BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC
N-30D, 1995-12-26
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- --------------------------------------------------------------------------------

        THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
                          ANNUAL REPORT TO SHAREHOLDERS
                          REPORT OF INVESTMENT ADVISER

- --------------------------------------------------------------------------------

                                                               November 30, 1995

Dear Shareholder,

    Since the inception of The BlackRock California Investment Quality Municipal
Trust Inc. in 1993, the market for  investments  in fixed income  securities has
witnessed an unprecedented amount of interest rate volatility, which has changed
the  landscape  for  fixed  income  investors.  1995 has  been a great  year for
investments in the bond market following the  disappointments of 1994, as yields
have  declined  and  the  value  of  fixed  income   securities   has  increased
dramatically.

    Looking forward, we maintain a positive outlook for the market's performance
in 1996.  The  economy  currently  appears to be  growing  at a steady  rate and
inflation  appears to be under  control.  Market  participants  are beginning to
agree that the Federal Reserve has achieved the "soft landing" that they set out
to accomplish  through a series of interest rate  increases  last year,  and are
optimistic  for a further  ease in the  Fed's  monetary  policy  should a budget
accord emphasizing fiscal restraint be reached in Washington.

    BlackRock Financial Management, Inc. is completing its first year as part of
PNC Bank Corporation, becoming an essential part of PNC's Asset Management Group
by taking a leadership role in their fixed income management operations. We have
witnessed  consistent growth of our assets under management,  which now stand at
approximately  $34  billion,  as both  retail  and  institutional  fixed  income
investors  continue to recognize the value of our risk  management  capabilities
and long term investment philosophy.

    We look forward to  maintaining  your respect and  confidence and to serving
your financial needs in the coming year.

Sincerely,




Laurence D. Fink                   Ralph L. Schlosstein
Chairman                           President



                                       1
<PAGE>


                                                               November 30, 1995

Dear Shareholder:

    We are pleased to present  the annual  report for The  BlackRock  California
Investment  Quality  Municipal  Trust Inc. ("RAA" or "the Trust") for the fiscal
year ended  October 31, 1995. We would like to take this  opportunity  to review
the Trust's strong performance over its fiscal year, from both a stock price and
net asset value (NAV)  perspective,  as well as to review the Trust's  portfolio
strategy  and the  opportunities  available  to the Trust in the  current  lower
interest rate environment.

    The Trust is a  diversified,  actively  managed  closed-end  bond fund whose
investment  objective  is to provide  high  current  income  exempt from regular
federal and California  state income taxes  consistent with the  preservation of
capital.  The Trust seeks to achieve this  objective by investing in  investment
grade  (rated  "AAA"  to  "BBB"  by one  of the  major  ratings  agencies  or of
equivalent  quality)  municipal debt securities  issued by local  municipalities
throughout California.

    The  Trust's  shares are traded on the  American  Stock  Exchange  under the
symbol RAA. The table below  summarizes  the  performance  of the Trust's  stock
price and NAV over the fiscal year:

                            ----------------------------------------------------
                            10/31/95   10/31/94   Change     High       Low
- --------------------------------------------------------------------------------
Stock Price                 $12.625    $10.625    18.82%    $12.875    $10.25
- --------------------------------------------------------------------------------
Net Asset Value (NAV)       $13.85     $11.74     17.97%    $13.97     $10.94
- --------------------------------------------------------------------------------
Premium/(Discount) to NAV   (8.84%)    (9.73%)    (0.89%)   (2.11%)   (11.30%)
- --------------------------------------------------------------------------------

The Fixed Income Markets

    The dramatic rally in the capital  markets,  which caused  interest rates to
fall and prices of fixed income securities to increase  throughout late 1994 and
1995, has changed the market landscape for fixed income investors.  The rally in
the  Treasury  market,  sparked  by a  slowdown  in  economic  growth and modest
inflation data, began during the fourth quarter of 1994 and accelerated  through
the first,  second and third quarters of 1995. The perceived threat of inflation
diminished as economic reports became increasingly pessimistic during the second
quarter.  With  investor  confidence  in the  value of fixed  income  securities
renewed, market demand accelerated.

    The municipal debt market has posted strong  performance in 1995.  Yields on
municipal  securities have declined  dramatically from their fourth quarter 1994
levels, led by a 94 basis point drop (0.94%) in the yield on AAA 10-year General
Obligation  securities  from 5.67% on October  31,  1994 to 4.73% on October 31,
1995. A relatively  light amount of new issuance  this year has also  encouraged
the rise in price for these securities.

    Concerns  over tax reform  proposals  were  apparent  for much of this year.
Discussions of a "flat tax" on investment  income  dampened some investor demand
for longer  maturity  municipal debt  securities.  Some versions of the flat tax
proposal  would  eliminate  the current tax benefits of  municipal  bonds versus
their taxable  counterparts.  At this time,  the yields of municipal  securities
imply the expectation for a flat tax on investment income at approximately  23%.
Many economists believe that this may be an overreaction to the actual threat of
tax reform  given the  numerous  obstacles in  Washington  to this  legislation.
However, BlackRock remains attuned to the current effects of tax reform dialogue
on the municipal  market,  as it may create short term  dislocations and present
potential buying opportunities for the Trust.

    The California state economy has been slowly improving all year. Strength in
several  sectors,  including home sales,  exports,  and an improving job market,
indicate that the state is poised for further expansion.  However, military base
closings and  corporate  downsizing  have led many  analysts to believe that the
growth may be slow.  The market for  California's  municipal  


                                       2
<PAGE>

debt  has  performed   well  over  the  Trust's  fiscal  year  due  to  positive
expectations  for the  economy and a light  calendar  for new  issuance.  We are
optimistic for continued strong  performance of The California  Municipal Market
versus the national market in 1996.

The Closed-End Bond Fund Industry

    Due to the strength of the municipal markets this year, closed-end municipal
funds have posted dramatic  returns on a net asset value basis in 1995 and often
outperformed  taxable funds for the year.  The BlackRock  California  Investment
Quality  Municipal  Trust  Inc.  ranked  37 out of the  entire  universe  of 354
closed-end  bond funds for the year ending October 31, 1995,  posting a 12-month
return on NAV of 24.81%  (vs.  the  average of  17.23%),  as  reported by Lipper
Analytical Services, Inc.

    However,  the  discount  of RAA's  stock  price to its NAV,  like its peers,
indicates  that  investor  interest in the  closed-end  bond fund  market  still
remains  subdued.  Lipper  Analytical  notes that  approximately  74% of taxable
closed-end bond funds and 93% of municipal closed-end bond funds were trading at
discounts to net asset value on October 31, 1995. As investors continue to focus
on the rallying stock market, the opportunity to purchase shares of RAA for less
than the market value of the underlying assets persists.

