Restricted and unrestricted cash at end of period |
$ | — | ||
|
|
|
|||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION |
||||
| Cash paid during the period for interest expense |
$ | 2,931,696 | ||
|
|
|
|||
See notes to financial statements.
| F I N A N C I A L S T A T E M E N T S |
57 |
(For a share outstanding throughout each period)
| BFZ | ||||||||||||||||||||||||||
| Six Months Ended |
|
|||||||||||||||||||||||||
| 01/31/24 | Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||||||||||
| (unaudited) | 07/31/23 | 07/31/22 | 07/31/21 | 07/31/20 | 07/31/19 | |||||||||||||||||||||
| Net asset value, beginning of period |
$ | 13.03 | $ | 13.41 | $ | 16.29 | $ | 15.86 | $ | 15.25 | $ | 14.81 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net investment income(a) |
0.20 | 0.41 | 0.53 | 0.54 | 0.48 | 0.52 | ||||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.33 | ) | (2.82 | ) | 0.37 | 0.60 | 0.63 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net increase (decrease) from investment operations |
0.28 | 0.08 | (2.29 | ) | 0.91 | 1.08 | 1.15 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Distributions to Common Shareholders(b) |
||||||||||||||||||||||||||
| From net investment income |
(0.26 | ) | (0.46 | ) | (0.51 | ) | (0.48 | ) | (0.47 | ) | (0.55 | ) | ||||||||||||||
| From net realized gain |
— | — | (0.08 | ) | — | — | (0.16 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total distributions to Common Shareholders |
(0.26 | ) | (0.46 | ) | (0.59 | ) | (0.48 | ) | (0.47 | ) | (0.71 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net asset value, end of period |
$ | 13.05 | $ | 13.03 | $ | 13.41 | $ | 16.29 | $ | 15.86 | $ | 15.25 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Market price, end of period |
$ | 11.80 | $ | 11.59 | $ | 11.65 | $ | 15.01 | $ | 13.79 | $ | 13.50 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Return Applicable to Common Shareholders(c) |
||||||||||||||||||||||||||
| Based on net asset value |
2.49 | %(d) | 1.20 | % | (13.93 | )% | 6.24 | % | 7.69 | % | 8.89 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Based on market price |
4.19 | %(d) | 3.62 | % | (18.85 | )% | 12.59 | % | 5.77 | % | 11.96 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders(e) |
||||||||||||||||||||||||||
| Total expenses |
3.30 | %(f) | 2.95 | %(g) | 1.67 | % | 1.49 | % | 2.17 | % | 2.76 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total expenses after fees waived and/or reimbursed |
3.30 | %(f) | 2.95 | %(g) | 1.67 | % | 1.49 | % | 2.17 | % | 2.76 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs(h) |
0.94 | %(f) | 1.05 | %(g) | 1.02 | % | 1.01 | % | 1.02 | % | 1.06 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net investment income to Common Shareholders |
3.23 | %(f) | 3.17 | % | 3.56 | % | 3.37 | % | 3.14 | % | 3.56 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Supplemental Data |
||||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 392,272 | $ | 394,327 | $ | 417,250 | $ | 510,656 | $ | 500,353 | $ | 486,586 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 171,300 | $ | 171,300 | $ | 171,300 | $ | 171,300 | $ | 171,300 | $ | 171,300 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |
$ | 290,017 | (i) | $ | 291,013 | (i) | $ | 254,015 | (i) | $ | 398,106 | (j) | $ | 392,092 | (j) | $ | 384,055 | (j) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| TOB Trust Certificates, end of period (000) |
$ | 35,140 | $ | 35,140 | $ | 99,616 | $ | 143,276 | $ | 143,276 | $ | 156,312 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Asset coverage per $1,000 of TOB Trust Certificates, end of period(k) |
$ | 17,038 | $ | 17,096 | $ | 6,908 | N/A | N/A | N/A | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Portfolio turnover rate |
48 | % | 94 | % | 59 | % | 19 | % | 38 | % | 51 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| (a) | Based on average Common Shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
| (d) | Not annualized. |
| (e) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (f) | Annualized. |
| (g) | Includes non-recurring expenses of proxy costs. Without these costs, total expenses, total expenses after fees waived and/or reimbursed and total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs would have been 2.86%, 2.86% and 0.96%, respectively. |
| (h) | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details. |
| (i) | Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares and TOBs) from the Trust’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VMTP Shares, and by multiplying the results by 100,000. |
| (j) | Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares) from the Trust’s total assets and dividing this by the liquidation value of the VMTP Shares, and by multiplying the results by 100,000. |
| (k) | Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares and TOBs) from the Trust’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000. |
See notes to financial statements.
| 58 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| BTT | ||||||||||||||||||||||||||
| Six Months Ended 01/31/24 (unaudited) |
|
|
Year Ended 07/31/23 |
|
|
Year Ended 07/31/22 |
|
|
Year Ended 07/31/21 |
|
|
Year Ended 07/31/20 |
|
|
Year Ended 07/31/19 |
| ||||||||||
| Net asset value, beginning of period |
$ | 23.55 | $ | 24.27 | $ | 27.32 | $ | 26.31 | $ | 25.60 | $ | 23.62 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net investment income(a) |
0.27 | 0.60 | 0.93 | 1.00 | 0.92 | 0.80 | ||||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.42 | (0.62 | ) | (3.23 | ) | 0.76 | 0.54 | 1.93 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net increase (decrease) from investment operations |
0.69 | (0.02 | ) | (2.30 | ) | 1.76 | 1.46 | 2.73 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Distributions to Common Shareholders from net investment income(b) |
(0.30 | ) | (0.70 | ) | (0.75 | ) | (0.75 | ) | (0.75 | ) | (0.75 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net asset value, end of period |
$ | 23.94 | $ | 23.55 | $ | 24.27 | $ | 27.32 | $ | 26.31 | $ | 25.60 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Market price, end of period |
$ | 21.36 | $ | 21.00 | $ | 23.65 | $ | 26.27 | $ | 24.78 | $ | 23.49 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total Return Applicable to Common Shareholders(c) |
||||||||||||||||||||||||||
| Based on net asset value |
3.15 | %(d) | 0.29 | % | (8.41 | )% | 6.92 | % | 6.04 | % | 12.17 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Based on market price |
3.21 | %(d) | (8.22 | )% | (7.17 | )% | 9.16 | % | 8.84 | % | 13.45 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders(e) | ||||||||||||||||||||||||||
| Total expenses |
2.93 | %(f) | 2.52 | % | 1.17 | % | 1.01 | % | 1.56 | % | 2.07 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total expenses after fees waived and/or reimbursed |
2.93 | %(f) | 2.52 | % | 1.17 | % | 1.01 | % | 1.56 | % | 2.07 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs(g) |
0.64 | %(f) | 0.64 | % | 0.65 | % | 0.65 | % | 0.67 | % | 0.69 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Net investment income to Common Shareholders |
2.33 | %(f) | 2.54 | % | 3.64 | % | 3.74 | % | 3.60 | % | 3.31 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Supplemental Data |
||||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 1,610,527 | $ | 1,660,240 | $ | 1,711,088 | $ | 1,926,028 | $ | 1,854,873 | $ | 1,804,738 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| RVMTP Shares outstanding at $5,000,000 liquidation value, end of period (000) |
$ | 750,000 | $ | 750,000 | $ | 750,000 | $ | 750,000 | $ | 750,000 | $ | 750,000 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Asset coverage per RVMTP Shares at $5,000,000 liquidation value, end of period |
$ | 14,825,438 | (h) | $ | 15,128,727 | (h) | $ | 13,753,263 | (h) | $ | 17,840,188 | (i) | $ | 17,365,817 | (i) | $ | 17,031,589 | (i) | ||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| TOB Trust Certificates, end of period (000) |
$ | 69,570 | $ | 69,570 | $ | 227,400 | $ | 233,220 | $ | 261,820 | $ | 261,820 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Asset coverage per $1,000 of TOB Trust Certificates, end of period(j) |
$ | 34,927 | $ | 35,641 | $ | 11,822 | N/A | N/A | N/A | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Portfolio turnover rate |
3 | % | 13 | % | 17 | % | 9 | % | 5 | % | 21 | % | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| (a) | Based on average Common Shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
| (d) | Not annualized. |
| (e) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (f) | Annualized. |
| (g) | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or RVMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details. |
| (h) | Calculated by subtracting the Trust’s total liabilities (not including RVMTP Shares and TOBs) from the Trust’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the RVMTP Shares, and by multiplying the results by 5,000,000. |
| (i) | Calculated by subtracting the Trust’s total liabilities (not including RVMTP Shares) from the Trust’s total assets and dividing this by the liquidation value of the RVMTP Shares, and by multiplying the results by 5,000,000. |
| (j) | Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Trust’s total liabilities (not including RVMTP Shares and TOBs) from the Trust’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000. |
See notes to financial statements.
