--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
SEMI-ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISOR
--------------------------------------------------------------------------------
May 31, 2002
Dear Shareholder:
The semi-annual period ended April 30, 2002, saw general turmoil in the
equity markets. However, during this time bond markets, particularly municipal
securities, proved to be a shelter for investors seeking refuge from unstable
economic conditions. Over the period, municipal bonds outperformed Treasuries
returning 1.08% versus -1.88%, respectively, as measured by the LEHMAN BROTHERS
MUNICIPAL BOND INDEX* and LEHMAN BROTHERS TREASURY INDEX.**
During the six-month period, the bond market was not without volatility. In
the aftermath of the September 11th tragedy, the Federal Reserve Board (the
"Fed") lowered interest rates four times before the year ended. Since bond
prices generally move in the opposite direction from interest rates, this
aggressive action initially sent bond yields downward and prices (and returns)
markedly higher.
For the first quarter of 2002, issues of new municipal securities increased
by 10%, totaling $65 billion, setting a record for the largest first quarter
issuance in history. Due in part to budgetary pressures, a slowing economy, and
municipalities' ongoing need to finance infrastructure projects, the final month
of the period continued to see heightened levels of new issuance and
year-to-date volume has now reached $87 billion. In March, fixed income markets
suffered following the Fed's announcement of a bias shift from "potential
weakness" to "neutral," which led the investment community to anticipate an
economy in the early stages of recovery. Despite higher than expected
unemployment numbers during April, economic indicators generally concluded the
period on a more positive tone than they began. U.S. manufacturing, as measured
by the ISM (Institute for Supply Management) Index, remained at expansionary
levels in April and the Consumer Confidence Index has bounced from its November
low on increasing expectations. However, we remain cautious that the strong
consumer demand, which has created an increasingly optimistic stimulus, may
become exhausted and slow.
Interest rate fluctuations, such as we have seen recently can be difficult
for investors, especially those who depend on fixed income investments for
current income. We encourage you to consult with your financial advisor to help
you establish a strategy that best fits your overall goals and risk tolerance.
The semi-annual report includes a summary of market conditions over the
period, a review of the strategy employed by your Trust's portfolio managers,
the Trust's unaudited financial statements and a listing of the portfolio's
holdings. We encourage you to read the report and we thank you for making
BlackRock part of your investment program.
Sincerely,
/s/ Laurence D. Fink /s/ Ralph L. Schlosstein
-------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President
----------
* The Lehman Brothers Municipal Bond Index measures the performance of the
investment grade long-term tax-exempt bond market. The Index is unmanaged
and cannot be purchased directly.
** The Lehman Brothers Treasury Index measures the performance of the public
obligations of the U.S. Treasury. The Index is unmanaged and cannot be
purchased directly.
1
May 31, 2002
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 period ended April 30, 2002. 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 primarily
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 net
asset value:
--------------------------------------------------
4/30/02 10/31/01 CHANGE HIGH LOW
-------------------------------------------------------------------------------
STOCK PRICE $15.15 $15.55 (2.57)% $15.60 $15.00
-------------------------------------------------------------------------------
NET ASSET VALUE (NAV) $15.07 $15.30 (1.50)% $15.39 $14.90
-------------------------------------------------------------------------------
THE FIXED INCOME MARKETS
Economic performance was mixed during the semi-annual period although
increasingly positive economic data surfaced as time progressed. The U.S.
economy showed signs of a rebound on the heels of strong consumer and military
spending, which helped to overcome the devastation of September 11th. The Fed
also provided further monetary stimulus by cutting interest rates two additional
times prior to year-end, leaving the federal funds rate at 1.75%. This was in
addition to nine previous interest rate reductions by the Fed during 2001. The
Consumer Confidence Index initially reached its lowest level in eight years
during November, but marked a steady climb during the remainder of the period as
investors readily anticipated an economic recovery. The economy continued to see
increasingly optimistic data emerge throughout the first quarter of 2002. Gross
Domestic Product ("GDP") during the first quarter rose 5.6%, the fastest rate in
two years, and the manufacturing sector saw substantial gains as the Purchasing
Managers Index indicated expansion for the first time in 19 months. Although
productivity increased 8.6% during the first quarter, unemployment in April
reached 6.0%. However, the unexpectedly high unemployment number is believed to
be a result of recent legislation prompting many to apply for extended benefits.
