--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISOR
--------------------------------------------------------------------------------
November 30, 2001
Dear Shareholder:
Economic activity slowed significantly during the annual period ended
October 31, 2001, continuing the downturn that began in March 2000. The
September 11 attacks on the World Trade Center and the Pentagon accelerated this
decline. Inflation adjusted Gross Domestic Product (GDP) fell at a 0.4% annual
rate during the third quarter, reaffirming that the economy is officially headed
towards recession, which is defined as two consecutive quarters of negative
growth as measured by GDP. In response to the dramatic slowdown in the U.S.
economy, The Federal Reserve Board aggressively lowered interest rates over the
period. In stark contrast to its three interest rate increases in February,
March, and May of 2000, the Federal Open Market Committee (FOMC) has cut
interest rates ten times in 2001. Year-to-date, the FOMC has reduced interest
rates by 4.50%, bringing the current Federal Funds rate to 2.00%, its lowest
level since September 1961.
The weakening U.S. economic environment and the accompanying Federal
Reserve activity have had a positive effect on the fixed income markets.
Virtually all sectors of the fixed income market, with the exception of high
yield, posted double-digit returns over the annual period ended October 31,
2001. As short-term interest rates declined faster than long-term interest rates
over the period, the yield curve reached historically steep levels, making it a
very attractive time for leveraged bond funds. Because these funds borrow at
short-term rates and invest in long-term securities, the amount they earn grows
as the difference between short-term and long-term rates increases. Furthermore,
inflation is anticipated to decline to multi-decade lows, which should support
high-quality fixed income securities, especially those with longer maturities.
The rallies in the fixed income markets have barely offset the adverse
impact of the deteriorating equity market. For the year ending October 31, 2001,
the S&P 500 and Nasdaq fell 25.49% and 49.39%, respectively, and, while we
believe that aggressive monetary and fiscal stimulus will help stabilize the
economy, we expect growth to remain below potential for a more prolonged period.
Consumption is unlikely to pick up significantly in the face of sizable job
cuts, the likelihood that flexible compensation (bonus, profit sharing, options)
will be sharply lower, and that state and local government spending may be
significantly curtailed next year. In this environment, we expect a period of
prolonged lower interest rates. Although somewhat discouraging for the American
consumer, this low inflation/low interest rate environment should continue to
benefit fixed income securities. We expect spread products like high quality
corporates and mortgages to perform well relative to U.S. Treasuries.
This annual report contains a summary of market conditions during the
annual period and a review of portfolio strategy by your Trust's managers in
addition to the Trust's audited financial statements and a listing of the
portfolio's holdings at October 31, 2001. 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
1
November 30, 2001
Dear Shareholder:
We are pleased to present the audited annual report for The BlackRock
California Investment Quality Municipal Trust Inc. (the "Trust") for the fiscal
year ended October 31, 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 State 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 annual period ended October 31, 2001:
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10/31/01 10/31/00 CHANGE HIGH LOW
-----------------------------------------------------------------------------------------------------
STOCK PRICE $15.55 $14.00 11.07% $15.55 $13.25
-----------------------------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $15.30 $14.62 4.65% $15.30 $14.59
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THE FIXED INCOME MARKETS
Investors' hopes for a soft landing quickly turned to fears of a recession
as the U.S. economy rapidly deteriorated over the year. Prior to the events of
September 11, our economic outlook envisioned an extended period of sluggish
growth, with the risk of a more severe deterioration if consumer confidence and
spending declined by any considerable degree. Economic data prior to the attacks
suggests that the scenario of a more severe contraction may have been in the
works. Year-over-year industrial production was down, 4.8% in August, the
largest yearly decline since 1982. The unemployment rate had drifted up to 4.9%
from a low of 3.9% in October of last year, and the four-week average of initial
jobless claims rose to its highest level in nearly a decade. Consumer confidence
was starting to wane, and consumer credit outstanding had begun to decline. The
events of September 11 undoubtedly further weakened consumer sentiment. The
Conference Board's consumer confidence index posted its biggest one-month
decline since 1990. According to the minutes of the October 2, 2001, Federal
Open Market Committee meeting, "The terrorist attacks have significantly
heightened uncertainty in an economy that was already weak. Business and
household spending as a consequence are being further damped. Nonetheless, the
long-term prospects for productivity growth and the economy remain favorable and
should become evident once the unusual forces restraining demand abate." During
the fiscal year ended October 31, 2001, the Federal Reserve Board aggressively
lowered the Federal Funds rate by a total of 4.00% to bring it to 2.50%. On
November 6, 2001, the Federal Reserve Board announced another interest rate cut,
bringing the current Federal Funds rate to 2.00%.