The Trust's Portfolio and Investment Strategy

    BlackRock  Financial  Management,  Inc.  manages  the Trust's  portfolio  to
diversify  exposure to various  sectors,  issuers,  revenue sources and security
types.  BlackRock's  investment  strategy  emphasizes a relative value approach,
rotating sectors to benefit from changing market conditions, and controlling the
interest rate sensitivity of the Trust relative to a predetermined benchmark. We
remain   attentive  to  changes  in  the  market  in  order  to   capitalize  on
opportunities within specific issues or sectors.

    Our investment strategy at the current time responds to the steepness of the
AAA municipal yield curve, and the potential for a further decline in rates. The
following charts detail the current asset and credit quality  allocations of the
portfolio,  in comparison to the portfolio on October 31, 1994.  Our emphasis on
certain  sectors of the state  municipal  market has changed over the year.  For
instance,  the Trust has decreased its exposure to sales tax bonds,  in favor of
more housing and transportation issues.
Also,  in  terms  of  credit  quality  bias,  we  continue  to  favor  AAA and A
securities.


                                Sector Breakdown
         ---------------------------------------------------------------
             Sector                 October 31, 1995  October 31, 1994
         ---------------------------------------------------------------
           Power                           23%              19%
         ---------------------------------------------------------------
           Transportation                  16%              13%
         ---------------------------------------------------------------
           Lease                           10%              15%
         ---------------------------------------------------------------
           University                      10%              10%
         ---------------------------------------------------------------
           Housing                         10%               5%
         ---------------------------------------------------------------
           Water & Sewer                    9%              14%
         ---------------------------------------------------------------
           City, County & State             9%               5%
         ---------------------------------------------------------------
           Miscellaneous Revenue            9%               5%
         ---------------------------------------------------------------
           Hospital                         2%               --
         ---------------------------------------------------------------
           Pollution Control                2%               --
         ---------------------------------------------------------------
           Sales Tax                        --              14%
         ---------------------------------------------------------------


                                       3
<PAGE>

        -----------------------------------------------------------------
          Standard & Poor's/Moody's
               Credit Rating        October 31, 1995  October 31, 1994
        -----------------------------------------------------------------
                  AAA/Aaa                 41%               55%
        -----------------------------------------------------------------
                  AA/Aa                   14%                9%
        -----------------------------------------------------------------
                  A/A                     38%               32%
        -----------------------------------------------------------------
                  BBB/Baa                  7%                4%
        -----------------------------------------------------------------

    We look forward to managing  the Trust in the coming  fiscal year 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, Robert Kapito Kevin Klingert
Vice Chairman and Senior  Portfolio  Manager  Principal and Municipal  Portfolio
Manager BlackRock Financial  Management,  Inc. BlackRock  Financial  Management,
Inc.

- --------------------------------------------------------------------------------
        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 10/31/95:                      $12.625
- --------------------------------------------------------------------------------
  Net Asset Value as of 10/31/95:                           $13.85
- --------------------------------------------------------------------------------
  Yield on Closing Stock Price as of 10/31/95 ($12.625)1:    6.24%
- --------------------------------------------------------------------------------
  Current Monthly Distribution per Share2:                  $0.0656
- --------------------------------------------------------------------------------
  Current Annualized Distribution per Share2:               $.7872
- --------------------------------------------------------------------------------

1Yield on Closing Stock Price is  calculated by dividing the current  annualized
 distribution per share by the closing stock price per share.

2The distribution is not constant and is subject to change.


                                       4
<PAGE>

The BlackRock California Investment
Quality Municipal Trust Inc.
Portfolio of Investments
October 31, 1995

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
           Principal                                                                               Option
Rating*     Amount                                                                                  Call             Value
(Unaudited) (000)                        Description                                             Provisions+        (Note 1)
- -----------------------------------------------------------------------------------------------------------------------------

                  LONG-TERM INVESTMENTS-149.7%
<S>        <C>      <C>                                                                         <C>               <C>       
AAA        $1,000   Anaheim Pub. Fin. Auth. Rev., Elec. Util. Projs., 5.55%, 10/01/12, MBIA ...  4/03 at 102       $  983,610
A1          1,000   California St., G.O., 5.75%, 3/01/19 ......................................  3/05 at 101          983,510
                    California St. Hsg. Fin. Agcy. Rev.,
A+            995     Ser. B-1, 6.45%, 2/01/11 ................................................  8/04 at 102        1,026,681
AA-         1,000     Home Mtge., Ser. G, 7.20%, 8/01/14 ......................................  8/04 at 102        1,082,890
                    California St. Pub. Wks. Lease Rev., Ser. A,
A           1,000     Dept. of Corrections, 6.875%, 11/01/14 .................................. 11/04 at 102        1,081,850
AAA         1,000     St. Univ. Proj., 6.40%, 12/01/16, AMBAC ................................. 12/02 at 102        1,052,110
A           1,000     St. Univ. Proj., 6.10%, 10/01/06 ........................................ 10/04 at 102        1,069,470
BBB-        1,385   Foothill/Eastern Trans. Agcy., Ser. A, Zero Coupon, 1/01/04 ............... No Opt. Call          819,352
AA          1,000   Los Angeles Pub. Wks. Fin. Auth. Rev., Regl. Park & Open Space Dist.-A,
                      6.00%, 10/01/15 ......................................................... 10/04 at 102        1,004,250
AA          1,000   Los Angeles Sanit. Dist. Fin. Auth. Rev., Solid Waste Res., 5.375%,
                      10/01/13 ................................................................ 10/03 at 102          951,550
AAA         1,000   Los Angeles Wastewtr. Sys. Rev., Ser. D, 5.20%, 11/01/21, FGIC ............ 11/03 at 102          926,270
A           1,000   MSR Pub. Pwr. Agcy., San Juan Proj., Ser. C, 6.875%, 7/01/19 ..............  1/97 at 102        1,022,150
AAA         1,000   Orange Cnty. Arpt. Dev. Rev., 5.50%, 7/01/13, MBIA ........................  7/03 at 102          950,930
AAA         1,000   Sacramento Utility Dist. Elec. Rev., Ser. E, 5.70%, 5/15/12, MBIA .........  5/03 at 102        1,006,760
AAA         1,000   San Diego Sewer Rev., Ser. A, 5.25%, 5/15/20, AMBAC .......................  5/03 at 102          934,650
AAA         1,000   San Francisco City & Cnty. Arpt. Comn. Rev., Intl. Arpt., Ser. 6, 6.125%,
                      5/01/09, AMBAC ..........................................................  5/04 at 102        1,048,890
BBB           750   San Joaquin Hills Trans. Corridor Agcy., Toll Rd. Rev., 6.75%, 1/01/32 ....  1/03 at 102          764,977
                    Southern California Pub. Pwr. Auth. Transm. Proj. Rev.,
AAA         1,000     5.50%, 7/01/20, MBIA ....................................................  7/02 at 100          960,830
A+          1,000     6.125%, 7/01/18 .........................................................  7/02 at 102        1,013,060
                    Univ. of California Rev.,
A-          1,135     Ser. B, 6.30%, 9/01/13 ..................................................  9/03 at 102        1,157,042
AAA         1,000     Ser. D, 6.10%, 9/01/10, MBIA ............................................  9/02 at 102        1,040,880
                                                                                                                  -----------
                    Total long-term investments (cost $20,160,818) ............................                    20,881,712
                                                                                                                  -----------
                    SHORT-TERM INVESTMENTS**-7.9%
A1+          500    California Poll. Ctrl. Fin. Auth. Rev., Shell Oil Co. Proj.,
                      Ser. C, 3.80%, 11/01/95, FRDD ...........................................                       500,000
A1+          600    California St. Hlth. Facs. Fin. Auth. Rev., Sutter Hlth. Sys. Proj.,
                      Ser. A, 3.80%, 11/01/95, FRDD ...........................................                       600,000
                                                                                                                  -----------
                    Total short-term investments (cost $1,100,000) ............................                     1,100,000
                                                                                                                  -----------
                    Total Investments-157.6% (cost $21,260,818) ...............................                    21,981,712
                    Liabilities in excess of other assets-(3.8)% ..............................                      (536,033)
                    Liquidation value of preferred stock-(53.8)% ..............................                    (7,500,000)
                                                                                                                  -----------
                    Net Assets Applicable to Common Shareholders-100% .........................                   $13,945,679
                                                                                                                  ===========