After surprising growth in the first quarter of 2002, the fixed income markets
came under pressure following the March 19th announcement by the Federal Open
Market Committee ("FOMC") to leave rates steady, citing a bias shift from
"potential weakness" to "neutral." The equity markets did not significantly
benefit from the emergence of the strong growth indicators as they were
challenged by several high profile bankruptcies. Closing out the period, April
saw the largest advancement in retail sales in six months and inflationary
pressures remain relatively in check. However, concerns regarding the corporate
environment and violence in the Middle East and Asia have left many investors
apprehensive about the markets. Going forward, although low inventory levels
should continue to provide support for manufacturing data, concerns exist
surrounding the long-term strength of the highly leveraged consumer.
Following a steepening of the yield curve throughout the majority of 2001,
yields over the period trended higher causing the curve to flatten. Signs of a
recovering economy caused yields to rise in sympathy with expectations of a
higher fed funds rate by year end. The 5- to 10-year portion of the yield curve
came under the most pressure, rising 93 and 86 basis points, respectively,
during the period. Yields on 2- and 30-year maturities also suffered during the
period rising 80 and 72 basis points, respectively. After struggling following
the FOMC's announcement of a bias shift in March, Treasuries bounced back in
April. April's performance was driven by economic pessimism, which surfaced as
enthusiasm for a rapid economic recovery waned amidst tensions in the Middle
East, cautious corporate earnings announcements and government reports of a
slower growth pattern. Looking ahead, a budget surplus of only $78 billion and a
30% decline in tax revenues for 2001 has caused Treasury finances to deteriorate
sharply and should result in larger auction sizes. However, the allowable debt
limit set by Congress will
2
soon be reached, possibly leading the Treasury to pursue additional methods of
financing. As of April 30, 2002, the 10-year Treasury was yielding 5.09% versus
4.23% on October 31, 2001.
On a tax-adjusted basis, municipal bonds outperformed the taxable domestic
bond market for the semi-annual period ended April 30, 2002, returning 1.76% (as
measured by the LEHMAN BROTHERS MUNICIPAL BOND INDEX at a tax bracket of 38.6%)
versus -0.01% for the LEHMAN BROTHERS AGGREGATE INDEX. Strong institutional and
retail demand for municipal bonds allowed the sector to show outperformance
versus Treasuries across the entire curve. Demand was driven primarily by two
factors: yields on municipal securities remain attractive versus alternative
fixed income investments, and continued volatility in the equity markets led
investors to seek diversification. Strong demand was met by significant new
issuance as the first quarter of 2002 posted a 10% increase over the same period
in 2001 and was the largest first quarter total on record. In April, new bond
issuance continued its strong trend with a 12% increase from a year earlier,
bringing total year-to-date issuance to $87 billion. Similar to Treasuries, the
municipal yield curve flattened over the period as yields on short to
intermediate maturities rose more quickly than long-term rates.
California's economy turned sluggish a year ago. Employment growth actually
stopped in July 2001 and through November 2002, the State lost jobs. Since then
employment is experiencing small gains. However, the unemployment rate is still
rising. April 2002's jobless rate was 6.1%, significantly higher than April
2001's 5%, indicating that even more people are seeking employment.
California's General Fund revenues reflect the slower economy. Year to date
(April) revenues are 2.5% ($1.14 billion) below revised expectations. In May the
Governor acknowledged and addressed a projected FY2003 $23 billion budget gap
(approximately 30% of revenues); his remedies include tobacco tax increases and
motor vehicle registration fee hikes, tobacco securitization bond proceeds and
expenditure cuts. These proposals are currently being discussed in the
Legislature. The State's General Fund is under additional stress due to the $6.2
billion loan to the Department of Water Resources in 2001 to pay for power
purchases. The State had expected to be reimbursed in FY 2002 through a bond
sale that remains stalled.