Over the course of the year, the U.S. Treasury yield curve steepened
significantly as the bond market rallied in response to the slowing U.S. economy
and the aggressive interest rate cuts by the Federal Reserve. U.S. Treasury
yields on the short-end of the yield curve fell sharply from a 5.91% yield on
2-year U.S. Treasuries as of October 31, 2000, to a 2.42% yield on October 31,
2001, in reaction to the Federal Reserve Board cutting short-term rates by 4%.
During the period, the yield on the 10-year U.S. Treasury fell from 5.75% on
October 31, 2000, to 4.23% on October 31, 2001. U.S. Treasury yields continue to
fall due to further Federal Reserve easing and an anticipation of increased
supply in order to raise capital to support programs implemented as a result of
the tragic events that occurred on September 11, 2001. On October 31, 2001, the
U.S. Treasury announced plans to stop selling 30-year U.S. Treasuries
maintaining that the government "does not need the 30-year bond to meet [its]
current financing needs." On the news that the U.S. Treasury would discontinue a
program that issued a total of $600 billion in debt since its official inception
in 1977, the 30-year bond price increased by more than 5% and yields, which
react inversely to changes in price, fell over 36 basis points. As a result, the
on-the-run curve, which measures yields on newly issued U.S. Treasuries,
flattened 32 basis points.
2
For the annual period ended October 31, 2001, municipal bonds outperformed
the taxable domestic bond market on a tax-adjusted basis, returning 17.12% (as
measured by the Lehman Municipal Index at a tax bracket of 38.6%) versus the
Lehman Aggregate Index's 14.56%. Cash inflows over the period increased
significantly from the previous year due to turmoil in the equity markets and
diversification into fixed income securities. While municipals performed in line
with spread products (i.e. corporates, mortgages, etc.) and U.S. Treasuries
throughout the first half of the period, the municipal yield curve steepened
over the latter half of the year, and showed significant outperformance versus
U.S. Treasuries. Refinancing opportunities, which are expected to reach historic
levels due to falling interest rates, continue to drive the pace of new issues
in the municipal market.
California's economy turned sluggish this past summer. During July 2001,
employment growth actually stopped and through October 2001, the State's
employment is actually 40,000 jobs lower than June's peak. Unemployment is
beginning to rise which is now reflected in October's 5.7% jobless rate was 0.6%
higher than last June's level.
Four months into the fiscal year, California's General Fund revenues
reflect the slower economy and are 6.4% below July's budgeted numbers. The lower
than expected tax receipts reflect the slowdown in manufacturing, construction,
technology, international trade, home sales and the weakness in the financial
markets. If the economic slowdown continues at this rate, California's General
Fund will have a deficit in excess of $4 billion at the end of its fiscal year
(6/30/02). This prospect will pressure the Legislature to further reduce
appropriations and limit expenditures in order to close the fiscal gap. The
State's General Fund is under additional stress as the State loaned the
Department of Water Resources $6.2 billion in 2001 to pay for power purchases.
The State expected to be reimbursed in 2001, however the proposed bond issue,
which will raise the funds for repayment, is stalled and there is a question if
the repayment will be made in this fiscal year.
Within California, the San Francisco to San Jose Corridor is experiencing
the greatest economic decline. The concentration of high technology industries
combined with the City of San Francisco's dependence on tourism, which has
experienced significant weakness since September 11, have severely impacted this
area.
California's unresolved energy issues continue to negatively influence its
economy and directly impact the fiscal position. During November 2001, Moody's
lowered the State's rating to A1 from Aa3 citing the General Fund's weakened
position. California is rated A+ by Standard and Poor's; both agencies maintain
a negative outlook on this rating.
