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 811-22603

 

Name of Fund: BlackRock Municipal Target Term Trust

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Target Term Trust, 55 East 52nd Street, New York, NY 10055

 

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

 

Date of fiscal year end: 07/31/2013

 

Date of reporting period: 01/31/2013

 

Item 1 – Report to Stockholders

 

 
 

JANUARY 31, 2013

SEMI-ANNUAL REPORT (UNAUDITED)  

BlackRock California Municipal Income Trust (BFZ)

BlackRock Florida Municipal 2020 Term Trust (BFO)

BlackRock Municipal Income Investment Trust (BBF)

BlackRock Municipal Target Term Trust (BTT)

BlackRock New Jersey Municipal Income Trust (BNJ)

BlackRock New York Municipal Income Trust (BNY)

Not FDIC Insured • May Lose Value • No Bank Guarantee
     
 
  

Table of Contents

 
           Page    
Dear Shareholder
           3    
Semi-Annual Report:
                
The Benefits and Risks of Leveraging
           4    
Derivative Financial Instruments
           4    
Municipal Market Overview
           5    
Trust Summaries
           6    
Financial Statements:
                
Schedules of Investments
           18    
Statements of Assets and Liabilities
           44    
Statements of Operations
           45    
Statements of Changes in Net Assets
           46    
Statements of Cash Flows
           48    
Financial Highlights
           49    
Notes to Financial Statements
           55    
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement
           66    
Officers and Trustees
           69    
Additional Information
           70    
2 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Dear Shareholder 

Financial markets have substantially improved over the past year, providing investors with considerable relief compared to where things were during the global turmoil seen in 2011. Despite a number of headwinds, higher-risk asset classes boasted strong returns as investors sought meaningful yields in the ongoing low-interest-rate environment.

Rising investor confidence drove equity markets higher in early 2012, while climbing US Treasury yields pressured higher-quality fixed income assets. The second quarter, however, brought a market reversal as Europe’s debt crisis boiled over once again. Political instability in Greece and severe deficit and liquidity problems in Spain raised the specter of a euro collapse. Alongside the drama in Europe, investors were discouraged by gloomy economic reports from various parts of the world. A slowdown in China, a key powerhouse for global growth, emerged as a particular concern. But as the outlook for the global economy worsened, investors grew increasingly optimistic that the world’s largest central banks would soon intervene to stimulate growth. This theme, along with the European Central Bank’s (“ECB’s”) firm commitment to preserve the euro currency bloc, drove most asset classes higher through the summer. Policy relief came in early September, when the ECB announced its decision to support the eurozone’s troubled peripheral countries with unlimited purchases of short term sovereign debt. Days later, the US Federal Reserve announced its own much-anticipated stimulus package.

Although financial markets world-wide were buoyed by accommodative monetary policy, risk assets weakened in the fall. Global trade slowed as many European countries fell into recession and growth continued to decelerate in China, where a once-a-decade leadership change compounded uncertainty. In the United States, stocks slid on lackluster corporate earnings reports and market volatility rose during the lead up to the US Presidential election. In the post-election environment, investors grew increasingly concerned over automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013 (known as the “fiscal cliff”). There was widespread fear that the fiscal cliff would push the nation into recession unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012. Worries that bipartisan gridlock would preclude a timely budget deal triggered higher levels of volatility in financial markets around the world in the months leading up to the last day of the year. Ultimately, the United States averted the worst of the fiscal cliff with a last-minute tax deal; however, decisions relating to spending cuts and the debt ceiling continue to weigh on investors’ minds.

Investors shook off the nerve-wracking finale to 2012 and began the New Year with a powerful equity rally. Key indicators signaled broad-based improvements in the world’s major economies, particularly China. In the United States, economic data was mixed, but pointed to a continued recovery. The risk of inflation remained low and the US Federal Reserve showed no signs of curtailing its stimulus programs. Additionally, January saw the return of funds that investors had pulled out of the market in late 2012 amid uncertainty about tax-rate increases ahead of the fiscal cliff deadline. In fixed income markets, rising US Treasuries yields dragged down higher-quality asset classes, while high yield bonds continued to benefit from investor demand for yield in the low-rate environment.

On the whole, riskier asset classes outperformed lower-risk investments for the 6- and 12-month periods ended January 31, 2013. International equities were the strongest performers. US stocks and high yield bonds also generated significant returns. Emerging market equities were particularly volatile, but still posted gains for both the 6- and 12-month periods. US Treasury yields remained low, but experienced increasing volatility in recent months. Rising yields near the end of the period resulted in negative returns for Treasuries and investment-grade bonds for the 6-month period. Tax-exempt municipal bonds, however, benefited from favorable supply-and-demand dynamics. Near-zero short term interest rates continued to keep yields on money market securities near their all-time lows.

While investors continue to face a host of unknowns, we believe new opportunities abound. BlackRock was built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. We encourage you to visit www.blackrock.com/newworld for more information.

Sincerely,

  

Rob Kapito
President, BlackRock Advisors, LLC

  “Despite a number of headwinds, higher-risk asset classes boasted strong returns as investors sought meaningful yields in the ongoing low-interest-rate environment.”

Rob Kapito
President, BlackRock Advisors, LLC


Total Returns as of January 31, 2013

         6-month      12-month
US large cap equities
(S&P 500® Index)
           9.91 %           16.78 %  
US small cap equities
(Russell 2000® Index)
           15.51            15.47   
International equities
(MSCI Europe, Australasia,
Far East Index)
           18.61            17.25   
Emerging market equities
(MSCI Emerging
Markets Index)
           13.11            7.64   
3-month Treasury bill
(BofA Merrill Lynch
3-Month US Treasury
Bill Index)
           0.07            0.11   
US Treasury securities
(BofA Merrill Lynch
10-Year US Treasury Index)
           (2.90 )           1.28   
US investment grade
bonds (Barclays US
Aggregate Bond Index)
           (0.29 )           2.59   
Tax-exempt municipal
bonds (S&P Municipal
Bond Index)
           2.21            5.50   
US high yield bonds
(Barclays US Corporate
High Yield 2% Issuer
Capped Index)
           7.37            13.87   

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


  THIS PAGE NOT PART OF YOUR FUND REPORT 3
 
  
The Benefits and Risks of Leveraging    

The Trusts may utilize leverage to seek to enhance the yield and net asset value (“NAV”) of their common shares (“Common Shares”). However, these objectives cannot be achieved in all interest rate environments.

To obtain leverage, the Trusts issue Auction Market Preferred Shares (“AMPS”), Variable Rate Demand Preferred Shares (“VRDP Shares”), Variable Rate Muni Term Preferred Shares (“VMTP Shares”) or Remarketable Variable Rate Muni Term Preferred Shares (“RVMTP Shares”) (collectively, “Preferred Shares”). Preferred Shares pay dividends at prevailing short-term interest rates, and the Trusts invest the proceeds in long-term municipal bonds. In general, the concept of leveraging is based on the premise that the financing cost of assets to be obtained from leverage, which will be based on short-term interest rates, will normally be lower than the income earned by each Trust on its longer-term portfolio investments. 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 will benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is paid to shareholders in the form of dividends, and the value of these portfolio holdings is reflected in the per share NAV. However, in order to benefit shareholders, the yield curve must be positively sloped; that is, short-term interest rates must be lower than long-term interest rates. If the yield curve becomes negatively sloped, meaning short-term interest rates exceed long-term interest rates, income to shareholders will be lower than if the Trusts had not used leverage.

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

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

Furthermore, the value of the 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 redemption value of the Trusts’ Preferred Shares does not fluctuate in relation to interest rates. As a result, changes in interest rates can influence the Trusts’ NAVs positively or negatively in addition to the impact on Trust performance from leverage from Preferred Shares discussed above.

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

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

Under the Investment Company Act of 1940, as amended (the “1940 Act”), the Trusts are permitted to issue senior securities in the form of equity securities (e.g., Preferred Shares) up to 50% of their total managed assets (each Trust’s total assets less the sum by its accrued liabilities). In addition, each Trust voluntarily limits its economic leverage to 50% of its total managed assets for Trusts with AMPS or 45% for Trusts with VRDP Shares, VMTP Shares or RVMTP Shares. As of January 31, 2013, the Trusts had economic leverage from Preferred Shares and/or TOBs as a percentage of their total managed assets as follows:




Percent of
Economic
Leverage

BFZ
39%
BFO
23%
BBF
39%
BTT
36%
BNJ
37%
BNY
39%

Derivative Financial Instruments

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

4 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Municipal Market Overview    

For the Reporting Period Ended January 31, 2013

Municipal bonds delivered strong performance during the reporting period ended January 31, 2013. Market conditions remained favorable even though supply picked up considerably in 2012. As the fiscal situation for municipalities continued to improve, the rate of new issuance came back in line with historical averages. Total new issuance for 2012 was $373 billion, nearly 30% greater than the $288 billion issued in 2011. In the first month of 2013, issuance exceeded market expectations at $26.5 billion, which is roughly 50% higher than January 2012. It is important to note that refunding activity has accounted for a large portion of supply during this period as issuers refinanced their debt at lower interest rates. Refunding issues are easily absorbed by the market because when seasoned bonds are refinanced, issuers re-enter the market via cheaper and predominantly shorter-maturity financing. Investors, in turn, support these new issues with the proceeds from bond maturities or coupon payments.

Increased supply was met with strong demand during the period as investors were starved for yield in a low-rate environment. Investors poured into municipal bond mutual funds, particularly those with long-duration and high-yield investment mandates as they tend to provide higher levels of income. For the 12 months ended January 31, 2013, municipal bond fund inflows totaled $51.75 billion (according to the Investment Company Institute). Considering the extensive period of significant outflows from late 2010 through mid-2011, these robust inflows are telling of the complete turnaround in confidence and investors’ avid search for yield and income.

Municipal market supply-and-demand technicals typically strengthen considerably upon the conclusion of tax season as net negative supply takes hold (i.e., more bonds are being called and maturing than being issued) and this theme remained intact for 2012. In the spring, a resurgence of concerns about Europe’s financial crisis and weakening US economic data drove municipal bond yields lower and prices higher. In addition to income and capital preservation, investors were drawn to the asset class for its relatively low volatility. As global sentiment improved over the summer, municipal bonds outperformed the more volatile US Treasury market. The months of October and November, typically a period of waning demand and weaker performance, were positive for the municipal market in 2012 as supply-and-demand technicals continued to be strong going into the fourth quarter. Additionally, the perception of higher taxes given the outcome of the US Presidential election provided further support to municipal bond prices in November.

Seasonal year-end selling pressure typically results in elevated volatility in the final month of the year; however, December of 2012 was more volatile than the historical norm due to a partial unwinding of November’s rally coupled with uncertainty around the fiscal cliff (i.e., automatic tax increases and spending cuts that had been scheduled to take effect at the beginning of 2013 unless politicians could agree upon alternate measures to reduce the deficit before the end of 2012). Positive performance in January 2013 was the product of renewed demand in an asset class known for its lower volatility and preservation of earnings as tax rates rise. For the month, municipal bonds significantly outperformed the US Treasury market, where yields rose on an uptick in US economic data. As the period drew to a close, municipal market participants were focused on Washington and the scheduled spending cuts as well as the upcoming tax season.

From January 31, 2012 to January 31, 2013, yields declined by 28 basis points (“bps”) to 2.86% on AAA-rated 30-year municipal bonds, but rose 14 bps to 1.82% on 10-year bonds and 8 bps to 0.79% on 5-year bonds (as measured by Thomson Municipal Market Data). Overall, the municipal yield curve remained relatively steep, but flattened over the 12-month time period as the spread between 2- and 30-year maturities tightened by 29 bps, while the spread widened in the 2- to 10-year range 13 bps.

The fundamental picture for municipalities continues to improve. Austerity and de-leveraging have been the general themes across the country as states set their budgets, although a small number of states continue to rely on a “kick-the-can” approach to close their budget gaps, using aggressive revenue projections and accounting gimmicks. It has been over two years since the fiscal problems plaguing state and local governments first became highly publicized and the prophecy of widespread defaults across the municipal market has not materialized. BlackRock maintains the view that municipal bond defaults will be minimal and remain in the periphery and the overall market is fundamentally sound. We continue to recognize that careful credit research and security selection remain imperative amid uncertainty in this economic environment.

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

SEMI-ANNUAL REPORT JANUARY 31, 2013 5
 
  
Trust Summary as of January 31, 2013 BlackRock California Municipal Income Trust

Trust Overview

BlackRock California Municipal Income Trust’s (BFZ) (the “Trust”) investment objective is to provide current income exempt from regular US federal income and California income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal obligations exempt from 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. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Performance

For the six-month period ended January 31, 2013, the Trust returned 4.95% based on market price and 4.49% based on NAV. For the same period, the closed-end Lipper California Municipal Debt Funds category posted an average return of 4.12% based on market price and 4.74% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s concentration of holdings within the 20- to 25-year maturity range contributed positively to performance, as rates declined in that segment of the municipal yield curve. Investments in the health, education, transportation and utilities sectors were strong contributors as these segments outperformed the broader tax-exempt market during the period. Positive results also came from purchases of zero-coupon bonds that Trust management had identified as undervalued. In addition, exposure to higher-quality essential service revenue bonds enhanced performance. The Trust did not, however, hold exposure to the tobacco sector, which posted exceptional gains during the period.

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

Trust Information

Symbol on New York Stock Exchange (“NYSE”)
     
BFZ
Initial Offering Date
     
July 27, 2001
Yield on Closing Market Price as of January 31, 2013 ($16.98)1
     
5.49%
Tax Equivalent Yield2
     
9.70%
Current Monthly Distribution per Common Share3
     
$0.0777
Current Annualized Distribution per Common Share3
     
$0.9324
Economic Leverage as of January 31, 20134
     
39%
1   Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, 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.
3   The distribution rate is not constant and is subject to change.
4   Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 4.
6 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
          BlackRock California Municipal Income Trust

Market Price and Net Asset Value

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





   
1/31/13
   
7/31/12
   
Change
   
High
   
Low
Market Price
        $ 16.98         $ 16.64            2.04 %        $ 17.52         $ 15.92   
Net Asset Value
        $ 16.58         $ 16.32            1.59 %        $ 17.04         $ 16.08   

The following charts show the sector allocation, credit quality allocation and call/maturity structure of the Trust’s long-term investments:

Sector Allocation




   
1/31/13
   
7/31/12
County/City/Special District/School District
           36 %           37 %  
Utilities
           29             29    
Education
           10             9    
Health
           10             12    
Transportation
           9             7    
State
           5             5    
Housing
           1             1    

Credit Quality Allocation1




   
1/31/13
   
7/31/12
AAA/Aaa
           9 %           9 %  
AA/Aa
           72             71    
A
           19             19    
BBB/Baa
                       1    
1   Using the higher of Standard & Poor’s (“S&P’s”) or Moody’s Investors Service (“Moody’s”) ratings.

Call/Maturity Structure2

Calendar Year Ended December 31,
                
 
2013
           1 %  
2014
           1    
2015
           5    
2016
           5    
2017
           10    
2   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
SEMI-ANNUAL REPORT JANUARY 31, 2013 7
 
  
Trust Summary as of January 31, 2013 BlackRock Florida Municipal 2020 Term Trust

Trust Overview

BlackRock Florida Municipal 2020 Term Trust’s (BFO) (the “Trust”) investment objectives are to provide current income exempt from regular federal income tax and Florida intangible personal property tax and to return $15.00 per common share (the initial offering price per share) to holders of common shares on or about December 31, 2020. The Trust seeks to achieve its investment objectives by investing at least 80% of its assets in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and Florida intangible personal property tax. The Trust invests at least 80% of its assets in municipal bonds that are investment grade 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 such securities or synthetically through the use of derivatives. Effective January 1, 2007, the Florida intangible personal property tax was repealed.

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

Performance

For the six-month period ended January 31, 2013, the Trust returned 1.93% based on market price and 2.13% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 3.20% based on market price and 2.79% based on NAV. All returns reflect reinvestment of dividends. The Trust’s discount to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s positive performance was derived mainly from its coupon income component as municipal market performance during the six-month period, although positive, was less robust than it had been in the prior eighteen months. The Trust’s zero-coupon bond holdings also contributed positively due to price appreciation in this segment. Exposure to lower-quality credits boosted results given strong demand from investors seeking higher-yielding investments in the low interest rate environment. Interest rates inched higher during the period, which negatively impacted performance (bond prices fall as rates rise). Exposure to Puerto Rico debt detracted from performance as concerns about credit rating agency downgrades resulted in wider credit spreads (falling prices) for Puerto Rico municipal securities broadly.

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

Trust Information

Symbol on NYSE
     
BFO
Initial Offering Date
     
September 30, 2003
Termination Date (on or about)
     
December 31, 2020
Yield on Closing Market Price as of January 31, 2013 ($15.57)1
     
4.32%
Tax Equivalent Yield2
     
7.63%
Current Monthly Distribution per Common Share3
     
$0.0560
Current Annualized Distribution per Common Share3
     
$0.6720
Economic Leverage as of January 31, 20134
     
23%
1   Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, 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.
3   The distribution rate is not constant and is subject to change.
4   Represents AMPS and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to AMPS and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 4.
8 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
          BlackRock Florida Municipal 2020 Term Trust

Market Price and Net Asset Value

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





   
1/31/13
   
7/31/12
   
Change
   
High
   
Low
Market Price
        $ 15.57         $ 15.60            (0.19 )%        $ 16.34         $ 15.52   
Net Asset Value
        $ 16.05         $ 16.05            0.00 %        $ 16.39         $ 15.86   

The following charts show the sector allocation, credit quality allocation and call/maturity structure of the Trust’s long-term investments:

Sector Allocation




   
1/31/13
   
7/31/12
County/City/Special District/School District
           30 %           40 %  
State
           19             15    
Utilities
           18             14    
Transportation
           14             10    
Health
           12             13    
Corporate
           3             4    
Education
           2             2    
Housing
           2             2    

Credit Quality Allocation1




   
1/31/13
   
7/31/12
AAA/Aaa
           8 %           8 %  
AA/Aa
           47             45    
A
           26             28    
BBB/Baa
           9             8    
Not Rated2
           10             11    
1   Using the higher of S&P’s or Moody’s ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of January 31, 2013 and July 31, 2012, the market value of these securities was $4,077,259, representing 4%, and $7,213,160, representing 5%, respectively, of the Trust’s long-term investments.

Call/Maturity Structure3

Calendar Year Ended December 31,
                
 
2013
           23 %  
2014
           8    
2015
              
2016
              
2017
           12    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
SEMI-ANNUAL REPORT JANUARY 31, 2013 9
 
  
Trust Summary as of January 31, 2013 BlackRock Municipal Income Investment Trust

Trust Overview

BlackRock Municipal Income Investment Trust’s (BBF) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax and Florida intangible personal property tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from 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 at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives. Due to the repeal of the Florida intangible personal property tax, the Board approved an amended policy in September 2008 allowing the Trust the flexibility to invest in municipal obligations regardless of geographical location.

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

Performance

For the six-month period ended January 31, 2013, the Trust returned 2.84% based on market price and 4.07% based on NAV. For the same period, the closed-end Lipper General & Insured Municipal Debt Funds (Leveraged) category posted an average return of 3.22% based on market price and 4.25% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s holdings in the health, utilities and transportation sectors contributed positively to performance for the period. Holdings of lower-quality credits in those sectors were the strongest contributors due to strong demand from investors seeking higher-yielding investments in the low interest rate environment. Conversely, exposure to Puerto Rico sales tax bonds had a negative impact on performance as the continued decline of Puerto Rico’s economy and concerns about credit rating agency downgrades resulted in falling prices across all Puerto Rico securities.

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

Trust Information

Symbol on NYSE
     
BBF
Initial Offering Date
     
July 27, 2001
Yield on Closing Market Price as of January 31, 2013 ($16.27)1
     
5.34%
Tax Equivalent Yield2
     
9.43%
Current Monthly Distribution per Common Share3
     
$0.072375
Current Annualized Distribution per Common Share3
     
$0.868500
Economic Leverage as of January 31, 20134
     
39%
1   Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, 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.
3   The distribution rate is not constant and is subject to change.
4   Represents VRDP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VRDP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 4.
10 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
          BlackRock Municipal Income Investment Trust

Market Price and Net Asset Value

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





   
1/31/13
   
7/31/12
   
Change
   
High
   
Low
Market Price
        $ 16.27         $ 16.25            0.12 %        $ 16.75         $ 15.51   
Net Asset Value
        $ 16.12         $ 15.91            1.32 %        $ 16.74         $ 15.67   

The following charts show the sector allocation, credit quality allocation and call/maturity structure of the Trust’s long-term investments:

Sector Allocation




   
1/31/13
   
7/31/12
County/City/Special District/School District
           23 %           22 %  
Health
           19             20    
Utilities
           16             15    
Transportation
           16             12    
State
           12             16    
Education
           11             12    
Corporate
           1             1    
Housing
           1             1    
Tobacco
           1             1    

Credit Quality Allocation1




   
1/31/13
   
7/31/12
AAA/Aaa
           14 %           17 %  
AA/Aa
           54             54    
A
           27             23    
BBB/Baa
           4             5    
Not Rated
           1             1    
1   Using the higher of S&P’s or Moody’s ratings.

Call/Maturity Structure2

Calendar Year Ended December 31,
                
 
2013
              
2014
           1 %  
2015
              
2016
           1    
2017
           1    
2   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
SEMI-ANNUAL REPORT JANUARY 31, 2013 11
 
  
Trust Summary as of January 31, 2013 BlackRock Municipal Target Term Trust

Trust Overview

BlackRock Municipal Target Term Trust’s (BTT) (the “Trust”) investment objectives are to provide current income exempt from regular 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 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 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 such securities or synthetically through the use of derivatives.

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

Trust Information

Symbol on NYSE
     
BTT
Initial Offering Date
     
August 30, 2012
Termination Date (on or about)
     
December 31, 2030
Current Distribution Rate on Closing Market Price as of January 31, 2013 ($23.94)1
     
4.96%
Tax Equivalent Rate2
     
8.76%
Current Monthly Distribution per Common Share3
     
$0.0990
Current Annualized Distribution per Common Share3
     
$1.1880
Economic Leverage as of January 31, 20134
     
36%
1   Current Distribution Rate on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. The current distribution rate may consist of income, net realized gains and/or a tax return of capital. See the Additional Information — Section 19(a) Notice for the estimated character of dividends and distributions. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, 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.
3   The distribution rate is not constant and is subject to change. A portion of the distribution may be deemed a tax return of capital or net realized gain at fiscal year end.
4   Represents RVMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to RVMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 4.
12 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
          BlackRock Municipal Target Term Trust

Market Price and Net Asset Value

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





   
1/31/13
   
8/30/12
   
Change
   
High
   
Low
Market Price
        $ 23.94         $ 25.00            (4.24 )%        $ 25.49         $ 22.75   
Net Asset Value
        $ 23.86         $ 23.88            (0.08 )%        $ 24.56         $ 23.69   

The following charts show the sector allocation, credit quality allocation and call/maturity structure of the Trust’s long-term investments:

Sector Allocation




   
1/31/13
County/City/Special District/School District
           23 %  
Transportation
           22    
State
           14    
Health
           12    
Corporate
           9    
Utilities
           8    
Education
           6    
Housing
           4    
Tobacco
           2    

Credit Quality Allocation1

        1/31/13

AAA/Aaa
           1 %  
AA/Aa
           40    
A
           42    
BBB/Baa
           9    
BB/Ba
           1    
B
           3    
Not Rated
           4    
1   Using the higher of S&P’s or Moody’s ratings.

Call/Maturity Structure2

Calendar Year Ended December 31,
                
 
2013
           1 %  
2014
              
2015
              
2016
              
2017
           2    
2   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
SEMI-ANNUAL REPORT JANUARY 31, 2013 13
 
  
Trust Summary as of January 31, 2013 BlackRock New Jersey Municipal Income Trust

Trust Overview

BlackRock New Jersey Municipal Income Trust’s (BNJ) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax and New Jersey gross income tax. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New Jersey gross income taxes. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Performance

For the six-month period ended January 31, 2013, the Trust returned 4.26% based on market price and 3.37% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 3.10% based on market price and 3.65% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which widened during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust’s holdings in the health, corporate-backed and housing sectors contributed positively to performance for the period. Holdings of lower-quality credits in those sectors were the strongest contributors due to strong demand from investors seeking higher-yielding investments in the low interest rate environment. Conversely, exposure to Puerto Rico sales tax bonds had a negative impact on performance as the continued decline of Puerto Rico’s economy and concerns about credit rating agency downgrades resulted in falling prices across all Puerto Rico securities.

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

Trust Information

Symbol on NYSE
     
BNJ
Initial Offering Date
     
July 27, 2001
Yield on Closing Market Price as of January 31, 2013 ($17.90)1
     
5.44%
Tax Equivalent Yield2
     
9.61%
Current Monthly Distribution per Common Share3
     
$0.0811
Current Annualized Distribution per Common Share3
     
$0.9732
Economic Leverage as of January 31, 20134
     
37%
1   Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, 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.
3   The Monthly Distribution per Common Share, declared on March 1, 2013, was decreased to $0.0751 per share. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.
4   Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 4.
14 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
          BlackRock New Jersey Municipal Income Trust

Market Price and Net Asset Value

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





   
1/31/13
   
7/31/12
   
Change
   
High
   
Low
Market Price
        $ 17.90         $ 17.67            1.30 %        $ 18.60         $ 16.94   
Net Asset Value
        $ 16.24         $ 16.17            0.43 %        $ 16.75         $ 15.93   

The following charts show the sector allocation, credit quality allocation and call/maturity structure of the Trust’s long-term investments:

Sector Allocation




   
1/31/13
   
7/31/12
State
           28 %           35 %  
Transportation
           21             12    
Health
           11             12    
County/City/Special District/School District
           10             9    
Education
           10             11    
Housing
           9             10    
Corporate
           6             6    
Utilities
           5             5    
Tobacco
                          

Credit Quality Allocation1




   
1/31/13
   
7/31/12
AAA/Aaa
           5 %           4 %  
AA/Aa
           34             36    
A
           36             33    
BBB/Baa
           12             13    
BB/Ba
           4             5    
B
           3             3    
Not Rated2
           6             6    
1   Using the higher of S&P’s or Moody’s ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of January 31, 2013 and July 31, 2012, the market value of these securities was $8,483,135 and $8,510,074, each representing 4%, respectively, of the Trust’s long-term investments.

Call/Maturity Structure3

Calendar Year Ended December 31,
                
 
2013
           12 %  
2014
           2    
2015
              
2016
           2    
2017
           6    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
SEMI-ANNUAL REPORT JANUARY 31, 2013 15
 
  
Trust Summary as of January 31, 2013 BlackRock New York Municipal Income Trust

Trust Overview

BlackRock New York Municipal Income Trust’s (BNY) (the “Trust”) investment objective is to provide current income exempt from regular federal income tax and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing primarily in municipal bonds exempt from federal income taxes (except that the interest may be subject to the federal alternative minimum tax) and New York State and New York City personal income taxes. The Trust invests at least 80% of its assets in municipal bonds that are investment grade quality at the time of investment. The Trust may invest directly in such securities or synthetically through the use of derivatives.

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

Performance

For the six-month period ended January 31, 2013, the Trust returned 3.43% based on market price and 3.48% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 2.41% based on market price and 2.78% based on NAV. All returns reflect reinvestment of dividends. The Trust’s premium to NAV, which narrowed during the period, accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trust benefited from its exposure to higher-yielding sectors and lower-quality bonds, which performed well due to strong demand from investors seeking higher-yielding investments in the low interest rate environment. The Trust’s exposures to transportation and education boosted returns as these sectors performed well during the period. Holdings of health and corporate-backed bonds were also strong contributors. Additionally, the Trust benefited from the roll-down effect, whereby effective maturities become shorter with the passing of the year and therefore bonds are evaluated at lower yield levels, which, in a steep yield curve environment, results in higher prices. Detracting from performance was the Trust’s long duration posture (higher sensitivity to interest rates) as municipal bond yields moved slightly higher in most maturities, while remaining unchanged or moving slightly lower in the 20- to 25-year range. Also having a negative impact on results was the Trust’s exposure to the tax-backed sector (the Trust’s most significant credit exposure), which was one of the weaker performing sectors for the period. The strongest performing sector during the period was tobacco, in which the Trust held limited exposure. Exposure to Puerto Rico debt detracted from performance as concerns about credit rating agency downgrades resulted in wider credit spreads (falling prices) for Puerto Rico municipal securities broadly.

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

Trust Information

Symbol on NYSE
     
BNY
Initial Offering Date
     
July 27, 2001
Yield on Closing Market Price as of January 31, 2013 ($16.82)1
     
5.35%
Tax Equivalent Yield2
     
9.45%
Current Monthly Distribution per Common Share3
     
$0.0750
Current Annualized Distribution per Common Share3
     
$0.9000
Economic Leverage as of January 31, 20134
     
39%
1   Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results.
2   Tax equivalent yield assumes the maximum marginal federal tax rate of 43.4%, 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.
3   The Monthly Distribution per Common Share, declared on March 1, 2013, was decreased to $0.0690 per share. The Yield on Closing Market Price, Current Monthly Distribution per Common Share and Current Annualized Distribution per Common Share do not reflect the new distribution rate. The new distribution rate is not constant and is subject to change in the future.
4   Represents VMTP Shares and TOBs as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to VMTP Shares and TOBs, minus the sum of accrued liabilities. For a discussion of leveraging techniques utilized by the Trust, please see The Benefits and Risks of Leveraging on page 4.
16 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
          BlackRock New York Municipal Income Trust

Market Price and Net Asset Value

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





   
1/31/13
   
7/31/12
   
Change
   
High
   
Low
Market Price
        $ 16.82         $ 16.73            0.54 %        $ 17.24         $ 15.92   
Net Asset Value
        $ 15.62         $ 15.53            0.58 %        $ 16.16         $ 15.30   

The following charts show the sector allocation, credit quality allocation and call/maturity structure of the Trust’s long-term investments:

Sector Allocation




   
1/31/13
   
7/31/12
County/City/Special District/School District
           21 %           23 %  
Transportation
           16             19    
Education
           16             14    
Utilities
           12             12    
Health
           10             8    
Corporate
           9             9    
State
           9             6    
Housing
           6             8    
Tobacco
           1             1    

Credit Quality Allocation1




   
1/31/13
   
7/31/12
AAA/Aaa
           13 %           11 %  
AA/Aa
           34             36    
A
           34             32    
BBB/Baa
           11             13    
BB/Ba
           2             1    
Not Rated
           6 2           7    
1   Using the higher of S&P’s or Moody’s ratings.
2   The investment advisor has deemed certain of these non-rated securities to be of investment grade quality. As of January 31, 2013, the market value of these securities was $2,502,575 representing 1%, of the Trust’s long-term investments.