California's unresolved energy issues combined with the slowing economy
continue to negatively impact the State's fiscal position. The State's ratings
were lowered to A1/A+ citing the General Fund's weakened position; both rating
agencies maintain a negative outlook.
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 semi-annual period, the Trust's leverage amount was approximately 33%
of total assets.
Municipals outperformed Treasuries for the period due to strong retail
demand despite record issuance. The curve flattened over the period as rates at
the short end of the curve rose rapidly in anticipation of the Fed raising rates
in an economic recovery. Rates at the long end of the curve rose moderately and
the curve remains steep on a historical basis. We continue to focus on bonds
with higher coupons as they provide the most attractive income stream and also
tend to have superior performance in a rising rate environment.
3
The following charts show the Trust's asset composition and credit quality
allocations:
--------------------------------------------------------------------------------
SECTOR BREAKDOWN
--------------------------------------------------------------------------------
SECTOR APRIL 30, 2002 OCTOBER 31, 2001
--------------------------------------------------------------------------------
Transportation 23% 22%
--------------------------------------------------------------------------------
Lease Revenue 17% 17%
--------------------------------------------------------------------------------
School 16% 16%
--------------------------------------------------------------------------------
District 10% 10%
--------------------------------------------------------------------------------
Power 10% 10%
--------------------------------------------------------------------------------
Housing 8% 9%
--------------------------------------------------------------------------------
City, County & State 5% 5%
--------------------------------------------------------------------------------
Water & Sewer 5% 5%
--------------------------------------------------------------------------------
Student Loans 4% 4%
--------------------------------------------------------------------------------
Industrial & Pollution Control 2% 2%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
CREDIT RATING* APRIL 30, 2002 OCTOBER 31, 2001
--------------------------------------------------------------------------------
AAA/Aaa 67% 67%
--------------------------------------------------------------------------------
AA/Aa 23% 23%
--------------------------------------------------------------------------------
A/A 5% 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
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
4
--------------------------------------------------------------------------------
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 4/30/02: $15.15
--------------------------------------------------------------------------------
Net Asset Value as of 4/30/02: $15.07
--------------------------------------------------------------------------------
Yield on Closing Stock Price as of 4/30/02 ($15.15)(1): 5.20%
--------------------------------------------------------------------------------
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.
(2) The 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
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
PORTFOLIO OF INVESTMENTS APRIL 30, 2002 (UNAUDITED)
--------------------------------------------------------------------------------
PRINCIPAL
AMOUNT OPTION CALL VALUE
RATING* (000) DESCRIPTION PROVISIONS+ (NOTE 1)
------------------------------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS--144.9%
California Edl. Fac. Auth. Rev., MBIA,