| F I N A N C I A L H I G H L I G H T S |
59 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| BYM | ||||||||||||||||||||||||||||||
| Six Months Ended 01/31/24 (unaudited) |
|
|
Year Ended 07/31/23 |
|
|
Period from 09/01/21 to 07/31/22 |
|
|
Year Ended 08/31/21 |
|
|
Year Ended 08/31/20 |
|
|
Year Ended 08/31/19 |
|
|
Year Ended 08/31/18 |
| |||||||||||
| Net asset value, beginning of period |
$ | 12.73 | $ | 13.56 | $ | 15.95 | $ | 15.57 | $ | 15.72 | $ | 14.70 | $ | 15.32 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net investment income(a) |
0.22 | 0.48 | 0.58 | 0.70 | 0.66 | 0.61 | 0.67 | |||||||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.09 | (0.80 | ) | (2.33 | ) | 0.37 | (0.23 | ) | 1.04 | (0.62 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net increase (decrease) from investment operations |
0.31 | (0.32 | ) | (1.75 | ) | 1.07 | 0.43 | 1.65 | 0.05 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Distributions to Common Shareholders(b) |
||||||||||||||||||||||||||||||
| From net investment income |
(0.26 | )(c) | (0.46 | ) | (0.64 | ) | (0.69 | ) | (0.58 | ) | (0.63 | ) | (0.67 | ) | ||||||||||||||||
| Return of capital |
— | (0.05 | ) | — | — | — | — | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total distributions to Common Shareholders |
(0.26 | ) | (0.51 | ) | (0.64 | ) | (0.69 | ) | (0.58 | ) | (0.63 | ) | (0.67 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net asset value, end of period |
$ | 12.78 | $ | 12.73 | $ | 13.56 | $ | 15.95 | $ | 15.57 | $ | 15.72 | $ | 14.70 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Market price, end of period |
$ | 11.29 | $ | 11.23 | $ | 13.34 | $ | 16.06 | $ | 14.19 | $ | 14.19 | $ | 13.09 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Return Applicable to Common Shareholders(d) |
||||||||||||||||||||||||||||||
| Based on net asset value |
2.83 | %(e) | (1.81 | )% | (10.99 | )%(e) | 7.14 | % | 3.20 | % | 12.12 | % | 0.80 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Based on market price |
2.97 | %(e) | (11.95 | )% | (13.04 | )%(e) | 18.36 | % | 4.19 | % | 13.66 | % | (7.34 | )% | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders(f) | ||||||||||||||||||||||||||||||
| Total expenses |
3.48 | %(g) | 3.15 | % | 1.68 | %(g) | 1.49 | % | 2.02 | % | 2.53 | % | 2.23 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total expenses after fees waived and/or reimbursed |
3.48 | %(g) | 3.15 | % | 1.68 | %(g) | 1.49 | % | 2.02 | % | 2.53 | % | 2.23 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs(h) |
0.94 | %(g) | 0.96 | % | 0.97 | %(g) | 0.96 | % | 0.98 | % | 0.98 | % | 0.97 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net investment income to Common Shareholders |
3.65 | %(g) | 3.79 | % | 4.35 | %(g) | 4.41 | % | 4.31 | % | 4.13 | % | 4.50 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Supplemental Data |
||||||||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 331,056 | $ | 333,818 | $ | 358,161 | $ | 421,245 | $ | 411,138 | $ | 415,127 | $ | 388,149 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 97,600 | $ | 137,200 | $ | 137,200 | $ | 137,200 | $ | 137,200 | $ | 137,200 | $ | 137,200 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |
$ | 307,452 | (i) | $ | 288,190 | (i) | $ | 258,385 | (i) | $ | 407,030 | (j) | $ | 399,664 | (j) | $ | 402,571 | (j) | $ | 382,907 | (j) | |||||||||
|
|
|
|
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|
|
|
|
|
|
|
|
|||||||||||||||||
| TOB Trust Certificates, end of period (000) |
$ | 61,982 | $ | 40,183 | $ | 88,933 | $ | 107,358 | $ | 121,029 | $ | 118,726 | $ | 111,781 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Asset coverage per $1,000 of TOB Trust Certificates, end of period(k) |
$ | 7,916 | $ | 12,722 | $ | 6,570 | N/A | N/A | N/A | N/A | ||||||||||||||||||||
|
|
|
|
|
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|
|
|
|
|
|
|
|||||||||||||||||
| Portfolio turnover rate |
41 | % | 26 | % | 32 | % | 5 | % | 13 | % | 15 | % | 30 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (a) | Based on average Common Shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
| (d) | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
| (e) | Not annualized. |
| (f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (g) | Annualized. |
| (h) | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details. |
| (i) | Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares and TOBs) from the Trust’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VMTP Shares, and by multiplying the results by 100,000. |
| (j) | Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares) from the Trust’s total assets and dividing this by the liquidation value of the VMTP Shares, and by multiplying the results by 100,000. |
| (k) | Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares and TOBs) from the Trust’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000. |
See notes to financial statements.
| 60 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| MUC | ||||||||||||||||||||||||||||
| Six Months Ended 01/31/24 (unaudited) |
Year Ended 07/31/23 |
Year Ended 07/31/22 |
Year Ended 07/31/21 |
Year Ended 07/31/20 |
Year Ended 07/31/19 |
|||||||||||||||||||||||
| Net asset value, beginning of period |
$ | 12.68 | $ | 13.42 | $ | 16.16 | $ | 15.95 | $ | 15.56 | $ | 15.03 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net investment income(a) |
0.21 | 0.43 | 0.58 | 0.65 | 0.58 | 0.57 | ||||||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.08 | (0.69 | ) | (2.66 | ) | 0.21 | 0.35 | 0.54 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net increase (decrease) from investment operations |
0.29 | (0.26 | ) | (2.08 | ) | 0.86 | 0.93 | 1.11 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Distributions to Common Shareholders(b) |
||||||||||||||||||||||||||||
| From net investment income |
(0.23 | )(c) | (0.42 | ) | (0.66 | ) | (0.65 | ) | (0.54 | ) | (0.57 | ) | ||||||||||||||||
| From net realized gain |
— | — | — | — | — | (0.01 | ) | |||||||||||||||||||||
| Return of capital |
— | (0.06 | ) | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total distributions to Common Shareholders |
(0.23 | ) | (0.48 | ) | (0.66 | ) | (0.65 | ) | (0.54 | ) | (0.58 | ) | ||||||||||||||||
|
|
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|
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|
|
|
|
|
|
|
|
|||||||||||||||||
| Net asset value, end of period |
$ | 12.74 | $ | 12.68 | $ | 13.42 | $ | 16.16 | $ | 15.95 | $ | 15.56 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Market price, end of period |
$ | 11.14 | $ | 10.85 | $ | 12.58 | $ | 16.09 | $ | 14.67 | $ | 14.00 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Return Applicable to Common Shareholders(d) |
||||||||||||||||||||||||||||
| Based on net asset value |
2.71 | %(e) | (1.27 | )% | (12.92 | )% | 5.78 | % | 6.55 | % | 8.17 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Based on market price |
4.96 | %(e) | (9.87 | )% | (18.01 | )% | 14.52 | % | 8.92 | % | 11.92 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders(f) |
||||||||||||||||||||||||||||
| Total expenses |
3.32 | %(g) | 2.93 | % | 1.75 | %(h) | 1.46 | % | 2.11 | % | 2.58 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total expenses after fees waived and/or reimbursed |
3.32 | %(g) | 2.87 | % | 1.69 | %(h) | 1.41 | % | 2.05 | % | 2.50 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total expenses after fees waived and/or reimbursed and excluding interest expense, fees and amortization of offering costs(i) |
0.91 | %(g) | 0.89 | % | 0.96 | %(h) | 0.92 | % | 0.92 | % | 0.92 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net investment income to Common Shareholders |
3.36 | %(g) | 3.42 | % | 4.08 | % | 4.11 | % | 3.75 | % | 3.82 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Supplemental Data |
||||||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 1,200,258 | $ | 1,209,826 | $ | 1,309,300 | $ | 662,892 | $ | 653,836 | $ | 637,822 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 526,400 | $ | 526,400 | $ | 526,400 | $ | 254,000 | $ | 254,000 | $ | 254,000 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |
$ | 278,190 | (j) | $ | 293,143 | (j) | $ | 249,806 | (j) | $ | 360,981 | (k) | $ | 357,416 | (k) | $ | 351,111 | (k) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| TOB Trust Certificates, end of period (000) |
$ | 147,185 | $ | 99,990 | $ | 347,600 | $ | 152,145 | $ | 158,512 | $ | 159,555 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Asset coverage per $1,000 of TOB Trust Certificates, end of period(l) |
$ | 12,731 | $ | 18,364 | $ | 6,281 | N/A | N/A | N/A | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Portfolio turnover rate |
44 | % | 47 | % | 41 | % | 4 | % | 16 | % | 24 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (a) | Based on average Common Shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
| (d) | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
| (e) | Not annualized. |
| (f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (g) | Annualized. |
| (h) | Includes non-recurring expenses of reorganization costs. Without these costs, total expenses, total expenses after fees waived and/or reimbursed and total expenses after fees waived and/or reimbursed and excluding interest expense, fees, and amortization of offering costs, would have been 1.71%, 1.65% and 0.92%, respectively. |
| (i) | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details. |
| (j) | Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares and TOBs) from the Trust’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VMTP Shares, and by multiplying the results by 100,000. |
| (k) | Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares) from the Trust’s total assets and dividing this by the liquidation value of the VMTP Shares, and by multiplying the results by 100,000. |
| (l) | Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares and TOBs) from the Trust’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000. |
See notes to financial statements.