<FN>
- --------------------
 * Rating: using the higher of Standard & Poor's, Moody's or Fitch's rating.

** For purposes of amortized cost valuation, the maturity date of this instrument is considered to be the earlier of the next date
   on which the security can be redeemed at par or the next date on which the rate of interest is adjusted.  
 + Option call provisions: date (month/year) and prices of the earliest optional call on  redemption.  There  may  be  other  call 
   provisions at varying prices at later dates.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
                              Key to Abbreviations

         AMBAC    -American Municipal Bond Assurance Corporation
         FGIC     -Financial Guaranty Insurance Company
         FRDD     -Floating Rate Daily Demand**
         G.O.     -General Obligation Bond
         MBIA     -Municipal Bond Insurance Association
- --------------------------------------------------------------------------------
                       See Notes to Financial Statements.


                                       5
<PAGE>

(Left Column)
- -----------------------------------------------------------------
The BlackRock California Investment
Quality Municipal Trust Inc.
Statement of Assets and Liabilities
October 31, 1995
- -----------------------------------------------------------------
Assets

Investments, at value (cost $21,260,818) (Note 1) ..  $21,981,712

Cash ...............................................       66,092

Interest receivable ................................      371,067

Deferred organization expenses and other assets ....        8,346
                                                      -----------
                                                       22,427,217
                                                      -----------
Liabilities

Payable for investments purchased ..................      949,566

Advisory fee payable (Note 2) ......................        6,347

Dividends payable-common stock .....................        4,455

Dividends payable-preferred stock ..................        4,253

Administration fee payable (Note 2) ................        1,813

Other accrued expenses .............................       15,104
                                                      -----------
                                                          981,538
                                                      -----------
Net Investment Assets ..............................  $21,445,679
                                                      ===========
Net investment assets were comprised of:
  Common stock:
    Par value (Note 4) .............................   $   10,071

    Paid-in capital in excess of par ...............   13,897,103

  Preferred stock (Note 4) .........................    7,500,000
                                                      -----------
                                                       21,407,174

Undistributed net investment income ................      142,925

Accumulated net realized loss ......................     (825,314)

Net unrealized appreciation ........................      720,894
                                                      -----------
Net investment assets, October 31, 1995 ............  $21,445,679
                                                      ===========
Net assets applicable to common shareholders .......  $13,945,679
                                                      ===========
Net asset value per share:
  ($13,945,679 / 1,007,093 shares of common
  stock issued and outstanding) ....................       $13.85
                                                           ======
See Notes to Financial Statements.


(Right Column)
- -----------------------------------------------------------------
The BlackRock California Investment
Quality Municipal Trust Inc.
Statement of Operations
Year Ended October 31, 1995
- -----------------------------------------------------------------
Net Investment Income

Income

  Interest and discount earned ......................  $1,257,569
                                                       ----------

Expenses

  Investment advisory ...............................      69,069

  Reports to shareholders ...........................      20,000

  Administration ....................................      19,734

  Auction agent .....................................      32,000

  Directors .........................................      12,000

  Transfer agent ....................................      10,500

  Audit .............................................       8,500

  Legal .............................................       5,000

  Custodian .........................................       2,000

  Miscellaneous .....................................      16,562
                                                       ----------
  Total expenses ....................................     195,365
                                                       ----------
Net investment income ...............................   1,062,204
                                                       ----------
Realized and Unrealized Gain
on Investments (Note 3)

Net realized gain on investments ....................     156,926

Net change in unrealized appreciation on
  investments .......................................   1,963,267
                                                       ----------
Net gain on investments .............................   2,120,193
                                                       ----------
Net Increase In Net Investment
Assets Resulting from Operations ....................  $3,182,397
                                                       ==========

See Notes to Financial Statements.


                                       6
<PAGE>

- --------------------------------------------------------------------------------
The BlackRock California Investment Quality Municipal Trust Inc.
Statements of Changes in Net Investment Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>

Increase (Decrease)in Net Investment Assets                                         Year Ended October 31,
                                                                                -----------------------------
                                                                                    1995              1994
                                                                                    ----              ----
Operations:
<S>                                                                             <C>               <C>        
Net investment income ......................................................... $ 1,062,204       $ 1,043,684

  Net realized gain (loss) on investments .....................................     156,926          (982,210)

  Net change in unrealized appreciation (depreciation) on investments .........   1,963,267        (2,049,564)
                                                                                -----------       -----------
  Net increase (decrease) in net investment assets resulting from operations ..   3,182,397        (1,988,090)

Dividends and distributions:

  To common shareholders from net investment income ...........................    (792,752)         (792,772)

  To preferred shareholders from net investment income ........................    (269,472)         (182,317)

  To common shareholders from capital gains ...................................        -              (25,882)

  To preferred shareholders from capital gains ................................        -               (5,503)

Capital stock transactions:

  Capital charge with respect to initial public offering of shares ............        -              (16,356)
                                                                                -----------       -----------
    Total increase (decrease) .................................................   2,120,173        (3,010,920)

Net Investment Assets

Beginning of year .............................................................  19,325,506        22,336,426
                                                                                -----------       -----------
End of year ................................................................... $21,445,679       $19,325,506
                                                                                ===========       ===========
</TABLE>

                       See Notes to Financial Statements.


