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 811-21179
Name of Fund: BlackRock New York Municipal Income Quality Trust (BSE)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock New York Municipal Income Quality Trust, 55 East 52nd Street, New York, NY 10055
Registrants telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 08/31/2012
Date of reporting period: 08/31/2012
Item 1 Report to Stockholders
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August 31, 2012 |
Annual Report
BlackRock Maryland Municipal Bond Trust (BZM)
BlackRock MuniHoldings New York Quality Fund, Inc. (MHN)
BlackRock New Jersey Municipal Bond Trust (BLJ)
BlackRock New York Municipal Bond Trust (BQH)
BlackRock New York Municipal Income Quality Trust (BSE)
BlackRock New York Municipal Income Trust II (BFY)
BlackRock Virginia Municipal Bond Trust (BHV)
The Massachusetts Health & Education Tax-Exempt Trust (MHE)
Not FDIC Insured No Bank Guarantee May Lose Value
Table of Contents |
Page | ||||
3 | ||||
Annual Report: |
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4 | ||||
5 | ||||
13 | ||||
14 | ||||
Financial Statements: | ||||
15 | ||||
41 | ||||
43 | ||||
45 | ||||
49 | ||||
51 | ||||
59 | ||||
68 | ||||
68 | ||||
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements |
69 | |||
73 | ||||
74 | ||||
78 |
2 | ANNUAL REPORT | AUGUST 31, 2012 |
Dear Shareholder |
About this time one year ago, financial markets had been upended by sovereign debt turmoil in the United States and Europe as well as growing concerns about the future of the global economy. Since then, asset prices have waxed and waned in broad strokes as investors reacted to developments in Europes financial situation, mixed US economic news and global central bank policy action.
After confidence crumbled in the third quarter of 2011, October brought improving economic data and more concerted efforts among European leaders toward stemming the regions debt crisis, gradually drawing investors back to the markets. Improving sentiment carried over into early 2012 as investors felt some relief from the worlds financial woes. Volatility abated and risk assets (including stocks, commodities and high yield bonds) moved boldly higher through the first two months of 2012 while climbing Treasury yields pressured higher-quality fixed income assets.
Markets reversed course in the spring when Europes debt problems boiled over once again. High levels of volatility returned as political instability in Greece threatened the countrys membership in the euro zone. Spain faced severe deficit issues while the nations banks clamored for liquidity. Yields on Spanish and Italian government debt rose to levels deemed unsustainable. European leaders conferred and debated vehemently over the need for fiscal integration among the 17 nations comprising the euro currency bloc as a means to resolve the crisis for the long term.
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, became particularly worrisome. In the United States, disappointing jobs reports dealt a crushing blow to sentiment. Risk assets sold off in the second quarter as investors again retreated to safe haven assets.
Despite the continuation of heightened market volatility, most asset classes enjoyed a robust summer rally. Global economic data continued to be mixed, but the spate of downside surprises seen in the second quarter began to recede and, outside of Europe, the risk of recession largely subsided. Central bank policy action has been a major driver of market sentiment in 2012. Investors anticipation for economic stimulus drove asset prices higher over the summer as the European Central Bank stepped up its efforts to support the regions troubled nations and the US Federal Reserve reiterated its readiness to take action if economic conditions warrant.
On the whole, most asset classes advanced during the reporting period. US large cap stocks delivered strong returns for the 12 months ended August 31, 2012, while small cap stocks and high yield bonds also performed well. Despite the risk-asset rally in recent months, higher-quality investments including tax-exempt municipal bonds and US Treasury bonds posted exceptional gains by historical standards and outperformed investment-grade corporate bonds. International and emerging equities, however, lagged other asset classes amid ongoing global uncertainty. Near-zero short term interest rates kept yields on money market securities near their all-time lows.
We know that investors continue to face a world of uncertainty and volatile markets, but we also believe these challenging times present many opportunities. We remain committed to working with you and your financial professional to identify actionable ideas for your portfolio. We encourage you to visit www.blackrock.com/newworld for more information.
Sincerely,
Rob Kapito
President, BlackRock Advisors, LLC
We know that investors continue to face a world of uncertainty and volatile markets, but we also believe these challenging times present many opportunities
Rob Kapito
President, BlackRock Advisors, LLC
Total Returns as of August 31, 2012 | ||||||||
6-month | 12-month | |||||||
US large cap equities |
4.14 | % | 18.00 | % | ||||
US small cap equities |
0.89 | 13.40 | ||||||
International equities |
(4.00 | ) | (0.04 | ) | ||||
Emerging market |
(10.51 | ) | (5.80 | ) | ||||
3-month Treasury bill |
0.06 | 0.06 | ||||||
US Treasury securities |
5.25 | 9.14 | ||||||
US investment grade |
2.97 | 5.78 | ||||||
Tax-exempt municipal |
3.24 | 9.37 | ||||||
US high yield bonds |
4.80 | 13.84 | ||||||
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 |
Municipal Market Overview |
For the 12-Month Period Ended August 31, 2012 |
Municipal bonds delivered exceptional performance during the reporting period, with the S&P Municipal Bond Index gaining 9.37% for the 12 months ended August 31, 2012. In the later part of 2011, heightened volatility in equity markets led to increased demand for municipal bonds as investors flocked to more stable asset classes. The municipal market benefited from an exuberant Treasury market amid global uncertainty in addition to muted new issuance. Supply was constrained while demand from both traditional and non-traditional buyers was strong, pushing long-term municipal bond yields lower and sparking a curve-flattening trend that continued through year end. Ultimately, 2011 was one of the strongest performance years in municipal market history and municipal bonds outperformed most fixed income asset classes for the year.
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 the first eight months of 2012 was $253 billion as compared to $288 billion for the entire year of 2011. It is important to note that refunding activity has accounted for a large portion of supply in 2012 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 the continuation of strong demand in 2012 as investors remained 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. Year-to-date through August 2012, flows into municipal funds have totaled $38.812 billion (according to the Investment Company Institute). Following an extensive period of significant outflows from late 2010 through mid-2011, these robust 2012 inflows are telling of the complete turnaround in confidence. 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 Europes 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. Given these positive market factors, the S&P Municipal Bond Index has gained 5.99% year-to-date through August 31, 2012.
Overall, the municipal yield curve flattened during the period from August 31, 2011 to August 31, 2012. As measured by Thomson Municipal Market Data, yields declined by 100 basis points (bps) to 2.89% on AAA-rated 30-year municipal bonds and by 51 bps to 1.74% on 10-year bonds, while yields on 5-year issues fell 20 bps to 0.69%. While the entire municipal curve flattened over the 12-month time period, the spread between 2- and 30-year maturities tightened by 99 bps, and in the 2- to 10-year range, the spread tightened by 50 bps.
The fundamental picture for municipalities continues to improve. Austerity has been the general theme 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 more than a year and a half 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. Year-to-date through August 2012, total outstanding municipal bonds entering into debt service cash-payment default for the first time had an aggregate par value of $1.16 billion. This amount represents only 0.5% of total issuance for the same period and 0.031% of total municipal bonds outstanding. This compares favorably to data for the full year 2011 when first-time defaults totaled 0.84% of issuance and 0.065% of outstanding. (Data provided by Bank of America Merrill Lynch.) BlackRock maintains the view that municipal bond defaults will 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.
4 | ANNUAL REPORT | AUGUST 31, 2012 |
Trust Summary as of August 31, 2012 | BlackRock Maryland Municipal Bond Trust |
Trust Overview |
BlackRock Maryland Municipal Bond Trusts (BZM) (the Trust) investment objective is to provide current income exempt from regular federal income taxes and Maryland personal income taxes. The Trust seeks to achieve its investment objectives 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 Maryland personal income taxes. The Trust invests, under normal market conditions, 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 Trusts investment objective will be achieved.
Performance |
For the 12 months ended August 31, 2012, the Trust returned 29.95% based on market price and 13.08% based on net asset value (NAV). For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 21.36% based on market price and 14.84% based on NAV. All returns reflect reinvestment of dividends. The Trusts 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. During the period, municipal bond prices generally rose as the yield curve flattened (longer-term interest rates fell more than shorter-term rates) and credit spreads tightened. Given these market conditions, the Trusts exposure to longer-maturity bonds and lower-quality investment grade bonds had a significant positive impact on performance. Exposure to the health sector also boosted returns as these bonds particularly benefited from the decline in interest rates and spread tightening during the period. The Trusts income component was negatively impacted by the recent high level of refunding activity in the market as issuers were enticed to refinance their outstanding debt at significantly lower interest rates. The Trusts small position in US Treasury futures as a strategy for hedging interest rate risk was a slight detractor from performance as rates generally declined 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) Amex |
BZM | |
Initial Offering Date |
April 30, 2002 | |
Yield on Closing Market Price as of August 31, 2012 ($18.43)1 |
4.33% | |
Tax Equivalent Yield2 |
6.66% | |
Current Monthly Distribution per Common Share3 |
$0.0665 | |
Current Annualized Distribution per Common Share3 |
$0.7980 | |
Economic Leverage as of August 31, 20124 |
36% |
1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
2 | Tax equivalent yield assumes the maximum federal tax rate of 35%. |
3 | The distribution rate is not constant and is subject to change. |
4 | Represents Variable Rate Demand Preferred Shares (VRDP Shares) and tender option bond trusts (TOBs) as a percentage of total managed assets, which is the total assets of the Trust, including any assets attributable to 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 13. |
The table below summarizes the changes in the Trusts market price and NAV per share:
8/31/12 |
8/31/11 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 18.43 | $ | 15.02 | 22.70 | % | $ | 20.21 | $ | 14.61 | ||||||||||
Net Asset Value |
$ | 15.60 | $ | 14.61 | 6.78 | % | $ | 15.63 | $ | 14.55 |
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
ANNUAL REPORT | AUGUST 31, 2012 | 5 |
Trust Summary as of August 31, 2012 | BlackRock MuniHoldings New York Quality Fund, Inc. |
Trust Overview |
BlackRock MuniHoldings New York Quality Fund, Inc.s (MHN) (the Trust) investment objective is to provide shareholders with current income exempt from federal income tax and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in investment grade New York municipal obligations 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 (New York Municipal Bonds), except at times when, in the judgment of its investment adviser, New York Municipal Bonds of sufficient quality and quantity are unavailable for investment by the Trust. At all times, however, except during temporary defensive periods, the Trust invests at least 65% of its assets in New York Municipal Bonds. The Trust invests, under normal market conditions, at least 80% of its assets in municipal obligations with remaining maturities of one year or more. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trusts investment objective will be achieved.
Performance |
For the 12 months ended August 31, 2012, the Trust returned 21.52% based on market price and 16.15% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 19.66% based on market price and 14.48% based on NAV. All returns reflect reinvestment of dividends. The Fund moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trusts neutral-to-long average duration (greater sensitivity to interest rates) contributed positively to performance as interest rates generally declined over the one-year period. A preference for longer-dated maturities enhanced returns as the municipal yield curve flattened (long-term interest rates fell more than short and intermediate rates). The Trust benefited from a tightening of credit spreads during the period, with particularly strong performance from its allocations to the health and corporate sectors. Narrowing spreads also bode well for the Trusts holdings of lower-coupon bonds, which tend to offer higher yield and duration relative to their stated maturity. However, the Trust held limited exposure to tobacco, which was the strongest performing sector during the period. The Trusts small position in US Treasury futures as a strategy for hedging interest rate risk was a slight detractor from performance as rates generally declined 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 NYSE |
MHN | |
Initial Offering Date |
September 19, 1997 | |
Yield on Closing Market Price as of August 31, 2012 ($15.86)1 |
6.02% | |
Tax Equivalent Yield2 |
9.26% | |
Current Monthly Distribution per Common Share3 |
$0.0795 | |
Current Annualized Distribution per Common Share3 |
$0.9540 | |
Economic Leverage as of August 31, 20124 |
40% |
1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
2 | Tax equivalent yield assumes the maximum federal tax rate of 35%. |
3 | The Monthly Distribution per Common Share, declared on October 1, 2012, was decreased to $0.0765 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 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 13. |
The table below summarizes the changes in the Trusts market price and NAV per share:
8/31/12 | 8/31/11 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 15.86 | $ | 13.90 | 14.10 | % | $ | 16.60 | $ | 13.73 | ||||||||||
Net Asset Value |
$ | 15.64 | $ | 14.34 | 9.07 | % | $ | 15.75 | $ | 14.34 |
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
6 | ANNUAL REPORT | AUGUST 31, 2012 |
Trust Summary as of August 31, 2012 | BlackRock New Jersey Municipal Bond Trust |
Trust Overview |
BlackRock New Jersey Municipal Bond Trusts (BLJ) (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 subject to the federal alternative minimum tax) and New Jersey gross income taxes. Under normal market conditions, 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 Trusts investment objective will be achieved.
Performance |
For the 12 months ended August 31, 2012, the Trust returned 29.94% based on market price and 21.52% based on NAV. For the same period, the closed-end Lipper New Jersey Municipal Debt Funds category posted an average return of 23.73% based on market price and 17.36% based on NAV. All returns reflect reinvestment of dividends. The Trusts discount 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 Trusts long duration posture (greater sensitivity to interest rates) contributed positively to performance as the municipal yield curve flattened (i.e., longer-term interest rates fell more than shorter rates) and bond prices moved higher on the long end of the curve. The Trusts longer-dated holdings in the health, corporate and utilities sectors experienced the strongest price appreciation. The Trusts small position in US Treasury futures as a strategy for hedging interest rate risk was a slight detractor from performance as rates generally declined 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 NYSE Amex |
BLJ | |
Initial Offering Date |
April 30, 2002 | |
Yield on Closing Market Price as of August 31, 2012 ($16.66)1 |
5.26% | |
Tax Equivalent Yield2 |
8.09% | |
Current Monthly Distribution per Common Share3 |
$0.0730 | |
Current Annualized Distribution per Common Share3 |
$0.8760 | |
Economic Leverage as of August 31, 20124 |
37% |
1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
2 | Tax equivalent yield assumes the maximum federal tax rate of 35%. |
3 | 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 13. |
The table below summarizes the changes in the Trusts market price and NAV per share:
8/31/12 | 8/31/11 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 16.66 | $ | 13.60 | 22.50 | % | $ | 18.65 | $ | 13.56 | ||||||||||
Net Asset Value |
$ | 16.67 | $ | 14.55 | 14.57 | % | $ | 16.72 | $ | 14.55 |
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
ANNUAL REPORT | AUGUST 31, 2012 | 7 |
Trust Summary as of August 31, 2012 | BlackRock New York Municipal Bond Trust |
Trust Overview |
BlackRock New York Municipal Bond Trusts (BQH) (the Trust) investment objective is to provide current income exempt from regular federal income taxes 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. Under normal market conditions, 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 Trusts investment objective will be achieved.
Performance |
For the 12 months ended August 31, 2012, the Trust returned 18.68% based on market price and 17.99% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 19.66% based on market price and 14.48% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trusts neutral-to-long average duration (greater sensitivity to interest rates) contributed positively to performance as interest rates generally declined over the one-year period. A preference for longer-dated maturities enhanced returns as the municipal yield curve flattened (long-term interest rates fell more than short and intermediate rates). The Trust benefited from a tightening of credit spreads during the period, with particularly strong performance from its allocations to the health and corporate sectors. Narrowing spreads also bode well for the Trusts holdings of lower-coupon bonds, which tend to offer higher yield and duration relative to their stated maturity. However, the Trust held limited exposure to tobacco, which was the strongest performing sector during the period. The Trusts small position in US Treasury futures as a strategy for hedging interest rate risk was a slight detractor from performance as rates generally declined 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 NYSE |
BQH | |
Initial Offering Date |
April 30, 2002 | |
Yield on Closing Market Price as of August 31, 2012 ($16.56)1 |
5.36% | |
Tax Equivalent Yield2 |
8.25% | |
Current Monthly Distribution per Common Share3 |
$0.0740 | |
Current Annualized Distribution per Common Share3 |
$0.8880 | |
Economic Leverage as of August 31, 20124 |
39% |
1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
2 | Tax equivalent yield assumes the maximum federal tax rate of 35%. |
3 | The Monthly Distribution per Common Share, declared on October 1, 2012, was decreased to $0.0710 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 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 13. |
The table below summarizes the changes in the Trusts market price and NAV per share:
8/31/12 |
8/31/11 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 16.56 | $ | 14.83 | 11.67 | % | $ | 17.07 | $ | 14.61 | ||||||||||
Net Asset Value |
$ | 16.53 | $ | 14.89 | 11.01 | % | $ | 16.67 | $ | 14.88 |
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
8 | ANNUAL REPORT | AUGUST 31, 2012 |
Trust Summary as of August 31, 2012 | BlackRock New York Municipal Income Quality Trust |
Trust Overview |
BlackRock New York Municipal Income Quality Trusts (BSE) (the Trust) investment objective is to provide current income exempt from federal income tax, including the alternative minimum tax, and New York State and New York City personal income taxes. The Trust seeks to achieve its investment objective by investing at least 80% of its assets in municipal obligations exempt from federal income taxes (including the alternative minimum tax) and New York State and New York City personal income taxes. Under normal market conditions, the Trust invests primarily 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 Trusts investment objective will be achieved.
Performance |
For the 12 months ended August 31, 2012, the Trust returned 23.07% based on market price and 15.23% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 19.66% based on market price and 14.48% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trusts neutral-to-long average duration (greater sensitivity to interest rates) contributed positively to performance as interest rates generally declined over the one-year period. A preference for longer-dated maturities enhanced returns as the municipal yield curve flattened (long-term interest rates fell more than short and intermediate rates). The Trust benefited from a tightening of credit spreads during the period, with particularly strong performance from its allocations to the health and corporate sectors. Narrowing spreads also bode well for the Trusts holdings of lower-coupon bonds, which tend to offer higher yield and duration relative to their stated maturity. However, the Trust held limited exposure to tobacco, which was the strongest performing sector during the period. The Trusts small position in US Treasury futures as a strategy for hedging interest rate risk was a slight detractor from performance as rates generally declined 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 NYSE |
BSE | |
Initial Offering Date |
October 31, 2002 | |
Yield on Closing Market Price as of August 31, 2012 ($15.74)1 |
5.45% | |
Tax Equivalent Yield2 |
8.38% | |
Current Monthly Distribution per Common Share3 |
$0.0715 | |
Current Annualized Distribution per Common Share3 |
$0.8580 | |
Economic Leverage as of August 31, 20124 |
38% |
1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
2 | Tax equivalent yield assumes the maximum federal tax rate of 35%. |
3 | The distribution 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 13. |
The table below summarizes the changes in the Trusts market price and NAV per share:
8/31/12 | 8/31/11 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 15.74 | $ | 13.54 | 16.25 | % | $ | 17.05 | $ | 13.49 | ||||||||||
Net Asset Value |
$ | 15.51 | $ | 14.25 | 8.84 | % | $ | 15.62 | $ | 14.25 |
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
ANNUAL REPORT | AUGUST 31, 2012 | 9 |
Trust Summary as of August 31, 2012 | BlackRock New York Municipal Income Trust II |
Trust Overview |
BlackRock New York Municipal Income Trust IIs (BFY) (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. Under normal market conditions, 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 Trusts investment objective will be achieved.