AAA $ 760++ Santa Clara Univ., 5.00%, 9/01/06 ........................... N/A $ 839,830
AAA 835 Student Loan Prog., Ser. A, 6.00%, 3/01/16 .................. 3/07@ 102 874,738
California St. Hsg. Fin. Agcy. Rev., Home Mtge.,
Aa2 490 Ser. B-1, 6.45%, 2/01/11 .................................... 8/04 @ 102 511,183
Aa2 995 Ser. G, 7.20%, 8/01/14 ...................................... 8/04 @ 102 1,041,088
AAA 1,000 Ser. I, Zero Coupon, 8/01/21, FSA ........................... No Opt. Call 322,970
California St. Pub. Wks. Brd. Lease Rev., Ser. A,
Aaa 1,000++ Dept. of Corrections, 6.875%, 11/01/04 ...................... N/A 1,132,590
A 1,000 St. Univ. Proj., 6.10%, 10/01/06 ............................ 10/04 @ 102 1,088,450
AAA 1,000++ St. Univ. Proj., 6.40%, 12/01/02, AMBAC ..................... N/A 1,047,840
California St., G.O.,
A+ 960++ 5.75%, 3/01/05 .............................................. N/A 1,049,990
A+ 40 5.75%, 3/01/19 .............................................. 3/05 @ 101 42,023
AAA 1,385 Foothill / Eastn. Trans. Agcy., Ser. A,
Zero Coupon, 1/01/04 ........................................ No Opt. Call 1,323,561
Los Angeles Cnty.,
AAA 1,000 Cmnty. Fac. Spec. Tax, Ser. A, 5.50%, 9/01/14, FSA .......... 9/07 @ 102 1,082,200
AAA 1,000++ Met. Trans. Auth. Sales Tax Rev., 6.00%, 7/01/06, MBIA ...... N/A 1,132,040
AA 1,150 Los Angeles Harbor Dept. Rev., Ser. B, 6.00%, 8/01/13 ........ 8/06 @ 101 1,277,156
Aa3 1,000++ Los Angeles Pub. Wks. Fin. Auth. Rev., Regl. Park &
Open Space, Dist. A, 6.00%, 10/01/04 ........................ N/A 1,108,460
BBB- 1,000 Sacramento Pwr. Auth., Cogeneration Proj. Rev.,
6.50%, 7/01/09 .............................................. 7/06 @ 102 1,108,560
AAA 500 San Diego Ind. Dev. Rev., Ser. A, 5.90%, 6/01/18, AMBAC ...... 6/03 @ 102 522,365
San Francisco City & Cnty.,
AAA 150 Arpt. Comn. Rev., Intl. Arpt., Ser. 12-A,
5.90%, 5/01/26, MBIA ....................................... 5/06 @ 101 158,069
AAA 1,000 Arpt. Comn. Rev., Intl. Arpt., Ser. 6,
6.125%, 5/01/09, AMBAC ..................................... 5/04 @ 102 1,073,640
AAA 1,000 Swr. Rev., Ser. A, 5.95%, 10/01/25, FGIC .................... 10/03 @ 102 1,042,130
So. California Pub. Pwr. Auth. Transm. Proj. Rev., MBIA,
AAA 380++ 5.50%, 7/01/02 .............................................. N/A 390,169
AAA 620 5.50%, 7/01/20 .............................................. No Opt. Call 635,382
AAA 500 Temecula Valley Uni. Sch. Dist., G.O., Ser. G,
5.75%, 8/01/25, FGIC ........................................ 8/07 @ 102 537,135
Univ. of California Rev.,
Aaa 1,135++ Ser. B, 6.30%, 9/01/03 ...................................... N/A 1,223,689
AAA 1,000++ Ser. D, 6.10%, 9/01/02, MBIA ................................ N/A 1,035,710
AAA 370 West Basin Mun. Wtr. Dist. Rev., C.O.P., Ser. A,
5.50%, 8/01/22, AMBAC ....................................... 8/07 @ 101 384,626
----------
See Notes to Financial Statements.
6
--------------------------------------------------------------------------------
VALUE
DESCRIPTION (NOTE 1)
------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS--144.9% (COST $20,135,697) ............................ $21,985,594
Other assets in excess of liabilities--4.5% ............................. 691,794
Preferred stock at redemption value, including
dividends payable--(49.4)% ............................................ (7,501,726)
-----------
NET ASSETS APPLICABLE TO COMMON SHAREHOLDERS--100% ...................... $15,175,662
===========
----------
* Using the higher of Standard & Poor's, Moody's or Fitch's rating.
+ Date (month/year) and price of the earliest optional call or redemption.
There may be other call provisions at varying prices at later dates.
++ This bond is prefunded. See Glossary for definition.