                                       7
<PAGE>

<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
The BlackRock California Investment Quality Municipal Trust Inc.
Financial Highlights
- ------------------------------------------------------------------------------------------------------------
                                                                                                For the
                                                                                                Period
                                                                      Year Ended October 31,  June 4, 1993*
                                                                      ----------------------    Through
PER SHARE OPERATING PERFORMANCE:                                         1995        1994   October 31, 1993
                                                                         ----        ----   ----------------
<S>                                                                    <C>         <C>         <C>     
Net asset value, beginning of period                                   $  11.74    $  14.73    $  14.10
                                                                       --------    --------    --------
  Net investment income                                                    1.05        1.04         .31

  Net realized and unrealized gain (loss) on investments                   2.12       (3.01)        .83
                                                                       --------    --------    --------
Net increase (decrease) from investment operations                         3.17       (1.97)       1.14
                                                                       --------    --------    --------
Dividends from net investment income to:

  Common shareholders                                                      (.79)       (.79)       (.20)

  Preferred shareholders                                                   (.27)       (.18)       (.04)
                                                                       --------    --------    --------
  Total dividends                                                         (1.06)       (.97)       (.24)
                                                                       --------    --------    --------
Distributions from capital gains to:

  Common shareholders                                                        -         (.03)         -

  Preferred shareholders                                                     -         (.01)         -
                                                                       --------    --------    --------
  Total distributions                                                        -         (.04)         -
                                                                       --------    --------    --------
Capital charge with respect to issuance of common and preferred stock        -         (.01)       (.27)
                                                                       --------    --------    --------
Net asset value, end of period**                                       $  13.85    $  11.74    $  14.73#
                                                                       ========    ========    ======== 
Per share market value, end of period**                                $ 12.625    $ 10.625    $  14.00
                                                                       ========    ========    ========

TOTAL INVESTMENT RETURN+:                                                 26.86%     (18.85)%       .68%

RATIOS TO AVERAGE NET ASSETS OF COMMON SHAREHOLDERS++:

Expenses                                                                   1.52%       1.25%       1.07%+++

Net investment income                                                      8.24%       7.81%       5.31%+++

SUPPLEMENTAL DATA:

Average net assets of common shareholders (in thousands)               $ 12,892    $ 13,362    $ 14,504

Portfolio turnover rate    149%   184%   13%

Net assets of common shareholders, end of period (in thousands)        $ 13,946    $ 11,826    $ 14,836

Asset coverage per share of preferred stock, end of period             $ 71,485    $128,837    $148,910

Preferred stock outstanding (in thousands)                             $  7,500    $  7,500    $  7,500
<FN>
- ----------
 * Commencement of investment operations.

** Net asset value and market value are published in The Wall Street Journal each Monday.

 # Net asset value immediately after the closing of the first public offering was $14.01.

 + Total investment return is calculated assuming a purchase of common stock at the current market value on the first day and a sale
   at the current market value on the last day of each period reported. Dividends and distributions are assumed for purposes of this
   calculation to be reinvested at prices obtained under the Trust's dividend reinvestment plan.  This calculation does not  reflect
   brokerage commissions. Total investment returns for periods of less than one year are not annualized. 

++ Ratios calculated on the basis of income and expenses applicable to both the common and preferred shares relative to the  average
   net assets of common shareholders. Ratios do not reflect the effect of dividend payments to preferred shareholders.

+++ Annualized.

    The information above represents the audited operating performance for a share of common  stock  outstanding,  total  investment
    return, ratios to average net assets and other supplemental data for the period 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.
</FN>
</TABLE>
                       See Notes to Financial Statements.


                                       8
<PAGE>

(Left Column)

- --------------------------------------------------------------------------------
The BlackRock California Investment
Quality Municipal Trust Inc.
Notes to Financial Statements
- --------------------------------------------------------------------------------

Note 1. 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 had no transactions until May 27, 1993
when it sold 7,093 shares of common  stock for  $100,012 to BlackRock  Financial
Management,  Inc., (the "Adviser").  Investment  operations commenced on June 4,
1993.

    The Trust's  investment  objective is to provide high current  income exempt
from regular  federal and  California  state income  taxes  consistent  with the
preservation  of capital.  The ability of issuers of debt securities held by the
Trust to meet their obligations may be affected by economic  developments in the
state, a specific industry or region. No assurance can be given that the Trust's
investment objective will be achieved.

    The following is a summary of significant  accounting  policies  followed by
the Trust.

Securities Valuation:  Municipal securities  (including  commitments to purchase
such  securities  on a  "when-issued"  basis)  are valued on the basis of prices
provided  by  a  pricing  service  which  uses   information   with  respect  to
transactions  in bonds,  quotations  from bond dealers,  market  transactions in
comparable   securities  and  various   relationships   between   securities  in
determining values. 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.

    Short-term  securities  which  mature  in more  than 60 days are  valued  at
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost, if their term to maturity from date of purchase is
60 days or less,  or,  by  amortizing  their  value  on the  61st  day  prior to
maturity,  if their original term to maturity from date of purchase  exceeded 60
days.

Option  Selling/Purchasing:  When the Trust  sells or  purchases  an option,  an
amount  equal to the  premium  received  or paid by the Trust is  recorded  as a
liability or an asset and is

(Right Column)

subsequently  adjusted  to the  current  market  value of the option  written or
purchased.  Premiums  received or paid from writing or purchasing  options which
expire  unexercised  are treated by the Trust on the expiration date as realized
gains or losses.  The  difference  between  the  premium  and the amount paid or
received  on  effecting  a  closing  purchase  or  sale  transaction,  including
brokerage commissions,  is also treated as a realized gain or loss. If an option
is  exercised,  the premium paid or received is added to the  proceeds  from the
sale or cost of the  purchase in  determining  whether the Trust has  realized a
gain or a loss on investment  transactions.  The Trust,  as writer of an option,
may have no control over whether the underlying securities may be sold (call) or
purchased  (put) and as a result bears the market risk of an unfavorable  change
in the price of the security underlying the written option.