Performance |
For the 12 months ended August 31, 2012, the Trust returned 24.61% based on market price and 17.00% based on NAV. For the same period, the closed-end Lipper New York Municipal Debt Funds category posted an average return of 19.66% based on market price and 14.48% based on NAV. All returns reflect reinvestment of dividends. The Trust moved from a discount to NAV to a premium by period end, which accounts for the difference between performance based on price and performance based on NAV. The following discussion relates to performance based on NAV. The Trusts neutral-to-long average duration (greater sensitivity to interest rates) contributed positively to performance as interest rates generally declined over the one-year period. A preference for longer-dated maturities enhanced returns as the municipal yield curve flattened (long-term interest rates fell more than short and intermediate rates). The Trust benefited from a tightening of credit spreads during the period, with particularly strong performance from its allocations to the health and corporate sectors. Narrowing spreads also bode well for the Trusts holdings of lower-coupon bonds, which tend to offer higher yield and duration relative to their stated maturity. However, the Trust held limited exposure to tobacco, which was the strongest performing sector during the period. The Trusts small position in US Treasury futures as a strategy for hedging interest rate risk was a slight detractor from performance as rates generally declined 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 NYSE Amex |
BFY | |
Initial Offering Date |
July 30, 2002 | |
Yield on Closing Market Price as of August 31, 2012 ($16.81)1 |
5.78% | |
Tax Equivalent Yield2 |
8.89% | |
Current Monthly Distribution per Common Share3 |
$0.0810 | |
Current Annualized Distribution per Common Share3 |
$0.9720 | |
Economic Leverage as of August 31, 20124 |
39% |
1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
2 | Tax equivalent yield assumes the maximum federal tax rate of 35%. |
3 | The Monthly Distribution per Common Share, declared on October 1, 2012, was decreased to $0.0770 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 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 13. |
The table below summarizes the changes in the Trusts market price and NAV per share:
8/31/12 | 8/31/11 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 16.81 | $ | 14.38 | 16.90 | % | $ | 17.51 | $ | 14.38 | ||||||||||
Net Asset Value |
$ | 16.09 | $ | 14.66 | 9.75 | % | $ | 16.18 | $ | 14.57 |
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
10 | ANNUAL REPORT | AUGUST 31, 2012 |
Trust Summary as of August 31, 2012 | BlackRock Virginia Municipal Bond Trust |
Trust Overview |
BlackRock Virginia Municipal Bond Trusts (BHV) (the Trust) investment objective is to provide current income exempt from regular federal income tax and Virginia personal income taxes. The Trust seeks to achieve its investment objectives 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 Virginia personal income taxes. The Trust invests, under normal market conditions, 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 Trusts investment objective will be achieved.
Performance |
For the 12 months ended August 31, 2012, the Trust returned 16.23% based on market price and 15.19% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 21.36% based on market price and 14.84% based on NAV. All returns reflect reinvestment of dividends. The Trusts 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. During the period, municipal bond prices generally rose as the yield curve flattened (longer-term interest rates fell more than shorter-term rates) and credit spreads tightened. Given these market conditions, the Trusts exposure to longer-maturity bonds and lower-quality investment grade bonds had a significant positive impact on performance. Exposure to the health sector also boosted returns as these bonds particularly benefited from the decline in interest rates and spread tightening during the period. The Trusts income component was negatively impacted by the recent high level of refunding activity in the market as issuers were enticed to refinance their outstanding debt at significantly lower interest rates. The Trusts small position in US Treasury futures as a strategy for hedging interest rate risk was a slight detractor from performance as rates generally declined 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 NYSE Amex |
BHV | |
Initial Offering Date |
April 30, 2002 | |
Yield on Closing Market Price as of August 31, 2012 ($19.58)1 |
4.78% | |
Tax Equivalent Yield2 |
7.35% | |
Current Monthly Distribution per Common Share3 |
$0.0780 | |
Current Annualized Distribution per Common Share3 |
$0.9360 | |
Economic Leverage as of August 31, 20124 |
37% |
1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
2 | Tax equivalent yield assumes the maximum federal tax rate of 35%. |
3 | 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 13. |
The table below summarizes the changes in the Trusts market price and NAV per share:
8/31/12 | 8/31/11 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 19.58 | $ | 17.77 | 10.19 | % | $ | 21.84 | $ | 17.77 | ||||||||||
Net Asset Value |
$ | 16.74 | $ | 15.33 | 9.20 | % | $ | 16.82 | $ | 15.27 |
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
ANNUAL REPORT | AUGUST 31, 2012 | 11 |
Trust Summary as of August 31, 2012 | The Massachusetts Health & Education Tax-Exempt Trust |
Trust Overview |
The Massachusetts Health & Education Tax-Exempt Trusts (MHE) (the Trust) investment objective is to provide as high a level of current income exempt from both regular federal income taxes and Massachusetts personal income taxes as is consistent with the preservation of shareholders capital. The Trust seeks to achieve its investment objective by investing primarily in tax-exempt obligations (including bonds, notes and capital lease obligations) issued on behalf of Massachusetts not-for-profit health and education institutions (Massachusetts Health & Education Obligations). The Trust invests, under normal market conditions, at least 80% of its assets in Massachusetts Health & Education Obligations and at least 80% of its assets in obligations that are rated investment grade at the time of investment. Under normal market conditions, the Trust invests its assets so that at least 80% of the income generated by the Trust is exempt from federal income taxes, including federal alternative minimum tax, and Massachusetts personal income taxes. The Trust invests primarily in long term municipal obligations with maturities of more than ten years. The Trust may invest directly in such securities or synthetically through the use of derivatives.
No assurance can be given that the Trusts investment objective will be achieved.
Performance |
For the 12 months ended August 31, 2012, the Trust returned 20.66% based on market price and 17.02% based on NAV. For the same period, the closed-end Lipper Other States Municipal Debt Funds category posted an average return of 21.36% based on market price and 14.84% based on NAV. All returns reflect reinvestment of dividends. The Trusts 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 Trusts exposure to spread sectors, including education, health and housing bonds enhanced performance, as these bonds provided a higher degree of incremental yield in the low interest rate environment. The Trusts small position in US Treasury futures as a strategy for hedging interest rate risk was a slight detractor from performance as rates generally declined during the period. The Trusts small position in US Treasury futures as a strategy for hedging interest rate risk was a slight detractor from performance as rates generally declined 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 NYSE Amex |
MHE | |
Initial Offering Date |
July 23, 1993 | |
Yield on Closing Market Price as of August 31, 2012 ($14.91)1 |
5.03% | |
Tax Equivalent Yield2 |
7.74% | |
Current Monthly Distribution per Common Share3 |
$0.0625 | |
Current Annualized Distribution per Common Share3 |
$0.7500 | |
Economic Leverage as of August 31, 20124 |
38% |
1 | Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price. Past performance does not guarantee future results. |
2 | Tax equivalent yield assumes the maximum federal tax rate of 35%. |
3 | The distribution 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 13. |
The table below summarizes the changes in the Trusts market price and NAV per share:
8/31/12 |
8/31/11 | Change | High | Low | ||||||||||||||||
Market Price |
$ | 14.91 | $ | 13.11 | 13.73 | % | $ | 16.29 | $ | 13.11 | ||||||||||
Net Asset Value |
$ | 14.35 | $ | 13.01 | 10.30 | % | $ | 14.43 | $ | 13.01 |
The following charts show the sector and credit quality allocations of the Trusts long-term investments:
12 | ANNUAL REPORT | AUGUST 31, 2012 |
The Benefits and Risks of Leveraging |
ANNUAL REPORT | AUGUST 31, 2012 | 13 |
Derivative Financial Instruments |
14 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments August 31, 2012 |
BlackRock Maryland Municipal Bond Trust (BZM) (Percentages shown are based on Net Assets) |
Portfolio Abbreviations |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 15 |
Schedule of Investments (continued) |
BlackRock Maryland Municipal Bond Trust (BZM) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
16 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments (concluded) | BlackRock Maryland Municipal Bond Trust (BZM) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 17 |
Schedule of Investments August 31, 2012 |
BlackRock MuniHoldings New York Quality Fund, Inc. (MHN) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
18 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments (continued) |
BlackRock MuniHoldings New York Quality Fund, Inc. (MHN) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 19 |
Schedule of Investments (continued) |
BlackRock MuniHoldings New York Quality Fund, Inc. (MHN) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
20 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments (continued) |
BlackRock MuniHoldings New York Quality Fund, Inc. (MHN) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 21 |
Schedule of Investments (concluded) |
BlackRock MuniHoldings New York Quality Fund, Inc. (MHN) |
(f) | Investments in issuers considered to be an affiliate of the Trust during the year ended August 31, 2012, for purposes of Section 2(a)(3) of the 1940 Act, were as follows: |
Affiliate | Shares Held at August 31, 2011 |
Net Activity |
Shares Held at August 31, 2012 |
Income | ||||||||||||
BIF New York Municipal Money Fund |
12,792,001 | (3,262,507 | ) | 9,529,494 | $ | 74 |
(g) | Represents the current yield as of report date. |
| For Trust compliance purposes, the Trusts 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 Trusts management. These definitions may not apply for purposes of this report, which may combine such sector sub- classifications for reporting ease. |
| Fair Value MeasurementsVarious 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 |
| 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 Trusts own assumptions used in determining the fair value of investments) |
Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trusts 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 Trusts 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 Trusts investments categorized in the disclosure hierarchy as of August 31, 2012:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: |
||||||||||||||||
Investments: | ||||||||||||||||
Long-Term Investments1 |
| $ | 791,834,890 | | $ | 791,834,890 | ||||||||||
Short-Term Securities |
$ | 9,529,494 | | | 9,529,494 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 9,529,494 | $ | 791,834,890 | | $ | 801,364,384 | |||||||||
|
|
|
|
|
|
|
|
1 | See above Schedule of Investments for values in each sector. |
Certain of the Trusts liabilities are held at carrying amount, which approximates fair value for financial statement purposes. As of August 31, 2012, such liabilities are categorized within the disclosure hierarchy as follows:
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Liabilities: |
||||||||||||||||
Bank overdraft |
| $ | (2,349 | ) | | $ | (2,349 | ) | ||||||||
TOB trust certificates |
| (77,476,820 | ) | | (77,476,820 | ) | ||||||||||
VRDP Shares |
| (243,600,000 | ) | | (243,600,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
| $ | (321,079,169 | ) | | $ | (321,079,169 | ) | ||||||||
|
|
|
|
|
|
|
|
There were no transfers between levels during the year ended August 31, 2012.
See Notes to Financial Statements.
22 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments August 31, 2012 | BlackRock New Jersey Municipal Bond Trust (BLJ) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 23 |
Schedule of Investments (continued) | BlackRock New Jersey Municipal Bond Trust (BLJ) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
24 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments (concluded) | BlackRock New Jersey Municipal Bond Trust (BLJ) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 25 |
Schedule of Investments August 31, 2012 | BlackRock New York Municipal Bond Trust (BQH) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
26 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments (continued) | BlackRock New York Municipal Bond Trust (BQH) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 27 |
Schedule of Investments (continued) | BlackRock New York Municipal Bond Trust (BQH) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
28 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments (concluded) | BlackRock New York Municipal Bond Trust (BQH) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 29 |
Schedule of Investments August 31, 2012 |
BlackRock New York Municipal Income Quality Trust (BSE) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
30 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments (continued) |
BlackRock New York Municipal Income Quality Trust (BSE) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 31 |
Schedule of Investments (concluded) |
BlackRock New York Municipal Income Quality Trust (BSE) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
32 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments August 31, 2012 |
BlackRock New York Municipal Income Trust II (BFY) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 33 |
Schedule of Investments (continued) |
BlackRock New York Municipal Income Trust II (BFY) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
34 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments (continued) |
BlackRock New York Municipal Income Trust II (BFY) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 35 |
Schedule of Investments (concluded) |
BlackRock New York Municipal Income Trust II (BFY) |
See Notes to Financial Statements.
36 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments August 31, 2012 |
BlackRock Virginia Municipal Bond Trust (BHV) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 37 |
Schedule of Investments (concluded) |
BlackRock Virginia Municipal Bond Trust (BHV) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
38 | ANNUAL REPORT | AUGUST 31, 2012 |
Schedule of Investments August 31, 2012 |
The Massachusetts Health & Education Tax-Exempt Trust (MHE) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
ANNUAL REPORT | AUGUST 31, 2012 | 39 |
Schedule of Investments (concluded) |
The Massachusetts Health & Education Tax-Exempt Trust (MHE) (Percentages shown are based on Net Assets) |
See Notes to Financial Statements.
40 | ANNUAL REPORT | AUGUST 31, 2012 |
Statements of Assets and Liabilities |
August 31, 2012 | BlackRock Bond Trust |
BlackRock Quality Fund, Inc. |
BlackRock New Jersey Municipal Bond Trust (BLJ) |
BlackRock New York Bond Trust |
||||||||||||
Assets | ||||||||||||||||
Investments at value unaffiliated1 |
$ | 50,176,585 | $ | 791,834,890 | $ | 60,743,531 | $ | 73,210,053 | ||||||||
Investments at value affiliated2 |
180,661 | 9,529,494 | 891,865 | 3,245,381 | ||||||||||||
Cash |
| | | 22,875 | ||||||||||||
Interest receivable |
528,265 | 8,770,320 | 735,901 | 687,637 | ||||||||||||
Investments sold receivable |
| 105,365 | 10,000 | | ||||||||||||
Deferred offering costs |
86,224 | 436,913 | 86,224 | 170,437 | ||||||||||||
TOB trust receivable |
| | | 440,000 | ||||||||||||
Prepaid expenses |
1,135 | 37,300 | 1,295 | 1,545 | ||||||||||||
|
|
|||||||||||||||
Total assets |
50,972,870 | 810,714,282 | 62,468,816 | 77,777,928 | ||||||||||||
|
|
|||||||||||||||
Accrued Liabilities | ||||||||||||||||
Bank overdraft |
| 2,349 | | | ||||||||||||
Investments purchased payable |
| 852,144 | 801,942 | 1,844,418 | ||||||||||||
Income dividends payable Common Shares |
137,774 | 2,466,987 | 169,556 | 206,585 | ||||||||||||
Investment advisory fees payable |
27,771 | 373,888 | 33,749 | 41,083 | ||||||||||||
Officers and Trustees fees payable |
8,720 | 115,568 | 8,478 | 7,074 | ||||||||||||
Interest expense and fees payable |
1,038 | 31,159 | 457 | 2,698 | ||||||||||||
Offering costs payable |
40,000 | | 40,000 | | ||||||||||||
Other accrued expenses payable |
37,273 | 341,085 | 32,844 | 52,656 | ||||||||||||
|
|
|||||||||||||||
Total accrued liabilities |
252,576 | 4,183,180 | 1,087,026 | 2,154,514 | ||||||||||||
|
|
|||||||||||||||
Other Liabilities | ||||||||||||||||
TOB trust certificates |
2,399,847 | 77,476,820 | 3,954,288 | 7,365,836 | ||||||||||||
VRDP Shares, at liquidation value of $100,000 per share3,4 |
16,000,000 | 243,600,000 | 18,700,000 | 22,100,000 | ||||||||||||
|
|
|||||||||||||||
Total other liabilities |
18,399,847 | 321,076,820 | 22,654,288 | 29,465,836 | ||||||||||||
|
|
|||||||||||||||
Total liabilities |
18,652,423 | 325,260,000 | 23,741,314 | 31,620,350 | ||||||||||||
|
|
|||||||||||||||
Net Assets Applicable to Common Shareholders |
$ | 32,320,447 | $ | 485,454,282 | $ | 38,727,502 | $ | 46,157,578 | ||||||||
|
|
|||||||||||||||
Net Assets Applicable to Common Shareholders Consist of | ||||||||||||||||
Paid-in capital5,6,7 |
$ | 29,363,022 | $ | 459,413,538 | $ | 32,932,968 | $ | 39,626,791 | ||||||||
Undistributed net investment income |
472,802 | 8,069,904 | 678,200 | 627,501 | ||||||||||||
Undistributed net realized gain (accumulated net realized loss) |
(210,557 | ) | (37,314,818 | ) | (316,457 | ) | 380,483 | |||||||||
Net unrealized appreciation/depreciation |
2,695,180 | 55,285,658 | 5,432,791 | 5,522,803 | ||||||||||||
|
|
|||||||||||||||
Net Assets Applicable to Common Shareholders |
$ | 32,320,447 | $ | 485,454,282 | $ | 38,727,502 | $ | 46,157,578 | ||||||||
|
|
|||||||||||||||
Net asset value per Common Share |
$ | 15.60 | $ | 15.64 | $ | 16.67 | $ | 16.53 | ||||||||
|
|
|||||||||||||||
1 Investments at cost unaffiliated |
$ | 47,481,405 | $ | 736,549,232 | $ | 55,310,740 | $ | 67,687,250 | ||||||||
|
|
|||||||||||||||
2 Investments at cost affiliated |
$ | 180,661 | $ | 9,529,494 | $ | 891,865 | $ | 3,245,381 | ||||||||
|
|
|||||||||||||||
3 Preferred Shares outstanding: |
||||||||||||||||
Par value $0.001 per share |
160 | | 187 | 221 | ||||||||||||
|
|
|||||||||||||||
Par value $0.10 per share |
| 2,436 | | | ||||||||||||
|
|
|||||||||||||||
4 Preferred Shares authorized |
unlimited | 14,956 | unlimited | unlimited | ||||||||||||
|
|
|||||||||||||||
5 Par value per Common Share |
$ | 0.001 | $ | 0.10 | $ | 0.001 | $ | 0.001 | ||||||||
|
|
|||||||||||||||
6 Common Shares outstanding |
2,071,783 | 31,031,287 | 2,322,685 | 2,791,685 | ||||||||||||
|
|
|||||||||||||||
7 Common Shares authorized |
unlimited | 200 million | unlimited | unlimited | ||||||||||||
|
|
See Notes to Financial Statements. | ||||||
ANNUAL REPORT | AUGUST 31, 2012 | 41 |
Statements of Assets and Liabilities (concluded) |
August 31, 2012 | BlackRock New York |
BlackRock New York Municipal Income Trust II (BFY) |
BlackRock Virginia Municipal Bond Trust (BHV) |
The Massachusetts Health & Education Tax-Exempt Trust (MHE) |
||||||||||||
Assets | ||||||||||||||||
Investments at value unaffiliated1 |
$ | 160,548,158 | $ | 131,487,832 | $ | 41,660,128 | $ | 54,428,877 | ||||||||
Investments at value affiliated2 |
1,020,744 | 459,702 | 65,431 | 36,054 | ||||||||||||
Cash |
| 48,801 | | | ||||||||||||
Interest receivable |
1,678,359 | 1,340,286 | 556,581 | 634,420 | ||||||||||||
Deferred offering costs |
183,207 | 179,227 | 86,224 | 97,641 | ||||||||||||
TOB trust receivable |
590,000 | | | | ||||||||||||
Prepaid expenses |
3,466 | 2,727 | 895 | 639 | ||||||||||||
|
|
|||||||||||||||
Total assets |
164,023,934 | 133,518,575 | 42,369,259 | 55,197,631 | ||||||||||||
|
|
|||||||||||||||
Accrued Liabilities | ||||||||||||||||
Investments purchased payable |
1,088,958 | 751,895 | | 571,730 | ||||||||||||
Income dividends payable Common Shares |
465,071 | 403,833 | 123,347 | 147,419 | ||||||||||||
Investment advisory fees payable |
75,192 | 61,400 | 23,227 | 22,949 | ||||||||||||
Officers and Trustees fees payable |
6,131 | 8,663 | 5,666 | 88 | ||||||||||||
Interest expense and fees payable |
9,467 | 2,427 | 578 | 392 | ||||||||||||
Offering costs payable |
| | 40,000 | 40,000 | ||||||||||||
Other accrued expenses payable |
93,523 | 71,372 | 2,654 | 53,533 | ||||||||||||
|
|
|||||||||||||||
Total accrued liabilities |
1,738,342 | 1,299,590 | 195,472 | 836,111 | ||||||||||||
|
|
|||||||||||||||
Other Liabilities | ||||||||||||||||
TOB trust certificates |
20,920,361 | 7,591,259 | 4,107,550 | 2,009,595 | ||||||||||||
VRDP Shares, at liquidation value of $100,000 per share3,4 |
