N-CSR 1 d608962dncsr.htm BLACKROCK CALIFORNIA MUNICIPAL SERIES TRUST BLACKROCK CALIFORNIA MUNICIPAL SERIES TRUST

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: 811-04264

 

Name of Fund:   BlackRock California Municipal Series Trust
       BlackRock California Municipal Opportunities Fund

 

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock California Municipal Series Trust, 50 Hudson Yards, New York, NY 10001

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 05/31/2023

Date of reporting period: 05/31/2023

Item 1 –

Report to Stockholders

(a) The Report to Shareholders is attached herewith.

 

LOGO

  MAY 31, 2023

 

    

    2023 Annual Report

 

BlackRock California Municipal Series Trust

·  BlackRock California Municipal Opportunities Fund

BlackRock Multi-State Municipal Series Trust

·  BlackRock New Jersey Municipal Bond Fund

·  BlackRock Pennsylvania Municipal Bond Fund

BlackRock Municipal Bond Fund, Inc.

·  BlackRock Impact Municipal Fund

BlackRock Municipal Series Trust

·  BlackRock Strategic Municipal Opportunities Fund

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

Investors faced an uncertain economic landscape during the 12-month reporting period ended May 31, 2023, amid mixed indicators and rapidly changing market conditions. The U.S. economy returned to modest growth beginning in the third quarter of 2022, although the pace of growth slowed thereafter. Inflation was elevated, reaching a 40-year high as labor costs grew rapidly and unemployment rates reached the lowest levels in decades. However, inflation moderated as the period continued, while continued strength in consumer spending backstopped the economy.

Equity returns varied substantially, as large-capitalization U.S. stocks gained for the period amid a rebound in big tech stocks, whereas small-capitalization U.S. stocks declined. International equities from developed markets advanced, while emerging market stocks declined substantially, pressured by higher interest rates and falling commodities prices.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market also faced inflationary headwinds, although high-yield corporate bond prices fared better than investment-grade bonds as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), acknowledging that inflation has been more persistent than expected, raised interest rates eight times. Furthermore, the Fed wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity. In addition, the Fed added liquidity to markets amid the failure of prominent regional banks.

Restricted labor supply kept inflation elevated even as other inflation drivers, such as goods prices and energy costs, moderated. While economic growth was modest in the last year, we believe that stickiness in services inflation and continued wage growth will keep inflation above central bank targets for some time. Although the Fed has decelerated the pace of interest rate hikes and most recently opted for a pause, we believe that the Fed is likely to keep rates high for an extended period to get inflation under control. With this in mind, we believe the possibility of a U.S. recession in the near term is high, but the dimming economic outlook has not yet been fully reflected in current market prices. We believe investors should expect a period of higher volatility as markets adjust to the new economic reality and policymakers attempt to adapt. Resolution of the debt ceiling standoff late in the period eliminated one source of uncertainty, but the relatively modest spending cuts won’t move the needle on the government’s substantial debt burden.

While we favor an overweight to equities in the long term, we prefer an underweight stance on equities overall in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with the possibility of a recession. Nevertheless, we are overweight on emerging market stocks as we believe a weakening U.S. dollar could provide a supportive backdrop. While we are neutral on credit overall amid tightening credit and financial conditions, there are selective opportunities in the near term. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, global inflation-linked bonds, and emerging market bonds denominated in local currency.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of May 31, 2023  
     
       6-Month       12-Month  
   

U.S. large cap equities

(S&P 500® Index)

     3.33%       2.92%  
   

U.S. small cap equities

(Russell 2000® Index)

     (6.53)         (4.68)    
   

International equities

(MSCI Europe, Australasia, Far East Index)

     6.89          3.06     
   

Emerging market equities

(MSCI Emerging Markets Index)

     (0.37)         (8.49)    
   

3-month Treasury bills

(ICE BofA 3-Month U.S. Treasury Bill Index)

     2.16          3.16     
   

U.S. Treasury securities

(ICE BofA 10-Year U.S. Treasury Index)

     1.78          (3.65)    
   

U.S. investment grade bonds

(Bloomberg U.S. Aggregate Bond Index)

     2.00          (2.14)    
   

Tax-exempt municipal bonds

(Bloomberg Municipal Bond Index)

     1.94          0.49     
   

U.S. high yield bonds

(Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

     3.01          0.05     
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

 

2  

T H I S   P A G E   I S   N O T   P A R T   O F   Y O U R   F U N D   R E P O R T

Table of Contents

 

     Page  

 

  

The Markets in Review

     2  

Annual Report:

   

Fund Summary

      4  

About Fund Performance

      19  

Disclosure of Expenses

      20  

The Benefits and Risks of Leveraging

      21  

Derivative Financial Instruments

      21  

Financial Statements:

   

Schedules of Investments

      22  

Statements of Assets and Liabilities

      57  

Statements of Operations

      61  

Statements of Changes in Net Assets

      63  

Financial Highlights

      66  

Notes to Financial Statements

      91  

Report of Independent Registered Public Accounting Firm

      106  

Important Tax Information

      107  

Trustee and Officer Information

      108  

Additional Information

      111  

Glossary of Terms Used in this Report

      113  

 

 

 

LOGO

 

 

 

  3

Fund Summary    as of May 31, 2023    BlackRock California Municipal Opportunities Fund

 

Investment Objective

BlackRock California Municipal Opportunities Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from Federal and California income taxes.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended May 31, 2023, all of the Fund’s share classes underperformed its primary benchmark, the Bloomberg Municipal Bond Index, and its secondary benchmark, a customized weighted index comprised of 85% Bloomberg Municipal Bond: California Exempt Total Return Index Unhedged USD/10% California Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index California Taxable Bonds Total Return Index Value (the “California Customized Reference Benchmark”). The following discussion of relative performance pertains to the California Customized Reference Benchmark.

What factors influenced performance?

Positions in high yield bonds, which lagged investment-grade issues, detracted from performance. Yield spreads remained wide at a time of low inflows into the category. Most notably, the workforce housing sector—which is a large portion of the Fund’s high yield position—underperformed. Puerto Rico Electric Power Authority also experienced weakness amid continued uncertainty about the territory’s financial picture.

On the positive side, the Fund benefited from its holdings in longer-duration, longer-maturity bonds. (Duration is a measure of interest rate sensitivity). Positions in taxable municipals and corporate debt contributed as well. The utilities sector also performed well, as prices for essential service revenue bonds improved. The Fund’s above-average cash position, which stood in a range of approximately 10% to 13%, was an additional contributor. Yields on cash rose to attractive levels as the Fed boosted the fed funds rate, providing meaningful returns with no duration exposure.

The Fund used U.S. Treasury futures to manage interest rate risk. This aspect of its strategy marginally contributed to performance.

Describe recent portfolio activity.

The Fund continued to seek a balance of competitive total return and tax-free income using an active strategy designed to capitalize on credit, yield curve and interest rate trends.

The investment adviser used rallies to trim the Fund’s allocation to longer-maturity, longer-duration bonds as prices improved. In addition, the investment adviser sold some positions in high yield bonds to take advantage of tighter yield spreads and reduced leverage as rising short-term borrowing costs began to limit the effectiveness of this strategy.

On the other hand, the investment adviser raised the portfolio’s cash weighting from 2.5% at the beginning of the period to 12.5% at the end of May 2023. The investment adviser also sought to add positions in bonds with higher book yields in an effort to boost the Fund’s income.

Describe portfolio positioning at period end.

The Fund’s duration was 5.6 years, 1.1 years below the index and down from 9.0 on May 31, 2021. The underweight to duration was largely achieved through sales of longer-dated securities, the increase in cash, and the use of interest-rate risk management strategies.

The Fund maintained a high-quality bias, with an average credit rating of AA. The Fund also held 12.2% of its assets in high yield bonds. At the close of the period, 11.2% of the portfolio was subject to the alternative minimum tax and 5% was invested in taxable securities.

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

 

 

4  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary    as of May 31, 2023 (continued)   BlackRock California Municipal Opportunities Fund

 

GROWTH OF $10,000 INVESTMENT

 

LOGO

 

  (a) 

Assuming maximum sales charges, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge.

 
  (b) 

Under normal circumstances, the Fund will invest at least 80% of its assets in California municipal bonds. The Fund’s returns prior to January 26, 2015 are the returns of the Fund when it followed different investment strategies under the name BlackRock California Municipal Bond Fund.

 
  (c) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

Performance

 

                Average Annual Total Returns(a)(b)  
     

 

 

  
                1 Year         5 Years         10 Years  
     

 

 

      

 

 

      

 

 

  
    

Standardized

30-Day Yields

    

Unsubsidized

30-Day Yields

    

Without

Sales

Charge

    

With

Sales

Charge

         

Without

Sales

Charge

    

With

Sales

Charge

         

Without

Sales

Charge

    

With

Sales

Charge

  

Institutional

     2.98 %      2.91 %      0.23 %      N/A         1.04 %      N/A         2.46 %      N/A  

Investor A

     2.62       2.56       (0.02 )      (4.26 )%        0.79       (0.08 )%        2.22       1.78 % 

Investor A1

     2.77       2.72       0.14       N/A         0.95       N/A         2.37       N/A  

Investor C

     1.98       1.92       (0.77 )      (1.74 )        0.03       0.03         1.61       1.61  

Class K

     3.03       2.98       0.28       N/A           1.09       N/A           2.48       N/A  

California Customized Reference Benchmark(c)

    —       —       0.41       N/A         1.49       N/A         N/A       N/A  

Bloomberg Municipal Bond Index

     —       —       0.49       N/A           1.65       N/A           2.28       N/A  

 

  (a) 

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

 
  (b) 

Under normal circumstances, the Fund will invest at least 80% of its assets in California municipal bonds. The Fund’s returns prior to January 26, 2015 are the returns of the Fund when it followed different investment strategies under the name BlackRock California Municipal Bond Fund.

 
  (c) 

A customized weighted index comprised of 85% Bloomberg Municipal Bond: California Exempt Total Return Index Unhedged USD/10% California Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index California Taxable Bonds Total Return Index Value (the “California Customized Reference Benchmark”). The California Customized Reference Benchmark commenced on September 30, 2016.

 

N/A — Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual     Hypothetical 5% Return        
 

 

 

    

 

 

      
                Expenses Paid During the
Period		           Including Interest
Expense
and Fees		     Excluding Interest
Expense
and Fees		     Annualized Expense Ratio  
     

 Beginning

Account

Value

(12/01/22)

 

 

 

 

    

 Ending

Account

Value

(05/31/23)

  

 

 

 

    

 Including

Interest

Expense

and Fees

  

 

 

(a) 

    

 Excluding

Interest

Expense

and Fees

  

 

 

(a) 

    

 Beginning

Account

Value

(12/01/22)

 

 

 

 

    

 Ending

Account

Value

(05/31/23)

 

 

 

 

    

 Expenses

Paid

During

the

Period

  

 

 

 

(a)  

    

 Ending

Account

Value

(05/31/23)

 

 

 

 

    

 Expenses

Paid

During

the

Period

  

 

 

 

(a)  

    

 Including

Interest

Expense

and Fees

  

 

 

 

    

 Excluding

Interest

Expense

and Fees

  

 

 

 

Institutional

   $ 1,000.00     $ 1,016.30     $ 3.02     $ 2.21     $ 1,000.00     $ 1,021.94     $ 3.02     $ 1,022.74     $ 2.22       0.60 %      0.44 % 

Investor A

     1,000.00       1,015.10       4.22       3.42       1,000.00       1,020.74       4.23       1,021.54       3.43       0.84       0.68  

Investor A1

     1,000.00       1,015.80       3.47       2.66       1,000.00       1,021.49       3.48       1,022.29       2.67       0.69       0.53  

Investor C

     1,000.00       1,011.20       7.97       7.22       1,000.00       1,017.00       8.00       1,017.75       7.24       1.59       1.44  

 

 

F U N D   S U M M A R Y

   5

Fund Summary    as of May 31, 2023 (continued)   BlackRock California Municipal Opportunities Fund

 

Expense Example (continued)

 

    Actual     Hypothetical 5% Return        
 

 

 

    

 

 

      
                Expenses Paid During the
Period		           Including Interest
Expense
and Fees		     Excluding Interest
Expense
and Fees		     Annualized Expense Ratio  
     

 Beginning

Account

Value

(12/01/22)

 

 

 

 

    

 Ending

Account

Value

(05/31/23)

  

 

 

 

    

 Including

Interest

Expense

and Fees

  

 

 

(a) 

    

 Excluding

Interest

Expense

and Fees

  

 

 

(a) 

    

 Beginning

Account

Value

(12/01/22)

 

 

 

 

    

 Ending

Account

Value

(05/31/23)

 

 

 

 

    

 Expenses

Paid

During

the

Period

  

 

 

 

(a)  

    

 Ending

Account

Value

(05/31/23)

 

 

 

 

    

 Expenses

Paid

During

the

Period

  

 

 

 

(a)  

    

 Including

Interest

Expense

and Fees

  

 

 

 

    

 Excluding

Interest

Expense

and Fees

  

 

 

 

Class K

   $ 1,000.00     $ 1,015.60     $ 2.76     $ 1.96     $ 1,000.00     $ 1,022.19     $ 2.77     $ 1,022.99     $ 1.97       0.55 %      0.39 % 

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown).

 

See “Disclosure of Expenses” for further information on how expenses were calculated.

Portfolio Information

 

SECTOR ALLOCATION

   
Sector(a)(b)  

Percent of

Total Investments

  

Utilities

     34.8 % 

County/City/Special District/School District

     19.4  

State

     13.0  

Transportation

     12.4  

Education

     8.0  

Health

     4.3  

Corporate

     3.2  

Housing

     2.9  

Tobacco

     2.0  

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2023

     5.0 % 

2024

     0.3  

2025

     0.7  

2026

     10.4  

2027

     15.3  

CREDIT QUALITY ALLOCATION

   
Credit Rating(a)(d)  

Percent of

Total Investments

  

AAA/Aaa

     15.1 % 

AA/Aa

     59.0  

A

     11.2  

BBB/Baa

     1.0  

BB/Ba

     0.1  

CCC/Caa

     0.1  

N/R(e)

    13.5  
 

 

(a) 

Excludes short-term securities.

(b) 

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

(c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of May 31, 2023, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Fund’s total investments.

 

 

6  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary    as of May 31, 2023    BlackRock New Jersey Municipal Bond Fund

 

Investment Objective

BlackRock New Jersey Municipal Bond Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from Federal income tax and New Jersey personal income taxes.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended May 31, 2023, all of the Fund’s share classes underperformed its primary benchmark, the Bloomberg Municipal Bond Index with the exception of its Class K shares which outperformed and its Investor A1 and Institutional shares which performed in line. For the same period, all of the Fund’s share classes underperformed its secondary benchmark, a customized weighted index comprised of 90% Bloomberg Municipal Bond: New Jersey Exempt Total Return Index Unhedged USD/10% New Jersey Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (the “New Jersey Customized Reference Benchmark”). The following discussion of relative performance pertains to the New Jersey Customized Reference Benchmark.

What factors influenced performance?

Holdings in corporate-backed municipal bonds were the largest detractors from relative performance on a sector basis, led by low-coupon, high-duration positions. (Duration is a measure of interest rate sensitivity.) An overweight in healthcare detracted, as well. The Fund was also hurt by the investment adviser’s decision to sell long-duration bonds in the transportation sector at an inopportune time, locking in losses.

The Fund’s overweight to duration and holdings in longer-term bonds were further detractors of note.

The Fund used U.S. Treasury futures to manage interest rate risk, which contributed to performance at a time of rising rates. Cash and pre-refunded bonds also contributed to performance in the challenging environment. On a sector basis, the Fund benefited from an overweight in education. Well-timed, opportunistic purchases in the intermediate part of the yield curve were also additive to relative performance.

Describe recent portfolio activity.

The investment adviser’s activity was focused on reducing the portfolio’s duration. It achieved this by selling long-term issues, eliminating leverage, selling bonds with lower coupons and raising cash levels. In addition, it sought to harvest tax losses and swap into higher-yielding securities. While these steps led to a meaningful reduction in duration, the Fund was nonetheless slightly overweight to duration at the close of the period. The Fund also continued to have an overweight in long-term bonds.

Describe portfolio positioning at period end.

The investment adviser maintained an elevated cash position to help preserve capital in a time of heightened volatility and poor market performance. In addition, these positions started to provide a more attractive source of income following the Fed’s aggressive interest rate increases.

The Fund was overweight in longer-term debt. With respect to sectors, it was overweight in local general obligation, healthcare, higher education, school districts and corporate-backed bonds. It was underweight in state general obligations, transportation and tobacco. In terms of credit quality, the portfolio was barbelled with overweights in AAA, AA and high yield bonds and underweights in those rated A and BBB.

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.

GROWTH OF $10,000 INVESTMENT

 

LOGO

 

  (a) 

Assuming maximum sales charges, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge.

 
  (b) 

The Fund invests primarily in a portfolio of long-term investment grade New Jersey municipal bonds.

 
  (c) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

 

 

F U N D   S U M M A R Y

   7

Fund Summary    as of May 31, 2023 (continued)   BlackRock New Jersey Municipal Bond Fund

 

Performance

 

                Average Annual Total Returns(a)(b)  
     

 

 

  
                1 Year         5 Years         10 Years  
     

 

 

      

 

 

      

 

 

  
    

Standardized

30-Day Yields

    

Unsubsidized

30-Day Yields

    

Without

Sales

Charge

    

With

Sales

Charge

         

Without

Sales

Charge

    

With

Sales

Charge

         

Without

Sales

Charge

    

With

Sales

Charge

  

Institutional

     3.11 %      2.90 %      0.53 %      N/A         1.53 %      N/A         2.47 %      N/A  

Service

     2.86       2.64       0.28       N/A         1.28       N/A         2.26       N/A  

Investor A

     2.75       2.59       0.28       (3.98 )%          1.28       0.41 %          2.26       1.82 % 

Investor A1

     2.89       2.73       0.44       N/A         1.46       N/A         2.42       N/A  

Investor C

     2.11       1.94       (0.47 )      (1.44 )        0.52       0.52         1.66       1.66  

Class K

     3.16       3.00       0.58       N/A         1.60       N/A         2.50       N/A  

New Jersey Customized Reference Benchmark(c)

    —       —       1.70       N/A         2.63       N/A         N/A       N/A  

Bloomberg Municipal Bond Index

     —       —       0.49       N/A           1.65       N/A           2.28       N/A  

 

  (a) 

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

 
  (b) 

Under normal circumstances, the Fund will invest at least 80% of its assets in New Jersey municipal bonds.

 
  (c) 

A customized weighted index comprised of 90% Bloomberg Municipal Bond: New Jersey Exempt Total Return Index Unhedged USD/10% New Jersey Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index (the “New Jersey Customized Reference Benchmark”). The New Jersey Customized Reference Benchmark commenced on September 30, 2016.

 

N/A — Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual     Hypothetical 5% Return        
 

 

 

    

 

 

      
                Expenses Paid During the
Period		           Including Interest
Expense
and Fees		     Excluding Interest
Expense
and Fees		     Annualized Expense Ratio  
     

 Beginning

Account

Value

(12/01/22)

 

 

 

 

    

 Ending

Account

Value

(05/31/23)

  

 

 

 

    

 Including

Interest

Expense

and Fees

  

 

 

(a) 

    

 Excluding

Interest

Expense

and Fees

  

 

 

(a) 

    

 Beginning

Account

Value

(12/01/22)

 

 

 

 

    

 Ending

Account

Value

(05/31/23)

 

 

 

 

    

 Expenses

Paid

During

the

Period

  

 

 

 

(a)  

    

 Ending

Account

Value

(05/31/23)

 

 

 

 

    

 Expenses

Paid

During

the

Period

  

 

 

 

(a)  

    

 Including

Interest

Expense

and Fees

  

 

 

 

    

 Excluding

Interest

Expense

and Fees

  

 

 

 

Institutional

   $ 1,000.00     $ 1,027.90     $ 2.63     $ 2.63     $ 1,000.00     $ 1,022.34     $ 2.62     $ 1,022.34     $ 2.62       0.52 %      0.52 % 

Service

     1,000.00       1,026.60       3.89       3.89       1,000.00       1,021.09       3.88       1,021.09       3.88       0.77       0.77  

Investor A

     1,000.00       1,026.60       3.84       3.84       1,000.00       1,021.14       3.83       1,021.14       3.83       0.76       0.76  

Investor A1

     1,000.00       1,027.40       3.13       3.13       1,000.00       1,021.84       3.13       1,021.84       3.13       0.62       0.62  

Investor C

     1,000.00       1,022.80       7.67       7.67       1,000.00       1,017.35       7.64       1,017.35       7.64       1.52       1.52  

Class K

     1,000.00       1,028.10       2.38       2.38       1,000.00       1,022.59       2.37       1,022.59       2.37       0.47       0.47  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown).

 

See “Disclosure of Expenses” for further information on how expenses were calculated.

 

 

8  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary    as of May 31, 2023 (continued)   BlackRock New Jersey Municipal Bond Fund

 

Portfolio Information

 

SECTOR ALLOCATION

   
Sector(a)(b)  

Percent of

Total Investments

  

Transportation

     27.0 % 

State

     17.9  

Education

     15.1  

County/City/Special District/School District

     14.9  

Health

     12.3  

Corporate

     8.1  

Housing

     3.2  

Tobacco

     1.4  

Utilities

     0.1  

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2023

     9.0 % 

2024

     18.9  

2025

     3.4  

2026

     9.0  

2027

     13.1  

CREDIT QUALITY ALLOCATION

   
Credit Rating(a)(d)  

Percent of 

Total Investments

  

AAA/Aaa

     0.4 % 

AA/Aa

     42.4  

A

     44.3  

BBB/Baa

     6.0  

BB/Ba

     0.6  

B

     0.1  

N/R(e)

    6.2  
 

 

(a) 

Excludes short-term securities.

(b) 

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

(c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of May 31, 2023, the market value of unrated securities deemed by the investment adviser to be investment grade represents 1.5% of the Fund’s total investments.

 

 

F U N D   S U M M A R Y

   9

Fund Summary    as of May 31, 2023    BlackRock Pennsylvania Municipal Bond Fund

 

Investment Objective

BlackRock Pennsylvania Municipal Bond Fund’s (the “Fund”) investment objective is to provide shareholders with income exempt from Federal income tax and Pennsylvania personal income taxes.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended May 31, 2023, all of the Fund’s share classes underperformed its primary benchmark, the Bloomberg Municipal Bond Index, and the secondary benchmark, a customized weighted index comprised of 90% Bloomberg Pennsylvania Total Return Index Unhedged USD/10% Pennsylvania Bloomberg Municipal Bond High Yield (non-Investment Grade) Total Return Index (the “Pennsylvania Customized Reference Benchmark”). The following discussion of relative performance pertains to the Pennsylvania Customized Reference Benchmark.

What factors influenced performance?

On a sector basis, overweight positions in education and school district issues detracted from relative performance. Utilities and housing also detracted, but to a lesser extent. The Fund’s overweight to duration (interest rate sensitivity) and holdings in longer-term bonds were further detractors of note.

The Fund used U.S. Treasury futures to manage interest rate risk, which contributed to performance in the rising-rate environment. An underweight in healthcare—together with a higher-quality bias in the sector—also contributed. Holdings in floating-rate notes, which experienced lower volatility and better price performance than fixed-rate issues, further contributed. The Fund’s cash position was an additional contributor at a time of broader-market weakness.

Describe recent portfolio activity.

The investment adviser’s activity was focused on reducing the portfolio’s duration. It achieved this by selling long-term issues, eliminating leverage, selling bonds with lower coupons and raising cash levels. In addition, it sought to harvest tax losses and swap into higher-yielding securities. While these steps led to a meaningful reduction in duration, the Fund was nonetheless slightly overweight to duration at the close of the period. The Fund also continued to have an overweight in long-term bonds.

At the sector level, the Fund’s weightings in pre-refunded bonds, floating-rate notes and cash increased, while its holdings in hospitals, airports and lease-backed securities declined.

Describe portfolio positioning at period end.

The investment adviser maintained an elevated cash position to help preserve capital in a time of heightened volatility and poor market performance. In addition, these positions started to provide a more attractive source of income following the Fed’s aggressive interest rate increases.

The Fund was overweight in longer-term debt. On a sector basis, it was overweight in higher education, school districts, and corporate backed bonds. It was underweight in state general obligations, hospitals, and toll roads. In terms of credit quality, the portfolio was barbelled with overweights in AAA, AA and high yield bonds and underweights in those rated A and BBB.

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.

GROWTH OF $10,000 INVESTMENT

 

LOGO

 

  (a) 

Assuming maximum sales charges, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge.

 
  (b) 

The Fund invests primarily in a portfolio of long-term investment grade Pennsylvania municipal bonds.

 
  (c) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

 

 

10  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary    as of May 31, 2023 (continued)   BlackRock Pennsylvania Municipal Bond Fund

 

Performance

 

                Average Annual Total Returns(a)(b)  
     

 

 

  
                1 Year         5 Years         10 Years  
     

 

 

      

 

 

      

 

 

  
    

Standardized

30-Day Yields

    

Unsubsidized

30-Day Yields

    

Without

Sales

Charge

    

With

Sales

Charge

         

Without

Sales

Charge

    

With

Sales

Charge

         

Without

Sales

Charge

    

With

Sales

Charge

  

Institutional

     3.29 %      3.05 %      (1.82 )%      N/A         0.68 %      N/A         1.92 %      N/A  

Service

     3.04       2.88       (2.05 )      N/A         0.44       N/A         1.70       N/A  

Investor A

     2.92       2.79       (2.05 )      (6.21 )%        0.44       (0.43 )%        1.69       1.25 % 

Investor A1

     3.05       2.89       (1.91 )      N/A         0.59       N/A         1.85       N/A  

Investor C

     2.28       2.12       (2.79 )      (3.74 )        (0.31 )      (0.31 )        1.07       1.07  

Class K

     3.33       3.18       (1.77 )      N/A         0.73       N/A         1.94       N/A  

Pennsylvania Customized Reference Benchmark(c)

    —       —       (0.49 )      N/A         1.77       N/A         N/A       N/A  

Bloomberg Municipal Bond Index

     —       —       0.49       N/A           1.65       N/A           2.28       N/A  

 

  (a) 

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

 
  (b) 

Under normal circumstances, the Fund will invest at least 80% of its assets in Pennsylvania municipal bonds.

 
  (c) 

A customized weighted index comprised of 90% Bloomberg Pennsylvania Total Return Index Unhedged USD/10% Pennsylvania Bloomberg Municipal Bond: High Yield (non- Investment Grade) Total Return Index (the “Pennsylvania Customized Reference Benchmark”) .The Pennsylvania Customized Reference Benchmark commenced on September 30, 2016.

 

N/A — Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

    Actual     Hypothetical 5% Return        
 

 

 

    

 

 

      
                Expenses Paid During the
Period		           Including Interest
Expense
and Fees		     Excluding Interest
Expense
and Fees		     Annualized Expense Ratio  
     

 Beginning

Account

Value

(12/01/22)

 

 

 

 

    

 Ending

Account

Value

(05/31/23)

  

 

 

 

    

 Including

Interest

Expense

and Fees

  

 

 

(a) 

    

 Excluding

Interest

Expense

and Fees

  

 

 

(a) 

    

 Beginning

Account

Value

(12/01/22)

 

 

 

 

    

 Ending

Account

Value

(05/31/23)

 

 

 

 

    

 Expenses

Paid

During

the

Period

  

 

 

 

(a)  

    

 Ending

Account

Value

(05/31/23)

 

 

 

 

    

 Expenses

Paid

During

the

Period

  

 

 

 

(a)  

    

 Including

Interest

Expense

and Fees

  

 

 

 

    

 Excluding

Interest

Expense

and Fees

  

 

 

 

Institutional

   $ 1,000.00     $ 1,016.20     $ 2.71     $ 2.71     $ 1,000.00     $ 1,022.24     $ 2.72     $ 1,022.24     $ 2.72       0.54 %      0.54 % 

Service

     1,000.00       1,015.00       3.97       3.92       1,000.00       1,020.99       3.98       1,021.04       3.93       0.79       0.78  

Investor A

     1,000.00       1,015.00       3.92       3.92       1,000.00       1,021.04       3.93       1,021.04       3.93       0.78       0.78  

Investor A1

     1,000.00       1,016.80       3.22       3.22       1,000.00       1,021.74       3.23       1,021.74       3.23       0.64       0.64  

Investor C

     1,000.00       1,011.20       7.72       7.72       1,000.00       1,017.25       7.75       1,017.25       7.75       1.54       1.54  

Class K

     1,000.00       1,016.50       2.46       2.46       1,000.00       1,022.49       2.47       1,022.49       2.47       0.49       0.49  

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown).

 

See “Disclosure of Expenses” for further information on how expenses were calculated.

 

 

F U N D   S U M M A R Y

   11

Fund Summary    as of May 31, 2023 (continued)   BlackRock Pennsylvania Municipal Bond Fund

 

Portfolio Information

 

SECTOR ALLOCATION

   
Sector(a)(b)  

Percent of

Total Investments

  

County/City/Special District/School District

     20.4 % 

Health

     19.5  

Education

     18.0  

State

     12.0  

Transportation

     10.4  

Utilities

     7.8  

Corporate

     7.0  

Housing

     4.9  

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage  

2023

     12.7 % 

2024

     2.0  

2025

     9.2  

2026

     7.9  

2027

     13.2  

CREDIT QUALITY ALLOCATION

   
Credit Rating(a)(d)  

Percent of

Total Investments

  

AA/Aa

     43.4 % 

A

     31.0  

BBB/Baa

     6.2  

BB/Ba

     1.8  

B

     1.1  

N/R(e)

    16.5  
 

 

(a) 

Excludes short-term securities.

(b) 

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

(c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of May 31, 2023, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Fund’s total investments.

 

 

12  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary    as of May 31, 2023   BlackRock Impact Municipal Fund

 

Investment Objective

BlackRock Impact Municipal Fund’s (the “Fund”) investment objective is to seek to maximize income exempt from Federal income taxes while investing in municipal bonds the proceeds of which Fund management views as generating positive social and environmental impacts.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended May 31, 2023, the Fund outperformed its primary benchmark, a customized weighted index comprised of 65% Bloomberg Municipal Bond Index and 35% Bloomberg Municipal High Yield Bond Index (the “Customized Reference Benchmark”) and one of its secondary benchmarks, the Bloomberg Municipal High Yield Bond Index. For the same period, the Fund underperformed its other secondary benchmark, the Bloomberg Municipal Bond Index. The following discussion of relative performance pertains to the Customized Reference Benchmark.

What factors influenced performance?

The Fund used U.S. Treasury futures to help manage interest rate risk, which contributed to performance in the rising-rate environment. An underweight in the 15- to 18-year portion of the yield curve also contributed, as did an overweight in the 20- to 25-year range. The Fund’s large underweight in high-yield bonds, which lagged the investment-grade market, further helped results. Positive security selection in the education and healthcare sectors added value, as well.

On the other hand, an overweight in long-maturity bonds and an underweight in one- to 10-year securities detracted. The Fund’s underweight in AAA rated issues and overweights in AA and A rated bonds also detracted.

Describe recent portfolio activity.

As municipal yields rose, the investment adviser shifted the portfolio’s holdings toward higher-coupon issues (5% and above) and away from those with lower coupons (largely 4%).

Describe portfolio positioning at period end.

The Fund’s cash position was slightly elevated at the end of May 2023, which reflected the investment adviser’s effort to shorten duration (reduce interest rate sensitivity). The above-average cash balance did not have a material impact on Fund performance given the rising yields on short-term debt.

The Fund remained overweight in investment-grade issues and underweight in high yield at the close of the period. It was overweight in bonds with maturities of 18 years and longer, and it was overweight duration versus the benchmark. In terms of sector positioning, the Fund was overweight in housing and education and underweight in transportation and state tax-backed issues.

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.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The Fund commenced operations on March 14, 2022.

  (a) 

Assuming maximum sales charges, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge.

 
  (b) 

Under normal circumstances, the Fund invests 80% of its net assets, plus any borrowings for investment purposes, in municipal bonds and derivatives with similar economic characteristics.

 
  (c) 

A customized weighted index comprised of 65% Bloomberg Municipal Bond Index/35% Bloomberg Municipal High Yield Bond Index (the “Customized Reference Benchmark”).

 
  (d) 

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

 

 

F U N D   S U M M A R Y

   13

Fund Summary    as of May 31, 2023 (continued)       BlackRock Impact Municipal Fund

 

Performance

 

                Average Annual Total Returns(a)(b)  
     

 

 

  
                1 Year    

Since

Inception(c)

 
     

 

 

    

 

 

  
     Standardized
30-Day Yields		     Unsubsidized
30-Day Yields		     Without
Sales
Charge		     With
Sales
Charge		     Without
Sales
Charge		     With
Sales
Charge		  

Institutional

     3.47 %      2.14 %      0.27 %      N/A       (1.11 )%      N/A  

Investor A

     3.08       1.48       0.03       (4.22 )%      (1.35 )      (4.82 )% 

Class K

     3.52       2.17       0.31       N/A       (1.07 )      N/A  

Customized Reference Benchmark

     —       —       (0.43 )      N/A       (2.99 )      N/A  

Bloomberg Municipal Bond Index

     —       —       0.49       N/A       (1.87 )      N/A  

Bloomberg Municipal High Yield Bond Index(d)

    —       —       (2.17 )      N/A       (5.08 )      N/A  

 

  (a) 

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees.

 
  (b) 

Under normal circumstances, the Fund invests 80% of its net assets, plus any borrowings for investment purposes, in municipal bonds and derivatives with similar economic characteristics.

 
  (c) 

The Fund commenced operations on March 14, 2022.

 
  (d) 

An index designed to measure the performance of U.S. dollar-denominated high-yield municipal bonds issued by U.S. states, the District of Columbia, U.S. territories and local governments or agencies.

 

N/A — Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

        Actual     Hypothetical 5% Return            
            

 Beginning
Account Value
(12/01/22)		  
 
 		     

 Ending
Account Value
(05/31/23) 		 
 
 		     

 Expenses
Paid During
the Period		  
 
(a) 		    

 Beginning
Account Value
(12/01/22)		  
 
 		     

 Ending
Account Value
(05/31/23)		  
 
 		     

 Expenses
Paid During
the Period		  
 
(a) 		    

 Annualized
Expense
Ratio 		 
 
 		       
 

Institutional

     $ 1,000.00        $   1,026.30        $2.93       $1,000.00        $1,022.04        $      2.92       0.58 %   
 

Investor A

     1,000.00        1,025.20        4.09       1,000.00        1,020.89        4.08       0.81    
 

Class K

     1,000.00        1,026.60        2.68       1,000.00        1,022.29        2.67       0.53    

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown).

 

See “Disclosure of Expenses” for further information on how expenses were calculated.

 

 

14  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary    as of May 31, 2023 (continued)       BlackRock Impact Municipal Fund

 

Portfolio Information

 

SECTOR ALLOCATION

   
Sector(a)(b)   Percent of   
Total Investments   

Education

   18.4%

County/City/Special District/School District

   17.1   

Utilities

   14.4   

Housing

   13.5   

Health

   13.3   

State

   11.0   

Corporate

   6.4   

Transportation

   5.9   

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage   

2023

   —%

2024

   —   

2025

   —   

2026

   0.2   

2027

   6.0   

CREDIT QUALITY ALLOCATION

   
Credit Rating(a)(d)   Percent of   
Total Investments   

AAA/Aaa

   10.0%

AA/Aa

   49.3   

A

   19.2   

BBB/Baa

   10.4   

BB/Ba

   3.4   

B

   0.4   

N/R

   7.3   
 

 

(a) 

Excludes short-term securities.

(b) 

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

(c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

 

 

F U N D   S U M M A R Y

   15

Fund Summary    as of May 31, 2023    BlackRock Strategic Municipal Opportunities Fund

 

Investment Objective

BlackRock Strategic Municipal Opportunities Fund’s (the “Fund”) investment objective is to provide shareholders with a high level of income exempt from Federal income taxes.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended May 31, 2023, the Fund underperformed its primary benchmark, the Bloomberg Municipal Bond Index, as well as its secondary benchmark, a customized weighted index comprised of 72% Bloomberg Municipal Bond Index Total Return Index Value Unhedged/23% Bloomberg Municipal Bond: High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index Taxable Bonds Total Return Index Value (the “Customized Reference Benchmark”). The following discussion of relative performance pertains to the Customized Reference Benchmark.

What factors influenced performance?

The Fund’s positions in bonds with low coupons and longer duration (higher interest rate sensitivity) underperformed in the rising-rate environment. At the sector level, overweights in utilities (specifically in Puerto Rico) and housing were the largest detractors. An overweight in bonds with maturities of 12 years and above detracted, as well. From a credit perspective, holdings in AA rated and high yield bonds hurt performance, largely driven by the positions in Puerto Rico and the housing sector. The use of leverage, which magnified the impact of falling prices, further detracted. The investment adviser reduced the leverage position over the course of the period.

The Fund’s use of U.S. Treasury futures to manage interest rate risk contributed to performance, as did its short duration relative to its benchmark. Security selection in healthcare contributed, as well.

As of May 31, 2023, the Fund held 7.5% of net assets in cash and equivalents, up from 2.4% at the beginning of the period. The investment adviser took the opportunity to sell into strength at the end of 2022 and 2023, elevating the cash allocation and positioning the portfolio more defensively. The cash position contributed to performance at a time of rising rates due to its attractive yield and low duration.

Describe recent portfolio activity.

The investment adviser focused on selling housing bonds in order to raise the cash position. It also sought to reduce duration and decrease the Fund’s holdings in bonds with maturities of 20 years and longer.

The investment adviser decreased the Fund’s allocation to lower-quality investment-grade securities and non-rated issues. This led to a reduction in the Fund’s weighting in Puerto Rico from 11.4% at the beginning of the period to 8.6% at the end of May 2023.

Describe portfolio positioning at period end.

The Fund’s duration was 6.1 years, which was 0.8 years below that of the benchmark. The Fund maintained a short position in U.S. Treasury futures in an effort to mute volatility if rates resume their rise. The Fund’s largest overweight was to cash, followed by utilities and housing bonds. Its largest underweights included the tax-backed sectors, education, and pre-refunded bonds.

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.

GROWTH OF $10,000 INVESTMENT

 

LOGO

 

  (a) 

Assuming maximum sales charges, if any, transaction costs and other operating expenses, including advisory fees. Institutional Shares do not have a sales charge.

 
  (b) 

Under normal circumstances the Fund invests at least 80% of its assets in municipal bonds. The Fund’s returns prior to January 27, 2014 are the returns of the Fund when it followed different investment strategies under the name BlackRock Intermediate Municipal Fund.

 
  (c)

An unmanaged index that tracks the U.S. long term tax-exempt bond market, including state and local general obligation bonds, revenue bonds, pre-refunded bonds, and insured bonds.

 

 

 

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2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Fund Summary    as of May 31, 2023 (continued)       BlackRock Strategic Municipal Opportunities Fund

 

Performance

 

                Average Annual Total Returns(a)(b)  
                                                 
                1 Year     5 Years     10 Years  
                                                 
     Standardized
30-Day Yields		     Unsubsidized
30-Day Yields		     Without
Sales
Charge		     With
Sales
Charge		     Without
Sales
Charge		     With
Sales
Charge		     Without
Sales
Charge		     With
Sales
Charge		  

Institutional

     3.07 %      3.02 %      (1.74 )%      N/A       0.37 %      N/A       2.14 %      N/A  

Investor A

     2.75       2.69       (1.95 )      (6.11 )%      0.15       (0.72 )%      1.90       1.46 % 

Investor A1

     2.98       2.93       (1.81 )      N/A       0.28       N/A       2.05       N/A  

Investor C

     2.09       2.04       (2.70 )      (3.66 )      (0.61 )      (0.61 )      1.29       1.29  

Class K

     3.06       3.01       (1.66 )      N/A       0.44       N/A       2.18       N/A  

Customized Reference Benchmark(c)

    —       —       (0.15 )      N/A       1.87       N/A       N/A       N/A  

Bloomberg Municipal Bond Index

     —       —       0.49       N/A       1.65       N/A       2.28       N/A  

 

  (a) 

Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

 
  (b) 

Under normal circumstances the Fund invests at least 80% of its assets in municipal bonds. The Fund’s returns prior to January 27, 2014 are the returns of the Fund when it followed different investment strategies under the name BlackRock Intermediate Municipal Fund.

 
  (c) 

A customized weighted index comprised of 72% Bloomberg Municipal Bond Index Total Return Index Value Unhedged/23% Municipal Bond: High Yield (non-Investment Grade) Total Return Index/5% Bloomberg Municipal Index Taxable Bonds Total Return Index Value (the “Customized Reference Benchmark”). The Customized Reference Benchmark commenced on September 30, 2016.

 

N/A — Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

 

        Actual     Hypothetical 5% Return            
                      Expenses Paid During the
Period		           

Including Interest

Expense

and Fees

    

Excluding Interest
Expense

and Fees

     Annualized Expense Ratio      
         

 

 

       

 

 

    

 

 

    

 

 

    
            


 Beginning
Account
Value
(12/01/22)		  
 
 
 		     


 Ending
Account
Value
(05/31/23) 		 
 
 
 		     


 Including
Interest
Expense
and Fees		  
 
 
(a) 		    


 Excluding
Interest
Expense
and Fees		  
 
 
(a) 		    


 Beginning
Account
Value
(12/01/22)		  
 
 
 		     


 Ending
Account
Value
(05/31/23)		  
 
 
 		     




 Expenses

Paid
During
the
Period

  

 
 
 
(a) 

    


 Ending
Account
Value

(05/31/23)

  
 
 

 

     

Expenses
Paid
During

the

Period

  
 
 

 

(a)  

    


 Including
Interest
Expense
and Fees		  
 
 
 		    


 Excluding
Interest
Expense

and Fees

  
 
 

 

       
 

Institutional

     $ 1,000.00        $  1,019.40        $      3.78       $      3.07       $ 1,000.00        $ 1,021.19        $     3.78       $ 1,021.89        $       3.07       0.75 %      0.61 %   
 

Investor A

     1,000.00        1,018.30        4.83       4.13       1,000.00        1,020.14        4.84       1,020.84        4.13       0.96       0.82    
 

Investor A1

     1,000.00        1,018.10        4.13       3.42       1,000.00        1,020.84        4.13       1,021.54        3.43       0.82       0.68    
 

Investor C

     1,000.00        1,014.40        8.69       7.99       1,000.00        1,016.31        8.70       1,017.00        7.99       1.73       1.59    
 

Class K

     1,000.00        1,019.80        3.37       2.67       1,000.00        1,021.59        3.38       1,022.29        2.67       0.67       0.53    

 

  (a) 

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period shown).

 

See “Disclosure of Expenses” for further information on how expenses were calculated.

 

 

F U N D   S U M M A R Y

   17

Fund Summary    as of May 31, 2023 (continued)       BlackRock Strategic Municipal Opportunities Fund

 

Portfolio Information

 

SECTOR ALLOCATION

   
Sector(a)(b)  

Percent of   

Total Investments   

Utilities

   20.3%

Transportation

   17.5   

County/City/Special District/School District

   17.0   

State

   12.0   

Health

   10.7   

Housing

   8.6   

Education

   6.2   

Corporate

   5.4   

Tobacco

   1.0   

Other*

   1.3   

CALL/MATURITY SCHEDULE

   
Calendar Year Ended December 31,(a)(c)   Percentage   

2023

   6.7%

2024

   4.2   

2025

   2.5   

2026

   5.9   

2027

   11.8   

CREDIT QUALITY ALLOCATION

   
Credit Rating(a)(d)   Percent of   
Total Investments   

AAA/Aaa

   15.0%

AA/Aa

   43.0   

A

   14.4   

BBB/Baa

   5.8   

BB/Ba

   2.9   

B

   0.2   

CCC/Caa

   0.2   

N/R(e)

  18.5   
 

 

(a) 

Excludes short-term securities.

(b) 

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

(c) 

Scheduled maturity dates and/or bonds that are subject to potential calls by issuers over the next five years.

(d) 

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service, Inc. if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

(e) 

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors and individual investments. Using this approach, the investment adviser has deemed certain of these unrated securities as investment grade quality. As of May 31, 2023, the market value of unrated securities deemed by the investment adviser to be investment grade represents less than 1.0% of the Fund’s total investments.