Call/Maturity Structure3

Calendar Year Ended December 31,
                
 
2013
           15 %  
2014
              
2015
           6    
2016
           4    
2017
           11    
3   Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.
SEMI-ANNUAL REPORT JANUARY 31, 2013 17
 
  
Schedule of Investments January 31, 2013 (Unaudited) BlackRock California Municipal Income Trust (BFZ)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)

     Value
California — 92.0%
Corporate — 0.2%
City of Chula Vista California, Refunding RB, San Diego Gas & Electric, Series A, 5.88%, 2/15/34
        $    680          $      801,414     
County/City/Special District/School District — 33.5%
Butte-Glenn Community College District, GO, Election of 2002, Series C, 5.50%, 8/01/30
           8,425            9,877,554   
California State Public Works Board, RB, Various Capital Projects, Sub-Series I-1, 6.63%, 11/01/34
           7,950            9,874,377   
Cerritos Community College District, GO, Election of 2004, Series C, 5.25%, 8/01/31
           3,000            3,460,230   
City of San Jose California Hotel Tax, RB, Convention Center Expansion & Renovation Project:
                                        
6.13%, 5/01/31
           500             610,555   
6.50%, 5/01/36
           1,210            1,492,499   
6.50%, 5/01/42
           2,225            2,712,053   
County of Kern California, COP, Capital Improvements Projects, Series A (AGC), 6.00%, 8/01/35
           2,000            2,344,000   
County of Los Angeles California Public Works Financing Authority, Refunding RB, Multiple Capital Projects II, 5.00%, 8/01/42
           4,640            5,174,574   
Evergreen Elementary School District, GO, Election of 2006, Series B (AGC), 5.13%, 8/01/33
           2,500            2,835,300   
Grossmont Healthcare District, GO, Election of 2006, Series B:
                                        
6.00%, 7/15/34
           2,235            2,751,218   
6.13%, 7/15/40
           2,000            2,453,960   
Long Beach Unified School District California, GO, Refunding, Election of 2008, Series A, 5.75%, 8/01/33
           4,135            4,909,361   
Los Alamitos Unified School District California, GO, School Facilities Improvement District No. 1, 5.50%, 8/01/33
           5,760            6,665,126   
Los Angeles Municipal Improvement Corp., Refunding RB, Real Property, Series B (AGC), 5.50%, 4/01/30
           4,975            5,676,276   
Modesto Irrigation District, COP, Capital Improvements, Series A:
                                        
5.75%, 10/01/29
           3,000            3,462,990   
5.75%, 10/01/34
           180             204,953   
Oak Grove School District California, GO, Election of 2008, Series A, 5.50%, 8/01/33
           6,000            7,014,900   
Orange County Water District, COP, Refunding, 5.25%, 8/15/34
           2,000            2,360,260   
Pico Rivera Public Financing Authority, RB, 5.75%, 9/01/39
           2,000            2,290,300   
Pittsburg Unified School District, GO, Election of 2006, Series B (AGC), 5.50%, 8/01/34
           2,000            2,282,260   
Municipal Bonds          Par
(000)

     Value
California (continued)
County/City/Special District/School District (concluded)
Sacramento Area Flood Control Agency, Special Assessment Bonds, Consolidated Capital Assessment District, 5.25%, 10/01/32
        $ 3,000         $    3,504,510     
San Diego Community College District California, GO, Election of 2002, 5.25%, 8/01/33
           1,500            1,823,295   
San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36
           6,500            7,353,385   
San Jose Financing Authority, Refunding RB, Civic Center Project, Series B (AMBAC), 5.00%, 6/01/37
           6,000            6,019,740   
San Leandro Unified School District California, GO, Election of 2010, Series A, 5.75%, 8/01/41
           3,060            3,674,540   
Santa Ana Unified School District, GO, Election of 2008, Series A:
                                        
5.50%, 8/01/30
           6,455            7,358,894   
5.13%, 8/01/33
           10,000            11,043,400   
Santa Clara County Financing Authority, Refunding LRB, Series L, 5.25%, 5/15/36
           21,000            23,915,640   
Snowline Joint Unified School District, COP, Refunding, Refining Project (AGC), 5.75%, 9/01/38
           2,250            2,599,650   
Torrance Unified School District California, GO, Election of 2008, Measure Z, 6.00%, 8/01/33
           4,000            4,784,760   
Tustin Unified School District, GO, Election of 2008, Series B, 5.25%, 8/01/31
           3,445            4,109,988   
West Contra Costa Unified School District, GO, Election of 2010, Series A (AGM), 5.25%, 8/01/32
           4,760            5,628,795   
Westminster Redevelopment Agency California, Tax Allocation Bonds, Subordinate, Commercial Redevelopment Project No. 1 (AGC), 6.25%, 11/01/39
           7,750            9,286,128   
William S. Hart Union High School District, GO, CAB, Refunding, Series B (AGM) (a):
                                        
4.68%, 8/01/34
           11,150            4,124,051   
4.69%, 8/01/35
           9,800            3,451,756   
 
                         177,131,278   
Education — 2.8%
                                        
California Educational Facilities Authority, Refunding RB, San Francisco University, 6.13%, 10/01/36
           6,280            7,736,332   
California Municipal Finance Authority, RB, Emerson College, 5.75%, 1/01/33
           2,500            2,976,100   
University of California, RB, Series O, 5.38%, 5/15/34
           490             579,939   
University of California, Refunding RB, Series S, 5.00%, 5/15/35
           3,175            3,640,233   
 
                         14,932,604   

Portfolio Abbreviations

To simplify the listings of portfolio holdings in the Schedules of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:
ACA
 
American Capital Access Corp.
  
GO
  
General Obligation Bonds
AGC
 
Assured Guaranty Corp.
  
HDA
  
Housing Development Authority
AGM
 
Assured Guaranty Municipal Corp.
  
HFA
  
Housing Finance Agency
AMBAC
 
American Municipal Bond Assurance Corp.
  
IDA
  
Industrial Development Authority
AMT
 
Alternative Minimum Tax (subject to)
  
IDB
  
Industrial Development Board
ARB
 
Airport Revenue Bonds
  
ISD
  
Independent School District
BARB
 
Building Aid Revenue Bonds
  
LRB
  
Lease Revenue Bonds
BHAC
 
Berkshire Hathaway Assurance Corp.
  
M/F
  
Multi-Family
CAB
 
Capital Appreciation Bonds
  
NPFGC
  
National Public Finance Guarantee Corp.
CIFG
 
CDC IXIS Financial Guaranty
  
PILOT
  
Payment in Lieu of Taxes
COP
 
Certificates of Participation
  
Radian
  
Radian Financial Guaranty
EDA
 
Economic Development Authority
  
RB
  
Revenue Bonds
EDC
 
Economic Development Corp.
  
S/F
  
Single-Family
ERB
 
Education Revenue Bonds
  
SONYMA
  
State of New York Mortgage Agency
FHA
 
Federal Housing Administration
  
VRDN
  
Variable Rate Demand Notes
GARB
 
General Airport Revenue Bonds
                 

See Notes to Financial Statements.

18 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock California Municipal Income Trust (BFZ)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)

     Value
California (continued)
Health — 15.9%
                                        
ABAG Finance Authority for Nonprofit Corps, Refunding RB, Sharp Healthcare:
                                        
6.38%, 8/01/34
        $  3,055         $    3,275,143     
6.25%, 8/01/39
           3,775            4,484,851   
Series A, 6.00%, 8/01/30
           2,275            2,791,380   
California Health Facilities Financing Authority, RB:
                                        
Adventist Health System West, Series A, 5.75%, 9/01/39
           6,655            7,723,527   
Catholic Healthcare West, Series J, 5.63%, 7/01/32
           7,000            7,739,970   
Children’s Hospital, Series A, 5.25%, 11/01/41
           2,785            3,118,253   
Scripps Health, Series A, 5.00%, 11/15/32
           225             257,101   
Scripps Health, Series A, 5.00%, 11/15/40
           3,555            4,006,876   
Sutter Health, Series A, 5.25%, 11/15/46
           9,845            10,744,144   
Sutter Health, Series B, 6.00%, 8/15/42
           6,015            7,228,887   
California Health Facilities Financing Authority, Refunding RB:
                                        
Catholic Healthcare West, Series A, 6.00%, 7/01/29
           1,000            1,191,250   
Catholic Healthcare West, Series A, 6.00%, 7/01/34
           4,400            5,215,892   
Catholic Healthcare West, Series A, 6.00%, 7/01/39
           3,050            3,603,788   
Providence Health, 6.50%, 10/01/18 (b)
           25             32,552   
Providence Health, 6.50%, 10/01/38
           4,090            4,944,401   
California Statewide Communities Development Authority, RB, Series A Kaiser Permanente, 5.00%, 4/01/42
           7,660            8,598,733   
California Statewide Communities Development Authority, Refunding RB, Catholic Healthcare West:
                                        
Series B, 5.50%, 7/01/30
           2,960            3,306,734   
Series E, 5.50%, 7/01/31
           4,965            5,511,646   
 
                         83,775,128   
State — 8.3%
                                        
California State Public Works Board, RB:
                                        
Department of Education, Riverside Campus Project, Series B, 6.50%, 4/01/34
           9,000            10,961,820   
Various Capital Projects, Sub-Series I-1, 6.38%, 11/01/34
           5,025            6,164,268   
State of California, GO, Various Purpose:
                                        
6.00%, 3/01/33
           5,080            6,317,031   
6.50%, 4/01/33
           5,935            7,379,579   
6.00%, 4/01/38
           10,675            12,790,785   
 
                         43,613,483   
Transportation — 13.0%
                                        
City of Los Angeles Department of Airports, RB, Los Angeles International Airports, Series B, 5.00%, 5/15/31
           7,530            8,615,073   
City of Los Angeles Department of Airports, Refunding RB:
                                        
Los Angeles International Airport, Sub-Series C, 5.25%, 5/15/38
           1,455            1,630,531   
Series A, 5.00%, 5/15/34
           6,025            6,832,531   
City of San Jose California, Refunding ARB, California Airport, Series A-1, AMT:
                                        
5.75%, 3/01/34
           2,275            2,639,546   
6.25%, 3/01/34
           2,650            3,190,176   
County of Orange California, ARB, Series B, 5.75%, 7/01/34
           8,000            9,234,480   
County of Sacramento California, ARB:
                                        
PFC/Grant, Sub-Series D, 6.00%, 7/01/35
           3,000            3,540,420   
Senior Series B, 5.75%, 7/01/39
           1,850            2,171,215   
Los Angeles Harbor Department, RB, Series B, 5.25%, 8/01/34
           5,530            6,467,833   
San Diego County Regional Airport Authority, RB, Senior, Series B, AMT:
                                        
5.00%, 7/01/38
           3,000            3,373,170   
5.00%, 7/01/43
           3,220            3,602,665   
Municipal Bonds          Par
(000)

     Value
California (concluded)
Transportation (concluded)
                                        
San Francisco City & County Airports Commission, RB, Series E, 6.00%, 5/01/39
        $  6,750         $    8,048,565     
San Joaquin County Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A:
                                        
6.00%, 3/01/36
           2,880            3,594,413   
5.50%, 3/01/41
           5,000            5,922,750   
 
                         68,863,368   
Utilities — 18.3%
                                        
Anaheim Public Financing Authority, RB, Anaheim Electric System Distribution Facilities:
                                        
5.25%, 10/01/39
           1,500            1,697,685   
Series A, 5.38%, 10/01/36
           7,690            9,095,501   
California Infrastructure & Economic Development Bank, RB, California Independent System Operator, Series A, 6.25%, 2/01/39
           5,500            5,991,425   
Calleguas-Las Virgines Public Financing Authority California, RB, Calleguas Municipal Water District Project, Series A (NPFGC), 5.13%, 7/01/32
           4,000            4,336,240   
City of Chula Vista California, Refunding RB, San Diego Gas & Electric:
                                        
Series D, 5.88%, 1/01/34
           2,500            2,946,375   
Series E, 5.88%, 1/01/34
           6,500            7,660,575   
City of Los Angeles California Wastewater System, Refunding RB:
                                        
Series A, 5.00%, 6/01/39
           2,000            2,236,220   
Series A (NPFGC), 5.00%, 6/01/34
           10,000            10,879,600   
Sub-Series A, 5.00%, 6/01/32
           4,000            4,631,280   
City of Petaluma California Wastewater, Refunding RB, 6.00%, 5/01/36
           5,625            6,909,919   
Dublin-San Ramon Services District, Refunding RB, 6.00%, 8/01/41
           2,425            2,948,655   
Los Angeles Department of Water & Power, RB:
                                        
Power System, Sub-Series A-1, 5.25%, 7/01/38
           9,000            10,344,690   
Series A, 5.38%, 7/01/34
           3,050            3,578,870   
Los Angeles Department of Water & Power, Refunding RB, Power System:
                                        
Series A, 5.25%, 7/01/39
           4,000            4,657,480   
Sub-Series A-2, 5.00%, 7/01/30
           2,200            2,239,116   
San Diego County Water Authority, COP, Refunding, Series A (NPFGC), 5.00%, 5/01/32
           1,850            1,860,046   
San Diego Public Facilities Financing Authority, Refunding RB:
                                        
Senior Series A, 5.25%, 5/15/34
           9,520            10,944,763   
Series A, 5.25%, 8/01/38
           3,390            3,842,056   
 
                         96,800,496   
Total Municipal Bonds in California
                         485,917,771   
 
Multi-State — 1.6%
Housing — 1.6%
                                        
Centerline Equity Issuer Trust (c)(d):
                                        
7.20%, 11/15/14
           3,500            3,824,695   
5.75%, 5/15/15
           500             543,710   
6.00%, 5/15/15
           1,500            1,638,510   
6.00%, 5/15/19
           1,000            1,188,630   
6.30%, 5/15/19
           1,000            1,203,920   
Total Municipal Bonds in Multi-State
                         8,399,465   
Total Municipal Bonds — 93.6%
                         494,317,236   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 19
 
  
Schedule of Investments (continued)   BlackRock California Municipal Income Trust (BFZ)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
         Par
(000)
     Value
California — 69.7%
County/City/Special District/School District — 25.4%
                                        
El Dorado Union High School District, GO, Election of 2008, 5.00%, 8/01/35
        $  5,020         $    5,657,490     
Los Angeles Community College District California, GO:
                                        
Election of 2001, Series A (AGM), 5.00%, 8/01/32
           8,000            9,148,720   
Election of 2003, Series F-1, 5.00%, 8/01/33
           5,000            5,736,300   
Election of 2008, Series C, 5.25%, 8/01/39 (f)
           12,900            15,651,699   
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33
           20,131            25,196,077   
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34
           5,000            5,627,750   
Mount San Antonio Community College District California, GO, Election of 2001, Series C (AGM), 5.00%, 9/01/31
           10,770            11,602,736   
Ohlone Community College District, GO, Series B (AGM), 5.00%, 8/01/30
           12,499            13,921,787   
San Bernardino Community College District California, GO, Election of 2002, Series C (AGM), 5.00%, 8/01/31
           2,000            2,208,120   
San Diego Community College District California, GO:
                                        
Election of 2002, 5.25%, 8/01/33
           10,484            12,744,331   
Election of 2006 (AGM), 5.00%, 8/01/32
           9,000            10,398,060   
San Jose Unified School District Santa Clara County California, GO, Election of 2002, Series D, 5.00%, 8/01/32
           14,625            16,492,882   
 
                         134,385,952   
Education — 14.1%
                                        
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (f)
           10,395            12,171,818   
Grossmont Union High School District, GO, Election of 2004, 5.00%, 8/01/33
           13,095            14,497,678   
Mount Diablo California Unified School District, GO, Election of 2002, 5.00%, 6/01/31
           4,000            4,235,840   
San Mateo County Community College District, GO, Election of 2005, Series B, 5.00%, 9/01/31
           8,630            9,730,066   
University of California, RB:
                                        
Limited Project, Series D (AGM), 5.00%, 5/15/41
           2,600            2,903,004   
Series O, 5.75%, 5/15/34
           12,300            14,899,769   
University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37
           13,841            16,045,203   
 
                         74,483,378   
Transportation — 1.1%
                                        
City of Los Angeles California Department of Airports, Refunding RB, Los Angeles International Airport, Senior Series A, 5.00%, 5/15/40
           4,999            5,656,185   
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
         Par
(000)
     Value
California (concluded)
Utilities — 29.1%
                                        
California State Department of Water Resources, Refunding RB, Central Valley Project, Series AE, 5.00%, 12/01/29
        $  7,000         $    8,209,180   
City of Napa California Water System, RB (AMBAC), 5.00%, 5/01/35
           3,000            3,253,830   
East Bay Municipal Utility District, RB, Sub-Series A (NPFGC), 5.00%, 6/01/35
           3,000            3,259,530   
Eastern Municipal Water District, COP, Series H, 5.00%, 7/01/33
           18,002            20,362,917   
Los Angeles Department of Water & Power, RB:
                                        
Power System, Sub-Series A-1 (AMBAC), 5.00%, 7/01/37
           15,998            18,018,904     
Water System, Sub-Series A-2 (AGM), 5.00%, 7/01/35
           2,000            2,245,060   
Metropolitan Water District of Southern California, RB, Series A, 5.00%, 7/01/37
           11,180            12,761,187   
Orange County Sanitation District, COP, Series B (AGM), 5.00%, 2/01/37
           14,700            16,508,247   
Orange County Water District, COP, Refunding, 5.00%, 8/15/39
           10,480            11,963,130   
San Diego County Water Authority, COP, Refunding, Series 2008-A (AGM), 5.00%, 5/01/33
           14,290            16,152,844   
San Diego Public Facilities Financing Authority, Refunding RB, Senior Series A, 5.25%, 5/15/39
           12,457            14,183,231   
San Francisco City & County Public Utilities Commission, RB, Water System Improvement Project, Sub-Series A, 5.00%, 11/01/37
           12,698            14,745,392   
San Francisco City & County Public Utilities Commission, Refunding RB, Senior Series A, 5.00%, 11/01/35
           10,625            12,236,347   
 
                         153,899,799   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 69.7%
                         368,425,314   
Total Long-Term Investments
(Cost — $766,631,279) — 163.3%
                         862,742,550   
 

 
Short-Term Securities
           Shares                  
BIF California Municipal Money Fund, 0.00% (g)(h)
     
2,217,891
        2,217,891   
Total Short-Term Securities
(Cost — $2,217,891) — 0.4%
                         2,217,891   
Total Investments (Cost—$768,849,170) — 163.7%
                         864,960,441   
Other Assets Less Liabilities — 0.7%
                         3,894,870   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (32.0)%
                         (169,255,288 )  
VMTP Shares, at Liquidation Value — (32.4)%
                         (171,300,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 528,300,023   

Notes to Schedule of Investments

(a)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(c)      
Security represents a beneficial interest in a trust. The collateral deposited into the trust is federally tax-exempt revenue bonds issued by various state or local governments, or their respective agencies or authorities. The security is subject to remarketing prior to its stated maturity.
(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)      
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(f)      
All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $13,385,000.

See Notes to Financial Statements.

20 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments (concluded)   BlackRock California Municipal Income Trust (BFZ)
 
(g)      
Investments in issuers considered to be an affiliate of the Trust during the six months ended January 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate



   
Shares Held at
July 31, 2012

   
Net
Activity

   
Shares Held at
January 31, 2013

   
Income
BIF California Municipal Money Fund
     
7,953,278
  
(5,735,387)
  
2,217,891
  
$17

(h)      
Represents the current yield as of report date.
•        
Financial futures contracts as of January 31, 2013 were as follows:

Contracts
Sold



   
Issue
   
Exchange
   
Expiration
   
Notional
Value

   
Unrealized
Appreciation

(150)
     
10-Year US Treasury Note
  
Chicago Board of Trade
  
March 2013
  
$19,692,188
     $ 150,929     

     
For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
     
Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
     
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
     
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
     
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
       
The following tables summarize the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of January 31, 2013:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Investments:
                                                                                
Long-Term Investments1
                    $ 862,742,550                     $ 862,742,550   
Short-Term Securities
        $ 2,217,891                                    2,217,891   
Total
        $ 2,217,891         $  862,742,550                     $  864,960,441    
1 See above Schedule of Investments for values in each sector.




   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                      
Liabilities:
                                                                                
Interest rate contracts
        $   150,929                                 $      150,929    
2 Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument.

       
Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of January 31, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Cash pledged as collateral for financial futures contracts
        $ 198,000                                 $ 198,000   
Liabilities:
                                                                                
Bank overdraft
                    $ (159,332 )                       (159,332 )  
TOB trust certificates
                       (169,154,073 )                       (169,154,073 )  
VMTP Shares
                       (171,300,000 )                       (171,300,000 )  
Total
        $   198,000         $ (340,613,405 )                    $ (340,415,405 )  

       
There were no transfers between levels during the six months ended January 31, 2013.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 21
 
  
Schedule of Investments January 31, 2013 (Unaudited) BlackRock Florida Municipal 2020 Term Trust (BFO)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)

     Value
Florida — 125.8%
Corporate — 4.1%
                                        
Hillsborough County IDA, Refunding RB, Tampa Electric Co. Project, Series A, 5.65%, 5/15/18
        $  1,000         $   1,191,920     
Palm Beach County Solid Waste Authority, Refunding RB, 5.00%, 10/01/20
           2,000            2,437,960   
 
                         3,629,880   
County/City/Special District/School District — 38.3%
                                        
Broward County School Board Florida, COP, Series A (AGM), 5.25%, 7/01/22
           2,500            2,900,200   
Broward County School Board Florida, COP, Refunding, Series A, 5.00%, 7/01/20
           2,000            2,382,760   
City of Jacksonville Florida, Refunding RB, Better Jacksonville Sales Tax, 5.00%, 10/01/20
           4,000            4,879,080   
County of Hillsborough Florida, RB (AMBAC), 5.00%, 11/01/20
           5,545            6,422,607   
Florida State Board of Education, GO, Refunding:
                                        
Capital Outlay, Series B, 5.00%, 6/01/20
           485             594,169   
Public Education, Series I, 5.00%, 6/01/18
           385             394,933   
Hillsborough County School Board, COP (NPFGC), 5.00%, 7/01/13 (a)
           1,000            1,019,770   
Miami-Dade County Educational Facilities Authority Florida, RB, University of Miami, Series A (AMBAC), 5.00%, 4/01/14 (a)
           1,000            1,054,930   
Miami-Dade County School Board, COP, Refunding, Series B (AGC), 5.25%, 5/01/21
           4,000            4,719,480   
Northern Palm Beach County Improvement District, Special Assessment Bonds, Refunding, Water Control & Improvement District No. 43, Series B (ACA), 4.50%, 8/01/22
           1,000            1,020,820   
Sterling Hill Community Development District, Special Assessment Bonds, Refunding, Series A, 6.10%, 5/01/23
           3,490            3,139,709   
Stevens Plantation Improvement Project Dependent Special District, RB, 6.38%, 5/01/13 (b)(c)
           2,425            1,820,932   
Village Center Community Development District, RB, Sub-Series B, 6.35%, 1/01/18
           2,000            2,027,020   
Village Community Development District No. 5 Florida, Special Assessment Bonds, Series A, 6.00%, 5/01/13 (a)
           975             995,309   
Watergrass Community Development District, Special Assessment Bonds, Series B, 5.13%, 11/01/14
           955             756,503   
 
                         34,128,222   
Education — 2.9%
                                        
Florida State Board of Governors, Refunding RB, University of Central Florida, Series A, 5.00%, 7/01/18
           500             587,580   
Florida State Higher Educational Facilities Financial Authority, Refunding RB, University of Tampa Project, Series A, 5.00%, 4/01/20
           1,000            1,154,200   
Orange County Educational Facilities Authority, RB, Rollins College Project (AMBAC), 5.25%, 12/01/22
           725             853,136   
 
                         2,594,916   
Health — 15.3%
                                        
Highlands County Health Facilities Authority, Refunding RB, Hospital, Adventist Health, Series I, 5.00%, 11/15/20
           2,155            2,560,118   
Hillsborough County IDA, RB, H. Lee Moffitt Cancer Center Project, Series A, 5.25%, 7/01/22
           1,500            1,639,245   
Marion County Hospital District Florida, Refunding RB, Health System, Munroe Regional, 5.00%, 10/01/22
           1,500            1,661,685   
Orange County Health Facilities Authority, Refunding RB, Mayflower Retirement Center:
                                        
3.00%, 6/01/15
           200             202,690   
3.00%, 6/01/16
           140             141,541   
3.00%, 6/01/17
           190             191,018   
Municipal Bonds          Par
(000)

     Value
Florida (continued)
Health (concluded)
                                        
Orange County Health Facilities Authority, Refunding RB, Mayflower Retirement Center (concluded):
                                        
3.25%, 6/01/18
        $    195          $     197,853     
3.50%, 6/01/19
           200             203,466   
Palm Beach County Health Facilities Authority, Refunding RB:
                                        
Acts Retirement-Life Communities, Inc., 5.00%, 11/01/22
           4,735            5,323,845   
Bethesda Healthcare System Project, Series A (AGM), 5.00%, 7/01/20
           1,285            1,547,513   
 
                         13,668,974   
Housing — 1.7%
                                        
Florida Housing Finance Corp., RB, Homeowner Mortgage, Series 2, AMT (Ginnie Mae), 4.70%, 7/01/22
           815             857,290   
Jacksonville Housing Finance Authority, Refunding RB, Series A-1, AMT (Ginnie Mae), 5.63%, 10/01/39
           270             288,725   
Manatee County Housing Finance Authority, RB, Series A, AMT (Fannie Mae), 5.90%, 9/01/40
           345             375,588   
 
                         1,521,603   
State — 22.6%
                                        
Florida Municipal Loan Council, RB, Series D (AGM):
                                        
5.00%, 10/01/19
           1,050            1,248,398   
4.00%, 10/01/20
           1,105            1,245,169   
4.00%, 10/01/21
           500             562,665   
Florida Municipal Loan Council, Refunding RB:
                                        
CAB, Series A (NPFGC), 3.33%, 4/01/20 (d)
           4,000            3,156,520   
Series B-2 (AGM), 4.00%, 10/01/17
           580             650,818   
Series B-2 (AGM), 4.00%, 10/01/18
           605             688,024   
Series B-2 (AGM), 4.00%, 10/01/19
           630             710,067   
Series B-2 (AGM), 4.00%, 10/01/20
           655             734,406   
Florida State Board of Education, GO, Public Education, Series J (AMBAC), 5.00%, 6/01/13
           6,150            6,307,870   
Florida State Board of Education, GO, Refunding, Capital Outlay, Series B, 5.00%, 6/01/20
           1,000            1,243,590   
Florida State Department of Environmental Protection, Refunding RB, Series A, 5.00%, 7/01/20
           3,000            3,640,470   
 
                         20,187,997   
Transportation — 18.1%
                                        
Broward County Florida Airport System Revenue, Refunding RB, Series P-1, AMT, 5.00%, 10/01/20
           2,500            2,965,125   
Broward County Florida Port Facilities Revenue, Refunding RB, Series B, AMT, 5.00%, 9/01/20
           2,500            2,956,900   
County of Lee Florida Transportation Facilities, Refunding RB, Series B (AMBAC):
                                        
5.00%, 10/01/20
           2,250            2,412,787   
5.00%, 10/01/22
           3,000            3,210,300   
County of Miami-Dade Florida Aviation Revenue, Refunding RB, Series A, AMT, 5.00%, 10/01/20
           1,375            1,630,819   
County of Miami-Dade Florida Transit System Sales Surtax Revenue, Refunding RB, 5.00%, 7/01/20
           550             664,884   
Greater Orlando Aviation Authority, Refunding RB, Series C, 5.00%, 10/01/20
           1,130            1,390,115   
Jacksonville Florida Port Authority, Refunding RB, AMT, 4.00%, 11/01/20
           865             940,800     
 
                         16,171,730   
Utilities — 22.8%
                                        
City of Deltona Florida, RB (NPFGC), 5.00%, 10/01/23
           1,095            1,126,175   
City of Marco Island Florida Utility System, RB (NPFGC):
                                        
5.25%, 10/01/13 (a)
           1,000            1,033,210   
5.00%, 10/01/22
           2,000            2,059,680   
5.00%, 10/01/23
           1,375            1,412,469   
City of North Miami Beach Water Revenue, RB, 5.00%, 8/01/20
           1,200            1,434,432   
County of Miami-Dade Florida Water & Sewer System, Refunding RB, System, Series B (AGM), 5.25%, 10/01/19
           4,000            4,903,480   

See Notes to Financial Statements.

22 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock Florida Municipal 2020 Term Trust (BFO)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)

     Value
Florida (concluded)
Utilities (concluded)
                                  
Florida Governmental Utility Authority, RB, Golden Gate Utility System (AGM), 5.00%, 7/01/19
        $    510          $     594,017   
Florida Governmental Utility Authority, Refunding RB, Lehigh Utility (AGM), 5.00%, 10/01/20
           635             750,456   
Tohopekaliga Water Authority, RB, Series B (AGM):
                                        
5.00%, 10/01/22
           1,975            2,036,087   
5.00%, 10/01/23
           1,180            1,216,497   
Tohopekaliga Water Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/21
           3,630            3,742,784     
 
                         20,309,287   
Total Municipal Bonds in Florida
                         112,212,609   
 
Guam — 0.4%
Utilities — 0.4%
                                        
Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/20
           310             364,700   
 
Puerto Rico — 1.8%
State — 1.8%
                                        
Commonwealth of Puerto Rico, GO, Public Improvement (AGM), 5.50%, 7/01/19
           1,000            1,139,280     
Puerto Rico Sales Tax Financing Corp., Refunding RB, Sales Tax Revenue, Series C, 5.00%, 8/01/22
           415             494,564   
Total Municipal Bonds in Puerto Rico
                         1,633,844   
Total Municipal Bonds — 128.0%
                         114,211,153   
Municipal Bonds Transferred to
Tender Option Bond Trusts (e)
         Par
(000)
     Value
Housing — 0.6%
                                        
Lee County Housing Finance Authority, RB, Multi-County Program, Series A-2, AMT (Ginnie Mae), 6.00%, 9/01/40
              $   540                 $570,920     
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 0.6%
                         570,920   
Total Long-Term Investments
(Cost — $109,014,188) — 128.6%
                         114,782,073   
 

 
Short-Term Securities
           Shares                  
FFI Institutional Tax-Exempt Fund, 0.01% (f)(g)
           57,308            57,308   
Total Short-Term Securities
(Cost — $57,308) — 0.1%
                         57,308   
Total Investments (Cost — $109,071,496) — 128.7%
                         114,839,381   
Other Assets Less Liabilities — 1.0%
                         879,565   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (0.4)%
                         (360,347 )  
AMPS, at Redemption Value — (29.3)%
                         (26,100,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 89,258,599   

Notes to Schedule of Investments

(a)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)      
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(c)      
Non-income producing security.
(d)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(e)      
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(f)      
Investments in issuers considered to be an affiliate of the Trust during the six months ended January 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate



   
Shares Held at
July 31, 2012

   
Net
Activity

   
Shares Held at
January 31, 2013

   
Income
BFI Florida Municipal Money Fund
     
781,042
  
(781,042)
  
  
$1,391
FFI Institutional Tax-Exempt Fund
     
  
57,308
  
57,308
  
$325

(g)      
Represents the current yield as of report date.
     
For Trust compliance purposes, the Trust’s sector classifications refer to any one or more of the sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such sector sub-classifications for reporting ease.
     
Fair Value Measurements—Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
     
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
     
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
     
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 23
 
  
Schedule of Investments (concluded)   BlackRock Florida Municipal 2020 Term Trust (BFO)
 
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
       
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of January 31, 2013:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
Investments:
                                                                                
Long-Term Investments1
                    $ 114,782,073                     $ 114,782,07 3   
Short-Term Securities
        $ 57,308                                    57,308   
Total
        $ 57,308         $ 114,782,073                     $ 114,839,381   
 
                                                                                
1 See above Schedule of Investments for values in each sector.

       
Certain of the Trust’s assets and liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of January 31, 2013, such assets and liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Cash
        $ 103                                  $ 103    
Liabilities:
                                                                                
TOB trust certificates
                    $ (360,000 )                       (360,000 )  
Total
        $    103          $    (360,000 )                    $    (359,897 )  
 
                                                          

       
There were no transfers between levels during the six months ended January 31, 2013.

See Notes to Financial Statements.

