UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-10333
Name of Fund: BlackRock Municipal Income Investment Trust (BBF)
Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Municipal Income Investment Trust, 55 East 52nd Street, New York, NY 10055
Registrant’s telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 07/31/2014
Date of reporting period: 10/31/2013
Item 1 – Schedule of Investments
Schedule of Investments October 31, 2013 (Unaudited) | BlackRock Municipal Income Investment Trust (BBF) |
(Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | |||||
Alabama — 0.3% | |||||||
City of Selma Alabama IDB, RB, Gulf Opportunity Zone, International Paper Co. Project, Series A, 5.38%, 12/01/35 | $ | 275 | $ | 268,801 | |||
Alaska — 0.2% | |||||||
Northern Tobacco Securitization Corp., Refunding RB, Asset-Backed, Series A, 5.00%, 6/01/46 | 330 | 227,017 | |||||
California — 13.2% | |||||||
California Educational Facilities Authority, RB, University of Southern California, Series A, 5.25%, 10/01/38 | 1,315 | 1,408,391 | |||||
California Health Facilities Financing Authority, Refunding RB, Catholic Healthcare West, Series A, 6.00%, 7/01/39 | 890 | 969,984 | |||||
California State Public Works Board, LRB, Department of Corrections and Rehabilitation, Series F, 5.25%, 9/01/33 | 400 | 423,600 | |||||
Grossmont Union High School District, GO, Election of 2008, Series B, 4.75%, 8/01/45 | 850 | 852,865 | |||||
Kern Community College District, GO, Safety, Repair & Improvement, Series C, 5.50%, 11/01/33 | 775 | 870,046 | |||||
Los Angeles Department of Water & Power, RB, Sub-Series A-1, 5.25%, 7/01/38 | 1,750 | 1,857,783 | |||||
Sacramento California Municipal Utility District, RB, Series A, 5.00%, 8/15/37 | 745 | 777,780 | |||||
San Diego Regional Building Authority, RB, County Operations Center & Annex, Series A, 5.38%, 2/01/36 | 1,600 | 1,754,944 | |||||
State of California, GO, Various Purposes, 6.00%, 3/01/33 | 1,275 | 1,490,870 | |||||
University of California Medical Center, Refunding RB, Series J, 5.25%, 5/15/38 | 1,780 | 1,867,095 | |||||
12,273,358 | |||||||
Colorado — 2.4% | |||||||
City & County of Denver Colorado Airport System, ARB, Subordinate System, Series B, 5.25%, 11/15/32 | 1,000 | 1,049,310 | |||||
Municipal Bonds | Par (000) |
Value | |||||
Colorado (concluded) | |||||||
Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiative, Series A, 5.50%, 7/01/34 | $ | 1,095 | $ | 1,199,244 | |||
2,248,554 | |||||||
Florida — 8.4% | |||||||
City of Jacksonville Florida, Refunding RB, Series A, 5.25%, 10/01/33 | 265 | 283,155 | |||||
County of Miami-Dade Florida, RB, Seaport, Series A, 6.00%, 10/01/38 | 3,800 | 4,159,442 | |||||
County of Miami-Dade Florida Transit System Sales Surtax, Refunding RB, 5.00%, 7/01/42 | 490 | 497,546 | |||||
County of Miami-Dade Florida Water & Sewer System, Refunding RB, Series B, 5.25%, 10/01/29 | 1,400 | 1,524,110 | |||||
Reedy Creek Improvement District, GO, Series A, 5.25%, 6/01/32 | 570 | 611,679 | |||||
Watergrass Community Development District, Special Assessment Bonds, Series B, 5.13%, 11/01/14 | 860 | 746,093 | |||||
7,822,025 | |||||||
Georgia — 2.0% | |||||||
Municipal Electric Authority of Georgia, Refunding RB, Project One, Sub-Series D, 6.00%, 1/01/23 | 1,565 | 1,840,847 | |||||
Illinois — 16.1% | |||||||
Chicago Illinois Transit Authority, RB: | |||||||
5.25%, 12/01/31 | 1,060 | 1,105,304 | |||||
Sales Tax Receipts, 5.25%, 12/01/36 | 310 | 317,989 | |||||
City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien, Series C, 6.50%, 1/01/41 | 2,955 | 3,323,016 | |||||
City of Chicago Illinois, Refunding RB, Sales Tax, Series A, 5.25%, 1/01/38 | 385 | 401,852 | |||||