------------------------------------------------------------------------------------------------------
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
APRIL 30, 2002 (UNAUDITED)
--------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $20,135,697) (Note 1) .......... $21,985,594
Cash ....................................................... 508,578
Interest receivable ........................................ 294,279
Other assets ............................................... 6,469
----------
22,794,920
----------
LIABILITIES
Dividends payable--common stock ............................ 66,090
Investment advisory fee payable (Note 2) ................... 6,495
Deferred Directors fees (Note 1) ........................... 5,521
Administration fee payable (Note 2) ........................ 1,856
Other accrued expenses ..................................... 37,570
----------
117,532
----------
PREFERRED STOCK AT REDEMPTION VALUE
$.01 par value per share and $25,000
liquidation value per share applicable to
300 shares, including dividends payable
(Note 1 & 4) ............................................. 7,501,726
-----------
NET ASSETS APPLICABLE TO
COMMON SHAREHOLDERS ........................................ $15,175,662
===========
Composition of Net Assets Applicable
to Common Shareholders:
Par value (Note 4) ....................................... $ 10,071
Paid-in capital in excess of par ......................... 13,897,103
Undistributed net investment income (Note 1) ............. 180,134
Accumulated net realized loss (Note 1) ................... (761,543)
Net unrealized appreciation (Note 1) ..................... 1,849,897
-----------
Net assets applicable to common shareholders,
April 30, 2002 ........................................... $15,175,662
===========
Net asset value per share:
($15,175,662 / 1,007,093 shares of
common stock issued and outstanding) ..................... $15.07
======
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2002 (UNAUDITED)
--------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest (Note 1) ........................................... $630,328
--------
Expenses
Investment advisory ......................................... 39,451
Administration .............................................. 11,272
Auction agent ............................................... 9,000
Reports to shareholders ..................................... 7,000
Transfer agent .............................................. 6,000
Directors ................................................... 6,000
Independent accountants ..................................... 4,000
Legal ....................................................... 3,000
Custodian ................................................... 2,000
Miscellaneous ............................................... 11,832
--------
Total expenses ............................................ 99,555
--------
Net investment income ......................................... 530,773
--------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS
Net realized loss on investments .............................. (2,623)
Net change in unrealized appreciation
on investments .............................................. (319,965)
--------
Net loss on investments ....................................... (322,588)
--------
DIVIDENDS TO PREFERRED SHAREHOLDERS
FROM NET INVESTMENT INCOME .................................... (46,834)
--------
NET INCREASE IN NET ASSETS APPLICABLE
TO COMMON SHAREHOLDERS RESULTING
FROM OPERATIONS ............................................... $161,351
========
See Notes to Financial Statements.
8
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
--------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED
APRIL 30, 2002 OCTOBER 31, 2001(1)
-------------- -------------------
INCREASE (DECREASE) IN ASSETS APPLICABLE TO COMMON SHAREHOLDERS
OPERATIONS:
Net investment income ........................................................... $ 530,773 $ 1,060,522
Net realized gain (loss) on investments ......................................... (2,623) 17,385
Net change in unrealized appreciation on investments ............................ (319,965) 610,063
Dividends to preferred shareholders from net investment income .................. (46,834) (209,155)
----------- -----------
Net increase in net assets resulting from operations .......................... 161,351 1,478,815
----------- -----------
DIVIDENDS TO COMMON SHAREHOLDERS FROM NET INVESTMENT INCOME ....................... (396,489) (792,980)
----------- -----------
Total increase (decrease) ..................................................... (235,138) 685,835
----------- -----------
NET ASSETS
Beginning of period ............................................................... 15,410,800 14,724,965
----------- -----------
End of period (including undistributed net investment income
of $180,134 and $92,684, respectively) .......................................... $15,175,662 $15,410,800
=========== ===========
----------
(1) Prior year amounts have been restated to conform to the current period's
presentation under the provisions of EITF D-98 (Note 1).
See Notes to Financial Statements.