| F I N A N C I A L H I G H L I G H T S |
61 |
Financial Highlights (continued)
(For a share outstanding throughout each period)
| MUE | ||||||||||||||||||||||||||||
| Six Months Ended 01/31/24 (unaudited) |
Year Ended 07/31/23 |
Year Ended 07/31/22 |
Year Ended 07/31/21 |
Year Ended 07/31/20 |
Year Ended 07/31/19 |
|||||||||||||||||||||||
| Net asset value, beginning of period |
$ | 11.42 | $ | 12.10 | $ | 14.49 | $ | 14.17 | $ | 13.92 | $ | 13.55 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net investment income(a) |
0.19 | 0.39 | 0.56 | 0.65 | 0.59 | 0.57 | ||||||||||||||||||||||
| Net realized and unrealized gain (loss) |
0.22 | (0.64 | ) | (2.32 | ) | 0.28 | 0.20 | 0.40 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net increase (decrease) from investment operations |
0.41 | (0.25 | ) | (1.76 | ) | 0.93 | 0.79 | 0.97 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Distributions to Common Shareholders(b) |
||||||||||||||||||||||||||||
| From net investment income |
(0.21 | )(c) | (0.38 | ) | (0.63 | ) | (0.61 | ) | (0.54 | ) | (0.60 | ) | ||||||||||||||||
| Return of capital |
— | (0.05 | ) | — | — | — | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total distributions to Common Shareholders |
(0.21 | ) | (0.43 | ) | (0.63 | ) | (0.61 | ) | (0.54 | ) | (0.60 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net asset value, end of period |
$ | 11.62 | $ | 11.42 | $ | 12.10 | $ | 14.49 | $ | 14.17 | $ | 13.92 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Market price, end of period |
$ | 9.88 | $ | 9.93 | $ | 11.45 | $ | 14.41 | $ | 13.12 | $ | 12.67 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total Return Applicable to Common Shareholders(d) |
||||||||||||||||||||||||||||
| Based on net asset value |
3.96 | %(e) | (1.48 | )% | (12.21 | )% | 6.97 | % | 6.25 | % | 7.96 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Based on market price |
1.65 | %(e) | (9.47 | )% | (16.47 | )% | 14.89 | % | 8.08 | % | 7.72 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Ratios to Average Net Assets Applicable to Common Shareholders(f) |
||||||||||||||||||||||||||||
| Total expenses |
3.36 | %(g) | 3.33 | % | 1.75 | % | 1.51 | % | 2.07 | % | 2.48 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total expenses after fees waived and/or reimbursed |
3.35 | %(g) | 3.29 | % | 1.69 | % | 1.48 | % | 2.03 | % | 2.45 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total expenses after fees waived and/or reimbursed and excluding interest expense,fees and amortization of offering costs(h) |
0.91 | %(g) | 0.95 | % | 0.95 | % | 0.93 | % | 0.95 | % | 0.95 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Net investment income to Common Shareholders |
3.36 | %(g) | 3.44 | % | 4.25 | % | 4.55 | % | 4.29 | % | 4.23 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Supplemental Data |
||||||||||||||||||||||||||||
| Net assets applicable to Common Shareholders, end of period (000) |
$ | 254,681 | $ | 254,254 | $ | 272,564 | $ | 326,390 | $ | 319,085 | $ | 313,406 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| VMTP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 78,000 | $ | 131,000 | $ | 131,000 | $ | 131,000 | $ | 131,000 | $ | 131,000 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Asset coverage per VMTP Shares at $100,000 liquidation value, end of period |
$ | 328,225 | (i) | $ | 282,585 | (i) | $ | 252,124 | (i) | $ | 349,152 | (j) | $ | 343,577 | (j) | $ | 339,241 | (j) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| TOB Trust Certificates, end of period (000) |
$ | 33,592 | $ | 8,253 | $ | 48,172 | $ | 59,850 | $ | 60,976 | $ | 58,458 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Asset coverage per $1,000 of TOB Trust Certificates, end of period(k) |
$ | 10,904 | $ | 47,681 | $ | 9,378 | N/A | N/A | N/A | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Portfolio turnover rate |
35 | % | 25 | % | 28 | % | 7 | % | 18 | % | 26 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| (a) | Based on average Common Shares outstanding. |
| (b) | Distributions for annual periods determined in accordance with U.S. federal income tax regulations. |
| (c) | A portion of the distributions from net investment income may be deemed a return of capital or net realized gain at fiscal year-end. |
| (d) | Total returns based on market price, which can be significantly greater or less than the net asset value, may result in substantially different returns. Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions at actual reinvestment prices. |
| (e) | Not annualized. |
| (f) | Excludes fees and expenses incurred indirectly as a result of investments in underlying funds. |
| (g) | Annualized. |
| (h) | Interest expense, fees and amortization of offering costs related to TOB Trusts and/or VMTP Shares. See Note 4 and Note 10 of the Notes to Financial Statements for details. |
| (i) | Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares and TOBs) from the Trust’s total assets and dividing this by the sum of the amount of TOBs and liquidation value of the VMTP Shares, and by multiplying the results by 100,000. |
| (j) | Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares) from the Trust’s total assets and dividing this by the liquidation value of the VMTP Shares, and by multiplying the results by 100,000. |
| (k) | Effective July 18, 2022, TOB Trust Certificates are treated as senior securities pursuant to Rule 18f-4 of the 1940 Act. Calculated by subtracting the Trust’s total liabilities (not including VMTP Shares and TOBs) from the Trust’s total assets and dividing this by the amount of TOBs, and by multiplying the results by 1,000. |
See notes to financial statements.
| 62 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited)
| 1. | ORGANIZATION |
The following are registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as closed-end management investment companies and are referred to herein collectively as the “Trusts”, or individually as a “Trust”:
|
| ||||||
| Trust Name | Herein Referred To As | Organized | Diversification Classification | |||
|
| ||||||
| BlackRock California Municipal Income Trust |
BFZ | Delaware | Diversified | |||
| BlackRock Municipal 2030 Target Term Trust |
BTT | Delaware | Diversified | |||
| BlackRock Municipal Income Quality Trust |
BYM | Delaware | Diversified | |||
| BlackRock MuniHoldings California Quality Fund, Inc. |
MUC | Maryland | Diversified | |||
| BlackRock MuniHoldings Quality Fund II, Inc. |
MUE | Maryland | Diversified | |||
|
| ||||||
The Boards of Trustees of the Trusts are collectively referred to throughout this report as the “Board,” and the trustees thereof are collectively referred to throughout this report as “Trustees”. The Trusts determine and make available for publication the net asset values (“NAVs”) of their Common Shares on a daily basis.