24 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments January 31, 2013 (Unaudited) BlackRock Municipal Income Investment Trust (BBF)
(Percentages shown are based on Net Assets)
Municipal Bonds



   
Par
(000)

   
Value
Alabama — 2.4%
                                        
Alabama Incentives Financing Authority, RB, Series A, 5.00%, 9/01/42
        $  2,000         $   2,265,040     
Selma IDB, RB, International Paper Company Project, 5.38%, 12/01/35
           275             303,969   
 
                         2,569,009   
Alaska — 0.3%
                                        
Northern Tobacco Securitization Corp., Refunding RB, Asset Backed, Series A, 5.00%, 6/01/46
           330             289,912   
Arizona — 0.5%
                                        
Arizona Board of Regents, Refunding RB, Arizona State University System, Series A, 5.00%, 6/01/42
           500             572,100   
California — 8.4%
                                        
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38
           1,315            1,550,569   
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39
           890             1,051,597   
Grossmont Union High School District, GO, Election of 2008, Series B, 4.75%, 8/01/45
           1,000            1,085,950   
Los Angeles Department of Water & Power, RB, Power System, Sub-Series A-1, 5.25%, 7/01/38
           1,750            2,011,468   
San Diego Regional Building Authority California, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36
           1,600            1,810,064   
State of California, GO, Various Purpose, 6.00%, 3/01/33
           1,275            1,585,475   
 
                         9,095,123   
Colorado — 1.6%
                                        
City & County of Denver Colorado, Refunding ARB, Series B, 5.00%, 11/15/37
           450             517,185   
Colorado Health Facilities Authority, Refunding RB, Catholic Healthcare, Series A, 5.50%, 7/01/34
           1,095            1,253,676   
 
                         1,770,861   
Florida — 1.3%
                                        
City of Jacksonville Florida, Refunding RB, Better Jacksonville, Series A, 5.00%, 10/01/30
           565             659,191   
Watergrass Community Development District, Special Assessment Bonds, Series B, 5.13%, 11/01/14
           955             756,503   
 
                         1,415,694   
Georgia — 1.8%
                                        
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23
           1,565            1,913,885   
Illinois — 15.6%
                                        
Chicago Illinois Board of Education, GO, Series A:
                                        
5.50%, 12/01/39
           1,000            1,169,010   
5.00%, 12/01/42
           1,410            1,546,474   
Chicago Park District, GO, Harbor Facilities, Series C, 5.25%, 1/01/40
           75             85,563   
Chicago Transit Authority, RB, Sales Tax Receipts Revenue:
                                        
5.25%, 12/01/31
           1,060            1,246,518   
5.25%, 12/01/36
           310             357,777   
City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien, Series C, 6.50%, 1/01/41
           2,955            3,821,258   
City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38
           385             444,182   
Cook County Forest Preserve District, GO, Series C, 5.00%, 12/15/32
           285             328,240   
Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B, 5.00%, 12/15/32
           135             155,482   
Illinois Finance Authority, RB:
                                        
Carle Foundation, Series A, 6.00%, 8/15/41
           1,000            1,200,300   
Rush University Medical Center Obligation Group, Series B, 7.25%, 11/01/30
           1,600            2,035,392   
Municipal Bonds



   
Par
(000)

   
Value
Illinois (concluded)
                                        
Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39
        $  1,900         $   2,232,424     
Metropolitan Pier & Exposition Authority, Refunding RB, Mccormick Place Project, Series B, 5.00%, 12/15/28
           1,010            1,182,033   
Railsplitter Tobacco Settlement Authority, RB:
                                        
5.50%, 6/01/23
           690             820,866   
6.00%, 6/01/28
           195             234,178   
 
                         16,859,697   
Indiana — 2.4%
                                        
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39
           2,210            2,647,691   
Kansas — 3.4%
                                        
Kansas Development Finance Authority, Refunding RB, Adventist Health System, Sunbelt Obligated Group:
                                        
5.50%, 11/15/29
           1,600            1,877,216   
5.00%, 11/15/32
           1,525            1,766,575   
 
                         3,643,791   
Kentucky — 1.3%
                                        
Kentucky Economic Development Finance Authority, RB, Owensboro Medical Health System, Series A, 6.38%, 6/01/40
           660             786,456   
Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34
           500             616,310   
 
                         1,402,766   
Louisiana — 0.8%
                                        
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp., Series A-1, 6.50%, 11/01/35
           715             846,660   
Maine — 1.5%
                                        
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32
           1,270            1,631,112   
Massachusetts — 1.1%
                                        
Massachusetts Health & Educational Facilities Authority, RB, Tufts University, 5.38%, 8/15/38
           1,000            1,178,990   
Michigan — 3.3%
                                        
Lansing Board of Water & Light Utilities System, RB, Series A, 5.50%, 7/01/41
           915             1,084,009   
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38
           1,000            1,203,680   
Royal Oak Hospital Finance Authority Michigan, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39
           995             1,272,267   
 
                         3,559,956   
Mississippi — 1.9%
                                        
Mississippi Development Bank, Refunding RB, Series A:
                                        
Jackson Mississippi Water & Sewer System, 5.00%, 9/01/30
           1,495            1,742,392   
Jackson Public School District, 5.00%, 4/01/28
           280             319,259   
 
                         2,061,651   
Nevada — 3.7%
                                        
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34
           1,600            1,883,104   
County of Clark Nevada, ARB, Series B, 5.75%, 7/01/42
           1,825            2,126,417   
 
                         4,009,521   
New Jersey — 3.7%
                                        
New Jersey State Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29
           1,140            1,265,753   
New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series A:
                                        
5.88%, 12/15/38
           1,295            1,527,168   
5.50%, 6/15/41
           1,000            1,162,130   
 
                         3,955,051   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 25
 
  
Schedule of Investments (continued)   BlackRock Municipal Income Investment Trust (BBF)
(Percentages shown are based on Net Assets)
Municipal Bonds



   
Par
(000)

   
Value
New York — 6.3%
                                        
Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47
        $  1,000         $   1,193,310     
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49
           605             718,940   
New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38
           3,250            3,800,582   
New York State Dormitory Authority, RB, Series B, 5.00%, 3/15/42
           1,000            1,144,800   
 
                         6,857,632   
North Carolina — 1.5%
                                        
North Carolina Medical Care Commission, RB, Duke University Health System, Series A, 5.00%, 6/01/32
           1,335            1,569,920   
Ohio — 1.2%
                                        
Ohio State University, RB, Special Purpose General Receipts, Series A:
                                        
5.00%, 6/01/38
           450             525,087   
5.00%, 6/01/43
           675             780,516   
 
                         1,305,603   
Pennsylvania — 3.5%
                                        
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39
           500             584,535   
Pennsylvania Turnpike Commission, RB, Sub-Series A:
                                        
5.63%, 12/01/31
           1,250            1,470,813   
6.00%, 12/01/41
           1,500            1,702,590   
 
                         3,757,938   
Puerto Rico — 2.6%
                                        
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A, 5.75%, 8/01/37
           2,605            2,815,692   
Texas — 16.0%
                                        
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.00%, 1/01/41
           1,670            1,947,654   
City of Houston Texas, Refunding RB, Utility System, Series D, 5.00%, 11/15/42
           1,000            1,155,660   
Conroe ISD Texas, GO, School Building, Series A, 5.75%, 2/15/35
           890             1,060,978   
Harris County Health Facilities Development Corp., Refunding RB, Memorial Hermann Healthcare System, Series B, 7.13%, 12/01/31
           500             638,415   
Katy ISD Texas, GO, Refunding, Unlimited Tax School Building, Series A (PSF-GTD), 5.00%, 2/15/42
           560             647,130   
Lower Colorado River Authority, Refunding RB:
                                        
5.50%, 5/15/19 (a)
           5             6,308   
5.50%, 5/15/19 (a)
           5             6,290   
5.50%, 5/15/19 (a)
           80             100,920   
5.50%, 5/15/33
           1,910            2,229,371   
North Texas Tollway Authority, RB, Special Projects System, Series A, 5.50%, 9/01/41
           1,000            1,190,420   
North Texas Tollway Authority, Refunding RB, System, First Tier, Series K-1 (AGC), 5.75%, 1/01/38
           1,000            1,130,100   
North Texas Tollway Authority System, Refunding RB, First Tier, Series B, 5.00%, 1/01/42
           1,070            1,192,858   
Tarrant County Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45
           1,905            2,259,768   
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39
           1,505            1,800,281   
Texas Transportation Commission, Refunding RB, First Tier, Series A, 5.00%, 8/15/41
           330             364,211   
University of Texas System, Refunding RB, Financing System Series B, 5.00%, 8/15/43
           1,355            1,591,854   
 
                         17,322,218   
Municipal Bonds



   
Par
(000)

   
Value
Utah — 2.1%
                                        
Utah Transit Authority, Refunding RB, Sales Tax Revenue, Subordinate, 5.00%, 6/15/42
        $  2,000         $   2,260,040     
Virginia — 6.2%
                                        
Fairfax County IDA, RB, Inova Health System Project, Series A, 5.00%, 5/15/40
           520             591,094   
Norfolk EDA, Refunding RB, Sentara Healthcare, Series B, 5.00%, 11/01/36
           3,205            3,667,417   
Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/18 (a)
           1,000            1,319,260   
Virginia Resources Authority, RB, Infrastructure, 5.00%, 11/01/42
           925             1,076,941   
 
                         6,654,712   
Wisconsin — 2.9%
                                        
Wisconsin Health & Educational Facilities Authority, RB, Ascension Health, Series D, 5.00%, 11/15/41
           925             1,041,818   
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc.:
                                        
Series A, 5.00%, 4/01/42
           235             264,098   
Series C, 5.25%, 4/01/39
           1,675            1,861,746   
 
                         3,167,662   
Total Municipal Bonds — 97.3%
                         105,134,887   
 

 
Municipal Bonds Transferred to
Tender Option Bond Trusts (b)
                              
California — 19.9%
                                        
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (c)
           1,995            2,336,005   
Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40
           2,400            2,691,120   
Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (c)
           2,630            3,191,005   
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33
           3,898            4,879,082   
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34
           400             450,220   
San Diego Public Facilities Financing Authority, Refunding RB, Series B, 5.50%, 8/01/39
           4,214            4,934,586   
University of California, RB, Series O, 5.75%, 5/15/34
           1,500            1,817,045   
University of California, Refunding RB, Series G, 5.00%, 5/15/37
           1,000            1,159,336   
 
                         21,458,399   
District of Columbia — 3.5%
                                        
District of Columbia, RB, Series A, 5.50%, 12/01/30 (c)
           1,395            1,703,230   
District of Columbia Water & Sewer Authority, Refunding RB, Series A, 5.50%, 10/01/39
           1,799            2,091,395   
 
                         3,794,625   
Florida — 0.5%
                                        
County of Miami-Dade Florida, RB, Transit System, Sales Surtax, 5.00%, 7/01/42
           490             551,446   
Illinois — 4.0%
                                        
City of Chicago Illinois, Refunding RB, Second Lien Water Project, 5.00%, 11/01/42
           760             859,116   
Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38
           2,800            3,463,096   
 
                         4,322,212   
Massachusetts — 1.6%
                                        
Massachusetts School Building Authority, RB, Dedicated Sales Tax, Senior Series B, 5.00%, 10/15/41
           1,490            1,718,000   

See Notes to Financial Statements.

26 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock Municipal Income Investment Trust (BBF)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to
Tender Option Bond Trusts (b)



   
Par
(000)

   
Value
Nevada — 5.0%
                                        
Clark County Water Reclamation District, GO:
                                        
Limited Tax, 6.00%, 7/01/38
        $  2,500         $   3,020,875     
Series B, 5.50%, 7/01/29
           1,994            2,436,382   
 
                         5,457,257   
New Hampshire — 1.2%
                                        
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (c)
           1,094            1,288,129   
New Jersey — 3.8%
                                        
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
                                        
Series A (AGM), 5.00%, 12/15/32
           2,000            2,269,720   
Series B, 5.25%, 6/15/36
           1,640            1,879,965   
 
                         4,149,685   
New York — 13.7%
                                        
New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40
           1,410            1,681,156   
New York City Municipal Water Finance Authority, Refunding RB:
                                        
Series FF, 5.00%, 6/15/45
           1,500            1,708,728   
Series FF-2, 5.50%, 6/15/40
           1,994            2,354,185   
New York City Transitional Finance Authority, BARB, Fiscal 2009, Series S-3, 5.25%, 1/15/39
           1,500            1,683,307   
New York City Transitional Finance Authority, RB, Second Sub-Series E-1, 5.00%, 2/01/42
           860             988,001   
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43
           2,205            2,536,906   
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51
           1,300            1,542,294   
New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38
           2,000            2,338,820   
 
                         14,833,397   
Ohio — 1.6%
                                        
County of Allen Ohio, Refunding RB, Catholic Healthcare, Series A, 5.25%, 6/01/38
           1,560            1,751,240   
Municipal Bonds Transferred to
Tender Option Bond Trusts (b)



   
Par
(000)

   
Value
Puerto Rico — 0.9%
                                        
Puerto Rico Sales Tax Financing Corp., Refunding RB, Sales Tax, Senior Series C, 5.25%, 8/01/40
        $    880          $     957,299     
Texas — 6.3%
                                        
City of San Antonio Texas, Refunding RB, Electric & Gas Systems, Series A, 5.25%, 2/01/31 (c)
           2,025            2,411,200   
Harris County Cultural Education Facilities Finance Corp., RB, Hospital, Texas Children’s Hospital Project, 5.50%, 10/01/39
           2,750            3,242,525   
Waco Educational Finance Corp., Refunding RB, Baylor University, 5.00%, 3/01/43
           1,005            1,150,856   
 
                         6,804,581   
Virginia — 1.0%
                                        
Fairfax County IDA Virginia, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35
           899             1,036,257   
Washington — 1.5%
                                        
University of Washington, Refunding RB, Series A, 5.00%, 7/01/41
           1,380            1,605,832   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 64.5%
                         69,728,359   
Total Long-Term Investments
(Cost — $154,686,037) — 161.8%
                         174,863,246   
 

 
Short-Term Securities
           Shares                  
FFI Institutional Tax-Exempt Fund, 0.01% (d)(e)
           975,638            975,638   
Total Short-Term Securities
(Cost — $975,638) — 0.9%
                         975,638   
Total Investments (Cost — $155,661,675) — 162.7%
                         175,838,884   
Other Assets Less Liabilities — 1.5%
                         1,631,509   
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (32.6)%
                         (35,212,612 )  
VRDP Shares, at Liquidation Value — (31.6)%
                         (34,200,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 108,057,781   

Notes to Schedule of Investments

(a)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(b)      
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(c)      
All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements is $5,653,992
(d)      
Investments in issuers considered to be an affiliate of the Trust during the six months ended January 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate



   
Shares Held at
July 31, 2012

   
Net
Activity

   
Shares Held at
January 31, 2013

   
Income
FFI Institutional Tax-Exempt Fund
     
1,631,769
  
(656,131)
  
975,638
  
$119

(e)      
Represents the current yield as of report date.
     
Fair Value Measurements—Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
     
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
     
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
     
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 27
 
  
Schedule of Investments (concluded)   BlackRock Municipal Income Investment Trust (BBF)
 

       
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 level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
       
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of January 31, 2013:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Investments:
                                                                                
Long-Term Investments1
                    $ 174,863,246                     $ 174,863,246   
Short-Term Securities
        $ 975,638                                    975,638   
Total
        $ 975,638         $ 174,863,246                     $ 175,838,884   
 
                                                              
1 See above Schedule of Investments for values in each state or political subdivision.

       
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of January 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Liabilities:
                                                      
TOB trust certificates
                    $ (35,195,790 )                    $ (35,195,790 )  
VRDP Shares
                       (34,200,000 )                       (34,200,000 )  
Total
                    $  (69,395,790 )                    $  (69,395,790 )  
 
                                                              

       
There were no transfers between levels during the six months ended January 31, 2013.

See Notes to Financial Statements.

28 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments January 31, 2013 (Unaudited) BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
Municipal Bonds



   
Par
(000)

   
Value
Alabama — 0.5%
                                        
Phenix City Industrial Development Board, Refunding RB, Meadwestvaco Coated Board Project, Series A, 3.63%, 5/15/30
        $ 5,850         $     5,744,934     
Prattville IDB Alabama, RB, International Paper Co. Project, Series A, AMT, 4.75%, 12/01/30
           2,500            2,503,125   
 
                         8,248,059   
Alaska — 0.6%
                                        
Northern Tobacco Securitization Corp., Refunding RB, Tobacco Settlement, Asset-Backed, Series A, 4.63%, 6/01/23
           10,275            10,311,990   
Arizona — 3.0%
                                        
Arizona Department of Transportation State Highway Fund Revenue, Refunding RB, Sub-Series A:
                                        
4.00%, 7/01/30
           10,000            10,874,800   
5.00%, 7/01/30
           27,740            33,064,138   
Arizona Health Facilities Authority, Refunding RB, Phoenix Children’s Hospital, Series A, 5.00%, 2/01/34
           6,340            6,895,194   
 
                         50,834,132   
California — 14.8%
                                        
ABAG Finance Authority for Nonprofit Corps., Refunding RB, Odd Fellows Home California, Series A, 5.00%, 4/01/32
           4,500            5,089,500   
Alameda Corridor Transportation Authority, Refunding RB, CAB, Sub Lien, Series A (AMBAC), 4.93%, 10/01/30 (a)
           10,530            4,454,085   
California Health Facilities Financing Authority, Refunding RB, Adventist Health System/West, Series A (b):
                                        
4.00%, 3/01/27
           4,270            4,479,614   
4.00%, 3/01/28
           8,490            8,811,262   
4.00%, 3/01/33
           50,000            51,082,500   
California HFA, RB, S/F Mortgage, Series I, AMT, 4.70%, 8/01/26
           10,000            10,037,200   
California Pollution Control Financing Authority, RB, Poseidon Resources Desalination Project, AMT, 5.00%, 7/01/30
           18,845            20,112,703   
California State Public Works Board, RB:
                                        
Series D, 5.00%, 9/01/28
           5,090            5,827,337   
Series D, 5.00%, 9/01/29
           5,350            6,114,087   
Series D, 5.00%, 9/01/30
           2,620            2,989,551   
Series D, 5.00%, 9/01/31
           2,905            3,304,525   
Series D, 5.00%, 9/01/32
           6,060            6,884,342   
Series D, 5.00%, 9/01/33
           3,530            4,007,079   
Series E, 5.00%, 9/01/28
           2,240            2,564,486   
Series E, 5.00%, 9/01/29
           2,355            2,691,341   
Series E, 5.00%, 9/01/30
           2,475            2,824,099   
Series E, 5.00%, 9/01/31
           2,600            2,957,578   
Series E, 5.00%, 9/01/32
           2,280            2,590,148   
Series E, 5.00%, 9/01/33
           2,870            3,257,881   
California Statewide Communities Development Authority, RB, American Baptist Homes of the West, Series A (b):
                                        
5.00%, 10/01/23
           500             578,130   
5.00%, 10/01/28
           650             718,114   
5.00%, 10/01/33
           1,000            1,084,480   
California Statewide Communities Development Authority, Refunding RB:
                                        
Episcopal Communities & Services, 5.00%, 5/15/27
           500             562,815   
Episcopal Communities & Services, 5.00%, 5/15/32
           1,000            1,109,650   
Eskaton Properties, Inc., 5.25%, 11/15/34
           2,500            2,673,525   
Corona-Norco Unified School District, Special Tax Bonds, Senior Lien, Series A, 5.00%, 9/01/32
           1,250            1,378,525   
Municipal Bonds



   
Par
(000)

   
Value
California (concluded)
                                        
El Camino Community College District, GO, CAB, Election of 2002, Series C (a):
                                        
3.83%, 8/01/30
        $  9,090         $     4,679,805     
3.92%, 8/01/31
           12,465            6,078,433   
3.99%, 8/01/32
           17,435            8,069,441   
Grossmont Union High School District, GO, CAB, Election of 2004, 4.55%, 8/01/32 (a)
           29,015            12,067,338   
Los Angeles County Public Works Financing Authority, Refunding RB, Multiple Capital Projects II:
                                        
5.00%, 8/01/30
           2,500            2,857,325   
5.00%, 8/01/31
           3,000            3,407,760   
5.00%, 8/01/32
           3,000            3,397,320   
5.00%, 8/01/33
           2,500            2,831,100   
Los Angeles Regional Airports Improvement Corp., Refunding RB, LAXFUEL Corp., Los Angeles International, AMT:
                                        
4.50%, 1/01/27
           5,000            5,423,900   
5.00%, 1/01/32
           4,110            4,548,742   
Poway Unified School District, GO, Election of 2008, Series A (a):
                                        
3.91%, 8/01/27
           10,000            5,703,600   
4.20%, 8/01/30
           10,000            4,831,700   
4.49%, 8/01/32
           12,500            5,258,625   
Poway Unified School District Public Financing Authority, Special Tax Bonds, Refunding (b):
                                        
5.00%, 9/15/26
           935             1,058,495   
5.00%, 9/15/29
           1,205            1,344,876   
5.00%, 9/15/32
           1,000            1,103,120   
Riverside Public Financing Authority, Tax Allocation Bonds, University Corridor/Sycamore Canyon Merged Redevelopment Project, Series C (NPFGC), 4.50%, 8/01/30
           10,000            10,117,800   
San Francisco City & County Redevelopment Agency, Special Tax Bonds, Refunding, No. 6 Mission Bay South Public Improvements, Series A:
                                        
5.00%, 8/01/28
           1,000            1,071,860   
5.00%, 8/01/29
           1,300            1,389,193   
5.00%, 8/01/33
           1,335            1,413,658   
Westlands California Water District, Refunding RB, Series A (AGM):
                                        
5.00%, 9/01/30
           1,000            1,166,390   
5.00%, 9/01/31
           1,000            1,162,770   
5.00%, 9/01/32
           1,000            1,155,560   
 
                         248,323,368   
Colorado — 8.3%
                                        
Colorado Health Facilities Authority, Refunding RB, Covenant Retirement Communities, Series A:
                                        
4.50%, 12/01/33
           4,595            4,640,536   
5.00%, 12/01/33
           3,000            3,206,520   
Commerce City, Colorado-Northern Infrastructure General Improvement District, GO, Refunding, Improvement (AGM) (b):
                                        
5.00%, 12/01/26
           2,770            3,277,741   
5.00%, 12/01/28
           1,560            1,828,273   
5.00%, 12/01/29
           1,070            1,252,018   
5.00%, 12/01/31
           500             577,220   
5.00%, 12/01/32
           800             912,656   
Denver West Metropolitan District, GO, Refunding, Series A (AGM), 4.00%, 12/01/32
           6,250            6,586,125   
Plaza Metropolitan District No 1, Tax Allocation Bonds, Refunding:
                                        
4.00%, 12/01/23
           1,000            1,007,250   
4.10%, 12/01/24
           5,080            5,096,104   
4.20%, 12/01/25
           5,280            5,309,357   
4.50%, 12/01/30
           4,305            4,345,682   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 29
 
  
Schedule of Investments (continued)   BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
Municipal Bonds



   
Par
(000)

   
Value
Colorado (concluded)
                                        
Regional Transportation District, RB, Fastracks Project, Series A:
                                        
5.00%, 11/01/29
        $ 28,960         $    35,049,709     
5.00%, 11/01/31
           47,075            56,478,702   
5.00%, 11/01/32
           4,595            5,495,482   
University of Colorado Hospital Authority, RB, Series A, 5.00%, 11/15/27
           4,000            4,677,760   
 
                         139,741,135   
Connecticut — 0.8%
                                        
Connecticut Housing Finance Authority, Refunding RB, Housing Mortgage Finance Program, Sub-Series F-1, 3.00%, 11/15/32
           13,270            13,330,909   
Florida — 10.8%
                                        
City of Jacksonville, Refunding RB, Series C:
                                        
5.00%, 10/01/25
           2,000            2,423,120   
5.00%, 10/01/27
           4,000            4,779,880   
5.00%, 10/01/28
           4,720            5,598,298   
4.00%, 10/01/30
           6,965            7,533,344   
5.00%, 10/01/31
           2,000            2,357,320   
5.00%, 10/01/32
           1,250            1,465,250   
City of North Miami Beach, Refunding RB:
                                        
4.00%, 8/01/27
           3,325            3,594,657   
5.00%, 8/01/29
           3,650            4,233,197   
5.00%, 8/01/30
           4,020            4,640,809   
5.00%, 8/01/31
           4,235            4,873,934   
5.00%, 8/01/32
           4,445            5,080,324   
City of Tampa Florida, Refunding RB, H Lee Moffitt Cancer Center Project, Series A, 4.00%, 9/01/33
           10,000            10,175,200   
Hillsborough County IDA, RB, National Gypsum Co., Series A, AMT, 7.13%, 4/01/30
           7,300            7,307,373   
Jacksonville Florida Port Authority, Refunding RB, AMT:
                                        
4.50%, 11/01/29
           4,685            4,926,465   
4.50%, 11/01/30
           2,895            3,029,820   
4.50%, 11/01/31
           3,200            3,349,024   
4.50%, 11/01/32
           2,300            2,391,977   
4.50%, 11/01/33
           2,080            2,152,966   
Miami-Dade County, Refunding RB, Sub-Series B, 5.00%, 10/01/32
           10,000            11,308,400   
Miami-Dade County Educational Facilities Authority, RB, University Of Miami, Series A:
                                        
5.00%, 4/01/28
           1,000            1,161,720   
5.00%, 4/01/29
           1,650            1,905,948   
5.00%, 4/01/30
           1,695            1,948,402   
4.00%, 4/01/31
           2,930            3,077,350   
4.00%, 4/01/32
           1,000            1,047,660   
Palm Beach County Solid Waste Authority, Refunding RB, 5.00%, 10/01/31
           5,000            5,749,750   
State County Johns FL Water & Sewer Revenue, Refunding RB, CAB, Series B (a)(b):
                                        
3.39%, 6/01/25
           2,155            1,435,058   
3.46%, 6/01/26
           2,655            1,683,084   
3.53%, 6/01/27
           3,095            1,878,541   
3.67%, 6/01/28
           3,795            2,167,666   
3.78%, 6/01/29
           3,795            2,063,911   
3.87%, 6/01/30
           2,000            1,028,120   
3.96%, 6/01/31
           1,295            630,121   
4.00%, 6/01/32
           1,295            602,188   
Tampa-Hillsborough County Expressway Authority, Refunding RB, Series A:
                                        
5.00%, 7/01/27
           2,500            2,936,600   
5.00%, 7/01/28
           2,500            2,918,625   
4.00%, 7/01/29
           6,000            6,292,800   
4.00%, 7/01/30
           6,395            6,665,125   
5.00%, 7/01/31
           7,520            8,665,672   
5.00%, 7/01/32
           8,405            9,619,102   
Municipal Bonds



   
Par
(000)

   
Value
Florida (concluded)
                                        
Village Community Development District No 1, Special Assessment Bonds, Sumpter County:
                                        
4.50%, 5/01/23
        $  3,875         $     3,843,380     
5.00%, 5/01/32
           6,000            5,926,500   
Village Community Development District No 5, Special Assessment Bonds, Phase I (b):
                                        
3.50%, 5/01/28
           2,165            2,137,180   
3.50%, 5/01/28
           4,160            4,106,544   
4.00%, 5/01/33
           1,250            1,254,112   
4.00%, 5/01/34
           2,640            2,648,686   
Village Community Development District No 6, Special Assessment Bonds, 4.00%, 5/01/29 (b)
           6,595            6,707,049   
 
                         181,322,252   
Guam — 0.7%
                                        
Guam Power Authority, Refunding RB, Series A (AGM), 5.00%, 10/01/30
           10,000            11,273,200   
Hawaii — 2.3%
                                        
State of Hawaii, GO, Series EE:
                                        
5.00%, 11/01/27
           6,000            7,367,520   
5.00%, 11/01/28
           7,000            8,566,740   
5.00%, 11/01/29
           6,000            7,307,940   
3.00%, 11/01/30
           15,285            15,159,663   
 
                         38,401,863   
Idaho — 0.6%
                                        
Idaho Housing and Finance Association, RB, Series A, 4.00%, 7/15/30
           10,000            10,606,200   
Illinois — 6.6%
                                        
City of Chicago Illinois, GO, Project, Series A, 5.00%, 1/01/33
           10,000            11,164,500   
City of Chicago Illinois, GO, CAB (NPFGC), 4.06%, 1/01/27 (a)
           5,000            2,857,900   
City of Chicago Illinois, Refunding RB, O’Hare International Airport Passenger Facility Charge, Series B, AMT:
                                        
4.00%, 1/01/27
           5,000            5,151,250   
4.00%, 1/01/29
           28,425            28,971,613   
Cook County, GO, Refunding, Series C:
                                        
4.00%, 11/15/29
           19,750            21,171,210   
5.00%, 11/15/29
           21,500            25,083,405   
5.00%, 11/15/33
           3,000            3,472,470   
Illinois Finance Authority, Refunding RB, Lutheran Home & Services Obligated Group:
                                        
5.00%, 5/15/22
           4,835            5,084,051   
5.50%, 5/15/27
           4,350            4,622,614   
5.50%, 5/15/30
           3,400            3,563,438   
 
                         111,142,451   
Indiana — 3.3%
                                        
Carmel Redevelopment Authority, Refunding RB, Multipurpose, Series A,
                                        
4.00%, 8/01/30
           9,345            10,032,512   
4.00%, 8/01/33
           8,500            9,060,405   
Indiana Finance Authority, Refunding RB:
                                        
Community Health Network Project, Series A, 4.00%, 5/01/35
           23,565            23,960,892   
Earlham College Project, 5.00%, 10/01/32
           11,255            12,941,336   
 
                         55,995,145   
Louisiana — 2.0%
                                        
Louisiana Stadium & Exposition District, Refunding RB, Senior, Series A:
                                        
5.00%, 7/01/26
           5,000            5,881,500   
5.00%, 7/01/27
           3,770            4,414,406   
5.00%, 7/01/28
           4,420            5,141,211   
5.00%, 7/01/29
           3,000            3,469,320   
5.00%, 7/01/30
           5,000            5,753,500   

See Notes to Financial Statements.