9
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------
SIX MONTHS
ENDED YEAR ENDED OCTOBER 31,(1)
APRIL 30, -----------------------------------------------
2002(2) 2001(2) 2000 1999 1998 1997
------- ------- ------- ------- ------- -------
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period(3) ........................ $ 15.30 $ 14.62 $ 14.34 $ 15.49 $ 14.77 $ 14.20
------- ------- ------- ------- ------- -------
Investment operations:
Net investment income ........................................ 0.53 1.05 1.06 1.05 1.05 1.07
Net realized and unrealized gain (loss) on investments ....... (0.32) 0.63 0.29 (1.10) 0.79 0.61
Dividends and distributions to preferred shareholders:
Dividends from net investment income ....................... (0.05) (0.21) (0.25) (0.22) (0.24) (0.24)
Distributions in excess of net realized gains on investments -- -- -- -- -- **
------- ------- ------- ------- ------- -------
Net increase (decrease) from investment operations ............. 0.16 1.47 1.10 (0.27) 1.60 1.44
------- ------- ------- ------- ------- -------
Dividends and distributions to common shareholders:
Dividends from net investment income ......................... (0.39) (0.79) (0.82) (0.88) (0.88) (0.87)
Distributions in excess of net realized gains on investments . -- -- -- -- -- **
------- ------- ------- ------- ------- -------
Total dividends and distributions .............................. (0.39) (0.79) (0.82) (0.88) (0.88) (0.87)
------- ------- ------- ------- ------- -------
Net asset value, end of period(3) .............................. $ 15.07 $ 15.30 $ 14.62 $ 14.34 $ 15.49 $ 14.77
======= ======= ======= ======= ======= =======
Market value, end of period(3) ................................. $ 15.15 $ 15.55 $ 14.00 $ 15.50 $16.125 $ 15.00
======= ======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN(4) ..................................... (0.02)% 17.03% (4.33)% 1.52% 13.70% 17.98%
======= ======= ======= ======= ======= =======
RATIOS TO AVERAGE NET ASSETS OF COMMON
SHAREHOLDERS:(5)
Expenses ....................................................... 1.32%(6) 1.38% 1.41% 1.34% 1.36% 1.32%
Net investment income before preferred stock dividends ......... 7.03%(6) 7.04% 7.36% 6.95% 6.93% 7.48%
Preferred stock dividends ...................................... 0.62%(6) 1.39% 1.75% 1.47% 1.60% 1.70%
Net investment income available to common shareholders ......... 6.41%(6) 5.65% 5.61% 5.48% 5.33% 5.78%
SUPPLEMENTAL DATA:
Average net assets of common shareholders (000) ................ $15,230 $15,072 $14,450 $15,170 $15,265 $14,445
Portfolio turnover ............................................. 4% 1% 0% 4% 0% 28%
Net assets of common shareholders, end of period (000) ......... $15,176 $15,411 $14,725 $14,439 $15,595 $14,873
Preferred stock outstanding (000) .............................. $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500 $ 7,500
Asset coverage per share of preferred stock, end of period ..... $75,591 $76,377 $74,097 $73,138 $76,990 $74,583
----------
(1) Prior year amounts have been restated to conform to the current period's
presentation under the provisions of EITF D-98 (Note 1).
(2) As required, effective November 1, 2000, the Trust 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 six months ended April 30, 2002 to the net
investment income and to net realized and unrealized gain (loss) on
investments were less than $.005 per common share. The ratio of net
investment income before preferred stock dividends increased from 6.99% to
7.03% and from 6.37% to 6.41% on net investment income available to common
shareholders. Per share, ratios and supplemental data for periods prior to
2001 have not been restated to reflect this change.
(3) Net asset value and market value are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.
(4) Total investment return is calculated assuming a purchase of a share 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.
Total investment return does not reflect brokerage commissions. Total
investment returns for less than a full year are not annualized. Past
performance is not a guarantee of future results.
(5) 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
the common shareholders.
(6) Annualized.
** 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 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.
10
--------------------------------------------------------------------------------
THE BLACKROCK CALIFORNIA INVESTMENT
QUALITY MUNICIPAL TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
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 provide
high current income exempt from regular Federal and California 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 may be 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 trade date. Realized and unrealized gains and losses are calculated
on the identified cost basis. The Trust also records interest income on an
accrual basis and amortizes premium and accretes discount to interest income on
securities purchased using the interest method.
SEGREGATION: In cases in which the Investment Company Act of 1940, as amended
and the interpretive positions of the Securities and Exchange Commission ("SEC")
require that the Trust segregate assets in connection with certain Trust
investments (e.g., when issued securities, reverse repurchase agreements or
futures contracts), the Trust will, consistent with certain interpretive letters
issued by the SEC, designate on its books and records cash or other liquid debt
securities having a market value at least equal to the amount that would
otherwise be required to be physically segregated.
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: As required, effective November 1, 2000, the Trust has
adopted the provisions of the AICPAAudit 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
$27,769 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 Financial Highlights of the Trust for periods prior to
2001 have not been restated to reflect this change.
The effect of this change for the six months ended April 30, 2002, was to
increase net investment income by $2,741; decrease net unrealized appreciation
by $118 and decrease net realized gains by $2,623.
