--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISOR
--------------------------------------------------------------------------------
May 31, 2001
Dear Shareholder:
The semi-annual period was marked by the Federal Reserve's aggressive
response to the dramatic U.S. led global economic slowdown. Economic weakness
intensified as Gross Domestic Product ("GDP") growth slowed to a pace of 2% from
3% over the six-month period. The U.S. slowdown was primarily driven by a near
collapse in corporate spending and expansion as profits declined, as well as a
significant reduction of inventories. In the first quarter of 2001, the U.S.
Treasury yield curve steepening of 100 basis points between 2-year and 30-year
Treasuries dominated performance in the fixed income market as the Fed eased the
discount rate 150 basis points over the quarter and then an additional 50 basis
points in April 2001 to 4.50%.
Despite the aggressive Fed easing of interest rates due to concerns that
economic activity may continue to be "unacceptably weak," all high quality
spread sectors outperformed Treasuries over the period.
Since March 2000, there has been an equity market decline of approximately
20%. With no immediate stimulus, this decline will place significant reliance on
monetary policy. Looking forward, we believe the revival of profit growth and
continued robust spending rates by consumers in the face of a negative savings
rate may require a Fed funds rate of 3.5% to 4.0%. A Fed that can move
aggressively as inflationary expectations move down should continue to foster
increased risk tolerances in the market. While the direct beneficiaries of
declining inflation and Treasury surpluses should be short and intermediate
Treasuries, the longer-term beneficiary should be the long-end of the Treasury
market, particularly 15-year to 20-year Treasuries. We believe investors will
more readily embrace high quality spread assets as substitutes for intermediate
Treasuries in the future. We also believe that the GDP growth rate will remain
far below the 5.0% of 2000, as consumers spend less and save more.
This semi-annual report contains a summary of market conditions during the
semi-annual period and a review of portfolio strategy by your Trust's managers
in addition to the Trust's unaudited financial statements and a detailed list of
the portfolio's holdings. Continued thanks for your confidence in BlackRock. We
appreciate the opportunity to help you achieve your long-term investment goals.
Sincerely,
/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
-------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
2
May 31, 2001
Dear Shareholder:
We are pleased to present the unaudited semi-annual report for The
BlackRock California Investment Quality Municipal Trust Inc. ("the Trust") for
the six months ended April 30, 2001. We would like to take this opportunity to
review the Trust's stock price and net asset value (NAV) performance, summarize
market developments and discuss recent portfolio management activity.
The Trust is a non-diversified, actively managed closed-end bond fund whose
shares are traded on the American Stock Exchange under the symbol "RAA". The
Trust's investment objective is to provide high current income that is exempt
from regular federal and California income taxes consistent with the
preservation of capital. The Trust seeks to achieve this objective by investing
in investment grade (rated "AAA" to "BBB" by a major rating agency or of
equivalent quality) municipal debt securities issued by local municipalities
throughout California.
The table below summarizes the changes in the Trust's stock price and NAV
over the past six months:
------------------------------------------------------
4/30/01 10/31/00 CHANGE HIGH LOW
--------------------------------------------------------------------------------
STOCK PRICE $15.10 $14.00 7.86% $15.35 $13.25
--------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $14.77 $14.62 1.03% $15.11 $14.59
--------------------------------------------------------------------------------
THE FIXED INCOME MARKETS
Investor hopes for a soft landing quickly turned to fears of a recession as
the U.S. economy rapidly deteriorated over the first part of the period. This
economic weakness intensified in the beginning of 2001 as GDP growth slowed over
the six-month period to 2% from 3%. Increasing pressure on corporate profits
restrained investment spending, subsequently reducing the demand for capital
goods and output. Despite eroding consumer confidence, slower economic growth,
mounting layoffs, and the reduction of over $5 trillion of wealth from the
decline of the equity markets from their early year 2000 highs, the consumer
remains relatively resilient. According to the minutes of the April 18, 2001
Federal Open Market Committee meeting, "Capital investment has continued to
soften and the persistent erosion in current and expected profitability, in
combination with rising uncertainty about the business outlook, seems poised to
dampen capital spending going forward. This potential restraint, together with
the possible effects of earlier reductions in equity wealth on consumption and
the risk of slower growth abroad, threatens to keep the pace of economic
activity unacceptably weak." Over the period, the Federal Reserve aggressively
lowered the discount rate by a total of 2.00% to bring the current discount rate
to 4.50%. Additionally, at the May meeting, the Fed cut rates by 50 basis points
for the fifth time this year.
U.S. Treasury yields began to regain their characteristic slopes in the
beginning of the period after nearly a year of inversion caused by $30 billion
of Treasury buybacks and multiple Federal Reserve tightenings. The 2-year
Treasury note rallied in response to a slumping economy and a volatile equity
market. The markets have been further supported by Fed actions, which cut rates
by 50 basis points on four occasions over the period. The yield curve at the end
of the period reflected expectations of another 100 basis points of easing by
September. As of April 30, 2001, the 10-year Treasury was yielding 5.34% versus
5.75% on October 31, 2000.
On a tax-adjusted basis, municipal bonds outperformed the taxable domestic
bond market for the semi-annual period ending April 30, 2001, returning 7.27%
(as measured by the LEHMAN MUNICIPAL INDEX at a tax bracket of 39.6%) versus the
LEHMAN AGGREGATE INDEX'S 6.22%. Throughout this period, municipals performed in
line with spread products and Treasuries. Municipals benefited from retail's
continued efforts to diversify out of equities and into fixed income
investments. In a dramatic reversal from most of 2000, the semi-annual period
finally saw municipal mutual fund portfolios experience positive cash flows. The
retail market took a renewed interest in municipals driven primarily by the
turmoil experienced in equities, while institutional demand for municipal
securities increased as investors looked for attractive after tax yields vs.