30 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
Municipal Bonds



   
Par
(000)

   
Value
Louisiana (concluded)
                                        
Louisiana Stadium & Exposition District, Refunding RB, Senior, Series A (concluded):
                                        
5.00%, 7/01/31
        $  5,105         $     5,874,324     
5.00%, 7/01/32
           3,000            3,440,700   
 
                         33,974,961   
Maine — 1.3%
                                        
Maine Health & Higher Educational Facilities Authority, RB, Eastern Maine Medical Center Obligation:
                                        
5.00%, 7/01/25
           1,250            1,420,638   
5.00%, 7/01/26
           1,000            1,127,640   
5.00%, 7/01/27
           1,000            1,121,610   
3.75%, 7/01/28
           1,000            989,580   
5.00%, 7/01/33
           5,000            5,525,600   
Maine State Housing Authority, Refunding RB, Series B, AMT, 3.45%, 11/15/32 (b)
           12,000            12,059,160   
 
                         22,244,228   
Massachusetts — 3.3%
                                        
Massachusetts HFA, Refunding RB, S/F Housing, Series 160, AMT, 4.00%, 12/01/32
           1,000            1,013,190   
Massachusetts School Building Authority, Refunding RB, Series B, 5.00%, 8/15/29
           44,705            54,476,619   
 
                         55,489,809   
Michigan — 0.6%
                                        
Michigan State Hospital Finance Authority, Refunding RB, Trinity Health Credit Group, Series 2008-C, 4.00%, 12/01/32
           9,195            9,506,159   
Minnesota — 1.0%
                                        
State of Minnesota, Refunding RB, General Fund Appropriation, Series B:
                                        
5.00%, 3/01/29
           6,060            7,289,574   
3.00%, 3/01/30
           10,000            9,828,800   
 
                         17,118,374   
Nebraska — 1.4%
                                        
Central Plains Energy Project, RB, Project No. 3:
                                        
5.00%, 9/01/27
           7,010            7,903,284   
5.00%, 9/01/32
           14,500            16,222,020   
 
                         24,125,304   
New Hampshire — 0.4%
                                        
New Hampshire Health & Education Facilities Authority, Refunding RB, Concord Hospital, Series A (b):
                                        
5.00%, 10/01/26
           1,075            1,245,603   
5.00%, 10/01/27
           1,180            1,361,720   
4.00%, 10/01/33
           3,500            3,593,135   
 
                         6,200,458   
New Jersey — 15.9%
                                        
New Jersey Economic Development Authority, Refunding RB:
                                        
4.25%, 6/15/27
           16,500            17,455,350   
School Facilities Construction, 5.00%, 3/01/30
           74,000            86,232,940   
New Jersey EDA, RB, Continental Airlines, Inc. Project, AMT:
                                        
5.25%, 9/15/29
           12,230            12,463,226   
7.20%, 11/15/30 (c)
           10,100            10,137,875   
New Jersey EDA, Refunding RB:
                                        
5.00%, 6/15/26
           10,610            12,094,763   
Cigarette Tax, 5.00%, 6/15/25
           15,000            17,191,800   
Continental Airlines, Inc. Project, AMT, 5.75%, 9/15/27
           6,200            6,384,202   
New Jersey Health Care Facilities Financing Authority, Refunding RB, Barnabas Health, Series A, 4.00%, 7/01/26
           3,000            3,182,460   
Municipal Bonds



   
Par
(000)

   
Value
New Jersey (concluded)
                                        
New Jersey Transportation Trust Fund Authority, RB, CAB, Transportation Systems:
                                        
Series A, 4.07%, 12/15/28 (a)
        $ 36,000         $    18,991,800     
Series A, 4.13%, 12/15/29 (a)
           18,000            9,030,780   
Series AA, 4.00%, 6/15/29
           12,625            13,585,258   
Series AA, 4.00%, 6/15/30
           22,315            23,862,099   
Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 5.25%, 1/01/27
           5,000            5,902,750   
Tobacco Settlement Financing Corp. New Jersey, Refunding RB, Series 1-A:
                                        
4.50%, 6/01/23
           9,895            9,870,164   
4.63%, 6/01/26
           22,460            21,794,959   
 
                         268,180,426   
New York — 7.5%
                                        
Housing Development Corp., RB, Series K-1:
                                        
3.40%, 11/01/30
           8,070            8,005,924   
3.50%, 11/01/32
           5,865            5,806,936   
Housing Development Corp., Refunding RB, Series L-1:
                                        
3.40%, 11/01/30
           1,580            1,567,455   
3.50%, 11/01/32
           1,160            1,148,516   
Metropolitan Transportation Authority, Refunding RB:
                                        
Series A, 4.00%, 11/15/31
           12,300            13,347,099   
Series F, 5.00%, 11/15/30
           38,000            44,403,760   
New York State HFA, RB, Affordable Housing (SONYMA):
                                        
Series E, 3.00%, 11/01/30
           5,225            5,091,083   
Series F, 3.05%, 11/01/27
           4,020            4,015,136   
Series F, 3.45%, 11/01/32
           5,235            5,284,471   
Niagara Area Development Corp., Refunding RB, Covanta Energy Project, Series B, 4.00%, 11/01/24
           3,000            3,078,210   
Onondaga Civic Development Corp., RB, Saint Joseph’s Hospital Health Center Project, 4.50%, 7/01/32
           9,215            9,085,529   
Triborough Bridge & Tunnel Authority, Refunding RB, CAB, Series A (a):
                                        
3.47%, 11/15/29
           17,810            9,996,041   
3.55%, 11/15/30
           25,215            13,485,991   
3.67%, 11/15/31
           5,000            2,524,250   
 
                         126,840,401   
North Carolina — 2.1%
                                        
City of Charlotte North Carolina, Refunding RB, Charlotte-Douglas International Airport, Special Facilities Revenue, US Airway, Inc. Project, AMT, 5.60%, 7/01/27
           10,000            9,853,800   
North Carolina Capital Facilities Finance Agency, Refunding RB:
                                        
Duke Energy Carolinas, 4.38%, 10/01/31
           11,565            12,449,376   
Solid Waste Disposal, Duke Energy Carolinas Project, Series B, 4.38%, 10/01/31
           10,000            10,764,700   
North Carolina Medical Care Commission, RB, Mission Health Combined Group, 4.63%, 10/01/30
           2,000            2,166,680   
 
                         35,234,556   
North Dakota — 0.2%
                                        
North Dakota HFA, RB, Series A, 3.60%, 7/01/32
           2,945            2,984,934   
Ohio — 2.5%
                                        
Ohio State University, RB, General Receipts Special Purpose, Series A:
                                        
4.00%, 6/01/29
           4,000            4,367,880   
4.00%, 6/01/30
           9,670            10,487,598   
4.00%, 6/01/31
           14,220            15,356,747   
4.00%, 6/01/32
           10,285            11,060,078   
 
                         41,272,303   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 31
 
  
Schedule of Investments (continued)   BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
Municipal Bonds



   
Par
(000)

   
Value
Oklahoma — 0.2%
                                        
Oklahoma County Finance Authority, Refunding RB, Epworth Villa Project, Series A:
                                        
5.00%, 4/01/23
        $  1,050         $     1,119,762     
5.00%, 4/01/29
           1,500            1,543,245   
5.00%, 4/01/33
           1,050            1,066,139   
 
                         3,729,146   
Oregon — 2.3%
                                        
Oregon Health & Science University, Refunding RB, Series E:
                                        
4.00%, 7/01/29
           12,000            12,835,440   
5.00%, 7/01/30
           5,350            6,198,189   
4.00%, 7/01/31
           15,305            16,254,981   
5.00%, 7/01/32
           2,250            2,612,723   
 
                         37,901,333   
Pennsylvania — 10.5%
                                        
Allentown Neighborhood Improvement Zone Development Authority, Refunding RB, Series A:
                                        
5.00%, 5/01/27
           6,750            7,509,982   
5.00%, 5/01/28
           5,000            5,538,000   
5.00%, 5/01/29
           3,745            4,132,495   
5.00%, 5/01/30
           5,300            5,843,992   
Commonwealth Financing Authority, RB:
                                        
Series A-2, 5.00%, 6/01/31
           7,505            8,698,820   
Series B, 5.00%, 6/01/30
           7,360            8,550,259   
Series B, 5.00%, 6/01/31
           7,730            8,959,611   
Series B, 5.00%, 6/01/32
           8,115            9,377,288   
Cumberland County Municipal Authority, Refunding RB, Asbury Pennsylvania Obligation Group:
                                        
5.00%, 1/01/22
           750             793,073   
5.25%, 1/01/27
           1,275            1,335,958   
5.25%, 1/01/32
           2,000            2,074,120   
Lehigh County, Refunding RB, Lehigh Valley Health Network, 4.00%, 7/01/33
           27,535            28,518,826   
Montgomery County Higher Education & Health Authority, Refunding RB, Abington Memorial Hospital Obligation Group, 5.00%, 6/01/31
           5,000            5,660,650   
Montgomery County Industrial Development Authority, Refunding RB, Acts Retirement-Life Communities, Inc. Obligated Group, 5.00%, 11/15/26
           2,500            2,810,050   
Pennsylvania Economic Development Financing Authority, RB, AMT, National Gypsum Co.:
                                        
Series A, 6.25%, 11/01/27
           6,520            6,519,348   
Series B, 6.13%, 11/01/27
           3,000            2,975,250   
Pennsylvania Higher Educational Facilities Authority, RB, Shippensburg University Student Services, 5.00%, 10/01/30
           3,000            3,319,530   
Pennsylvania Higher Educational Facilities Authority, Refunding RB, La Salle University, 4.00%, 5/01/32
           3,000            3,009,480   
Pennsylvania Housing Finance Agency, RB, Series 114, AMT:
                                        
3.05%, 10/01/27
           1,000            998,800   
3.30%, 10/01/32
           20,500            20,178,150   
State Public School Building Authority, RB, School District of Philadelphia Project:
                                        
5.00%, 4/01/27
           4,130            4,714,643   
5.00%, 4/01/28
           8,000            9,054,320   
5.00%, 4/01/29
           6,000            6,755,400   
5.00%, 4/01/30
           5,500            6,169,405   
State Public School Building Authority, Refunding RB, School District of Philadelphia Project, Series B (AGM), 5.00%, 6/01/29
           11,345            13,447,909   
 
                         176,945,359   
Municipal Bonds



   
Par
(000)

   
Value
South Carolina — 0.4%
                                        
South Carolina Jobs-EDA, Refunding RB, Bon Secours Health System, Inc., 5.00%, 11/01/29
        $  6,000         $     6,762,540     
Texas — 9.5%
                                        
City of Austin,Texas, Refunding RB, Electric Utility System Revenue, Series A:
                                        
4.00%, 11/15/28
           2,850            3,125,595   
4.00%, 11/15/29
           3,840            4,170,317   
4.00%, 11/15/30
           10,235            11,043,156   
4.00%, 11/15/31
           10,645            11,429,536   
4.00%, 11/15/32
           11,060            11,851,011   
Clifton Higher Education Finance Corp., Refunding RB, Uplift Education, Series A:
                                        
3.10%, 12/01/22
           1,050            1,044,687   
3.95%, 12/01/32
           1,800            1,801,386   
Love Field Airport Modernization Corp., RB, Southwest Airlines Co. Project, AMT, 5.00%, 11/01/28
           5,750            6,263,475   
Lower Colorado River Authority, Refunding RB, Series B, 5.00%, 5/15/29
           4,770            5,563,442   
Matagorda County Navigation District No 1 Texas, Refunding RB (AMBAC):
                                        
Series A, 4.40%, 5/01/30
           30,730            32,382,967   
Series B, AMT, 4.55%, 5/01/30
           10,000            10,366,000   
Midland County Fresh Water Supply District No 1, RB, City of Midland Project, Series A, 5.00%, 9/15/31
           2,435            2,895,361   
Midland County Fresh Water Supply District No 1, RB, CAB, City of Midland Project, Series A (a):
                                        
3.96%, 9/15/31
           6,235            3,005,831   
4.18%, 9/15/32
           15,135            6,724,934   
Red River Health Facilities Development Corp., RB, Wichita Falls Retirement Foundation Project:
                                        
4.70%, 1/01/22
           1,000            1,017,760   
5.50%, 1/01/32
           1,000            1,036,300   
Texas Municipal Gas Acquisition & Supply Corp. III, RB, Natural Gas Utility Improvements:
                                        
5.00%, 12/15/30
           18,000            19,562,580   
5.00%, 12/15/31
           14,000            15,192,660   
5.00%, 12/15/32
           11,000            11,908,050   
 
                         160,385,048   
US Virgin Islands — 0.7%
                                        
Virgin Islands Public Finance Authority, Refunding RB, Gross Receipts Taxes Loan Note, Series A, 5.00%, 10/01/32
           10,000            10,979,700   
Vermont — 0.2%
                                        
Vermont EDA, Refunding MRB, Wake Robin Corp. Project, 5.40%, 5/01/33
           2,400            2,534,640   
Virginia — 4.8%
                                        
Dullles Town Center Community Development Authority, Special Assessment Bonds, Dulles Town Center Project, 4.25%, 3/01/26
           500             495,035   
Fairfax County EDA, RB, Vinson Hall Llc, Series A:
                                        
4.00%, 12/01/22
           505             505,384   
4.50%, 12/01/32
           2,840            2,767,069   
5.00%, 12/01/32
           2,000            2,046,940   
Fairfax County IDA, Refunding RB, Inova Health System, Series D:
                                        
5.00%, 5/15/27
           9,025            10,622,605   
5.00%, 5/15/28
           8,000            9,359,120   
4.00%, 5/15/29
           8,575            9,150,554   
Hanover County EDA, Refunding RB, Covenant Woods, Series A:
                                        
4.50%, 7/01/30
           3,000            2,939,550   
4.50%, 7/01/32
           1,100            1,063,975   
Henrico County EDA, Refunding RB, Bon Secours Health System, 5.00%, 11/01/30
           3,400            3,812,080   

See Notes to Financial Statements.

32 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
Municipal Bonds



   
Par
(000)

   
Value
Virginia (concluded)
                                        
Norfolk EDA, Refunding RB, Bon Secours Health System, Inc.:
                                        
5.00%, 11/01/28
        $ 5,000         $ 5,690,050   
5.00%, 11/01/29
           5,000            5,648,700   
Virginia Housing Development Authority, RB, Sub-Series C-2, 3.00%, 4/01/31
           23,200            22,980,992   
Virginia Small Business Financing Authority, RB, Senior Lien, Express Lanes LLC, AMT, 5.00%, 7/01/34
           3,940            4,097,915   
 
                         81,179,969   
Washington — 0.7%
                                        
Greater Wenatchee Regional Events Center Public Facilities District, Refunding RB, Series A:
                                        
3.50%, 9/01/18
           1,025            1,050,615   
3.75%, 9/01/19
           1,060            1,090,528   
4.13%, 9/01/21
           1,145            1,179,625   
4.50%, 9/01/22
           1,000            1,046,750   
5.00%, 9/01/27
           1,000            1,062,550   
5.25%, 9/01/32
           1,000            1,059,420   
Port of Seattle Industrial Development Corp., Refunding RB, Special Facilities, Delta Airline, Inc. Project, AMT, 5.00%, 4/01/30
           5,000            5,040,500     
 
                         11,529,988   
Wisconsin — 0.4%
                                        
Public Finance Authority, Refunding RB, Airport Facilities, Senior Series B, AMT, 5.25%, 7/01/28
           2,250            2,452,208   
Wisconsin Health & Educational Facilities Authority, Refunding RB, Marquette University, 4.00%, 10/01/32
           4,520            4,756,938   
 
                         7,209,146   
Total Municipal Bonds — 120.2%
                         2,021,859,486   
 

 
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)
California — 7.7%
                                        
Anaheim California Public Financing Authority, Refunding RB, Electric Distribution System, Series A:
                                        
4.00%, 10/01/29
           15,800            16,984,134   
4.00%, 10/01/30
           16,425            17,655,975   
4.00%, 10/01/31
           17,080            18,360,064   
Port of Oakland California, Refunding RB, Senior Lien, Series P, AMT:
                                        
5.00%, 5/01/29
           6,685            7,269,507   
4.50%, 5/01/30
           32,220            35,037,175   
5.00%, 5/01/31
           10,675            11,608,375   
4.50%, 5/01/32
           21,355            23,222,188   
 
                         130,137,418   
Colorado — 7.4%
                                        
City & County of Denver Colorado, Refunding ARB, Department of Aviation, Series A:
                                        
4.25%, 11/15/30
           35,210            37,612,819   
4.00%, 11/15/31
           37,875            39,849,021   
4.25%, 11/15/31
           8,085            8,636,741   
4.25%, 11/15/32
           2,230            2,382,181   
AMT, 4.25%, 11/15/29
           33,820            36,127,961   
 
                         124,608,723   
Florida — 5.9%
                                        
County of Broward Florida, ARB, Series Q-1:
                                        
4.00%, 10/01/29
           17,200            17,957,436   
4.00%, 10/01/30
           18,095            18,891,850   
4.00%, 10/01/31
           18,820            19,648,776   
4.00%, 10/01/32
           19,575            20,437,024   
4.00%, 10/01/33
           20,355            21,251,373   
 
                         98,186,459   
Municipal Bonds Transferred to
Tender Option Bond Trusts (d)



   
Par
(000)

   
Value
Illinois — 2.6%
                                        
City of Chicago Illinois, RB, Second Lien, Wastewater Transmission Project:
                                        
4.00%, 1/01/31
        $ 10,375         $    10,809,583     
4.00%, 1/01/32
           10,790            11,241,966   
4.00%, 1/01/33
           11,220            11,689,978   
4.00%, 1/01/35
           9,135            9,517,642   
 
                         43,259,169   
Iowa — 2.6%
                                        
Iowa State Board of Regents, RB, University of Iowa Hospitals and Clinics, Series SUI:
                                        
4.00%, 9/01/28
           3,375            3,556,457   
4.00%, 9/01/29
           6,525            6,875,816   
4.00%, 9/01/30
           6,325            6,665,064   
4.00%, 9/01/31
           8,650            9,115,067   
4.00%, 9/01/32
           7,750            8,166,679   
4.00%, 9/01/33
           9,375            9,879,047   
 
                         44,258,130   
New Hampshire — 1.2%
                                        
New Hampshire State Turnpike System, RB, Series C:
                                        
4.00%, 8/01/31
           3,665            3,838,603   
4.00%, 8/01/32
           2,290            2,398,473   
4.00%, 8/01/33
           4,350            4,556,050   
4.00%, 8/01/34
           4,035            4,226,129   
4.00%, 8/01/35
           4,745            4,969,761   
 
                         19,989,016   
Texas — 10.5%
                                        
City of San Antonio Texas Public Facilities Corp., Refunding LRB, Convention Center Refinancing and Expansion Project:
                                        
4.00%, 9/15/30
           15,000            15,720,261   
4.00%, 9/15/31
           19,475            20,410,139   
4.00%, 9/15/32
           18,075            18,942,915   
4.00%, 9/15/33
           11,000            11,528,192   
4.00%, 9/15/34
           11,885            12,455,687   
4.00%, 9/15/35
           4,500            4,716,078   
County of Harris Texas, Refunding RB, Senior Lien Toll Road, Series C, 4.00%, 8/15/33
           12,325            13,129,926   
Dallas/Fort Worth Texas International Airport, Refunding RB, AMT:
                                        
Series E, 4.00%, 11/01/32
           6,915            7,519,573   
Series E, 4.13%, 11/01/35
           10,435            11,347,325   
Series F, 5.00%, 11/01/29
           12,820            13,940,844   
Series F, 5.00%, 11/01/30
           15,565            16,925,837   
Series F, 5.00%, 11/01/31
           10,000            10,874,293   
Series F, 5.00%, 11/01/32
           17,170            18,671,161   
 
                         176,182,231   
Washington — 1.1%
                                        
State of Washington, COP, State and Local Agency Real and Personal Property:
                                        
4.00%, 7/01/29
           4,105            4,383,840   
4.00%, 7/01/30
           4,290            4,581,406   
4.00%, 7/01/31
           4,470            4,773,633   
4.00%, 7/01/32
           4,590            4,901,784   
 
                         18,640,663   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 39.0%
                         655,261,809   
Total Long-Term Investments
(Cost — $2,663,399,515) — 159.2%
                         2,677,121,295   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 33
 
  
Schedule of Investments (continued)   BlackRock Municipal Target Term Trust (BTT)
(Percentages shown are based on Net Assets)
Short-Term Securities



   
Par
(000)

   
Value
Michigan — 0.4%
                                        
Michigan State HDA, Refunding RB, VRDN, AMT (JPMorgan Chase Bank LOC), Series A, 0.15%, 2/01/13 (e)
        $ 6,900         $     6,900,000     
New York — 2.0%
                                        
New York City Municipal Water Finance Authority, Refunding RB, VRDN (Mizuho Corporate Bank LOC), 0.11%, 2/01/13 (e )
           34,000            34,000,000   
Pennsylvania — 3.9%
                                        
Pennsylvania HFA, RB, VRDN, S/F Housing, AMT (JPMorgan Chase Bank LOC) (e):
                                        
Series 98C, 0.14%, 2/01/13
           28,955            28,955,000   
Series 100C, 0.14%, 2/01/13
           21,825            21,825,000   
Pennsylvania HFA, Refunding RB, VRDN, S/F Housing, Series 99C, AMT (JPMorgan Chase Bank LOC), 0.14%, 2/01/13 (e)
           15,000            15,000,000   
 
                         65,780,000   
Short-Term Securities



   
Par
(000)

   
Value
Texas — 0.6%
                                        
State of Texas, RB, VRDN, Tax and Revenue Anticipation Notes (JPMorgan Chase Bank Liquidity Facility), 0.12%, 2/01/13 (e)
        $  9,700         $     9,700,000   
 
 
           Shares                  
Money Market Fund — 0.0%
                                        
FFI Institutional Tax-Exempt Fund, 0.01% (f)(g)
           81,831            81,831   
Total Short-Term Securities
(Cost — $116,461,831) — 6.9%
                         116,461,831   
Total Investments (Cost—$2,779,861,346) — 166.1%
                         2,793,583,126   
Liabilities in Excess of Other Assets — (8.9)%
                         (148,596,965 )  
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (27.5)%
                         (462,672,238 )  
RVMTP Shares, at Liquidation Value — (29.7)%
                         (500,000,000 )  
Net Assets Applicable to Common Shares — 100.0%
                      $ 1,682,313,923   

Notes to Schedule of Investments

(a)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(b)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty



   
Value
   
Unrealized
Appreciation
(Depreciation)

Wells Fargo & Co.
        $ 64,373,376         $ (821,297 )  
Pershing LLC
        $ 2,380,724         $ (8,435 )  
D.A. Davidson & Co.
        $ 7,847,908         $ 102,671   
Bank of America Corp.
        $ 12,059,160         $ 59,160   
Royal Bank of Canada
        $ 6,200,458         $ (24,783 )  
Stifel, Nicolaus & Co.
        $ 3,506,491         $ (15,243 )  
Royal Bank of Canada
        $ 11,488,689         $ (6,601 )  
Citigroup, Inc.
        $ 16,853,571         $ 101,308   

(c)      
Variable rate security. Rate shown is as of report date.
(d)      
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(e)      
Variable rate security. Rate shown is as of report date and maturity shown is the date the principal owed can be recovered through demand.
(f)      
Investments in issuers considered to be an affiliate of the Trust during the six months ended January 31, 2013, for purposes of Section 2(a)(3) of 1940 Act, as amended, were as follows:

Affiliate



   
Shares Held at
July 31, 2012

   
Net
Activity

   
Shares Held at
January 31, 2013

   
Income
   
FFI Institutional Tax-Exempt Fund
     
  
81,831
  
81,831
     $ 946       

(g)      
Represents the current yield as of report date.
     
For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
     
Fair Value Measurements—Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
     
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
     
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
     
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

See Notes to Financial Statements.

34 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments (concluded)   BlackRock Municipal Target Term Trust (BTT)
 
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
       
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of January 31, 2013:




   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Investments:
                                                                                
Long-Term Investments1
                    $ 2,677,121,295                     $ 2,677,121,295   
Short-Term Securities
        $ 81,831            116,380,000                        116,461,831   
Total
        $ 81,831         $ 2,793,501,295                      $ 2,793,583,126   
1 See above Schedule of Investments for values in each state or political subdivision.

       
Certain of the Trust’s liabilities are held at carrying amount or face value, which approximates fair value for financial statement purposes. As of January 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Liabilities:
                                                                                
TOB trust certificates
                    $  (462,594,948 )                    $  (462,594,948 )  
RVMTP Shares
                       (500,000,000 )                       (500,000,000 )  
Total
                    $ (962,594,948 )                    $  (962,594,948 )  

       
There were no transfers between levels during the six months ended January 31, 2013.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 35
 
  
Schedule of Investments January 31, 2013 (Unaudited) BlackRock New Jersey Municipal Income Trust (BNJ)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)

     Value
New Jersey — 123.3%
Corporate — 9.2%
                                        
Middlesex County Improvement Authority, RB, Subordinate, Heldrich Center Hotel, Series B, 6.25%, 1/01/37 (a)(b)
        $  1,790         $     133,247     
New Jersey EDA, RB, Continental Airlines Inc. Project, AMT (c):
                                        
7.00%, 11/15/30
           3,450            3,462,903   
7.20%, 11/15/30
           2,000            2,007,500   
New Jersey EDA, Refunding RB, New Jersey American Water Co., Inc. Project, AMT:
                                        
Series A, 5.70%, 10/01/39
           1,500            1,680,615   
Series B, 5.60%, 11/01/34
           1,275            1,452,952   
Salem County Pollution Control Financing Authority, Refunding RB, Atlantic City Electric, Series A, 4.88%, 6/01/29
           2,400            2,664,888   
 
                         11,402,105   
County/City/Special District/School District — 15.2%
                                        
Bergen County New Jersey Improvement Authority, Refunding RB, Fair Lawn Community Center, Inc. Project, 5.00%, 9/15/34
           785             937,808   
City of Margate City New Jersey, GO, Refunding, Improvement, 5.00%, 1/15/28
           1,085            1,253,327   
City of Perth Amboy New Jersey, GO, Refunding, CAB (AGM):
                                        
5.00%, 7/01/34
           1,075            1,160,054   
5.00%, 7/01/35
           175             188,024   
Essex County Improvement Authority, Refunding RB, Project Consolidation (NPFGC):
                                        
5.50%, 10/01/28
           1,440            1,908,648   
5.50%, 10/01/29
           2,630            3,499,609   
Hudson County Improvement Authority, RB, Harrison Parking Facility Project, Series C (AGC):
                                        
5.25%, 1/01/39
           2,000            2,233,060   
5.38%, 1/01/44
           2,400            2,680,656   
Newark Housing Authority, Refunding RB, Newark Redevelopment Project (NPFGC), 4.38%, 1/01/37
           2,600            2,614,326   
South Jersey Transportation Authority, Refunding RB, Series A:
                                        
5.00%, 11/01/28
           305             353,147   
5.00%, 11/01/29
           305             352,315   
Union County Improvement Authority, RB, Guaranteed Lease, Family Court Building Project, 5.00%, 5/01/42
           1,515            1,727,873   
 
                         18,908,847   
Education — 14.6%
                                        
New Jersey EDA, RB:
                                        
MSU Student Housing Project Provide, 5.88%, 6/01/42
           1,500            1,681,695   
School Facilities Construction, Series CC-2, 5.00%, 12/15/31
           1,525            1,744,844   
New Jersey Educational Facilities Authority, RB, Montclair State University, Series J, 5.25%, 7/01/38
           580             654,959   
New Jersey Educational Facilities Authority, Refunding RB:
                                        
College of New Jersey, Series D (AGM), 5.00%, 7/01/35
           3,230            3,567,923   
Georgian Court University, Series D, 5.00%, 7/01/33
           250             264,795   
Kean University, Series A, 5.50%, 9/01/36
           2,060            2,366,858   
New Jersey Institute of Technology, Series H, 5.00%, 7/01/31
           660             745,298   
Ramapo College, Series B, 5.00%, 7/01/42
           265             300,743   
University of Medicine & Dentistry, Series B, 7.50%, 12/01/32
           1,450            1,817,082   
Municipal Bonds          Par
(000)

     Value
New Jersey (continued)
Education (concluded)
                                        
New Jersey Higher Education Student Assistance Authority, Refunding RB:
                                        
Series 1, AMT, 5.75%, 12/01/29
        $  2,055         $   2,321,903     
Series 1A, 5.00%, 12/01/25
           530             585,443   
Series 1A, 5.00%, 12/01/26
           345             379,738   
Series 1A, 5.25%, 12/01/32
           500             554,670   
New Jersey Institute of Technology, RB, GO, Series A, 5.00%, 7/01/42
           970             1,110,117   
 
                         18,096,068   
Health — 17.1%
                                        
New Jersey EDA, RB:
                                        
First Mortgage, Lions Gate Project, Series A, 5.75%, 1/01/25
           500             506,885   
First Mortgage, Lions Gate Project, Series A, 5.88%, 1/01/37
           855             861,250   
Masonic Charity Foundation Project, 5.50%, 6/01/31
           875             880,758   
New Jersey EDA, Refunding RB:
                                        
First Mortgage, Winchester, Series A, 5.75%, 11/01/24
           4,050            4,153,032   
Seabrook Village, Inc. Facility, 5.25%, 11/15/26
           1,790            1,867,829   
New Jersey Health Care Facilities Financing Authority, RB (AGC):
                                        
Meridian Health, Series I, 5.00%, 7/01/38
           740             794,693   
Virtua Health, 5.50%, 7/01/38
           1,250            1,394,813   
New Jersey Health Care Facilities Financing Authority, Refunding RB:
                                        
AHS Hospital Corp., 6.00%, 7/01/37
           900             1,118,412   
AHS Hospital Corp., 6.00%, 7/01/41
           1,045            1,288,882   
Barnabas Health, Series A, 5.00%, 7/01/25
           140             162,071   
Barnabas Health, Series A, 5.63%, 7/01/32
           580             657,407   
Barnabas Health, Series A, 5.63%, 7/01/37
           1,605            1,813,024   
Kennedy Health System, 5.00%, 7/01/42
           500             550,855   
Meridian Health System Obligated Group Issue, 5.00%, 7/01/26
           970             1,110,543   
Robert Wood Johnson, 5.00%, 7/01/31
           500             550,870   
South Jersey Hospital, 5.00%, 7/01/46
           1,650            1,708,014   
St. Barnabas Health Care System, Series A, 5.00%, 7/01/29
           1,750            1,844,588   
 
                         21,263,926   
Housing — 10.9%
                                        
Middlesex County Improvement Authority, RB, AMT (Fannie Mae):
                                        
Administration Building Residential Project, 5.35%, 7/01/34
           1,400            1,401,652   
New Brunswick Apartments Rental Housing, 5.30%, 8/01/35
           4,325            4,330,103   
New Jersey State Housing & Mortgage Finance Agency, RB:
                                        
M/F Housing, Series A, 4.55%, 11/01/43
           1,540            1,600,768   
S/F Housing, Series CC, 5.00%, 10/01/34
           1,445            1,563,389   
S/F Housing, Series X, AMT, 4.85%, 4/01/16
           995             1,021,278   
Series A, 4.75%, 11/01/29
           1,185            1,266,694   
Series AA, 6.38%, 10/01/28
           1,055            1,137,417   
Series AA, 6.50%, 10/01/38
           1,190            1,248,358   
 
                         13,569,659   
State — 28.4%
                                        
Garden State Preservation Trust, RB, CAB, Series B (AGM), 2.99%, 11/01/26 (d)
           6,000            3,989,520   
New Jersey EDA, RB:
                                        
Kapkowski Road Landfill Project, Series B, AMT, 6.50%, 4/01/31
           5,000            5,935,200   
Motor Vehicle Surcharge, Series A (NPFGC), 5.25%, 7/01/25
           1,365            1,686,976   

See Notes to Financial Statements.

36 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock New Jersey Municipal Income Trust (BNJ)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)

     Value
New Jersey (concluded)
State (concluded)
                              
New Jersey EDA, RB (concluded):
                                        
School Facilities Construction, Series KK, 5.00%, 3/01/35
        $  1,000         $   1,146,640     
School Facilities Construction, Series KK, 5.00%, 3/01/38
           785             893,856   
School Facilities Construction, Series Z (AGC), 5.50%, 12/15/34
           3,000            3,496,440   
New Jersey EDA, Refunding RB:
                                        
5.00%, 6/15/26
           810             923,351   
(AGM), 5.00%, 6/15/22
           2,940            3,480,490   
Cigarette Tax, 5.00%, 6/15/29
           1,000            1,116,390   
School Facilities Construction, Series GG, 5.25%, 9/01/26
           3,500            4,136,650   
New Jersey EDA, Special Assessment Bonds, Refunding, Kapkowski Road Landfill Project, 6.50%, 4/01/28
           2,500            3,002,150   
New Jersey Health Care Facilities Financing Authority, RB, Hospital Asset Transformation Program, Series A, 5.25%, 10/01/38
           2,350            2,573,532   
State of New Jersey, COP, Equipment Lease Purchase, Series A:
                                        
5.25%, 6/15/27
           2,000            2,263,020   
5.25%, 6/15/28
           600             677,382   
 
                         35,321,597   
Transportation — 25.2%
                                        
Delaware River Port Authority of Pennsylvania & New Jersey, RB, Series D, 5.00%, 1/01/40
           800             893,424   
New Jersey State Turnpike Authority, RB, Series E, 5.25%, 1/01/40
           1,970            2,210,892   
New Jersey State Turnpike Authority, Refunding RB:
                                        
Series A, 5.00%, 1/01/35
           620             711,140   
Series B, 5.00%, 1/01/30
           1,415            1,656,158   
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
                                        
CAB, Series C (AGM), 4.33%, 12/15/32 (d)
           4,000            1,707,480   
Series A, 6.00%, 6/15/35
           4,135            5,092,004   
Series A, 5.88%, 12/15/38
           1,770            2,087,326   
Series A, 6.00%, 12/15/38
           945             1,127,640   
Series A, 5.50%, 6/15/41
           2,000            2,324,260   
Series A (AGC), 5.50%, 12/15/38
           1,000            1,158,960   
Series B, 5.00%, 6/15/42
           1,320            1,465,596   
Port Authority of New York & New Jersey, RB, JFK International Air Terminal, Special Project:
                                        
Series 6, AMT (NPFGC), 5.75%, 12/01/22
           6,000            6,002,220   
Series 8, 6.00%, 12/01/42
           1,430            1,699,955   
Port Authority of New York & New Jersey, Refunding RB, Consolidated 152nd Series, AMT, 5.75%, 11/01/30
           1,750            2,039,748   
South Jersey Transportation Authority, Refunding RB, Series A, 5.00%, 11/01/27
           1,000            1,162,710   
 
                         31,339,513   
Utilities — 2.7%
                                        
Rahway Valley Sewerage Authority, RB, CAB, Series A (NPFGC), 4.24%, 9/01/33 (d)
           2,000            843,280   
Union County Utilities Authority, Refunding RB, New Jersey Solid Waste System, County Deficiency Agreement, Series A, 5.00%, 6/15/41
           2,185            2,508,096   
 
                         3,351,376   
Total Municipal Bonds in New Jersey
     153,253,091   
Municipal Bonds          Par
(000)

     Value
Puerto Rico — 12.2%
Housing — 3.4%
                                        
Puerto Rico Housing Finance Authority, RB, Mortgage-Backed Securities, Series B, AMT (Ginnie Mae), 5.30%, 12/01/28
        $  2,095         $   2,097,744     
Puerto Rico Housing Finance Authority, Refunding RB, Mortgage-Backed Securities, Series A (Ginnie Mae), 5.20%, 12/01/33
           2,095            2,098,415   
 
                         4,196,159   
State — 8.8%
                                        
Puerto Rico Public Buildings Authority, RB, CAB, Series D (AMBAC), 5.45%, 7/01/17 (e)
           2,665            3,180,571   
Puerto Rico Sales Tax Financing Corp., RB, First Sub-Series A:
                                        
5.75%, 8/01/37
           3,075            3,323,706   
6.00%, 8/01/42
           2,250            2,475,607   
Puerto Rico Sales Tax Financing Corp., Refunding RB, First Sub, Series C, 6.00%, 8/01/39
           1,740            1,937,351   
 
                         10,917,235   
Total Municipal Bonds in Puerto Rico
     15,113,394   
Total Municipal Bonds — 135.5%
     168,366,485   
 

 
Municipal Bonds Transferred to
Tender Option Bond Trusts (f)
             
New Jersey — 21.1%
Education — 1.3%
                                        
Rutgers State University of New Jersey, Refunding RB, Series F, 5.00%, 5/01/39
           1,499            1,664,390   
State — 5.5%
                                        
New Jersey EDA, RB, School Facilities Construction, Series Z (AGC), 6.00%, 12/15/34
           3,000               3,578,010     
New Jersey EDA, Refunding RB, School Facilities Construction, Series NN, 5.00%, 3/01/29
           2,788            3,257,042   
 
                         6,835,052   
Transportation — 9.1%
                                        
New Jersey Transportation Trust Fund Authority, RB, Transportation System:
                                        
Series A (AGM), 5.00%, 12/15/32
           2,000            2,269,720   
Series B, 5.25%, 6/15/36
           2,500            2,865,800   
Port Authority of New York & New Jersey, RB, Consolidated, 152nd Series, AMT, 5.00%, 10/15/41
           3,495            3,922,683   
Port Authority of New York & New Jersey, Refunding RB, 152nd Series, 5.25%, 11/01/35
           2,039            2,253,231   
 
                         11,311,434   
Utilities — 5.2%
                                        
Union County Utilities Authority, Refunding LRB, New Jersey Resource Recovery Facility, Covanta Union, Inc., Series A, AMT, 5.25%, 12/01/31
           5,710            6,389,662   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts in New Jersey
     26,200,538   
 
Puerto Rico — 1.1%
State — 1.1%
                                        
Puerto Rico Sales Tax Financing Corp., Refunding RB, Senior Series C, 5.25%, 8/01/40
           1,180            1,283,651   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 22.2%
     27,484,189   
Total Long-Term Investments
(Cost — $180,115,200) — 157.7%
     195,850,674   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 37
 
  
Schedule of Investments (concluded)   BlackRock New Jersey Municipal Income Trust (BNJ)
(Percentages shown are based on Net Assets)
 
Short-Term Securities
         Shares      Value
BIF New Jersey Municipal Money Fund, 0.00% (g)(h)
           670,723         $     670,723     
Total Short-Term Securities
(Cost — $670,723) — 0.5%
     670,723   
Total Investments (Cost—$180,785,923) — 158.2%
     196,521,397   
Other Assets Less Liabilities — 1.0%
     1,212,167   
Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (11.6)%
     (14,371,615 )  
VMTP Shares, at Liquidation Value — (47.6)%
     (59,100,000 )  
Net Assets Applicable to Common Shares — 100.0%
  $ 124,261,949   

Notes to Schedule of Investments

(a)      
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(b)      
Non-income producing security.
(c)      
Variable rate security. Rate shown is as of report date.
(d)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(e)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(f)      
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(g)      
Investments in issuers considered to be an affiliate of the Trust during the six months ended January 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate



   
Shares Held at
July 31, 2012

   
Net
Activity

   
Shares Held at
January 31, 2013

   
Income
   
BIF New Jersey Municipal Money Fund
     
2,329,356
  
(1,658,633)
  
670,723
     $                      

(h)      
Represents the current yield as of report date.
     