Financial  Futures  Contracts:  A futures  contract is an agreement  between two
parties to buy and sell a financial instrument for a set price on a future date.
Initial margin deposits are made upon entering into futures contracts and can be
either  cash or  securities.  During the period the  futures  contract  is open,
changes in the value of the  contract  are  recognized  as  unrealized  gains or
losses by  "marking-to-market"  on a daily basis to reflect the market  value of
the contract at the end of each day's  trading.  Variation  margin  payments are
made or  received,  depending  upon  whether  unrealized  gains  or  losses  are
incurred. When the contract is closed, the Trust records a realized gain or loss
equal to the  difference  between  the  proceeds  from (or cost of) the  closing
transaction and the Trust's basis in the contract.

  Financial  futures  contracts,  when used by the Trust,  help in maintaining a
targeted duration.  Duration is a measure of the price sensitivity of a security
or a portfolio to relative changes in interest rates.  For instance,  a duration
of "one" means that a  portfolio's  or a  security's  price would be expected to
change by approximately one percent with a one percent change in interest rates,
while a duration of "five"  would imply that the price would move  approximately
five  percent in  relation to a one percent  change in interest  rates.  Futures
contracts  can be sold to  effectively  shorten  an  otherwise  longer  duration
portfolio.  In the same sense,  futures contracts can be purchased to lengthen a
portfolio that is shorter than its duration  target.  Thus, by buying or selling
futures contracts,  the Trust can effectively "hedge" more volatile positions so
that  changes in  interest  rates do not change the  duration  of the  portfolio
unexpectedly.

  The Trust may invest in financial futures contracts  primarily for the purpose
of hedging its existing portfolio securities or

                                       9
<PAGE>

(Left Column)

securities the Trust intends to purchase against fluctuations in value caused by
changes  in  prevailing  market  interest  rates.  Should  interest  rates  move
unexpectedly,  the  Trust  may  not  achieve  the  anticipated  benefits  of the
financial  futures  contracts  and  may  realize  a  loss.  The  use of  futures
transactions  involves  the risk of  imperfect  correlation  in movements in the
price of futures contracts, interest rates and the underlying hedged assets. The
Trust is also at risk of not being able to enter into a closing  transaction for
the futures contract because of an illiquid secondary market. In addition, since
futures are used to shorten or lengthen a portfolio's duration,  there is a risk
that the portfolio may have  temporarily  performed  better without the hedge or
that the Trust may lose the  opportunity to realize  appreciation  in the market
price of underlying positions.

Short Sales: The Trust may make short sales of securities as a method of hedging
potential  price declines in similar  securities  owned.  When the Trust makes a
short  sale,  it may  borrow  the  security  sold  short and  deliver  it to the
broker-dealer  through  which  it made  the  short  sale as  collateral  for its
obligation  to deliver the security upon  conclusion of the sale.  The Trust may
have to pay a fee to borrow the  particular  securities  and may be obligated to
pay over any payments received on such borrowed  securities.  A gain, limited to
the price at which the Trust sold the security short, or a loss, unlimited as to
dollar amount,  will be recognized  upon the  termination of a short sale if the
market price is greater or less than the proceeds originally received.

Securities  Transactions  and Investment  Income:  Securities  transactions  are
recorded  on the trade  date.  Realized  and  unrealized  gains and  losses  are
calculated  on the  identified  cost basis.  Interest  income is recorded on the
accrual  basis and the Trust  accretes  original  issue  discounts  or amortizes
premium on securities purchased using the interest method.

Federal Income Taxes: For federal income tax purposes, the Trust is treated as a
separate taxpaying entity. It is the intent of the Trust to continue to meet the
requirements  of the Internal  Revenue Code  applicable to regulated  investment
companies  and to  distribute  all of its 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.

(Right Column)

Deferred  Organization  Expenses:  A total of $16,000 was incurred in connection
with the organization of the Trust. These costs have been deferred and are being
amortized  ratably  over a period  of  sixty  months  from  the  date the  Trust
commenced investment operations.

Note 2. Agreements

The  Trust  has  an  Investment  Advisory  Agreement  with  the  Adviser  and an
Administration  Agreement with Prudential Mutual Fund Management,  Inc. ("PMF"),
an indirect,  wholly-owned  subsidiary of The  Prudential  Insurance  Company of
America.

    The  investment  fee paid to the  Adviser is  computed  weekly  and  payable
monthly at an annual rate of 0.35% of the Trust's  average weekly net investment
assets.  The  administration fee paid to PMF is also computed weekly and payable
monthly at an annual rate of 0.10% of the Trust's  average weekly net investment
assets.

    Pursuant to the agreements,  the Adviser provides continuous  supervision of
the investment  portfolio and pays the compensation of officers of the Trust who
are affiliated  persons of the Adviser.  PMF pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses.

    On  February  28,  1995,  the advisor  was  acquired by PNC Bank,  N.A. As a
result,  the  Adviser  is a  wholly-owned  corporate  subsidiary  of  PNC  Asset
Management  Group,   Inc.,  the  holding  company  for  PNC's  asset  management
businesses.

Note 3. Portfolio
Securities

Purchases and sales of investment securities, other than short-term investments,
for the year ended  October 31, 1995  aggregated  $29,801,373  and  $29,901,633,
respectively.

    The federal income tax basis of the Trust's  investments at October 31, 1995
was  substantially   the  same  as  the  basis  for  financial   reporting  and,
accordingly,  net unrealized  appreciation for federal income tax purposes,  was
$720,894   (gross    unrealized    appreciation-$763,688;    gross    unrealized
depreciation-$42,794).

For federal income tax purposes,  the Trust had a capital loss  carryforward  at
October  31, 1995 of  approximately  $848,000  which will  expire in 2002.  Such
carryforward  amount  is after  realization  of  approximately  $134,000  in net
taxable  gains  recognized  during  the  fiscal  year ended  October  31,  1995.
Accordingly, no capital gain distribution is expected to be paid to shareholders
until net gains have been realized in excess of such amount.

                                       10
<PAGE>

(Left Column)

Note 4. Capital

There are 200 million shares of $.01 par value common stock  authorized.  Of the
1,007,093  shares  outstanding  at October 31,  1995,  the  Adviser  owned 7,093
shares.

    Offering  costs   ($104,994)   incurred  in  connection   with  the  Trust's
underwriting  of common stock have been charged to paid-in  capital in excess of
par of the common stock.

    The Trust may classify or  reclassify  any  unissued  shares of common stock
into  one or more  series  of  preferred  stock.  On July  29,  1993  the  Trust
reclassified  150 shares of common  stock and issued a series of Auction  Market
Preferred  Stock  ("Preferred  Stock")  Series  W7.  The  Preferred  Stock had a
liquidation  value  of  $50,000  per  share  plus  any  accumulated  but  unpaid
dividends.  On May 16, 1995 shareholders approved a proposal to split each share
of  Preferred  Stock into two  shares and  simultaneously  reduce  each  share's
liquidation  preference  from $50,000 to $25,000 plus any accumulated but unpaid
dividends. The stock split occurred on July 24, 1995.