Treasuries without the inherent credit risk associated with corporate bonds. As
a result of falling interest rates during the second half of the period, new
issue supply rose substantially above last year's pace.
California's dynamic economic expansion continued through 2000 and into
2001. This growth will be challenged now by rising energy costs, the fall in the
NASDAQ and weakening demand in the computer service industries. In April 2001,
the unem
2
ployment rate was 4.8%, lower than the 5.0% of a year ago but slightly up from
February's 4.5% level. The State is beginning to see a decline in growth as
evidenced by fewer new jobs being created although employment still continues to
grow.
The State of California's year-to-date revenues are slightly above
projected levels. However, in March 2001 personal income tax, sales tax and
corporate tax receipts were slightly below budget, additional evidence of a
slowing economy. Furthermore, since January the State has been using its General
Fund surplus to purchase energy for the States' three crippled utilities and to
date it has expended over $6 billion. In response to the energy crisis, Moody's
Investors Services and Standard & Poor's have lowered California's credit rating
to Aa3/A+ from Aa2/AA and the credit outlook remains negative on the State's
general obligation bonds. We are monitoring our California State holdings and
watching the energy impact on the economy and local issuers.
THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY
The Trust's portfolio is actively managed to diversify exposure to various
sectors, issuers, revenue sources and security types. BlackRock's investment
strategy emphasizes a relative value approach, which allows the Trust to
capitalize upon changing market conditions by rotating municipal sectors,
credits and coupons.
Additionally, the Trust employs leverage to enhance its income by borrowing
at short-term municipal rates and investing the proceeds in longer maturity
issues that have higher yields. The degree to which the Trust can benefit from
its use of leverage may affect its ability to pay high monthly income. At the
end of the period, the Trust's leverage amount was 34% of total assets.
Municipals outperformed most spread products on a tax-adjusted basis during
the period, except on the short-end of the yield curve. The curve steepened over
the period and the 20-year to 25-year part of the curve remains very steep on a
historical basis. We remain overweight in premium coupon securities in an effort
to avoid market discount problems. Premium coupon securities offer better price
performance during periods of falling interest rates, and similar performance to
discounts when interest rates rise. Retail demand improved at the end of the
period, primarily for bonds 15-years or longer.
The following charts compare the Trust's current and October 31, 2000 asset
composition and credit quality allocations:
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR APRIL 30, 2001 OCTOBER 31, 2000
--------------------------------------------------------------------------------
Transportation 22% 22%
--------------------------------------------------------------------------------
Lease 17% 17%
--------------------------------------------------------------------------------
University 15% 15%
--------------------------------------------------------------------------------
District 10% 10%
--------------------------------------------------------------------------------
Power 9% 9%
--------------------------------------------------------------------------------
Housing 8% 8%
--------------------------------------------------------------------------------
City, County & State 5% 5%
--------------------------------------------------------------------------------
Student Loans 5% 5%
--------------------------------------------------------------------------------
Water & Sewer 5% 5%
--------------------------------------------------------------------------------
Industrial 2% 2%
--------------------------------------------------------------------------------
School 2% 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT RATING* APRIL 30, 2001 OCTOBER 31, 2000
--------------------------------------------------------------------------------
AAA/Aaa 67% 66%
--------------------------------------------------------------------------------
AA/Aa 28% 29%
--------------------------------------------------------------------------------
BBB/Baa 5% 5%
--------------------------------------------------------------------------------
----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
3
We look forward to continuing to manage the Trust to benefit from the
opportunities available to investors in the investment grade municipal market.
We thank you for your investment and continued interest in The BlackRock
California Investment Quality Municipal Trust Inc. Please feel free to call our
marketing center at (800) 227-7BFM (7236) if you have any specific questions
which were not addressed in this report.
Sincerely,
/s/ Robert S. Kapito /s/ Kevin M. Klingert
----------------------------------- ---------------------------------------
Robert S. Kapito Kevin M. Klingert
Vice Chairman and Portfolio Manager Managing Director and Portfolio Manager
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
--------------------------------------------------------------------------------
Symbol on American Stock Exchange: RAA
--------------------------------------------------------------------------------
Initial Offering Date: May 28, 1993
--------------------------------------------------------------------------------
Closing Stock Price as of 4/30/01: $15.10
--------------------------------------------------------------------------------
Net Asset Value as of 4/30/01: $14.77
--------------------------------------------------------------------------------
Yield on Closing Stock Price as of 4/30/01 ($15.10)(1): 5.22%
--------------------------------------------------------------------------------
Current Monthly Distribution per Share(2): $ 0.065625
--------------------------------------------------------------------------------
Current Annualized Distribution per Share(2): $ 0.7875
--------------------------------------------------------------------------------
(1) Yield on Closing Stock Price is calculated by dividing the current
annualized distribution per share by the closing stock price per share.
(2) Distribution is not constant and is subject to change.
PRIVACY PRINCIPLES OF THE TRUST
The Trust is committed to maintaining the privacy of shareholders and to
safeguarding its non-public personal information. The following information is
provided to help you understand what personal information the Trust collects,
how we protect that information and why, in certain cases, we may share
information with select other parties.
Generally, the Trust does not receive any non-public personal information
relating to its shareholders, although certain nonpublic personal information of
its shareholders may become available to the Trust. The Trust does not disclose
any non-public personal information about its shareholders or former
shareholders to anyone, except as permitted by law or as is necessary in order
to service shareholder accounts (for example, to a transfer agent or third party
administrator).