County of Cook Illinois Community College District No. 508, GO: | |||||||
5.25%, 12/01/43 | 2,200 | 2,217,028 | |||||
City College of Chicago, 5.50%, 12/01/38 | 380 | 398,878 | |||||
BLACKROCK MUNICIPAL INCOME INVESTMENT TRUST | OCTOBER 31, 2013 | 1 |
Schedule of Investments (continued) | BlackRock Municipal Income Investment Trust (BBF) |
(Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | |||||
Illinois (concluded) | |||||||
Illinois Finance Authority, RB: | |||||||
Carle Foundation, Series A, 6.00%, 8/15/41 | $ | 1,000 | $ | 1,081,180 | |||
Rush University Medical Center Obligation Group, Series B, 7.25%, 11/01/30 | 1,600 | 1,884,128 | |||||
Illinois Finance Authority, Refunding RB, Northwestern Memorial Hospital, Series A, 6.00%, 8/15/39 | 1,900 | 2,128,760 | |||||
Railsplitter Tobacco Settlement Authority, RB: | |||||||
5.50%, 6/01/23 | 690 | 758,731 | |||||
6.00%, 6/01/28 | 195 | 209,079 | |||||
State of Illinois, GO, Various Purposes: | |||||||
5.50%, 7/01/33 | 1,000 | 1,020,970 | |||||
5.50%, 7/01/38 | 210 | 210,764 | |||||
15,057,679 | |||||||
Indiana — 2.6% | |||||||
Indiana Municipal Power Agency, RB, Series B, 6.00%, 1/01/39 | 2,210 | 2,454,603 | |||||
Kansas — 1.9% | |||||||
Kansas Development Finance Authority, Refunding RB, Adventist Health System/Sunbelt Obligated Group, Series C, 5.50%, 11/15/29 | 1,600 | 1,747,328 | |||||
Kentucky — 0.6% | |||||||
Louisville & Jefferson County Metropolitan Government Parking Authority, RB, Series A, 5.75%, 12/01/34 | 500 | 570,080 | |||||
Louisiana — 2.1% | |||||||
Louisiana Local Government Environmental Facilities & Community Development Authority, RB, Westlake Chemical Corp. Projects, Series A-1, 6.50%, 11/01/35 | 715 | 769,826 | |||||
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A: | |||||||
5.50%, 5/15/28 | 560 | 583,330 | |||||
Municipal Bonds | Par (000) |
Value | |||||
Louisiana (concluded) | |||||||
Tobacco Settlement Financing Corp., Refunding RB, Asset-Backed, Series A (concluded): | |||||||
5.50%, 5/15/29 | $ | 600 | $ | 619,464 | |||
1,972,620 | |||||||
Maine — 1.5% | |||||||
Maine Health & Higher Educational Facilities Authority, RB, Maine General Medical Center, 7.50%, 7/01/32 | 1,270 | 1,424,483 | |||||
Massachusetts — 2.8% | |||||||
Massachusetts Health & Educational Facilities Authority, RB, Tufts University, Series O, 5.38%, 8/15/38 | 1,000 | 1,098,140 | |||||
Massachusetts School Building Authority, RB, Senior Series B, 5.00%, 10/15/41 | 1,490 | 1,556,558 | |||||
2,654,698 | |||||||
Michigan — 3.5% | |||||||
City of Lansing Michigan, RB, Board of Water & Light, Series A, 5.50%, 7/01/41 | 915 | 981,072 | |||||
Michigan State Building Authority, Refunding RB, Facilities Program, Series I, 6.00%, 10/15/38 | 1,000 | 1,114,770 | |||||
Royal Oak Hospital Finance Authority, Refunding RB, William Beaumont Hospital, 8.25%, 9/01/39 | 995 | 1,196,866 | |||||
3,292,708 | |||||||
Mississippi — 2.1% | |||||||
Mississippi Development Bank, RB, Jackson Water & Sewer System Project (AGM), 6.88%, 12/01/40 | 750 | 896,947 | |||||
Mississippi State University Educational Building Corp., Refunding RB, 5.25%, 8/01/38 | 1,000 | 1,074,120 | |||||
1,971,067 | |||||||
Nevada — 4.0% | |||||||
City of Las Vegas Nevada, GO, Limited Tax, Performing Arts Center, 6.00%, 4/01/34 | 1,600 | 1,749,504 | |||||
BLACKROCK MUNICIPAL INCOME INVESTMENT TRUST | OCTOBER 31, 2013 | 2 |
Schedule of Investments (continued) | BlackRock Municipal Income Investment Trust (BBF) |
(Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | |||||
County of Clark Nevada Airport System, ARB, Series B, 5.75%, 7/01/42 | $ | 1,825 | $ | 1,985,089 | |||
3,734,593 | |||||||