*

Includes one or more investment categories that individually represents less than 1.0% of the Fund’s total investments. Please refer to the Schedule of Investments for details.

 

 

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2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

About Fund Performance  

 

Institutional Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors.

Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors. For each Fund, except BlackRock Impact Municipal Fund, Class K Shares performance shown prior to the Class K January 25, 2018 inception date is that of Institutional Shares. The performance of the Funds’ Class K Shares, except BlackRock Impact Municipal Fund, would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.

Service Shares (available only in BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund) are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee) and are only available to certain eligible investors.

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 4.25% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

Investor A1 Shares (available only in BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock Pennsylvania Municipal Bond Fund and BlackRock Strategic Municipal Opportunities Fund) are subject to a maximum initial sales charge (front-end load) of 4.00% and a service fee of 0.10% per year (but no distribution fee). Investor A1 Shares for BlackRock Strategic Municipal Opportunities Fund incur a maximum initial sales charge (front-end load) of 1.00% and a service fee of 0.10% per year (but no distribution fee) for BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund. The initial sales charge does not apply to current eligible shareholders of Investor A1 Shares of the Funds. Investor A1 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain eligible employer-sponsored retirement plans and, for BlackRock California Municipal Opportunities Fund only, fee based programs previously approved by the Fund. Certain redemptions of these shares may be subject to a CDSC where no initial sales charge was paid at the time of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through the reinvestment of dividends and capital gains by existing shareholders and, for BlackRock California Municipal Opportunities Fund only, fee based programs previously approved by the Fund.

Investor C Shares (available only in BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock Pennsylvania Municipal Bond Fund and BlackRock Strategic Municipal Opportunities Fund) are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. These shares automatically convert to Investor A Shares after approximately eight years.

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of each Fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Refer to blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Figures shown in the performance table(s) assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date or payable date, as applicable. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver(s) and/or reimbursement(s), each Fund’s performance would have been lower. With respect to each Fund’s voluntary waiver(s), if any, the Manager is under no obligation to waive and/or reimburse or to continue waiving and/or reimbursing its fees and such voluntary waiver(s) may be reduced or discontinued at any time. With respect to each Fund’s contractual waiver(s), if any, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See the Notes to Financial Statements for additional information on waivers and/or reimbursements.

The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.

 

 

A B O U T   F U N D   P E R F O R M A N C E

   19

Disclosure of Expenses       

 

Shareholders of each Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense examples provide information about actual account values and actual expenses. Annualized expense ratios reflect contractual and voluntary fee waivers, if any. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their Fund and share class under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in these Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical examples are useful in comparing ongoing expenses only and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

 

 

20  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

The Benefits and Risks of Leveraging  

 

The Funds may utilize leverage to seek to enhance returns and net asset value (“NAV”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

Each Fund may leverage its assets through the use of proceeds received in tender option bond (“TOB”) transactions, as described in the Notes to Financial Statements. In a TOB Trust transaction, each Fund transfers municipal bonds or other municipal securities into a special purpose entity (a “TOB Trust”). TOB investments generally provide each Fund with economic benefits in periods of declining short-term interest rates but expose each Fund to risks during periods of rising short-term interest rates. Additionally, fluctuations in the market value of municipal bonds deposited into a TOB Trust may adversely affect each Fund’s NAV per share.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by each Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, each Fund’s shareholders benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is distributed to the Funds’ shareholders, and the value of these portfolio holdings is reflected in each Fund’s per share NAV. However, in order to benefit shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other ongoing costs of leverage exceed a Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Fund had not used leverage.

Furthermore, the value of each Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can also influence the value of portfolio investments. As a result, changes in interest rates can influence each Fund’s NAV positively or negatively in addition to the impact on each Fund’s performance from leverage. Changes in the direction of interest rates are difficult to predict accurately, and there is no assurance that a Fund’s leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV of a Fund’s shares than if the Fund was not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of the leverage instruments, which may cause the Funds to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by each Fund’s shareholders and may reduce income.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Funds must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

T H E   B E N E F I T S   A N D   R I S K S   O F   L E V E R A G I N G   /   D E R I V A T I V E   F I N A N C I A L   I N S T R U M E N T S

   21

Schedule of Investments

May 31, 2023

   

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

Corporate Bonds

    

Education — 0.0%

    

Chapman University, 3.00%, 04/01/51

   $       2,100     $        1,477,761  
   

 

 

  

Total Corporate Bonds — 0.0%
(Cost: $2,100,000)

       1,477,761  
   

 

 

  

Municipal Bonds

    

California — 76.0%

    

Corporate(a) — 2.9%

    

California Community Choice Financing Authority, RB

    

5.00%, 07/01/53

     25,660       26,905,896  

5.00%, 12/01/53

     15,905       16,564,326  

Series B-1, 4.00%, 02/01/52

     25,015       24,785,187  

Series C, 5.25%, 01/01/54

     5,000       5,166,910  
   

 

 

  
      73,422,319  

County/City/Special District/School District — 17.5%

 

Chaffey Joint Union High School District, GO, 5.25%, 08/01/52

     5,000       5,554,340  

City & County of San Francisco California Community Facilities District No. 2014-1, ST

    

Series B, 3.78%, 09/01/30

     1,110       1,010,217  

Series B, 3.92%, 09/01/31

     3,410       3,089,804  

Series B, 3.97%, 09/01/32

     1,880       1,691,727  

Series B, 4.02%, 09/01/33

     2,070       1,850,443  

City & County of San Francisco California, GO

    

4.00%, 06/15/45

     1,300       1,285,804  

Class C1, 4.00%, 06/15/45

     5,010       5,031,047  

Class E1, 4.00%, 06/15/41

     3,185       3,229,135  

Series 2020, 4.00%, 06/15/45

     2,000       2,008,402  

Series 2020, Class D-1, 4.00%, 06/15/46

     2,500       2,505,210  

Series B-1, 4.00%, 06/15/39

     2,010       2,053,927  

Series B-1, 4.00%, 06/15/41

     2,265       2,301,981  

Series D-1, 4.00%, 06/15/41

     1,625       1,625,450  

Series D-1, 4.00%, 06/15/43

     870       878,346  

Series A, AMT, 4.00%, 06/15/36

     5,155       5,200,792  

City & County of San Francisco California, Refunding COP, Series A, 4.00%, 04/01/44

     10,000       9,605,530  

Coast Community College District, GO, Series B, Election 2002, (AGM), 0.00%, 08/01/30(b)

     26,425       21,239,094  

El Monte City School District, Refunding GO, Series C, (BAM), 5.00%, 08/01/52

     5,000       5,354,625  

Elk Grove Unified School District, GO, 4.00%, 08/01/44

     10,000       9,928,820  

Escondido Union School District, GO, Series B, Election 2014, 4.00%, 08/01/43

     2,150       2,155,504  

Fremont Union High School District, GO, 4.00%, 08/01/48(c)

     15,000       14,777,880  

Grossmont-Cuyamaca Community College District, GO, Series B, Election 2012, 5.00%, 08/01/44

     29,715       31,765,424  

Los Angeles Community College District, GO

    

Series K, Election 2008, 4.00%, 08/01/38

     40       40,452  

Series K, Election 2008, 4.00%, 08/01/39

     10,000       10,082,860  

Los Angeles Community College District, Refunding GO, 2.11%, 08/01/32

     2,590       2,142,860  

Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue, Refunding RB

    

Series A, 5.00%, 07/01/37

     19,235       20,926,718  

Series A, 5.00%, 07/01/41

     1,100       1,172,365  
Security  

Par

(000)

     Value  

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

 

Los Angeles County Metropolitan Transportation Authority Sales Tax Revenue, Refunding RB (continued)

    

Series A, 5.00%, 07/01/44

   $     25,935     $      27,798,585  

Los Angeles County Public Works Financing Authority, Refunding RB, Class A, 4.00%, 12/01/43

     10,100       10,035,592  

Los Angeles Unified School District, GO, Series RYQ, 4.00%, 07/01/44

     14,745       14,639,588  

Lucia Mar Unified School District, GO, Series D, 5.25%, 08/01/47

     9,000       9,914,220  

Mount San Antonio Community College District, Refunding GO, Series 2018-A, Election 2018, 4.00%, 08/01/49

     9,000       8,797,473  

North Orange County Community College District, GO, Series B, Election 2014, 4.00%, 08/01/44

     3,575       3,588,943  

Orange County Local Transportation Authority Sales Tax Revenue, RB

    

5.00%, 02/15/39

     2,000       2,187,278  

5.00%, 02/15/40

     5,000       5,452,685  

Peralta Community College District, GO, Series B, 5.25%, 08/01/42

     3,000       3,448,566  

San Carlos School District, GO, Election 2012, 4.00%, 10/01/41

     1,500       1,507,544  

San Diego Community College District, Refunding GO, 2.38%, 08/01/33

     5,375       4,370,853  

San Diego Unified School District, GO, Series L, 4.00%, 07/01/44

     3,750       3,749,077  

San Francisco City & County Redevelopment Agency Successor Agency, Refunding TA

    

Series D, 3.13%, 08/01/28

     1,150       1,055,314  

Series D, 3.25%, 08/01/29

     1,000       907,129  

Series D, 3.38%, 08/01/30

     1,250       1,124,300  

San Francisco City & County Redevelopment Financing Authority, TA, Series A, (BHAC-CR MBIA), 5.75%, 08/01/37

     5,000       5,305,775  

San Joaquin County Transportation Authority Measure K Sales Tax Revenue, Refunding RB, 5.00%, 03/01/41

     17,955       18,804,918  

San Jose Redevelopment Agency Successor Agency, Refunding TA, Series A-T, 3.25%, 08/01/29

     8,730       8,018,426  

San Jose Unified School District, GO

    

Series C, Election 2002, (NPFGC), 0.00%, 06/01/31(b)

     25,000       19,705,375  

Series F, Election 2012, 4.00%, 08/01/42

     4,000       4,055,512  

San Lorenzo Unified School District, GO, 4.00%, 08/01/40

     1,115       1,124,772  

San Luis Obispo County Financing Authority, Refunding RB, 5.50%, 11/15/47

     5,165       5,791,659  

San Mateo County Community College District, GO, Series B, Election 2014, 5.00%, 09/01/45

     30,000       32,147,010  

San Mateo Foster City Public Financing Authority, RB, 4.00%, 05/01/45

     4,000       3,966,244  

Santa Clara Unified School District, GO

    

4.00%, 07/01/41

     12,475       12,904,739  

Election 2014, 4.00%, 07/01/41

     5,000       5,038,375  

Santa Clarita Community College District, GO

    

Election 2016, 4.00%, 08/01/42

     1,400       1,408,887  

Election 2016, 5.25%, 08/01/48

     4,000       4,448,204  
 

 

 

22  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

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

 

Santa Cruz City Elementary School District, GO

    

Series C, 2.00%, 08/01/34

   $       1,770     $        1,553,679  

Series C, 2.00%, 08/01/36

     695       569,822  

Santa Cruz City High School District, GO

    

Series C, 2.00%, 08/01/35

     450       382,968  

Series C, 2.00%, 08/01/36

     1,755       1,437,859  

Series C, 2.00%, 08/01/37

     2,870       2,268,434  

Series C, 2.00%, 08/01/38

     2,955       2,261,559  

Series C, 2.13%, 08/01/39

     3,070       2,340,614  

Santa Monica Community College District, GO, Series B, 4.00%, 08/01/45

     2,470       2,426,928  

South Orange County Public Financing Authority, RB

    

5.00%, 06/01/43

     1,790       1,941,167  

5.00%, 06/01/47

     13,300       14,268,958  

Val Verde Unified School District, GO, (AGM), 5.00%, 08/01/51

     4,000       4,313,484  

West Valley-Mission Community College District, GO

    

Series B, 5.00%, 08/01/47

     10,000       10,983,500  

Series A, AMT, 4.00%, 08/01/44

     8,000       8,020,424  
   

 

 

  
      442,575,196  
Education — 7.2%            

California Educational Facilities Authority, RB, Series A, 3.56%, 04/01/31

     2,000       1,781,404  

California Infrastructure & Economic Development Bank, RB

    

5.00%, 01/01/24(d)(e)

     275       274,106  

4.13%, 01/01/35(d)

     985       811,584  

5.00%, 01/01/55(d)

     2,205       1,635,713  

0.00%, 01/01/60(b)

     37,500       2,217,375  

Class B, 0.00%, 01/01/61(b)(d)

     17,830       924,985  

California Infrastructure & Economic Development Bank, Refunding RB

    

Series A, 1.60%, 10/01/29

     3,575       3,027,103  

Series A, 1.84%, 10/01/31

     1,100       898,385  

California Municipal Finance Authority, RB

    

5.00%, 06/15/41(d)

     925       859,652  

6.00%, 07/01/44

     500       500,446  

5.00%, 06/15/51(d)

     1,385       1,224,099  

Series A, 5.50%, 08/01/34(d)

     265       265,436  

California Municipal Finance Authority, Refunding RB(d)

    

5.00%, 08/01/39

     1,785       1,696,123  

5.00%, 08/01/48

     2,140       1,904,403  

California Public Finance Authority, RB, Series B, 5.00%, 07/01/26(d)

     265       260,745  

California School Finance Authority, RB(d)

    

5.00%, 06/01/40

     1,420       1,078,385  

5.00%, 06/01/50

     2,240       1,577,027  

Series A, 5.00%, 06/01/33

     525       531,095  

Series A, 5.00%, 06/01/43

     525       505,804  

Series A, 5.00%, 06/01/49

     7,105       6,333,923  

Series A, 6.00%, 07/01/51

     1,500       1,531,157  

Series A, 5.00%, 06/01/55

     1,000       925,640  

Series A, 5.00%, 06/01/58

     3,355       2,916,881  

Series B, 6.00%, 06/01/31

     735       657,267  

Series A, AMT, 6.00%, 06/01/59

     8,925       8,359,084  

California State University, Refunding RB

    

Series A, 5.00%, 11/01/43

     29,975       31,974,722  

Series B, 1.85%, 11/01/31

     6,750       5,451,293  
Security  

Par

(000)

     Value  
Education (continued)            

California State University, Refunding RB (continued)

    

Series B, 2.53%, 11/01/33

   $       2,580     $        2,120,040  

Series D, 1.69%, 11/01/29

     5,000       4,217,210  

California Statewide Communities Development Authority, Refunding RB(d)

    

Series A, 5.00%, 06/01/36

     2,900       2,832,334  

Series A, 5.00%, 06/01/46

     4,100       3,750,750  

Hastings Campus Housing Finance Authority, RB, Series A, 5.00%, 07/01/61(d)

     7,640       5,945,593  

University of California, RB, Series AV, 5.25%, 05/15/42

     12,305       13,053,956  

University of California, RB, BAB, 6.30%, 05/15/50

     3,790       3,986,352  

University of California, Refunding RB

    

Series AZ, 5.00%, 05/15/43

     41,740       44,254,376  

Series BH, 4.00%, 05/15/46

     12,000       11,781,192  

Series Q, 4.00%, 05/15/41

     10,300       10,384,594  
   

 

 

  
      182,450,234  
Health — 3.2%            

California Health Facilities Financing Authority, Refunding RB

    

Series A, 4.00%, 08/15/40

     6,750       6,823,737  

Series A, 4.00%, 11/15/40

     3,085       3,112,407  

Series A-2, 4.00%, 11/01/44

     20,000       19,556,540  

Series B, 4.00%, 11/15/41

     1,350       1,341,009  

California Municipal Finance Authority, Refunding RB, Series A, 5.00%, 11/01/39(d)

     980       982,484  

California Public Finance Authority, RB

    

Series A, 4.00%, 07/15/41

     4,810       4,763,064  

Series A, 5.00%, 07/15/46

     5,375       5,821,480  

California Public Finance Authority, Refunding RB, Series A, 5.00%, 08/01/47

     4,000       4,165,744  

City of Corona California, RB, 2.24%, 05/01/30

     10,000       8,504,790  

City of Huntington Beach California, Refunding RB, 2.32%, 06/15/30

     2,750       2,342,560  

Regents of the University of California Medical Center Pooled Revenue, RB

    

Series P, 5.00%, 05/15/41

     4,830       5,355,895  

Series P, 4.00%, 05/15/43

     10,000       9,859,960  

Regents of the University of California Medical Center Pooled Revenue, Refunding RB, Series L, 5.00%, 05/15/41

     8,215       8,542,154  
   

 

 

  
      81,171,824  
Housing — 2.6%            

California Community Housing Agency, RB, M/F Housing(d)

    

4.00%, 08/01/46

     3,200       2,496,832  

Series A, 5.00%, 04/01/49

     2,630       2,259,317  

Series A-1, 3.00%, 02/01/57

     5,000       3,065,405  

Series A-2, 4.00%, 02/01/50

     1,600       1,179,611  

Series A-2, 4.00%, 08/01/51

     12,920       8,717,861  

City & County of San Francisco California, RB, M/F Housing, Series J, (FNMA COLL), 2.55%, 07/01/39

     21,460       16,406,106  

CMFA Special Finance Agency VII, RB, M/F Housing, Series A1, 3.00%, 08/01/56(d)

     1,430       939,672  

CMFA Special Finance Agency VIII, RB, M/F Housing, Series A-1, 3.00%, 08/01/56(d)

     4,840       3,092,977  

CMFA Special Finance Agency XII, RB, M/F Housing, 4.38%, 08/01/49(d)

     2,740       2,120,905  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   23

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Housing (continued)            

CMFA Special Finance Agency, RB, M/F Housing, Series A-2, 4.00%, 08/01/45(d)

   $       1,205     $           947,504  

CSCDA Community Improvement Authority, RB, M/F Housing(d)

    

2.80%, 03/01/47

     3,430       2,560,169  

3.13%, 07/01/56

     5,620       3,822,786  

3.13%, 08/01/56

     1,460       1,014,198  

4.00%, 12/01/56

     445       313,714  

3.25%, 04/01/57

     3,930       2,653,917  

3.25%, 05/01/57

     4,140       2,884,321  

4.00%, 07/01/58

     2,150       1,526,878  

Series A, 3.00%, 09/01/56

     2,045       1,331,675  

Series B, 4.00%, 07/01/58

     2,450       1,700,378  

Mezzanine Lien, 4.00%, 03/01/57

     500       349,828  

Series B, Mezzanine Lien, 4.00%, 12/01/59

     2,925       1,878,906  

Senior Lien, 3.13%, 06/01/57

     3,850       2,591,551  

Series B, Sub Lien, 4.00%, 12/01/59

     4,580       3,104,800  
   

 

 

  
      66,959,311  
State — 7.6%            

California State Public Works Board, RB

    

4.00%, 11/01/41

     6,825       6,856,975  

5.00%, 12/01/47

     2,435       2,643,402  

Series B, 4.00%, 05/01/39

     2,545       2,595,394  

Series B, 4.00%, 05/01/41

     3,860       3,909,362  

Series C, 5.00%, 11/01/44

     24,985       26,826,644  

California State University, Refunding RB, Series B, 1.67%, 11/01/29

     9,000       7,583,040  

California Statewide Communities Development Authority, SAB

    

Series A, 5.00%, 09/02/39

     1,375       1,421,039  

Series A, 5.00%, 09/02/44

     675       690,614  

Irvine Facilities Financing Authority, ST, (BAM), 5.00%, 09/01/48

     20,845       22,792,465  

San Francisco City & County Redevelopment Agency Successor Agency, TA(b)(d)

    

Series D, 0.00%, 08/01/23

     465       463,377  

Series D, 0.00%, 08/01/31

     3,000       2,032,059  

State of California, Refunding GO

    

6.00%, 03/01/33

     3,590       3,980,032  

5.00%, 10/01/39

     5,000       5,246,095  

5.25%, 10/01/39

     18,150       19,169,286  

4.00%, 03/01/40

     13,000       13,176,553  

5.00%, 09/01/42

     14,185       15,914,251  

5.00%, 10/01/45

     7,000       7,824,362  

5.25%, 10/01/45

     15,000       17,126,205  

5.25%, 09/01/47

     10,000       11,275,380  

5.25%, 10/01/50

     19,055       21,529,139  
   

 

 

  
      193,055,674  
Tobacco — 1.4%            

California County Tobacco Securitization Agency, Refunding RB

    

5.00%, 06/01/50

     1,030       1,000,492  

Series A, 5.00%, 06/01/47

     2,595       2,453,539  

Series B-2, Subordinate, 0.00%, 06/01/55(b)

     7,620       1,230,988  

California Statewide Financing Authority, RB(b)(d)

    

Series D, 0.00%, 06/01/55

     20,750       1,323,041  

Series L, 0.00%, 06/01/55

     91,500       5,245,146  
Security  

Par

(000)

     Value  
Tobacco (continued)            

Golden State Tobacco Securitization Corp., Refunding RB

    

Class B, (SAP), 2.75%, 06/01/34

   $       5,175     $        4,229,900  

Subordinate, 3.85%, 06/01/50

     5,435       4,847,683  

Inland Empire Tobacco Securitization Corp., RB, 0.00%, 06/01/57(b)

     34,680       1,999,475  

Inland Empire Tobacco Securitization Corp., Refunding RB, 3.68%, 06/01/38

     3,645       3,512,329  

Tobacco Securitization Authority of Southern California, Refunding RB, 5.00%, 06/01/48

     10,000       10,280,060  
   

 

 

  
      36,122,653  
Transportation — 11.3%            

Burbank-Glendale-Pasadena Airport Authority Brick Campaign, ARB, Series B, 5.56%, 07/01/32

     1,000       1,039,081  

California Infrastructure & Economic Development Bank, RB, Series A, AMT, 3.65%, 01/01/50(a)(d)

     25,000       24,899,150  

City of Long Beach California Harbor Revenue, Refunding ARB, Series C, 5.00%, 05/15/47

     6,400       6,713,645  

City of Los Angeles Department of Airports, ARB

    

AMT, 5.25%, 05/15/47

     7,000       7,567,791  

Series A, AMT, 4.00%, 05/15/40

     5,160       4,992,486  

Series A, AMT, 5.00%, 05/15/40

     6,615       6,695,809  

Series A, AMT, 5.00%, 05/15/44

     8,010       8,203,618  

Series B, AMT, 5.00%, 05/15/41

     18,710       19,023,636  

Series C, AMT, 5.00%, 05/15/45

     20,000       21,145,280  

Series D, AMT, 5.00%, 05/15/41

     8,520       8,635,301  

Sub-Series A, AMT, 5.00%, 05/15/47

     3,500       3,551,233  

City of Los Angeles Department of Airports, Refunding ARB

    

AMT, 5.00%, 05/15/43

     2,000       2,062,300  

AMT, Subordinate, 5.00%, 05/15/35

     5,425       5,770,573  

AMT, Subordinate, 5.00%, 05/15/46

     4,985       5,266,044  

Norman Y Mineta San Jose International Airport SJC, Refunding RB, Series A, AMT, 5.00%, 03/01/47

     4,660       4,749,332  

Port of Los Angeles, Refunding RB, Series C, 4.00%, 08/01/39

     3,570       3,601,398  

San Diego County Regional Airport Authority, Refunding ARB, Series B, 4.00%, 07/01/44

     3,815       3,525,525  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding ARB

    

2nd Series, AMT, 5.00%, 05/01/48

     10,145       10,378,913  

Series A, AMT, 5.00%, 05/01/39

     9,995       10,434,190  

Series A, AMT, 5.25%, 05/01/42

     40,370       41,954,078  

Series A, AMT, 5.00%, 05/01/47

     34,305       34,984,513  

Series B, AMT, 5.00%, 05/01/46

     29,915       30,383,918  

Series D, AMT, 5.00%, 05/01/43

     6,440       6,645,391  

Series D, AMT, 5.25%, 05/01/48

     3,500       3,622,882  

Series E, AMT, 5.00%, 05/01/38

     9,055       9,526,711  
   

 

 

  
      285,372,798  
Utilities — 22.3%            

California Statewide Communities Development Authority, Refunding RB, 1.68%, 02/01/29

     1,000       839,336  

City of Los Angeles California Wastewater System Revenue, Refunding RB

    

Series A, 5.00%, 06/01/43

     10,000       10,692,590  

Series A, Subordinate, 5.00%, 06/01/47

     12,655       13,994,696  
 

 

 

24  

2 0 2 3  B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Utilities (continued)            

City of Sacramento California Water Revenue, RB, 5.00%, 09/01/42

   $       6,465     $        6,832,160  

East Bay Municipal Utility District Water System Revenue, RB

    

Series A, 5.00%, 06/01/42

     27,045       28,693,528  

Series A, 4.00%, 06/01/45

     4,885       4,882,172  

Series A, 5.00%, 06/01/49

     2,500       2,683,513  

Eastern Municipal Water District Financing Authority, RB

    

Series D, 5.25%, 07/01/42

     18,500       19,916,730  

Series D, 5.00%, 07/01/47

     36,105       38,047,160  

Eastern Municipal Water District Financing Authority, Refunding RB, Series B, 4.00%, 07/01/34

     5,455       5,600,523  

Imperial Irrigation District, RB, (AMBAC), 6.94%, 01/01/26

     6,085       6,241,384  

Irvine Ranch Water District, COP, 5.00%, 03/01/46

     19,330       20,184,251  

Irvine Ranch Water District, SAB, 5.25%, 02/01/41

     2,000       2,120,320  

Los Angeles Department of Water & Power Water System Revenue, Refunding RB 5.00%, 07/01/52

     3,750       4,095,439  

Series A, 5.00%, 07/01/41

     11,020       11,576,323  

Series A, 5.25%, 07/01/44

     10,650       11,236,453  

Series A, 5.00%, 07/01/46

     20,000       20,638,580  

Series B, 4.00%, 07/01/49

     10,000       9,867,790  

Series C, 5.00%, 07/01/43

     5,000       5,542,065  

Los Angeles Department of Water & Power, Refunding RB, Series B, 5.00%, 07/01/51

     29,545       31,917,286  

Metropolitan Water District of Southern California, Refunding RB, Series C, 5.00%, 07/01/39

     10,000       11,164,520  

Modesto Irrigation District, RB, 5.25%, 10/01/48

     18,500       20,623,744  

Northern California Power Agency, RB, BAB, Series A, 7.31%, 06/01/40

     2,150       2,467,776  

Sacramento County Sanitation Districts Financing

    

Authority, Refunding RB, Series A, 5.00%, 12/01/45

     10,015       10,845,073  

Sacramento Municipal Utility District, RB

    

Series G, 5.00%, 08/15/38

     12,000       13,192,692  

Series G, 5.00%, 08/15/41

     20,020       21,656,415  

Sacramento Municipal Utility District, Refunding RB

    

Series H, 4.00%, 08/15/40

     7,700       7,842,088  

Series H, 4.00%, 08/15/45

     8,760       8,660,697  

San Diego Public Facilities Financing Authority, Refunding RB

    

Series A, 5.00%, 05/15/36

     5,000       5,345,945  

Series A, 5.00%, 05/15/38

     13,595       14,524,640  

Series A, 5.25%, 08/01/48

     14,340       16,135,124  

Series B, 5.00%, 08/01/38

     7,725       8,119,045  

Series B, 5.00%, 08/01/39

     8,735       9,148,157  

Series A, AMT, 4.00%, 08/01/45

     10,000       9,921,460  

San Francisco City & County Public Utilities Commission Power Revenue, Refunding RB

    

Series A, 4.00%, 11/01/41

     2,515       2,540,557  

Series A, 4.00%, 11/01/43

     2,390       2,398,095  

San Francisco City & County Public Utilities Commission Wastewater Revenue, RB

    

Series B, 1.00%, 10/01/26

     27,880       26,295,998  

Series B, 5.00%, 10/01/43

     41,405       44,069,660  

San Francisco City & County Public Utilities Commission Wastewater Revenue, Refunding RB 5.00%, 10/01/41

     4,875       5,477,456  
Security  

Par

(000)

     Value  
Utilities (continued)            

San Francisco City & County Public Utilities Commission Wastewater Revenue, Refunding RB (continued)

    

Series A, 5.00%, 10/01/46

   $       3,100     $        3,398,018  

Series A, 4.00%, 10/01/47

     10,000       9,967,290  

Series B, 4.00%, 10/01/42

     17,010       17,013,419  

Series B, 5.00%, 10/01/43

     2,965       3,275,305  

Series B, 5.00%, 10/01/44

     2,515       2,770,280  

Series B, 5.00%, 10/01/48

     4,290       4,692,338  

San Jose Financing Authority, Refunding RB

    

5.00%, 11/01/47

     4,945       5,478,264  

Series B, 5.00%, 11/01/52

     12,490       13,720,964  

San Mateo Foster City Public Financing Authority, RB, 4.00%, 08/01/44

     5,205       5,152,622  

South Coast Water District Financing Authority, Refunding RB, Series A, 5.00%, 02/01/44

     2,480       2,677,401  
   

 

 

  
      564,177,342  
   

 

 

  

Total Municipal Bonds in California

       1,925,307,351  
Illinois — 0.1%            

County/City/Special District/School District — 0.1%

 

  

Chicago Board of Education, GO, BAB, 6.14%, 12/01/39

     2,060       1,947,590  
   

 

 

  

Puerto Rico — 7.5%

    
State — 4.2%            

Commonwealth of Puerto Rico, GO

    

1.00%, 11/01/43(a)

     18,362       8,910,911  

1.00%, 11/01/51(a)

     24,815       9,895,285  

Series A, Restructured, 0.00%, 07/01/33(b)

     2,467       1,421,110  

Series A1, Restructured, 5.63%, 07/01/29

     5,196       5,517,169  

Series A1, Restructured, 5.75%, 07/01/31

     2,021       2,171,602  

Series A1, Restructured, 4.00%, 07/01/33

     1,917       1,751,791  

Series A1, Restructured, 4.00%, 07/01/35

     1,723       1,564,829  

Series A1, Restructured, 4.00%, 07/01/37

     1,479       1,262,895  

Series A1, Restructured, 4.00%, 07/01/41

     2,010       1,658,132  

Series A1, Restructured, 4.00%, 07/01/46

     2,091       1,669,908  

Commonwealth of Puerto Rico, RB, 1.00%, 11/01/51(a)

     1,124       359,568  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

    

Series A-2, Convertible, Restructured, 4.33%, 07/01/40

     380       350,741  

Series A1, Restructured, 0.00%, 07/01/29(b)

     1,117       846,937  

Series A1, Restructured, 0.00%, 07/01/33(b)

     3,239       2,012,242  

Series A1, Restructured, 0.00%, 07/01/46(b)

     54,873       14,779,768  

Series A1, Restructured, 4.75%, 07/01/53

     26,728       24,570,275  

Series A1, Restructured, 5.00%, 07/01/58

     5,583       5,320,794  

Series A-2, Restructured, 4.54%, 07/01/53

     114       100,211  

Series A-2, Restructured, 4.78%, 07/01/58

     12,102       11,070,486  

Series A-2, Restructured, 4.33%, 07/01/40

     10,624       9,818,031  

Series B1, Restructured, 0.00%, 07/01/46(b)

     5,761       1,498,154  
   

 

 

  
      106,550,839  
Tobacco — 0.4%            

Children’s Trust Fund, RB, Series A, 0.00%, 05/15/57(b)

     150,000       9,419,250  
   

 

 

  
Utilities — 2.9%            

Puerto Rico Electric Power Authority, RB(f)(g)

    

3rd Series, 5.40%, 01/01/23

     593       431,736  

Series A, 5.00%, 07/01/29

     4,130       2,954,466  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   25

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock California Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Utilities (continued)            

Puerto Rico Electric Power Authority, RB(f)(g) (continued)

    

Series A, 7.00%, 07/01/33

   $       2,230     $        1,622,325  

Series A, 5.00%, 07/01/42

     8,830       6,316,691  

Series A, 7.00%, 07/01/43

     955       694,763  

Series A-3, 10.00%, 07/01/19

     2,137       1,554,312  

Series B-3, 10.00%, 07/01/19

     2,137       1,554,312  

Series C-1, 5.40%, 01/01/18

     5,870       4,270,387  

Series C-2, 5.40%, 07/01/18

     5,871       4,271,078  

Series C-4, 5.40%, 07/01/20

     593       431,736  

Series CCC, 5.25%, 07/01/26

     1,680       1,201,817  

Series CCC, 5.25%, 07/01/28

     955       683,175  

Series D-4, 7.50%, 07/01/20

     1,638       1,191,645  

Series TT, 5.00%, 07/01/25

     480       343,376  

Series TT, 5.00%, 07/01/26

     1,285       919,247  

Series WW, 5.50%, 07/01/17

     1,315       940,708  

Series WW, 5.50%, 07/01/18

     1,155       826,249  

Series WW, 5.50%, 07/01/19

     935       668,868  

Series WW, 5.38%, 07/01/24

     875       625,946  

Series WW, 5.25%, 07/01/33

     885       633,100  

Series WW, 5.50%, 07/01/38

     1,170       836,979  

Series XX, 5.25%, 07/01/27

     645       461,412  

Series XX, 5.25%, 07/01/35

     400       286,147  

Series XX, 5.75%, 07/01/36

     555       397,029  

Series XX, 5.25%, 07/01/40

     11,490       8,219,567  

Series A, AMT, 6.75%, 07/01/36

     7,630       5,550,825  

Puerto Rico Electric Power Authority, Refunding RB

    

Series AAA, 5.25%, 07/01/22(f)(g)

     2,150       1,538,039  

Series AAA, 5.25%, 07/01/27

     6,540       4,678,500  

Series AAA, 5.25%, 07/01/28(f)(g)

     4,690       3,355,071  

Series AAA, 5.25%, 07/01/29(f)(g)

     530       379,145  

Series BBB, 5.40%, 07/01/28

     2,805       2,006,604  

Series UU, 1.00%, 07/01/17(a)(f)(g)

     395       273,538  

Series UU, 1.00%, 07/01/18(a)(f)(g)

     355       245,838  

Series UU, 1.32%, 07/01/20(a)(f)(g)

     3,175       2,198,688  

Series UU, 4.17%, 07/01/31(a)(f)(g)

     3,765       2,607,262  

Series ZZ, 5.00%, 07/01/17(f)(g)

     925       661,714  

Series ZZ, 5.25%, 07/01/19(f)(g)

     2,945       2,106,756  

Series ZZ, 5.25%, 07/01/24(f)(g)

     1,990       1,423,580  

Series ZZ, 5.00%, 07/01/28(f)(g)

     990       708,213  

Puerto Rico Electric Power Authority, Refunding RB, BAB, Series YY, 6.13%, 07/01/40

     4,060       2,904,390  
   

 

 

  
      72,975,234  
   

 

 

  

Total Municipal Bonds in Puerto Rico

       188,945,323  
   

 

 

  

Total Municipal Bonds — 83.6%
(Cost: $2,201,147,471)

       2,116,200,264  
   

 

 

  

Municipal Bonds Transferred to Tender Option Bond Trusts(h)

 

California — 7.1%

    

Health — 0.7%

    

Regents of the University of California Medical Center Pooled Revenue, RB, Series P, 5.00%, 05/15/47

     15,370       16,705,784  
   

 

 

  
Security  

Par

(000)

     Value  
Utilities — 6.4%            

City of Los Angeles California Wastewater System Revenue, RB, Series A, 5.25%, 06/01/47

   $       20,000     $      21,217,110  

City of Los Angeles Department of Airports, ARB, AMT, Series A, 5.00%, 05/15/30

     11,635       12,806,392  

Los Angeles Department of Water & Power, RB, 5.00%, 07/01/46

     35,325       38,439,075  

Metropolitan Water District of Southern California, RB, AMT, Series A, 5.00%, 10/01/51

     26,620       28,897,341  

Sacramento County Sanitation Districts Financing Authority, Refunding RB, Series A, 5.00%, 12/01/50

     23,620       25,353,673  

San Diego Public Facilities Financing Authority, Refunding RB, Subordinate, Series A, 5.00%, 08/01/43

     33,820       35,922,065  
   

 

 

  
      162,635,656  
   

 

 

  

Total Municipal Bonds in California

       179,341,440  
   

 

 

  

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 7.1%
(Cost: $188,807,228)

 

     179,341,440  
   

 

 

  

Total Long-Term Investments — 90.7%
(Cost: $2,392,054,699)

       2,297,019,465  
   

 

 

  
    Shares        

 

  

Short-Term Securities

    

Money Market Funds — 11.7%

    

BlackRock Liquidity Funds California Money Fund, Institutional Class,
2.69%(i)(j)

     296,145,473       295,902,305  
   

 

 

  

Total Short-Term Securities — 11.7%
(Cost: $295,883,072)

 

     295,902,305  
   

 

 

  

Total Investments — 102.4%
(Cost: $2,687,937,771)

 

     2,592,921,770  

Other Assets Less Liabilities — 0.9%

       23,235,345  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (3.3)%

 

     (84,014,788 ) 
   

 

 

  

Net Assets — 100.0%

     $ 2,532,142,327  
   

 

 

  

 

(a) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(b) 

Zero-coupon bond.

(c) 

When-issued security.

(d) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(e) 

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

(f) 

Issuer filed for bankruptcy and/or is in default.

(g) 

Non-income producing security.

(h) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(i) 

Affiliate of the Fund.

(j) 

Annualized 7-day yield as of period end.

 

 

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

 

 

26  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock California Municipal Opportunities Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

  
Affiliated Issuer  

Value at

05/31/22

    

Purchases

at Cost

    

Proceeds

from Sales

    

Net

Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

05/31/23

    

Shares

Held at

05/31/23

     Income    

Capital Gain

Distributions

from

Underlying

Funds

  

 

  

BlackRock Liquidity Funds California Money Fund, Institutional Class

   $ 124,791,461     $ 171,139,382 (a)    $ —     $ (42,672 )    $ 14,134     $ 295,902,305       296,145,473     $ 2,804,705     $ —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

 

  
Description   

Number of

Contracts

     

Expiration

Date

     

Notional

Amount (000)

     

Value/

Unrealized

Appreciation

(Depreciation)

  

 

  

Short Contracts

            

10-Year U.S. Treasury Note

      1,656        09/20/23      $ 189,509      $ 829,543  

U.S. Long Bond

      1,217        09/20/23        156,346        (649,440 ) 

5-Year U.S. Treasury Note

      1,174        09/29/23        128,030        573,078  
           

 

 

  
            $ 753,181  
           

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

 

  
    

Commodity

Contracts

     

Credit

Contracts

     

Equity

Contracts

     

Foreign

Currency

Exchange

Contracts

     

Interest

Rate

Contracts

     

Other

Contracts

      Total  

 

  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

    $ —      $ —      $ —      $ —      $ 1,402,621      $ —      $ 1,402,621  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized depreciation on futures contracts(a)

    $ —      $ —      $ —      $ —      $ 649,440      $ —      $ 649,440  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended May 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

 

  
    

Commodity

Contracts

     

Credit

Contracts

     

Equity

Contracts

     

Foreign

Currency

Exchange

Contracts

     

Interest

Rate

Contracts

     

Other

Contracts

      Total  

 

  

Net Realized Gain (Loss) from:

                     

Futures contracts

    $ —      $ —      $ —      $ —      $ 49,000,855      $ —      $ 49,000,855  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Futures contracts

    $ —      $ —      $ —      $ —      $ (6,575,837 )     $ —      $ (6,575,837 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

   

Average notional value of contracts — short

    $ 686,454,648  

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   27

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock California Municipal Opportunities Fund

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

                                                                                               

 

  
     Level 1        Level 2        Level 3        Total  

 

  

Assets

                  

Investments

                  

Long-Term Investments

                  

Corporate Bonds

    $ —        $ 1,477,761        $ —        $ 1,477,761  

Municipal Bonds

      —          2,116,200,264          —          2,116,200,264  

Municipal Bonds Transferred to Tender Option Bond Trusts

      —          179,341,440          —          179,341,440  

Short-Term Securities

                  

Money Market Funds

      295,902,305          —          —          295,902,305  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 295,902,305        $ 2,297,019,465        $ —        $ 2,592,921,770  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Assets

                  

Interest Rate Contracts

    $ 1,402,621        $ —        $ —        $ 1,402,621  

Liabilities

                  

Interest Rate Contracts

      (649,440 )         —          —          (649,440 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 753,181        $ —        $ —        $ 753,181  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $83,194,978 are categorized as Level 2 within the fair value hierarchy.

See notes to financial statements.