    Underwriting  discounts  ($112,500) and offering costs ($75,344) incurred in
connection  with the  Preferred  Stock  offering  have been  charged  to paid-in
capital in excess of par of the common stock.

    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 3.00% to 4.99%
during the year ended October 31, 1995.

    The Trust may not declare dividends or make other distributions on shares of
common  stock 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%.

(Right Column)

  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,  the approval of the holders of a majority of
any outstanding preferred shares, voting separately as a class would be required
to (a)  adopt  any  plan of  reorganization  that  would  adversely  affect  the
preferred shares and (b) take any action  requiring a vote of security  holders,
including,  among other things,  changes in the Trust's  subclassification  as a
closed-end   investment  company  or  changes  in  its  fundamental   investment
restrictions.

Note 5. Dividends

Subsequent to October 31, 1995,  the Board of Directors of the Trust  declared a
dividend  from  undistributed  earnings  of  $0.0656  per common  share  payable
November 30, 1995 to shareholders of record on November 15, 1995.

  For the period  November 1, 1995 to November 30, 1995,  dividends  declared on
Preferred  Stock  totalled  $22,017 in aggregate for the  outstanding  Preferred
Stock.

                                       11
<PAGE>

Note 6. Quarterly Data
(Unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
                                                                 Net increase/   
                                             Net realized and    decrease in
                                                unrealized      net investment             Dividends
                              Net investment gains (losses)  on assets resulting Common shares Preferred shares*
                                 income         investments     from operations                                              Period
                                       Per              Per              Per              Per           Per   Share price of  end
    Quarterly         Total          Common           Common           Common           Common        Common  Common stock net asset
     period           income  Amount  share   Amount   share   Amount   share   Amount   share  Amount share    High    Low   value
    ---------         ------  -------------   --------------   --------------   --------------  ------------  -------------- -------
<S>                  <C>      <C>      <C>   <C>        <C>    <C>        <C>   <C>       <C>   <C>     <C>  <C>     <C>      <C>

November 1, 1993
to January 31, 1994 $301,401  $260,542 $.26  $ 112,026  $ .11  $ 372,568  $ .37 $224,076  $.22  $43,587 $.05 $14 1/4 $12 7/8  $14.84

February 1, 1994
to April 30, 1994    298,390   258,532  .26 (2,288,516) (2.27)(2,029,984) (2.01) 198,195   .20   41,050  .04  13 3/4  11 1/4   12.58

May 1, 1994
to July 31, 1994     302,866   260,859  .26    377,218    .37    638,077    .63  198,193   .20   48,416  .05  12      11 1/4   12.97

August 1, 1994
to October 31, 1994  307,462   263,751  .26 (1,232,502) (1.22)  (968,751)  (.96) 198,190   .20   54,767  .05  11 3/4   9 7/8   11.74

November 1, 1994
to January 31, 1995  314,677   272,661  .27    505,599    .50    778,260    .77  198,190   .19   68,381  .07  11 1/2  10 1/4   12.25

February 1, 1995
to April 30, 1995    312,600   264,234  .26    708,162    .71    972,396    .97  198,196   .20   67,596  .07  12 1/2  11 3/8   12.95

May 1, 1995
to July 31, 1995     313,879   264,454  .26    190,799    .19    455,253    .45  198,180   .20   70,985  .07  12 3/4  12       13.14

August 1, 1995
to October 31, 1995  316,413   260,855  .26    715,633    .72    976,488    .98  198,186   .20   62,510  .06  12 7/8  12 1/8   13.85
- ------------------------------------------------------------------------------------------------------------------------------------
<FN>
*For the year  ended  October  31,  1995 the  average  annualized  rate  paid to preferred shareholders was 3.59%.
</FN>
</TABLE>



                                       12
<PAGE>

- --------------------------------------------------------------------------------
        THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
                         REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------


The Shareholders and Board of Directors of
The BlackRock California Investment Quality Municipal Trust Inc.:

    We have  audited  the  accompanying  statement  of assets  and  liabilities,
including the portfolio of investments,  of The BlackRock California  Investment
Quality  Municipal Trust Inc. as of October 31, 1995 and the related  statements
of operations  for the year then ended and of changes in net  investment  assets
for each of the two years in the period then ended and the financial  highlights
for the each of the two years in the period  then ended and for the period  June
4, 1993  (commencement  of  investment  operations)  to October 31, 1993.  These
financial  statements  and financial  highlights are the  responsibility  of the
Trust's  management.  Our  responsibility  is to  express  an  opinion  on these
financial statements and financial highlights based on our audits.

    We  conducted  our audit in  accordance  with  generally  accepted  auditing
standards.  Those standards require that we plan and perform the audit to obtain
reasonable  assurance  about  whether the  financial  statements  and  financial
highlights are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  Our procedures included confirmation of securities owned at October
31, 1995 by  correspondence  with the custodian and brokers;  where replies were
not received from brokers, we performed other auditing procedures. An audit also
includes assessing the accounting principles used and significant estimates made
by  management,   as  well  as  evaluating  the  overall   financial   statement
presentation.  We believe  that our audits  provide a  reasonable  basis for our
opinion.

    In our opinion,  such financial  statements and financial highlights present
fairly,  in all  material  respects,  the  financial  position of The  BlackRock
California  Investment Quality Municipal Trust Inc. at October 31, 1995, and the
results of its  operations,  the  changes in its net  investment  assets and its
financial  highlights  for the  respective  stated  periods in  conformity  with
generally accepted accounting principles.




DELOITTE & TOUCHE LLP

New York, New York
December 8, 1995




                                       13
<PAGE>

- --------------------------------------------------------------------------------
        THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
                                 TAX INFORMATION
- --------------------------------------------------------------------------------

    We are required by the Internal Revenue Code to advise you within 60 days of
the Trust's  fiscal year end (October 31, 1995) as to the  federally  tax-exempt
interest dividends received by you during such fiscal year. Accordingly,  we are
advising  you that all  dividends  paid by the Trust during the fiscal year were
Federal and California State tax-exempt interest dividends.

- --------------------------------------------------------------------------------
                           DIVIDEND REINVESTMENT PLAN
- --------------------------------------------------------------------------------

    Pursuant  to  the  Trust's   Dividend   Reinvestment   Plan  (the   "Plan"),
shareholders will  automatically have all distributions of dividends and capital
gains  reinvested  by State Street Bank & Trust  Company  (the "Plan  Agent") in
Trust  shares  pursuant to the Plan  unless an election is made to receive  such
amounts in cash.  The Plan Agent will effect  purchases of shares under the Plan
in the open market.  Shareholders  who elect not to participate in the Plan will
receive all  distributions in cash paid by check in United States dollars mailed
directly to the  shareholders  of record (or if the shares are held in street or
other  nominee  name,  then to the nominee) by the Transfer  Agent,  as dividend
disbursing agent.