New Jersey — 6.8% | |||||||
New Jersey Housing & Mortgage Finance Agency, RB, S/F Housing, Series CC, 5.25%, 10/01/29 | 1,140 | 1,188,997 | |||||
New Jersey Transportation Trust Fund Authority, RB, Transportation System: | |||||||
Series A, 5.88%, 12/15/38 | 1,295 | 1,447,175 | |||||
Series A, 5.50%, 6/15/41 | 1,000 | 1,052,660 | |||||
Series AA, 5.50%, 6/15/39 | 1,485 | 1,589,084 | |||||
Rutgers The State University of New Jersey, Refunding RB: | |||||||
Series J, 5.00%, 5/01/32 | 625 | 678,113 | |||||
Series L, 5.00%, 5/01/32 | 385 | 417,717 | |||||
6,373,746 | |||||||
New York — 5.5% | |||||||
Hudson Yards Infrastructure Corp., RB, Series A, 5.75%, 2/15/47 | 1,000 | 1,059,300 | |||||
New York Liberty Development Corp., Refunding RB, Second Priority, Bank of America Tower at One Bryant Park Project, Class 3, 6.38%, 7/15/49 | 605 | 640,919 | |||||
New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38 | 3,250 | 3,442,887 | |||||
5,143,106 | |||||||
Ohio — 3.8% | |||||||
County of Allen Ohio Hospital Facilities, Refunding RB, Catholic Healthcare Partners, Series A, 5.25%, 6/01/38 | 1,565 | 1,594,563 | |||||
Ohio Higher Educational Facility Commission, Refunding RB, Kenyon College Project, 5.00%, 7/01/37 | 140 | 142,787 | |||||
Ohio State Turnpike Commission, RB, Junior Lien, Infrastructure Projects, Series A-1: | |||||||
5.25%, 2/15/30 | 790 | 852,576 | |||||
5.25%, 2/15/31 | 885 | 950,871 | |||||
3,540,797 | |||||||
Municipal Bonds | Par (000) |
Value | |||||
Pennsylvania — 3.8% | |||||||
Pennsylvania Economic Development Financing Authority, RB, American Water Co. Project, 6.20%, 4/01/39 | $ | 500 | $ | 544,290 | |||
Pennsylvania Turnpike Commission, RB, Sub-Series A: | |||||||
5.63%, 12/01/31 | 1,250 | 1,339,912 | |||||
6.00%, 12/01/41 | 1,500 | 1,626,495 | |||||
3,510,697 | |||||||
Texas — 14.0% | |||||||
Central Texas Regional Mobility Authority, Refunding RB, Senior Lien, 6.00%, 1/01/41 | 1,670 | 1,705,872 | |||||
City of Beaumont Texas, GO, Certificates of Obligation, 5.25%, 3/01/37 | 745 | 806,641 | |||||
Conroe Texas ISD, GO, School Building, Series A, 5.75%, 2/15/35 | 890 | 993,231 | |||||
County of Tarrant Texas Cultural Education Facilities Finance Corp., RB, Scott & White Healthcare, 6.00%, 8/15/45 | 1,905 | 2,169,890 | |||||
Lower Colorado River Authority, Refunding RB: | |||||||
5.50%, 5/15/19 (a) | 90 | 109,074 | |||||
5.50%, 5/15/33 | 1,910 | 2,052,028 | |||||
North Texas Tollway Authority, RB, Special Projects, Series A, 5.50%, 9/01/41 | 1,000 | 1,079,720 | |||||
North Texas Tollway Authority, Refunding RB, First Tier, Series K-1 (AGC), 5.75%, 1/01/38 | 1,000 | 1,094,050 | |||||
Red River Education Financing Corp., RB, Texas Christian University Project, 5.25%, 3/15/38 | 340 | 367,955 | |||||
Texas Private Activity Bond Surface Transportation Corp., RB, Senior Lien, NTE Mobility Partners LLC, North Tarrant Express Managed Lanes Project, 6.88%, 12/31/39 | 1,505 | 1,624,060 | |||||
Waco Educational Finance Corp., Refunding RB, Baylor University, 5.00%, 3/01/43 | 1,000 | 1,019,730 | |||||
13,022,251 | |||||||
Virginia — 1.7% | |||||||
City of Lexington Virginia IDA, RB, Washington & Lee University, 5.00%, 1/01/43 | 280 | 293,558 | |||||
BLACKROCK MUNICIPAL INCOME INVESTMENT TRUST | OCTOBER 31, 2013 | 3 |
Schedule of Investments (continued) | BlackRock Municipal Income Investment Trust (BBF) |
(Percentages shown are based on Net Assets) |
Municipal Bonds | Par (000) |
Value | |||||
Virginia (concluded) | |||||||
Virginia Public School Authority, RB, School Financing, 6.50%, 12/01/18 (a) | $ | 1,000 | $ | 1,266,700 | |||
1,560,258 | |||||||
Wisconsin — 1.8% | |||||||
Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc., Series C, 5.25%, 4/01/39 | 1,675 | 1,719,337 | |||||
Total Municipal Bonds — 101.1% | 94,430,653 | ||||||
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (b) | |||||||
California — 21.1% | |||||||
California Educational Facilities Authority, RB, University of Southern California, Series B, 5.25%, 10/01/39 (c) | 1,995 | 2,136,505 | |||||
Grossmont Union High School District, GO, Election of 2008, Series B, 5.00%, 8/01/40 | 2,400 | 2,474,664 | |||||
Los Angeles Community College District California, GO, Election of 2008, Series C, 5.25%, 8/01/39 (c) | 2,630 | 2,836,297 | |||||
Los Angeles Community College District California, GO, Refunding, Election of 2008, Series A, 6.00%, 8/01/33 | 3,898 | 4,489,469 | |||||
Los Angeles Unified School District California, GO, Series I, 5.00%, 1/01/34 | 400 | 415,500 | |||||
San Diego Public Facilities Financing Authority Water, RB, Series B, 5.50%, 8/01/39 | 4,214 | 4,574,401 | |||||
University of California, RB, Series O, 5.75%, 5/15/34 | 1,500 | 1,693,705 | |||||
University of California, Refunding RB, Limited Project, Series G, 5.00%, 5/15/37 | 1,000 | 1,048,939 | |||||
19,669,480 | |||||||
District of Columbia — 3.8% | |||||||
District of Columbia, RB, Series A, 5.50%, 12/01/30 (c) | 1,395 | 1,563,944 | |||||
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (b) | Par (000) |
Value | |||||
District of Columbia (concluded) | |||||||
District of Columbia Water & Sewer Authority, Refunding RB, Senior Lien, Series A, 5.50%, 10/01/39 | $ | 1,799 | $ | 1,933,954 | |||
3,497,898 | |||||||
Illinois — 3.3% | |||||||
Illinois Finance Authority, RB, University of Chicago, Series B, 6.25%, 7/01/38 | 2,800 | 3,090,052 | |||||
Nevada — 5.5% | |||||||
County of Clark Nevada Water Reclamation District, GO: | |||||||
Limited Tax, 6.00%, 7/01/38 | 2,500 | 2,835,300 | |||||
Series B, 5.50%, 7/01/29 | 1,994 | 2,286,558 | |||||
5,121,858 | |||||||
New Hampshire — 1.3% | |||||||
New Hampshire Health & Education Facilities Authority, RB, Dartmouth College, 5.25%, 6/01/39 (c) | 1,094 | 1,190,349 | |||||
New Jersey — 4.1% | |||||||
New Jersey Transportation Trust Fund Authority, RB, Transportation System: | |||||||
Series A (AMBAC), 5.00%, 12/15/32 | 2,000 | 2,097,640 | |||||
Series B, 5.25%, 6/15/36 (c) | 1,640 | 1,724,314 | |||||
3,821,954 | |||||||
New York — 13.6% | |||||||
City of New York New York Municipal Water Finance Authority, RB, Water & Sewer System, Fiscal 2009, Series A, 5.75%, 6/15/40 | 1,410 | 1,567,890 | |||||
City of New York New York Municipal Water Finance Authority, Refunding RB, Water & Sewer System: | |||||||
Series FF, 5.00%, 6/15/45 | 1,500 | 1,554,712 | |||||
Series FF-2, 5.50%, 6/15/40 | 1,995 | 2,135,633 | |||||
City of New York New York Transitional Finance Authority, BARB, Series S-3, 5.25%, 1/15/39 | 1,500 | 1,644,150 | |||||
New York Liberty Development Corp., RB, 1 World Trade Center Port Authority Construction, 5.25%, 12/15/43 | 2,205 | 2,301,116 | |||||
BLACKROCK MUNICIPAL INCOME INVESTMENT TRUST | OCTOBER 31, 2013 | 4 |
Schedule of Investments (continued) | BlackRock Municipal Income Investment Trust (BBF) |
(Percentages shown are based on Net Assets) |
Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts (b) | Par (000) |
Value | |||||
New York (concluded) | |||||||
New York Liberty Development Corp., Refunding RB, 4 World Trade Center Project, 5.75%, 11/15/51 (c) | $ | 1,300 | $ | 1,387,789 | |||
New York State Dormitory Authority, ERB, Series B, 5.25%, 3/15/38 | 2,000 | 2,118,700 | |||||
12,709,990 | |||||||
Texas — 5.6% | |||||||
City of San Antonio Texas Public Service Board, Refunding RB, Electric and Gas System, Series A, 5.25%, 2/01/31 (c) | 2,025 | 2,238,569 | |||||