 

 

28  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   

May 31, 2023

   

BlackRock New Jersey Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

Municipal Bonds

    

New Jersey — 83.8%

    
Corporate — 7.5%            

New Jersey Economic Development Authority, ARB, Series B, AMT, 5.63%, 11/15/30

   $ 510     $ 514,074  

New Jersey Economic Development Authority, RB, AMT, 4.00%, 08/01/59

             4,200       3,559,198  

New Jersey Economic Development Authority, Refunding RB

    

3.75%, 11/01/34(a)(b)

     5,000       4,972,285  

3.38%, 04/01/38

     1,360       1,255,560  

3.50%, 04/01/42

     720       643,958  

AMT, 3.00%, 08/01/41

     5,670       4,244,182  

AMT, 3.00%, 08/01/43

     5,600       4,206,323  

Series A, AMT, 2.20%, 10/01/39(a)

     3,880       3,308,755  
   

 

 

  
          22,704,335  

County/City/Special District/School District — 13.8%

 

  

Carlstadt School District, Refunding GO, 4.00%, 05/01/30

     1,415       1,425,939  

City of East Orange New Jersey, Refunding GO, (AGM), 3.00%, 09/15/31

     2,200       2,153,488  

Clifton Board of Education, GO, (AGM), 2.25%, 08/15/46

     1,850       1,162,009  

Clifton Board Of Education, GO, (AGM), 2.00%, 08/15/41

     1,630       1,110,429  

County of Bergen New Jersey, Refunding GO, 3.00%, 07/15/38

     1,070       1,035,635  

Essex County Improvement Authority, RB, (GTD), 4.00%, 11/01/44

     7,695       7,605,553  

Essex County Improvement Authority, Refunding RB, (NPFGC GTD), 5.50%, 10/01/29

     1,500       1,721,355  

Ewing Township Board of Education, GO

    

4.00%, 07/15/38

     920       933,789  

4.00%, 07/15/39

     740       749,397  

Hudson County Improvement Authority, RB, 5.00%, 05/01/46

     1,440       1,488,437  

Lenape Regional High School District, GO, (AGM), 3.50%, 01/01/39

     3,400       3,147,536  

Monmouth Regional High School District, GO, 3.00%, 02/01/34

     1,260       1,246,182  

New Jersey Economic Development Authority, RB

    

5.00%, 06/15/23(c)

     2,000       2,001,040  

Series B, AMT, 6.50%, 04/01/31

     1,605       1,590,584  

New Jersey Economic Development Authority, Refunding SAB, 6.50%, 04/01/28

     2,091       2,209,888  

Newark Board of Education, Refunding GO, (BAM), 3.00%, 07/15/39

     630       520,339  

Township of Bloomfield New Jersey, Refunding GO, 3.00%, 02/01/33

     1,040       1,030,061  

Township of Irvington New Jersey, Refunding GO, Series A, (AGM SAW), 5.00%, 07/15/24(c)

     2,445       2,489,083  

Township of Monroe New Jersey/Middlesex County, Refunding GO

    

3.00%, 06/01/37

     385       354,851  

3.00%, 06/01/38

     410       370,351  
Security  

Par

(000)

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

Union County Utilities Authority, Refunding RB

    

Series A, AMT, (GTD), 4.75%, 12/01/31

   $         1,225     $ 1,226,258  

Series A, AMT, (GTD), 5.25%, 12/01/31

     6,120       6,128,874  
   

 

 

  
          41,701,078  
Education — 13.9%            

Atlantic County Improvement Authority, RB, Series A, (AGM), 4.00%, 07/01/46

     1,250       1,158,572  

Camden County Improvement Authority, RB, 6.00%, 06/15/52

     220       228,353  

Gloucester County Improvement Authority, RB, 5.00%, 07/01/44

     530       538,822  

New Jersey Economic Development Authority, RB

    

6.00%, 10/01/43

     1,000       1,005,710  

4.00%, 06/15/49

     1,190       1,099,089  

Series A, 5.00%, 07/01/27(d)

     170       166,099  

Series A, 5.13%, 11/01/29(d)

     100       96,304  

Series A, 5.25%, 07/01/37(d)

     470       430,822  

Series A, 6.25%, 11/01/38(d)

     210       210,476  

Series A, 5.00%, 06/15/39(d)

     825       776,695  

Series A, 5.00%, 07/01/47

     265       242,897  

Series A, 5.38%, 07/01/47(d)

     815       708,369  

Series A, 5.00%, 12/01/48

     2,190       2,209,195  

Series A, 5.00%, 06/15/49(d)

     135       120,324  

Series A, 5.00%, 07/01/50

     200       197,440  

Series A, 6.50%, 11/01/52(d)

     1,210       1,205,131  

Series A, 5.25%, 11/01/54(d)

     1,100       924,487  

Series AAA, 5.00%, 12/15/26(c)

     1,990       2,125,306  

Series DDD, 5.00%, 06/15/27(c)

     3,000       3,241,233  

New Jersey Economic Development Authority, Refunding RB

    

(AGM), 5.00%, 06/01/37

     2,760       2,834,606  

(AGM), 5.00%, 06/01/42

     690       701,313  

Series A, 4.75%, 08/01/24(d)

     100       99,236  

Series A, 5.63%, 08/01/34(d)

     250       250,759  

Series A, 5.00%, 09/01/37(d)

     315       294,740  

Series A, 5.88%, 08/01/44(d)

     430       426,770  

Series A, 5.13%, 09/01/52(d)

     1,000       873,144  

Series PP, 4.00%, 06/15/24(c)

     4,875       4,906,839  

New Jersey Educational Facilities Authority, RB

    

Series C, (AGM), 3.25%, 07/01/49

     290       227,582  

Series C, (AGM), 4.00%, 07/01/50

     245       218,867  

New Jersey Educational Facilities Authority, Refunding RB

    

Series A, 5.00%, 07/01/33

     2,005       2,042,967  

Series B, 5.00%, 07/01/32

     2,465       2,608,576  

Series H, (AGM), 4.00%, 07/01/39

     715       713,843  

New Jersey Higher Education Student Assistance Authority, RB

    

Series B, AMT, 4.00%, 12/01/44

     425       400,833  

Series C, AMT, 5.00%, 12/01/53

     265       255,933  

Sub-Series C, AMT, 4.00%, 12/01/48

     700       612,945  

New Jersey Higher Education Student Assistance Authority, Refunding RB

    

Series B, AMT, 4.00%, 12/01/41

     950       925,907  

Sub-Series C, AMT, 3.63%, 12/01/49

     1,065       846,199  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   29

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock New Jersey Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Education (continued)            

New Jersey Higher Education Student Assistance

    

Authority, Refunding RB (continued) Series C, AMT, Subordinate, 5.00%, 12/01/52

   $         1,075     $ 1,100,295  

New Jersey Institute of Technology, RB, Series A, AMT, 5.00%, 07/01/40

     5,000       5,121,435  
   

 

 

  
          42,148,113  

Health — 11.4%

    

New Jersey Economic Development Authority, Refunding RB

    

5.00%, 01/01/34

     270       248,674  

5.00%, 01/01/39

     520       452,680  

5.00%, 01/01/49

     500       403,857  

New Jersey Health Care Facilities Financing Authority, RB

    

5.00%, 07/01/42

     3,000       3,082,314  

2.38%, 07/01/46

     3,740       2,485,065  

3.00%, 07/01/51

     7,905       5,785,353  

Series A, 5.25%, 07/01/35

     1,460       1,462,460  

Series A, 5.00%, 07/01/39

     1,150       1,163,338  

Series A, 5.00%, 07/01/43

     1,535       1,547,859  

VRDN, 2.95%, 07/01/33(a)

     5,000       5,000,000  

New Jersey Health Care Facilities Financing Authority, Refunding RB

    

5.00%, 07/01/24(c)

     2,950       3,001,250  

5.00%, 07/01/29

     285       287,490  

5.00%, 07/01/34

     1,000       1,053,818  

4.00%, 07/01/41

     1,000       965,346  

Series A, 4.00%, 07/01/32

     2,300       2,334,594  

Series A, 5.00%, 07/01/37

     5,000       5,231,920  
   

 

 

  
      34,506,018  

Housing — 3.0%

    

New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing

    

Series H, 2.15%, 10/01/41

     910       650,604  

Series H, 2.30%, 10/01/46

     680       459,198  

Series H, 2.40%, 04/01/52

     680       453,448  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing

    

Series A, 2.25%, 11/01/36

     350       274,384  

Series A, 2.45%, 11/01/45

     240       159,189  

Series A, 2.65%, 11/01/46

     350       238,011  

Series A, 4.00%, 11/01/48

     150       128,417  

Series A, 2.55%, 11/01/50

     220       137,970  

Series A, 2.70%, 11/01/51

     350       225,895  

Series A, 4.10%, 11/01/53

     100       90,447  

Series A, 2.63%, 11/01/56

     220       132,285  

Series A, 2.75%, 11/01/56

     350       218,394  

New Jersey Housing & Mortgage Finance Agency, Refunding RB, S/F Housing

    

Series A, 3.75%, 10/01/35

     900       851,602  

Series E, 2.25%, 10/01/40

     680       481,445  

Series E, 2.40%, 10/01/45

     515       360,968  

Newark Housing Authority, RB, M/F Housing

    

Series A, AMT, 5.00%, 12/01/30

     1,640       1,651,524  

Series A, AMT, 4.38%, 12/01/33

     2,515       2,522,213  
   

 

 

  
      9,035,994  
Security  

Par

(000)

     Value  
State — 13.7%            

Casino Reinvestment Development Authority, Inc., Refunding RB

    

5.25%, 11/01/39

   $         1,020     $     1,026,607  

5.25%, 11/01/44

     590       591,087  

Class D, (AGM), 4.00%, 11/01/34

     500       501,556  

Garden State Preservation Trust, RB

    

Series A, (AGM), 5.75%, 11/01/28

     2,565       2,762,723  

Series B, (AGM), 0.00%, 11/01/24(e)

     10,000       9,525,540  

Series B, (AGM), 0.00%, 11/01/27(e)

     4,135       3,564,312  

New Jersey Economic Development Authority, RB

    

5.00%, 12/15/28(c)

     2,040       2,259,014  

5.00%, 06/15/43

     3,465       3,612,273  

Series A, 5.00%, 06/15/42

     4,000       4,141,652  

New Jersey Economic Development Authority, Refunding RB

    

Sub-Series A, 5.00%, 07/01/33

     125       131,439  

Sub-Series A, 4.00%, 07/01/34

     165       165,421  

New Jersey Educational Facilities Authority, RB, Series A, 5.00%, 09/01/33

     1,750       1,780,065  

New Jersey Health Care Facilities Financing Authority, RB, 5.00%, 09/15/29

     2,000       2,006,964  

New Jersey Transportation Trust Fund Authority, RB, Series A, 0.00%, 12/15/38(e)

     10,000       5,204,340  

State of New Jersey, GO

    

2.00%, 06/01/37

     2,600       2,047,646  

5.00%, 06/01/40

     2,000       2,157,968  
   

 

 

  
      41,478,607  
Tobacco — 1.3%            

Tobacco Settlement Financing Corp., Refunding RB

    

Series A, 5.00%, 06/01/46

     1,000       1,022,524  

Series A, 5.25%, 06/01/46

     1,000       1,036,578  

Sub-Series B, 5.00%, 06/01/46

     1,865       1,873,669  
   

 

 

  
      3,932,771  
Transportation — 19.1%            

New Jersey Economic Development Authority, RB

    

Class A, 5.25%, 11/01/47

     2,200       2,387,931  

AMT, (AGM), 5.13%, 01/01/39

     1,000       1,004,538  

AMT, (AGM), 5.13%, 07/01/42

     1,000       1,004,514  

AMT, 5.38%, 01/01/43

     905       907,617  

New Jersey Transportation Trust Fund Authority, RB

    

5.00%, 06/15/42

     210       224,254  

5.25%, 06/15/46

     210       228,396  

Class BB, 5.00%, 06/15/36

     1,250       1,354,232  

Class BB, 4.00%, 06/15/37

     700       681,490  

Class BB, 4.00%, 06/15/50

     650       591,469  

Series A, 5.00%, 06/15/30

     1,250       1,306,352  

Series A, 0.00%, 12/15/32(e)

     10,000       6,893,220  

Series A, 0.00%, 12/15/35(e)

     8,900       5,323,615  

Series AA, 5.25%, 06/15/31

     2,000       2,001,928  

Series AA, 4.00%, 06/15/36

     1,435       1,416,966  

Series AA, 4.00%, 06/15/45

     1,775       1,669,659  

Series AA, 5.00%, 06/15/45

     3,500       3,656,370  

Series AA, 4.00%, 06/15/50

     4,000       3,656,312  

Series B, 5.00%, 06/15/33

     550       591,340  

Series BB, 4.00%, 06/15/44

     2,335       2,199,325  

Series BB, 4.00%, 06/15/50

     2,500       2,315,340  

Series S, 5.25%, 06/15/43

     1,720       1,814,065  

New Jersey Transportation Trust Fund Authority, Refunding RB

    

5.25%, 06/15/41

     1,000       1,092,437  
 

 

 

30  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock New Jersey Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Transportation (continued)            

New Jersey Transportation Trust Fund Authority, Refunding RB (continued)

    

4.25%, 06/15/44

   $         1,545     $ 1,510,933  

Series A, 5.00%, 06/15/31

     2,730       2,855,902  

Series A, 5.00%, 12/15/35

     455       482,588  

Series A, 4.00%, 06/15/36

     1,700       1,684,872  

New Jersey Turnpike Authority, RB

    

Series A, 4.00%, 01/01/42

     1,000       993,406  

Series E, 5.00%, 01/01/45

     2,000       2,031,064  

New Jersey Turnpike Authority, Refunding RB, Series A, (BHAC-CR AGM), 5.25%, 01/01/30

     1,000       1,130,108  

South Jersey Port Corp., ARB, Series B, AMT, 5.00%, 01/01/42

     2,380       2,412,804  

South Jersey Transportation Authority, Refunding RB

    

Series A, 5.00%, 11/01/32

     440       445,697  

Series A, 5.00%, 11/01/33

     250       253,202  

Series A, 5.00%, 11/01/39

     1,500       1,517,640  
   

 

 

  
      57,639,586  

Utilities — 0.1%

    

Industrial Pollution Control Financing Authority of Gloucester County, Refunding RB, Series A, AMT, 5.00%, 12/01/24(f)

     160       161,682  

New Jersey Infrastructure Bank, RB, 2.00%, 09/01/43

     240       153,873  
   

 

 

  
      315,555  
   

 

 

  

Total Municipal Bonds in New Jersey

         253,462,057  
New York — 5.1%            
Transportation — 5.1%            

Port Authority of New York & New Jersey, ARB

    

93rd Series, 6.13%, 06/01/94

     1,000       1,030,026  

AMT, 5.00%, 11/01/30

     1,000       1,084,263  

AMT, 5.00%, 11/01/33

     495       533,805  

218th Series, AMT, 5.00%, 11/01/32

     1,495       1,614,729  

221th Series, AMT, 4.00%, 07/15/50

     1,335       1,233,241  

Port Authority of New York & New Jersey, Refunding ARB

    

205th Series, 5.00%, 11/15/47

     1,975       2,067,071  

AMT, 5.00%, 01/15/47

     2,000       2,112,168  

178th Series, AMT, 5.00%, 12/01/43

     285       286,140  

186th Series, AMT, 5.00%, 10/15/44

     3,000       3,031,131  

Series 223, AMT, 4.00%, 07/15/41

     725       692,379  

Series 223, AMT, 4.00%, 07/15/46

     1,755       1,641,032  
   

 

 

  

Total Municipal Bonds in New York

       15,325,985  

Pennsylvania — 0.9%

    

Transportation — 0.9%

    

Delaware River Joint Toll Bridge Commission, RB, 5.00%, 07/01/42

     1,130       1,174,388  

Delaware River Port Authority, RB, 5.00%, 01/01/40

     1,500       1,509,690  
   

 

 

  

Total Municipal Bonds in Pennsylvania

       2,684,078  
   

 

 

  
Security  

Par

(000)

     Value  
Puerto Rico — 2.8%            
State — 2.8%            

Commonwealth of Puerto Rico, GO, Series A1, Restructured, 5.63%, 07/01/29

   $ 1,043     $ 1,108,084  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

    

Series A1, Restructured, 0.00%, 07/01/46(e)

     9,847       2,652,240  

Series A1, Restructured, 4.75%, 07/01/53

     2,932       2,695,303  

Series A-2, Restructured, 4.78%, 07/01/58

     1,518       1,388,613  

Series A-2, Restructured, 4.33%, 07/01/40

     580       535,999  

Series B1, Restructured, 0.00%, 07/01/46(e)

     567       147,449  
   

 

 

  

Total Municipal Bonds in Puerto Rico

       8,527,688  
   

 

 

  

Total Long-Term Investments — 92.6%
(Cost: $283,558,114)

         279,999,808  
   

 

 

  
     Shares         

Short-Term Securities

    

Money Market Funds — 8.9%

    

BlackRock Liquidity Funds, MuniCash, Institutional Class, 3.22%(g)(h)

     26,896,116       26,896,116  
   

 

 

  

Total Short-Term Securities — 8.9%
(Cost: $26,893,393)

 

     26,896,116  
 

 

 

  

Total Investments — 101.5%
(Cost: $310,451,507)

 

     306,895,924  

Liabilities in Excess of Other Assets — (1.5)%

 

     (4,389,994 ) 
 

 

 

  

Net Assets — 100.0%

 

   $  302,505,930  
   

 

 

  

 

(a) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(b)

When-issued security.

(c)

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

(d) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(e) 

Zero-coupon bond.

(f) 

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

(g) 

Affiliate of the Fund.

(h) 

Annualized 7-day yield as of period end.

 

 

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

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   31

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock New Jersey Municipal Bond Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer  

Value at

05/31/22

    

Purchases

at Cost

    

Proceeds

from Sales

    

Net

Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

05/31/23

    

Shares

Held at

05/31/23

     Income    

Capital Gain

Distributions

from

Underlying

Funds

  

BlackRock Liquidity Funds, MuniCash, Institutional Class

   $ 13,301,815     $ 13,599,697 (a)    $ —     $ (7,075 )    $ 1,679     $ 26,896,116       26,896,116     $ 348,304     $ —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Categorized by Risk Exposure

For the period ended May 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
     

Commodity

Contracts

       

Credit

Contracts

       

Equity

Contracts

       

Foreign

Currency
Exchange
Contracts

        Interest
Rate
Contracts		       

Other

Contracts

        Total  

Net Realized Gain (Loss) from:

                                 

Futures contracts

    $ —        $ —        $ —        $ —        $ 2,395,657        $ —        $ 2,395,657  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                                 

Futures contracts

    $ —        $ —        $ —        $ —        $ (337,437 )       $ —        $ (337,437 ) 
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

         

Average notional value of contracts — short

    $ 13,690,627  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
      Level 1        Level 2        Level 3        Total  

Assets

                  

Investments

                  

Long-Term Investments

                  

Municipal Bonds

    $ —        $ 279,999,808        $ —        $ 279,999,808  

Short-Term Securities

                  

Money Market Funds

      26,896,116          —          —          26,896,116  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 26,896,116        $ 279,999,808        $             —        $ 306,895,924  
  

 

 

       

 

 

       

 

 

       

 

 

  

See notes to financial statements.

 

 

32  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   

May 31, 2023

   

BlackRock Pennsylvania Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

Municipal Bonds

    

Pennsylvania — 91.2%

    
Corporate — 6.6%            

Lehigh County Industrial Development Authority, Refunding RB, Series A, 3.00%, 09/01/29

   $          3,100     $ 2,991,140  

Montgomery County Industrial Development Authority, Refunding RB, 4.10%, 04/01/53(a)

     1,240       1,246,033  

Pennsylvania Economic Development Financing Authority, RB

    

Class A, AMT, 3.81%, 06/01/41(a)

     13,335       13,042,177  

Series A, AMT, 0.58%, 08/01/37(a)

     5,000       4,770,660  

Series A, AMT, 3.25%, 08/01/39(b)

     2,800       1,950,917  

Pennsylvania Economic Development Financing Authority, Refunding RB, AMT, 5.50%, 11/01/44

     1,355       1,342,683  
   

 

 

  
      25,343,610  
County/City/Special District/School District — 19.2%  

Altoona Area School District, GO, Series A, AMT, (AGM SAW), 5.00%, 12/01/36

     2,895       3,030,292  

Bethlehem Area School District, GO

    

Series A, AMT, (BAM SAW), 5.00%, 08/01/34

     2,390       2,490,815  

Series A, AMT, (BAM SAW), 5.00%, 08/01/35

     1,790       1,863,918  

Boyertown Area School District, GO

    

(SAW), 5.00%, 10/01/36

     890       903,146  

(SAW), 5.00%, 10/01/38

     1,335       1,354,717  

Boyertown Area School District, Refunding GO, (SAW), 5.00%, 10/01/40

     230       249,002  

Bristol Township School District, GO, (BAM SAW), 5.00%, 06/01/42

     2,550       2,655,792  

City of Lancaster Pennsylvania, GO, (BAM), 4.00%, 11/01/42

     3,720       3,603,601  

City of Philadelphia Pennsylvania, GO, Series B, 5.00%, 02/01/39

     1,540       1,640,899  

City of Philadelphia Pennsylvania, Refunding GO

    

3.42%, 08/01/31(a)

     10,000       10,000,000  

Series A, 5.00%, 08/01/37

     2,140       2,250,471  

City of Pittsburgh Pennsylvania, GO

    

5.00%, 09/01/41

     750       807,232  

5.00%, 09/01/42

     700       750,786  

5.00%, 09/01/43

     150       160,526  

Coatesville School District, GO(c)

    

Series A, (BAM SAW), 0.00%, 10/01/34

     290       185,848  

Series A, (BAM SAW), 0.00%, 10/01/35

     2,565       1,553,618  

Series A, (BAM SAW), 0.00%, 10/01/37

     2,505       1,341,202  

Coatesville School District, Refunding GO(c)

    

Series B, (BAM SAW), 0.00%, 10/01/33

     500       336,503  

Series B, (BAM SAW), 0.00%, 10/01/34

     980       628,039  

Series C, (BAM SAW), 0.00%, 10/01/33

     640       430,723  

County of Lancaster Pennsylvania, Refunding GO

    

4.00%, 11/01/34

     500       516,795  

4.00%, 11/01/35

     520       534,295  

4.00%, 11/01/36

     540       551,373  

4.00%, 11/01/37

     565       574,107  

4.00%, 11/01/38

     585       592,661  

Fox Chapel Area School District, GO

    

(SAW), 5.00%, 02/01/39

     3,100       3,244,082  

(SAW), 5.00%, 02/01/42

     4,000       4,163,628  

Pennsylvania Economic Development Financing Authority, RB

    

AMT, 5.00%, 06/30/32

     1,375       1,451,083  

AMT, 5.50%, 06/30/43

     2,500       2,676,922  
Security  

Par

(000)

     Value  

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

 

Pennsylvania Economic Development Financing Authority, RB (continued)

    

AMT, 5.75%, 06/30/48

   $          3,770     $ 4,110,608  

AMT, 6.00%, 06/30/61

     1,945       2,155,679  

School District of Philadelphia, GO, Series D, (AGM SAW), 3.00%, 09/01/44

     4,640       3,653,230  

School District of Philadelphia, Refunding GO, Series F, (SAW), 5.00%, 09/01/37

     1,815       1,872,461  

Southeastern Pennsylvania Transportation Authority, RB

    

5.25%, 06/01/47

     3,695       4,067,186  

5.25%, 06/01/52

     2,000       2,191,802  

State Public School Building Authority, Refunding RB, Series A, (AGM SAW), 5.00%, 06/01/33

     5,000       5,244,420  
   

 

 

  
      73,837,462  
Education — 17.0%  

Berks County Municipal Authority, Refunding RB

    

5.00%, 10/01/39

     290       268,589  

5.00%, 10/01/49

     795       701,389  

Chester County Industrial Development Authority, RB

    

4.00%, 12/01/49

     3,750       3,525,353  

4.00%, 12/01/51

     4,000       3,717,476  

Delaware County Authority, RB, 5.00%, 08/01/40

     1,495       1,531,962  

East Hempfield Township Industrial Development Authority, RB(d)

    

5.00%, 07/01/23

     1,215       1,216,415  

5.00%, 07/01/25

     1,810       1,874,402  

Latrobe Industrial Development Authority, Refunding RB, 4.00%, 03/01/46

     515       418,872  

Northampton County General Purpose Authority, Refunding RB, 4.00%, 11/01/38

     4,000       3,967,492  

Pennsylvania Higher Education Assistance Agency, RB 5.00%, 06/01/50(e)

     755       722,732  

Series A, AMT, 2.63%, 06/01/42

     1,900       1,559,683  

Series B, AMT, Subordinate, 3.13%, 06/01/48

     650       492,230  

Pennsylvania Higher Educational Facilities Authority, RB, Series AT-1, 4.00%, 06/15/34

     5,790       5,884,423  

Pennsylvania Higher Educational Facilities Authority, Refunding RB

    

4.00%, 05/01/36

     500       492,081  

5.00%, 05/01/37

     1,595       1,430,651  

5.00%, 05/01/41

     810       834,032  

Series A, 5.25%, 07/15/23(d)

     2,420       2,424,903  

Series A, 5.50%, 07/15/23(d)

     365       365,846  

Series A, 5.00%, 11/01/25

     200       202,579  

Series A, 5.00%, 11/01/26

     100       102,072  

Series A, 5.00%, 11/01/27

     150       154,351  

Series A, 5.00%, 11/01/29

     1,150       1,205,063  

Series A, 5.00%, 11/01/31

     205       217,396  

Series A, (AGM), 4.00%, 05/01/50

     5,000       4,784,180  

Pennsylvania State University, RB

    

5.00%, 09/01/48

     2,615       2,745,711  

Series A, AMT, 5.00%, 09/01/43

     3,935       4,199,129  

Philadelphia Authority for Industrial Development, RB

    

4.00%, 06/15/29

     485       451,956  

5.00%, 06/15/39

     840       779,961  

4.00%, 12/01/48

     8,090       7,779,482  

5.00%, 06/15/50

     800       710,194  

5.25%, 11/01/52

     2,145       2,271,606  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   33

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Pennsylvania Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

Education (continued)

    

Philadelphia Authority for Industrial Development, Refunding RB

    

5.00%, 06/15/40(b)

   $ 600     $ 576,739  

Series 2015, 5.00%, 04/01/45

              3,330       3,382,328  

Series A, 5.25%, 06/15/52

     625       557,883  

University of Pittsburgh-of the Commonwealth System of Higher Education, RB, 3.77%, 02/15/24(a)

     3,620       3,607,674  
   

 

 

  
      65,156,835  
Health — 18.4%            

Allegheny County Hospital Development Authority, RB, Series D2, 4.11%, 11/15/47(a)

     2,865       2,846,466  

Allegheny County Hospital Development Authority, Refunding RB

    

Series A, 4.00%, 04/01/37

     4,300       4,163,896  

Series A, 4.00%, 07/15/39

     2,250       2,174,413  

Series A, 5.00%, 04/01/47

     1,950       1,973,538  

Bucks County Industrial Development Authority, RB

    

4.00%, 08/15/44

     1,690       1,551,540  

4.00%, 07/01/46

     2,500       1,891,985  

Chester County Health and Education Facilities Authority, Refunding RB, Series A, 5.25%, 12/01/45

     1,500       1,292,099  

Cumberland County Municipal Authority, Refunding RB

    

5.00%, 01/01/25(d)

     430       441,260  

5.00%, 01/01/29(d)

     940       1,045,767  

4.00%, 01/01/36

     645       566,040  

4.13%, 01/01/38

     260       223,518  

5.00%, 01/01/38

     2,185       2,099,604  

5.00%, 01/01/39

     180       172,082  

Doylestown Hospital Authority, RB

    

Series A, 4.00%, 07/01/45

     1,250       883,814  

Series A, 5.00%, 07/01/49

     1,500       1,200,447  

DuBois Hospital Authority, Refunding RB, 4.00%, 07/15/48

     3,440       3,061,851  

Geisinger Authority, Refunding RB, Series A-1, 5.00%, 02/15/45

     5,950       6,050,888  

Hospitals & Higher Education Facilities Authority of Philadelphia, Refunding RB, (AGM), 4.00%, 07/01/40

     1,600       1,542,763  

Lancaster County Hospital Authority, Refunding RB, 5.00%, 11/01/35

     925       937,895  

Lancaster Industrial Development Authority, RB

    

4.00%, 12/01/44

     730       634,823  

4.00%, 12/01/49

     985       823,277  

Montgomery County Higher Education and Health Authority, Refunding RB

    

4.00%, 09/01/49

     1,170       1,046,439  

Series A, 5.00%, 09/01/37

     1,365       1,424,457  

Montgomery County Industrial Development Authority, Refunding RB

    

5.25%, 01/01/40

     5,000       4,503,525  

5.00%, 12/01/46

     850       781,125  

Moon Industrial Development Authority, Refunding RB, 6.00%, 07/01/45

     2,250       1,847,536  

Mount Lebanon Hospital Authority, RB, 4.00%, 07/01/48

     2,910       2,726,530  

Northampton County General Purpose Authority, Refunding RB, 5.00%, 08/15/46

     1,350       1,341,236  

Pennsylvania Economic Development Financing Authority, RB Series A-2, 4.00%, 05/15/53

     1,480       1,309,859  
Security  

Par

(000)

     Value  

Health (continued)

    

Pennsylvania Economic Development Financing Authority, RB (continued)

    

Series B, 4.00%, 03/15/40

   $          2,000     $ 1,972,036  

Pennsylvania Economic Development Financing Authority, Refunding RB, Series A, 4.00%, 11/15/42

     4,000       3,738,864  

Pennsylvania Higher Educational Facilities Authority, RB, 3.00%, 08/15/47

     3,565       2,677,244  

Pottsville Hospital Authority, Refunding RB, Series B, 5.00%, 07/01/41

     5,000       5,129,545  

St Mary Hospital Authority, Refunding RB

    

5.00%, 12/01/28(d)

     4,065       4,515,430  

5.00%, 12/01/48

     2,035       2,123,313  
   

 

 

  
      70,715,105  
Housing — 4.7%            

Pennsylvania Housing Finance Agency, RB, S/F Housing

    

Series 137, 2.45%, 10/01/41

     1,315       926,642  

Series 137, 2.60%, 04/01/46

     5,270       3,555,838  

Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing

    

5.00%, 10/01/50(e)

     2,970       3,016,617  

Series 136, 2.55%, 10/01/51

     2,250       1,443,467  

Series 2022, 4.15%, 10/01/42

     3,000       2,802,414  

Philadelphia Authority for Industrial Development, RB, M/F Housing(f)(g)

    

Series A, 3.50%, 12/01/36

     1,260       836,437  

Series A, 4.00%, 12/01/46

     5,740       3,810,436  

Series A, 4.00%, 12/01/51

     2,300       1,526,830  
   

 

 

  
      17,918,681  
State — 8.1%            

Allentown Neighborhood Improvement Zone Development Authority, RB, 5.00%, 05/01/42(b)

     330       316,748  

Chester County Industrial Development Authority, SAB(b)

    

4.25%, 03/01/35

     1,280       1,146,232  

5.00%, 03/01/38

     462       456,420  

5.13%, 03/01/48

     887       840,652  

4.75%, 03/01/50

     2,720       2,300,979  

Commonwealth Financing Authority, RB

    

5.00%, 06/01/35

     2,205       2,338,740  

(AGM), 4.00%, 06/01/39

     6,700       6,443,417  

Commonwealth of Pennsylvania, GO, Series A, 4.00%, 09/15/31

     2,500       2,579,772  

Northampton County Industrial Development Authority, TA, 7.00%, 07/01/32

     1,315       1,316,064  

Pennsylvania Economic Development Financing Authority, RB

    

AMT, 5.00%, 12/31/38

     3,000       3,012,459  

AMT, 5.00%, 06/30/42

     2,620       2,605,247  

Pennsylvania Turnpike Commission Oil Franchise Tax Revenue, RB, Series A, AMT, 5.25%, 12/01/44

     1,500       1,595,862  

Pennsylvania Turnpike Commission Oil Franchise Tax Revenue, Refunding RB, Series A, 4.00%, 12/01/51

     5,680       5,408,814  

Redevelopment Authority of The County of Washington, Refunding TA

    

4.00%, 07/01/23

     195       194,892  

5.00%, 07/01/28

     600       604,378  
   

 

 

  
      31,160,676  
 

 

 

34  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Pennsylvania Municipal Bond Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

Transportation — 9.9%

    

City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB

    

AMT, (AGM), 4.00%, 07/01/40

   $          1,075     $ 1,014,483  

Series B, AMT, 5.00%, 07/01/37

     1,800       1,840,055  

Delaware River Joint Toll Bridge Commission, RB, 5.00%, 07/01/42

     4,045       4,203,896  

Pennsylvania Turnpike Commission, RB

    

Series A-1, 5.00%, 12/01/41

     100       102,895  

Sub-Series A-3, (AGM), 0.00%, 12/01/40(c)

     1,820       814,925  

Sub-Series A-3, 0.00%, 12/01/42(c)

     5,740       2,229,244  

Sub-Series B-1, 5.00%, 06/01/42

     5,205       5,364,486  

Sub-Series B-1, 5.25%, 06/01/47

     1,000       1,027,908  

1st Series, Subordinate, 5.00%, 12/01/40

     2,965       3,189,003  

Series A, Subordinate, 5.00%, 12/01/37

     2,660       2,836,443  

Series A, Subordinate, 4.00%, 12/01/44

     1,700       1,618,198  

Series A, Subordinate, 4.00%, 12/01/50

     2,500       2,319,392  

Pennsylvania Turnpike Commission, Refunding RB

    

Series B, 5.25%, 12/01/52

     1,225       1,322,098  

Series B-2, (AGM), 5.00%, 06/01/35

     2,900       3,076,442  

Series C, 4.00%, 12/01/51

     5,000       4,659,960  

Susquehanna Area Regional Airport Authority, Refunding RB, AMT, 5.00%, 01/01/38

     2,200       2,234,104  
   

 

 

  
      37,853,532  
Utilities — 7.3%            

Allegheny County Sanitary Authority, RB, 5.00%, 06/01/45

     1,425       1,490,757  

City of Philadelphia Pennsylvania Water & Wastewater Revenue, RB

    

Series C, 5.50%, 06/01/47

     3,100       3,436,359  

Series A, AMT, 5.00%, 10/01/43

     3,460       3,626,710  

Series A, AMT, 5.25%, 10/01/52

     1,190       1,238,689  

New Kensington Municipal Sanitary Authority, RB, (AGM), 3.25%, 12/01/47

     2,055       1,618,167  

Oxford Area Sewer Authority, Refunding RB

    

(BAM), 3.00%, 07/01/46

     2,395       1,906,293  

(BAM), 2.38%, 07/01/55

     915       527,142  

Pennsylvania Economic Development Financing Authority, Refunding RB, Class B, 5.20%, 12/01/38(a)

     2,500       2,500,000  

Philadelphia Gas Works Co., Refunding RB

    

5.00%, 08/01/30

     700       720,506  

5.00%, 08/01/31

     900       926,339  

5.00%, 08/01/32

     1,200       1,235,303  

5.00%, 08/01/33

     600       618,631  

5.00%, 08/01/34

     1,050       1,081,159  

Pittsburgh Water & Sewer Authority, RB, Series A, 1st Lien, (AGM), 5.00%, 09/01/44

     2,045       2,159,884  

Pittsburgh Water & Sewer Authority, Refunding RB, Series C, (AGM), 4.06%, 09/01/40(a)

     3,620       3,596,423  

Williamsport Sanitary Authority, Refunding RB, (BAM), 4.00%, 01/01/40

     1,420       1,412,546  
   

 

 

  
      28,094,908  
   

 

 

  

Total Municipal Bonds in Pennsylvania

       350,080,809  
Security  

Par

(000)

     Value  
Puerto Rico — 3.2%            

State — 3.2%

    

Commonwealth of Puerto Rico, GO, Series A1, Restructured, 5.63%, 07/01/29

   $ 1,643     $ 1,744,678  

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

    

Series A1, Restructured, 0.00%, 07/01/46(c)

     6,252       1,683,945  

Series A1, Restructured, 4.75%, 07/01/53

     4,797       4,409,743  

Series A-2, Restructured, 4.78%, 07/01/58

     2,660       2,433,275  

Series A-2, Restructured, 4.33%, 07/01/40

     1,950       1,802,067  

Series B1, Restructured, 0.00%, 07/01/46(c)

     925       240,547  
   

 

 

  

Total Municipal Bonds in Puerto Rico

       12,314,255  
   

 

 

  

Total Long-Term Investments — 94.4%
(Cost: $379,708,032)

 

     362,395,064  
   

 

 

  
     Shares         

Short-Term Securities

 

  

Money Market Funds — 5.4%

 

  

BlackRock Liquidity Funds, MuniCash, Institutional Class, 3.22%(h)(i)

     20,846,287       20,846,287  
   

 

 

  

Total Short-Term Securities — 5.4%
(Cost: $20,843,428)

 

     20,846,287  
   

 

 

  

Total Investments — 99.8%
(Cost: $400,551,460)

 

     383,241,351  

Other Assets Less Liabilities — 0.2%

 

     768,872  
   

 

 

  

Net Assets — 100.0%

 

   $ 384,010,223  
   

 

 

  

 

(a) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(b) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) 

Zero-coupon bond.

(d) 

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

(e) 

When-issued security.

(f) 

Issuer filed for bankruptcy and/or is in default.

(g) 

Non-income producing security.

(h) 

Affiliate of the Fund.

(i)

Annualized 7-day yield as of period end.

 

 

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

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   35

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Pennsylvania Municipal Bond Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
       Affiliated Issuer    Value at
05/31/22		      Purchases
at Cost		      Proceeds
from Sales		      Net
Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		      Value at
05/31/23		      Shares
Held at
05/31/23		      Income      Capital Gain
Distributions
from
Underlying
Funds		           
 

BlackRock Liquidity Funds, MuniCash, Institutional Class

    $ 14,915,694      $  5,938,283 (a)     $  —      $ (9,775 )     $ 2,085      $ 20,846,287        20,846,287      $ 298,092      $  —    
             

 

 

     

 

 

     

 

 

        

 

 

     

 

 

    

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Categorized by Risk Exposure

For the period ended May 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		     

Interest

Rate
Contracts

      Other
Contracts		      Total  

Net Realized Gain (Loss) from:

                     

Futures contracts

    $ —      $ —      $ —      $ —      $ 3,498,025      $ —      $ 3,498,025  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Futures contracts

    $  —      $  —      $ —      $ —      $ (556,366 )     $ —      $ (556,366 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

   

Average notional value of contracts — short

    $ 20,829,459  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

                                                                                   
         
      Level 1        Level 2        Level 3        Total  

Assets

                  

Investments

                  

Long-Term Investments

                  

Municipal Bonds

    $ —        $ 362,395,064        $ —        $ 362,395,064  

Short-Term Securities

                  

Money Market Funds

      20,846,287          —          —          20,846,287  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 20,846,287        $ 362,395,064        $ —        $ 383,241,351  
  

 

 

       

 

 

       

 

 

       

 

 

  

 

 

36  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   

May 31, 2023

   

BlackRock Impact Municipal Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

 

  

Municipal Bonds

    
Alabama — 0.1%            

Sumter County Industrial Development Authority, RB, AMT, 6.00%, 07/15/52(a)

   $          100     $ 70,568  
   

 

 

  
Arizona — 2.3%            

Arizona Industrial Development Authority, RB

    

5.25%, 07/01/43(b)

     150       143,724  

Series A, 4.00%, 02/01/50

     1,000       932,078  
   

 

 

  
      1,075,802  
Arkansas — 2.5%            

Arkansas Development Finance Authority, RB, 5.70%, 05/01/53

     100       100,309  

University of Arkansas, RB, Series A, 5.00%, 04/01/47

     1,000       1,084,335  
   

 

 

  
      1,184,644  
California — 7.5%            

California Community Choice Financing Authority, RB(a)

    

Series A, 4.00%, 10/01/52

     1,500       1,481,952  

Series C, 5.25%, 01/01/54

     585       604,529  

California School Finance Authority, RB, 5.00%, 08/01/42(b)

     125       124,153  

California State Public Works Board, RB, Series D, 4.00%, 05/01/45

     1,000       971,930  

CSCDA Community Improvement Authority, RB, M/F Housing(b)

    

3.25%, 04/01/57

     250       168,824  

Series A-2, 3.00%, 02/01/57

     350       229,453  
   

 

 

  
      3,580,841  
Colorado — 1.8%            

Colorado School of Mines, RB, Series A, (AGM), 5.25%, 12/01/47

     290       312,793  

Denver City & County School District No. 1, GO, Series A, AMT, (SAW), 5.00%, 12/01/42

     500       555,895  
   

 

 

  
      868,688  
Connecticut — 5.1%            

Connecticut State Health & Educational Facilities Authority, RB, 5.25%, 07/15/48

     180       192,236  

State of Connecticut, GO, Series B, 5.00%, 01/15/42

     1,000       1,098,566  

University of Connecticut, RB, Series A, AMT, 5.00%, 05/01/39

     1,000       1,116,066  
   

 

 

  
      2,406,868  
Delaware — 0.2%            

Affordable Housing Opportunities Trust, RB, Series AH-01, Class B, 6.88%, 05/01/39(b)(c)

     80       73,336  
District of Columbia — 2.8%            

District of Columbia, RB, Class A, AMT, 5.50%, 02/28/34

     1,000       1,093,073  

Washington Metropolitan Area Transit Authority Dedicated Revenue, RB, Series A, 4.13%, 07/15/47

     250       244,561  
   

 

 

  
      1,337,634  
Florida — 5.5%            

Brevard County Health Facilities Authority, Refunding RB, Series A, 4.00%, 04/01/52

     1,000       903,508  

County of Miami-Dade Florida Water & Sewer System Revenue, RB, 4.00%, 10/01/48

     1,000       941,670  
Security  

Par

(000)

     Value  

 

  
Florida (continued)            

Florida Development Finance Corp., RB

    

Series A, 4.00%, 06/15/42

   $          500     $ 411,207  

Series A, 5.00%, 06/15/47

     375       359,248  
   

 

 

  
      2,615,633  
Georgia — 0.7%            

Georgia Housing & Finance Authority, Refunding RB, S/F Housing, Series A, 4.00%, 06/01/49

     325       323,375  
   

 

 

  
Illinois — 5.5%            

Chicago Board of Education, GO

    

Series A, 5.00%, 12/01/47

     500       489,170  

Series A, AMT, 5.00%, 12/01/33

     500       519,038  

Chicago Transit Authority Sales Tax Receipts Fund, Refunding RB, Series A, 2nd Lien, 5.00%, 12/01/57

     1,200       1,232,857  

Illinois Housing Development Authority, RB, S/F Housing, Series G, (FHLMC, FNMA, GNMA), 6.25%, 10/01/52

     350       379,977  
   

 

 

  
      2,621,042  
Kentucky — 3.2%            

City of Henderson Kentucky, RB, Series A, AMT, 4.70%, 01/01/52(b)

     500       459,505  

Louisville/Jefferson County Metropolitan Government, RB, Series A, (AGM), 5.00%, 05/15/47

     1,000       1,065,782  
   

 

 

  
      1,525,287  
Louisiana — 2.6%            

Jefferson Parish Consolidated Sewerage District No. 1, RB, (BAM), 4.00%, 02/01/39

     1,000       986,732  

Louisiana Public Facilities Authority, RB, Series A, 6.38%, 06/01/52(b)

     250       237,034  
   

 

 

  
      1,223,766  
Maine — 0.1%            

Finance Authority of Maine, RB, AMT, 8.00%, 12/01/51(b)

     100       61,847  
   

 

 

  
Maryland — 1.5%            

Maryland Economic Development Corp., RB, Class B, AMT, 5.25%, 06/30/47

     715       726,752  
   

 

 

  
Massachusetts — 5.5%            

Massachusetts Bay Transportation Authority Assessment Revenue, Refunding RB, Series A, 5.00%, 07/01/52

     1,500       1,642,569  

University of Massachusetts Building Authority, RB, Series 1, 4.00%, 11/01/46

     1,000       979,966  
   

 

 

  
      2,622,535  
Michigan — 5.1%            

Ludington Area School District, GO, Series II, (BAM Q-SBLF), 4.00%, 05/01/51

     1,000       918,941  

Michigan Finance Authority, RB, 4.00%, 02/15/47

     500       466,550  

Michigan State Housing Development Authority, RB, M/F Housing, 5.10%, 10/01/53

     1,000       1,024,306  
   

 

 

  
      2,409,797  
Minnesota — 1.8%            

Duluth Economic Development Authority, RB, Class B, 5.25%, 06/15/42

     500       505,000  

Minnesota Housing Finance Agency, RB, S/F Housing, Series N, (FHLMC, FNMA, GNMA), 6.00%, 01/01/53

     340       365,368  
   

 

 

  
      870,368  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   37

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Impact Municipal Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

 

  
Mississippi — 0.2%            

Mississippi Business Finance Corp., RB, AMT, 7.75%, 07/15/47(a)

   $          100     $ 88,643  
   

 

 

  
New Hampshire — 1.5%            

New Hampshire Business Finance Authority, RB, M/F Housing, Series 2022, 4.38%, 09/20/36

     741       714,707  
   

 

 

  
New Jersey — 0.3%            

Camden County Improvement Authority, RB, 6.00%, 06/15/47

     115       120,510  
   

 

 

  
New York — 14.7%            

Battery Park City Authority, RB, 4.00%, 11/01/44

     1,500       1,511,224  

Build NYC Resource Corp., RB

    

5.75%, 06/01/42(b)

     250       251,213  

Series A, 5.00%, 07/01/32

     245       228,351  

Metropolitan Transportation Authority, Refunding RB, Series A-1, 5.00%, 11/15/49

     1,000       1,021,759  

Nassau County Local Economic Assistance Corp., RB, 5.00%, 07/01/43

     1,000       1,014,261  

New York City Housing Development Corp., RB, M/F Housing, Class F-1, 4.75%, 11/01/47

     1,000       1,002,251  

New York City Municipal Water Finance Authority, RB, Series CC-1, 4.00%, 06/15/52

     1,000       963,842  

New York Power Authority, RB, (AGM), 4.00%, 11/15/40

     1,000       989,766  
   

 

 

  
      6,982,667  
North Carolina — 0.5%            

North Carolina Housing Finance Agency, RB, S/F Housing, (FHLMC, FNMA, GNMA), 3.75%, 07/01/52

     250       244,872  
   

 

 

  
North Dakota — 0.5%            

North Dakota Housing Finance Agency, RB, S/F Housing, Series A, 4.00%, 01/01/53

     230       227,499  
   

 

 

  
Ohio — 0.3%            

Southern Ohio Port Authority, RB, Series A, AMT, 7.00%, 12/01/42(b)

     200       149,462  
   

 

 

  
Oregon — 2.0%            

Port of Portland Oregon Airport Revenue, Refunding ARB, 29th Series, AMT, 5.50%, 07/01/48

     410       446,521  

State of Oregon Housing & Community Services Department, RB, S/F Housing, Series A, AMT, 4.00%, 07/01/51

     520       518,208  
   

 

 

  
      964,729  
Pennsylvania — 5.6%            

City of Philadelphia Pennsylvania Water & Wastewater Revenue, RB, Series C, 5.50%, 06/01/47

     1,000       1,108,503  

Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing, Series 2022, 4.25%, 10/01/52

     470       469,334  

Southeastern Pennsylvania Transportation Authority, RB, 5.25%, 06/01/47

     1,000       1,100,727  
   

 

 

  
      2,678,564  
Security  

Par

(000)

     Value  

 

  
Tennessee — 0.4%            

Tennessee Housing Development Agency, Refunding RB, S/F Housing, Series 1, 3.75%, 07/01/52

   $ 200     $ 196,326  
   

 

 

  
Texas — 6.6%            

Arlington Higher Education Finance Corp., RB

    

(PSF), 5.00%, 08/15/47

     500       532,236  

Series A, 5.25%, 08/15/32

     250       242,923  

City of El Paso Texas Water & Sewer Revenue, Refunding RB, 5.00%, 03/01/46

     1,000       1,068,984  

New Hope Cultural Education Facilities Finance Corp., Refunding RB, Series A, 6.63%, 10/01/43