40,500,000 | 44,400,000 | 11,600,000 | 18,500,000 | ||||||||||||
|
|
|||||||||||||||
Total other liabilities |
61,420,361 | 51,991,259 | 15,707,550 | 20,509,595 | ||||||||||||
|
|
|||||||||||||||
Total liabilities |
63,158,703 | 53,290,849 | 15,903,022 | 21,345,706 | ||||||||||||
|
|
|||||||||||||||
Net Assets Applicable to Common Shareholders |
$ | 100,865,231 | $ | 80,227,726 | $ | 26,466,237 | $ | 33,851,925 | ||||||||
|
|
|||||||||||||||
Net Assets Applicable to Common Shareholders Consist of | ||||||||||||||||
Paid-in capital5,6,7 |
$ | 92,225,476 | $ | 70,656,793 | $ | 22,529,781 | $ | 29,876,964 | ||||||||
Undistributed net investment income |
1,360,150 | 1,223,739 | 406,669 | 609,532 | ||||||||||||
Undistributed net realized gain (accumulated net realized loss) |
(4,704,599 | ) | (1,696,956 | ) | (590,184 | ) | (1,041,040 | ) | ||||||||
Net unrealized appreciation/depreciation |
11,984,204 | 10,044,150 | 4,119,971 | 4,406,469 | ||||||||||||
|
|
|||||||||||||||
Net Assets Applicable to Common Shareholders |
$ | 100,865,231 | $ | 80,227,726 | $ | 26,466,237 | $ | 33,851,925 | ||||||||
|
|
|||||||||||||||
Net asset value per Common Share |
$ | 15.51 | $ | 16.09 | $ | 16.74 | $ | 14.35 | ||||||||
|
|
|||||||||||||||
1 Investments at cost unaffiliated |
$ | 148,563,954 | $ | 121,443,682 | $ | 37,540,157 | $ | 50,022,408 | ||||||||
|
|
|||||||||||||||
2 Investments at cost affiliated |
$ | 1,020,744 | $ | 459,702 | $ | 65,431 | $ | 36,054 | ||||||||
|
|
|||||||||||||||
3 Preferred Shares outstanding: |
||||||||||||||||
Par value $0.001 per share |
405 | 444 | 116 | | ||||||||||||
|
|
|||||||||||||||
Par value $0.01 per share |
| | | 185 | ||||||||||||
|
|
|||||||||||||||
4 Preferred Shares authorized |
unlimited | unlimited | unlimited | unlimited | ||||||||||||
|
|
|||||||||||||||
5 Par value per Common Share |
$ | 0.001 | $ | 0.001 | $ | 0.001 | $ | 0.01 | ||||||||
|
|
|||||||||||||||
6 Common Shares outstanding |
6,504,492 | 4,985,597 | 1,581,375 | 2,358,705 | ||||||||||||
|
|
|||||||||||||||
7 Common Shares authorized |
unlimited | unlimited | unlimited | unlimited | ||||||||||||
|
|
See Notes to Financial Statements. | ||||||
42 | ANNUAL REPORT | AUGUST 31, 2012 |
Statements of Operations |
Year Ended August 31, 2012 | BlackRock Maryland Municipal Bond Trust (BZM) |
BlackRock Quality Fund, Inc. |
BlackRock New Jersey Bond Trust |
BlackRock New York Bond Trust |
||||||||||||
Investment Income | ||||||||||||||||
Interest |
$ | 2,360,451 | $ | 36,312,673 | $ | 2,775,922 | $ | 3,374,546 | ||||||||
Income affiliated |
304 | 4,389 | 315 | 294 | ||||||||||||
|
|
|||||||||||||||
Total income |
2,360,755 | 36,317,062 | 2,776,237 | 3,374,840 | ||||||||||||
|
|
|||||||||||||||
Expenses | ||||||||||||||||
Investment advisory |
318,748 | 4,316,139 | 377,628 | 450,214 | ||||||||||||
Liquidity fees |
| 1,741,505 | | 176,071 | ||||||||||||
Professional |
57,845 | 387,954 | 53,705 | 55,509 | ||||||||||||
Remarketing fees on Preferred Shares |
13,382 | 244,268 | 24,299 | 21,609 | ||||||||||||
Accounting services |
15,204 | 123,228 | 20,358 | 24,134 | ||||||||||||
Transfer agent |
31,286 | 49,565 | 21,277 | 25,015 | ||||||||||||
Officer and Trustees |
3,952 | 69,272 | 4,865 | 4,152 | ||||||||||||
Custodian |
7,392 | 33,233 | 8,123 | 8,592 | ||||||||||||
Printing |
1,527 | 6,511 | 6,714 | 11,423 | ||||||||||||
Registration |
889 | 10,571 | 1,003 | 9,163 | ||||||||||||
Miscellaneous |
16,365 | 169,935 | 18,737 | 68,276 | ||||||||||||
|
|
|||||||||||||||
Total expenses excluding interest expense, fees and amortization of offering costs |
466,590 | 7,152,181 | 536,709 | 854,158 | ||||||||||||
Interest expense, fees and amortization of offering costs1 |
51,809 | 1,980,835 | 66,565 | 132,925 | ||||||||||||
|
|
|||||||||||||||
Total expenses |
518,399 | 9,133,016 | 603,274 | 987,083 | ||||||||||||
Less fees waived by Manager |
(16,834 | ) | (378,387 | ) | (23,012 | ) | (24,087 | ) | ||||||||
|
|
|||||||||||||||
Total expenses after fees waived |
501,565 | 8,754,629 | 580,262 | 962,996 | ||||||||||||
|
|
|||||||||||||||
Net investment income |
1,859,190 | 27,562,433 | 2,195,975 | 2,411,844 | ||||||||||||
|
|
|||||||||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments |
226,576 | 298,558 | 145,816 | 776,786 | ||||||||||||
Financial futures contracts |
(97,401 | ) | (1,389,725 | ) | (131,305 | ) | (131,098 | ) | ||||||||
|
|
|||||||||||||||
129,175 | (1,091,167 | ) | 14,511 | 645,688 | ||||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation/depreciation on: | ||||||||||||||||
Investments |
2,023,201 | 43,412,707 | 4,915,294 | 4,217,496 | ||||||||||||
Financial futures contracts |
(1,787 | ) | | (2,860 | ) | | ||||||||||
|
|
|||||||||||||||
2,021,414 | 43,412,707 | 4,912,434 | 4,217,496 | |||||||||||||
|
|
|||||||||||||||
Total realized and unrealized gain |
2,150,589 | 42,321,540 | 4,926,945 | 4,863,184 | ||||||||||||
|
|
|||||||||||||||
Dividends to AMPS Shareholders From | ||||||||||||||||
Net investment income |
(32,567 | ) | | (39,347 | ) | (6,285 | ) | |||||||||
|
|
|||||||||||||||
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations |
$ | 3,977,212 | $ | 69,883,973 | $ | 7,083,573 | $ | 7,268,743 | ||||||||
|
|
|||||||||||||||
1 Related to TOBs and/or VRDP Shares. |
See Notes to Financial Statements. | ||||||
ANNUAL REPORT | AUGUST 31, 2012 | 43 |
Statements of Operations (concluded) |
Year Ended August 31, 2012 | BlackRock New York |
BlackRock New York Municipal Income Trust II (BFY) |
BlackRock Virginia Municipal Bond Trust (BHV) |
The Massachusetts |
||||||||||||
Investment Income | ||||||||||||||||
Interest |
$ | 6,992,394 | $ | 6,064,416 | $ | 1,939,199 | $ | 2,463,956 | ||||||||
Income affiliated |
270 | 30 | 254 | 8 | ||||||||||||
|
|
|||||||||||||||
Total income |
6,992,664 | 6,064,446 | 1,939,453 | 2,463,964 | ||||||||||||
|
|
|||||||||||||||
Expenses | ||||||||||||||||
Investment advisory |
841,131 | 689,857 | 263,722 | 264,399 | ||||||||||||
Liquidity fees |
322,661 | 353,732 | | | ||||||||||||
Professional |
69,243 | 56,917 | 43,654 | 43,313 | ||||||||||||
Remarketing fees on Preferred Shares |
39,600 | 43,412 | 13,132 | 28,901 | ||||||||||||
Accounting services |
39,658 | 32,256 | 5,099 | 20,375 | ||||||||||||
Transfer agent |
39,348 | 28,100 | 14,922 | 27,806 | ||||||||||||
Officer and Trustees |
11,691 | 9,029 | 3,129 | 3,997 | ||||||||||||
Custodian |
12,119 | 10,859 | 6,211 | 7,059 | ||||||||||||
Printing |
4,063 | 3,900 | 6,203 | 5,261 | ||||||||||||
Registration |
9,171 | 2,129 | 705 | 1,017 | ||||||||||||
Miscellaneous |
74,669 | 74,388 | 17,705 | 31,191 | ||||||||||||
|
|
|||||||||||||||
Total expenses excluding interest expense, fees and amortization of offering costs |
1,463,354 | 1,304,579 | 374,482 | 433,319 | ||||||||||||
Interest expense, fees and amortization of offering costs1 |
304,406 | 249,844 | 53,441 | 55,473 | ||||||||||||
|
|
|||||||||||||||
Total expenses |
1,767,760 | 1,554,423 | 427,923 | 488,792 | ||||||||||||
Less fees waived by Manager |
(1,992 | ) | (59,887 | ) | (13,528 | ) | (371 | ) | ||||||||
|
|
|||||||||||||||
Total expenses after fees waived |
1,765,768 | 1,494,536 | 414,395 | 488,421 | ||||||||||||
|
|
|||||||||||||||
Net investment income |
5,226,896 | 4,569,910 | 1,525,058 | 1,975,543 | ||||||||||||
|
|
|||||||||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) from: |
||||||||||||||||
Investments |
433,364 | 696,228 | (281,306 | ) | 67,368 | |||||||||||
Financial futures contracts |
(291,995 | ) | (230,864 | ) | (99,580 | ) | (105,334 | ) | ||||||||
|
|
|||||||||||||||
141,369 | 465,364 | (380,886 | ) | (37,966 | ) | |||||||||||
|
|
|||||||||||||||
Net change in unrealized appreciation/depreciation on: |
||||||||||||||||
Investments |
8,377,994 | 7,050,292 | 2,658,644 | 3,229,503 | ||||||||||||
Financial futures contracts |
| | (1,787 | ) | (2,860 | ) | ||||||||||
|
|
|||||||||||||||
8,377,994 | 7,050,292 | 2,656,857 | 3,226,643 | |||||||||||||
|
|
|||||||||||||||
Total realized and unrealized gain |
8,519,363 | 7,515,656 | 2,275,971 | 3,188,677 | ||||||||||||
|
|
|||||||||||||||
Dividends to AMPS Shareholders From | ||||||||||||||||
Net investment income |
(10,041 | ) | (10,777 | ) | (23,764 | ) | (35,328 | ) | ||||||||
|
|
|||||||||||||||
Net Increase in Net Assets Applicable to Common Shareholders Resulting from Operations |
$ | 13,736,218 | $ | 12,074,789 | $ | 3,777,265 | $ | 5,128,892 | ||||||||
|
|
|||||||||||||||
1 Related to TOBs and/or VRDP Shares. |
See Notes to Financial Statements. | ||||||
44 | ANNUAL REPORT | AUGUST 31, 2012 |
Statements of Changes in Net Assets |
BlackRock Maryland Municipal Bond Trust (BZM) |
BlackRock MuniHoldings New York Quality Fund, Inc. (MHN) |
|||||||||||||||
Year Ended August 31, | Year Ended August 31, | |||||||||||||||
Increase (Decrease) in Net Assets Applicable to Common Shareholders: | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Operations | ||||||||||||||||
Net investment income |
$ | 1,859,190 | $ | 1,996,183 | $ | 27,562,433 | $ | 30,096,351 | ||||||||
Net realized gain (loss) |
129,175 | (315,881 | ) | (1,091,167 | ) | (5,596,532 | ) | |||||||||
Net change in unrealized appreciation/depreciation |
2,021,414 | (901,708 | ) | 43,412,707 | (17,120,105 | ) | ||||||||||
Dividends to AMPS Shareholders from: | ||||||||||||||||
Net investment income |
(32,567 | ) | (55,571 | ) |
|
|
|
|
(806,882 |
) | ||||||
Net realized gain |
| (1,626 | ) | | | |||||||||||
|
|
|
|
|||||||||||||
Net increase in net assets applicable to Common Shareholders resulting from operations |
3,977,212 | 721,397 |
|
69,883,973 |
|
|
6,572,832 |
| ||||||||
|
|
|
|
|||||||||||||
Dividends and Distributions to Common Shareholders From | ||||||||||||||||
Net investment income |
(1,935,977 | ) | (1,956,147 | ) |
|
(29,541,265 |
) |
|
(29,570,570 |
) | ||||||
Net realized gain |
| (45,287 | ) | | | |||||||||||
|
|
|
|
|||||||||||||
Decrease in net assets resulting from dividends and distributions to Common Shareholders |
(1,935,977 | ) | (2,001,434 | ) |
|
(29,541,265 |
) |
|
(29,570,570 |
) | ||||||
|
|
|
|
|||||||||||||
Capital Share Transactions | ||||||||||||||||
Reinvestment of common dividends |
76,471 | 133,575 |
|
1,786,582 |
|
|
1,469,492 |
| ||||||||
|
|
|
|
|||||||||||||
Net Assets Applicable to Common Shareholders | ||||||||||||||||
Total increase (decrease) in net assets applicable to Common Shareholders |
2,117,706 | (1,146,462 | ) | 42,129,290 | (21,528,246 | ) | ||||||||||
Beginning of year |
30,202,741 | 31,349,203 | 443,324,992 | 464,853,238 | ||||||||||||
|
|
|
|
|
|
|||||||||||
End of year |
$ | 32,320,447 | $ | 30,202,741 |
$ |
485,454,282 |
|
$ |
443,324,992 |
| ||||||
|
|
|
|
|||||||||||||
Undistributed net investment income |
$ | 472,802 | $ | 581,533 | $ | 8,069,904 | $ | 9,802,835 | ||||||||
|
|
|
|
See Notes to Financial Statements. | ||||||
ANNUAL REPORT | AUGUST 31, 2012 | 45 |
Statements of Changes in Net Assets |
BlackRock New Jersey Municipal Bond Trust (BLJ) |
BlackRock New York Municipal Bond Trust (BQH) |
|||||||||||||||
Year Ended August 31, | Year Ended August 31, | |||||||||||||||
Increase (Decrease) in Net Assets Applicable to Common Shareholders: | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Operations | ||||||||||||||||
Net investment income |
$ | 2,195,975 | $ | 2,320,726 | $ | 2,411,844 | $ | 2,902,420 | ||||||||
Net realized gain (loss) |
14,511 | (291,417 | ) | 645,688 | (131,149 | ) | ||||||||||
Net change in unrealized appreciation/depreciation |
4,912,434 | (1,269,096 | ) | 4,217,496 | (2,055,567 | ) | ||||||||||
Dividends and distributions to AMPS Shareholders from: | ||||||||||||||||
Net investment income |
(39,347 | ) | (65,738 | ) | (6,285 | ) | (78,727 | ) | ||||||||
Net realized gain |
| (2,508 | ) | | | |||||||||||
|
|
|
|
|||||||||||||
Net increase in net assets applicable to Common Shareholders resulting from operations |
7,083,573 | 691,967 | 7,268,743 | 636,977 | ||||||||||||
|
|
|
|
|||||||||||||
Dividends and Distributions to Common Shareholders From | ||||||||||||||||
Net investment income |
(2,163,456 | ) | (2,179,085 | ) | (2,675,085 | ) | (2,749,158 | ) | ||||||||
Net realized gain |
| (71,927 | ) | | | |||||||||||
|
|
|
|
|||||||||||||
Decrease in net assets resulting from dividends and distributions to Common Shareholders |
(2,163,456 | ) | (2,251,012 | ) | (2,675,085 | ) | (2,749,158 | ) | ||||||||
|
|
|
|
|||||||||||||
Capital Share Transactions | ||||||||||||||||
Reinvestment of common dividends |
54,801 | 34,562 | 165,299 | 101,725 | ||||||||||||
|
|
|
|
|||||||||||||
Net Assets Applicable to Common Shareholders | ||||||||||||||||
Total increase (decrease) in net assets applicable to Common Shareholders |
4,974,918 | (1,524,483 | ) | 4,758,957 | (2,010,456 | ) | ||||||||||
Beginning of year |
33,752,584 | 35,277,067 | 41,398,621 | 43,409,077 | ||||||||||||
|
|
|
|
|||||||||||||
End of year |
$ | 38,727,502 | $ | 33,752,584 | $ | 46,157,578 | $ | 41,398,621 | ||||||||
|
|
|
|
|||||||||||||
Undistributed net investment income |
$ | 678,200 | $ | 689,178 | $ | 627,501 | $ | 864,115 | ||||||||
|
|
|
|
See Notes to Financial Statements. | ||||||
46 | ANNUAL REPORT | AUGUST 31, 2012 |
Statements of Changes in Net Assets |
BlackRock New York Municipal Income Quality Trust (BSE) |
BlackRock New York Municipal Income Trust II (BFY) |
|||||||||||||||
Year Ended August 31, | Year Ended August 31, | |||||||||||||||
Increase (Decrease) in Net Assets Applicable to Common Shareholders: | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Operations | ||||||||||||||||
Net investment income |
$ | 5,226,896 | $ | 5,832,757 | $ | 4,569,910 | $ | 5,210,348 | ||||||||
Net realized gain (loss) |
141,369 | (1,493,236 | ) | 465,364 | (723,827 | ) | ||||||||||
Net change in unrealized appreciation/depreciation |
8,377,994 | (2,872,102 | ) | 7,050,292 | (2,654,238 | ) | ||||||||||
Dividends to AMPS Shareholders from net investment income |
(10,041 | ) | (143,341 | ) | (10,777 | ) | (158,107 | ) | ||||||||
|
|
|
|
|||||||||||||
Net increase in net assets applicable to Common Shareholders resulting from operations |
13,736,218 | 1,324,078 | 12,074,789 | 1,674,176 | ||||||||||||
|
|
|
|
|||||||||||||
Dividends to Common Shareholders From | ||||||||||||||||
Net investment income |
(5,571,369 | ) | (5,564,464 | ) | (4,948,459 | ) | (4,970,362 | ) | ||||||||
|
|
|
|
|||||||||||||
Capital Share Transactions | ||||||||||||||||
Reinvestment of common dividends |
289,307 | 34,961 | 284,695 | 240,851 | ||||||||||||
|
|
|
|
|||||||||||||
Net Assets Applicable to Common Shareholders | ||||||||||||||||
Total increase (decrease) in net assets applicable to Common Shareholders |
8,454,156 | (4,205,425 | ) | 7,411,025 | (3,055,335 | ) | ||||||||||
Beginning of year |
92,411,075 | 96,616,500 | 72,816,701 | 75,872,036 | ||||||||||||
|
|
|
|
|||||||||||||
End of year |
$ | 100,865,231 | $ | 92,411,075 | $ | 80,227,726 | $ | 72,816,701 | ||||||||
|
|
|
|
|||||||||||||
Undistributed net investment income |
$ | 1,360,150 | $ | 1,703,993 | $ | 1,223,739 | $ | 1,541,081 | ||||||||
|
|
|
|
See Notes to Financial Statements. | ||||||
ANNUAL REPORT | AUGUST 31, 2012 | 47 |
Statements of Changes in Net Assets |
BlackRock Virginia Municipal Bond Trust (BHV) |
The Massachusetts Health & Education Tax Exempt Trust (MHE) |
|||||||||||||||
Year Ended August 31, | Year Ended August 31, | |||||||||||||||
Increase (Decrease) in Net Assets Applicable to Common Shareholders: | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Operations | ||||||||||||||||
Net investment income |
$ | 1,525,058 | $ | 1,604,189 | $ | 1,975,543 | $ | 2,107,267 | ||||||||
Net realized loss |
(380,886 | ) | (218,047 | ) | (37,966 | ) | (292,136 | ) | ||||||||
Net change in unrealized appreciation/depreciation |
2,656,857 | (744,179 | ) | 3,226,643 | (979,510 | ) | ||||||||||
Dividends and distributions to AMPS Shareholders from: |
||||||||||||||||
Net investment income |
(23,764 | ) | (39,517 | ) | (35,328 | ) | (65,696 | ) | ||||||||
Net realized gain |
| (3,012 | ) | | | |||||||||||
|
|
|
|
|||||||||||||
Net increase in net assets applicable to Common Shareholders resulting from operations |
3,777,265 | 599,434 | 5,128,892 | 769,925 | ||||||||||||
|
|
|
|
|||||||||||||
Dividends and Distributions to Common Shareholders From | ||||||||||||||||
Net investment income |
(1,564,750 | ) | (1,577,765 | ) | (1,961,643 | ) | (1,974,575 | ) | ||||||||
Net realized gain |
| (122,390 | ) | | | |||||||||||
|
|
|
|
|||||||||||||
Decrease in net assets resulting from dividends and distributions to Common Shareholders |
(1,564,750 | ) | (1,700,155 | ) | (1,961,643 | ) | (1,974,575 | ) | ||||||||
|
|
|
|
|||||||||||||
Capital Share Transactions | ||||||||||||||||
Reinvestment of common dividends |
98,340 | 115,304 | 73,963 | 76,477 | ||||||||||||
|
|
|
|
|||||||||||||
Net Assets Applicable to Common Shareholders | ||||||||||||||||
Total increase (decrease) in net assets applicable to Common Shareholders |
2,310,855 | (985,417 | ) | 3,241,212 | (1,128,173 | ) | ||||||||||
Beginning of year |
24,155,382 | 25,140,799 | 30,610,713 | 31,738,886 | ||||||||||||
|
|
|
|
|||||||||||||
End of year |
$ | 26,466,237 | $ | 24,155,382 | $ | 33,851,925 | $ | 30,610,713 | ||||||||
|
|
|
|
|||||||||||||
Undistributed net investment income |
$ | 406,669 | $ | 477,043 | $ | 609,532 | $ | 630,251 | ||||||||
|
|
|
|
See Notes to Financial Statements. | ||||||
48 | ANNUAL REPORT | AUGUST 31, 2012 |
Statements of Cash Flows |
Year Ended August 31, 2012 | BlackRock Maryland Municipal Bond Trust (BZM) |
BlackRock MuniHoldings New York Quality Fund, Inc. (MHN) |
BlackRock New Jersey Municipal Bond Trust (BLJ) |
BlackRock New York Municipal Bond Trust (BQH) |
||||||||||||
Cash Provided by (Used for) Operating Activities | ||||||||||||||||
Net increase in net assets resulting from operations, excluding dividends to AMPS Shareholders |
$ | 4,009,779 | $ | 69,883,973 | $ | 7,122,920 | $ | 7,275,028 | ||||||||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities: |
||||||||||||||||
(Increase) decrease in interest receivable |
50,602 | (80,018 | ) | (28,483 | ) | 68,841 | ||||||||||
Decrease in income receivable affiliated |
26 | 311 | 24 | 25 | ||||||||||||
Decrease in cash pledged as collateral for financial futures contracts |
14,000 | | 16,560 | | ||||||||||||
(Increase) decrease in prepaid expenses |
8,004 | (23,042 | ) | 5,743 | 6,497 | |||||||||||
Decrease in other assets |
6,687 | 78,403 | 6,092 | 6,346 | ||||||||||||
Decrease in variation margin receivable |
1,778 | | 2,845 | | ||||||||||||
Increase in investment advisory fees payable |
3,592 | 56,289 | 6,527 | 8,575 | ||||||||||||
Increase (decrease) in interest expense and fees payable |
330 | (21,420 | ) | (221 | ) | 2,565 | ||||||||||
Decrease in other accrued expenses payable |
(33,199 | ) | (133,149 | ) | (39,902 | ) | (19,750 | ) | ||||||||
Increase (decrease) in Officers and Trustees fees payable |
170 | 31,235 | 234 | (1,223 | ) | |||||||||||
Net realized and unrealized gain on investments |
(2,249,777 | ) | (43,711,265 | ) | (5,061,110 | ) | (4,994,282 | ) | ||||||||
Amortization of premium and accretion of discount on investments |
58,376 | 733,281 | (61,328 | ) | (102,708 | ) | ||||||||||
Amortization of deferred offering costs |
626 | 518,126 | 626 | 36,433 | ||||||||||||
Proceeds from sales of long-term investments |
14,030,025 | 111,982,026 | 14,163,170 | 32,299,476 | ||||||||||||
Purchases of long-term investments |
(18,003,386 | ) | (120,743,205 | ) | (16,946,633 | ) | (36,155,661 | ) | ||||||||
Net proceeds from sales (purchases) of short-term securities |
3,167,763 | 3,637,507 | 359,943 | (2,293,666 | ) | |||||||||||
|
|
|||||||||||||||
Cash provided by (used for) operating activities |
1,065,396 | 22,209,052 | (452,993 | ) | (3,863,504 | ) | ||||||||||
|
|
|||||||||||||||
Cash Provided by (Used for) Financing Activities | ||||||||||||||||
Cash receipts from issuance of VRDP Shares |
16,000,000 | | 18,700,000 | 22,100,000 | ||||||||||||
Cash payments on redemption of AMPS |
(16,000,000 | ) | | (18,775,000 | ) | (22,125,000 | ) | |||||||||
Cash receipts from TOB trust certificates |
899,847 | 37,308,107 | 2,734,505 | 6,655,938 | ||||||||||||
Cash payments for TOB trust certificates |
| (31,543,887 | ) | | | |||||||||||
Cash dividends paid to Common Shareholders |
(1,885,024 | ) | (27,745,344 | ) | (2,120,001 | ) | (2,531,229 | ) | ||||||||
Cash dividends paid to AMPS Shareholders |
(33,369 | ) | | (39,661 | ) | (6,460 | ) | |||||||||
Cash payments for offering costs |
(46,850 | ) | (303,169 | ) | (46,850 | ) | (206,870 | ) | ||||||||
Increase in bank overdraft |
| 2,349 | | | ||||||||||||
|
|
|||||||||||||||
Cash provided by (used for) financing activities |
(1,065,396 | ) | (22,281,944 | ) | 452,993 | 3,886,379 | ||||||||||
|
|
|||||||||||||||
Cash | ||||||||||||||||
Net increase (decrease) in cash |
| (72,892 | ) | | 22,875 | |||||||||||
Cash at beginning of year |
| 72,892 | | | ||||||||||||
|
|
|||||||||||||||
Cash at end of year |
| | | $ | 22,875 | |||||||||||
|
|
|||||||||||||||
Cash Flow Information | ||||||||||||||||
Cash paid during the year for interest and fees |
$ | 50,853 | $ | 1,484,128 | $ | 66,160 | $ | 93,927 | ||||||||
|
|
|||||||||||||||
Non-cash Financing Activities | ||||||||||||||||
Capital shares issued in reinvestment of dividends paid to Common Shareholders |
$ | 76,471 | $ | 1,786,582 | $ | 54,801 | $ | 165,299 | ||||||||
|
|
A Statement of Cash Flows is presented when a Trust had a significant amount of borrowing during the year, based on the average borrowing outstanding in relation to average total assets.