The Trusts, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of funds referred to as the BlackRock Fixed-Income Complex.
| 2. | SIGNIFICANT ACCOUNTING POLICIES |
The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Trust is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:
Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis.
Bank Overdraft: The Trusts had outstanding cash disbursements exceeding deposited cash amounts at the custodian during the reporting period. The Trusts are obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statements of Operations.
Collateralization: If required by an exchange or counterparty agreement, the Trusts may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.
Distributions: Distributions from net investment income are declared monthly and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates and made at least annually. The portion of distributions, if any, that exceeds a fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.
Distributions to Preferred Shareholders are accrued and determined as described in Note 10.
Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Board, the trustees who are not “interested persons” of the Trusts, as defined in the 1940 Act (“Independent Trustees”), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.
The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust, as applicable. Deferred compensation liabilities, if any, are included in the Trustees’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trusts until such amounts are distributed in accordance with the Plan. Net appreciation (depreciation) in the value of participants’ deferral accounts is allocated among the participating funds in the BlackRock Fixed-Income Complex and reflected as Trustees and Officer expense on the Statements of Operations. The Trustees and Officer expense may be negative as a result of a decrease in value of the deferred accounts.
Indemnifications: In the normal course of business, a Trust enters into contracts that contain a variety of representations that provide general indemnification. A Trust’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Trust, which cannot be predicted with any certainty.
Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.
| N O T E S T O F I N A N C I A L S T A T E M E N T S |
63 |
Notes to Financial Statements (unaudited) (continued)
| 3. | INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS |
Investment Valuation Policies: Each Trust’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Trust is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board has approved the designation of each Trust’s Manager as the valuation designee for each Trust. Each Trust determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.
Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Trust’s assets and liabilities:
| • | Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value. |
| • | Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published NAV. |
| • | Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded. |
If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Trust might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.
Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments. 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 each Trust has the ability to access; |
| • | Level 2 – Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs); and |
| • | Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments). |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.
| 4. | SECURITIES AND OTHER INVESTMENTS |
Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.
Forward Commitments, When-Issued and Delayed Delivery Securities: The Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Trusts may purchase securities under such conditions with the intention of actually acquiring them but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, a fund is
| 64 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Trusts assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Trusts’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions. These types of securities may be considered unfunded and may obligate the Trusts to make future cash payments. An unfunded commitment is marked-to-market and any unrealized appreciation (depreciation) is separately presented in the Statements of Assets and Liabilities and Statements of Operations.
Municipal BondsTransferred toTOBTrusts: The Trusts leverage their assets through the use of “TOB Trust” transactions. The funds transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third-party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a fund provide the fund with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a fund has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds ratably in proportion to their participation in the TOB Trust.
TOB Trusts are supported by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.
The TOB Trust may be collapsed without the consent of a fund, upon the occurrence of a termination event as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Trusts) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.
While a fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a fund to borrow money for purposes of making investments. Each Trust’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a Trust. A Trust typically invests the cash received in additional municipal bonds.
Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a Trust’s Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a Trust’s payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.
Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a Trust on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a Trust incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of offering costs in the Statements of Operations. Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:
|
|
||||||||||||||||
| Trust Name | Interest Expense | Liquidity Fees | Other Expenses | Total | ||||||||||||
|
|
||||||||||||||||
| BFZ |
$ | 631,262 | $ | 66,094 | $ | 18,844 | $ | 716,200 | ||||||||
| BTT |
1,252,813 | 104,925 | 122,416 | 1,480,154 | ||||||||||||
| BYM |
882,099 | 90,959 | 38,621 | 1,011,679 | ||||||||||||
| MUC |
2,022,461 | 217,224 | 71,977 | 2,311,662 | ||||||||||||
| MUE |
213,716 | 24,090 | 9,728 | 247,534 | ||||||||||||
|
|
||||||||||||||||
For the six months ended January 31, 2024, the following table is a summary of each Trust’s TOB Trusts:
| Trust Name |
|
Underlying Municipal Bonds Transferred to TOB Trusts |
(a) |
|
Liability for TOB Trust Certificates |
(b) |
|
Range of Interest Rates on TOB Trust Certificates at Period End |
|
|
Average TOB Trust Certificates Outstanding |
|
|
Daily Weighted Average Rate of Interest and Other Expenses on TOB Trusts |
| |||||
| BFZ |
$ 75,902,089 | $ | 35,140,000 | 4.55% — 4.58% | $ | 35,140,000 | 4.05% | |||||||||||||
| BTT |
104,457,127 | 69,569,982 | 4.59 — 4.61 | 69,569,982 | 4.23 | |||||||||||||||
| BYM |
116,301,874 | 61,981,882 | 4.55 — 4.60 | 51,297,935 | 3.92 | |||||||||||||||
| MUC |
279,297,149 | 147,184,992 | 4.56 — 4.65 | 118,207,955 | 3.89 | |||||||||||||||
| N O T E S T O F I N A N C I A L S T A T E M E N T S |
65 |
Notes to Financial Statements (unaudited) (continued)
| Trust Name |
|
Underlying Municipal Bonds Transferred to TOB Trusts |
(a) |
|
Liability for TOB Trust Certificates |
(b) |
|
Range of Interest Rates on TOB Trust Certificates at Period End |
|
|
Average TOB Trust Certificates Outstanding |
|
|
Daily Weighted Average Rate of Interest and |
| |||||
| MUE |
$ | 54,629,543 | $ | 33,591,657 | 4.55% — 4.60% | $ | 13,435,480 | 3.66 | % | |||||||||||
| (a) | The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the Trusts, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the Trusts, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts in the Schedules of Investments. |
| (b) | TOB Trusts may be structured on a non-recourse or recourse basis. When a Trust invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a Trust invests in a TOB Trust on a recourse basis, a Trust enters into a reimbursement agreement with the Liquidity Provider where a Trust is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a Trust invests in a recourse TOB Trust, a Trust will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a Trust at January 31, 2024, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a Trust at January 31, 2024. |
| 5. | DERIVATIVE FINANCIAL INSTRUMENTS |
The Trusts engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Trusts and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).
Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).
Futures contracts are exchange-traded agreements between the Trusts and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Trusts are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.
Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
| 6. | INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES |
Investment Advisory: Each Trust entered into an Investment Advisory Agreement with the Manager, the Trusts’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of each Trust’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Trust.
For such services, MUC and MUE pay the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Trust’s net assets:
| MUC | MUE | |||||||
| Investment advisory fees |
0.55 | % | 0.55 | % | ||||
For purposes of calculating these fees, “net assets” mean the total assets of the Trust minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). It is understood that the liquidation preference of any outstanding preferred stock (other than accumulated dividends) and TOB Trusts is not considered a liability in determining a Trust’s NAV.
For such services, BFZ and BYM, pay the Manager a monthly fee at an annual rate equal to the following percentages of the average weekly value of each Trust’s managed assets:
| BFZ | BYM | |||||||
| Investment advisory fees |
0.55 | % | 0.55 | % | ||||
For such services, BTT pays the Manager a monthly fee at an annual rate equal to 0.40% of the average daily value of the Trust’s managed assets.
| 66 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
For purposes of calculating these fees, “managed assets” are determined as total assets of the Trust (including any assets attributable to money borrowed for investment purposes) less the sum of its accrued liabilities (other than money borrowed for investment purposes).
Expense Waivers and Reimbursements: With respect to each Trust, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2025. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Trust. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended January 31, 2024, the amounts waived were as follows:
|
|
||||
| Trust Name | Fees Waived and/or Reimbursed by the Manager |
|||
|
|
||||
| BFZ |
$ | 5,008 | ||
| BTT |
21,110 | |||
| BYM |
6,077 | |||
| MUC |
23,401 | |||
| MUE |
11,878 | |||
|
|
||||
The Manager contractually agreed to waive its investment advisory fee with respect to any portion of each Trust’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2025. The agreement can be renewed for annual periods thereafter, and may be terminated on 90 days’ notice, each subject to approval by a majority of the Trusts’ Independent Trustees. For the six months ended January 31, 2024, there were no fees waived by the Manager pursuant to this arrangement.