    The Plan Agent serves as agent for the  shareholders  in  administering  the
Plan.  After the Trust  declares a dividend or determines to make a capital gain
distribution,  the Plan Agent will, as agent for the  participants,  receive the
cash payment and use it to buy Trust shares in the open market,  on the American
Stock Exchange or elsewhere,  for the participants' accounts. The Trust will not
issue any new shares in connection with 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,  state or local income taxes that
may be payable on such dividends or distributions.

    Experience   under  the  Plan  may  indicate  that  changes  are  desirable.
Accordingly,  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 by the Plan
Agent upon at least 90 days' written  notice to all  shareholders  of the Trust.
The Plan may be  terminated by the Plan Agent or the Trust upon at least 30 days
written notice to all shareholders of the Trust. All  correspondence  concerning
the Plan should be directed to the Plan Agent at (800)  699-1BFM.  The addresses
are on the front of this report.

- --------------------------------------------------------------------------------
                             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.



                                       14
<PAGE>

- --------------------------------------------------------------------------------
        THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
                               INVESTMENT SUMMARY
- --------------------------------------------------------------------------------

The Trust's Investment Objective

The  BlackRock  California   Investment  Quality  Municipal  Trust's  investment
objective  is to provide  high current  income  exempt from regular  Federal and
California income tax consistent with the preservation of capital.

Who Manages the Trust?

BlackRock  Financial  Management,  Inc.  ("BlackRock"  or the  "Adviser") is the
investment adviser for the Trust.  BlackRock is a registered  investment adviser
specializing in fixed income securities.  Currently,  BlackRock manages over $34
billion of assets  across the  government,  mortgage,  corporate  and  municipal
sectors.  These  assets are managed on behalf of  institutional  and  individual
investors  in 21  closed-end  funds  traded  on the New York or  American  Stock
Exchanges,  several  open-end  funds and over 80 separate  accounts  for various
clients  in the U.S.  and  overseas.  BlackRock  is a  subsidiary  of PNC  Asset
Management  Group which is a division of PNC Bank,  N.A.,  the nation's  twelfth
largest banking organization.

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  investment  grade  ("BBB" by
Standard & Poor's and "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 Adviser.
The Trust  intends to invest  substantially  all of the assets in a portfolio of
investment  grade   California   Municipal   Obligations,   which  include  debt
obligations  issued by or on behalf of California,  its political  subdivisions,
agencies and instrumentalities and by other qualifying issuers that pay interest
which, in the opinion of the bond counsel of the issuer,  is exempt from regular
Federal and California income tax. California  Municipal  Obligations are issued
to obtain funds for various  public  functions,  including the  construction  of
public facilities, the refinancing of outstanding obligations,  the obtaining of
funds for general operating expenses and for loans to other public  institutions
and facilities.

What is the Adviser's Investment Strategy?

The Adviser 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.  The Adviser  actively
manages the assets in relation to market  conditions  and interest rate changes.
Depending  on yield and  portfolio  allocation  considerations,  the Adviser 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.  The Trust issued  preferred  stock to leverage  the  portfolio at
approximately  35% of total assets.  See "Leverage  Considerations in the Trust"
below.

How Are the Trust's Shares Purchased and Sold? Does the Trust Pay Dividends 
Regularly?

The Trust's  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 last business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional  shares  of the fund  through  the  Trust's  transfer  agent,  Boston
Financial  Data  Services.  Investors  who wish to hold  shares  in a  brokerage
account  should check with their  financial  advisor to determine  whether their
brokerage firm offers dividend reinvestment services.

Leverage Considerations in the Trust

Leverage  increases  the duration (or price  sensitivity  of the net assets with
respect to changes  in  interest  rates) of the  Trust,  which can  improve  the
performance  of the fund in a  declining  rate  environment,  but can  cause net
assets to decline faster in a rapidly rising interest


                                       15
<PAGE>

rate  environment.  The Trust may  reduce,  or unwind,  the  amount of  leverage
employed should BlackRock consider that reduction to be in the best interests of
the Trust.  BlackRock's  portfolio managers  continuously  monitor and regularly
review the  Trust's  use of  leverage  and  maintain  the  ability to unwind the
leverage if that course is chosen.

Special Considerations and Risk Factors Relevant to the Trust

The Trust is  intended  to be a  long-term  investment  and is not a  short-term
trading vehicle.

Investment  Objective.  Although  the  objective of the Trust is to provide high
current income exempt from regular Federal and California  income tax consistent
with the preservation of capital,  there can be no assurance that this objective
will be achieved.

Dividend  Considerations.  The income and dividends paid by the Trust are likely
to vary over time as fixed income market conditions change. Future dividends may
be higher or lower than the dividend the Trust is currently paying.

Leverage.  The Trust utilizes leverage through  preferred stock,  which involves
special risks. The Trust's net asset value and market value may be more volatile
due to its use of leverage.

Market Price of Shares.  The shares of closed-end  investment  companies such as
the Trust trade on the American Stock  Exchange  (AMEX symbol:  RAA) and as such
are subject to supply and demand influences.  As a result, shares may trade at a
discount or a premium to their net asset value.

Investment Grade Municipal  Obligations.  The value of municipal debt securities
generally  varies  inversely with changes in prevailing  market  interest rates.
Depending  on the amount of call  protection  that the  securities  in the Trust
have, the Trust may be subject to certain  reinvestment risks in environments of
declining interest rates.

Illiquid  Securities.  The Trust may  invest in  securities  that are  illiquid,
although  under current  market  conditions the Trust expects to do so to only a
limited extent. These securities involve special risks.

Antitakeover  Provisions.  Certain antitakeover provisions will make a change in
the Trust's  business or management  more difficult  without the approval of the
Trust's Board of Directors and may have the effect of depriving  shareholders of
an  opportunity  to sell their shares at a premium above the  prevailing  market
price.



                                       16
<PAGE>

- --------------------------------------------------------------------------------
        THE BLACKROCK CALIFORNIA INVESTMENT QUALITY MUNICIPAL TRUST INC.
                                    GLOSSARY
- --------------------------------------------------------------------------------


Closed-End Fund:               Investment vehicle which initially offers a fixed

                               number of shares and trades on a stock  exchange.
                               The fund invests in a portfolio of  securities in
                               accordance with its stated investment  objectives
                               and policies.