The Trust restricts access to non-public personal information about the
shareholders to BlackRock employees with a legitimate business need for the
information. The Trust maintains physical, electronic and procedural safeguards
designed to protect the non-public personal information of its shareholders.
4
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 2001 (UNAUDITED)
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
----------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--147.8%
California Educational Fac. Auth. Rev., MBIA,
AAA $ 760++ Santa Clara Univ., 5.00%, 9/01/06 .............................. N/A $ 812,964
AAA 240 Santa Clara Univ., 5.00%, 9/01/15 .............................. 9/06 at 102 240,120
AAA 1,000 Student Loan Prog., Ser. A, 6.00%, 3/01/16 ..................... 3/07 at 102 1,037,890
California St. G.O.,
Aa3 960++ 5.75%, 3/01/05 ................................................. N/A 1,036,857
Aa3 40 5.75%, 3/01/19 ................................................. 3/05 at 101 41,645
California St. Hsg. Fin. Agcy. Rev., Home Mtge.,
Aa2 650 Ser. B-1, 6.45%, 2/01/11 ....................................... 8/04 at 102 683,313
Aa2 1,000 Ser. G, 7.20%, 8/01/14 ......................................... 8/04 at 102 1,057,350
California St. Pub. Wks Brd. Lease Rev.,
AAA 1,000++ Dept. of Corrections, Ser. A, 6.875%, 11/01/04 ................. N/A 1,124,640
A1 1,000 St. Univ. Proj., Ser. A, 6.10%, 10/01/06 ....................... 10/04 at 102 1,075,120
AAA 1,000++ St. Univ. Proj., Ser. A, 6.40%, 12/01/02, AMBAC ................ N/A 1,067,360
AAA 1,385 Foothill / Eastern Trans. Agcy., Ser. A, Zero Coupon, 1/01/04 ... No Opt. Call 1,248,411
Los Angeles Cnty.,
AAA 1,000++ Met. Trans. Auth. Sales Tax Rev., 6.00%, 7/01/06, MBIA ......... N/A 1,106,440
AAA 1,000 Special Tax, Ser. A, 5.50%, 9/01/14, FSA ....................... 9/07 at 102 1,044,870
A3 1,150 Los Angeles Harbor Dept. Rev., Ser. B, 6.00%, 8/01/13 ........... 8/06 at 101 1,239,045
A3 1,000++ Los Angeles Pub. Wks. Fin. Auth. Rev., Regl. Park & Open Space,
Dist. A, 6.00%, 10/01/04 ....................................... N/A 1,094,400
BBB- 1,000 Sacramento Pwr. Auth., Cogeneration Proj. Rev., 6.50%, 7/01/09 .. 7/06 at 102 1,091,230
AAA 500 San Diego Ind. Dev. Rev., Ser. A, 5.90%, 6/01/18, AMBAC ......... 6/03 at 102 507,840
San Francisco City & Cnty.,
AAA 150 Arpt. Comn. Rev., Intl. Arpt., Ser. 12-A, 5.90%, 5/01/26, MBIA . 5/06 at 101 156,810
AAA 1,000 Arpt. Comn. Rev., Intl. Arpt., Ser. 6, 6.125%, 5/01/09, AMBAC .. 5/04 at 102 1,066,040
AAA 1,000 Sewer Rev., Ser. A, 5.95%, 10/01/25, FGIC ...................... 10/03 at 102 1,036,290
AAA 1,000 Southern California Pub. Pwr. Auth. Transmission Proj. Rev.,
5.50%, 7/01/20, MBIA ........................................... 7/02 at 100 1,013,050
AAA 500 Temecula Valley Univ. Schl. Dist., Ser. G, 5.75%, 8/01/25, FGIC . 8/07 at 102 528,220
Univ. of California Rev.,
AAA 1,135++ Ser. B, 6.30%, 9/01/03 ......................................... N/A 1,230,862
AAA 1,000++ Ser. D, 6.10%, 9/01/02, MBIA ................................... N/A 1,056,120
AAA 370 West Basin Municipal Water Dist. Rev., C.O.P., Ser. A,
5.50%, 8/01/22, AMBAC .......................................... 8/07 at 101 379,365
----------
See Notes to Financial Statements.
5
----------------------------------------------------------------------------------------------------------------------
VALUE
DESCRIPTION (NOTE 1)
----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--147.8% (COST $20,262,123) .................... $21,976,252
Other assets in excess of liabilities--2.6% ..................... 395,767
Liquidation value of preferred stock--(50.4)% ................... (7,500,000)
-----------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% .............. $14,872,019
===========
----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating
+ Option call provisions: date (month/year) and prices of the earliest
optional call on redemption. There may be other call provisions at varying
prices at later dates.
++ This bond is prerefunded. See Glossary for definitions.
--------------------------------------------------------------------------------
KEY TO ABBREVIATIONS:
AMBAC -- American Municipal Bond Assurance Corporation
C.O.P. -- Certificate of Participation
FGIC -- Financial Guaranty Insurance Company
FSA -- Financial Security Assurance
G.O. -- General Obligation
MBIA -- Municipal Bond Insurance Association
--------------------------------------------------------------------------------
See Notes to Financial Statements.