See Notes to Financial Statements. | ||||||
ANNUAL REPORT | AUGUST 31, 2012 | 49 |
Statements of Cash Flows (concluded) |
Year Ended August 31, 2012 | BlackRock New York Municipal Income (BSE) |
BlackRock New York Municipal Income Trust II (BFY) |
BlackRock Virginia Municipal Bond Trust (BHV) |
The Health & Education Tax-Exempt Trust (MHE) |
||||||||||||
Cash Provided by (Used for) Operating Activities | ||||||||||||||||
Net increase in net assets resulting from operations, excluding dividends to AMPS Shareholders |
$ | 13,746,259 | $ | 12,085,566 | $ | 3,801,029 | $ | 5,164,220 | ||||||||
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used for) operating activities: |
||||||||||||||||
(Increase) decrease in interest receivable |
(131,273 | ) | (76,738 | ) | 32,556 | (23,240 | ) | |||||||||
Decrease in income receivable affiliated |
18 | 28 | 16 | | ||||||||||||
Decrease in cash pledged as collateral for financial futures contracts |
| | 14,000 | 14,960 | ||||||||||||
Decrease in prepaid expenses |
22,951 | 15,519 | 8,076 | 10,536 | ||||||||||||
Decrease in other assets |
4,515 | 6,982 | 4,042 | | ||||||||||||
Decrease in variation margin receivable |
| | 1,777 | 2,845 | ||||||||||||
Increase in investment advisory fees payable |
8,395 | 11,683 | 3,904 | 1,609 | ||||||||||||
Increase (decrease) in interest expense and fees payable |
795 | 2,348 | (683 | ) | 248 | |||||||||||
Decrease in other accrued expenses payable |
(2,004 | ) | (18,008 | ) | (48,098 | ) | (10,621 | ) | ||||||||
Increase (decrease) in Officers and Trustees fees payable |
(30 | ) | (421 | ) | 66 | (6 | ) | |||||||||
Net realized and unrealized gain on investments |
(8,811,358 | ) | (7,746,520 | ) | (2,377,338 | ) | (3,296,871 | ) | ||||||||
Amortization of premium and accretion of discount on investments |
144,241 | (86,693 | ) | 46,633 | 83,844 | |||||||||||
Amortization of deferred offering costs |
63,284 | 68,782 | 626 | 709 | ||||||||||||
Proceeds from sales of long-term investments |
35,993,423 | 31,339,547 | 8,983,264 | 8,502,633 | ||||||||||||
Purchases of long-term investments |
(47,577,762 | ) | (40,117,961 | ) | (10,987,392 | ) | (9,803,524 | ) | ||||||||
Net proceeds from sales (purchases) of short-term securities |
2,230,929 | 2,144,431 | 49,660 | 681,949 | ||||||||||||
|
|
|||||||||||||||
Cash provided by (used for) operating activities |
(4,307,617 | ) | (2,371,455 | ) | (467,862 | ) | 1,329,291 | |||||||||
|
|
|||||||||||||||
Cash Provided by (Used for) Financing Activities | ||||||||||||||||
Cash receipts from issuance of VRDP Shares |
40,500,000 | 44,400,000 | 11,600,000 | 18,500,000 | ||||||||||||
Cash payments on redemption of AMPS |
(40,575,000 | ) | (44,475,000 | ) | (11,675,000 | ) | (18,500,000 | ) | ||||||||
Cash receipts from TOB trust certificates |
19,230,598 | 7,431,319 | 2,087,934 | 670,000 | ||||||||||||
Cash payments for TOB trust certificates |
(9,308,740 | ) | | | | |||||||||||
Cash dividends paid to Common Shareholders |
(5,280,696 | ) | (4,674,676 | ) | (1,473,873 | ) | (1,904,999 | ) | ||||||||
Cash dividends paid to AMPS Shareholders |
(12,075 | ) | (13,378 | ) | (24,349 | ) | (35,942 | ) | ||||||||
Cash payments for offering costs |
(246,491 | ) | (248,009 | ) | (46,850 | ) | (58,350 | ) | ||||||||
|
|
|||||||||||||||
Cash provided by (used for) financing activities |
4,307,596 | 2,420,256 | 467,862 | (1,329,291 | ) | |||||||||||
|
|
|||||||||||||||
Cash | ||||||||||||||||
Net increase (decrease) in cash |
(21 | ) | 48,801 | | | |||||||||||
Cash at beginning of year |
21 | | | | ||||||||||||
|
|
|||||||||||||||
Cash at end of year |
| $ | 48,801 | | | |||||||||||
|
|
|||||||||||||||
Cash Flow Information | ||||||||||||||||
Cash paid during the year for interest and fees |
$ | 240,327 | $ | 178,715 | $ | 53,498 | $ | 54,516 | ||||||||
|
|
|||||||||||||||
Non-cash Financing Activities | ||||||||||||||||
Capital shares issued in reinvestment of dividends paid to Common Shareholders |
$ | 289,307 | $ | 284,695 | $ | 98,340 | $ | 73,963 | ||||||||
|
|
A Statement of Cash Flows is presented when a Trust had a significant amount of borrowing during the year, based on the average borrowing outstanding in relation to average total assets.
See Notes to Financial Statements. | ||||||
50 | ANNUAL REPORT | AUGUST 31, 2012 |
Financial Highlights | BlackRock Maryland Municipal Bond Trust (BZM) |
Year Ended August 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of year |
$ | 14.61 | $ | 15.23 | $ | 13.81 | $ | 14.45 | $ | 14.91 | ||||||||||
|
|
|||||||||||||||||||
Net investment income1 |
0.90 | 0.97 | 1.02 | 0.96 | 1.07 | |||||||||||||||
Net realized and unrealized gain (loss) |
1.05 | (0.59 | ) | 1.29 | (0.68 | ) | (0.36 | ) | ||||||||||||
Dividends and distributions to AMPS Shareholders from: | ||||||||||||||||||||
Net investment income |
(0.02 | ) | (0.03 | ) | (0.03 | ) | (0.13 | ) | (0.28 | ) | ||||||||||
Net realized gain |
| (0.00 | )2 | | (0.00 | )2 | (0.01 | ) | ||||||||||||
|
|
|||||||||||||||||||
Net increase from investment operations |
1.93 | 0.35 | 2.28 | 0.15 | 0.42 | |||||||||||||||
|
|
|||||||||||||||||||
Dividends and distributions to Common Shareholders from: | ||||||||||||||||||||
Net investment income |
(0.94 | ) | (0.95 | ) | (0.86 | ) | (0.79 | ) | (0.87 | ) | ||||||||||
Net realized gain |
| (0.02 | ) | | (0.00 | )2 | (0.01 | ) | ||||||||||||
|
|
|||||||||||||||||||
Total dividends and distributions to Common Shareholders |
(0.94 | ) | (0.97 | ) | (0.86 | ) | (0.79 | ) | (0.88 | ) | ||||||||||
|
|
|||||||||||||||||||
Net asset value, end of year |
$ | 15.60 | $ | 14.61 | $ | 15.23 | $ | 13.81 | $ | 14.45 | ||||||||||
|
|
|||||||||||||||||||
Market price, end of year |
$ | 18.43 | $ | 15.02 | $ | 15.91 | $ | 15.35 | $ | 15.75 | ||||||||||
|
|
|||||||||||||||||||
Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||
Based on net asset value |
13.08% | 2.45% | 16.80% | 1.52% | 2.60% | |||||||||||||||
|
|
|||||||||||||||||||
Based on market price |
29.95% | 0.83% | 9.77% | 3.53% | (4.33)% | |||||||||||||||
|
|
|||||||||||||||||||
Ratio to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||
Total expenses4 |
1.66% | 1.58% | 1.56% | 1.83% | 1.70% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and before fees paid indirectly4 |
1.60% | 1.45% | 1.35% | 1.50% | 1.32% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly4 |
1.60% | 1.45% | 1.35% | 1.50% | 1.32% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs4,5 |
1.44% | 6 | 1.41% | 1.31% | 1.39% | 1.28% | ||||||||||||||
|
|
|||||||||||||||||||
Net investment income4 |
5.94% | 6.73% | 6.95% | 7.62% | 7.19% | |||||||||||||||
|
|
|||||||||||||||||||
Dividends to AMPS Shareholders |
0.10% | 0.19% | 0.21% | 1.04% | 1.89% | |||||||||||||||
|
|
|||||||||||||||||||
Net investment income to Common Shareholders |
5.84% | 6.54% | 6.74% | 6.58% | 5.30% | |||||||||||||||
|
|
|||||||||||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets applicable to Common Shareholders, end of year (000) |
$ | 32,320 | $ | 30,203 | $ | 31,349 | $ | 28,310 | $ | 29,488 | ||||||||||
|
|
|||||||||||||||||||
AMPS Shares outstanding at $25,000 liquidation preference, end of year (000) |
| $ | 16,000 | $ | 16,000 | $ | 16,000 | $ | 16,000 | |||||||||||
|
|
|||||||||||||||||||
VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$ | 16,000 | | | | | ||||||||||||||
|
|
|||||||||||||||||||
Portfolio turnover |
30% | 11% | 13% | 9% | 15% | |||||||||||||||
|
|
|||||||||||||||||||
Asset coverage per AMPS at $25,000 liquidation preference, end of year |
| $ | 72,192 | $ | 73,985 | $ | 69,235 | $ | 71,083 | |||||||||||
|
|
|||||||||||||||||||
Asset coverage per VRDP Share at $100,000 liquidation value, end of year |
$ | 302,003 | | | | | ||||||||||||||
|
|
1 | Based on average Common Shares outstanding. |
2 | Amount is less than $(0.01) per share. |
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 | Do not reflect the effect of dividends to AMPS Shareholders. |
5 | 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. |
6 | For the year ended August 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 1.40%. |
See Notes to Financial Statements. | ||||||
ANNUAL REPORT | AUGUST 31, 2012 | 51 |
Financial Highlights | BlackRock MuniHoldings New York Quality Fund, Inc. (MHN) |
Year Ended August 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of year |
$ | 14.34 | $ | 15.09 | $ | 13.74 | $ | 13.92 | $ | 14.40 | ||||||||||
|
|
|||||||||||||||||||
Net investment income1 |
0.89 | 0.97 | 1.04 | 0.94 | 0.98 | |||||||||||||||
Net realized and unrealized gain (loss) |
1.36 | (0.73 | ) | 1.21 | (0.30 | ) | (0.48 | ) | ||||||||||||
Dividends to AMPS Shareholders from net investment income |
| (0.03 | ) | (0.03 | ) | (0.14 | ) | (0.32 | ) | |||||||||||
|
|
|||||||||||||||||||
Net increase from investment operations |
2.25 | 0.21 | 2.22 | 0.50 | 0.18 | |||||||||||||||
|
|
|||||||||||||||||||
Dividends to Common Shareholders from net investment income |
(0.95 | ) | (0.96 | ) | (0.87 | ) | (0.68 | ) | (0.66 | ) | ||||||||||
|
|
|||||||||||||||||||
Net asset value, end of year |
$ | 15.64 | $ | 14.34 | $ | 15.09 | $ | 13.74 | $ | 13.92 | ||||||||||
|
|
|||||||||||||||||||
Market price, end of year |
$ | 15.86 | $ | 13.90 | $ | 15.17 | $ | 12.89 | $ | 12.12 | ||||||||||
|
|
|||||||||||||||||||
Total Investment Return Applicable to Common Shareholders2 | ||||||||||||||||||||
Based on net asset value |
16.15% | 1.85% | 16.87% | 5.19% | 1.74% | |||||||||||||||
|
|
|||||||||||||||||||
Based on market price |
21.52% | (1.80)% | 25.24% | 13.34% | (5.72)% | |||||||||||||||
|
|
|||||||||||||||||||
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||
Total expenses |
1.95% | 1.47% | 3 | 1.29% | 3 | 1.55% | 3 | 1.65% | 3 | |||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and before fees paid indirectly |
1.87% | 1.36% | 3 | 1.14% | 3 | 1.35% | 3 | 1.52% | 3 | |||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly |
1.87% | 1.36% | 3 | 1.14% | 3 | 1.35% | 3 | 1.52% | 3 | |||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs4 |
1.45% | 5 | 1.18% | 3 | 1.02% | 3 | 1.05% | 3 | 1.15% | 3 | ||||||||||
|
|
|||||||||||||||||||
Net investment income |
5.89% | 6.98% | 3 | 7.24% | 3 | 7.45% | 3 | 6.90% | 3 | |||||||||||
|
|
|||||||||||||||||||
Dividends to AMPS Shareholders |
| 0.19% | 0.23% | 1.09% | 2.24% | |||||||||||||||
|
|
|||||||||||||||||||
Net investment income to Common Shareholders |
5.89% | 6.79% | 7.01% | 6.36% | 4.66% | |||||||||||||||
|
|
|||||||||||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets applicable to Common Shareholders, end of year (000) |
$ | 485,454 | $ | 443,325 | $ | 464,853 | $ | 422,983 | $ | 428,547 | ||||||||||
|
|
|||||||||||||||||||
AMPS outstanding at $25,000 liquidation preference, end of year (000) |
| | $ | 243,625 | $ | 243,625 | $ | 252,875 | ||||||||||||
|
|
|||||||||||||||||||
VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$ | 243,600 | $ | 243,600 | | | | |||||||||||||
|
|
|||||||||||||||||||
Portfolio turnover |
14% | 18% | 10% | 18% | 21% | |||||||||||||||
|
|
|||||||||||||||||||
Asset coverage per AMPS at $25,000 liquidation preference, end of year |
| | $ | 72,703 | $ | 68,407 | $ | 67,379 | ||||||||||||
|
|
|||||||||||||||||||
Asset coverage per VRDP Share at $100,000 liquidation value, end of year |
$ | 299,283 | $ | 281,989 | | | | |||||||||||||
|
|
1 | Based on average Common Shares outstanding. |
2 | Total investment returns based on market value, which can be significantly greater or lesser than the net asset value, may result in substantially different returns. Where applicable, total investment returns exclude the effects of any sales charges and include the reinvestment of dividends and distributions. |
3 | Do not reflect the effect of dividends to AMPS Shareholders. |
4 | 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. |
5 | For the year ended August 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 1.02%. |
See Notes to Financial Statements. | ||||||
52 | ANNUAL REPORT | AUGUST 31, 2012 |
Financial Highlights | BlackRock New Jersey Municipal Bond Trust (BLJ) |
Year Ended August 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of year |
$ | 14.55 | $ | 15.23 | $ | 13.53 | $ | 14.16 | $ | 15.38 | ||||||||||
|
|
|||||||||||||||||||
Net investment income1 |
0.95 | 1.00 | 1.05 | 1.05 | 1.14 | |||||||||||||||
Net realized and unrealized gain (loss) |
2.12 | (0.68 | ) | 1.61 | (0.68 | ) | (1.11 | ) | ||||||||||||
Dividends and distributions to AMPS Shareholders from: |
||||||||||||||||||||
Net investment income |
(0.02 | ) | (0.03 | ) | (0.03 | ) | (0.14 | ) | (0.29 | ) | ||||||||||
Net realized gain |
| (0.00 | )2 | | | (0.00 | )2 | |||||||||||||
|
|
|||||||||||||||||||
Net increase (decrease) from investment operations |
3.05 | 0.29 | 2.63 | 0.23 | (0.26 | ) | ||||||||||||||
|
|
|||||||||||||||||||
Dividends and distributions to Common Shareholders from: |
||||||||||||||||||||
Net investment income |
(0.93 | ) | (0.94 | ) | (0.93 | ) | (0.86 | ) | (0.95 | ) | ||||||||||
Net realized gain |
| (0.03 | ) | | | (0.01 | ) | |||||||||||||
|
|
|||||||||||||||||||
Total dividends and distributions to Common Shareholders |
(0.93 | ) | (0.97 | ) | (0.93 | ) | (0.86 | ) | (0.96 | ) | ||||||||||
|
|
|||||||||||||||||||
Net asset value, end of year |
$ | 16.67 | $ | 14.55 | $ | 15.23 | $ | 13.53 | $ | 14.16 | ||||||||||
|
|
|||||||||||||||||||
Market price, end of year |
$ | 16.66 | $ | 13.60 | $ | 15.63 | $ | 13.59 | $ | 14.76 | ||||||||||
|
|
|||||||||||||||||||
Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||
Based on net asset value |
21.52% | 2.46% | 20.04% | 2.50% | (2.12)% | |||||||||||||||
|
|
|||||||||||||||||||
Based on market price |
29.94% | (6.68)% | 22.65% | (1.23)% | (7.15)% | |||||||||||||||
|
|
|||||||||||||||||||
Ratio to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||
Total expenses4 |
1.65% | 1.57% | 1.54% | 1.72% | 1.67% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and before fees paid indirectly4 |
1.59% | 1.43% | 1.32% | 1.36% | 1.28% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly4 |
1.59% | 1.43% | 1.32% | 1.36% | 1.28% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs4,5 |
1.41% | 6 | 1.41% | 1.31% | 1.34% | 1.26% | ||||||||||||||
|
|
|||||||||||||||||||
Net investment income4 |
6.01% | 7.08% | 7.32% | 8.55% | 7.64% | |||||||||||||||
|
|
|||||||||||||||||||
Dividends to AMPS Shareholders |
0.11% | 0.20% | 0.24% | 1.14% | 1.97% | |||||||||||||||
|
|
|||||||||||||||||||
Net investment income to Common Shareholders |
5.90% | 6.88% | 7.08% | 7.41% | 5.67% | |||||||||||||||
|
|
|||||||||||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets applicable to Common Shareholders, end of year (000) |
$ | 38,728 | $ | 33,753 | $ | 35,277 | $ | 31,239 | $ | 32,584 | ||||||||||
|
|