For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.
     
Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
     
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
     
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
     
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments)
       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
       
The following table summarizes the Trust’s investments categorized in the disclosure hierarchy as of January 31, 2013:



   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                      
Investments:
                                                                                
Long-Term Investments1
                    $ 195,850,674                     $ 195,850,674     
Short-Term Securities
        $ 670,723                                    670,723     
Total
        $ 670,723         $ 195,850,674                     $ 196,521,397     
1   See above Schedule of Investments for values in each sector.

       
Certain of the Trust’s liabilities are held at carrying amount or face value, which approximates fair value for financial statement purposes. As of January 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:




   
Level 1
   
Level 2
   
Level 3
   
Total
Liabilities:
                                                      
Bank overdraft
                    $ (54,971 )                    $ (54,971 )  
TOB trust certificates
                       (14,366,757 )                       (14,366,757 )  
VMTP Shares
                       (59,100,000 )                       (59,100,000 )  
Total
                    $  (73,521,728 )                    $ (73,521,728 )  

There were no transfers between levels during the six months ended January 31, 2013.

See Notes to Financial Statements.

38 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments January 31, 2013 (Unaudited) BlackRock New York Municipal Income Trust (BNY)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)

     Value
New York — 119.6%
Corporate — 15.2%
                                        
Chautauqua County Industrial Development Agency, RB, NRG Dunkirk Power Project, 5.88%, 4/01/42
        $  1,000         $   1,129,050     
Essex County Industrial Development Agency New York, RB, International Paper Co. Project, Series A, AMT, 6.63%, 9/01/32
           550             613,140   
New York City Industrial Development Agency, RB, American Airlines Inc., JFK International Airport, AMT (a)(b)(c):
                                        
7.63%, 8/01/25
           3,200            3,679,616   
7.75%, 8/01/31
           4,000            4,599,600   
New York City Industrial Development Agency, Refunding RB, Senior TRIPS, Series A, AMT, 5.00%, 7/01/28
           795             846,564   
New York Liberty Development Corp., RB, Goldman Sachs Headquarters, 5.25%, 10/01/35
           5,350            6,358,100   
Niagara Area Development Corp., Refunding RB, Covanta Energy Project, Series A, AMT, 5.25%, 11/01/42
           1,500            1,547,520   
Port Authority of New York & New Jersey, RB, Continental Airlines Inc. and Eastern Air Lines Inc. Project, LaGuardia, AMT, 9.13%, 12/01/15
           4,720            4,838,000   
Suffolk County Industrial Development Agency New York, RB, KeySpan, Port Jefferson, AMT, 5.25%, 6/01/27
           7,000            7,092,680   
 
                         30,704,270   
County/City/Special District/School District — 27.1%
                                        
City of New York, New York, GO:
                                        
Series A-1, 4.75%, 8/15/25
           750             862,582   
Series A-1, 5.00%, 8/01/35
           1,000            1,160,470   
Series D, 5.38%, 6/01/32
           25             25,093   
Series G-1, 5.00%, 4/01/29
           750             893,925   
Sub-Series A-1, 4.00%, 10/01/34
           350             375,522   
Sub-Series G-1, 5.00%, 4/01/28
           5,000            5,977,450   
Sub-Series G-1, 6.25%, 12/15/31
           500             617,920   
Sub-Series I-1, 5.38%, 4/01/36
           1,750            2,077,372   
City of New York, New York, GO, Refunding, Series B, 3.00%, 8/01/31
           600             593,268   
Hudson New York Yards Infrastructure Corp., RB, Series A:
                                        
5.00%, 2/15/47
           5,485            5,825,618   
5.75%, 2/15/47
           200             238,662   
(AGC), 5.00%, 2/15/47
           1,000            1,064,440   
(AGM), 5.00%, 2/15/47
           1,000            1,064,440   
(NPFGC), 4.50%, 2/15/47
           1,970            2,041,846   
Metropolitan Transportation Authority, Refunding RB, Transportation, Series D, 5.00%, 11/15/34
           800             902,072   
Monroe County Industrial Development Corp., RB, Series A, 5.00%, 7/01/31
           1,900            2,211,467   
New York City Industrial Development Agency, RB, PILOT:
                                        
CAB, Yankee Stadium Project, Series A, 4.79%, 3/01/45 (d)
           1,500            329,010   
CAB, Yankee Stadium Project, Series A (AGC), 4.64%, 3/01/42 (d)
           1,960            515,833   
Queens Baseball Stadium, PILOT (AGC), 6.38%, 1/01/39
           150             176,073   
Queens Baseball Stadium, PILOT (AMBAC), 5.00%, 1/01/36
           3,000            3,023,190   
Yankee Stadium, PILOT (NPFGC), 4.75%, 3/01/46
           1,500            1,535,595   
New York Convention Center Development Corp., RB, Hotel Unit Fee Secured (AMBAC):
                                        
5.00%, 11/15/35
           250             273,168   
5.00%, 11/15/44
           9,660            10,541,282   
4.75%, 11/15/45
           500             541,180   
Municipal Bonds          Par
(000)

     Value
New York (continued)
County/City/Special District/School District (concluded)
New York Liberty Development Corp., Refunding RB:
                                        
4 World Trade Center Project, 5.00%, 11/15/31
        $    860          $     986,257     
4 World Trade Center Project, 5.75%, 11/15/51
           1,340            1,589,749   
7 World Trade Center Project, Class 2, 5.00%, 9/15/43
           1,670            1,857,224   
7 World Trade Center Project, Class 3, 5.00%, 3/15/44
           2,070            2,243,280   
Second Priority, Bank of America Tower at One Bryant Park Project, 5.63%, 7/15/47
           2,000            2,309,700   
Second Priority, Bank of America Tower at One Bryant Park Project, 6.38%, 7/15/49
           1,200            1,425,996   
New York State Dormitory Authority, RB, State University Dormitory Facilities, Series A, 5.00%, 7/01/39
           750             839,265   
New York State Dormitory Authority, Refunding RB, School Districts Financing Program, Series A (AGM), 5.00%, 10/01/35
           395             436,590   
 
                         54,555,539   
Education — 25.6%
                                        
Albany Industrial Development Agency, RB, New Covenant Charter School Project, Series A (b)(c):
                                        
7.00%, 5/01/25
           910             136,445   
7.00%, 5/01/35
           590             88,465   
Amherst Development Corp., Refunding RB, University at Buffalo Foundation Faculty-Student Housing Corp., Series A (AGM), 4.63%, 10/01/40
           1,100            1,190,222   
City of Troy Capital Resource Corp., Refunding RB, Rensselaer Polytechnic, Series A, 5.13%, 9/01/40
           3,240            3,592,480   
Dutchess County Industrial Development Agency New York, RB, Bard College Civic Facility, Series A-2, 4.50%, 8/01/36
           7,000            7,180,530   
Madison County Industrial Development Agency New York, RB:
                                        
Colgate University Project, Series B, 5.00%, 7/01/13 (e)
           2,000            2,040,040   
Commons II LLC, Student Housing, Series A (CIFG), 5.00%, 6/01/33
           275             287,350   
Nassau County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, Series A, 4.75%, 3/01/26
           1,165            1,277,679   
New York City Trust for Cultural Resources, RB, Juilliard School, 5.00%, 1/01/39
           750             870,862   
New York City Trust for Cultural Resources, Refunding RB:
                                        
Carnegie Hall, 4.75%, 12/01/39
           2,000            2,181,140   
Museum of Modern Art, Series 1A, 5.00%, 4/01/31
           1,000            1,164,600   
New York State Dormitory Authority, RB:
                                        
Convent of the Sacred Heart (AGM), 5.25%, 11/01/24
           155             179,785   
Convent of the Sacred Heart (AGM), 5.63%, 11/01/32
           750             900,795   
Convent of the Sacred Heart (AGM), 5.75%, 11/01/40
           210             249,722   
Mount Sinai School of Medicine, 5.13%, 7/01/39
           2,000            2,208,260   
New York University, Series 1 (AMBAC), 5.50%, 7/01/40
           1,440            1,933,128   
New York University, Series A (AMBAC), 5.00%, 7/01/37
           1,000            1,106,760   
New York University, Series B, 5.00%, 7/01/37
           1,250            1,447,062   
Rochester Institute of Technology, Series A, 6.00%, 7/01/18 (e)
           1,000            1,262,080   
Teachers College, 5.00%, 7/01/42
           500             564,420   
University of Rochester, Series A, 0.00%, 7/01/39 (f)
           650             686,523   
University of Rochester, Series A, 5.13%, 7/01/39
           850             967,351   
University of Rochester, Series B, 5.00%, 7/01/39
           500             543,275   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 39
 
  
Schedule of Investments (continued)   BlackRock New York Municipal Income Trust (BNY)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)

     Value
New York (continued)
Education (concluded)
                                        
New York State Dormitory Authority, Refunding RB:
                                        
Brooklyn Law School, 5.75%, 7/01/33
        $    475          $     546,231   
Cornell University, Series A, 5.00%, 7/01/40
           1,000            1,158,000   
Culinary Institute of America, 5.00%, 7/01/42
           300             323,583   
Fordham University, 4.00%, 7/01/30
           555             589,909   
New York University, Series A, 5.00%, 7/01/37
           1,790            2,072,193   
Rochester Institute Technology, 4.00%, 7/01/33
           1,070            1,147,200   
Rochester Institute Technology, 5.00%, 7/01/42
           1,790            2,051,698   
Rockefeller University, Series B, 4.00%, 7/01/38
           1,835            1,945,834   
Saint John’s University, Series A, 5.00%, 7/01/27
           220             261,017   
Skidmore College, Series A, 5.00%, 7/01/27
           190             221,610   
Skidmore College, Series A, 5.00%, 7/01/28
           75             86,990   
Skidmore College, Series A, 5.25%, 7/01/29
           85             99,682   
Teachers College, 5.50%, 3/01/39
           450             507,587   
Third Generation Resolution, State University Educational Facilities, Series A, 5.00%, 5/15/29
           2,000            2,384,680   
Orange County Funding Corp., Refunding RB, Mount State Mary College, Series A:
                                        
5.00%, 7/01/37
           360             403,607   
5.00%, 7/01/42
           220             244,966   
St. Lawrence County Industrial Development Agency, RB, Clarkson University Project, 5.38%, 9/01/41
           275             316,014   
Suffolk County Industrial Development Agency, Refunding RB, New York Institute of Technology Project, 5.00%, 3/01/26
           1,000            1,030,430   
Tompkins County Development Corp., RB, Ithaca College Project (AGM), 5.50%, 7/01/33
           700             818,188   
Westchester County Industrial Development Agency New York, RB, Windward School Civic Facility (Radian), 5.25%, 10/01/31
           2,500            2,502,575   
Yonkers Industrial Development Agency New York, RB, Sarah Lawrence College Project, Series A, 6.00%, 6/01/41
           625             708,481   
 
                         51,479,449   
Health — 16.2%
                                        
Dutchess County Local Development Corp., Refunding RB, Health Quest System Inc., Series A, 5.75%, 7/01/40
           300             350,790   
Genesee County Industrial Development Agency New York, Refunding RB, United Memorial Medical Center Project, 5.00%, 12/01/27
           500             500,010   
Monroe County Industrial Development Corp., Refunding RB, Unity Hospital of Rochester Project (FHA), 5.50%, 8/15/40
           1,050            1,213,527   
Nassau County Local Economic Assistance Corp., Refunding RB, Winthrop University Hospital Association Project:
                                        
4.25%, 7/01/42
           350             353,238   
5.00%, 7/01/42
           2,750            2,952,757   
New York State Dormitory Authority, RB:
                                        
Hudson Valley Hospital (BHAC), 5.00%, 8/15/36
           750             824,872   
New York State Association for Retarded Children, Inc., Series B (AMBAC), 6.00%, 7/01/32
           200             230,242   
New York University Hospital Center, Series A, 6.00%, 7/01/40
           500             589,235   
New York University Hospital Center, Series B, 5.63%, 7/01/37
           530             580,700   
North Shore-Long Island Jewish Health System, 5.50%, 5/01/13 (e)
           2,000            2,026,520   
North Shore-Long Island Jewish Health System, Series A, 5.50%, 5/01/37
           1,775            2,028,275   
North Shore-Long Island Jewish Health System, Series C, 4.25%, 5/01/39
           750             797,138   
North Shore-Long Island Jewish Health System, Series D, 4.25%, 5/01/39
           1,100            1,169,135   
Municipal Bonds          Par
(000)

     Value
New York (continued)
Health (concluded)
                                        
New York State Dormitory Authority, RB (concluded):
                                        
North Shore-Long Island Jewish Health System, Series D, 5.00%, 5/01/39
        $    320          $     362,227     
Nysarc Inc., Series A, 6.00%, 7/01/32
           500             589,505   
New York State Dormitory Authority, Refunding RB:
                                        
Miriam Osborn Memorial Home Association, 5.00%, 7/01/29
           290             316,016   
Miriam Osborn Memorial Home Association, 5.00%, 7/01/42
           115             122,251   
Mount Sinai Hospital, Series A, 5.00%, 7/01/26
           1,385            1,564,496   
New York University Hospital Center, Series A, 5.00%, 7/01/36
           3,390            3,599,163   
North Shore-Long Island Jewish Health System, Series A, 5.00%, 5/01/32
           1,750            1,969,975   
North Shore-Long Island Jewish Health System, Series E, 5.50%, 5/01/33
           1,100            1,252,251   
Onondaga Civic Development Corp., RB, Saint Joseph’s Hospital Health Center Project:
                                        
4.50%, 7/01/32
           3,225            3,179,689   
5.00%, 7/01/42
           540             554,261   
Suffolk County Industrial Development Agency New York, Refunding RB, Jeffersons Ferry Project, 5.00%, 11/01/28
           1,175            1,204,763   
Westchester County Healthcare Corp. New York, Refunding RB, Senior Lien:
                                        
Series A, Remarketing, 5.00%, 11/01/30
           2,500            2,772,450   
Series B, 6.00%, 11/01/30
           500             596,905   
Westchester County IDA New York, RB, Kendal on Hudson Project, Series A, 6.38%, 1/01/24
           1,000            1,000,900   
 
                         32,701,291   
Housing — 1.9%
                                        
New York Mortgage Agency, Refunding RB, Homeowner Mortgage, Series 97, AMT, 5.50%, 4/01/31
           1,120            1,121,400   
New York State HFA, RB, M/F Housing, Series A, Highland Avenue Senior Apartments, Series A, AMT (SONYMA), 5.00%, 2/15/39
           1,500            1,553,145   
Yonkers EDC, Refunding RB, Riverview II (Freddie Mac), 4.50%, 5/01/25
           1,000            1,086,180   
 
                         3,760,725   
State — 7.0%
                                        
New York City Transitional Finance Authority, BARB:
                                        
Series S-1, 4.00%, 7/15/42
           2,225            2,322,989   
Series S-2 (NPFGC), 4.25%, 1/15/34
           1,700            1,767,728   
New York State Dormitory Authority, ERB, Series B, 5.75%, 3/15/36
           600             727,872   
New York State Dormitory Authority, RB, Mental Health Services Facilities Improvement, Series B (AMBAC), 5.00%, 2/15/35
           2,000            2,137,060   
New York State Dormitory Authority, Refunding RB:
                                        
General Purpose Bonds, Series A, 5.00%, 12/15/26
           2,000            2,460,540   
General Purpose, Series D, 5.00%, 2/15/34
           500             585,995   
New York State Thruway Authority, Refunding RB, Series A, 5.00%, 4/01/32
           3,500            4,124,785   
 
                         14,126,969   
Tobacco — 1.1%
                                        
Rensselaer Tobacco Asset Securitization Corp., RB, Series A, 5.75%, 6/01/43
           2,500            2,243,650   
Transportation — 19.2%
                                        
Metropolitan Transportation Authority, RB:
                                        
Series 2008C, 6.50%, 11/15/28
           1,000            1,272,460   
Series D, 5.25%, 11/15/41
           1,750            2,004,100   
Series H, 4.00%, 11/15/34
           2,000            2,088,940   
Series H, 5.00%, 11/15/42
           1,750            1,979,845   

See Notes to Financial Statements.

40 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments (continued)   BlackRock New York Municipal Income Trust (BNY)
(Percentages shown are based on Net Assets)
Municipal Bonds          Par
(000)

     Value
New York (concluded)
Transportation (concluded)
                                        
Metropolitan Transportation Authority, Refunding RB, Series F:
                                        
5.00%, 11/15/30
        $  2,530         $   2,956,356     
(AGM), 4.00%, 11/15/30
           3,000            3,260,700   
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.00%, 12/15/41
           5,675            6,420,922   
New York State Thruway Authority, RB, Series I, 5.00%, 1/01/27 (g)
           2,000            2,369,280   
New York State Thruway Authority, Refunding RB, General, Series I:
                                        
5.00%, 1/01/37
           920             1,043,740   
4.13%, 1/01/42
           1,075            1,121,031   
5.00%, 1/01/42
           280             315,350   
Port Authority of New York & New Jersey, RB:
                                        
Consolidated, 124th Series, AMT, AMT, 5.00%, 8/01/36
           2,000            2,006,820   
JFK International Air Terminal, 6.00%, 12/01/42
           1,000            1,188,780   
Special Project, JFK International Air Terminal, Series 6 AMT (NPFGC), 6.25%, 12/01/13
           1,000            1,019,430   
Special Project, JFK International Air Terminal, Series 6 AMT (NPFGC), 5.75%, 12/01/22
           7,000            7,002,590   
Port Authority of New York & New Jersey, Refunding RB, One Hundred Seventy-Seven, AMT, 4.00%, 1/15/43 (g)
           1,000            1,007,350   
Triborough Bridge & Tunnel Authority, Refunding RB:
                                        
Series A, 5.00%, 11/15/30
           250             297,630   
Series A, 3.13%, 11/15/32
           750             739,072   
Series A, 3.70%, 11/15/32 (d)
           845             409,293   
Series B, 5.00%, 11/15/31
           190             227,183   
 
                         38,730,872   
Utilities — 6.3%
                                        
Long Island Power Authority, RB:
                                        
Series A (AGM), 5.00%, 5/01/36
           500             564,395   
Series C (CIFG), 5.25%, 9/01/29
           2,000            2,454,540   
Long Island Power Authority, Refunding RB, Series A, 5.75%, 4/01/39
           4,000            4,763,680   
New York City Municipal Water Finance Authority, RB, Series B, 5.00%, 6/15/36
           750             835,890   
New York City Municipal Water Finance Authority, Refunding RB, Second General Resolution:
                                        
Series BB, 5.00%, 6/15/31
           1,000            1,164,850   
Series EE, 4.00%, 6/15/45
           2,310            2,407,159   
New York State Environmental Facilities Corp., Refunding RB, Revolving Funds, New York City Municipal Water, 5.00%, 6/15/36
           350             412,247   
 
                         12,602,761   
Total Municipal Bonds in New York
     240,905,526   
 
Puerto Rico — 6.5%
Housing — 1.3%
                                        
Puerto Rico Housing Finance Authority, Refunding RB, Subordinate, Capital Fund Modernization, 5.13%, 12/01/27
           2,500            2,684,175   
State — 3.3%
                                        
Puerto Rico Public Buildings Authority, Refunding RB, Government Facilities, Series D, 5.25%, 7/01/36
           1,600            1,599,984   
Puerto Rico Sales Tax Financing Corp., RB:
                                        
CAB, Series A, 5.62%, 8/01/32 (d)
           1,685            571,771   
First Sub-Series A, 5.75%, 8/01/37
           2,000            2,161,760   
First Sub-Series A (AGM), 5.00%, 8/01/40
           1,000            1,051,800   
Municipal Bonds          Par
(000)

     Value
Puerto Rico (concluded)
State (concluded)
                                        
Puerto Rico Sales Tax Financing Corp., Refunding RB, CAB, Series A (NPFGC) (d):
                                        
5.60%, 8/01/41
        $  3,500         $       725,620     
5.60%, 8/01/43
           2,500            464,100   
 
                         6,575,035   
Transportation — 1.1%
                                        
Puerto Rico Highway & Transportation Authority, Refunding RB, Series CC (AGM), 5.50%, 7/01/30
           2,000            2,252,560   
Utilities — 0.8%
                                        
Puerto Rico Aqueduct & Sewer Authority, Refunding RB, Senior Lien, Series A, 6.00%, 7/01/38
           1,100            1,138,929   
Puerto Rico Electric Power Authority, Refunding RB, Series VV (NPFGC), 5.25%, 7/01/29
           500             517,270   
 
                         1,656,199   
Total Municipal Bonds in Puerto Rico
     13,167,969   
Total Municipal Bonds — 126.1%
     254,073,495   
 

 
Municipal Bonds Transferred to
Tender Option Bond Trusts (h)
             
New York — 33.3%
County/City/Special District/School District — 6.9%
                                        
New York City Transitional Finance Authority, RB, Future Tax Secured, Sub-Series D1, 5.00%, 11/01/38
           825                    953,180     
New York Liberty Development Corp., RB, Class 1, 7 World Trade Center Project, Class 1, 4.00%, 9/15/35
           4,260            4,424,990   
New York Liberty Development Corp., Refunding RB:
                                        
4 World Trade Center Project, 5.00%, 11/15/44
           5,020            5,629,629   
7 World Trade Center Project, Class 1, 5.00%, 9/15/40
           2,610            2,981,272   
 
                         13,989,071   
Education — 0.5%
                                        
New York State Dormitory Authority, Refunding LRB, State University Dormitory Facilities, Series A, 5.00%, 7/01/42
           900             1,037,907   
Housing — 7.3%
                                        
New York Mortgage Agency, RB, 31st Series A, AMT, 5.30%, 10/01/31
           14,680            14,697,322   
State — 0.4%
                                        
New York City Transitional Finance Authority, BARB, Series S-3, 5.25%, 1/15/39
           660             740,655   
Transportation — 6.0%
                                        
Hudson New York Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47
           1,250            1,491,507   
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43
           6,495            7,472,656   
New York State Thruway Authority, Refunding RB, Series A, 5.00%, 3/15/31
           1,180            1,400,459   
Port Authority of New York & New Jersey, RB, Consolidated 169th Series, AMT, 5.00%, 10/15/26
           1,500            1,750,800   
 
                         12,115,422   
Utilities — 12.2%
                                        
New York City Municipal Water Finance Authority, RB, Fiscal 2009, Series A, 5.75%, 6/15/40
           1,200            1,430,771   
New York City Municipal Water Finance Authority, Refunding RB:
                                        
Second General Resolution, Series BB, 5.00%, 6/15/44
           3,511            3,981,277   
Second General Resolution, Series HH, 5.00%, 6/15/32
           5,310            6,197,885   

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 41
 
  
Schedule of Investments (continued)   BlackRock New York Municipal Income Trust (BNY)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to
Tender Option Bond Trusts (h)
         Par
(000)

     Value
New York (concluded)
Utilities (concluded)
                                        
New York City Municipal Water Finance Authority, Refunding RB (concluded):
                                        
Series A, 4.75%, 6/15/30
        $  4,000         $   4,477,840     
Series D, 5.00%, 6/15/39
           5,000            5,411,000   
Series FF-2, 5.50%, 6/15/40
           810             955,835   
Suffolk County Water Authority, Refunding RB, 3.00%, 6/01/25
           1,996            2,070,585   
 
                         24,525,193   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts in New York
     67,105,570   
 
Puerto Rico — 3.5%
State — 3.5%
                                        
Puerto Rico Sales Tax Financing Corp., Refunding RB:
                                        
5.00%, 8/01/40
           5,000            5,349,850   
Series C, 5.25%, 8/01/40
           1,520            1,653,517   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts in Puerto Rico
     7,003,367   
Total Municipal Bonds Transferred to
Tender Option Bond Trusts — 36.8%
     74,108,937   
Total Long-Term Investments
(Cost — $306,785,752) — 162.9%
     328,182,432   
 
Short-Term Securities



   
Shares
   
Value
BIF New York Municipal Money Fund, 0.00% (i)(j)
           3,477,638         $   3,477,638   
Total Short-Term Securities
(Cost — $3,477,638) — 1.7%
     3,477,638   
Total Investments (Cost—$310,263,390) — 164.6%
     331,660,070   
Other Assets Less Liabilities — 0.4%
     871,668   
Liability for TOB Trust Certificates, Including Interest
Expense and Fees Payable — (18.1)%
     (36,566,487 )  
VMTP Shares, at Redemption Value — (46.9)%
     (94,500,000 )  
Net Assets Applicable to Common Shares — 100.0%
  $ 201,465,251   

Notes to Schedule of Investments

(a)      
Variable rate security. Rate shown is as of report date.
(b)      
Issuer filed for bankruptcy and/or is in default of principal and/or interest payments.
(c)      
Non-income producing security.
(d)      
Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.
(e)      
US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.
(f)      
Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.
(g)      
When-issued security. Unsettled when-issued transactions were as follows:

Counterparty



   
Value
   
Unrealized
Depreciation

Pershing LLC
        $ 2,369,280         $ (1,320 )  
Wells Fargo & Co.
        $ 1,007,350         $ (9,060 )  

(h)      
Securities represent bonds transferred to a TOB in exchange for which the Trust acquired residual interest certificates. These securities serve as collateral in a financing transaction. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
(i)      
Investments in issuers considered to be an affiliate of the Trust during the six months ended January 31, 2013, for purposes of Section 2(a)(3) of the 1940 Act, as amended, were as follows:

Affiliate

   
Shares Held at
July 31, 2012

   
Net
Activity

   
Shares Held at
January 31, 2013

   
Income
BIF New York Municipal Money Fund
 
344,945
  
3,132,693
  
3,477,638
   $197

(j)      
Represents the current yield as of report date.
     
Financial futures contracts as of January 31, 2013 were as follows:

Contracts Sold
   
Issue
   
Exchange
   
Expiration
   
Notional
Value

   
Unrealized
Depreciation

(26)
 
30-Year US Treasury Note
  
Chicago Board of Trade
  
March 2013
  
$(3,730,188)
  
$(6,947)

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

See Notes to Financial Statements.

42 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Schedule of Investments (concluded)   BlackRock New York Municipal Income Trust (BNY)
 
     
Fair Value Measurements—Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes as follows:
          
Level 1 — unadjusted price quotations in active markets/exchanges for identical assets and liabilities that the Trust has the ability to access
       
Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)
       
Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)

       
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
       
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to Note 1 of the Notes to Financial Statements.
       
The following table summarizes the Trust’s investments and derivative financial instruments categorized in the disclosure hierarchy as of January 31, 2013:



   
Level 1
   
Level 2
   
Level 3
   
Total
Assets:
                                                                                
Investments:
                                                                                
Long-Term Investments1
                    $  328,182,432                     $ 328,182,432     
Short-Term Securities
        $ 3,477,638                                    3,477,638     
Total
        $ 3,477,638         $ 328,182,432                     $ 331,660,070     
                                     

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

                                     



   
Level 1
   
Level 2
   
Level 3
   
Total
Derivative Financial Instruments2
                                                                                
Assets:
                                                                                
Interest rate contracts
        $    (6,947 )                                $      (6,947 )  
2 Derivative financial instruments are financial futures contracts which are valued at unrealized appreciation/depreciation on the instrument.