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 via auction rate preferred shares
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 monthly income. At the end of the annual period (October 31, 2001), the
Trust's leverage amount was approximately 33% 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
most of the period and the 5 to 15 year part of the curve remains very steep on
a historical basis. We remain overweight in premium coupon securities in an
effort to avoid potential 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 has
been robust throughout the period, with record inflows into municipal bond funds
of $2.92 billion during the month of August 2001, the largest monthly increase
since 1994. Year-to-date, net inflows into municipal bond funds is $7.98
billion.
3
The following charts compare the Trust's October 31, 2001, and October 31,
2000, asset composition and credit quality allocations:
--------------------------------------------------------------------------------
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR OCTOBER 31, 2001 OCTOBER 31, 2000
--------------------------------------------------------------------------------
Transportation 22% 22%
--------------------------------------------------------------------------------
Lease 17% 17%
--------------------------------------------------------------------------------
University 14% 15%
--------------------------------------------------------------------------------
District 10% 10%
--------------------------------------------------------------------------------
Power 10% 9%
--------------------------------------------------------------------------------
Housing 9% 8%
--------------------------------------------------------------------------------
City, County & State 5% 5%
--------------------------------------------------------------------------------
Water & Sewer 5% 5%
--------------------------------------------------------------------------------
Student Loans 4% 5%
--------------------------------------------------------------------------------
School 2% 2%
--------------------------------------------------------------------------------
Industrial 2% 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT RATING* OCTOBER 31, 2001 OCTOBER 31, 2000
--------------------------------------------------------------------------------
AAA/Aaa 67% 66%
--------------------------------------------------------------------------------
AA/Aa 23% 29%
--------------------------------------------------------------------------------
A/A 5% --
--------------------------------------------------------------------------------
BBB/Baa 5% 5%
--------------------------------------------------------------------------------
---------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
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
that 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
4
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
-------------------------------------------------------------------------------
Symbol on American Stock Exchange: RAA
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Initial Offering Date: May 28, 1993
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Closing Stock Price as of 10/31/01: $15.55
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Net Asset Value as of 10/31/01: $15.30
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Yield on Closing Stock Price as of 10/31/01 ($15.55)(1): 5.06%
-------------------------------------------------------------------------------
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.
5
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
PORTFOLIO OF INVESTMENTS OCTOBER 31, 2001
-----------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL OPTION CALL
RATING* AMOUNT PROVISIONS+ VALUE
(UNAUDITED) (000) DESCRIPTION (UNAUDITED) (NOTE 1)
-----------------------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--145.1%
California Edl. Fac. Auth. Rev., MBIA
AAA $ 760++ Santa Clara Univ., 5.00%, 9/01/06 ............................... N/A $ 852,971
AAA 835 Student Loan Prog., Ser. A, 6.00%, 3/01/16...................... 3/07@ 102 893,208
California St. G.O.,
Aa3 960++ 5.75%, 3/01/05................................................... N/A 1,069,958
Aa3 40 5.75%, 3/01/19.................................................. 3/05 @ 101 42,480
California St. Hsg. Fin. Agcy. Rev., Home Mtge.,
Aa2 595 Ser. B-1, 6.45%, 2/01/11......................................... 8/04 @ 102 629,207
Aa2 1,000 Ser. G, 7.20%, 8/01/14.......................................... 8/04 @ 102 1,051,960
AAA 1,000 Ser. I, Zero Coupon, 8/01/21, FSA............................... No Opt. Call 329,760
California St. Pub. Wks. Brd. Lease Rev.,
Aaa 1,000++ Dept. of Corrections, Ser. A, 6.875%, 11/01/04.................. N/A 1,153,880
A1 1,000 St. Univ. Proj., Ser. A, 6.10%, 10/01/06........................ 10/04 @ 102 1,099,530
AAA 1,000++ St. Univ. Proj., Ser. A, 6.40%, 12/01/02, AMBAC................. N/A 1,067,340
AAA 1,385 Foothill / Eastern Trans. Agcy., Ser. A, Zero Coupon, 1/01/04.... No Opt. Call 1,304,975
Los Angeles Cnty.,
AAA 1,000++ Met. Trans. Auth. Sales Tax Rev., 6.00%, 7/01/06, MBIA.......... N/A 1,153,670
AAA 1,000 Special Tax, Ser. A, 5.50%, 9/01/14, FSA........................ 9/07 @ 102 1,096,180
AA 1,150 Los Angeles Harbor Dept. Rev., Ser. B, 6.00%, 8/01/13............ 8/06 @ 101 1,294,060
AA 1,000++ Los Angeles Pub. Wks. Fin. Auth. Rev., Regl. Park & Open Space,