|||||||||||||||||||
AMPS outstanding at $25,000 liquidation preference, end of year (000) |
| $ | 18,775 | $ | 18,775 | $ | 18,775 | $ | 19,200 | |||||||||||
|
|
|||||||||||||||||||
VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$ | 18,700 | | | | | ||||||||||||||
|
|
|||||||||||||||||||
Portfolio turnover |
25% | 19% | 18% | 28% | 17% | |||||||||||||||
|
|
|||||||||||||||||||
Asset coverage per AMPS at $25,000 liquidation preference, end of year |
| $ | 69,944 | $ | 71,974 | $ | 66,600 | $ | 67,439 | |||||||||||
|
|
|||||||||||||||||||
Asset coverage per VRDP Share at $100,000 liquidation value, end of year |
$ | 307,099 | | | | | ||||||||||||||
|
|
1 | Based on average Common Shares outstanding. |
2 | Amount is less than $(0.01) per share. |
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 | Do not reflect the effect of dividends to AMPS Shareholders. |
5 | 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. |
6 | For the year ended August 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 1.34% |
See Notes to Financial Statements. | ||||||
ANNUAL REPORT | AUGUST 31, 2012 | 53 |
Financial Highlights | BlackRock New York Municipal Bond Trust (BQH) |
Year Ended August 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of year |
$ | 14.89 | $ | 15.65 | $ | 14.56 | $ | 14.71 | $ | 15.39 | ||||||||||
|
|
|||||||||||||||||||
Net investment income1 |
0.87 | 1.04 | 1.07 | 1.08 | 1.14 | |||||||||||||||
Net realized and unrealized gain (loss) |
1.73 | (0.78 | ) | 1.09 | (0.24 | ) | (0.57 | ) | ||||||||||||
Dividends and distributions to AMPS Shareholders from: |
||||||||||||||||||||
Net investment income |
(0.00 | )2 | (0.03 | ) | (0.03 | ) | (0.14 | ) | (0.29 | ) | ||||||||||
Net realized gain |
| (0.00 | )2 | (0.01 | ) | (0.00 | )2 | (0.01 | ) | |||||||||||
|
|
|||||||||||||||||||
Net increase from investment operations |
2.60 | 0.23 | 2.12 | 0.70 | 0.27 | |||||||||||||||
|
|
|||||||||||||||||||
Dividends to Common Shareholders from: |
||||||||||||||||||||
Net investment income |
(0.96 | ) | (0.99 | ) | (0.94 | ) | (0.85 | ) | (0.93 | ) | ||||||||||
Net realized gain |
| (0.00 | )2 | (0.09 | ) | (0.00 | )2 | (0.02 | ) | |||||||||||
|
|
|||||||||||||||||||
Total dividends and distributions to Common Shareholders |
(0.96 | ) | (0.99 | ) | (1.03 | ) | (0.85 | ) | (0.95 | ) | ||||||||||
|
|
|||||||||||||||||||
Net asset value, end of year |
$ | 16.53 | $ | 14.89 | $ | 15.65 | $ | 14.56 | $ | 14.71 | ||||||||||
|
|
|||||||||||||||||||
Market price, end of year |
$ | 16.56 | $ | 14.83 | $ | 15.79 | $ | 14.32 | $ | 14.62 | ||||||||||
|
|
|||||||||||||||||||
Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||
Based on net asset value |
17.99% | 1.81% | 15.18% | 5.97% | 1.62% | |||||||||||||||
|
|
|||||||||||||||||||
Based on market price |
18.68% | 0.50% | 18.15% | 4.87% | (4.76)% | |||||||||||||||
|
|
|||||||||||||||||||
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||
Total expenses4 |
2.26% | 1.50% | 1.49% | 1.61% | 1.63% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and before fees paid indirectly4 |
2.20% | 1.37% | 1.27% | 1.30% | 1.25% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly4 |
2.20% | 1.37% | 1.27% | 1.30% | 1.25% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs4,5 |
1.90% | 6 | 1.36% | 1.24% | 1.25% | 1.23% | ||||||||||||||
|
|
|||||||||||||||||||
Net investment income4 |
5.52% | 7.12% | 7.07% | 8.06% | 7.45% | |||||||||||||||
|
|
|||||||||||||||||||
Dividends to AMPS Shareholders |
0.02% | 0.19% | 0.19% | 1.01% | 1.90% | |||||||||||||||
|
|
|||||||||||||||||||
Net investment income to Common Shareholders |
5.50% | 6.93% | 6.88% | 7.05% | 5.55% | |||||||||||||||
|
|
|||||||||||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets applicable to Common Shareholders, end of year (000) |
$ | 46,158 | $ | 41,399 | $ | 43,409 | $ | 40,204 | $ | 40,603 | ||||||||||
|
|
|||||||||||||||||||
AMPS outstanding at $25,000 liquidation preference, end of year (000) |
| $ | 22,125 | $ | 22,125 | $ | 22,125 | $ | 22,400 | |||||||||||
|
|
|||||||||||||||||||
VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$ | 22,100 | | | | | ||||||||||||||
|
|
|||||||||||||||||||
Portfolio turnover |
45% | 14% | 22% | 30% | 19% | |||||||||||||||
|
|
|||||||||||||||||||
Asset coverage per AMPS at $25,000 liquidation preference, end of year |
| $ | 71,778 | $ | 74,052 | $ | 70,431 | $ | 70,327 | |||||||||||
|
|
|||||||||||||||||||
Asset coverage per VRDP Share at $100,000 liquidation value, end of year |
$ | 308,858 | | | | | ||||||||||||||
|
|
1 | Based on average Common Shares outstanding. |
2 | Amount is less than $(0.01) per share. |
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 | Do not reflect the effect of dividends to AMPS Shareholders. |
5 | 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. |
6 | For the year ended August 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 1.45%. |
See Notes to Financial Statements. | ||||||
54 | ANNUAL REPORT | AUGUST 31, 2012 |
Financial Highlights | BlackRock New York Municipal Income Quality Trust (BSE) |
Year Ended August 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of year |
$ | 14.25 | $ | 14.90 | $ | 13.61 | $ | 13.95 | $ | 14.58 | ||||||||||
|
|
|||||||||||||||||||
Net investment income1 |
0.81 | 0.90 | 0.91 | 0.88 | 0.96 | |||||||||||||||
Net realized and unrealized gain (loss) |
1.31 | (0.67 | ) | 1.23 | (0.39 | ) | (0.60 | ) | ||||||||||||
Dividends and distributions to AMPS Shareholders from: | ||||||||||||||||||||
Net investment income |
(0.00 | )2 | (0.02 | ) | (0.03 | ) | (0.11 | ) | (0.25 | ) | ||||||||||
Net realized gain |
| | | | (0.01 | ) | ||||||||||||||
|
|
|||||||||||||||||||
Net increase (decrease) from investment operations |
2.12 | 0.21 | 2.11 | 0.38 | 0.10 | |||||||||||||||
|
|
|||||||||||||||||||
Dividends and distributions to Common Shareholders from: | ||||||||||||||||||||
Net investment income |
(0.86 | ) | (0.86 | ) | (0.82 | ) | (0.72 | ) | (0.70 | ) | ||||||||||
Net realized gain |
| | | | (0.03 | ) | ||||||||||||||
|
|
|||||||||||||||||||
Total dividends and distributions to Common Shareholders |
(0.86 | ) | (0.86 | ) | (0.82 | ) | (0.72 | ) | (0.73 | ) | ||||||||||
|
|
|||||||||||||||||||
Net asset value, end of year |
$ | 15.51 | $ | 14.25 | $ | 14.90 | $ | 13.61 | $ | 13.95 | ||||||||||
|
|
|||||||||||||||||||
Market price, end of year |
$ | 15.74 | $ | 13.54 | $ | 14.91 | $ | 13.15 | $ | 13.26 | ||||||||||
|
|
|||||||||||||||||||
Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||
Based on net asset value |
15.23% | 1.94% | 16.04% | 3.98% | 0.80% | |||||||||||||||
|
|
|||||||||||||||||||
Based on market price |
23.07% | (3.20)% | 20.18% | 5.70% | (1.07)% | |||||||||||||||
|
|
|||||||||||||||||||
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||
Total expenses4 |
1.82% | 1.28% | 1.21% | 1.53% | 1.34% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and before paid indirectly4 |
1.82% | 1.26% | 1.12% | 1.33% | 1.09% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly4 |
1.82% | 1.26% | 1.12% | 1.33% | 1.09% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs4,5 |
1.50% | 6 | 1.17% | 1.03% | 1.05% | 0.99% | ||||||||||||||
|
|
|||||||||||||||||||
Net investment income4 |
5.38% | 6.50% | 6.45% | 7.16% | 6.59% | |||||||||||||||
|
|
|||||||||||||||||||
Dividends to AMPS Shareholders |
0.01% | 0.16% | 0.18% | 0.88% | 1.74% | |||||||||||||||
|
|
|||||||||||||||||||
Net investment income to Common Shareholders |
5.37% | 6.34% | 6.27% | 6.28% | 4.85% | |||||||||||||||
|
|
|||||||||||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets applicable to Common Shareholders, end of year (000) |
$ | 100,865 | $ | 92,411 | $ | 96,617 | $ | 88,141 | $ | 90,331 | ||||||||||
|
|
|||||||||||||||||||
AMPS outstanding at $25,000 liquidation preference, end of year (000) |
| $ | 40,575 | $ | 40,575 | $ | 40,575 | $ | 41,675 | |||||||||||
|
|
|||||||||||||||||||
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 40,500 | | | | | ||||||||||||||
|
|
|||||||||||||||||||
Portfolio turnover |
24% | 24% | 8% | 23% | 24% | |||||||||||||||
|
|
|||||||||||||||||||
Asset coverage per AMPS at $25,000 liquidation preference, end of year |
| $ | 81,938 | $ | 84,531 | $ | 79,309 | $ | 79,196 | |||||||||||
|
|
|||||||||||||||||||
Asset coverage per VRDP Share at $100,000 liquidation value, end of period |
$ | 349,050 | | | | | ||||||||||||||
|
|
1 | Based on average Common Shares outstanding. |
2 | Amount is less than $(0.01) per share. |
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 | Do not reflect the effect of dividends to AMPS Shareholders. |
5 | 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. |
6 | For the year ended August 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 1.13%. |
See Notes to Financial Statements. | ||||||
ANNUAL REPORT | AUGUST 31, 2012 | 55 |
Financial Highlights | BlackRock New York Municipal Income Trust II (BFY) |
Year Ended August 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of year |
$ | 14.66 | $ | 15.33 | $ | 14.03 | $ | 14.28 | $ | 14.84 | ||||||||||
|
|
|||||||||||||||||||
Net investment income1 |
0.92 | 1.05 | 1.06 | 1.06 | 1.08 | |||||||||||||||
Net realized and unrealized gain (loss) |
1.50 | (0.69 | ) | 1.25 | (0.36 | ) | (0.55 | ) | ||||||||||||
Dividends and distributions to AMPS Shareholders from: | ||||||||||||||||||||
Net investment income |
(0.00 | )2 | (0.03 | ) | (0.04 | ) | (0.15 | ) | (0.29 | ) | ||||||||||
Net realized gain |
| | | | (0.01 | ) | ||||||||||||||
|
|
|||||||||||||||||||
Net increase from investment operations |
2.42 | 0.33 | 2.27 | 0.55 | 0.23 | |||||||||||||||
|
|
|||||||||||||||||||
Dividends and distributions to Common Shareholders from: | ||||||||||||||||||||
Net investment income |
(0.99 | ) | (1.00 | ) | (0.97 | ) | (0.80 | ) | (0.77 | ) | ||||||||||
Net realized gain |
| | | | (0.02 | ) | ||||||||||||||
|
|
|||||||||||||||||||
Total dividends and distributions to Common Shareholders |
(0.99 | ) | (1.00 | ) | (0.97 | ) | (0.80 | ) | (0.79 | ) | ||||||||||
|
|
|||||||||||||||||||
Net asset value, end of year |
$ | 16.09 | $ | 14.66 | $ | 15.33 | $ | 14.03 | $ | 14.28 | ||||||||||
|
|
|||||||||||||||||||
Market price, end of year |
$ | 16.81 | $ | 14.38 | $ | 15.48 | $ | 14.00 | $ | 13.60 | ||||||||||
|
|
|||||||||||||||||||
Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||
Based on net asset value |
17.00% | 2.56% | 16.69% | 5.23% | 1.70% | |||||||||||||||
|
|
|||||||||||||||||||
Based on market price |
24.61% | (0.37)% | 18.09% | 10.26% | 1.08% | |||||||||||||||
|
|
|||||||||||||||||||
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||
Total expenses4 |
2.03% | 1.27% | 1.21% | 1.33% | 1.30% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and before fees paid indirectly4 |
1.95% | 1.18% | 1.13% | 1.16% | 1.13% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly4 |
1.95% | 1.18% | 1.13% | 1.16% | 1.13% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs4,5 |
1.62% | 6 | 1.18% | 1.13% | 1.16% | 1.13% | ||||||||||||||
|
|
|||||||||||||||||||
Net investment income4 |
5.96% | 7.34% | 7.21% | 8.17% | 7.33% | |||||||||||||||
|
|
|||||||||||||||||||
Dividends to AMPS Shareholders |
0.01% | 0.22% | 0.25% | 1.19% | 1.94% | |||||||||||||||
|
|
|||||||||||||||||||
Net investment income to Common Shareholders |
5.95% | 7.12% | 6.96% | 6.98% | 5.39% | |||||||||||||||
|
|
|||||||||||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets applicable to Common Shareholders, end of year (000) |
$ | 80,228 | $ | 72,817 | $ | 75,872 | $ | 69,315 | $ | 70,544 | ||||||||||
|
|
|||||||||||||||||||
AMPS outstanding at $25,000 liquidation preference, end of year (000) |
| $ | 44,475 | $ | 44,475 | $ | 44,475 | $ | 44,650 | |||||||||||
|
|
|||||||||||||||||||
VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$ | 44,400 | | | | | ||||||||||||||
|
|
|||||||||||||||||||
Portfolio turnover |
25% | 20% | 16% | 16% | 12% | |||||||||||||||
|
|
|||||||||||||||||||
Asset coverage per AMPS at $25,000 liquidation preference, end of year |
| $ | 65,931 | $ | 67,651 | $ | 63,965 | $ | 64,508 | |||||||||||
|
|
|||||||||||||||||||
Asset coverage per VRDP Share at $100,000 liquidation value, end of year |
$ | 280,693 | | | | | ||||||||||||||
|
|
1 | Based on average Common Shares outstanding. |
2 | Amount is less than $(0.01) per share. |
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 | Do not reflect the effect of dividends to AMPS Shareholders. |
5 | 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. |
6 | For the year ended August 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 1.11%. |
See Notes to Financial Statements. | ||||||
56 | ANNUAL REPORT | AUGUST 31, 2012 |
Financial Highlights | BlackRock Virginia Municipal Bond Trust (BHV) |
Year Ended August 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||
Net asset value, beginning of year |
$ | 15.33 | $ | 16.02 | $ | 15.05 | $ | 15.03 | $ | 15.57 | ||||||||||
|
|
|||||||||||||||||||
Net investment income1 |
0.97 | 1.02 | 1.04 | 1.02 | 1.11 | |||||||||||||||
Net realized and unrealized gain (loss) |
1.45 | (0.60 | ) | 1.19 | 0.20 | (0.45 | ) | |||||||||||||
Dividends and distributions to AMP Shareholders from: | ||||||||||||||||||||
Net investment income |
(0.02 | ) | (0.03 | ) | (0.02 | ) | (0.10 | ) | (0.30 | ) | ||||||||||
Net realized gain |
| (0.00 | )2 | (0.01 | ) | (0.05 | ) | | ||||||||||||
|
|
|||||||||||||||||||
Net increase from investment operations |
2.40 | 0.39 | 2.20 | 1.07 | 0.36 | |||||||||||||||
|
|
|||||||||||||||||||
Dividends and distributions to Common Shareholders from: | ||||||||||||||||||||
Net investment income |
(0.99 | ) | (1.00 | ) | (0.96 | ) | (0.89 | ) | (0.90 | ) | ||||||||||
Net realized gain |
| (0.08 | ) | (0.27 | ) | (0.16 | ) | | ||||||||||||
|
|
|||||||||||||||||||
Total dividends and distributions to Common Shareholders |
(0.99 | ) | (1.08 | ) | (1.23 | ) | (1.05 | ) | (0.90 | ) | ||||||||||
|
|
|||||||||||||||||||
Net asset value, end of year |
$ | 16.74 | $ | 15.33 | $ | 16.02 | $ | 15.05 | $ | 15.03 | ||||||||||
|
|
|||||||||||||||||||
Market price, end of year |
$ | 19.58 | $ | 17.77 | $ | 18.77 | $ | 17.50 | $ | 19.50 | ||||||||||
|
|
|||||||||||||||||||
Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||
Based on net asset value |
15.19% | 1.98% | 14.15% | 6.94% | 1.59% | |||||||||||||||
|
|
|||||||||||||||||||
Based on market price |
16.23% | 0.89% | 15.02% | (4.16)% | 14.97% | |||||||||||||||
|
|
|||||||||||||||||||
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||
Total expenses4 |
1.69% | 1.66% | 1.57% | 1.75% | 1.70% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and before fees paid indirectly4 |
1.64% | 1.52% | 1.36% | 1.45% | 1.34% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly4 |