       
Certain of the Trust’s liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of January 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:



   
Level 1
   
Level 2
   
Level 3
   
Total
Liabilities:
                                                                                
Bank overdraft
                    $ (87,898 )                    $ (87,898 )  
TOB trust certificates
                       (36,551,462 )                       (36,551,462 )  
VMTP Shares
                       (94,500,000 )                       (94,500,000 )  
Total
                    $ (131,139,360 )                    $ (131,139,360 )  

       
There were no transfers between levels during the six months ended January 31, 2013.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 43
 
  
Statements of Assets and Liabilities 

January 31, 2013 (Unaudited)
         BlackRock
California
Municipal
Income Trust
(BFZ)
     BlackRock
Florida
Municipal 2020
Term Trust
(BFO)
     BlackRock
Municipal
Income
Investment Trust
(BBF)
     BlackRock
Municipal
Target
Term Trust
(BTT)
     BlackRock
New Jersey
Municipal
Income Trust
(BNJ)
     BlackRock
New York
Municipal
Income Trust
(BNY)
Assets
Investments at value — unaffiliated1
        $ 862,742,550         $ 114,782,073         $ 174,863,246         $ 2,793,501,295         $ 195,850,674         $ 328,182,432   
Investments at value — affiliated2
           2,217,891            57,308            975,638            81,831            670,723            3,477,638   
Cash
                       103                                                    
Cash pledged as collateral for financial futures contracts
           198,000                                                               
Interest receivable
           12,173,349            1,226,064            2,076,647            18,719,250            1,954,082            3,438,182   
Investments sold receivable
           325,391            91,229                        295,885            10,000            2,051,644   
Deferred offering costs
           164,984                        172,808            876,403            101,641            120,162   
Prepaid expenses
           27,817            6,019            44,367            38,099            8,437            13,940   
Total assets
           877,849,982            116,162,796            178,132,706            2,813,512,763            198,595,557            337,283,998   
                                                     
Accrued Liabilities
Bank overdraft
           159,332                                                54,971            87,898   
Investments purchased payable
           5,727,374                                    159,655,511                        3,398,788   
Income dividends payable — Common Shares
           2,475,850            311,479            485,240            6,980,052            620,387            967,412   
Investment advisory fees payable
           427,290            54,873            90,394            790,191            99,715            169,412   
Interest expense and fees payable
           101,215            347             16,822            77,290            4,858            15,025   
Officer’s and Trustees’ fees payable
           62,543            8,339            16,797            10,958            19,901            29,826   
Variation margin payable
           14,063                                                            6,947   
Offering costs payable
                                               879,350                           
Other accrued expenses payable
           128,219            68,690            69,882            210,540            67,019            91,977   
Total accrued liabilities
           9,095,886            443,728            679,135            168,603,892            866,851            4,767,285   
                                                     
Other Liabilities
TOB trust certificates
           169,154,073            360,000            35,195,790            462,594,948            14,366,757            36,551,462   
RVMTP Shares, at liquidation value of $5,000,000 per share3,4
                                               500,000,000                           
VMTP Shares, at liquidation value of $100,000 per share3,4
           171,300,000                                                59,100,000            94,500,000   
VRDP Shares, at liquidation value of $100,000 per share3,4
                                   34,200,000                                       
Total other liabilities
           340,454,073            360,000            69,395,790            962,594,948            73,466,757            131,051,462   
Total liabilities
           349,549,959            803,728            70,074,925            1,131,198,840            74,333,608            135,818,747   
                                                     
AMPS at Redemption Value
$25,000 per share liquidation preference, plus unpaid dividends3,4
                       26,100,469                                                   
Net Assets Applicable to Common Shareholders
        $ 528,300,023         $ 89,258,599         $ 108,057,781        $1,682,313,923        $ 124,261,949         $ 201,465,251   
                                                 
Net Assets Applicable to Common Shareholders Consist of
Paid-in capital5,6,7
        $ 447,138,515         $ 79,391,300         $ 95,095,860         $ 1,680,741,508         $ 108,731,878         $ 183,019,196   
Undistributed (distributions in excess of) net investment income
           6,424,775            4,782,147            639,689            (12,202,552 )           1,800,990            2,732,168   
Net realized gain (accumulated net realized loss)
           (21,525,467 )           (682,733 )           (7,854,977 )           53,187            (2,006,393 )           (5,675,846 )  
Net unrealized appreciation/depreciation
           96,262,200            5,767,885            20,177,209            13,721,780            15,735,474            21,389,733   
Net Assets Applicable to Common Shareholders
        $ 528,300,023         $ 89,258,599         $ 108,057,781      
$1,682,313,923
     $ 124,261,949         $ 201,465,251   
Net asset value per Common Share
        $ 16.58         $ 16.05         $ 16.12         $ 23.86         $ 16.24         $ 15.62   
 
   1 Investments at cost — unaffiliated
        $ 766,631,279         $ 109,014,188         $ 154,686,037         $ 2,779,779,515         $ 180,115,200         $ 306,785,752   
   2 Investments at cost — affiliated
        $ 2,217,891         $ 57,308         $ 975,638         $ 81,831         $ 670,723         $ 3,477,638   
   3 Preferred Shares outstanding, par value $ 0.001 per share
           1,713            1,044            342             100             591             945    
   4 Preferred Shares authorized
           unlimited             unlimited             unlimited             unlimited             unlimited             unlimited    
   5 Par value per share per Common Share
        $ 0.001         $ 0.001         $ 0.001         $ 0.001         $ 0.001         $ 0.001   
   6 Common Shares outstanding
           31,864,226            5,562,128            6,704,527            70,505,571            7,649,650            12,898,822   
   7 Common Shares authorized
           unlimited             unlimited             unlimited             unlimited             unlimited             unlimited    

See Notes to Financial Statements.

44 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Statements of Operations 

Six Months Ended
January 31, 2013 (Unaudited)
         BlackRock
California
Municipal
Income Trust
(BFZ)
     BlackRock
Florida
Municipal 2020
Term Trust
(BFO)
     BlackRock
Municipal
Income
Investment Trust
(BBF)
     BlackRock
Municipal
Target
Term Trust1
(BTT)
     BlackRock
New Jersey
Municipal
Income Trust
(BNJ)
     BlackRock
New York
Municipal
Income Trust
(BNY)
Investment Income
Interest
        $ 18,609,258         $ 2,486,591         $ 3,832,737         $ 19,775,813         $ 4,456,051         $ 7,363,590   
Income — affiliated
           17             1,716            119             946                         197    
Total income
           18,609,275            2,488,307            3,832,856            19,776,759            4,456,051            7,363,787   
                                                     
Expenses
Investment advisory
           2,515,269            333,832            532,268            3,049,431            587,963            999,632   
Professional
           33,194            32,007            21,005            104,035            27,923            33,390   
Accounting services
           26,437            15,125            24,065            77,740            22,925            44,157   
Liquidity fees
                                   148,620                                       
Transfer agent
           24,036            14,342            12,583            42,229            13,611            17,149   
Custodian
           16,675            4,526            6,053            54,404            5,458            8,511   
Officer and Trustees
           28,265            4,253            6,603            47,006            6,812            11,059   
Registration
           5,464            4,646            4,631            9,238            4,718            4,662   
Organization
                                               33,000                           
Printing
           4,000            1,903            5,133            15,340            2,160            2,000   
Remarketing fees on Preferred Shares
                       25,937            17,480                                       
Miscellaneous
           22,741            10,837            26,825            34,814            33,611            26,241   
Total expenses excluding interest expense and fees and amortization of offering costs
           2,676,081            447,408            805,266            3,467,237            705,181            1,146,801   
Interest expense, fees and amortization of offering costs2
           1,617,198            1,127            189,280            595,495            407,769            707,726   
Total expenses
           4,293,279            448,535            994,546            4,062,732            1,112,950            1,854,527   
Less fees waived by Manager
           (40,099 )           (778 )           (479 )           (3,627 )           (1,705 )           (3,133 )  
Total expenses after fees waived
           4,253,180            447,757            994,067            4,059,105            1,111,245            1,851,394   
Net investment income
           14,356,095            2,040,550            2,838,789            15,717,654            3,344,806            5,512,393   
                                                     
Realized and Unrealized Gain (Loss)
Net realized gain from:
                                                                                                                        
Investments
           2,047,368            107,643            1,628,102            53,187            457,334            1,055,796   
Financial futures contracts
           133,691                                                               
 
           2,181,059            107,643            1,628,102            53,187            457,334            1,055,796   
Net change in unrealized appreciation/depreciation on:
                                                                                                                        
Investments
           6,443,585            (219,343 )           (177,769 )           13,721,780            505,464            354,828   
Financial futures contracts
           150,929                                                            (6,947 )  
 
           6,594,514            (219,343 )           (177,769 )           13,721,780            505,464            347,881   
Total realized and unrealized gain (loss)
           8,775,573            (111,700 )           1,450,333            13,774,967            962,798            1,403,677   
                                                     
Dividends to AMPS Shareholders From
Net investment income
                       (52,732 )                                                  
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations
        $  23,131,668         $   1,876,118         $   4,289,122         $  29,492,621         $   4,307,604         $   6,916,070   
1   For the period August 30, 2012 (commencement of operations) to January 31, 2013.
2   Related to TOBs, VMTP Shares, RVMTP Shares and/or VRDP Shares.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 45
 
  
Statements of Changes in Net Assets 

         BlackRock California
Municipal Income Trust (BFZ)
        BlackRock Florida
Municipal 2020 Term Trust (BFO)
   
Increase (Decrease) in Net Assets Applicable to Common Shareholders:
         Six Months
Ended
January 31,
2013
(Unaudited)
     Year Ended
July 31,
2012
          Six Months
Ended
January 31,
2013
(Unaudited)
     Year Ended
July 31,
2012
Operations
Net investment income
        $ 14,356,095         $ 30,391,363                     $ 2,040,550         $ 4,751,324   
Net realized gain
           2,181,059            6,685,430                        107,643            15,599   
Net change in unrealized appreciation/depreciation
           6,594,514            70,149,440                        (219,343 )           5,366,658   
Dividends to AMPS Shareholders from net investment income
                       (264,801 )                       (52,732 )           (103,786 )  
Net increase in net assets applicable to Common Shareholders resulting from operations
           23,131,668            106,961,432                        1,876,118            10,029,795   
                                           
Dividends to Common Shareholders From
 
Net investment income
           (14,849,294 )           (29,300,306 )1                       (1,868,875 )           (3,889,885 )1  
                                           
Capital Share Transactions
Reinvestment of common dividends
           439,979            171,858                                       
                                           
Net Assets Applicable to Common Shareholders
Total increase in net assets applicable to Common Shareholders
           8,722,353            77,832,984                        7,243            6,139,910   
Beginning of period
           519,577,670            441,744,686                        89,251,356            83,111,446   
End of period
        $   528,300,023         $   519,577,670                     $    89,258,599         $    89,251,356   
Undistributed net investment income
        $ 6,424,775         $ 6,917,974                     $ 4,782,147         $ 4,663,204   
1   Dividends are determined in accordance with federal income tax regulations.
         BlackRock Municipal
Income Investment Trust (BBF)
         BlackRock Municipal
Target Term Trust (BTT)
   
Increase (Decrease) in Net Assets
Applicable to Common Shareholders:
         Six Months
Ended
January 31,
2013
(Unaudited)
     Year Ended
July 31,
2012
          Period
August 30,
20121 to
January 31,
2013
(Unaudited)
Operations
Net investment income
        $ 2,838,789         $ 5,791,300                       $ 15,717,654   
Net realized gain
           1,628,102            1,359,326                          53,187   
Net change in unrealized appreciation/depreciation
           (177,769 )           15,725,171                          13,721,780   
Dividends to AMPS Shareholders from net investment income
                       (17,731 )                            
Net increase in net assets applicable to Common Shareholders resulting from operations
           4,289,122            22,858,066                          29,492,621   
 
                                                      
Dividends to Common Shareholders From
Net investment income
           (2,910,952 )           (6,018,632 )2                         (27,920,206 )  
 
                                                      
Capital Share Transactions
Net proceeds from the issuance of shares
                                                 1,477,804,008   
Net proceeds from the underwriter’s over allotment option excercised
                                                 202,937,500   
Reinvestment of common dividends
           52,510            62,151                             
Net increase in net assets derived from capital share transactions
           52,510            62,151                          1,680,741,508   
 
                                                      
Net Assets Applicable to Common Shareholders
Total increase in net assets applicable to Common Shareholders
           1,430,680            16,901,585                          1,682,313,923   
Beginning of period
           106,627,101            89,725,516                             
End of period
        $   108,057,781         $   106,627,101                       $ 1,682,313,923   
Undistributed (distributions in excess of) net investment income
        $ 639,689         $ 711,852                       $ (12,202,552 )  
1   Commencement of operations.
2   Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

46 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Statements of Changes in Net Assets 
         BlackRock New Jersey
Municipal Income Trust (BNJ)
        BlackRock New York
Municipal Income Trust (BNY)
   
Increase (Decrease) in Net Assets
Applicable to Common Shareholders:
         Six Months
Ended
January 31,
2013
(Unaudited)
     Year Ended
July 31,
2012
          Six Months
Ended
January 31,
2013
(Unaudited)
     Year Ended
July 31,
2012
Operations
Net investment income
        $ 3,344,806         $ 7,279,409                       $ 5,512,393         $ 11,927,277   
Net realized gain (loss)
           457,334            (396,512 )                         1,055,796            (156,391 )  
Net change in unrealized appreciation/depreciation
           505,464            16,446,899                          347,881            22,413,217   
Dividends to AMPS Shareholders from net investment income
                       (90,161 )                                     (143,845 )  
Net increase in net assets applicable to Common Shareholders resulting from operations
           4,307,604            23,239,635                          6,916,070            34,040,258   
                                             
Dividends to Common Shareholders From
Net investment income
           (3,720,168 )           (7,272,642 )1                         (5,800,679 )           (12,727,781 )1  
                                             
Capital Share Transactions
Reinvestment of common dividends
           177,930            303,612                          329,838            714,632   
                                             
Net Assets Applicable to Common Shareholders
Total increase in net assets applicable to Common Shareholders
           765,366            16,270,605                          1,445,229            22,027,109   
Beginning of period
           123,496,583            107,225,978                          200,020,022            177,992,913   
End of period
        $   124,261,949         $   123,496,583                       $   201,465,251         $   200,020,022   
Undistributed net investment income
        $ 1,800,990         $ 2,176,352                       $ 2,732,168         $ 3,020,454   
1   Dividends are determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 47
 
  
Statements of Cash Flows 

Six Months Ended
January 31, 2013 (Unaudited)
         BlackRock
California
Municipal
Income Trust
(BFZ)
     BlackRock
Municipal
Income
Investment Trust
(BBF)
     BlacRock
Municipal
Target
Term Trust
(BTT)
     BlackRock
New Jersey
Municipal
Income Trust
(BNJ)
     BlackRock
New York
Municipal
Income Trust
(BNY)
Cash Provided by (Used for) Operating Activities
Net increase in net assets resulting from operations, excluding dividends to AMPS Shareholders
        $    23,131,668         $     4,289,122         $ 29,492,621         $     4,307,604         $     6,916,070   
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities:
                                                              
Increase in interest receivable
           (173,243 )           (55,325 )           (18,719,250 )           (69,804 )           (12,191 )  
Increase in prepaid expenses
           (10,606 )           (38,487 )           (38,099 )           (1,810 )           (2,898 )  
Decrease in cash pledged as collateral for financial futures contracts
           (198,000 )                                                  
Increase in investment advisory fees payable
           17,775            3,028            790,191            2,946            4,142   
Increase (decrease) in interest expense and fees payable
           (427 )           745             77,290            289             1,697   
Increase (decrease) in other accrued expenses payable
           (27,555 )           (51,233 )           210,540            7,552            11,127   
Increase in variation margin payable
           14,063                                                6,947   
Increase in offering costs payable
                                   879,350                           
Increase (decrease) in Officer’s and Trustees’ fees payable
           (1,367 )           1,413            10,958            837             1,364   
Net realized and unrealized gain on investments
           (8,490,953 )           (1,450,333 )           (13,774,967 )           (962,798 )           (1,410,624 )  
Amortization of premium and accretion of discount on investments
           1,075,124            264,141            1,630,231            69,472            229,715   
Amortization of deferred offering costs
           36,238            11,029            2,947            23,042            27,184   
Proceeds from sales of long-term investments
           74,217,653            22,376,454            1,212,585            7,451,195            41,159,277   
Purchases of long-term investments
           (87,998,398 )           (25,444,279 )           (2,506,696,562 )           (12,733,958 )           (42,996,038 )  
Net proceeds from sales (purchases) of short-term securities
           5,735,387            656,131            (116,461,831 )           1,658,632            (2,162,693 )  
Cash provided by (used for) operating activities
           7,327,359            562,406            (2,621,383,996 )           (246,801 )           1,773,079   
                                             
Cash Provided by (Used for) Financing Activities
 
  
Cash receipts from issuance of common shares
                                   1,680,608,500                           
Cash receipts from issuance of VMTP Shares
                                                              
Cash receipts from issuance of RVMTP Shares
                                   500,000,000                           
Cash receipts from TOB trust certificates
           6,920,563            1,974,984            462,595,000            3,733,211            4,059,884   
Cash payments for TOB trust certificates
                                                           (355,000 )  
Cash dividends paid to Common Shareholders
           (14,407,254 )           (2,858,205 )           (20,940,154 )           (3,541,381 )           (5,565,861 )  
Cash payments for offering costs
                                   (879,350 )                          
Increase in bank overdraft
           159,332                                    54,971            87,898   
Cash provided by (used for) financing activities
           (7,327,359 )           (883,221 )           2,621,383,996            246,801            (1,773,079 )  
                                             
Cash
 
  
Net change in cash
                       (320,815 )                                      
Cash at beginning of period
                       320,815                                       
Cash at end of period
                                                              
                                             
Cash Flow Information
 
  
Cash paid during the period for interest and fees
        $ 1,579,397         $ 177,506         $ 515,258         $ 407,480         $ 697,270   
                                             
Non-cash Financing Activities
 
  
Capital shares issued in reinvestment of dividends paid to Common Shareholders
        $ 439,979         $ 52,510                     $ 177,930         $ 329,838   

See Notes to Financial Statements.

48 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Financial Highlights  BlackRock California Municipal Income Trust (BFZ)

    Six Months
Ended
January 31,
2013
(Unaudited)
                  Period
November 1,
2007 to
July 31,
2008
  Year Ended
October 31,
2007
                       
      Year Ended July 31,
   
          2012      2011      2010      2009          
Per Share Operating Performance
 
Net asset value, beginning of period
    $ 16.32         $ 13.88         $ 14.28         $ 12.71         $ 13.98         $ 14.97         $ 15.74   
Net investment income
       0.45 1           0.95 1           0.98 1           1.00 1           1.03 1           0.82 1           1.08   
Net realized and unrealized gain (loss)
       0.28            2.42            (0.45 )           1.50            (1.35 )           (0.90 )           (0.64 )  
Dividends to AMPS Shareholders from net investment income
                   (0.01 )           (0.02 )           (0.02 )           (0.12 )           (0.22 )           (0.30 )  
Net increase (decrease) from investment operations
       0.73            3.36            0.51            2.48            (0.44 )           (0.30 )           0.14   
Dividends to Common Shareholders from net investment income
       (0.47 )           (0.92 )2           (0.91 )2           (0.91 )2           (0.83 )2           (0.69 )2           (0.91 )2  
Net asset value, end of period
    $ 16.58         $ 16.32         $ 13.88         $ 14.28         $ 12.71         $ 13.98         $ 14.97   
Market price, end of period
    $ 16.98         $ 16.64         $ 13.16         $ 14.21         $ 12.40         $ 13.99         $ 15.82   
                                                         
Total Investment Return Applicable to Common Shareholders3
 
Based on net asset value
       4.49 %4         24.98 %           4.05 %           20.15 %           (2.36 )%         (2.09 )%4         0.77 %  
Based on market price
       4.95 %4         34.40 %           (0.86 )%         22.55 %           (4.81 )%         (7.29 )%4         (2.09 )%
                                                         
Ratios to Average Net Assets Applicable to Common Shareholders
 
Total expenses
       1.62 %5         1.49 %6         1.46 %6         1.36 %6         1.54 %6          1.25 %5,6          1.21 %6
Total expenses after fees waived and paid indirectly
       1.61 %5         1.46 %6         1.39 %6         1.27 %6         1.35 %6           0.98 %5,6         0.91 %6 
Total expenses after fees waived and paid indirectly and excluding interest expense and fees7
       1.00 %5         1.07 %6,8         1.12 %6         1.04  %6          1.08 %6          0.91 %5,6         0.91 %6
Net investment income
       5.42 %5         6.28 %6         7.19 %6         6.94  %6          8.27 %6          7.39 %5,6           7.09 %6
Dividends to AMPS Shareholders
                   0.05 %           0.15 %           0.15 %           1.00 %           1.95 %5         1.98 %  
Net investment income to Common Shareholders
       5.42%5            6.23 %           7.04 %           6.79 %           7.27 %           5.44 %5          5.11 %  
                                                         
Supplemental Data
 
Net assets applicable to Common Shareholders, end of period (000)
    $ 528,266         $ 519,578         $ 441,745         $ 454,299         $ 192,551         $ 211,671         $ 225,939   
AMPS Shares outstanding at $25,000 liquidation preference, end of period (000)
                            $ 171,325         $ 171,325         $ 71,000         $ 100,900         $ 131,950   
VMTP Shares outstanding at $100,000 liquidation value, end of period (000)
    $ 171,300         $ 171,300                                                               
Portfolio turnover
       8%            30%            36%            47%            58%            26%            26%   
Asset coverage per AMPS at $25,000 liquidation preference, end of period (000)
                            $ 89,460         $ 91,293         $ 92,801         $ 77,457         $ 67,816   
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period
    $ 408,406         $ 403,314                                                               
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4   Aggregate total investment return.
5   Annualized.
6   Do not reflect the effect of dividends to AMPS Shareholders.
7   Interest expense, fees and amortization of offering costs relate to TOBs. See Note 1 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP shares, respectively.
8   For the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs and remarketing fees was 1.04%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 49
 
  
Financial Highlights  BlackRock Florida Municipal 2020 Term Trust (BFO)

    Six Months
Ended
January 31,
2013
(Unaudited)
                  Period
January 1,
2008 to
July 31,
2008
  Year Ended
December 31,
2007
                       
      Year Ended July 31,
   
          2012      2011      2010      2009          
Per Share Operating Performance
Net asset value, beginning of period
    $ 16.05         $ 14.94         $ 14.91         $ 13.35         $ 14.16         $ 14.72         $ 15.16   
Net investment income
       0.37 1           0.85 1           0.92 1           0.95 1           0.96 1           0.58 1           0.99   
Net realized and unrealized gain (loss)
       (0.02 )           0.98            (0.19 )           1.31            (1.00 )           (0.62 )           (0.45 )  
Dividends to distributions to AMPS Shareholders from:
                                                                                                                                        
Net investment income
       (0.01 )           (0.02 )           (0.03 )           (0.03 )           (0.15 )           (0.16 )           (0.31 )  
Net realized gain
                                                                               (0.02 )  
Net increase (decrease) from investment operations
       0.34            1.81            0.70            2.23            (0.19 )           (0.20 )           0.21   
Dividends and distributions to Common Shareholders from:
                                                                                                                                        
Net investment income
       (0.34 )           (0.70 )2           (0.67 )2           (0.67 )2           (0.62 )2           (0.36 )2           (0.61 )2  
Net realized gain
                                                                               (0.04 )2  
Total dividends and distributions to Common Shareholders
       (0.34 )           (0.70 )           (0.67 )           (0.67 )           (0.62 )           (0.36 )           (0.65 )  
Net asset value, end of period
    $ 16.05         $ 16.05         $ 14.94         $ 14.91         $ 13.35         $ 14.16         $ 14.72   
Market price, end of period
    $ 15.57         $ 15.60         $ 13.91         $ 14.30         $ 12.31         $ 12.50         $ 12.93   
                                                         
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
       2.13 %4         12.44 %           5.07 %           17.35 %           (0.48 )%           (1.12 )%4           1.86 %  
Based on market price
       1.93 %4         17.38 %           2.00 %           22.05 %           3.95 %           (0.63 )%4         (2.06 )%  
                                                         
Ratio to Average Net Assets Applicable to Common Shareholders
Total expenses5
       0.99 %6          1.06 %           1.13 %           1.14 %           1.29 %           1.22 %6          1.16 %  
Total expenses after fees waived and paid indirectly5
       0.99 %6         1.06 %           1.13 %           1.13 %           1.26 %           1.22 %6         1.16 %  
Total expenses after fees waived and paid indirectly and excluding interest expense and fees5,7
       0.99 %6,8          1.06 %8          1.09 %           1.09 %           1.13 %           1.17 %6         1.16 %  
Net investment income5
       4.52 %6         5.48 %           6.29 %           6.72 %           7.39 %           6.74 %6          6.63 %  
Dividends to AMPS Shareholders
       0.12 %6         0.12 %           0.19 %           0.22 %           1.13 %           1.92 %6         2.07 %  
Net investment income to Common Shareholders
       4.40 %6          5.36 %           6.10 %           6.50 %           6.26 %           4.82 %6         4.56 %  
                                                         
Supplemental Data
Net assets applicable to Common Shareholders, end of
period (000)
    $ 89,244         $ 89,251         $ 83,111         $ 82,929         $ 74,256         $ 78,747         $ 81,896   
AMPS outstanding at $25,000 liquidation preference, end of period (000)
    $ 26,100         $ 42,900         $ 42,900         $ 42,900         $ 42,900         $ 42,900         $ 48,900   
Portfolio turnover
       7%            32%            6%            6%            9%            6%            17%   
Asset coverage per AMPS at $25,000 liquidation preference, end of period (000)
    $ 110,497         $  77,011         $  73,433         $  73,329         $  68,275         $  70,900         $  66,872   
1   Based on average Common Shares outstanding.
2   Dividends and distributions are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4   Aggregate total investment return.
5   Do not reflect the effect of dividends to AMPS Shareholders.
6   Annualized.
7   Interest expense and fees relate to TOBs. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs.
8   For the six months ended January 31, 2013 and the year ended July 31, 2012, total expense ratio after fees waived and excluding interest expense, fees, amortization of offering costs and remarketing fees was 0.93% and 0.97%, respectively.

See Notes to Financial Statements.

50 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Financial Highlights  BlackRock Municipal Income Investment Trust (BBF)

    Six Months
Ended
January 31,
2013
(Unaudited)
                  Period
November 1,
2007 to
July 31,
2008
  Year Ended
October 31,
2007
                       
      Year Ended July 31,
   
          2012      2011      2010      2009          
Per Share Operating Performance
Net asset value, beginning of period
    $ 15.91         $ 13.40         $ 13.91         $ 12.71         $ 14.08         $ 15.05         $ 15.68   
Net investment income
       0.42 1           0.86 1           0.97 1           0.92 1           1.01 1           0.80 1           1.07   
Net realized and unrealized gain (loss)
       0.22            2.55            (0.56 )           1.20            (1.36 )           (0.89 )           (0.49 )  
Dividends to AMPS Shareholders from net investment income
                   (0.00 )3           (0.02 )           (0.02 )           (0.14 )           (0.22 )           (0.31 )  
Net increase (decrease) from investment operations
       0.64            3.41            0.39            2.10            (0.49 )           (0.31 )           0.27   
Dividends to Common Shareholders from net investment income
       (0.43 )           (0.90 )2           (0.90 )2           (0.90 )2           (0.88 )2           (0.66 )2           (0.90 )2  
Net asset value, end of period
    $ 16.12         $ 15.91         $ 13.40         $ 13.91         $ 12.71         $ 14.08         $ 15.05   
Market price, end of period
    $ 16.27         $ 16.25         $ 12.74         $ 13.90         $ 12.49         $ 13.68         $ 15.10   
                                                         
Total Investment Return Applicable to Common Shareholders4
Based on net asset value
       4.07 %5         26.21 %           3.15 %           17.04 %           (2.57 )%           (2.04 )%5           1.78 %  
Based on market price
       2.84 %5         35.59 %           (1.86  )%           19.01 %           (1.46 )%          (5.14 )%5          (1.76 )%  
                                                         
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
       1.83 %6          1.99 %7          1.60 %7          1.46 %7          1.47 %7          1.31 %6,7         1.28 %7 
Total expenses after fees waived and paid indirectly
       1.83 %6         1.99 %7          1.60 %7          1.37 %7         1.27 %7         1.06 %6,7         0.96 %7
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs8
       1.48 %6,9         1.61 %7,9         1.33 %7          1.17 %7          1.16 %7         1.02 %6,7          0.96 %7
Net investment income
       5.21 %6         5.89 %7         7.35 %7          6.84 %7          8.13 %7         7.26 %6,7         7.02 %7
Dividends to AMPS Shareholders
                   0.02 %           0.14 %           0.16 %           1.11 %           1.96 %6         2.04 %  
Net investment income to Common Shareholders
       5.21 %6         5.87 %           7.21 %           6.68 %           7.02 %           5.30 %6         4.98 %  
                                                         
Supplemental Data
Net assets applicable to Common Shareholders, end of
period (000)
    $ 108,058         $ 106,627         $ 89,726         $ 93,073         $ 85,050         $ 94,176         $ 100,564   
AMPS outstanding at $25,000 liquidation preference, end of period (000)
                            $ 34,250         $ 34,250         $ 34,250         $ 49,550         $ 57,550   
VRDP Shares outstanding at $100,000 liquidation value, end of period (000)
    $ 34,200         $ 34,200                                                               
Portfolio turnover
       12%            39%            24%            46%            66%            13%            25%   
Asset coverage per AMPS at $25,000 liquidation preference, end of period
                            $  90,493         $  92,938         $  87,082         $  72,521         $  68,688   
Asset coverage per VRDP Shares at $100,000 liquidation value, end of period
    $ 415,958         $ 411,775                                                               
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Amount is less than $(0.01) per share.
4   Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
5   Aggregate total investment return.
6   Annualized.
7   Do not reflect the effect of dividends to AMPS Shareholders.
8   Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.
9   For the six months ended January 31, 2013 and the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs, liquidity and remarketing fees was 1.17% and 1.31%, respectively.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 51
 
  
Financial Highlights  BlackRock Municipal Target Term Trust (BTT)

         Period
August 30,
20121 to
January 31,
2013
(Unaudited)
Per Share Operating Performance
 
Net asset value, beginning of period
        $ 23.88 2  
Net investment income3
           0.23   
Net realized and unrealized gain
           0.16   
Net increase from investment operations
           0.39   
Dividends to Common Shareholders from net investment income4
           (0.40 )  
Capital charges with respect to the issuance of shares
           (0.01 )  
Net asset value, end of period
        $ 23.86   
Market price, end of period
        $ 23.94   
             
Total Investment Return Applicable to Common Shareholders5
Based on net asset value6
           1.54 %  
Based on market price6
           (2.68 )%  
             
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses7
           0.58 %  
Total expenses after fees waived and paid indirectly7
           0.58 %  
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7,8
           0.50 %  
Net investment income 7
           2.25 %  
             
Supplemental Data
Net assets applicable to Common Shareholders, end of period (000)
        $ 1,682,314   
RVMTP Shares outstanding at $5,000,000 liquidation value, end of period (000)
           500,000   
Portfolio turnover9
           0%   
Asset coverage per RVMTP Shares at $5,000,000 liquidation value, end of period
        $ 21,823,139   
1   Commencement of operations.
2   Net asset value, beginning of period, reflects a deduction of $1.125 per share sales charge from the initial offering price of $25.00 per share.
3   Based on average Common Shares outstanding.
4   A portion of the dividends from net investment income may be deemed a tax return of capital or net realized gain at fiscal year end.
5   Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
6   Aggregate total investment return.
7   Annualized.
8   Interest expense, fees and amortization of offering costs relate to TOBs and/or RVMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and RVMTP Shares, respectively.
9   Amount rounds to less than 1%.

See Notes to Financial Statements.

52 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Financial Highlights  BlackRock New Jersey Municipal Income Trust (BNJ)

    Six Months
Ended
January 31,
2013
(Unaudited)
                  Period
November 1,
2007 to
July 31,
2008
  Year Ended
October 31,
2007
                       
      Year Ended July 31,
   
          2012      2011      2010      2009          
Per Share Operating Performance
Net asset value, beginning of period
    $ 16.17         $ 14.07         $ 14.38         $ 12.78         $ 14.15         $ 15.49         $ 16.35   
Net investment income
       0.44 1           0.95 1           0.98 1           1.02 1           1.05 1           0.89 1           1.14   
Net realized and unrealized gain (loss)
       0.12            2.11            (0.32 )           1.54            (1.38 )           (1.24 )           (0.74 )  
Dividends to AMPS Shareholders from net investment income
                   (0.01 )           (0.03 )           (0.03 )           (0.11 )           (0.24 )           (0.30 )  
Net increase (decrease) from investment operations
       0.56            3.05            0.63            2.53            (0.44 )           (0.59 )           0.10   
Dividends to Common Shareholders from net investment income
       (0.49 )           (0.95 )2           (0.94 )2           (0.93 )2           (0.93 )2           (0.75 )2           (0.96 )2  
Net asset value, end of period
    $ 16.24         $ 16.17         $ 14.07         $ 14.38         $ 12.78         $ 14.15         $ 15.49   
Market price, end of period
    $ 17.90         $ 17.67         $ 14.10         $ 14.82         $ 14.00         $ 15.09         $ 16.90   
                                                         
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
       3.37 %4          22.25 %           4.74 %           20.22 %           (2.62 )%            (4.12 )%4          0.17 %  
Based on market price
       4.26 %4         33.30 %           1.85 %           13.11 %           0.04 %           (6.28  )%4         (2.89 )%  
                                                         
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
       1.77 %5         1.47 %6          1.25 %6          1.23 %6          1.38 %6         1.28 %5,6         1.24 %6 
Total expenses after fees waived and paid indirectly
       1.77 %5         1.46 %6         1.24 %6          1.13 %6          1.17 %6          1.03 %5,6          0.93 %6 
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7
       1.12 %5          1.18 %6,8          1.22 %6           1.12 %6          1.14 %6          1.02 %5,6           0.93 %6
Net investment income
       5.33 %5          6.28 %6          7.09 %6           7.42 %6         8.49 %6         7.92 %5,6         7.18 %6
Dividends to AMPS Shareholders
                   0.08 %           0.21 %           0.23 %           1.22 %           1.94 %5          1.86 %  
Net investment income to Common Shareholders
       5.33 %5          6.20 %           6.88 %           7.19 %           7.27 %           5.98 %5         5.32 %  
                                                         
Supplemental Data
Net assets applicable to Common Shareholders, end of
period (000)
    $ 124,262         $ 123,497         $ 107,226         $ 109,257         $ 96,696         $ 106,596         $ 116,152   
AMPS outstanding at $25,000 liquidation preference, end of period (000)
                            $ 59,100         $ 59,100         $ 59,100         $ 60,475         $ 63,800   
VMTP Shares outstanding at $100,000 liquidation value, end of period (000)
    $ 59,100         $ 59,100                                                               
Portfolio turnover
       4%            20%            20%            11%            29%            12%            23%   
Asset coverage per AMPS at $25,000 liquidation preference, end of period
                            $ 70,358         $ 71,218         $ 65,905         $ 69,083         $ 70,528   
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period
    $ 310,257         $ 308,962                                                               
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4   Aggregate total investment return.
5   Annualized.
6   Do not reflect the effect of dividends to AMPS Shareholders.
7   Interest expense, fees and amortization of offering costs relate to TOBs and/or VMTP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VMTP Shares, respectively.
8   For the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs and remarketing fees was 1.14%.