Harris County Cultural Education Facilities Finance Corp., RB, Texas Children's Hospital Project, 5.50%, 10/01/39 | 2,750 | 3,020,600 | |||||
5,259,169 | |||||||
Virginia — 1.0% | |||||||
County of Fairfax Virginia IDA, Refunding RB, Health Care, Inova Health System, Series A, 5.50%, 5/15/35 | 899 | 956,147 | |||||
Total Municipal Bonds Transferred to Tender Option Bond (TOB) Trusts — 59.3% | 55,316,897 | ||||||
Total Long-Term Investments (Cost — $141,184,290) — 160.4% |
149,747,550 | ||||||
Short-Term Securities | Shares |
Value | |||||
FFI Institutional Tax-Exempt Fund, 0.03% (d)(e) | 2,619,714 | $ | 2,619,714 | ||||
Total Short-Term Securities (Cost — $2,619,714) — 2.8% |
2,619,714 | ||||||
Total Investments (Cost — $143,804,004*) — 163.2% |
152,367,264 | ||||||
Other Assets Less Liabilities — 5.7% | 5,371,444 | ||||||
Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (32.3%) | (30,188,083 | ) | |||||
VRDP Shares, at Liquidation Value — (36.6%) | (34,200,000 | ) | |||||
Net Assets Applicable to Common Shares — 100.0% | $ | 93,350,625 | |||||
* | As of October 31, 2013, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows: |
||||||
Tax cost | $ | 114,156,083 | |||||
Gross unrealized appreciation | $ | 9,136,702 | |||||
Gross unrealized depreciation | (1,107,895 | ) | |||||
Net unrealized appreciation | $ | 8,028,807 | |||||
Notes to Schedule of Investments | ||
(a) | US government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par. | |
(b) | Represent bonds transferred to a TOB. In exchange the Trust acquired residual interest certificates. These bonds serve as collateral in a financing transaction. | |
(c) | All or a portion of security is subject to a recourse agreement, which may require the Trust to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Trust could ultimately be required to pay under the agreements, which expire from October 1, 2016 to November 15, 2019 is $7,865,394. | |
(d) | Investments in issuers considered to be an affiliate of the Trust during the period ended October 31, 2013, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows: | |
Affiliate | Shares Held at July 31, 2013 |
Net Activity |
Shares Held at October 31, 2013 |
Income | |||||||||||||||||
FFI Institutional Tax-Exempt Fund | 4,710,703 | (2,090,989) | 2,619,714 | $ | 290 | ||||||||||||||||
(e) | Represents the current yield as of report date. |
BLACKROCK MUNICIPAL INCOME INVESTMENT TRUST | OCTOBER 31, 2013 | 5 |
Schedule of Investments (continued) | BlackRock Municipal Income Investment Trust (BBF) |
Portfolio Abbreviations | |
To simplify the listings of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list: | |
AGC | Assured Guarantee Corp. |
AGM | Assured Guaranty Municipal Corp. |
AMBAC | American Municipal Bond Assurance Corp. |
ARB | Airport Revenue Bonds |
BARB | Building Aid Revenue Bonds |
ERB | Education Revenue Bonds |
GARB | General Airport Revenue Bonds |
GO | General Obligation Bonds |
IDA | Industrial Development Authority |
IDB | Industrial Development Board |
ISD | Independent School District |
LRB | Lease Revenue Bonds |
RB | Revenue Bonds |
S/F | Single Family |
• |
Financial futures contracts as of October 31, 2013 were as follows: |
Contracts Sold |
Issue | Exchange | Expiration | Notional Value |
Unrealized Depreciation |
|||
(57) | 10-Year US Treasury Note | Chicago Board of Trade | December 2013 |
$ | 7,259,484 | $ | (4,515) | |
• | Fair Value Measurements - Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows: | |
• | Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Trust has the ability to access | |