6
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2001 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $20,262,123) (Note 1) ............... $21,976,252
Cash ............................................................ 205,761
Interest receivable ............................................. 300,599
Other assets .................................................... 3,241
-----------
22,485,853
-----------
LIABILITIES
Dividends payable--common stock ................................. 66,091
Dividends payable--preferred stock .............................. 3,902
Advisory fee payable (Note 2) ................................... 6,489
Administration fee payable (Note 2) ............................. 1,854
Other accrued expenses .......................................... 35,498
-----------
113,834
-----------
NET INVESTMENT ASSETS ........................................... $22,372,019
===========
Net investment assets were comprised of:
Common Stock:
Par value (Note 4) .......................................... $ 10,071
Paid-in capital in excess of par ............................ 13,897,103
Preferred stock (Note 4) ...................................... 7,500,000
-----------
21,407,174
Undistributed net investment income ........................... 27,021
Accumulated net realized loss ................................. (776,305)
Net unrealized appreciation ................................... 1,714,129
-----------
Net investment assets, April 30, 2001 ........................... $22,372,019
===========
Net assets applicable to common shareholders .................... $14,872,019
===========
Net asset value per share:
($14,872,019 / 1,007,093 shares of
common stock issued and outstanding) .......................... $14.77
======
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2001 (UNAUDITED)
--------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest and discount earned .................................. $ 631,757
---------
Expenses
Investment advisory ........................................... 39,117
Administration ................................................ 11,176
Auction agent ................................................. 9,000
Transfer agent ................................................ 6,000
Directors ..................................................... 6,000
Reports to shareholders ....................................... 5,000
Legal ......................................................... 3,000
Independent accountants ....................................... 3,000
Custodian ..................................................... 2,000
Miscellaneous ................................................. 13,348
---------
Total expenses ................................................ 97,641
---------
Net investment income ........................................... 534,116
---------
UNREALIZED GAIN ON INVESTMENTS
Net change in unrealized appreciation on
investments ................................................... 131,710
---------
NET INCREASE IN NET INVESTMENT ASSETS
RESULTING FROM OPERATIONS ....................................... $ 665,826
=========
See Notes to Financial Statements.
7
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
APRIL 30, OCTOBER 31,
2001 2000
------------- ------------
INCREASE (DECREASE) IN INVESTMENT ASSETS
OPERATIONS:
Net investment income ............................................... $ 534,116 $ 1,062,983
Net change in unrealized appreciation on investments ................ 131,710 298,860
----------- -----------
Net increase in net investment assets resulting from operations ..... 665,826 1,361,843
DIVIDENDS:
To common shareholders from net investment income ................... (396,483) (823,217)
To preferred shareholders from net investment income ................ (122,289) (252,518)
----------- -----------
Total dividends ..................................................... (518,772) (1,075,735)
----------- -----------
Total increase .................................................... 147,054 286,108
NET INVESTMENT ASSETS
Beginning of period ................................................... 22,224,965 21,938,857
----------- -----------
End of period (including undistributed net investment income
of $27,021 and $11,677, respectively) ............................... $22,372,019 $22,224,965
=========== ===========
See Notes to Financial Statements.
8
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
SIX MONTHS ENDED -----------------------------------------------------
APRIL 30, 2001 2000 1999 1998 1997 1996
---------------- ------- ------- ------- ------- -------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period .................... $ 14.62 $ 14.34 $ 15.49 $ 14.77 $ 14.20 $ 13.85
------- ------- ------- ------- ------- -------
Net investment income ................................. .53 1.06 1.05 1.05 1.07 1.08
Net realized and unrealized gain (loss)
on investments ........................................ .13 .29 (1.10) .79 .61 .33
------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations ...... .66 1.35 (0.05) 1.84 1.68 1.41
------- ------- ------- ------- ------- -------
Dividends and Distributions:
Dividends from net investment income to:
Common shareholders ................................. (.39) (.82) (.88) (.88) (.87) (.80)
Preferred shareholders .............................. (.12) (.25) (.22) (.24) (.24) (.25)
Distributions in excess of net realized gains
on investments to:
Common shareholders ................................. -- -- -- -- ** (.01)
Preferred shareholders .............................. -- -- -- -- ** **
------- ------- ------- ------- ------- -------
Total dividends and distributions ....................... (.51) (1.07) (1.10) (1.12) (1.11) (1.06)
------- ------- ------- ------- ------- -------
Net asset value, end of period* ......................... $ 14.77 $ 14.62 $ 14.34 $ 15.49 $ 14.77 $ 14.20
======= ======= ======= ======= ======= =======
Market value, end of period* ............................ $ 15.10 $ 14.00 $ 15.50 $16.125 $ 15.00 $ 13.50
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN+: ............................... 10.77% (4.33)% 1.52% 13.70% 17.98% 13.80%
======= ======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS++:
Expenses ................................................ 1.31%+++ 1.41% 1.34% 1.36% 1.32% 1.42%
Net investment income before
preferred stock dividends ............................. 7.19%+++ 7.36% 6.95% 6.93% 7.48% 7.78%
Preferred stock dividends ............................... 1.65%+++ 1.75% 1.47% 1.60% 1.70% 1.82%
Net investment income available to
common shareholders ................................... 5.54%+++ 5.61% 5.48% 5.33% 5.78% 5.96%
SUPPLEMENTAL DATA:
Average net assets of common
shareholders (in thousands) ........................... $14,976 $14,450 $15,170 $15,265 $14,445 $13,996
Portfolio turnover 0% 0% 4% 0% 28% 72%
Net assets of common shareholders, end of period
(in thousands) ........................................ $14,872 $14,725 $14,439 $15,595 $14,873 $14,296
Asset coverage per share of preferred
stock, end of period .................................. $74,586 $74,097 $73,138 $76,990 $74,583 $72,654
Preferred stock outstanding (in thousands) .............. $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500
----------
* Net asset value and market value are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
** Actual amount paid for the year ended October 31, 1997 to common
shareholders was $0.00056 per share and to preferred shareholders was
$0.00018 per common share. Actual amount paid to preferred shareholders for
the year ended October 31, 1996 was $0.0048 per common share.