See Notes to Financial Statements.

SEMI-ANNUAL REPORT JANUARY 31, 2013 53
 
  
Financial Highlights  BlackRock New York Municipal Income Trust (BNY)

    Six Months
Ended
January 31,
2013
(Unaudited)
                  Period
November 1,
2007 to
July 31,
2008
  Year Ended
October 31,
2007
                       
      Year Ended July 31,
   
          2012      2011      2010      2009          
Per Share Operating Performance
Net asset value, beginning of period
    $ 15.53         $ 13.87         $ 14.27         $ 12.71         $ 13.88         $ 15.11         $ 15.88   
Net investment income
       0.43 1           0.93 1           1.01 1           1.04 1           1.06 1           0.86 1           1.11   
Net realized and unrealized gain (loss)
       0.11            1.73            (0.39 )           1.54            (1.22 )           (1.17 )           (0.70 )  
Dividends to AMP Shareholders from net investment income
                   (0.01 )           (0.03 )           (0.03 )           (0.10 )           (0.21 )           (0.28 )  
Net increase (decrease) from investment operations
       0.54            2.65            0.59            2.55            (0.26 )           (0.52 )           0.13   
Dividends to Common Shareholders from net investment income
       (0.45 )           (0.99 )2           (0.99 )2           (0.99 )2           (0.91 )2           (0.71 )2           (0.90 )2  
Net asset value, end of period
    $ 15.62         $ 15.53         $ 13.87         $ 14.27         $ 12.71         $ 13.88         $ 15.11   
Market price, end of period
    $ 16.82         $ 16.73         $ 14.20         $ 15.11         $ 13.95         $ 15.26         $ 15.55   
                                                         
Total Investment Return Applicable to Common Shareholders3
Based on net asset value
       3.48%4            19.62 %           4.39 %           20.35 %           (1.28 )%          (3.71 )%4          0.64 %  
Based on market price
       3.43%4            25.87 %           0.94 %           16.11 %           (1.44 )%         2.87%4            (5.20 )% 
                                                         
Ratios to Average Net Assets Applicable to Common Shareholders
Total expenses
       1.83 %5         1.49 %6          1.27 %6          1.25 %6         1.43 %6         1.25 %5, 6         1.22 %6 
Total expenses after fees waived and paid indirectly
       1.82 %5         1.49 %6          1.27 %6          1.16 %6         1.25 %6          1.00 %5, 6         0.92 %6 
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs7
       1.13 %5         1.18 %6, 8         1.22 %6          1.11 %6          1.13 %6          0.97 %5, 6         0.92 %6 
Net investment income
       5.43 %5         6.34 %6         7.35 %6         7.50 %6          8.67 %6         7.79 %5, 6         7.23 %6
Dividends to Preferred Shareholders
                   0.08 %           0.20 %           0.22 %           1.17 %           1.91 %5         1.84 %  
Net investment income to Common Shareholders
       5.43 %5         6.26 %           7.15 %           7.28 %           7.50 %           5.88 %5         5.39 %  
                                                         
Supplemental Data
Net assets applicable to Common Shareholders, end of
period (000)
    $ 201,465         $ 200,020         $ 177,993         $ 182,372         $ 161,727         $ 175,927         $ 190,962   
AMPS outstanding at $25,000 liquidation preference, end of period (000)
                            $ 94,500         $ 94,500         $ 94,500         $ 95,850         $ 109,750   
VMTP Shares outstanding at $100,000 liquidation value, end of period (000)
    $ 94,500         $ 94,500                                                               
Portfolio turnover
       13%            24%            17%            16%            18%            5%            23%   
Asset coverage per AMPS at $25,000 liquidation preference, end of period (000)
                            $ 72,089         $ 73,248         $ 67,787         $ 70,892         $ 68,509   
Asset coverage per VMTP Shares at $100,000 liquidation value, end of period
    $ 313,191         $ 311,661                                                               
1   Based on average Common Shares outstanding.
2   Dividends are determined in accordance with federal income tax regulations.
3   Total investment returns based on market price, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions.
4   Aggregate total investment return.
5   Annualized.
6   Do not reflect the effect of dividends to AMPS Shareholders.
7   Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 1 and Note 7 of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively.
8   For the year ended July 31, 2012, the total expense ratio after fees waived and paid indirectly and excluding interest expense, fees, amortization of offering costs and remarketing fees was 1.13%.

See Notes to Financial Statements.

54 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Notes to Financial Statements (Unaudited)  

1. Organization and Significant Accounting Policies:

BlackRock California Municipal Income Trust (“BFZ”), BlackRock Municipal Income Investment Trust (“BBF”), BlackRock New Jersey Municipal Income Trust (“BNJ”), BlackRock New York Municipal Income Trust (“BNY”), BlackRock Municipal Target Term Trust (“BTT”) (collectively, the “Income Trusts”) and BlackRock Florida Municipal 2020 Term Trust (“BFO”) are organized as Delaware statutory trusts. The Income Trusts and BFO are referred to herein collectively as the “Trusts.” The Trusts are registered under the 1940 Act as non-diversified, closed-end management investment companies. Prior to commencement of operations on August 30, 2012, BTT had no operations other than those relating to organizational matters and the sale of 5,571 Common Shares on August 16, 2011 to BlackRock Holdco 2, Inc., an affiliate of BTT, for $133,008. Investment operations for BTT commenced on August 30, 2012. The Trusts’ financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in 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. The Board of Directors and the Board of Trustees of the Trusts are collectively referred to throughout this report as the “Board of Trustees” or the “Board”, and the directors/trustees thereof are collectively referred to throughout this report as “Trustees.” The Trusts determine, and make available for publication the NAV of their Common Shares on a daily basis.

The following is a summary of significant accounting policies followed by the Trusts:

Valuation: US GAAP defines fair value as the price the Trusts would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Trusts determine the fair values of their financial instruments at market value using independent dealers or pricing services under policies approved annually by the Board of the Trusts. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Trusts for all financial instruments.

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments. Financial futures contracts traded on exchanges are valued at their last sale price. Investments in open-end registered investment companies are valued at NAV each business day. Short-term securities with remaining maturities of 60 days or less may be valued at amortized cost, which approximates fair value.

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 Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Assets”). When determining the price for Fair Value Assets, the Global Valuation Committee, or its delegate, seeks to determine the price that each Trust might reasonably expect to receive from the current sale of that asset in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement, which include the market approach, income approach and/or, in the case of recent investments, the cost approach, as appropriate. A market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trusts’ pricing vendors, a regular review of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Assets is subsequently reported to the Board or a committee thereof on a quarterly basis.

Zero-Coupon Bonds: The Trusts may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than similar maturity debt obligations which provide for regular interest payments.

Forward Commitments and When-Issued Delayed Delivery Securities: The Trusts may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Trusts may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Trusts may be required to pay more at settlement than the security is worth. In addition, the Trusts are 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,

SEMI-ANNUAL REPORT JANUARY 31, 2013 55
 
  
Notes to Financial Statements (continued)  


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, which is shown in the Schedules of Investments.

Municipal Bonds Transferred to TOBs: The Trusts leverage their assets through the use of TOBs. A TOB is a special purpose entity established by a third party sponsor, into which a fund, or an agent on behalf of a fund, transfers municipal bonds into a trust (“TOB Trust”). Other funds managed by the investment advisor may also contribute municipal bonds to a TOB into which a Trust has contributed bonds. A TOB typically issues two classes of beneficial interests: short-term floating rate certificates (“TOB Trust Certificates”), which are sold to third party investors, and residual certificates (“TOB Residuals”), which are generally issued to the participating funds that contributed the municipal bonds to the TOB Trust. If multiple funds participate in the same TOB, the rights and obligations under the TOB Residual will be shared among the funds ratably in proportion to their participation.

The TOB Residuals held by a Trust include the right of a Trust (1) to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates at par plus accrued interest upon the occurrence of certain mandatory tender events defined in the TOB agreements, and (2) to transfer, subject to a specified number of days’ prior notice, a corresponding share of the municipal bonds from the TOB to a Trust. The TOB may also be collapsed without the consent of a Trust, as the TOB Residual holder, upon the occurrence of certain termination events as defined in the TOB agreements. Such termination events may include the bankruptcy or default of the municipal bond, a substantial downgrade in credit quality of the municipal bond, the inability of the TOB to obtain renewal of the liquidity support agreement, a substantial decline in market value of the municipal bond and a judgment or ruling that interest on the municipal bond is subject to federal income taxation. Upon the occurrence of a Termination Event, the TOB would generally be liquidated in full with the proceeds typically applied first to any accrued fees owed to the trustee, remarketing agent and liquidity provider, and then to the holders of the TOB Trust Certificates up to par plus accrued interest owed on the TOB Trust Certificates, with the balance paid out to the TOB Residual holder. During the six months ended January 31, 2013, no TOBs in which the Trusts participated were terminated without the consent of the Trusts.

The cash received by the TOB from the sale of the TOB Trust Certificates, less transaction expenses, is paid to a Trust. The Trust typically invests the cash received in additional municipal bonds. Each Trust’s transfer of the municipal bonds to a TOB Trust is accounted for as a secured borrowing; therefore, the municipal bonds deposited into a TOB are presented in the Trusts’ Schedules of Investments and the TOB Trust Certificates are shown in other liabilities in the Statements of Assets and Liabilities. The carrying amount of the Trusts’ payable to the holder of the TOB Trust Certificates, as reported in Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

The Trusts may invest in TOBs on either a non-recourse or recourse basis. TOB Trusts are typically supported by a liquidity facility provided by a 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 from the Liquidity Provider of par plus accrued interest on any business day prior to the occurrence of the termination events described above. When a Trust invests in TOBS on a non-recourse basis, and the Liquidity Provider is required to make a payment under the liquidity facility due to a termination event, the Liquidity Provider will typically liquidate all or a portion of the municipal securities held in the TOB Trust and then fund, on a net basis, the balance, if any, of the amount owed under the liquidity facility over the liquidation proceeds (the “Liquidation Shortfall”). If a Trust invests in a TOB on a recourse basis, the Trust will typically enter into a reimbursement agreement with the Liquidity Provider where the Trust is required to repay the Liquidity Provider the amount of any Liquidation Shortfall. As a result, a Trust investing in a recourse TOB will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB, these losses will be shared ratably in proportion to their participation. The recourse TOB Trusts, if any, are identified in the Schedules of Investments.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by the Trusts on an accrual basis. Interest expense incurred on the secured borrowing and other expenses related to remarketing, administration and trustee services to a TOB are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. The TOB Trust Certificates have interest rates that generally reset weekly and their holders have the option to tender such certificates to the TOB for redemption at par at each reset date. At January 31, 2013, the aggregate value of the underlying municipal bonds transferred to TOBs, the related liability for TOB Trust Certificates and the range of interest rates on the liability for TOB Trust Certificates were as follows:




   
Underlying
Municipal Bonds
Transferred to TOBS

   
Liability for
TOB Trust
Certificates

   
Range of
Interest Rates

BFZ
        $ 368,425,314         $ 169,154,073      
0.09% – 0.19%
BFO
        $ 570,920         $ 360,000      
0.16%
BBF
        $ 69,728,358         $ 35,195,790      
0.09% – 0.35%
BTT
        $ 655,261,809         $ 462,594,948      
0.10% – 0.17%
BNJ
        $ 27,484,189         $ 14,366,757      
0.10% – 0.35%
BNY
        $ 74,108,937         $ 36,551,462      
0.09% – 0.17%

For the six months ended January 31, 2013, the Trusts’ average TOB Trust Certificates outstanding and the daily weighted average interest rate, including fees, were as follows:




   
Average TOB
Trust Certificates
Outstanding

   
Daily Weighted
Average
Interest Rate

BFZ
        $ 163,700,371            0.71 %  
BFO
        $ 380,924            0.59 %  
BBF
        $ 33,785,678            0.75 %  
BTT
        $ 120,414,480            0.93 %  
BNJ
        $ 10,969,732            0.76 %  
BNY
        $ 34,608,579            0.76 %  

Should short-term interest rates rise, the Trusts’ investments in TOBs 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 may adversely affect the Trusts’ NAVs per share.

56 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Notes to Financial Statements (continued)  

Segregation and Collateralization: In cases in which the 1940 Act and the interpretive positions of the Securities and Exchange Commission (“SEC”) require that the Trusts either deliver collateral or segregate assets in connection with certain investments (e.g., TOBs and financial futures contracts), the Trusts will, consistent with SEC rules and/or certain interpretive letters issued by the SEC, segregate collateral or designate on their books and records cash or liquid securities having a market value at least equal to the amount that would otherwise be required to be physically segregated. Furthermore, based on requirements and agreements with certain exchanges and third party broker-dealers, each party to such transactions has requirements to deliver/deposit securities as collateral for certain investments.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis.

Dividends and Distributions: Dividends from net investment income are declared and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates. The portion of distributions that exceeds a Trust’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a nontaxable return of capital. Distributions in excess of a Trust’s taxable income and net capital gains, but not in excess of a Trust’s earnings and profits, will be taxable to shareholders as ordinary income and will not constitute a nontaxable return of capital. The character and timing of dividends and distributions are determined in accordance with federal income tax regulations, which may differ from US GAAP. Dividends and distributions to Preferred Shareholders are accrued and determined as described in Note 7.

Income Taxes: It is the Trusts’ 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 federal income tax provision is required.

Each Trust files US federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Trusts’, except BTT, US federal tax returns remains open for each of the four years ended July 31, 2012. The statutes of limitations on each Trust’s, except BTT, state and local tax returns may remain open for an additional year depending upon the jurisdiction. Management does not believe there are any uncertain tax positions that require recognition of a tax liability.

Recent Accounting Standards: In December 2011, the Financial Accounting Standards Board (the “FASB”) issued guidance that will expand current disclosure requirements on the offsetting of certain assets and liabilities. The new disclosures will be required for investments and derivative financial instruments subject to master netting or similar agreements, which are eligible for offset in the Statements of Assets and Liabilities and will require an entity to disclose both gross and net information about such investments and transactions in the financial statements. In January 2013, the FASB issued guidance that clarifies which investments and transactions are subject to the offsetting disclosure requirements. The scope of the disclosure requirements for offsetting will be limited to derivative instruments, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions. The guidance is effective for financial statements with fiscal years beginning on or after January 1, 2013, and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Trusts’ financial statement disclosures.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Trust’s Board, the independent Trustees (“Independent Trustees”) may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain other BlackRock Closed-End Funds 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 other BlackRock Closed-End Funds.

The deferred compensation plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Trust. Deferred compensation liabilities are included in officer’s and trustees’ 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.

Other: Expenses directly related to a Trust are charged to that Trust. Other operating expenses shared by several funds are pro rated among those funds on the basis of relative net assets or other appropriate methods.

The Trusts have an arrangement with the custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

SEMI-ANNUAL REPORT JANUARY 31, 2013 57
 
  
Notes to Financial Statements (continued)  

2. 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 economically hedge, or protect, their exposure to certain risks such as Interest rate risk. These contracts may be transacted on an exchange.

Losses may arise if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument or if the counterparty does not perform under the contract. The Trusts’ maximum risk of loss from counterparty credit risk on OTC derivatives is generally the aggregate unrealized gain netted against any collateral pledged by/posted to the counterparty. For OTC options purchased, the Trusts bear the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral received on the options should the counterparty fail to perform under the contracts. Counterparty risk related to exchange-traded financial futures contracts and options is deemed to be minimal due to the protection against defaults provided by the exchange on which these contracts trade.

Financial Futures Contracts: The Trusts purchase or sell financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk). Financial futures contracts are agreements between the Trusts and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date. Pursuant to the contract, the Trusts agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Trusts as unrealized appreciation or depreciation. When the contract is closed, the Trusts record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest rates and the underlying assets.

Options: The Trusts purchase and write call and put options to increase or decrease their exposure to underlying instruments (including equity risk, interest rate risk and/or commodity price risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised), the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Trusts purchase (write) an option, an amount equal to the premium paid (received) by the Trusts is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written).When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Trusts enter into a closing transaction), the Trusts realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Trusts write a call option, such option is “covered,” meaning that the Trusts hold the underlying instrument subject to being called by the option counterparty. When the Trusts write a put option, such option is covered by cash in an amount sufficient to cover the obligation.

In purchasing and writing options, the Trusts bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the Trusts may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Trusts purchasing or selling a security at a price different from the current market value.

  

Derivative Financial Instruments Categorized by Risk Exposure:

Fair Values of Derivative Financial Instruments as of January 31, 2013

         Asset Derivatives
   
         BFZ
   
         Statements of Assets
and Liabilites Location

   
Value
Interest rate contracts:
                                        
Financial futures contracts
     
Net unrealized appreciation1
     $ 150,929   
 
        
Liability Derivatives
 
        
BNY
 
     
Statements of Assets
and Liabilites Location
  
Value
Interest rate contracts:
                                        
Financial futures contracts
     
Net unrealized depreciation1
     $ (6,947 )  
1   Includes cumulative appreciation/depreciation on financial futures contracts as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.
58 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Notes to Financial Statements (continued)  
The Effect of Derivative Financial Instruments in the Statements of Operations
Six Months Ended January 31, 2013

        Net Realized Loss From
        BFZ
   
BNY
Interest rate contracts:
                              
Financial futures contracts
     
$133,691
           
Options1
     
      —
     $  (65,302 )  
1   Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation/depreciation on investments.
           Net Change in Unrealized
Appreciation/Depreciation on

         BFZ
   
BNY
Interest rate contracts:
                                        
Financial futures contracts
     
 $  150,629
     $    (6,947 )  

For the six months ended January 31, 2013, the average quarterly balances of outstanding derivative financial instruments were as follows:

           BFZ
   
BNY
Financial futures contracts:
                                        
Average number of contracts sold
     
        75
        13    
Average notional value of contracts sold
     
$9,846,094
     $ 1,865,094   
Options contracts:
                                        
Average number of contracts purchased
     
        1 2  
Average notional value of contracts purchased
     
     $ 206,500 2  
2   Actual contract amounts shown due to limited activity.

3. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. (“PNC”) is the largest stockholder and an affiliate, for 1940 Act purposes of BlackRock, Inc. (“BlackRock”).

Each Trust entered into an Investment Advisory Agreement with BlackRock Advisors, LLC (the “Manager”), the Trusts’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Trust’s portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of each Trust. For such services, each Trust pays the Manager a monthly fee based on a percentage of each Trust’s average weekly net assets except for BTT, which is based on average daily net assets, at the following annual rates:

BFZ
           0.58 %  
BFO
           0.50 %  
BBF
           0.60 %  
BTT
           0.40 %  
BNJ
           0.60 %  
BNY
           0.60 %  

Average weekly net assets and average daily net assets are the average weekly or the average daily value of each Trust’s total assets minus the sum of its accrued liabilities.

The Manager contractually agreed to waive a portion of the investment advisory fee on BFZ at an annual rate of 0.01% through December 31, 2012. For the six months ended January 31, 2013, the Manager waived $35,992, which is included in fees waived by advisor in the Statements of Operations.

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Trust pays to the Manager indirectly through its investment in affiliated money market funds. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Trust’s investment in other affiliated investment companies, if any. These amounts are included in fees waived by Manager in the Statements of Operations. For the six months ended January 31, 2013, the amounts waived were as follows:

BFZ
        $ 4,107   
BFO
        $ 778    
BBF
        $ 479    
BTT
        $ 3,627   
BNJ
        $ 1,705   
BNY
        $ 3,133   

For BFZ, BFO, BBF, BNJ and BNY, the Manager entered into a sub-advisory agreement with BlackRock Financial Management, Inc. (“BFM”), an affiliate of the Manager. For BTT the Manager entered into a sub-advisory agreement with BlackRock Investment Management, LLC (“BIM”), an affiliate of the Manager. The Manager pays BFM and BIM for services it provides, a monthly fee that is a percentage of the investment advisory fees paid by each Trust to the Manager.

Certain officers and/or Trustees of the Trusts are officers and/or directors of BlackRock or its affiliates. The Trusts reimburse the Manager for a portion of the compensation paid to the Trusts’ Chief Compliance Officer.

4. Investments:

Purchases and sales of investments, excluding short-term securities, for the six months ended January 31, 2013 were as follows:

 
 
 
   
Purchases
   
Sales
BFZ
        $ 80,037,548         $ 69,341,189   
BFO
        $ 8,564,823         $ 24,972,681   
BBF
        $ 21,704,055         $ 21,402,607   
BTT
        $ 2,666,352,073         $ 1,508,470   
BNJ
        $ 12,733,958         $ 7,451,195   
BNY
        $ 44,437,036         $ 43,210,853   
SEMI-ANNUAL REPORT JANUARY 31, 2013 59
 
  
Notes to Financial Statements (continued)  

5. Income Tax Information:

As of July 31, 2012, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration dates as follows:

Expires July 31,



   
BFZ
   
BFO
   
BBF
   
BNJ
   
BNY
2014
        $ 1,681,553                                                   
2015
           465,742                     $ 385,737         $ 592,744               
2016
           186,028                        866,417            15,502         $ 505,354   
2017
           3,782,470         $ 394,297                                    2,599,716   
2018
           12,894,572            62,100            6,858,066            1,390,524            1,480,575   
2019
                                   651,464            27,464            1,982,931   
No expiration date1
           3,514,455                                    229,851            406,587   
Total
        $  22,524,820         $     456,397         $     8,761,684         $   2,256,085         $   6,975,163   
1   Must be utilized prior to losses subject to expiration.

As of January 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:




   
BFZ
   
BFO
   
BBF
   
BTT
   
BNJ
   
BNY
 
Tax cost
        $ 600,535,744         $ 108,697,228         $ 121,019,204         $ 2,317,184,567         $ 166,433,297         $ 273,410,477   
Gross unrealized appreciation
        $ 95,349,060         $ 6,986,168         $ 20,436,221         $ 28,243,150         $ 17,552,786         $ 23,285,865   
Gross unrealized depreciation
           (78,436 )           (1,204,015 )           (812,331 )           (14,439,539 )           (1,831,443 )           (1,587,734 )  
Net unrealized appreciation
        $ 95,270,624         $ 5,782,153         $ 19,623,890         $ 13,803,611         $ 15,721,343         $ 21,698,131   

6. Concentration, Market and Credit Risk:

BFZ, BFO, BNJ and BNY invest a substantial amount of their assets in issuers located in a single state or limited number of states. Please see the Schedules of Investments for concentrations in specific states.

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet it obligation.

In the normal course of business, the Trusts invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations (issuer credit risk). The value of securities held by the Trusts may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Trusts; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency and interest rate and price fluctuations. Similar to issuer credit risk, the Trusts may be exposed to counterparty credit risk, or the risk that an entity with which the Trusts have unsettled or open transactions may fail to or be unable to perform on its commitments. The Trusts manage counterparty credit risk by entering into transactions only with counterparties that they believe 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 generally approximated by their value recorded in the Trusts’ Statements of Assets and Liabilities, less any collateral held by the Trusts.

As of January 31, 2013, BFZ invested a significant portion of its assets in securities in the County/City/Special District/School District and Utilities sectors. BFO, BBF and BNY invested a significant portion of their assets in securities in the County/City/Special District/School District sector. BNJ invested a significant portion of its assets in securities in the State and Transportation sectors. BTT invested a significant portion of its assets in securities in the County/City/Special District/School District and Transportation sectors. Changes in economic conditions affecting the County/City/Special District/School District, State, Utilities and Transportation sectors would have a greater impact on the Trusts and could affect the value, income and/or liquidity of positions in such securities.

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.

7. Capital Share Transactions:

Each Trust is authorized to issue an unlimited number of shares, all of which were initially classified as Common Shares. The par value for each Trust’s Common Shares is $0.001. Each Trust’s Board is authorized, however, to reclassify any unissued shares without approval of Common Shareholders. At January 31, 2013, Common Shares of BTT owned by affiliates of the Manager were 5,571 shares.

Upon commencement of operations, organization costs associated with the establishment of the BTT were expensed by BTT. Offering costs incurred in connection with BTT’s offering of Common Shares have been charged against the proceeds from the initial Common Share offering in the amount of $2,612,000.

60 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Notes to Financial Statements (continued)  

Common Shares

For the periods shown, shares issued and outstanding increased by the following amounts as a result of dividend reinvestment:




   
Six Months
Ended
January 31, 2013

   
Year Ended
July 31, 2012

BFZ
           26,524            10,886   
BBF
           3,273            4,149   
BNJ
           10,564            19,942   
BNY
           20,862            48,391   

Shares issued and outstanding remained constant for BFO for the six months ended January 31, 2013 and for the year ended July 31, 2012. For BTT shares issued and outstanding for the period August 30, 2012 to January 31, 2013, increased by 62,000,000 from the initial public offering and 8,500,000 from the underwriters’ exercising the over-allotment option.

Preferred Shares

The Trusts’ Preferred Shares rank prior to the Trusts’ Common Shares as to the payment of dividends by the Trusts and distribution of assets upon dissolution or liquidation of the Trusts. The 1940 Act prohibits the declaration of any dividend on the Trusts’ Common Shares or the repurchase of the Trusts’ Common Shares if the Trusts fail to maintain the asset coverage of at least 200% of the liquidation preference of the outstanding Preferred Shares. In addition, pursuant to the Preferred Shares’ governing instruments, the Trusts are restricted from declaring and paying dividends on classes of shares ranking junior to or on parity with the Preferred Shares or repurchasing such shares if the Trusts fail 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 rating agencies then rating the Preferred Shares.

The holders of Preferred Shares have voting rights equal to the holders of Common Shares (one vote per share) and will vote together with holders of Common Shares (one vote per share) as a single class. However, the holders of Preferred Shares, voting as a separate class, are also entitled to elect two Trustees for each Trust. In addition, the 1940 Act requires that along with approval by shareholders that might otherwise be required, the approval of the holders of a majority of any outstanding Preferred Shares, voting separately as a class would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Shares, (b) change a Trust’s sub-classification as a closed-end investment company or change its fundamental investment restrictions or (c) change its business so as to cease to be an investment company.

VRDP Shares

BBF has issued Series W-7 VRDP Shares, $100,000 liquidation value per share, in a privately negotiated offering. The VRDP Shares were offered to qualified institutional buyers as defined pursuant to Rule 144A under the Securities Act of 1933, as amended, (the “Securities Act”) and include a liquidity feature, pursuant to a liquidity agreement, that allows the holders of VRDP Shares to have their shares purchased by the liquidity provider in the event of a failed remarketing. BBF is required to redeem the VRDP Shares owned by the liquidity provider after six months of continuous, unsuccessful remarketing. Upon the occurrence of the first unsuccessful remarketing, BBF is required to segregate liquid assets to fund the redemption. The VRDP Shares are subject to certain restrictions on transfer.

The VRDP Shares outstanding as of the six months ended January 31, 2013 were as follows:




   
Issue
Date

   
Shares
Issued

   
Aggregate
Principal

   
Maturity
Date

BBF
           9/15/11            342          $ 34,200,000            10/01/41   

BBF has entered into a fee agreement with the liquidity provider that required a per annum liquidity fee to be paid to the liquidity provider. These fees are shown as liquidity fees in the Statements of Operations.

The initial fee agreement between BBF and the liquidity provider was for a 364 day term and was scheduled to expire on September 15, 2012 and subsequently extended until March 15, 2013, unless renewed or terminated in advance. On November 29, 2012, BBF entered into a new fee agreement with an alternate liquidity provider. The new fee agreement is for a 2 year term and is scheduled to expire on December 4, 2014, unless renewed or terminated in advance. The change in liquidity provider resulted in a mandatory tender of BBF’s VRDP Shares on November 28, 2012 which were successfully remarketed by the remarketing agent.

In the event the fee agreement is terminated in advance, and BBF does not enter into a fee agreement with an alternate liquidity provider, the VRDP Shares will be subject to mandatory purchase by the liquidity provider prior to the termination of the fee agreement. BBF is required to redeem any VRDP Shares purchased by the liquidity provider six months after the purchase date. Immediately after the purchase of any VRDP Shares by the liquidity provider, BBF is required to begin to segregate liquid assets with BBF’s custodian to fund the redemption. There is no assurance BBF will replace such redeemed VRDP Shares with any other preferred shares or other form of leverage.

BBF is required to redeem its VRDP Shares on the maturity date, unless earlier redeemed or repurchased. Six months prior to the maturity date, BBF is required to begin to segregate liquid assets with the BBF’s custodian to fund the redemption. In addition, BBF is required to redeem certain of its outstanding VRDP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, VRDP Shares may be redeemed, in whole or in part, at any time at the option of BBF. The redemption price per VRDP Share is equal to the liquidation value per share plus any outstanding unpaid dividends. In the event of an optional redemption of VRDP Shares prior to the initial termination date of the fee agreement, BBF must pay the liquidity provider fees on such redeemed VRDP Shares for the remaining term of the fee agreement up to the initial termination date.

Dividends on the VRDP Shares are payable monthly at a variable rate set weekly by the remarketing agent. Such dividend rates are generally based upon a spread over a base rate and cannot exceed a maximum rate. In the event of a failed remarketing, the dividend rate of the VRDP Shares will be reset to a maximum rate. The maximum rate is determined based on,

SEMI-ANNUAL REPORT JANUARY 31, 2013 61
 
  
Notes to Financial Statements (continued)  


among other things, the long-term preferred share rating assigned to the VRDP Shares and the length of time that the VRDP Shares fail to be remarketed. At the date of issuance, the VRDP Shares were assigned a long-term rating of Aaa from Moody’s and AAA from Fitch. In May 2012, Moody’s completed the review of its methodology for rating securities issued by registered closed-end funds. As of January 31, 2013, the VRDP Shares were assigned a long-term rating of Aa1 from Moody’s under its new ratings methodology. The VRDP Shares continue to be assigned a long-term rating of AAA from Fitch.

The short-term ratings on the VRDP Shares are directly related to the short-term ratings of the liquidity provider for such VRDP Shares. Changes in the credit quality of the liquidity provider could cause a change in the short-term credit ratings of the VRDP Shares as rated by Moody’s, Fitch and S&P. A change in the short-term credit rating of the liquidity provider or the VRDP Shares may adversely affect the dividend rate paid on such shares, although the dividend rate paid on the VRDP Shares is not directly related based upon either short-term rating. As of January 31, 2013, the short-term ratings of the liquidity provider and the VRDP Shares for BBF were P-2, F1 and A1 as rated by Moody’s, Fitch and/or S&P, respectively, which is within the two highest rating categories. The liquidity provider may be terminated prior to the scheduled termination date if the liquidity provider fails to maintain short-term debt ratings in one of the two highest rating categories.

For financial reporting purposes, VRDP Shares are considered debt of the issuer; therefore, the liquidation value, which approximates fair value, of VRDP Shares is recorded as a liability in the Statements of Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends accrued and paid on the VRDP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. VRDP Shares are treated as equity for tax purposes. Dividends paid to holders of VRDP Shares are generally classified as tax-exempt income for tax-reporting purposes.

BBF may incur remarketing fees of 0.10% on the aggregate principal amount of all VRDP Shares, which, if any, are included in remarketing fees on Preferred Shares in the Statements of Operations. All of the BBF’s VRDP Shares have successfully remarketed since issuance, with an annualized dividend rate of 0.16% for the six months ended January 31, 2013.