     100       91,500  

Tarrant County Cultural Education Facilities Finance Corp., RB, Class F, 5.00%, 11/15/52(a)

     415       458,272  

Texas State Technical College, RB, (AGM), 5.50%, 08/01/42

     665       747,118  
   

 

 

  
      3,141,033  
Utah — 3.7%            

University of Utah, RB, Series A, 4.00%, 08/01/43

     1,500       1,501,788  

Utah Infrastructure Agency, RB, 5.00%, 10/15/32

     250       256,117  
   

 

 

  
      1,757,905  
Virginia — 2.1%            

Henrico County Economic Development Authority, RB, Class A, 5.00%, 10/01/47

     1,000       1,014,046  
   

 

 

  

Total Long-Term Investments — 92.2%
(Cost: $45,499,083)

       43,879,746  
   

 

 

  
    Shares        

 

  

Short-Term Securities

    
Money Market Funds — 6.3%            

BlackRock Liquidity Funds, MuniCash, Institutional Class, 3.22%(d)(e)

     3,006,316       3,006,316  
   

 

 

  

Total Short-Term Securities — 6.3%
(Cost: $3,005,961)

       3,006,316  
   

 

 

  

Total Investments — 98.5%
(Cost: $48,505,044)

       46,886,062  

Other Assets Less Liabilities — 1.5%

       693,203  
   

 

 

  

Net Assets — 100.0%

 

   $ 47,579,265  
   

 

 

  

 

(a) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(b) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

 

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

 

 

38  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Impact Municipal Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer    Value at
05/31/22		      Purchases
at Cost		      Proceeds
from Sales		      Net
Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		      Value at
05/31/23		      Shares
Held at
05/31/23		      Income      Capital Gain
Distributions
from
Underlying
Funds		  

BlackRock Liquidity Funds, MuniCash, Institutional Class

    $  1,983,841      $  1,022,541(a )     $ —      $ (219 )     $ 153      $ 3,006,316        3,006,316      $ 35,283      $ —  
           

 

 

     

 

 

     

 

 

        

 

 

     

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

         
Description    Number of
Contracts		      Expiration
Date		      Notional
Amount (000)		      Value/
Unrealized
Appreciation
(Depreciation)		  

Short Contracts

            

10-Year U.S. Treasury Note

      27        09/20/23        $3,090      $ (6,784 ) 

U.S. Long Bond

      31        09/20/23        3,983        (40,241 ) 

5-Year U.S. Treasury Note

      12        09/29/23        1,309        2,700  
           

 

 

  
            $ (44,325 ) 
           

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

               
      Commodity
Contracts		        Credit
Contracts		        Equity
Contracts		        Foreign
Currency
Exchange
Contracts		        Interest
Rate
Contracts		        Other
Contracts		        Total  

Assets — Derivative Financial Instruments

                                 

Futures contracts

                                 

Unrealized appreciation on futures contracts

    $ —        $ —        $ —        $ —        $ 2,700        $ —        $ 2,700  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Liabilities — Derivative Financial Instruments

                                 

Futures contracts

                                 

Unrealized depreciation on futures contracts

    $ —        $ —        $ —        $ —        $ 47,025        $ —        $ 47,025  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

For the period ended May 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
      Commodity
Contracts		        Credit
Contracts		        Equity
Contracts		        Foreign
Currency
Exchange
Contracts		        Interest
Rate
Contracts		        Other
Contracts		        Total  

Net Realized Gain (Loss) from:

                                 

Futures contracts

    $ —        $ —        $ —        $ —        $ 657,464        $ —        $ 657,464  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                                 

Futures contracts

    $ —        $ —        $ —        $ —        $ (106,773 )       $ —        $ (106,773 ) 
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

   

Futures contracts:

   

Average notional value of contracts — short

    $ 8,551,272  

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   39

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Impact Municipal Fund

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

                                                                                                       
         
      Level 1        Level 2        Level 3        Total  

Assets

                  

Investments

                  

Long-Term Investments

                  

Municipal Bonds

    $ —        $ 43,806,410        $ 73,336        $ 43,879,746  

Short-Term Securities

                  

Money Market Funds

      3,006,316          —          —          3,006,316  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 3,006,316        $  43,806,410        $ 73,336        $ 46,886,062  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Assets

                  

Interest Rate Contracts

    $ 2,700        $ —        $ —        $ 2,700  

Liabilities

                  

Interest Rate Contracts

      (47,025 )         —          —          (47,025 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ (44,325 )       $ —        $ —        $ (44,325 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

40  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments  

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

Corporate Bonds

    
Chemicals — 0.3%            

Community Preservation Corp., Series 2020,

    

Class C, 2.87%, 02/01/30

   $          17,450     $      14,709,505  
   

 

 

  
Commercial Services & Supplies — 0.1%  

Conservation Fund A Nonprofit Corp., Series 2019, 3.47%, 12/15/29

     2,677       2,300,144  
   

 

 

  
Education — 0.1%            

Chapman University, 3.00%, 04/01/51

     3,495       2,459,416  
   

 

 

  
Health Care Providers & Services — 0.3%  

Baylor Scott & White Holdings, Series 2021, 2.84%, 11/15/50

     1,046       695,223  

Hackensack Meridian Health, Inc., Series 2020, 2.68%, 09/01/41

     12,500       8,741,542  

OhioHealth Corp., 2.83%, 11/15/41

     10,000       7,294,142  
   

 

 

  
      16,730,907  
Industrial Conglomerates — 0.6%  

Grand Canyon University, 5.13%, 10/01/28

     35,874       32,483,548  
   

 

 

  

Total Corporate Bonds — 1.4%
(Cost: $83,042,000)

       68,683,520  
   

 

 

  

Municipal Bonds

 

Alabama — 1.2%            

Alabama Federal Aid Highway Finance Authority, Refunding RB

    

Series B, 2.16%, 09/01/32

     4,000       3,279,552  

Series B, 2.26%, 09/01/33

     6,300       5,106,263  

Black Belt Energy Gas District, RB, Series C-1, 5.25%, 02/01/53(a)

     26,150       27,307,870  

Black Belt Energy Gas District, Refunding RB, 4.00%, 06/01/51(a)

     18,605       18,303,320  

County of Jefferson Alabama Sewer Revenue, Refunding RB, Series D, Sub Lien, 7.00%, 10/01/51

     3,000       3,175,455  

Tuscaloosa County Industrial Development Authority, Refunding RB, Series A, 5.25%, 05/01/44(b)

     3,540       3,132,673  
   

 

 

  
      60,305,133  
Alaska — 0.2%            

State of Alaska International Airports System, Refunding RB

    

Series B, 5.00%, 10/01/32

     5,000       5,198,750  

Series B, 5.00%, 10/01/34

     5,000       5,198,795  
   

 

 

  
      10,397,545  
Arizona — 2.1%            

Arizona Industrial Development Authority, RB(b)

    

7.10%, 01/01/55

     3,195       3,266,213  

Series A, 5.00%, 07/01/39

     1,335       1,239,379  

Series A, 5.00%, 07/01/49

     2,075       1,810,330  

Arizona Industrial Development Authority, RB, M/F Housing, Series 2019-2, Class A, 3.63%, 05/20/33

     21,065       19,484,573  

Chandler Industrial Development Authority, RB, Series 2, AMT, 5.00%, 09/01/52(a)

     25,000       25,787,250  

City of Phoenix Civic Improvement Corp., ARB, Series A, AMT, 5.00%, 07/01/47

     10,000       10,207,050  
Security  

Par

(000)

     Value  
Arizona (continued)            

City of Phoenix Civic Improvement Corp., Refunding RB, Series D, Junior Lien, 5.00%, 07/01/37

   $            5,000     $        5,268,020  

Maricopa County Industrial Development Authority, RB

    

Series A, 5.00%, 09/01/31

     1,000       1,098,697  

Series A, 5.00%, 09/01/32

     1,000       1,098,346  

Series A, 5.00%, 09/01/34

     1,000       1,088,369  

Maricopa County Pollution Control Corp., Refunding RB, 2.40%, 06/01/35

     30,000       23,016,225  

Salt River Project Agricultural Improvement & Power District, RB, 5.00%, 01/01/47

     5,000       5,363,645  

Salt River Project Agricultural Improvement & Power District, Refunding RB, Series A, 5.00%, 12/01/45.

     10,000       10,290,590  
   

 

 

  
      109,018,687  
Arkansas(b) — 0.4%            

Arkansas Development Finance Authority, RB

    

Series A, AMT, 4.50%, 09/01/49

     8,475       7,491,290  

Series A, AMT, 4.75%, 09/01/49

     16,695       15,552,294  
   

 

 

  
      23,043,584  
California — 15.2%            

Antelope Valley Community College District, Refunding GO, Series A, Election 2016, 4.00%, 08/01/46

     10,000       9,903,060  

Bay Area Toll Authority, Refunding RB, Series A, 2.00%, 04/01/56(a)

     5,000       4,578,055  

California Community Choice Financing Authority, RB, Series C, 5.25%, 01/01/54(a)

     5,000       5,166,910  

California Community Housing Agency, RB, M/F Housing, Series A-2, 4.00%, 08/01/51(b)

     1,915       1,292,160  

California Enterprise Development Authority, RB, 10.00%, 11/15/32(b)

     670       663,502  

California Health Facilities Financing Authority, RB

    

5.00%, 02/01/36

     5,000       5,370,755  

5.00%, 02/01/37

     5,000       5,334,850  

California Housing Finance Agency, RB, Series 2, 4.00%, 03/20/33

     18,365       17,729,880  

California Housing Finance Agency, RB, M/F Housing

    

Class A, 3.25%, 08/20/36

     15,654       13,985,164  

Series A, AMT, 4.25%, 01/15/35

     19       18,248  

California Infrastructure & Economic Development Bank, RB

    

4.00%, 10/01/47

     7,480       7,455,114  

5.00%, 05/15/52

     10,000       10,524,650  

California Municipal Finance Authority, RB

    

5.38%, 07/01/34(b)

     1,000       1,000,552  

5.63%, 07/01/44(b)

     2,760       2,666,395  

6.00%, 07/01/44

     1,960       1,961,746  

Series A, 6.00%, 08/01/44(b)

     330       330,199  

Series A, 6.13%, 08/01/49(b)

     285       285,229  

RB, AMT, 0.70%, 12/01/44(a)

     3,000       2,947,731  

California Municipal Finance Authority, RB, S/F Housing, Series B, 5.88%, 08/15/49

     1,000       999,977  

California Pollution Control Financing Authority, RB(b) AMT, 5.00%, 07/01/37

     10,000       10,033,920  

Series A, AMT, 5.00%, 11/21/45

     30,000       30,003,600  

California Pollution Control Financing Authority, Refunding RB, Series B-2, AMT, 3.13%, 11/01/40(a)

     12,090       11,746,257  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   41

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
California (continued)            

California Public Finance Authority, Refunding RB, Series A, 5.00%, 08/01/47

   $          10,000     $      10,414,360  

California School Finance Authority, RB, Series A, 6.75%, 11/01/45(b)

     1,395       1,410,394  

California Statewide Communities Development Authority, Refunding RB

    

1.75%, 09/01/29

     20,000       17,748,540  

Series A, 5.25%, 11/01/44(b)

     625       505,568  

Series B, 1.45%, 04/01/28

     10,000       8,449,370  

Chaffey Joint Union High School District, GO, Series C, Election of 2012, 5.25%, 08/01/47

     10,000       10,500,840  

Chino Valley Unified School District, GO, Series A, Election 2016, 5.25%, 08/01/47

     10,000       10,564,080  

City of Los Angeles Department of Airports, ARB

    

AMT, 5.00%, 05/15/32

     6,765       7,548,488  

Series A, AMT, 5.00%, 05/15/45

     5,000       5,088,550  

Series A, AMT, 5.25%, 05/15/48

     10,000       10,337,550  

Series A, AMT, Subordinate, 5.00%, 05/15/30

     5,000       5,439,515  

City of Los Angeles Department of Airports, Refunding ARB

    

AMT, 5.00%, 05/15/37

     4,100       4,363,527  

Series A, AMT, 5.00%, 05/15/40

     5,000       5,256,775  

Series A, AMT, 5.00%, 05/15/46

     10,000       10,290,250  

AMT, Subordinate, 5.00%, 05/15/30(c)

     30       33,289  

AMT, Subordinate, 5.00%, 05/15/31

     18,995       21,240,646  

AMT, Subordinate, 5.00%, 05/15/31(c)

     775       866,296  

AMT, Subordinate, 5.00%, 11/15/31(d)

     2,655       2,983,004  

AMT, Subordinate, 5.00%, 05/15/33

     9,470       10,501,264  

AMT, Subordinate, 5.00%, 05/15/34

     4,735       5,286,410  

AMT, Subordinate, 5.00%, 05/15/35

     10,105       11,208,779  

AMT, Subordinate, 5.00%, 05/15/36

     13,690       15,071,170  

City of San Francisco California Public Utilities

    

Commission Water Revenue, RB, Series C,

    

4.00%, 11/01/50

     5,050       4,811,610  

City of San Francisco California Public Utilities Commission Water Revenue, Refunding RB, Series A, 5.00%, 11/01/50

     24,515       26,419,448  

Cloverdale Unified School District, Refunding GO, Series B, 4.00%, 08/01/49

     5,000       4,852,330  

CMFA Special Finance Agency XII, RB, M/F Housing, 4.38%, 08/01/49(b)

     3,490       2,701,445  

Contra Costa Water District, Refunding RB, Series W, 4.00%, 10/01/46

     10,000       10,010,090  

CSCDA Community Improvement Authority, RB, M/F Housing(b)

    

4.00%, 07/01/56

     12,210       8,784,421  

3.25%, 05/01/57

     2,365       1,647,686  

4.00%, 07/01/58

     5,880       4,175,835  

Series B, 4.00%, 07/01/58

     6,700       4,650,014  

Mezzanine Lien, 4.00%, 06/01/57

     4,610       3,239,659  

Series B, Mezzanine Lien, 4.00%, 12/01/59

     8,355       5,366,926  

Senior Lien, 3.13%, 06/01/57

     8,865       5,967,297  

Series B, Sub Lien, 4.00%, 12/01/59

     10,420       7,063,760  

East Bay Municipal Utility District Water System

    

Revenue, RB, Series A, 5.00%, 06/01/42

     10,000       10,609,550  

Folsom Cordova Unified School District School

    

Facilities Improvement Dist No. 5, GO, Series A,

    

Election 2014, 4.00%, 10/01/40

     10,000       10,059,510  

Fresno Unified School District, Refunding GO, Series B, 4.00%, 08/01/46

     10,000       9,747,010  
Security  

Par

(000)

     Value  
California (continued)            

Glendale Community College District, GO, Series B, 0.00%, 08/01/39(e)

   $            6,755     $        3,281,147  

Golden State Tobacco Securitization Corp., Refunding RB

    

Class B, (SAP), 2.35%, 06/01/30

     8,000       6,739,792  

Series B-2, Subordinate, 0.00%, 06/01/66(e)

     5,000       503,550  

Long Beach Unified School District, GO

    

5.00%, 08/01/40

     4,005       4,536,952  

5.00%, 08/01/41

     6,810       7,650,177  

5.00%, 08/01/43

     8,345       9,296,280  

4.00%, 08/01/46

     11,360       11,030,151  

4.00%, 08/01/53

     7,500       7,248,075  

Los Angeles Department of Water & Power, RB, 5.00%, 07/01/51

     22,475       24,370,294  

Los Angeles Department of Water & Power, Refunding RB, Series B, 5.00%, 07/01/41

     10,000       10,982,770  

Los Angeles Unified School District, GO, 4.00%, 07/01/36

     5,000       5,155,890  

Municipal Improvement Corp. of Los Angeles, Refunding RB, 5.00%, 11/01/40

     5,000       5,554,260  

Northern California Gas Authority No. 1, RB, Series B, 4.19%, 07/01/27(a)

     3,600       3,552,714  

Peralta Community College District, GO, Series B, 5.50%, 08/01/52

     5,000       5,729,475  

Poway Unified School District, Refunding GO(e)

    

0.00%, 08/01/35

     5,950       3,874,545  

0.00%, 08/01/38

     22,210       12,132,812  

Sacramento Municipal Utility District, Refunding RB, Series H, 4.00%, 08/15/45

     4,925       4,869,170  

San Diego County Regional Airport Authority, ARB

    

Series B, AMT, 5.00%, 07/01/31

     5,750       6,261,434  

Series B, AMT, Subordinate, 5.00%, 07/01/28

     5,245       5,615,502  

San Francisco City & County Airport Comm-San Francisco International Airport, Refunding RB, Series A, AMT, 5.00%, 05/01/32

     5,000       5,540,365  

San Francisco City & County Public Utilities Commission Wastewater Revenue, RB, Series C, 2.13%, 10/01/48(a)

     18,000       17,973,090  

San Francisco City & County Public Utilities Commission Wastewater Revenue, Refunding RB

    

Series A, 5.00%, 10/01/44

     5,000       5,504,960  

Series A, 5.00%, 10/01/45

     5,000       5,492,315  

San Francisco City & County Redevelopment Agency Successor Agency, TA(b)(e)

    

Series D, 0.00%, 08/01/26

     1,170       1,012,420  

Series D, 0.00%, 08/01/43

     20,000       7,412,640  

San Mateo County Community College District, GO(e)

    

Series B, Election 2005, (NPFGC), 0.00%, 09/01/35

     11,000       6,981,832  

Series B, Election 2005, (NPFGC), 0.00%, 09/01/36

     21,650       13,447,335  

Santa Clara County Financing Authority, RB,

    

Series A, 4.00%, 05/01/45

     13,845       13,470,936  

Santa Clara Valley Water District, Refunding RB

    

Series A, 5.00%, 06/01/48

     4,915       5,412,521  

Series A, 5.00%, 06/01/49

     5,160       5,662,641  

Series A, 5.00%, 06/01/50

     5,415       5,929,441  

Series A, 5.00%, 06/01/51

     5,690       6,216,814  

Series A, 5.00%, 06/01/52

     5,675       6,191,476  
 

 

 

42  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
California (continued)            

State of California Department of Water Resources, Refunding RB, Series BC, 1.41%, 12/01/29

   $            4,600     $        3,794,945  

State of California, Refunding GO

    

6.00%, 03/01/33

     7,485       8,298,200  

4.00%, 03/01/36

     10,000       10,387,440  

5.00%, 10/01/36

     8,830       10,257,422  

5.00%, 09/01/41

     2,385       2,655,733  

5.00%, 11/01/43

     9,500       9,559,812  

5.00%, 10/01/45

     16,575       18,526,971  

5.25%, 09/01/47

     2,150       2,424,207  

5.25%, 10/01/50

     9,800       11,072,452  

Walnut Creek Elementary School District Contra Costa County, GO, 4.00%, 09/01/52

     18,625       17,765,866  
   

 

 

  
      778,590,034  

Colorado — 1.5%

    

City & County of Denver Colorado Airport System Revenue, Refunding ARB, Series A, AMT, 5.00%, 12/01/36

     5,000       5,482,635  

City of Colorado Springs Colorado Utilities System Revenue, RB

    

Series B, 5.00%, 11/15/47

     6,520       7,109,375  

Series B, 5.25%, 11/15/52

     13,000       14,366,274  

Colorado Health Facilities Authority, Refunding RB

    

Series A, 5.00%, 08/01/30

     10,000       10,760,285  

Series A, 5.00%, 08/01/31

     5,000       5,367,990  

Series A, 5.00%, 08/01/32

     5,000       5,356,330  

Series A, 5.00%, 08/01/35

     5,000       5,320,435  

Series A, 5.00%, 08/01/36

     10,000       10,579,860  

Flying Horse Metropolitan District No. 3, Refunding GO, 6.00%, 12/01/49(b)

     2,965       2,789,798  

Plaza Metropolitan District No. 1, Refunding TA, 4.00%, 12/01/23(b)

     1,000       990,681  

Public Authority for Colorado Energy, RB, 6.25%, 11/15/28

     5,000       5,273,595  

STC Metropolitan District No. 2, Refunding GO, Series A, 4.00%, 12/01/29

     1,000       920,667  

Village at Dry Creek Metropolitan District No. 2, GO, 4.38%, 12/01/44

     2,483       2,003,255  
   

 

 

  
      76,321,180  
Connecticut — 1.5%            

Connecticut Housing Finance Authority, Refunding RB, S/F Housing

    

0.55%, 05/15/26

     1,000       921,161  

0.60%, 11/15/26

     1,000       909,736  

0.75%, 11/15/27

     2,250       2,001,382  

0.85%, 05/15/28

     2,940       2,589,937  

0.90%, 11/15/28

     1,150       1,000,953  

1.05%, 05/15/29

     3,000       2,596,572  

1.10%, 11/15/29

     5,630       4,817,056  

1.30%, 05/15/30

     3,450       2,950,261  

1.35%, 11/15/30

     4,050       3,430,868  

1.45%, 05/15/31

     1,220       1,047,651  

1.50%, 11/15/31

     4,910       4,190,277  

1.60%, 05/15/32

     3,740       3,188,099  

1.70%, 05/15/34

     2,635       2,161,612  

Connecticut State Health & Educational Facilities Authority, RB 5.25%, 07/15/48

     1,760       1,879,643  
Security  

Par

(000)

     Value  
Connecticut (continued)            

Connecticut State Health & Educational Facilities Authority, RB (continued)

    

Series A-1, 5.00%, 10/01/54(b)

   $            2,370     $        1,838,497  

Connecticut State Health & Educational Facilities Authority, Refunding RB, 5.00%, 12/01/45

     10,000       10,223,410  

Mohegan Tribal Finance Authority, RB, 7.00%, 02/01/45(b)

     10,450       10,472,342  

Mohegan Tribe of Indians of Connecticut, Refunding RB(b)

    

Series C, 5.75%, 02/01/24

     3,320       3,313,108  

Series C, 5.75%, 02/01/25

     3,755       3,742,417  

Series C, 6.25%, 02/01/30

     4,930       5,006,750  

State of Connecticut Special Tax Revenue, RB, Series D, 4.00%, 11/01/39

     10,000       10,019,240  
   

 

 

  
      78,300,972  
Delaware — 0.3%            

Affordable Housing Opportunities Trust, RB,

    

Series AH-01, Class B, 6.88%, 05/01/39(b)(f)

     15,003       13,771,481  
   

 

 

  
District of Columbia — 1.0%            

District of Columbia Water & Sewer Authority, RB, Series A, 5.00%, 10/01/52

     10,000       10,392,040  

District of Columbia, RB, Series A, 5.00%, 07/01/47

     15,400       16,695,556  

Metropolitan Washington Airports Authority Aviation Revenue, Refunding ARB

    

5.25%, 10/01/42(g)

     1,500       1,608,017  

5.25%, 10/01/43(g)

     1,750       1,873,492  

AMT, 5.00%, 10/01/27

     5,000       5,247,235  

AMT, 5.00%, 10/01/42

     10,000       10,274,910  

Series A, AMT, 5.00%, 10/01/30

     5,000       5,073,165  
   

 

 

  
      51,164,415  
Florida — 5.0%            

Alta Lakes Community Development District, SAB

    

3.50%, 05/01/24

     100       99,066  

3.75%, 05/01/29

     550       531,302  

4.40%, 05/01/39

     1,030       938,159  

4.63%, 05/01/49

     1,775       1,546,845  

Babcock Ranch Community Independent Special District, SAB

    

4.75%, 11/01/26

     335       334,182  

5.00%, 11/01/31

     500       490,865  

5.25%, 11/01/46

     3,460       3,233,730  

Brevard County Health Facilities Authority, Refunding RB(b)

    

4.00%, 11/15/31

     580       535,158  

4.00%, 11/15/45

     1,575       1,245,033  

4.00%, 11/15/55

     2,340       1,725,528  

Canaveral Port Authority, ARB

    

Series B, 5.00%, 06/01/48

     5,000       5,207,470  

Series A, AMT, 5.00%, 06/01/45

     5,000       5,130,465  

Capital Trust Agency, Inc., RB

    

4.88%, 06/15/56(b)

     12,000       9,287,952  

Series A, 5.00%, 12/15/39

     1,775       1,757,151  

Series A, 5.00%, 06/15/49(b)

     5,000       4,353,490  

Series A-2, 5.00%, 01/01/26(b)

     1,760       1,748,998  

Celebration Pointe Community Development District No. 1, SAB

    

4.75%, 05/01/24

     50       49,996  

5.00%, 05/01/34

     710       694,380  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   43

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Florida (continued)            

Celebration Pointe Community Development District

    

No. 1, SAB (continued)

    

5.13%, 05/01/45

   $               985     $           917,610  

Charles Cove Community Development District, SAB, 4.00%, 05/01/52

     1,160       893,461  

Charlotte County Industrial Development Authority, RB, AMT, 5.50%, 10/01/36(b)

     3,220       3,237,716  

City of St Petersburg Florida Public Utility Revenue, RB, Series B, 5.00%, 10/01/52

     5,000       5,341,285  

City of Tampa Florida Water & Wastewater System Revenue, RB, Series A, 5.00%, 10/01/47

     4,000       4,378,184  

Collier County Industrial Development Authority, Refunding RB, Series A, 8.25%, 05/15/49(b)(h)(i)

     1,000       110,000  

County of Broward Florida Airport System Revenue, ARB, Series A, AMT, 5.00%, 10/01/49

     16,000       16,322,976  

County of Broward Florida Tourist Development Tax Revenue, Refunding RB, 4.00%, 09/01/47

     10,000       9,059,110  

County of Miami-Dade Florida Aviation Revenue, Refunding RB, Series C, 4.06%, 10/01/31

     5,120       4,791,368  

County of Miami-Dade Florida, RB(e)

    

0.00%, 10/01/38

     30,000       14,894,730  

0.00%, 10/01/44

     10,000       3,596,190  

Series C, (AGC), 0.00%, 10/01/44

     38,000       13,823,830  

County of Miami-Dade Florida, Refunding RB, Series A, (AGC), 0.00%, 10/01/45(e)

     10,000       3,416,250  

County of Miami-Dade Seaport Department, Refunding RB

    

Series A, AMT, 5.00%, 10/01/34

     3,400       3,707,941  

Series A, AMT, 5.00%, 10/01/35

     1,650       1,788,036  

Series A, AMT, 5.00%, 10/01/36

     1,300       1,396,820  

Series B-2, AMT, Subordinate, 4.00%, 10/01/50

     6,005       5,513,635  

County of Palm Beach Florida, RB(b)

    

5.00%, 04/01/39

     2,700       2,580,274  

5.00%, 04/01/51

     1,305       1,166,500  

County of Pasco Florida, RB, (AGM), 5.00%, 09/01/48

     1,000       1,032,989  

County of Sarasota Florida Utility System Revenue, RB, 5.25%, 10/01/52

     19,790       21,769,554  

Crossings At Fleming Island Community Development District, Refunding SAB, Series A-3, Senior Lien, 6.50%, 05/01/44

     2,130       2,143,387  

Duval County Public Schools, COP

    

Series A, AMT, (AGM), 5.00%, 07/01/30

     5,750       6,430,311  

Series A, AMT, (AGM), 5.00%, 07/01/31

     6,500       7,261,767  

Epperson North Community Development District, SAB, Series A, 4.00%, 11/01/51

     970       730,309  

Florida Development Finance Corp., RB(b)

    

6.50%, 06/30/57

     5,810       5,610,275  

Series A, 5.75%, 06/15/29

     365       366,506  

Series A, 6.00%, 06/15/34

     440       442,965  

Series A, 6.13%, 06/15/44

     1,685       1,688,673  

Series C, 5.75%, 12/15/56

     4,090       3,296,213  

AMT, 5.00%, 05/01/29

     1,140       1,060,332  

Florida Development Finance Corp., Refunding RB

    

5.00%, 11/15/28

     1,050       1,127,027  

5.00%, 11/15/29

     1,350       1,465,439  

5.00%, 11/15/30

     1,500       1,645,621  

5.00%, 11/15/32

     1,800       1,995,631  

Series A, 4.50%, 12/15/56(b)

     11,970       8,644,124  
Security  

Par

(000)

     Value  
Florida (continued)            

Florida Housing Finance Corp., RB, S/F Housing

    

(FHLMC, FNMA, GNMA), 3.80%, 07/01/43

   $            2,125     $        2,141,161  

Class 1, (FHLMC, FNMA, GNMA), 3.70%, 07/01/38

     2,130       2,140,933  

Series 1, (FHLMC, FNMA, GNMA), 1.80%, 07/01/36

     2,495       2,039,994  

Greater Orlando Aviation Authority, ARB, Series A, AMT, 5.00%, 10/01/46

     10,000       10,171,150  

Harbor Bay Community Development District, Refunding SAB, Series A-2, 3.75%, 05/01/34

     1,005       895,277  

Harbor Bay Community Development District, SAB

    

Series A-1, 3.88%, 05/01/39

     2,170       1,854,495  

Series A-1, 4.10%, 05/01/48

     1,400       1,128,970  

Lakewood Ranch Stewardship District, SAB

    

4.25%, 05/01/25

     125       124,276  

2.13%, 05/01/26

     140       133,593  

4.25%, 05/01/26

     540       533,989  

2.63%, 05/01/31

     260       229,383  

4.88%, 05/01/35

     1,100       1,068,040  

4.40%, 05/01/39

     490       446,309  

3.13%, 05/01/41

     645       479,210  

4.88%, 05/01/45

     2,215       2,019,048  

5.13%, 05/01/46

     4,985       4,591,320  

4.50%, 05/01/49

     1,370       1,170,558  

4.00%, 05/01/51

     925       708,677  

Midtown Miami Community Development District, Refunding SAB, Series B, 5.00%, 05/01/37

     1,870       1,835,420  

Portico Community Development District, Refunding SAB

    

Series 1, 3.20%, 05/01/31

     995       900,591  

Series 1, 3.50%, 05/01/37

     1,245       1,041,171  

Reunion East Community Development District, SAB

    

2.40%, 05/01/26

     220       211,374  

2.85%, 05/01/31

     500       448,819  

4.00%, 05/01/51

     2,685       2,086,242  

Sawyers Landing Community Development District, SAB

    

3.75%, 05/01/31

     1,550       1,401,891  

4.13%, 05/01/41

     2,525       2,021,520  

Sterling Hill Community Development District, Refunding SAB, Series B, 5.50%, 11/01/10(h)(i)

     143       90,783  

Sumter Landing Community Development District, RB, 4.17%, 10/01/47

     2,030       1,814,879  

Talavera Community Development District, SAB

    

4.35%, 05/01/40

     495       444,413  

4.50%, 05/01/50

     770       654,277  

Tolomato Community Development District, Refunding SAB, Series 2015-2, 6.61%, 05/01/40(j)

     490       445,910  

Tolomato Community Development District, SAB, Series 2015-3, 6.61%, 05/01/40(h)(i)

     535       5  

Trout Creek Community Development District, SAB

    

5.50%, 05/01/35

     2,325       2,330,738  

5.63%, 05/01/45

     3,605       3,557,926  

Village Center Community Development District, Refunding RB, 5.02%, 11/01/36

     1,500       1,474,905  

Westside Haines City Community Development District, SAB

    

2.50%, 05/01/26

     190       182,440  
 

 

 

44  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Florida (continued)            

Westside Haines City Community Development District, SAB (continued)

    

3.00%, 05/01/31

   $ 435     $ 391,089  

3.25%, 05/01/41

     2,025       1,524,529  
   

 

 

  
         257,292,114  

Georgia — 2.8%

    

Atlanta Urban Redevelopment Agency, RB(b)

    

2.38%, 07/01/26

     1,065       1,007,641  

2.88%, 07/01/31

     1,930       1,655,683  

3.63%, 07/01/42

     5,605       4,534,641  

3.88%, 07/01/51

     2,630       2,051,095  

City of Atlanta Georgia Department of Aviation, Refunding RB

    

Series B, 5.00%, 07/01/29

     1,095       1,213,246  

Series C, AMT, 5.00%, 07/01/30

     1,315       1,424,993  

Series C, AMT, 5.00%, 07/01/31

     1,730       1,888,991  

Clarke County Hospital Authority, Refunding RB, 5.00%, 07/01/46

              10,000       10,154,900  

County of DeKalb Georgia Water & Sewerage Revenue, Refunding RB

    

5.00%, 10/01/28

     5,000       5,557,725  

5.00%, 10/01/29

     10,000       11,307,360  

5.00%, 10/01/30

     5,000       5,747,165  

5.00%, 10/01/31

     5,000       5,838,285  

5.00%, 10/01/46

     11,820       12,933,562  

5.00%, 10/01/47

     9,865       10,768,457  

5.00%, 10/01/48

     12,395       13,493,172  

5.00%, 10/01/49

     7,210       7,832,908  

Development Authority of Cobb County, RB, Series A, 5.00%, 06/01/49

     10,000       10,341,840  

East Point Business & Industrial Development Authority, RB, Series A, 5.25%, 06/15/62(b)

     3,355       2,931,418  

Georgia Housing & Finance Authority, RB, S/F Housing

    

Series B, 3.55%, 12/01/42

     10,000       8,707,260  

Series B1, 3.65%, 06/01/44

     9,670       9,102,303  

Georgia Housing & Finance Authority, Refunding RB, S/F Housing, Series A, 2.40%, 12/01/41

     4,245       3,100,913  

Gwinnett County School District, GO, Series B, 5.00%, 08/01/27

     5,000       5,435,210  

State of Georgia, Refunding GO, Series A, 4.00%, 07/01/35

     5,000       5,296,595  
   

 

 

  
      142,325,363  

Hawaii — 0.4%

    

Kauai County Community Facilities District, ST

    

5.00%, 05/15/44

     625       625,323  

5.00%, 05/15/49

     2,750       2,695,261  

State of Hawaii Department of Budget & Finance, Refunding RB, Series A, 4.00%, 07/01/40

     10,000       9,713,750  

State of Hawaii, Refunding GO, Series GJ, 2.04%, 08/01/31

     7,500       6,251,452  
   

 

 

  
      19,285,786  

Idaho — 0.7%

    

Idaho Housing & Finance Association, RB

    

5.00%, 08/15/35

     3,000       3,509,589  

5.00%, 08/15/36

     1,425       1,646,163  

5.00%, 08/15/37

     1,400       1,597,526  

5.00%, 08/15/38

     1,100       1,244,891  
Security  

Par

(000)

     Value  
Idaho (continued)            

Idaho Housing & Finance Association,

    

RB (continued)

    

5.00%, 08/15/39

   $ 1,650     $ 1,858,738  

5.00%, 08/15/40

     1,155       1,295,470  

5.00%, 08/15/41

     5,000       5,579,295  

4.25%, 06/15/62(b)

     5,910       4,153,093  

Series A, 6.95%, 06/15/55(b)

     5,150       5,343,851  

Idaho Housing & Finance Association, Refunding RB

    

Series A, 4.00%, 07/15/37

     2,100       2,084,118  

Series A, 4.00%, 07/15/38

     3,000       2,931,048  

Series A, 4.00%, 07/15/39

     3,250       3,171,122  
   

 

 

  
           34,414,904  

Illinois — 2.2%

    

Chicago Board of Education, GO

    

6.32%, 11/01/29

     7,990       8,091,289  

Series D, 5.00%, 12/01/46

              10,000       9,506,110  

Chicago Board of Education, GO, BAB

    

6.04%, 12/01/29

     19,810       19,766,735  

6.52%, 12/01/40

     7,045       6,768,413  

Chicago Board of Education, Refunding GO,

    

Series B, 4.00%, 12/01/35

     11,230       10,554,864  

City of Chicago Illinois Special Assessment

    

Revenue, Refunding SAB(b)

    

1.99%, 12/01/23

     275       270,657  

2.27%, 12/01/24

     308       295,365  

2.53%, 12/01/25

     327       308,075  

2.69%, 12/01/26

     267       248,222  

2.87%, 12/01/27

     221       203,505  

3.04%, 12/01/28

     241       219,855  

3.20%, 12/01/29

     300       271,573  

3.29%, 12/01/30

     325       291,754  

3.38%, 12/01/31

     348       310,586  

3.45%, 12/01/32

     275       243,916  

Illinois Finance Authority, Refunding RB

    

Class A, 4.00%, 08/15/39

     7,000       6,767,544  

Series A, 5.00%, 08/15/30

     2,560       2,847,944  

Series A, 5.00%, 08/15/32

     2,960       3,329,583  

Series A, 5.00%, 08/15/33

     3,640       4,071,369  

Series A, 5.00%, 08/15/34

     4,870       5,402,734  

Series A, 5.00%, 08/15/35

     5,000       5,487,045  

Illinois Housing Development Authority, RB, S/F Housing

    

Series D, (FHLMC, FNMA, GNMA), 2.25%, 04/01/30

     975       873,113  

Series D, (FHLMC, FNMA, GNMA), 2.35%, 04/01/31

     900       799,343  

Series D, (FHLMC, FNMA, GNMA), 2.70%, 10/01/34

     5,000       4,343,125  

Illinois State Toll Highway Authority, RB, 5.25%, 01/01/45

     21,425       23,668,947  
   

 

 

  
      114,941,666  

Indiana — 0.6%

    

City of Valparaiso Indiana, RB, AMT, 5.88%, 01/01/24

     100       100,720  

Indiana Finance Authority, RB

    

Series A, 4.00%, 12/01/49

     26,175       23,982,033  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   45

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

Indiana (continued)

    

Indiana Finance Authority, RB (continued)

    

Series B, 1st Lien, 5.25%, 10/01/47

   $            5,000     $        5,400,065  

Indiana Finance Authority, Refunding RB, Series B, 3.83%, 09/15/41

     2,780       2,138,462  
   

 

 

  
      31,621,280  

Iowa — 0.2%

    

Iowa Finance Authority, Refunding RB, 5.00%, 08/01/42

     10,000       10,554,310  
   

 

 

  

Kentucky — 0.6%

    

County of Carroll Kentucky, Refunding RB, 2.13%, 10/01/34

     5,485       4,258,088  

Kentucky Economic Development Finance Authority, RB, Series B, 5.00%, 08/15/33

     5,000       5,326,715  

Kentucky Public Energy Authority, RB, Series A, 4.00%, 04/01/48(a)

     17,000       16,954,899  

Westvaco Corp., RB, 7.67%, 01/15/27(b)

     3,100       3,272,915  
   

 

 

  
      29,812,617  

Louisiana — 0.7%

    

Juban Crossing Economic Development District, Refunding RB, Series C, 7.00%, 09/15/44(b)

     5,530       5,021,948  

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, 5.05%, 12/01/34

     18,540       18,746,056  

Louisiana Public Facilities Authority, RB, Series A, 5.00%, 04/01/57(b)

     4,965       3,823,740  

Louisiana Public Facilities Authority, Refunding RB, Series A, 3.00%, 05/15/47

     10,000       7,068,380  
   

 

 

  
      34,660,124  

Maine — 0.4%

    

Finance Authority of Maine, RB, AMT, 8.00%, 12/01/51(b)

     14,465       8,946,197  

Maine State Housing Authority, RB, M/F Housing

    

Series A, AMT, 0.60%, 11/15/26

     2,000       1,810,582  

Series A, AMT, 1.85%, 11/15/36

     2,750       2,034,266  

Maine State Housing Authority, RB, S/F Housing

    

Series B, 3.75%, 11/15/38

     6,075       6,078,882  

Series H, 3.55%, 11/15/37

     1,035       976,879  

Series A, AMT, 3.00%, 11/15/44

     2,500       1,841,117  
   

 

 

  
      21,687,923  

Maryland — 2.0%

    

Anne Arundel County Consolidated Special Taxing District, ST, 5.25%, 07/01/44

     1,220       1,201,412  

County of Anne Arundel Maryland, GO

    

5.00%, 10/01/38

     5,315       6,062,359  

5.00%, 10/01/39

     6,615       7,528,677  

County of Howard Maryland, TA, 6.10%, 02/15/44

     1,170       1,176,633  

County of Montgomery Maryland, RB, Series 2016, 5.00%, 12/01/45

     10,000       10,223,410  

Maryland Community Development Administration, Refunding RB, S/F Housing

    

Series A, 2.50%, 09/01/40

     5,000       3,753,975  

Series A, 2.60%, 03/01/42

     3,490       2,589,939  

Maryland Health & Higher Educational Facilities Authority, RB, Series A, 7.00%, 03/01/55(b)

     10,405       10,720,074  

Maryland Stadium Authority, RB, Series A, 5.00%, 05/01/47

     6,590       6,872,876  
Security  

Par

(000)

     Value  

Maryland (continued)

    

State of Maryland Department of Transportation, ARB

    

Class B, AMT, 5.00%, 08/01/31

   $ 1,250     $ 1,359,081  

Class B, AMT, 5.00%, 08/01/34

     1,105       1,189,958  

Class B, AMT, 5.00%, 08/01/35

     1,115       1,190,529  

Class B, AMT, 4.00%, 08/01/37

     1,500       1,441,491  

Class B, AMT, 4.00%, 08/01/38

     1,500       1,428,925  

Class B, AMT, 4.00%, 08/01/39

     1,840       1,745,120  

Class B, AMT, 4.00%, 08/01/40

     1,600       1,494,062  

State of Maryland, GO

    

5.00%, 03/15/31

     18,695       21,658,270  

5.00%, 03/15/36

     11,205       13,107,878  

State of Massachusetts Department of Transportation, ARB, Series A, AMT, 3.00%, 10/01/33

     5,000       4,968,400  

Washington Suburban Sanitary Commission, RB, (GTD), 3.00%, 06/01/35

     4,295       4,072,412  
   

 

 

  
         103,785,481  

Massachusetts — 1.8%

    

City of Boston Massachusetts, GO

    

5.00%, 11/01/38

              14,220       16,476,885  

5.00%, 11/01/39

     3,500       4,042,934  

5.00%, 11/01/40

     5,340       6,145,624  

Commonwealth of Massachusetts Transportation Fund Revenue, RB, 5.00%, 06/01/36

     6,845       7,421,917  

Commonwealth of Massachusetts, GO, Series E, 5.00%, 11/01/52

     10,000       10,850,360  

Commonwealth of Massachusetts, RB, Series A, 3.88%, 01/15/31

     8,670       8,393,904  

Massachusetts Development Finance Agency, RB

    

5.00%, 10/01/38

     5,000       4,873,080  

5.00%, 10/01/43

     5,000       4,721,015  

Series J2, 5.00%, 07/01/43

     5,000       5,180,285  

Massachusetts Development Finance Agency, Refunding RB

    

4.00%, 10/01/32(b)

     1,310       1,181,286  

4.13%, 10/01/42(b)

     4,225       3,391,936  

Series A, 5.00%, 10/15/27

     5,000       5,460,515  

Massachusetts Educational Financing Authority, RB, Series A, 2.46%, 07/01/30

     5,000       4,221,060  

Massachusetts Water Resources Authority, Refunding RB

    

5.00%, 08/01/38

     375       425,232  

5.00%, 08/01/40

     500       562,026  

5.25%, 08/01/48

     1,500       1,673,346  

Series C, 2.39%, 08/01/33

     9,380       7,727,385  
   

 

 

  
      92,748,790  

Michigan — 2.4%

    

Grand Traverse County Hospital Finance Authority, Refunding RB

    

5.00%, 07/01/30

     1,710       1,917,602  

5.00%, 07/01/31

     2,700       3,068,469  

Michigan Finance Authority, RB

    

4.00%, 02/15/47

     10,000       9,330,990  

4.00%, 02/15/44

     10,000       9,445,440  

Series A, 6.50%, 06/01/57(b)

     4,020       3,728,389  

Series S, 5.00%, 11/01/44

     5,000       5,085,605  

Michigan Finance Authority, Refunding RB

    

5.00%, 06/01/26(d)

     145       153,091  

5.00%, 11/15/37

     5,000       5,118,600  
 

 

 

46  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

Michigan (continued)

    

Michigan Finance Authority, Refunding

    

RB (continued)

    

5.00%, 12/01/45

   $ 9,855     $      10,106,825  

4.00%, 12/01/46

              10,000       9,579,450  

Series B, 5.00%, 07/01/44

     5,000       4,917,290  

Michigan State Housing Development Authority, RB, M/F Housing

    