+ Total investment return is calculated assuming a purchase of common stock at
the current market price on the first day and a sale at the current market
price on the last day of the period reported. Dividends and distributions,
if any, are assumed for purposes of this calculation to be reinvested at
prices obtained under the Trust's dividend reinvestment plan. This
calculation does not reflect brokerage commissions. Total investment returns
for periods of less than one year are not annualized.
++ Ratios are calculated on the basis of income and expenses applicable to both
the common and preferred shares relative to the average net assets of common
shareholders.
+++ Annualized.
The information above represents the unaudited operating performance data for a
share of common stock outstanding, total investment return, ratio to average net
assets and other supplemental data for the periods indicated. This information
has been determined based upon financial information provided in the financial
statements and market value data for the Trust's common stock.
See Notes to Financial Statements.
9
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
NOTE 1. ORGANIZATION The BlackRock California Investment Quality Municipal
& ACCOUNTING Trust Inc. (the "Trust") was organized in Maryland on
POLICIES April 12, 1993 as a non-diversified closed-end
management investment company. The Trust's investment
objective is to manage a portfolio of investment quality securities while
providing high current income exempt from regular Federal and California state
income taxes consistent with the preservation of capital. The ability of issuers
of debt securities held by the Trust to meet their obligations may be affected
by economic developments in the state, a specific industry or region. No
assurance can be given that the Trust's investment objective will be achieved.
The following is a summary of significant accounting policies followed by the
Trust.
SECURITIES VALUATION: Municipal securities (including commitments to purchase
such securities on a "when-issued" basis) are valued on the basis of prices
provided by dealers or pricing services approved by the Trust's Board of
Directors. In determining the value of a particular security, pricing services
may use certain information with respect to transactions in such securities
quotations from bond dealers, market transactions in comparable securities and
various relationships between securities. Short-term securities are valued at
amortized cost. Any securities or other assets for which such current market
quotations are not readily available are valued at fair value as determined in
good faith under procedures established by and under the general supervision and
responsibility of the Trust's Board of Directors.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis and the Trust accretes original issue discount or amortizes
premium on securities purchased using the interest method.
FEDERAL INCOME TAXES: It is the Trust's intention to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute sufficient net income to shareholders. For this
reason and because substantially all of the Trust's gross income consists of
tax-exempt interest, no Federal income tax provision is required.
DIVIDENDS AND DISTRIBUTIONS: The Trust declares and pays dividends and
distributions to common shareholders monthly from net investment income, net
realized short-term capital gains and other sources, if necessary. Net long-term
capital gains, if any, in excess of loss carryforwards may be distributed
annually. Dividends and distributions are recorded on the ex-dividend date.
Dividends and distributions to preferred shareholders are accrued and determined
as described in Note 4.
ESTIMATES: The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
DEFERRED COMPENSATION PLAN: Under a deferred compensation plan approved by the
Board of Directors on February 24, 2000, non-interested Directors may elect to
defer receipt of all or a portion of their annual compensation.
Deferred amounts earn a return as though equivalent dollar amounts had been
invested in common shares of other BlackRock funds selected by the Directors.
This has the same economic effect as if the Directors had invested the deferred
amounts in such other BlackRock funds.
The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Trust. The
Trust may, however, elect to invest in common shares of those funds selected by
the Directors in order to match its deferred compensation obligations.
NEW ACCOUNTING POLICIES: The Trust will adopt the provisions of the AICPA Audit
and Accounting Guide for Investment Companies, as revised, effective for fiscal
years beginning after December 15, 2000. As required, the Trust will begin
amortizing discounts on debt securities effective November 1, 2000. Prior to
this date, the Trust amortized premiums and original issue discount on debt
securities but did not amortize market discount. The cumulative effect of this
accounting change will have no impact on the total net assets of the Trust. The
impact of this accounting change is anticipated to have an immaterial effect on
the financial statements and will result in an increase to cost of securities
and a corresponding decrease in net unrealized appreciation, based on securities
held as of October 31, 2000.
NOTE 2. AGREEMENTS The Trust has an Investment Advisory Agreement with
BlackRock Advisors, Inc., which is a wholly-owned
subsidiary of BlackRock, Inc., which in turn is an
indirect, majority-owned
10
subsidiary of PNC Financial Services Group, Inc. The Trust has an Administration
Agreement with Prudential Investments Fund Management LLC ("PIFM"), an indirect,
wholly-owned subsidiary of The Prudential Insurance Company of America.
The investment advisory fee paid to the Advisor is computed weekly and
payable monthly at an annual rate of 0.35% Of the Trust's average weekly net
investment assets. The administration fee paid to PIFM is also computed weekly
and payable monthly at an annual rate of 0.10% Of the Trust's average weekly net
investment assets.
Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of the officers of the Trust
who are affiliated persons of the Advisor. PIFM pays occupancy and certain
clerical and accounting costs of the Trust. The Trust bears all other costs and
expenses.
NOTE 3. PORTFOLIO Sales of investment securities other than short-term
SECURITIES investments, for the six months ended April 30, 2001
aggregated $50,000. There were no purchases for the same
period.
The Federal income tax basis of the Trust's investments at April 30, 2001 was
substantially the same as the basis for financial reporting purposes and,
accordingly, net and gross unrealized appreciation was $1,714,129.
For Federal income tax purposes, the Trust had a capital loss carryforward at
October 31, 2000 of approximately $773,000 which will expire in 2002.
Accordingly, no capital gain distribution is expected to be paid to shareholders
until net gains have been realized in excess of such amount.
NOTE 4. CAPITAL There are 200 million shares of $.01 par value common
stock authorized. The Trust may classify or reclassify
any unissued shares of common stock into one or more series of preferred stock.