VRDP Shares issued and outstanding for BBF remained constant for the six months ended January 31, 2013.

VMTP Shares

BFZ, BNJ and BNY (collectively, the “VMTP Funds”) have issued Series W-7 VMTP Shares, $100,000 liquidation value per share, in a privately negotiated offering and sale of VMTP Shares exempt from registration under the Securities Act.

The VMTP Shares outstanding as of the six months ended January 31, 2013 were as follows:




   
Issue
Date

   
Shares
Issued

   
Aggregate
Principal

   
Term
Date

BFZ
           3/22/12            1,713         $ 171,300,000            4/01/15   
BNJ
           3/22/12            591          $ 59,100,000            4/01/15   
BNY
           3/22/12            945          $ 94,500,000            4/01/15   

The VMTP Funds are required to redeem their VMTP Shares on the term date, unless earlier redeemed or repurchased or unless extended. There is no assurance that the term of the Trusts’ VMTP Shares will be extended or that the Trusts’ 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 term date, the VMTP Funds are required to begin to segregate liquid assets with the Trusts’ custodian to fund the redemption. In addition, the Trusts are required to redeem certain of its outstanding VMTP Shares if it fails to maintain certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, the Trusts’ VMTP Shares may be redeemed, in whole or in part, at any time at the option of the Trusts. The redemption price per VMTP Share is equal to the liquidation value per share plus any outstanding unpaid dividends and applicable redemption premium. If the Trusts redeem the VMTP Shares on a date that is one year or more prior to the term date and the VMTP Shares are rated above A1/A+ by Moody’s and Fitch, respectively, then such redemption is subject to a prescribed redemption premium based on the time remaining to the term date, subject to certain exceptions for redemptions that are required to maintain minimum asset coverage requirements. The VMTP Shares are subject to certain restrictions on transfer, and the Trusts may also be required to register the VMTP Shares for sale under the Securities Act under certain circumstances. In addition, amendments to the VMTP governing document generally require the consent of the holders of VMTP Shares.

Dividends on the VMTP Shares are payable monthly at a variable rate set weekly at a fixed rate spread to the SIFMA Municipal Swap Index. The fixed spread is determined based on the long-term preferred share rating assigned to the VMTP Shares by Moody’s and Fitch. At the date of issuance, the VMTP Shares were assigned long-term ratings of Aaa from Moody’s and AAA from Fitch. In May 2012, Moody’s completed the review of its methodology for rating securities issued by registered closed-end funds. As of January 31, 2013, the VMTP Shares were assigned a long-term rating of Aa2 from Moody’s under its new rating methodology. The VMTP Shares continue to be assigned a long-term rating of AAA from Fitch. The dividend rate on the VMTP Shares is subject to a step-up spread if the Trusts fail to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and maintaining certain asset coverage and leverage requirements.

The average annualized dividend rates of the VMTP Shares for the six months ended January 31, 2013 were as follows:




   
Rate
BFZ
           1.15 %  
BNJ
           1.15 %  
BNY
           1.15 %  
62 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Notes to Financial Statements (continued)  

For financial reporting purposes, VMTP Shares are considered debt of the issuer; therefore the liquidation value, which approximates fair value, of VMTP Shares is recorded as a liability in the Statements of Assets and Liabilities. Unpaid dividends are included in interest expense and fees payable in the Statements of Assets and Liabilities, and the dividends paid on the VMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. VMTP Shares are treated as equity for tax purposes. Dividends paid to holders of VMTP Shares are generally classified as tax-exempt income for tax-reporting purposes.

VMTP Shares issued and outstanding for BFZ, BNJ and BNY remained constant for the six months ended January 31, 2013.

RVMTP Shares

BTT has offered for issuance Series W-7 RVMTP Shares, $5,000,000 liquidation value per share, in a privately negotiated offering and sale of RVMTP Shares exempt from registration under the Securities Act. BTT has entered into an agreement with a qualified institutional buyer (the “Purchaser”) to sell up to $750,000,000 in Series W-7 RVMTP Shares to the Purchaser, and in connection with such agreement, BTT has sold $500,000,000 in RVMTP to the Purchaser as of January 31, 2013. As of January 31, 2013, the Purchaser was obligated to purchase an additional $250,000,000 in Series W-7 RVMTP Shares, upon request of BTT, subject to certain conditions being satisfied. The Purchaser’s obligation to purchase the additional $250,000,000 in Series W-7 RVMTP Shares expires on March 31, 2013.

The RVMTP Shares outstanding as of January 31, 2013 were as follows:




   
Issue
Date

   
Shares
Issued

   
Aggregate
Principal

   
Term
Date

BTT
           1/10/2013           50          $ 250,000,000            12/31/30   
 
           1/30/2013           50          $ 250,000,000            12/31/30   

BTT is required to redeem its RVMTP Shares on the term date or within six months of an unsuccessful remarketing, unless earlier redeemed or repurchased. There is no assurance that BTT’s 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 maintain certain asset coverage, basic maintenance amount or leverage requirements.

Subject to certain conditions, BTT’s 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 value 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. Amendments to the RVMTP Shares governing document generally require the consent of the holders of RVMTP Shares.

Dividends on the RVMTP Shares are declared daily and payable monthly at a variable rate set weekly at a fixed rate spread to the Securities Industry and Financial Markets Association Municipal Swap Index (SIFMA). The initial fixed rate spread was agreed upon by the Purchaser and BTT on the initial date of issuance for the Series W-7 RVMTP Shares. The initial fixed rate spread may be adjusted at each remarketing or upon the agreement between BTT and all of the holders of the RVMTP Shares. In the event all of the RVMTP Shares submitted for remarketing are not successfully remarketed, a failed remarketing will 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 being 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%. 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 6 months from the remarketing date for such failed remarketing, provided that no redemption of any RVMTP Share may occur within 1 year of the date of issuance of such RVMTP Share. At the date of issuance, the RVMTP Shares were assigned long-term ratings of Aaa from Moody’s and AAA from Fitch. The dividend rate on the RVMTP Shares is subject to a step-up spread if the Fund fails to comply with certain provisions, including, among other things, the timely payment of dividends, redemptions or gross-up payments, and maintaining certain asset coverage and leverage requirements.

There were no RVMTP Shares that were tendered for remarketing during the period ended January 31, 2013.

The average annualized dividend rate for the BTT’s RVMTP Shares for the period ended January 31, 2013 was 0.74%.

For financial reporting purposes, the RVMTP Shares are considered debt of the issuer; therefore the liquidation value, which approximates fair value, of the RVMTP Shares is recorded as a liability in the Statements of Assets and Liabilities. 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 RVMTP Shares are included as a component of interest expense, fees and amortization of offering costs in the Statements of Operations. The RVMTP Shares are treated as equity for tax purposes. Dividends paid to holders of the RVMTP Shares are generally classified as tax-exempt income for tax-reporting purposes.

Offering Costs: The Income Trusts incurred costs in connection with the issuance of VRDP Shares, VMTP Shares and/or RVMTP Shares. For VRDP Shares, these costs were recorded as a deferred charge and will be

SEMI-ANNUAL REPORT JANUARY 31, 2013 63
 
  
Notes to Financial Statements (continued)  


amortized over the 30-year life of the VRDP Shares with the exception of upfront fees paid to the liquidity provider, which were amortized over the life of the liquidity agreement. For VMTP Shares, these costs were recorded as a deferred charge and will be amortized over the 3-year life of the VMTP Shares. For RVMTP Shares, these costs were recorded as a deferred charge and will be amortized over the 18-year life of the RVMTP Shares. Amortization of these costs is included in interest expense, fees and amortization of offering costs in the Statements of Operations.

AMPS

The AMPS are redeemable at the option of BFO, in whole or in part, on any dividend payment date at their liquidation preference per share plus any accumulated and unpaid dividends whether or not declared. The AMPS are also subject to mandatory redemption at their liquidation preference plus any accumulated and unpaid dividends, whether or not declared, if certain requirements relating to the composition of the assets and liabilities of BFO, as set forth in BFO’s Statement of Preferences (the “Governing Instrument”) are not satisfied.

From time to time in the future, BFO may effect repurchases of its AMPS at prices below their liquidation preference as agreed upon by BFO and seller. BFO also may redeem its AMPS from time to time as provided in the applicable Governing Instrument. BFO intends to effect such redemptions and/or repurchases to the extent necessary to maintain applicable asset coverage requirements or for such other reasons as the Board may determine.

The BFO had the following series of AMPS outstanding, effective yields and reset frequency as of January 31, 2013:




   
Series
   
Preferred
Shares

   
Effective
Yield

   
Reset
Frequency
Days

BFO
          F-7           1,044          0.16%           7    

Dividends on seven-day AMPS are cumulative at a rate which is reset every seven days based on the results of an auction. If the AMPS fail to clear the auction on an auction date, BFO is required to pay the maximum applicable rate on the AMPS to holders of such shares for successive dividend periods until such time as the shares are successfully auctioned. The maximum applicable rate on all series of AMPS prior to November 1, 2012 was the higher of 110% of the AA commercial paper rate or 100% of 90% of the Kenny S&P 30-day High Grade Index rate divided by 1.00 minus the marginal tax rate. The Kenny S&P 30-day High Grade Index was discontinued as of November 1, 2012. For purposes of calculating the maximum applicable rate, the Kenny S&P 30-day High Grade Index was replaced with the S&P Municipal Bond 7 Day High Grade Rate Index as of November 1, 2012. The low, high and average dividend rates on the AMPS for BFO for the six months ended January 31, 2013 were as follows:




   
Series
   
Low
   
High
   
Average
BFO
          F-7           0.14%          0.32%          0.24 %  

Since February 13, 2008, the AMPS of BFO failed to clear any of their auctions. As a result, the AMPS dividend rates were reset to the maximum applicable rate, which ranged from 0.14% to 0.32% for the six months ended January 31, 2013. A failed auction is not an event of default for BFO but it has a negative impact on the liquidity of AMPS. A failed auction occurs when there are more sellers of BFO’s AMPS than buyers. A successful auction for BFO’s AMPS may not occur for some time, if ever, and even if liquidity does resume, holders of AMPS may not have the ability to sell the AMPS at their liquidation preference.

BFO pays commissions of 0.15% on the aggregate principal amount of all shares that fail to clear their auctions and 0.25% on the aggregate principal amount of all shares that successfully clear their auctions. Certain broker dealers have individually agreed to reduce commissions for failed auctions. The commissions paid to these broker dealers are included in remarketing fees on Preferred Shares in the Statements of Operations.

AMPS issued and outstanding for BFO remained constant for the year ended July 31, 2012.

During the six months ended January 31, 2013, BFO announced the following redemptions of AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:




   
Series
   
Redemption
Date

   
Shares
Redeemed

   
Aggregate
Principal

BFO
           F-7           1/22/13           132          $ 3,300,000   
 
           F-7           1/28/13           540          $ 13,500,000   

During the year ended July 31, 2012, certain Trusts announced the following redemptions of AMPS at a price of $25,000 per share plus any accrued and unpaid dividends through the redemption date:




   
Series
   
Redemption
Date

   
Shares
Redeemed

   
Aggregate
Principal

BFZ
           T-7             4/18/12          2,351         $ 58,775,000   
 
           R-7             4/13/12          2,351         $ 58,775,000   
 
           F-7             4/16/12          2,151         $ 58,775,000   
BBF
           T-7           10/12/11          1,370         $ 34,250,000   
BNJ
           R-7             4/13/12          2,364         $ 59,100,000   
BNY
           W-7             4/12/12          1,890         $ 47,250,000   
 
           F-7             4/16/12          1,890         $ 47,250,000   

BBF financed the AMPS redemptions with proceeds received from the issuance of VRDP Shares of $34,200,000.

BFZ, BNJ and BNY financed the AMPS redemptions with proceeds received from the issuance of VMTP Shares as follows:

BFZ
        $ 171,300,000   
BNJ
        $ 59,100,000   
BNY
        $ 94,500,000   

8. 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:

On February 20, 2013, BTT issued the final 50 Series W-7 RVMTP Shares with a $5,000,000 liquidation value per share, aggregate liquidation value of $250,000,000 and a maturity date of December 31, 2030, in a privately negotiated offering and sale of RVMTP Shares exempt from registration under the Securities Act.

64 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Notes to Financial Statements (concluded)  

Each Trust paid a net investment income dividend on March 1, 2013 to Common Shareholders of record on February 15, 2013:




   
Common
Dividend
Per Share

BFZ
        $ 0.077700   
BFO
        $ 0.056000   
BBF
        $ 0.072375   
BTT
        $ 0.099000   
BNJ
        $ 0.081100   
BNY
        $ 0.075000   

The dividends declared on Preferred Shares for the period February 1, 2013, to February 28, 2013 were as follows:




   
Series
   
Dividends
Declared

BFZ VMTP Shares
           W-7          $ 144,924   
BFO AMPS
           F-7          $ 3,268   
BBF VRDP Shares
           W-7          $ 5,322   
BNJ VMTP Shares
           W-7          $ 50,000   
BNY VMTP Shares
           W-7          $ 79,950   

Additionally, the Trusts declared a net investment income dividend on March 1, 2013 payable to Common Shareholders of record on March 15, 2013:




   
Common
Dividend
Per Share

BFZ
        $ 0.077700   
BFO
        $ 0.056000   
BBF
        $ 0.072375   
BTT
        $ 0.099000   
BNJ
        $ 0.075100   
BNY
        $ 0.069000   
SEMI-ANNUAL REPORT JANUARY 31, 2013 65
 
  
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement  

The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Municipal Target Term Trust (the “Trust”) met on July 11, 2012 and July 27, 2012 to consider the approval of the Trust’s investment advisory agreement (the “Advisory Agreement”) with BlackRock Advisors, LLC (the “Manager”), the Trust’s investment advisor. The Board also considered the approval of the sub-advisory agreement (the “Sub-Advisory Agreement”) among the Manager, BlackRock Investment Management, LLC (the “Sub-Advisor”), and the Trust. The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreement and the Sub-Advisory Agreement are referred to herein as the “Agreements.”

Activities and Composition of the Board

At the time the Board considered the Agreements on July 11, 2012, the Board consisted of three individuals, two of whom were not “interested persons” of the Trust as defined in the Investment Company Act of 1940 (the “1940 Act”) (the “Independent Board Members”). At the time the Board considered the Agreements on July 27, 2012, the Board consisted of eleven individuals, six of whom were Independent Board Members, and an additional three of whom would be Independent Board Members after the completion of the Trust’s initial public offering. The Board Members are responsible for the oversight of the operations of the Trust and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chairman of the Board is an Independent Board Member. The Board has established six standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee, an Executive Committee and a Leverage Committee, each of which is currently chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee and the Leverage Committee, each of which also has one interested Board Member).

The Agreements

Pursuant to the 1940 Act, the Board is required to consider the initial approval of the Agreements. In connection with this process, the Board assessed, among other things, the nature, scope and quality of the services to be provided to the Trust by BlackRock, BlackRock’s personnel and its affiliates, including investment management, administrative and shareholder services, oversight of fund accounting and custody, marketing services, risk oversight, compliance and assistance in meeting applicable legal and regulatory requirements.

Board Considerations in Approving the Agreements

The Approval Process: Prior to the July 11, 2012 and July 27, 2012 meetings, the Board received materials specifically relating to the Agreements. The materials provided in connection with the July 11, 2012 meeting, and referred to in connection with the July 27, 2012 meeting, included information regarding (i) the investment objectives and policies of the Trust; (ii) the team of investment advisory personnel assigned to the Trust; (iii) the Trust’s management fee and estimated total operating expenses as compared with a peer group of funds as determined by Lipper, Inc. (“Lipper”); and (iv) certain anticipated direct and indirect “fallout” benefits to BlackRock from its relationship with the Trust. Periodically, the Board Members, in connection with their duties as trustees or directors of other funds in the BlackRock family of closed-end funds, have received other information including general information regarding BlackRock’s management of such funds, BlackRock’s management of relationships with service providers to such funds, resources devoted to compliance with such funds’ investment objectives and policies, the structure and expertise of BlackRock and BlackRock’s parent companies, BlackRock’s policies and procedures in respect of execution of portfolio transactions and other matters.

At in person meetings held on July 11, 2012 and July 27, 2012, the Board, including the Independent Board Members, reviewed materials relating to its consideration of the Agreements and unanimously approved the Advisory Agreement between the Manager and the Trust, and the Sub-Advisory Agreement among the Manager, the Sub-Advisor, and the Trust. In approving the Agreements, the Board considered, among other factors: (a) the nature, extent and quality of the services to be provided by BlackRock; (b) the investment performance of BlackRock portfolio management in general; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and its affiliates from their relationship with the Trust; (d) economies of scale; (e) fall-out benefits to BlackRock as a result of its relationship with the Trust; and (f) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as payments made to BlackRock or its affiliates relating to securities lending, services related to the valuation and pricing of Trust portfolio holdings, direct and indirect benefits to BlackRock and its affiliates from their relationship with the Trust and advice from independent legal counsel with respect to the review process and materials submitted for the Board’s review. The Board noted the willingness of BlackRock personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as controlling, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock: The Board, including the Independent Board Members, reviewed the nature, extent and quality of services to be provided by BlackRock to the Trust. The Board met with BlackRock’s senior management personnel responsible for investment operations, including the senior investment officers. The Board also reviewed the materials provided by the Trust’s portfolio management team discussing the Trust’s investment objective, strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and the Trust’s portfolio management team; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board engaged in a review of BlackRock’s compensation structure with respect to the Trust’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent.

66 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (continued)  

In addition to advisory services, the Board considered the quality of the administrative and non-investment advisory services to be provided to the Trust. BlackRock and its affiliates will provide the Trust with certain services (in addition to any such services provided to the Trust by third parties) and officers and other personnel as are necessary for the operations of the Trust. In particular, BlackRock and its affiliates will provide the Trust with the following administrative services including, among others: (i) preparing disclosure documents, such as the prospectus and the statement of additional information in connection with the initial public offering and periodic shareholder reports; (ii) preparing communications with analysts to support secondary market trading of the Trust; (iii) assisting with daily accounting and pricing; (iv) preparing periodic filings with regulators and stock exchanges; (v) overseeing and coordinating the activities of other service providers; (vi) organizing Board meetings and preparing the materials for such Board meetings; (vii) providing legal and compliance support; and (viii) performing other administrative functions necessary for the operation of the Trust, such as tax reporting, fulfilling regulatory filing requirements and call center services. The Board reviewed the structure and duties of BlackRock’s fund administration, accounting, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of the Trust and BlackRock: In their capacity as members of the boards of directors or trustees of certain other BlackRock-advised funds, the Board Members, including the Independent Board Members, previously received and considered information about BlackRock’s investment performance for other BlackRock-advised funds. The Board, however, could not consider the performance history of the Trust because the Trust was newly organized and had not yet commenced operations as of the July 11, 2012 or July 27, 2012 meetings.

C. Consideration of the Advisory/Management Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with the Trust: The Board, including the Independent Board Members, reviewed the Trust’s contractual management fee rate compared with the other funds in its Lipper category. It also compared the Trust’s total expenses to those of other comparable funds. The funds within the peer group were selected by Lipper, which is not affiliated with BlackRock.

The Board, including the Independent Board Members, reviewed six sub-categories of fees and expenses for the Trust compared with the other funds in its Lipper peer group: (i) contractual management fees; (ii) total expenses, including investment-related expenses and taxes; (iii) total expenses, excluding investment-related expenses and taxes; (iv) management fees (common and leveraged); (v) management fees (common) and (vi) non-management expenses.

The Board noted that, relative to the other funds in its Lipper peer group, the Trust was in the first quartile and below the median in each of the sub-categories, with the exception of total expenses including investment-related expenses and taxes, where the Trust was above the median by approximate 0.17%, and non-management expenses, where the Trust was equal to the median. The Board recognized that the Trust’s relatively less favorable comparison in the total expenses including investment-related expenses and taxes sub-category was largely due to distortions in the amount of investment-related expenses caused by the differences in the level and type of leverage utilized by the funds in the Trust’s Lipper peer group, as opposed to that proposed for the Trust. The Board noted that the Trust assumed a 40% of managed assets leverage level and intended at the time to utilize only tender option bond trusts (“TOBs”) for leverage; whereas other funds in the Trust’s Lipper peer group had a median leverage level of 35% of managed assets and generally utilized auction market preferred shares (“AMPS”) and/or TOBs for leverage. The Board recognized that accounting rules required the Trust and Lipper to reflect the interest expense paid through a TOB trust as an expense of the Trust for purposes of this analysis and the Trust’s financial statements, but did not require funds using a comparable amount of AMPS leverage to do the same for preferred stock dividends.

The Board noted that the Trust ranks in the first quartile (and second lowest) once investment-related expenses and taxes are removed from the analysis, and that the Trust’s contractual management fee was the second lowest in its Lipper peer group and that it was the same as or lower that of other target term trusts the Manager has sponsored in the past.

The Board also considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board.

As the Trust had not yet commenced operations, BlackRock was not able to provide the Board with specific information concerning the expected profits to be realized by BlackRock and its affiliates from their relationships with the Trust. BlackRock, however, noted that it will provide the Board with such information at future meetings.

Following consideration of this information, the Board, including the Independent Board Members, concluded that the fees to be paid pursuant to the Agreements were fair and reasonable in light of the services to be provided.

D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of the Trust increase. The Board also considered the extent to which the Trust may benefit from such economies and whether there should be changes in the advisory fee rate or structure in order to enable the Trust to participate in these economies of scale, for example through the use of breakpoints in the advisory fee based upon the asset level of the Trust.

Based on the Board’s review and consideration of the issue, the Board concluded that most closed-end fund complexes do not have fund level breakpoints because closed-end funds generally do not experience substantial growth after the initial public offering. They are typically priced at scale at a fund’s inception. The Board noted that only one closed-end fund in the Fund Complex has breakpoints in its advisory fee structure.

SEMI-ANNUAL REPORT JANUARY 31, 2013 67
 
  
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (concluded)

E. Other Factors Deemed Relevant by the Board Members: The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from their respective relationships with the Trust, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Trust, including securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts. The Board further noted that BlackRock funds may invest in affiliated exchange-traded funds without any offset against the management fees payable by the funds to BlackRock.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices for BlackRock closed-end funds throughout the year.

The Board noted the competitive nature of the closed-end fund marketplace, and that shareholders are able to sell their Trust shares in the secondary market if they believe that the Trust’s fees and expenses are too high or if they are dissatisfied with the performance of the Trust.

The Board, including all of the Independent Board Members, concluded that these ancillary benefits that BlackRock and its affiliates could receive with regard to providing investment advisory and other services to the Trust were consistent with those generally available to other fund sponsors.

Conclusion

The Board, including all the Independent Board Members, unanimously approved the Advisory Agreement between the Manager and the Trust and the Sub-Advisory Agreement among the Manager, the Sub-Advisor, and the Trust. Based upon its evaluation of all of the aforementioned factors in their totality, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of the Trust and its shareholders. In arriving at its decision to approve the Agreements, the Board, including the Independent Board Members, did not identify any single factor or group of factors as all-important or controlling, but considered all factors collectively in light of all the Trust’s surrounding circumstances, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

68 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Officers and Trustees 

Richard E. Cavanagh, Chairman of the Board and Trustee
Karen P. Robards, Vice Chairperson of the Board,
      Chairperson of the Audit Committee and Trustee
Paul L. Audet, Trustee
Michael J. Castellano, Trustee and Member of the Audit
      Committee
Frank J. Fabozzi, Trustee and Member of the Audit
      Committee
Kathleen F. Feldstein, Trustee
James T. Flynn, Trustee and Member of the Audit Committee
Henry Gabbay, Trustee
Jerrold B. Harris, Trustee
R. Glenn Hubbard, Trustee
W. Carl Kester, Trustee and Member of the Audit Committee
John M. Perlowski, President and Chief Executive Officer
Anne Ackerley, Vice President
Brendan Kyne, Vice President
Robert W. Crothers, Vice President
Neal Andrews, Chief Financial Officer
Jay Fife, Treasurer
Brian Kindelan, Chief Compliance Officer and Anti-Money
     Laundering Officer
Janey Ahn, Secretary


Investment Advisor
BlackRock Advisors, LLC
Wilmington, DE 19809

Sub-Advisors
BlackRock Financial Management, Inc.1
New York, NY 10055

BlackRock Investment Management, LLC2
Princeton, NJ 08540

Custodian
State Street Bank and Trust Company
Boston, MA 02110

Transfer Agent
Common Shares:
Computershare Trust Company, N.A.
Canton, MA 02021

AMPS Auction Agent
The Bank of New York Mellon
New York, NY 10289

VRDP Tender and Paying Agent,
RVMTP Tender and Paying Agent and
VMTP Redemption and Paying Agent

The Bank of New York Mellon
New York, NY 10289

VRDP Liquidity Provider
Barclays Bank PLC
New York, NY 10019

VRDP Remarketing Agent
Barclays Capital, Inc.
New York, NY 10019

Accounting Agent
State Street Bank and Trust Company
Boston, MA 02110

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Boston, MA 02116

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom LLP
New York, NY 10036

Address of the Trusts
100 Bellevue Parkway
Wilmington, DE 19809

1   For all Trusts except BTT.
2   For BTT.

SEMI-ANNUAL REPORT JANUARY 31, 2013 69
 
  
Additional Information 

Regulation Regarding Derivatives

Effective December 31, 2012, the Commodity Futures Trading Commission (“CFTC”) adopted certain regulatory changes that subject registered investment companies and advisers to registered investment companies to regulation by the CFTC if a fund invests more than a prescribed level of its net assets in CFTC-regulated futures, options and swaps (“CFTC Derivatives”), or if a fund markets itself as providing investment exposure to such instruments. To the extent a Trust uses CFTC-regulated futures, options and swaps, it intends to do so below such prescribed levels and will not market itself as a “commodity pool” or a vehicle for trading such instruments. Accordingly, BlackRock Advisors, LLC has claimed an exclusion from the definition of the term “commodity pool operator” under the Commodity Exchange Act (“CEA”) pursuant to Rule 4.5 under the CEA. BlackRock Advisors, LLC is not, therefore, subject to registration or regulation as a “commodity pool operator” under the CEA in respect of a Trust.

Dividend Policy

Each Trust’s dividend policy is to distribute all or a portion of its net investment income to its shareholders on a monthly basis. In order to provide shareholders with a more stable level of dividend distributions, the Trusts may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any particular month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Trusts for any particular month may be more or less than the amount of net investment income earned by the Trusts during such month. The Trusts’ current accumulated but undistributed net investment income, if any, is disclosed in the Statements of Assets and Liabilities, which comprises part of the financial information included in this report.

70 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Additional Information (continued) 

General Information

On July 29, 2010, the Manager announced that a shareholder derivative complaint was filed on July 27, 2010 in the Supreme Court of the State of New York, New York County with respect to BFZ and BNJ, which had previously received a demand letter from a law firm on behalf of each trust’s common shareholders. The complaint was filed against the Manager, BlackRock, BFZ, BNJ and certain of the directors, officers and portfolio managers (collectively, the “BlackRock Parties”) in connection with the redemption of auction-market preferred shares, auction rate preferred shares, auction preferred shares and auction rate securities (collectively, “AMPS”). The complaint alleged, among other things, that the BlackRock Parties breached their fiduciary duties to the common shareholders of BFZ and BNJ (the “Shareholders”) by redeeming AMPS at their liquidation preference and alleges that such redemptions caused losses to the Shareholders. On April 16, 2012, the plaintiffs amended their complaint and filed a consolidated shareholder derivative complaint which contains similar substantive allegations to the original complaint but which does not include BNJ as a nominal defendant. Thus, BNJ is no longer a nominal defendant in the derivative complaint. The plaintiffs are seeking monetary damages for the alleged losses suffered and to enjoin BFZ from future redemptions of AMPS at their liquidation preference. On July 20, 2012, the BlackRock Parties filed a motion to dismiss the Complaint (the “Dismissal Motion”). Plaintiffs, on September 14, 2012, moved to hold the defendant’s motion to dismiss in abeyance and allow plaintiffs limited discovery of the Demand Review Committee of the Board of Trustees, including depositions of its members and documents upon which they relied. Argument on that motion occurred on March 14, 2013 and no decision has yet been rendered. The BlackRock Parties believe that the claims asserted in the complaint are without merit and intend to vigorously defend themselves in the litigation.

The Trusts do not make available copies of their Statements of Additional Information because the Trusts’ shares are not continuously offered, which means that the Statement of Additional Information of each Trust has not been updated after completion of the respective Trust’s offerings and the information contained in each Trust’s Statement of Additional Information may have become outdated.

During the period, there were no material changes in the Trusts’ investment objectives or policies or to the Trusts’ charters or by-laws that would delay or prevent a change of control of the Trusts that were not approved by the shareholders or in the principal risk factors associated with investment in the Trusts. There have been no changes in the persons who are primarily responsible for the day-to-day management of the Trusts’ portfolios.

SEMI-ANNUAL REPORT JANUARY 31, 2013 71
 
  
Additional Information (continued) 

General Information (concluded)

Quarterly performance, semi-annual and annual reports and other information regarding the Trusts may be found on BlackRock’s website, which can be accessed at http://www.blackrock.com. This reference to BlackRock’s 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.

Electronic Delivery

Electronic copies of most financial reports are available on the Trusts’ websites or shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual reports by enrolling in the Trusts’ electronic delivery program.

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor to enroll. Please note that not all investment advisors, banks or brokerages may offer this service.

Householding

The Trusts will mail only one copy of shareholder documents, including annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Trusts at (800) 882-0052.

Availability of Quarterly Schedule of Investments

The Trusts file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Trusts’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Trusts’ Forms N-Q may also be obtained upon request and without charge by calling (800) 882-0052.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Trusts use to determine how to vote proxies relating to portfolio securities is available (1) without charge, upon request, by calling (800) 882-0052; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Trusts voted proxies relating to securities held in the Trusts’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 882-0052 and (2) on the SEC’s website at http://www.sec.gov.

Availability of Trust Updates

BlackRock will update performance and certain other data for the Trusts on a monthly basis on its website in the “Closed-end Funds” section of http://www.blackrock.com as well as certain other information as necessary from time to time. Investors and others are advised to periodically 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.

72 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  
Additional Information (continued) 

Section 19(a) Notice

These reported amounts and sources of distributions are estimates and are not being provided for tax reporting purposes. The actual amounts and sources for tax reporting purposes will depend upon the Trust’s investment experience during the year and may be subject to changes based on the tax regulations. The Trust will provide a Form 1099-DIV each calendar year that will explain the character of these dividends and distributions for federal income tax purposes.

January 31, 2013


         Total Fiscal Year-to-Date
Cumulative Distributions by Character
    Percentage of Fiscal Year-to-Date
Cumulative Distributions by Character
   



   
Net Investment
Income
   
Net Realized
Capital Gains
   
Return of
Capital
   
Total Per
Common Share
   
Net Investment
Income
   
Net Realized
Capital Gains
   
Return of
Capital
   
Total Per
Common Share
BTT
        $ 0.182450                     $ 0.213553         $ 0.396000          46%                    54%          100%   
  The Trust estimates that it has distributed more than the amount of earned income and net realized gains; therefore, a portion of the distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment in the Trust is returned to the shareholder. A return of capital does not necessarily reflect the Trust’s investment performance and should not be confused with ‘yield’ or ‘income.’ When distributions exceed total return performance, the difference will incrementally reduce the Trust’s net asset value per share.
SEMI-ANNUAL REPORT JANUARY 31, 2013 73
 
  
Additional Information (concluded) 

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.

74 SEMI-ANNUAL REPORT JANUARY 31, 2013
 
  

  

This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares, and the risk that fluctuations in short-term dividend rates of the Preferred Shares may reduce the Common Shares’ yield. Statements and other information herein are as dated and are subject to change.


 
                    

#CEF-BK6-1/13-SAR
          
 
   
 
  

 

 

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 Registrants – 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 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 – Not Applicable
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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 – Exhibits attached hereto
  (a)(1) – Code of Ethics – Not Applicable to this semi-annual report
  (a)(2) – Certifications – Attached hereto
  (a)(3) – Not Applicable
  (b) – Certifications – Attached hereto

 

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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 Target Term Trust

 

By: /s/ John M. Perlowski
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Municipal Target Term Trust

 

Date: April 3, 2013

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 Target Term Trust

 

Date: April 3, 2013

 

By: /s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Municipal Target Term Trust

 

Date: April 3, 2013

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