Series A, AMT, 3.80%, 10/01/38

     10,000       9,321,430  

Series A, AMT, 4.15%, 10/01/53

     9,230       8,105,140  

Michigan State University, RB, Series B, (AMBAC), 4.20%, 02/15/37(a)

     5,000       4,993,920  

State of Michigan Trunk Line Revenue, RB

    

4.00%, 11/15/41

     22,330       22,220,494  

4.00%, 11/15/44

     10,000       9,784,800  

State of Michigan, Refunding RB, 5.00%, 03/15/27

     5,000       5,337,445  
   

 

 

  
      122,214,980  

Minnesota — 0.5%

    

City of Minneapolis Minneapolis, RB

    

4.00%, 11/15/36

     3,500       3,489,843  

4.00%, 11/15/38

     3,750       3,639,866  

4.00%, 11/15/39

     3,250       3,120,972  

City of Minneapolis Minneapolis, RB, M/F Housing, (FNMA COLL), 2.35%, 02/01/38

     6,564       5,058,628  

Minnesota Housing Finance Agency, RB, S/F Housing

    

Series B, (FHLMC, FNMA, GNMA), 2.40%, 01/01/35

     1,215       1,083,095  

Series B, (FHLMC, FNMA, GNMA), 2.63%, 01/01/40

     4,845       4,091,360  

Series E, (FHLMC, FNMA, GNMA), 1.85%, 01/01/29

     725       675,190  

Series E, (FHLMC, FNMA, GNMA), 1.90%, 07/01/29

     735       690,935  

Series E, (FHLMC, FNMA, GNMA), 1.95%, 01/01/30

     1,425       1,335,843  

Series E, (FHLMC, FNMA, GNMA), 2.05%, 01/01/31

     1,445       1,303,576  

Minnesota Housing Finance Agency, Refunding RB, S/F Housing, Series B, AMT, (FHLMC, FNMA, GNMA), 3.10%, 07/01/35

     600       560,369  
   

 

 

  
      25,049,677  

Mississippi — 0.2%

    

Mississippi Business Finance Corp., Refunding RB, 2.38%, 06/01/44

     12,460       7,675,073  

Mississippi Home Corp., RB, S/F Housing, Series A, AMT, (FHLMC, FNMA, GNMA), 2.13%, 12/01/44

     1,000       683,181  
   

 

 

  
      8,358,254  

Missouri — 1.9%

    

City of St Louis Missouri Airport Revenue, ARB, Series C, (AGM), 5.00%, 07/01/42

     5,000       5,193,690  

Health & Educational Facilities Authority of the State of Missouri, Refunding RB, Series A, 5.00%, 07/01/31

     5,000       5,670,600  

Kansas City Industrial Development Authority, ARB

    

Series A, AMT, 5.00%, 03/01/34

     5,000       5,168,195  

Series A, AMT, 5.00%, 03/01/35

     5,000       5,153,585  

Series A, AMT, 5.00%, 03/01/36

     5,000       5,136,075  

Series A, AMT, 5.00%, 03/01/39

     5,000       5,112,340  

Series B, AMT, 5.00%, 03/01/39

     5,000       5,232,585  
Security  

Par

(000)

     Value  

Missouri (continued)

    

Kansas City Industrial Development Authority, RB

    

Series A, 10.00%, 11/15/37

   $            2,735     $        2,415,410  

Series C, 7.50%, 11/15/46

     1,701       1,335,014  

Kansas City Industrial Development Authority, Refunding RB

    

Class B, 5.00%, 11/15/46

     8,059       6,077,605  

Class D, 2.00%, 11/15/46

     3,597       158,352  

Metropolitan St Louis Sewer District, Refunding RB

    

5.00%, 05/01/35

     4,725       5,479,119  

Series A, 5.00%, 05/01/47

     10,000       10,454,040  

Series B, 5.00%, 05/01/45

     6,785       7,004,196  

Missouri Housing Development Commission, RB, S/F Housing, Series A, (FHLMC, FNMA, GNMA), 2.55%, 11/01/40

     1,505       1,181,905  

Missouri State Environmental Improvement & Energy Resources Authority, Refunding RB, Series C, 2.75%, 09/01/33

     25,000       23,661,400  

St Louis Land Clearance for Redevelopment

    

Authority, Refunding RB, 3.88%, 10/01/35

     2,280       1,910,189  
   

 

 

  
      96,344,300  

Nevada — 0.1%

    

City of Las Vegas Nevada Special Improvement District No. 607, Refunding SAB

    

5.00%, 06/01/23

     205       205,000  

5.00%, 06/01/24

     35       35,022  

City of North Las Vegas Nevada, GO, BAB, 6.57%, 06/01/40

     5,175       5,596,737  

State of Nevada Department of Business & Industry, RB(b)

    

Series A, 4.50%, 12/15/29

     250       239,240  

Series A, 5.00%, 12/15/38

     965       893,324  
   

 

 

  
      6,969,323  

New Hampshire — 0.3%

    

National Finance Authority, RB, Series 2020-1, Class A, 4.13%, 01/20/34

     3,804       3,654,218  

New Hampshire Business Finance Authority, Refunding RB, 3.30%, 04/01/32

     12,880       10,136,199  
   

 

 

  
      13,790,417  

New Jersey — 2.0%

    

Industrial Pollution Control Financing Authority of Gloucester County, Refunding RB, Series A, AMT, 5.00%, 12/01/24(c)

     480       485,048  

New Jersey Economic Development Authority, RB, Series B, 5.50%, 11/01/26(b)

     265       249,950  

New Jersey Economic Development Authority, Refunding RB

    

5.00%, 03/01/28

     4,725       5,047,056  

AMT, 1.10%, 11/01/29(a)

     19,170       16,396,369  

Series A, AMT, 2.20%, 10/01/39(a)

     25,830       22,027,101  

New Jersey Health Care Facilities Financing

    

Authority, RB

    

4.00%, 07/01/35

     3,885       3,984,207  

4.00%, 07/01/36

     4,000       4,046,520  

4.00%, 07/01/41

     5,725       5,580,175  

4.00%, 07/01/51

     10,000       9,163,490  

New Jersey Health Care Facilities Financing

    

Authority, Refunding RB

    

Series A, 4.00%, 07/01/35

     5,000       5,052,000  

Series A, 5.00%, 07/01/39

     5,000       5,203,420  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   47

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  

New Jersey (continued)

    

New Jersey Health Care Facilities Financing Authority, Refunding RB (continued)

    

Series A, 4.00%, 07/01/43

   $          10,000     $ 9,604,590  

New Jersey Turnpike Authority, Refunding RB

    

Series B, 4.00%, 01/01/37

     7,275       7,343,036  

Series D, 5.00%, 01/01/28

     10,000       10,511,060  
   

 

 

  
         104,694,022  

New Mexico — 0.2%

    

New Mexico Mortgage Finance Authority, RB, S/F Housing, Series A, AMT, (FHLMC, FNMA, GNMA), 2.70%, 07/01/40

     2,380       2,112,079  

State of New Mexico Severance Tax Permanent Fund, RB, Series B, 5.00%, 07/01/29

     5,000       5,588,415  

Winrock Town Center Tax Increment Development District No. 1, Refunding TA(b)

    

Senior Lien, 3.75%, 05/01/28

     445       423,693  

Senior Lien, 4.00%, 05/01/33

     1,035       898,744  

Senior Lien, 4.25%, 05/01/40

     1,750       1,450,893  
   

 

 

  
      10,473,824  

New York — 7.4%

    

Metropolitan Transportation Authority, RB, Series A, 5.00%, 11/15/42

     10,000       10,429,780  

Nassau County Interim Finance Authority, Refunding RB, Series B, 1.28%, 11/15/28

     11,250       9,548,561  

New York City Housing Development Corp., RB, M/F Housing

    

Series C-1, 4.00%, 11/01/53

     9,245       7,864,342  

Series G-1, 3.90%, 05/01/45

     5,000       4,394,620  

Series I, 2.25%, 11/01/36

     3,240       2,543,867  

Series I, 2.65%, 11/01/46

     7,135       5,205,603  

Series I, 2.70%, 11/01/51

     8,285       5,449,078  

Series I-1, 2.10%, 11/01/35

     2,915       2,311,872  

Series I-1, 2.55%, 11/01/45

     18,970       13,008,886  

Series I-1, 2.65%, 11/01/50

     5,000       3,281,850  

Series I-1, 2.70%, 11/01/55

     5,000       3,176,570  

Series I-1, 2.80%, 11/01/60

     5,000       3,097,675  

Series J, 3.00%, 11/01/44

     8,090       6,150,617  

New York City Housing Development Corp., Refunding RB, M/F Housing, Series C, 2.60%, 11/01/56

     7,210       4,422,708  

New York City Municipal Water Finance Authority, RB, Series AA-1, 5.25%, 06/15/52

     48,000       53,412,480  

New York City Municipal Water Finance Authority, Refunding RB, Series BB-1, 4.00%, 06/15/45

     5,000       4,923,415  

New York City Transitional Finance Authority Future Tax Secured Revenue, RB

    

Series C-3, 3.50%, 11/01/32

     10,000       9,047,430  

Class C-1, Subordinate, 4.00%, 02/01/40

     5,000       4,921,270  

Sub-Series C-1, Subordinate, 4.00%, 05/01/40

     6,835       6,703,249  

New York State Dormitory Authority, RB, Series A, 5.00%, 03/15/45

     10,000       10,558,860  

New York State Dormitory Authority, Refunding RB

    

Series A, 5.00%, 03/15/31

     5,000       5,747,170  

Series A, 4.00%, 03/15/40

     19,200       18,979,258  

Series A, 4.00%, 03/15/42

     5,780       5,656,158  

Series A, 4.00%, 03/15/43

     13,580       13,232,868  

Series B, 5.75%, 07/01/24(d)

     990       993,002  

Series D, 4.00%, 02/15/47

     6,055       5,744,718  
Security  

Par

(000)

     Value  

New York (continued)

    

New York State Dormitory Authority, Refunding RB (continued)

    

Series E, 5.00%, 02/15/25(d)

   $ 10     $ 10,295  

New York State Housing Finance Agency, RB, M/F Housing

    

Series H, (FNMA SONYMA), 2.25%, 11/01/29

     275       258,175  

Series H, (FNMA SONYMA), 2.35%, 11/01/30

     250       233,218  

Series H, (FNMA SONYMA), 2.40%, 11/01/31

     250       231,269  

Series I, (FNMA SONYMA), 2.40%, 05/01/31

     280       260,441  

Series I, (FNMA SONYMA), 3.15%, 11/01/44

     3,275              2,510,530  

Series K, (FHLMC, FNMA, GNMA, SONYMA),

    

3.00%, 11/01/32

                1,500       1,419,555  

Series M, (FHLMC, FNMA, GNMA, SONYMA),

    

3.50%, 11/01/37

     415       369,123  

New York State Thruway Authority, Refunding RB

    

Series A, 5.00%, 03/15/30

     5,000       5,659,135  

Series A, 4.00%, 03/15/42

     2,500       2,475,142  

Series A-1, 4.00%, 03/15/40

     5,780       5,776,809  

New York State Urban Development Corp., RB

    

2.13%, 03/15/32

     500       406,875  

Series A, 4.00%, 03/15/38

     7,685       7,685,784  

New York State Urban Development Corp.,

    

Refunding RB

    

5.00%, 09/15/28

     5,000       5,511,635  

5.00%, 09/15/29

     5,000       5,610,450  

5.00%, 09/15/30

     5,000       5,705,265  

New York Transportation Development Corp., ARB

    

AMT, 5.00%, 01/01/26

     5,000       5,051,710  

AMT, 5.00%, 01/01/28

     5,000       5,137,095  

AMT, 5.00%, 01/01/29

     10,000       10,257,240  

AMT, 5.00%, 01/01/30

     10,000       10,272,880  

AMT, 5.00%, 01/01/34

     15,500       15,884,617  

Series A, AMT, 5.00%, 07/01/34

     5,000       5,026,060  

New York Transportation Development Corp., Refunding RB

    

5.00%, 12/01/26

     1,450       1,520,724  

5.00%, 12/01/27

     1,500       1,602,133  

5.00%, 12/01/28

     1,300       1,416,845  

Port Authority of New York & New Jersey, Refunding ARB

    

5.00%, 12/01/30

     9,920       9,981,811  

Series 222, (BAM-TCRS), 4.00%, 07/15/39

     5,900       5,949,908  

State of New York Mortgage Agency, RB, S/F Housing

    

Series 227, 2.30%, 10/01/40

     7,000       5,089,476  

Series 227, 2.50%, 10/01/47

     12,730       9,450,790  

Series 226, AMT, 1.80%, 04/01/28

     1,000       886,734  

Triborough Bridge & Tunnel Authority Sales Tax Revenue, RB

    

5.00%, 05/15/41

     1,500       1,663,530  

Series A, 5.00%, 05/15/42

     1,700       1,875,622  

Triborough Bridge & Tunnel Authority, RB, Series A, 5.00%, 11/15/56

     11,420       12,124,511  

Triborough Bridge & Tunnel Authority, Refunding RB, Series A-1, 5.00%, 05/15/51

     9,485       10,131,166  
   

 

 

  
      378,252,460  
 

 

 

48  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
North Carolina — 2.0%            

City of Charlotte North Carolina Airport Revenue, ARB

    

Series A, 5.00%, 07/01/42

   $ 10,000     $ 10,484,360  

Series A, 5.00%, 07/01/47

     10,000       10,385,890  

City of Charlotte North Carolina Airport Revenue, Refunding ARB

    

5.00%, 07/01/49

     5,000       5,252,555  

Series A, 4.00%, 07/01/35

     3,100       3,256,491  

Series A, 4.00%, 07/01/36

     3,375       3,502,919  

Series A, 4.00%, 07/01/40

     4,500       4,566,128  

Series B, AMT, 4.00%, 07/01/51

     2,500       2,233,703  

City of Charlotte North Carolina Water & Sewer System Revenue, Refunding RB, Series A, 4.00%, 07/01/52

     5,000       4,803,805  

County of Mecklenburg North Carolina, GO

    

5.00%, 03/01/30

     5,745       6,441,914  

5.00%, 09/01/30

     5,000       5,763,595  

County of Union North Carolina, GO

    

5.00%, 09/01/39

     6,540       7,510,968  

5.00%, 09/01/40

     6,720       7,691,638  

North Carolina Housing Finance Agency, RB, S/F Housing

    

(FHLMC, FNMA, GNMA), 3.85%, 07/01/38

     4,890       4,647,568  

Series 43, (FHLMC, FNMA, GNMA), 2.63%, 01/01/35

     2,765       2,367,025  

Series 43, (FHLMC, FNMA, GNMA), 2.80%, 01/01/40

     4,735       3,913,047  

Series 44, 1.75%, 01/01/26

     910       864,869  

Series 44, 1.80%, 07/01/26

     1,175       1,108,298  

Series 44, 2.05%, 01/01/28

     1,245       1,155,011  

Series 44, 2.20%, 07/01/29

     985       897,566  

Series 44, 2.30%, 01/01/31

     1,030       894,820  

Series 44, 2.35%, 07/01/31

     910       787,037  

Series 44, 2.55%, 07/01/35

     1,140       972,984  

North Carolina Medical Care Commission, Refunding RB

    

5.25%, 01/01/24(d)

     195       197,059  

5.25%, 01/01/41

     2,275       2,132,530  

Raleigh Durham Airport Authority, Refunding RB

    

Series A, AMT, 5.00%, 05/01/34

     5,000       5,239,220  

Series A, AMT, 5.00%, 05/01/35

     5,000       5,224,415  

Town of Mooresville North Carolina, SAB, 5.38%, 03/01/40(b)

     2,100       2,106,128  
   

 

 

  
          104,401,543  
North Dakota — 0.0%            

North Dakota Housing Finance Agency, RB, S/F Housing, 3.05%, 07/01/43

     695       602,441  
   

 

 

  
Ohio — 0.8%            

Buckeye Tobacco Settlement Financing Authority, Refunding RB, Series B-2, Class 2, 5.00%, 06/01/55

         10,675       9,859,142  

City of Columbus Ohio, GO

    

5.00%, 08/15/36

     3,270       3,812,934  

5.00%, 08/15/37

     2,600       2,998,804  

5.00%, 08/15/38

     1,625       1,860,906  

5.00%, 08/15/39

     2,565       2,924,859  

Northeast Ohio Regional Sewer District, Refunding RB, 4.00%, 11/15/43

     2,475       2,375,688  
Security  

Par

(000)

     Value  
Ohio (continued)            

Ohio Air Quality Development Authority, Refunding RB, 2.10%, 10/01/28(a)

   $ 7,000     $ 6,725,019  

Ohio Housing Finance Agency, RB, S/F Housing Series A, (FHLMC, FNMA, GNMA), 2.50%, 09/01/35

     1,275       1,173,495  

Series A, (FHLMC, FNMA, GNMA), 2.75%, 09/01/40

     2,335       2,102,420  

Ohio Water Development Authority, RB, Series A, AMT, 5.00%, 06/01/29

     5,000       5,584,015  
   

 

 

  
      39,417,282  
Oklahoma — 0.3%            

Oklahoma Development Finance Authority, RB, 7.25%, 09/01/51(b)

     5,010       5,181,758  

Oklahoma Turnpike Authority, RB, Series C, 5.00%, 01/01/47

     10,000       10,360,490  
   

 

 

  
      15,542,248  
Oregon — 1.9%            

City of Portland Oregon Sewer System Revenue, Refunding RB

    

5.00%, 12/01/38

     22,675       25,803,107  

5.00%, 12/01/40

     15,130       17,100,214  

Clackamas & Washington Counties School District No. 3, GO, Series A, 0.00%, 06/15/49(e)

     1,750       509,579  

County of Multnomah Oregon, GO, Series B, 0.80%, 06/15/26

     16,870       15,147,033  

Hospital Facilities Authority of Multnomah County Oregon, Refunding RB, Series A, 5.50%, 10/01/24

     865       761,391  

Oregon Health & Science University, Refunding RB, Series A, 4.00%, 07/01/51

     9,000       8,369,055  

Oregon State Lottery, RB

    

5.00%, 04/01/38

     1,000       1,133,282  

5.00%, 04/01/39

     1,955       2,206,262  

5.00%, 04/01/40

     2,250       2,527,065  

Port of Portland Oregon Airport Revenue, ARB, Series 24B, AMT, 5.00%, 07/01/47

     5,000       5,095,520  

Salem-Keizer School District No. 24J, GO, Series A, 0.00%, 06/15/40(e)

         12,395       5,682,302  

State of Oregon Housing & Community Services Department, RB, M/F Housing, Series B, AMT, (FHLMC, FNMA, GNMA), 4.13%, 07/01/43

     165       154,354  

University of Oregon, RB, Series A, 5.00%, 04/01/48.

     10,000       10,498,150  
   

 

 

  
            94,987,314  
Pennsylvania — 2.4%            

Allegheny County Airport Authority, ARB, Series A, AMT, (AGM), 4.00%, 01/01/46

     5,000       4,559,920  

Central Bradford Progress Authority, RB, Series B, 4.00%, 12/01/51

     10,000       8,849,380  

Chester County Health and Education Facilities Authority, Refunding RB

    

Series A, 5.00%, 12/01/25

     525       514,304  

Series A, 5.25%, 12/01/45

     1,500       1,292,099  

City of Philadelphia Pennsylvania Airport Revenue, Refunding ARB

    

AMT, 5.00%, 07/01/27

     5,000       5,208,895  

AMT, 5.00%, 07/01/28

     10,350       10,892,630  

AMT, 5.00%, 07/01/51

     10,000       10,219,740  

Series B, AMT, 5.00%, 07/01/29

     5,000       5,212,490  

Series B, AMT, 5.00%, 07/01/42

     5,000       5,080,140  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   49

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Pennsylvania (continued)            

Commonwealth Financing Authority, RB, (AGM), 4.00%, 06/01/39

   $ 10,000     $ 9,617,040  

County of Lehigh Pennsylvania, Refunding RB, 5.00%, 07/01/44

     5,000       5,150,020  

Geisinger Authority, Refunding RB, 5.00%, 04/01/43(a)

     10,000       10,372,680  

Lancaster County Hospital Authority, RB, 5.00%, 11/01/51

     5,000       5,131,605  

Northampton County Industrial Development Authority, TA, 7.00%, 07/01/32

     1,595       1,596,290  

Pennsylvania Economic Development Financing Authority, RB

    

2.30%, 06/15/30

     8,000       6,871,176  

AMT, 5.00%, 12/31/38

     5,000       5,020,765  

AMT, 5.00%, 06/30/42

     5,000       4,971,845  

Pennsylvania Economic Development Financing Authority, Refunding RB

    

Series A, 5.00%, 10/15/32

     1,100       1,231,295  

Series A, 5.00%, 10/15/33

     1,150       1,282,295  

Series A, 5.00%, 10/15/34

     1,400       1,550,377  

Series A, 4.00%, 10/15/37

     1,400       1,363,764  

Series A, 4.00%, 10/15/39

     1,325       1,269,754  

Series A, 4.00%, 10/15/40

     1,200       1,144,057  

AMT, 5.50%, 11/01/44

     3,250       3,220,457  

Pennsylvania Higher Educational Facilities Authority, Refunding RB

    

Series B, 4.00%, 08/15/37

     1,000       997,389  

Series B, 4.00%, 08/15/39

     1,000       980,365  

Pennsylvania Housing Finance Agency, RB, S/F Housing

    

Series 2019-131A, 1.85%, 04/01/26

     1,550       1,486,999  

Series 2019-131A, 2.10%, 04/01/28

     1,915       1,801,253  

Pennsylvania Housing Finance Agency, Refunding RB, S/F Housing, Series 134B, AMT, 5.00%, 04/01/27

     1,500       1,590,796  

Philadelphia Authority for Industrial Development, Refunding RB, Series A, 5.00%, 09/01/35

     5,000       5,215,700  
   

 

 

  
          123,695,520  
Puerto Rico — 8.6%            

Children’s Trust Fund, RB, Series A, 0.00%, 05/15/57(e)

         307,385       19,302,241  

Commonwealth of Puerto Rico, GO

    

1.00%, 11/01/43(a)

     59,841       29,040,477  

1.00%, 11/01/51(a)

     97,281       38,791,505  

Series A, Restructured, 0.00%, 07/01/33(e)

     9,280       5,346,338  

Series A1, Restructured, 4.00%, 07/01/33

     7,211       6,590,389  

Series A1, Restructured, 4.00%, 07/01/35

     6,482       5,887,024  

Series A1, Restructured, 4.00%, 07/01/37

     8,158       6,967,229  

Series A1, Restructured, 4.00%, 07/01/41

     7,419       6,118,458  

Series A1, Restructured, 4.00%, 07/01/46

     7,867       6,282,336  

Commonwealth of Puerto Rico, RB, 1.00%, 11/01/51(a)

     2,967       949,545  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, RB, Series A, AMT, 4.00%, 07/01/42(b)

     4,135       3,480,847  

Puerto Rico Commonwealth Aqueduct & Sewer Authority, Refunding RB(b)

    

Series B, 4.00%, 07/01/42

     7,250       6,068,540  

Series C, 3.75%, 07/01/27

     43,100       41,018,098  

Puerto Rico Electric Power Authority, RB 3rd Series, 5.40%, 01/01/23(a)(h)(i)

     1,908       1,387,690  
Security  

Par

(000)

     Value  
Puerto Rico (continued)            

Puerto Rico Electric Power Authority, RB (continued)

    

Series A, 5.00%, 07/01/29(h)(i)

   $ 5,540     $ 3,963,133  

Series A, 7.00%, 07/01/33(h)(i)

     7,445       5,416,237  

Series A, 5.00%, 07/01/42(h)(i)

     23,970       17,147,347  

Series A, 7.00%, 07/01/43(h)(i)

     3,350       2,437,125  

Series A-1, 10.00%, 07/01/19

     928       674,942  

Series A-2, 10.00%, 07/01/19(h)(i)

     4,681       3,405,107  

Series A-3, 10.00%, 07/01/19(h)(i)

     6,867       4,995,884  

Series B-3, 10.00%, 07/01/19(h)(i)

     6,867       4,995,884  

Series C-1, 5.40%, 01/01/18(h)(i)

     18,867       13,725,914  

Series C-2, 5.40%, 07/01/18(h)(i)

     18,870       13,728,134  

Series C-4, 5.40%, 07/01/20(h)(i)

     1,908       1,387,690  

Series CCC, 5.25%, 07/01/26(h)(i)

     8,495       6,077,043  

Series CCC, 5.25%, 07/01/28(h)(i)

     3,120       2,231,945  

Series D-1, 7.50%, 01/01/20(h)(i)

     9,399       6,837,700  

Series D-4, 7.50%, 07/01/20

     5,100       3,710,250  

Series TT, 5.00%, 07/01/18(h)(i)

     3,620       2,589,629  

Series TT, 5.00%, 07/01/20

     1,690       1,208,970  

Series WW, 5.50%, 07/01/17(h)(i)

     4,300       3,076,078  

Series WW, 5.50%, 07/01/18(h)(i)

     6,025       4,310,086  

Series WW, 5.50%, 07/01/20

     1,000       715,367  

Series WW, 5.38%, 07/01/24(h)(i)

     4,545       3,251,343  

Series WW, 5.25%, 07/01/25

     2,300       1,645,344  

Series WW, 5.25%, 07/01/33(h)(i)

     2,725       1,949,375  

Series WW, 5.50%, 07/01/38(h)(i)

     3,980       2,847,161  

Series XX, 5.25%, 07/01/27(h)(i)

     2,630       1,881,415  

Series XX, 5.25%, 07/01/35(h)(i)

     1,310       937,131  

Series XX, 5.75%, 07/01/36(h)(i)

     1,825       1,305,545  

Series XX, 5.25%, 07/01/40(h)(i)

     35,125             25,127,266  

Series A, AMT, 6.75%, 07/01/36(h)(i)

     24,370       17,729,175  

Puerto Rico Electric Power Authority, Refunding RB

    

Series AAA, 5.25%, 07/01/22(h)(i)

     7,025       5,025,453  

Series AAA, 5.25%, 07/01/25

     5,750       4,113,360  

Series AAA, 5.25%, 07/01/28(h)(i)

     4,870       3,483,837  

Series BBB, 5.40%, 07/01/28

     9,505       6,799,563  

Series DDD, 5.00%, 07/01/19(h)(i)

     2,000       1,430,734  

Series DDD, 5.00%, 07/01/20

     1,810       1,294,814  

Series UU, 1.00%, 07/01/17(a)(h)(i)

     1,295       896,788  

Series UU, 1.00%, 07/01/18(a)(h)(i)

     1,165       806,763  

Series UU, 1.32%, 07/01/20(a)(h)(i)

     10,400       7,202,000  

Series UU, 4.17%, 07/01/31(a)(h)(i)

     12,285       8,507,362  

Series V, 5.50%, 07/01/20

     6,440       4,606,963  

Series ZZ, 5.25%, 07/01/18(h)(i)

     10,185       7,286,013  

Series ZZ, 5.25%, 07/01/19(h)(i)

     4,745       3,394,416  

Series ZZ, 5.25%, 07/01/24(h)(i)

     1,435       1,026,552  

Series ZZ, 5.25%, 07/01/25

     2,440       1,745,495  

Puerto Rico Electric Power Authority, Refunding RB, BAB, Series YY, 6.13%, 07/01/40

           13,440       9,614,532  

Puerto Rico Industrial Tourist Educational Medical & Envirml Ctl Facs Fing Authority, Refunding RB

    

5.00%, 07/01/27

     450       473,346  

5.00%, 07/01/28

     400       426,596  

5.00%, 07/01/29

     470       505,941  

5.00%, 07/01/30

     600       651,332  

5.00%, 07/01/31

     500       547,069  

5.00%, 07/01/32

     500       548,855  

5.00%, 07/01/33

     500       547,265  
 

 

 

50  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Puerto Rico (continued)            

Puerto Rico Sales Tax Financing Corp. Sales Tax Revenue, RB

    

Series A-2, Convertible, Restructured, 4.33%, 07/01/40

   $ 4,554     $ 4,203,351  

Series A-2, Restructured, 4.33%, 07/01/40

     26,906       24,864,830  

Series B1, Restructured, 0.00%, 07/01/46(e)

         18,521       4,816,405  
   

 

 

  
          441,358,572  
Rhode Island — 0.2%            

Rhode Island Housing & Mortgage Finance Corp., RB, S/F Housing

    

2.50%, 04/01/45

     10,000       6,958,500  

Series 71, (GNMA COLL), 2.75%, 10/01/34

     3,965       3,493,906  
   

 

 

  
      10,452,406  
South Carolina — 2.5%            

City of Charleston South Carolina Waterworks & Sewer System Revenue, RB, 5.00%, 01/01/52

     19,000       20,848,244  

City of Columbia South Carolina Waterworks & Sewer System Revenue, RB, 5.00%, 02/01/47

     5,360       5,870,299  

County of Dorchester South Carolina, SAB(b)

    

5.88%, 10/01/40

     2,310       2,340,903  

6.00%, 10/01/51

     6,240       6,268,124  

Lexington County Health Services District, Inc., RB, 5.00%, 11/01/41

     10,000       10,116,460  

South Carolina Jobs-Economic Development Authority, RB, 7.50%, 08/15/62(b)

     6,915       6,341,691  

South Carolina Jobs-Economic Development Authority, Refunding RB

    

Series A, 5.00%, 05/01/38

     5,000       5,115,760  

Series A, 5.00%, 05/01/43

     5,000       5,062,245  

South Carolina Public Service Authority, RB

    

Series A, 5.00%, 12/01/49

     10,000       10,053,710  

Series E, 5.00%, 12/01/48

     10,000       10,027,030  

Series E, 5.50%, 12/01/53

     5,000       5,026,115  

Series F, (AGM-CR), 5.74%, 01/01/30

     5,000       5,088,170  

South Carolina Public Service Authority, Refunding RB

    

Series B, 5.00%, 12/01/41

     5,000       5,100,920  

Series C, 5.00%, 12/01/46

     10,000       10,079,150  

South Carolina State Housing Finance & Development Authority, RB, S/F Housing

    

Series A, AMT, 1.75%, 01/01/26

     1,085       1,038,820  

Series A, AMT, 1.85%, 01/01/27

     940       890,537  

Series A, AMT, 1.88%, 07/01/27

     890       839,265  

Series A, AMT, 2.40%, 07/01/32

     1,065       948,526  

Series A, AMT, 2.80%, 07/01/34

     980       877,783  

Series A, AMT, 3.00%, 07/01/39

     1,890       1,652,469  

South Carolina State Housing Finance & Development Authority, Refunding RB, S/F Housing

    

Series B, 2.25%, 07/01/30

     870       787,351  

Series B, 2.45%, 07/01/32

     875       781,509  

State of South Carolina, GO

    

Series A, 5.00%, 04/01/38

     5,000       5,655,590  

Series A, 5.00%, 04/01/39

     5,000       5,634,070  
   

 

 

  
      126,444,741  
Security  

Par

(000)

     Value  
Tennessee — 1.0%            

Metropolitan Government of Nashville & Davidson County Tennessee Water & Sewer Revenue, Refunding RB, Series A, 4.00%, 07/01/46

   $ 5,000     $ 4,737,155  

Metropolitan Nashville Airport Authority, ARB

    

Series A, Subordinate, 4.00%, 07/01/49

     5,000       4,795,095  

Series A, Subordinate, 5.00%, 07/01/49

         10,000       10,603,650  

New Memphis Arena Public Building Authority, RB

    

0.00%, 04/01/32(e)

     1,500       1,057,237  

0.00%, 04/01/33(e)

     1,600       1,079,605  

0.00%, 04/01/34(e)

     1,500       958,645  

0.00%, 04/01/35(e)

     1,500       908,565  

0.00%, 04/01/36(e)

     1,500       837,325  

0.00%, 04/01/37(e)

     1,600       850,066  

0.00%, 04/01/38(e)

     700       349,476  

0.00%, 04/01/39(e)

     750       350,294  

0.00%, 04/01/41(e)

     810       340,081  

0.00%, 04/01/42(e)

     850       339,278  

0.00%, 04/01/43(e)

     1,700       630,860  

0.00%, 04/01/44(e)

     1,800       649,487  

0.00%, 04/01/45(e)

     2,000       667,802  

0.00%, 04/01/46(e)

     1,700       534,268  

Convertiable, 4.00%, 04/01/29(j)

     625       570,302  

Convertiable, 4.00%, 04/01/30(j)

     750       704,805  

Convertiable, 4.00%, 04/01/31(j)

     650       595,787  

Tennessee Housing Development Agency, RB, S/F Housing

    

3.85%, 07/01/43

     6,105       6,009,512  

3.95%, 01/01/49

     6,080       5,949,985  

Tennessee Housing Development Agency, Refunding RB, S/F Housing

    

Series 2019-4, 2.65%, 07/01/34

     1,670       1,598,973  

Series 2019-4, 2.90%, 07/01/39

     3,760       3,618,308  
   

 

 

  
      48,736,561  
Texas — 7.2%            

Alamo Regional Mobility Authority, RB, Series A, Senior Lien, 5.00%, 06/15/51

     10,000             10,879,710  

Arlington Higher Education Finance Corp., RB(b)

    

6.25%, 08/15/24

     195       192,963  

7.50%, 04/01/28

     210       209,227  

7.88%, 11/01/62

     5,865       5,975,813  

Series A, 5.30%, 04/01/62

     4,325       3,675,852  

City of Austin Texas Airport System Revenue, ARB, Series B, AMT, 5.00%, 11/15/44

     2,970       3,075,860  

City of Dallas Texas Waterworks & Sewer System Revenue, Refunding RB, Series C, 4.00%, 10/01/37

     5,000       5,151,220  

City of Dallas Texas, Refunding GO(g)

    

5.00%, 02/15/36

     2,475       2,829,257  

5.00%, 02/15/37

     1,500       1,694,485  

5.00%, 02/15/38

     1,650       1,850,620  

5.00%, 02/15/40

     3,000       3,332,676  

City of Fort Worth Texas, GO(g)

    

5.00%, 03/01/35

     4,745       5,408,043  

5.00%, 03/01/39

     7,125       7,892,533  

City of Houston Texas Airport System Revenue, ARB

    

Series A, AMT, 6.50%, 07/15/30

     1,000       1,000,261  

Series A, AMT, 6.63%, 07/15/38

     3,000       3,000,348  

City of Houston Texas Airport System Revenue, Refunding RB, Sub-Series D, 5.00%, 07/01/38

     5,000       5,295,020  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   51

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Texas (continued)            

City of Marble Falls Texas, SAB(b)

    

3.38%, 09/01/26

   $ 230     $ 223,044  

3.88%, 09/01/31

     200       183,736  

4.13%, 09/01/41

     730       602,435  

4.38%, 09/01/51

     1,000       789,426  

City of San Antonio Texas Electric & Georgias Systems Revenue, Refunding RB(g)

    

5.25%, 02/01/42

     9,155       10,167,625  

5.25%, 02/01/43

     6,515       7,220,392  

City of Seguin Texas, GO, Series A, 5.25%, 09/01/57

     10,000       10,838,800  

Conroe Independent School District, Refunding GO, Series A, (PSF), 5.00%, 02/15/28

     5,000       5,444,675  

County of Harris Texas, Refunding RB, Series A, Senior Lien, 5.00%, 08/15/47

         10,000           10,292,430  

Dallas Independent School District, Refunding GO, Series B, (PSF), 4.00%, 08/15/29

     9,000       8,835,606  

Grand Parkway Transportation Corp., Refunding RB, 4.00%, 10/01/45

     9,285       8,773,796  

Harris County Cultural Education Facilities Finance Corp., Refunding RB, 5.00%, 10/01/28

     5,000       5,494,585  

Hidalgo County Regional Mobility Authority, RB(e)

    

Series A, 0.00%, 12/01/42

     3,000       1,015,671  

Series A, 0.00%, 12/01/43

     3,000       955,419  

Series A, 0.00%, 12/01/44

     3,000       897,051  

Series A, 0.00%, 12/01/45

     4,000       1,121,736  

Series A, 0.00%, 12/01/46

     6,000       1,546,158  

Series A, 0.00%, 12/01/47

     6,125       1,450,706  

Series A, 0.00%, 12/01/48

     7,130       1,657,162  

Series A, 0.00%, 12/01/49

     7,135       1,566,682  

Series A, 0.00%, 12/01/50

     5,145       1,079,267  

Series A, 0.00%, 12/01/52

     5,000       973,810  

Series A, 0.00%, 12/01/53

     5,000       890,685  

Series A, 0.00%, 12/01/54

     5,000       832,585  

Katy Independent School District, GO, (PSF), 5.00%, 02/15/48

     9,100       9,902,929  

Leander Independent School District, GO, Series C, (PSF), 0.00%, 08/15/24(d)(e)

     70,000       23,150,925  

Lower Colorado River Authority, Refunding RB

    

(AGM), 5.00%, 05/15/36

     2,090       2,376,583  

(AGM), 5.00%, 05/15/37

     2,000       2,245,704  

Matagorda County Navigation District No. 1, Refunding RB, 2.60%, 11/01/29

     10,000       8,955,450  

Midlothian Independent School District, GO, (PSF), 5.00%, 02/15/47

     10,000       10,383,690  

New Hope Cultural Education Facilities Finance Corp., Refunding RB

    

Series A, 6.63%, 10/01/43

     4,930       4,510,965  

Series A, 6.75%, 10/01/52

     790       702,820  

Series B2, 4.50%, 10/01/26

     2,030       1,950,599  

North Texas Municipal Water District Water System Revenue, Refunding RB, Series A, 5.00%, 09/01/29

     5,000       5,617,085  

Permanent University Fund - Texas A&M University System, Refunding RB, 5.00%, 07/01/42

     6,945       7,683,385  

Permanent University Fund - University of Texas System, Refunding RB, 5.00%, 07/01/41

     3,675       4,080,452  
Security  

Par

(000)

     Value  
Texas (continued)            

Port Authority of Houston of Harris County Texas, ARB

    

4.00%, 10/01/46

   $ 5,000     $ 4,765,650  

5.00%, 10/01/51

     10,000       10,585,280  

Port Beaumont Navigation District, Refunding RB(b)

    

Series B, 6.00%, 01/01/25

     6,415       6,047,549  

Series A, AMT, 4.00%, 01/01/50

     19,670       13,947,407  

Port of Beaumont Industrial Development Authority, RB, 4.10%, 01/01/28(b)

         27,045           21,519,517  

Sanger Independent School District, GO, (PSF), 4.00%, 08/15/52

     5,110       4,824,055  

Texas Natural Gas Securitization Finance Corp., RB, Series 2023-1, 5.10%, 04/01/35

     8,015       8,316,817  

Texas Private Activity Bond Surface Transportation Corp., Refunding RB

    

Series A, 5.00%, 12/31/30

     5,365       5,662,875  

Series A, 5.00%, 12/31/31

     5,000       5,256,575  

Series A, 5.00%, 12/31/32

     5,000       5,239,295  

Series A, 5.00%, 12/31/35

     5,000       5,217,420  

Texas Water Development Board, RB

    

5.00%, 08/01/37

     465       533,213  

5.00%, 08/01/38

     560       636,705  

5.00%, 08/01/39

     1,950       2,207,445  

5.00%, 08/01/40

     1,550       1,744,964  

5.00%, 08/01/42

     11,275       12,582,269  

4.00%, 10/15/45

     11,020       10,874,878  

Ysleta Independent School District, GO, (PSF), 5.00%, 08/15/56

     23,445       25,232,705  
   

 

 

  
      371,072,576  
Utah — 1.0%            

City of Salt Lake City Utah Airport Revenue, ARB

    

Series A, AMT, 5.00%, 07/01/29

     3,365       3,569,441  

Series A, AMT, 5.00%, 07/01/30

     7,670       8,226,980  

Series A, AMT, 5.00%, 07/01/31

     5,000       5,385,880  

Series A, AMT, 5.00%, 07/01/33

     6,110       6,548,472  

Series A, AMT, 5.00%, 07/01/51

     5,000       5,076,775  

City of Salt Lake City Utah Public Utilities Revenue, RB, 5.00%, 02/01/52

     10,000       10,744,170  

Utah Board of Higher Education, RB

    

2.55%, 06/01/38

     1,250       1,036,191  

2.63%, 06/01/39

     1,250       1,028,678  

Utah Charter School Finance Authority, RB(b)

    

5.63%, 06/15/26

     255       255,340  

5.00%, 06/15/42

     1,190       1,021,056  

5.00%, 06/15/52

     3,580       2,897,462  

5.63%, 06/15/54

     4,930       4,292,551  

5.00%, 06/15/57

     2,590       2,068,796  
   

 

 

  
      52,151,792  
Virginia — 2.1%            

Ballston Quarter Community Development Authority, TA

    

Series A, AMT, 5.38%, 03/01/36

     995       783,680  

Series A, AMT, 5.50%, 03/01/46

     5,955       4,212,037  

Cherry Hill Community Development Authority, SAB, 5.15%, 03/01/35(b)

     1,000       998,486  

Chesapeake Bay Bridge & Tunnel District, RB

    

(AGM), 5.00%, 07/01/41

     5,000       5,143,020  

5.00%, 07/01/46

     5,000       5,091,905  
 

 

 

52  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
Virginia (continued)            

Fairfax County Water Authority, Refunding RB, 5.00%, 04/01/46

   $ 10,000     $ 10,459,770  

FHLMC Multifamily VRD Certificates, RB, Series M053, Class A, 2.55%, 06/15/35

     1,041       823,841  

Hanover County Economic Development Authority, Refunding RB

    

5.00%, 07/01/38

     125       115,961  

4.00%, 07/01/47(b)

     1,960       1,451,502  

5.00%, 07/01/48

     365       313,813  

Henrico County Economic Development Authority, Refunding RB, 5.00%, 06/01/23

     420       420,000  

Loudoun County Economic Development Authority, RB, 0.00%, 07/01/49(e)

     25,115       7,354,325  

Lower Magnolia Green Community Development Authority, SAB(b)

    

5.00%, 03/01/35

     2,720       2,716,850  

5.00%, 03/01/45

     2,800       2,648,918  

Tobacco Settlement Financing Corp., Refunding RB, Series A-1, 6.71%, 06/01/46

     12,990       11,564,101  

Virginia Housing Development Authority, RB, M/F Housing

    

Series D, 3.90%, 10/01/48

     10,000       8,805,210  

Series A, AMT, 3.65%, 03/01/43

     5,000       4,427,070  

Virginia Small Business Financing Authority, RB

    

AMT, 5.00%, 12/31/49

     2,000       1,986,812  

AMT, 5.00%, 12/31/52

     3,000       2,977,329  

Virginia Small Business Financing Authority, Refunding RB

    

AMT, Senior Lien, 4.00%, 01/01/29

     175       173,014  

AMT, Senior Lien, 4.00%, 07/01/29

     2,000       1,974,964  

AMT, Senior Lien, 4.00%, 01/01/30

     3,000       2,966,376  

AMT, Senior Lien, 4.00%, 07/01/30

     2,350       2,326,131  

AMT, Senior Lien, 4.00%, 01/01/31

     2,955       2,942,893  

AMT, Senior Lien, 4.00%, 07/01/31

     3,250       3,238,384  

AMT, Senior Lien, 4.00%, 01/01/32

     2,750       2,742,781  

AMT, Senior Lien, 4.00%, 07/01/32

     2,750       2,744,258  

AMT, Senior Lien, 4.00%, 01/01/33

     1,250       1,245,185  

AMT, Senior Lien, 4.00%, 07/01/33

     1,130       1,123,036  

AMT, Senior Lien, 4.00%, 01/01/34

     1,000       989,325  

AMT, Senior Lien, 4.00%, 07/01/34

     1,000       984,283  

AMT, Senior Lien, 4.00%, 01/01/35

     1,155       1,128,970  

AMT, Senior Lien, 4.00%, 07/01/35

     1,275       1,236,847  

AMT, Senior Lien, 4.00%, 01/01/36

     2,500       2,401,995  

AMT, Senior Lien, 4.00%, 01/01/37

     1,425       1,344,728  

AMT, Senior Lien, 4.00%, 01/01/38

     1,500       1,395,342  

AMT, Senior Lien, 4.00%, 01/01/39

     1,250       1,152,365  

AMT, Senior Lien, 4.00%, 01/01/40

         1,250       1,145,354  
   

 