CHANGE IN FINANCIAL STATEMENT CLASSIFICATION FOR AMPS: In accordance with the
provisions of EITF D-98, "Classification and Measurement of Redeemable
Securities," effective for the cur-
11
rent period, the Trust has reclassified its Auction Market Preferred Shares
("AMPS") outside of permanent equity in the Net Assets section of the Statement
of Assets and Liabilities. In addition, distributions to AMPS shareholders are
now classified as a component of net assets resulting from operations on the
statement of operations and changes in net assets and as a component of the
investment operations in the financial highlights. Prior year amounts presented
have been restated to conform to this period's presentation. This change has no
impact on the net assets applicable to common shares of the Trust.
NOTE 2. AGREEMENTS
The Trust has an Investment Advisory Agreement with BlackRock Advisors, Inc.
(the "Advisor"), 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 LLC ("PI"), an
indirect, wholly-owned subsidiary of Prudential Financial, Inc.
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. Net investment assets mean the total assets of the Trust
(including any assets attributable to any preferred shares that may be
outstanding) minus the sum of accrued liabilities (other than debt representing
financial leverage). The liquidation preference of the preferred shares is not a
liability. The total dollar amounts paid to the Advisor by the Trust under the
Investment Advisory Agreement for the six months ended April 30, 2002 and the
years ended October 31, 2001, 2000 and 1999 were $39,451, $79,219, $77,246 and
$80,508, respectively. The administration fee paid to PI is also computed weekly
and payable monthly at an annual rate of 0.10% of the Trust's average weekly net
investment assets. The total dollar amounts paid to PI by the Trust under the
Administration Agreement for the six months ended April 30, 2002 and the years
ended October 31, 2001, 2000 and 1999 were $11,272, $22,634, $22,070 and
$23,000, respectively.
Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Advisor. PI pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses,
which include reimbursements to the Advisor for certain operational support
services provided to the Trust.
NOTE 3. PORTFOLIO SECURITIES
Purchases and sales of investment securities other than short-term
investments, for the six months ended April 30, 2002, aggregated $908,348 and
$1,018,348, respectively.
The Federal income tax basis of the Trust's investments at April 30, 2002,
was $20,107,810, and accordingly, net and gross unrealized appreciation was
$1,877,784.
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 shares of common stock
outstanding at April 30, 2002, the Advisor owned 7,093 shares. As of April 30,
2002, 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 1.00% to 1.55%
during the six months ended April 30, 2002.
The Trust may not declare dividends or make other distri-butions 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, 2002, the Board of Directors of the Trust declared a
dividend from undistributed earnings of $0.065625 per common stock payable June
3, 2002, to shareholders of record on May 15, 2002.
For the period May 1, 2002 to May 31, 2002, dividends declared on preferred
stock totaled $8,966.
12
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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 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 and 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 Plan 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 back of this report.
13
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THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
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.
The Annual Meeting of Shareholders was held May 23, 2002 to vote on the
following matter:
To elect three Directors as follows:
DIRECTOR: CLASS TERM EXPIRING
--------- ----- ----- -------
Frank J. Fabozzi ............................. II 3 years 2005
Walter F. Mondale ............................ II 3 years 2005
Ralph L. Schlosstein ......................... II 3 years 2005
Directors whose term of office continues beyond this meeting are Andrew F.
Brimmer, Richard E. Cavanagh, Kent Dixon, Laurence D. Fink and James Clayburn La
Force, Jr.
Shareholders elected the three Directors. The results of the voting were as
follows:
VOTES FOR* VOTES AGAINST* ABSTENTIONS*
--------- ------------- ------------
Frank J. Fabozzi ................ 293 -- 2
Walter F. Mondale ............... 645,672 -- 17,439
Ralph L. Schlosstein ............ 647,719 -- 15,392
----------
* The votes represent common and preferred shareholders voting as a single
class except for Frank J. Fabozzi who was voted on and elected by the
preferred shareholders only.
Laurence D. Fink, Chairman of the Trust's Board of Directors, and certain
of the officers of the Trust listed on the cover of this Report to Shareholders,
are also officers of the Advisor. They serve in the following capacities for the
Advisor: Laurence D. Fink--Chief Executive Officer, Ralph L.