The Manager, for MUE, voluntarily agreed to waive its investment advisory fee on the proceeds of the Preferred Shares and TOB Trusts that exceed 35% of total assets minus the sum of its accrued liabilities (which does not include liabilities represented by TOB Trusts and the liquidation preference of any outstanding preferred shares). The voluntary waiver may be reduced or discontinued at any time without notice. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the six months ended January 31, 2024, the waivers were as follows:
|
|
||||
| Trust Name | Fees Waived and/or Reimbursed by the Manager |
|||
|
|
||||
| MUE |
$ | 9,788 | ||
|
|
||||
Trustees and Officers: Certain trustees and/or officers of the Trusts are directors and/or officers of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.
| 7. | PURCHASES AND SALES |
For the six months ended January 31, 2024, purchases and sales of investments, excluding short-term securities, were as follows:
|
|
||||||||
| Trust Name | Purchases | Sales | ||||||
|
|
||||||||
| BFZ |
$ | 278,005,455 | $ | 274,793,583 | ||||
| BTT |
96,225,605 | 81,788,534 | ||||||
| BYM |
195,512,145 | 215,042,867 | ||||||
| MUC |
802,862,786 | 766,693,953 | ||||||
| MUE |
120,174,464 | 118,807,927 | ||||||
|
|
||||||||
| 8. | INCOME TAX INFORMATION |
It is each Trust’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.
Each Trust files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Trust’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on each Trust’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.
Management has analyzed tax laws and regulations and their application to the Trusts as of January 31, 2024, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Trusts’ financial statements.
| N O T E S T O F I N A N C I A L S T A T E M E N T S |
67 |
Notes to Financial Statements (unaudited) (continued)
As of July 31, 2023, the Trusts had non-expiring capital loss carryforwards available to offset future realized capital gains as follows:
|
|
||||
| Trust Name | Non-Expiring Capital Loss |
|||
|
|
||||
| BFZ |
$ | (41,909,843 | ) | |
| BTT |
(7,382,346 | ) | ||
| BYM |
(31,348,149 | ) | ||
| MUC |
(137,181,171 | ) | ||
| MUE |
(27,241,264 | ) | ||
|
|
||||
As of January 31, 2024, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:
|
|
||||||||||||||||
| Trust Name | Tax Cost | Gross Unrealized Appreciation |
Gross Unrealized Depreciation |
Net Unrealized Appreciation (Depreciation) |
||||||||||||
|
|
||||||||||||||||
| BFZ |
$ | 559,515,118 | $ | 21,914,550 | $ | (2,905,898 | ) | $ | 19,008,652 | |||||||
| BTT |
2,359,312,470 | 28,345,620 | (46,131,731 | ) | (17,786,111 | ) | ||||||||||
| BYM |
406,292,279 | 27,275,728 | (4,905,242 | ) | 22,370,486 | |||||||||||
| MUC |
1,653,409,998 | 75,946,652 | (20,245,674 | ) | 55,700,978 | |||||||||||
| MUE |
327,337,228 | 8,570,239 | (5,300,294 | ) | 3,269,945 | |||||||||||
|
|
||||||||||||||||
| 9. | PRINCIPAL RISKS |
In the normal course of business, the Trusts invest in securities or other instruments and may enter into certain transactions, and such activities subject each Trust to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Trusts and their investments.
The Trusts may hold a significant amount of bonds subject to calls by the issuers at defined dates and prices. When bonds are called by issuers and the Trusts reinvest the proceeds received, such investments may be in securities with lower yields than the bonds originally held, and correspondingly, could adversely impact the yield and total return performance of a Trust.
A Trust structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.
As short-term interest rates rise, the Trusts’ investments in the TOB Trusts may adversely affect the Trusts’ net investment income and dividends to Common Shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Trusts’ NAVs per share.
The U.S. Securities and Exchange Commission (“SEC”) and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Trusts’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.
TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Trusts, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.
Illiquidity Risk: Each Trust may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. A Trust may not be able to readily dispose of such investments at prices that approximate those at which a Trust could sell such investments if they were more widely traded and, as a result of such illiquidity, a Trust may have to sell other investments or engage in borrowing transactions if necessary to raise funds to meet its obligations. Limited liquidity can also affect the market price of investments, thereby adversely affecting a Trust’s NAV and ability to make dividend distributions. Privately issued debt securities are often of below investment grade quality, frequently are unrated and present many of the same risks as investing in below investment grade public debt securities.
Market Risk: Each Trust may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Trust to reinvest in lower yielding securities. Each Trust may also be exposed to reinvestment risk, which is the risk that income from each Trust’s portfolio will decline if each Trust invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Trust portfolio’s current earnings rate.
Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the
| 68 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of municipal security issuers than for issuers of other securities.
Investment Objective Risk: There is no assurance that BTT will achieve its investment objectives, including its investment objective of returning $25.00 per share. As BTT approaches its scheduled termination date, it is expected that the maturity of BTT’s portfolio securities will shorten, which is likely to reduce BTT’s income and distributions to shareholders.
Counterparty Credit Risk: The Trusts may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Trusts to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Trusts’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Trusts.
A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.
With exchange-traded futures, there is less counterparty credit risk to the Trusts since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Trust does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Trusts.
Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Trust’s portfolio are disclosed in its Schedule of Investments.
Certain Trusts invest a substantial amount of their assets in issuers located in a single state or limited number of states. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political or social conditions affecting that state or group of states could have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.
The Trusts invest a significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Trust and could affect the income from, or the value or liquidity of, the Trust’s portfolio. Investment percentages in specific sectors are presented in the Schedules of Investments.
Certain Trusts invest a significant portion of their assets in high yield securities. High yield securities that are rated below investment-grade (commonly referred to as “junk bonds”) or are unrated may be deemed speculative, involve greater levels of risk than higher-rated securities of similar maturity and are more likely to default. High yield securities may be issued by less creditworthy issuers, and issuers of high yield securities may be unable to meet their interest or principal payment obligations. High yield securities are subject to extreme price fluctuations, may be less liquid than higher rated fixed-income securities, even under normal economic conditions, and frequently have redemption features.
The Trusts invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. The Trusts may be subject to a greater risk of rising interest rates due to the period of historically low interest rates that ended in March 2022. The Federal Reserve has raised the federal funds rate as part of its efforts to address inflation. There is a risk that interest rates will continue to rise, which will likely drive down the prices of bonds and other fixed-income securities, and could negatively impact the Trusts’ performance.
The Trusts invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Trusts invest.
| 10. | CAPITAL SHARE TRANSACTIONS |
BFZ, BTT and BYM are authorized to issue an unlimited number of shares, all of which were initially classified as Common Shares. MUC and MUE are authorized to issue 200 million shares, all of which were initially classified as Common Shares. The par value of Common Shares for BFZ, BTT and BYM is $0.001 and for MUC and MUE is $0.10. The par value of Preferred Shares outstanding for BFZ, BTT and BYM is $0.001 and for MUC and MUE is $0.10. Each Board is authorized, however, to reclassify any unissued Common Shares to Preferred Shares without the approval of Common Shareholders.
| N O T E S T O F I N A N C I A L S T A T E M E N T S |
69 |
Notes to Financial Statements (unaudited) (continued)
Common Shares
For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:
|
|
||||||||
| Trust Name | Six Months Ended 01/31/24 |
Year Ended 07/31/23 |
||||||
|
|
||||||||
| BYM |
— | 6,598 | ||||||
|
|
||||||||
For the year ended July 31, 2023, shares issued and outstanding remained constant for BTT.
The Trusts participate in an open market share repurchase program (the “Repurchase Program”). From December 1, 2022 through November 30, 2023, each Trust may repurchase up to 5% of its outstanding common shares under the Repurchase Program, based on common shares outstanding as of the close of business on November 30, 2022, subject to certain conditions. From December 1, 2023 through November 30, 2024, each Trust may repurchase up to 5% of its outstanding common shares under the Repurchase Program, based on common shares outstanding as of the close of business on November 30, 2023, subject to certain conditions. The Repurchase Program has an accretive effect as shares are purchased at a discount to the Trust’s NAV. There is no assurance that the Trusts will purchase shares in any particular amounts. For the year ended July 31, 2023, BTT did not repurchase any shares.