Dist. A, 6.00%, 10/01/04......................................... N/A 1,125,740
BBB- 1,000 Sacramento Pwr. Auth., Cogeneration Proj. Rev., 6.50%, 7/01/09... 7/06 @ 102 1,130,610
AAA 500 San Diego Ind. Dev. Rev., Ser. A, 5.90%, 6/01/18, AMBAC........... 6/03 @ 102 520,515
San Francisco City & Cnty.,
AAA 150 Arpt. Comn. Rev., Intl. Arpt., Ser. 12-A, 5.90%, 5/01/26, MBIA... 5/06 @ 101 160,881
AAA 1,000 Arpt. Comn. Rev., Intl. Arpt., Ser. 6, 6.125%, 5/01/09, AMBAC... 5/04 @ 102 1,083,640
AAA 1,000 Sewer Rev., Ser. A, 5.95%, 10/01/25, FGIC....................... 10/03 @ 102 1,051,290
AAA 1,000 Southern California Pub. Pwr. Auth. Transmission Proj. Rev.,
5.50%, 7/01/20, MBIA............................................. 7/02 @ 100 1,012,670
AAA 500 Temecula Valley Univ. Sch. Dist., Ser. G, 5.75%, 8/01/25, FGIC... 8/07 @ 102 548,530
Univ. of California Rev.,
Aaa 1,135++ Ser. B, 6.30%, 9/01/03........................................... N/A 1,244,187
AAA 1,000++ Ser. D, 6.10%, 9/01/02, MBIA..................................... N/A 1,053,930
AAA 370 West Basin Mun. Wtr. Dist. Rev., C.O.P., Ser. A, 5.50%, 8/01/22,
AMBAC........................................................... 8/07 @ 101 392,255
---------
See Notes to Financial Statements.
6
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VALUE
DESCRIPTION (NOTE 1)
----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--145.1% (COST $20,193,565).............................. $22,363,427
Other assets in excess of liabilities--3.6%............................... 547,373
Liquidation Value of preferred stock--(48.7)%............................. (7,500,000)
------------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ....................... $15,410,800
============
--------------
* 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 or redemption. There may be other call provisions at varying prices at
later dates.
++ This bond is prerefunded. See glossary for definition.
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KEY TO ABBREVIATIONS:
----------------------------------------------------------------------------------------------------------
AMBAC -- American Municipal Bond Assurance Corporation FSA -- Financial Security Assurance
C.O.P. -- Certificate of Participation G.O. -- General Obligation
FGIC -- Financial Guaranty Insurance Company MBIA -- Municipal Bond Insurance Association
-----------------------------------------------------------------------------------------------------------
See Notes to Financial Statements.
7
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THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2001
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ASSETS
Investments, at value (cost $20,193,565) (Note 1) ........ $ 22,363,427
Cash ..................................................... 366,620
Interest receivable ...................................... 296,062
Other assets ............................................. 5,734
------------
23,031,843
------------
LIABILITIES
Dividends payable--common stock .......................... 66,090
Dividends payable--preferred stock ....................... 2,301
Advisory fee payable (Note 2) ............................ 6,814
Deferred directors fees (Note 1) ......................... 4,137
Administration fee payable (Note 2) ...................... 1,947
Other accrued expenses ................................... 39,754
------------
121,043
------------
NET INVESTMENT ASSETS .................................... $ 22,910,800
============
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 .................... 92,684
Accumulated net realized loss (Note 1) ................. (758,920)
Net unrealized appreciation (Note 1) ................... 2,169,862
------------
Net investment assets, October 31, 2001 .................. $ 22,910,800
============
Net assets applicable to common shareholders ............. $ 15,410,800
============
Net asset value per share:
($15,410,800 / 1,007,093 shares of
common stock issued and outstanding) ................... $15.30
======
-------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2001
-------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest (Note 1) ........................................ $1,269,031
----------
Expenses
Investment advisory ...................................... 79,219
Administration ........................................... 22,634
Auction agent ............................................ 19,000
Reports to shareholders .................................. 18,000
Transfer agent ........................................... 13,000
Directors ................................................ 12,000
Legal .................................................... 10,000
Independent accountants .................................. 7,000
Custodian ................................................ 4,000
Miscellaneous ............................................ 23,656
----------
Total expenses ........................................... 208,509
----------
Net investment income ...................................... 1,060,522
----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS
Net realized gain on investments ........................... 17,385
Net change in unrealized appreciation
on investments ........................................... 610,063
----------
Net gain on investments .................................... 627,448
----------
NET INCREASE IN NET INVESTMENT ASSETS
RESULTING FROM OPERATIONS .................................. $1,687,970
==========
See Notes to Financial Statements.