1.64% | 1.52% | 1.36% | 1.45% | 1.34% | |||||||||||||||
|
|
|||||||||||||||||||
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs4,5 |
1.43% | 6 | 1.44% | 1.31% | 1.37% | 1.31% | ||||||||||||||
|
|
|||||||||||||||||||
Net investment income4 |
6.03% | 6.81% | 6.71% | 7.43% | 7.14% | |||||||||||||||
|
|
|||||||||||||||||||
Dividends to AMPS Shareholders |
0.09% | 0.17% | 0.16% | 0.72% | 1.90% | |||||||||||||||
|
|
|||||||||||||||||||
Net investment income to Common Shareholders |
5.94% | 6.64% | 6.55% | 6.71% | 5.24% | |||||||||||||||
|
|
|||||||||||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets applicable to Common Shareholders, end of year (000) |
$ | 26,466 | $ | 24,155 | $ | 25,141 | $ | 23,483 | $ | 23,347 | ||||||||||
|
|
|||||||||||||||||||
AMPS outstanding at $25,000 liquidation preference, end of year (000) |
| $ | 11,675 | $ | 11,675 | $ | 11,675 | $ | 12,175 | |||||||||||
|
|
|||||||||||||||||||
VRDP Shares outstanding at $100,000 liquidation value, end of year (000) |
$ | 11,600 | | | | | ||||||||||||||
|
|
|||||||||||||||||||
Portfolio turnover |
23% | 12% | 26% | 32% | 11% | |||||||||||||||
|
|
|||||||||||||||||||
Asset coverage per AMPS at $25,000 liquidation preference, end of year |
| $ | 76,725 | $ | 78,836 | $ | 75,286 | $ | 72,948 | |||||||||||
|
|
|||||||||||||||||||
Asset coverage per VRDP Share at $100,000 liquidation value, end of year |
$ | 328,157 | | | | | ||||||||||||||
|
|
1 | Based on average Common Shares outstanding. |
2 | Amount is less than $(0.01) per share. |
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 | Do not reflect the effect of dividends to AMPS Shareholders. |
5 | Interest expense, fees and amortization of offering costs relate to TOBs and/or VRDP Shares. See Note 1 and Note 7of the Notes to Financial Statements for details of municipal bonds transferred to TOBs and VRDP Shares, respectively. |
6 | For the year ended August 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 1.38%. |
See Notes to Financial Statements. | ||||||
ANNUAL REPORT | AUGUST 31, 2012 | 57 |
Financial Highlights | The Massachusetts Health & Education Tax-Exempt Trust (MHE) |
Year Ended August 31, 2012 | Period January 1, 2008 2008 |
Year Ended 2007 |
||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | |||||||||||||||||||||
Per Share Operating Performance | ||||||||||||||||||||||||
Net asset value, beginning of period |
$ | 13.01 | $ | 13.52 | $ | 12.19 | $ | 12.55 | $ | 13.10 | $ | 13.90 | ||||||||||||
|
|
|||||||||||||||||||||||
Net investment income1 |
0.84 | 0.90 | 0.89 | 0.83 | 0.59 | 0.92 | ||||||||||||||||||
Net realized and unrealized gain (loss) |
1.34 | (0.54 | ) | 1.31 | (0.43 | ) | (0.58 | ) | (0.82 | ) | ||||||||||||||
Dividends to AMPS Shareholders from net investment income |
(0.01 | ) | (0.03 | ) | (0.03 | ) | (0.13 | ) | (0.17 | ) | (0.31 | ) | ||||||||||||
|
|
|||||||||||||||||||||||
Net increase (decrease) from investment operations |
2.17 | 0.33 | 2.17 | 0.27 | (0.16 | ) | (0.21 | ) | ||||||||||||||||
|
|
|||||||||||||||||||||||
Dividends and distributions to Common Shareholders from: | ||||||||||||||||||||||||
Net investment income |
(0.83 | ) | (0.84 | ) | (0.84 | ) | (0.63 | ) | (0.39 | ) | (0.59 | ) | ||||||||||||
Net realized gain |
| | | | | (0.00 | )2 | |||||||||||||||||
|
|
|||||||||||||||||||||||
Total dividends and distributions to Common Shareholders |
(0.83 | ) | (0.84 | ) | (0.84 | ) | (0.63 | ) | (0.39 | ) | (0.59 | ) | ||||||||||||
|
|
|||||||||||||||||||||||
Net asset value, end of period |
$ | 14.35 | $ | 13.01 | $ | 13.52 | $ | 12.19 | $ | 12.55 | $ | 13.10 | ||||||||||||
|
|
|||||||||||||||||||||||
Market price, end of period |
$ | 14.91 | $ | 13.11 | $ | 13.98 | $ | 12.00 | $ | 11.22 | $ | 11.95 | ||||||||||||
|
|
|||||||||||||||||||||||
Total Investment Return Applicable to Common Shareholders3 | ||||||||||||||||||||||||
Based on net asset value |
17.02% | 2.78% | 18.40% | 3.29% | (1.01 | )%4 | (1.23)% | |||||||||||||||||
|
|
|||||||||||||||||||||||
Based on market price |
20.66% | 0.16% | 24.37% | 13.73% | (2.99 | )%4 | (4.40)% | |||||||||||||||||
|
|
|||||||||||||||||||||||
Ratios to Average Net Assets Applicable to Common Shareholders | ||||||||||||||||||||||||
Total expenses5 |
1.50% | 1.39% | 1.39% | 1.54% | 1.77% | 6 | 1.47% | |||||||||||||||||
|
|
|||||||||||||||||||||||
Total expenses after fees waived and before fees paid indirectly5 |
1.50% | 1.39% | 1.38% | 1.54% | 1.77% | 6 | 1.47% | |||||||||||||||||
|
|
|||||||||||||||||||||||
Total expenses after fees waived and paid indirectly5 |
1.50% | 1.39% | 1.38% | 1.54% | 1.77% | 6 | 1.47% | |||||||||||||||||
|
|
|||||||||||||||||||||||
Total expenses after fees waived and paid indirectly and excluding interest expense, fees and amortization of offering costs5,7 |
1.33% | 8 | 1.36% | 1.35% | 1.45% | 1.73% | 6 | 1.47% | ||||||||||||||||
|
|
|||||||||||||||||||||||
Net investment income5 |
6.07% | 7.15% | 6.95% | 7.50% | 6.82% | 6 | 6.78% | |||||||||||||||||
|
|
|||||||||||||||||||||||
Dividends to AMPS Shareholders |
0.11% | 0.22% | 0.24% | 1.22% | 2.03% | 6 | 2.27% | |||||||||||||||||
|
|
|||||||||||||||||||||||
Net investment income to Common Shareholders |
5.96% | 6.93% | 6.71% | 6.28% | 4.79% | 6 | 4.51% | |||||||||||||||||
|
|
|||||||||||||||||||||||
Supplemental Data | ||||||||||||||||||||||||
Net assets applicable to Common Shareholders, end of period (000) |
$ | 33,852 | $ | 30,611 | $ | 31,739 | $ | 28,575 | $ | 29,416 | $ | 30,717 | ||||||||||||
|
|
|||||||||||||||||||||||
AMPS outstanding at $50,000 liquidation preference, end of period (000) |
| $ | 18,500 | $ | 18,500 | $ | 18,500 | $ | 18,500 | $ | 20,000 | |||||||||||||
|
|
|||||||||||||||||||||||
VRDP Shares outstanding at $100,000 liquidation value, end of period (000) |
$ | 18,500 | | | | | | |||||||||||||||||
|
|
|||||||||||||||||||||||
Portfolio turnover |
17% | 10% | 12% | 12% | 5% | 18% | ||||||||||||||||||
|
|
|||||||||||||||||||||||
Asset coverage per AMPS at $50,000 liquidation preference, end of period |
| $ | 132,732 | $ | 135,785 | $ | 127,234 | $ | 129,523 | $ | 126,835 | |||||||||||||
|
|
|||||||||||||||||||||||
Asset coverage per VRDP Share at $100,000 liquidation value, end of period |
$ | 282,983 | | | | | | |||||||||||||||||
|
|
1 | Based on average Common Shares outstanding. |
2 | Amount is less than $(0.01) per share. |
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 | Do not reflect the effect of dividends to AMPS Shareholders. |
6 | Annualized. |
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 August 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 1.24%. |
See Notes to Financial Statements. | ||||||
58 | ANNUAL REPORT | AUGUST 31, 2012 |
Notes to Financial Statements |
ANNUAL REPORT | AUGUST 31, 2012 | 59 |
Notes to Financial Statements (continued) |
60 | ANNUAL REPORT | AUGUST 31, 2012 |
Notes to Financial Statements (continued) |
Derivative Financial Instruments Categorized by Risk Exposure: |
||||||||||||||||||||||||||||||||
The Effect of Derivative Financial Instruments in the Statements of Operations Year Ended August 31, 2012 |
||||||||||||||||||||||||||||||||
Net Realized Gain (Loss) From | ||||||||||||||||||||||||||||||||
BZM | MHN | BLJ | BQH | BSE | BFY | BHV | MHE | |||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||||||
Financial future contracts |
$ | (97,401 | ) | $ | (1,389,725 | ) | $ | (131,305 | ) | $ | (131,098 | ) | $ | (291,995 | ) | $ | (230,864 | ) | $ | (99,580 | ) | $ | (105,334 | ) |
ANNUAL REPORT | AUGUST 31, 2012 | 61 |
Notes to Financial Statements (continued) |
Net Change in Unrealized Appreciation/ Depreciation on |
||||||||||||||||
BZM | BLJ | BHV | MHE | |||||||||||||
Interest rate contracts: | ||||||||||||||||
Financial future contracts . |
$ | (1,787 | ) | $ | (2,860 | ) | $ | (1,787 | ) | $ | (2,860 | ) | ||||
For the year ended August 31, 2012, the average quarterly balances of outstanding derivative financial instruments were as follows:
BZM | MHN | BLJ | BQH | BSE | BFY | BHV | MHE | |||||||||||||||||||||||||
Financial future contracts: | ||||||||||||||||||||||||||||||||
Average number of contracts sold |
3 | 35 | 7 | 3 | 7 | 6 | 2 | 3 | ||||||||||||||||||||||||
Average notional value of contracts sold |
$ | 334,844 | $ | 4,620,844 | $ | 861,910 | $ | 435,297 | $ | 971,047 | $ | 770,141 | $ | 301,359 | $ | 360,980 |
62 | ANNUAL REPORT | AUGUST 31, 2012 |
Notes to Financial Statements (continued) |
5. Income Tax Information:
US GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. The following permanent differences as of August 31, 2012 attributable to amortization methods on fixed income securities, non-deductible expenses, income recognized from pass-through entities, distributions received from a regulated investment company, the reclassification of distributions and securities in default were reclassified to the following accounts:
BZM | MHN | BLJ | BQH | BSE | BFY | BHV | MHE | |||||||||||||||||||||||||
Paid in capital |
$ | (626 | ) | $ | (518,127 | ) | $ | (626 | ) | $ | (36,433 | ) | $ | (63,284 | ) | $ | (68,781 | ) | $ | (626 | ) | $ | (709 | ) | ||||||||
Undistributed net investment income |
$ | 623 | $ | 245,901 | $ | (4,150 | ) | $ | 32,912 | $ | 10,671 | $ | 71,984 | $ | (6,918 | ) | $ | 709 | ||||||||||||||
Undistributed net realized gain (accumulated net realized loss) |
$ | 3 | $ | 272,226 | $ | 4,776 | $ | 3,521 | $ | 52,613 | $ | (3,203 | ) | $ | 7,544 | | ||||||||||||||||
The tax character of distributions paid during the fiscal years ended August 31, 2012 and August 31, 2011 was as follows:
BZM | MHN | BLJ | BQH | BSE | BFY | BHV | MHE | |||||||||||||||||||||||||||||
Tax-exempt income |
8/31/12 | $ | 2,006,765 | $ | 30,398,681 | $ | 2,244,465 | $ | 2,750,782 | $ | 5,708,613 | $ | 5,098,689 | $ | 1,616,224 | $ | 2,041,164 | |||||||||||||||||||
8/31/11 | 2,011,240 | 30,488,849 | 2,235,997 | 2,812,563 | 5,707,805 | 5,128,469 | 1,605,854 | 2,040,271 | ||||||||||||||||||||||||||||
Ordinary income |
8/31/12 | | | 3,008 | | | | | | |||||||||||||||||||||||||||
8/31/11 | 478 | 112,639 | 8,828 | 15,322 | | | 11,428 | | ||||||||||||||||||||||||||||
Long-term capital gains |
8/31/12 | | | | | | | | | |||||||||||||||||||||||||||
8/31/11 | 46,913 | | 74,433 | | | | 125,402 | | ||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||
Total distributions |
8/31/12 | $ | 2,006,765 | $ | 30,398,681 | $ | 2,247,473 | $ | 2,750,782 | $ | 5,708,613 | $ | 5,098,689 | $ | 1,616,224 | $ | 2,041,164 | |||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||
8/31/11 | $ | 2,058,631 | $ | 30,601,488 | $ | 2,319,258 | $ | 2,827,885 | $ | 5,707,805 | $ | 5,128,469 | $ | 1,742,684 | $ | 2,040,271 | ||||||||||||||||||||
|
|
As of August 31, 2012, the tax components of accumulated net earnings were as follows:
BZM | MHN | BLJ | BQH | BSE | BFY | BHV | MHE | |||||||||||||||||||||||||
Undistributed tax-exempt income |
$ | 372,398 | $ | 6,487,614 | $ | 547,786 | $ | 490,463 | $ | 1,161,199 | $ | 1,038,415 | $ | 326,957 | $ | 613,447 | ||||||||||||||||
Undistributed ordinary income |
23 | 17,014 | 1,164 | 263,392 | 953 | 5,366 | 11,332 | 71 | ||||||||||||||||||||||||
Undistributed long-term capital gains |
| | | 320,223 | | | | | ||||||||||||||||||||||||
Capital loss carryforwards |
(174,325 | ) | (32,511,394 | ) | (161,191 | ) | | (4,084,496 | ) | (1,441,194 | ) | (598,893 | ) | (1,004,159 | ) | |||||||||||||||||
Net unrealized gains1 |
2,759,329 | 54,082,713 | 5,406,775 | 5,456,709 | 11,562,099 | 9,968,346 | 4,197,060 | 4,421,460 | ||||||||||||||||||||||||
Qualified late-year losses2 |
| (2,035,203 | ) | | | | | | (55,858 | ) | ||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Total |
$ | 2,957,425 | $ | 26,040,744 | $ | 5,794,534 | $ | 6,530,787 | $ | 8,639,755 | $ | 9,570,933 | $ | 3,936,456 | $ | 3,974,961 | ||||||||||||||||
|
|
1 | The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales and straddles, amortization and accretion methods of premiums and discounts on fixed income securities, the treatment of residual interests in tender option bond trusts, the accrual of income on securities in default, the timing and recognition of partnership income and the deferral of compensation to directors and trustees. |
2 | The Trusts have elected to defer certain qualified late-year losses and recognize such losses in the year ending August 31, 2013. |
As of August 31, 2012, the Trusts had capital loss carryforwards available to offset future realized capital gains through the indicated expiration:
Expires August 31, | BZM | MHN | BLJ | BSE | BFY | BHV | MHE | |||||||||||||||||||||
2013 |
| $ | 15,054,033 | | | | | | ||||||||||||||||||||
2014 |
| 1,097,743 | | | | | | |||||||||||||||||||||
2015 |
| 2,782,666 | | | $ | 70,160 | | $ | 35,869 | |||||||||||||||||||
2016 |
| 710,089 | | | 383,137 | | 285,683 | |||||||||||||||||||||
2017 |
| 4,069,997 | | $ | 1,583,452 | 254,346 | | 375,230 | ||||||||||||||||||||
2018 |
| 3,861,956 | | 1,544,362 | 357,549 | | 32,672 | |||||||||||||||||||||
2019 |
$ | 57,495 | 673,531 | | | 255,001 | $ | 51,866 | 74 | |||||||||||||||||||
No expiration date3 |
116,830 | 4,261,379 | $ | 161,191 | 956,682 | 121,001 | 547,027 | 274,631 | ||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Total |
$ | 174,325 | $ | 32,511,394 | $ | 161,191 | $ | 4,084,496 | $ | 1,441,194 | $ | 598,893 | $ | 1,004,159 | ||||||||||||||
|
|
3 | Must be utilized prior to losses subject to expiration. |
As of August 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:
BZM |
MHN |
BLJ |
BQH |
BSE |
BFY |
BHV |
MHE | |||||||||||||||||||||||||
Tax cost |
$ | 45,188,300 | $ | 669,382,547 | $ | 52,265,256 | $ | 63,623,476 | $ | 129,079,340 | $ | 114,377,691 | $ | 33,414,611 | $ | 48,042,204 | ||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Gross unrealized appreciation |
$ | 2,783,995 | $ | 57,834,021 | $ | 5,954,524 | $ | 6,115,534 | $ | 12,000,645 | $ | 10,637,569 | $ | 4,262,523 | $ | 4,426,685 | ||||||||||||||||
Gross unrealized depreciation |
(14,896 | ) | (3,329,004 | ) | (538,672 | ) | (649,412 | ) | (431,444 | ) | (658,985 | ) | (59,125 | ) | (13,553 | ) | ||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
Net unrealized appreciation (depreciation) |
$ | 2,769,099 | $ | 54,505,017 | $ | 5,415,852 | $ | 5,466,122 | $ | 11,569,201 | $ | 9,978,584 | $ | 4,203,398 | $ | 4,413,132 | ||||||||||||||||
|
|
ANNUAL REPORT | AUGUST 31, 2012 | 63 |
Notes to Financial Statements (continued) |
64 | ANNUAL REPORT | AUGUST 31, 2012 |
Notes to Financial Statements (continued) |
ANNUAL REPORT | AUGUST 31, 2012 | 65 |
Notes to Financial Statements (continued) |
66 | ANNUAL REPORT | AUGUST 31, 2012 |
Notes to Financial Statements (concluded) |
AMPS issued and outstanding remained constant during the year ended August 31, 2011 for BZM, BLJ, BQH, BSE, BFY, BHV and MHE.