Of the 1,007,093 common shares outstanding at April 30, 2001, the Advisor owned
7,093 shares. As of April 30, 2001 there were 300 shares of preferred Stock
Series W7 outstanding.
Dividends on Series W7 are cumulative at a rate which is reset every 7 days
based on the results of an auction. Dividend rates ranged from 2.50% to 4.19%
during the six months ended April 30, 2001.
The Trust may not declare dividends or make other distributions on common
shares or purchase any such shares if, at the time of the declaration,
distribution, or purchase, asset coverage with respect to the outstanding
preferred stock would be less than 200%.
The preferred stock is redeemable at the option of the Trust, in whole or in
part, on any dividend payment date at $25,000 per share plus any accumulated or
unpaid dividends whether or not declared. The preferred stock is also subject to
mandatory redemption at $25,000 per share plus any accumulated or unpaid
dividends, whether or not declared if certain requirements relating to the
composition of the assets and liabilities of the Trust as set forth in the
Articles of Incorporation are not satisfied.
The holders of preferred stock have voting rights equal to the holders of
common stock (one vote per share) and will vote together with holders of shares
of common stock as a single class. However, holders of preferred stock are also
entitled to elect two of the Trust's directors. In addition, the Investment
Company Act of 1940 requires that along with approval by stockholders that might
otherwise be required, and the approval of the holders of a majority of any
outstanding preferred stock, voting separately as a class would be required to
(a) adopt any plan of reorganization that would adversely affect the preferred
stock and (b) take any action requiring a vote of security holders, including,
among other things, changes in the Trust's subclassification as a closed-end
investment company or changes in its fundamental investment restrictions.
NOTE 5. DIVIDENDS Subsequent to April 30, 2001, the Board of Directors of
the Trust declared a dividend from undistributed
earnings of $0.065625 per common share payable June 1, 2001 to shareholders of
record on May 15, 2001.
For the period May 1, 2001 to May 31, 2001, dividends declared on Preferred
Stock totalled $18,974 in aggregate for the outstanding preferred stock.
11
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
DIVIDEND REINVESTMENT PLAN
--------------------------------------------------------------------------------
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"), common
shareholders are automatically enrolled to have all distributions of dividends
and capital gains reinvested by State Street Bank and Trust Company (the "Plan
Agent") in Trust shares pursuant to the Plan. Shareholders who elect not to
participate in the Plan will receive all distributions in cash paid by check in
United States dollars mailed directly to the shareholders of record (or if the
shares are held in street or other nominee name, then to the nominee) by the
transfer agent, as dividend disbursing agent.
The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will, as agent for the participants, receive the
cash payment and use it to buy Trust shares in the open market on the American
Stock Exchange or elsewhere for the participants' accounts. The Trust will not
issue any new shares under the Plan.
Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment will be made for any fraction of a Trust share.
The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any Federal income tax that may be payable on
such dividends or distributions.
The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The addresses are on the front of this report.
12
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
Quarterly performance and other information regarding the Trust may be
found on BlackRock's website, which can be accessed at
http://www.blackrock.com/funds/cefunds.html. This reference to BlackRock's
website is intended to allow investors public access to quarterly information
regarding the Trust and is not intended to incorporate BlackRock's website into
this report.
ANNUAL MEETING OF TRUST SHAREHOLDERS.
There have been no material changes in the Trust's investment objectives
or policies that have not been approved by the shareholders or to its charter or
by-laws or in the principal risk factors associated with investment in the
Trust. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trust's portfolio.
The Annual Meeting of Shareholders was held May 24, 2001 to vote on the
following matter:
To elect two Directors as follows:
DIRECTOR CLASS TERM EXPIRING
-------- ----- ---- --------
Richard E. Cavanagh ........... I 3 years 2004
James Clayburn La Force, Jr. .. I 3 years 2004
Directors whose term of office continues beyond this meeting are
Andrew F. Brimmer, Kent Dixon, Frank J. Fabozzi, Laurence D. Fink,
Walter F. Mondale and Ralph L. Schlosstein.
Shareholders elected the two Directors. The results of the voting were as
follows:
VOTES FOR VOTES AGAINST ABSTENTIONS
--------- ------------- -----------
Richard E. Cavanagh ........... 300 -- --
James Clayburn La Force, Jr.... 663,785 -- 17,038
13
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
INVESTMENT SUMMARY
--------------------------------------------------------------------------------
THE TRUST'S INVESTMENT OBJECTIVE
The BlackRock California Investment Quality Municipal Trust's investment
objective is to provide high current income exempt from regular Federal and
California income tax consistent with the preservation of capital.
WHO MANAGES THE TRUST?
BlackRock Advisors, Inc. (the "Advisor") manages the Trust. The Advisor is a
wholly-owned subsidiary of BlackRock, Inc. ("BlackRock"), which is one of the
largest publicly traded investment management firms in the United States with
$202 billion of assets under management as of March 31, 2001. BlackRock manages
assets on behalf of more than 3,300 institutions and 200,000 individuals
worldwide, including nine of the ten largest companies in the U.S. as determined
by Fortune Magazine, through a variety of equity, fixed income, liquidity and
alternative investment separate accounts and mutual funds, including the
BLACKROCK FUNDS and BLACKROCK PROVIDENT INSTITUTIONAL FUNDS. In addition,
BlackRock provides risk management and technology services to a growing number
of institutional investors under the BLACKROCK SOLUTIONS name. Clients are
served from BlackRock's headquarters in New York City, as well as offices in
Wilmington, DE, Edinburgh, Scotland, Tokyo, Japan, and Hong Kong. BlackRock is a
member of The PNC Financial Services Group, Inc. ("PNC"), one of the largest
diversified financial services organizations in the United States, and is
majority-owned by PNC and by BlackRock employees.