The total cost of the shares repurchased is reflected in Trusts’ Statements of Changes in Net Assets. For the periods shown, shares repurchased and cost, including transaction costs were as follows:
|
|
||||||||
| BFZ | ||||||||
| Shares | Amounts | |||||||
|
|
||||||||
| Six Months Ended January 31, 2024 |
210,536 | $ 2,247,478 | ||||||
| Year Ended July 31, 2023 |
850,759 | 9,389,525 | ||||||
|
|
||||||||
|
|
| |||||||
|
|
||||||||
| BTT | ||||||||
| Shares | Amounts | |||||||
|
|
||||||||
| Six Months Ended January 31, 2024 |
3,219,438 | $ 66,029,335 | ||||||
|
|
||||||||
|
|
| |||||||
|
|
||||||||
| BYM | ||||||||
| Shares | Amounts | |||||||
|
|
||||||||
| Six Months Ended January 31, 2024 |
327,384 | $ 3,332,710 | ||||||
| Year Ended July 31, 2023 |
191,145 | 2,148,748 | ||||||
|
|
||||||||
|
|
| |||||||
|
|
||||||||
| MUC | ||||||||
| Shares | Amounts | |||||||
|
|
||||||||
| Six Months Ended January 31, 2024 |
1,250,600 | $ 12,545,146 | ||||||
| Year Ended July 31, 2023 |
2,093,841 | 22,916,113 | ||||||
|
|
||||||||
|
|
| |||||||
|
|
||||||||
| MUE | ||||||||
| Shares | Amounts | |||||||
|
|
||||||||
| Six Months Ended January 31, 2024 |
347,324 | $ 3,204,845 | ||||||
| Year Ended July 31, 2023 |
260,414 | 2,549,564 | ||||||
|
|
||||||||
Preferred Shares
A Trust’s Preferred Shares rank prior to its Common Shares as to the payment of dividends by the Trust and distribution of assets upon dissolution or liquidation of the Trust. The 1940 Act prohibits the declaration of any dividend on Common Shares or the repurchase of Common Shares if the Trust fails to maintain asset coverage of at least 200% of the liquidation preference of the Trust’s outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, a Trust is restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with its Preferred Shares or repurchasing such shares if the Trust fails to declare and pay dividends on the Preferred Shares, redeem any Preferred Shares required to be redeemed under the Preferred Shares’ governing instruments or comply with the basic maintenance amount requirement of the ratings agencies rating the Preferred Shares.
Holders of Preferred Shares have voting rights equal to the voting rights of holders of Common Shares (one vote per share) and vote together with holders of Common Shares (one vote per share) as a single class on certain matters. Holders of Preferred Shares, voting as a separate class, are also entitled to (i) elect two members of the Board, (ii) elect the full Board if dividends on the Preferred Shares are not paid for a period of two years and (iii) a separate class vote to amend the Preferred Share governing documents. In addition, the 1940 Act requires the approval of the holders of a majority of any outstanding Preferred Shares, voting as a separate class, to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.
| 70 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
VMTP Shares
BFZ, BYM, MUC and MUE (for purposes of this section, each a “VMTP Trust”) have issued Series W-7 VMTP Shares, $100,000 liquidation preference per share, in one or more privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The VMTP Shares are subject to certain restrictions on transfer, and a VMTP Trust may also be required to register its VMTP Shares for sale under the Securities Act under certain circumstances. As of period end, the VMTP Shares outstanding and assigned long-term ratings were as follows:
|
|
||||||||||||||||||||||||
| Trust Name | Issue Date |
Shares Issued |
Aggregate Principal |
Term Redemption Date |
Moody’s Rating |
Fitch Rating |
||||||||||||||||||
|
|
||||||||||||||||||||||||
| BFZ |
03/22/12 | 1,713 | $ | 171,300,000 | 03/30/25 | Aa2 | AA | |||||||||||||||||
| BYM(a) |
12/20/23 | 976 | 97,600,000 | 07/02/25 | Aa1 | AA | ||||||||||||||||||
| MUC |
03/22/12 | 2,540 | 254,000,000 | 03/30/25 | Aa2 | AA | ||||||||||||||||||
| 04/11/22 | 2,724 | 272,400,000 | 03/30/25 | Aa2 | AA | |||||||||||||||||||
| MUE(a) |
12/20/23 | 780 | 78,000,000 | 07/02/25 | Aa1 | AA | ||||||||||||||||||
|
|
||||||||||||||||||||||||
| (a) | On December 20, 2023, BYM and MUE each issued VMTP Shares and used the proceeds of the issuance to redeem all of their respective outstanding VMTP Shares. The newly-issued VMTP Shares and the redeemed VMTP Shares have substantially similar terms. |
Redemption Terms: A VMTP Trust is required to redeem its VMTP Shares on the term redemption date, unless earlier redeemed or repurchased or unless extended. There is no assurance that a term will be extended further or that any VMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the VMTP Shares. Six months prior to the term redemption date, a VMTP Trust is required to begin to segregate liquid assets with its custodian to fund the redemption. In addition, a VMTP Trust is required to redeem certain of its outstanding VMTP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.
Subject to certain conditions, VMTP Shares may be redeemed, in whole or in part, at any time at the option of the VMTP Trust. With respect to BFZ and MUC, the redemption price per VMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends. With respect to BYM and MUE, the redemption price per VMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends and applicable redemption premium. If BYM and MUE redeems the VMTP Shares prior to the term redemption date and the VMTP Shares have long-term ratings above A1/A+ or its equivalent by the ratings agencies then rating the VMTP Shares, then such redemption may be subject to a prescribed redemption premium (up to 1% of the liquidation preference) payable to the holder of the VMTP Shares based on the time remaining until the term redemption date, subject to certain exceptions for redemptions that are required to comply with minimum asset coverage requirements.
Dividends: Dividends on the VMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread plus the Securities Industry and Financial Markets Association (“SIFMA”) Municipal Swap Index or a percentage of the daily Secured Overnight Financing Rate, as set forth in the VMTP Shares governing instrument. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by the ratings agencies then rating the VMTP Shares.
The dividend rate on VMTP Shares is subject to a step-up spread if the VMTP Trust fails to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and complying with certain asset coverage and leverage requirements.
For the six months ended January 31, 2024, the average annualized dividend rates for the VMTP Shares were as follows:
| BFZ | BYM | MUC | MUE | |||||||||||||
| Dividend rates |
4.40 | % | 5.07 | % | 4.39 | % | 5.12 | % | ||||||||
During the six months ended January 31, 2024, VMTP Shares issued and outstanding of BYM decreased by 396 as a result of a redemption of shares.
During the six months ended January 31, 2024, VMTP Shares issued and outstanding of MUE decreased by 530 as a result of a redemption of shares.
For the six months ended January 31, 2024, VMTP Shares issued and outstanding of BFZ and MUC remained constant.
RVMTP Shares
BTT has issued Series W-7 RVMTP Shares, $5,000,000 liquidation preference per share, in privately negotiated offerings to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act. The RVMTP Shares are subject to certain restrictions on transfer outside of a remarketing. As of period end, the RVMTP Shares outstanding of BTT were as follows:
|
|
||||||||||||||||||||
| Trust Name | Issue Date |
Shares Issued |
Shares Outstanding |
Aggregate Principal |
Term Redemption Date |
|||||||||||||||
|
|
||||||||||||||||||||
| BTT |
01/10/13 | 50 | 50 | $ | 250,000,000 | 12/31/30 | ||||||||||||||
| 01/30/13 | 50 | 50 | 250,000,000 | 12/31/30 | ||||||||||||||||
| 02/20/13 | 50 | 50 | 250,000,000 | 12/31/30 | ||||||||||||||||
|
|
||||||||||||||||||||
Redemption Terms: BTT is required to redeem its RVMTP Shares on the term redemption date or within six months of an unsuccessful remarketing, unless earlier redeemed or repurchased. There is no assurance that RVMTP Shares will be replaced with any other preferred shares or other form of leverage upon the redemption or repurchase of the RVMTP Shares. In addition, BTT is required to redeem certain of its outstanding RVMTP Shares if it fails to comply with certain asset coverage, basic maintenance amount or leverage requirements.
| N O T E S T O F I N A N C I A L S T A T E M E N T S |
71 |
Notes to Financial Statements (unaudited) (continued)
Subject to certain conditions, RVMTP Shares may be redeemed, in whole or in part, at any time at the option of BTT. The redemption price per RVMTP Share is equal to the liquidation preference per share plus any outstanding unpaid dividends. The RVMTP Shares are subject to certain restrictions on transfer outside of a remarketing. The RVMTP Shares are subject to remarketing upon 90 days’ notice by holders of the RVMTP Shares and 30 days’ notice by BTT. Each remarketing must be at least six months apart from the last remarketing. A holder of RVMTP Shares may submit notice of remarketing only if such holder requests a remarketing of at least the lesser of (i) $100,000,000 of RVMTP Shares or (ii) all of the RVMTP Shares held by such holder.