 

  
          105,550,861  
Washington — 2.6%            

County of King Washington, Refunding GO

    

5.00%, 12/01/33

     3,225       3,850,669  

5.00%, 12/01/34

     2,945       3,477,094  

5.00%, 12/01/35

     4,230       4,935,221  

5.00%, 12/01/36

     4,435       5,110,974  

5.00%, 12/01/37

     4,665       5,327,915  

King County Housing Authority, Refunding RB

    

(GTD), 3.50%, 05/01/38

     10,000       9,063,700  

2.75%, 01/01/40

     1,900       1,470,260  
Security  

Par

(000)

     Value  
Washington (continued)            

Mason County Public Hospital District No. 1, RB, 5.00%, 12/01/48

   $ 5,000     $ 5,089,430  

Pierce County School District No. 10 Tacoma, Refunding GO, 1.73%, 12/01/31

     4,525       3,674,196  

Port of Seattle Washington, GO, 5.00%, 01/01/42

     10,000       10,459,970  

Port of Seattle Washington, Refunding ARB, Class C, AMT, Intermediate Lien, 5.00%, 08/01/33

     5,000       5,417,120  

Seattle Housing Authority, Refunding RB, M/F Housing, 3.50%, 12/01/35

     1,500       1,387,802  

State of Washington, GO

    

5.00%, 08/01/42

     3,105       3,444,796  

5.00%, 02/01/43

     2,325       2,588,892  

Series B, 5.00%, 02/01/33

     5,000       5,173,180  

Series C, 5.00%, 02/01/47

     20,000       21,881,600  

State of Washington, Refunding GO

    

5.00%, 07/01/38

     19,740       22,382,317  

5.00%, 07/01/42

     11,035       12,346,984  

Washington Health Care Facilities Authority, Refunding RB, Series A, 5.00%, 08/01/37

     5,000       5,259,120  
   

 

 

  
      132,341,240  
Wisconsin — 1.2%            

Public Finance Authority, ARB

    

AMT, 4.00%, 07/01/41

     1,755       1,354,972  

AMT, 4.25%, 07/01/54

     3,060       2,159,644  

Public Finance Authority, RB(b)

    

6.00%, 06/15/24

     135       134,346  

Class B, 7.00%, 12/01/30

     2,000       1,913,766  

Series A, 6.25%, 10/01/31

     1,285       925,200  

Series A, 5.00%, 06/15/41

     785       682,908  

Series A, 7.00%, 11/01/46(h)(i)

     5,085       3,305,250  

Series A, 7.00%, 10/01/47

     1,285       925,200  

Series A, 5.00%, 06/15/51

     885       721,748  

Series A, 5.00%, 06/15/56

     970       778,324  

Series A-2, 5.00%, 01/01/24

     540       538,974  

Series B, 5.50%, 06/15/25

     380       379,963  

Public Finance Authority, Refunding RB

    

Series A, 5.00%, 10/01/34(b)

     2,620       2,624,739  

Series B, 6.13%, 10/01/49(b)

     8,530       7,551,379  

AMT, 4.00%, 08/01/35

     4,840       4,122,770  

Wisconsin Health & Educational Facilities Authority, Refunding RB

    

5.00%, 12/15/44

     5,000       5,041,680  

4.00%, 12/01/46

     10,000       9,378,840  

4.00%, 12/01/51

     10,000       9,106,880  

Series A, 5.00%, 11/15/35

     10,000       10,396,870  
   

 

 

  
      62,043,453  
   

 

 

  

Total Municipal Bonds — 89.6%
(Cost: $4,955,787,906)

       4,588,989,196  
   

 

 

  

Municipal Bonds Transferred to Tender Option Bond Trusts(k)

 

California — 0.6%            

California Health Facilities Financing Authority, RB Series A, 5.00%, 08/15/23(d)

     10,000       10,034,680  
 

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   53

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security  

Par

(000)

     Value  
California (continued)            

California Health Facilities Financing Authority, RB (continued)

    

Series A, 5.00%, 08/15/43

   $ 10,000     $ 10,112,901  

San Marcos Unified School District, GO, Series C, Election 2010, 5.00%, 02/15/24(d)

     10,000       10,118,330  
   

 

 

  
      30,265,911  
Florida — 0.4%            

County of Miami-Dade Florida Transit System, RB, 5.00%, 07/01/52

     10,000       10,709,100  

County of Miami-Dade Seaport Department, Refunding RB, Series A-2, (AGM), 4.00%, 10/01/49

     10,000       9,502,330  
   

 

 

  
      20,211,430  
Georgia — 0.2%            

Gainesville & Hall County Hospital Authority, Refunding RB, Series A, (GTD), 5.50%, 02/15/25(d)

     10,000       10,352,803  
   

 

 

  
Illinois — 0.2%            

Sales Tax Securitization Corp., Refunding RB, Series A, 2nd Lien, 5.00%, 01/01/33

     10,000       11,361,320  
   

 

 

  
Michigan — 0.1%            

Michigan State Housing Development Authority, RB, M/F Housing, Series A, AMT, 4.15%, 10/01/53

     9,230       8,060,711  
   

 

 

  
Missouri — 0.2%            

Health & Educational Facilities Authority of the State of Missouri, RB, 5.00%, 01/01/44

     10,000       10,054,710  
   

 

 

  
New Jersey — 0.2%            

New Jersey Health Care Facilities Financing Authority, RB, 4.00%, 07/01/51

     10,000       9,163,489  
   

 

 

  
New York — 0.2%            

New York State Thruway Authority, RB, Series C, 5.00%, 03/15/53

     10,000       10,732,629  
   

 

 

  
North Carolina — 0.4%            

City of Charlotte North Carolina Airport Revenue, Refunding ARB, Series A, 4.00%, 07/01/51

         20,000       18,996,934  
   

 

 

  
Texas — 0.4%            

Port Authority of Houston of Harris County Texas, ARB, 5.00%, 10/01/51

     10,000       10,585,283  

Tarrant County Cultural Education Facilities Finance Corp., RB, 5.00%, 11/15/51

     10,000       10,476,480  
   

 

 

  
      21,061,763  
   

 

 

  

Total Municipal Bonds Transferred to Tender Option Bond Trusts — 2.9%
(Cost: $159,541,928)

       150,261,700  
   

 

 

  

Total Long-Term Investments — 93.9%
(Cost: $5,198,371,834)

         4,807,934,416  
   

 

 

  
Security  

    

Shares

     Value  

Short-Term Securities

    
Money Market Funds — 4.9%            

BlackRock Liquidity Funds, MuniCash, Institutional Class, 3.22%(l)(m)

     249,585,583       $ 249,585,583  
   

 

 

  

Total Short-Term Securities — 4.9%
(Cost: $249,546,984)

       249,585,583  
   

 

 

  

Total Investments — 98.8%
(Cost: $5,447,918,818)

       5,057,519,999  

Other Assets Less Liabilities — 3.2%

       166,888,416  

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (2.0)%

 

     (104,355,041 ) 
   

 

 

  

Net Assets — 100.0%

       $ 5,120,053,374  
   

 

 

  

 

(a) 

Variable rate security. Interest rate resets periodically. The rate shown is the effective interest rate as of period end. Security description also includes the reference rate and spread if published and available.

(b) 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

(c) 

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

(d) 

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

(e) 

Zero-coupon bond.

(f) 

Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

(g) 

When-issued security.

(h) 

Issuer filed for bankruptcy and/or is in default.

(i) 

Non-income producing security.

(j) 

Step coupon security. Coupon rate will either increase (step-up bond) or decrease (step-down bond) at regular intervals until maturity. Interest rate shown reflects the rate currently in effect.

(k) 

Represent bonds transferred to a TOB Trust in exchange of cash and residual certificates received by the Fund. These bonds serve as collateral in a secured borrowing. See Note 4 of the Notes to Financial Statements for details.

(l) 

Affiliate of the Fund.

(m) 

Annualized 7-day yield as of period end.

 

 

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

 

 

54  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
05/31/22		      Purchases
at Cost		     Proceeds
from Sales		      Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		      Value at
05/31/23		      Shares
Held at
05/31/23		      Income      Capital Gain
Distributions
from
Underlying
Funds		  

BlackRock Liquidity Funds, MuniCash, Institutional Class

   $ 181,906,552      $ 67,821,922 (a)    $ —      $ (165,774 )    $ 22,883      $ 249,585,583        249,585,583      $ 5,943,183      $ —  
         

 

 

    

 

 

     

 

 

        

 

 

     

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

         
Description   Number of
Contracts		      Expiration
Date		      Notional
Amount (000)		      Value/
Unrealized
Appreciation
(Depreciation)		  

Short Contracts

           

10-Year U.S. Treasury Note

     3,964        09/20/23      $ 453,630      $ 1,836,040  

U.S. Long Bond

     2,603        09/20/23        334,404        (1,335,243 ) 

5-Year U.S. Treasury Note

     2,604        09/29/23        283,978        1,929,235  
          

 

 

  
           $ 2,430,032  
          

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements of Assets and Liabilities were as follows:

 

               
     Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized appreciation on futures contracts(a)

   $ —      $ —      $ —      $ —      $ 3,765,275      $ —      $ 3,765,275  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities — Derivative Financial Instruments

                    

Futures contracts

                    

Unrealized depreciation on futures contracts(a)

   $ —      $ —      $ —      $ —      $ 1,335,243      $ —      $ 1,335,243  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended May 31, 2023, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
     Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		     

Interest

Rate

Contracts

     Other
Contracts		      Total  

Net Realized Gain (Loss) from:

                   

Futures contracts

   $ —      $ —      $ —      $ —      $ 128,070,843     $ —      $ 128,070,843  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                   

Futures contracts

   $ —      $ —      $ —      $ —      $ (16,239,356 )    $ —      $ (16,239,356 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Futures contracts:

        

Average notional value of contracts — short

   $ 1,544,206,220  

 

 

S C H E D U L E   O F   I N V E S T M E N T S

   55

Schedule of Investments   (continued)

May 31, 2023

   

BlackRock Strategic Municipal Opportunities Fund

 

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
     Level 1     Level 2      Level 3      Total  

Assets

          

Investments

          

Long-Term Investments

          

Corporate Bonds

   $ —     $ 68,683,520      $ —      $ 68,683,520  

Municipal Bonds

     —       4,575,217,715        13,771,481        4,588,989,196  

Municipal Bonds Transferred to Tender Option Bond Trusts

     —       150,261,700        —        150,261,700  

Short-Term Securities

          

Money Market Funds

     249,585,583       —        —        249,585,583  
 

 

 

    

 

 

     

 

 

     

 

 

  
  $    249,585,583     $ 4,794,162,935      $      13,771,481      $ 5,057,519,999  
 

 

 

    

 

 

     

 

 

     

 

 

  

Derivative Financial Instruments(a)

          

Assets

          

Interest Rate Contracts

   $ 3,765,275     $ —      $ —      $ 3,765,275  

Liabilities

          

Interest Rate Contracts

     (1,335,243 )      —        —        (1,335,243 ) 
 

 

 

    

 

 

     

 

 

     

 

 

  
  $ 2,430,032     $ —      $ —      $ 2,430,032  
 

 

 

    

 

 

     

 

 

     

 

 

  

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, TOB Trust Certificates of $103,389,987 are categorized as Level 2 within the fair value hierarchy.

See notes to financial statements.

 

 

56  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

 

Statements of Assets and Liabilities

May 31, 2023

 

    

BlackRock

California

Municipal

Opportunities Fund

    

BlackRock

New Jersey

Municipal

Bond Fund

    

BlackRock

Pennsylvania

Municipal

Bond Fund

    

BlackRock

Impact

Municipal

Fund

  

ASSETS

        

Investments, at value — unaffiliated(a)

   $ 2,297,019,465     $ 279,999,808     $ 362,395,064     $ 43,879,746  

Investments, at value — affiliated(b)

     295,902,305       26,896,116       20,846,287       3,006,316  

Cash pledged for futures contracts

     10,942,000       —       —       235,000  

Receivables:

        

Investments sold

     14,042,706       310,862       210,000       15,000  

Capital shares sold

     2,575,688       163,036       839,776       1,772  

Dividends — affiliated

     564,048       61,903       49,822       6,611  

Interest — unaffiliated

     24,447,510       4,017,074       5,193,098       570,558  

From the Manager

     —       —       —       36,257  

Prepaid expenses

     69,505       62,165       69,979       45,961  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total assets

     2,645,563,227       311,510,964       389,604,026       47,797,221  
 

 

 

    

 

 

    

 

 

    

 

 

  

ACCRUED LIABILITIES

        

Bank overdraft

     7,750       —       —       —  

Payables:

        

Investments purchased

     19,860,600       7,555,573       3,715,079       —  

Accounting services fees

     89,721       22,034       25,987       7,073  

Capital shares redeemed

     3,943,304       882,261       1,078,647       155  

Custodian fees

     10,046       1,631       1,887       579  

Income dividend distributions

     1,346,859       253,156       420,839       135,266  

Interest expense and fees

     819,810       —       —       —  

Investment advisory fees

     1,382,586       185,619       256,056       —  

Trustees’ and Officer’s fees

     8,186       1,195       1,485       306  

Other accrued expenses

     66,998       14,853       16,638       8,422  

Professional fees

     88,616       22,255       21,018       22,140  

Service and distribution fees

     204,654       35,292       34,788       20  

Transfer agent fees

     206,994       31,165       21,379       151  

Variation margin on futures contracts

     2,189,798       —       —       43,844  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total accrued liabilities

     30,225,922       9,005,034       5,593,803       217,956  
 

 

 

    

 

 

    

 

 

    

 

 

  

OTHER LIABILITIES

        

TOB Trust Certificates

     83,194,978       —       —       —  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total liabilities

     113,420,900       9,005,034       5,593,803       217,956  
 

 

 

    

 

 

    

 

 

    

 

 

  

NET ASSETS

   $ 2,532,142,327     $ 302,505,930     $ 384,010,223     $ 47,579,265  
 

 

 

    

 

 

    

 

 

    

 

 

  

NET ASSETS CONSIST OF

        

Paid-in capital

   $ 2,800,739,339     $ 325,569,439     $ 447,359,293     $ 49,961,209  

Accumulated loss

     (268,597,012 )      (23,063,509 )      (63,349,070 )      (2,381,944 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

NET ASSETS

   $ 2,532,142,327     $ 302,505,930     $ 384,010,223     $ 47,579,265  
 

 

 

    

 

 

    

 

 

    

 

 

  

(a) Investments, at cost — unaffiliated

   $ 2,392,054,699     $ 283,558,114     $ 379,708,032     $ 45,499,083  

(b) Investments, at cost — affiliated

   $ 295,883,072     $ 26,893,393     $ 20,843,428     $ 3,005,961  

 

 

F I N A N C I A L   S T A T E M E N T S

   57

 

Statements of Assets and Liabilities (continued)

May 31, 2023

 

   

BlackRock

California

Municipal

Opportunities Fund

     

BlackRock

New Jersey

Municipal

Bond Fund

     

BlackRock

Pennsylvania

Municipal

Bond Fund

     

BlackRock

Impact

Municipal

Fund

  

 

  
NET ASSET VALUE                           
Institutional                           

Net assets

   $ 1,646,281,545      $ 168,720,827      $ 240,594,730      $ 122,193  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     140,274,049        16,616,047        24,825,434        12,860  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 11.74      $ 10.15      $ 9.69      $ 9.50  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited        Unlimited        500 million  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.10      $ 0.10      $ 0.10      $ 0.10  
 

 

 

     

 

 

     

 

 

     

 

 

  
Service                           

Net assets

     N/A      $ 6,622,093      $ 1,067,173        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     N/A        652,170        109,993        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

     N/A      $ 10.15      $ 9.70        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     N/A        Unlimited        Unlimited        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

     N/A      $ 0.10      $ 0.10        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  
Investor A                           

Net assets

   $ 661,274,251      $ 99,045,682      $ 117,457,051      $ 96,775  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     56,393,383        9,746,613        12,106,131        10,186  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 11.73      $ 10.16      $ 9.70      $ 9.50  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited        Unlimited        300 million  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.10      $ 0.10      $ 0.10      $ 0.10  
 

 

 

     

 

 

     

 

 

     

 

 

  
Investor A1                           

Net assets

   $ 78,960,299      $ 12,898,917      $ 6,354,376        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     6,727,831        1,268,833        654,649        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 11.74      $ 10.17      $ 9.71        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited        Unlimited        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.10      $ 0.10      $ 0.10        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  
Investor C                           

Net assets

   $ 62,713,444      $ 12,896,230      $ 10,190,006        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     5,343,079        1,270,427        1,050,507        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 11.74      $ 10.15      $ 9.70        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited        Unlimited        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.10      $ 0.10      $ 0.10        N/A  
 

 

 

     

 

 

     

 

 

     

 

 

  
Class K                           

Net assets

   $ 82,912,788      $ 2,322,181      $ 8,346,887      $ 47,360,297  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     7,062,134        228,779        861,449        4,984,364  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 11.74      $ 10.15      $ 9.69      $ 9.50  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited        Unlimited        500 million  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.10      $ 0.10      $ 0.10      $ 0.10  
 

 

 

     

 

 

     

 

 

     

 

 

  

 

 

58  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

 

Statements of Assets and Liabilities (continued)

May 31, 2023

 

   

BlackRock

Strategic

Municipal

Opportunities Fund

  

 

  

ASSETS

  

Investments, at value — unaffiliated(a)

   $ 4,807,934,416  

Investments, at value — affiliated(b)

     249,585,583  

Cash

     9,472,866  

Cash pledged for futures contracts

     24,522,000  

Receivables:

  

Investments sold

     141,782,088  

Capital shares sold

     8,808,040  

Dividends — affiliated

     805,950  

Interest — unaffiliated

     54,216,152  

Prepaid expenses

     218,921  
 

 

 

  

Total assets

     5,297,346,016  
 

 

 

  

ACCRUED LIABILITIES

  

Payables:

  

Investments purchased

     44,275,050  

Accounting services fees

     165,653  

Capital shares redeemed

     15,175,891  

Custodian fees

     23,152  

Income dividend distributions

     2,893,767  

Interest expense and fees

     965,054  

Investment advisory fees

     4,035,799  

Trustees’ and Officer’s fees

     105,420  

Other accrued expenses

     238,066  

Professional fees

     294,412  

Service and distribution fees

     283,998  

Transfer agent fees

     561,602  

Variation margin on futures contracts

     4,884,791  
 

 

 

  

Total accrued liabilities

     73,902,655  
 

 

 

  

OTHER LIABILITIES

  

TOB Trust Certificates

     103,389,987  
 

 

 

  

Total liabilities

     177,292,642  
 

 

 

  

NET ASSETS

   $ 5,120,053,374  
 

 

 

  

NET ASSETS CONSIST OF

  

Paid-in capital

   $ 6,369,087,511  

Accumulated loss

     (1,249,034,137 ) 
 

 

 

  

NET ASSETS

   $ 5,120,053,374  
 

 

 

  

(a) Investments, at cost — unaffiliated

   $ 5,198,371,834  

(b) Investments, at cost — affiliated

   $ 249,546,984  

 

 

F I N A N C I A L   S T A T E M E N T S

   59

 

Statements of Assets and Liabilities (continued)

May 31, 2023

 

   

BlackRock

Strategic

Municipal

Opportunities Fund

  

 

  

NET ASSET VALUE

  
Institutional      

Net assets

   $ 3,992,499,303  
 

 

 

  

Shares outstanding

     385,516,201  
 

 

 

  

Net asset value

   $ 10.36  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.10  
 

 

 

  
Investor A      

Net assets

   $ 938,419,706  
 

 

 

  

Shares outstanding

     90,653,766  
 

 

 

  

Net asset value

   $ 10.35  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.10  
 

 

 

  
Investor A1      

Net assets

   $ 16,987,060  
 

 

 

  

Shares outstanding

     1,640,484  
 

 

 

  

Net asset value

   $ 10.35  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.10  
 

 

 

  
Investor C      

Net assets

   $ 78,321,722  
 

 

 

  

Shares outstanding

     7,561,972  
 

 

 

  

Net asset value

   $ 10.36  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.10  
 

 

 

  
Class K      

Net assets

   $ 93,825,583  
 

 

 

  

Shares outstanding

     9,059,252  
 

 

 

  

Net asset value

   $ 10.36  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.10  
 

 

 

  

See notes to financial statements.

 

 

60  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Statements of Operations

Year Ended May 31, 2023

 

   

BlackRock

California

Municipal

Opportunities Fund

    

BlackRock

New Jersey

Municipal

Bond Fund

    

BlackRock

Pennsylvania

Municipal

Bond Fund

    

BlackRock

Impact

Municipal

Fund

  

 

  

INVESTMENT INCOME

        

Dividends — affiliated

   $ 2,804,705     $ 348,304     $ 298,092     $ 35,283  

Interest — unaffiliated

     88,117,100       12,183,142       15,164,414       1,733,196  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total investment income

     90,921,805       12,531,446       15,462,506       1,768,479  
 

 

 

    

 

 

    

 

 

    

 

 

  

EXPENSES

        

Investment advisory

     9,700,524       1,633,540       2,196,993       213,561  

Service and distribution — class specific

     2,623,204       438,401       441,862       237  

Transfer agent — class specific

     1,378,203       240,333       475,675       369  

Professional

     561,624       96,206       102,861       87,236  

Accounting services

     266,123       65,452       77,700       20,933  

Registration

     103,488       81,603       83,922       45,217  

Custodian

     38,725       5,550       9,102       1,862  

Trustees and Officer

     38,057       5,817       7,286       1,791  

Printing and postage

     28,318       28,510       28,964       37,568  

Administration

     —       —       —       20,170  

Administration — class specific

     —       —       —       9,491  

Offering

     —       —       —       123,728  

Miscellaneous

     195,307       34,937       38,857       19,986  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses excluding interest expense

     14,933,573       2,630,349       3,463,222       582,149  

Interest expense(a)

     4,320,634       95,260       159,159       —  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses

     19,254,207       2,725,609       3,622,381       582,149  

Less:

        

Administration fees waived

     —       —       —       (15,038 ) 

Administration fees waived by the Manager — class specific

     —       —       —       (9,383 ) 

Fees waived and/or reimbursed by the Manager

     (639,680 )      (474,422 )      (474,717 )      (305,661 ) 

Transfer agent fees waived and/or reimbursed by the Manager — class specific

     (159,850 )      (88,035 )      (277,479 )      (319 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     18,454,677       2,163,152       2,870,185       251,748  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     72,467,128       10,368,294       12,592,321       1,516,731  
 

 

 

    

 

 

    

 

 

    

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

        

Net realized gain (loss) from:

        

Investments — unaffiliated

     (130,003,608 )      (11,774,656 )      (28,361,991 )      (1,295,617 ) 

Investments — affiliated

     (42,672 )      (7,075 )      (9,775 )      (219 ) 

Futures contracts

     49,000,855       2,395,657       3,498,025       657,464  

Payment by affiliate

     10,218       —       —       —  
 

 

 

    

 

 

    

 

 

    

 

 

  
    (81,035,207 )      (9,386,074 )      (24,873,741 )      (638,372 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation) on:

        

Investments — unaffiliated

     3,767,799       (1,036,702 )      1,249,659       (631,216 ) 

Investments — affiliated

     14,134       1,679       2,085       153  

Foreign currency translations

     6       —       —       —  

Futures contracts

     (6,575,837 )      (337,437 )      (556,366 )      (106,773 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (2,793,898 )      (1,372,460 )      695,378       (737,836 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net realized and unrealized loss

     (83,829,105 )      (10,758,534 )      (24,178,363 )      (1,376,208 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $ (11,361,977 )    $ (390,240 )    $ (11,586,042 )    $ 140,523  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

Related to TOB Trusts.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

   61

Statements of Operations  (continued)

Year Ended May 31, 2023

 

   

BlackRock

Strategic

Municipal

Opportunities Fund

  

 

  

INVESTMENT INCOME

  

Dividends — affiliated

   $ 5,943,183  

Interest — unaffiliated

     209,213,801  
 

 

 

  

Total investment income

     215,156,984  
 

 

 

  

EXPENSES

  

Investment advisory

     30,796,760  

Transfer agent — class specific

     4,388,097  

Service and distribution — class specific

     3,811,180  

Professional

     1,474,041  

Accounting services

     486,191  

Registration

     352,221  

Custodian

     131,679  

Trustees and Officer

     86,136  

Printing and postage

     47,920  

Miscellaneous

     569,845  
 

 

 

  

Total expenses excluding interest expense

     42,144,070  

Interest expense(a)

     10,920,941  
 

 

 

  

Total expenses

     53,065,011  

Less:

  

Fees waived and/or reimbursed by the Manager

     (3,265,438 ) 
 

 

 

  

Total expenses after fees waived and/or reimbursed

     49,799,573  
 

 

 

  

Net investment income

     165,357,411  
 

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

  

Net realized gain (loss) from:

  

Investments — unaffiliated

     (644,672,004 ) 

Investments — affiliated

     (165,774 ) 

Futures contracts

     128,070,843  

Payment by affiliate

     127,749  
 

 

 

  
    (516,639,186 ) 
 

 

 

  

Net change in unrealized appreciation (depreciation) on:

  

Investments — unaffiliated

     186,589,263  

Investments — affiliated

     22,883  

Futures contracts

     (16,239,356 ) 
 

 

 

  
    170,372,790  
 

 

 

  

Net realized and unrealized loss

     (346,266,396 ) 
 

 

 

  

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

   $ (180,908,985 ) 
 

 

 

  

 

(a)

Related to TOB Trusts.

See notes to financial statements.

 

 

62  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Statements of Changes in Net Assets

 

   

BlackRock California

Municipal Opportunities Fund

           

BlackRock New Jersey

Municipal Bond Fund

  
 

 

 

       

 

 

  
   

Year Ended

05/31/23

     

Year Ended

05/31/22

           

Year Ended

05/31/23

     

Year Ended

05/31/22

  

 

  

INCREASE (DECREASE) IN NET ASSETS

             

OPERATIONS

             

Net investment income

   $ 72,467,128      $ 61,342,269        $ 10,368,294      $ 10,079,743  

Net realized gain (loss)

     (81,035,207 )       53,633,184          (9,386,074 )       (285,012 ) 

Net change in unrealized appreciation (depreciation)

     (2,793,898 )       (329,463,624 )         (1,372,460 )       (39,851,385 ) 
 

 

 

     

 

 

       

 

 

     

 

 

  

Net decrease in net assets resulting from operations

     (11,361,977 )       (214,488,171 )         (390,240 )       (30,056,654 ) 
 

 

 

     

 

 

       

 

 

     

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

             

Institutional

     (47,287,796 )       (39,442,069 )         (5,877,639 )       (5,896,927 ) 

Service

     —        —          (214,335 )       (191,790 ) 

Investor A

     (18,938,904 )       (16,551,486 )         (3,362,616 )       (3,044,749 ) 

Investor A1

     (2,262,197 )       (1,805,179 )         (451,980 )       (422,914 ) 

Investor C

     (1,283,033 )       (920,007 )         (348,680 )       (390,028 ) 

Class K

     (2,191,985 )       (2,362,037 )         (79,862 )       (83,286 ) 
 

 

 

     

 

 

       

 

 

     

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (71,963,915 )       (61,080,778 )         (10,335,112 )       (10,029,694 ) 
 

 

 

     

 

 

       

 

 

     

 

 

  

CAPITAL SHARE TRANSACTIONS

             

Net increase (decrease) in net assets derived from capital share transactions

     (419,640,427 )       43,146,802          (31,860,802 )       (13,042,661 ) 
 

 

 

     

 

 

       

 

 

     

 

 

  

NET ASSETS

             

Total decrease in net assets

     (502,966,319 )       (232,422,147 )         (42,586,154 )       (53,129,009 ) 

Beginning of year

     3,035,108,646        3,267,530,793          345,092,084        398,221,093  
 

 

 

     

 

 

       

 

 

     

 

 

  

End of year

   $ 2,532,142,327      $ 3,035,108,646        $ 302,505,930      $ 345,092,084  
 

 

 

     

 

 

       

 

 

     

 

 

  

 

(a)

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

   63

Statements of Changes in Net Assets  (continued)

 

   

BlackRock Pennsylvania

Municipal Bond Fund

           

BlackRock Impact

Municipal Fund

  
 

 

 

       

 

 

  
   

 Year Ended

05/31/23

  

 

     

 Year Ended

05/31/22

  

 

       

 Year Ended

05/31/23

  

 

     

 Period from

03/14/22

to 05/31/22

  

(a) 

 

 

  

INCREASE (DECREASE) IN NET ASSETS

             

OPERATIONS

             

Net investment income

   $ 12,592,321      $ 14,111,556        $ 1,516,731      $ 156,034  

Net realized loss

     (24,873,741 )       (45,082 )         (638,372 )       (45,009 ) 

Net change in unrealized appreciation (depreciation)

     695,378        (60,559,813 )         (737,836 )       (925,471 ) 
 

 

 

     

 

 

       

 

 

     

 

 

  

Net increase (decrease) in net assets resulting from operations

     (11,586,042 )       (46,493,339 )         140,523        (814,446 ) 
 

 

 

     

 

 

       

 

 

     

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(b)

             

Institutional

     (8,259,921 )       (9,830,943 )         (4,088 )       (287 ) 

Service

     (30,318 )       (52,649 )         —        —  

Investor A

     (3,583,608 )       (3,560,600 )         (3,066 )       (235 ) 

Investor A1

     (212,195 )       (199,344 )         —        —  

Investor C

     (241,670 )       (266,830 )         —        —  

Class K

     (248,217 )       (191,918 )         (1,659,843 )       (147,976 ) 
 

 

 

     

 

 

       

 

 

     

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (12,575,929 )       (14,102,284 )         (1,666,997 )       (148,498 ) 
 

 

 

     

 

 

       

 

 

     

 

 

  

CAPITAL SHARE TRANSACTIONS

             

Net increase (decrease) in net assets derived from capital share transactions

     (90,981,845 )       (42,903,828 )         68,683        50,000,000  
 

 

 

     

 

 

       

 

 

     

 

 

  

NET ASSETS

             

Total increase (decrease) in net assets

     (115,143,816 )       (103,499,451 )         (1,457,791 )       49,037,056  

Beginning of year

     499,154,039        602,653,490          49,037,056        —  
 

 

 

     

 

 

       

 

 

     

 

 

  

End of year

   $ 384,010,223      $ 499,154,039        $ 47,579,265      $ 49,037,056  
 

 

 

     

 

 

       

 

 

     

 

 

  

 

(a) 

Commencement of operations.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

64  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Statements of Changes in Net Assets  (continued)

 

   

BlackRock Strategic

Municipal Opportunities Fund

  
 

 

 

  
   

Year Ended

05/31/23

         

Year Ended

05/31/22

  

 

  

INCREASE (DECREASE) IN NET ASSETS

       

OPERATIONS

       

Net investment income

   $ 165,357,411        $ 178,360,941  

Net realized gain (loss)

     (516,639,186 )         201,270,471  

Net change in unrealized appreciation (depreciation)

     170,372,790          (1,061,013,019 ) 
 

 

 

       

 

 

  

Net decrease in net assets resulting from operations

     (180,908,985 )         (681,381,607 ) 
 

 

 

       

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

       

Institutional

     (128,119,888 )         (141,257,072 ) 

Investor A

     (28,520,212 )         (31,249,214 ) 

Investor A1

     (502,679 )         (479,191 ) 

Investor C

     (1,746,021 )         (1,856,095 ) 

Class K

     (3,417,734 )         (3,522,594 ) 
 

 

 

       

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (162,306,534 )         (178,364,166 ) 
 

 

 

       

 

 

  

CAPITAL SHARE TRANSACTIONS

       

Net decrease in net assets derived from capital share transactions

     (1,921,094,259 )         (365,894,985 ) 
 

 

 

       

 

 

  

NET ASSETS

       

Total decrease in net assets

     (2,264,309,778 )         (1,225,640,758 ) 

Beginning of year

     7,384,363,152          8,610,003,910  
 

 

 

       

 

 

  

End of year

   $ 5,120,053,374        $ 7,384,363,152  
 

 

 

       

 

 

  

 

(a) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.

 

 

F I N A N C I A L   S T A T E M E N T S

   65

Financial Highlights

(For a share outstanding throughout each period)

 

         

BlackRock California Municipal Opportunities Fund

 

  
         

Institutional

 

  
          

Year Ended

05/31/23

    

Year Ended

05/31/22

    

Year Ended

05/31/21

    

Year Ended

05/31/20

    

Year Ended

05/31/19

  

Net asset value, beginning of year

      $ 12.05     $ 13.08     $ 12.21     $ 12.71     $ 12.76  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

        0.33       0.25       0.25       0.27       0.34  

Net realized and unrealized gain (loss)

        (0.31 )      (1.03 )      0.87       (0.50 )      0.19  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

        0.02       (0.78 )      1.12       (0.23 )      0.53  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions(b)

             

From net investment income

        (0.33 )      (0.25 )      (0.25 )      (0.27 )      (0.34 ) 

From net realized gain

        —       —       —       —       (0.24 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

        (0.33 )      (0.25 )      (0.25 )      (0.27 )      (0.58 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 11.74     $ 12.05     $ 13.08     $ 12.21     $ 12.71  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

             

Based on net asset value

        0.23 %(d)      (6.06 )%      9.26 %      (1.85 )%      4.28 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

             

Total expenses(f)

        0.64 %      0.49 %      0.48 %      0.57 %      0.63 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

        0.60 %      0.47 %      0.46 %      0.55 %      0.61 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

        0.44 %      0.44 %      0.43 %      0.43 %      0.44 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

        2.84 %      1.95 %      1.98 %      2.13 %      2.70 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

      $ 1,646,282     $ 1,907,899     $ 1,922,918     $ 1,865,633     $ 2,016,387  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Borrowings outstanding, end of year (000)

      $ 83,195     $ 147,795     $ 143,145     $ 148,145     $ 253,167  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

        52 %      82 %      53 %      117 %      126 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

 

           
    

Year Ended

05/31/23

     

Year Ended

05/31/22

     

Year Ended

05/31/21

     

Year Ended

05/31/20

    

Year Ended

05/31/19

  

Expense ratios

     N/A        N/A        N/A        0.56 %      0.62 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

66  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

           BlackRock California Municipal Opportunities Fund (continued)  
          

 

Investor A

  
          

Year Ended

05/31/23

    

Year Ended

05/31/22

     

Year Ended

05/31/21

     

Year Ended

05/31/20

     

Year Ended

05/31/19

  
             

Net asset value, beginning of year

     $ 12.04     $ 13.07      $ 12.19      $ 12.70      $ 12.75  
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(a)

       0.31       0.22        0.22        0.24        0.31  

Net realized and unrealized gain (loss)

       (0.32 )      (1.03 )       0.88        (0.51 )       0.19  
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

       (0.01 )      (0.81 )       1.10        (0.27 )       0.50  
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Distributions(b)

               

From net investment income

       (0.30 )      (0.22 )       (0.22 )       (0.24 )       (0.31 ) 

From net realized gain

       —       —        —        —        (0.24 ) 
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

       (0.30 )      (0.22 )       (0.22 )       (0.24 )       (0.55 ) 
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

     $ 11.73     $ 12.04      $ 13.07      $ 12.19      $ 12.70  
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(c)

               

Based on net asset value

       (0.02 )%(d)      (6.30 )%       9.09 %       (2.18 )%       4.02 % 
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(e)

               

Total expenses

       0.87 %      0.72 %       0.72 %       0.82 %(f)       0.88 %(f) 
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

       0.85 %      0.71 %       0.71 %       0.80 %       0.86 % 
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

       0.68 %      0.68 %       0.68 %       0.68 %       0.69 % 
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

       2.60 %      1.69 %       1.74 %       1.88 %       2.45 % 
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

               

Net assets, end of year (000)

     $ 661,274     $ 843,462      $ 1,025,162      $ 1,069,541      $ 941,069  
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Borrowings outstanding, end of year (000)

     $ 83,195     $ 147,795      $ 143,145      $ 148,145      $ 253,167  
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate

       52 %      82 %       53 %       117 %       126 % 
   

 

 

    

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   67

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         BlackRock California Municipal Opportunities Fund (continued)
        

 

Investor A1

         

 

Year Ended        
05/31/23        

   Year Ended    
05/31/22    		   Year Ended    
05/31/21    		   Year Ended    
05/31/20    		   Year Ended    
05/31/19    

Net asset value, beginning of year

             $ 12.05     $ 13.08     $ 12.20     $ 12.71     $ 12.76
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

           0.32       0.24       0.24       0.26       0.33

Net realized and unrealized gain (loss)

           (0.31 )       (1.03 )       0.88       (0.51 )       0.19
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

           0.01       (0.79 )       1.12       (0.25 )       0.52
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions(b)

                        

From net investment income

           (0.32 )       (0.24 )       (0.24 )       (0.26 )       (0.33 )

From net realized gain

           —       —       —       —       (0.24 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total distributions

           (0.32 )       (0.24 )       (0.24 )       (0.26 )       (0.57 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

         $ 11.74     $ 12.05     $ 13.08     $ 12.20     $ 12.71
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

           0.14 %(d)       (6.15 )%       9.25 %       (2.01 )%       4.18 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(e)

                        

Total expenses(f)

           0.72 %       0.57 %       0.57 %       0.65 %       0.72 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

           0.69 %       0.56 %       0.56 %       0.63 %       0.70 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

           0.53 %       0.53 %       0.53 %       0.51 %       0.53 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           2.75 %       1.85 %       1.89 %       2.08 %       2.61 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $ 78,960     $ 88,442     $ 103,726     $ 103,229     $ 112,554
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ 83,195     $ 147,795     $ 143,145     $ 148,145     $ 253,167
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           52 %       82 %       53 %       117 %       126 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:

 

    

 

  Year Ended
05/31/23

        Year Ended
05/31/22		        Year Ended
05/31/21		        Year Ended
05/31/20		       Year Ended
05/31/19		  

Expense ratios

     N/A        N/A        N/A        0.65 %      0.71 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

68  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         BlackRock California Municipal Opportunities Fund (continued)
        

 

Investor C

         

 

Year Ended        
05/31/23        

   Year Ended    
05/31/22    		   Year Ended    
05/31/21    		   Year Ended        
05/31/20        		   Year Ended        
05/31/19        

Net asset value, beginning of year

         $ 12.05     $ 13.08     $ 12.21     $ 12.71     $ 12.76
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

           0.22       0.12       0.12       0.14       0.21

Net realized and unrealized gain (loss)

           (0.31 )       (1.03 )       0.87       (0.50 )       0.19
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

           (0.09 )       (0.91 )       0.99       (0.36 )       0.40
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions(b)

                        

From net investment income

           (0.22 )       (0.12 )       (0.12 )       (0.14 )       (0.21 )

From net realized gain

           —       —       —       —       (0.24 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total distributions

           (0.22 )       (0.12 )       (0.12 )       (0.14 )       (0.45 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

         $ 11.74     $ 12.05     $ 13.08     $ 12.21     $ 12.71
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

           (0.77 )%(d)       (7.00 )%       8.17 %       (2.82 )%       3.24 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(e)

                        

Total expenses

           1.63 %       1.48 %       1.48 %       1.57 %(f)       1.63 %(f)
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

           1.60 %       1.47 %       1.47 %       1.56 %       1.61 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

           1.44 %       1.44 %       1.44 %       1.43 %       1.44 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           1.84 %       0.93 %       0.99 %       1.14 %       1.70 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $  62,713     $ 84,141     $  107,235     $  144,972     $  150,543
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ 83,195     $ 147,795     $ 143,145     $ 148,145     $ 253,167
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           52 %       82 %       53 %       117 %       126 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   69

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         BlackRock California Municipal Opportunities Fund (continued)
        

 

Class K

         

 

Year Ended            

05/31/23            

  

Year Ended          

05/31/22          

  

Year Ended    

05/31/21    

  

Year Ended      

05/31/20      

  

Year Ended   

05/31/19   

Net asset value, beginning of year

         $ 12.05     $ 13.08     $ 12.21     $ 12.71     $ 12.76
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

               0.34       0.26       0.26       0.28       0.34

Net realized and unrealized gain (loss)

           (0.31 )       (1.04 )       0.87       (0.50 )       0.19
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

           0.03       (0.78 )       1.13       (0.22 )       0.53
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions(b)

                        

From net investment income

           (0.34 )       (0.25 )       (0.26 )       (0.28 )       (0.34 )

From net realized gain

           —       —       —       —       (0.24 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total distributions

           (0.34 )       (0.25 )       (0.26 )       (0.28 )       (0.58 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

         $ 11.74     $ 12.05     $ 13.08     $ 12.21     $ 12.71
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

           0.28 %(d)       (6.01 )%       9.31 %       (1.80 )%       4.33 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(e)

                        

Total expenses

           0.58 %       0.43 %       0.43 %       0.51 %(f)       0.58 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

           0.55 %       0.42 %       0.42 %       0.50 %       0.56 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(g)

           0.39 %       0.39 %       0.39 %       0.38 %       0.39 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           2.87 %       1.99 %       2.02 %       2.19 %       2.71 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $ 82,913     $  111,164     $  108,489     $  108,494     $  113,480
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ 83,195     $ 147,795     $ 143,145     $ 148,145     $ 253,167
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           52 %       82 %       53 %       117 %       126 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

(g) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

70  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

 

         BlackRock New Jersey Municipal Bond Fund
        

 

Institutional

         

 

Year Ended    
05/31/23    

   Year Ended      
05/31/22      		   Year Ended    
05/31/21    		   Year Ended      
05/31/20      		   Year Ended    
05/31/19    

Net asset value, beginning of year

         $ 10.45     $ 11.59     $ 10.84     $ 11.30     $ 11.05
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

           0.35       0.31       0.35       0.37       0.40

Net realized and unrealized gain (loss)

           (0.30 )       (1.15 )       0.75       (0.46 )       0.25
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

           0.05       (0.84 )       1.10       (0.09 )       0.65
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions from net investment income(b)

           (0.35 )       (0.30 )       (0.35 )       (0.37 )       (0.40 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

             $ 10.15     $ 10.45     $ 11.59     $ 10.84     $ 11.30
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

           0.53 %       (7.37 )%       10.23 %       (0.89 )%       6.05 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(d)

                        

Total expenses

           0.75 %       0.74 %       0.73 %       0.81 %       0.85 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

           0.55 %       0.56 %       0.56 %       0.63 %       0.65 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

           0.52 %       0.52 %       0.52 %       0.52 %       0.52 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           3.44 %       2.70 %       3.06 %       3.27 %       3.65 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $  168,721     $  190,069     $  215,903     $  188,512     $  178,716
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ —     $ 16,739     $ 17,972     $ 22,054     $ 16,419
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           35 %       20 %       16 %       21 %       15 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   71

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         BlackRock New Jersey Municipal Bond Fund (continued)
        

 

Service

         

 

Year Ended    
05/31/23    

   Year Ended      
05/31/22      		   Year Ended    
05/31/21    		   Year Ended      
05/31/20      		   Year Ended    
05/31/19    

Net asset value, beginning of year

         $ 10.45     $ 11.59     $ 10.84     $ 11.30     $ 11.05
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

           0.32       0.27       0.32       0.34       0.37

Net realized and unrealized gain (loss)

               (0.30 )       (1.13 )       0.75       (0.46 )       0.25
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

           0.02       (0.86 )       1.07       (0.12 )       0.62
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions from net investment income(b)

           (0.32 )       (0.28 )       (0.32 )       (0.34 )       (0.37 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

         $ 10.15     $ 10.45     $ 11.59     $ 10.84     $ 11.30
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

           0.28 %       (7.60 )%       9.96 %       (1.13 )%       5.79 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(d)

                        

Total expenses

           0.99 %       0.96 %       0.96 %       1.02 %       1.08 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

           0.80 %       0.81 %       0.81 %       0.88 %       0.90 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

           0.77 %       0.77 %       0.77 %       0.77 %       0.77 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           3.19 %       2.42 %       2.77 %       2.98 %       3.34 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $ 6,622     $ 7,293     $ 7,955     $ 7,466     $ 7,874
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ —     $ 16,739     $ 17,972     $ 22,054     $ 16,419
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           35 %       20 %       16 %       21 %       15 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

72  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         BlackRock New Jersey Municipal Bond Fund (continued)
        