WHAT CAN THE TRUST INVEST IN?
Under normal conditions, the Trust expects to continue to manage its assets so
that at least 80% of its investments are rated at least investment grade
("BBB"by Standard & Poor's or "Baa" by Moody's Investor Services) and up to 20%
of its assets may instead be deemed to be of equivalent credit quality by the
Advisor. The Trust intends to invest substantially all of the assets in a
portfolio of investment grade California Municipal Obligations, which include
debt obligations issued by or on behalf of California, its political
subdivisions, agencies and instrumentalities and by other qualifying issuers
that pay interest which, in the opinion of the bond counsel of the issuer, is
exempt from regular Federal and California income tax. California Municipal
Obligations are issued to obtain funds for various public functions, including
the construction of public facilities, the refinancing of outstanding
obligations, the obtaining of funds for general operating expenses and for loans
to other public institutions and facilities.
WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?
The Advisor will manage the assets of the Trust in accordance with the Trust's
investment objective and policies to seek to achieve its objective by investing
in investment grade California Municipal Obligations or other qualifying
issuers. The Advisor actively manages the assets in relation to market
conditions and interest rate changes. Depending on yield and portfolio
allocation considerations, the Advisor may choose to invest a portion of the
Trust's assets in securities which pay interest that is subject to
AMT(alternative minimum tax). The Trust intends to emphasize investments in
California municipal obligations with long-term maturities and expects to
maintain an average portfolio maturity of 15-20 years, but the average maturity
may be shortened or lengthened from time to time depending on market conditions.
Under current market conditions the use of leverage increases the income earned
by the Trust. The Trust employs leverage primarily through the issuance of
preferred stock. Preferred stockholders will receive dividends based on
short-term rates in exchange for allowing the Trust to borrow additional assets.
These assets will be invested in longer-term assets which typically offer higher
interest rates and the difference between the cost of the dividends paid to
preferred stockholders and the interest earned on the longer-term securities
will provide higher income levels for common stockholders in most interest rate
environments. See "Leverage Considerations in the Trust" below.
14
HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY?
The Trust's common shares are traded on the American Stock Exchange which
provides investors with liquidity on a daily basis. Orders to buy or sell shares
of the Trust must be placed through a registered broker or financial advisor.
The Trust pays monthly dividends which are typically paid on the first business
day of the month. For shares held in the shareholder's name, dividends may be
reinvested in additional shares of the Trust through its transfer agent, State
Street Bank and Trust Company. Investors who wish to hold shares in a brokerage
account should check with their financial advisor to determine whether their
brokerage firm offers dividend reinvestment services.
LEVERAGE CONSIDERATIONS IN THE TRUST
Leverage increases the duration (or price sensitivity of the net assets with
respect to changes in interest rates) of the Trust, which can improve the
performance of the fund in a declining rate environment, but can cause net
assets to decline faster than the market in a rapidly rising interest rate
environment. The Trust may reduce, or unwind, the amount of leverage employed
should the Advisor consider that reduction to be in the best interests of the
Trust. The Advisor's portfolio managers continuously monitor and regularly
review the Trust's use of leverage and maintain the ability to unwind the
leverage if that course is chosen.
SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO THE TRUST
THE TRUST IS INTENDED TO BE A LONG-TERM INVESTMENT AND IS NOT A SHORT-TERM
TRADING VEHICLE.
INVESTMENT OBJECTIVE. Although the objective of the Trust is to provide high
current income exempt from regular Federal and California income tax consistent
with the preservation of capital, there can be no assurance that this objective
will be achieved.
DIVIDEND CONSIDERATIONS. The income and dividends paid by the Trust are likely
to vary over time as fixed income market conditions change. Future dividends may
be higher or lower than the dividend the Trust is currently paying.
LEVERAGE. The Trust utilizes leverage through the issuance of preferred stock,
which involves special risks. The Trust's net asset value and market value may
be more volatile due to its use of leverage.
MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trust trade on the American Stock Exchange (AMEX symbol: RAA) and as such
are subject to supply and demand influences. As a result, shares may trade at a
discount or a premium to their net asset value.
INVESTMENT GRADE MUNICIPAL OBLIGATIONS. The value of municipal debt securities
generally varies inversely with changes in prevailing market interest rates.
Depending on the amount of call protection that the securities in the Trust
have, the Trust may be subject to certain reinvestment risks in environments of
declining interest rates.
ILLIQUID SECURITIES. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. These securities involve special risks.
ANTITAKEOVER PROVISIONS. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.
15
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
GLOSSARY
--------------------------------------------------------------------------------
CLOSED-END FUND: Investment vehicle which initially offers a
fixed number of shares and trades on a stock
exchange. The fund invests in a portfolio of
securities in accordance with its stated
investment objectives and policies.
DISCOUNT: When a fund's net asset value is greater than
its stock price the fund is said to be
trading at a discount.
DIVIDEND: Income generated by securities in a portfolio
and distributed to shareholders after the
deduction of expenses. This Trust declares
and pays dividends to common shareholders on
a monthly basis.
DIVIDEND REINVESTMENT: Common shareholders may have all dividends
and distributions of capital gains
automatically reinvested into additional
shares of the Trust.
MARKET PRICE: Price per share of a security trading in the
secondary market. For a closed-end fund, this
is the price at which one share of the fund
trades on the stock exchange. If you were to
buy or sell shares, you would pay or receive
the market price.