Dividends: Dividends on the RVMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread plus a percentage of the daily SOFR rate. The fixed rate spread may be adjusted at each remarketing or upon the agreement of BTT and the then-holder(s) of the RVMTP Shares. In the event that all of the RVMTP Shares submitted for remarketing are not successfully remarketed, a failed remarketing would occur, and all holders would retain their RVMTP Shares. In the event of a failed remarketing, the fixed rate spread would be set at the fixed rate spread applicable to such failed remarketing. BTT has the right to reject any fixed spread determined at a remarketing, and such rejection would result in a failed remarketing and the fixed rate spread would be set at the fixed rate spread applicable to such failed remarketing. The fixed rate spread applicable due to a failed remarketing depends on whether the remarketing was pursuant to a mandatory or non-mandatory tender. In the case of a failed remarketing following a mandatory tender, the failed remarketing spread would be the sum of the last applicable spread in effect immediately prior to the failed remarketing date for such failed remarketing plus 0.75%. In the case of a failed remarketing not associated with a mandatory tender, the failed remarketing spread would be the sum of the last applicable spread in effect immediately prior to the failed remarketing date for such failed remarketing plus 0.25%.
For the six months ended January 31, 2024, the average annualized dividend rate for the RVMTP Shares was 4.52%.
Remarketing: In the event of a failed remarketing that is not subsequently cured, BTT will be required to redeem the RVMTP Shares subject to such failed remarketing on a date that is approximately six months from the remarketing date for such failed remarketing, provided that no redemption of any RVMTP Share may occur within one year of the date of issuance of such RVMTP Share. At the date of issuance and as of period end, the RVMTP Shares were assigned long-term ratings of Aa1 from Moody’s and AA from Fitch. The dividend rate on the RVMTP Shares is subject to a step-up spread if BTT fails to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and complying with certain asset coverage and leverage requirements.
During the six months ended January 31, 2024, no RVMTP Shares were tendered for remarketing.
For the six months ended January 31, 2024, RVMTP Shares issued and outstanding of BTT remained constant.
Offering Costs: The Trusts incurred costs in connection with the issuance of VMTP and RVMTP Shares, which were recorded as a direct deduction from the carrying value of the related debt liability and will be amortized over the life of the VMTP and RVMTP Shares. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.
Financial Reporting: The VMTP and RVMTP Shares are considered debt of the issuer; therefore, the liquidation preference, which approximates fair value of the VMTP and RVMTP Shares, is recorded as a liability in the Statements of Assets and Liabilities net of deferred offering costs. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VMTP and RVMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The VMTP and RVMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the VMTP and RVMTP Shares are generally classified as tax-exempt income for tax-reporting purposes. Dividends and amortization of deferred offering costs on VMTP and RVMTP Shares are included in interest expense, fees and amortization of offering costs in the Statements of Operations:
|
|
||||||||||||
| Trust Name | Dividends Accrued | Deferred Offering Costs Amortization |
||||||||||
|
|
||||||||||||
| BFZ |
$ | 3,785,092 | $ | — | ||||||||
| BTT |
17,023,990 | 15,764 | ||||||||||
| BYM |
3,039,263 | — | ||||||||||
| MUC |
11,628,746 | — | ||||||||||
| MUE |
2,757,395 | — | ||||||||||
|
|
||||||||||||
| 11. | SUBSEQUENT EVENTS |
Management’s evaluation of the impact of all subsequent events on the Trusts’ financial statements was completed through the date the financial statements were issued and the following items were noted:
The Trusts declared and paid or will pay distributions to Common Shareholders as follows:
|
|
||||||||||||||||||||
| Trust Name | Declaration Date |
Record Date |
Payable/ Paid Date |
Dividend Per Common Share |
||||||||||||||||
|
|
||||||||||||||||||||
| BFZ |
11/14/23 | 01/12/24 | 02/01/24 | $ | 0.051000 | |||||||||||||||
| 11/14/23 | 02/15/24 | 03/01/24 | 0.051000 | |||||||||||||||||
| 03/01/24 | 03/15/24 | 04/01/24 | 0.051000 | |||||||||||||||||
| BTT |
11/14/23 | 01/12/24 | 02/01/24 | 0.046400 | ||||||||||||||||
| 11/14/23 | 02/15/24 | 03/01/24 | 0.046400 | |||||||||||||||||
| 03/01/24 | 03/15/24 | 04/01/24 | 0.046400 | |||||||||||||||||
| BYM |
11/14/23 | 01/12/24 | 02/01/24 | 0.052500 | ||||||||||||||||
| 11/14/23 | 02/15/24 | 03/01/24 | 0.052500 | |||||||||||||||||
| 03/01/24 | 03/15/24 | 04/01/24 | 0.052500 | |||||||||||||||||
|
|
||||||||||||||||||||
| 72 | 2 0 2 4 B L A C K R O C K S E M I - A N N U A L R E P O R T T O S H A R E H O L D E R S |
Notes to Financial Statements (unaudited) (continued)
|
|
||||||||||||||||||||
| Trust Name | Declaration Date |
Record Date |
Payable/ Paid Date |
Dividend Per Common Share |
||||||||||||||||
|
|
||||||||||||||||||||
| MUC |
11/14/23 | 01/12/24 | 02/01/24 | $ | 0.048500 | |||||||||||||||
| 11/14/23 | 02/15/24 | 03/01/24 | 0.048500 | |||||||||||||||||
| 03/01/24 | 03/15/24 | 04/01/24 | 0.048500 | |||||||||||||||||
| MUE |
11/14/23 | 01/12/24 | 02/01/24 | 0.045000 | ||||||||||||||||
| 11/14/23 | 02/15/24 | 03/01/24 | 0.045000 | |||||||||||||||||
| 03/01/24 | 03/15/24 | 04/01/24 | 0.045000 | |||||||||||||||||
|
|
||||||||||||||||||||
The Trusts declared and paid or will pay distributions to Preferred Shareholders as follows:
|
|
||||||||||||
| Preferred Shares(a) | ||||||||||||
|
|
|
|||||||||||
| Trust Name | Shares | Series | Declared | |||||||||
|
|
||||||||||||
| BFZ |
VMTP | W-7 | $ | 583,590 | ||||||||
| BTT |
RVMTP | W-7 | 2,675,049 | |||||||||
| BYM |
VMTP | W-7 | 377,440 | |||||||||
| MUC |
VMTP | W-7 | 1,793,356 | |||||||||
| MUE |
VMTP | W-7 | 301,643 | |||||||||
|
|
||||||||||||
| (a) | Dividends declared for period February 1, 2024 to February 29, 2024. |
| N O T E S T O F I N A N C I A L S T A T E M E N T S |
73 |
Trust Certification
The Trusts are listed for trading on the NYSE and have filed with the NYSE their annual chief executive officer certification regarding compliance with the NYSE’s listing standards. The Trusts filed with the SEC the certification of its chief executive officer and chief financial officer required by Section 302 of the Sarbanes-Oxley Act.