8. Subsequent Events:
Managements 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:
Each Trust paid a net investment income dividend on October 1, 2012 to Common Shareholders of record on September 14, 2012 as follows:
Common Dividend Per Share |
||||
BZM |
$ | 0.0665 | ||
MHN |
$ | 0.0795 | ||
BLJ |
$ | 0.0730 | ||
BQH |
$ | 0.0740 | ||
BSE |
$ | 0.0715 | ||
BFY |
$ | 0.0810 | ||
BHV |
$ | 0.0780 | ||
MHE |
$ | 0.0625 |
Additionally, the Trusts declared a net investment income dividend in the following amounts per share on October 1, 2012 payable to Common Shareholders of record on October 15, 2012:
Common Dividend |
||||
BZM |
$ | 0.0665 | ||
MHN |
$ | 0.0765 | ||
BLJ |
$ | 0.0730 | ||
BQH |
$ | 0.0710 | ||
BSE |
$ | 0.0715 | ||
BFY |
$ | 0.0770 | ||
BHV |
$ | 0.0780 | ||
MHE |
$ | 0.0625 |
The dividends declared on VRDP Shares for the period September 1, 2012 to September 30, 2012 were as follows:
Dividends Declared |
||||
BZM |
$ | 13,145 | ||
MHN |
$ | 65,226 | ||
BLJ |
$ | 15,364 | ||
BQH |
$ | 5,302 | ||
BSE |
$ | 9,716 | ||
BFY |
$ | 10,651 | ||
BHV |
$ | 9,530 | ||
MHE |
$ | 15,199 |
ANNUAL REPORT | AUGUST 31, 2012 | 67 |
Report of Independent Registered Public Accounting Firm |
Important Tax Information (Unaudited) |
68 | ANNUAL REPORT | AUGUST 31, 2012 |
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements |
ANNUAL REPORT | AUGUST 31, 2012 | 69 |
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued) |
70 | ANNUAL REPORT | AUGUST 31, 2012 |
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (continued) |
ANNUAL REPORT | AUGUST 31, 2012 | 71 |
Disclosure of Investment Advisory Agreements and Sub-Advisory Agreements (concluded) |
72 | ANNUAL REPORT | AUGUST 31, 2012 |
Automatic Dividend Reinvestment Plans |
ANNUAL REPORT | AUGUST 31, 2012 | 73 |
Officers and Trustees |
Name, Address and Year of Birth |
Position(s) Held with Trusts |
Length of Time |
Principal Occupation(s) During Past Five Years | Number of BlackRock- investment Portfolios |
Public Directorships | |||||
Independent Trustees1 | ||||||||||
Richard E. Cavanagh 55 East 52nd Street New York, NY 10055 1946 |
Chairman of the Board and Trustee | Since 2007 |
Trustee, Aircraft Finance Trust from 1999 to 2009; Director, The Guardian Life Insurance Company of America since 1998; Director, Arch Chemical (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Adjunct Lecturer, Harvard University since 2007; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007. | 98 RICs consisting of 94 Portfolios |
None | |||||
Karen P. Robards 55 East 52nd Street New York, NY 10055 1950 |
Vice Chairperson of the Board, Chairperson of the Audit Committee and Trustee | Since 2007 |
Partner of Robards & Company, LLC (financial advisory firm) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Care Investment Trust, Inc. (health care real estate investment trust) from 2007 to 2010; Investment Banker at Morgan Stanley from 1976 to 1987. | 98 RICs consisting of 94 Portfolios |
AtriCure, Inc. (medical devices) | |||||
Michael J. Castellano 55 East 52nd Street New York, NY 10055 1946 |
Trustee and Member of the Audit Committee | Since 2011 |
Managing Director and Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) since 2009; Director, National Advisory Board of Church Management at Villanova University since 2010. | 98 RICs consisting of 94 Portfolios |
None | |||||
Frank J. Fabozzi 55 East 52nd Street New York, NY 10055 1948 |
Trustee and Member of the Audit Committee | Since 2007 |
Editor of and Consultant for The Journal of Portfolio Management since 1986; Professor of Finance, EDHEC Business School since 2011; Professor in the Practice of Finance and Becton Fellow, Yale University School of Management from 2006 to 2011; Adjunct Professor of Finance and Becton Fellow, Yale University from 1994 to 2006. | 98 RICs consisting of 94 Portfolios |
None | |||||
Kathleen F. Feldstein 55 East 52nd Street New York, NY 10055 1941 |
Trustee |
Since 2007 |
President of Economics Studies, Inc. (private economic consulting firm) since 1987; Chair, Board of Trustees, McLean Hospital from 2000 to 2008 and Trustee Emeritus thereof since 2008; Member of the Board of Partners Community Healthcare, Inc. from 2005 to 2009; Member of the Corporation of Partners HealthCare since 1995; Trustee, Museum of Fine Arts, Boston since 1992; Member of the Visiting Committee to the Harvard University Art Museum since 2003; Director, Catholic Charities of Boston since 2009. | 98 RICs consisting of 94 Portfolios |
The McClatchy Company (publishing); Bell South (telecommunications); Knight Ridder (publishing) | |||||
James T. Flynn 55 East 52nd Street New York, NY 10055 1939 |
Trustee and Member of the Audit Committee | Since 2007 |
Chief Financial Officer of JPMorgan & Co., Inc. from 1990 to 1995. | 98 RICs consisting of 94 Portfolios |
None | |||||
Jerrold B. Harris 55 East 52nd Street New York, NY 10055 1942 |
Trustee |
Since 2007 |
Trustee, Ursinus College since 2000; Director, Troemner LLC (scientific equipment) since 2000; Director of Delta Waterfowl Foundation since 2001; President and Chief Executive Officer, VWR Scientific Products Corporation from 1990 to 1999. | 98 RICs consisting of 94 Portfolios |
BlackRock Kelso Capital Corp. (business development company) | |||||
R. Glenn Hubbard 55 East 52nd Street New York, NY 10055 1958 |
Trustee |
Since 2007 |
Dean, Columbia Business School since 2004; Columbia faculty member since 1988; Co-Director, Columbia Business Schools Entrepreneurship Program from 1997 to 2004; Chairman, U.S. Council of Economic Advisers under the President of the United States from 2001 to 2003; Chairman, Economic Policy Committee of the OECD from 2001 to 2003. | 98 RICs consisting of 94 Portfolios |
ADP (data and information services); KKR Financial Corporation (finance); Metropolitan Life Insurance Company (insurance) |
74 | ANNUAL REPORT | AUGUST 31, 2012 |
Officers and Trustees (continued) |
Name, Address and Year of Birth |
Position(s) Held with Trusts |
Length of Time |
Principal Occupation(s) During Past Five Years | Number of BlackRock- investment Portfolios |
Public Directorships | |||||
Independent Trustees1 (concluded) | ||||||||||
W. Carl Kester 55 East 52nd Street New York, NY 10055 1951 |
Trustee and Member of the Audit Committee | Since 2007 |
George Fisher Baker Jr. Professor of Business Administration, Harvard Business School; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Department, Harvard Business School from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program of Harvard Business School from 1999 to 2005; Member of the faculty of Harvard Business School since 1981. | 98 RICs consisting of 94 Portfolios |
None | |||||
1 Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The maximum age limitation may be waived as to any Trustee by action of a majority of the Trustees upon finding good cause thereof. In 2011, the Board of Trustees unanimously approved extending the mandatory retirement age for James T. Flynn by one additional year, which the Board believes would be in the best interest of shareholders. | ||||||||||
2 Date shown is the earliest date a person has served for the Trusts covered by this annual report. Following the combination of Merrill Lynch Investment Managers, L.P. (MLIM) and BlackRock, Inc. (BlackRock) in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. As a result, although the chart shows certain Trustees as joining the Trusts board in 2007, each Trustee first became a member of the board of other legacy MLIM or legacy BlackRock Funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; Kathleen F. Feldstein, 2005; James T. Flynn, 1996; Jerrold B. Harris, 1999; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998. | ||||||||||
Interested Trustees3 | ||||||||||
Paul L. Audet 55 East 52nd Street New York, NY 10055 1953 |
Trustee | Since 2011 |
Senior Managing Director of BlackRock and Head of U.S. Mutual Funds since 2011; Chair of the U.S. Mutual Funds Committee reporting to the Global Executive Committee since 2011; Head of BlackRocks Real Estate business from 2008 to 2011; Member of BlackRocks Global Operating and Corporate Risk Management Committees and of the BlackRock Alternative Investors Executive Committee and Investment Committee for the Private Equity Fund of Funds business since 2008; Head of BlackRocks Global Cash Management business from 2005 to 2010; Acting Chief Financial Officer of BlackRock from 2007 to 2008; Chief Financial Officer of BlackRock from 1998 to 2005. | 160 RICs consisting of 278 Portfolios |
None | |||||
Henry Gabbay 55 East 52nd Street New York, NY 10055 1947 |
Trustee |
Since 2007 |
Consultant, BlackRock from 2007 to 2008; Managing Director, BlackRock from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Bond Allocation Target Shares from 2005 to 2007; Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006. | 160 RICs consisting of 278 Portfolios. |
None | |||||
3 Mr. Audet is an interested person, as defined in the 1940 Act, of the Trusts based on his position with BlackRock and its affiliates. Mr. Gabbay is an interested person of the Trusts based on his former positions with BlackRock and its affiliates as well as his ownership of BlackRock and The PNC Financial Services Group, Inc. securities. Mr. Audet and Mr. Gabbay are also Directors of the BlackRock registered open-end funds. Trustees serve until their resignation, removal or death, or until December 31 of the year in which they turn 72. The maximam age limitation may be waived as to any Trustee by action of a majority of the Trustees upon finding good cause thereof. |
ANNUAL REPORT | AUGUST 31, 2012 | 75 |
Officers and Trustees (continued) |
Name, Address and Year of Birth |
Position(s) Held with Trusts |
Length of Time Served |
Principal Occupation(s) During Past Five Years | |||
Officers1 | ||||||
John M. Perlowski 55 East 52nd Street New York, NY 10055 1964 |
President and Chief Executive Officer | Since 2011 |
Managing Director of BlackRock since 2009; Global Head of BlackRock Fund Administration since 2009; Managing Director and Chief Operating Officer of the Global Product Group at Goldman Sachs Asset Management, L.P. from 2003 to 2009; Treasurer of Goldman Sachs Mutual Funds from 2003 to 2009 and Senior Vice President thereof from 2007 to 2009; Director of Goldman Sachs Offshore Funds from 2002 to 2009; Director of Family Resource Network (charitable foundation) since 2009. | |||
Anne Ackerley 55 East 52nd Street New York, NY 10055 1962 |
Vice President |
Since 20072 |
Managing Director of BlackRock since 2000; Chief Marketing Officer of BlackRock since 2012; President and Chief Executive Officer of the BlackRock-advised funds from 2009 to 2011; Vice President of the BlackRock-advised funds from 2007 to 2009; Chief Operating Officer of BlackRocks Global Client Group since 2009 to 2012; Chief Operating Officer of BlackRocks U.S. Retail Group from 2006 to 2009; Head of BlackRocks Mutual Fund Group from 2000 to 2006. | |||
Brendan Kyne 55 East 52nd Street New York, NY 10055 1977 |
Vice President |
Since 2009 |
Managing Director of BlackRock since 2010; Director of BlackRock from 2008 to 2009; Head of Product Development and Management for BlackRocks U.S. Retail Group since 2009 and Co-head thereof from 2007 to 2009; Vice President of BlackRock from 2005 to 2008. | |||
Robert W. Crothers 55 East 52nd Street New York, NY 10055 1981 |
Vice President |
Since 2012 |
Director of BlackRock since 2011; Vice President of BlackRock from 2008 to 2010; Associate of BlackRock from 2006 to 2007. | |||
Neal Andrews 55 East 52nd Street New York, NY 10055 1966 |
Chief Financial Officer |
Since 2007 |
Managing Director of BlackRock since 2006; Senior Vice President and Line of Business Head of Fund Accounting and Administration at PNC Global Investment Servicing (U.S.) Inc. from 1992 to 2006. | |||
Jay Fife 55 East 52nd Street New York, NY 10055 1970 |
Treasurer | Since 2007 |
Managing Director of BlackRock since 2007; Director of BlackRock in 2006; Assistant Treasurer of the MLIM and Fund Asset Management, L.P. advised funds from 2005 to 2006; Director of MLIM Fund Services Group from 2001 to 2006. | |||
Brian Kindelan 55 East 52nd Street New York, NY 10055 1959 |
Chief Compliance Officer and Anti-Money Laundering Officer |
Since 2007 |
Chief Compliance Officer of the BlackRock-advised funds since 2007; Managing Director and Senior Counsel of BlackRock since 2005. | |||
Janey Ahn 55 East 52nd Street New York, NY 10055 1975 |
Secretary | Since 2012 |
Director of BlackRock since 2009; Vice President of BlackRock from 2008 to 2009; Assistant Secretary of the Funds from 2008 to 2012; Associate at Willkie Farr & Gallagher LLP from 2006 to 2008. | |||
1 Officers of the Trusts serve at the pleasure of the Board.
| ||||||
2 Ms. Ackerley was President and Chief Executive Officer from 2009 to 2011. |
Effective May 22, 2012, Robert W. Crothers became Vice President of the Trusts.
Effective May 22, 2012, Ira P. Shapiro resigned as Secretary of the Trusts and Janey Ahn became Secretary of the Trusts.
76 | ANNUAL REPORT | AUGUST 31, 2012 |
Officers and Trustees (concluded)
Investment Advisor
Sub-Advisors
BlackRock Investment Princeton, NJ 08540
|
Custodians
The Bank of
Transfer Agent Common Shares Computershare Trust
|
VRDP Tender and Paying Agent
VRDP Liquidity Providers New York, NY 10036
Citibank, N.A.5 New York, NY 10179
Morgan Stanley Bank, N.A.6 New York, NY 10036
VRDP Remarketing Agents Merrill Lynch, Pierce, New York, NY 10036
Citigroup Global Markets, Inc.5 New York, NY 10179
Morgan Stanley & Co. LLC6 New York, NY 10036
|
Accounting Agent
Independent Registered Public Accounting Firm Deloitte & Touche LLP
|
Legal Counsel
Address of the Trusts | ||||
1 For all Trusts except MHN and MHE.
2 For MHN and MHE.
3 For all Trusts except MHN.
4 For MHN.
5 For BZM, BLJ, BHV and MHE.
6 For BQH, BSE and BFY. |
ANNUAL REPORT | AUGUST 31, 2012 | 77 |
Additional Information |
Proxy Results |
The Annual Meeting of Shareholders was held on July 27, 2012 for shareholders of record on May 31, 2012 to elect trustee nominees for each Trust. There were no broker non-votes with regard to any of the Trusts.
Approved the Class II Trustees as follows:
Frank J. Fabozzi¹ | James T. Flynn | Karen P. Robards | ||||||||||||||||||||||||||||||||||
Votes For | Votes Withheld |
Abstain | Votes For | Votes Withheld |
Abstain | Votes For | Votes Withheld |
Abstain | ||||||||||||||||||||||||||||
BZM |
509 | 116 | 0 | 2,003,791 | 14,309 | 0 | 2,003,945 | 14,155 | 0 | |||||||||||||||||||||||||||
BLJ |
550 | 173 | 0 | 2,056,185 | 157,629 | 0 | 2,081,009 | 132,805 | 0 | |||||||||||||||||||||||||||
BSE |
405 | 0 | 0 | 5,799,207 | 371,785 | 0 | 5,811,303 | 359,689 | 0 | |||||||||||||||||||||||||||
BQH |
221 | 0 | 0 | 2,573,937 | 99,145 | 0 | 2,573,937 | 99,145 | 0 | |||||||||||||||||||||||||||
BFY |
444 | 0 | 0 | 4,271,798 | 417,856 | 0 | 4,515,743 | 173,911 | 0 | |||||||||||||||||||||||||||
BHV |
251 | 188 | 0 | 1,484,699 | 38,846 | 0 | 1,484,699 | 38,846 | 0 |
For the Trusts listed above, Trustees whose term of office continued after the Annual Meeting of Shareholders because they were not up for election are Paul L. Audet, Michael J. Castellano, Richard E. Cavanagh, Kathleen F. Feldstein, Henry Gabbay, Jerrold B. Harris, R. Glen Hubbard and W. Carl Kester.
¹ | Voted on by holders of Preferred Shares only. |
Approved the Trustees as follows:
Paul L. Audet | Michael J. Castellano | Richard E. Cavanagh | ||||||||||||||||||||||||||||||||||
Votes For | Votes Withheld |
Abstain | Votes For | Votes Withheld |
Abstain | Votes For | Votes Withheld |
Abstain | ||||||||||||||||||||||||||||
MHN |
27,617,499 | 1,014,322 | 0 | 27,617,796 | 1,014,025 | 0 | 27,619,049 | 1,012,772 | 0 | |||||||||||||||||||||||||||
MHE |
2,180,929 | 28,608 | 0 | 2,180,929 | 28,608 | 0 | 2,181,319 | 28,218 | 0 |
Frank J. Fabozzi2 | Kathleen F. Feldstein | James T. Flynn | ||||||||||||||||||||||||||||||||||
Votes For | Votes Withheld |
Abstain | Votes For | Votes Withheld |
Abstain | Votes For | Votes Withheld |
Abstain | ||||||||||||||||||||||||||||
MHN |
2,436 | 0 | 0 | 27,309,447 | 1,322,374 | 0 | 27,314,443 | 1,317,378 | 0 | |||||||||||||||||||||||||||
MHE |
358 | 0 | 0 | 2,180,929 | 28,608 | 0 | 2,180,929 | 28,608 | 0 |
Henry Gabbay | Jerrold B. Harris | R. Glenn Hubbard | ||||||||||||||||||||||||||||||||||
Votes For | Votes Withheld |
Abstain | Votes For | Votes Withheld |
Abstain | Votes For | Votes Withheld |
Abstain | ||||||||||||||||||||||||||||
MHN |
27,617,098 | 1,014,723 | 0 | 27,319,710 | 1,312,111 | 0 | 27,595,896 | 1,035,925 | 0 | |||||||||||||||||||||||||||
MHE |
2,180,929 | 28,608 | 0 | 2,180,929 | 28,608 | 0 | 2,180,929 | 28,608 | 0 | |||||||||||||||||||||||||||
W. Carl Kester¹ | Karen P. Robards | |||||||||||||||||||||||
Votes For | Votes Withheld |
Abstain | Votes For | Votes Withheld |
Abstain | |||||||||||||||||||
MHN |
2,436 | 0 | 0 | 27,611,487 | 1,020,334 | 0 | ||||||||||||||||||
MHE |
358 | 0 | 0 | 2,180,929 | 28,608 | 0 |
2 | Voted on by holders of Preferred Shares only. |
78 | ANNUAL REPORT | AUGUST 31, 2012 |
Additional Information (continued) |
Trust Certification |
Dividend Policy |
General Information |
ANNUAL REPORT | AUGUST 31, 2012 | 79 |
Additional Information (concluded) |
General Information (concluded) |
BlackRock Privacy Principles |
80 | ANNUAL REPORT | AUGUST 31, 2012 |
This report is transmitted to shareholders only. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. The Trusts have leveraged their Common Shares, which creates risks for Common Shareholders, including the likelihood of greater volatility of net asset value and market price of the Common Shares and the risk that fluctuations in the short-term dividend rates of the Preferred Shares may reduce the Common Shares yield. Statements and other information herein are as dated and are subject to change.
#CEF-STMUNI-8-8/12-AR |
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Item 2 | Code of Ethics The registrant (or the Fund) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrants principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, there have been no amendments to or waivers granted under the code of ethics. A copy of the code of ethics is available without charge at www.blackrock.com. |
Item 3 | Audit Committee Financial Expert The registrants board of directors (the board of directors), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent: |
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
The registrants board of directors has determined that W. Carl Kester and Karen P. Robards qualify as financial experts pursuant to Item 3(c)(4) of Form N-CSR.
Prof. Kester has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Prof. Kester has been involved in providing valuation and other financial consulting services to corporate clients since 1978. Prof. Kesters financial consulting services present a breadth and level of complexity of accounting issues that are generally comparable to the breadth and complexity of issues that can reasonably be expected to be raised by the registrants financial statements.
Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.
Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an expert for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
2
Item 4 | Principal Accountant Fees and Services |
The following table presents fees billed by Deloitte & Touche LLP (D&T) in each of the last two fiscal years for the services rendered to the Fund:
(a) Audit Fees | (b) Audit-Related Fees1 | (c) Tax Fees2 | (d) All Other Fees3 | |||||||||||||
Entity Name | Current Fiscal Year End |
Previous Fiscal Year End |
Current Fiscal Year End |
Previous Fiscal Year End |
Current Fiscal Year End |
Previous Fiscal Year End |
Current Fiscal Year End |
Previous Fiscal Year End | ||||||||
BlackRock New York Municipal Income Quality Trust |
$30,300 | $29,700 | $0 | $5,800 | $9,300 | $8,800 | $0 | $0 |
The following table presents fees billed by D&T that were required to be approved by the registrants audit committee (the Committee) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (Investment Adviser or BlackRock) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (Fund Service Providers):
Current Fiscal Year End | Previous Fiscal Year End | |||
(b) Audit-Related Fees1 |
$0 | $0 | ||
(c) Tax Fees2 |
$0 | $0 | ||
(d) All Other Fees3 |
$2,970,000 | $3,030,000 |
1 The nature of the services includes assurance and related services reasonably related to the performance of the audit of financial statements not included in Audit Fees.
2 The nature of the services includes tax compliance, tax advice and tax planning.
3 Aggregate fees borne by BlackRock in connection with the review of compliance procedures and attestation thereto performed by D&T with respect to all of the registered closed-end funds and some of the registered open-end funds advised by BlackRock.
(e)(1) Audit Committee Pre-Approval Policies and Procedures:
The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Fund Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are a) consistent with the SECs auditor independence rules and b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (general pre-approval). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.
3
Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.
(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable
(g) The aggregate non-audit fees paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Fund Service Providers were:
Entity Name | Current Fiscal Year End |
Previous Fiscal Year End |
||||
BlackRock New York Municipal Income Quality Trust |
$9,300 | $14,600 |
Additionally, SSAE 16 Review (Formerly, SAS No. 70) fees for the current and previous fiscal years of $2,970,000 and $3,030,000, respectively, were billed by D&T to the Investment Adviser.
(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser, and the Fund Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountants independence.
Item 5 | Audit Committee of Listed Registrants |
(a) | The following individuals are members of the registrants separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(58)(A)): |
Michael Castellano
Frank J. Fabozzi
James T. Flynn
W. Carl Kester
Karen P. Robards
(b) | Not Applicable |
Item 6 | Investments |
(a) The registrants 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.