Schlosstein--Director and President, Robert S. Kapito--Director and Vice
Chairman, Kevin M. Klingert--Director and Managing Director, Henry
Gabbay--Managing Director, and Anne Ackerley--Managing Director.
14
--------------------------------------------------------------------------------
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 taxes 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
$238 billion of assets under management as of March 31, 2002. BlackRock manages
assets on behalf of institutional and individual investors worldwide through a
variety of equity, fixed income, liquidity and alternative investment products,
including the BLACKROCK FUNDS and BLACKROCK PROVIDENT INSTITUTIONAL FUNDS. In
addition, BlackRock provides risk management advice and investment system
services to a growing number of institutional investors under the BLACKROCK
SOLUTIONS name. Clients are served from the Company's headquarters in New York
City, as well as offices in Boston, Edinburgh, Hong Kong, San Francisco, Tokyo
and Wilmington. BlackRock is a member of The PNC Financial Services Group (NYSE:
PNC), 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 taxes. 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. As such, 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
The Trust employs leverage primarily through the issuance of preferred stock.
Leverage permits the Trust to borrow money at short-term rates and reinvest that
money in longer-term assets, which typically offer higher interest rates. The
difference between the cost of the borrowed funds and the income earned on the
proceeds that are invested in longer-term assets is the benefit to the Trust
from leverage.
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 Trust in a declining rate environment, but can cause net
assets to decline faster than the market in a rapidly rising interest rate
environment. The Advisor's portfolio managers continuously monitor and regularly
review the Trust's use of leverage and 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 shareholders.
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 taxes
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.
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.
ALTERNATIVE MINIMUM TAX (AMT). The Trust may invest in securities subject to
alternative minimum tax.
16
--------------------------------------------------------------------------------
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
Trust invests in a portfolio of securities in
accordance with its stated investment objectives and
policies.
DISCOUNT: When a Trust's net asset value is greater than its
market price the Trust 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 Trust, this is the price at
which one share of the Trust 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,
including 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 Trust's market price is greater than its net
asset value, the Trust 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
--------------------------------------------------------------------------------
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
BlackRock Strategic Bond Trust BHD 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
BlackRock New York Municipal Bond Trust BQH N/A
BlackRock Virginia Municipal Bond Trust BHV N/A
BLackrock Florida Municipal Bond Trust BIE N/A
BlackRock Municipal Bond Trust BBK N/A
BlackRock Maryland Municipal Bond Trust BZM N/A
BlackRock New Jersey Municipal Bond Trust BLJ N/A
BlackRock California Municipal Bond Trust BZA 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 DO NOT HESITATE TO CALL BLACKROCK
AT (800) 227-7BFM (7236) OR CONSULT WITH YOUR FINANCIAL ADVISOR.
18
--------------------------------------------------------------------------------
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
$238 billion of assets under management as of March 31, 2002. BlackRock manages
assets on behalf of institutional and individual investors worldwide through a
variety of equity, fixed income, liquidity and alternative investment products,
including the BLACKROCK FUNDS and BLACKROCK PROVIDENT INSTITUTIONAL FUNDS. In
addition, BlackRock provides risk management advice and investment system
services to a growing number of institutional investors under the BLACKROCK
SOLUTIONS name. Clients are served from the Company's headquarters in New York
City, as well as offices in Boston, Edinburgh, Hong Kong, San Francisco, Tokyo
and Wilmington. BlackRock is a member of The PNC Financial Services Group (NYSE:
PNC), 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 are 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, some
of 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.
19
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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
Robert S. Kapito, VICE PRESIDENT
Kevin M. 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
1 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
4 Times Square
New York, NY 10036
LEGAL COUNSEL -- INDEPENDENT DIRECTORS
Debevoise & Plimpton
919 Third Avenue
New York, NY 10022
The accompanying financial statements as of April 30, 2002 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.
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
09247U-10-7
[LOGO] Printed on recycled paper 09247U-20-6
THE BLACKROCK
CALIFORNIA
INVESTMENT QUALITY
MUNICIPAL TRUST INC.
--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
APRIL 30, 2002
[LOGO](SM) BLACKROCK