8
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
STATEMENTS OF CHANGES IN NET INVESTMENT ASSETS
-------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
-----------------------------
2001 2000
------------- ----------
INCREASE (DECREASE) IN INVESTMENT ASSETS
OPERATIONS:
Net investment income ......................................... $ 1,060,522 $ 1,062,983
Net realized gain on investments .............................. 17,385 --
Net change in unrealized appreciation on investments .......... 610,063 298,860
------------ ------------
Net increase in net investment assets resulting
from operations............................................. 1,687,970 1,361,843
------------ ------------
DIVIDENDS:
To common shareholders from net investment income ............. (792,980) (823,217)
To preferred shareholders from net investment income .......... (209,155) (252,518)
------------ ------------
Total dividends ............................................... (1,002,135) (1,075,735)
------------ ------------
Total increase .............................................. 685,835 286,108
------------ ------------
NET INVESTMENT ASSETS
Beginning of year ............................................... 22,224,965 21,938,857
------------ ------------
End of year (including undistributed net investment income
of $92,684 and $11,677, respectively) ......................... $ 22,910,800 $ 22,224,965
============ ============
See Notes to Financial Statements.
9
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
FINANCIAL HIGHLIGHTS
-------------------------------------------------------------------------------
YEAR ENDED OCTOBER 31,
----------------------------------------------------------------------
2001(1) 2000 1999 1998 1997
------- ------- ------- ------- -------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ..................... $ 14.62 $ 14.34 $ 15.49 $ 14.77 $ 14.20
-------- -------- -------- -------- -------
Net investment income ................................ 1.05 1.06 1.05 1.05 1.07
Net realized and unrealized gain (loss)
on investments ....................................... .63 .29 (1.10) .79 .61
-------- -------- -------- -------- --------
Net increase (decrease) from investment operations ..... 1.68 1.35 (0.05) 1.84 1.68
-------- -------- -------- -------- --------
DIVIDENDS AND DISTRIBUTIONS:
Dividends from net investment income to:
Common shareholders .................................. (.79) (.82) (.88) (.88) (.87)
Preferred shareholders ............................... (.21) (.25) (.22) (.24) (.24)
Distributions in excess of net realized gains
on investments to:
Common shareholders .................................. -- -- -- -- **
Preferred shareholders ............................... -- -- -- -- **
-------- -------- -------- -------- --------
Total dividends and distributions ...................... (1.00) (1.07) (1.10) (1.12) (1.11)
-------- -------- ------- -------- --------
Net asset value, end of year(2)......................... $ 15.30 $ 14.62 $ 14.34 $ 15.49 $ 14.77
======== ======== ======= ======== ========
Market value, end of year(2)............................ $ 15.55 $ 14.00 $ 15.50 $ 16.125 $ 15.00
======== ======== ======= ======== ========
TOTAL INVESTMENT RETURN(3) ............................. 17.03% (4.33)% 1.52% 13.70% 17.98%
======== ======== ======= ======== ========
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS(4):
Expenses ............................................... 1.38% 1.41% 1.34% 1.36% 1.32%
Net investment income before preferred stock dividends . 7.04% 7.36% 6.95% 6.93% 7.48%
Preferred stock dividends .............................. 1.39% 1.75% 1.47% 1.60% 1.70%
Net investment income available to common shareholders . 5.65% 5.61% 5.48% 5.33% 5.78%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ........ $ 15,072 $ 14,450 $ 15,170 $ 15,265 $ 14,445
Portfolio turnover ..................................... 1% 0% 4% 0% 28%
Net assets of common shareholders, end of year (000) ... $ 15,411 $ 14,725 $ 14,439 $ 15,595 $ 14,873
Asset coverage per share of preferred stock, end of year $ 76,377 $ 74,097 $ 73,138 $ 76,990 $ 74,583
Preferred stock outstanding (000) ...................... $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500
---------
(1) Effective November 1, 2000, the Fund adopted the provisions of the AICPA
Audit and Accounting Guide for Investment Companies and began accreting
market discount on debt securities. The effect of this accounting policy
change had no impact on the total net assets of the Trust. The effect of
this change for the year ended October 31, 2001 was to increase net
investment income per share by $.01, decrease net realized and unrealized
gains and losses per share by $.01, and increase the ratio of net
investment income to average net assets on common shares from 5.61% to
5.65% and from 7.00% to 7.04% on net investment income before preferred
share dividends. Per share, ratios and supplemental data for prior periods
have not been restated to reflect this change in presentation.