Environmental, Social and Governance (“ESG”) Integration
Although the Trusts do not seek to implement a specific sustainability objective, strategy or process unless otherwise disclosed, Trust management will consider ESG factors as part of the investment process for the Trusts. Trust management views ESG integration as the practice of incorporating financially material ESG data or information into investment processes with the objective of enhancing risk-adjusted returns. These ESG considerations will vary depending on the Trusts’ particular investment strategies and may include consideration of third-party research as well as consideration of proprietary BlackRock research across the ESG risks and opportunities regarding an issuer. The ESG characteristics utilized in the Trusts’ investment process are anticipated to evolve over time and one or more characteristics may not be relevant with respect to all issuers that are eligible for investment. Certain of these considerations may affect the Trusts’ exposure to certain companies or industries. While Trust management views ESG considerations as having the potential to contribute to the Trusts’ long-term performance, there is no guarantee that such results will be achieved.
Dividend Policy
Each Trust’s dividend policy is to make regular monthly cash distributions to holders of its common shares (stated in terms of a fixed cents per common share dividend distribution rate). Each Trust intends to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In addition, in any monthly period, in order to maintain its declared distribution amount, each Trust may pay out more or less than the entire amount of net investment income earned in any particular month. In the event a Trust distributes more than its net investment income during any yearly period, such distributions may also come from sources other than net income, including a return of capital. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed as accumulated earnings (loss) in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.
General Information
The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.
The following information is a summary of certain changes since July 31, 2023. This information may not reflect all of the changes that have occurred since you purchased the relevant Trust.
Except if noted otherwise herein, there were no changes to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders.
In accordance with Section 23(c) of the Investment Company Act of 1940, each Trust may from time to time purchase shares of its common stock in the open market or in private transactions.
Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.
Electronic Delivery
Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports by enrolling in the electronic delivery program. Electronic copies of shareholder reports are available on BlackRock’s website.
To enroll in electronic delivery:
Shareholders Who Hold Accounts with Investment Advisers, Banks or Brokerages:
Please contact your financial adviser. Please note that not all investment advisers, banks or brokerages may offer this service.
Householding
The Trusts will mail only one copy of shareholder documents, annual and semi-annual reports, Rule 30e-3 notices and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Trusts at (800) 882-0052.
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Additional Information (continued)
Availability of Quarterly Schedule of Investments
The Trusts file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Trusts’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Trust makes its portfolio holdings for the first and third quarters of each fiscal year available at blackrock.com/fundreports.
Availability of Proxy Voting Policies, Procedures and Voting Records
A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities and information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available without charge, upon request (1) by calling (800) 882-0052; (2) on the BlackRock website at blackrock.com; and (3) on the SEC’s website at sec.gov.
Availability of Trust Updates
BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Trusts. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Trusts and does not, and is not intended to, incorporate BlackRock’s website in this report.
BlackRock Privacy Principles
BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.
If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.
BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.
BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.
We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.
Trust and Service Providers
| Investment Adviser |
Independent Registered Public Accounting Firm | |
| BlackRock Advisors, LLC |
Deloitte & Touche LLP | |
| Wilmington, DE 19809 |
Boston, MA 02116 | |
| Accounting Agent and Custodian |
Legal Counsel | |
| State Street Bank and Trust Company |
Willkie Farr & Gallagher LLP | |
| Boston, MA 02114 |
New York, NY 10019 | |
| Transfer Agent |
Address of the Trusts | |
| Computershare Trust Company, N.A. |
100 Bellevue Parkway | |
| Canton, MA 02021 |
Wilmington, DE 19809 | |
| VMTP Redemption and Paying Agent and RVMTP Tender and Paying Agent |
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| The Bank of New York Mellon |
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| New York, NY 10286 |
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| A D D I T I O N A L I N F O R M A T I O N |
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Glossary of Terms Used in this Report
| Portfolio Abbreviation | ||
| AGM | Assured Guaranty Municipal Corp. | |
| AGM-CR | AGM Insured Custodial Receipt | |
| AMBAC | AMBAC Assurance Corp. | |
| AMT | Alternative Minimum Tax | |
| ARB | Airport Revenue Bonds | |
| BAM | Build America Mutual Assurance Co. | |
| BAM-TCRS | Build America Mutual Assurance Co. - Transferable Custodial Receipts | |
| CAB | Capital Appreciation Bonds | |
| COP | Certificates of Participation | |
| CR | Custodian Receipt | |
| FHLMC | Federal Home Loan Mortgage Corp. | |
| FNMA | Federal National Mortgage Association | |
| GNMA | Government National Mortgage Association | |
| GO | General Obligation Bonds | |
| GTD | GTD Guaranteed | |
| M/F | Multi-Family | |
| NPFGC | National Public Finance Guarantee Corp. | |
| PSF | Permanent School Fund | |
| RB | Revenue Bond | |
| S/F | Single-Family | |
| SAB | Special Assessment Bonds | |
| SAN | State Aid Notes | |
| SAP | Subject to Appropriations | |
| SAW | State Aid Withholding | |
| ST | Special Tax | |
| TA | Tax Allocation | |
| VRDN | Variable Rate Demand Note | |
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Want to know more?
blackrock.com | 800-882-0052
This report is intended for current holders. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of NAV and market price of the Common Shares, and the risk that fluctuations in short-term interest rates may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.
CEMUNI5-01/24-SAR
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(b) Not Applicable
| Item 2 – | Code of Ethics – Not Applicable to this semi-annual report |
| Item 3 – | Audit Committee Financial Expert – Not Applicable to this semi-annual report |
| Item 4 – | Principal Accountant Fees and Services – Not Applicable to this semi-annual report |
| Item 5 – | Audit Committee of Listed Registrant – Not Applicable to this semi-annual report |
| Item 6 – | Investments |
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.
(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
| Item 7 – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report |
| Item 8 – | Portfolio Managers of Closed-End Management Investment Companies – |
| (a) | Not applicable to this semi-annual report. |
| (b) | As of the date of this filing, there have been no changes in any of the portfolio managers identified in the most recent annual report on Form N-CSR. |
| Item 9 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
| Period | (a) Total Number of Shares Purchased1 |
(b) Average Price Paid per Share |
(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs1 |
(d) Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs1 | ||||
| August 1-31, 2023 | 70,832 | $10.6710 | 70,832 | 1,059,116 | ||||
| September 1-30, 2023 | 68,332 | $10.1378 | 68,332 | 990,784 | ||||
| October 1-31, 2023 | 100,482 | $9.5316 | 100,482 | 890,302 | ||||
| November 1-30, 2023 |
87,738 | $10.5024 | 87,738 | 802,564 | ||||
| December 1-31, 2023 | 0 | $- | 0 | 1,295,167 | ||||
| January 1-31, 2024 | 0 | $- | 0 | 1,295,167 | ||||
| Total: | 327,384 | 10.1648 | 327,384 | 1,295,167 |
1 On September 8, 2022, the Fund announced a continuation of its open market share repurchase program. Commencing on December 1, 2022, the Fund may repurchase through November 30, 2023, up to 5% of its common shares outstanding as of the close of business on November 30, 2022, subject to certain conditions. On November 15, 2023, the Fund announced a further continuation of its open market share repurchase program. Commencing on December 1, 2023, the Fund may repurchase through November 30, 2024, up to 5% of its common shares outstanding as of the close of business on November 30, 2023, subject to certain conditions.
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| Item 10 – | Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures. |
| Item 11 – | Controls and Procedures |
(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
| Item 12 – | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable to this semi-annual report |
| Item 13 – | Recovery of Erroneously Awarded Compensation – Not Applicable |
| Item 14 – | Exhibits attached hereto |
(a)(1) Code of Ethics – Not Applicable to this semi-annual report
(a)(2) Section 302 Certifications are attached
(a)(3) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable
(a)(4) Change in Registrant’s independent public accountant – Not Applicable
(b) Section 906 Certifications are attached
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BlackRock Municipal Income Quality Trust
| By: |
/s/ John M. Perlowski | |||
| John M. Perlowski | ||||
| Chief Executive Officer (principal executive officer) of | ||||
| BlackRock Municipal Income Quality Trust |
Date: March 22, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: |
/s/ John M. Perlowski | |||
| John M. Perlowski | ||||
| Chief Executive Officer (principal executive officer) of | ||||
| BlackRock Municipal Income Quality Trust |
Date: March 22, 2024
| By: |
/s/ Trent Walker | |||
| Trent Walker | ||||
| Chief Financial Officer (principal financial officer) of | ||||
| BlackRock Municipal Income Quality Trust |
Date: March 22, 2024
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