 

Investor A

         

 

Year Ended    
05/31/23    

   Year Ended      
05/31/22      		   Year Ended    
05/31/21    		   Year Ended      
05/31/20      		   Year Ended    
05/31/19    

Net asset value, beginning of year

         $ 10.46     $ 11.60     $ 10.85     $ 11.31     $ 11.06
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

           0.32       0.28       0.32       0.34       0.37

Net realized and unrealized gain (loss)

           (0.30 )       (1.14 )       0.75       (0.46 )       0.25
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

           0.02       (0.86 )       1.07       (0.12 )       0.62
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions from net investment income(b)

               (0.32 )       (0.28 )       (0.32 )       (0.34 )       (0.37 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

         $ 10.16     $ 10.46     $ 11.60     $ 10.85     $ 11.31
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

           0.28 %       (7.59 )%       9.96 %       (1.13 )%       5.79 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(d)

                        

Total expenses

           0.95 %       0.94 %       0.93 %       1.02 %       1.05 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

           0.80 %       0.81 %       0.80 %       0.88 %       0.90 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

           0.77 %       0.77 %       0.77 %       0.77 %       0.77 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           3.19 %       2.45 %       2.81 %       3.01 %       3.39 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $ 99,046     $ 112,909     $ 128,040     $ 106,048     $ 90,055
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ —     $ 16,739     $ 17,972     $ 22,054     $ 16,419
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           35 %       20 %       16 %       21 %       15 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   73

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         BlackRock New Jersey Municipal Bond Fund (continued)
        

 

Investor A1

         

 

Year Ended    
05/31/23    

   Year Ended      
05/31/22      		   Year Ended    
05/31/21    		   Year Ended      
05/31/20      		   Year Ended    
05/31/19    

Net asset value, beginning of year

         $ 10.47     $ 11.60     $ 10.85     $ 11.31     $ 11.06
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

           0.34       0.29       0.34       0.36       0.39

Net realized and unrealized gain (loss)

           (0.30 )       (1.13 )       0.75       (0.46 )       0.25
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

               0.04       (0.84 )       1.09       (0.10 )       0.64
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions from net investment income(b)

           (0.34 )       (0.29 )       (0.34 )       (0.36 )       (0.39 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

         $ 10.17     $ 10.47     $ 11.60     $ 10.85     $ 11.31
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

           0.44 %       (7.35 )%       10.12 %       (0.97 )%       5.95 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(d)

                        

Total expenses

           0.80 %       0.79 %       0.78 %       0.85 %       0.88 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

           0.65 %       0.66 %       0.65 %       0.73 %       0.74 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

           0.62 %       0.61 %       0.62 %       0.61 %       0.62 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           3.34 %       2.59 %       2.96 %       3.16 %       3.54 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $ 12,899     $ 14,636     $ 17,417     $ 17,241     $ 19,760
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ —     $ 16,739     $ 17,972     $ 22,054     $ 16,419
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           35 %       20 %       16 %       21 %       15 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

74  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

    

 

         BlackRock New Jersey Municipal Bond Fund (continued)
        

 

Investor C

          Year Ended      
05/31/23      		   Year Ended      
05/31/22      		   Year Ended    
05/31/21    		   Year Ended      
05/31/20      		   Year Ended    
05/31/19    

Net asset value, beginning of year

         $ 10.45     $ 11.59     $ 10.84     $ 11.30     $ 11.05
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

           0.25       0.19       0.23       0.25       0.29

Net realized and unrealized gain (loss)

           (0.30 )       (1.14 )       0.75       (0.45 )       0.25
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

           (0.05 )       (0.95 )       0.98       (0.20 )       0.54
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions from net investment income(b)

           (0.25 )       (0.19 )       (0.23 )       (0.26 )       (0.29 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

         $ 10.15     $ 10.45     $ 11.59     $ 10.84     $ 11.30
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

               (0.47 )%       (8.29 )%       9.14 %       (1.87 )%       5.00 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(d)

                        

Total expenses

           1.71 %       1.70 %       1.68 %       1.76 %       1.79 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

           1.55 %       1.56 %       1.56 %       1.63 %       1.64 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

           1.52 %       1.52 %       1.52 %       1.52 %       1.52 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           2.44 %       1.68 %       2.06 %       2.26 %       2.64 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $  12,896     $  17,672     $  26,004     $  32,313     $  31,234
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ —     $ 16,739     $ 17,972     $ 22,054     $ 16,419
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           35 %       20 %       16 %       21 %       15 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   75

Financial Highlights (continued)

(For a share outstanding throughout each period)

    

 

         BlackRock New Jersey Municipal Bond Fund (continued)
        

 

Class K

         

 

Year Ended    
05/31/23    

   Year Ended      
05/31/22      		   Year Ended    
05/31/21    		   Year Ended      
05/31/20      		   Year Ended    
05/31/19    

Net asset value, beginning of year

         $ 10.45     $ 11.59     $ 10.83     $ 11.30     $ 11.04
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

           0.35       0.31       0.35       0.37       0.41

Net realized and unrealized gain (loss)

           (0.30 )       (1.14 )       0.76       (0.47 )       0.26
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

           0.05       (0.83 )       1.11       (0.10 )       0.67
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions from net investment income(b)

           (0.35 )       (0.31 )       (0.35 )       (0.37 )       (0.41 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

             $ 10.15     $ 10.45     $ 11.59     $ 10.83     $ 11.30
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

           0.58 %       (7.32 )%       10.39 %       (0.93 )%       6.20 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(d)

                        

Total expenses

           0.66 %       0.65 %       0.64 %       0.72 %       0.75 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

           0.50 %       0.51 %       0.51 %       0.58 %       0.60 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

           0.47 %       0.47 %       0.47 %       0.47 %       0.47 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           3.49 %       2.75 %       3.10 %       3.32 %       3.70 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $  2,322     $ 2,513     $ 2,902     $ 2,075     $ 1,660
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ —     $  16,739     $  17,972     $  22,054     $  16,419
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           35 %       20 %       16 %       21 %       15 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

76  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

    

 

         BlackRock Pennsylvania Municipal Bond Fund
        

 

Institutional

         

 

Year Ended      
05/31/23      

   Year Ended      
05/31/22      		   Year Ended    
05/31/21    		   Year Ended    
05/31/20    		   Year Ended    
05/31/19    

Net asset value, beginning of year

         $ 10.18     $ 11.29     $ 10.75     $ 11.11     $ 10.98
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

           0.30       0.27       0.33       0.38       0.43

Net realized and unrealized gain (loss)

           (0.49 )       (1.11 )       0.54       (0.36 )       0.13
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

           (0.19 )       (0.84 )       0.87       0.02       0.56
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions from net investment income(b)

           (0.30 )       (0.27 )       (0.33 )       (0.38 )       (0.43 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

         $ 9.69     $ 10.18     $ 11.29     $ 10.75     $ 11.11
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

           (1.82 )%       (7.56 )%       8.20 %       0.14 %       5.22 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(d)

                        

Total expenses

           0.79 %       0.78 %       0.79 %       0.93 %       1.04 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

               0.58 %       0.59 %       0.61 %       0.75 %       0.84 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

           0.54 %       0.54 %       0.54 %       0.54 %       0.54 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           3.08 %       2.47 %       2.98 %       3.44 %       3.93 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $ 240,595     $ 325,614     $ 403,080     $ 370,399     $ 379,911
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ —     $ 29,938     $ 49,169     $ 64,784     $ 64,404
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           46 %       27 %       27 %       26 %       23 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   77

Financial Highlights (continued)

(For a share outstanding throughout each period)

    

 

         BlackRock Pennsylvania Municipal Bond Fund (continued)
        

 

Service

         

 

Year Ended      
05/31/23      

   Year Ended      
05/31/22      		   Year Ended    
05/31/21    		   Year Ended      
05/31/20      		   Year Ended    
05/31/19    

Net asset value, beginning of year

         $ 10.19     $ 11.30     $ 10.76     $ 11.13     $ 10.99
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

           0.28       0.24       0.30       0.35       0.40

Net realized and unrealized gain (loss)

           (0.49 )       (1.11 )       0.54       (0.37 )       0.14
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

           (0.21 )       (0.87 )       0.84       (0.02 )       0.54
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions from net investment income(b)

               (0.28 )       (0.24 )       (0.30 )       (0.35 )       (0.40 )
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of year

         $ 9.70     $ 10.19     $ 11.30     $ 10.76     $ 11.13
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                        

Based on net asset value

           (2.05 )%       (7.79 )%       7.93 %       (0.20 )%       5.05 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(d)

                        

Total expenses

           0.99 %       0.98 %       0.97 %       1.14 %       1.26 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

           0.82 %       0.84 %       0.86 %       1.00 %       1.09 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

           0.79 %       0.79 %       0.79 %       0.79 %       0.79 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

           2.85 %       2.21 %       2.72 %       3.19 %       3.67 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                        

Net assets, end of year (000)

         $ 1,067     $ 1,350     $ 2,367     $ 1,986     $ 2,080
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Borrowings outstanding, end of year (000)

         $ —     $ 29,938     $ 49,169     $ 64,784     $ 64,404
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

           46 %       27 %       27 %       26 %       23 %
       

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

78  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Pennsylvania Municipal Bond Fund (continued)  
    Investor A  
   

Year Ended

05/31/23

    

Year Ended

05/31/22

    

Year Ended

05/31/21

    

Year Ended

05/31/20

    

Year Ended

05/31/19

  
           

Net asset value, beginning of year

   $ 10.19     $ 11.30     $ 10.76     $ 11.13     $ 10.99  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.28       0.25       0.30       0.35       0.40  

Net realized and unrealized gain (loss)

     (0.49 )      (1.11 )      0.54       (0.37 )      0.14  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (0.21 )      (0.86 )      0.84       (0.02 )      0.54  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net investment income(b)

     (0.28 )      (0.25 )      (0.30 )      (0.35 )      (0.40 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 9.70     $ 10.19     $ 11.30     $ 10.76     $ 11.13  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

          

Based on net asset value

     (2.05 )%      (7.78 )%      7.93 %      (0.20 )%      5.05 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

          

Total expenses

     0.93 %      0.93 %      0.94 %      1.09 %      1.19 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.82 %      0.83 %      0.85 %      1.00 %      1.09 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

     0.78 %      0.78 %      0.78 %      0.79 %      0.79 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     2.84 %      2.23 %      2.72 %      3.19 %      3.67 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $ 117,457     $ 142,514     $ 161,081     $ 131,336     $ 110,756  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Borrowings outstanding, end of year (000)

   $ —     $ 29,938     $ 49,169     $ 64,784     $ 64,404  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     46 %      27 %      27 %      26 %      23 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   79

Financial Highlights (continued)

(For a share outstanding throughout each period)

    

 

    BlackRock Pennsylvania Municipal Bond Fund (continued)  
    Investor A1  
    Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		     Year Ended
05/31/20		     Year Ended
05/31/19		  
           

Net asset value, beginning of year

   $ 10.20     $ 11.30     $ 10.77     $ 11.13     $ 11.00  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.29       0.26       0.32       0.37       0.42  

Net realized and unrealized gain (loss)

     (0.49 )      (1.10 )      0.53       (0.36 )      0.13  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (0.20 )      (0.84 )      0.85       0.01       0.55  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net investment income(b)

     (0.29 )      (0.26 )      (0.32 )      (0.37 )      (0.42 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 9.71     $ 10.20     $ 11.30     $ 10.77     $ 11.13  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

          

Based on net asset value

     (1.91 )%      (7.56 )%      7.99 %      0.04 %      5.11 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

          

Total expenses

     0.83 %      0.81 %      0.82 %      0.96 %      1.05 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.68 %      0.69 %      0.71 %      0.85 %      0.94 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

     0.64 %      0.64 %      0.64 %      0.64 %      0.64 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     2.99 %      2.37 %      2.88 %      3.34 %      3.83 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $ 6,354     $ 7,651     $ 8,925     $ 9,462     $ 10,502  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Borrowings outstanding, end of year (000)

   $ —     $ 29,938     $ 49,169     $ 64,784     $ 64,404  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     46 %      27 %      27 %      26 %      23 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

80  

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Pennsylvania Municipal Bond Fund (continued)  
    Investor C  
    Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		     Year Ended
05/31/20		     Year Ended
05/31/19		  
           

Net asset value, beginning of year

   $ 10.19     $ 11.30     $ 10.76     $ 11.12     $ 10.99  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.20       0.16       0.22       0.27       0.32  

Net realized and unrealized gain (loss)

     (0.49 )      (1.11 )      0.54       (0.36 )      0.13  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (0.29 )      (0.95 )      0.76       (0.09 )      0.45  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net investment income(b)

     (0.20 )      (0.16 )      (0.22 )      (0.27 )      (0.32 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 9.70     $ 10.19     $ 11.30     $ 10.76     $ 11.12  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

          

Based on net asset value

     (2.79 )%      (8.48 )%      7.12 %      (0.85 )%      4.18 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

          

Total expenses

     1.73 %      1.70 %      1.71 %      1.85 %      1.95 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.58 %      1.59 %      1.61 %      1.75 %      1.84 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

     1.54 %      1.54 %      1.54 %      1.54 %      1.54 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     2.08 %      1.47 %      2.00 %      2.44 %      2.93 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $ 10,190     $ 14,249     $ 20,866     $ 29,078     $ 29,936  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Borrowings outstanding, end of year (000)

   $ —     $ 29,938     $ 49,169     $ 64,784     $ 64,404  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     46 %      27 %      27 %      26 %      23 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   81

Financial Highlights (continued)

(For a share outstanding throughout each period)

    

 

    BlackRock Pennsylvania Municipal Bond Fund (continued)  
    Class K  
    Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		     Year Ended
05/31/20		     Year Ended
05/31/19		  
           

Net asset value, beginning of year

   $ 10.18     $ 11.29     $ 10.75     $ 11.11     $ 10.98  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.31       0.28       0.33       0.38       0.43  

Net realized and unrealized gain (loss)

     (0.49 )      (1.11 )      0.55       (0.35 )      0.13  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (0.18 )      (0.83 )      0.88       0.03       0.56  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net investment income(b)

     (0.31 )      (0.28 )      (0.34 )      (0.39 )      (0.43 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 9.69     $ 10.18     $ 11.29     $ 10.75     $ 11.11  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

          

Based on net asset value

     (1.77 )%      (7.52 )%      8.25 %      0.19 %      5.28 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

          

Total expenses

     0.65 %      0.64 %      0.65 %      0.80 %      0.90 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.53 %      0.54 %      0.56 %      0.70 %      0.79 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(e)

     0.49 %      0.49 %      0.49 %      0.49 %      0.49 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     3.15 %      2.53 %      3.01 %      3.48 %      3.98 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $ 8,347     $ 7,776     $ 6,334     $ 3,982     $ 2,329  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Borrowings outstanding, end of year (000)

   $ —     $ 29,938     $ 49,169     $ 64,784     $ 64,404  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     46 %      27 %      27 %      26 %      23 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

82  

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Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock Impact Municipal Fund  
    Institutional  
          Period from  
    Year Ended       03/14/22(a)
     05/31/23     to 05/31/22  
         

Net asset value, beginning of period

     $ 9.81       $ 10.00  
   

 

 

      

 

 

  

Net investment income(b)

                    0.30                  0.03  

Net realized and unrealized loss

       (0.28 )        (0.19 ) 
   

 

 

      

 

 

  

Net increase (decrease) from investment operations

       0.02         (0.16 ) 
   

 

 

      

 

 

  

Distributions

        

From net investment income(c)

       (0.30 )        (0.03 ) 

From net realized gain

       (0.03 )        —  
   

 

 

      

 

 

  

Total distributions

       (0.33 )        (0.03 ) 
   

 

 

      

 

 

  

Net asset value, end of period

     $   9.50       $   9.81  
   

 

 

      

 

 

  

Total Return(d)

        

Based on net asset value

       0.27 %        (1.61 )%(e) 
   

 

 

      

 

 

  

Ratios to Average Net Assets(f)

        

Total expenses

       1.30 %(g)        1.13 %(h)(i)(j) 
   

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

       0.57 %        0.58 %(i) 
   

 

 

      

 

 

  

Net investment income

       3.16 %        1.44 %(i) 
   

 

 

      

 

 

  

Supplemental Data

        

Net assets, end of period (000)

     $ 122       $ 98  
   

 

 

      

 

 

  

Portfolio turnover rate

       36 %        — % 
   

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Includes non-recurring expenses of offering costs. Without these costs, total expenses would have been 1.04%.

(h) 

Includes non-recurring expenses of organization and offering costs. Without these costs, total expenses would have been 1.05%.

(i) 

Annualized.

(j) 

Audit, printing, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.77%.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   83

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Impact Municipal Fund (continued)  
    Investor A  
                Period from  
    Year Ended       03/14/22(a)
     05/31/23     to 05/31/22  
         

Net asset value, beginning of period

     $ 9.81       $ 10.00  
   

 

 

      

 

 

  

Net investment income(b)

                    0.28         0.02  

Net realized and unrealized loss

       (0.28 )                     (0.19 ) 
   

 

 

      

 

 

  

Net decrease from investment operations

       —         (0.17 ) 
   

 

 

      

 

 

  

Distributions

        

From net investment income(c)

       (0.28 )        (0.02 ) 

From net realized gain

       (0.03 )        —  
   

 

 

      

 

 

  

Total distributions

       (0.31 )        (0.02 ) 
   

 

 

      

 

 

  

Net asset value, end of period

     $ 9.50       $ 9.81  
   

 

 

      

 

 

  

Total Return(d)

        

Based on net asset value

       0.03 %        (1.66 )%(e) 
   

 

 

      

 

 

  

Ratios to Average Net Assets(f)

        

Total expenses

       1.60 %(g)        1.37 %(h)(i)(j) 
   

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

       0.81 %        0.83 %(i) 
   

 

 

      

 

 

  

Net investment income

       2.92 %        1.19 %(i) 
   

 

 

      

 

 

  

Supplemental Data

        

Net assets, end of period (000)

     $ 97       $ 98  
   

 

 

      

 

 

  

Portfolio turnover rate

       36 %        — % 
   

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d)

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Includes non-recurring expenses of offering costs. Without these costs, total expenses would have been 1.34%.

(h) 

Includes non-recurring expenses of organization and offering costs. Without these costs, total expenses would have been 1.30%.

(i) 

Annualized.

(j)

Audit, printing, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.02%.

See notes to financial statements.

 

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Impact Municipal Fund (continued)  
    Class K  
                Period from  
    Year Ended         03/14/22 (a) 
     05/31/23     to 05/31/22  
         

Net asset value, beginning of period

     $ 9.81       $ 10.00  
   

 

 

      

 

 

  

Net investment income(b)

       0.30         0.03  

Net realized and unrealized loss

                  (0.28 )                   (0.19 ) 
   

 

 

      

 

 

  

Net increase (decrease) from investment operations

       0.02         (0.16 ) 
   

 

 

      

 

 

  

Distributions

        

From net investment income(c)

       (0.30 )        (0.03 ) 

From net realized gain

       (0.03 )        —  
   

 

 

      

 

 

  

Total distributions

       (0.33 )        (0.03 ) 
   

 

 

      

 

 

  

Net asset value, end of period

     $ 9.50       $ 9.81  
   

 

 

      

 

 

  

Total Return(d)

        

Based on net asset value

       0.31 %        (1.60 )%(e) 
   

 

 

      

 

 

  

Ratios to Average Net Assets(f)

        

Total expenses

       1.23 %(g)        0.75 %(h)(i)(j) 
   

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

       0.53 %        0.53 %(i) 
   

 

 

      

 

 

  

Net investment income

       3.20 %        1.50 %(i) 
   

 

 

      

 

 

  

Supplemental Data

        

Net assets, end of period (000)

     $ 47,360       $ 48,841  
   

 

 

      

 

 

  

Portfolio turnover rate

       36 %        — % 
   

 

 

      

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Includes non-recurring expenses of offering costs. Without these costs, total expenses would have been 0.96%.

(h) 

Includes non-recurring expenses of organization and offering costs. Without these costs, total expenses would have been 1.30%.

(i) 

Annualized.

(j) 

Audit, printing, offering and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.40%.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   85

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         

BlackRock Strategic Municipal Opportunities Fund

 

  
         

 

Institutional

 

  
           Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		     Year Ended
05/31/20		     Year Ended
05/31/19		  

Net asset value, beginning of year

        $ 10.84     $ 11.95     $ 10.90     $ 11.70     $ 11.75  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

        0.29       0.25       0.27       0.29       0.35  

Net realized and unrealized gain (loss)

        (0.48 )      (1.11 )      1.04       (0.80 )      0.14  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

        (0.19 )      (0.86 )      1.31       (0.51 )      0.49  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions(b)

             

From net investment income

        (0.29 )      (0.25 )      (0.26 )      (0.29 )      (0.35 ) 

From net realized gain

        —       —       —       —       (0.19 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

        (0.29 )      (0.25 )      (0.26 )      (0.29 )      (0.54 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 10.36     $ 10.84     $ 11.95     $ 10.90     $ 11.70  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

             

Based on net asset value

        (1.74 )%(d)      (7.34 )%      12.18 %      (4.46 )%      4.41 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

             

Total expenses

        0.83 %      0.67 %      0.67 %      0.75 %      0.82 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

        0.77 %      0.63 %      0.61 %      0.70 %      0.77 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(f)

        0.59 %      0.55 %      0.55 %      0.54 %      0.55 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

        2.80 %      2.10 %      2.32 %      2.53 %      3.05 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

      $ 3,992,499     $ 5,736,839     $ 6,514,428     $ 6,827,755     $ 8,539,776  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Borrowings outstanding, end of year (000)

      $ 103,390     $ 745,620     $ 764,712     $ 869,463     $ 960,205  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

        51 %      106 %      100 %      119 %      68 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f)

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

86  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         

BlackRock Strategic Municipal Opportunities Fund (continued)

 

  
         

 

Investor A

 

  
           Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		     Year Ended
05/31/20		     Year Ended
05/31/19		  

Net asset value, beginning of year

        $ 10.83     $ 11.94     $ 10.90     $ 11.69     $ 11.74  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

        0.27       0.22       0.24       0.27       0.33  

Net realized and unrealized gain (loss)

        (0.48 )      (1.11 )      1.04       (0.79 )      0.14  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

        (0.21 )      (0.89 )      1.28       (0.52 )      0.47  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions(b)

             

From net investment income

        (0.27 )      (0.22 )      (0.24 )      (0.27 )      (0.33 ) 

From net realized gain

        —       —       —       —       (0.19 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

        (0.27 )      (0.22 )      (0.24 )      (0.27 )      (0.52 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 10.35     $ 10.83     $ 11.94     $ 10.90     $ 11.69  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

             

Based on net asset value

        (1.95 )%(d)      (7.55 )%      11.83 %      (4.59 )%      4.17 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

             

Total expenses

        1.04 %      0.89 %      0.89 %      0.98 %      1.05 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

        0.98 %      0.85 %      0.84 %      0.92 %      1.00 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(f)

        0.80 %      0.77 %      0.77 %      0.76 %      0.78 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

        2.60 %      1.88 %      2.10 %      2.31 %      2.82 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

      $ 938,420     $ 1,367,516     $ 1,717,910     $ 1,871,557     $ 1,846,094  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Borrowings outstanding, end of year (000)

      $ 103,390     $ 745,620     $ 764,712     $ 869,463     $ 960,205  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

        51 %      106 %      100 %      119 %      68 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   87

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         

BlackRock Strategic Municipal Opportunities Fund (continued)

 

  
         

 

Investor A1

 

  
           Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		     Year Ended
05/31/20		     Year Ended
05/31/19		  

Net asset value, beginning of year

        $ 10.83     $ 11.94     $ 10.90     $ 11.70     $ 11.75  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

        0.29       0.24       0.26       0.29       0.35  

Net realized and unrealized gain (loss)

        (0.49 )      (1.11 )      1.03       (0.81 )      0.14  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

        (0.20 )      (0.87 )      1.29       (0.52 )      0.49  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions(b)

             

From net investment income

        (0.28 )      (0.24 )      (0.25 )      (0.28 )      (0.35 ) 

From net realized gain

        —       —       —       —       (0.19 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

        (0.28 )      (0.24 )      (0.25 )      (0.28 )      (0.54 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 10.35     $ 10.83     $ 11.94     $ 10.90     $ 11.70  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

             

Based on net asset value

        (1.81 )%(d)      (7.42 )%      11.99 %      (4.52 )%      4.33 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

             

Total expenses

        0.90 %      0.74 %      0.75 %      0.82 %      0.90 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

        0.84 %      0.71 %      0.69 %      0.76 %      0.84 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(f)

        0.66 %      0.63 %      0.63 %      0.60 %      0.62 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

        2.75 %      2.03 %      2.25 %      2.48 %      2.99 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

      $ 16,987     $ 21,176     $ 24,645     $ 23,881     $ 27,606  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Borrowings outstanding, end of year (000)

      $ 103,390     $ 745,620     $ 764,712     $ 869,463     $ 960,205  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

        51 %      106 %      100 %      119 %      68 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

88  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         

BlackRock Strategic Municipal Opportunities Fund (continued)

 

  
         

 

Investor C

 

  
           Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		     Year Ended
05/31/20		     Year Ended
05/31/19		  

Net asset value, beginning of year

        $ 10.84     $ 11.95     $ 10.90     $ 11.70     $ 11.75  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

        0.19       0.13       0.15       0.18       0.24  

Net realized and unrealized gain (loss)

        (0.48 )      (1.11 )      1.05       (0.80 )      0.14  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

        (0.29 )      (0.98 )      1.20       (0.62 )      0.38  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions(b)

             

From net investment income

        (0.19 )      (0.13 )      (0.15 )      (0.18 )      (0.24 ) 

From net realized gain

        —       —       —       —       (0.19 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

        (0.19 )      (0.13 )      (0.15 )      (0.18 )      (0.43 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 10.36     $ 10.84     $ 11.95     $ 10.90     $ 11.70  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

             

Based on net asset value

        (2.70 )%(d)      (8.25 )%      11.07 %      (5.39 )%      3.39 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

             

Total expenses

        1.81 %      1.65 %      1.66 %      1.73 %      1.81 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

        1.75 %      1.61 %      1.61 %      1.68 %      1.75 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(f)

        1.57 %      1.53 %      1.54 %      1.52 %      1.53 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

        1.82 %      1.11 %      1.35 %      1.56 %      2.07 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

      $ 78,322     $ 134,639     $ 184,220     $ 271,382     $ 307,887  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Borrowings outstanding, end of year (000)

      $ 103,390     $ 745,620     $ 764,712     $ 869,463     $ 960,205  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

        51 %      106 %      100 %      119 %      68 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

(d) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

F I N A N C I A L   H I G H L I G H T S

   89

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

         

BlackRock Strategic Municipal Opportunities Fund (continued)

 

  
         

 

Class K

 

  
           Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		     Year Ended
05/31/20		     Year Ended
05/31/19		  

Net asset value, beginning of year

      $ 10.84     $ 11.95     $ 10.90     $ 11.70     $ 11.75  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

          0.30       0.25       0.27       0.30       0.36  

Net realized and unrealized gain (loss)

        (0.48 )      (1.11 )      1.05       (0.80 )      0.14  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

        (0.18 )      (0.86 )      1.32       (0.50 )      0.50  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions(b)

             

From net investment income

        (0.30 )      (0.25 )      (0.27 )      (0.30 )      (0.36 ) 

From net realized gain

        —       —       —       —       (0.19 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

        (0.30 )      (0.25 )      (0.27 )      (0.30 )      (0.55 ) 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

      $ 10.36     $ 10.84     $ 11.95     $ 10.90     $ 11.70  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

             

Based on net asset value

        (1.66 )%(d)      (7.28 )%      12.24 %      (4.39 )%      4.47 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

             

Total expenses

        0.75 %      0.60 %      0.61 %      0.69 %      0.76 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

        0.70 %      0.56 %      0.56 %      0.63 %      0.71 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense(f)

        0.51 %      0.48 %      0.49 %      0.47 %      0.48 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

        2.88 %      2.16 %      2.37 %      2.59 %      3.11 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

      $ 93,826     $ 124,194     $ 168,801     $ 162,366     $ 126,051  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Borrowings outstanding, end of year (000)

      $ 103,390     $ 745,620     $ 764,712     $ 869,463     $ 960,205  
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

        51 %      106 %      100 %      119 %      68 % 
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes payment from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Interest expense and fees relate to TOB Trusts. See Note 4 of the Notes to Financial Statements for details.

See notes to financial statements.

 

 

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Notes to Financial Statements  

    

 

1.

ORGANIZATION

BlackRock California Municipal Series Trust, BlackRock Multi-State Municipal Series Trust, BlackRock Municipal Series Trust (each, a “Trust” or collectively, the “Trusts”) and BlackRock Municipal Bond Fund, Inc. (the “Corporation”) are each registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as open-end management investment companies. Each Trust is organized as a Massachusetts business trust. The Corporation is organized as a Maryland corporation. The following are referred to herein collectively as the “Funds” or individually as a “Fund”:

 

       
Registrant Name    Fund Name    Herein Referred To As    Diversification
Classification

BlackRock California Municipal Series Trust

    BlackRock California Municipal Opportunities Fund    California Municipal Opportunities    Diversified

BlackRock Multi-State Municipal Series Trust

    BlackRock New Jersey Municipal Bond Fund    New Jersey Municipal Bond    Non-diversified
   BlackRock Pennsylvania Municipal Bond Fund    Pennsylvania Municipal Bond    Non-diversified

BlackRock Municipal Bond Fund, Inc

    BlackRock Impact Municipal Fund    Impact Municipal    Diversified

BlackRock Municipal Series Trust

    BlackRock Strategic Municipal Opportunities Fund    Strategic Municipal Opportunities    Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional, Service and Class K Shares are sold only to certain eligible investors. Service, Investor A, Investor A1 and Investor C Shares bear certain expenses related to shareholder servicing of such shares, and Investor C Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Investor A1 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans and, for California Municipal Opportunities only, fee based programs previously approved by the Fund. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan).

 

       
Share Class    Initial Sales Charge      CDSC      Conversion Privilege

Institutional, Service and Class K Shares

      No        No      None

Investor A Shares

      Yes        No (a)     None

Investor A1 Shares

      No (b)       No (c)     None

Investor C Shares

      No        Yes (d)     To Investor A Shares after approximately 8 years

 

  (a) 

Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.

 
  (b) 

Investor A1 Shares are subject to a maximum sales charge on purchases of 4.00% for all Funds other than Strategic Municipal Opportunities, which is subject to a maximum sales charge of 1.00%. The sales charge does not apply to dividend and capital gain reinvestments by existing shareholders and new purchases for certain employer-sponsored retirement plans or, for California Municipal Opportunities only, fee based programs previously approved by the Fund, which are currently the only investors who may invest in Investor A1 Shares.

 
  (c) 

Investor A1 Shares may be subject to CDSC for certain redemptions where no initial sales charge was paid at the time of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders and, for California Municipal Opportunities only, fee based programs previously approved by the Fund.

 
  (d) 

A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase.

 

The Boards of Trustees of the Trusts and the Board of Directors of the Corporation are collectively referred to throughout this report as the “Board,” and the directors/trustees thereof are collectively referred to throughout this report as “Trustees”.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of funds referred to as the BlackRock Fixed-Income Complex.

 

2.

SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. Each Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments.

 

 

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Notes to Financial Statements   (continued)

    

 

Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend dates and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Fund’s Board, the trustees who are not “interested persons” of the Funds, as defined in the 1940 Act (“Independent Trustees”), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund, as applicable. Deferred compensation liabilities, if any, are included in the Trustees’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan. Net appreciation (depreciation) in the value of participants’ deferral accounts is allocated among the participating funds in the BlackRock Fixed-Income Complex and reflected as Trustees and Officer expense on the Statements of Operations. The Trustees and Officer expense may be negative as a result of a decrease in value of the deferred accounts.

Offering Costs: Offering costs are amortized over a 12-month period beginning with the commencement of operations of a class of shares.

Indemnifications: In the normal course of business, a Fund enters into contracts that contain a variety of representations that provide general indemnification. A Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against a Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to a Fund or its classes are charged to that Fund or the applicable class. Expenses directly related to the Funds and other shared expenses prorated to the Funds are allocated daily to each class based on their relative net assets or other appropriate methods. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

 

3.

INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board has approved the designation of each Fund’s Manager as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

  •  

Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price or current market quotations provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

 

  •  

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s published net asset value (“NAV”).

 

  •  

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from

 

 

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Notes to Financial Statements   (continued)

    

 

the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs.

 

   
                                    Standard Inputs Generally Considered By The Valuation Committee And Third-Party Pricing Services    

    

  

Market approach

    (i)  

recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers;

  
   (ii)   recapitalizations and other transactions across the capital structure; and       
   (iii)   market multiples of comparable issuers.  
     
 

Income approach

    (i)  

future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks;

  
   (ii)   quoted prices for similar investments or assets in active markets; and  
   (iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.  
     
 

Cost approach

    (i)  

audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company;

  
   (ii)   changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company;  
   (iii)   relevant news and other public sources; and  
   (iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.  

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate under the circumstances. The use of these valuation techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards applicable to other investments held by a Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.

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

 

  •  

Level 1 – Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that each Fund has the ability to access;

 

  •  

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

 

  •  

Level 3 – Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

 

4.

SECURITIES AND OTHER INVESTMENTS

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

Forward Commitments, When-Issued and Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

 

 

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Notes to Financial Statements   (continued)

    

 

Municipal Bonds Transferred to TOB Trusts: The Funds leverage their assets through the use of “TOB Trust” transactions. The funds transfer municipal bonds into a special purpose trust (a “TOB Trust”). A TOB Trust issues two classes of beneficial interests: short-term floating rate interests (“TOB Trust Certificates”), which are sold to third-party investors, and residual inverse floating rate interests (“TOB Residuals”), which are issued to the participating funds that contributed the municipal bonds to the TOB Trust. The TOB Trust Certificates have interest rates that reset weekly and their holders have the option to tender such certificates to the TOB Trust for redemption at par and any accrued interest at each reset date. The TOB Residuals held by a fund provide the fund with the right to cause the holders of a proportional share of the TOB Trust Certificates to tender their certificates to the TOB Trust at par plus accrued interest. The funds may withdraw a corresponding share of the municipal bonds from the TOB Trust. Other funds managed by the investment adviser may also contribute municipal bonds to a TOB Trust into which a fund has contributed bonds. If multiple BlackRock-advised funds participate in the same TOB Trust, the economic rights and obligations under the TOB Residuals will be shared among the funds ratably in proportion to their participation in the TOB Trust.

TOB Trusts are supported by a liquidity facility provided by a third-party bank or other financial institution (the “Liquidity Provider”) that allows the holders of the TOB Trust Certificates to tender their certificates in exchange for payment of par plus accrued interest on any business day. The tendered TOB Trust Certificates are remarketed by a Remarketing Agent. In the event of a failed remarketing, the TOB Trust may draw upon a loan from the Liquidity Provider to purchase the tendered TOB Trust Certificates. Any loans made by the Liquidity Provider will be secured by the purchased TOB Trust Certificates held by the TOB Trust and will be subject to an increased interest rate based on number of days the loan is outstanding.

The TOB Trust may be collapsed without the consent of a fund, upon the occurrence of a termination event as defined in the TOB Trust agreement. Upon the occurrence of a termination event, a TOB Trust would be liquidated with the proceeds applied first to any accrued fees owed to the trustee of the TOB Trust, the Remarketing Agent and the Liquidity Provider. Upon certain termination events, TOB Trust Certificates holders will be paid before the TOB Residuals holders (i.e., the Funds) whereas in other termination events, TOB Trust Certificates holders and TOB Residuals holders will be paid pro rata.

While a fund’s investment policies and restrictions expressly permit investments in inverse floating rate securities, such as TOB Residuals, they restrict the ability of a fund to borrow money for purposes of making investments. Each Fund’s transfer of the municipal bonds to a TOB Trust is considered a secured borrowing for financial reporting purposes. The cash received by the TOB Trust from the sale of the TOB Trust Certificates, less certain transaction expenses, is paid to a Fund. A Fund typically invests the cash received in additional municipal bonds.

Accounting for TOB Trusts: The municipal bonds deposited into a TOB Trust are presented in a Fund’s Schedule of Investments and the TOB Trust Certificates are shown in Other Liabilities in the Statements of Assets and Liabilities. Any loans drawn by the TOB Trust pursuant to the liquidity facility to purchase tendered TOB Trust Certificates are shown as Loan for TOB Trust Certificates. The carrying amount of a Fund’s payable to the holder of the TOB Trust Certificates, as reported in the Statements of Assets and Liabilities as TOB Trust Certificates, approximates its fair value.

Interest income, including amortization and accretion of premiums and discounts, from the underlying municipal bonds is recorded by a Fund on an accrual basis. Interest expense incurred on the TOB Trust transaction and other expenses related to remarketing, administration, trustee, liquidity and other services to a TOB Trust are shown as interest expense, fees and amortization of offering costs in the Statements of Operations. Fees paid upon creation of the TOB Trust are recorded as debt issuance costs and are amortized to interest expense, fees and amortization of offering costs in the Statements of Operations to the expected maturity of the TOB Trust. In connection with the restructurings of the TOB Trusts to non-bank sponsored TOB Trusts, a Fund incurred non-recurring, legal and restructuring fees, which are recorded as interest expense, fees and amortization of offering costs in the Statements of Operations. Amounts recorded within interest expense, fees and amortization of offering costs in the Statements of Operations are:

 

         
Fund Name   Interest Expense      Liquidity Fees      Other Expenses      Total  

California Municipal Opportunities

   $ 3,474,779      $ 645,064      $ 200,791      $ 4,320,634  

New Jersey Municipal Bond

     66,149        19,786        9,325        95,260  

Pennsylvania Municipal Bond

     110,685        35,963        12,511        159,159  

Strategic Municipal Opportunities

     8,435,303        1,896,578        589,060         10,920,941  

For the year ended May 31, 2023, the following table is a summary of each Fund’s TOB Trusts:

 

           

Fund Name

    


 Underlying
Municipal Bonds
Transferred to
TOB Trusts		  
 
 
(a) 		    

 Liability for
TOB Trust
Certificates		  
 
(b) 		    



 Range of
Interest Rates
on TOB Trust
Certificates at
Period End		  
 
 
 
 		     



 Average

TOB Trust
Certificates
Outstanding

  

 
 
 

     



 Daily Weighted
Average Rate
of Interest and

Other Expenses
on TOB Trusts

  
 
 

 
 

California Municipal Opportunities

   $ 179,341,440     $ 83,194,978       3.44% —3.61%      $ 167,681,450        2.58 % 

New Jersey Municipal Bond

     —       —       —           5,186,949        1.84  

Pennsylvania Municipal Bond

     —       —       —           8,936,045        1.78  

Strategic Municipal Opportunities

     150,261,700       103,389,987       3.44   — 3.81           442,331,541        2.47  

 

  (a) 

The municipal bonds transferred to a TOB Trust are generally high grade municipal bonds. In certain cases, when municipal bonds transferred are lower grade municipal bonds, the TOB Trust transaction may include a credit enhancement feature that provides for the timely payment of principal and interest on the bonds to the TOB Trust by a credit enhancement provider in the event of default of the municipal bond. The TOB Trust would be responsible for the payment of the credit enhancement fee and the Funds, as TOB Residuals holders, would be responsible for reimbursement of any payments of principal and interest made by the credit enhancement provider. The maximum potential amounts owed by the Funds, for such reimbursements, as applicable, are included in the maximum potential amounts disclosed for recourse TOB Trusts in the Schedules of Investments.

 

 

 

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Notes to Financial Statements   (continued)

 

  (b) 

TOB Trusts may be structured on a non-recourse or recourse basis. When a Fund invests in TOB Trusts on a non-recourse basis, the Liquidity Provider may be required to make a payment under the liquidity facility to allow the TOB Trust to repurchase TOB Trust Certificates. The Liquidity Provider will be reimbursed from the liquidation of bonds held in the TOB Trust. If a Fund invests in a TOB Trust on a recourse basis, a Fund enters into a reimbursement agreement with the Liquidity Provider where a Fund is required to reimburse the Liquidity Provider for any shortfall between the amount paid by the Liquidity Provider and proceeds received from liquidation of municipal bonds held in the TOB Trust (the “Liquidation Shortfall”). As a result, if a Fund invests in a recourse TOB Trust, a Fund will bear the risk of loss with respect to any Liquidation Shortfall. If multiple funds participate in any such TOB Trust, these losses will be shared ratably, including the maximum potential amounts owed by a Fund at May 31, 2023, in proportion to their participation in the TOB Trust. The recourse TOB Trusts are identified in the Schedules of Investments including the maximum potential amounts owed by a Fund at May 31, 2023.

 

5.

DERIVATIVE FINANCIAL INSTRUMENTS

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are exchange-traded agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statements of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statements of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.

 

6.

INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Trusts and the Corporation, on behalf of the Funds, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory services and with respect to the Funds except Impact Municipal, administrative services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net assets:

 

   
    Investment Advisory Fees  
Average Daily Net Assets   California
Municipal
Opportunities		     New Jersey
Municipal
Bond		     Pennsylvania
Municipal
Bond		     Impact
Municipal		     Strategic
Municipal
Opportunities		  

First $1 billion

     0.38 %      0.52 %      0.52 %      0.45 %      0.55 % 

$1 billion — $3 billion

     0.36       0.49       0.49       0.42       0.52  

$3 billion — $5 billion

     0.34       0.47       0.47       0.41       0.50  

$5 billion — $10 billion

     0.33       0.45       0.45       0.39       0.48  

Greater than $10 billion

     0.32       0.44       0.44       0.38       0.47  

Service and Distribution Fees: The Trusts and the Corporation, on behalf of the Funds, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of each Fund as follows:

 

           
        California Municipal Opportunities     New Jersey Municipal Bond     Pennsylvania Municipal Bond     Impact Municipal     Strategic Municipal Opportunities        
    Share Class  

Service

Fees

    

Distribution

Fees

    

Service

Fees

    

Distribution

Fees

    

Service

Fees

    

Distribution

Fees

    

Service

Fees

    

Distribution

Fees

    

Service

Fees

    

Distribution

Fees

        
 

Service

     N/A       N/A       0.25 %      N/A       0.25 %      N/A       N/A       N/A       N/A       N/A    

    

  

Investor A

     0.25 %      N/A       0.25       N/A       0.25       N/A       0.25 %      N/A       0.25 %      N/A             
 

Investor A1

     0.10       N/A       0.10       N/A       0.10       N/A       N/A       N/A       0.10       N/A    
 

Investor C

     0.25       0.75 %      0.25       0.75 %      0.25       0.75 %      N/A       N/A       0.25       0.75 %   

BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder servicing and distribution services to the Funds. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to shareholders.

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

   95

Notes to Financial Statements   (continued)

    

 

For the year ended May 31, 2023, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

 

 

  
Fund Name   Service      Investor A      Investor A1      Investor C      Total  

 

  

California Municipal Opportunities

   $ —      $  1,835,892      $ 82,708      $ 704,604      $ 2,623,204  

New Jersey Municipal Bond

     16,842        264,212        13,575        143,772        438,401  

Pennsylvania Municipal Bond

     2,668        315,603        7,109        116,482        441,862  

Impact Municipal

     —        237        —        —        237  

Strategic Municipal Opportunities

     —        2,803,436        18,686        989,058        3,811,180  

 

  

Administration: With respect to Impact Municipal, the Fund entered into an Administration Agreement with the Manager, an indirect, wholly-owned subsidiary of BlackRock, to provide administrative services. For these services, the Manager receives an administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of the Fund. The administration fee, which is shown as administration in the Statements of Operations, is paid at the annual rates below.

 

   
Average Daily Net Assets   Administration Fees  

First $500 million

     0.0425 % 

$500 million — $1 billion

     0.0400  

$1 billion — $2 billion

     0.0375  

$2 billion — $4 billion

     0.0350  

$4 billion — $13 billion

     0.0325  

Greater than $13 billion

     0.0300  

In addition, with respect to Impact Municipal, the Manager charges each of the share classes an administration fee, which is shown as administration – class specific in the Statements of Operations, at an annual rate of 0.02% of the average daily net assets of each respective class.