(2) Net asset value and market value are published in Barron's on Saturday and
The Wall Street Journal on Monday.
(3) 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 year 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. Past performance
is not a guarantee of future results.
(4) 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.
** Actual amount paid to common shareholders for the year ended October 31,
1997 was $0.00056 per share and the actual amount paid to preferred
shareholders was $0.00018 per common share.
The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratio to average net
assets and other supplemental data for the years 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.
10
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THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
NOTES TO FINANCIAL STATEMENTS
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NOTE 1. ORGANIZATION & ACCOUNTING POLICIES
The BlackRock California Investment Quality Municipal Trust Inc. (the "Trust")
was organized in Maryland on 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: Effective November 1, 2000, the Trust has adopted the
provisions of the AICPA Audit and Accounting Guide for Investment Companies, as
revised, and began accreting market discount on debt securities. Prior to
November 1, 2000, the Trust amortized premiums and original issue discount on
debt securities. The cumulative effect of this accounting policy change had no
impact on the total net assets of the Trust. This resulted in a $22,620 increase
to undistributed net investment income and a corresponding decrease in net
unrealized appreciation, based on securities held by the Trust on October 31,
2001. The Statement of Changes in Net Investment Assets and the Financial
Highlights of the Trust for prior periods have not been restated to reflect this
change.
The effect of this change for the year ended October 31, 2001 was to
increase net investment income by $5,149 and a corresponding decrease in net
unrealized appreciation.
11
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 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 Prudential"). Effective November 1, 2001,
PIFM changed its name to Prudential Investments LLC.
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 SECURITIES
Purchases and sales of investment securities other than short-term investments,
for the year ended October 31, 2001 aggregated $297,660 and $510,994,
respectively.
The Federal income tax basis of the Trust's investments at October 31, 2001
was $20,165,796, and accordingly, net and gross unrealized appreciation was
$2,197,631.
For Federal income tax purposes, the Trust had a capital loss carryforward
at October 31, 2001 of approximately $756,000 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
October 31, 2001, the Advisor owned 7,093 shares. As of October 31, 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 1.60% to 4.19%
during the year ended October 31, 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 October 31, 2001, the Board of Directors of the Trust
declared a dividend from undistributed earnings of $0.065625 per common share
payable December 3, 2001 to shareholders of record on November 15, 2001.
For the period November 1, 2001 to November 30, 2001, dividends declared on
preferred stock totaled $9,591 in aggregate for the outstanding preferred stock.
12
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
REPORT OF INDEPENDENT AUDITORS
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To the Shareholders and Board of Directors of
The BlackRock California Investment Quality Municipal Trust, Inc.:
We have audited the accompanying statement of assets and liabilities of The
BlackRock California Investment Quality Municipal Trust, Inc. (the "Trust"),
including the portfolio of investments as of October 31, 2001, and the related
statements of operations for the year then ended, the statement of changes in
net investment 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.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. 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. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2001, by correspondence with the custodian.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of The
BlackRock California Investment Quality Municipal Trust, Inc., as of October 31,
2001, the results of its operations for the year then ended, the changes in its
net investment 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.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 7, 2001
13
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
TAX INFORMATION
-------------------------------------------------------------------------------
We are required by the Internal Revenue Code to advise you within 60 days
of the Trust's fiscal year end (October 31, 2001) as to the federal tax status
of dividends you received during such fiscal year. Accordingly, during the year
the Trust paid Federal tax-exempt dividends of $0.7875 per share to common
shareholders and $697.18 per share to preferred shareholders.