4
Item 7 | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies The board of directors has delegated the voting of proxies for the Funds portfolio securities to the Investment Adviser pursuant to the Investment Advisers proxy voting guidelines. Under these guidelines, the Investment Adviser will vote proxies related to Fund securities in the best interests of the Fund and its stockholders. From time to time, a vote may present a conflict between the interests of the Funds stockholders, on the one hand, and those of the Investment Adviser, or any affiliated person of the Fund or the Investment Adviser, on the other. In such event, provided that the Investment Advisers Equity Investment Policy Oversight Committee, or a sub-committee thereof (the Oversight Committee) is aware of the real or potential conflict or material non-routine matter and if the Oversight Committee does not reasonably believe it is able to follow its general voting guidelines (or if the particular proxy matter is not addressed in the guidelines) and vote impartially, the Oversight Committee may retain an independent fiduciary to advise the Oversight Committee on how to vote or to cast votes on behalf of the Investment Advisers clients. If the Investment Adviser determines not to retain an independent fiduciary, or does not desire to follow the advice of such independent fiduciary, the Oversight Committee shall determine how to vote the proxy after consulting with the Investment Advisers Portfolio Management Group and/or the Investment Advisers Legal and Compliance Department and concluding that the vote cast is in its clients best interest notwithstanding the conflict. A copy of the Funds Proxy Voting Policy and Procedures are attached as Exhibit 99.PROXYPOL. Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available without charge, (i) at www.blackrock.com and (ii) on the SECs website at http://www.sec.gov. |
Item 8 | Portfolio Managers of Closed-End Management Investment Companies as of August 31, 2012. |
(a)(1) | The registrant is managed by a team of investment professionals comprised of Timothy Browse, Director at BlackRock, Theodore R. Jaeckel, Jr., CFA, Managing Director at BlackRock, and Walter OConnor, Managing Director at BlackRock. Each of the foregoing professionals is a member of BlackRocks municipal tax-exempt management group and is jointly responsible for the day-to-day management of the registrants portfolio, which includes setting the registrants overall investment strategy, overseeing the management of the registrant and/or selection of its investments. Messrs. Browse, Jaeckel and OConnor have been members of the registrants portfolio management team since 2006. |
Portfolio Manager | Biography | |
Timothy Browse | Director of BlackRock since 2008; Vice President of BlackRock from 2006 to 2007; Vice President of Merrill Lynch Investment Managers, L.P. (MLIM) from 2004 to 2006. | |
Theodore R. Jaeckel, Jr. | Managing Director at BlackRock since 2006; Managing Director of MLIM from 2005 to 2006; Director of MLIM from 1997 to 2005. | |
Walter OConnor | Managing Director of BlackRock since 2006; Managing Director of MLIM from 2003 to 2006; Director of MLIM from 1998 to 2003. |
5
(a)(2) As of August 31, 2012:
(ii) Number of Other Accounts Managed and Assets by Account Type |
(iii) Number of Other Accounts and Assets for Which Advisory Fee is Performance-Based | |||||||||||
(i) Name of Portfolio Manager |
Other Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts |
Other Registered Investment Companies |
Other Pooled Investment Vehicles |
Other Accounts | ||||||
Timothy Browse |
12 | 0 | 0 | 0 | 0 | 0 | ||||||
$3.71 Billion | $0 | $0 | $0 | $0 | $0 | |||||||
Theodore R. Jaeckel, Jr. |
63 | 0 | 0 | 0 | 0 | 0 | ||||||
$26.33 Billion | $0 | $0 | $0 | $0 | $0 | |||||||
Walter OConnor |
63 | 0 | 0 | 0 | 0 | 0 | ||||||
$26.33 Billion | $0 | $0 | $0 | $0 | $0 |
(iv) | Potential Material Conflicts of Interest |
BlackRock has built a professional working environment, firm-wide compliance culture and compliance procedures and systems designed to protect against potential incentives that may favor one account over another. BlackRock has adopted policies and procedures that address the allocation of investment opportunities, execution of portfolio transactions, personal trading by employees and other potential conflicts of interest that are designed to ensure that all client accounts are treated equitably over time. Nevertheless, BlackRock furnishes investment management and advisory services to numerous clients in addition to the Fund, and BlackRock may, consistent with applicable law, make investment recommendations to other clients or accounts (including accounts which are hedge funds or have performance or higher fees paid to BlackRock, or in which portfolio managers have a personal interest in the receipt of such fees), which may be the same as or different from those made to the Fund. In addition, BlackRock, its affiliates and significant shareholders and any officer, director, shareholder or employee may or may not have an interest in the securities whose purchase and sale BlackRock recommends to the Fund. BlackRock, or any of its affiliates or significant shareholders, or any officer, director, shareholder, employee or any member of their families may take different actions than those recommended to the Fund by BlackRock with respect to the same securities. Moreover, BlackRock may refrain from rendering any advice or services concerning securities of companies of which any of BlackRocks (or its affiliates or significant shareholders) officers, directors or employees are directors or officers, or companies as to which BlackRock or any of its affiliates or significant shareholders or the officers, directors and employees of any of them has any substantial economic interest or possesses material non-public information. Certain portfolio managers also may manage accounts whose investment strategies may at times be opposed to the strategy utilized for a fund. It should also be noted that a portfolio manager may be managing hedge fund and/or long only accounts, or may be part of a team managing hedge fund and/or long only accounts, subject to incentive fees. Such portfolio managers may therefore be entitled to receive a portion of any incentive fees earned on such accounts. Currently, the portfolio managers of this fund are not entitled to receive a portion of incentive fees of other accounts.
As a fiduciary, BlackRock owes a duty of loyalty to its clients and must treat each client fairly. When BlackRock purchases or sells securities for more than one account, the trades must be allocated in a manner consistent with its fiduciary duties. BlackRock attempts to allocate investments in a fair and equitable manner among client accounts, with no account receiving preferential treatment. To this end, BlackRock has adopted policies that are intended to ensure reasonable efficiency in client transactions and provide BlackRock with sufficient flexibility to allocate investments in a manner that is consistent with the particular investment discipline and client base, as appropriate.
6
(a)(3) | As of August 31, 2012: |
Portfolio Manager Compensation Overview
BlackRocks financial arrangements with its portfolio managers, its competitive compensation and its career path emphasis at all levels reflect the value senior management places on key resources. Compensation may include a variety of components and may vary from year to year based on a number of factors. The principal components of compensation include a base salary, a performance-based discretionary bonus, participation in various benefits programs and one or more of the incentive compensation programs established by BlackRock.
Base compensation. Generally, portfolio managers receive base compensation based on their position with the firm.
Discretionary Incentive Compensation.
Discretionary incentive compensation is a function of several components: the performance of BlackRock, Inc., the performance of the portfolio managers group within BlackRock, the investment performance, including risk-adjusted returns, of the firms assets under management or supervision by that portfolio manager relative to predetermined benchmarks, and the individuals performance and contribution to the overall performance of these portfolios and BlackRock. In most cases, these benchmarks are the same as the benchmark or benchmarks against which the performance of the Fund or other accounts managed by the portfolio managers are measured. Among other things, BlackRocks Chief Investment Officers make a subjective determination with respect to each portfolio managers compensation based on the performance of the Fund and other accounts managed by each portfolio manager relative to the various benchmarks. Performance of fixed income funds is measured on a pre-tax and/or after-tax basis over various time periods including 1-, 3- and 5- year periods, as applicable. With respect to these portfolio managers, such benchmarks for the Fund and other accounts are:
Portfolio Manager | Benchmark | |
Timothy Browse | A combination of market-based indices (e.g., Barclays Capital Muni Bond Index, Standard & Poors Municipal Bond Index), certain customized indices and certain fund industry peer groups. | |
Theodore Jaeckel Walter OConnor |
A combination of market-based indices (e.g., Barclays Capital Muni Bond Index, Standard & Poors Municipal Bond Index, Barclays Capital Taxable Municipal Build America Bonds Index), certain customized indices and certain fund industry peer groups. |
Distribution of Discretionary Incentive Compensation
Discretionary incentive compensation is distributed to portfolio managers in a combination of cash and BlackRock, Inc. restricted stock units which vest ratably over a number of years. For some portfolio managers, discretionary incentive compensation is also distributed in deferred cash awards that notionally track the returns of select BlackRock investment products they manage and that vest ratably over a number of years. The BlackRock, Inc. restricted stock units, upon vesting,
7
will be settled in BlackRock, Inc. common stock. Typically, the cash portion of the discretionary incentive compensation, when combined with base salary, represents more than 60% of total compensation for the portfolio managers. Paying a portion of discretionary incentive compensation in BlackRock stock puts compensation earned by a portfolio manager for a given year at risk based on BlackRocks ability to sustain and improve its performance over future periods. Providing a portion of discretionary incentive compensation in deferred cash awards that notionally track the BlackRock investment products they manage provides direct alignment with investment product results.
Long-Term Incentive Plan Awards From time to time long-term incentive equity awards are granted to certain key employees to aid in retention, align their interests with long-term shareholder interests and motivate performance. Equity awards are generally granted in the form of BlackRock, Inc. restricted stock units that, once vested, settle in BlackRock, Inc. common stock. Messrs. Jaeckel and OConnor have each received long-term incentive awards.
Deferred Compensation Program A portion of the compensation paid to eligible BlackRock employees may be voluntarily deferred at their election for defined periods of time into an account that tracks the performance of certain of the firms investment products. All of the eligible portfolio managers have participated in the deferred compensation program.
Other compensation benefits.
In addition to base compensation and discretionary incentive compensation, portfolio managers may be eligible to receive or participate in one or more of the following incentive savings plans. BlackRock, Inc. has created a variety of incentive savings plans in which BlackRock, Inc. employees are eligible to participate, including a 401(k) plan, the BlackRock Retirement Savings Plan (RSP), and the BlackRock Employee Stock Purchase Plan (ESPP). The employer contribution components of the RSP include a company match equal to 50% of the first 8% of eligible pay contributed to the plan capped at $5,000 per year, and a company retirement contribution equal to 3-5% of eligible compensation up to the IRS limit ($250,000 for 2012). The RSP offers a range of investment options, including registered investment companies and collective investment funds managed by the firm. BlackRock, Inc. contributions follow the investment direction set by participants for their own contributions or, absent participant investment direction, are invested into an index target date fund that corresponds to, or is closest to, the year in which the participant attains age 65. The ESPP allows for investment in BlackRock, Inc. common stock at a 5% discount on the fair market value of the stock on the purchase date. Annual participation in the ESPP is limited to the purchase of 1,000 shares of common stock or a dollar value of $25,000 based on its fair market value on the purchase date. Messrs. Browse, Jaeckel, and OConnor are each eligible to participate in these plans.
(a)(4) Beneficial Ownership of Securities As of August 31, 2012.
Portfolio Manager | Dollar Range of Equity Securities of the Fund Beneficially Owned | |
Timothy Browse | None | |
Theodore R. Jaeckel, Jr. | None | |
Walter OConnor | None |
(b) Not Applicable
8
Item 9 | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers Not Applicable due to no such purchases during the period covered by this report. |
Item 10 | Submission of Matters to a Vote of Security Holders There have been no material changes to these procedures. |
Item 11 | Controls and Procedures |
(a) The registrants principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrants 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 registrants 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 registrants internal control over financial reporting.
Item 12 | Exhibits attached hereto |
(a)(1) Code of Ethics See Item 2
(a)(2) Certifications Attached hereto
(a)(3) Not Applicable
(b) Certifications Attached hereto
9
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 New York Municipal Income Quality Trust | ||||
By: | /s/ John M. Perlowski |
|||
John M. Perlowski | ||||
Chief Executive Officer (principal executive officer) of | ||||
BlackRock New York Municipal Income Quality Trust | ||||
Date: | November 5, 2012 |
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 New York Municipal Income Quality Trust | ||||
Date: | November 5, 2012 | |||
By: | /s/ Neal J. Andrews |
|||
Neal J. Andrews | ||||
Chief Financial Officer (principal financial officer) of | ||||
BlackRock New York Municipal Income Quality Trust | ||||
Date: | November 5, 2012 |
10
EX-99. CERT
CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock New York Municipal Income Quality Trust, certify that:
1. I | have reviewed this report on Form N-CSR of BlackRock New York Municipal Income Quality Trust; |
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: November 5, 2012
/s/ John M. Perlowski |
||
John M. Perlowski | ||
Chief Executive Officer (principal executive officer) of BlackRock New York Municipal Income Quality Trust |
EX-99. CERT
CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock New York Municipal Income Quality Trust, certify that:
1. I have reviewed this report on Form N-CSR of BlackRock New York Municipal Income Quality Trust;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
d) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: November 5, 2012
/s/ Neal J. Andrews |
||
Neal J. Andrews | ||
Chief Financial Officer (principal financial officer) of BlackRock New York Municipal Income Quality Trust |
Exhibit 99.1350CERT
Certification Pursuant to Rule 30a-2(b) under the 1940 Act and
Section 906 of the Sarbanes-Oxley Act of 2002
Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock New York Municipal Income Quality Trust (the Registrant), hereby certifies, to the best of his knowledge, that the Registrants Report on Form N-CSR for the period ended August 31, 2012 (the Report) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Date: November 5, 2012
/s/ John M. Perlowski |
||
John M. Perlowski | ||
Chief Executive Officer (principal executive officer) of BlackRock New York Municipal Income Quality Trust |
Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock New York Municipal Income Quality Trust (the Registrant), hereby certifies, to the best of his knowledge, that the Registrants Report on Form N-CSR for the period ended August 31, 2012 (the Report) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
Date: November 5, 2012
/s/ Neal J. Andrews |
||
Neal J. Andrews | ||
Chief Financial Officer (principal financial officer) of BlackRock New York Municipal Income Quality Trust |
This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission.
I. INTRODUCTION
The Trustees/Directors (Directors) of the BlackRock-Advised Funds (the Funds) have the responsibility for voting proxies relating to portfolio securities of the Funds, and have determined that it is in the best interests of the Funds and their shareholders to delegate that responsibility to BlackRock Advisors, LLC and its affiliated U.S. registered investment advisers (BlackRock), the investment adviser to the Funds, as part of BlackRocks authority to manage, acquire and dispose of account assets. The Directors hereby direct BlackRock to vote such proxies in accordance with this Policy, and any proxy voting guidelines that the Adviser determines are appropriate and in the best interests of the Funds shareholders and which are consistent with the principles outlined in this Policy. Individual series of the Funds may be specifically excluded from this Policy by the Directors by virtue of the adoption of alternative proxy voting policy for such series. The Directors have authorized BlackRock to utilize unaffiliated third-parties as its agents to vote portfolio proxies in accordance with this Policy and to maintain records of such portfolio proxy voting.
Rule 206(4)-6 under the Investment Advisers Act of 1940 requires, among other things, that an investment adviser that exercises voting authority over clients proxy voting adopt policies and procedures reasonably designed to ensure that the adviser votes proxies in the best interests of clients, discloses to its clients information about those policies and procedures and also discloses to clients how they may obtain information on how the adviser has voted their proxies.
BlackRock has adopted guidelines and procedures that are consistent with the principles of this Policy. BlackRocks corporate governance committee structure (the Committee), oversees the proxy voting function on behalf of BlackRock and its clients, including the Funds. The Committee is comprised of senior members of BlackRocks Portfolio Management and Administration Groups and is advised by BlackRocks Legal and Compliance Department.
BlackRock votes (or refrains from voting) proxies for each Fund in a manner that BlackRock, in the exercise of its independent business judgment, concludes is in the best economic interests of such Fund. In some cases, BlackRock may determine that it is in the best economic interests of a Fund to refrain from exercising the Funds proxy voting rights (such as, for example, proxies on certain non-U.S. securities that might impose costly or time-consuming in-person voting requirements). With regard to the relationship between securities lending and proxy voting, BlackRocks approach is also driven by our clients economic interests. The evaluation of the economic desirability of recalling loans involves balancing the revenue producing value of loans against the likely economic value of casting votes. Based on our evaluation of this relationship, BlackRock believes that the likely economic value of casting a vote generally is less than the securities lending income, either because the votes will not have significant economic consequences or because the outcome of the vote would not be affected by BlackRock recalling loaned securities in order to ensure they are voted. Periodically, BlackRock analyzes the process and benefits of voting proxies for securities on loan, and will consider whether any modification of its proxy voting policies or procedures are necessary in light of any regulatory changes.
BlackRock will normally vote on specific proxy issues in accordance with BlackRocks proxy voting guidelines. BlackRocks proxy voting guidelines provide detailed guidance as to how to vote proxies on certain important or commonly raised issues. BlackRock may, in the exercise of its business judgment, conclude that the proxy voting guidelines do not cover the specific matter upon which a proxy vote is requested, or that an exception to the proxy voting guidelines would be in the best economic interests of a Fund. BlackRock votes (or refrains from voting) proxies without regard to the relationship of the issuer of the proxy (or any shareholder of such issuer) to the Fund, the Funds affiliates (if any), BlackRock or BlackRocks affiliates. When voting proxies, BlackRock attempts to encourage companies to follow practices that enhance shareholder value and increase transparency and allow the market to place a proper value on their assets.
Proxy Voting Policy July 1, 2011 |
Page 1 of 3 |
II. PROXY VOTING POLICIES
A. Boards of Directors
The Funds generally support the boards nominees in the election of directors and generally support proposals that strengthen the independence of boards of directors. As a general matter, the Funds believe that a companys board of directors (rather than shareholders) is most likely to have access to important, nonpublic information regarding a companys business and prospects, and is therefore best-positioned to set corporate policy and oversee management. The Funds therefore believe that the foundation of good corporate governance is the election of responsible, qualified, independent corporate directors who are likely to diligently represent the interests of shareholders and oversee management of the corporation in a manner that will seek to maximize shareholder value over time. In individual cases, consideration may be given to a director nominees history of representing shareholder interests as a director of the company issuing the proxy or other companies, or other factors to the extent deemed relevant by the Committee.
B. Auditors
These proposals concern those issues submitted to shareholders related to the selection of auditors. As a general matter, the Funds believe that corporate auditors have a responsibility to represent the interests of shareholders and provide an independent view on the propriety of financial reporting decisions of corporate management. While the Funds anticipate that BlackRock will generally defer to a corporations choice of auditor, in individual cases, consideration may be given to an auditors history of representing shareholder interests as auditor of the company issuing the proxy or other companies, to the extent deemed relevant.
C. Compensation and Benefits
These proposals concern those issues submitted to shareholders related to management compensation and employee benefits. As a general matter, the Funds favor disclosure of a companys compensation and benefit policies and oppose excessive compensation, but believe that compensation matters are normally best determined by a corporations board of directors, rather than shareholders. Proposals to micro-manage a companys compensation practices or to set arbitrary restrictions on compensation or benefits should therefore generally not be supported.
D. Capital Structure
These proposals relate to various requests, principally from management, for approval of amendments that would alter the capital structure of a company, such as an increase in authorized shares. As a general matter, the Funds expect that BlackRock will support requests that it believes enhance the rights of common shareholders and oppose requests that appear to be unreasonably dilutive.
E. Corporate Charter and By-Laws
These proposals relate to various requests for approval of amendments to a corporations charter or by-laws. As a general matter, the Funds generally vote against anti-takeover proposals and proposals that would create additional barriers or costs to corporate transactions that are likely to deliver a premium to shareholders.
Proxy Voting Policy July 1, 2011 |
Page 2 of 3 |
F. Environmental and Social Issues
These are shareholder proposals addressing either corporate social and environmental policies or requesting specific reporting on these issues. The Funds generally do not support proposals on social issues that lack a demonstrable economic benefit to the issuer and the Fund investing in such issuer. BlackRock seeks to make proxy voting decisions in the manner most likely to protect and promote the long-term economic value of the securities held in client accounts. We intend to support economically advantageous corporate practices while leaving direct oversight of company management and strategy to boards of directors. We seek to avoid micromanagement of companies, as we believe that a companys board of directors is best positioned to represent shareholders and oversee management on shareholders behalf. Issues of corporate social and environmental responsibility are evaluated on a case-by-case basis within this framework.
III. CONFLICTS MANAGEMENT
BlackRock maintains policies and procedures that are designed to prevent any relationship between the issuer of the proxy (or any shareholder of the issuer) and a Fund, a Funds affiliates (if any), BlackRock or BlackRocks affiliates, from having undue influence on BlackRocks proxy voting activity. In certain instances, BlackRock may determine to engage an independent fiduciary to vote proxies as a further safeguard against potential conflicts of interest or as otherwise required by applicable law. The independent fiduciary may either vote such proxies or provide BlackRock with instructions as to how to vote such proxies. In the latter case, BlackRock votes the proxy in accordance with the independent fiduciarys determination.
IV. REPORTS TO THE BOARD
BlackRock will report to the Directors on proxy votes it has made on behalf of the Funds at least annually.
©2011 BlackRock
Proxy Voting Policy July 1, 2011 |
Page 3 of 3 |
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