Discount:                      When a fund's net asset value is greater than its
                               stock  price the fund is said to be  trading at a
                               discount.

Dividend:                      Income generated by securities in a portfolio and
                               distributed to  shareholders  after the deduction
                               of  expenses.   This  Trust   declares  and  pays
                               dividends  to  common  shareholders  on a monthly
                               basis.

Dividend Reinvestment:         Shareholders   may   have   all   dividends   and
                               distributions  of  capital  gains   automatically
                               reinvested into additional shares of the Trust.

Market Price:                 Price  per  share  of  a  security  trading in the
                               secondary market.  For a closed-end fund, this is
                               the price at which  one share of the fund  trades
                               on the stock exchange. If you were to buy or sell
                               shares,  you  would  pay or  receive  the  market
                               price.

Net  Asset  Value  (NAV):      Net  asset  value is the  total  market  value of
                               all  securities  and  other  assets  held  by the
                               Trust,  plus income  accrued on its  investments,
                               minus any liabilities including accrued expenses,
                               divided  by  the  total  number  of   outstanding
                               shares.  It is the  underlying  value of a single
                               share on a given  day.  Net  asset  value for the
                               Trust  is  calculated  weekly  and  published  in
                               Barron's  on  Saturday  and The New York Times or
                               The Wall Street Journal each Monday.

Premium:                       When a fund's stock price is greater than its net
                               asset value,  the fund is said to be trading at a
                               premium.



                                       17
<PAGE>

- --------------------------------------------------------------------------------
                      BLACKROCK FINANCIAL MANAGEMENT, INC.
                           SUMMARY OF CLOSED-END FUNDS
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
Taxable Trusts
- --------------------------------------------------------------------------------------------
                                                                  Stock             Maturity
Perpetual Trusts                                                  Symbol              Date
                                                                  ------            -------- 
<S>                                                                <C>                <C>
The BlackRock Income Trust Inc.                                    BKT                 N/A
The BlackRock North American Government Income Trust Inc.          BNA                 N/A

Term Trusts
The BlackRock 1998 Term Trust Inc.                                 BBT                12/98
The BlackRock 1999 Term Trust Inc.                                 BNN                12/99
The BlackRock Target Term Trust Inc.                               BTT                12/00
The BlackRock 2001 Term Trust Inc.                                 BLK                06/01
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

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

</TABLE>

                     If you would like further information
                 please call BlackRock at (800) 227-7BFM (7236)
                     or consult with your financial advisor.


                                       18





<PAGE>

- --------------------------------------------------------------------------------
                      BLACKROCK FINANCIAL MANAGEMENT, INC.
                                   AN OVERVIEW
- --------------------------------------------------------------------------------

    BlackRock  Financial  Management  (BlackRock)  is  a  registered  investment
adviser which specializes in managing high quality fixed income securities, both
taxable and tax exempt.  BlackRock  currently manages over $34 billion of assets
across the government,  mortgage,  corporate and municipal sectors. These assets
are managed on behalf of many  individual  investors  in  twenty-one  closed-end
funds  traded on either the New York or American  stock  exchanges,  and several
open-end funds and on behalf of more than 80 institutional clients in the United
States and overseas.  BlackRock's  institutional investor base includes Chrysler
Corporation  Master Retirement Trust,  General  Retirement System of the City of
Detroit,  State Treasurer of Florida,  Ford Motor Company Pension Plan,  General
Electric Pension Trust and Unisys Corporation Master Trust.

    BlackRock was formed in April 1988 by fixed income  professionals who sought
to create  an asset  management  firm  specializing  in  managing  fixed  income
securities for individuals and  institutional  investors.  The  professionals at
BlackRock have extensive experience creating, analyzing and trading a variety of
fixed income instruments,  including the most complex structured securities.  In
fact, individuals at BlackRock are responsible for many of the major innovations
in the  mortgage-backed  and  asset-backed  securities  markets,  including  the
creation of the 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
significant  emphasis it places on the  development  of  proprietary  analytical
capabilities.  A quarter of the professionals at BlackRock work full-time in the
design,  maintenance  and use of such systems  which are otherwise not generally
available to investors.  BlackRock's  proprietary  analytical tools are used for
evaluating,  investing in and designing investment  strategies and portfolios of
fixed  income  securities,   including  mortgage   securities,   corporate  debt
securities or tax-exempt securities and a variety of hedging instruments.

    BlackRock  has  developed  investment  products  which respond to investors'
needs and has been  responsible  for several  major  innovations  in  closed-end
funds.  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 AAAf  rating by  Standard & Poor's,  and the first
closed-end  fund to invest  primarily in North American  Government  securities.
BlackRock's  closed-end funds currently have dividend  reinvestment  plans which
are  designed  to  provide  an  ongoing  source of  demand  for the stock in the
secondary market. BlackRock manages a ladder of alternative investment vehicles,
with each fund 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
you may have about your  BlackRock  funds and thank you for the continued  trust
you place in our abilities.







                      If you would like further information

           please do not hesitate to call BlackRock at (800) 227-7BFM



                                       19



<PAGE>

(Left Column)

BlackRock


Directors
Laurence D. Fink, Chairman
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Grosfeld
James Clayburn La Force, Jr.
Ralph L. Schlosstein

Officers
Ralph L. Schlosstein, President
Keith T. Anderson, Vice President
Michael C. Huebsch, Vice President
Robert S. Kapito, Vice President
Kevin Klingert, Vice President
Richard M. Shea, Vice President/Tax
Henry Gabbay, Treasurer
James Kong, Assistant Treasurer
Karen H. Sabath, Secretary

Investment Adviser
BlackRock Financial Management, Inc.
345 Park Avenue
New York, NY 10154
(800) 227-7BFM

Administrator
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, NY 10292

Custodian and Transfer Agent
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171 (800) 699-1BFM

Auction  Agent 
Bankers Trust Company 
4 Albany Street 
New York, NY 10006 

Independent  Auditors 
Deloitte & Touche LLP 
Two World Financial Center 
New York, NY 10281-1434 

Legal Counsel
Skadden, Arps, Slate, Meagher & Flom
919 Third Avenue
New York, NY 10022

  This report is for shareholder information.  
This is not a prospectus intended for use in 
the purchase or sale of any securities.

              The BlackRock California Investment
                  Quality Municipal Trust Inc.
           c/o Prudential Mutual Fund Management, Inc.
                          32nd Floor
                      One Seaport Plaza
                      New York, NY 10292
                        (800) 227-7BFM
                                                 09247U-10-7
                                                 09247U-20-6
(Right Column)

The BlackRock
California
Investment Quality
Municipal Trust Inc.
- ------------------------------------------
Annual Report
October 31, 1995




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