• | Level 2 — other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs) | |
• | Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Trust's own assumptions used in determining the fair value of investments and derivative financial instruments) | |
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Trust's policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and is not necessarily an indication of the risks associated with investing in those securities. For information about the Trust's policy regarding valuation of investments and derivative financial instruments, please refer to the Trust's most recent financial statements as contained in its annual report. |
BLACKROCK MUNICIPAL INCOME INVESTMENT TRUST | OCTOBER 31, 2013 | 6 |
Schedule of Investments (concluded) | BlackRock Municipal Income Investment Trust (BBF) |
The following tables summarize the Trust's investments and derivative financial instruments categorized in the disclosure hierarchy as of October 31, 2013: |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets: | ||||||||||||||||
Investments: | ||||||||||||||||
Long-Term Investments 1 | — | $ | 149,747,550 | — | $ | 149,747,550 | ||||||||||
Short-Term Securities | $ | 2,619,714 | — | — | 2,619,714 | |||||||||||
Total | $ | 2,619,714 | $ | 149,747,550 | — | $ | 152,367,264 | |||||||||
1 | See above Schedule of Investments for values in each state or political subdivision. |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Derivative Financial Instruments 2 | |||||||||||||||
Liabilities: | |||||||||||||||
Interest rate contracts | $ | (4,515 | ) | — | — | $ | (4,515 | ) | |||||||
2 | Derivative financial instruments are financial futures contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
Certain
of the Trust's assets and/or liabilities are held at carrying amount, which approximates fair value for financial reporting purposes.
As of October 31, 2013, such assets and/or liabilities are categorized within the disclosure hierarchy as follows: |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Cash | $ | 5,210 | — | — | $ | 5,210 | |||||||||||
Cash pledged for financial futures contracts | 101,000 | — | — | 101,000 | |||||||||||||
Liabilities: | |||||||||||||||||
TOB trust certificates | — | $ | (30,182,374 | ) | — | (30,182,374) | |||||||||||
VRDP Shares | — | (34,200,000 | ) | — | (34,200,000) | ||||||||||||
Total | $ | 106,210 | $ | (64,382,374 | ) | — | $ | (64,276,164) | |||||||||
There were no transfers between levels during the period ended October 31, 2013. |
BLACKROCK MUNICIPAL INCOME INVESTMENT TRUST | OCTOBER 31, 2013 | 7 |
Item 2 – | Controls and Procedures | |
2(a) – | The registrant's principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the 1940 Act)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended. | |
2(b) – | There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. | |
Item 3 – | Exhibits | |
Certifications – Attached hereto | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. | ||
BlackRock Municipal Income Investment Trust | ||
By: | /s/ John M. Perlowski | |
John M. Perlowski | ||
Chief Executive Officer (principal executive officer) of | ||
BlackRock Municipal Income Investment Trust | ||
Date: December 23, 2013 | ||
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. | ||
By: | /s/ John M. Perlowski | |
John M. Perlowski | ||
Chief Executive Officer (principal executive officer) of | ||
BlackRock Municipal Income Investment Trust | ||
Date: December 23, 2013 | ||
By: | /s/ Neal J. Andrews | |
Neal J. Andrews | ||
Chief Financial Officer (principal financial officer) of | ||
BlackRock Municipal Income Investment Trust | ||
Date: December 23, 2013 | ||