NET ASSET VALUE (NAV): Net asset value is the total market value of
all securities and other assets held by the
Trust, plus income accrued on its
investments, minus any liabilities including
accrued expenses, divided by the total number
of outstanding common shares. It is the
underlying value of a single common share on
a given day. Net asset value for the Trust is
calculated weekly and published in BARRON'S
on Saturday and THE WALL STREET JOURNAL on
Monday.
PREMIUM: When a fund's stock price is greater than its
net asset value, the fund is said to be
trading at a premium.
PREREFUNDED BONDS: These securities are collateralized by U.S.
Government securities which are held in
escrow and are used to pay principal and
interest on the tax exempt issue and retire
the bond in full at the date indicated,
typically at a premium to par.
16
--------------------------------------------------------------------------------
BLACKROCK ADVISORS, INC.
SUMMARY OF CLOSED-END FUNDS
--------------------------------------------------------------------------------
TAXABLE TRUSTS
-------------------------------------------------------------------------------------------------------------------------
STOCK MATURITY
SYMBOL DATE
------ --------
PERPETUAL TRUSTS
The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A
TERM TRUSTS
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09
TAX-EXEMPT TRUSTS
-------------------------------------------------------------------------------------------------------------------------
STOCK MATURITY
SYMBOL DATE
PERPETUAL TRUSTS ------ --------
The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
The BlackRock Pennsylvania Strategic Municipal Trust BPS N/A
The BlackRock Strategic Municipal Trust BSD N/A
TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
IF YOU WOULD LIKE FURTHER INFORMATION PLEASE DO NOT HESITATE TO CALL
BLACKROCK AT (800) 227-7BFM (7236) OR CONSULT WITH YOUR FINANCIAL ADVISOR.
17
--------------------------------------------------------------------------------
BLACKROCK ADVISORS, INC.
AN OVERVIEW
--------------------------------------------------------------------------------
BlackRock Advisors, Inc. (the "Advisor") manages the Trust. The Advisor is
a wholly-owned subsidiary of BlackRock, Inc. ("BlackRock"), which is one of the
largest publicly traded investment management firms in the United States with
$202 billion of assets under management as of March 31, 2001. BlackRock manages
assets on behalf of more than 3,300 institutions and 200,000 individuals
worldwide, including nine of the ten largest companies in the U.S. as determined
by Fortune Magazine, through a variety of equity, fixed income, liquidity and
alternative investment separate accounts and mutual funds, including the
BLACKROCK FUNDS and BLACKROCK PROVIDENT INSTITUTIONAL FUNDS. In addition,
BlackRock provides risk management and technology services to a growing number
of institutional investors under the BLACKROCK SOLUTIONS name. Clients are
served from BlackRock's headquarters in New York City, as well as offices in
Wilmington, DE, Edinburgh, Scotland, Tokyo, Japan, and Hong Kong. BlackRock is a
member of The PNC Financial Services Group, Inc. ("PNC"), one of the largest
diversified financial services organizations in the United States, and is
majority-owned by PNC and by BlackRock employees.
BlackRock's fixed income product was introduced in 1988 by a team of
highly seasoned fixed income professionals. These professionals had extensive
experience creating, analyzing and trading a variety of fixed income
instruments, including the most complex structured securities. In fact, several
individuals at BlackRock were responsible for developing many of the major
innovations in the mortgage-backed and asset-backed securities markets,
including the creation of the first CMO, the floating rate CMO, the
senior/subordinated pass-through and the multi-class asset-backed security.
BlackRock is unique among asset management and advisory firms in the
emphasis it places on the development of proprietary analytical capabilities.
Over one quarter of the firm's professionals is dedicated to the design,
maintenance and use of these systems, which are not otherwise available to
investors. BlackRock's proprietary analytical tools are used for evaluating, and
designing fixed income investment strategies for client portfolios. Securities
purchased include mortgages, corporate bonds, municipal bonds and a variety of
hedging instruments.
BlackRock has developed investment products that respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. In fact, BlackRock introduced the first closed-end mortgage fund, the
first taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
Currently, BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide ongoing demand for the stock in the secondary market.
BlackRock manages a wide range of investment vehicles, each having specific
investment objectives and policies.
In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
that you may have about your BlackRock funds and we thank you for the continued
trust that you place in our abilities.
IF YOU WOULD LIKE FURTHER INFORMATION
PLEASE DO NOT HESITATE TO CALL BLACKROCK AT (800) 227-7BFM
18
[Logo] BLACKROCK
DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein
OFFICERS
Ralph L. Schlosstein, PRESIDENT
Keith T. Anderson, VICE PRESIDENT
Michael C. Huebsch, VICE PRESIDENT
Robert S. Kapito, VICE PRESIDENT
Kevin Klingert, VICE PRESIDENT
RICHARD M. SHEA, VICE PRESIDENT/TAX
Henry Gabbay, TREASURER
James Kong, ASSISTANT TREASURER
Anne Ackerley, SECRETARY
INVESTMENT ADVISOR
BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM
ADMINISTRATOR
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM
AUCTION AGENT
Deutsche Bank
4 Albany Street
New York, NY 10006
INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
LEGAL COUNSEL -- INDEPENDENT DIRECTORS
Debevoise & Plimpton
875 Third Avenue
New York, NY 10022
The accompanying financial statements as of April 30, 2001 were not audited
and accordingly, no opinion is expressed on them.
This report is for shareholder information. This is not a prospectus intended
for use in the purchase or sale of any securities.
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
c/o Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 227-7BFM
[Logo] Printed on recycled paper 09247U-10-7
09247F-10-7
THE [Logo] BLACKROCK
CALIFORNIA
INVESTMENT QUALITY MUNICIPAL TRUST INC.
--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
APRIL 30, 2001
[Logo] BLACKROCK