For the year ended May 31, 2023, the following table shows the class specific administration fees borne directly by each share class of the Fund:

 

 

  
Fund Name   Institutional      Investor A      Class K      Total  

 

  

Impact Municipal

   $ 24      $ 18      $ 9,449      $  9,491  

 

  

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended May 31, 2023, the Funds did not pay any amounts to affiliates in return for these services.

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended May 31, 2023, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

 

 

  
Fund Name   Institutional      Service      Investor A      Investor A1      Investor C      Class K      Total  

 

  

California Municipal Opportunities

   $ 3,428      $ —      $ 3,188      $ 2,320      $ 426      $ 276      $ 9,638  

New Jersey Municipal Bond

     642        1,870        1,276        633        278        91        4,790  

Pennsylvania Municipal Bond

     857        106        1,764        725        294        34        3,780  

Impact Municipal

     —        —        58        —        —        106        164  

Strategic Municipal Opportunities

     11,081        —        7,154        267        1,224        482        20,208  

 

  

For the year ended May 31, 2023, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:

 

 

  
Fund Name   Institutional      Service      Investor A      Investor A1      Investor C      Class K      Total  

 

  

California Municipal Opportunities

   $ 994,231      $ —      $ 312,722      $ 33,333      $ 36,569      $ 1,348      $ 1,378,203  

New Jersey Municipal Bond

     167,196        6,272        50,642        6,954        8,981        288        240,333  

Pennsylvania Municipal Bond

     403,903        1,025        54,047        6,057        10,032        611        475,675  

Impact Municipal

     82        —        120        —        —        167        369  

Strategic Municipal Opportunities

     3,862,360        —        448,965        9,374        63,069        4,329        4,388,097  

 

  

Other Fees: For the year ended May 31, 2023, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

 

 

  
Fund Name   Investor A  

 

  

California Municipal Opportunities

   $ 2,115  

New Jersey Municipal Bond

     947  

Pennsylvania Municipal Bond

     959  

Strategic Municipal Opportunities

     2,636  

 

  

For the year ended May 31, 2023, affiliates received CDSCs as follows:

 

 

  
Fund Name   Investor A      Investor C  

 

  

California Municipal Opportunities

   $ 82,592      $ 2,476  

 

  

 

 

96  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Notes to Financial Statements   (continued)

    

 

 

  
Fund Name   Investor A      Investor C  

 

  

New Jersey Municipal Bond

   $ 8,606      $ 371  

Pennsylvania Municipal Bond

     16,531        302  

Strategic Municipal Opportunities

     76,512        4,721  

 

  

Expense Limitations, Waivers, Reimbursements, and Recoupments: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2024. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. With respect to California Municipal Opportunities, New Jersey Municipal Bond, Pennsylvania Municipal Bond and Impact Municipal the amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended May 31, 2023, the amounts waived were as follows:

 

 

  
Fund Name   Fees Waived and/or Reimbursed
by the Manager		  

 

  

California Municipal Opportunities

   $ 108,405  

New Jersey Municipal Bond

     17,804  

Pennsylvania Municipal Bond

     13,856  

Impact Municipal

     1,587  

Strategic Municipal Opportunities

     255,358  

 

  

With respect to California Municipal Opportunities, New Jersey Municipal Bond, Pennsylvania Municipal Bond and Impact Municipal, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

 

             
Fund Name   Institutional     Service     Investor A     Investor A1     Investor C     Class K  

California Municipal Opportunities

     0.44 %      — %      0.69 %      0.54 %      1.44 %      0.39 % 

New Jersey Municipal Bond

     0.52       0.77       0.77       0.62       1.52       0.47  

Pennsylvania Municipal Bond

     0.54       0.79       0.79       0.64       1.54       0.49  

Impact Municipal

     0.58       —       0.83       —       —       0.53  

The Manager has agreed not to reduce or discontinue the contractual expense limitations through June 30, 2024, with respect to California Municipal Opportunities, New Jersey Municipal Bond, Pennsylvania Municipal Bond and Impact Municipal unless approved by the Board, including a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. These amounts of investment advisory fees waived and/or reimbursed are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended May 31, 2023, the Funds waived the following amounts:

 

 

  
Fund Name   Fees Waived and/or Reimbursed
by the Manager		  

 

  

California Municipal Opportunities

   $ 531,275  

New Jersey Municipal Bond

     456,618  

Pennsylvania Municipal Bond

     460,861  

Impact Municipal

     304,074  

 

  

With respect to Strategic Municipal Opportunities, the Manager contractually agreed to waive 0.05% of its investment advisory fees through June 30, 2024. The agreement may be terminated upon 90 days’ notice by a majority of Independent Trustees of BlackRock Municipal Series Trust or by a vote of a majority of the outstanding voting securities of the Fund. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended May 31, 2023, the Manager waived $3,010,080 pursuant to this agreement.

In addition, these amounts waived and/or reimbursed by the Manager are included in administration fees waived by the Manager — class specific and transfer agent fees waived and/or reimbursed by the Manager — class specific in the Statements of Operations. For the year ended May 31, 2023, class specific expense waivers and/or reimbursements were as follows:

 

 

  
          Administration Fees Waived by the Manager
- Class Specific		  
 

 

 

  
Fund Name   Institutional      Investor A      Class K      Total  

 

  

Impact Municipal

   $ 7      $ 6      $ 9,370      $ 9,383  

 

  

 

   
   

Transfer Agent Fees Waived and/or

Reimbursed by the Manager - Class Specific

  
 

 

 

  
Fund Name   Institutional      Service      Investor A      Investor A1      Investor C      Class K      Total  

California Municipal Opportunities

   $ 156,934      $ —      $ —      $ —      $ 1,569      $ 1,347      $ 159,850  

New Jersey Municipal Bond

     81,459        2,905        1,335        256        1,792        288        88,035  

Pennsylvania Municipal Bond

     269,635        523        —        2,502        4,209        610        277,479  

Impact Municipal

     52        —        103        —        —        164        319  

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

   97

Notes to Financial Statements   (continued)

    

 

Impact Municipal also had a waiver of administration fees, which are included in Administration fees waived in the Statements of Operations. For the year ended May 31, 2023, the amount was $15,038.

With respect to the contractual expense limitation, if during Impact Municipal’s fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

(1) the Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

(2) the Manager or an affiliate continues to serve as the Fund’s investment adviser or administrator.

This repayment applies only to the contractual expense limitation on net expenses and does not apply to the contractual investment advisory fee waiver described above or any voluntary waivers that may be in effect from time to time. Effective March 15, 2029, the repayment arrangement between the Fund and the Manager pursuant to which such Fund may be required to repay amounts waived and/or reimbursed under the Fund’s contractual caps on net expenses will be terminated.

As of May 31, 2023, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

 

 

  
    Expiring  
 

 

 

  
Fund Name/Fund Level/Share Class   05/31/24     05/31/25  

 

  

Impact Municipal

    

Fund Level

   $ 75,939     $ 319,112  

Institutional

     71       59  

Investor A

     72       109  

Class K

     2,155       9,534  

 

  

Interfund Lending: In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“SEC”), each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. California Municipal Opportunities, New Jersey Municipal Bond, Pennsylvania Municipal Bond and Strategic Municipal Opportunities are currently permitted to borrow under the Interfund Lending Program. Impact Municipal is currently permitted to borrow and lend under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the year ended May 31, 2023, the Funds did not participate in the Interfund Lending Program.

Trustees and Officers: Certain trustees and/or officers of the Funds are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

Other Transactions: During the year ended May 31, 2023, California Municipal Opportunities and Strategic Municipal Opportunities received reimbursements of $10,218 and $127,749, respectively, from an affiliate, which is included in payments by affiliate in the Statements of Operations, related to operating errors.

The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the year ended May 31, 2023, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule 17a-7 under the 1940 Act were as follows:

 

 

  
Fund Name   Purchases      Sales      Net Realized
Gain (Loss)		  

 

  

Pennsylvania Municipal Bond

   $ 500,575      $ 4,001,427      $ —  

Impact Municipal

     —        1,000,144        —  

 

  

 

7.

PURCHASES AND SALES

For the year ended May 31, 2023, purchases and sales of investments, excluding short-term securities, were as follows:

 

 

  
Fund Name   Purchases      Sales  

 

  

California Municipal Opportunities

   $ 1,369,175,085      $ 1,907,879,136  

New Jersey Municipal Bond

     103,999,275        143,939,756  

 

  

 

 

98  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Notes to Financial Statements   (continued)

    

 

 

  
Fund Name   Purchases      Sales  

 

  

Pennsylvania Municipal Bond

   $ 189,330,542      $ 309,151,432  

Impact Municipal

     16,258,552        17,202,189  

Strategic Municipal Opportunities

     3,132,625,657        5,725,684,666  

 

  

 

8.

INCOME TAX INFORMATION

It is each Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of May 31, 2023, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

U.S. 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 NAVs per share. As of period end, permanent differences attributable to non-deductible expenses were reclassified to the following accounts:

 

 

  
Fund Name   Paid-in Capital     Accumulated
Earnings (Loss)		  

 

  

Impact Municipal

    $ (90,588 )    $ 90,588  

 

  

The tax character of distributions paid was as follows:

 

 

  
Fund Name   Year Ended
05/31/23		      Year Ended
05/31/22		  

 

  

California Municipal Opportunities

     

Tax-exempt income

   $ 67,870,844      $ 53,684,529  

Ordinary income

     4,093,071        7,396,249  
 

 

 

     

 

 

  
  $ 71,963,915      $ 61,080,778  
 

 

 

     

 

 

  

New Jersey Municipal Bond

     

Tax-exempt income

   $ 10,327,786      $ 10,029,604  

Ordinary income

     7,326        90  
 

 

 

     

 

 

  
  $ 10,335,112      $ 10,029,694  
 

 

 

     

 

 

  

Pennsylvania Municipal Bond

     

Tax-exempt income

   $ 12,559,164      $ 14,102,115  

Ordinary income

     16,765        169  
 

 

 

     

 

 

  
  $ 12,575,929      $ 14,102,284  
 

 

 

     

 

 

  

Impact Municipal

     

Tax-exempt income

   $ 1,515,228      $ 148,498  

Ordinary income

     7,724        —  

Long-term capital gains

     144,045        —  
 

 

 

     

 

 

  
  $ 1,666,997      $ 148,498  
 

 

 

     

 

 

  

Strategic Municipal Opportunities

     

Tax-exempt income

   $ 146,757,843      $ 154,051,095  

Ordinary income

     15,548,691        24,313,071  
 

 

 

     

 

 

  
  $ 162,306,534      $ 178,364,166  
 

 

 

     

 

 

  

As of May 31, 2023, the tax components of accumulated earnings (loss) were as follows:

 

 

 

    
    Fund Name   Undistributed
Tax-Exempt Income		     Undistributed
Ordinary Income		     Non-Expiring
Capital Loss
Carryforwards(a)		     Net Unrealized
Gains (Losses)(b)		     Qualified
Late-Year Losses(c)		     Total        
 

 

    
 

California Municipal Opportunities

   $ 3,364,824     $ 95,000     $ (179,985,221 )    $ (92,071,615 )    $ —     $ (268,597,012 )   
 

New Jersey Municipal Bond

     309,606       7,141       (19,872,492 )      (3,507,764 )      —       (23,063,509 )   
 

Pennsylvania Municipal Bond

     337,619       7,264       (45,862,463 )      (17,831,490 )      —       (63,349,070 )   
 

Impact Municipal

     103,604       3,864       —       (1,613,087 )      (876,325 )      (2,381,944 )   
 

Strategic Municipal Opportunities

     4,460,095       538,735       (865,129,814 )      (388,903,153 )      —       (1,249,034,137 )   
 

 

    

 

  (a)

Amounts available to offset future realized capital gains.

 

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

   99

Notes to Financial Statements   (continued)

    

 

  (b) 

The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on certain futures contracts, amortization methods for premiums on fixed income securities, the treatment of residual interests in tender option bond trusts, the accrual of income on securities in default and the deferral of compensation to trustees.

 
  (c) 

The Fund has elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

 

As of May 31, 2023, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

 

  
Fund Name   Tax Cost      Gross Unrealized
Appreciation		      Gross Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  

 

  

California Municipal Opportunities

   $ 2,601,798,413      $ 17,612,398      $ (109,684,019 )    $ (92,071,621 ) 

New Jersey Municipal Bond

     310,403,688        7,424,344        (10,932,108 )      (3,507,764 ) 

Pennsylvania Municipal Bond

     401,072,841        1,485,133        (19,316,623 )      (17,831,490 ) 

Impact Municipal

     48,499,149        376,921        (1,990,008 )      (1,613,087 ) 

Strategic Municipal Opportunities

     5,342,941,700        29,215,061        (418,026,749 )      (388,811,688 ) 

 

  

 

9.

BANK BORROWINGS

The Trusts and the Corporation, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is party to a 364-day, $2.50 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2024 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended May 31, 2023, the Funds did not borrow under the credit agreement.

 

10.

PRINCIPAL RISKS

In the normal course of business, the Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

A Fund structures and “sponsors” the TOB Trusts in which it holds TOB Residuals and has certain duties and responsibilities, which may give rise to certain additional risks including, but not limited to, compliance, securities law and operational risks.

As short-term interest rates rise, the Funds’ investments in the TOB Trusts may adversely affect the Funds’ net investment income and dividends to shareholders. Also, fluctuations in the market value of municipal bonds deposited into the TOB Trust may adversely affect the Funds’ NAVs per share.

The SEC and various federal banking and housing agencies have adopted credit risk retention rules for securitizations (the “Risk Retention Rules”). The Risk Retention Rules would require the sponsor of a TOB Trust to retain at least 5% of the credit risk of the underlying assets supporting the TOB Trust’s municipal bonds. The Risk Retention Rules may adversely affect the Funds’ ability to engage in TOB Trust transactions or increase the costs of such transactions in certain circumstances.

TOB Trusts constitute an important component of the municipal bond market. Any modifications or changes to rules governing TOB Trusts may adversely impact the municipal market and the Funds, including through reduced demand for and liquidity of municipal bonds and increased financing costs for municipal issuers. The ultimate impact of any potential modifications on the TOB Trust market and the overall municipal market is not yet certain.

Market Risk: Each Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force each Fund to reinvest in lower yielding securities. Each Fund may also be exposed to reinvestment risk, which is the risk that income from each Fund’s portfolio will decline if each Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below each Fund portfolio’s current earnings rate.

Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest or otherwise affect the value of such securities. Municipal securities can be significantly affected by political or economic changes, including changes made in the law after issuance of the securities, as well as uncertainties in the municipal market related to, taxation, legislative changes or the rights of municipal security holders, including in connection with an issuer insolvency. Municipal securities backed by current or anticipated revenues from a specific project or specific assets can be negatively affected by the discontinuance of the tax benefits supporting the project or assets or the inability to collect revenues for the project or from the assets. Municipal securities may be less liquid than taxable bonds, and there may be less publicly available information on the financial condition of municipal security issuers than for issuers of other securities.

 

 

 

100  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Notes to Financial Statements   (continued)

    

 

Infectious Illness Risk: An outbreak of an infectious illness, such as the COVID-19 pandemic, may adversely impact the economies of many nations and the global economy, and may impact individual issuers and capital markets in ways that cannot be foreseen. An infectious illness outbreak may result in, among other things, closed international borders, prolonged quarantines, supply chain disruptions, market volatility or disruptions and other significant economic, social and political impacts.

Valuation Risk: The price a Fund could receive upon the sale of any particular portfolio investment may differ from a Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore a Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. A Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

Counterparty Credit Risk: The Funds may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Funds manage counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Concentration Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a substantial amount of their assets in issuers located in a single state or limited number of states. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political or social conditions affecting that state or group of states could have a significant impact on the fund and could affect the income from, or the value or liquidity of, the fund’s portfolio. Investment percentages in specific states or U.S. territories are presented in the Schedules of Investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Investment percentages in specific sectors are presented in the Schedules of Investments.

The Funds invest a significant portion of their assets in fixed-income securities and/or use derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will decrease as interest rates rise and increase as interest rates fall. The Funds may be subject to a greater risk of rising interest rates due to the recent period of historically low interest rates. The Federal Reserve has recently begun to raise the federal funds rate as part of its efforts to address inflation. There is a risk that interest rates will continue to rise, which will likely drive down the prices of bonds and other fixed-income securities, and could negatively impact the Funds’ performance.

The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

   101

Notes to Financial Statements   (continued)

    

 

11.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

 

 

  
   

Year Ended

05/31/23

           

Year Ended

05/31/22

  
 

 

 

       

 

 

  
Fund Name / Share Class   Shares     Amounts            Shares     Amounts  

 

  

California Municipal Opportunities

           

Institutional

           

Shares sold

     96,231,929     $ 1,128,888,983          78,483,705     $ 982,634,726  

Shares issued in reinvestment of distributions

     3,372,023       39,562,634          2,613,487       33,213,306  

Shares redeemed

     (117,689,708 )      (1,377,420,158 )         (69,750,137 )      (858,877,218 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (18,085,756 )    $ (208,968,541 )         11,347,055     $ 156,970,814  
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor A

           

Shares sold and automatic conversion of shares

     10,726,937     $ 126,343,680          12,050,947     $ 154,784,733  

Shares issued in reinvestment of distributions

     1,491,331       17,474,979          1,213,100       15,424,427  

Shares redeemed

     (25,895,873 )      (303,253,743 )         (21,640,028 )      (273,782,237 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (13,677,605 )    $ (159,435,084 )         (8,375,981 )    $ (103,573,077 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor A1

           

Shares sold

     4     $ 47          —     $ —  

Shares issued in reinvestment of distributions

     116,443       1,366,084          86,172       1,096,465  

Shares redeemed

     (729,558 )      (8,579,281 )         (675,599 )      (8,666,881 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (613,111 )    $ (7,213,150 )         (589,427 )    $ (7,570,416 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor C

           

Shares sold

     367,610     $ 4,343,787          557,617     $ 7,216,496  

Shares issued in reinvestment of distributions

     107,152       1,256,693          70,566       894,260  

Shares redeemed and automatic conversion of shares

     (2,115,208 )      (24,800,299 )         (1,842,830 )      (23,389,502 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (1,640,446 )    $ (19,199,819 )         (1,214,647 )    $ (15,278,746 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Class K

           

Shares sold

     6,244,561     $ 73,318,861          4,303,925     $ 55,630,171  

Shares issued in reinvestment of distributions

     126,328       1,483,231          172,622       2,195,305  

Shares redeemed

     (8,532,267 )      (99,625,925 )         (3,544,245 )      (45,227,249 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (2,161,378 )    $ (24,823,833 )         932,302     $ 12,598,227  
 

 

 

    

 

 

       

 

 

    

 

 

  
    (36,178,296 )    $ (419,640,427 )         2,099,302     $ 43,146,802  
 

 

 

    

 

 

       

 

 

    

 

 

  

 

  
   

Year Ended

05/31/23

           

Year Ended

05/31/22

  
 

 

 

       

 

 

  
Fund Name / Share Class   Shares     Amounts            Shares     Amounts  

 

  

New Jersey Municipal Bond

           

Institutional

           

Shares sold

     7,311,607     $ 74,164,017          4,902,090     $ 54,631,779  

Shares issued in reinvestment of distributions

     436,671       4,417,305          378,971       4,245,371  

Shares redeemed

     (9,314,581 )      (93,972,701 )         (5,726,508 )      (62,106,938 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (1,566,303 )    $ (15,391,379 )         (445,447 )    $ (3,229,788 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Service

           

Shares sold

     226     $ 2,310          17,959     $ 208,861  

Shares issued in reinvestment of distributions

     19,988       202,199          16,180       181,160  

Shares redeemed

     (65,749 )      (672,908 )         (22,797 )      (260,767 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (45,535 )    $ (468,399 )         11,342     $ 129,254  
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor A

           

Shares sold and automatic conversion of shares

     2,222,725     $ 22,574,501          1,655,139     $ 18,512,399  

Shares issued in reinvestment of distributions

     298,802       3,024,217          246,568       2,764,186  

Shares redeemed

     (3,567,502 )      (35,918,580 )         (2,147,759 )      (23,915,053 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (1,045,975 )    $ (10,319,862 )         (246,052 )    $ (2,638,468 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor A1

           

Shares issued in reinvestment of distributions

     30,595     $ 309,769          25,492     $ 285,967  

Shares redeemed

     (160,283 )      (1,612,737 )         (127,982 )      (1,448,072 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (129,688 )    $ (1,302,968 )         (102,490 )    $ (1,162,105 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

 

 

102  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S

Notes to Financial Statements   (continued)

    

 

 

  
   

Year Ended

05/31/23

           

Year Ended

05/31/22

  
 

 

 

       

 

 

  
Fund Name / Share Class (continued)   Shares     Amounts            Shares     Amounts  

 

  

New Jersey Municipal Bond (continued)

           

Investor C

           

Shares sold

     170,876     $ 1,724,832          116,954     $ 1,338,291  

Shares issued in reinvestment of distributions

     32,814       331,737          32,073       359,699  

Shares redeemed and automatic conversion of shares

     (624,357 )      (6,324,275 )         (702,321 )      (7,772,179 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (420,667 )    $ (4,267,706 )         (553,294 )    $ (6,074,189 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Class K

           

Shares sold

     58,199     $ 590,112          75,896     $ 855,041  

Shares issued in reinvestment of distributions

     7,264       73,439          6,936       77,689  

Shares redeemed

     (77,133 )      (774,039 )         (92,848 )      (1,000,095 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (11,670 )    $ (110,488 )         (10,016 )    $ (67,365 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (3,219,838 )    $ (31,860,802 )         (1,345,957 )    $ (13,042,661 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

 

  
   

Year Ended

05/31/23

           

Year Ended

05/31/22

  
 

 

 

       

 

 

  
Fund Name / Share Class   Shares     Amounts            Shares     Amounts  

 

  

Pennsylvania Municipal Bond

           

Institutional

           

Shares sold

     5,978,147     $ 58,227,952          5,785,370     $ 63,633,415  

Shares issued in reinvestment of distributions

     381,833       3,711,770          428,015       4,685,863  

Shares redeemed

     (13,514,976 )      (131,335,547 )         (9,942,737 )      (105,003,672 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (7,154,996 )    $ (69,395,825 )         (3,729,352 )    $ (36,684,394 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Service

           

Shares sold

     3,739     $ 36,890          26,113     $ 291,146  

Shares issued in reinvestment of distributions

     3,091       30,079          4,755       52,191  

Shares redeemed

     (29,323 )      (287,101 )         (107,803 )      (1,115,027 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (22,493 )    $ (220,132 )         (76,935 )    $ (771,690 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor A

           

Shares sold and automatic conversion of shares

     1,300,214     $ 12,786,109          1,869,750     $ 20,830,652  

Shares issued in reinvestment of distributions

     343,990       3,347,233          306,729       3,358,362  

Shares redeemed

     (3,519,802 )      (34,137,743 )         (2,449,797 )      (26,581,633 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (1,875,598 )    $ (18,004,401 )         (273,318 )    $ (2,392,619 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor A1

           

Shares issued in reinvestment of distributions

     14,162     $ 137,858          11,626     $ 127,274  

Shares redeemed

     (109,848 )      (1,072,417 )         (50,823 )      (569,644 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (95,686 )    $ (934,559 )         (39,197 )    $ (442,370 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor C

           

Shares sold

     115,832     $ 1,131,232          88,069     $ 983,649  

Shares issued in reinvestment of distributions

     24,303       236,481          23,480       257,272  

Shares redeemed and automatic conversion of shares

     (487,868 )      (4,760,709 )         (560,257 )      (6,111,562 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (347,733 )    $ (3,392,996 )         (448,708 )    $ (4,870,641 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Class K

           

Shares sold

     502,139     $ 4,903,559          379,523     $ 4,112,899  

Shares issued in reinvestment of distributions

     25,545       248,217          17,601       191,907  

Shares redeemed

     (430,098 )      (4,185,708 )         (194,524 )      (2,046,920 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    97,586     $ 966,068          202,600     $ 2,257,886  
 

 

 

    

 

 

       

 

 

    

 

 

  
    (9,398,920 )    $ (90,981,845 )         (4,364,910 )    $ (42,903,828 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

   103

Notes to Financial Statements   (continued)

    

 

 

  
   

Year Ended

05/31/23

           

Period from

03/14/22(a)

to 05/31/22

  
 

 

 

       

 

 

  
Fund Name / Share Class   Shares
     Amounts
            Shares     Amounts  

 

  

Impact Municipal

           

Institutional

           

Shares sold

     2,776     $ 26,120          10,001     $ 100,010  

Shares issued in reinvestment of distributions

     84       787          —       —  

Shares redeemed

     —       —          (1 )      (10 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    2,860     $ 26,907          10,000     $ 100,000  
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor A

           

Shares sold

     186     $ 1,771          10,001     $ 100,010  

Shares redeemed

     —       —          (1 )      (10 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    186     $ 1,771          10,000     $ 100,000  
 

 

 

    

 

 

       

 

 

    

 

 

  

Class K

           

Shares sold

     6,620     $ 61,326          4,980,001     $ 49,800,010  

Shares issued in reinvestment of distributions

     87       831          —       —  

Shares redeemed

     (2,343 )      (22,152 )         (1 )      (10 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    4,364     $ 40,005          4,980,000     $ 49,800,000  
 

 

 

    

 

 

       

 

 

    

 

 

  
    7,410     $ 68,683          5,000,000     $ 50,000,000  
 

 

 

    

 

 

       

 

 

    

 

 

  

 

  (a)

Commencement of operations.

 

 

 

  
   

Year Ended

05/31/23

           

Year Ended

05/31/22

  
 

 

 

       

 

 

  
Fund Name / Share Class   Shares     Amounts            Shares     Amounts  

 

  

Strategic Municipal Opportunities

           

Institutional

           

Shares sold

     277,486,248     $ 2,901,319,523          221,635,282     $ 2,547,590,478  

Shares issued in reinvestment of distributions

     9,859,278       102,370,654          9,432,340       109,013,179  

Shares redeemed

     (431,090,290 )      (4,477,392,025 )         (247,122,969 )      (2,763,909,335 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (143,744,764 )    $   (1,473,701,848 )         (16,055,347 )    $ (107,305,678 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor A

           

Shares sold and automatic conversion of shares

     19,364,452     $ 202,292,039          23,740,349     $ 276,113,467  

Shares issued in reinvestment of distributions

     2,479,260       25,735,126          2,477,514       28,663,361  

Shares redeemed

     (57,423,715 )      (597,062,188 )         (43,852,452 )      (498,701,220 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (35,580,003 )    $ (369,035,023 )         (17,634,589 )    $ (193,924,392 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor A1

           

Shares sold

     2     $ 22          —     $ —  

Shares issued in reinvestment of distributions

     30,047       311,823          26,819       310,102  

Shares redeemed

     (344,331 )      (3,563,035 )         (135,405 )      (1,561,027 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (314,282 )    $ (3,251,190 )         (108,586 )    $ (1,250,925 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor C

           

Shares sold

     676,624     $ 7,046,623          1,192,372     $ 13,983,719  

Shares issued in reinvestment of distributions

     159,235       1,653,491          151,885       1,752,219  

Shares redeemed and automatic conversion of shares

     (5,696,048 )      (59,346,399 )         (4,343,229 )      (49,911,373 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (4,860,189 )    $ (50,646,285 )         (2,998,972 )    $ (34,175,435 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

Class K

           

Shares sold

     9,609,145     $ 100,482,155          5,755,720     $ 66,750,562  

Shares issued in reinvestment of distributions

     213,670       2,219,662          261,433       3,028,787  

Shares redeemed

     (12,223,513 )      (127,161,730 )         (8,685,680 )      (99,017,904 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (2,400,698 )    $ (24,459,913 )         (2,668,527 )    $ (29,238,555 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    (186,899,936 )    $ (1,921,094,259 )         (39,466,021 )    $ (365,894,985 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  

As of May 31, 2023, shares owned by BlackRock Financial Management, Inc., an affiliate of the Funds, were as follows:

 

       
Fund Name    Institutional      Investor A      Class K

New Jersey Municipal Bond

      —        —      18,124

Impact Municipal

      10,000        10,000      4,980,000

 

 

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Notes to Financial Statements   (continued)

 

12.

SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

 

 

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S

   105

Report of Independent Registered Public Accounting Firm

    

 

To the Shareholders of BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock Pennsylvania Municipal Bond Fund, BlackRock Impact Municipal Fund, and BlackRock Strategic Municipal Opportunities Fund and the Boards of Trustees/Directors of BlackRock California Municipal Series Trust, BlackRock Multi-State Municipal Series Trust, BlackRock Municipal Bond Fund, Inc., and BlackRock Municipal Series Trust:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock California Municipal Opportunities Fund of BlackRock California Municipal Series Trust, BlackRock New Jersey Municipal Bond Fund and BlackRock Pennsylvania Municipal Bond Fund of BlackRock Multi-State Municipal Series Trust, and BlackRock Strategic Municipal Opportunities Fund of BlackRock Municipal Series Trust, including the schedules of investments, as of May 31, 2023, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. We have also audited the accompanying statement of assets and liabilities of BlackRock Impact Municipal Fund of BlackRock Municipal Bond Fund, Inc. (collectively with BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock Pennsylvania Municipal Bond Fund, and BlackRock Strategic Municipal Opportunities Fund, the “Funds”), including the schedule of investments, as of May 31, 2023, the related statement of operations for the year then ended, the statements of changes in net assets and the financial highlights for the year then ended and for the period from March 14, 2022 (commencement of operations) through May 31, 2022, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of BlackRock California Municipal Opportunities Fund, BlackRock New Jersey Municipal Bond Fund, BlackRock Pennsylvania Municipal Bond Fund, and BlackRock Strategic Municipal Opportunities Fund as of May 31, 2023, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of BlackRock Impact Municipal Fund as of May 31, 2023, and the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year then ended and for the period from March 14, 2022 (commencement of operations) through May 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 2023, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Boston, Massachusetts

July 21, 2023

We have served as the auditor of one or more BlackRock investment companies since 1992.

 

 

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Important Tax Information  (unaudited)

    

   

 

The following amounts, or maximum amounts allowable by law, are hereby designated as tax-exempt interest dividends for the fiscal year ended May 31, 2023:

 

   
Fund Name    Exempt-Interest
Dividends		  

California Municipal Opportunities

    $             69,487,933  

New Jersey Municipal Bond

      10,279,750  

Pennsylvania Municipal Bond

      13,037,226  

Impact Municipal

      1,594,796  

Strategic Municipal Opportunities

      147,053,865  

The Fund hereby designates the following amount, or maximum amount allowable by law, as capital gain dividends, subject to a long-term capital gains tax rate as noted below, for the fiscal year ended May 31, 2023:

 

   
Fund Name    20% Rate Long-Term
Capital Gain Dividends		  

Impact Municipal

    $ 144,045  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended May 31, 2023:

 

   
Fund Name   

Interest

Dividends

  

California Municipal Opportunities

    $               3,996,597  

New Jersey Municipal Bond

      12,912  

Pennsylvania Municipal Bond

      18,346  

Impact Municipal

      6,101  

Strategic Municipal Opportunities

      15,649,285  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest-related dividends and qualified short-term capital gains eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended May 31, 2023:

 

     
Fund Name   

Interest

Related

Dividends

       

Qualified

Short-Term

Capital Gains

  

California Municipal Opportunities

    $ 3,996,597        $ —  

New Jersey Municipal Bond

      12,912          —  

Pennsylvania Municipal Bond

      18,346          —  

Impact Municipal

      6,101          5,485  

Strategic Municipal Opportunities

      15,649,285          —  

 

 

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   107

Trustee and Officer Information  

 

 

Independent Trustees(a)
         

Name

Year of Birth(b)

     

Position(s) Held

(Length of Service)(c)

      Principal Occupation(s) During Past 5 Years      Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of Investment
Portfolios (“Portfolios”) Overseen		      Public Company
and Other
Investment
Company
Directorships Held
During
Past 5 Years

R. Glenn Hubbard

1958

     

Chair of the Board (Since 2022)

Trustee

(Since 2019)

      Dean, Columbia Business School from 2004 to 2019; Faculty member, Columbia Business School since 1988.      70 RICs consisting of 101 Portfolios      ADP (data and information services) from 2004 to 2020; Metropolitan Life Insurance Company (insurance); TotalEnergies SE (multi-energy)

W. Carl Kester(d)

1951

     

Vice Chair of the Board (Since 2022)

Trustee

(Since 2019)

      Baker Foundation Professor and George Fisher Baker Jr. Professor of Business Administration, Emeritus, Harvard Business School since 2022; George Fisher Baker Jr. Professor of Business Administration, Harvard Business School from 2008 to 2022; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981.      72 RICs consisting of 103 Portfolios      None

Cynthia L. Egan

1955

     

Trustee

(Since 2019)

      Advisor, U.S. Department of the Treasury from 2014 to 2015; President, Retirement Plan Services, for T. Rowe Price Group, Inc. from 2007 to 2012; executive positions within Fidelity Investments from 1989 to 2007.      70 RICs consisting of 101 Portfolios      Unum (insurance); The Hanover Insurance Group (Board Chair); Huntsman Corporation (Lead Independent Director and non Executive Vice Chair of the Board) (chemical products)

Frank J. Fabozzi(d)

1948

     

Trustee

(Since 2019)

      Editor of The Journal of Portfolio Management since 1986; Professor of Finance, EDHEC Business School (France) from 2011 to 2022; Professor of Practice, Johns Hopkins University since 2021; Professor in the Practice of Finance, Yale University School of Management from 1994 to 2011 and currently a Teaching Fellow in Yale’s Executive Programs; Visiting Professor, Rutgers University for the Spring 2019 semester; Visiting Professor, New York University for the 2019 academic year; Adjunct Professor of Finance, Carnegie Mellon University in fall 2020 semester.      72 RICs consisting of 103 Portfolios      None

Lorenzo A. Flores

1964

     

Trustee

(Since 2021)

      Vice Chairman, Kioxia, Inc. since 2019; Chief Financial Officer, Xilinx, Inc. from 2016 to 2019; Corporate Controller, Xilinx, Inc. from 2008 to 2016.      70 RICs consisting of 101 Portfolios      None

Stayce D. Harris

1959

     

Trustee

(Since 2021)

      Lieutenant General, Inspector General, of the United States Air Force from 2017 to 2019; Lieutenant General, Assistant Vice Chief of Staff and Director, Air Staff, United States Air Force from 2016 to 2017; Major General, Commander, 22nd Air Force, AFRC, Dobbins Air Reserve Base, Georgia from 2014 to 2016; Pilot, United Airlines from 1990 to 2020.      70 RICs consisting of 101 Portfolios      KULR Technology Group, Inc. in 2021; The Boeing Company (airplane manufacturer)

 

 

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Trustee and Officer Information  (continued)

 

 

Independent Trustees(a) (continued)
         

Name

Year of Birth(b)

     

Position(s) Held

(Length of Service)(c)

      Principal Occupation(s) During Past 5 Years      Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of Investment
Portfolios (“Portfolios”) Overseen		      Public Company
and Other
Investment
Company
Directorships Held
During
Past 5 Years

J. Phillip Holloman

1955

     

Trustee

(Since 2021)

      President and Chief Operating Officer, Cintas Corporation from 2008 to 2018.      70 RICs consisting of 101 Portfolios      PulteGroup, Inc. (home construction); Rockwell Automation Inc. (industrial automation)

Catherine A. Lynch(d)

1961

     

Trustee

(Since 2019)

      Chief Executive Officer, Chief Investment Officer and various other positions, National Railroad Retirement Investment Trust from 2003 to 2016; Associate Vice President for Treasury Management, The George Washington University from 1999 to 2003; Assistant Treasurer, Episcopal Church of America from 1995 to 1999.      72 RICs consisting of 103 Portfolios      PennyMac Mortgage Investment Trust
Interested Trustees(a)(e)
         

Name

Year of Birth(b)

     

Position(s) Held

(Length of Service)(c)

      Principal Occupation(s) During Past 5 Years      Number of BlackRock-Advised
Registered Investment Companies
(“RICs”) Consisting of Investment
Portfolios (“Portfolios”) Overseen		     

Public Company
and Other
Investment
Company
Directorships

Held During
Past 5 Years

Robert Fairbairn

1965

     

Trustee

(Since 2015)

      Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016.      98 RICs consisting of 268 Portfolios      None

John M. Perlowski(d)

1964

     

Trustee

(Since 2015)

President and Chief Executive Officer

(Since 2010)

      Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.      100 RICs consisting of 270 Portfolios      None

 

(a) 

The address of each Trustee is c/o BlackRock, Inc., 50 Hudson Yards, New York, NY 10001.

(b) 

Each Independent Trustee holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Trustees who are “interested persons,” as defined in the Investment Company Act serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate.

(c) 

Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Certain Independent Trustees first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Frank J. Fabozzi, 1988; R. Glenn Hubbard, 2004; and W. Carl Kester, 1995. Certain other Independent Trustees became members of the boards of the closed-end funds in the Fixed-Income Complex as follows: Cynthia L. Egan, 2016; and Catherine A. Lynch, 2016.

(d) 

Dr. Fabozzi, Dr. Kester, Ms. Lynch and Mr. Perlowski are also trustees of the BlackRock Credit Strategies Fund and BlackRock Private Investments Fund.

(e) 

Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Corporation/Trust based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex.

 

 

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   109

Trustee and Officer Information  (continued)

 

 

Officers Who Are Not Trustees(a)
     

Name

Year of Birth(b)

     

Position(s) Held

(Length of Service)

      Principal Occupation(s) During Past 5 Years

Jennifer McGovern

1977

     

Vice President

(Since 2014)

     

Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Americas Product Development and Governance for BlackRock’s Global Product Group since 2019; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group from 2013 to 2019.

Trent Walker

1974

     

Chief Financial Officer

(Since 2021)

     

Managing Director of BlackRock, Inc. since September 2019; Executive Vice President of PIMCO from 2016 to 2019; Senior Vice President of PIMCO from 2008 to 2015; Treasurer from 2013 to 2019 and Assistant Treasurer from 2007 to 2017 of PIMCO Funds, PIMCO Variable Insurance Trust, PIMCO ETF Trust, PIMCO Equity Series, PIMCO Equity Series VIT, PIMCO Managed Accounts Trust, 2 PIMCO-sponsored interval funds and 21 PIMCO-sponsored closed-end funds.

Jay M. Fife

1970

     

Treasurer

(Since 2007)

     

Managing Director of BlackRock, Inc. since 2007.

Charles Park

1967

     

Chief Compliance Officer

(Since 2014)

     

Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.

Lisa Belle

1968

     

Anti-Money Laundering Compliance Officer

(Since 2019)

     

Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012.

Janey Ahn

1975

     

Secretary

(Since 2019)

     

Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.

(a) 

The address of each Officer is c/o BlackRock, Inc., 50 Hudson Yards, New York, NY 10001.

(b) 

Officers of the Trust serve at the pleasure of the Board.

Further information about the Trust’s Trustees and Officers is available in the Trust’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

 

 

Effective July 1, 2023, Aaron Wasserman replaced Charles Park as Chief Compliance Officer of the Trusts.

 

 

 

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Additional Information

 

 

Tailored Shareholder Reports for Mutual Funds and ETFs

Effective January 24, 2023, the SEC adopted rule and form amendments to require mutual funds and ETFs to transmit concise and visually engaging streamlined annual and semiannual reports to shareholders that highlight key information. Other information, including financial statements, will no longer appear in a streamlined shareholder report but must be available online, delivered free of charge upon request, and filed on a semiannual basis on Form N-CSR. The rule and form amendments have a compliance date of July 24, 2024. At this time, management is evaluating the impact of these amendments on the shareholder reports for the Funds.

Dividend Policy

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

General Information

Quarterly performance, semi-annual and annual reports, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Householding

The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports, Rule 30e-3 notices and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedules of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at sec.gov. Additionally, each Fund makes its portfolio holdings for the first and third quarters of each fiscal year available at blackrock.com/fundreports.

Availability of Proxy Voting Policies, Procedures and Voting Records

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available without charge, upon request (1) by calling (800) 441-7762; (2) on the BlackRock website at blackrock.com; and (3) on the SEC’s website at sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income and tax-exempt investing. Visit blackrock.com for more information.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

Investor class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

 

 

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   111

Additional Information  (continued)

 

 

Systematic Withdrawal Plans

Investor class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

Fund and Service Providers

 

Investment Adviser   Independent Registered Public Accounting Firm

BlackRock Advisors, LLC

Wilmington, DE 19809

  

Deloitte & Touche LLP

Boston, MA 02116

Accounting Agent and Custodian   Legal Counsel

State Street Bank and Trust Company

Boston, MA 02114

  

Willkie Farr & Gallagher LLP

New York, NY 10019

Transfer Agent   Address of the Funds

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

  

100 Bellevue Parkway

Wilmington, DE 19809

Distributor  

BlackRock Investments, LLC

New York, NY 10001

  

 

 

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Glossary of Terms Used in this Report

 

 

Portfolio Abbreviation

 

AGC    Assured Guaranty Corp.
AGM    Assured Guaranty Municipal Corp.
AGM-CR    AGM Insured Custodial Receipt
AMBAC    AMBAC Assurance Corp.
AMT    Alternative Minimum Tax
ARB    Airport Revenue Bonds
BAB    Build America Bond
BAM    Build America Mutual Assurance Co.
BAM-TCRS    Build America Mutual Assurance Co.- Transferable Custodial Receipts
BHAC-CR    Berkshire Hathaway Assurance Corp. - Custodian Receipt
COP    Certificates of Participation
CR    Custodian Receipt
FHLMC    Federal Home Loan Mortgage Corp.
FNMA    Federal National Mortgage Association
GNMA    Government National Mortgage Association
GO    General Obligation Bonds
GTD    GTD Guaranteed
M/F    Multi-Family
NPFGC    National Public Finance Guarantee Corp.
PSF    Permanent School Fund
Q-SBLF    Qualified School Bond Loan Fund
RB    Revenue Bond
S/F    Single-Family
SAB    Special Assessment Bonds
SAP    Subject to Appropriations
SAW    State Aid Withholding
SONYMA    State of New York Mortgage Agency
ST    Special Tax
TA    Tax Allocation
VRDN    Variable Rate Demand Note

 

 

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   113

 

Want to know more?

blackrock.com | 800-441-7762

This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless preceded or accompanied by the Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

MUNI4-05/23-AR

 

 

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(b) Not Applicable

 

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 registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

 

Item 3 –

Audit Committee Financial Expert – The registrant’s board of trustees (the “board of trustees”), 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

Lorenzo A. Flores

Catherine A. Lynch

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 trustees 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 trustees.

 

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 Fees
                 
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 California Municipal Opportunities Fund       $36,312            $34,884            $44            $420            $19,900            $16,300            $218            $0    

The following table presents fees billed by D&T that were required to be approved by the registrant’s 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 ( the “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 (“Affiliated 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

   $2,154,000   $2,098,000

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3 Non-audit fees of $2,154,000 and $2,098,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(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 Affiliated 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 SEC’s 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.

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, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

 

                     

   Entity Name  

  Current Fiscal  

Year End

  

  Previous Fiscal  

Year End

 

BlackRock California Municipal Opportunities Fund

   $16,720   $13,700

Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

 

    Current Fiscal Year    

End

  

    Previous Fiscal Year    

End

$2,154,000

   $2,098,000

These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Affiliated 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 accountant’s independence.

(i) – Not Applicable

(j) – Not Applicable

 

Item 5 –

Audit Committee of Listed Registrant – Not Applicable

 

Item 6 –

Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

 

Item 7 –

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

 

Item 8 –

Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

 

Item 9 –

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 –

Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

 

Item 11 –

Controls and Procedures

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

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

 

Item 12 –

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

 

Item 13 –

Exhibits attached hereto

(a)(1) Code of Ethics – See Item 2

(a)(2) Section 302 Certifications are attached

(a)(3) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a)(4) Change in Registrant’s independent public accountant – Not Applicable

(b) Section 906 Certifications are attached

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

BlackRock California Municipal Series Trust

 

  By:     

/s/ John M. Perlowski                            

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

Date: July 21, 2023

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

 

  By:     

/s/ John M. Perlowski                            

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

Date: July 21, 2023

 

  By:     

/s/ Trent Walker                            

       Trent Walker
       Chief Financial Officer (principal financial officer) of
       BlackRock California Municipal Series Trust

Date: July 21, 2023