For purposes of preparing your annual Federal income tax return, you should
report the amounts as reflected on the appropriate Form 1099-DIV or substitute
1099-DIV.
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DIVIDEND REINVESTMENT PLAN
-------------------------------------------------------------------------------
Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders are automatically enrolled to have all distributions of dividends
and capital gains reinvested by EquiServe Trust Company, N.A. (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 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 address is on the front of this report.
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ADDITIONAL INFORMATION
-------------------------------------------------------------------------------
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.
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.
14
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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 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
$226 billion of assets under management as of September 30, 2001. BlackRock
manages assets on behalf of more than 3,300 institutions and 200,000 individuals
worldwide 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 investment system services to institutional investors under the
BlackRock Solutions name. Clients are served from the Company's headquarters in
New York City, as well as offices in Wilmington, DE, San Francisco, Edinburgh,
Scotland, Tokyo, Japan, and Hong Kong. BlackRock is a member of The PNC
Financial Services Group, Inc. (NYSE: 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".
15
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,
EquiServe Trust Company, N.A. 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 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.
16
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
GLOSSARY
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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.
17
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BLACKROCK ADVISORS, INC.
SUMMARY OF CLOSED-END FUNDS
-------------------------------------------------------------------------------
TAXABLE TRUSTS
------------------------------------------------------------------------------------------------------------------------------------
STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ ---------
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
BlackRock Core Bond Trust BHK 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
PERPETUAL TRUSTS SYMBOL DATE
----- -----
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
BlackRock California Municipal Income Trust BFZ N/A
BlackRock Municipal Income Trust BFK N/A
BlackRock New York Municipal Income Trust BNY N/A
BlackRock New Jersey Municipal Income Trust BNJ N/A
BlackRock Florida Municipal Income Trust BBF 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
BlackRock California Municipal 2018 Term Trust BJZ 12/18
BlackRock New York Municipal 2018 Term Trust BLH 12/18
BlackRock Municipal 2018 Term Trust BPK 12/18
IF YOU WOULD LIKE FURTHER INFORMATION PLEASE CALL BLACKROCK AT
(800) 227-7BFM (7236)
OR CONSULT WITH YOUR FINANCIAL ADVISOR.
18
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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
$226 billion of assets under management as of September 30, 2001. BlackRock
manages assets on behalf of more than 3,300 institutions and 200,000 individuals
worldwide 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 investment system services to institutional investors under the
BlackRock Solutions name. Clients are served from the Company's headquarters in
New York City, as well as offices in Wilmington, DE, San Francisco, Edinburgh,
Scotland, Tokyo, Japan, and Hong Kong. BlackRock is a member of The PNC
Financial Services Group (NYSE: 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
19
BLACKROCK THE [LOGO BLACKROCK]
CALIFORNIA
DIRECTORS INVESTMENT QUALITY MUNICIPAL TRUST INC.
Laurence D. Fink, CHAIRMAN -------------------------------------------
Andrew F. Brimmer ANNUAL REPORT
Richard E. Cavanagh OCTOBER 31, 2001
Kent Dixon
Frank J. Fabozzi [LOGO] BLACKROCK
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein
Officers
Ralph L. Schlosstein, 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 LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
CUSTODIAN
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
TRANSFER AGENT
EquiServe Trust Company, N.A.
150 Royall Street
Canton, MA 02021
(800) 699-1BFM
AUCTION AGENT
Deutsche Bank
4 Albany Street
New York, NY 10006
INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116
LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
LEGAL COUNSEL -- INDEPENDENT DIRECTORS
Debevoise & Plimpton
919 Third Avenue
New York, NY 10022
This report is for shareholder information. This is not a prospectus
intended for use in the purchase or sale of any securities.
Statements and other information contained in this report are as dated and
are subject to change.
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
c/o Prudential Investments LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 227-7BFM
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